Chapter 1
Introduction
The quick pace of technological advancements has had a considerable
impact on business, changing traditional product manufacturing and service
delivery techniques. Restaurants are changing their business strategies in
response to the coronavirus pandemic's changes and challenges, as well as
to meet the needs of this unusual situation. Smart technologies that enable
pervasive applications are also being used in the restaurant industry, which
has a plethora of complex operations. Both service providers and users are
taking advantage of developing platforms' availability and accessibility in
supplied services. In the drive to reap the benefits of technology in this
competitive climate, there is a significant risk of disruption, particularly in the
restaurant business, which has a history of resisting or adapting to change.
New food distribution encompasses a wide range of innovative ways and
ideas that are both sustainable and cutting-edge. The use of technology,
mobile applications, and environmentally sustainable practises are an intrinsic
component of the direct-to-consumer strategy, from the high-tech creation of
autonomous vehicles for on-demand service to the incredibly clever marketing
that undoubtedly excites customer interest (Gavilan et al., 2021; Khan, 2020).
Technology and innovation activities represent major forces behind
such structural processes, with information and communication technologies
playing a pivotal role in revolutionising the ways most of ‘traditional’ services
are produced, traded and delivered as well as offering opportunities for the
generation of new ones in a variety of service industries. The advancement of
internet technology, which allows e-commerce activities, has changed
consumer and business behaviour. Customers may shop conveniently,
compare products and prices effectively, and arrange for product delivery right
away thanks to the availability of e-commerce platforms as a shopping
medium. Customers can order meals through restaurant websites or online
food delivery services such as Eat24, GrabFood, and GoFood, thanks to the
availability of online technologies in the restaurant industry. The availability of
internet delivery service technology allows the restaurant business, which is
already saturated, to improve order accuracy, productivity, and customer
relationships, as well as expand their market (Sirilli & Evangelista, 1998;
Suhartanto et al., 2019)
The relevance of courier services has been emphasised in today's fast-
paced world since they serve as a link between businesses and customers.
The expectation of obtaining products and packages the same day or within a
few days has become the gold standard for most countries throughout the
world. Food delivery is getting more convenient as delivery technologies
become faster and more complex. Customers' options for meal delivery are
expanded by the ability to order on the go, from the office, or even in hotels.
Not only does an online food delivery service help clients by connecting them
with a courier who will deliver the desired item, but it also helps the courier by
reimbursing him for his payment once the things are delivered to his doorstep.
When it comes to internet clients, they have high expectations in terms of
service quality. Time performances are thus given specific attention, namely
timeliness – i.e. getting things within a specified delivery time lapse – and
delivery speed – i.e. the time interval between the customer order and the
delivery. Consumers, on the other hand, are rarely ready to pay for such
rigorous
logistical requirements. Due to the challenging target service levels, small
order dimensions, and high level of dispersion of destinations, last-mile
delivery is the least efficient and most expensive part of the delivery process
from the perspective of the companies: its cost can amount to half of total
logistic costs. (Mangiaracina et al., 2019; Li, Mirosa & Bremer et al., 2020).
According to a survey by the National Restaurant Association, some of
the most popular restaurants are by 2030, it is expected that (a) the great
majority of takeout and (b) delivery orders will be placed digitally, (b) delivery
and carryout packaging will be more sophisticated, (c) more restaurant areas
will have dedicated delivery and carryout space, (d) limited-service
restaurants will use kiosks more frequently, (e) technology will be more
effectively used to control costs and increase management efficiency, and (f)
the federal government will enact more data-privacy rules to regulate
business and handle customer data. All of the above indicators indicate
restaurants increasing their use of delivery services (National Restaurant
Association, 2019). New food distribution encompasses a wide range of
innovative ways and ideas that are both sustainable and cutting-edge. The
use of technology, mobile applications, and environmentally sustainable
practises are an intrinsic component of the direct-to-consumer strategy, from
the high-tech creation of autonomous vehicles for on-demand service to the
incredibly clever marketing that undoubtedly excites customer interest
(Gallouh, 2000).
The observation that there was a significant gap between current
attempts to understand innovation and other change processes, and
continuing structural changes in national economies, was the beginning point
for the project Services in Innovation – Innovation in Services (SI4S).
Similarly, in the
formation of national industrial and innovation policies, there has been a
considerable under-focus on linked issues; industrial policies have largely
been manufacturing industrial policies. The emphasis on manufacturing
competitiveness and technological innovations, particularly in the iv
manufacturing industries, has resulted in a lack of integration of service-
related issues in these policies, as well as a lack of reflection of these sectors
in innovation-related policies and infrastructures. Because service sectors
have been treated as supplier-dominated technology users, they have been
given a limited role in terms of innovation and development, both within their
own sectors and in their interactions with other economic sectors.
The need to study the importance of food delivery services during the
pandemic is an important subject to discuss and to conduct a study into it
since the pandemic has also been a challenging time for businesses,
requiring them to find innovative ways to serve the public while keeping both
their customers and employees safe. An excellent way to accomplish these
goals is by using delivery services. Courier delivery services are extremely
popular and offer businesses cost effective ways to distribute products both
nationally and across the world. There is no denying the need for fast delivery
in our evermore connected world, especially with the growth of ecommerce.
The researchers want to know how they adapt to changes from shifting to
carry out and delivery procedures to keep business going, what ways or
approach they use to improve their food delivery services and the effect of
food delivery services.
Customers' ever-changing demographics prompted adjustments in
marketing practises, particularly in the food ordering and delivery sector.
Revolutionary advances in information technology and communication have
altered the way customers interact with vendors, notably in the ready meal
industry. Customers can now order food and have it delivered to their door
more simply than ever before thanks to meal delivery apps. The sector is
developing at a faster rate than projected due to a variety of factors such as
consumer convenience, cost savings, flexibility, more options to pick from,
time savings, and so on. The current study is based on prior research on
similar themes, and it will focus on identifying the factors that contribute to the
success of food ordering and delivery applications.
Review of Related Literatures
This chapter provides a strong frame of reference for the variables
under evaluation by presenting theories, concepts, facts, information,
viewpoints, and readings relating to Conventional and Modern Food Delivery
Services.
Customer Satisfaction for Food Delivery Services is defined as a
measurement that determines how happy customers are with a
company's products, services, and capabilities.
When it comes to online food delivery, many factors such as food
availability, customer ratings, payment mechanisms, and human interaction all
have a huge impact on the consumer experience and satisfaction. According
to Nicolaides (2008) and Andaleeb & Conway (2006), service providers must
focus on service quality, and the ultimate goal of food delivery services should
be maximum customer satisfaction rather than profit. According to study,
tangibility elements such as service, meal quality, and price have a significant
impact on consumer happiness. According to Lee et al. (2019), habit is the
most influential factor on continuous use intention, followed by performance
expectations and social influence (Banarjee, Jain & Nayyar, 2019).
Lee et al. (2019) discovered in their study that the habit inspires the
most indefinite usage intention, followed by performance likelihood and social
impact. Data also shows the importance of information quality, performance
expectations, customer patterns, and social effect as elements in persuading
customers to use meal delivery apps on a regular basis. In their research,
Suhartanto et al. (2019) agree that the continuous influence of food quality on
online customer loyalty is customer loyalty, but not online service quality. It
also demonstrates the fractional negotiating role of customer satisfaction and
perceived value in the relationship between food quality and online service
quality, which is crucial for the delivery of online food services (Nayan &
Hassan, 2020).
Service quality was described by Gronroos (1988) as "the result of an
evaluation procedure in which consumers compare their expectations with the
service they perceive to have got," and by Zeithaml (1988) as "the customer's
judgement about the overall excellence or superiority of a service product.
Kim (2021) stated that "it's simply the level of quality of products and services
provided to customers, as well as their level of service satisfaction" and also
"the result of a comparison between consumers' perceptions of perceived and
expected services, as well as the functional relationships among variables
such as technical quality, functional quality, and image". (Uzir et al., 2021).
Moreover, in a competitive corporate environment, gaining a competitive
advantage might lead to long-term viability. According to Hübner et al. (2016),
customer service is widely employed to obtain a competitive advantage in
retail service sector efforts. The home delivery component of an online
ordering business is crucial to the overall pleasure of the customer. However,
delivery persons who bring ordered items to customers' houses frequently
face a range of challenges, such as client unavailability, wrong customer
addresses, long wait times, and so on. Customer satisfaction is inversely
related to service quality (Rigopoulou et al., 2008; Uzir et al., 2020).
Payment and Food Delivery Services the phrase "website design" refers
to all of the factors that influence a user's online experience (navigation,
search for information, order processing, and product selection).
Client service refers to the company's rapid response to any customer
requirement, such as platform difficulties or enquiries. Finally, security/privacy
relates to the security of credit card payments as well as the privacy of
information that clients share with the company. Furthermore,
fulfillment/reliability is one of the top determinants of quality and customer
contentment (Ribeiro, 2019).
Several payment mechanisms for e-commerce have been introduced.
Credit/debit cards, prepaid cards, and mobile wallets are examples of e-
payment solutions. Developed countries have previously implemented such e-
payment methods, while in developing countries such as Pakistan, a
significant share of e-customers pay through cash on delivery (COD) (Hira,
2017). During the epidemic, the use of e-Wallets and digital payments
increased. Digital payment or credit card payment is promoted in developing
nations to limit contact with delivery partners (Nguyen & Vu, 2020). OFDs can
offer attractive cashback or reward points for digital payments, encouraging
users to utilize e-Wallets and digital payments and increasing the perceived
benefits of OFD usage (Ribeiro, 2019).
According to Chavan et al., (2015), a digital restaurant takes customer
orders via smart phones. PDA interfaces were replaced with smart phones to
give a user interface for customers to peruse menus and track their orders.
Customers may examine the menu, place orders, track their orders, receive
real-time updates, and make online payments and collect receipts from their
smartphones, boosting customer convenience. According to Bhargave et al.
(2013), an ordering system will not only ease customer operations and attract
them, but it will also boost efficiency in restaurant operations such as
processing orders, billing, and maintaining it (Ghosh & Saha, 2018).
Technology and Food Delivery Services refers to restaurants can
manage seats, waitlists, customer loyalty, and dining preferences, as
well as collect crucial client data for contact tracing and market insights,
employing technology-enabled reservation systems.
Technology has played an important role in changing the food delivery
industry; it has contributed to changes in consumer tastes because their
reliance on technology has driven people to do everything online, including
having cooked meals delivered to their door. Convenience is the most
important feature for consumers, as placing a purchase is as simple as a few
clicks on any mobile device. The popularity of online meal ordering and
delivery services is gradually increasing, as are consumer expectations (Das,
2018).
Food marketing and distribution methods in the restaurant business are
shifting from traditional purchase methods to online food delivery systems,
with many alternative systems offered by business owners such as online
shopping, phone-based ordering, home delivery, pick-up, and drive-through
services.
Human behaviors and tastes have evolved over time as they have
been greatly influenced by global technologies and information. The internet
has also had a continual impact on business and economics, as virtual
organizations and e-commerce are now widely available, ranging from
clothing, books, and even food. The internet is becoming more widely used
and integrated in practically all business sectors around the world, where it
can serve as a medium for conducting business as an alternative to traditional
commercial practices. All of these advancements are designed to provide
consumers with the benefits that come with them, notably convenience and
time savings. The internet is incredibly beneficial for the food company
because it has made online meal ordering services available for the food
industry, which benefits both the business owners and their clients (See-
Kwong et al., 2017).
Mobile ordering apps are being downloaded at breakneck speed by
consumers all over the world. For example, when Chick-fil-A, one of the major
American fast food restaurant chains, developed its first official app, it quickly
rose to top place in the app store. According to Mayordomo-Martnez et al.
(2019), these apps are popular for four primary reasons. For starters,
customers have the impression that no one is waiting in line or being placed
on hold. Customers can also pick up food on the go. Third, clients get access
to the entire menu, including products they may not have known existed.
Finally, most restaurants give out loyalty incentive points to their customers.
Most of the time, these points are straightforward to manage directly through
applications and can result in significant savings if the consumer orders
regularly (Liu & Lin, 2020).
Consumer Convenience and Food Delivery Services means they are
much safer and convenient for your customer, since they can place an
order anytime, anywhere.
According to Kim et al. (2011), as a result of economic development
and women's economic activities, the demand for quick and easy delivery
food is increasing, as is the frequency of dining out. As the smartphone
penetration rate increased and apps with various functions became available,
delivery apps that allow meal ordering via cellphones also became available.
Furthermore, delivery apps, according to Chatterje (2001), are software that
allows users to rapidly discover eateries near them using the location
information on their smartphone. According to Ko (2016), the benefits of
delivery apps include the ability for users to acquire information on deliverable
meals in their desired area, as well as the ease of ordering and paying after
the app is installed on their mobile device (Song & Jeon, 2017).
Customers of meal delivery services can use apps to search for and
compare pricing on a wide range of products. Customers may benefit from
purchasing food using mobile applications in a variety of ways, including
convenience, time savings, a range of purchase options, seller offers,
avoiding lengthy distances, door delivery, and guaranteed quality. The
majority of people who use digital food delivery apps are young, according to
Ayush et al. (2019). Customers are increasingly turning to delivery apps to
place meal orders. Customers also choose to make online payments using
digital wallets and UPI networks. The offers given by delivery apps are one of
the aspects that impact customers.
According to Parashar and Ghadiyali (2017), as cities become more
crowded, food delivery services and restaurants thrive in order to enhance
sales and clientele. As the use of smartphones and mobile applications
develops, there are opportunities for food delivery apps in the business. In
today's market, social media and other payment options can help service
providers attract more customers/ Because of changing lifestyles and dietary
habits, as well as hectic job schedules and an increase in disposable income.
The simplicity of ordering online, combined with the appealing service
provided by meal delivery service providers, has resulted in a constant
expansion in the user base. On the other side, the enormous demand for food
delivery services confirms the detrimental environmental impact that climate
experts warn about. Emerging economies appear to be on a path where
service production and consumption will outpace manufacturing, potentially
matching or exceeding environmental impact (Reddy & Aradhya, 2020;
Matthew et al., 2021).
Using food-delivery aggregators, diners can compare menus, read
comments, write ratings, and place orders from a variety of restaurants with a
single click. Some of India's most popular online food-delivery aggregator
(OFA) apps include Swiggy, Zomato, Food Panda, and Tiny Owl. For online
meal ordering, websites have given place to smartphone apps. It is well
recognized in e-commerce that web atmospherics provide indicators that elicit
cognitive and emotive states in consumers' brains. Mobile applications on
smartphone devices have transformed customer experiences by serving one-
to-one or one-to-many customers inexpensively and effectively, providing a
range of culinary options, and lowering diners' wait time. Restaurant owners
can use these apps to cut operational costs, instantly promote awareness,
and offer incentives (Verma, 2020).
Purpose of the Study
The purpose of this phenomenological study is to discover the
customer experiences at Santo Tomas, Davao del Norte. At this stage in the
research, the customer experience will be generally defined as anything about
a company that influences a customer's impression and thoughts about it.
Research Questions
This study seeks to answer the following questions:
1. Is there a difference in customer experience between offline and online
food delivery services in Santo Tomas?
2. How will the customers of Santo Tomas cope up with the effects
brought by the transitioning of food delivery services from offline to
online platform?
3. What are the customers’ insights on shifting from offline to online
platform in food delivery services?
Theoretical Lens
The research study would be based on many theories. The theories that
will be used in this study will serve as the foundation for its completion. In this
chapter the researchers focus on the 3 theories that support the said study
regarding the Customer Experience: A Phenomenological Study of the
Conventional and Modern Food Delivery Services in Santo Tomas, Davao del
Norte.
This study is grounded on Severin and Tankard's U&G theory (1997). The
aforementioned idea allows scholars to comprehend why and how users
actively seek the employment of a given medium to meet their demands. U&G
theory was developed in 1944 and is widely used to determine the causes
behind users' preference for a particular sort of media (Katz et al., 1973). It
was utilized as an extension of needs and motivation theory in 1954. (Katz et
al., 1973). This theory supported our study by understanding people's intents
to avail food delivery services and discover their experiences.
This research is affirmed by Oliver and De Sarbo's Expectation
Disconfirmation Theory (1988). The theory's application ranges from
consumer behavior and marketing (Kopalle and Lehmann, 2001) to human
resources (Horn and Salvendy, 2006), leisure behavior (Madrigal, 1995),
medicine (Joyce et al., 2003), psychology (Phillips and Baumgartner, 2002),
service quality (Kettinger and Lee, 2005), marketing (Uzir et al., 2020; Yi et
al., 2021). This satisfaction is determined by the quality of service offered by
delivery persons while delivering purchased products to online consumers, as
well as how they view the service provided by delivery personnel and the level
of trust they have in the personnel. It goes without saying that if the perceived
quality of home delivery service and consumer value exceed expectations.
This is justified by Sheth et al., (1991) Theory of Consumption Values
(TCV), which provides a formal theoretical lens for investigating consumption
values. Consumers’ motivation to use OFDs is driven not just by convenience
but also by consumption values which are both utilitarian and hedonic. As a a
result, adopting TCV in the context of EDT will provide significant insights
about relevant customer behavior.
Significance of The Study
The administration is the nucleus of the effective organization basically
for the school. It is important to gain insight about the conventional and
modern food delivery services for the following reasons.
To the Students, the study would help the college students to gain
knowledge about the conventional and modern food delivery services.
To the Parents, the study will serve as a basis for the parents to
expand their ideas and help them to understand.
To the Researchers, this study will provide the teachers additional
knowledge on what strategy to use in educating the students about the two
dimension of food delivery services towards the academic performance of the
students.
Furthermore, this study will not only give benefits to the following
mentioned above but also to the other factors that can affect each component
of beneficiaries which could be internally or externally.
Scope and Delimitation of the Study
This research is focused on the experiences of consumers who use
conventional and modern food delivery services during COVID-19 pandemic.
The researchers selected (Research Location) as their research location
because it is the most accessible to them. The sample scope comprises
people of all ages and genders who have previously ordered meals using
conventional and modern food delivery services.
As this is a phenomenology study, the limitation is related to its validity
and reliability. As a result, proper ethics were followed throughout the study's
conduct. To safeguard the respondents' identities, pseudonyms or nicknames
were used instead of their real names. In order to register their participation in
the study, the researchers additionally secured parental consent from
respondents under the age of 18. The respondents are fully aware of the
study's substance, and the researchers only asked questions that were
pertinent to the study, not those that may infringe on the respondents' privacy.
The data was obtained from the respondents' responses through an
interview, and the responses were voice recorded for verification and to
guarantee there was no manipulation in the replies. When the respondents
opted to withdraw for personal reasons, the researchers honored his or her
choice.
Furthermore, the researcher only included (number of participants)
individuals, and it is not safe to assume that the numbers reflect the whole
population. Since this research only included individuals from a single city, the
findings may not be applicable to other locations – not generalizable.
Organization of the study
This section represents the overview of Chapter 1 of the study. It
contains different parts associated with a brief description of the content.
Chapter 1. This presents the importance of the study, some
background information, and describes the topic of the technology
dependency of a student and the importance of technology nowadays. It also
represents the people who will benefit from the gathered information and the
scope and limitations of the study. It deals with different related pieces of
literature about technology dependency, the purpose of this study, and the
advantages and disadvantages of this study.
Chapter 2. This deals with the methodology and procedures the
researcher used to gather and analyze the data. A participant in the research
who will answer the question, or called as the interviewee. The data in this
study are gathered by interviewing and a group discussion. Honesty and
sincerity show that the researcher will seek the true reasons for an evaluation
of the experiences of the said participants. This also includes research
design, ethical consideration, and trustworthiness.
Chapter 3. This shows the findings based on participants' responses to
the research questions provided which will provide accurate information on
the phenomenological aspects of views. It also discusses more significant
results concerning the literature listed above. These are the views gathered
from the participants involved.
Chapter 4. This dispenses the foundation of finding and reliable
theories presented by authentic and well-known authors/researchers. This
also discusses the explanation of its involvement in the practice and further
research to be undertaken along with its concluding remarks.
Definition of Terms
For the reader to have a better understanding of the terminologies
used in the study, the following terms are defined conceptually and
operationally.
Modern Food Delivery Services- Food delivery is a courier service in which
food is delivered to a customer by a restaurant, store, or independent food
delivery company. An order is often placed via the website or phone of a
restaurant or store, or via a meal ordering service.
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