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

lOMoARcPSD|22243379 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: Academic year: 2021-2022 lOMoARcPSD|22243379 Group 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 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 Percentage of completion (%) 100 100 100 100 100 100 100 lOMoARcPSD|22243379 TABLE OF CONTENTS FOREWORD CHAPTER TOPIC INTRODUCTION 1.1 Research context 1.2 Research problem statement 1.3 Research objectives 1.4.1 Research scope 1.4.2 Research object 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 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 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 lOMoARcPSD|22243379 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 population 51 4.3 Forecasting 62 CHAPTER 67 PROPOSAL AND CONCLUSION 67 lOMoARcPSD|22243379 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 lOMoARcPSD|22243379 CHAPTER 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 consumers decide to use OFDS? • How satisfied are consumers using Online Food Delivery Service based on ✓ Price? ✓ Food quality? ✓ Delivery time? • Which criteria consumers prioritize in choosing their preferred online food delivery application? lOMoARcPSD|22243379 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 1.4.1 Research scope The survey was conducted from April to April 6, 2022, and received 150 responses from university students to the survey about OFDS in Vietnam 1.4.2 Research object We conducted a survey aimed at only university students, mainly students of the University of Economics Ho Chi Minh City (UEH) lOMoARcPSD|22243379 CHAPTER 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 lOMoARcPSD|22243379 (source: fatbit.com) 2.1.2 Advantages of using Online Food Delivery Service • A Smooth Procedure If you have ever used an online food delivery application, you will recognize about one of the clearest benefits from a customer aspect is the easy procedure that the apps can provide Customers can place an order online at nearly anytime and from any location, as long as their phone has a connection to the internet It can save a lot of time that they have to spend when faced with the traffic jams to pick up the food by themself 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 lOMoARcPSD|22243379 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 Especially in such a competitive market, it is important to stay ahead of the competition lOMoARcPSD|22243379 Point evaluation Male Female Total 0 0 1 1 16 25 41 19 48 67 20 20 40 Total 56 94 150 Sample size Male Female n5= 56 n6= 94 Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 Sample mean x̄5=4,02 x̄6=3,93 (3.9255) Sample standard deviation s5= 0,9 s6=0,72 - Call x̄5 = average delivery time score of Male - Call x̄6 = average delivery time score of Female - s5= standard deviation of Male - s6= standard deviation of Female INTERVAL ESTIMATION ABOUT THE DIFFERENCE BETWEEN POPULATION MEANS Price Confidence coefficient is 95% → 𝛼 = 0,05 Calculate the degrees of freedom: Distribute t with two independent random samples: Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 For a bigger t value and a more conservative internal estimate, we round down the degrees of freedom value to 114 Use a t-distribution table with degrees of freedom of 114, we found that The estimated mean difference between the two populations is As a result, the overall mean difference is estimated to be 0.04 as a point estimate The margin of error is 0.25, and the confidence interval is 95%, ranging from -0.21 to 0.29 ● Food quality Confidence coefficient is 95% → 𝛼 = 0,05 Calculate the degrees of freedom: Distribute t with two independent random samples: For a bigger t value and a more conservative internal estimate, we round down the degrees of freedom value to 113 Use a t-distribution table with degrees of freedom of 113, we found that Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 The estimated mean difference between the two populations is As a result, the overall mean difference is estimated to be 0.08 as a point estimate The margin of error is 0.24, and the confidence interval is 95%, ranging from -0.16 to 0.32 ● Delivery time: Confidence coefficient is 95% → 𝛼 = 0,05 Calculate the degrees of freedom: Distribute t with two independent random samples: For a bigger t value and a more conservative internal estimate, we round down the degrees of freedom value to 96 Use a t-distribution table with degrees of freedom of 96, we found that The estimated mean difference between the two populations is Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 As a result, the overall mean difference is estimated to be 0.09 as a point estimate The margin of error is 0.28, and the confidence interval is 95%, ranging from -0.19 to 0.37 HYPOTHESIS TEST OF THE DIFFERENCE BETWEEN POPULATION MEANS After researching to evaluate the different level of interest in price, quality food, delivery time of male and female are given in the table below when using Online Food Delivery on a 5-point scale Survey samples include 56 men and 94 women We have the following population means: µ 1: average score of Male µ 2: average score of Female Thus, the null hypothesis and opposite hypothesis are established as follows: H0: u1 – u2 ≤ Ha: u1 - u2> That means the initial hypothesis: male is lower than female for the satisfied service when using online food delivery ● Price With confidence coefficient is 95%, level of significance α=0.05 Test statistic for the hypothesis: Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 With the degrees of freedom: We round down the degree of freedom to 114 for a larger t value and a more conservative internal estimate Because t= 0,31, based on the table on page 808, it can be inferred that p-value < 0,2 Therefore p-value < α (0,05) Since the p-value is less than α, the null hypothesis can be rejected Consequently, with 95% of male reliability will be willing to spend money to use online food delivery service more than female ● Food quality With confidence coefficient is 95%, level of significance α = 0.05 Test statistic for the hypothesis: Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 With the degrees of freedom: We run down the degree of freedom to 113 Because t= 0,67, based on the table on page 808, it can be inferred that p-value < 0,2 => p-value < α (α =0,05) Since the p-value is less than α, the null hypothesis can be rejected Therefore, the confidence interval is 95%, male will be care about good quality elements when using online food delivery more than female ● Delivery time With confidence coefficient is 95%, level of significance a=0.05 (α) Test statistic for the hypothesis: With the degrees of freedom: Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 We run down the degree of freedom to 96 for a larger t value and a more conservative internal estimate Because t= 0,71, based on the table on page 808, it can be inferred that p-value < 0,2 Therefore p-value < α (α =0,05) Since the p-value is less than α, the null hypothesis can be rejected Hence, with 95% of male student reliability will be interested in delivery time elements when using Online Food Delivery than female 4.3 Forecasting Besides the above survey results, we continue searching the market size of online food delivery service in Vietnam from 2016 to 2021 according to Vietnam Report From there, we can forecast the market size of this industry in the next years from 2022 to 2027 Year OFDS market size (million USD) 2016 2017 2018 2019 2020 2021 39.1 130.5 255.3 424.6 586.9 939.2 From the table above, we can draw a line graph showing the market size of OFDS in Vietnam from 2016 to 2021 Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 From the chart, we can see that the size of Vietnam's OFDS industry from 2016 to 2021 has a continuous increase over time It can be seen that the above market size has a trending component Therefore, from the given data, we go to forecast the total OFDS market size in Vietnam in the next years from 2022 to 2027 How much does the average market size increase each year? We have a following linear trend equation: y̅t = a0 + a1*t In particular, a0 and a1 are determined by the following equation system: From that, we have the following data table: Time (year) OFDS market size t Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) yt 𝑡2 lOMoARcPSD|22243379 (million USD) y 2016 39.1 39.1 2017 130.5 261 2018 255.3 765.9 2019 424.6 1698.4 16 2020 586.9 2934.5 25 2021 939.2 5635.2 36 Σy6 = 2375.6 Σt = 21 Σyt = 11334.1 Σt = 91 Replacing in the above set of equations, we have ➔ The linear trend equation is: ȳ = –207.97 + 172.54*t Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 Market size in 2022 to 2026 forecasted: T2022 = −207.97 + 172.54 ∗ = 999.81 (million USD) T2023 = −207.97 + 172.54 ∗ = 1172.35 (million USD) T2024 = −207.97 + 172.54 ∗ = 1344.89 (million USD) T2025 = −207.97 + 172.54 ∗ 10 = 1517.43 (million USD) T2026 = −207.97 + 172.54 ∗ 11 = 1689.97 (million USD) Based on the calculated data, we draw a following new forecasting line graph: OFDS market size increases by an average of million per year We have noticed that the OFDS market tends to increase sharply over the years This shows that the supply and demand of this service shows no sign of decreasing in the future because of its benefits The growth of the food delivery market in Vietnam benefits consumers while also providing opportunities for many restaurants, small eateries, and even housewives who have a passion for cooking but lack the financial means to open a restaurant, resulting in a diverse food market that appeals to both Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 domestic and international customers Moreover, Vietnam's welcome to foreign companies creates a competitive market, thereby creating motivation for companies to continuously improve service quality, thereby improving customer experience and creating good values for society Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 CHAPTER PROPOSAL AND CONCLUSION According to the results of our research, online food delivery services have gained considerable approval among students owing to their accessible nature and enticing benefits Specifically, almost three quarters of our surveyees are satisfied with how the services are currently operating, based on their assessment of price, food quality, and delivery time This is an important achievement for not only the online food delivery industry but the process of industrialization and modernization in general, as technology is no longer a complication but rather a handy tool helping people practical things Nevertheless, in accordance with several studies on factors precluding consumers from online shopping, the services still experience a small proportion of mediocre or negative reviews due to the following reasons: - Some consumers are served with food having worse quality compared to what was advertised on the applications - Some others are anxious about sharing their private information with online service providers not only due to fear of getting hacked but also information leakage in light of recent scandals of big corporations - Other reasons include unhelpful customer support, shippers’ bad attitudes, perplexing app interface, and so on Therefore, we propose numerous measures to tackle these difficulties so that customers purchasing food online have a better experience: ● Enhance the reliability of information regarding food advertised on delivery apps by making restaurants provide unedited videos and images of the actual food, in addition to details about ingredients that go into the food Before restaurants can make their appearance on the app, their offerings should be carefully examined, ensuring sufficient standards of hygiene and quality These solutions will make online food delivery services even more competitive compared to their traditional equivalent, as one of the most prevalent advantages of eating out is to see or smell the actual food before making purchase decisions Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 ● Increase security level to prevent hackers by implementing cutting-edge features such as biometric recognition, two-factor authentication, one-time password, etc The companies providing the services themselves should also give customers the option to deny access to their private information and be transparent about any data they collected beforehand Thanks to these suggestions, customers can avoid a plethora of unnecessary risks, which help to strengthen their trust and loyalty ● 24/7 Customer Service Centers equipped with advanced communication systems as well as dedicated and professional consultants should be established to help customers deal with any kind of troubles occurring in the process of using the services Shippers ought to be carefully selected and trained to ensure no mishaps during delivery Additionally, companies can invest in forming skillful developers or outsource to reputable software brands to make navigating their apps more straightforward • Besides, based on data collected from the survey, we also make some detailed suggestions to improve Online Food Delivery Service targeting on young Vietnamese customers - The data indicates most students order food online about 1-3 times in a week → Food delivery companies should have a reasonable promotions allocation strategy for to days a week, especially on weekends to attract these users - The order time in the evening occupies most in surveyors’ replies → This is the golden time for apps to launch vouchers, freeship codes to boost the number of orders However, companies need to ensure that the amount of shippers is available enough to serve the delivery so as not to affect the satisfaction of the Delivery Time factor, one of the most important factors for the convenience of this type of service Downloaded by tr?n hi?n (vuchinhhp21@gmail.com) lOMoARcPSD|22243379 REFERENCES 1.Factors Affecting Customer Satisfaction and Loyalty in Online Food Delivery Service during the COVID-19 Pandemic: Its Relation with Open Innovation at [on March 31,2022] Zulkarnain Kedah (July-December 2015) Key Success Factors of Online Food Ordering Services at [on April 3, 2022] 3.Thao An Tran, Yen Vinh Thi Tran:AN EMPIRICAL ANALYSIS OF THE FACTOR AFFECTING CONSUMERS ADOPTION OF ONLINE FOOD DELIVERY IN VIETNAM( page 1387- 1391): https://www.researchgate.net/profile/Hung-Nguyen232/publication/352505212_MODELS_OF_CORPORATE_SOCIAL_RESPONSIBILITY_THEORETICAL_ANA LYSIS_AND_PRACTICAL_IMPLICATIONS/links/60cc1a9c92851ca3acaab4ae/MODELS-OF-CORPORATESOCIAL-RESPONSIBILITY-THEORETICAL-ANALYSIS-AND-PRACTICAL-IMPLICATIONS.pdf#page=1387 [ on April, 2022] Dinesh Elango, Kitikorn Dowpiset, Jirachaya Chantawaranurak (2018):A Study on Factors Impacting Consumers' Intention to Use On-demand Food Delivery Applications in Bangkok, Thailand at [on April 5, 2022] 5.Trần Thị Lan Hương, Thân Vũ Bằng Giang, Hà Thị Minh Ngọc, Nguyễn Vân Hà (2021): CÁC NHÂN TỐ ẢNH HƯỞNG TỚI SỰ HÀI LÒNG VÀ Ý ĐỊNH TIẾP TỤC SỬ DỤNG ỨNG DỤNG ĐẶT ĐỒ ĂN TRÊN THIẾT BỊ DI ĐỘNG CỦA NGƯỜI TIÊU DÙNG VIỆT NAM , FWPS (FTU Working Paper Series), Vol 1-No 4- Paper [on April 5, 2022] Tran Thi Lan Huong, Than Vu Bang Giang, Ha Thi Minh Ngoc, Nguyen Van Ha (2021): CAC NHAN TO ANH HUONG TOI SU HAI LONG VA Y DINH TIEP TUC SU DUNG UNG DUNG DAT DO AN TREN THIET BI DI DONG CUA NGUOI TIEU DUNG VIET NAM, FWPS (FTU Working Paper Series), Vol 1-No 4-Paper [on April 5, 2022] 6.Factors affecting customer intention to use online food delivery services before and during the COVID19 pandemic at [on April 5, 2022] 7.Online food delivery in Vietnam Report : Viet Nam at [on April, 2022] Downloaded by tr?n hi?n (vuchinhhp21@gmail.com)