Customer Satisfaction in Online Food Service Delivery at some areas in

Mackinley, Binalonan, Pangasinan

A Research Paper presented to the

Faculty of College of Hospitality and Tourism Management

In partial fulfilment of

the requirements (Subject name)

by

(Your name)

CHAPTER I
 INTRODUCTION

Background of Study

Online food ordering is the process of ordering food, for delivery or pickup, from a

website or other application. The product can be either ready-to-eat food (e.g., direct from a

home-kitchen, restaurant, or a virtual restaurant) or food that has not been specially prepared for

direct consumption (e.g., vegetables direct from a farm/garden, fruits, frozen meats. etc.). Online

food ordering/delivery through third-party companies have emerged as a global industry, leading

to a "delivery revolution." From 2018 to 2021, global revenues for the online food delivery

sector rose. Consumers who use online food delivery can indulge in the variety of restaurants and

cuisines available on the internet, without the need to visit the stores or restaurants. Online food

delivery can offer time-poor, busy consumers the convenience and efficiency they need by

providing them with the ability to quickly choose meals or groceries without the need for

physical store or restaurant visits. Companies offering online food delivery services can invest in

online payment methods, an easy-to-use website, chatbots, and other conversation solutions to

give consumers the ease and convenience that they demand.

It is really evident that many people are in to the food delivery services as it is really

convenient for them. It became also another market strategy of some known fast food chain. In

Binalonan, Pangasinan it is also in demand to some people. There are residents in the said area

who are taking advantage of some food delivery that is open 24/7. Despite of the good market as

it is being shown as of today, there are some problems arising to some food delivery company.

Things are not perfect, services maybe interrupted because of natural issues in the road everyone

is facing. Like heavy traffic, and products being delivered on different address. Binalonan,
Pangasinan is fond of food delivery services because it is a less hassle if they will be ordering in

store. For them, since it is just almost same amount of cost, they will choose instead to order

through food delivery. In case of delays or being scam, it is giving then high amount of stress.

The convenience makes it a success, but its effects on society are not very positive: little

sustainability, a lot of waste, ghost kitchens, unhealthy and repetitive menus, and more isolation.

The big brands have so-called dark or ghost kitchens that prepare online orders

exclusively. But many other restaurants are unable to bear the cost of an additional kitchen, so

they decide to work on both the in-house and the delivery orders from their own kitchen. “It’s a

mistake. Your kitchen is the right size to serve your room at full capacity. If you also intend to

deal with the deliveries, which you know implies serving in a hurry, you will end up delaying the

orders in the room. You want to broaden your market, and you end up cannibalizing the one you

already have in operation,” warn in unison the Two Many Chefs. By trying to get on the online

ordering bandwagon, where the margins are lower, they end up losing the physical customer.

Sharing, or isolating? People over 50 are increasingly ordering food at home, according

to Kantar. This sector of the population, with greater purchasing power, is also more demanding

in terms of seriousness, punctuality or the form of delivery. This seems like a double-edged

sword: on one hand, it would bring variety to the diet of people whose children have moved out

and find it tedious to cook for themselves. But it could aggravate the problem of loneliness or

social isolation among the elderly, who, not having to go out to buy food or to eat, could spend

days without any social contact.

Among the younger crowd, 95% of the times the food is ordered to share – with a

significant other, friends or family – according to a study carried out by We Are Testers. “I don’t
think we’re heading towards a society that prefers to eat alone at home. As soon as there’s one

ray of sun, we go nuts looking for a terrace to meet some friends! Sharing food and talk is in our

DNA. You say that there are gamers that don’t leave the house and only eat food that’s delivered

to their door? Well, there were also addicted gamers in the 1990′s, and they ate sandwiches,” say

the Two Many Chefs. What has changed is when and why food is ordered.

In the documentary Food as a Service, Eva Ballarin notes that, while food used to be

ordered when there was a sports game or when one was having friends over and didn’t feel like

cooking, customers increasingly opt for home deliveries as a substitute for the fridge, the pantry

and the kitchen. After all, having your lunch delivered to your office is much more comfortable

than preparing a container every morning. That trend eats through 13 to 14.6% of a person’s

budget, which is to say, it makes a considerable dent on their savings capacity. The architecture

of restaurants will also change. Burger King is planning to reduce the seating capacity of their

restaurants and increase the parking space and the car waiting area around the establishment.

There even are plans to set up automatic delivery boxes where you can pick up your order

without waiting in line.

This study will identify the assessment of Binalonan, Pangasinan residences about the

food service delivery. To what extend it is really convenient? Does it really helping or adding

stress? This study will give more context about the customer experience in food delivery

compared from in store or pick up.

Food delivery services affect customers’ satisfaction with regard to availability of food,

payment transaction options, and producer-consumer contact. (Kwong, et al., 2020). Food

delivery service providers must prioritize service quality in order to achieve customer happiness.
Online food delivery services and their delivery systems can be classified as Restaurant-to-

Consumer (in-house) or Platform-to-Consumer (outsourced) operations (third-party). Food is

being prepared and delivered either by Restaurant to-Consumer Delivery or by In-House

Providers. Orders can be placed directly through the restaurant's web platform or through a third-

party platform. (Li, et al 2020). In the Philippines, Greenwich Pizza restaurant provides in-house

and third-party deliveries which both require practicing the same standard of quality of delivery

services required for accreditation. (National Restaurant Association, 2021) Pizza, which is the

most ordered delivery food (Nixon, 2017) even just before the time of pandemic and Greenwich

claims to have a 30% percent share of the pizza market in Metro Manila, where most of its stores

are located, and claims to be the country's largest pizza chain in terms of store network. (Lim,

2017). According to the official Facebook website of Greenwich Philippines as of July 6, 2021,

there are 8 branches of Greenwich Restaurant in malls located in selected cities in Pangasinan,

Jollibee, McDonalds, Burger King, KFC, Chowking and other fast food restaurant. It has

branches and Researchers are strategically located among these branches where they are situated

and experienced delivery services. The researchers observed that some of the food delivery

services do not follow certain standard policy when it comes to delivery. Moreover, one of them

experienced deformed condition of the product. This experience in Greenwich food delivery

services led them to the birth of this study. In addition, not only Greenwich, but also other food

delivery has problem in delivering ordered products. Some of the foods are deformed, cold, and

not presentable. This is the reason why the researchers formulate a title to conduct a study

assessing the customer experience in online food delivery.

E-Commerce Platforms
 Silva et al. (2017) define e-commerce platforms as the set of technologies designed to

help online businesses to manage their marketing, sales, and operations. Wei’s et al. (2018) study

sought to examine the purchase intention of fruits among online shoppers. The authors argue that

the past few years have seen the emergence of online purchase platforms for fruits, a trend that

has significantly advanced e-commerce development and improved the quality of human life.

Although their study sought to investigate consumers’ purchase intention, the results reveal that

compared to other products, the e-commerce platforms for fruits did not play a major role in

influencing a buyers’ purchase decision. On the contrary, the success of fashion products and

electronics is dependent on how online customers perceive their e-commerce platforms (Huete-

Alcocer, 2017). For example, customers are less likely to purchase luxury fashion products from

a poorly designed website (Kang et al., 2020) and (Buckley, 2016). Thus, while there are limited

studies on the differences between buying food and other products online, at least the current

studies evidence that e-commerce platforms do not play a significant role in influencing buyers’

purchase decisions.

Consumer Preferences and Attitudes

Kim Dang et al. (2018) study on consumer preference and attitudes regarding online food

products examines how the Internet has changed people’s food-buying behaviors. The study is

significant because it establishes the underlying consumers’ concerns with regards to food safety

information, especially for online food products. Compared to other products, consumer

preferences and attitudes toward buying food online differs in that the perceived risks and

information quality do not play major roles in influencing their buying behavior (Li and Bautista,

2019; Sanchez-Sabate and Sabaté, 2019; Zieliñska et al., 2020). Kim Dang et al. (2018) study

relies on a cross-sectional study conducted in Hanoi, Vietnam. The findings are reliable as they
are based on responses gathered from over 1736 customers through face-to-face interviews.

While the preferences and attitudes toward buying food online differ from buying other

commodities, Kim Dang et al. (2018) note that the laws governing e-commerce in Vietnam are

the same. As such, the findings provide practical advice to online food retailers and the Vietnam

government on how to implement appropriate legislation with regards to trading online food

products.

Martínez-Ruiz and Gómez-Cantó’s (2016) study emphasizes that using the Internet to

seek food service information has now become a common practice among people today. More

people than ever before have positive attitudes toward finding information about food online

(Martínez-Ruiz and Gómez-Cantó, 2016; Maison et al., 2018). Also, people are more likely to

search information about food on the Internet than any other product or service (Hidalgo-Baz et

al., 2017; Whiley et al., 2017; Wong et al., 2018). However, Kim Dang et al. (2018) study found

that a significant number of consumers were unconcerned about the accuracy of the evidence

regarding food safety they found online in selecting food products on the Internet. The

conclusions drawn from the current article review produces practical pieces of advice to

consumers buying food online as well as the food retailers selling food over the Internet.

Rummo et al. (2020) examine the relationship between youth-targeted food marketing

expenditures and the demographics of social media followers. The authors sought to establish the

extent to which teenagers follow food brands on Twitter and Instagram by examining the

relationships between brands’ youth-targeted marketing practices and the overall percentages of

adolescent followers. The study provides evidence showing that unhealthy food brands,

especially fast food and sugary drink have more adolescent followers on social media (Rummo et

al., 2020). These study results are consistent with Salinas et al. (2014) findings which show that
unhealthy food products enjoy a higher market base than the healthy ones. The high percentage

of teenage followers is concerning among health experts mainly because most of the

advertisements from these companies are biased and do not highlight the unhealthy

consequences associated with eating these foods. Compared to other products, food companies

are often not required by regulations to highlight their negative consequences (Salinas et al.,

2014). For example, cigarette and alcohol companies are mandated to disclose their effects of use

on all marketing materials (Gravely et al., 2014). Consequently, with the ubiquitous use of social

media by teenagers, young people are more exposed to food and beverage advertising which

occurs across multiple digital channels.

The failure to address digital advertising when formulating policies makes it harder to

governed youth-targeted food marketing. Food products are often marketed using the general

techniques and approaches applied in other products and services. Juaneda-Ayensa et al. (2016)

note that food marketing topics such as market segmentation, strategic positioning, test

marketing, branding, consumer research, targeting, and market entry strategy are highly relevant.

Moreover, food marketing is affected by the major challenges that affect conventional markets

such as dealing with perishable products whose availability and quality varies as a function of

the current harvest conditions (Hongyan and Zhankui, 2017). However, Topolinski et al. (2015)

note that the value chain in food marketing is particularly important because it highlights the

extent to which sequential parties within the marketing channel add value to the final product.

According to Linder et al. (2018) processing new distribution options often provides additional

opportunities available to food marketers to provide the final consumer with convenience.

However, when overhead costs such as marketing and processing are added they result in

significantly higher costs (Lou and Kim, 2019).

Statement of the Problem

The research study aims to assess the level of satisfaction on online food delivery

services during pandemic at some areas in Poblacion, Binalonan, Pangasinan. The study will

seek answers to the following questions:

1. What is the demographic profile of the respondents in terms of:

1.1 age

1.2 gender

1.3 educational attainment

2. What is the level of customer satisfaction in online food delivery services of some fast food

restaurant and other restaurant during the pandemic in selected areas of Poblacion, Binalonan,

Pangasinan in terms of:

2.1 Reliability

2.2 Assurance

2.3 Tangibles

2.4 Empathy

2.5 Responsiveness

3.What is the customer assessment in terms of their satisfaction to online food service delivery?

4. How does online food service delivery impact customer service satisfaction?
 Hypothesis

The researchers make a hypothesis about the study and they are:

The data gathered are valid and reliable.

1. There is a significant difference in the assessment on the level of customer satisfaction on

online food delivery services when grouped according to age, gender, profession,

educational attainment and preferred method of ordering and delivery.

Theoretical Framework

A theory is a well-founded statement or set of ideas that explains observed facts or

phenomena. Some theories helped the researchers in conducting this study in a way that they

explain essential ideas relating to the research.

Review will conduct critical propositions reflected from these studies to propose future

research directions. The academic review is significant to both researchers and online food stores

as people across the world start embracing online shopping more than ever before.

Conceptual Framework

Input Process Output

Profile of the respondents 1. Collections of The assessment of customer

according to; respondents profile. satisfaction in online food
delivery service
2. Administering survey
a. Sex
questionnaire
b. Age
3. Organization of
c. Types of food customer response
services
 FEEDBACK

Significance of the Study

This study is important to the following persons:

1. To the Consumers

• It is important to the customer, for them to know that they have rights to be satisfied on

all services they are receiving especially when it is being paid.

2. To the Delivery Driver

• This is also significant to food service delivery driver that they need to know that

customer satisfaction is important for sales reason and to avoid future problems.

3. To the Entrepreneurs

• It is also important to Food Service Company so they can do strategy in meeting the

customer satisfaction as it will benefit their market once being met. It will be useful also
 to other business structure for them to get assessment on the strategy that maybe useful if

they are going to engage their business in online food delivery services.

4. To the Institution

• This research can be a valuable addition to the set of information contained inside the

university.

5. To the Community

• To the normal people who are not a customer, so once they tried the service of online

food delivery, they will know that their satisfaction needs to be considered.

6. To the Future Researchers

• To the future researcher who are planning to conduct related study and aiming to study

a similar topic in the future can use this paper as reference to support their claims and to

assert information validity. This studies maybe good sources for the future study about

online food service delivery.

Scope and Limitation

The research study was conducted at some areas of Poblacion, Binalonan, Pangasinan. It

includes the participation of the customer who are using online food delivery services. The

research involves the online food delivery services. The research paper assesses the customer

satisfaction of some people of Poblacion, Binalonan, Pangasinan. The research set various

limitations throughout the given period of the study. This research will only scope the people of

Poblacion, Binalonan, Pangasinan who are using online food service delivery. This will cover the

customer service of some online food delivery company and the customer satisfaction they

providing to their customer. This will also scope related research to suffice the data and the

validity of this study. This will be necessary but will not eliminate the purpose of this study. The
study will be limited only to the people of Poblacion, Binalonan, Pangasinan who are customer

of online food delivery service and the online delivery food service on that area.

Definition of Terms

The following terms were defined conceptually and operationally for the readers to have

better understanding of this study:

 Food delivery - is a courier service in which a restaurant, store, or independent food-

delivery company delivers food to a customer.

 Customer - a person or organization that buys goods or services from a store or business.

 Company - is a legal entity formed by a group of individuals to engage in and operate a

business—commercial or industrial—enterprise.

 Services - is an "(intangible) act or use for which a consumer, firm, or government is

willing to pay. Is the act of fulfilling a need, desire, or appetite, or the feeling gained from

such fulfillment. Satisfaction means you've had enough — in a good way.

 Assessment - the action or an instance of making a judgment about something: the act of

assessing something.
 CHAPTER II

METHODOLOGY

The research design, study participants, research instrument, data collection, technique,

and statistical treatment of data utilized in the study are all covered in this chapter.

Research Design

This study will be conducted using a quantitative non-experimental descriptive research

design. A quantitative nonexperimental descriptive research strategy reveals an existing

phenomenon in which the variables cannot be modified or controlled and can only be determined

on how, what, or when it occurred. (McCombes, 2019). This research design was chosen to meet

the objectives of the study to asses the customer satisfaction in online food delivery service in

Poblacion, Binalonan, Pangasinan.

Research Population and Locale

The study's population inclusion criteria were (1) participant's age should be 18 years old

and above (2) either male or female and (3) experienced buying via food delivery service from

any fast food or restaurant since March 2019 to present (4) willing to participate in the study

from Poblacion, Binalonan, Pangasinan.The study will be conducted in Poblacion, Binalonan,

Pangasisnan, where the researchers are strategically located to conduct study where online food

delivery service is very in demand in order to minimize their chances of being infected.

Research Sampling

The researchers utilized the purposive stratified random sampling technique in selecting

target respondents. Purposive sampling is a type of non-probability sampling in which the

researchers make the decision about which respondents to include in the study based on a

predetermined criterion. Purposive sampling is depending on the researcher's opinion of who will

supply the best data for objective analysis to succeed. (Etikan I. & Bala K. 2017). Inclusion

criteria in the selection of the participants are as follows: (1) ages18 years old and above (2)

either male or female and (3) experienced buying via food delivery service from any fast food pr

restaurant since March 2019 to present (4) willing to participate in the study from Poblacion,

Binalonan, Pangasinan. Sample size of 100 will be used in the study. The sample size was

determined based on the rule of statistics in nonprobability purposive sampling with unknown

number of participants requiring a minimum of 100 participants as sample size. As defined by

Hayes (2020) a random sampling technique allows equal opportunity for all to be a participant in

a study, on a more specific note, A stratified random sampling method is a form of sampling that

divides a population into subgroups or strata. In this study, participants are to be divided into

three (3) strata based on the selected areas in Pangasinan as research locale and will randomly

select the participants of the study.

Research Instrument

The research instrument in this study is an adapted- modified questionnaire from the

SERVQUAL Model, a multi-item scale developed to assess customer perceptions of service

quality in service and retail businesses (Parasuraman et. al., 1991).The proposed survey form has

2 components: section 1 is the demographic profile of the respondents, and section two is

assessment to their satisfaction in online food delivery services in Pangasinan cities. Using a 4-

point Likert Scale with a range of: 4– Very Satisfied,, 3– Moderately Satisfied, 2–Moderately

Dissatisfied, and 1– Very Dissatisfied, the survey questionnaire aims to evaluate the level of

customer satisfaction towards food delivery service in terms of (1) Reliability (2) Assurance, (3)

Tangibles, (4) Empathy, and (5) Responsiveness. Google Forms will be used in creating the

survey questionnaire that will be distributed through social media platforms to the respondents

who have availed the food delivery services of fast food chain and some restaurants in selected

cities in Pangasinan. The research instrument will be subjected for content and face validation by

the tool validators assigned by the College after review and approval of the research proposal by

the members and chairperson of the Thesis Review Panel.

Data Gathering Procedures

The researchers disseminated the research tool by personal referral and/or

posting/sending the Google Forms link of the online questionnaire through various social media

groups in prospective respondents of Poblacion, Binalonan, Pangasinan. The respondents were

obtained through referral, invited and volunteered to participate in the study. The researchers

provided an online survey questionnaire using the Google Forms to the respondents. The data

were collated, tabulated and interpreted using appropriate statistical methods.

Data Treatment and Analysis

 For the first statement of the problem, the researchers used the percentage method to

determine the frequency and percentage of the participant’s profile, namely: age, gender,

profession, and educational attainment and preferred method of ordering and delivery.

For the second statement of the problem, Mean and Average Mean were computed per variable

to determine the level of satisfaction of the participants in terms of reliability, responsiveness,

assurance, empathy and tangible food delivery services. For the third statement of the problem,

t-test was used to determine if there’s a significant difference in customer satisfaction when

grouped according to gender. f-test (ANOVA) or Analysis of Variance was used to determine the

significant difference in the customer satisfaction when grouped according to age, educational

attainment and preferred method of ordering and delivery.

For the 4th statement of the problem, recommendations were formulated based on the

results of the study.