Understanding the Growth of Takeaway Food Apps in the Uk: a Supplier and Consumer Perspective
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UNDERSTANDING THE GROWTH OF TAKEAWAY FOOD APPS IN THE UK: A SUPPLIER AND CONSUMER PERSPECTIVE Submitted by Nurul Syazana Hishamuddin to the University of Exeter as a thesis for the degree of Doctor of Philosophy in Management Studies in February 2019 This thesis is available for library use on the understanding that it is copyright material and that no quotation from the thesis may be published without proper acknowledgement. I certify that all material in this thesis which is not my own work has been identified and that no material has previously been submitted and approved for the award of a degree by this or any other University. Signature: ............................................... ACKNOWLEDGEMENTS First and foremost, thank you to Allah, the most gracious and mighty of them all, who given me the ability and opportunities to continue my doctoral studies. Secondly to my beloved husband, thank you for continuous support, for your patience and for understanding the journey I am being through. For my daughters, because of you, I am able to be strong and completed this study. But the most important of all, my two supportive supervisors. My sincere gratitude to Prof. Gareth Shaw and Dr Joanne Cornell, for their patience, insightful comments and encouragement. Both of you believed and always trust in all the decision I made throughout my doctoral studies. However, this all will not possible without the support from my sponsor, the Malaysian government and Universiti Utara Malaysia for allowed my PhD journey to take place. 2 ABSTRACT This research investigates the development, use and consumer acceptance of online takeaway food ordering (OTFO) apps in the UK. Although the online takeaway food ordering sector is well-established, it continues to improve services by bringing new technology and innovation in the sector. Among the latest technologies introduced into the sector is the development of takeaway apps. Given the recent developments and advancements in technology, there is limited evidence on how consumers view and use takeaway apps. In addition, the development and operation of the sector has so far received little attention in the academic literature. To develop a more in-depth understanding of this new technology and its adoption, the study employed a mixed methods approach. The first approach adopted a case study perspective to investigate the growth of technology within one organisation. The second approach focused on consumer acceptance of the technology through conducting in-depth semi-structured interviews (n = 12) and a questionnaire survey (n = 150). The findings from this study suggest that organisations that supply takeaway apps tend to adopt innovation to improve business growth and ensure customer satisfaction. The best way for the organisation to encourage consumers to adopt the new technology was evidenced through the marketing mix such as through television advertisements. Although organisations have been active in promoting the apps, there are still insufficient information of consumer perception of how the technology. Through investigating the consumer perspective, it was revealed that the consumer perceived the use of takeaway apps similar to purchasing takeaway food. To understand consumer acceptance of takeaway apps, the 3 study used the Technology Acceptance Model (TAM) by studying perceived usefulness, perceived ease of use, perceived trust, perceived risk security and perceived social influence on the intention to use and actual use of the apps. This study contributes to the emerging body of knowledge on the online takeaway food ordering sector. In addition, it has an applied contribution in contributing to the development of new theory in the technology influence on university student takeaway food purchase and the acceptance of takeaway food apps. Keywords: Technology acceptance model, online takeaway food ordering, takeaway apps, case study, mixed method. 4 TABLE OF CONTENTS Acknowledgements ................................................................................................. 2 Abstract .................................................................................................................... 3 List of Tables ........................................................................................................... 9 List of Figure .......................................................................................................... 11 List of Appendices ................................................................................................ 13 List of Abbreviations ............................................................................................. 14 INTRODUCTION ................................................................................ 15 LITERATURE REVIEW ..................................................................... 27 Innovation adoption process............................................................. 33 Organisation innovation adoption ..................................................... 38 Organisation’s management innovation ........................................... 41 The smartphone and m-commerce .................................................. 48 Mobile payment ................................................................................ 52 Mobile technology adoption .............................................................. 58 Perceived usefulness ....................................................................... 67 Perceived ease of use ...................................................................... 68 Perceived trust ................................................................................. 70 Perceived security and privacy risk .................................................. 71 Social influence ................................................................................ 72 Behavioural intention on actual usage .............................................. 73 5 STUDENT’S LIFESTYLES AND EATING PATTERNS ..................... 77 The individual ................................................................................... 89 The social environment .................................................................... 90 The physical environment ................................................................ 91 The macro environment ................................................................... 92 The university characteristics ........................................................... 93 METHODOLOGY ............................................................................... 97 Document reviews .......................................................................... 103 Semi-structured interview ............................................................... 106 Sampling for qualitative study......................................................... 109 Questionnaire survey ..................................................................... 110 In-depth interviews ......................................................................... 116 Sampling and phases of data collection ......................................... 117 Pilot questionnaire .......................................................................... 119 Qualitative analysis ........................................................................ 122 Quantitative analysis ...................................................................... 126 THE TAKEAWAY FOOD ORDERING SECTOR ............................. 130 Types of online takeaway food ordering sites ................................ 156 6 Current issues on online takeaway food ordering sector ................ 160 THE GROWTH OF ONLINE FOOD ORDERING COMPANIES: A CASE STUDY OF JUST EAT ............................................................................... 163 Business model .............................................................................. 183 Growth strategies ........................................................................... 186 Marketing strategies ....................................................................... 193 Just Eat mobile app ........................................................................ 200 Consumer reaction ......................................................................... 202 Consumer acceptance ................................................................... 204 Consumer ....................................................................................... 209 Participating restaurant relationship ............................................... 210 Social media ................................................................................... 212 IN-DEPTH INTERVIEWS: STUDENTS LIFESTYLE AND EATING HABITS ................................................................................................................. 218 Students internet usage ................................................................. 220 Students device ownership ............................................................ 222 Main meals ..................................................................................... 228 Eating out ....................................................................................... 229 Takeaway foods ............................................................................. 232 Online takeaway food purchasing .................................................. 235 7 Taste versus value ........................................................................