Factors influencing intention to use online food delivery services of vietnamese undergraduate students nowadays

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ---oOo--- FACULTY OF MATHEMATICS AND STATISTICS ESSAY ESSAY PRESENTED FOR Statistics for business and eco

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

-oOo - FACULTY OF MATHEMATICS AND STATISTICS

ESSAY

ESSAY PRESENTED FOR

Statistics for business and economics

Research topics

FACTORS INFLUENCING INTENTION TO USE ONLINE FOOD DELIVERY

SERVICES OF VIETNAMESE UNDERGRADUATE STUDENTS

NOWADAYS

INSTRUCTOR: MS TRAN HA QUYEN

GROUP: 2

Group 2

Member:

Hoang Thu Huong

Dang Huynh Thien Luan

Do Ni Na

Ho Thi Kim Ngan

Duong Yen Nhi

Tran Nguyet Thanh Tam

Nguyen Hoang Lam

TABLE OF CONTENTS

FOREWORD 7

CHAPTER 1 8

TOPIC INTRODUCTION 8

1.1 Research context 8

1.2 Research problem statement 8

1.3 Research objectives 9

1.4.1 Research scope 9

1.4.2 Research object 9

THEORETICAL BASIS, PREVIOUS RESEARCH RESULTS AND RESEARCH MODEL 10

2.1 Theoretical basis 10

2.1.2 Advantages of using Online Food Delivery Service 11

2.1.3 The importance of Online Food Delivery Service in the integration trend 12

2.2 Previous research results: 14

2.3 Model research 15

2.3.1 Previous model research 15

2.3.2 Model research suggested 16

2.3.3 Hypothesis of research: 16

CHAPTER 3 19

RESEARCH METHODS 19

3.1 Data Target 19

3.2 Data approach 19

3.3 Analytical plan 21

3.4 Confidence and validity 21

CHAPTER 4 23

RESEARCH ANALYSIS AND RESULTS 23

4.1 Descriptive Statistics 23

4.1.1 Gender 23

4.1.2 Academic Year 24

4.1.3 University 25

4.1.5 Used apps 27

4.1.6 Payment method 28

4.1.7: Weekly using time 29

4.1.8 Daily most order time 31

4.1.9: Money spent per using time 32

4.1.10: Reasons to use 34

4.1 11 Level of satisfaction regarding price 36

4.1.12: Level of satisfaction regarding food quality 36

4.1.13: Level of satisfaction regarding delivery time 37

4.1.14 Most used apps 41

4.1.15: Priority level of criteria of users for selecting OFDS applications 43

4.2 Statistical Inference 44

4.2.2 Regarding 2 population 51

4.3 Forecasting 62

CHAPTER 5 67

PROPOSAL AND CONCLUSION 67

FOREWORD

Nowadays, the continuous development of modern technology has been making our lives more comfortable and easier Living during the rush and bustle of working life, people have transformed into highly digital consumers who make decisions based on convenience More and more people working in an office every day or are stuck at home due to the COVID-19 outbreak want services that allow them to order any of their desired food and have it delivered in a matter

of minutes As a result, in recent years, there has been an increase in demand for Online Food Delivery Service (OFDS) in the world This service allows customers to have simple and quick ordering, with diverse selections of dishes and prices from numerous restaurants with various payment options, such as cash on delivery, debit/credit card, Internet banking, and so on In Vietnam, although the online food delivery market is quite young with its emergence in 2013, the outcome was impressive with the participation of many domestic and foreign enterprises, marking the strong growth since the start of the COVID-19 outbreak In order to determine the true value of this service in the eyes of users, especially young people who are potential target audiences with their technologically sensitive approach, we carried out this survey order to analyze actual factors influencing the intention to use OFDS of Vietnamese undergraduate students, thereby giving assessments, conclusions and solution to promote Online Food Delivery Service to these young and potential users

CHAPTER 1 TOPIC INTRODUCTION

1.1 Research context

Nowadays, the soaring development of economics demands a shift to an increasingly hectic lifestyle This is the main motive behind the creation of cutting-edge services in the hope of enhancing people’s quality of life One notable case is online food delivery service, which has seen a boom in popularity in recent years Apparently, the convenience and comfort this service brings to the table, for example, easy access to food regardless of weather conditions and traffic congestion, have overshadowed those of its traditional counterparts

Additionally, the shutdown of public dining places during the COVID-19 pandemic intensifies the necessity of online food delivery service, further proving its value in the eyes of customers

1.2 Research problem statement

There are some of the research questions that we used for research paper

• Who uses OFDS? (Age, university name & year, income)

• How often are consumers using OFDS?

• Why do consumers decide to use OFDS?

• How satisfied are consumers using Online Food Delivery Service based on

1.3 Research objectives

• Survey the number of OFDS users on a specific range and time period

• Have a more general view of the frequency and habits of Vietnamese undergraduate students using OFDS

• Analyze the factors that influence people to use the service which include the applications, sales, discounts, and so on

• Point out the element about which consumers are concerned most when using services

• Know which online food delivery app is currently the most trusted service by young customers

• Understand the satisfaction with OFDS today in many fields, thereby offering specific solutions to popularize, specialize and improve smart services to the young target audience – students at universities in Vietnam

We carried out this research with the objective to determine factors affecting customer intention

to use Online Food Delivery Service that helps us to offer sound advice and possible measures to promote the popularity and consumption of this service

1.4 Research scope and object

CHAPTER 2

THEORETICAL BASIS, PREVIOUS RESEARCH RESULTS

AND RESEARCH MODEL

2.1 Theoretical basis

2.1.1 The general concept of Online Food Delivery Service

Food delivery service or online food delivery service can be defined as any food delivery transaction with monetary value that is done through mobile handheld devices, such as smartphones or personal digital assistants (Prasetyo, Y.T, et al., (2021) To attract

Online food delivery ordering process:

Basically, traditional restaurants operating offline upload their products and menus to applications Customers can search for the restaurant they want and choose their preferred dishes from the menu by clicking on these applications The final step is to place an order When the order is confirmed, shippers will receive food from sellers (restaurants) and deliver it to the customer All steps of the procedure are carried out on the mobile platform The app also offers

diverse payment options such as cash, credit card, E-banking, etc

We also find a diagram that visually and fully demonstrates the process of the usual online ordering system

Figure 1: Business Model of an Online Food Ordering System

The applications also give the customers the benefits of the option to repurchase their favorite meals, the procedure is very easy with the automatic recommend or remind your previous orders

• Limited Contact

From 2020, the priority of minimizing human interaction has become very necessary because of COVID-19 pandemic breakouts During this time, limited human interaction helps prevent customers, staff, and the public from the viral spreading of the virus

Even as this trend slows, customers may continue to value the little communication that online ordering provides, since it accommodates busy lifestyles and allows customers to safely deliver

any type of food to friends, loved ones, and colleagues Everything will be completed just through your phone and your food will be delivered to your door, based on this convenience, this service will certainly continue to be wanted

• Extra Options

When using online food applications, customers can benefit by having access to almost restaurant selections in their local and the ability to research restaurants and cuisines they may not have been familiar with previously

Customers can discover new dishes and menu selections by exploring a digital menu that provides appealing, high-quality food photos, and also the evaluations of other customers who ordered food in these restaurants before so it helps customers make a choice more easily

• Benefits from promotions

Nowadays, more and more online food applications launched because the customer demand increasing significantly These applications give numerous promotions in order to attract more clients, such as free shipping, vouchers, and discounts that users cannot obtain when purchasing food directly from restaurants

As a result, when certain occasions occur, such as single days, women's days, and so on, the majority of customers can benefit from large vouchers and save their money

2.1.3 The importance of Online Food Delivery Service in the integration trend

Over the last few years, food delivery has become a common occurrence in many people's life Even before the epidemic, an increasing number of people were ordering takeout rather than picking it up, or ordering goods to be delivered to their home rather of going to the shop At first,

it seemed that this type of business was created to increase revenue, but over time and under the influence of many other objective factors, Online Food Delivery Service has become an important thing for both restaurants and consumers

For businesses, first, using multiple methods to reach customers is a good way to increase sales

Therefore, if a restaurant does not apply these advanced technology applications, customers will choose other competitors that they find more convenient

Moreover, according to recent surveys, customers tend to order food in larger quantities when ordering online This demonstrates how online delivery can increase sales Even though the orders are tiny, the average customer orders more food in the overall picture As a result of more sales, the consumer pays a higher amount of fees

Ultimately, opening a store for delivery leads to more new customers finding you Imagine you are a hungry customer browsing through Loship for lunch when suddenly you see a new store popping up that you like Especially as more and more people are turning to ordering food online instead of venturing out of town, chances are you haven't seen the new restaurant yet And of course, more outreach to new customers leads to more revenue and more returning customers

For customers, the first important thing about OFDS is convenience in the current busy life and epidemic period The absence of queues and crowds in crowded eateries makes for a better and safer customer experience While waiting for the food to arrive, people can do what they want or relax after stressful working hours

In addition, knowing the price of the dish before ordering will help users feel more secure, especially for students and low-income people With online ordering, all preferences are specified directly by the customer, so there is no room for confusions or misunderstandings

Finally, consumers won't have to worry when ordering online and can thoroughly explore a restaurant's food through public reviews from previous customers This results in customers saving money and shopping smarter

Overall, the OFDS industry creates millions of jobs for people in the context of rising unemployment due to the development of machines In addition, it also helps users have more time and energy to work more These two things are for the economy of developed countries and diversifying types of services to help improve people's living standards

2.2 Previous research results:

As previously mentioned, online food delivery is now very popular with everyone, especially youngsters - who are highly adaptive to modern technology Therefore, a large amount of research and study have been conducted not only in Vietnam but also in foreign countries to collect more information about online food delivery services and users’ behavior To name a few, we have the study “Determinants of customer satisfaction and intention to reuse mobile food ordering apps: An empirical examination in Vietnam” (2021) and “An empirical analysis of the factor affecting consumers’ adoption of online food delivery in Vietnam” Or even many studies and articles from other countries such as “Factors affecting customer intention to use online food delivery services before and during the COVID-19 pandemic” (2021), “Key success factors of online food ordering services: An empirical study” (2015), “A study on factors impacting consumers' intention to use on-demand food delivery applications in Bangkok, Thailand” (2018), or “Factors affecting customer satisfaction and loyalty in online food delivery

results of these studies, we propose five factors affecting youngsters' decision to use online food delivery apps: convenience, ease of use, service expense, food quality, and social influences

According to most of the research above, the service expense has a major impact on the customers’ decisions They tend to prefer cheaper prices, especially youngsters since many of them still have to use money given by their parents Convenience, ease of use, and food quality are also leading and decisive factors, which are mentioned in the studies of Chanmi Hong, Hayeon Choi, Eun-Kyong Choi, Hyun-Woo Joung in the USA, Tran Thi Lan Huong, Than Vu Bang Giang, Ha Thi Minh Ngoc; Dinesh Elango, Kitikorn Dowpiset and Jirachaya Chantawaranurak; Zulkarnain Kedah, Yusof Ismail, A.K.M Ahasanul Haque & Selim Ahmed, and Thao An Tran, Yen Vinh Thi Tran Moreover, the study of Dinesh Elango, Kitikorn Dowpiset, Jirachaya Chantawaranurak in Thailand, and Tran Thi Lan Huong, Than Vu Bang Giang, Ha Thi Minh Ngoc in Vietnam have pointed out that social influence has a significant effect on the youngsters as well Optimistic opinions of family members and friends are able to motivate them to perceive the services are useful and decide to use them In conclusion, based on previous research results, we want to analyze the impact of the five factors above on the current situation of using the food online delivery services for Vietnamese youngsters

2.3 Model research

2.3.1 Previous model research

Figure 2: Theoretical Research Framework

(Source: Prasetyo, Y.T.; Tanto, H.; Mariyanto, M.; Hanjaya, C.; Young, M.N.; Persada, S.F.; Miraja, B.A.; Redi, A.A.N.P Factors Affecting Customer Satisfaction and Loyalty in Online Food Delivery Service during the COVID-19 Pandemic: Its Relation with Open Innovation J

Open Innov Technol Mark Complex 2021, 7, 76)

Figure 3: Conceptual Framework of Factors impacting consumers’ intention to use demand food delivery applications in Bangkok, Thailand (adapted by the researcher for this research)

On-(Source: Elango, Dinesh and Dowpiset, Kitikorn and Chantawaranurak, Jirachaya, A Study on

Factors Impacting Consumers' Intention to Use On-demand Food Delivery Applications in Bangkok, Thailand (August 24, 2018)

2.3.2 Model research suggested

As a model (a highly simplified representation of a more complicated reality), our model research can help the readers easily visualize the causal and outcome variables as well as the relationship between them As far as the current situation of Online Food Delivery Services is

decision to use OFDS today

Figure 4: Research Model Suggested

2.3.3 Hypothesis of research:

services This can be elucidated by the enticing features of online food delivery services such as the comfort of avoiding bad weather conditions and traffic congestion, as well as the ability to obtain food anytime and anywhere, which saves time and efforts related to physically visiting restaurants and coffee shops Additionally, the complications

face masks requirements make ordering food online a more viable and practical option than ever

of online food delivery services

effortless in navigating online food delivery apps’ interface The advantage of online food delivery services compared to traditional method is making it easier for users to obtain food, therefore, their interface should be simple and intuitive not only to the youngsters who have openness and flexibility to access the platform but also to middle-aged and elderly people who are less exposed to technology, while simultaneously providing accurate and essential information about food This helps to increase the services’ usefulness in customer’s eyes, positively affecting their intention to use the services

intention to use online food delivery services

using online food delivery services, thereby resulting in positive influence on intention to use the services This is also verified by the research of Thao An Tran and Yen Vinh Thi Tran, where they confirmed that price value is a pivotal factor in predicting intention to order food online Apparently, online services make comparing prices much more straightforward than their traditional equivalents, helping customers ripe the benefit of buying food with the lowest cost possible In addition, to maintain current customers while also to attract new ones, food delivery brands often give out aggressive discounts and coupons, further enhancing the value of ordering food via apps

online food delivery services

• Food quality: Online food delivery services could experience constant revenues from loyal customers if they offer reliable food quality, according to the conclusion drawn from the research of Zulkarnain Kedah, Yusof Ismail, A.K.M Ahasanul Haque, and Selim Ahmed After all, the ultimate purpose of using online food delivery services is to enjoy food itself Customers will look at characteristics including fresh, cooked, healthy, and well-decorated to determine if they would consider using the service again

to use online food delivery services (H4)

family members, relatives, friends, and colleagues approve certain online food delivery services, they would start to adopt those services as well This is backed up by the research of Dinesh Elango, Kitikorn Dowpiset, and Jirachaya Chantawaranurak The research of Thao An Tran and Yen Vinh Thi Tran also pointed out that customers are significantly affected by surrounding perceived social pressure when deciding to use new services

to use online food delivery services

CHAPTER 3 RESEARCH METHODS

3.1 Data Target

• Surveying the age group using the most Online Food Delivery Services, therefore helping OFDS companies to come up with appropriate strategies to promote age-appropriate utilities, improve their applications to reach more right target audience

• Answering the issue of whether consumers' monthly income and the amount of money they are willing to pay for ordering food online have a significant influence on the frequency with which they use this service From there, food delivery companies can make promotions or new services in order to keep a consistent number of consumers

• Understanding primary customers’ reasons for using OFDS

• Knowing which applications are occupying a dominant position in the OFDS market in Vietnam to have a general view of the potential of this industry

• Understanding the satisfaction of customers with Online Food Delivery services based on their evaluations This data is the most realistic measurement for any food delivery company to have to rapidly develop and offer effective strategies to boost the use of Online Food Delivery services and raise users in the future

• Analyzing the data from the survey to make informed predictions about the specific position of OFDS in the current F&B market and also determine its position in the minds

of customers

3.2 Data approach

Table 3.2: Table of data approach

Academic year C2 Ratio Survey

Level of satisfaction regarding

price

Level of satisfaction regarding

Assessment on 5-point scale

about criteria for choosing a food

delivery app

3.3 Analytical plan

• Google Survey Software Forms for online surveys,

• Some reference websites and dissertations,

• Formulas and tables which are used and taught in Statistics course,

• Using Excel Software to summarize and present data

3.4 Confidence and validity

Elements influencing the reliability and accuracy of data gathered:

• The quality of the questionnaire: Are the questions easy to understand? Is the design user-friendly?

• Dishonest or inappropriate responses due to various reasons; namely privacy, laziness, or trolling

• The scope of the survey does not entirely cover the contemporary social situation

• Errors in the process of aggregating and collecting unwanted data

Measures suggested to heighten the reliability and accuracy of data gathered:

• Compose the questionnaire logically with straightforward questions and intuitive design

• Build the questionnaire based on popular and accessible topics Select the type of participants that is suitable for the survey

• Remind and encourage respondents to conduct authentic surveys If possible, reward them with vouchers, online courses, learning documents, etc for doing so

• Guarantee complete secrecy for information supplied by respondents

• Ask some specific confusing questions to check the confidence level of participants’ answers For example, questions with similar content but paraphrased in different ways will confuse respondents If they answer questions with carelessness or indifference, they might easily give inconsistent opinions, which makes their answers unreliable

• Be meticulous and precise as much as possible while processing data

• Utilize computer softwares such as Microsoft Excel for support

CHAPTER 4 RESEARCH ANALYSIS AND RESULTS

Male 56 0.373 37.3%

4.1.2 Academic Year

Graph 2: The graph describing the percentage of respondent’s academic year in the survey

Total 150 1 100%

The students taking the survey with the highest number of students are first-year students with

132 students, accounting for 88%, then second-year students (7.3%), fourth-year students (2.7%) and finally third-year students (2%) The reason why first-year students have the largest number

of students is that they are also carrying out a project in statistics subject, taking part in a survey

is to help and support each other, and complete this project together

4.1.4: Monthly Income

Graph 4: The graph showing the percentage of student's income in 1 month

We gathered a sample of 150 survey respondents who use Online Food Delivery services for the survey In the monthly income table, the majority of users have income of around 2 to 4 million VND, accounting for 44%, this could be owing to the pay they receive from part-time work Following that, income levels of less than 2 million VND per month account for 34%, income rates of 4-6 million VND account for 19%, and levels of income of 6-8 million VND and more than 8 million VND account for 1% and 2%, respectively

With the above results, we can see that even while still a student, they can earn an average income of around 2 to 4 million per month This could be because university students nowadays are concerned about tuition fees and want to share the burden with their families, so they try to face the busy lifestyles as soon as possible As a result, the demand for utilities will rise, as will the need for convenience services such as Online Food Delivery, because this service allows them to order any food from anywhere, making it "fast and convenient" for them

Graph 5: The graph showing the online food delivery apps used by the respondents

As we can see in the graph, ShopeeFood accounted for the largest percentage of applications that were ever used by respondents with 27.7% of total users and 107 users of over 150 respondents Following closely is GrabFood with 26.7% of total users and 103 users out of 150 surveyed The third most used application is Baemin with quite a few users compared to the two above applications More than 50% of people surveyed have used Baemin, this is not an impressive number but quite positive for an application that has just entered the Vietnamese market in 3 years The remaining 4 applications with a much lower number of users demonstrate the

have just entered the market This shows that the applications that are trusted and known by users are better than those that have appeared for a long time or famous apps from abroad

Graph 6: The graph providing the preferred payment method when using Online Food Delivery Service of users

More than half of the students surveyed paid in cash One of the biggest reasons is that the majority of people surveyed are freshmen from the provinces Therefore, they are not used to paying by other forms and prefer to use cash The number of students paying by e-wallet is 12% more than the number of students paying by ATM/Internet Banking This is quite understandable when payment by e-wallet is easier and more preferential than ATM/Internet Banking

Graph 7: Graph showing the number of times of using OFDS within a week of the survey participants

According to the data collected, the majority of the students make orders 1-3 times a week, accounting for 82% of the total surveyed students The number of respondents using the apps more than 3 times per week is relatively low or at a very low level To be more detailed, students using 4 times a week account for 6.7%, and only 2% of the users perform the service 6 times a week This figures out that though the popularity is high, the students' reception and usage of the service are still minimal Therefore, more promotion programs should be implemented and adjust some features of the applications to attract more users as well as make them loyal to the service

4.1.8 Daily most order time

Graph 8: Graph illustrating the daily time that users most order food online

Daily order time depends mainly on the users’ habits, preferences, and purposes The data indicates that most of the students prefer using the service at noon and evening, accounting for more than 70% of the total respondents The number of users making orders in the afternoon is 24.7% and exceptionally low in the morning with only 2% in total From this, we can learn that many students use the services to make orders for their lunch and dinner To make use of these purchasing features, the services should have more proper promotions or discounts at noon and evening to raise their purchasing power

Daily most order time Frequency Relative frequency Percent frequency

Morning

Noon Afternoon

0.387

2%

34.7% 24.7%

38.7%

4.1.9: Money spent per using time

We divide the data into 2 parts - one for the amount perused by males and one for the amount perused by females Based on the survey results, in women, there is a large number who use from 50000 to 100000 VND - a reasonable amount for a normal meal for 1-2 users with some costs such as shipping fees, tips, and so on - for one using time, accounting for about 60% Meanwhile, only half of the men agreed to use that amount of money peruse At a lower price, there are one in four women who are willing to pay less than 50000 VND peruse The same goes for men About 15% of the remaining women may be well-income people or maybe the ones who are responsible for caring for meals for families because they are willing to use between

100000 and 200000 VND (accounting for more than 10%) or even more than 200000 VND (about 2%) for perusing time Meanwhile, the number of men - those who are unlikely to hold the responsibility of caring for family meals - willing to use that amount of money is twice as many as the number of women, accounting for 25% of the total

Money spent per using time (Female) Frequency Relative frequency Percent frequency

accounting for about 28% This result shows us that students are now in a state of "waiting to be served" and are willing to spend money on being served It also reflects the preference for the convenience of young customers’ habits and lifestyles Another reason why the majority of

students decide to use the service (about 27%) is the many incentives and promotions It is even

the only reason for some students to make the decision to use the service This clearly demonstrates the principle “people respond to incentives”, especially for students who are on low incomes In the group of reasons related to cooking, this ratio is 36% of the total This

includes poor cooking skills accounted for only about 5%, inconvenience in cooking accounted for 11%, and surprisingly, cooking time savings accounted for up to 20% That means there is

meal service instead of self-cooking It can be inferred that convenience is actually an important factor when customers decide to use this service, as we mentioned in the model research before

Besides everyday life, there are also times when we can hardly go out A good example is social

distancing in the recent Covid-19 pandemic This is one of the reasons why students use the service (about 8%) There are also other reasons but account for a very small ratio (just nearly 1%) such as booking for their lover, experiencing the service, and so on

frequency

Percent frequency