Project Report Mba Final.docx

B.E. MBA 5TH YEAR, CM14210

STUDENT PREFERENCE TOWARDS ONLINE FOOD ORDERING

Students Preference towards Online Food Ordering

| BHAVIKTISHA SINGLA

Online Food Ordering

INTRODUCTION In today’s world service sector contributes 64.80% in GDP. Zomato is one of the most popular applications that provide services to the user to discover restaurants. The rise of digital technology is reshaping the industries. With the increased use of technology, the numbers of people engaging into the digital sector are rapidly increasing. Even Consumers are accustomed to shopping or even ordering online through apps or websites, with maximum convenience and transparency, expecting the same experience that they would get from the outlet itself. To match up with the consumer’s expectations apps are providing increased facilities and services to the customers. With the entire boom in digital industry across the globe, it’s had its impact on the Indian economy too. The market size of food in India is expected to reach Rs. 42 lakh crore by 2020, reports BCG. Presently, the Indian food market is around $350 billion. The space is coming up with a lot of innovation catering to their customer convenience, satisfaction and retention. This has also built room for a lot of new players, who are targeting specific groups of people. Many new players joining the segment with innovative business models such as delivering food for health conscious people, home cooked meals, etc. Online food ordering Services are websites that feature interactive menu’s allowing customers to place orders with local restaurants and food cooperatives. Much like ordering consumer goods online, many of these allow customers to keep accounts with them in order to make frequent ordering convenient. A customer will search for a favourite restaurant, choose from available items, and choose delivery or pick-up. Payment can

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Online Food Ordering

be amongst others by credit card or cash, with the restaurant returning a percentage to the online food company. The first restaurants to adopt online food ordering services were corporate franchises such as Domino’s and Papa John’s. Online food ordering could be called the response of the internet to the desire for delivery food. It is a growing trend especially in urban area students and on college campuses that allows students to order from different restaurants, by use of their internet connection. There are several ways in which online food ordering from a restaurant may occur. A restaurant can have its website with easy features for placing an order for pick up or delivery. Some add a third option of being able to make reservation. Instead of calling for a delivery, people just access the internet to the restaurant site and make their order. Food diversity in India is an implicit characteristic of India’s diversified culture consisting of different regions and states within. However, with times due to increasing awareness and influence of western culture, there is a slight shift in food consumption patterns especially among urban students. It started with eating outside and moved on to accepting a wide variety of delicacies from world-over. Liberalization of the Indian economy in the early 1990s and the subsequent entry of new players set a significant change in lifestyles and the food tastes of Indians.

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Online Food Ordering

PROBLEM OF THE STUDY: In universities, the most common phenomenon is that owing to variable timetable and study pressure during the examination process, it could be more difficult for students to decide when and where to have their lunch and because of the long queues that will be in the restaurant during dinner hours or snack time, one for purchasing tickets and one for collecting food. For example, there is just a limit time like 1hour in the lunch time that students could not finish their lunch on time or they just want to have different dinner served daily in their hostels. Thus, many online foods delivering requirement fulfill the requirement of students able to order their food from the comfort of their houses, classrooms, hostels and anywhere outside the school campus without queuing. Also, Some of the students who live in hostels face the problem where they are not allowed to get out of hostels at night and no source is available in hostels to fulfill their hunger in hostels either. So the Online Food ordering systems which serve at nights come in picture to fulfill the requirements of students.

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Online Food Ordering

ONLINE FOOD ORDERING INDUSTRY E-commerce in India is expected to grow from US $2.9 billion in 2013 to a mammoth US $100 billion by 2020, making it the fastest growing e-commerce market in the world! E-commerce is also witnessing a spurt in online food & restaurant service companies, which is expected to reach $2.7 billion by 2019.  India’s online food ordering sector saw a strong growth rate in the number of daily orders, growing consistently at 15 per cent on a quarterly basis from January to September last year.  Revenue in the Online Food Delivery segment amounts to US$7,011m in 2018.  Revenue is expected to show an annual growth rate (CAGR 2018-2023) of 10.5%, resulting in a market volume of US$11,569m by 2023.  The market's largest segment is Restaurant-to-Consumer Delivery with a market volume of US$6,527m in 2018.  In global comparison, most revenue is generated in China (US$32,908m in 2018). Source: https://theaims.ac.in/resources/online-food-service-in-india-ananalysis.html DEMAND DRIVERS:  Encouraging Demographics Promising Income and Consumption Levels  Favourable Lifestyle Changes  Rising Number of Working Women

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Online Food Ordering

SUPPLY DRIVERS:  Expanding Variety of Cuisines  Upgrading of Retail Formats  Emerging of Logistics Providers  Growing of Delivery - dedicated Formats  Extension to Delivery Services in Existing Restaurants  New Trends in the Delivery Sector  Delivery-dedicated Websites

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Online Food Ordering

KEY PLAYERS IN ONLINE FOOD ORDERING INDUSTRY  ZOMATO  SWIGGY  UBER EATS  NEARBUY  FOODPANDA  DOMINO’S  PIZZA HUT  DINE-OUT

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Online Food Ordering

OBJECTIVE OF THE STUDY Primary Objective of this study: To determine student’s preferences for online food ordering in Chandigarh. Secondary objective of this study were to identify:  To know about the student preference level associated with different online food ordering platforms.  To find out the students satisfaction towards the various online food ordering platforms.  Factors that influence decision-making in purchasing food online.  To find out how often they order

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Online Food Ordering

RESEARCH METHODOLOGY Research can be defined as the systematic and objective process of gathering, recording and analysing data for aid in making business decisions. The basic task of research is to generate accurate information for use in decision making. Research Process for the Study of preference of online food ordering among students.

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Online Food Ordering

SAMPLING METHODOLOGY: Sample Size – 100 respondents form different department of Panjab University.

Sample UnitStudents of Graduation and the Post Graduation of different Colleges or departments of Panjab University in Chandigarh Sampling Technique – Study is descriptive and quantitative in nature so Random Sampling technique is used for this study from the population of more than 2000 students of both universities from which all the respondents have equal chance to get included.

RESEARCH DESIGN:  Will visit the students across University & will gather the information required as per the questionnaire.  Some Questionnaire will be filled by students online as the link of questionnaire will be send to them.  Sampling method in this research design will be random sampling from probability sampling where each and every member has an equal chance and is descriptive research which will be quantitative in nature.

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Online Food Ordering

DATA COLLECTION: • Primary data will be collected by me in the form of Questionnaire & Observation, which are the two basic methods of collecting primary data, which suffices all research objectives. • Secondary data sources like catalogue of the company, product range book of the company & various internet sites.

Review of Literature: The research on student’s perception on online food ordering and other topics in the Indian context are limited as the online food ordering services has entered into Indian market only a few years back. The literature reviewed relates to the studies conducted outside India where online food ordering is a big hit. As taken the case that online food ordering has just entered the Indian market and it is still on its way to being a big hit. The study found that the emergence of online food ordering services is high. Study explains that perceptions toward online shopping and intention to shop online are not only affected by its nature of ease in usefulness and enjoyment, but also by exogenous elements like consumer traits, situational factors, product characteristics, previous online shopping experiences, and trust in online shopping.

Key Success Factors of Online Food Ordering Services: An Empirical Study Reveals that online food ordering companies have to give attention on the quality of information, Mobile Application and website design, security and privacy for payment systems towards their customers in order to

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Online Food Ordering

provide them full satisfaction experience. Customer buying decision process using an online platform for online food ordering in Thailand - In this study it shows that the online platform has drastically changed the food delivery service industry. It has also helped to improve the customer experience with traditional food delivery service companies, such as major fast food restaurant chains, thereby impacting the consumer perception toward the food delivery service industry as a whole.

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Online Food Ordering

Results and Conclusions: 1)

According to the survey, out of 97 respondents, the majority of people with 28.9% respondents prefer to order weekly, while the 26.8% of respondents chose thrice a week and Daily with 15.5% and finally, 27.8% of them chose rarely.

2)

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Online Food Ordering

According to the survey, out of 97 respondents - 41.2% of the respondents prefer Zomato(highest preference), 33% prefer Uber Eats, followed by Swiggy with share of 19.6% and then Foodpanda with very less preference by respondents of 15.9% and finally the 4.7% of them responded that they prefer other company.

3)

Out of 97 respondents, the most was given to More restaurant options available: 25.8%, 20.6% was given to speed of delivery, 18.6% was given to on-time delivery, 17.5% was given to Price constraints followed by convenience of placing their order with the least preference.

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Online Food Ordering

4)

According to the survey conducted, perfect on-time delivery is provided by Zomato and least is provided by swiggy followed by food panda.

5)

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Online Food Ordering

Talking about Offers and Promotions, 44.3% of respondents said that Uber eats has the best offers and promotions, Closely followed by the Zomato with 37.1% of respondents, 16.5% of them chose Swiggy while 12.7% of them chose Foodpanda and remaining 3.2% chose other.

6)

In this study, while choosing the best quality services provided by the company, out of 97 respondents – 43.3% of respondents chose Zomato, 34% chose Uber Eats, 18.6% chose Swiggy followed by 4.3% respondents who chose Foodpanda .

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Online Food Ordering

7)

In this study, 60.4% of the respondents said they order food online at their dinner meal and percentage decreases to 21.9% of respondent who preferred to order food online for their snacks followed by lunch for 12.5% of respondents and rest of the respondents preferred for breakfast with the least share.

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Online Food Ordering

CONCLUSION: The consumer’s perception on online food ordering varies from individual to individual and the perception is limited to a certain extent with the availability of the proper connectivity and the exposure to the online food services. The perception of the consumer varies according to various similarities and difference based on their personal opinions. The study highlights the fact that youngsters are mostly poised to use online food ordering services. The study also reveals that the price of the products, discounts and special offers have the most influencing factor on online food ordering. The second most influencing factor is the convenience; the next most influencing factor is on-time delivery. The study highlights that respondents often prefer to order on weekly basis, the type of meals which were mainly preferred to order was the Dinner followed by Snacks. The study also revealed that a major proportion of respondents uses either Zomato or Uber Eats to order their food online. It was also observed that a less percentage of respondents were inclined towards the use of Swiggy and Food Panda. In a nutshell, through this study, it is found that majority of students of Chandigarh region are well aware of the online food ordering and mostly all of them have used online food ordering services which indicates the growing popularity of the online food ordering within the youngsters. Transformation in the trends of food ordering is occurring because of the changing lifestyle of the consumers in India and expansion in online activity in sector including online food ordering.

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Online Food Ordering

REFERENCES: [1] Anh Kim Dang, Bach Xuan Tran, Cuong Tat Nguyen, Huong Thi Le, Hoa Thi Do, Hinh Duc Nguyen, Long Hoang Nguyen, Tu Huu Nguyen, Hue Thi Mai, Tho Dinh Tran, Chau Ngo, Thuc Thi Minh Vu, Carl A. Latkin, Melvyn W.B. Zhang and Roger C.M. Ho,“Consumer Preference and Attitude Regarding Online Food Products in Hanoi, Vietnam", Published by International Journal of Environmental Research and Public Health. [2] H.S. Sethu, Bhavya Saini,“Customer Perception and Satisfaction on Ordering Food via Internet, a Case on Foodzoned.Com, in Manipal”, Published by, [Online] Available: http://www.globalbizresearch.org [3] Zulkarnain Kedah, Yusof Ismail, A.K.M. Ahasanul Haque, Selim Ahmed,“Key Success Factors of Online Food Ordering Services”, [Online] Available: http://www.researchgate.net/ publication/291074636_Key_Success_Factors_of_Online_ Food_Ordering_Services_An_Empirical_Study [4] Harbor Communications (2016) Are food delivery trends hurting drive-through saleswww.cstoredecisions. com/2016/07/21/food-delivery-trends-hurting-drivesales/ [5] Leung A (2016) This year-old Malaysian food delivery startup is doing thousands of deliveries monthly. Tech in Asia. [6] Kimes SE (2011) Customer perceptions of electronic food ordering. Cornell Hospitality Report 11: 6-15.http:// scholarship.sha.cornell.edu/cgi/viewcontent.cgi?article=10 69&context=chrpubs [7]https://cirt.gcu.edu/research/developmentresources/research_ready/quantresearc h/sample_meth

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