Price or quality? Consumers' preferences and willingness to pay (WTP) for online food delivery services in the COVID-19 era

Singh, Satender Pal, Dash, Bishnu Prasad, Sachin, Amit and Adhikari, Arnab (2023) Price or quality? Consumers' preferences and willingness to pay (WTP) for online food delivery services in the COVID-19 era. TQM Journal. ISSN 1754-2731 (In Press)

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Abstract

Purpose: This article investigates the impact of the COVID-19 pandemic on the consumer preference for the attributes of online food delivery (OFD) services in India. It also shows how the order size influences the consumer's willingness to pay (WTP) for the attributes of OFD services. Design/methodology/approach: This work incorporates a conjoint analysis-based approach to determine the consumer preference for the attributes of OFDs such as price, delivery time, restaurant rating and packing quality during the COVID-19 pandemic. The fractional factorial design is applied for the data collection. The relative importance of the attributes and the part-worth utility of the attributes' levels have been determined. Further, the utility associated with the attributes' levels is used to find the consumer's WTP for different attributes. Findings: The COVID-19 pandemic has changed consumer preference from price to food and packing quality in India. When the order is small, consumers exhibit a higher preference to the delivery time than packing quality. In contrast, consumers show a higher preference to packing quality than delivery time with the increase in order size. The consumer's WTP attains the highest level in case of food quality, followed by convenience and packing quality. The WTP for the attributes rises with the increase in order size. Practical implications: The insights highlight the need for the online food delivery industry to redesign the business framework in the post-pandemic era. The hygiene and safety measures maintained by the consumers during the pandemic have significantly changed their purchasing behaviour, raising their preference for service quality (food and packing quality) of the OFD services apart from price. Originality/value: This work determines the consumers' utility for each attribute level of OFDs, along with their relative importance. Moreover, this study contributes to the existing literature by exhibiting the impact of the COVID-19 pandemic on the consumer preference and order size on consumer's WTP for the attributes.

Item Type: Article
Keywords: Conjoint Analysis | Consumer Preference | Online Food Delivery Service | Willingness to Pay (WTP)
Subjects: Social Sciences and humanities > Business, Management and Accounting > General Management
JGU School/Centre: Jindal Global Business School
Depositing User: Amees Mohammad
Date Deposited: 18 Aug 2023 04:54
Last Modified: 18 Aug 2023 04:54
Official URL: https://doi.org/10.1108/TQM-04-2023-0112
URI: https://pure.jgu.edu.in/id/eprint/6508

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