research on factors affecting customers’ decision to use online food ordering service in hanoi

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS RESEARCH PROPOSAL RESEARCH ON FACTORS AFFECTING CUSTOMERS’ DECISION TO USE ONLINE FOOD ORDERING SERVICE IN HANOI CLASS KTEE206 1.

FOREIGN TRADE UNIVERSITY

SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

4.1 Ethical issues during choice of topic, research design and gaining access 16 4.2 Ethical issues during data collection, analysis and reporting stage 17

in the fast food industry have known to use the Internet to order food online.

Online food delivery is a business attracting billions of dollars of investmentworldwide The platform is also thriving in Vietnam and growing steadily.According to statistics from many organizations, Vietnam's online food orderingmarket currently has a lot of potential In 2020, the number of users of food deliveryapps has increased significantly, and the competition between apps is getting fiercer.Food ordering applications bring convenience to users, especially in the currentcomplicated situation of the epidemic in 2020 Everyone can order their favoritefood without leaving home, and restaurants can remain open during times of socialdistancing These general pattern apps are making the lives of urban dwellers easier.Grab, Now, Gojek, Baemin, and LoShip are the 5 most used apps, of which Graband Now hold the largest market share A "pioneer" in the field, Now, which startedexperimenting with food delivery in 2014, combined its then-exclusive and

innovative delivery service with a TV channel to achieve success A large number offood retailers and beverage suppliers (about 20,000 stores) and attractive promotionshave quickly attracted users In mid-2017, Foody's CEO once shared that Now hasnearly 10,000 orders per day.

With the development of society, the economy, and information technology, thetrend of using online food ordering services is gradually promoting the advantages

of products in the changing new era We hope to study the factors affectingconsumers' decision to use online food ordering services and recommend transportcompanies specially to increase or decrease market share in the fierce competition tosustain the current market That's why we chose the topic: “Research on factorsaffecting customers' decision to use online food ordering service in Hanoi.”

II. Literature Review

1 Theoretical framework

1.1 Online food ordering

According to Eva-Marie Meemken and partners (2022), online food ordering is theprocess of placing a food order from a website or other application, either fordelivery or pickup The product can be either food that has been specially preparedfor direct consumption (such as vegetables straight from a farm or garden, fruits,frozen meats, etc.) or food that has not (such as food that comes from a homekitchen, restaurant, or virtual restaurant)

According to Tricia Christensen (2022), online meal ordering might be consideredthe Internet's response to the need for food delivery People are increasingly usingtheir Internet connection to place orders from restaurants with interactive menus,particularly in urban areas and on college campuses Although many individuals use

a desktop or laptop computer for this, any Internet-capable device that can processcomplex web pages can be used to place orders Online grocery shopping is a

second definition of online food ordering, which differs from putting one-timeorders with restaurants.

1.2 Service

Service is the act of doing something for someone else or something else is aservice It is largely non-material (i.e., intangible) Because it can be touched andowned, a product is material Typically, a service is an experience that is consumedwhen it is purchased and cannot be owned because it quickly disappears It'spossible for someone to visit a cafe one day and receive excellent service, only tohave a poor experience the following day Service is an activity that does not result

in a transfer of ownership and has some element of intangibility associated with itincludes some interaction with the customer or with their property

Other definition of service:

● Service is described in the Oxford English Dictionary as “the action ofserving, helping, or benefiting; conduct tending to the welfare or advantage

of another; condition or employment of a public servant; friendly orprofessional assistance.”

● According to Webster’s Ninth New Collegiate Dictionary, service isdescribed as “the occupation or function of serving others; employment as aservant; contribution to the welfare of others.”

● Philip Kotler defines a service as, “Any act or performance that one partyoffers to another that is essentially intangible and does not result in theownership of anything Its production may or may not be tied to the physicalproduct.”

● According to Kotler and Armstrong, “A service is an activity or benefit thatone party can offer to another that is essentially intangible and does not result

in the ownership of anything Its production may or may not be tied to aphysical product.”

● According to Quinn, Gagnon, “Services are actually all those economicactivities in which the primary output is neither a product nor a construction”

● According to Gronroos, “A service is an activity or series of activities ofmore or less intangible nature that normally, but not necessarily, take place ininteractions between the customer and service employees and/or systems ofthe service provider, which are provided as solutions to customer problems”

● “Services are activities, benefits or satisfactions, which are offered for sale orare provided in connection with the sale of goods” – American MarketingAssociation

● “Services refer to social efforts, which include government to fight five greatevils- wants, disease, ignorance, squalor and illness in the society” – SirWilliam Beveridge

● “The service is an activity that has an element of intangibility associated with

it and involves the service provider’s interaction either with the customer orwith the property belonging to the customer The service does not involve thetransfer of ownership of the output” – Adrian Payne

1.3 Consumer behavior

According to Philip Kotler and Gary Armstrong (2016), consumer buyer behavior isthe buying behavior of final consumers, who are individuals and households thatbuy goods and services for personal consumption In other words, consumerbehavior is the study of the process involved when individuals or groups select,purchase, use, dispose of products, services, ideas, experiences to satisfy their needs.Consumer behavior is affected by various determinants, namely cultural, social,personal and psychological characteristics

Consumers’ behaviors affect the decision of ordering food online in various wayssuch as the choice of ecommerce platforms, choices for food, consumers’ purpose orintention when choosing to order food online, frequency Therefore, thesebehaviors not only have direct impact upon the consumers decisions but also thecompanies that provide relevant services Our research intends to examine thefactors that influence these behaviors, some of which are the easy-to-use interface,their income, the inconvenience of other food buying methods, …

2 Related researches

Zulkarnain Kedah and partners (2015) investigated the key factors that contributed

to loyalty in an online ordering environment Based on results, companies offeringonline food delivery services must emphasize information quality, website design,security and privacy, and payment systems to increase web trust and satisfaction.Furthermore, if the service providers offer efficient delivery, reliable customerservice, and high-quality food, they might be able to enjoy continuous recurringrevenues from loyal customers

Hong, C and partners (2021) examined the factors that influence customer intention

to use online food delivery services in the midst of the Coronavirus disease(COVID-19) pandemic In Study 1, six predictors (perceived usefulness, perceivedease of use, price savings, time savings, food safety risk perception, and trust) wereexamined for their effects on online food usage intention In Study 2, the model wasextended by including the perception of customer satisfaction

According to Sharma N and Varshney D (2019), the factors that influence attitudestoward Online Food Delivery Services include convenience motivation, hedonicmotivation, price saving orientation, time saving orientation, and prior onlinepurchase experience Due to research results, Price Saving Orientation andConvenience Motivation are the two most important factors that affect attitude

towards online food delivery services, followed by Time Saving Orientation andHedonic Motivation In addition, Prior Online Purchase Experience has the leastinfluence on consumers' attitudes towards online food delivery services.

1) The correlation relationship between personal factors, namely gender, wage,age and loyalty of customer loyalty to online food ordering devices

2) The correlation between various sources of information, namely personalrecommendations (family, friends, neighbors, .), commercial platform(advertisement, packaging, sale peoples), public (consumer rating orgs,Internet searches), experiential (examining, using) and customer loyalty toonline food ordering devices

In short, our study illustrates the importance of above personal factors, sources ofinformation and some factors and factors indicated from previous related studies tocustomer loyalty to online food ordering devices Thus, this research will be carriedout based on testing by model and building relevant hypotheses

RESEARCH QUESTIONS, AIM AND OBJECTIVES

I. Research objectives

According to research company Q&Me in December 2021, the results of a survey on

a group of men and women aged 18-40 in big cities (Hanoi, Ho Chi Minh City, and

Da Nang) indicated that there were up to 83% of respondents using food orderingservices, 20% higher than the figure in 2020 Of which, 77% of respondents usedonline food ordering services on phones

Therefore, the research on factors affecting customers' decision to use online foodordering services in Hanoi is fundamental and practical for business managers tomake strategic decisions and for the authorities to impose appropriate managementpolicies For that reason, our research objectives include the following:

• Determine factors affecting customers' decision to use online food orderingservices in Hanoi

• Determine the degree of influence of each factor on customers' decision touse online food ordering services in Hanoi

• Propose some solutions to improve the quality of online food ordering service

in Hanoi

II. Research questions

Based on the above research objectives, we pose the following research questions:

• What factors affect customers' decision to use online food ordering services

III. Research object and scope

● Research object: factors affecting the customers over 18 years old decision touse online food ordering service in Hanoi

● Research scope: consumers over 18 years old who use online food orderingservices in Hanoi

● Time duration: from October 1, 2022 to June 15, 2023

METHOD

I. Research design

1 Methodology

Our research chooses to apply Mixed methods research design: Sequential

exploratory design Mixed methods research design is the combination between

quantitative and qualitative and quantitative data collection methods In ourresearch Qualitative research is executed first, followed by quantitative research.Specifically, qualitative data collection is conducted at the beginning phase of theresearch in order to explore and verify the factors affecting customers' decision touse online food ordering service Subsequently, the research applies quantitativedata collection and analysis method to examine the relationship between thecollected factors and the customers’ choice to order food online

For the best outcome of the research, Mixed methods design is applied due tobelow suitability of the design’s characteristics with the research objectives:

● Initiation: Qualitative methodology is used in the first phase with theaim to better understand the research and to build a strong theoreticalframework, research questions and prepare for the next phase

● Facilitation: The qualitative phase may help to discover new factors ifavailable that influence consumer’s decision to order online food

● Complementarity: The qualitative phase helps to establish the possiblerelationships between variables meanwhile the quantitative phase helps

to test and verify those

● Diversity: The qualitative phase allows different views to complete theresearch.

2 Purpose of the research

The research that we conduct is a combined study (a combination of exploratory anddescriptive research) We will explain both the exploratory and descriptive features

of this research in the following sections

2.1 Exploratory study

Exploratory studies are useful for gaining insight into a topic of interest anddetermining what is happening In this research on factors affecting customers’decision to use online food ordering services in Hanoi, one of the objectives is togain Customer Insight

To be more specific, Customer Insights are facts that have the ability to influencecustomers’ behavior and purchasing decisions These facts are intentionally hidden

or hidden by customers without being easily detected Therefore, businesses need tospend a lot of time and effort to research because Customer Insight is not obviousand easy-to-see facts Sometimes, consumers themselves already have their ownInsights but don't realize them themselves For that reason, they always needsomeone to remind them of these truths.

In our research, we pose questions such as these truths

● What factors affect customers' decision to use online food orderingservices in Hanoi?

● What is the level of impact of each factor on customers' decision touse online food ordering services in Hanoi?

● What solutions help to provide more value to customers who useonline food ordering services in Hanoi?

With these research questions, we want to find out from customers the factors thathave the ability to influence their behavior and purchasing decisions, which helps togain Customer Insights and propose solutions to provide more value to customerswho use food ordering services in Hanoi particularly and in Vietnam generally

● These new findings may help online food ordering and delivery servicessuppliers find problems that need to be addressed in their services and fixthem to provide better services to customers

3 Research strategies

Because this research is a combination of exploratory study and explanatory study,the research methodology we choose is mixed-methods sequential exploratoryresearch design According to Mark N.K Saunders, Philip Lewis, and AdrianThornhill (2019), mix-methods research design includes techniques below:

1) Quantitative data collection techniques:

● The use of questionnaires

● The analysis of quantitative data

2) Qualitative data collection techniques

● Collecting qualitative data using interviews

● Collecting qualitative data using Archival and documentary researchtechniques

● Analyzing qualitative data

In terms of strategies, we choose survey and archival and documentary research:1) Survey:

According to Cambridge Dictionary, survey is an examination of opinions,behaviour, etc., made by asking people questions

Advantages of conducting a survey:

● Conducting a survey does not require spending much money on it It isone of the most inexpensive methods of collecting quantitative data

● Conducting a survey is one of the fastest ways to collect data It helps toprovide a source of data in a short period of time, from just one day to afew months

● Surveys provide a straightforward means of analyzing and visualizingdata

● Surveys conducted online or via email offer an excellent opportunity tokeep respondents anonymous

Disadvantages of conducting a survey:

● Answers given by people could be dishonest When using anonymoussurveys, the chances of receiving dishonest answers are reduced, but they

do not disappear entirely

● Survey questions may be misunderstood by a number of respondents,which makes the result inaccurate

● Respondents are fatigued because the questionnaire is too long or containsquestions that seem irrelevant.

Purposes of conducting a survey:

● By conducting a survey, we want to find out what factors that consumersconsider important when deciding to use online food ordering services inHanoi

● In addition, the results of the survey show the research team the degree ofinfluence of each factor on customers’ decision to use online foodordering services in Hanoi

● With some open questions, the survey provides respondents opportunities

to give their opinions and assessments about online food ordering services

in Hanoi

● Besides, respondents could suggest directions and solutions to improvethe quality of online food ordering services in Hanoi through their answers

to survey questions

2) Archival and documentary research:

Purpose of using Archival and documentary research techniques is to help form atheoretical framework including exploring the factors that influence the consumers’choice of online food service and how they are correlated

We recognize the disadvantages of this techniques when applied to our research asbelow:

The secondary data may not be originally collected for our research purpose, thusencountering some problems such as outdated information In addition, access toreliable secondary data sources is likely to be costly or limited due to legal

permissions Furthermore, the data quality may be low, which is both due tounintentional misconduct in data collection methods and analysis and bias inpresenting the data This biased presentation might come from the initial research’spurpose which is to emphasize some information only to claim their conclusion Forexample, some corporations when conducting research may prefer to present theirfindings in a way that most benefits them

However, we believe that Archival and documentary research techniques outweighits disadvantages when it comes to choosing a suitable method for our research.Firstly, the data is resource efficient despite financial obstacles mentioned above.Since the data now can be easily and freely available online, especially thegovernment data sources, the cost for accessing these is not high Moreover, theonline findings can save the research team a lot of time and prevent most ethicalissues arising from collecting primary data Secondly, this strategy can provide newinsights into the problems due to its wide range of choices offered through availableresources

4 Ethics of the research

Down below are the possible ethical issues that our team is most likely to encounterduring stages of the research and our team plan to handle those:

4.1 Ethical issues during choice of topic, research design and gaining

access

Consent of the participants to take part in the research