research on factors affecting customers decision to use online food orderingservice 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 INHANOI

INTRODUCTION 3

1 Research objectives2 Research questions3 Research structure

3 Ensuring Validity and Reliability 11

3 Limited access to information 12

The way people search for information and conduct business is being transformedby the Internet and smart technology devices like smartphones, laptops, and tablets.Businesses recognize the Internet as a convenient and suitable platform for engagingwith a large number of customers Fast food companies have also taken advantage ofthe Internet's capabilities by allowing customers to order food online, therebyincreasing convenience and streamlining the purchase process.

The global online food delivery industry has attracted billions of dollars ininvestments and is thriving in Vietnam Various organisations report that Vietnam'sonline food ordering market has a lot of potential and has seen a significant increasein users since 2020 The competition between food delivery apps has intensified, butthey provide convenience to users during the pandemic and allow restaurants toremain open during social distancing These apps are making urban dwellers' livesmuch easier.

The top five applications utilised by users are Grab, Now, Gojek, Baemin, andLoShip The leaders in this group are Grab and Now, which dominate the market.Now, which can be considered a pioneer in this industry, began experimenting withfood delivery in 2014 It combined its unique delivery service with a TV channel toachieve success The app has been able to attract a significant number of foodretailers and beverage suppliers, totaling around 20,000 stores, along with excitingpromotions that have enticed users In the middle of 2017, the CEO of Foodyreported that Now receives nearly 10,000 orders on a daily basis.

As society, the economy, and information technology continue to grow, more peopleare turning to online food ordering services as a convenient way to access productsin this modern era To help transport companies maintain their market share amidstfierce competition, we aim to investigate what factors influence consumers'decisions to use these services This is why we have chosen to focus on the topic of

"Research on factors affecting customers' decision to use online food orderingservice in Hanoi."

1.1.Research objectives

In December 2021, Q&Me, a research firm, conducted a survey on a sample ofindividuals aged 18-40 living in major cities such as Hanoi, Ho Chi Minh City, andDa Nang The survey revealed that 83% of the respondents utilised food deliveryservices, marking a 20% increase from the previous year (62%) Furthermore, 77%of those surveyed opted for online food ordering services on their mobile phones.

Therefore, conducting research on the factors influencing students’ decision to useonline food ordering services in Foreign Trade University is fundamental andpractical for both business managers and authorities in making strategic decisionsand developing appropriate management policies Hence, our research objectivesinvolve:

- Identify the elements that influence the choice of customers in Hanoi of utilisingonline food ordering services.

- Determine the degree of influence of each factor on customers' decision to useonline food ordering services in Hanoi.

- Offer some suggestions for enhancing online food ordering service in Hanoi.

- What solutions help improve the quality of online food ordering services inuniversities in Hanoi?

1.3.Research structure

The research is structured as follows Part 2: Literature review is where we will bediscussing the definitions of each key terms in the topic such as service, online foodordering along with the summary of related research for a clearer insight into thetopic; also, we will point out the gap in past researches in order to enhance theresearch result Part 3: Methodology is going to discuss further into the researchmethod and design to collect data as mentioned in Part 4: Data collection Theexpected results draw on the way of which data is collected and is shown in Part 5:Expected results However, these results may be inaccurate due to foreseen problemswhich are identified in Part 6: Research limitations From the information we gather,we can conclude and bring the proposal to the end by Part 6: Conclusion and givecredit to those whose articles we have looked into in Part 7: References.

2.LITERATURE REVIEW

2.1.Definition of service

A service is an act of doing something for someone or something It also refers tothe provision of a particular product or assistance that is intended to meet the needsor satisfy the wants of clients or customers Service can be provided in variousforms, such as customer service, community service, public service, etc It is animportant aspect of many industries and plays a crucial role in building andmaintaining strong relationships between businesses and their customers.

2.2.Definition of online food ordering

Online food ordering is the process of ordering food, for delivery or pickup, from awebsite or other application The product can be either ready-to-eat food (e.g., directfrom a home-kitchen, restaurant, or a virtual restaurant) or food that has not beenspecially prepared for direct consumption (e.g., vegetables direct from afarm/garden, fruits, frozen meats etc).

2.3.Related research

Pei-Hsuan Tsai and partners looked into factors influencing the consumers’behavioural intention to use online food delivery service with evidence fromTaiwan The research indicated that three main factors influence customer choice: (i)Consumers are not required to leave the house; (ii) Using such services savesconsumers' time; (iii) The services offer discounted delivery charges.

Kyungyul Jun, Borham Yoon, Seungsuk Lee and Dong-Soo Lee published a studyabout the factors affecting customers’ intention to use online food delivery services.The results confirmed that enjoyment, trust and social influence have contributedgreat importance in customers’ acceptance of online food delivery services.

According to Arun Giri and Dr Nehayajurvedi’s study, there are 15 factors i.e foodprice, service quality, packaging, advertisement, food quality, food taste, speed offood delivery, payment options, offers & discounts, hygiene, delivery trackingservices, menu, number of restaurants, attitude of delivery person and conveniencewhich affected consumer behaviour towards online food delivery services providers.

2.4.Research gap

Typically, past research has focused on the connection between user interface anduser experience, specifically regarding perceived usefulness, perceived ease, price,promotion, and consumer loyalty towards online food ordering devices.Consequently, using these prior studies as a reference, there are research gaps thatneed to be addressed, such as

- The relationship between personal factors (gender, wage, age) and customerloyalty to online food ordering devices.

- The correlation between different sources of information (personalrecommendations, commercial platforms, public sources, experiential factors)and customer loyalty towards online food ordering devices.

In summary, our research highlights the significance of various individual factors,information sources, and previously identified factors in relation to customer loyaltytowards online food ordering systems Therefore, we will conduct this study bytesting a model and constructing relevant hypotheses.

We chose this design to achieve the best outcomes for our research due to itssuitability to our research objectives in several ways Firstly, the qualitative phasehelps us understand the research and build a theoretical framework, researchquestions, and prepare for the next phase Secondly, it might help us discover newfactors that influence consumers’ decisions to order food online Thirdly, thequalitative phase complements the quantitative phase by establishing possiblerelationships between variables, while the quantitative phase verifies theserelationships Finally, the qualitative phase allows for diverse perspectives tocomplete the research.

3.2.Research methods

The research methodology we have chosen is a mixed-methods sequentialexploratory research design as our research encompasses both exploratory andexplanatory studies As per Mark N.K Saunders, Philip Lewis, and Adrian Thornhill(2019), the mixed-methods research design comprises various techniques, includinggathering quantitative data using questionnaires, analysing quantitative data,

collecting qualitative data through interviews and archival/documentary researchtechniques, and analysing qualitative data.

To execute our research, our team decided to choose survey and archival anddocumentary research strategies

A survey is a method of collecting information or feedback from a group of people.It typically involves asking a set of questions to the participants to gather theiropinions, preferences, and experiences on a particular topic or issue Surveys can beconducted in various forms such as online surveys, telephone surveys, postalsurveys, or face-to-face interviews The data collected from surveys can be used toanalyse and understand the behaviour, attitudes, and needs of the population beingsurveyed.

Advantages of conducting a survey include the fact that it is a cost-effective methodof collecting quantitative data, providing a source of data in a short period of time,and offering a straightforward means of analysing and visualising data Surveysconducted online or via email also allow for anonymous responses However, thereare also disadvantages to conducting a survey, such as the potential for dishonestresponses, misunderstandings of survey questions, and respondent fatigue.

The purpose of conducting a survey in this specific case is to understand the factorsthat consumers consider important when using online food ordering services inHanoi, as well as to gather opinions and suggestions for improvement The surveyresults will also show the degree of influence of each factor on students' decision touse online food ordering services in Foreign Trade University.

Our team also used Archival and documentary research strategy in our research,which is a type of research that involves the examination and analysis of historicaldocuments and archival materials This type of research is commonly used inacademic studies, especially in the humanities and social sciences, to gain insight

into past events, social structures, and cultural practices Examples of archivalmaterials include government records, personal letters, journals, photographs, andother primary sources.The researcher gathers data from these archives anddocuments and analyses them to draw conclusions This type of research can betime-consuming and requires a great deal of attention to detail, but it can beincredibly valuable in shedding new light on historical events and social phenomena.

The aim of using archival and documentary research techniques is to create atheoretical framework that delves into the factors influencing online food serviceselection by consumers and how these factors are connected However, there aredrawbacks associated with this approach in our research One of these is that thesecondary data accessed may not have been initially gathered for our researchobjectives, which can lead to problems like outdated details Furthermore, obtainingreliable secondary data sources may be restricted due to legal constraints and mayentail significant expenses Additionally, the data quality may be compromised,either due to unintentional errors in data collection and analysis or biassedpresentation of data, where the initial research goal is to highlight specificinformation that supports their conclusions However, we believe that despite itsdrawbacks, archival and documentary research techniques are suitable for ourresearch Firstly, the data is cost-efficient despite the financial barriers mentionedabove, as it can be easily and freely accessible online, especially government datasources Furthermore, online data can save considerable time for research teams andmitigate ethical problems that may arise when collecting primary data Secondly,this approach can present novel insights into the problems due to the wide variety ofoptions available through accessible resources.

4.DATA COLLECTION

Considering the aim of the research, a combination of different methodologies isutilised, involving a qualitative approach in the initial phase of the study followed bya quantitative approach in the subsequent step.

In the initial stage, the authors collect data in a manner that allows them to gainprofound insights into the subject and identify novel factors that impact the usage offood ordering platforms, specifically through expert opinions Thematic analysis isselected as it is a suitable and robust method for comprehending a range ofexperiences, thoughts, or behaviours within a dataset (Braun & Clarke, 2012).Consistent with this methodological approach, interviews are conducted, whichRecker (2013) suggests is the most popular and effective strategy forcomprehensively understanding a topic in practical terms In the initial stage, theauthors collect data in a manner that allows them to gain profound insights into thesubject and identify novel factors that impact the usage of food ordering platforms,specifically through expert opinions Thematic analysis is selected as it is a suitableand powerful method for comprehending a range of experiences, thoughts, orbehaviours within a dataset (Braun & Clarke, 2012) Consistent with thismethodological approach, interviews are conducted, which Recker (2013) suggestsas the most popular and effective strategy for obtaining a comprehensiveunderstanding of a topic in practical terms

In the process of choosing participants, our aim is to conduct interviews withprofessionals specialising in consumer behaviour analysis, who may also be referredto as market researchers or consumer/marketing specialists employed by orassociated with companies that offer food ordering platforms When selectingrespondents, we aim to interview consumer behaviour analysts, also known asmarket researchers or consumer/marketing specialists working with or for firmsproviding food ordering platforms We utilise LinkedIn as a valuable professionalsocial network to connect with consumer behaviour analysts who are associated withor employed by companies in the food ordering industry As researchers, we acquirea Premium plan on LinkedIn, enabling us to send messages to individuals with