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OUR HERITAGE
ISSN: 0474-9030,Vol-68, Special Issue-9
International Conference On E-Business, E-Management,
E-Education and E-Governance (ICE4-2020)
Organised by
Kamla Nehru Mahavidyalaya, Nagpur
7th & 8th February-2020
P a g e | 147 Copyright ⓒ 2019Authors
“Study on Customer Behavior towards Online Food Ordering with
Reference to Nagpur City (East Region)”
Dr. Padmakar I. Shahare
BE, MMS, PGDIBO, MCom, Ph.D
Assistant Professor: MBA GWCET, Nagpur (INDIA) +91-97659 00862
Dr. Mukul A. Burghate
BE, FIE, MBA, PGDIBO, M.Com, SET (Commerce), Ph.D
Associate Professor: MBA PDIMTR, Nagpur (INDIA) +91-9823141467
Abstract:
The recent improvement of the internet has increased the e-commerce industries
in everywhere in India. Online food ordering is the method of ordering food through the
restaurant's own website or mobile app. E-commerce expansion has made online food
ordering services faultless for people who want to get food delivered at their doorway.
In this study, researcher focus is to evaluate the behavior of customer towards online
food ordering services in Nagpur city specifically east region. To understand about the
factors have played a foremost role to attract customers for online ordering in the rising
city like Nagpur, researcher decided to study on the customers behavior on online food
ordering.
In this research paper, there are two objectives set for further study. Firstly to
identify the factors which influence the customers to order food online and secondly to
recognize the customer‟s preferences on online food ordering services provider in
Nagpur especially east region.
To attain the said objectives survey will be conducted to collect the information,
which helped to understand the behavior and perception of respondents for online food
ordering in Nagpur (East).
Keywords:
Online food ordering, customer perception, E-commerce, online food, Nagpur
Introduction
The recent development of the Internet has boosted the extension of online food
services by enabling people to search, compare prices and conveniently access these
OUR HERITAGE
ISSN: 0474-9030,Vol-68, Special Issue-9
International Conference On E-Business, E-Management,
E-Education and E-Governance (ICE4-2020)
Organised by
Kamla Nehru Mahavidyalaya, Nagpur
7th & 8th February-2020
P a g e | 148 Copyright ⓒ 2019Authors
services. Food Ordering on the internet is different from other sources of ordering food,
as the internet promotes a one to one communication between the seller and the buyer
with the clock customer service. Technology has played very important role in
reforming the food delivery service from phone-based to online ordering to satiate
consumers‟ ever-changing demands, making its way easy. Today, the business of Food
delivery services is one of the highest growing segments of e-commerce industry. The
major difference between traditional and online Food Ordering is the level of interaction
between the consumer and the vendor.
In today‟s scenario service sector contributes 64.80% in GDP. Zomato is one of
the most accepted applications that provide services to the user to discover restaurants.
The rise of digital technology is reshaping the industries. With the improved use of
technology, the numbers of people engaging into the digital sector are speedily
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. This scenario doesn‟t exist only in one country but all across the globe.
Being up to date with the customers‟ expectations helps firm retain customers to a
greater extent.
Online food ordering could be called the answer of the internet to the wish for
delivery food. It is a growing development especially in city areas and on college
campuses that allows people to order from restaurants featuring interactive menus, by
use of their internet connection. In many cases handle complicated web pages can be
used to make orders, though a lot of people rely on a desktop or laptop computer for
this, but these days mobile is user friendly for users.
Ordering form general stores to stock the kitchen, instead of placing one time
orders with a restaurant. There are several methods in which online food ordering from
a restaurant may happen. A restaurant can have its website with simple features for
placing an order for pick or choose and delivery. Some add a third option of being
capable to make reservation. Instead of going to restaurant or for a delivery, people just
access the internet to the restaurant site and make their order.
Advantages for Electronic Ordering
There are advantages for both the customer and for the restaurants who involve
in online transaction. First, a customer can order at will when they have time to. Also,
the customer is able to customize their order the way they like it without errors in
communication between the customer and the person taking the order. In addition to
OUR HERITAGE
ISSN: 0474-9030,Vol-68, Special Issue-9
International Conference On E-Business, E-Management,
E-Education and E-Governance (ICE4-2020)
Organised by
Kamla Nehru Mahavidyalaya, Nagpur
7th & 8th February-2020
P a g e | 149 Copyright ⓒ 2019Authors
customer advantages, the restaurant is able to take more orders with less staff. The
restaurant does not need a waiter or hostess to be on the phone to take the order. The
order can go straight to the kitchen
Indian Food App Scenario
With the entire boom in digital industry across the globe, it‟s had its impact on
the Indian economy too. The online food ordering firms have sprouted up in bulk. 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 space for a lot of new players, who are aiming 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.
Various apps in the Indian market are:
Food Panda
Zomato
Swiggy
Box8
Fasoos
Fast food delivery apps
Literature Review:
Bhavna Singh (2015) from her research its proved that Foodpanda has been
present in the Indian market since May 2012. Foodpanda first chief move was
acquisition of Tasty Khana, which was launched in the city of Pune in 2007. Together
with Tasty Khana and JUST EAT, it is now present in over 200 cities and partners with
over 12,000 restaurants. She also proved about JUST EAT was launched in Denmark in
2001 and was traded publicly on the London Stock Exchange. Their Indian business
was launched as Hungry Bangalore in 2006. It was renamed in 2011 when JUST EAT
gained a majority share in the business. Today, the company partners with over 2,000
restaurants.
Dr.N.Sumathi, S. Josphin (2017), in their study allow online food ordering
system is one of the largest services for fast food restaurants. This is made possible to
use of easy electronic payments system, and also useful for making easy payments for
credit card consumer. In this study saying about to reduce the long queues of consumer
at the counter ordering for food and also reduce the workload of employees.
OUR HERITAGE
ISSN: 0474-9030,Vol-68, Special Issue-9
International Conference On E-Business, E-Management,
E-Education and E-Governance (ICE4-2020)
Organised by
Kamla Nehru Mahavidyalaya, Nagpur
7th & 8th February-2020
P a g e | 150 Copyright ⓒ 2019Authors
Varsha Chavan, et al, (2015), the use of smart device based interface for
customers to view order and navigate has helped the restaurants in managing orders
from customers immediately. The potential of wireless communication and smart phone
technology in fulfilling and improving business scenario and service industry. Their
analysis states that this system is suitable, effective and easy to use, which is expected
to improve the overall restaurant business in coming times.
Research Methodology
Objectives of the Study:
To understand how online food delivery services are perceived by the
consumers.
To evaluate the various factors that influences the consumers to choose online
food delivery services.
To analyze the relationship between food delivery App and the facilities
provided by them.
Sample size:
The total sample size was 110 respondents, out of which a major portion was people of
the age group 20-30 years.
Sample Area: Nagpur (East region)
Hypothesis of the study H0: There is no App popular for food delivery among samples.
H1: There is a most popular app for food delivery among samples.
Data Collection & Analysis:
Respondents Data Summary:
Sample Size 110
Responses received 106
Male 76
Female 30
Age: Between 10-20 16
Age: Between 20-30 53
Age: Between 30-40 31
Age: Between 40-50 6
Parameters Zomato Uber Eats Swiggy Foodpanda Others
OUR HERITAGE
ISSN: 0474-9030,Vol-68, Special Issue-9
International Conference On E-Business, E-Management,
E-Education and E-Governance (ICE4-2020)
Organised by
Kamla Nehru Mahavidyalaya, Nagpur
7th & 8th February-2020
P a g e | 151 Copyright ⓒ 2019Authors
1. From which Company do People
Prefer to Order Food Online? 44 18 64 12 8
While assessing this question it has been observed that out of 106 respondents, 44%
respondents prefer to order food online. 30% are Zomato, 12% are Uber eats, 8% are
Foodpanda and 5% are others. This shows that most of the people from east Nagpur
prefer to order food online from the company Swiggy and Zomato.
Parameters
Good
packaging
On time
delivery
Best offers
& discount
Easy
to order Convenience
2. Why you chose the above Company Services?
11 21 36 16 22
While assessing this question it has been observed that out of 106 respondents, 34%
respondents choose the online delivery company as they offer best offers & discount,
21% are because of convenience, 20% are as on-time delivery system, 15% are as it is
OUR HERITAGE
ISSN: 0474-9030,Vol-68, Special Issue-9
International Conference On E-Business, E-Management,
E-Education and E-Governance (ICE4-2020)
Organised by
Kamla Nehru Mahavidyalaya, Nagpur
7th & 8th February-2020
P a g e | 152 Copyright ⓒ 2019Authors
easy to order and 10% because of good packaging. This shows that there is mixed
reaction from the respondents why they select online food order option.
Parameters Zomato Uber Eats Swiggy Foodpanda Others
3. Which Company Provides the Best
Quality Services? 34 14 46 8 4
While assessing this question it has been observed that out of 106 respondents, 43%
respondents agreed that Swiggy provides best quality service, 32% respondents agreed
that Zomato provides best quality services, 13% respondents agreed that UbesrEats
provides best quality services, 8% respondents agreed that Foodpanda provides best
quality services and 4% are others. This shows that in Nagpur East region for online
food ordering, Swiggy provides best quality services.
Hypothesis testing:
From the respondents data it is found that most of the respondents used App of Swiggy
for online food delivering, out of 106 respondents, 34% respondents using Swiggy App,
OUR HERITAGE
ISSN: 0474-9030,Vol-68, Special Issue-9
International Conference On E-Business, E-Management,
E-Education and E-Governance (ICE4-2020)
Organised by
Kamla Nehru Mahavidyalaya, Nagpur
7th & 8th February-2020
P a g e | 153 Copyright ⓒ 2019Authors
23% using Zomato App, 20% respondents using UberEats App, 8% respondents using
FoodPanda App and 16% respondents used Just dial App for online food ordering.
For this hypothesis testing researcher used correlation test using MS-Excel for two
variables i.e. Quality services & most using app and following result obtained.
Quality Services Most Used App
Quality Services 1 Most Used App 0.904604358 1
From the correlation test it is found that the value of „r‟ i.e. correlation
coefficient is found 0.9046. This shows that there is positive relation between two
variables. This means Swiggy provides quality services and it is so popular that most of
the respondents used Swiggy app.
Conclusion:
The perception of customer on online food ordering varies from individual to
individual. The perception of the customer varies according to various similarities and
difference based on their personal opinions. From the respondents data it shows that
mostly the youngsters are attached to the online food ordering, this means elder people
from east Nagpur rarely used online services as compared to the young crowed. The
paper also shows that the best offers and discount have the most influencing factor on
online food ordering system in East Nagpur. The second most influencing factor is the
convenience and on-time delivery. The study also shows that a major proportion of
respondents uses either Swiggy or Zomato to order their food online. Also from the
third question it shows that Swiggy and Zomato provides best quality services.
It is found that majority of respondents are students of East Nagpur region are
well aware of the online food ordering and most of them have used online food ordering
services which indicates the increasing popularity of the online food ordering within the
youngsters. From the hypothesis testing it is clear that there is most popular app among
sample is „Swiggy‟ and there is strong relationship between quality services and app
popularity.
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Thi Minh Vu, Carl A. Latkin, Melvyn W.B. Zhang and Roger C.M. Ho,“Consumer Preference
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Journal of Environmental Research and Public Health
OUR HERITAGE
ISSN: 0474-9030,Vol-68, Special Issue-9
International Conference On E-Business, E-Management,
E-Education and E-Governance (ICE4-2020)
Organised by
Kamla Nehru Mahavidyalaya, Nagpur
7th & 8th February-2020
P a g e | 154 Copyright ⓒ 2019Authors
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