DS Project
DS Project
ENROLLMENT: 23FMOCBL010024
EMAIL: [email protected]
PROJECT NAME: The Customer Perception of Electronic Food Ordering
CONTENT
S In
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Int
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1 Co
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2 Pr
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3 Sc
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4 Ne
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5 Ob
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6 Sta
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Pla
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U
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Re
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In
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An
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Int
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Executive Summary
The advent of the Internet, accompanied by the growth of related technologies, has created a
significant impact on the lives of people around the globe. For marketers, one of the most
significant impacts has been the emergence of virtual stores that sell products and services
online. Consumers can now purchase goods and services virtually anywhere, 24 hours a day, 7
days a week, without geographical and temporal boundaries.
While many marketers acknowledge the importance of using the Internet in their marketing
mixes, little research has empirically tested the critical factors that influence an individual’s
decision when buying products or services online. Based on the gaps found in the literature, the
purposes of this project study is to understand the perception of Electronic Online Food
Ordering. The major factor that inhibits those who have not ordered via an electronic channel
(non-users) is a desire for interaction although technology anxiety is also a factor). Consumers’
Perceptions of Online Ordering and how they use it or why they don’t do so. My intention is to
help restaurant operator’s better design their electronic ordering channels. Non vegetarian food,
particularly kebabs, is far and away the most commonly ordered category. The single most
important attribute of electronic ordering is order accuracy. That is followed by convenience and
ease of ordering. Despite the availability of the internet and phone apps, the most common
ordering channel is still the telephone call. Electronic ordering is growing, though, as the users
said they place a little over 38 percent of their orders on the restaurant’s website or app. A chief
implication is that restaurateurs must ensure that their ordering systems must give users
perceptions of control and also be convenient. One other consideration is that customers who
order food online prefer restaurants that offer home delivery.
Concept Introduction
With the coming of the 21st century, we have entered an “e” generation era. The
Internet has generated a tremendous level of excitement through its involvement
with all kinds of businesses starting from e-Commerce, eBusiness, eCRM, eSupply
Chain, eMarketplace, ePayment, eEntertainment, eTicketing, eLearning, to
eCitizenor eGovernement. The Internet has been widely used in many sales and
marketing activities, from the collection of valuable data to the dissemination of
information to different stakeholders, for example, information retrieval, product
communication, sales tool, distribution channel, and as a customer support tool
(Singh, Jayashankar and Singh 2001; Calles 2000; Sandberg 1998; Peterson,
Balasubramanian and Bronnenberg 1997). The Internet has opened a window of
opportunity to almost anyone because of its ability to make viable the conduct of
business in cyberspace, or by connecting people worldwide without geographical
limitations. Consumers can order goods and services virtually anywhere, 24 hours
a day; 7 days a week without worrying about store hours, time zones, or traffic
jams. The Internet has also provided new opportunities for marketers by offering
them innovative ways to promote, communicate, and distribute products and
information to their target consumers.
E-commerce has grown phenomenally in the past decade for a variety of reasons
including changes in consumer lifestyles, technological advancements, increases in
consumer income and education, and rapid financial development throughout the
world. The use of the Internet as a shopping or purchasing vehicle has been
growing at an impressive rate throughout the last decade. The tremendous growth
of online sales and the unique functions of the Internet have drawn a great deal of
attention from many companies rushing in to set up businesses over the
Internet without
knowing what factors actually motivate consumers to buy products or services
online.
Many marketers agree that Internet marketing will definitely increase customer
spending and loyalty to both online and offline products if it is executed properly.
This is due largely to the Internet’s significant advantage of two-way
communication and its ability to transmit information quickly and inexpensively
when compared to other traditional mass media using solely one-way
communication (Warrington, Abram& Caldwell 2000; Waldo 2000). The
simultaneous and rapid rate of consumer adoption of personal computers and
network systems have encouraged and pressured marketers to provide Internet
retailing sites. Some researchers in fact predict that the need for physical stores
could be eliminated in roughly four decades and replaced with electronic retailing
(Cope 1996).
While many marketers acknowledge the importance of using the Internet in their
marketing mixes, only a handful of researchers have studied what factors
encourage or discourage consumers when buying products or services online.
Despite the increasing popularity of the Internet, most knowledge of Internet
marketing is based on anecdotes and experiential evidence from television, radio,
popular press or magazines
In summary, the benefits of using the Internet in marketing are enormous as they
offer a huge opportunity for marketers to create innovative activities that have not
previously been viable. However, marketers need to develop an insightful
understanding of consumer behaviour when purchasing products online. This
information will help marketing managers to plan their marketing mixes and offers
to better meet customer’s requirements. By doing so, companies will establish,
maintain or increase customer satisfaction, build strong brand loyalty and
ultimately,
provide consumers with a solid rationale for continuing to buy the same brand.
This study is thus significant as it is a preliminary attempt to identify factors and
their relative strength in influencing consumer decision making when buying health
foods online. The research problem and objectives of this study are addressed next.
Online food ordering system is a system to manage the business. The main point of
developing this system is to help the customers to manage the business and help
customers through online ordering and lunch reservation. The project is being
developed because of the long queues that will be in the restaurant during lunch or
dinner hours, one for purchasing tickets and one for collecting food.
With the new system, the customers would be able to order their food from the
comfort of their offices, classrooms, hostels and anywhere outside the school
campus without queuing. The system will cater for the disadvantages of the
traditional method which is currently in place.
Online food ordering
Services are websites that feature interactive menus 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 be amongst others by credit card or cash, with the restaurant returning a
percentage to the online food company. Online food ordering services are websites
that feature interactive menus allowing customers to place orders with local
restaurants and food co-operatives. 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 chooses
from
available items, and choose delivery or pick-up. Payment amongst others by credit
card or cash with the restaurant returning a percentage to the online food company.
While-commerce has been around for over a decade closing the gap between food
and the internet has taken longer. 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 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. ‘Ordering form grocery stores to stock the kitchen, instead of
placing one time orders with a restaurant. 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. Traditionally, Indians like to have
Home-cooked meals – a concept supported religiously as well as individually.
However, with times due to increasing awareness and influence of western culture,
there is a slight shift in food consumption patterns among urban Indian families. 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.
Fast food is one which gained acceptance of Indian palate after the multinational
fast-food players adapted the basic Indian food requirements viz. vegetarian meals
and selected non-vegetarian options excluding beef and pork totally from their
menu.
Multinational fast food outlets initially faced protests and non-acceptance from
Indian consumers. This was due to primary perception that these fast food players
serve only chicken and do not serve vegetarian meals. Perceived expensive besides
being out-of-way meals in Indian culture. Today, fast food industry is getting
adapted to Indian food requirements and is growing in India.
Gaining acceptance primarily from Indian youth and younger generations and is
becoming part of life. Keeping in view the Indian habits and changing preferences
towards food consumption, this study has its focus to understand the factors
affecting the perception of Indian youth, in the age group of 20-30 years, towards
consumption of fast food as well as towards making choice of fast food outlets.
Advantages for Electronic Ordering
There are advantages for both the customer and for the restaurants who participate
in online ordering. 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 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.
Disadvantage for Electronic Ordering
Customers are not able to ask about quality of food or ask for any specialized diet
foods. It is more difficult to ask for gluten free or allergy free foods with online
ordering. Also, it is more possible for a customer to place an order, but never pick
up the order which can lead to waste of food and possibly a loss of profits.
In this day and age where presence in the virtual world is an imperative, small
restaurants and entrepreneurs too need to take benefit of it. Online food ordering
websites present just the options. By Saionji Baldur
The difference between the organized and the unorganized sector in the Indian
hospitality industry is huge. This does not just include hotels, but also the food
service segment. Apart from the organized chain restaurants, most restaurants cater
to local needs and often at a micro market level. In such a scenario, creating a loyal
customer base is not difficult and a specialized marketing and sales force may not
be necessary. By David Buttress
Enter online food ordering websites. These websites have been developed more for
consumer convenience than anything else. But they do open a plethora of
opportunities for small establishments to grow their business further. Online food
ordering has been an international phenomenon for a while now. There have been
many variations in India as well which have taken off at different periods of time,
but success has been hard to come by. One of these early ventures was
HungryZone.com which started out in 2006 in Bangalore with more than 650
restaurants in the city.
The company was recently acquired by the British JustEat.com and was launched
as JustEat.in in India which is expected to go national in another year or so. The
website is already active in Bangalore, Mumbai and Delhi. David Buttress, MD of
JustEat.com informs, “We will be looking at Kolkata, Chennai, Pune, Hyderabad,
Ahmadabad, Chandigarh and Goa to provide the website’s services.” The Just-Eat
Group operates in the UK, Denmark, Sweden, Belgium, Spain, Netherlands,
Ireland, Norway, Canada and India. Just-Eat.com (founded in 2000) will invest US
$ 5-10 million over the next three years into its Indian entity. By Aditi Tarija.
The study of the problem is limited only within the city of Bangalore. It includes
the customers who use the online food ordering system. The study is very much
important for knowing the customers’ perception of online food ordering and this
is analyzed based on randomly selected 100 sample size due to the time constraint.
• To provide convenient and easy access in placing their orders and payment.
Operational definition
Seasons Known in providing guests’ genuine hospitality and service that exceeds
guest’s expectations our management team employs this philosophy in all of their
daily efforts.
Seasons Hospitalities has successfully churned the demand in this Segment, it has a
diverse portfolio encompassing hotels, resorts, restaurants and corporate
hospitality. The properties vary by type, size and the market niche they serve. We
provide a consummate and unmatched international hospitality experience at
competitive price offerings.
A strong focus on the proverbial bottom line, continued development of staff and
an intricate understanding of the needs of the Indian market and consumer have
catapulted the Company to its present glory. Through experts and a comprehensive
involvement it tries to make every project a success. The Company firmly believes
that mutual respect, long term partnerships and strong ethics and integrity are
essential to achieve ultimate success. It follows the principle, “Right Services at
Right Time”
Experience: The Company is managed by competent professionals endowed with
a wealth of experience. It is their keen understanding of the hospitality business
and their experts in technical knowledge that has propelled the Company to the
forefront of the hotel industry
Management Excellence: will guarantee that you enjoy the Highest Margins and
Earnings Innovative and efficient Distribution System: will bring more Guests to
your Hotel and Improve Average Room Revenue and Average per Cover and
Reduces the Agency Commission Costs.
Seasons Advantages
Grunert stated that "people seek food, not nutrients. The common beliefs
underlying all these classifications are that food has social and psychic meanings
that meals serve as communicative symbolism, and "that eating is an experience
that may be invested with many intellectual and emotional values quite apart from
metabolic utilization of the food" (Babcoke, 1948, p.390).
Eating is a deeply engrained source of satisfaction and the restaurant customer
wants an eating experience which combines food, service, d6cor, and indefinable
extra (Hall, 1977).
The Foodservice Industry
Hall (1977) stated that the millions of people who "eat out" every day have a wide
variety of needs and tastes from a quick lunch to a luxurious meal with elaborate
service. Because of these differences there are many kinds of restaurants varying
from street stands for a hot dog or bowl of noodles to elaborate restaurants with the
best cooking.
There are millions of people away from their homes everyday either by necessity
or by choice. The restaurant and catering business has developed to feed this huge
number of transients-office and factory workers, schoolchildren, military
personnel, travellers, and 6 people out to have a good time. Because there are so
many to feed,
the restaurant and catering business is one of the largest and fast-growing industries
in the world. Those who eat away from home spend vast sums of money for
restaurant or catered meals (Hall, 1977). Ten years into the new millennium, US.
Restaurant industry sales will reach $576.9 billion or about $222 billion more than
is generated currently, according to a newly released industry forecast. While the
restaurant industry now garners about 44 cents of every dollar spent on food, the
sales are projected to climb to a 53.2 percent share of the total food dollar by 2010,
according to the National Restaurant Association (Papiernik, 1999).
The Restaurant Business
The restaurant business, say the National Restaurant Association (NRA), is the
third largest of all businesses in the United States (Lungberg, 1994). Local
restaurants are made up of establishments that include fast-food units, coffee
shops, specialty restaurants, family restaurants, cafeterias, and full-service
restaurants with carefully orchestrated "atmosphere", said Goeldner, Ritchie and
Mcintoch (1999). According to Lungberg (1994), the NRA classified all eating
establishments into three categories: Commercial foodservice, institutional
foodservice, and military foodservice.
Why people eat out
According to Lungberg and Walker (1993) said that the reasons for "eating out"
are several and some of them complex. The National Restaurant Association
(NRA) has sponsored a number of studies of restaurant consumers and their
reactions to various kinds of restaurants. According to one of these studies, the
three most important considerations in the decision to eat out were:
- No one has to clean up
When selecting a new restaurant, the person depends a great deal upon
recommendations of friends. This is nearly equal in importance to the type of food
the restaurant serves. Appearance and location are a distant third and forth in
consideration.
Quality of food is the most important factor in people's evaluation of any of
restaurant. The second most important factor varies by restaurant type. In fast-food,
coffee shops, and take-out restaurants, it is speed of service; in family-type
restaurants, cleanliness; in cafeteria, it is the selection of food; and in
atmosphere/specialty restaurants, it is the atmosphere or d6cor.
According to National Restaurant Association statistics, the most common day of
the year to dine out is a birthday. Approximately 50% of consumers celebrate their
birthday at a restaurant. Mother's Day and Father's Day rank as the second and
third busiest holidays celebrated in restaurants. The most popular day of the week
for consumers to dine out is Friday, followed by Saturday and Thursday (Mill,
1998).
Customer Satisfaction
According to The City Pages, Minneapolis/ St. Paul reviewed about one
Vietnamese restaurant in town by Moskowitz (1999) said “Customers are stocking
up in pursuit of fresh, simple Vietnamese food made with an emphasis on clean
flavour and bright herbs, delivered quickly, and priced reasonably".
Meeting Customer Expectations
Various internal and external factors combine to influence how customers choose
where, when, how, and why to eat out. The vehicle used to explore this will be a
national study prepared by the National Restaurant Association on the dinner
market.
Decision Scenarios
This report divides all dinner decisions into five basic decision scenarios:
The success of any project or market survey depends heavily on the data collection
and analysis. It is necessary that the data collected is a reliable data in order to
achieve the research objectives. All data sources can be classified into two:
Primary data- primary data is gathered from direct observation or data
personally collected. It refers to that data which is collected for a specific
purpose from the field of enquiry and are original in nature. For the project
primary data were collected mainly through survey method, using the tool
questionnaire.
Secondary data- are those which have been already collected by others for
a specific purpose and are subsequently used for application in different
conditions. It is the second hand information about an event that has not
been personally witnessed by the researchers.The use of secondary data
saves time and money. The purpose is to increase the accuracy of analysis.
Here the secondary data was obtained from---
Limitations
The sample size is small for the accurate study of the customer.
Some respondents might have given biased answers which might have an
impact on the findings of the studies.
Lack of prior research studies on the topic respondents don't have time to
read the full questionnaire as they fill it randomly.
Due to small size of sample, it's difficult to identify significant relationship
with the customers.
Respondents tried to escape some statements by simple answering.
Analysis and Interpretation of Data
In the previous chapter the methodology used by the researcher is carrying out the
present investigation had been discussed in detail. The present chapter deals with
the presentation of the analysis and interpretation of the data.
As stated earlier the purpose of this study was to find out the customers’ perception
towards online food ordering among the customers of Bangalore city. The data
obtained from responses to the questionnaire, and tabulated and analysed. The data
for this purpose was collected with the help of readily available tools. Interest of
customers is necessary to find out the answer for the questions.
Table 07: Showing the findings of Electronic food ordering easy and convenient?
Table 08: Showing the Awareness of different electronic channels
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http://www.wikihow.com/Order-Food-Online-with-Snapfinger
http://gulfnews.com/news/gulf/uae/general/online-food-ordering-gets-mixed-
reviews-in-uae-1.1281064
http://www.fastcasual.com/article/207437/Report-Majority-of-consumers-
now-use-mobile-food-ordering-tools
http://www.fastcasual.com/article/215365/MICROS-introduces-commerce-
platform?utm_source=news&utm_medium=site&utm_campaign=most_comm
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http://www.fastcasual.com/blog/12551/A-new-vision-for-restaurant- catering?
utm_source=news&utm_medium=site&utm_campaign=other_blogs
http://www.fastcasual.com/research/272/Online-Ordering?nav=top
http://global.networldalliance.com/downloads/white_papers/GRSOnlineLaunc
hGuide.pdf
http://global.networldalliance.com/downloads/white_papers/delivering-
success-guide.pdf
http://global.networldalliance.com/downloads/white_papers/eMarketingSucce
ss_WP.pdf
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