Factors affecting customer’s satisfaction with service quality on the online food delivery application at can tho city

CAN THO UNIVERSITYSCHOOL OF ECONOMICS

DUONG THUY NGOC

FACTORS AFFECTING CUSTOMER’S SATISFACTION WITHSERVICE QUALITY ON THE ONLINE FOOD DELIVERY

APPLICATION AT CAN THO CITY

CAN THO UNIVERSITYSCHOOL OF ECONOMICS

DUONG THUY NGOCB1911692

FACTORS AFFECTING CUSTOMER’S SATISFACTION WITHSERVICE QUALITY ON THE ONLINE FOOD DELIVERY

APPLICATION AT CAN THO CITY

SUPERVISORDr Le Tran Thien Y

Can Tho City, December/2023

DECLARATION OF INDEPENDENCE

I declare that:

 I have complied with the thesis examination procedure at Can Tho University, School of Economics

 This thesis is entirely my own original work, except where I have acknowledged use of source material [such as books, journal articles, other published material, the Internet, and the work of other students or any other person/s).

 This thesis has not been submitted for examination at Can Tho University or ebewhere

 The university and/or the examiners may communicate a copy of this thesis item to a plagiarism checking service (which may then retain a copy of the thesis on its database for the purpose of future plagiarin checking)

Online Food Delivery Application as an emerging online-to-offline mobile technology, have been widely adopted by catering businesses and customers Especially, as they have provided two-way beneficial catering delivery services in rescuing catering enterprises and customers’ satisfaction With the emerging popularity of online food delivery application, the purpose of this study was to determine factors affecting customer satisfaction with service quality on Online Food Delivery Application Service quality was measured in terms of SERVQUAL attributes The statistical results and discussions showed that more the quality of service, more the customer satisfaction and there is a significant and positive relationship exists between service quality and customer satisfaction on online food delivery applications This study also revealed that the independent variables of service quality having the most influence on the dependent variable customer satisfaction on online food delivery applications is Reliability, Responsiveness, Promotion, Perceived Price, Tangible and no influential is Empathy The study also proposed a number of solutions to improve the service quality of online food delivery applications to customers.

Keywords: online food delivery application, service quality, customer satisfaction

CHAPTER 3 DATA COLLECTION AND RESEARCH METHODOLOGY 16

3.1 DATA COLLECTION METHOD 16

3.1.1 Primary Data 16

3.1.2 Secondary Data 16

3.2 DATA ANALYSIS METHOD 16

3.2.1 Descriptive statistical method 16

4.2 OVERVIEW OF THE PERFORMANCE OF ONLINE FOOD DELIVERYAPPLICATION IN CAN THO CITY 26

CHAPTER 5 RESULTS 28

5.1 DESCRIPTIVE STASTICS 28

5.2 ASSESSING CUSTOMER SATISFACTION ON SERVICE QUALITY OFONLINE FOOD DELIVERY APPLICATION IN CAN THO CITY 31

5.2.1 Order picking applications 31

5.2.2 Frequency of ordering on the food delivery application 31

5.2.3 Average customer spends on the application 32

5.2.4 The time customers choose to place an order 33

5.2.5 Criteria that make customers choose an application 33

5.3 ANALYSIS OF FACTORS INFLUENCING CUSTOMER’SSATISFACTION ABOUT SERVICE QUALITY OF ONLINE FOOD

5.3.7 Satisfaction 39

5.4 TESTING THE RELIABILITY OF THE SCALE USING CRONBACH'SALPHA COEFFICIENT 40

5.5 EXPLORATORY FACTOR ANALYSIS (EFA) 43

5.5.1 For independent variables 43

5.5.2 For dependent variables 46

5.6 REGRESSION ANALYSIS 47

5.6.1 Correlation analysis (Pearson) 47

5.6.2 Multiple linear regression models 48

CHAPTER 6 MANAGEMENT IMLICATIONS AND CONCLUSIONS 53

6.1 CONCLUSIONS 53

6.2 IMPLICATIONS 53

6.3 LIMITATIONS AND FUTURE RESEARCH SUGGESTION 54

6.3.1 Limitations of the study 54

6.3.2 Future research 55

APPENDICES I 59

APPENDICES II 65

1.RESULT OF CRONBACH’S ALPHA DATA ANALYSIS 65

2 RESULT OF EXPLORATORY FACTOR ANALYSIS (EFA) 68

3.RESULT OF CORRELATION ANALYSIS PEARSON 72

4.RESULT OF MULTIPLE LINEAR REGRESSION MODELS (MLR) 73

LIST OF TABLES

Table 2.1 Overview of earlier foreign research articles 12

Table 3.1 Interpret the variables in the research model 22

Table 4.1 Popular online food delivery applications in Vietnam 25

Table 5.1 Respondent information 29

Table 5.2 Evaluation of "Reliability " (RL) 36

Table 5.3 Evaluation of “Tangibles” (TN) 37

Table 5.4 Evauation of "Perceived Price" (PP) 37

Table 5.5 Evaluation of "Promotion” (PO) 38

Table 5.6 Evaluation of "Empathy” (EP) 38

Table 5.7 Evaluation of “Responsiveness” (RS) 39

Table 5.8 Evaluation of “Satisfaction” (SA) 40

Table 5.9: Cronbach's Alpha Results for the Reliability Testing of Independent Variables 41

Table 5.10: Results of the rotated factor matrix for independent variables 45

Table 5.11: Results of the exploratory factor analysis (EFA) for dependent variables 46

Table 5.12: Results of correlation analysis (Pearson) 48

Table 5.13 Model Summary 49

Table 5.14 ANOVA 49

Table 5.15 The standardized regression coefficient 50

LIST OF FIGU

Figure 2.1 Servqual model 7

Figure 2.2 The research model of factors influencing satisfaction with the service quality ofonline food delivery applications 15

Figure 4.1 Market penetration rate of online food delivery 24

Figure 4.2 Revenue of goods and service of some online food delivery applications 26

Figure 4.3 Loship rules the food delivery market in Can Tho 27

Figure 5.1 Order picking applications 31

Figure 5.2 Frequency of ordering on the food delivery application 32

Figure 5.3 Average customer spends on the application 33

Figure 5.4 The time customers choose to place an order 33

Figure 5.5 Criteria that make customers choose an application 34

Figure 5.6 Problems that custommers encounter when placing an order 35

TERMS AND ABBREVIATIONS

ANOVAAnalysis of variance

EFAExploratory Factor Analysis

VIFVariance inflation factor SLRSimple Linear RegressionMLRMultiple Linear Regression

CHAPTER 1: OVERALL OF THE THESIS1.1 INTRODUCTION

Nowadays, everyone has their jobs and they have to work full-time in offices, construction sites, factories, etc Therefore, going to the market, choosing groceries, buying them, and cooking them into meals is a difficult task, and not everyone can manage it properly Busy people are willing to pay extra to order food online, and they will be quickly delivered instead of bringing packed lunches or eating out Along with the development of the economy, consumer standards are increasing and becoming more demanding They not only want delicious food but also home delivery services Understanding the psychology of customers, companies have introduced food ordering and delivery apps Customers just need to choose their favorite dishes and place an order, and the delivery drivers will quickly deliver the food Therefore, online food delivery application are becoming increasingly popular.

People who have worked in cities have a faster pace of life, and part of the reason is that they are too busy to go to restaurants and wait in long lines Instead, having an online food delivery app would be more convenient for them Online food delivery application have become a new and rapidly expanding industry in many regions, including both developed and developing countries Apps like Uber Eats, Deliveroo, and DoorDash in the United States; Just Eat and Deliveroo in the United Kingdom; or Ele.me and Meituan Dianping in China have quickly become major players in the food and dining service industry Similarly, the online food delivery application market in Vietnam has witnessed fierce competition among businesses providing such services, such as Shopee Food, Grab Food, Baemin, Loship, etc., to meet the increasing demands of customers According to a report by ychoc.com, the total expected revenue of Vietnam's online food delivery market in 2023 ranks fifth among Southeast Asian countries, after Indonesia, the Philippines, Thailand and Malaysia Vietnam is one of the countries with the fastest growth rate, with approximately 10 million monthly online food delivery application users These reasons are expected to drive the development of online food delivery activities in Vietnam, with an estimated annual growth rate of 17.25% in the period 2023-2027 Can Tho City is one of the large and bustling cities in the Mekong Delta region, with a high demand for online food delivery application

Therefore, research on the factors influencing customer satisfaction with the quality of online food delivery application is crucial to help online food delivery application businesses improve service quality, enhance competitiveness, and maintain sustainable development In addition, providing quality services is considered one of the important strategies for the success and sustainability of organizations (Parasuraman, Zeithaml, & Berry, 1985; Zeithaml, Bitner, & Gremler, 2009) Currently, with advancing technology

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and increasing demand pressure, services that are of good quality and efficient play a crucial role When services are provided effectively, it will increase customer demand and build trust in using the service To achieve this goal, the author needs to understand customer psychology and identify key factors that affect customer satisfaction with the quality of online food delivery application From there, attention can be focused on developing factors that have a strong impact on attracting customer attention instead of focusing on unimportant factors And that is the reason the author chose the topic: "Factor affecting customer’s satisfaction with service quality on the online food delivery application at Can Tho city".

1.2 OBJECTIVES OF THE STUDY

1.2.1 General objective:

The aim of this paper is to examine the effect of of service quality on the customer satisfaction on online food delivery application as well as to determine that which dimensions of service quality makes the major contribution to overall customer satisfaction in Can Tho City

1.2.2 Specific objective:

(1) Identify and analyze the factor affecting customer’s satisfaction with service quality of online food delivery application in Can Tho city viêt lại mục tiêu 1 là : Xây dựng mô hình nghiên cứu …

(2) To determine factor influencing customer satisfaction with service quality of online food delivery applications

(3) Propose managerial implications to improve the service quality of online food delivery application.

1.3 SCOPE OF STUDY

1.3.1 Scope of the study

- Time: The research will be conducted over a period of 4 months, from August 2023 to December 2023 Primary data on food delivery applications and the study area, Can Tho City, will be analyzed during the 2023 period.

- Space: The research will be conducted in three central districts of Can Tho City,

namely Ninh Kieu, Cai Rang, and Binh Thuy These districts are characterized by high population density and diversity.

1.3.2 Research subject

- Research sample: Customers aged 18 and above in Can Tho City who have already

experienced or are currently using online food delivery application.

- Research focus: The factor affecting customer satisfaction with service quality on

online food delivery application.

1.4 STRUCTURE OF THESIS

Chapter 1: Introduction

This chapter was introducing the study which included some sections on the background of the study, problem statement, research objectives, research questions, and the significance of the study It also has been discussing the definition of the term used in this study.

Chapter 2: Literature reviews

In this chapter will be describing the literature reviews from the related issue and will be covered several theories regarding the effect of service quality on customer satisfaction on online food delivery application followed by previous study on dependent variable which is customer satisfaction and six independent variables that are included in this research which are reliability, tangibility, perceived price, promotion, empathy and responsiveness From this study, possibility customer’s satisfactions on food delivery service will be affected by one or all the elements in independent variables In addition, this chapter also had been covered about the conceptual framework and hypothesis.

Chapter 3: Research methodology

This chapter was described in detail the approaches that are contained in this analysis of study The subsection in this chapter included data collection method, sample size, sampling techniques, variables measurement, and data analysis An online survey as questionnaire was created to collect information from the online food delivery application customer and was apply quantitative method in this study

Chapter 4: Result and Discussion

This chapter described the findings of the research analysis based on the data that we collected The total number of 218 respondents which at Can Tho City was collected through online survey has been converted into numerical values and entered the Statistics Package for Social Science (SPSS) spreadsheet The goal of this chapter is to determine the objective and to evaluate the hypothesis This section contains appropriate data about the demographic structure of this study The information of the respondents was gender, age, monthly income, occupation, and frequency of using online food delivery application The questionnaires which have been collected were analysed and described by using Descriptive Analysis, Reliability Analysis, Pearson Correlation Analysis and Multiple Linear Regression.

Chapter 5: Conclusion and Managerial Implications

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In this final chapter, a conclusion about how direct procurement affects the factor involved will be drawn In addition, this chapter will provide e-retailers with solutions to help them grow their business to meet the needs of Can Tho’s consumers With respect, limitations and suggestions will be presented in this chapter to support future studies in developing more efficient alternatives in the future.

CHAPTER 2:

THEORETICAL BACKGROUND 2.1 THEORETICAL BACKGROUND

2.1.1 Customer Satisfaction.

For a long time, consumer satisfaction has been significant research in marketing strategy Customer satisfaction is a crucial factor that impacts the success of online food delivery application businesses Customer satisfaction not only reflects the level of contentment with products and services but also is closely related to customer loyalty, word-of-mouth referrals, and repeat purchases Consumer satisfaction can determine customer needs and determine what is of value to customers Consumer satisfaction will help the product or service meet the excellent standard of a particular business.Customers are always the most essential element in market share and business growth (Kok & Kim, 2021) Satisfaction is an emotional or psychological response to a center, such as wishes, product, use experience, and immediately after use, after the vote, the accumulation of experience (Kumar, 2020) Satisfied customers is having a positive experience with the service quality (price, promotion, tangibility, reliability, responsiveness, and empathy) which makes customers more likely to use the app again and make similar decisions in the future (Handayani et al., 2022) According to Philip Kotler (2006), "Satisfaction is a person's feeling of pleasure or disappointment resulting from comparing a product's (or result's) perceived performance in relation to his or her expectations” Bachelet (1995) states that customer satisfaction is an emotional response of customers based on their experience with a product Customer satisfaction is the evaluation by customers of a product (goods) or service that meets their needs and expectations, which has been widely used by the Servqual five-component model (Asubonteng et al., 1996; Buttle, 1996 & Robinson, 1999) Zeithaml, Bitner & Gremler (1996) argue that customer satisfaction is the customer's acknowledgment or agreement when the product or service meets their expectations after experiencing its use In other words, satisfaction is the level of contentment or happiness of consumers after using the service On the other hand, satisfaction can be defined as “a judgement that a product or service feature, or the product or service itself, provided (or is providing) a pleasure level of consumption-related fulfillment, including levels of under- or over-fulfillment” (Oliver, 1997).

2.1.2 Services Quality

Like the concept of service, service quality is also a concept that attracts a lot of attention and controversy There are many different definitions of what service quality is According to Gröonroos (1988), service quality is commonly defined as a discrepancy

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between the service quality that is delivered by the organization and the service performance that employees expect Conceptually, service quality is defined as global judgment or attitude relating to the overall excellence or superiority of the service (Parasuraman et al., 1988) Service quality is the customer's final assessment of the excellence of the service and organization providing it (Schneider & White, 2004) According to Edvardsson, Thomsson and Ovretveit (1994), service quality is a service that meets customer expectations and satisfies their needs Mohammad & Alhamadani (2011) define service quality as "the delivery of excellent or superior service relative to customer expectations" and perceived service quality as the finding of the customer regarding the total distinction of a product or service Service quality is further been described (Parasuraman et al., 1985) as the gap between the customers’ expectation (desires and wants) of service provided and their opinion about the service encounter In this study, delivery service quality is simply defined as the process of delivering products to consumers in a way that maximally satisfies the customer's initial expectations for delivery activitie The satisfaction level of customers is strongly correlated with the quality of customer care they get since they are the ultimate consumers of a company's goods or services Hence, enterprises that depend on service providing as a major or secondary income stream must use effective approaches to precisely assess the quality of their services Furthermore, several organizations use the service quality instrument, often referred to as the service quality dimensions (Landrum et al., 2009), to assess the extent of client satisfaction and retention Parasuraman et al (1988) were the first to introduce the notion of "service quality" as a complete tool for assessing the quality of services, using input gathered from focus groups.

2.1.3 Online Food Delivery Application (OFDA)

Online food delivery application services are growing in popularity and people are more inclined to repeat again if that service can influence customer satisfaction in service quality (Koay et al., 2022) Online food delivery application refers to “the process whereby food that was ordered online is prepared and delivered to the consumer” Li et al., (2020) Online food delivery application offer various benefits to their customers including no waiting in line, no traveling for pick-up, no misunderstanding of the order which happen frequently in restaurants or phone call orders, and discounts from daily

offers Online food delivery app 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 Academicians, marketing managers, and even retail industries are continuously engaged in the enhancement of online food delivery application, aiming to minimize the costs while maximizing the number of users Viet Nam is one of the developing countries that heavily utilizes OFDA in daily activities

2.2 SERQUAL MODEL

The SERVQUAL scale (Parasuraman et al., 1988) is one of the most popular instruments to measure service quality Established on this instrument, a great number of published studies make use of and evaluated SERVQUAL (Al-Tamimi & Al-Amiri, 2003; Khudri & Sultana, 2015) In this research study, SERVQUAL scale was adopted and customized to measure restaurant service quality and the relationship between service quality and customer satisfaction on online food delivery applications.

Figure 2.1 SERVQUAL model (Parasuraman et al., 1988)

2.3 LITERATURE REVIEW

2.3.1 Domestic Research

Le Trung Ngoc Phat et al (2022) conducted a study on the relationship between delivery service quality and customer satisfaction and loyalty in retail e-commerce The analysis of a dataset consisting of 340 residents in Can Tho who have made online purchases revealed that factors such as operational quality, relational quality, and cost efficiency positively influence customer satisfaction, thereby enhancing long-term customer loyalty The research findings indicated that the operational quality factor directly contributes to customer retention However, the study had limitations in terms of the survey population, as it only focused on the business-to-consumer (B2C) transactions, omitting the relationships in business-to-business (B2B) commerce Therefore, future research should explore the impact of delivery service quality on customer satisfaction within specific product groups.

Tieu Phuong Lam (2023) conducted a research study on “ Examining the effect of logistics service quality on customer satisfaction and re-use intention” Using partial least

squares structural equation modeling on 810 respondents who were adult Chinese customers, this study discovered that operational, resource, information, personal contact, and customization qualities positively affect the satisfaction of logistics service customers, while customer satisfaction positively affects re-use intention The results revealed that customer satisfaction mediated the connection between the five components of LSQ and the re-use intention of logistics services This study has five limitations that need to be considered: First, this study, being solely quantitative, may lack the comprehensive understanding that can be gained through a qualitative research design Second, in this study, a sample of customers was drawn from a single developing economy, which may not be generalizable to all economies Third, this study was restricted to customers who had shopped earlier at a specific retailer, which may have resulted in a biased sample Fourth, CS represents only a single performance variable that affects service quality and was used in the current study Fifth, the model mentioned in this study did not consider moderating variables such as demographic factors including age, sex, occupation, and monthly income Future research may consider including moderating factor variables to investigate how demographic characteristics, such as sex, age, and so on, influence perceptions of customer satisfaction or logistics service re-use intention.

Vu Le Huy et al (2020) has conducted a study on “The impact of delivery service quality on customer satisfaction and loyalty in retail e-commerce” The study aims to test the relationship between delivery service quality and customer satisfaction in retail e-commerce services and between satisfaction and customer loyalty The study analyzed data validly collected from 384 customers mainly living in the Hai Phong area The results of exploratory factor analysis and linear regression confirm that delivery service quality factors have a positive impact on customer satisfaction and customer satisfaction also has a positive impact on loyalty Customer success in retail e-commerce services The study offers a number of implications to help retail e-commerce businesses improve customer satisfaction and create customer loyalty: research needs to be conducted with the participation of customers using e-commerce e-commerce in many other localities, need to focus more on improving the quality of delivery services and pay attention to training delivery staff and call center staff to have an attitude of providing service better service and communication with customers.

2.3.2 International Research

Baum et al (2023) has conducted a study on “Service quality of online food delivery mobile application: An examination of the spillover effect of mobile app satisfaction on food satisfaction" This study drew on the mSERVQUAL model and spillover theory to

examine the mechanism through which food-ordering mobile app service quality influences users’ mobile app satisfaction Online surveys were completed by 1,000 customers who used a foodordering mobile app to order fast food on the day they completed the online survey Structural equation modelling was then used to examine the proposed mechanism Results showed that the effects of food-ordering mobile app service quality on customer satisfaction (i.e., mobile app satisfaction and food satisfaction) and repurchase intention varied widely across service quality dimensions Mobile app service quality had significant spillover effects on food satisfaction and repurchase intention

Ahmad A Al-Tit (2015) conducted a research study on “The effect of service and food quality on customer satisfaction and hence customer retention” The aim of this study was to investigate the relationships between service quality, food quality, customer satisfaction and customer retention in limited service restaurants in Jordan A questionnaire-based survey was distributed to 400 students served at 10 limited service restaurants in the neighbourhood of universities in Amman, the capital city of Jordan Service quality was measured in terms of SERVQUAL attributes The findings showed that service quality and food quality have a positive influence on customer satisfaction In addition, service quality dimensions besides customer satisfaction have a positive influence on customer retention The practical implications of this study are founded on the fact that limited service restaurants in the neighbourhood of universities should realize the critical role of service and food quality in satisfying their customers as an antecedent of their retention This study is original as it examines the relationships between service and food quality and customer satisfaction and retention in a specific type of restaurants in Jordan.

Anis Zulaikha Binti Rosli (2023) conducted a research study on “ The effect of service quality on customer satisfaction in online food delivery service among Malaysian generation Z This study is to determine the relationship between the service quality dimension which are tangibility, reliability, responsiveness, assurance, and empathy with customer satisfaction in online food delivery service among Malaysian generation Z An online questionnaire was distributed through social media to users of online food delivery service among generation Z with selected age of 18-26 years old The number of sample size is 150 and this study used non-probability sample and purposive sampling techniques The result obtained and showing that the relationship between all the dimensions of service quality is significant on customer satisfaction in online food delivery service among generation Z

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Daffa Hafizh Ananda (2022) conducted a research study on “The influence of price, service quality and trust on online transportation towards consumer satisfaction” The purpose of this study is to find out how much influence service quality, price, and trust have on customer satisfaction on Go-car Protect + online transportation in Indonesia The research method used in this study is a quantitative method with causal analysis techniques Data collection techniques used through primary data with questionnaires The sample taken in this study was 390 users of the Go- Car protect online transportation service in Indonesia The results of this study resulted in the finding that service quality, price and trust had a partial and simultaneous positive effect on customer satisfaction.The limitations identified during this study are focuses on finding out how service quality, price and trust and the choice of research subjects is not diverse Further researchers are advised to add other additional variables that can influence consumer satisfaction to be even better, conduct research with a wider sample of respondents to get more accurate results and conduct research using indicators and references from different and up-to-date sources and recommended for further research to be able to choose more diverse research objects, such as competitors from Gocar protect or other similar businesses or services

Cantyka Trisand, Doni Putra Utama (2022) conducted a research study on “The influence of service quality and price on customer satisfaction on Gojek users at Batam State Polytechnic” This study aims to examine the extent to which service quality and price influence customer satisfaction on Gojek users in Batam Polytechnic State The population of this research is active students majoring in Managerial Accounting, Applied Business Administration, and International Trade Logistics for the 2018 and 2020 class of employees at the Batam State Polytechnic The total respondents are 100 students This study uses a quantitative approach and data collection methods through surveys by distributing questionnaires through Google Form The results of this study prove that service quality has a significant positive effect on customer satisfaction, Price has a significant positive effect on customer satisfaction, and Service quality and price have a significant positive effect on customer satisfaction Further research, it is suggested to other researchers to be able to examine other factors that influence Customer Satisfaction on Gojek users

Sengazhani Murugesan Vadivel et al (2023) conducted a research study on “Infuences of Indian postal service quality factors on customer satisfaction amidst Covid-19 pandemic: an empirical study” This research intends to examine the Service Quality (SQ) factors in mail service operations conducted at NSH offices Data were collected

from a sample of 296 respondents of the Indian postal customers With the use of R programming, the fndings are examined by structural equation modelling (SEM) analysis The fndings show that there is a signifcant impact of service quality factors on customer satisfaction during the COVID-19 The research results indicate that India post service has taking necessary steps to enhance the service quality factors.

Bỏ cột cuối trong bảng, làm cho bảng gọn lại.

Tách thành 2 bảng tỏng và ngoài nước tuuơng ứng với nội dung trình bày phái trên.

-The operational quality factor alone also

The delivery service quality factors have a

The findings suggested that more the quality of service, more the customer satisfaction and there is a significant and positive relationship exists between service quality and customer

That service quality and food quality have a

EFA, MLR The service quality, price and trust had a partial and simultaneous

EFA, MLR Research results

indicate that the service quality and price have a significant positive effect on customer satisfaction.

Table 2.1 Overview of earlier foreign research articles

2.4 HYPOTHSIS AND RESEARCH MODEL

2.4.1 Reliability

Reliability is defined as “the ability to perform the promised service dependably and accurately” or “delivering on its promises” (Fourie, 2015) The reliability of a service may be measured by how well the supplier responds to client complaints and how consistently they provide the expected outcomes (Siti Zaleha et al., 2018) The reliability of the application must originate from several levels of perception, such as the product presentation, the availability of the product, and the convenience of using the application (Verma, 2020) When discussing of OFDA, the concept of reliability can be show on the ability of deliverymen to carry out the services that have been promised in an accurate and comprehensive approach (Kian Yeik et al., 2022) Consumers are more likely to trust a business that provides good service because it is reliable, which in turn increases levels of customer satisfaction (Saad, 2020) For the food & beverage industry, reliability can be interpreted to mean fresh food delivered at the correct temperature and accurately the first time (Andaleeb & Conway, 2006) Researchers have established a favourable relationship between reliability and customer satisfaction in the service industry (Kian Yeik et al., 2022).

H1: Reliability has a positively influences on consumer satisfaction.

2.4.2 Tangible Elements

Tangibility is the appearance of physical facilities such as the equipment, employees, and written information (Sahak et al., 2018) The three elements of tangible of service quality are offline, online, and mobile (Yunji & Armstrong, 2020) Tangibles are used by firms to convey animage and signal quality It interprets to the restaurant’s interiors, the appearance and condition of the cutlery, tableware, and uniform of the staff, the appearance and design of the menu, restaurant signage and advertisements (Fourie, 2015) The previous studies mention that the dimension ‘tangibility' evaluated the restaurants physical features and layout’s utility which would influence the perception quality For example, the consumer would examine the cleanliness of the floor, the smell of the air, arrangement of the table and much more which contribute to the persecution of service quality (Sahak et al., 2019) In the aspect of online tangible, app designed, or websites has aesthetic indicate visual attractiveness (Yunji & Armstrong, 2020) Besides

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that, ease of use of app or Websites It refers to the customer ability to utilize a userfriendly Web interface (Yunji & Armstrong, 2020) Another factor is customer notice that the delivery people with proper uniform and packaging of food is importance (Parab et al., 2022).

H2: Tangible elements has a positively influences on consumer satisfaction.

2.4.3 Perceived Price

Price always plays an important role and determines the choice of product or service Al-msallam (2015) indicated the price is an essential factor in generating customer satisfaction because customers always evaluate the value of services based on their prices Martın-Consuegra et al (2003) showed that perceived price is directly affected by consumer satisfaction judgment At the same time, perceived price fairness indirectly affects price acceptance through customer loyalty Susanti (2019) stated that price is an essential factor in determining customer satisfaction because all consumers evaluate the value of the service received at the price they paid As a result, perceived unfair prices may lead to brand abandonment and brand switching Rothenberger's (2015) research shows that perceived price airness is an effective way to evaluate consumer satisfaction and increase customer loyalty

H3: Perceived price has a positively influences on consumer satisfaction.

2.4.4 Promotion

Promotion is marketing communication tools used to stimulate revenue Promotions activities also can influence consumers to change brands, increase purchases and overspending Pi & Huang (2011) research found that promotion can maintain customer loyalty by improving consumer satisfaction, trust and commitment The research results of Alipour et al (2018) showed that appropriate promotional activities have a significant impact on consumer satisfaction Nakarmi's (2018) research shows that customers are too satisfied with price discounts, coupons, free samples and "buy one get one free" Therefore, promotional practices will improve sales by influencing kconsumers' purchase behaviour

H4: Promotion has a positively influences on consumer satisfaction.

2.4.5 Empathy

Empathy is defined as the “caring, individualized attention the firm provides its customer (Zeithaml et al., 2006) in Fourie, 2015) Empathy defined as providing individualized care to each consumer (Park & Kim, 2022) Empathy is all about treating the customer that he is unique and special smaller companies can especially succeed in this over larger companies as well as industries that focus on building a relationship with their customers (Andaleeb & Conway, 2006) Empathy is defined as personalised attention provides to the customers (Ramya et al., 2019) This includes ensuring that employees provide

individual attention to customers, that operation time are convenient for all customers, that employees are compassionate to customer problems, and that customers' best interests are prioritised (Sahak et al., 2019) Individual attention towards each customer is a necessary attitude in some countries around the world (Kobiruzzaman, 2020) This element wants to describe the idea that customers are unique and special to the company by providing individualised or personalised services (Ramya et al., 2019)

H5: Empathy has a positively influences on consumer satisfaction.

2.4.6 Responsiveness

Responsiveness “is the willingness to help customers and provide prompt service” (Harr, 2008) Responsiveness is the service provider's or workers' willingness to meet consumer needs (Sahak et al., 2019) Responsiveness relates to the punctually dealing with customers’ request, complaints, and questions The responsiveness of a service provider or its employees is evaluated by their ability to react to a customer's service demand (Sahak et al., 2019) The time duration customers may wait for an answer or solution will determine responsiveness To simplify, customer’s issues are resolved as fast as possible due to responsiveness by providing anticipated information or changing products (Kobiruzzaman, 2020) The responsiveness conditions can be improved by constantly observing the process of service delivery and employees' attitudes toward customers ’ requests (Ramya et al., 2019)

H6: Responsiveness has a positively influences on consumer satisfaction.

This research article synthesizes and adjusts certain points from previous studies to align with the field and research objectives of the topic Specifically, the satisfaction measures will be compiled by the research team from the reviewed studies and propose factors that are relevant to the research field of higher education and achieve the expected research outcomes Additionally, through the literature review, the research team aims to verify customer satisfaction with the service quality of online food delivery applications As a result, the study proposes a research model as shown in Figure 2.2.

Figure 2.2 The research model of factors influencing satisfaction with the service qualityof online food delivery applications.

Source: Proposal Research, 2023

CHAPTER 3 DATA COLLECTION AND RESEARCHMETHODOLOGY

3.1 DATA COLLECTION METHOD

3.1.1 Primary Data

The sample consists of customers who are currently using online food delivery applications in Can Tho City, with varying genders, occupations, incomes, educational backgrounds, etc According to Hair et al (2010), in factor analysis, the minimum number of observations should be at least five times the number of observed variables In the research model, there are 33 observed variables Therefore, the minimum required sample size is n = 5x33 = 165 The author chose a sample size of 218 for the formal study, which is considered large enough to meet the requirements and account for potential cases of non-standard or excluded samples Next, the author will process the data using SPSS, which includes the following steps: descriptive statistics, running Cronbach's Alpha, running EFA to test the convergence and discriminant validity of the component variables Subsequently, correlation analysis, ANOVA, and regression analysis will be performed.

3.1.2 Secondary Data

The secondary data for the research topic is primarily collected from websites or social media platforms of the applications, the electronic portal of Can Tho City, relevant reports, and studies on customer satisfaction with the service quality of online food delivery applications.

3.2 DATA ANALYSIS METHOD

After the primary data and secondary data are collected, all data will be screened to remove poor quality observations, junk variables (inconsistent), and missing data (missing value), data are imported are re-encoded accordingly before being analyzed Following are the data analysis methods applied in this study:

3.2.1 Descriptive statistical method

The frequency analysis method is one of the descriptive statistical tools used to describe and understand the distributional properties of certain raw data samples In this research scope, the method of frequency analysis is used to measure both quantitative and qualitative variables in the form of counting occurrences, to simulate a number of variables related to the demographic characteristics of simulated subjects’ issues such as gender, education level, age, income, occupation.

It is a set of measurements methods, describing and presenting data collected from the survey.

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Average value (Mean, Average): Equals the sum of all values of the observed variable divided by the number of observations.

Median number: Is the value of the middle variables of a series of numbers sorted in ascending or descending order The median divides the sequence into 2 parts, each with an equal number of observations

Variance: Is the average between the square of deviations between the variables and the mean of those variables.

Standard deviation: Is the square root of the variance.

3.2.2 Cronbach's Alpha

Cronbach's Alpha test is used to evaluate the reliability of groups of factors and each small variable within that group of factors to avoid the case that garbage variables can produce dummy factors.

Observed variables must have an item-total correlation greater than 0.3 If there is a variable with total correlation system less than 0.3 in Cronbach's Alpha analysis, it will be rejected (Nunnally & Burnstein, 1994) At the same time Cronbach's Alpha coefficients of factor groups must be between 0.6 and 1.0 (Peterson, 1994).

3.2.3 Analysis to exploratory EFA

This method is used to divide the independent variables into groups with similar properties and characteristics Factor analysis is the generic name of a group of procedures that are mainly used to miniature and summarize data.

Barlett's test of sphericity is a statistical measure used to examine hypotheses that variables are not correlated in population with the following hypothesis:

If the p value < a, hypothesis is rejected and if the p value > a, hypothesis is accepted Correlation matrix (Correlation matrix): Shows the correlation coefficient between all pairs of variables in the analysis Theoretically, the correlation coefficient is normally above 0.7, the variables have a very high correlation with each other In practice, however, the standard 0.7 is too high and the number of standards is not actually met Therefore in practice a study specifically for exploration purposes will use a lower level with a correlation coefficient of 0.5.

Communality: Is the amount of variation of a variable explained together with other variables considered in the analysis This is the variation explained by the general factors Eigenvalue: Represents the variation explained for each factor With this criterion, only fators with Eigenvalue ≥ 1 are kept in the analytical model.

Total Variance Explained ≥ 50% shows that the EFA model is suitable Considering the variation as 100% this value represent how much % of the extracted fators are condensed and how many % of the observed variables are lost

Factor loading: is the correlation coefficients between variables and factors Factor matrix: Contains factor load coefficients of the variables for the factors

Factor scores: Synthesis is estimated for each observation on the factors drawn, also known as multiplier scores

Kaise-Meyer-Olkin (KMO): is the index used to consider the appropriateness of factor analysis, 0.5 <KMO value <1 is sufficient condition for factor analysis is appropriate, if KMO value is small more than 0.5, the data is inconsistent

The method of Regression Analysis

3.2.4 Regression Analysis

In research, we often must test hypotheses about the relationship between two or more variables, in which there is a dependent variable and one or more independent variables If there are two or more independent variables, the model is called Multiple Linear Regression (MLR)

The next content in this document only refers to multiple regression, regression similar properties to multiple regression.

Multiple regression equation: Y = ꞵ0 + ꞵ1X1 + ꞵ2X2 + + ꞵnXn+e In there:

Y: dependent variable, is the variable that is affected by another variable X, X1,X2, Xn: independent variable, is the variable that affects other variables.

ꞵ0: regression constant, also known as intercept coefficient, this is an index that fellesstowhat the value of Y would be if all Xs were equal to 0 In other words, it tells us what the value of Y would be if there were no Xs When shown above Oxy graph, Bo is the point on the Oy axis that the regression line intersects.

ꞵ1, ꞵ2, ꞵn: regression coefficient, also known as slope coefficient This metric tells us about the change in Y caused by the corresponding X In other words, this metric tells how many units of Y will change if X increases or decreases by one.

e: error The larger this index, the more likely the regression prediction becomes less accurate or more deviating from reality The error in the population regression or the residual in the sample regression represents two values, one being independent variables

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outside the model, the other being in statistics, the problem we want to evaluate is the information of the random errors.

3.3 QUESTIONNAIRES DEVELOPMENT

Questionnaires are a method to collect data quickly and efficiently on a particular issue questionnaires usually include many questions and are designed to be simple for respondents to understand and answer easily The design of the questionnaire helps to measure the properties of things, for quantitative analysis of research problems, on the other hand, to facilitate the design of questionnaires for the investigation and them processing the data.

In this research project, the Likert scale is commonly used to measure the properties of the object for the analysis of the research problem and to benefit the design of the question for the data management according to research model Although all survey items were developed in English, they were translated into Vietnamese and modified in consideration of the study’s goals and the characteristics of the respondents All items were measured on a five-point Likert scale ranging from “strongly disagree” to “strongly agree” There are three parts to the questionnaire The first section includes a question to distinguish the respondent’s qualifications Measurements are presented in the next section to evaluate the factors that influence a customer’s choice to use Demographic questions are answered in the third section The observed variables in the research model are presented in detail in Table 3.2.

RL1 The delivery unit complies with its commitments to customers.

RL2 The delivery unit delivers the correct goods the first time.

RL3 Delivery staff are always ready to assist

RL4 The delivery unit completed the delivery on time as committed.

TN1 The application's websites are arranged in an eye-catching and diverse manner.

TN2 Staff uniforms are neat when delivering goods

TN3 Working style of professional delivery staff

TN4 Delivery staff fully prepares motorbikes, phones, and boxes when delivering goods

Tran et al., 2020

TN5 The app provides good service with many foods to choose

application to view the shipping proces

PP3 The application has discounts and

Escobar-Rodríguez et al., 2013

PP4 I feel happy because the app has no delivery fees

PP5 I feel the service the application provides is more valuable than the money I spend

PO1 The application organizes many gift giving programs for participate customers

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PO2 The application has a point accumulation

program for users Poornima Pugazhenthi,2010; K Keller et al., 2008

receive more incentives

PO4 Promotions and discounts are very important to me when ordering food online

EP2 Delivery staff are dedicated and attentive to each customer

EP3 Delivery staff clearly understand

customers' individual requirements Parasuraman et al.,1988 EP4 Delivery staff proactively contact when

encountering problems

RS1 Delivery staff is on time and fast

RS2 Delivery staff is ready to support express orders

RS3 Delivery staff are polite and respectful to

RS4 Staff is ready to process customer

SA2 I am satisfied with the convenience that the application brings

SA3 I think using the app is the right thing to

SA4 I am satisfied with the modern features of the application

SA5 I have had good experiences while using the application

Table 3.1 Interpret the variables in the research model.Source: Proposal Research, 2023

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CHAPTER 4 THE DEVELOPMENT OF FOOD DELIVERYAPPLICATIONS IN VIETNAM

4.1 PERFORMANCE AND DEVELOPMENT OF FOOD DELIVERYAPPLICATIONS IN VIETNAM

Currently, changing living habits due to the speed of urbanization and busy lifestyle in major cities and gradually spreading to satellite cities, are the factors that help put Mobile app food just got easier Online food delivery applications are listing more and more dishes, from luxury to affordable, giving customers more options after just a few finger touches on the screen Orders are completed quickly (approximately 30 minutes) on a large scale thanks to technology.

Based on the data provided by Statista.com the Online Food Delivery market in Vietnam is projected to generate a revenue of 1.93 billion USD by 2023 Vietnam's online food delivery market is experiencing rapid growth, driven by the increasing adoption of smartphones and a growing demand for convenience among urban consumers.

Based on a study conducted by Imarcgroup (2020), it is projected that the OFD services market in Vietnam is expected to see a compound annual growth rate (CAGR) of around 34% over the period from 2021 to 2026 The market shares of OFD websites and applications in Vietnam are seeing rapid growth because of the enhanced convenience and transparency they provide to customers To achieve success in the contemporary and fiercely competitive industry, enterprises offering on-demand delivery (ODD) services must prioritize the key factors that have the utmost significance for their customer base Accrording to BSOVN.com, the market in Vietnam's food delivery industry is thriving The most popular names that users are familiar with are Grab Food, Go Viet, and Now (formerly known as Delivery Now) In 2018, the percentage of Vietnamese food delivery market entrants is roughly 5.5% The estimate for 2019 is 12.9% (Figture 4.1)

Figure 4.1 Market penetration rate of online food deliverySoure: BSOVN.com

According to Vietdata.vn, the seven most popular online meal ordering apps in the Vietnamese market are Grab Food, Shoppe Food (formerly Now), Baemin, Gojeck, Loship, Ahamove and Be (Table 4.1)

MarketOwner/ Investor

1 Shoppe Food 2016 16 cities Belonging to Foody DTNI (South Korea) 4 Baemin 6/2019 HCM city Belonging to Woowa Brothers Corp., the

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city Belonging to Vietnam 7 Be 12/2018 27 cities Belonging to Be Group

Table 4.1 Popular online food delivery applications in VietnamSoure: Vietdata.vn

According to Vietdata.vn, the online food delivery market in Vietnam was getting more active, with many new brands entering the market from different approaches In 2018, Vietnam only had a few food delivery brands such as Now, Lala (disappeared from the market after a few months of operation), Vietnam (later gained by Baemin), by 2022 There are at least 8 businesses in the industry Online food delivery developed well in urban areas, especially big cities such as Hanoi, Ho Chi Minh City, and Da Nang, with a high number of drivers and orders The F&B market is growing well, there are more and more restaurants with many types of services, giving users various choices In 2021, there was a growth in the revenue of some new applications and the decline of some old enterprises Grab, Gojek and Be are the three apps that reduced revenue due to fierce competition in the market The competition among applications for market share is still heated, becoming even more so as Baemin picks up speed to catch up to the front-runner GrabFood According to Reputa Vietnam, GrabFood has a 33.3% market share in the industry conversation, followed by Shoppe food (formerly Now) with a 23.1% share and Baemin with a 21.9% share Thanks to the implementing of a series of incentives to attract new users, along with the non-stop expansion, Shopee food, Baemin and Loship have achieved growth in revenue (Figure 4.2)

Figure 4.2 Revenue of goods and service of some online food delivery applications

Source: Reputa.vn

4.2 OVERVIEW OF THE PERFORMANCE OF ONLINE FOODDELIVERY APPLICATION IN CAN THO CITY

In Can Tho city, online food delivery applications have appeared since 2018 Applications are commonly used in the city urban areas such as Ninh Kieu, Cai Rang, and Binh Thuy districts Loship, Shoppe Food and Grab Food apps that are three popular and used a lot The use of food delivery services in Can Tho City has seen a surge due to changes in customer behavior and environmental circumstances Digital technology is a significant determinant that shapes consumer behavior in Can Tho City and enhances the overall quality of life for its residents In the Vietnamese capital of the Mekong Delta, a diverse range of food and beverage options is now available to consumers Individuals residing in Can Tho City who are now experiencing hunger may conveniently address their needs by using their smartphone to access a mobile application, whereby they can proceed to make their desired food order and afterward await its delivery to their place of residence Individuals are not obligated to undertake lengthy journeys, tolerate high temperatures and large gatherings at street food vendors, or wait in lengthy queues at highly regarded dining establishments or grocery stores In light of this, the purpose of this study is to discuss how the decision of online food order in Can Tho City to explore the determinants affecting customers’ satisfaction.

In recent years, food delivery apps have grown in popularity in Can Tho City, with brands like Loship, Baemin, Grab Food, and ShopeeFood becoming household names Recently, a quick survey about delivery services was conducted in one of the largest Facebook communities residing in Can Tho The survey shows that Loship is the most popular food delivery app in tier 2 cities, with a large number of drivers scattered on the streets Loship has begun expanding beyond tier 1 cities in Vietnam since summer 2019, with Can Tho in the Mekong Delta as its first target market In six months, Loship's order volume in Can Tho reached a record of 250,000 orders per month, an increase of more than 80 times compared to the initial launch With 1.2 million residents, Can Tho City is the biggest city in the area and the fourth largest in Vietnam Consequently, food delivery applications have many opportunities to penetrate the market and will be more successful when they understand the market and grasp customer tastes.

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Figure 4.3 Loship rules the food delivery market in Can ThoSource: khoinghiepsangtao.vn

CHAPTER 5 RESULTS5.1 DESCRIPTIVE STASTICS

The research topic involves conducting interviews with customers in Can Tho City who are currently using online food delivery applications in Can Tho City The data collection is done using a pre-designed questionnaire, and a convenience sampling method is employed During the screening, data cleaning, and data encoding process, the author selected and retained 218 observations that provided complete and accurate responses Therefore, the number of observations included in the analysis of factors influencing customer satisfaction with the service quality of online food delivery applications in Can Tho City is 218 To gain a better understanding of the characteristics of the sample, the author analyzed frequencies and described information about the respondents'

Binh Thuy District Ninh Kieu District Cai Rang District