Consumers’ Adoption of Online Food Ordering Services in Tier-Ii Cities: An Empirical Analysis

Abstract

In recent times, the cities in India are witnessing growing preference for online food ordering and delivering services. India’s online food services industry is growing at a rate of 15 % every quarter in terms of daily food orders with the revenue touching US$ 7730 million in 2019. Statistics indicate that consumers of the country have welcomed these services wholeheartedly. On the supply side, the industry is becoming highly competitive with several international, national and local players. Logistics, faster deliveries, a wider selection of menu and competitive prices seem to be important in garnering competitive advantage and wider acceptance. This study is an attempt to understand the factors influencing consumers’ adoption of online food ordering services among consumers residing in tier-II cities with special reference to Coimbatore city.  The conceptual model is proposed based on the constructs adopted from the Technology Acceptance Model (TAM) and Diffusion of Innovation (DOI) theory.  Primary data has been collected using a validated questionnaire. 414 respondents who took up the survey constituted the sample for the study. The significance of relationships among the constructs has been analyzed to arrive at meaningful insights. The results of the study can guide the marketers in understanding consumers better and framing suitable strategies for meeting their expectations.