Journal of Xi'an University of Architecture & Technology Issn No : 1006-7930

Consumer Behaviors in Ordering Foodstuff Online Using App Services: A Fundamental Study to Ascertain Procurement Psychology of Academic Diaspora in the Indian State of Punjab.

Dr. Suriya Hamid, Faculty - Psychology, GSD Women’s Campus, Prince Sultan University, Riyadh, KSA [email protected]

Dr. Kiran Sood, Faculty - School of Business, Chitkara University, Punjab, . [email protected]

Dr. Navneet Seth Faculty - Baba Hira Singh Bhattal Institute of Engineering & Technology, Punjab, India [email protected]

Abstract:

Advent of Information Technology has paved ways to procure quality food with much ease. Due to paucity of time professionals across all spectrum of occupation prefer to fetch food online as it saves lot of resources especially time. Intrinsically ordering food through online food apps has become an innate human tendency. Those vendors offering the food products and services through online food apps have shown remarkable growth in the most recent years. It is for this rationale that 65 percent of Indian population comes under the bracket of 18-35 years considered as tech savvy youth prefers to utilize technology for ease of life. The purpose of this pioneer study is to understand procurement psychologies of academic diaspora in Punjab India and to ascertain the consumer behaviors while ordering foodstuff online using app services. The attempt is also made to gauge and bring forth the strategies that would facilitate the increase in revenues for food apps vendors and also to improve customer satisfaction through implementation of creative ideas.

Keyword: Consumer Behavior, Procurement Psychology, Online Food Apps, Customer Satisfaction, lifestyle, Strategy.

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Introduction:

All the human entities depend on food, though the pattern of acquiring it varies from entity to entity. There by depicting the adaptive nature of human race from the times immemorial. Human as such have traversed a lot in all essence in tandem to be classified as the most advanced species in the history of this planet. From nomadic life to food gathered and from food gatherer to food producer and eventually transforming itself in the most civilized form of existence. From barter system to money transaction and from money transaction to online transaction, it has touched every facet of life in the pursuit of ease and comfort. In the recent past, industrial revolution, lead to globalization and eventually thrived liberalization that tossed numerous challenges to the workforce culture and also challenged the quantum of perception as to how people understood professionalism and work cultural. Stiff competitions in the business and rat race in profit maximization led to a new era where humans couldn’t find spare time for their own selves. This revolutionized the fundamentals of the livelihood including the food habits thereby changed the definition of prosperity and wellbeing in itself. Geometric urbanization led to the dramatic change in the working conditions of people and forced them to adapt new food procurement behaviors. And this adaptability formed the basis of what is technically referred to as readymade food or junk food era. Mini stalls and shops were eventually replaced or turned into luxurious hotels, lucrative restaurants etc. According to United Nation report, world urbanization prospect estimated around 4.1 billion people i.e. 55% of the world’s total population were living in urban areas till 2017 and this rate is further growing at a much rapid pace. In this milieu, India has the presence of urban population to the tune of around 34% as per World Bank’s estimation report in 2017 (Jacob and Sareena, 2019). Readily available market pushed the manufacturing facilities for mass production particularly ICFI - Instantly Consumable Food Items. It also included canned food and packaging of processed food streamlined for quick consumptions.

Continuous augment in the disposable income of the general masses and the rise in standards of living changed the perception about the food procurance. Phenomenal shift in people perception was noticed with respect to the drift from the window shopping to having access to the places of recreation along with places offering food facilities. Population in general perceived this as a matter of status symbol and social recognition. The people from all walks of

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life preferred quick food outlets and also indulged in outings at those locations. In recent past, food industry has witnessed a new concept i.e. the delivery of food at the doorstep of the consumer. This concept is referred to as online system. It is the process by virtue of which the customers order food online from their favorite food stores or restaurants using mobile app or through websites providing the feature of zero mobility to customers while having the favorite food at his doorstep. Moreover, customers always take advantage of selecting the food of their choice out of the enormous food options and virtual menu. Digital revolution is reshaping everything; one only needs a smart phone and internet connection to order the food online. Out of various parameters quality, quantity, discount, food customization, on-time food deliveries are the few reasons behind the growing popularity of ordering food through online apps. Seeking comfort is the priority of every customer. The payment method for ordering food online has also become electronic/ digital. Plastic money or internet banking is the safest methods which involves no physical movement of cash and are the easiest cum safest ways to make online payments.

Pizza Hut Inc. was the first food outlet that started the online food system in 1994 followed by World Wide Walter (presently known as Walter.com) to start the first service in 1995 in US and later expanded to other cities. After the advent of the smart phones and the rise in the internet era, various Pizza making chains started with their mobile apps to inspire the customers in ordering food online in the year around 2000 (Rathre and Chaudary 2018). After nearly a decade, various business houses like , , & also jumped into online food ordering fray, thereby making the segment highly competitive. Though the online food ordering system is growing at a good pace around the world but at the same time, it is facing lot of hindrances. e.g. security issues pertaining to online money transactions, ethics, sanitation, and hygienic conditions of the delivery person, delays in delivery due to traffic situations, information overloading syndrome, internet connectivity and slow server etc. Despite such serious concerns, the global online food ordering market estimates the revenue generation of around US$122,739 million in 2020. China contributes the maximum revenue to the tune of around US$45,709 million in 2020. According to Google and BCG report, India’s online food delivery system is expecting to generate revenue of around US$8 billion in 2020 with and Swiggy are the main contenders in the system. According to analysts, Swiggy and Zomato jointly delivered about 96 million orders from April 2017 to March 2018. The Indian online food market is estimated to touch $12.53 billion by 2023

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as reported by Data Labs Inc 42. The global growth rate seems to remain around 9% while the Indian market is expected to touch around a 15% growth rate.

The online food ordering app scenario is witnessing a dramatic increase in its usage due to number of factors i.e. around 65% of Indian population is below the age group of 35 years, migration of workforce towards cities as India’s urban population is now more than 35%, increase in number of working women, increase in per capita income, rise in standard of living and convenience attached while using these apps. The growing popularity of online food apps lies in the hand of the young population. Hence, there is a need to include various educational institutes for the research work. Earlier studies didn’t include educational institutes in their researches. Very few studies have been undertaken to make a comparative analysis of procurement psychologies of teaching fraternity and students’ community. Therefore, the comprehensive study is required to analyze the buying behavior and impact of online food apps on Academic diaspora.

Review of Literature:

Heterogeneous customer demands are the biggest challenge for the marketers. Many studies (Bansil, 1999; Chatterjee, Rae, & Ray, 2006; Kumar & Kumar, 2003; Kumar & Mathur, 1996; Radhakrishna & Ravi, 1992; Rao & Dhar, 2004) have illustrated the emerging food consumption patterns in India. It is evident that in every emerging economy, as the number of retailers entering the market has increased the consumers' shopping habits and their consumption expenditure patterns have also evolved. Research carried out by consultancy houses has proved that there is a rise in purchasing power and disposable incomes and change in consumer expenditure patterns in India, which can facilitate and connect us to understand the relationship of this rising capacity with the availability of products through organized retail, and how this influences the consumption expenditure. As per the report of FICCI (Jaisani et al, 2017) online food delivery industry has grown in India post-2010. This was possible because of the use of the internet and various technological apps which would offer flexibility, interactivity and personalization (Koyuncu, 2003). Technology has become a very useful tool for not only communication, entertainment but education as well as electronic trade (Dang and Tran, 2018). It highlighted the scope of the internet in spreading awareness of online food apps. Using these Apps the customers can easily compare the prices of the services being offered to them.

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Moreover using web based apps customers can also choose the best online food app in terms of service quality, discounts, etc. Competing online food providers offer a complete food ordering and delivering solution system. It provides a single window for ordering from a wide range of hotels and restaurants, and carries their exclusive fleet of delivery personnel to pick up and deliver food to the customers. These services are very popular with the millennial population as it reduces the time and effort that is spent on shopping.

An increase in the number of startups in the retail sector is an example of prosperous economy (Kanteti 2018). It has highlighted the need and importance of startups. In this digital life, new business thoughts are originating. An attempt has been made by the researcher to highlight the strategies adopted by these players. In the food industry, online food delivery platforms such as Swiggy, Zomato and have established themselves. They provide a complete food ordering and delivering solution system (Sarkar, The Economic Times, 2019). It provides a single window for ordering from a wide range of hotels and restaurants, and they have their exclusive fleet of delivery personnel to pick up and deliver food to the customers. The entry of food Tech startups around 2013-14 brought the paradigm shift to the operations of the Indian food industry (Kanteti 2018). Advent of smart phones bestows convenience to the consumers by placing internet connectivity at the centre of it. The mobile app, connected the consumers (i.e. demand side) with the restaurants (i.e. supply side). The food aggregator app acts like a demand- supply matching mechanism that makes a profit by providing the physical delivery of food (Jaisani et al, 2018). All they had to do is to tie-up with various restaurants & integrate them into the system & customer would be in their system, whenever they download the app. They analyzed students’ perception, behavior and satisfaction towards online food ordering and delivery applications (Sethu & Bhavya Saini 2016). The study highlighted that ease of use of application and availability of the internet all the time to visualize the food at any given point are the main reasons for accepting the apps. The online food ordering process is convenient, easy to use and efficient and is expected to become better day by day (Chavan et al, 2015). Objectives of the Study: The main purpose of this study is to ascertain and evaluate factors affecting the buying behavior of professionals in teaching fraternity and that of students’ community when it comes to online food ordering using mobile apps. To evaluate this, the psycho-orientation in the ordering of food also needs to be analyzed. The purchasing power parity of the customers should help in understanding the behavioral patterns and priorities while ordering food through online food

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apps. The customer satisfaction regarding the usage of online food apps also needs to be analyzed. Research Methodology: The study is purely a survey-based and was carried out in educational institutes. The geographical area selection was limited to the state Punjab in India. The primary data was collected through questionnaires comprising of majority closed-end questions being followed by a few open-ended questions. The sample size is 100, 50% of the respondents were working as professionals in different educational setups and 50% of the respondents are students studying in various educational institutions. The sampling technique is used to collect the data from the randomly selected respondents with the help of questionnaires. For the study, only primary data has been collected from the randomly selected respondents with the help of questionnaires’-test analysis for testing equality of means and Levene’s Test for testing of equality of Variance is used. Statistical Analysis: IBM SPSS (Statistical Package for Social Sciences) Version 20.0 was used for data analysis. The scores were recorded in the tabulated form, where two-way analysis of variance (ANOVA) was computed for analyzing the data. The differences among the structured data groups were computed using t-tests. The significance value was determined at 0.05. Ethical Consideration: The researcher also obtained written consent from the administration of the Educational Setups before administrating questionnaires. The students were ensured of the data confidentiality as well as anonymity. Analysis and Results: Results in tabulated in Table 1.1 depict various factors affecting the buying behavior of professionals and non professionals concerning online food apps. The data has been tested by performing Levene’s & T-test to know the significant difference among various factors. The results have shown the respondent’s excitement in ordering food online. The main feature provided by various online food apps is safety as the customer is now not supposed to go outside to buy food has more affected the respondents as it is evident from the value of p which is below 0.05 that the data is highly significant. But it is pertinent to mention here that all other factors are highly insignificant as the p values are very less or very high to 0.05. It may be because the number of total respondents is 100 only, due to which the results may have been assorted.

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A comparative analysis of factors effecting buying behavior of Students and Employees

Std. Variable Sample N Mean Deviation f P T P Discounts Student 50 4.18 .941 .204 .653 -.774 .441 Employee 50 4.32 .868 -.774 .441 On time Student 50 4.26 .751 .001 .980 .255 .799 delivery Employee 50 4.22 .815 .255 .799 Time saving Student 50 4.04 .947 .012 .914 -1.800 .075 Employee 50 4.36 .827 -1.800 .075 Good packing Student 50 3.56 .787 .208 .649 -1.541 .126 Employee 50 3.82 .896 -1.541 .126 Traffic hurdles Student 50 3.66 1.136 6.841 .010 -2.355* .021 Employee 50 4.15 .884 -2.373 .020 Hygienic Student 50 3.72 .948 3.046 .084 .790 .431 Employee 50 3.56 1.072 .790 .431 Order from Student 50 4.29 .683 .081 .777 .560 .577 favourite food Employee 50 4.21 .690 .560 .577 store Delivery at Student 50 4.51 .649 2.866 .094 -1.365 .175 home Employee 50 4.68 .587 -1.364 .176 Convenient Student 50 4.32 .663 3.424 .067 -2.568* .012 Employee 50 4.63 .528 -2.556 .012 Excitants to Student 50 3.73 .580 26.393 .000** 2.228 .028 order food Employee 50 3.30 1.182 2.302* .024 online Weather Student 50 3.54 1.073 .015 .904 -.557 .579 conditions Employee 50 3.66 1.081 -.557 .579 Online app Student 50 3.89 .708 4.950 .029* .793 .430 features Employee 50 3.73 .995 .834 .406 Safety Student 50 3.74 .819 4.931 .029 .942 .349 Employee 50 3.56 1.033 .958 .341 Laziness Student 50 3.72 1.089 .906 .343 .345 .731 Employee 50 3.64 1.225 .345 .731 P* <0.05, P**<0.01

Table 1: Factors Effecting Buying Behavior

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The online ordering food concept is becoming one of the popular among the people as around 74% of the respondents said that ordering food through online food apps is preferred by them followed by just 16% who orders through the restaurant’s food app and just 4% through call. Ordering food through online food apps is now a day becoming popular among the various segments of society, especially the non-professionals and professionals. It is evident that around 42% of the respondents (both non-professionals and professionals) have ordered food through online food apps on weekly basis and around 32% of them have ordered occasionally. It indicates the craze among the youngsters and professionals. There are many factors behind this, but still, the majority of the respondents have restrained from ordering food on a daily basis through online food apps. Around 4%, 6% & 16% of respondents have ordered food through online apps on a daily, bi-monthly and monthly basis respectively.

Common methods for ordering food online Frequency Percent Valid Percent Cumulative Percent

Food store’s Websites 14 14.0 14.0 14.0 Websites 3 3.0 3.0 17.0 Call 8 8.0 8.0 25.0 Online food apps 75 75.0 75.0 100.0 Total 100 100.0 100.0

Table 2: Common Method for Ordering Food Online. Around 75% of the total respondents have preferred to order food through online food apps followed by only 14 % ordered through restaurants mobile apps. Only 8% have ordered food through calling while only 3% chose to order through restaurants website.

Class Intervals ( Cumulative Money spent in Rs) Frequency Percent Valid Percent Percent < Rs. 500 47 47.0 47.0 47.0 Rs. 500-1000 39 39.0 39.0 86.0

Rs 1000-1500 8 8.0 8.0 94.0

>1500 6 6.0 6.0 100.0 100 100.0 100.0

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Table 3: Money Spent in (INR) on Online Food Ordering by Employees

Table 3 shows that around 47% of the professional respondents spend below Rs. 500 in ordering of food through the online food apps while around 39% professional respondents have spent between Rs. 500-1000 on the same. It is observed that customers still prefers to spend more money on food by visiting the local restaurants rather to order through online food apps as it is cleared from the fact that only 8% & 6% professional respondents have spend more than Rs. 1000 on online food apps.

Class Intervals ( Money spent in Rs) Frequency Percent Valid Percent Cumulative Percent Valid < Rs. 500 26 52.0 52.0 52.0 Rs. 500-1000 19 38.0 38.0 90.0

Rs 1000-1500 4 8.0 8.0 98.0

>1500 1 2.0 2.0 100.0 Total 50 100.0 100.0

Table 4: Money spent in (INR) on online food ordering by students Table 4 analyzes that the non-professionals have largely spend less than Rs. 500 on ordering food through online food apps as around 52% respondents of student’s respondents have spent below Rs. 500/-. Around 38% have spend between 500-1000 on online food apps while only 4% &1% have spend more than Rs. 1000 respectively. It has cleared the fact that non- professionals have less purchasing intensity if compared with professionals. The results have also shown that overall purchasing intensity of both professionals and non-professionals is more on ordering the food ranging up to Rs. 1000 as around 42% and 40% have ordered food below Rs. 500/- and between 500-1000 respectively.

Sample N Mean Std. F p T P Deviation Are you Student 50 1.9000 .64681 .000 1.000 0.000 1.000 satisfied with Employee 50 1.9000 .64681 0.000 1.000 the experience of using online food ordering apps?

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Are you Student 50 1.8800 .65900 .568 .453 -.617 .539 satisfied with Employee 50 1.9600 .63760 -.617 .539 the service of online food ordering apps?

Table 5: Showing Results of Using Online Food Apps The respondents were also asked to know about their experience in using the various food apps and the service being provided by them. It is again evident from the results shown in table 5 as the p value is 0.000 which proves that it is highly significant. But the results of the factor regarding providing of service by various food apps is totally opposite from the experience of using it as the results shows that it is highly insignificant as the p value is -0.617. Limitations of the Study: This study too carries the limitation of small sample size. The primary data was collected through only 100 respondents representing non-professionals and professionals of various educational institutions surrounding the state capital of Punjab. If sample size could have been enlarged, then the results may have been somewhat different as there is income difference in both sectors and also there is a lot of difference in the standard of living of employees of both e.g. government and private educational institutes. The reputed private educational institutes often provide more salary and facilities to their employees as compared with public institute counterparts. Even other sectors like banking, insurance earn more money than educational institutes and their timings are also more than of educational sector. So, if other sectors were included in this study, the results may have varied due to change in income, standard of living and frequency of ordering food. Though there remains a possibility of increasing the sample size representing some other cities to reach better conclusions. Future Prospectus: The future of online food ordering system seems to be very bright as there is a continuous increase in the urbanization. Also, India has the largest population in the age group of 18-36 years which is also regarded as the vibrant and dynamic population has the potential of earning and spending more. This will influence the habit of using of online food ordering apps. Even, the events like IPL, FPL and KPL may put a positive impact upon the using of online food apps as during these events, lakhs of Indians especially youngsters remain stitched to their television continue for hours. This may lead to order the food from outside and in this case, the probability

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of using online food apps remains high. Moreover, with the introduction of various new services and techniques, the online food apps may take their business to new heights. Conclusion: The online food shopping has no doubt got massive popularity among the Indians, especially in urban areas. It is more popular among youngsters in the age group of 18-35 years. But the working class has more tendencies to order and spend more through online food shopping apps. Many factors like changes in lifestyle, an increase in income due to urbanization, busyness due to private jobs, more women coming to jobs, availability of high-speed internet, smart phones, etc play an important role. The future prospectus of online food shopping apps seems to be very excellent in the long run. In this growing complexity of the digital era, there is only one suggestion for the companies need to work upon to improve their customer services and innovative ideas. A satisfied customer can do wonder for the companies. But there is one problem arising due to online food shopping apps is an increase in the traffic as a number of two- wheelers is required to deliver the food at a time. There are also few cases, which exposed the hygienic concept of the ordered food. This problem has once raised serious concerns about the quality of the food delivered. But this issue is serious needs to be resolved. The problems of complicated online menu and slow server issues needs to be solved immediately. One innovative idea to be applied sooner is the use of mini-drones to meet the demands of the customers. By using the mini drones, the traffic problem at roads can be solved up too much extent. Secondly, the quality of the food ordered will also be maintained. The technology may put much burden upon the organization but it is the need of the hour. Another concept which can be applied for maintaining the quality of the food is using of software-enabled coding systems on the delivered packing food. The online food ordering companies may use the code enabled/ bar-coded software locks, which must be only opened by scanning the code by the customer only after its delivery, thereby maintaining the quality of food. These few concepts may help online food ordering companies to grow more in the near future. References: Bajaj, K., & Mehendale, S. (2016). Food-delivery start-ups: In search of the core. Prabandhan: Indian Journal of Management, 9 (10), 42-53. doi:10.17010/pijom/2016/v9i10/103073

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