A STUDY ON CONSUMER PRECEPTION AND SATISFACTION TOWARDS

ONLINE FOOD DELIVERY SYSTEM WITH SPECIAL REFERENCE IN CHENNAI

Report on project

SUBMMITTED BY

NIVETHA.S

(39280076)

Under the Guidance of

Ms. S. SHANTHINI M.COM.NET.,

In partial fulfilment of the requirements for the award of the Degree of

BACHELOR OF COMMERCE

MAY-2022

DEPARTMENT OF COMMERCE

SATHYABAMA INSITITUTE OF SCIENCE AND TECHNOLOGY CHENNAI-119

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 CERTIFICATE

This is to certify that the project entitled

“ THE STUDY ON CONSUMER PERCEPTION AND SATISFACTION TOWARDS

ONLINE FOOD DELIVERY SYSTEM WITH SPECIAL REFERENCE IN CHENNAI”

Is a bonafide record work done by

NIVETHA.S (39280076)

Submitted in partial fulfilment of the requirements for

the award of the Degree of

BACHELOR OF COMMERCE

Dean, School of business Administration

____________________________________________________________

Viva-voce examination held on ___________________

____________________ ______________

External Guide Internal Examiner

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 DECLARATION
I hereby declare that this project work entitled “A STUDY ON CONSUMER
PERCEPTION AND SATISFACTION TOWARDS ONLINE FOOD DELIVERY
SYSTEM WITH SPECIAL REFERENCE IN CHENNAI submitted to Department of
Commerce Sathyabama Insitute of science and technology Chennai-119, in partial
fulfilment of the requirements for the award of the DEGREE OF BACHELOR
OF COMMERCE is the record of the original project work done during the period of
study, under the supervision and guidance of Ms. S.SHANTHINI .M.COM.NET..,
Teaching Assistant, Department of Commerce.

DATE:

PLACE

SIGNATURE OF THE CANDIDATE:

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 ACKNOWLEDGEMENT

I am pleased to acknowledge my sincere thanks to Board of Management of

SATHYABAMA for their kind encouragement in doing this project and for completing
it successfully. I am grateful to them.

I convey my thanks to Dr.G.Bhuvaneswari MBA., PhD Dean- School of Management

Studies and Dr.A.Palani, M.Com., M.Phil., PhD., Head of the Department, Dept.of
Business Administration for providing me necessary support and details at the right
time during the progressive reviews.

I would like to express my sincere and deep sense of gratitude to my Project Guide
Ms. S.SHANTHINI .M.COM.NET.., for his valuable guidance, suggestion and
constant encouragement paved way for the successful completion of my project work.

I wish to express my thanks to all Teaching and Non-Teaching staff members of the
Department of Business Administration who were helpful in many ways for the
completion of the training.

I am thankful to all Staff Members of the Department of commerce who rendered their
help whenever required. The researcher owns heartfelt thanks and gratitude to the
Librarian of Sathyabama Institute of Science and Technology Chennai-119

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 CONTENT

TABLE CHAPTER-1 INTRODUCTION PAGE NO

NO
Introduction and Design of the study

1.1 Concept Introduction

1.2 Scope and Significance

1.3 Need for the study

1.4 Objectives of the Study

1.5 Statement of the problem

1.6 Chapter plan

II Chapter II - Profile of the study unit

2.1 Review of Related Literature

III Chapter –III Methodology

3.1 Introduction to Research Design

3.2 Data collection methods

IV Chapter – IV Analysis and Interpretation

4.1 Analysis and Interpretation of Data

V Chapter-V Summary of Findings and Conclusion

5.1 Findings of the study

5.2 Summary and Conclusion

5.3 Recommendations

Bibliography

Annexure

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 LIST OF TABLES

01 Age group

02 Occupation

03 Marital status

04 Awareness of online food ordering channels

05 Online food ordering process is known through

various channels
07 Frequency of ordering by dining occasion

08 Different days when food is ordered in online

09 How did you came to know about online food

ordering
10 Amount spent monthly to order food online

11 Challenges faced while ordering food online

12 Security of the online food ordering process

13 Mode of payment to order food online

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Executive Summary

The advent of the Internet, accompanied by the growth of related technologies, has
created a significant impact on the lives of people around the globe. For marketers,
one of the most significant impacts has been the emergence of virtual stores that sell
products and services online. Consumers can now purchase goods and services
virtually anywhere, 24 hours a day, 7 days a week, without geographical and temporal
boundaries.

While many marketers acknowledge the importance of using the Internet in their
marketing mixes, little research has empirically tested the critical factors that influence
an individual’s decision when buying products or services online. Based on the gaps
found in the literature, the purposes of this project study is to understand the
perception of Online Food Ordering. The major factor that inhibits those who have not
ordered via an online channel (non-users) is a desire for interaction although
technology anxiety is also a factor). Consumers’ Perceptions of Online Ordering and
how they use it or why they don’t do so.

My intention is to help restaurant operator’s better design their online ordering

channels. Non vegetarian food, particularly kebabs, is far and away the most
commonly ordered category. The single most important attribute of online ordering is
order accuracy. That is followed by convenience and ease of ordering. Despite the
availability of the internet and phone apps, the most common ordering channel is still
the telephone call. online ordering is growing, though, as the users said they place a
little over 38 percent of their orders on the restaurant’s website or app. A chief
implication is that restaurateurs must ensure that their ordering systems must give
users perceptions of control and also be convenient. One other consideration is that
customers who order food online prefer restaurants that offer home delivery.

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 CHAPTER – I

Introduction and Design of the study

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1.1 Concept Introduction

With the coming of the 21st century, we have entered an “e” generation era. The
Internet has generated a tremendous level of excitement through its involvement with
all kinds of businesses starting from e-Commerce, eBusiness, eCRM, eSupply Chain,
eMarketplace, ePayment, eEntertainment, eTicketing, eLearning, to eCitizenor
eGovernement. The Internet has been widely used in many sales and marketing
activities, from the collection of valuable data to the dissemination of information to
different stakeholders, for example, information retrieval, product communication,
sales tool, distribution channel, and as a customer support tool (Singh, Jayashankar
and Singh 2001; Calles 2000; Sandberg 1998; Peterson, Balasubramanian and
Bronnenberg 1997). The Internet has opened a window of opportunity to almost
anyone because of its ability to make viable the conduct of business in cyberspace, or
by connecting people worldwide without geographical limitations. Consumers can
order goods and services virtually anywhere, 24 hours a day; 7 days a week without
worrying about store hours, time zones, or traffic jams.

The Internet has also provided new opportunities for marketers by offering them
innovative ways to promote, communicate, and distribute products and information to
their target consumers. E-commerce has grown phenomenally in the past decade for
a variety of reasons including changes in consumer lifestyles, technological
advancements, increases in consumer income and education, and rapid financial
development throughout the world.

The use of the Internet as a shopping or purchasing vehicle has been growing at an
impressive rate throughout the last decade. The tremendous growth of online sales
and the unique functions of the Internet have drawn a great deal of attention from
many companies rushing in to set up businesses over the Internet without knowing
what factors actually motivate consumers to buy products or services online.

Many marketers agree that Internet marketing will definitely increase customer
spending and loyalty to both online and offline products if it is executed properly. This
is due largely to the Internet’s significant advantage of two-way communication and its
ability to transmit information quickly and inexpensively when compared to other

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traditional mass media using solely one-way communication (Warrington, Abram&
Caldwell 2000; Waldo 2000).

The simultaneous and rapid rate of consumer adoption of personal computers and
network systems have encouraged and pressured marketers to provide Internet
retailing sites. Some researchers in fact predict that the need for physical stores could
be eliminated in roughly four decades and replaced with online retailing (Cope 1996).

While many marketers acknowledge the importance of using the Internet in their
marketing mixes, only a handful of researchers have studied what factors encourage
or discourage consumers when buying products or services online. Despite the
increasing popularity of the Internet, most knowledge of Internet marketing is based
on anecdotes and experiential evidence from television, radio, popular press or
magazines

In summary, the benefits of using the Internet in marketing are enormous as they offer
a huge opportunity for marketers to create innovative activities that have not previously
been viable. However, marketers need to develop an insightful understanding of
consumer behaviour when purchasing products online. This information will help
marketing managers to plan their marketing mixes and offers to better meet
customer’s requirements. By doing so, companies will establish, maintain or increase
customer satisfaction, build strong brand loyalty and ultimately, provide consumers
with a solid rationale for continuing to buy the same brand. This study is thus significant
as it is a preliminary attempt to identify factors and their relative strength in influencing
consumer decision making when buying health foods online. The research problem
and objectives of this study are addressed next.

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Background to the study

Online food ordering system is a system to manage the business. The main point of
developing this system is to help the customers to manage the business and help
customers through online ordering and lunch reservation. The project is being
developed because of the long queues that will be in the restaurant during lunch or
dinner hours, one for purchasing tickets and one for collecting food. With the new
system, the customers would be able to order their food from the comfort of their
offices, classrooms, hostels and anywhere outside the school campus without
queuing. The system will cater for the disadvantages of the traditional method which
is currently in place.

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 1.2 Problem of the study

Online food ordering

Services are websites that feature interactive menus allowing customers to place
orders with local restaurants and food cooperatives. Much like ordering consumer
goods online, many of these allow customers to keep accounts with them in order to
make frequent ordering convenient. A customer will search for a favourite restaurant,
choose from available items, and choose delivery or pick-up. Payment can be amongst
others by credit card or cash, with the restaurant returning a percentage to the online
food company. Online food ordering services are websites that feature interactive
menus allowing customers to place orders with local restaurants and food co-
operatives. Much like ordering consumer goods online many of these allow customers
to keep accounts with them in order to make frequent ordering convenient. A customer
will search for a favourite restaurant chooses from available items, and choose

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delivery or pick-up. Payment amongst others by credit card or cash with the restaurant
returning a percentage to the online food company. While-commerce has been around
for over a decade closing the gap between food and the internet has taken longer. The
first restaurants to adopt online food ordering services were corporate franchises such
as Domino’s and Papa John’s.

Online food ordering could be called the response of the internet to the desire for
delivery food. It is a growing trend especially in urban areas and on college campuses
that allows people to order from restaurants featuring interactive menus, by use of
their internet connection. In many cases handle complicated web pages can be used
to make orders, though a lot of people rely on a desktop or laptop computer for this.
‘Ordering form grocery stores to stock the kitchen, instead of placing one time orders
with a restaurant. There are several ways in which online food ordering from a
restaurant may occur. A restaurant can have its website with easy features for placing
an order for pick up or delivery. Some add a third option of being able to make
reservation. Instead of calling for a delivery, people just access the internet to the
restaurant site and make their order Food diversity in India is an implicit characteristic
of India’s diversified culture consisting of different regions and states within.

Traditionally, Indians like to have Home-cooked meals – a concept supported

religiously as well as individually. However, with times due to increasing awareness
and influence of western culture, there is a slight shift in food consumption patterns
among urban Indian families. It started with eating outside and moved on to accepting
a wide variety of delicacies from world-over. Liberalization of the Indian economy in
the early 1990s and the subsequent entry of new players set a significant change in
lifestyles and the food tastes of Indians.

Fast food is one which gained acceptance of Indian palate after the multinational fast-
food players adapted the basic Indian food requirements viz. vegetarian meals and
selected non-vegetarian options excluding beef and pork totally from their menu.
Multinational fast food outlets initially faced protests and non-acceptance from Indian
consumers. This was due to primary perception that these fast food players serve only
chicken and do not serve vegetarian meals.

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Perceived expensive besides being out-of-way meals in Indian culture. Today, fast
food industry is getting adapted to Indian food requirements and is growing in India.
Gaining acceptance primarily from Indian youth and younger generations and is
becoming part of life. Keeping in view the Indian habits and changing preferences

towards food consumption, this study has its focus to understand the factors affecting

the perception of Indian youth, in the age group of 20-30 years, towards consumption

of fast food as well as towards making choice of fast food outlets.

Advantages for Online Ordering

There are advantages for both the customer and for the restaurants who participate in
online ordering. First, a customer can order at will when they have time to. Also, the
customer is able to customize their order the way they like it without errors in
communication between the customer and the person taking the order. In addition to
customer advantages, the restaurant is able to take more orders with less staff. The
restaurant does not need a waiter or hostess to be on the phone to take the order. The
order can go straight to the kitchen.

Disadvantage for Online Ordering

Customers are not able to ask about quality of food or ask for any specialized diet
foods. It is more difficult to ask for gluten free or allergy free foods with online ordering.
Also, it is more possible for a customer to place an order, but never pick up the order
which can lead to waste of food and possibly a loss of profits.

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1.3 Scope and Significance of the study

In this day and age where presence in the virtual world is an imperative, small
restaurants and entrepreneurs too need to take benefit of it. Online food ordering
websites present just the options. By Saionji Baldur

The difference between the organized and the unorganized sector in the Indian
hospitality industry is huge. This does not just include hotels, but also the food service
segment. Apart from the organized chain restaurants, most restaurants cater to local
needs and often at a micro market level. In such a scenario, creating a loyal customer
base is not difficult and a specialized marketing and sales force may not be necessary.
By David Buttress

Enter online food ordering websites. These websites have been developed more for
consumer convenience than anything else. But they do open a plethora of
opportunities for small establishments to grow their business further. Online food
ordering has been an international phenomenon for a while now. There have been
many variations in India as well which have taken off at different periods of time, but
success has been hard to come by. One of these early ventures was HungryZone.com
which started out in 2006 in chennai with more than 650 restaurants in the city.

The company was recently acquired by the British JustEat.com and was launched as
JustEat.in in India which is expected to go national in another year or so. The website
is already active in Bangalore, Mumbai and Delhi. David Buttress, MD of JustEat.com
informs, “We will be looking at Kolkata, Chennai, Pune, Hyderabad, Ahmadabad,
Chandigarh and Goa to provide the website’s services.” The Just-Eat Group operates
in the UK, Denmark, Sweden, Belgium, Spain, Netherlands, Ireland, Norway, Canada
and India. Just-Eat.com (founded in 2000) will invest US $ 5-10 million over the next
three years into its Indian entity. By Aditi Tarija.

The study of the problem is limited only within the city of Chennai. It includes the
customers who use the online food ordering system. The study is very much important
for knowing the customers’ perception of online food ordering and this is analyzed
based on randomly selected 100 sample size due to the time constraint.

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1.4 Need for the study

Owing to the changing Indian demography, there is need for building up of

infrastructure for processing and marketing of the agricultural yield. As more and more
people in the developing countries are moving towards the cities, urban food and
nutrition issues are becoming increasingly relevant and pressing. There exists wide
disparities between these cities in terms of their geography, history and culture which
make reference to an average urban consumer as an individual misleading and the
identification of consumer groups having different cultural backgrounds, socio-
economic status, lifestyles and consequently different consumer behaviour and needs
is preferred.

Consequently the food and diet patterns of the various strata of urban population
deserves more attention than they have been given so far, not only for their
implications on food and agriculture planning but also for determining remedial actions
and preventive measures.

Consumers have specific needs and expectations with respect to their food. With
intensive urbanisation, large volumes of food move through the systems and the food
systems themselves are becoming increasingly complex. With these changes in the
Indian population more individuals stay in different cities for the purpose of studies and
employment and the busy schedules of both the husband and wife in the family, the
demand for online food ordering have developed and going up steadily.

As proposed in the background study, excellent customer service is vital in customer

satisfaction and is the prerequisite for initiating and developing long Term relationship.
The restaurant industry in India is at a learning curve and many full service restaurants
are not capable of delivering quality services and therefore does not contribute to
customer satisfaction and lose to competition. Hence it is important to identify criteria
for excellent service in full service restaurant that can be used to serve as a bench
mark to enable restaurant to initiate and develop customer’s relationships
differentiated offering and retention etc., resulting because of customer satisfaction.
The purpose of this study is to measure the perceptions of customers regarding online
food ordering among the customers of Chennai city.

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1.5 Objectives of the Study

Following are the objectives of the study.

This study aims to design and construct an “Online Ordering System”,

• To provide convenient and easy access in placing their orders and payment.

• To find out the customers perceptions and knowledge of online food ordering that
influences their buying decisions.

• To analyse what channel is used more frequently in online food ordering.

• To study the advantages and disadvantage of online food ordering.

1.6 Statement of the problem

Customers Perception towards Online Food Ordering Among the Customers of

Chennai City.

1.7 Chapter Plan

In the 1st chapter, the investigator presents the concept and introduction, problem of
the study, scope and significance of the study, objectives and statement of the
problem, need for the study.

In the 2nd chapter, the investigator presents profile of the study and review of
literature.

The 3rdchapter deals with the statement of the problem, variables of the study,
operational definition, objectives of the study, sample selection, sampling procedure,
tools for collecting data.

The 4th chapter deals with the analysis and interpretation of data.

In the 5th chapter deals with the summary, findings and conclusion of the study.

In the 6th chapter the annexure and bibliography.

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Operational definition

Customer perception: customer perception is defined as the way that customers

usually view or feel about certain services and products. It can also be related to
customer satisfaction which is the expectation of the customer towards the products.

The Internet: This term is used to describe computer networks capable of providing
virtually instant access, organizing, communicating information and supporting
transactions. The Internet is an efficient medium helping companies to interact and
craft messages and marketing activities on actual consumer responses 24 hours a
day,

Online ordering: This term is used to describe a transaction carried out by 7 days a
week, throughout world time zones consumers in order to search, select, and
purchase products via the Internet.

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 CHAPTER II

Profile of the study

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2.2 Review Literature

A literature review is an account of what has been published on a topic by accredited

scholars and researchers. The purpose of reviewing service literature over a topic is
to gain knowledge and ideas of what have been established on a topic, and what their
strengths and weakness are. As a piece of writing, the literature of review is defined
by a guiding concept. Example the research problem and is not merely a descriptive
list of the material available or a set of summaries. Besides enlarging one’s knowledge
about the topic, writing a literature of review does the following: Because online food
ordering is essentially a self-service technology, let’s look at some of the studies that
have been conducted on consumer adoption of self-service approaches. Well-
designed self-service ordering systems give customers substantial control over the
pace of their transaction and allow them to limit the amount of personal interaction
they experience, if desired. In most cases, an increased level of control has been
shown to lead to higher customer satisfaction and greater intent to use or recommend
the service. Bear in mind, though, that this increased control may not be attractive to
all customers, particularly those who desire personal contact. In designing a self-
service system, one must focus on the issue of customer control, since your customers
will most probably be using the system without the presence of an employee.
Perceived convenience of a self-service system also leads to an increase in both
adoption and satisfaction. In this instance, the definition of convenience is related
primarily to access convenience and transaction convenience.

The downside of self-service technology occurs with people who have technology
anxiety and those who need human interaction. Muter et al. have shown that these
factors can affect adoption of self-service ordering and satisfaction with it. Customers
who evaluate service quality based on interactions with employees won’t want to use
self-service ordering. Similarly, customers who are uncomfortable with technology
may be reluctant to try an online self-service site because they may be afraid of getting
tangled up in the technology.

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LITERATURE REVIEW

Behavioural Intention (BI)

Given the growing popularity of OFD services, customers tend to want to know more
about the electronic order delivery system and try to use it. This behaviour is called
behavioural intention. Behavioural intention refers to an individual’s likelihood to
act or a customer propensity to subscribe to the system in the future (Brown and
Venkatesh, 2005; Dwivedi, 2005; Venkatesh and Brown, 2001). Behavioural intention
can also be defined as a kind of purchase intention which can be used to predict
customer purchase behaviour. This will affect an individual choice to adopt OFD or
not to adopt OFD in the future. According to Yeo et al.
(2017), a person’s attitude can be highly predictable towards the person’s
intention to perform. The study pointed out that an individual’s action will depend on
the criterion of the behaviour which he or she will hold and a positive attitude will
subsequently lead to the behaviour to adopt the product or technology. Based on the
past research from Olorunniwo etal. (2006) behavioural intention is related to
customer experience. The more positive the experience was, the more customers
will be willing to adopt OFD. For example, with the satisfaction of online takeaway
system, customers who prefer to limit personal interaction with others may have
high intention to adopt the online system, especially those customers who have had
negative experience with frontline staff or sales personnel (Katawetawaraks &
Wang, 2011; Collier & Kimes, 2013).

Perceived Ease of Use (PEOU)

PEOU is the degree to which an innovation is perceived to be easy to understand,

learn or operate (Rogers, 1962). Similarly, Zeithaml et al. (2002) stated that PEOU is

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the degree to which an innovation is not difficult to understand or use. Davis (1989)
and Davis et al. (1989) reaffirmed that the degree to which the respondents believe
that they could use the particular technology with minimum efforts could be considered
as PEOU. PEOU according to Consult (2002) is the ability of respondents to
experiment with innovative technology and where they
could evaluate its benefits easily. It has been recognized as an important element to
change the attitude and behavioural intention of consumers and establish the
acceptance of technology usage among consumers (Cho & Sagynov, 2015).

The effect of PEOU ultimately will affect consumers’ behavioural intention in

online environment and has significant positive effect on purchase intentions (Cho
& Sagynov, 2015). Chen & Barnes (2007) also discovered that PEOU significantly
affect the adaptation intentions of customer. To encourage more people to use a new
technology, it is suggested that companies develop systems that are easy to use
(Jahangir & Begum, 2008). Study by Chiu & Wang (2008) discovered that PEOU
positively affect the continuance intention of customers in the context of Web-based
learning. The behavioural intention to use any online services is dependent upon
the perception of the potential adopters, which could be
favourable or unfavourable. Ramayah & Ignatius (2005) found that customers are
unwilling to shop online if the PEOU is hampered by certain barriers such as the long
download times of the Internet retailer websites and the poorly designed websites.
Thus, it is imperative that the design of OFD websites to be clear and understandable
so that it will smoothen customers experience to make an order easy. Besides,
Venkatesh & Davis (2000) reaffirmed that the extent of customers PEOU of the
technology will lead to behavioural intention. Based on the
discussion above, it can be hypothesized that:

H1: Perceived ease of use (PEOU) positively influence behavioural intention of online
food delivery services.

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Time Saving Orientation (TSO)

Time saving orientation is the most critical factor to influence customers’ motivation to
use the technology-based self-service (Meuter et al., 2003). When an individual find
himself lack of time due to daily activities, such as work and leisure activities, this will
lead the person to look for instances where they could save time (Bashir et al 2015,
Settle & Alreck, 1991). In recent years due to the hectic lifestyle, many people dislike
the effort to look for food and waiting for the food at restaurants. They would prefer
that food comes to them without much effort and to be delivered as fast as possible
(Yeo et al., 2017). Time saving is one of the major contributory factors that influence
behavioural intention of people to purchase online (Khalil, 2014). Shopping online is
considered time saving because shoppers do not need to physically leave the current
place to purchase something. Based on the research from Sultan & Uddin (2011),
time saving has a positive effect on behaviour intention toward online shopping.
The researchers found that many people perceived that online shopping takes lesser
time as it does not require them to waste time to travel out as compared to traditional
offline shopping (where they need to be physically present at the store). Alreck &
Settle (2002) reaffirmed that traditional modes of offline shopping is more time
consuming than online shopping as customers do not need to travel out to face traffic
jam, search for parking and also to queue in line to do payment. In another study,
Alreck et al (2009), found that many consumers wish that they could save more time.
Consumers tend to want to save time so that they could complete other urgent
matters as soon as possible. Research from Ganapathi (2015), and Zendehdel et
al (2015) have also shown a significantly positive effect of time saving towards
behavioural intention to adopt online shopping. Based on the above supporting
evidence, it can be postulated that:

H2: Time saving orientation positively influence behavioural intention of online food
delivery
services.

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Convenience Motivation (CM)

The rapid urbanization has created a situation where urban dwellers find limited
time especially during the weekdays for them to prepare their own meals or even to
have their meals in the restaurants. Hence, they tend to consume more fast foods or
just skip the meals entirely (Botchway et al, 2015). In order to satisfy the needs of the
customers and to increase the business sales, many restaurants started to create
new business models by offering OFD services to consumers. In OFD services
context, convenience is defined as the perceived time, value and effort required to
facilitate the use of OFD system. Research has shown that
convenience was seen as an ongoing barrier that affect the future intention
(Seiders et al, 2005). This means that the system needs to achieve a certain desired
level of convenience before it could encourage future intention. Motivation is also
important as it will affect the attitude and willingness of customers. Once the
convenience level meets the expectation of customers, they would be motivated to
use that system continuously.
Jiang et al. (2011) stated that convenience is one of the principal motivations for users
to adopt electronic technology because customers must be convinced of their value
before they are willing to use this technology. As companies introduce new
electronic ordering and delivery system to the public, the convenience in using it
spur customers to use it.
Kimes (2011) mentioned that users have the capability to utilize the new, easy and
safe electronic technology. Allowing consumers to place order and receive the foods
anytime and anywhere, customers would prefer to do online food purchase rather than
store purchase. Making online takeaway have many advantages such as the
avoidance of poor customer service (Chen & Hung, 2015) and the prevention of
in-store traffic (Katawetawaraks & Wang, 2011).
Convenience in time and effort are important attributes for consumers to adopt the
OFD services (Collier & Kimes, 2013). Convenience-oriented shopper would always
take time and effort into consideration (Zhou et al., 2007). They would prefer to shop
at home to minimize the time, avoid crowded market and initiate the transaction at
anytime and anywhere. Thus, by using the online purchase system, the location is
irrelevant to them during purchasing (Chen & Hung, 2015). Thus it can be
hypothesized that:
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H3: Convenience motivation positively influence behavioural intention of online
food delivery services.

Privacy and Security (PS)

Belanger et al (2002) defined privacy as the probability to access, copy, use, and
destroy personal information of oneself. Example of personal information are name,
phone number, mailing address, bank account, email address, password and so on.
Due to the many highly publicized news on the breach of personal data by well-
known companies, consumers are increasingly feeling insecure on how and where
their personal information are used during online transaction (Flavian and Guinaliu,
2006).

Security according to Kalakota and Winston (1997) is threat which created potential
incidents related to security of payments and storing of information through online
transactions. Many customers avoid online purchase due to privacy factors, non-
delivery service, credit card fraud, post purchase service and more.
Zulkarnain et al. (2015) found that the degree of trust will affect customer’s
intention to purchase products online. They discovered that privacy and security has
become the main concern for online shoppers. To ease people’s minds about the
issues of privacy and security, many websites have implemented policies to enable
customers to verify, audit and certify privacy policies for online transactions
(Ranganathan and Ganapathy, 2002).

Generally, privacy and security are positively interrelated (Lichtenstein & Williamson,
2006). The more the privacy and security are assured to the customers in online
shopping, the more the level of confidence of customers to shop online (Bashir et al
2015).
Privacy and security is also positively related to online purchase behaviour (Miyazaki
& Fernandez, 2000). Based on the research from Sultan & Uddin (2011), there is a
positive effect between privacy and security and behavioural intention to adopt online
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shopping. The authors also found that most of the respondents think that
trustworthiness is important while shopping online. The lack of trust in companies
handling personal information and security prompted many consumers in
European Union to avoid making online purchases (Flavián & Guinalíu, 2016).
Belanger et al (2002) found that over seventy percent of consumers refused to provide
information online or to make purchase online due to privacy and security problems.
The reason given is that they are worried about the lack of protection of their
personal information. Companies that provide verification system in their website will
made consumers feel more secure (Belanger et al 2002).

Customer Satisfaction

According to The City Pages, Minneapolis/ St. Paul reviewed about one Vietnamese
restaurant in town by Moskowitz (1999) said “Customers are stocking up in pursuit of
fresh, simple Vietnamese food made with an emphasis on clean flavour and bright
herbs, delivered quickly, and priced reasonably".

Meeting Customer Expectations

Increasingly, customers have higher expectations, demanding more attention and

friendlier service. Most customers seem satisfied with food quality, dinning are
cleanliness, comfort of the atmosphere, freshness of the ingredients, and portion size.
Indeed, the only area where satisfaction is less than 50 percent relates to noise level.
As the customer base ages this is expected to become of even greater concern. Rising
expectations manifest themselves in a desire for a better price/ value relationship.

26
Perception

Perception is defined as a process through which individuals are exposed to

information, attend to the information, and comprehend the information (Mowen,
1995). Understanding perception and the factors determining how consumers view
products and services is central to effective marketing (Berkman, Lindquist, and Sirgy,
1996). Schiffman and Kanuk (1994) stated about consumer perception saying "as
diverse individuals, we all tend to see the world in our own special ways.

"Reality" to an individual is merely that individual's perception of what is "out there"- of

what has taken place. Individuals act and react on the basis of their perceptions, not
on the basis of objective reality. Thus, to the marketer, consumers' perceptions are
much more important than their knowledge of objective reality. For if one thinks about
it, it's not what actually is so, but what consumers think is so that affects their actions,
their buying habits, their leisure habits, and so forth. And because individuals make
decisions and take actions based on what they perceive to be reality, it is important
that marketers understand the whole notion of perception and its related concepts so
they can more readily determine what factors influence consumer to buy."

Motivation

Motivation can be described as the driving force within individuals that impels them to
action. This driving force is produced by a state of tension, which exists as the result
of an unfulfilled need. Individuals strive-both consciously and subconsciously-to
reduce this tension through behaviour that they anticipate will fulfil their needs and
thus relieve them of the stress they feel. The specific goals they select and the patterns
of action they undertake to achieve their goals are the results of individual thinking and
learning (Schiffman and Kanuk, 1994).

What motivate people to eat out According to Lundberg (1994) said people eat out for
a variety of reasons: to satisfy hunger, social needs, and ego and self-fulfilment needs.
The most popular theory of motivation, that proposed by A.H. Maslow, states that
humans are wanting animals. As soon as one need is satisfied, another appears to
take its place, motivating from the need for safety or security up the scale through

27
social, ego, and self-fulfilment. People go to restaurant to satisfy not only hunger but
also self-esteem, self- respect, self-confidence, and prestige needs

The Buying Process

Various internal and external factors combine to influence how customers choose
where, when, how, and why to eat out. The vehicle used to explore this will be a
national study prepared by the National Restaurant Association on the dinner market

This report divides all dinner decisions into five basic decision scenarios:

"Fun time." This relates to an upbeat mood and a sense of anticipation of fun; the
decision tends to be made well in advance.

"Nice meal out." The desire is t enjoy the satisfaction or enjoyment of eating out,
being served, and getting good food, lots of it, at a reasonable price.

"Craving." This refers to a desire for a particular type of food; seeing or smelling
this type of food can set off the carving.

"Making sure that everyone is getting something to eat." This motivation comes
from the hectic pace of everyday life, attempting to balance a variety of work and family
schedules.

28
CHAPTER-3

29
Methodology

30
3.1 Introduction to Research Design

Research design is a logical and systematic plan prepared for directing a research
study. It specifies the objectives of the study and techniques to be adopted to achieve
the stated objectives. It is a specification of methods and procedures for acquiring the
information needed for solving the problem. It involves arrangement of condition for
collection and analysis of data in a manner that aims to combine relevance to the
research purpose with economy in procedure. So a research design is the conceptual
structure with which research is conducted.

In the previous chapter a brief review of related literature was presented. The review
of related literature helped the investigator to have a clear background about the
subject of study and also a method and procedures to be adopted for the present
study.

In the present chapter it deals with the methodology of the concerned study in terms
of statement of the problem, operational definitions sampling procedures, size of the
sample and description of the tool have been explained.

Research design is a logical and systematic plan prepared for directing a research
study. It is quest for knowledge. Research may be defined as a process of knowing
new facts and verifying old ones by application of scientific methods to a natural or
social phenomenon.

Meaning – Research design or methodology is simply a plan for study. It is called a

blue print to carry out the study. It is like plan made by an architect to build the house,
if research is conducted without a blue print, the result is likely to be different from that
what is expected at the start. It specifies the objectives of the study and techniques to
be adopted to achieve the stated objectives. It is a specification of methods and
procedures for acquiring the information needed for solving the problem. It involves
arrangement of condition for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure. So a research
design is the conceptual structure with which research is conducted.

31
3.2 Data collection methods:

The success of any project or market survey depends heavily on the data collection
and analysis. It is necessary that the data collected is a reliable data in order to achieve
the research objectives. All data sources can be classified into two:

Primary data-

primary data is gathered from direct observation or data personally collected. It refers
to that data which is collected for a specific purpose from the field of enquiry and are
original in nature. For the project primary data were collected mainly through survey
method, using the tool questionnaire.

Secondary data-

Are those which have been already collected by others for a specific purpose and are
subsequently used for application in different conditions. It is the second hand
information about an event that has not been personally witnessed by the researchers.
The use of secondary data saves time and money. The purpose is to increase the
accuracy of analysis.

Here the secondary data was obtained from---

Various text books, registers, magazines, journals. Dissertations etc.

Websites of the organization.

Sample Procedure

Sampling is a miniature picture or the cross sectional of the entire group from which
the sample is taken. The most important factor in determining the general ability of
research results is the selection of sample used in collecting the research data, so
after finalizing the variables the entire population is to be made the subject for data
collection or a particular group is to be selected as representative of the whole
population.

32
Sample design:

Non probability sampling is used. Random customers who use online food ordering
especially who are within the area of Chennai city were selected for primary data.

Sample:

A Sample of 59 customers both male and female drawn from Chennai district have
given back the duly filled up questionnaire. Out of the total population of customers in
Chennai 59 respondents have been taken as the sample size.

Tools for collecting data:

A research tool plays a major role in any worthwhile research as it is the sole factor in
determining the sound data and in arriving at perfect conclusions about the problem
or study on hand, which ultimately, helps in providing suitable remedial measures to
the problems concerned.

Questionnaire---

For this project work, data is collected from respondents using the questionnaire. In a
statistical enquiry the requisite information is often collected through a provided
1Performa in the form of a questionnaire. The investigator intends to use a tool and a
manual to measure the customers’ perception among the customers of Chennai city.
It consists of four options of summated rating scale. This sheet contains a series of
questions, which the investigators are supposed to ask the information and the
respondents are supposed to tick the option against each individual question.

33
 CHAPTER – IV

ANALYSIS AND INTERPRETATION

34
4.1 Analysis and Interpretation of Data

In the previous chapter the methodology used by the researcher is carrying out the
present investigation had been discussed in detail. The present chapter deals with the
presentation of the analysis and interpretation of the data. As stated earlier the
purpose of this study was to find out the customers’ perception towards online food
ordering among the customers of Chennai city. The data obtained from responses to
the questionnaire, and tabulated and analysed. The data for this purpose was
collected with the help of readily available tools. Interest of customers is necessary to
find out the answer for the questions.

35
Table 01: Showing the Age Group of Customers

Education Level No of respondents % of respondents

20-25 52 88.1%
26-30 4 6.8%
31-35 1 1.7%
36-40 1 1.7%
40&above 1 1.7 %
Total 59 100%

1.7,
1.7,2%
2%
6.8,1.7,
7% 1%

20-25
26-30
31-35
36-40
88.1, 88%
40&above

Interpretation from the above graph it was found that most of the respondents who
ordered food online were between the ages of 20-25 years followed by 7.8% percent
who are between the ages of 26-30 years. 2 percent of the respondents are between

36
the ages of 36-40 years, 2 percent of the respondents are between 31-35 years of the
respondents , 2% of the respondents are between 36-40 and also 40 & above.

Table 02: Occupation of people who have responded

Occupation No of respondents % of respondents

Employee 15 25.4%
Students 39 66.1%
House wife 2 3.4%
Others 3 5.1%
Total 59 100%

Occupation

3.4
5.1

25.4

66.1

Employee Student House wife Others

Interpretation from the above graph it was found that nearly 39 percent of the
respondents were employees followed by 39 percent who were professionals, 10
percent of the respondents were self-employed and 10 percent were house wives

37
Table 03: Showing the Marital Status

Martial Status No of respondents % of respondents

Married 7 11.9%
Unmarried 52 88.1%
Total 59 100%

Martial status

11.9

88.1

Married Unmarried

Interpretation from the above graph it was found that nearly 71 percent of the
respondents who were selected randomly are married and nearly 21 percent were
unmarried.

38
Table 04: Showing the findings of Online food ordering easy and convenient?

Details No of People Comparison %

Yes 38 64.4%
No 3 5.1%
May be 18 30.5%
Total 59 100%

Online food ordering easy and convenient

31%

5% 64%

Yes No May be

From the above graph it was found that nearly 50 percent of the customers found easy
and convenient to some extent followed by 38 percent who say to some extent and
next is 7 percent No and the least is 4 percent that is quite an extent. By reviewing the
above data one can conclude that the Online Food Ordering media is popular and
easy to access. From the above graph it was that most of the respondents find online
food ordering secured.

39
Table 05: Which is the convenient Online food ordering app?

Apps No of Users % of Total Users

Swiggy 17 28.8%
Zomato 35 59.3%
Others 7 11.9%
Total 59 100%

Convenient online food ordering apps

others 13.3

Zomato 58.5

Others 13.3

0 10 20 30 40 50 60 70

Series 1 Series 2 Series 3

Nearly 43 percent of the customers used Telephone because even today telephone is
the main source of communication 28 percent of the customers use Restaurant site
followed by 11 percent who use Restaurant App, 9% use Multiple restaurant site and
remaining 9% use all channels. Telephone media is very widely used and accepted
channel, people found themselves more comfortable and safe.

In India now Telephone is basic necessity hence this channel is more popular. Also
the restaurant website are becoming popular and in near future definitely it will
overtake the telephone channel.

40
Table 06: What Occasions have you order food in online?

Occasions

13.6
28.8

42.4

39

Business events Special occasions Don’t want to cook Others

Frequency of ordering by dining occasion .Respondents were asked to evaluate the

important of different dining occasions (defined as at least once a month) users order
food on occasion like Business Event and Special Occasions are 24% each wherein
on social and don’t want category contributes 23% each. On Business events and
special occasion’s people tend to order foods online hence the customers.

41
Table 07: How often do you order food in online?

Details No of respondents % of respondents

Daily 3 5.2%
Weekly 22 36.2%
Monthly 29 50%
Never 5 8.6%
Total 59 100%

often ordering in online

8.6 5.2

36.2

50

Daily weekly monthly never

As indicated in the graph 64 percent of the respondents order food monthly followed
by 24 percent who order food weekly. Nearly 8 percent of the food is ordered yearly
followed by 3 percent of the respondents who never ordered food. According to our
survey, we found foods ordered monthly is higher hence the company should look
into improving/providing benefits to customers who order foods on monthly with
some discounts, additional benefits, etc.,

42
Table 08: What are the days have you order food in online?

Column2 Column1 Series 1

Never
13.6

Anytime
35.6

Weekdays
35.6

Weekend
45.8

0 5 10 15 20 25 30 35 40 45 50

Nearly 52 percent of the respondents order food anytime followed by 37percent of

users order on weekends. The major segment of order received without having any
time frames. As the demands are expected any point of time the company should be
able to meet the requirements and make necessary arrangements to accept and fulfil
the customer requirements. 24/7 support is made available to customers.

43
Table 09: How did you came to know about the online food ordering system

Details No of respondents % of the respondents

Advertisement 16 27.1%
Friends 24 40.7%
Social media 18 30.5%
Newspaper 1 1.7%
Total 59 100%

1.7

27.1
30.5

40.7

Advertisement Friends Social media Newspaper

Interpretation from the above graph shows that nearly 32 percent users came to

know about the project through friends followed by 26% through internet and

23% through advertisements. It is clear from the about details that the customer

satisfaction and customer relationships helps in growth of business. Company

should take measures to improve quality, customer satisfaction, marketing, etc.

44
Table 10: How much do you spend for food ordering?

Amounts No of respondents % of respondents

100-500 30 50.8%
600-1000 19 32.2%
1000&above 10 16.9%
Total 59 100%

16.9

50.8

32.2

100-500 600-1000 1000&above

Interpretation from the above graph shows that nearly 47 percent of the respond
opened Rs.1,000 per month on using online food followed by 39 percent who spend
Rs. 2000 and 7 percent respond spend 3000 & 7 percent in more than 3000. The
highest order is received in 2000 category, the middle class people have Placed more
orders and the bulk of order is medium. Company should adopt measures wherein the
interest of order category of 2000 is addressed well on time which will help in meeting
the organizational goals.

45
Table 11: What problems do you face while ordering food in online?

Problems No of respondents % of respondents

Site is slow 14 23.7%
Delivery time is more 28 47.5%
Others 17 28.8%
Total 59 100%

23.7
28.8

47.5

Site is slow Delivery time is more Others 4th Qtr

Challenges faced while ordering food online

27 percent of the customers admit that while ordering online food the site is slow
followed by 26 percent of the delivery time is more whereas24 percent of the site is
not opening and the least is 19 percent say that the Service follow-up is poor.
Company should analyse and improve the performance of website and on
periodically review and take necessary measures to help the customers provide
friendly access to websites. Take adequate measures in improving the quality of
service and access to portals.

46
Table 12: Do you think online food ordering is secured?

Details No of respondents % of respondents

Yes 29 49.2%
No 7 11.9%
Maybe 23 39%
Total 59 100%

Yes
39, 39%
No
49.2, 49%
May be

11.9, 12%

Interpretation from the above graph shows that nearly 78 percent of the respondents
felt secured and nearly 20 percent of the respondents were not secured while
ordering food online due to various reasons. The details gathered clearly states the
online media is becoming popular and people felt that it is Safer hence company
should make sure that the online websites are managed properly and provide
required information about the product online.

47
Table 13: What mode of payment do you prefer while ordering food in online?

Details No of respondents % of respondents

Internet transaction 23 39%
Cash on delivery 33 55.9%
Cards 3 5.1%
Total 59 100%

5.10%, 5%

Internet transactin
39%, 39%
Cash on delivery
Cards

55.90%, 56%

Nearly 71 percent of the respondents pay cash on delivery followed by 21 percent of

the customers pay through internet transaction and the least is 8 percent through
credit. It is clear that the payment should be made on delivery of food, the customer
satisfaction should be ensured with utmost care. Necessary measures should be
taken for delivery of food on time with best quality and within the stipulated time

48
 STATISTIC ANALYSIS

Crosstabs

[DataSet2]

49
RESULTS:

I have got 0.568 in chi square test it accept null hypothesis and reject alternative
hypothesis.

50
 CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSION

Based on the analysis and discussion on primary data in the previous chapter.

Finding, Suggestions, and Conclusion of the study in logical manner.

5.1 FINDINGS:

From the questionnaire, the following points are found and noted:

✓ Majority (88.1%) of the respondents of my questionnaire belong to the age

group 20-25.
✓ Majority (66.1%) of respondents are students.
✓ Majority (88.1) of respondents are unmarried.
✓ Majority (64.4%) of the respondents are said yes.
✓ Majority (59.3%) of the respondents are order through Zomato app.
✓ Majority (42.4%) of the respondents are order food on Special Occasions.
✓ Majority (50%) of the respondents are monthly using online food order
✓ Majority (45.8%) of the respondents are order food weekends
✓ Majority (40.7) of the respondents are came to know through friends.
✓ Majority (50.8%) of the respondents are spent 100-500.
✓ Majority (47.5%) of the respondents are facing challenges with delivery time is
more.
✓ Majority (49.2%) of the respondents are secured.
✓ Majority (55.9%) of the respondents do their payments through cash on
delivery.

51
SUGGESTIONS:

❖ As professionals lack time to cook and since they have to get back on their
busy lives, online
❖ food ordering should be made convenient for them using Zomato app.

❖ Restaurants operators should increase online ordering through simple addition

of new distribution channels to attract the customers.

❖ As most of the customers use telephone and mobile phones to order food
online, restaurant operators should encourage them by responding effectively
to telephone calls that provide human interaction.

❖ Customers face a lot of challenges as the delivery time is more. Thus the
restaurant operators must know some techniques to place the order quickly
and effectively.

❖ Restaurants should focus on giving their customers the best quality and
various options on choosing the variety of food stuff.

❖ More and more customers should be encouraged to order food online as now-
a-days it becomes difficult for an individual to go and place orders directly to
the restaurants and also some customers are uncomfortable with the recent
upcoming technology.

52
LIMITATION OF THE STUDY

➢ Relying on the third-party results in Loss of Control over the business.

➢ No direct contact with the customers.
➢ Delivery charges result in an increase in labor cost which is ultimately born by
the consumers.
➢ Compromise in food quality.
➢ Additional Packaging charges.
➢ Fierce competition between the restaurants dealing in the same business.

CONCULSION

After studied the customers’ perception of online food ordering it is concluded that
every system has its strengths and weakness. The purpose of this online food ordering
system is basically to save the time of the customers especially when he/she has to
invite people for any occasion. The chief reason of online ordering is convenience.
The single most important attribute of online ordering is accuracy. This study found
that online food ordering is reasonably popular among the residents of Chennai city.
Nearly 59 percent of the respond0ents were aware of the online food ordering.
Customers between 20-25 years of age ordered more online food and it was often
ordered as they didn’t want to cook especially during the weekends. Customers who
evaluate service quality based on interactions with employees won’t want to use self-
service ordering. Similarly, customers who were uncomfortable with technology may
be reluctant to try an online self-service site because they may be afraid of getting
tangled up in the technology. This study has shown that perceived control and
convenience are keys to customer use of online ordering which leads to higher
satisfaction. My findings indicate that restaurant operators should focus on giving their

53
customers higher levels of perceived control and convenience, since these are
associated with a higher intent to use online ordering in the future. Young customers
are more likely to use online, mobile or text ordering. Young customers place a greater
value on convenience and speed than older users do.

To conclude customers will appreciate not having to wait and other waiting customers
may be motivated to try online food ordering.

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APPENDIX:

A STUDY ON CONSUMER PRECEPTION AND SATISFACTION TOWARDS

ONLINE FOOD DELIVERY SYSTEM WITH SPECIAL REFERENCE IN CHENNAI

1.Name of the respondents

______________________________

2.Age of the respondents____________________

a.20-25
b.26-30
c.31-35
d.36-40
e.40&above

3.Occupation of the respondents__________________

a. employee
b. student
c. house wife
e. others

4. Martial Status of the respondents______________

59
a. married
b. unmarried

5. Do you feel online food ordering is easy convenient___________

a. Yes
b. No
c. Maybe

6.Which is convenient online food ordering apps______________

a. Swiggy
b. Zomato
c. others

7. On what occasions have you ordered food in online____________

a. Business Event
b. Special occasions
c. Dont want to cook
d. Others
8. How often do you order food in online____________

a. Daily
b. Weekly
c. Monthly
d. Never

9. What days do you order_____________

a. Weekend
b. Weekdays
c. Anytime
d. Never

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10. How did you came to know about online food ordering__________

a. Advertisement
b. Friends
c. Social media
d. Newspaper

11. How much do spend for food ordering in online___________

a. 100-500
b. 600-1000
c. Above 1000

12. What challenges do you find while ordering food in online_____________

a. Site is slow
b. Delivery time is more
c. Others

13. Do you think online food ordering is secured?

a. Yes
b. No
c. Maybe

14. What mode of payment do you prefer for order food in online?

a. Internet Transaction
b. Cash on delivery
c. Cards

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