EFFECTIVENESS OF ONLINE FOOD DELIVERY APPLICATION TOWARDS

CUSTOMER SATISFACTION IN STA. CRUZ, LAGUNA

A Thesis
Presented to the faculty of the
College of Hospitality Management and Tourism
Laguna State Polytechnic University
Sta. Cruz, Laguna

In Partial Fulfillment
Of the Requirement for the degree
Bachelor of Science in Hospitality Management

BARUNDIA, KLEIN ASHLEY S.

DE MESA, JONARD B.

FEBRUARY 2021
 CHAPTER 1

INTRODUCTION

Customer Satisfaction

Technological advancements in the world lead to more and more technological

discoveries and developments. One of these developments are the internet and

multimedia technology. Recent internet and multimedia technology developments are

popular enough to change the lives of every individual around the world. As stated by

Kwok and Yang (2017), the world is being introduced to technology even in the last two

(2) decades. One of the most commonly used technologies are mobile devices. According

to research reported by the Global Association of Mobile Operators, global mobile phone

users reached 5.1 billion in 2020. Nearly 1.2 billion people are counted in China by 2020.

Hence, today, one of the most commonly used mobile phone uses is online shopping.

The increased use of the internet around the world has resulted in a new type of

consumer behavior, in which consumers' focus has shifted to online shopping. As stated

by Khouloud (2020), the growing trust in the technology and online payment sectors is

causing a shift in consumer behavior away from traditional methods. Several traditional

consumer-oriented enterprises and start-up projects have been simply changing away

from shop-based marketing strategies and toward those that are virtually borderless and

customer-centric. As reported by John and Wichayachakorn (2019), the most important

factor influencing online shopping is convenience. Moreover, the convenience provided by

the internet has led many people to use it more frequently as internet usage has increased.

Companies should use online advertising as a vital tool to disseminate information,

raise brand awareness, and increase sales and sway customer perception and attitudes as

stated by Duffett (2017). With this strategy, companies are looking for a way to determine if
their users are satisfied or not while using their applications and platforms, this is where

customer satisfaction will take place.

Customer satisfaction refers to how satisfied clients are with the products and

services provided by a business. Customer satisfaction is an important concept in every

industry. It is because the companies that can satisfy the customers’ needs, wants, and

requests are more likely to be preferred. With that reason, people tend to go into these kinds

of establishments and it will have positive feedback on the company’s competitiveness. As

mentioned by Ilieska (2016) Understanding customer satisfaction can provide companies

with the opportunity that can be used to streamline operations and focus continuous

improvement on cost efficiency in order to achieve better performance. Customer satisfaction

can be achieved through mobile applications especially on food delivery applications.

Based on Ngai & Gunasekaran (2017), online food delivery services can be defined

as any money - related food delivery transaction conducted via mobile handheld devices such

as smartphones or personal digital assistants. Also it's an application where you can browse

food related items from the menu of various food companies that cater online orders and

accept food deliveries. Online food delivery systems or applications became popular because

of the increase in growth of online food platform users in line with Kapoor & Vij (2018).

Background of the Study

Online food delivery applications became popular because of the people who

have a really hectic schedule due to their lifestyle, work and more. According to Saxena

(2019), online food ordering applications are a type of media through which local hotels

and restaurants, fast food chains, and canteens deliver takeout and food packages directly

to consumers' doorsteps. In other words, food delivery applications show various food
items from the menu of local food establishments that are accessible by mobile vehicles

like motorcycles where they can deliver foods directly to your current locations. Due to

convenience offered by these applications, it is now already being implemented here at

Sta. Cruz Laguna.

Due to continuous development of our country with the help of the latest

technologies, delivery applications are now popular here at Sta. Cruz Laguna. Food

establishments in Sta. Cruz Laguna were using mobile phones and telephone calls for

their delivery system. Different food establishments are being developed everywhere, and

some of its consumers live outside of Sta. Cruz Laguna, specifically the municipalities of

Liliw, Pila and Nagcarlan and that is why different food delivery applications are being

implemented. Almost all of the fast food establishments and restaurants are catering

delivery services from Jollibee Delivery Application, Mcdonalds Delivery Application or

MCDELIVERY, and most of the food establishments are relying on FoodPanda App.

Jollibee Delivery Application also known as Jollibee Philippines Application

contains a wide variety of food items that are offered in these establishments. From their

famous ChickenJoy, sundaes, burgers, drinks and crispy fries. This application also

shows the promos and combo that are currently on their menu. In this application you are

going to input your address to determine the delivery rate and the waiting time for your

delivery.

McDonalds App also known as McDelivery. It also contains a wide range of food

items from their menu from their famous Fries and Big Mac up to their drinks and crispy

chicken meals and sandwiches. Sometimes McDonalds offers seasonal foods and
beverages that can be delivered through their application. This application also shows the

available offers and their new products, promos and combo meals.

FoodPanda App is an online food and grocery delivery platform brand owned by

Delivery Hero, which is headquartered in Berlin, Germany. Today, foodpanda operates as

the lead brand for Delivery Hero in Asia, with its headquarters in Singapore. It caters a

wide variety of food items from various food establishments that are registered in the

application. It determines what are the food items and food establishments that are

available near your area. With the use of location services in mobile phones it determines

where you are and the food will be at your doorstep in just a moment.

Since food delivery applications are now a trend and the applications have many

users, the researchers want to know the level of effectiveness of online food delivery

applications towards customer satisfaction. Because in a food delivery application, it is

important to determine whether the application is effective for the users. It is also

important for the owners of the applications to determine the wants, and needs of their

users.

Theoretical Framework
 Thomassen Model of Customer Satisfaction Creation

Source:https://cdn.scribbr.com/wp-content/uploads/2015/10/framework-thomassen.png

According to Thomassen (2007), the so-called value proposition, as well as other

influences, have an effect on final customer satisfaction. Thomassen's satisfaction model

demonstrates that word-of-mouth, personal needs, previous experiences, and marketing

and public relations all influence customers' needs and expectations. These factors are

weighed against their experiences, and the difference among expectations and

experiences determines a customer's level of satisfaction. Thomassen's model is relevant

in this study because it allows us to determine both how satisfied company X's customers

are and where improvements can be made.

Conceptual Framework

The conceptual framework of this research is shown in diagram form.

INDEPENDENT VARIABLES DEPENDENT

VARIABLES

Features of Online Food Delivery Level of Effectiveness of Online

Application in terms of: Food Delivery Apps Towards
Customer Satisfaction in terms
of:
 Informative
 Timeliness
 Security
 Efficiency
 Application
 Responsiveness
Design
 Fulfillment
 Payment System
 FIGURE 1: The Research Paradigm of the study

Statement of the Problem

1. What are the features of Online Food Delivery Application in terms of;

1.1 Informative:

1.2 Security:

1.3 Application Design: and

1.4 Payment System?

2. What are the level of effectiveness of Online Food Delivery Application Towards

Customer Satisfaction in terms of:

2.1 Timeliness;

2.2 Efficiency; and

2.3 Responsiveness

Hypothesis

HO = The online food delivery application has a significant relationship towards customer

satisfaction.

HA = The online food delivery application has no significant relationship towards

customer satisfaction.

Significance of the Study

The researchers believe that the finding of this study will help to identify the level

effectiveness of online food delivery application towards customer satisfaction,

furthermore, this research will benefit the community particularly:

 Online Food Delivery Application Owners. To determine the effectiveness of

the application towards customer service. To help innovate the application. Furthemore,

this research will benefit the owner of the applications and the food establishment to have

a stronger relationship with the consumers.

Customers

Students. This study can be used as a reference for deeper understanding and it

will give a wide range of knowledge about the effectiveness of Online Food Delivery

Applications.

Future Researchers. This research can be used as a basis of their own research

on the same field of this study.

Scope and Limitation

This study covers customers and users of food delivering applications around the

municipality of Sta, Cruz Laguna. Due to the ongoing safety precautions of the pandemic,

the researchers are using internet based platforms in conducting the surveys and research.

Furthermore customers outside the area are not covered in this study.

Operational Definition of Terms

Application Design - It represents the design of the application as a user-friendly

platform for all ages.

Customer Satisfaction - It refers to the pleasure of the user while using the online food

delivery application.

Efficiency - Refers to the ease of use of the application.

Fulfillment - It refers to the satisfaction of the user if the application gives the user’s

wants.

Informative - It refers to the information that is presented in the application, whether it is

enough and reliable.

Online Food Delivery Application - It is the platform used by the user’s in ordering

food items.

Payment System - It is the mode of payment that the user can use.

Responsiveness - It refers to the receptiveness of the application towards the user.

Security - Refers to the safety of the user’s data while interacting with the application.

Timeliness - The delivery services are quickly bringing the orders to your location.

CHAPTER 2

REVIEW OF RELATED LITERATURE

In this chapter, the researchers included the related literature and studies which

may also help to fully understand the researchers main topic. Lastly, to easily define the

terms for better comprehension of the study.

Related Literature

Online food delivery applications

Taylor (2019) stated that Food delivery apps are considered to be the best thing

since the invention of sliced bread. The ease and efficiency it brings to our daily life are
incomparable to anything else. And maybe that’s why food delivery apps like UberEats

have become the apple of the millennial eye.The market for food delivery applications

have gotten exceptionally better over the last couple of years, and now there are various

food delivery apps in the market, making quite a lot of profit.

According to Sta. Ana (2021) Even before the new normal, online food delivery

apps were everyone's most dependable food provider. Apart from the convenience, these

platforms enable users to select meals from a wide range of partner restaurants with a

single tap. Because everything is done online, there is less physical contact, which

protects both customers and riders.

As stated by Taylor (2019), Users of food delivery applications are always given

better deals. That is why food delivery apps are so popular among millennials. Food

delivery platforms are always looking for users to order more, whether it's an offer from

the app or a specific food joint. As a result, they always provide better offers to users.

Food delivery apps are becoming increasingly popular among millennial users due to

their discounts and low prices.

Customer Satisfaction

Customer satisfaction, as stated by Balinado et al. (2021), pertains to an

individual's opinion or thoughts about the service or product they received in comparison

to their expectations. The main principle is to satisfy customers so that they might

continue to patronize a business, the business can generate profits, and the industry will

be sustainable. In the current competitive market, customer enjoyment, which is generally

known to lead to customer loyalty, is becoming highly significant. By doing so,

companies can increase profits while maintaining a competitive advantage in their

industry.

Taylor et al. (2017) found that an individual's generation has a significant impact

on their satisfaction and intent to return to the overall dining service environment of a

casual full-service restaurant, as well as what aspects of the dining service environment

they consider important when deciding where to dine out.

Timely

Mehmood et al. (2017) proposed five types of convenience in relation to different

stages of the service encounter, : (1) decision convenience; (2) access convenience; (3)

transaction convenience; (4) benefit convenience; and (5) post-benefit convenience,

which enable companies to better understand the customer perception about the use of

time and effort at various levels because there is a difference between customer

expectation and the serendipity.

As mentioned by Mehmood et al. (2017), people not only want a quality service,

but also one that is convenient for them, i.e. one that saves them time and effort (Seiders,

Berry, & Gresham., 2000; Kaura 2013), and the convenience provided by businesses is

highly praised by customers. In addition Mehmood et al. (2017) "service convenience"

refers to the ease with which a consumer can obtain a service while saving time and effort

(Berry, Seiders, & Grewal., 2002; Kaura et al., 2015).

Efficiency
 In line with Bika (2021), Customer service efficiency, entails achieving customer

service goals with the minimum of effort on both sides. You must concentrate on the key

word "effort." Because it is so closely linked to the client experience and happiness,

efficiency is ideal for service quality. Customers expect high-quality service. Giving it to

them involves having fast and efficient customer service procedures, as well as

minimizing the customer side of the process. Miller (2019)

Related Studies

Customer Satisfaction

As claimed by Shamsudin and Razak (2019), customer satisfaction assesses how

great a product's use experience corresponds to the buyer's value expectations.

According to Nabi et al., it is the anticipation that both the customer and the consumer

have before purchasing and using the goods or services (2018). Salem, 2018, cited by

Hamzah, 2020. The company faced difficult challenges while ensuring maximum client

value and satisfaction. Customers' expectations and preferences change over time.

Because customer satisfaction is strongly linked to customer experience, customers

expect more than just basic value, according to (Parasuraman, et al. (1993); Parasuraman,

et al. 1994), as mentioned by Hamzah (2020).

Customer satisfaction has been a famous point in marketing practice and

scholastic research that is an introductory investigation of customer exertion,

expectations and satisfaction. In spite of many endeavours to quantify and clarify

customer satisfaction, they still do not give off an impression of being an accord with
respect to its definition, Customer satisfaction is the main basis for deciding the quality

that is really delivered to customer through the production and service, and by the going

with servicing ( Choun et al., 2018).

Online Food Delivery Application

Rahman et al. (2019) stated that Online food ordering and delivery is the

process in which order for the food is placed through the internet and delivered to the

customer to the specified place. Food delivery Apps, online food ordering systems

are basically designed for those People that don’t have time to go to restaurants. As

they say, money is not money but time is money.

To cover the limitation of all the previous food ordering systems, mobile

food ordering system been developed. This system automates all food ordering process.

In the recent time of information technology people are familiarized to use

computer, mobile and mobile Apps. On the other hand the use of mobile application

and their development is also growing fast area of information technology. Mobile

Application has not only impacted Smartphone users but also plays a vital role in

our daily business life. The first mobile which is come to market is so simple, that just

have, clock, alarm, and simple calculator (Abrar et al., 2019).

As mentioned by Mehmood et al., (2019), nowadays, mobile phones are used

commonly due to different functionalities i.e. users can be used for calling, used for

messaging, used for browsing, used for chatting, used for social network

communication, and users can also use for audio, video, games etc. Mobile food
ordering and food delivery is one of the most popular areas of mobile application

development.

As stated by Rahman et al., (2019), online food delivery applications are

impressively good for those people that do not have time to go to the restaurant.

Anyone who has a smartphone can easily order food from anywhere and they can

receive food at his/her home. Payment can be either on delivery or by credit card.
 CHAPTER 3

RESEARCH METHODOLOGY

This chapter will tackle the methodology of the study, the subjects,

sampling technique, research instruments, procedure of data gathering, and

statistical treatment that will be used for accurate data analysis and interpretation.

Research Design

In this study, the researchers used descriptive-quantitative design to

measure the effectiveness of online food delivery applications towards customer

satisfaction in Sta. Cruz, Laguna. According to Apuke (2017), quantitative

research is concerned with the quantification and analysis of variables in order to

obtain outcomes. It also refers to the process of accumulating numerical data in

order to understand a problem or event. Moreover, it will then be described to

obtain an accurate result. This will be conducted for the fulfilment in determining

whether online food delivery applications are effective towards customer

satisfaction in Sta. Cruz, Laguna.

Research Procedure
 The current study was subject to certain ethical issues. For this reason, the

researchers will provide letters to respondents. These letters will ensure that

respondents' participation in this study was voluntary. Moreover, the researchers

also provided a letter of approval to the Municipal Mayor signed by the research

adviser to inform the office about the study the researchers conducted and the

respondents needed in the study.

The researchers will make sure that the instruments that will be used will

be validated by their research teacher and research adviser. Before the distribution

of the survey questionnaires, the researchers will provide a short introduction and

overview about the research study in the survey form to give the respondents

sufficient information that is needed for the respondents to give a reliable answer.

Furthermore, the researchers will take an active part in conducting the study to

fully secure and record the results, and measure it accurately. The researchers will

also make sure to use the data gathered for academic purposes and will only be

used for the purpose of the study.

Population and Sampling Techniques

In selecting the respondents, the researchers will use the purposive

sampling technique. According to Crossman (2020), purposive sampling is a

sampling technique where the researchers rely on their judgment in choosing the

respondents based on the characteristics of the population. This is a non-

probability sampling method.

 The researchers will use purposive sampling for the surveys since the

researchers’ main target are the customers or the user of different online food

delivery application services. Thus, the researchers can make sure that the

members of the sample group have the same level of knowledge about the

research problem. Moreover, Regoli (2019) states that purposive sampling helps

researchers to obtain information straight from the source which may result in a

lower margin of error.

The respondents of this study are one hundred (100) individuals who had

experience using the stated Online Delivery Applications. The researchers aim to

know whether the online food delivery application has an effect towards the

customer satisfaction. Purposive sampling technique will be used by the

researcher in choosing the respondents of the study.

Respondents of the Study

Sta. Cruz is located in Region IV-A CALABARZON, particularly in the

province of Laguna where various establishments were built including malls,

salons, banks, restaurants, food chains, and other establishments that respond to

the needs of the community.

The present study will be conducted in Sta. Cruz, Laguna. In particular,

the respondents of this research are the customers or the user of different online

food delivery application services such as Jollibee Philippines, McDonalds App,

and FoodPanda. There will be one hundred (100) individuals that are users of
food delivery application services that will serve as the participants for the survey

of this study.

Research Instrument

According to Duke University (2020), research instruments are devices

that record needed data, both qualitative and quantitative, that help measure

research variables. Research instruments also undergo validation.

The type of data instrument that will be used in the study is a survey

questionnaire through Google Forms to collect and measure the quantitative data.

According to Debois (2019), questionnaires and surveys are simple and quick that

allow you to collect data from a wide group of people. Moreover, this survey

questionnaire will focus on determining the effectiveness of online food delivery

applications towards customer satisfaction in Sta. Cruz, Laguna. The survey

questionnaire will be answered by one hundred (100) individuals who are users of

the said application. Furthermore, this will be constructed accordingly in terms of

the essential and necessity of the study as well as to provide answers that are

needed in this research. The respondents will read the instructions and statements

in each number carefully. The respondents will choose their answers based on the

Likert scale of 4, 3, 2, 1 where they are verbally interpreted as Very high, high,

low, and very low respectively.

The questionnaire will consist of three (3) sections. Section A will be for

the respondents’ profiles. Names will be optional. Section A will also include the

age and gender of the respondents, as well as the online food delivery application
service they use. In Section B, the respondents will be asked about the various

features of Online Food Delivery Application in terms of its informatively,

security, application design, and payment system. Each feature will have three (3)

questions with a total of twelve (12) questions for this section. Section C will

focus on determining the level of effectiveness of online food delivery

applications towards customer satisfaction in terms of timeliness, efficiency, and

responsiveness. Each factor will have three (3) questions with a total of nine (9)

questions for this section.

Statistical Treatment of Data

After gathering all the data, the researchers will tabulate and interpret the

findings. A Likert Scale was used upon deployment of the questionnaire which

was answered by the respondents. The data from the survey questionnaire will be

analyzed. The data analysis was used to answer the statement of the problems and

test the hypothesis.

Frequency and Percentage Distribution is used to determine the percentage

usually for data on profile such as age, gender, etc.

Weighted Mean is the average of differently weighted scores.

= weighted average
 = Number of terms to be averaged

= weights applied to x values

= data values to be average

Standard Deviation indicates the extent of the deviation for a group as a whole.

= population standard deviation

= size of the population

= each value from the population

= the population mean

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Research Questionnaire

I. Respondent’s Profile

Name (Optional): Age:

Gender:

II. Direction: Put a Check (/) in the column that corresponds to your

answers. Where 1 is the lowest rating and 5 is the highest possible

rating

Legend: 1-Strongly Disagree, 2-Disagree, 3Agree , 4-Strongly Agree

Informative-Refers to the information presented in the application.

1 2 3 4
1. The information is reliable.
2. The data in the application is sufficient.
3. The information in the application is easy to
understand.

Security- Refers to the safety of the users data while using the application.
1 2 3 4
1. The user’s personal data is confidential.
2. The user’s account number is confidential.
3. The user’s order tracking number is confidential.
Application Design
Refers to the design of the application as a user-friendly platform for all ages.
.
1 2 3 4
1. The application can be easily used by individuals
from all ages.
2. The application can be easily understood.
3. The application is open to all users.

Payment System- Refers to the mode of payment that the user’s can use.
.
1 2 3 4
1. The cash-on-delivery payment is very reliable.
2. The credit card payments are safe to use.
3. Electronic payments (like Gcash) are safe to use in
food delivery applications.

Timeliness- The delivery services are quickly bringing the orders to your
location.
1 2 3 4
1. The food arrived on time.
2. The food is still hot or cold when received.
3. The food is delivered quickly.

Efficiency -Refers to the ease of use of the application.

1 2 3 4
1. The application contains information about the
menu.
2. The application answers the user’s quickly .
3. The application is convenient to use.
 Responsiveness- Refers to the receptiveness of the application towards the
user.
1 2 3 4
1. The application responds quickly to the user.
2. The application informs the user when the delivery
will arrive.
3. The application informs the user about the food
item.

Fulfillment-Refers to the satisfaction of the user in using the application.

1 2 3 4
1. The application provides the needs and wants of the
user.
2. The user is satisfied while using the mobile
application.
3. The application is giving the user what they want.

CV