Choice, Usage, and Perceived Value of Online Food Delivery Services among Metro Manila Residents

Date

6-2023

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Renen Szilardo C. De Guzman

Committee Member

Jennica Amielle M. Mora, Gian Carlo U. De Jesus, Mar B. Cruz

Abstract

Technology is developing rapidly and with that comes digitalization, wherein tasks that one would have to do physically a few years back can now be drone at any time and practically anywhere with a few clicks of button. This was made possible by digital platforms and online spaces. E-commerce has been a trend and has become a nom, especially with the limitations brought about by the COVID-19 pandemic and this includes online food delivery.

Despite the world easing back to normal, online food delivery services are projected to have continuous usage and the industry expects a steady growth in the revenue and customer base. The industry being relatively new, especially with its recent emergence, only has limited studies on it especially in the Philippine setting. In line with that, this study aims to establish the consumer profile, determine their choice, usage, perceived value, as well as perceived gaps and pain points in using online food delivery services for their improvement and further development.

Home to business districts and schools in the country, Metro Manila was the focus of the study to capture the diverse population and usership sample. Respondents were obtained through an online survey that they participated in voluntarily. The study used both quantitative and qualitative means of obtaining and analyzing data.

The respondent profile is diverse across the demographic criteria but with the younger population dominating thus, much of the income/allowance are on the base level. However, results showed that despite this, they are still willing to spend on online food delivery services with the convenience that it gives them. Moreover, they are also willing to make bigger purchases for self consumption. Most items purchased are ready-to-eat meals, especially during snack/merienda, dinner, and lunch. Groceries are not as commonly sought after as meals.

Grab Food and Food Panda are the dominant players among Metro Manila residents in both awareness and usage. Local online food delivery companies appeared to be underutilized and they may have to have better promotional strategies and wider reach, like the top brands to expand their consumer base.

Prior to using these services, most had hesitations which are mainly related with their legitimacy and security, which may explain why Cash on Delivery (COD) is the most preferred payment method as it can better ensure transaction fulfillment. The dominating factor that pushed them into using the services is convenience which also coincide to be the benefit that most get out of online food delivery services. As such, convenience is given the highest importance amongst other attributes. Quality of food and reliability are also valued by the respondents, but the registration process is the least important.

When it comes to the perceived value of these attributes, payment method is the most positively evaluated while the refund process is least regarded. The cost or price cluster had the lowest evaluation as a cluster and this may mean that the users find online food delivery can be expensive. This was also the leading reason why they would trade using the app with physically going to food establishments.

While the respondents are generally happy and satisfied with what online food delivery services are offering, there are still gaps and areas for improvement that they pointed out. Most of them are on vouchers, discounts and deals. Others would like to see improvements in the quality of food and the services. Furthermore, there were mentions of improvements and feature suggestions in their platforms such as tracking or monitoring, multi-establishment delivery, communications with riders and establishments, among others.

Specific recommendations to further improve the customer experience include transparency of companies, having websites, TV commercials, collaborations with influencers, authentication or confirmation of booking per transaction regardless of the order is for one self or for others, tracking and monitoring or orders, setting an estimated delivery time and and trainings for riders and kitchen staff.

Language

English

LC Subject

Food delivery services, Electronic commerce

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2023 M17 A73

Notes

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Document Type

Thesis

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