Admin, G7
Admin, G7
18, 2021
  A new decade
for social changes
ISSN 2668-7798
 www.techniumscience.com
                           9   772668   779000
                                                                      Technium Social Sciences Journal
                                                                          Vol. 18, 404-417, April, 2021
                                                                                      ISSN: 2668-7798
                                                                             www.techniumscience.com
legiangnam.cs2@ftu.edu.vn1, thithuanan.nguyen@contracted.vpmbr.com.vn2
               Abstract. Food delivery apps (FDAs) have experienced a meteoric rise in recent years, especially
               amidst the COVID-19 pandemic and the resulting governmental orders for social distancing.
               Though FDAs have been attracting significant interest in Vietnam and other Southeast Asian
               countries, the related issues of these apps have not been fully studied by academics and
               researchers. Additionally, most previous studies of mobile apps in general and FDAs in particular
               have simply addressed aspects related to intention to use and initial adoption of Vietnamese
               people. Hence, this research aims to go further by examining customers’ satisfaction and their
               continuance intention to use (CI). Rather than being conducted on general customers as most
               previous studies, this study focuses on Millennials, a particular age group with distinctive
               characteristics, shopping habits and motivations (European Union, 2020). As this generational
               cohort proves to be the drivers for food delivery services, their crystal-clear insights when
               deciding to use FDAs continuously are undoubtedly valuable. This research proposed an
               integrated model incorporating UTAUT2, ECM, TTF and the variable of “Price-saving
               Orientation”. Based on the Structural Equation Modeling (SEM), the findings supported all
               hypotheses, with Performance Expectancy (PE) validated to be the most influential factor
               shaping continuance intention to use FDA amongst the Millennials in Ho Chi Minh (HCM) city.
               Theoretical contributions and managerial implications derived from these findings presented
               practical guidance for academics and key participants within the FDA-related landscape.
Keywords. Food Delivery App, continuance intention, UTAUT2, ECM, TTF, Millennial
        1. Introduction
        Within the fourth industrial revolution, technology has been ingrained into almost every
single facet of human lives, and the food and beverage industry is no exception (Deloitte, 2019).
Online delivery services are reshaping the industry globally and locally since the number of
consumers ordering food online in Vietnam skyrockets (Google and Temasek, 2019; Facebook
and Bain & Company, 2020).
        In fact, Vietnam’s food delivery market has experienced spectacular growth over the
last few years. According to the market research company Euromonitor International, food
delivery market in Vietnam was valued at USD 33 million in 2018. This figure is expected to
reach USD 38 million in 2020 and will sustain an average growth of 11% in the next 5-year
period. Besides, based on the market research company Statista’s reports, Vietnam’s revenue
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in the food delivery market is projected to amount up to USD 302 million in 2020. Revenue is
expected to witness a compound annual growth rate of 16.5% during the 2020-2024 period,
resulting in a market volume of USD 557 million by 2024. Despite this huge market value,
compared to other Southeast Asian countries such as Indonesia and Singapore, the size of this
market in Vietnam is still very small (Google and Temasek, 2019). Yet, thanks to that,
Vietnamese food delivery market is considered a "golden" market that attracts a plethora of
domestic and foreign investors.
        Among the predominant food ordering and delivery methods, food delivery applications
(FDAs) emerge as the most popular one, especially in the large metropolises such as Ho Chi
Minh City (HCM city) and Hanoi (Q&Me, 2020). This finding is in line with the major rate of
smartphone ownership (Q&Me, 2020), together with the growing trends of mobile application
usage and e-commerce spending in food category within Vietnamese market.
        Additionally, food delivery market is not only the playground of FDA providers, but
also a profitable landscape for food and beverage (F&B) merchants, who register their food stall
to provide food and/or drink via these platforms. Apparently, food delivery platforms enable
merchant partners to reduce their expense and streamline several cumbersome processes,
especially renting location, spending on advertising costs, and developing shipper workforce.
Additionally, F&B merchants can receive consultancy from food delivery companies - in terms
of market research, packaging, delivery, to name a few – so as to optimize their selling process.
        In the light of COVID-19 pandemic and governmental orders for social distancing, food
delivery service in Vietnam has been on a much more meteoric rise (Q&Me, 2020). Survey by
ride-hailing firm GoJek reveals that food delivery demand has risen sharply. From February
2nd to 9th 2020, there were over 650,000 food orders on the platform, with the numbers
increasing every day.
        As regards consumers, for a large number of people, ordering food online has become
a natural habit. There has been a remarkable change in consumers’ lifestyle owning to rising
urbanization and busy work schedules, which has obligated them to opt for convenient food
delivery options (IMARC, 2019). This is especially true when it comes to the Millennials (those
born from 1980 to 2000), who are time-starved and convenience-seeking consumers (Intage
Vietnam, 2020). Specifically, recent surveys highlight that a large percentage of respondents
order foods through FDA apps at least once a week (Q&Me, 2020). Such a trend tends to
escalate during and even after COVID-19, as the eating out frequency decreased in account of
health concerns (Zhao and Bacao, 2020).
        In view of the growing usage patterns as well as thriving delivery market with the
presence of a handful of FDA providers (Facebook and Bain & Company, 2020), it is a
prerequisite to figure the exact drivers behind consumers’ behavioral intention to continuously
use these food delivery apps. However, given that online food delivery apps have been attracting
significant interest in Vietnam and other countries in the Southeast Asian region, the related
issues of these apps have not been fully studied by academics and researchers. Additionally,
most previous studies of mobile apps in general and FDAs in particular have simply addressed
aspects related to intention to use and initial adoption of Vietnamese people. Although first-
time use is a crucial indicator of information system (IS) success, it does not necessarily
promote the desired managerial outcome unless such use does continue in the longer term
(Lyytinen and Hirschheim, 1987; Bhattacherjee, 2001). Therefore, this study entitled “Factors
affecting the continuance intention to use food delivery apps of the Millennials in Ho Chi Minh
city” will go further by examining customers’ satisfaction and their continuance intention to use
(CI), especially when most FDAs have been already popular and well adopted by customers.
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From that, some viable managerial implications and recommendations can be proposed so as to
ignite future growth of FDAs and food delivery market as a whole.
       2. Reearch Methodology
       The detailed research process consisted of two main phases, namely preliminary
research and official research, which was demonstrated in Figure 3.1 as follows:
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       3. Results
       3.1. Statistical description
       3.1.1. Descriptive statistics analysis by demographics factors
       Demographic factors included in this research were Gender, Age, Monthly income,
Educational background, whose descriptive statistics were exhibited in Table 1.
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                           10,000,000 VND -
                                                              219                   47.9
                    below 15,000,000 VND
                           15,000,000 - below
                                                              90                    19.7
                    20,000,000 VND
                           20,000,000 VND and
                                                              30                    6.6
                    above
                           Total                              457                   100.0
                           High school                        23                    5.0
                           University/College                 391                   85.6
       Education           Master                             36                    7.9
 background                Doctor of Philosophy
                                                              7                     1.5
                    (PhD) or Post Doc
                           Total                              457                   100.0
      Source: Data from IBM SPSS Statistics 20.0, 2020
        In terms of Gender, the majority of responses are female, which is consistent with survey
by Statista (2020) and could be explained by that Vietnamese female usually take slightly more
interest in ordering food online than male counterparts (Kim Dang at el., 2018). As for Age, the
largest age group of respondents within this research is 20 - below 25 (40.3%), which is
followed by 25 - below 30 age group (24.3%). This demographic profile is quite reasonable as
consumer group from 20-30 typically emerges as the major purchasing power for online food
delivery, according to Intage’s 2019 report on Vietnamese Youth Lifestyle. Regarding Monthly
income, most respondents have the income from 10,000,000 VND to below 15,000,000 VND
on a monthly basis, indicating that respondents have decent or mid-high living income to spend
on FDAs. In regards to Educational background, respondents already having
University/College degree account for the largest proportion, standing at more than 85%. The
majority of respondents with high education background could be seen as an advantage because
this may probably ensure a certain higher level of common understanding and knowledge as to
mobile application and also enhance the likelihood of submitting well-thought responses with
higher accuracy.
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11 variables that have Cronbach’s Alpha coefficient within the range of 0.80 – 0.95,
particularly, CI, SI, COF, SA, PE, HB, PO, HM, FC, EE, in the descending order. These figures
denote a very good level of internal consistency of variables for the research model. Plus, the
lowest Cronbach’s Alpha coefficient obtained is also as high as 0.794, indicating a highly
respective extent of reliability.
 CFI ≥ 0.9: Good; CFI ≥ 0.95: CFI               = PCLOSE ≥ 0.01: Acceptable; PCLOSE =
 Very good                    0.995               PCLOSE ≥ 0.05: Good        1.000
         Source: Data from IBM SPSS AMOS 24.0, 2020
        It is apparent that all the model-fit indices of measurement model respectively exceed
the common acceptance levels, particularly three indices (CMIN/df, GFI, PCLOSE) reach good
level and the other two (CFI, RMSEA) are validated to be very good. These figures demonstrate
a respectable fitness of the measurement model.
        As for Standardized Loading Estimates, factor loading values extracted by 41 scale
items exceed the acceptance level of 0.5. Among them, 36 items having factor loading of above
0.7, reaching the ideal value for reliability test. These figures indicate all measurement items in
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the model are statistically significant. As for other indices of reliability, convergent validity,
discriminant validity test, CR and AVE indexes of all variables are higher than 0.7 and 0.5
respectively, with the highest CR value being around 0.874 (CI) and the highest AVE value
being around 0.633. Hence, the model is validated to have no concerns over Reliability and
Convergent validity. Furthermore, the square root of the AVE (SQRTAVE) values of all
constructs is greater than the Inter-Construct Correlations. Plus, MSV value of a certain
construct is also lower than its respective value of AVE. Hence, it can be inferred that
discriminant validity is established.
        Figure 3 illustrated the standardized regression weights, which indicated the impact
magnitude of other variables on the dependent variables, including CI, SA and PE. As for CI,
among eight factors, PE (β=0.270) is validated to be most impactful, followed by SA (β=0.234)
and HB (β=0.197). Besides, COF proves to have the greatest influence in shaping SA with
β=0.238, with the second and the third being PE (β=0.197) and EE (β=0.183). Regarding PE,
this variable is significantly influenced by EE (β=0.595), TFF(β=0.233) and COF (β=0.42)
respectively.
        As for Squared Multiple Correlations (R2), for CI, its R2=0.738 suggested that 73.8% of
the total variation in CI can be explained by the model, particularly by 08 factors (PE, EE, SI,
FC, HM, PO, HB, SA). Furthermore, with R2 being equal to 0.550, the independent variables
(namely, PE, COF, EE, SI, FC, HM, PO) have statistically significant explanations for 55% of
the variation of SA. Likewise, when it comes to PE, three variables of TTF, COF, EE can predict
around 44.8% of variation within PE, whose R2 stands at 0.448.
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         4. Result Discussion
         4.1. Performance Expectancy (PE)
         PE stands as the strongest determinant of CI and the second-strongest determinant of
SA, which manifests the importance of the cognitive and functional benefits of FDAs from the
HCM city Millennials customers’ perspective. There present several appealing features
provided by FDAs that allow for more mobility and flexibility in ordering food online compared
to the traditional ways such as visiting restaurants in-person or telephoning them. Hence, FDA
users, especially the tech-savvy Millennials, are enabled to save a great deal of time and effort.
Such results pertaining to the significant influence of PE parallel those reached by Yeo et al.
(2017), Okumus et al. (2018), Roh and Park (2019), Palau-Saumell at al. (2019), Lee at al.
(2019), Alalwan (2020) on FDAs and other kinds of food apps such as diet apps or apps for
restaurants.
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        5. Conclusion
        Analytical findings confirmed the validity and reliability of all measurement scales as
well as validated the proposed model. 08 proposed factors (namely, PE, EE, SI, FC, HM, HB,
PO, SA) could explain 73.8% of the total variation in CI, which indicated the respectable
predictive power and applicability of research model on the field of technology continuance
usage. Other two variables of TTF and COF were also statistically proved to indirectly
formulate CI via their relationships with PE and/or SA. On this ground, the author proposed
some recommendations for key market participants, including FDA providers, F&B merchants,
traditional restaurateurs and policy makers. Accordingly, this study contributes with some
theoretical and practical implications as follows:
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should be taken into close consideration. Compared to eating out, ordering food online does not
allow consumers to see the product firsthand before making purchasing decision; thus, authentic
information and image for specific meal portion are “must-haves”. Poor quality of food not only
hurts food stall’s reputation but also indirectly affect users’ perception over FDAs negatively.
         Furthermore, intuitive and user-friendly technical design should be applied for FDAs.
FDAs’ interface, functional features, or in-app navigation should be designed in a way by which
users can effortlessly and instantly have what they look for. Plus, further app update or
continued development of other functionalities are welcomed, yet should not require much
effort and adaptation from users.
         FDA providers should also consider inviting key opinion leaders and launching referral
and affiliate programs. Accordingly, FDA users would be incentivized to refer the platforms to
their friends, colleagues or relatives in exchange of one-time referral payment or bonus;
meanwhile, FDA providers can also run some affiliate programs, partnering with relevant
affiliate sites in the mechanism of commissions.
         Regarding the hedonic aspect, since users’ sense of pleasure when using FDAs partly
comes from the novelty and innovativeness of these platforms, developers may consider
continuously innovating these apps’ design along with developing entertaining mini-games, to
constantly deliver enjoyable users’ experience. Focus of promotional content within a long-run
marketing campaign may be directed towards various facets of hedonic utilities associated with
using FDAs.
         Acknowledging the role of price-saving orientation, financial incentives and loyalty
programs should be promoted for FDA users. FDA providers and their F&B partners should
collaborate on how to establish the most optimal pricing scheme for food items. Charging fee
for using FDAs is also strongly discouraged as additional expenses incurred by app users likely
result in dissatisfaction and discontinued usage. This brings no incremental benefits to FDA
providers in the long run.
         To shape users’ habitual usage patterns, some technical features can be embedded into
FDA systems. Based on recent reports by Intage Vietnam (2020) and Q&Me (2020), lunch and
teatime are two occasions when food delivery is most utilized, particularly among the age group
of 20-30. Given that, FDA providers may consider adding push notifications, which recommend
users’ favorite food choices for lunch, or offer discounts tailored uniquely to food order at this
time.
         Meanwhile, with a view to facilitating users’ efficient access and ordering of food items
through FDAs, regular system monitoring, maintenance and update to verify the reliability and
platform quality of FDAs should be necessitated. Some common issues of mobile apps such as
slowing loading speeding and overwhelmed capacity at peak hours should be timely detected
and resolved. In addition to basic functional capacities, FDA providers can take use of major
advantages of mobile technology, such as personalization, responsiveness, ubiquitous
connectivity, and active control, to design further advanced technical features with a view to
enhancing users’ experience of ordering food.
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future researchers should employ random sampling techniques; besides, wider research
geographical scopes, larger sample size, along with longer duration for conducting research are
highly recommended so as to extrapolate to the target population and produce more
representative results.
        Secondly, the research focuses on the FDA users’ perspectives only, not approaching
other organizational market participants such as FDA providers or F&B merchants. For this
reason, some insightful data may not be taken into account and hence, certain proposals by the
author may not be adequate. Future studies should invest time in gathering additional
information from these groups, as well as focus on further aspects concerning platform owners
and delivery personnel engaged with FDAs.
        Thirdly, this study approached third-party FDAs as a whole, without distinguishing the
differences among various platforms, which may be subject to certain level of inconsistency in
responses by users of different FDA platforms. Such differences should be put into perspectives
in future studies to deliver more practical managerial implications for one specific FDA
provider.
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