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 RESEARCH PROPOSAL RESEARCH ON FACTORS AFFECTING CUSTOMERS’ DECISION TO USE ONLINE FOOD ORDERING SERVICE IN HANOI CLASS: KTEE206.1 INSTRUCTOR: Dr Pham Thi Cam Anh Ha Noi, 2022 TABLE OF CONTENT TITLE Research on factors affecting customers’ decision to use online food ordering service in Hanoi BACKGROUND I Introduction The development of the Internet and smart technology products such as smartphones, laptops, and tablets are gradually changing the way many people search for information and business Many businesses see the Internet as becoming a convenient and appropriate playground for a large number of consumers To increase convenience and simplify purchasing behavior, companies 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 investment worldwide The platform is also thriving in Vietnam and growing steadily According to statistics from many organizations, Vietnam's online food ordering market currently has a lot of potential In 2020, the number of users of food delivery apps has increased significantly, and the competition between apps is getting fiercer Food ordering applications bring convenience to users, especially in the current complicated situation of the epidemic in 2020 Everyone can order their favorite food without leaving home, and restaurants can remain open during times of social distancing These general pattern apps are making the lives of urban dwellers easier Grab, Now, Gojek, Baemin, and LoShip are the most used apps, of which Grab and Now hold the largest market share A "pioneer" in the field, Now, which started experimenting with food delivery in 2014, combined its then-exclusive and innovative delivery service with a TV channel to achieve success A large number of food retailers and beverage suppliers (about 20,000 stores) and attractive promotions have quickly attracted users In mid-2017, Foody's CEO once shared that Now has nearly 10,000 orders per day With the development of society, the economy, and information technology, the trend of using online food ordering services is gradually promoting the advantages of products in the changing new era We hope to study the factors affecting consumers' decision to use online food ordering services and recommend transport companies specially to increase or decrease market share in the fierce competition to sustain the current market That's why we chose the topic: “Research on factors affecting customers' decision to use online food ordering service in Hanoi.” II Literature Review Theoretical framework 1.1 Online food ordering According to Eva-Marie Meemken and partners (2022), online food ordering is the process of placing a food order from a website or other application, either for delivery or pickup The product can be either food that has been specially prepared for 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 home kitchen, restaurant, or virtual restaurant) According to Tricia Christensen (2022), online meal ordering might be considered the Internet's response to the need for food delivery People are increasingly using their 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 process complex web pages can be used to place orders Online grocery shopping is a second definition of online food ordering, which differs from putting one-time orders with restaurants 1.2 Service Service is the act of doing something for someone else or something else is a service It is largely non-material (i.e., intangible) Because it can be touched and owned, a product is material Typically, a service is an experience that is consumed when it is purchased and cannot be owned because it quickly disappears It's possible for someone to visit a cafe one day and receive excellent service, only to have 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 it includes some interaction with the customer or with their property Other definition of service: ● Service is described in the Oxford English Dictionary as “the action of serving, helping, or benefiting; conduct tending to the welfare or advantage of another; condition or employment of a public servant; friendly or professional assistance.” ● According to Webster’s Ninth New Collegiate Dictionary, service is described as “the occupation or function of serving others; employment as a servant; contribution to the welfare of others.” ● Philip Kotler defines a service as, “Any act or performance that one party offers to another that is essentially intangible and does not result in the ownership of anything Its production may or may not be tied to the physical product.” ● According to Kotler and Armstrong, “A service is an activity or benefit that one 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 a physical product.” ● According to Quinn, Gagnon, “Services are actually all those economic activities in which the primary output is neither a product nor a construction” ● According to Gronroos, “A service is an activity or series of activities of more or less intangible nature that normally, but not necessarily, take place in interactions between the customer and service employees and/or systems of the service provider, which are provided as solutions to customer problems” ● “Services are activities, benefits or satisfactions, which are offered for sale or are provided in connection with the sale of goods” – American Marketing Association ● “Services refer to social efforts, which include government to fight five great evils- wants, disease, ignorance, squalor and illness in the society” – Sir William 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 or with the property belonging to the customer The service does not involve the transfer of ownership of the output” – Adrian Payne 1.3 Consumer behavior According to Philip Kotler and Gary Armstrong (2016), consumer buyer behavior is the buying behavior of final consumers, who are individuals and households that buy goods and services for personal consumption In other words, consumer behavior 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 ways such as the choice of ecommerce platforms, choices for food, consumers’ purpose or intention when choosing to order food online, frequency Therefore, these behaviors not only have direct impact upon the consumers decisions but also the companies that provide relevant services Our research intends to examine the factors that influence these behaviors, some of which are the easy-to-use interface, their income, the inconvenience of other food buying methods, … Related researches Zulkarnain Kedah and partners (2015) investigated the key factors that contributed to loyalty in an online ordering environment Based on results, companies offering online 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 customer service, and high-quality food, they might be able to enjoy continuous recurring revenues 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, perceived ease of use, price savings, time savings, food safety risk perception, and trust) were examined for their effects on online food usage intention In Study 2, the model was extended by including the perception of customer satisfaction According to Sharma N and Varshney D (2019), the factors that influence attitudes toward Online Food Delivery Services include convenience motivation, hedonic motivation, price saving orientation, time saving orientation, and prior online purchase experience Due to research results, Price Saving Orientation and Convenience Motivation are the two most important factors that affect attitude towards online food delivery services, followed by Time Saving Orientation and Hedonic Motivation In addition, Prior Online Purchase Experience has the least influence on consumers' attitudes towards online food delivery services Research gap In general, previous studies have only shown the relationship between user interface and user experience, which focus on perceived usefulness and perceived ease as well as price and promotion and consumer loyalty to online food ordering devices Therefore, based on these previous related studies, research gaps are indicated as follows: 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 personal recommendations (family, friends, neighbors, ), commercial platform (advertisement, packaging, sale peoples), public (consumer rating orgs, Internet searches), experiential (examining, using) and customer loyalty to online food ordering devices In short, our study illustrates the importance of above personal factors, sources of information and some factors and factors indicated from previous related studies to customer loyalty to online food ordering devices Thus, this research will be carried out 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 ordering services, 20% higher than the figure in 2020 Of which, 77% of respondents used online food ordering services on phones Therefore, the research on factors affecting customers' decision to use online food ordering services in Hanoi is fundamental and practical for business managers to make strategic decisions and for the authorities to impose appropriate management policies For that reason, our research objectives include the following: • Determine factors affecting customers' decision to use online food ordering services in Hanoi • Determine the degree of influence of each factor on customers' decision to use 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 in Hanoi? • What is the level of impact of each factor on customers' decision to use online food ordering services in Hanoi? • What solutions help improve the quality of online food ordering services in Hanoi? III Research object and scope ● Research object: factors affecting the customers over 18 years old decision to use online food ordering service in Hanoi ● Research scope: consumers over 18 years old who use online food ordering services in Hanoi ● Time duration: from October 1, 2022 to June 15, 2023 METHOD I Research design 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 our research Qualitative research is executed first, followed by quantitative research Specifically, qualitative data collection is conducted at the beginning phase of the research in order to explore and verify the factors affecting customers' decision to use online food ordering service Subsequently, the research applies quantitative data collection and analysis method to examine the relationship between the collected factors and the customers’ choice to order food online For the best outcome of the research, Mixed methods design is applied due to below suitability of the design’s characteristics with the research objectives: ● Initiation: Qualitative methodology is used in the first phase with the aim to better understand the research and to build a strong theoretical framework, research questions and prepare for the next phase ● Facilitation: The qualitative phase may help to discover new factors if available that influence consumer’s decision to order online food ● Complementarity: The qualitative phase helps to establish the possible relationships between variables meanwhile the quantitative phase helps to test and verify those ● Diversity: The qualitative phase allows different views to complete the research Purpose of the research The research that we conduct is a combined study (a combination of exploratory and descriptive 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 and determining what is happening In this research on factors affecting customers’ decision to use online food ordering services in Hanoi, one of the objectives is to gain Customer Insight To be more specific, Customer Insights are facts that have the ability to influence customers’ behavior and purchasing decisions These facts are intentionally hidden or hidden by customers without being easily detected Therefore, businesses need to spend a lot of time and effort to research because Customer Insight is not obvious and easy-to-see facts Sometimes, consumers themselves already have their own Insights but don't realize them themselves For that reason, they always need someone to remind them of these truths In our research, we pose questions such as these truths 10 Research ensures to keep participants’ personal information confidential if they require it after being informed about their rights Online Interview-based techniques’ ethical issues Despite being conducted face-to-face or through telephones and other online platforms, interview-based techniques need to be executed with thoughtful and acceptable behaviors When interviewing with experts, the interviewers must inform thoroughly the interviewees’ rights including not to answer unfavorable questions The interviewers also need to take the participants’ emotions and time limit into consideration To handle the above ethical issues, our team intends to follow certain procedures Firstly, we need to build a guideline for approaching the people whom we interview and survey to avoid This guideline may include some scripts or recommended behaviors and manners that our team member should follow, which helps to avoid causing uncomfortability for participants Furthermore, we will provide detailed information of the research objective, the aim of the interview and survey as well as how their information might be used for the research to the participants so as to make sure they understand their rights Subsequently, we need to make sure they give consent to their participation in the research and consent to how their information is used as informed Research quality According to Alvin Nicolas (2021), in order to measure the quality of research, every research design needs to consider reliability and validity: ● The reliability of a measurement refers to its consistency The reliability of a test score indicates how trustworthy it is The collected data is reliable if the 16 results are the same when tested using different analysis methods and sample groups A reliable method will produce valid results ● The validity of a measurement refers to its accuracy A test's validity determines whether it is appropriate for a particular situation It is valid research if the results match the researcher's explanation, prediction, and situation Internal vs External Validity An important characteristic of randomized designs is their high internal and external validity ● An internal validity study is one that can demonstrate a causal link between your treatment and a dependent variable In other words, the observed changes should be the result of the experiment, and no external factors should affect them For instance, age, level, height, and grade ● The study's external validity refers to its ability to identify and generalize its findings to the general population In order to determine external validity, the study's situation has to be related to the situations outside of the study Nonetheless, according to Mark N.K Saunders, Philip Lewis, and Adrian Thornhill (2019) and Alvin Nicolas (2021), there are some threats to reliability and validity that we have to consider before writing a research design: Threats to reliability: ● Participant error: any factor which adversely alters the way in which a participant performs; ● Participant bias: any factor which induces a false response; ● Researcher error: any factor which alters the researcher’s interpretation; ● Researcher bias: any factor which induces bias in the researcher’s recording of responses 17 Threats to internal validity: ● Past or recent events: an event which changes participants’ perceptions; ● Testing: the impact of testing on participants’ views or actions; ● Instrumentation: the impact of a change in a research instrument between different stages of a research project affecting the comparability of results; ● Mortality: the impact of participants withdrawing from studies; ● Maturation: the impact of a change in participants outside of the influence of the study that affects their attitudes or behaviors; ● Ambiguity about the causal direction: lack of clarity about cause and effect ● Statistical regression: groups selected depending on the extreme scores are not as extreme on subsequent testing ● Selection bias: choosing comparison groups without randomization Threats to external validity: ● Reactive/interactive effects of testing: the participants of the pre-test may get awareness about the next experiment The treatment may not be effective without the pre-test; ● Selection of participants: a group of participants selected with specific characteristics and the treatment of the experiment may work only on the participants possessing those characteristics From threats to reliability mentioned above, Alvin Nicolas (2021) suggested some solutions to increase reliability: ● Use an appropriate questionnaire to measure the competency level ● Ensure a consistent environment for participants ● Make the participants familiar with the criteria of assessment ● Train the participants appropriately ● Analyze the research items regularly to avoid poor performance 18 Alvin Nicolas (2021) also showed some ways to increase validity: ● The reactivity should be minimized at the first concern ● The Hawthorne effect should be reduced ● The respondents should be motivated ● The intervals between the pre-test and post-test should not be lengthy ● Dropout rates should be avoided ● The inter-rater reliability should be ensured ● Control and experimental groups should be matched with each other Besides, Alvin Nicolas (2021) gives a method to implement reliability and validity in the thesis: ● Methodology: all the planning about reliability and validity will be discussed here, including the chosen samples and size and the techniques used to measure reliability and validity ● Discussion: please talk about the level of reliability and validity of your results and their influence on values ● Literature Reviews : discuss the contribution of other researchers to improve reliability and validity ● Conclusion: talk about the issues you faced while ensuring reliability and validity here ● Results: include calculations of reliability and validity here II Data collection Given the research objective, mixed methods are adopted, which employs a qualitative approach at the first stage of the study and quantitative approach at the second stage of the study At the first stage, all data is gathered in a way that the authors can get in-depth insights into the topic as well as identify new elements influencing food ordering 19 platform usage in terms of expert opinions, and thematic analysis is chosen since thematic analysis is an appropriate and powerful method to use when seeking to understand a set of experiences, thoughts, or behaviors across a data set (Braun & Clarke, 2012) Following the methodological approach proposed in this phase, the interview is used Regarding data collection techniques, Recker (2013) suggests that interviewing is the most popular and appropriate strategy for gaining a better grasp of a topic in practice The data is gathered in two phases: formal, semi-structured interviews based on a pre-defined interview guide, followed by informal, unstructured conversations to further clarify answers when necessary The predefined interview structure is established for the formal interviews to have the respondents answer following the research topic However, the interviews evolve flexibly, and new questions may be raised during the interviews based on the flow of the interviewee's replies In the case of this study, this process is scheduled to last around two weeks, from early to mid-March 2023 When selecting respondents, we want to interview consumer behavior analysts, also titled as market researchers or consumer/marketing specialists working with or for firms providing food ordering platforms The authors use LinkedIn as a great professional social network to connect with consumer behavior analysts who work with or for companies that provide food ordering platforms The researchers purchase a Premium plan on LinkedIn, which allows us to send messages to people to whom we are not connected To find relevant replies on LinkedIn, we use the keywords "consumer specialist + food ordering platforms," "market researchers + food ordering apps", and related terms, with the criteria "people'' and location "Hanoi" The next step is to send a private message introducing ourselves, the research topic, the research objectives, and the invitation to participate in the interview For those who are interested in the interview, we write emails to them, describing the research purpose and attaching question lists for them to prepare in advance 20 According to the interview design, Questions 1-3 are related to the introduction questions aimed at learning the candidates' backgrounds Questions 4-7 are designed to elicit spontaneous responses from respondents regarding which factors influence customer behavior toward food ordering systems By asking these open questions, the researchers are able to gain the most subjective responses from the respondents that may be different from the pre-defined variables from the literature review Question 8-12 are related to topics surrounding consumer behaviors towards food ordering platforms with regard to the pre-defined factors from literature Question 13 is to see whether the interviewees have any other points of view that we have not yet discussed during the interview Besides the interview, our research also includes Archival and documentary research techniques in this phase to gain secondary data with the aim of formulating a theoretical framework and anticipating possible factors as well as relationships between variables Specifically, we use this technique to discover the factors that may influence consumers’ choices of online food service and how they are correlated The data is intended to be found in reliable sources such as government publications or verified articles and then refined for the next phase Otherwise, at the second stage, all data is collected in a way that enables quantification, and the analysis is based on statistical tools and techniques The survey method was utilized in accordance with the methodological approach proposed in this study It is the best method for this study since it is related to observation through direct or indirect questions, and it has been applied to a wide range of groups This strategy has the advantage of being dependable in establishing social regularities and allowing for generalization (Malhotra, Birks, & Nunan, 2017) The data were collected by the questionnaire over a period between mid-March and early April of 2023 In addition to the social networks distribution (Facebook, ), 21 the snowball sampling is employed To increase the survey's reach to users of food delivery platforms, the authors encourage their social circle (first contacts) to respond to the questionnaire and sent it to five other acquaintances Concerning the questionnaire design, the questionnaire written by the authors and created using the Google Forms tool is used to collect data This research tool is designed with questions on the constructs and measures on a five-point Likert scale ranging from (I completely disagree) to (I completely agree) To evaluate the variable frequency in the same way as the other constructs, the "usage behavior" variable has to be transformed into an interval variable ranging from to Furthermore, questions are designed to collect socio-demographic data from respondents, including information on the frequency of usage of food delivery platforms Additionally, the questionnaire is written in Vietnamese since the target population of this study was Hanoi consumers over 18 years old Last but not least, at the start of the questionnaire, each participant is verified to ensure that they lived in Hanoi and had at least one online meal delivery ordering experience within the previous three months Our research team uses cross-sectional data since we employ survey strategy over a short period of time between mid-March and early April of 2023 TIMESCALE The research team established a preliminary timetable as follows: Target month The beginning of October Month number Mission Start thinking about research idea 22 The end of November Gather and read literature related to research idea, then finalize the objective The end of December Draft critical literature review and then research proposal Mid-March Gather and analyze data (including primary and secondary data) The beginning of April Continue to write and analyze in depth Mid-April Finish the draft The end of May Review the draft Mid-June Submit the draft Table Preliminary timetable Based on the above preliminary timetable, our team established the Gantt chart for the research topic as figure In the figure, the phases of the study are divided in time as the length of a horizontal bar on the time axis Our study will last for about more than months, from the beginning of October to the second week of June in the next year, which goes through three holidays, which are the New Year holiday in the first week of January, the Lunar New Year in the last week of January and the Southern Liberation Day & International Labor Day in the last week of April We plan to finish the ideas about our research topic in the beginning week of October, then read related literature during weeks later In that time, we will finalize our objectives in the last week of the process Meanwhile, our team will start drafting critical literature review at the same time as determining research methodology and drafting research proposal We also realize that there are 23 some stages that need to be done in sequence in collecting and analyzing data stages These stages must be finished in the last week of March Next stages include completing and submitting the manuscript to tutor and then submit the final version in the mid-June Activity Week number O c t o b e r N o v e m b e r D e c e m b e r J a n u a r y F e b r u a r y M a r c h A p ri l M a y J u n e 1 1 1 1 1 2 2 2 2 2 3 3 3 3 9 Holiday Read literature Finalize objectives Draft critical literature review Read methodology literature Devise research approach Draft research proposal Develop questionnaire Pilot test & revise questionnaire Administer questionnaire 24 Enter data into computer Analyze data Draft findings chapter Update literature Complete remaining chapters Submit to tutor Revise draft & format Print & bind Submit Reflective diary Figure Gantt chart for research project RESOURCES Our research has a large scale in the whole city of Hanoi Therefore, we need a sufficient resource to conduct the research effectively, specifically as follows: Human resource To execute the research, our team project has people in charge of different tasks in different phases 25 The external human resources are lecturers and colleagues from our universities who may help in forming theoretical background, collecting data (spreading the survey for example) and advising on other aspects Travel and accommodation We use an online survey through the Google form platform and online interview, so there will be no travel and accommodation costs for this part There might be small cost for traveling to interview place as our team member have personal vehicles Equipment Equipment that is required in order to undertake the study include laptop and telephone However, these are all available equipment of our research team, so we not charge finance for this part Other cost Since we need to approach the specialists through Linked in which we found to be the most efficient method, LinkedIn premium member package will be included in the budget in order to make first contacts with some specialists Currently, a normal premium package varies from 1.000.000 VND to 2.000.000 VND Data access The primary data used for the study which is collected from interview and survey is completely free of charge However, we expect to use about 1.000.000 VND for secondary data source This mainly contains the qualitative data to form the theoretical framework 26 CONCLUSION Nowadays, online meal delivery is becoming an industry generating billions of dollars in investment worldwide due to its convenience as well as its modernity The increasing appearance of companies providing these services, namely Grab, Beamin, Gojek and so on has made us more and more concerned about maintaining customer loyalty to a certain company Therefore, this study aims to use the methods to conduct research to draw reasonable hypotheses about the factors affecting customer loyalty, which make giving reasonable solutions to improve this problem would be a lot easier After writing the research proposal, our team claims that this research may benefit a lot of e-commerce companies as well as support team members in gaining sufficient practical knowledge about this topic In addition, from the research proposal above, we strongly believe in the feasibility and quality of the project as this is not only a heated topic that may interest many participants but also possible research in the current context of available resources and demand 27 REFERENCES Nicolas A., August 16, 2021 Reliability and Validity 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With these research