International Journal of Customer Relationship Marketing and Management

Volume 13 • Issue 1

Customer Satisfaction and

Loyalty for Online Food Service
Providers in Jharkhand State:
An Empirical Study
Anand Prasad Sinha, Birla Institute of Technology, India
Praveen Srivastava, Department of Hotel Management, Birla Institute of Technology, India
Ashok Kumar Asthana, Sarla Birla University, India
Sanjiv Kumar Srivastava, Birla Institute of Technology, India
Aditi K. Nag, Birla Institute of Technology, India

ABSTRACT

In the food sector, customers have been voting by their feet for ages. However, due to the technological
changes in the present COVID-19 pandemic, the trend has changed rapidly. Customers are confined to
their homes, and technology has emerged as the only savior. An increase in the number of downloads
of food ordering apps is an indication of both the popularity of the app and helplessness of the present
age customer. With restricted movement, they have these apps to either get the food delivered at their
doorstep or take away with pre-orders. Hence, it becomes imperative for the app designer and food
service provider to brainstorm and develop an app that can focus on the customer rather than forcing
their design and interface on the customer. In this backdrop, the present study is a novel attempt that
focuses on the relationship between app quality and customer satisfaction.

Keywords
App Design Quality, Customer Satisfaction, Loyalty, Service Quality

1.0 INTRODUCTION

Ever advancing technology has contributed significantly in revolutionising the process of food
delivery service ordered through mobile app and online. The new technology has played immense
role in satisfying ever increasing and changing customer’s desire. It has enabled the accessibility and
availability of wide range of prepared food based on the customer’s taste and preference, has changed
the lifestyle. Slowly and gradually the regular use of technology has increased the dependency as
it has moved the service provider closer to its customer, right up to the doorstep. The nationwide
search for convenient ways of purchasing involving lesser cost and effort are making the citizens
to drastically shift in favour of online ordering. Convenience of consumer is the point of attraction
as it simplifies the process and make the process simple as few clicks on latest gadgets and devices
like tablets, or laptops. In this mobile world, where everything is just a click of mouse away, life has
never been so easy and simple where everything is available online. Being a multi- billion dollar
industry,the food industry is growing at a quick pace than any other industry now a day. Quickly

DOI: 10.4018/IJCRMM.289204 *Corresponding Author

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realising the opportunity, the experts are making serious effort in developing effective, efficient and
user-friendly apps and software for the convenience of both service provider and the consumer. The
technology is helpful not only for order and service delivery but also in managing efficient billing
system. Continuing with the trend, the introduction of the tech-freaks with more advancement in the
restaurant software has given high hope for rise and flourish of restaurant sale.
Food industry is a global industry and people around the world wish to have various tastes
available around the globe. Technology has enabled consumer to be more aware of the availability.
Though food is a necessity for survival, but it has become more than just survival and essential part
of lifestyle. Its demand is continuously increasing and will never sink. More and more restaurants are
coming up with different concepts and adapting pioneering techniques for attracting and reaching out
to the potential customers. Online food ordering system techniques have made strides in simplifying
tasks for restaurants as well as the customers. Recent report suggests that 60% of millennial order
food through their desktops and 40% prefer ordering via their mobile. This transformation in food
ordering system is due to the level of comfort and ease encountered by the customers when ordering
via apps instead of calling. Another reason for ordering via online apps is that the orders get coupled
with coupons or promotional offers. Apart from this, the time engaged in delivery of food and related
functions as a worthy reason for customers when no plans on what and where to eat is readily available
with them. It is a well-established fact that the online order are at its peak during lunch dinner time,
and it highlights convenience of customers.
Therefore, this current study investigates the relationship impact amid customer loyalty and
satisfaction with mobile app design quality-comprising of info quality, safety, privacy and safety in
payment arrangement as well as service quality comprising of courtesy, responsiveness, delivery
process system, and reliability as critical factors for satisfying customers and increasing their loyalty
in favour of online food service providers. On this backdrop, the paper showcases the literature that
integrate the factors determining conceptual model and tested five hypotheses. In the later result with
help of AMOS software are proposed and the goodness of fit is highlighted. Theoretical and practical
implications are also included later in the paper.

2.0 PROBLEM STATEMENT

The most common phenomenon is that owing to variable timetable and busy scheduled for cooperative
consumers as well as various university both students and their faculty during pressure of examination
process, it could be more difficult to decide when and where to have their lunch and there is just a
limited time for their meal. Even most people who are busy and leave early in the morning to reach
their workplace travelling a quite a distance prefer readymade food through online and the situation
becomes more worse when both husband and wife are working. There-fore, it becomes imperative for
online food delivery operators to maintain quality delivery system, timeliness and accuracy enabling
the customers to upload their time of requirement. The system will automatically recommend suitable
choices of different restaurants available in the specific time, and the application will have less
possibility to avoid behaviour failure while entering the system. Many people are not well acquainted
with such modern technology apps so it is important that the mobile apps and software should be
user friendly online food ordering system.

3.0 OBJECTIVE THE STUDY

• To understand the impact of online food delivery service on customer satisfaction.

• To identify key success factors for online delivery service and evaluate the significant relationship
amid customer loyalty and satisfaction.

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4.0 NEED OF STUDY

This article will majorly focus on how the application design and service quality leading to development
of satisfaction and loyalty of the customer. The research paper focuses on user friendly quality of
app design and software and identifying factors contributing to satisfaction and loyalty of customer.
The research will enable the customers to understand features of well-designed app and also for the
service provider to know the customers need regarding designing of appropriate and suitable apps
for making online order.

5.0 LITERATURE OVERVIEW

Presently, the contribution of world service sector is 64.80% in GDP. The growth of digital know-how
has played a significant character in reshaping business of food service industry and there is rapid
growth in employment in digital sector. The advent of user-friendly technology has enabled more
people to place their order online for shopping and it is increasing day by day. It is not just fashion but
it has become our way of life, Like Zomato and Swiggy are the most leading and popular applications
in the field of online food service sector.
In order to meet the customer’sa nticipations, apps are nowadays imparting amplified services
and facilities to the customers. This scenario is not just existent in one country but all across the
globe. Being apps up to date with the customers’ anticipations helps each firm maintain customers
to a better extent.
The ease of internet access and wide use has encouraged business organisation to encash the
opportunity to interact and customise their service. The net banking and mobile app platform has
facilitated consumer to order online food service. The platform has immensely benefitted the online
food service delivery operators. The easy access of consumer to the service provider has led to frequent
and reliable preferred purchase. It becomes more significant for busy person as they can get meal at any
place and time without any waste of time. Previous literature on food delivery service has concluded
the importance trust, satisfaction and loyalty as key determinant for the success of offline business.
However, in the recent studies research scholars have discovered that the online platform has facilitated
good opportunity for interactive and customised marketing (Wind &Rangaswamy, 2001; Burke,
2002). The Internet and mobile app creates a spontaneous shopping network (Phau and Lo, 2004).
Consumers has the option of surfing internet to gain idea and knowledge about various alternatives
regarding quality and price to meet their expectation and make a favourable decision (Singh, 2002) in
addition to information from peers and other social sites like twitter and facebookfor buying decision
(Herring et al., 2005; Bernoff and Li, 2008). Further, App design quality is considered as a success
and significant aspect for online marketing setting (Marcus and Gould, 2000), so an appropriate as
well as suitable design needs to be created to align with local culture and language (Gommans et
al., 2001).Another important key factor i.e. customer satisfaction has been studied in the framework
of online marketing success (McKnight and Chervany, 2002) as it contributes to maintaining long
term viable relationship with clienteles (Morgan and Hunt, 1994). Studies are also conducted about
privacy/security, information quality and efficient payment system in the area of online and mobile
App marketing (Liu et al., 2008) and emphasised on the effectiveness of service quality, customer
satisfaction and loyalty and app design quality. Plethora of previous studies has brought into light
the inter-relationship between customer services, their satisfaction level and online delivery (Cyr et
al. 2008; Liu et al., 2008; Shankar et al., 2003)

5.1 Indian Food App Scenario

There has been huge growth in the number of online food service providers. The food market size in
India was supposed to extent to Rs. 42 lakh crore by 2020, reported by BCG, before the pandemic
(Covid 19) broke out. The food service sector is coming up with lots of new and innovative system

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for the convenience of customer to attract and retain them. Still there is sufficient space for the new
players in the market to target specific segment with different business model. Food tech is the current
topic of discussion now a day in the start-up town. Certainly, food delivery business has great scope
for growth in future and food-tech start up is just a beginning.
Numerous apps available in the Indian market are:

• FoodPanda
• Zomato
• Swiggy
• Box8
• Fasoos

Table 1. The various food apps available in India

As per Gloria food, the key benefit of online food ordering is that food distribution market is
expanding and people are downloading these Apps on their smart phones because these app have
easier menu to handle which also create substantial savings during order and can be installed without
any hassle. Food Panda is a classic example that introduce the most innovative and up-to-the-minute
food sensation which is here to stay (Suryadev Singh, 2018) and there are many more this type of
online food delivery app worldwide but Food panda is a worldwide online food delivery market who’s
headquarter is located in Berlin, Germany. It is also famous as Hello food in different parts of the
globe. Bhavna Singh (2015) remarked that Food panda evolved out in India since May 2012. Its major

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venture started with the acquisition of Tasty Khana that came into existence in Pune city in the year
2007. Presently it has marked its presence in 200 cities and has a partnership with 12000 restaurants. 
As per the January2015 (Report of The Times of India), Food panda had no single purchaser
even with a lowest value tag of $10-15 million. The firm sacked 300 individuals in December 2015,
which accounts for 15% of its personnel. 100 employees were laid off by Tiny Owl in its Mumbai and
Pune offices in September 2015, followed by sacking off 300 employees by Zomato in the month of
October. The entry and exit of UK based food firm ‘Just Eat’ was so fast that it is comparable with
ordering and receiving Pizza. This market condition shows that in spite of having huge opportunity for
the growth of online food service delivery, there are challenges to sustain. Customer’s requirements
must be addressed on every aspect to sustain and flourish. On the basis of the literature support a
proposed conceptual framework model has been developed and significantly finds co-relation between
customer loyalty and satisfaction on the online food delivering application. The model as follows:

Figure 1. Proposed conceptual model

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Table 2. List of indicators

Sl No.   Items Lit. Support

    App Design Quality  
1 IQ Information Quality Kim and Lennon, (2010)
2 SS Safety and Security Flavian et al., (2006).
3 MOP Mode of Payments Chen and Chang, (2003)
    Service Quality  
4 DS Delivery System Dholakia and Zhao, (2010)
5 CS Customer Service Burke, R. R. (2002).
6 Res Responsiveness Kim, W. (2009).
7 Rel Reliability Thang, et al. (2003).
    Customer Satisfaction Anderson and Srinivasan (2003)
  Customer Loyalty Srinivasan, S. S et al. (2002)

The subsequent section discusses research of total variables and their relationships in the study,

5.2 App Design Qualities

Social sites and networking is gaining popularity in today’s age information technology, where
everybody has cell phone in their hand. Mobile phones are continuously being accompanied with
innovative features and application implemented in various forms. Now a day mobile are not just a
device to make and receive a call, it is just like a mini computer. Various personalised information
can access to make appropriate decision like going through the reviews about a particular service
provider. It is helpful for making right decision about the choice of food or menu either for ordering or
just before visiting restaurant for meal. Customer often uses their smart phones to gather information
about food and service and also feedback about the outlet (Liao, C. et al.,2006). Earlier, a customer
had to rely on either on their past experience or on the suggestion of friends or relative who has
visited any restaurant. On contrary, recent development in technology especially in mobile world,
with the help various application one can easily find suitable avenues with the support GPS system.
Once the application in launched by the user, a list of restaurants is displayed on the phone within
the current location. Further the selection of a restaurant by the user reveals more details about the
restaurant selected. This helps the user get the entire menu of the selected restaurant at hand. Each
food item displayed are accompanied by content information which assists user to get a better idea
before placing order over the phone.

5.2.1 Information Quality

Information quality (IQ) is the quality of the fact and content in its system. It can be defined as “The
fitness for use of the information provided”. In-depth product information enables a customer to take
better buying decisions and improved customer satisfaction (Park and Kim, 2003). It is those facts
in the information that educates customer and makes it saleable in the market. Hence-forth, integrity
of information must be maintained. Ballantine (2005) concluded that there is a positive correlation
amid app information and satisfaction of customer. Flavian et al., (2006) suggested information
design must include navigation in website structure. If it is not properly designed, a customer will
be dissatisfied due to inconvenience and may leave the app (McKinney et al., 2002). Easy access to
available information minimises search time and therefore improves customer satisfaction (Glazer,

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1991; Lynch and Ariely, 2000), which in turn leads better informed customer facilitating favourable
decision making.

5.2.2. Safety
Safety in relation to purchase and use of app is an important factor which every customer wish. It
is primary concern of every customer for safeguard of their privacy and money. Willingness and
intention for the purchase through app is highly influenced by the degree of trust and loyalty. Safety
and security is the most essential concern for every online customer (Flavian et al., 2006). Every
consumer likes to be safe while using online app and safety on use of application instils confidence.
Privacy and security features in the use of surfing websites and app is valued more over the perceived
value of the product and service and is essential antecedent for customer satisfaction that has positive
influence on the behavioural intention of consumer purchase decision (Mukherjee and Nath, 2007).
Many studies have emphasized on privacy, security and safety aspects on all e-commerce service
provider platforms and are major concern for customer and it should be assured (Sathye, 1999; Liao
and Cheung, 2002; Poon, 2008). Moreover, privacy is considered to be key factor in creating online
customer satisfaction (Hoffman et al., 1999) and security features adopted by app design promotes
the trustworthiness in customers (Cheskin Research and Studio Archetype/Sapient, 1999).

5.2.3 Mode of Payment

The mode of payment refers to the various methods of payment by which the buyer buys the product
in exchange of money. Online shoppers are considered to be low in tolerance for providing feedback
on system (Chen and Chang, 2003). It is predicted that the waiting time of online customers are
too small as short as 8 seconds. A webpage design mustponder over appearance, loading time and
functionality (Weinberg,2000). Hence, reliable website design must save the time quantum of the
transaction period of customers. Or else, the customers might hesitate to practise the website or any
other app design payment system. Throughout information search, information quality, website /
App design, payment system and its security perform significant characters in defining customers’
satisfaction and online experiences. Payment at that time is overseen by paying with a credit or debit
card by the app or website or in cash at selected restaurant when arriving to pick it up.

5.3 Service Quality

An evaluation of how well the service offered meets needs of the customer. Service providers also
analyze the level of service offered to their clients to enhance their efficiency, detect issues quickly
and determine the satisfaction of clients more effectively. Quality service is a type of satisfaction
attitude which is a basic measure for transactions. The perception of the customer about quality of
service also involves food quality, presentation and proper packaging along with timely delivery.
Food quality has positive association with customer satisfaction. Food and service quality involving
physical environment in service process are crucial element that determines customer satisfaction
and predicts the eating out intention of customer (Qin and Prybutok, 2008, 2009).

5.3.1 Delivery System

The aspect associated to food delivery as well can be a motivating factor of operatives to consider an
in-house delivery crew. Many restaurants provide in-house delivery within 5-10 minutes to uphold
freshness of cooked food and certain degree of temperature. This is the reason they cater to nearby
localities and the delivery process is controlled by themselves, in case of an external party delivery
system the maintenance of quality standards of food is a question mark. It may also lead to addition
of another risk parameters like delay in delivery and deterioration on quality of food as a result of
temperature fluctuation. For a developing country with zeal of technological advancement and shifting
customer preference the online food delivery practices is exclusively suggested. It has been noticed
that due to non attractiveness towards cooking50.8% of individuals order food delivery service as it

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facilitates quick services either to their home of office premises in less than 1 hour (Crosby, L. A.,
et al., 1990).

5.3.2 Customer service

It refers to the process which takes care of the grievances and complaints. This is a strong point in
creating meaningful customer relationships which can form the foundation for customer satisfaction
and loyalty. An evaluation of how well a service offered conforms to the standards of the consumer.
Service providers always evaluate the quality of service they provide through feedback and survey
to improve service for better customer satisfaction (Burke, R. R. 2002). Technology has completely
reshaped the overall service process that has enabled new dining experience. Customer service now a
day is not confined to only food quality and its presentation, it calls for frequent interaction to better
understand the customer and provide customized product to maintain continuous and long-term
relationship. To maintain better customer relationship management the service provider needs to be
aware of innovative changes due latest technology and implement it to get edge over competitors. As
the customers are better informed and aware of changing service, their expectation is ever growing,
and the service provider must take effort to meet customer’s expectation. Customers expect extra
perceived profits related with the online delivery service owing to the development of fresh entrants.
It is similarly a driving factor for trades to keep examining for innovative means in familiarizing to
the modifications in the foodservice industry.

5.3.3 Responsiveness
It is the ability to not only perceive, but also swiftly respond to the changing needs of customers.
(Kim, W., 2009). Dimension responsiveness has paramount correlation to loyalty. Consequently,
to accomplish customer loyalty, the companies need to pay consideration to deliver the service
instantaneously. It is too assumed that individual innovativeness without consideration of human angle
and too much application of high technology in place of emotional intelligence may moderate loyalty
and satisfaction linkage adversely. It is construed that the customer satisfaction-loyalty relationship
will be unfavorably affected for customers with high individual innovativeness since most of online
food service are youth who are commonly betrothed to high-tech behavior (Cheow, V et al. 2017).

5.3.4 Reliability
Home delivery service has gained popularity and lots of customer in the sites similar to malls,
offices and party orders for housing campuses. Most of the people are dependent on the online food
order and delivery option for the accessibility and prompt delivery of food at home(Aggarwal, S.
&Srivastava, M. K. 2019).The fast food business in India is only about 2 decades old, and remains
largely unorganized. The food service organized sector is rapidly growing at faster rate and its matter
of time that major chunk of global investment would get in to this sector that will lead to huge impact
on ongoing food service business.

5.4 Customer Satisfaction

Customer satisfaction is the quantification of how pleased customers are associated with a firm’s
products, capabilities, and services. It is reflected by repeat purchase and positive word of mouth by
the customer. Information about Customer satisfaction is gathered from surveys and ratings from the
customer that may help the company’s to identify ways to improve or make changes in its product
and services. Customer retention, various studies have empirically inspected consumer satisfaction,
loyalty, and trust for B2C e-commerce services in several countries (Anderson and Srinivasan 2003;
Park and Kim 2003; Flavia´n and Guinalý´u 2006; Cyr 2008; Kim, Donald, and RaghavRao 2009).
On other hand customer satisfaction is one of the fundamentals of marketing concept where focus
is on fulfilling the needs and desires of customers (Kim, W., & Moon, Y. J. 2009). Harris, L. C., &
Ezeh, C. 2008) advocated that satisfaction was “the buyer’s cognitive state of being adequately or

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inadequately rewarded for the sacrifice he has undergone”. Customer satisfaction is a relationship of
customer’s expectation while encountering service at an interface and his or her assessment of service
quality. Customer satisfaction is an evaluative attitude (Hsu, S. H., 2008). Satisfaction of customer
is influenced by customer emotions and overall dining experience. Oliver’s (1989) model states that
satisfaction is achieved by reinforcement and arousal. It can be achieved at the point of transaction
during service encounter or for overall service. Customers evaluate the standard of service based
on their needs and expectation (McDaniel et. al, 2009). A customer is said to be satisfied when his
or her expectations and experience about the product or service is as good as it is supposed to be or
more than it after assessment (Hannu, Lassi& Mika, 2014).

5.5 Customer Loyalty

Customer loyalty shows the degree to which customers are dedicated to a business’s products or
services and how resilient is their tendency to select one brand over the competition. It is positively
associated to customer satisfaction (Srinivasan et al., 2002). Commonly, loyalty has been well-defined
as the repeat buying frequency or comparative capacity of same-brand buying. According to Oliver
(1997), customer loyalty is a deeply apprehended assurance to re-purchase or re-patronize a favoured
service or product continuously and unfailingly in the forthcoming. Thus, enabling repetitive purchase
of same brand, despite of any adverse or unfavourable circumstantial impacts and promotion labours,
prone to source switching actions. Customers are considered extremely valuable in e-commerce
business platforms. In the present age of throat cutting competition every outlet big or small is striving
for information and measures to make their customer loyal.

6.0 RESEARCH METHODOLOGY

Research Methodology is the division of science that postulates in what way research is done
scientifically and systematically. Various steps have been taken by the researcher to analyse the research
problem along with the reasoning behind them and trying to solve them. Elementary constituents of
research methodology are: Research Design, Questionnaire design, Sample Design, Data Collection,
Hypothesis of the study and Data Analysis& Interpretation.

6.1 Research Design

The present-day research is a blend of equally descriptive as well as exploratory research design.
The key drive of these exploratory studies is to articulate a problem for much condensed exploration
from an operational viewpoint. The current study is founded on equally exploratory and descriptive
analysis. The aim of exploratory study was to make precise and in-depth investigation about the leading
factors which affect outlook of clienteles concerning food delivery apps. The hypothesis testing was
done using the regression weights of respective relationships at significance level of 0.05 and 95%
of confidence level. All these tests were analyzed by the aid of Statistical Package for the Social
sciences (SPSS) and AMOS 22 as applicable. Primary data was composed using a questionnaire
and secondary data was composed from appropriate books, journals and other relevant documents.

6.2 Sample Design

For recognising the directed respondents inside the business, stratified random sampling method was
implemented. With respect to achieve representative samples of homogeneous clusters, diverse strata
of users were fashioned founded on their users. The field of study comprised of working people,
students academicians and research scholar from different cities of India. The sample size for the
study was calculated by using the formula

Sample Size = [X2 NP (1-P) / D2 (N-1) + X2 P (1-P)]

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X2 = Z value (e.g. 1.96 for 95% confidence level)

N = Population Size
P= Population proportion (In survey it is almost safest to stick with 50% distribution) that is 0.5
D = Degree of Accuracy (expressed as proportion) (.05) (Source: Robert. V. Krejcie, &
Daryle.W.Morgan (1970))

The chosen method for collecting data in this study is:

• Quantitative Research Questionnaire.

• Few Personal Interaction with the customer of food delivery apps.
• Data Sources: Primary and secondary data are used for the present study.
• Sample Size is 380

6.3 Data Collection

Primary data was composed through a questionnaire in Google form provided to 600 people through
mail and WhatsApp. Customers were asked to submit the filled questionnaire as per their convenience.
The total 521 filled questionnaire forms were retrieved out of which 141 forms were rejected due
to incomplete answer and some errors. Finally, 380 usable questionnaires 63% were retrieved and
considered for further analysis. The response was to be marked on the Likert Scale from 1 to 5 where
they had to mark on a scale of Strongly Disagree to Strongly Agree. In this study equally primary and
secondary data were used and structured standard questionnaire used. In primary data sources the
information are collected by questionnaire from the customer using these food delivery apps in some
industry as well as students of some university in pan India where as in the secondary data source the
information is collected about different apps, the industry situation, various portals from the internet,
journals, magazines ,books, annual reports. Collecting data for any study is the most important thing
because a worthwhile research presumes adequate, significant, accurate, dependable, and timely data.
Collection of the data which was initially supposed to be forthright statement collecting exercise
came out to be a challenging experience. In India data management is still not well organized. Unlike
the situation in developed countries the data collection in India requires considerable effort, time,
perseverance and patience. During the course of primary data collection, the following problems
were encountered:

• Problem occurs due to preoccupations of work of the respondents. Due to this time and availability
of the executives at times was scarce.
• Indifferent attitude of some of the respondents due to sheer lack of interest and awareness about
the objectivity and utility of the survey considering the activity as unproductive.
• Retrieving filled up response in right time.
• Long waiting time of data collection.

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Table 3. Sample size determination

Total Non-Response Received filled in Incomplete Responses Percentage

Questionnaires Questionnaire Responses considered for
Distributed Analysis
600 79 521 141 380 63%

Table 4. List of Company and University Surveyed

6.3.1 List of Company and University Surveyed

6.4 Hypothesis of the Study

The hypotheses formulated are mentioned below:

H1: App quality has significant impact on customer satisfaction.

H2: Service quality has significant relationship with customer satisfaction.
H3: App quality design and service quality has significant and positive impact on customer satisfaction.
H4: Service quality has indirect impact on loyalty of customer.
H5: Customer satisfaction has significant and positive and direct impact on Customer loyalty.

7.0 Analysis and Interpretation

The Analysis and Interpretation section will present the analysis part related to the determination of
validity and reliability of each construct.

7.1 Reliability Test

Reliability test talks about consistent and stable results in case of repetition of measurement of
phenomena (Carmines and Zeller, 1979). In simple words it could be explained as if in case repeated
measurement of the output of a same phenomenon is carried out then the result should be consistent

Table 5. Reliability statistics

Cronbach’s Alpha N of Items

.872 13

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(Peter, P.J. 1979).This test was done for internal consistency by using Cronbach’s alpha score. Nunnally
(1978) in his published work explained that the value of internal consistency should be more than
0.70. Cronbach’s alpha coefficient of reliability was found to be .855which satisfies the desired level
of 0.7 (Nunnally, 1978).

Table 6. Model summary of app quality

7.2 Test of Hypothesis

The testing of hypothesis has been calculated with the help of regression model as well as path model
is projected to examine the proposed hypothesis. To make the optimum likelihood projections for the
path coefficients, the study used AMOS 22. The hypothesis testing is as follows.

Hypothesis- H1: App quality has significant impact on customer satisfaction.

From the table it is evident that the value of R is 0.353, R square is 0.125 and adjusted R square
is 0.118, it signifies that the relation between app quality and customer satisfaction is significant. In
ANOVA table it can be witnessed that sum of square value at 3 degree of freedom is 40.850 and the
stated p value is less than 0.05 predicts that the model is statistically significant. From the above model
summary, it could be concluded that the correlation between app quality and customer satisfaction
is positive, but its intensity is low. Therefore, it could be interpreted that app design quality has been
effective use for their customer satisfaction, but relationship value is not so much high.

Hypothesis-H2: Service quality has significant relationship with customer satisfaction.

From the table it is evident that the value of R is 0.765, R square is 0.586 and adjusted R square
is 0.581, it signifies that the relation between service quality and customer satisfaction is significant.
In ANOVA table it can be witnessed that sum of square value at 4 degree of freedom is 191.872 and
the stated p value is less than 0.05 predicts that the model is statistically significant. From the above
model summary, it could be concluded that the correlation between service quality and customer
satisfaction is positive and its intensity is high. Therefore, it could be interpreted that Service quality
has direct and positive relationship with customer satisfaction.

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Hypothesis - H3: App quality design and service quality has significant and positive impact on
customer satisfaction.

From the table it is evident that the value of R is 0.770, R square is 0.593 and adjusted R square
is 0.586, it signifies that the relation between App quality design and service quality and customer
satisfaction is significant. In ANOVA table it can be witnessed that sum of square value at 7 degree
of freedom is 194.467 and the stated p value is less than 0.05 predicts that the model is statistically

Table 7. Model summary of service quality

Table 8. Model summary of app quality design and service quality

significant. From the above model summary, it could be concluded that the correlation between
App quality design and service quality and customer satisfaction is positive and its intensity is high.
Therefore, it could be interpreted that App quality design and service quality has significant positive
relationships to impact on customer satisfaction for food delivery service.

Hypothesis - H4: Service quality has indirect impact on customer loyalty.

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Table 9. Model summary of service quality indirectly impact on customer loyalty

From the table it is evident that the value of R is 0.214, R square is 0.046 and adjusted R square
is 0.035, it signifies that the relation between Service quality and customer loyalty is significant. In
ANOVA table it can be witnessed that sum of square value at 4 degree of freedom is 8.895 and the
stated p value is less than 0.05 predicts that the model is statistically significant. From the above model
summary, it could be concluded that the correlation between Service quality and customer loyalty is
positive and its intensity is low. Most of the customer need better service quality but if the product
quality is not up to the mark so every consumer mind has changed i.e. it indicates the low relationship.

Hypothesis - H5: Customer satisfaction has positive and direct impact on loyalty.

Table 10. Model summary of customer satisfaction and loyalty

From the table it is evident that the value of R is 0.901, R square is 0.811 and adjusted R square is
0.808, it signifies that the relation between Customer satisfaction and customer loyalty is significant.
In ANOVA table it can be witnessed that sum of square value at 6 degree of freedom is 158.032
and the stated p value is less than 0.05 predicts that the model is statistically significant. From the

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Figure 2. Conceptual framework model

Table 11. Computation of degrees of freedom (default model)

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above model summary, it could be concluded that the correlation between Customer satisfaction
and customer loyalty is positive and its intensity is high. Therefore, it can be predicted that customer
satisfaction has positive and direct impact on loyalty for food delivery service.

Result of Proposed Conceptual Framework Model

As stated above the number of distinct sample moments are 91, Degree of freedom is 60. In this
case 31 distinct parameters have to be estimated. The value of Chi-square (based on an identified
model) is found to be 115.522with a probability level equal to .000. It clearly indicates p-value to be
statistically significance.

Table 12. Convergent and discriminant validity

Convergent validity is about explaining the construct convergence that is this type of validity
explains those constructs that are having a high proportion of variance in common. Discriminant
validity represents the distinctiveness that is whether the constructs that was supposed to be distinct
are actually not related (Nunnally, 1970). Following the widely accepted literature by Fronell and
Larcker (1981) Average Variance Extracted (AVE) is used to evaluate discriminated validity in case
of any construct that exceeds the squared correlations between the constructs also the square root of
AVE should be more than that of the latent variables correlation. In the study, convergent validity
is evaluated to examine the degree of indicators coefficient and their significance (Anderson and
Gerbing, 1988). In the study impending, all loaded objects have significant and substantial loading
that is greater than 0.05 related to the concerned constructs. Discriminant validity is vindicated by
examining whether pairs of constructs are correlated less than unity. Based on degree of freedom, Chi
square is used to test the unity between the constructs. Chi square test is assumed to be significant
at the given level of significance (115.522).
The overall conceptual framework model has been established with the help of AMOS software
and to evaluate the relationship between App design qualities to Service quality and also check
substantial positive relationship amid customer satisfaction and service quality. Moreover, substantial
positive relationships are also seen not only amid the App design quality to service quality but also
check the indirectly significant relationship to the customer loyalty. The analysis of the results has

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Table 13. Overall model fit indices

shown in table no.10 provide an overview of the goodness of model fit. Cronbach’s alpha coefficient
of reliability was found to be .872 which satisfies the desired level of 0.7 (Nunnally, 1978). It was
observed that the result of overall model was excellent. The goodness of fit statistics for the model is
recorded here: (ᵡ2/df or CMIN/df = 1.925, P Value for Test of Close = 0.000, GFI = 0. .959, AGFI
= 0. .937, CFI = 0.984, NFI = 0. .967and RMSEA = 0. .063). Hence the model shows an overall
acceptable fit.
Now the regression weights result shows that all the indicators under the latent variable like app
design quality as well as service quality is statistically significant but indirectly service quality to
customer loyalty has insignificant i.e.431 which is greater than at significance level of 0.05 and 95%
of confidence level. The delivery time acts as a vital character in satisfying and holding clienteles.
Timing plays an important influence on the relationship amid satisfaction and online store features.
Postponed delivery past the general drill (e.g. one hour delivery) is ought to have a negative influence
on satisfaction irrespective of the weather and road situations. Delivery grows into becoming a
specifically significant character to non-store, comprising online, retailing wherever there is a time-
based segregation amid order assignment and delivery of ordered produce. Customer fondness is
the chief inspiring aspect for trade owners to involve with online delivery services as to furthermore
satisfy purchasers’ demands and needs.

8.0 MANAGERIAL IMPLICATIONS

Customer is the King of every business and food service is no exception. In a technological era in which
there is competition within service providers to deliver quality food, a new dimension of the quality
app and online websites has posed a fresh challenge. In order to increase the distribution channel, food
service providers have their own app and their own website apart from listing themselves in the app
for common food service providers. However, a dilemma about the customer’s experience and their
expectation need to be addressed. Further, during COVID-19 pandemic the dependence in these app
and website has increased many folds. Hence, it becomes important for the food service providers to
understand and deliver as per the expectation of the customer so that they do not lack behind others.

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Table 14. Regression weights: (group number 1 - default model)

      Estimate S.E. C.R. P Label

CSatifaction <--- SQ .097 .046 2.131 .033  
CSatifaction <--- ADQ .285 .060 4.781 ***  
CusLoyal <--- CSatifaction .861 .047 18.296 ***  
CusLoyal <--- SQ .019 .024 .787 .431  
MOP <--- ADQ 1.000        
Safty <--- ADQ 1.269 .090 14.075 ***  
IQ <--- ADQ 1.099 .080 13.802 ***  
Res <--- SQ 1.000        
CS <--- SQ .930 .038 24.319 ***  
Del <--- SQ 1.027 .049 20.798 ***  
CSL1 <--- CSatifaction 1.000        
CSL2 <--- CSatifaction .985 .043 22.826 ***  
CSL3 <--- CSatifaction 1.039 .040 26.005 ***  
Rep <--- CusLoyal 1.000        
Anr <--- CusLoyal .927 .059 15.823 ***  
Lps <--- CusLoyal 1.098 .056 19.764 ***  
Rel <--- SQ .919 .041 22.298 ***  

The finding of this study provides a deep insight to the management regarding the relationship
amid the online ordering platform and customer satisfaction. The following takeaway can be of use
to the management of various food service providers.

• The meal experience starts before the actual food service; hence, it is important the ordering the
food is as good an experience as consuming the meal itself.
• The qualities of image being uploaded in the app assist in creating the image of food item to
be provided. This further assist in ordering that particular food item. Hence, the management
should provide their best image of food products to the app/website designer. They should hire
professional food photographer to get the image captured.
• The description of the food products should be precise and accurate as it is next important
criteria for the food selection. The ingredient & cooking method should find the place in the
menu description along with the spices used.
• Word of mouth has given way to word of mouse. Hence, it becomes important that the app should
have the feedback section to collect the feedback from customer about their ordering experience.
This will assist in continuously improving the app.
• There should be several secured payment options in the app. However, the choice to save the
guest payment details should be within the guest control only.
• The app/website should load easily and should have least buffering time. Delay in loading may
lead to switching into another app. Huge data should not be used and for this the app interface
should be properly designed. Different section and sub section can assist in ensuring that the
app does not have to load all the section at once.
• Trust between the service provider and customer is important for a good experience. Hence, the
app should not mislead in any form. Specially, the price quoted should clearly mention if there

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is any additional applicable tax. Without that the customer may feel cheated, if they are asked
to pay more in case of Cash on Delivery orders or during online payments.

Customer Satisfaction has given way to Customer Delight which is possible if customer is satisfied
from all the aspect of food service. Hence, management should ensure that no stone is left unturned
in giving a good meal experience to customers. In the current pandemic scenario where customer is
unable to reach to their favourite eating joints, it becomes important for these food service providers
to reach to customer. Online service platform hence plays an important role in food service delivery.
Hence, management should ensure that these platforms are not only appealing but also have eased
to use and provide correct information to the customers.

9.0 CONCLUSION

In this study, effort was made to recognize the crucial success features which lead to loyalty in
online ordering setting. Outcome of the analysis shows that online service delivery companies have
emphasized on more on information quality, payment system and security/privacy of the customer
through app design. Proper and convenient app design ensuring the mentioned features will provide
base on which long term relationship can be established through improved customer satisfaction
which will lead customer loyalty. The outcomes of the empirical study offer support for the positive
relationships of app design quality with service quality, customer satisfaction as well as customer
loyalty. It is positively correlated and has strong impact. With growing economy customers are
busier than ever before and to overcome the stress of work load quality food service through safe
and convenient method cannot have better option for enjoyment. Further, the changing lifestyle of
eating out or an experience of different food with various tastes is increasing by day. This culture
has created a strong platform for online food delivery service and scope for huge potential in future
provided the service provider ensures all the essential features analyzed in the study are ensured
by effective app design quality. We more over discover, convenience placed as the third important
cause to the outsourcing choice. The study has also come up with the fact that many customers find
convenience as the important factor associated with outsourced delivery service as compared to
service delivery by the establishment itself. The restaurants sense that online ordering system has
modernized Customer Relationship Management (CRM) where they can deliver end to end services
to the clienteles beginning from food ordering to its delivery. Online ordering system has likewise
heightened business promotion by leaps and bounds. Today social media is the utmost influential
podium and ordering system facilitates amalgamation with several social media podiums like
Instagram, Facebook, Twitter, etc. to endorse anything and everything to attract ever more customers.
During the survey it reveals that one of the other factors i.e., App Integration with Business it allows
integration with the GPRS/SMS remote printer. The system is automated in a manner that as soon
as order is received there is signal about the order and at the same point confirmation can be given
whether it is rejected or confirmed.

Conflict of Interest Statement

This article is an original piece of work that has been undertaken in the area of Customer Satisfaction
and Loyalty for Online Food Services Provider in the state of Jharkhand. No financial support has
been taken from other agencies; the entire project is self-financed. This paper is not influenced by any
personal relationship or by third party. All ethics has been properly obeyed. On behalf of all authors,
the corresponding author states that there is no conflict of interest or as such.

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APPENDIX

Table 15. Demographic Data of Respondents

Gender
  Frequency % Valid %t Cumulative %
Male 291 76.6 76.6 76.6
Valid Female 89 23.4 23.4 100.0
Total 380 100.0 100.0  

Table 16. Demographic Data of Respondents

Age
  Frequency % Valid % Cumulative %
15 - 25 Yr. 148 38.9 38.9 38.9
25 - 35 Yr. 189 49.7 49.7 88.7
Valid 35 - 45 Yr. 41 10.8 10.8 99.5
Above 45 Yr. 2 .5 .5 100.0
Total 380 100.0 100.0  

Table 17. Demographic Data of Respondents

Income
  Frequency % Valid % Cumulative %
Less than 40,000 202 53.2 53.2 53.2
40,000 - 50,000 60 15.8 15.8 68.9
Valid 50,000 - 60,000 75 19.7 19.7 88.7
Above 60,000 43 11.3 11.3 100.0
Total 380 100.0 100.0  

Table 18. Demographic Data of Respondents

Education
  Frequency % Valid % Cumulative %
Under Graduate 32 8.4 8.4 8.4
Post Graduate 211 55.5 55.5 63.9
Valid
Other 137 36.1 36.1 100.0
Total 380 100.0 100.0  

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Table 19. Demographic Data of Respondents

Marital Status
  Frequency % Valid % Cumulative %
Married 277 72.9 72.9 72.9
Unmarried 101 26.6 26.6 99.5
Valid
Prefer not to answer 2 .5 .5 100.0
Total 380 100.0 100.0  

Table 20. Demographic Data of Respondents

Occupation
  Frequency % Valid % Cumulative %
Business 59 15.5 15.5 15.5
Colleges 62 16.3 16.3 31.8
Valid Private Job 127 33.4 33.4 65.3
Prefer not to say 132 34.7 34.7 100.0
Total 380 100.0 100.0  

Anand Prasad Sinha currently working is an Assistant Professor in Department of Management, BIT Mesra, Ranchi.
He joined as a Sr. Research Associate since 2002 in Department of Management, BIT Mesra, Ranchi, assisted
Govt Sponsored Project on Department of Scientific and Industrial Research, Ministry of HRD, Govt of India. He
has awarded Ph.D. in management from BIT, Mesra. He has several national and international research papers
published in reputed and indexed journals to his credit.

Praveen Srivastava is an Assistant Professor in the Department of Hotel Management & Catering Technology,
Birla Institute of Technology, Mesra, Ranchi. He holds a Ph.D. Degree from Ranchi University and postgraduate
degree of MBA and MA (Tourism Management) and Hotel Management Degree from IHMCTA Bhopal. He has to
his credit more than 16 years of experience in academics and has contributed his thought and written chapters
for books and articles in Journal of National and International repute. He is also certified Instructor by American
Hotel & Lodging Association (AH&LA), USA. He has to his credit organization of several national and international
seminar and workshop.

Ashok Kumar Asthana is currently working an Assistant Professor in Department of Management, Sarla Birla
University, Ranchi, Jharkhand. He started his career as an Assistant Professor in at New Delhi Institute of
Management, since 16 June 2008 to August 2019. Currently he is Pursing Ph.D. from ICFAI University, Ranchi.
He has received “Chairman’s Special Appreciation Award” for Best Faculty researcher research in the Year, 2018
and also received “Chairman’s Special Appreciation Award” for writing maximum number of research papers in the
Year, January 2016. He has several national and international research papers published in reputed and indexed
journals to his credit.

Sanjiv Kumar Srivastava working as Assistant Professor in the department of Hotel Management, Birla Institute
of Technology, Ranchi. He is pursuing Ph.D form IIT (ISM Dhanbad. He has many research publication in both
National and International journals of repute and has authored a book “An Introduction to Hotel Industry”.

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