The insights highlight the need for the online food delivery industry to redesign the business framework in the post-pandemic era.
Authors
Satender Pal Singh, Lecturer, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India.
Bishnu Prasad Dash, Operations Management Area, Indian Institute of Management Ranchi, Jharkhand, India.
Amit Sachan, Operations Management Area, Indian Institute of Management Ranchi, Ranchi, India.
Arnab Adhikari, Operations Management Area, Indian Institute of Management Ranchi, Ranchi, India.
Summary
This article investigates the impact of the COVID-19 pandemic on the consumer preference for the attributes of online food delivery (OFD) services in India. It also shows how the order size influences the consumer’s willingness to pay (WTP) for the attributes of OFD services.
Methodology
This work incorporates a conjoint analysis-based approach to determine the consumer preference for the attributes of OFDs such as price, delivery time, restaurant rating and packing quality during the COVID-19 pandemic. The fractional factorial design is applied for the data collection. The relative importance of the attributes and the part-worth utility of the attributes’ levels have been determined. Further, the utility associated with the attributes’ levels is used to find the consumer’s WTP for different attributes.
Findings
The COVID-19 pandemic has changed consumer preference from price to food and packing quality in India. When the order is small, consumers exhibit a higher preference to the delivery time than packing quality. In contrast, consumers show a higher preference to packing quality than delivery time with the increase in order size. The consumer’s WTP attains the highest level in case of food quality, followed by convenience and packing quality. The WTP for the attributes rises with the increase in order size.
Practical Implications
The insights highlight the need for the online food delivery industry to redesign the business framework in the post-pandemic era. The hygiene and safety measures maintained by the consumers during the pandemic have significantly changed their purchasing behaviour, raising their preference for service quality (food and packing quality) of the OFD services apart from price.
Originality
This work determines the consumers’ utility for each attribute level of OFDs, along with their relative importance. Moreover, this study contributes to the existing literature by exhibiting the impact of the COVID-19 pandemic on the consumer preference and order size on consumer’s WTP for the attributes.
Published in: The TQM Journal
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