Critical Success Factors for Online Food Businesses in Australia

This report analyzes the critical success factors for online food businesses in Australia, including technological advancements, customer-related factors, marketing factors, and cyber security issues. The report provides recommendations to improve success in the Australian market.

CRITICAL SUCCESS FACTORS
FOR ONLINE FOOD BUISNESSES IN
AUSTRALIA
By
Subject
Professor
Date
Acknowledgment
I have taken consistent efforts for the successful competition of the particular project.
However, it is crucial to mention that the project could not have been completed without the
guidance and support of various individuals and organizations alike. Hence, it is my duty to
extend my sincere thanks to these people.
I want to acknowledge the consistent efforts of my professor, (Name of the Professor), for his
assistance and guidance in the project and also for providing relevant information which
would then assist me to complete the particular project. Moreover, I also want to express my
gratitude for the different industrial individuals who provided me with the time as well as
attention to perform well. Lastly, my gratitude goes out to my colleagues who helped me with
their abilities and enabled me to complete the project.

Table of Contents
LIST OF TABLES AND FIGURES...........................................................................................................3
1. BACKGROUND TO THE RESEARCH..............................................................................................4
2. AIM OF THE RESEARCH..............................................................................................................4
3. LITERATURE REVIEW..................................................................................................................4
3.1. ONLINE FOOD DELIVERY PLATFORMS IN AUSTRALIA...........................................................................4
3.2. FACTORS CONTRIBUTING TO THE SUCCESS OF ONLINE FOOD ORDERING.................................................5
3.2.1. TECHNOLOGICAL ADVANCEMENTS....................................................................................................5
3.2.2. CUSTOMER-RELATED FACTORS.........................................................................................................7
3.2.3. MARKETING FACTORS.....................................................................................................................8
3.2.4. CYBER SECURITY ISSUES...................................................................................................................9
4. RESEARCH AIM AND OBJECTIVES...............................................................................................9
5. SITUATION ANALYSIS.................................................................................................................9
6. FRAMEWORK...........................................................................................................................12
7. METHODS................................................................................................................................13
7.1. RESEARCH PARADIGM..............................................................................................................13
7.2. RESEARCH APPROACH..............................................................................................................13
pg. 1

7.3. RESEARCH METHOD.................................................................................................................13
7.4. SAMPLE SIZE..........................................................................................................................14
7.5. SAMPLING TECHNIQUE.............................................................................................................14
7.6. DATA COLLECTION...................................................................................................................14
7.6.1. PRIMARY DATA............................................................................................................................14
7.6.2. SECONDARY DATA........................................................................................................................14
7.7. DATA ANALYSIS......................................................................................................................15
8. DATA ANALYSIS.......................................................................................................................15
8.1. PROFILE OF THE INTERVIEWEES....................................................................................................15
8.2. RESULTS................................................................................................................................16
8.2.1. GENERAL OVERVIEW.....................................................................................................................16
8.2.2. TECHNOLOGICAL FACTORS.............................................................................................................16
8.2.3. CUSTOMER CONVENIENCE.............................................................................................................17
8.2.4. MARKETING RELATED FACTORS.......................................................................................................18
8.2.5. CYBER SECURITY ISSUES.................................................................................................................18
8.3. SUMMARY OF THE RESULTS........................................................................................................19
9. FINDINGS.................................................................................................................................19
9.1. TECHNOLOGICAL FACTORS..........................................................................................................19
9.2. CUSTOMER CONVENIENCE..........................................................................................................20
9.3. MARKETING FACTORS...............................................................................................................21
9.4. CYBER SECURITY......................................................................................................................21
10. RECOMMENDATIONS............................................................................................................22
pg. 2

11. CONCLUSION.........................................................................................................................25
REFERENCES...................................................................................................................................26
APPENDIX – INTERVIEW QUESTIONS..............................................................................................29
LIST OF TABLES AND FIGURES
Figure 1: Research Framework..................................................................................................9
Table 1: Profile of the Interviewees.........................................................................................13
Table 2: General Overview......................................................................................................14
Table 3: Technological Factors................................................................................................15
Table 4: Customer Convenience..............................................................................................15
Table 5: Marketing Related Factors.........................................................................................16
Table 6: Cyber Security Issues.................................................................................................17
Table 7: Summary of Results...................................................................................................17
Figure 2: Framework for the Success of Online Businesses....................................................22
pg. 3

1. BACKGROUND TO THE RESEARCH
The technology has advanced greatly and this has made the business environment very
competitive and given rise to the scope of various technological advancements. Hence for this
reason, the internet has become a major part of the business and led to a shift in the operating
strategies of the firm. Various Supermarkets like Tesco and Walmart have launched their
online applications and strategies so as to ensure considerable success for themselves. This
approach is also being followed by various restaurants which has benefited them largely bb
allowing them to increase their sales and improve customer service with the help of an online
medium like that of Uber eats. This technology has thereby made it easier for various
businesses to enter into the market. The main aim of the project is to highlight the status of
food delivery services in Australia and undertake relevant research based on the same which
would help the companies to perform well. Certain recommendations have also been
provided following the factors of cyber security, customer convenience and technological
factors which have to be considered by the businesses.
2. AIM OF THE RESEARCH
The aim of the report is as follows:
 To highlight the status of Food delivery in Australia
 To analyze the factors affecting the success of the technology like customer
convenience, technology and cyber security.
3. LITERATURE REVIEW
3.1. ONLINE FOOD DELIVERY PLATFORMS IN
AUSTRALIA
pg. 4

Online food ordering is the process by which consumer can order food, like other consumer
goods, over the internet having it delivered to their doorstep. Online food delivery platforms
were initially introduced by restaurants, as they offered item on their menus to customers
over the internet (Patel, 2015). However, with the passage of time, numerous ‘third-party’
food ordering platforms, like Online food business, Seamless and Grubhub have emerged.
These platforms operate via websites and mobile applications, offering customers items
belonging to different cuisines and restaurants. Not only does this allow customers to
compare different options, it also enables them to order anything using a single platform,
contributing to greater convenience and subsequently, satisfaction (Kamarudin et al., 2009).
According to a study, online food ordering has taken over phone-based ordering in terms of
both transaction value and sales volume, representing growth of the sector (and therefore,
revealing the existence of numerous opportunities here).
3.2. FACTORS CONTRIBUTING TO THE SUCCESS
OF ONLINE FOOD ORDERING
The growth and successful operation of online food ordering platforms, including Online
food business, is contributed to a number of factors. Across the literature, these factors have
been distributed into three major classes, namely:
 Technological advancements
 Customer-related factors
 Improvements in marketing (Kim et al., 2018).
3.2.1. TECHNOLOGICAL ADVANCEMENTS
3.2.1.1. INTERNET AVAILABILITY:
Continual improvements in internet access throughout the world, coupled with the success of
e-commerce, has led towards the establishment of a large number of online food delivery
pg. 5

systems. According to a study, since the year 2000, global internet usage has increased by
more than 570 percent owing to technological advancements and expansion of global
network ‘webs’ (Kim et al., 2018). Increased internet availability has had a two-way impact
on digital food sales by encouraging organizations to offer more variety online and on the
other hand, providing consumers with greater options to choose from (Kedah et al., 2015). In
addition to that, increased internet availability and usage has allowed Online food business
and similar platforms to provide advanced options to customers, such as creating accounts for
convenient placement of orders in the future, as well as comparison of different cuisines and
restaurants.
3.2.1.2. IMPROVED OVERALL NETWORK ACCESS AND CONNECTIVITY:
Advancements and technology, particularly the introduction of new communication media,
such as wireless systems and optical fiber have greatly enhanced the reliability and reach of
global networks. This, in turn, has led towards growth in online shopping, as more people can
access e-commerce platforms (Kedah et al., 2015). Since more people can access online
shopping platforms as well, this factor opens up opportunities for them, motivating more and
more organizations to enter this sector (See-Kwong et al., 2017). Not only does the growing
online population present an untapped market, improved network connectivity offers other
opportunities too. Existing services like Online food business can enhance their services
using improved networking and communication media, allowing them to better understand
and fulfil the requirements of customers (Adithya et al., 2017). This is another major factor
contributing towards the success of Online food business, as well as other companies
operating in the said sector.
3.2.1.3. UNATTENDED FOOD DELIVERIES
pg. 6

There is a consistent increase in the importance of and research pertaining to last mile
deliveries using unmanned vehicles. The report, titled “Parcel delivery: The future of the last
mile”, developed by Joerss et al (2016) indicated that by the year 2025 80% of all the
deliveries throughout the world will be conducted through unmanned vehicles. The increase
in the customer pressures now require the companies to deliver faster, while at the same time
ensure lower costs. Hence, the following new means of delivery can be deployed by the
organizations in the future:
o Crowdsourcing / Shared Economy
o Autonomous ground vehicles
o Drones
o Semi Autonomous Ground Vehicles (Frank and Albertz, 2017).
3.2.2. CUSTOMER-RELATED FACTORS
Factors pertaining to consumers contribute significantly to the success of online food delivery
systems.
3.2.2.1. CUSTOMER CONVENIENCE AND SATISFACTION:
Services like Online food business increase customer convenience, tempting them to order
food rather than visiting restaurants physically. Moreover, the ability to order food from any
place at any time greatly enhances customer convenience (ALagoz and Hekimgolu, 2012).
This increase customer satisfaction, improving the popularity and demand of such services
(resultantly aiding in successful operation of Online food business and other similar services).
In addition to that, in contrast to phone-based ordering, online order placement provides an
interactive interface to customers, where they can view the product they are ordering and go
through its characteristics (ALagoz and Hekimgolu, 2012). In addition to that, customers can
compare different restaurants, cuisines and products using an online delivery system, an
pg. 7

option which is not available when making use of phone delivery (Kimes, 2011). All these
factors have increased the popularity of online food delivery as compared to that of phone-
based order placement systems. Again, this factor has been a major driver of the growth of
services like Online food business.
Customer Perceptions:
Customer perceptions regarding online food delivery are important drivers of Online food
business success as well. Many researchers claim that online food delivery systems succeed
because customers have positive perceptions associated with them. Most importantly,
customer consider these services as potent options whenever they feel hungry and resultantly,
place online orders (See-Kwong et al., 2017). In addition to that, yet another important
consumer perception here is ease-of-access and usability. Individuals can place orders with
minimal efforts using their computers and mobile phones (Adithya et al., 2017). Services like
Uber Eat provide access to a number of restaurants, allowing people of different tastes and
preferences to order food of their choice.
Lastly, the success of Online food business is spearheaded by the ‘mood’ factors. Consumer
behavior is strongly influenced by mood when it comes to selection of food (while placing
orders) (Kimes, 2011). Since these services are not bound to a single restaurant, consumers
get access to a wide variety of items; this makes it likelier for them to find what they wanted,
increasing their contentment and forming positive perceptions regarding the brand during the
whole process.
3.2.3. MARKETING FACTORS
Another major set of factors which have propelled the growth of Online food business
pertains to marketing. Technological advancements have led towards innovation in the field
of marketing as well, with new techniques like social media marketing and online
advertisement gaining popularity due to their effectiveness (De Vries, Gensler and Leeflang,
pg. 8

2012). These techniques have a wide reach and involve low costs. Their use, resultantly, has
allowed Online food business to capture the attention of millions of customers in its targeted
markets (Stelzner, 2011). Factors which can have negative impacts on Online food business
3.2.4. CYBER SECURITY ISSUES
One of the key areas that has a negative impact on the overall growth of the online food
businesses is a threat to the privacy and security of the customers. It has been suggested by
the research of Smith and Rupp (2003) that one of the key elements associated with the
psychological characteristics of the customers, which determines whether they will use the
specific service or not, is that of trust. The emergence of cyber security issues, including
insecure transaction/payment system, as well as misuse of the customer information, has a
negative impact on the overall trust levels of the customers, which in return deteriorates the
growth of the online food delivery systems (Brassington and Pettitt, 2005).
4. RESEARCH AIM AND OBJECTIVES
The following report aims at assessing the critical success factors that determine the success
of the online food businesses in the region of Australia.
The following key objectives have been addresses by this research:
o To assess the factors enhancing the overall success of Online food business.
o To identify the factors that deteriorate the success of Online food business.
o To recommend strategies, a holistic framework, for the enhancement of the growth of
Online food business.
5. SITUATION ANALYSIS
pg. 9

Within the region of Australia, the digital disruption in the area of fast food delivery is now
occurring at a very fast pace, with latest researches indicating that the new players like Uber
Easts and Deliveroo are also attaining effective levels of growth in the region of Australia. As
per the report of Morgan Stanley, from the time Menulog made the delivery of its first order
in 2006, the worth of the online food delivery market in Australia has increased to $600
million and it is expected that it will grow to $2.4 billion by the year 2025. The key player
within this industry is currently Menulog which incurs transaction worth of $500 million with
9,000 restaurants each year. However, the new players in the market also have a chance to
attain high levels of growth as the market demand is heating up. This is because the online
food delivery market of Australia is still underdeveloped, when compared to mature online
food markets, such as that of UK. This, as a result, leads towards expectations that the
increase in the population coupled with increased use of internet and restaurant food
consumption, the growth of this market will reach new heights (Nelder, 2018).
This modern age of technology, and common availability of high-speed internet connections
have evolved the internet into the most powerful communication medium. Since the internet
has grown into a full-fledged media platform, and the number of its users is rapidly growing;
the conventional media platforms are experiencing decline in their popularity. This sudden
shift has forced the businesses to change their operating strategies. The young segment of the
market community is the largest contributor to the over-all social media usage across the
globe. Sighting the popularity of social media among younger generations, businesses have
now started to integrate social media and online marketing strategies into their business plan.
For instance, Tesco launched its electronic retailing campaign in South Korea in 2015, and
allowed its customer’s to electronically-purchase products from the company’s web-store.
The company also introduced the e-transaction facility, where customers could utilize their
bank-cards and vouchers to pay for the products (Yeo, Goh, and Rezaei, 2017).
pg. 10

Upon the completion of purchasing process, the selected items could be dispatched to buyers.
This approach appeared to be a “big hit” in South Korean market and Tesco emerged as the
second largest retailer in the country. The business plan of Tesco was so successful that,
many companies quickly adapted it. The company’s business plan is also being successfully
practiced in the restaurant industry, and many international restaurants have also launched
their web-application where customers can electronically place their orders. Such restaurants
and businesses relay upon online mediums such as “social-media, blogs, and e-mail clients”
to directly communicate with their customers (Kitthanadeachaorn, 2016).
This approach has not only helped the restaurants to increase their sales, but also eliminated
the role of physical mediatory between the restaurants and their customers, which has added
to the profitability of such restaurants. Nevertheless, the increasing trend of internet-based
business activities have increased the demand for courier and delivery services that connect
the businesses to their customers. In this kind of system, the customers place their order
through the website of mobile application of the company, and make transaction. Upon the
confirmation of the order, restaurants prepare the food, which is then delivered to their
customers through courier/delivery services. Such food delivery companies either offer their
services through contract, or charge commissions for each order (Liao, Chen, and Lin, 2011).
The aforementioned discussion is evident that the vast availability of internet and internet-
based services have opened the way for many online companies to enter the market.
However, there are certain trade-offs too. For instance, the web-based outlets do not offer
much flexibility to the customers, and customer cannot assess the quality of the product
before making the purchase (Liu and Florkowski, 2018).
pg. 11

6. FRAMEWORK
Figure 1: Research Framework
The technological factors within this framework are supported by the technology acceptance
model, which indicates that an access and acceptance of technology within the society make
the interactions in an environment easier. In addition to that, it also benefits the business to
business and business to consumer relationships (Davis Bagozzi and Warshaw, 1989;
pg. 12
Technological Advancement (+)
Availability of internet
Enhanced connectivity-based devices
Unattended Food Deliveries
Customer Convenience (+)
Prompt customer service
Home delivery
Low waiting times
Cyber Security Issues (-)
Breach of customer privacy
Misuse of payment information
Success of Online
food business
Marketing Initiatives (+)
Social Media Marketing
Promotions and Discounts
Word of Mouth

Venkatesh et al., 2003). On the other hand, the cyber security issues and the marketing
initiatives factors are supported by the Usability and Sociability framework (U&S) that was
developed by Preece (2001). This framework indicates that the ease of usage and the security
of the site works with the online presence of the brand to attract the customers towards it.
Finally, the online customer typology developed by Rohma and Swaminathan (2004)
provided the backup for the variable of customer convenience, where it was indicated that the
factors enhancing customer convenience, such as time savings, and home delivery, had a
positive impact on the success of online food businesses.
7. METHODS
The following section puts light on the key techniques that have been used by the researcher
for the collection and assessment of the data under this research.
7.1. RESEARCH PARADIGM
The researcher has made use of a positive as it allows the researcher to assess the key
variables in their natural state without any external interference. This, as a result, allowed the
researcher to perform a better analysis of the consumer behavior pertaining to online food
delivery services (Hair et al., 2015).
7.2. RESEARCH APPROACH
An exploratory approach has been deployed by the researcher, as this approach allowed the
researcher to further explore an already researched area in the perspective of Australia. In
addition to that, it also allowed the researcher to identify new aspects pertaining to the topic,
which added to the overall quality of the conclusions (Zikmund et al., 2013).
7.3. RESEARCH METHOD
pg. 13

A qualitative methodology has been deployed by the researcher. This is because such a
methodology allows the researchers to identify the meanings that underlie the responses of
the participants. As the current study is based on the behavior of the customers, hence a
qualitative assessment of the information allowed the researcher to develop in depth
conclusions (Greener, 2008).
7.4. SAMPLE SIZE
A sample size of 15 has been selected as it has allowed the researcher to gather sufficient data
for the development of effective conclusions. In addition to that, it also allowed the
researcher to avoid mismanagement of data or delay in deadlines. The researcher selected 15
students from Western Sydney University. For this purpose, 8 male and 7 female respondents
pertaining to different study programs were selected (Bryman and Bell, 2015).
7.5. SAMPLING TECHNIQUE
Convenience Sampling as it enabled the researcher to select a sample within the given time
and budgetary limitations. To avoid the bias, the researcher ensured that a variety in terms of
respondent characteristics was maintained (Greener, 2018).
7.6. DATA COLLECTION
7.6.1. PRIMARY DATA
The researcher made use of semi structured interviews for the collection of data. One of the
key reasons behind the deployment of this tool is that it allows the respondents with the
flexibility to effectively discuss their experiences, while at the same time ensuring that the
control of the conversation stays with the researcher. This, as a result, ensures that quality
pg. 14

data, which is relevant to the topic of research is collected (Bryman and Bell, 2015).
Interview questions are listed in Appendix A.
7.6.2. SECONDARY DATA
The researcher made use of the secondary data, which is the already collected data, for the
purpose of providing a rationale and strong theoretical backing to the research. For the
collection of secondary data, the researcher made use of a variety of sources, including
books, journal articles, authentic websites, company reports, as well as government
publications (Zikmund et al., 2013).
7.7. DATA ANALYSIS
Categorical analysis was used by the research for the effective step wise analysis of the data
collected through the interviews. This allowed the researcher to ensure that all the key points
discussed in the interviews are organized and presented in an effective manner (Bryman and
Bell, 2015).
8. DATA ANALYSIS
The following chapter provides an insight into the data that has been collected under this
research:
8.1. PROFILE OF THE INTERVIEWEES
Table 1: Profi le of the Interviewees
No Gender Study Program Interview Time
1 Male Arts and Humanities 25 minutes
2 Male Law 25 minutes
3 Male Medicine 25 minutes
4 Male Law 25 minutes
5 Male Business 25 minutes
6 Male Engineering 25 minutes
7 Male Business 25 minutes
8 Male Business 25 minutes
pg. 15

9 Female Psychology 25 minutes
10 Female Law 25 minutes
11 Female Medicine 25 minutes
12 Female Research Studies 25 minutes
13 Female Business 25 minutes
14 Female Business 25 minutes
15 Female Business 25 minutes
8.2. RESULTS
8.2.1. GENERAL OVERVIEW
Table 2: General Overview
No Uses Food
Delivery Systems
Satisfied Recommend to
Others
Recommendations
1    Detailed information about security protocol
2    Customization options for food.
3    I am satisfied, but it would be great if I could see
some element that celebrates diversity.
4    These are high profiting businesses, so I would like
to see them contribute more to the community.
5    None as such.
6    I would like to place my orders with multiple
restaurants at the same time, as I order for family and
everyone wants different things.
7    Interaction over social media shall be made more
dynamic, they can think of news areas to explore.
8    More cultural diversity when it comes to food.
9    Lower time to delivery.
10    Preorder services for big events.
11    Satisfied as they are.
12    Well, testers of new offers with the food that we
order can be a good idea, as it will attract the
customers towards new offers.
13    Include delivery to far off locations, my friends live
in an area which is completely untapped. By tapping
into such markets, they can earn more.
pg. 16

14    More discounts on cultural festivals on special
cuisines can work well for me.
15    Technology enhancement, I am looking forward to
see them go unmanned, as I read somewhere that
Australia Post is working on it.
8.2.2. TECHNOLOGICAL FACTORS
Table 3: Technological Factors
No Technology Boosts Online
Food Delivery Service
Utilization
Perspectives on Unarmed Vehicles
1  Have not heard of it in this area.
2  Prospects are very high, but I think much research is to be done yet.
3  No idea.
4  I would like to see how the security aspects of such an innovation are
maintained.
5  Cost savings can come, but that depends on the success of the research.
6  The temperature and other requirements for food deliver can make this
a bit complex, but I would agree that the potential is great.
7  I believe it will have a positive impact on organizational growth, as I
have heard that they are working on increasing the capacity of drones
for delivery purposes.
8  I see fast delivery at increased charges as an immediate outcome, and I
believe that customers will be willing to pay for increased
convenience.
9  I do not have any idea about that.
10  It will come with privacy threats and legal implications.
11  I definitely believe this is the future of home delivery.
12  Given the increased emphasis placed on them, they are going to a part
of most of the industries in the future.
13  I believe that they can heighten the streamlining of logistics, so yes
they will definitely benefit companies.
14  Lower delivery times can allow the companies to gain competitive
edge.
15  Risk of failure is high here, so cannot say that it is going to be a win-
win situation.
8.2.3. CUSTOMER CONVENIENCE
pg. 17

Table 4: Customer Convenience
No Time Savings and Ability to Avoid Long Waiting Lines
Boosts Online Food Delivery Service Utilization
Home Delivery Boosts Online Food
Delivery Service Utilization
1  
2  
3  
4  
5  
6  
7  
8  
9  
10  
11  
12  
13  
14  
15  
As seen from the above mentioned table, all of the respondents agreed with the fact that time
savings coupled with increased convenience that they get from home delivery adds to their
intention to use these services.
8.2.4. MARKETING RELATED FACTORS
Table 5: Marketi ng Related Factors
No Customer Reviews and Online
Recommendations Boost Online
Food Delivery Service Utilization
Price Promotions and
Discounts Boost Online Food
Delivery Service Utilization
Social Media Pages Boost
Online Food Delivery Service
Utilization
1   
2   
3   
4   
5   
6   
7   
8   
9   
10   
11   
12   
13   
14   
pg. 18

15   
In terms of marketing related factors, the price promotions and discounts offered by the
online food delivery services had a positive impact on all the responding customers.
However, the online review and word of mouth coupled with social media usage has mixed
response. But in this case also, most of the respondents agreed that these two elements had an
impact on their intention to use such services.
8.2.5. CYBER SECURITY ISSUES
Table 6: Cyber Security Issues
No Aware of Cyber Security Issues Security Protocols Influence Online Food
Delivery Service Utilization
1  
2  
3  
4  
5  
6  
7  
8  
9  
10  
11  
12  
13  
14  
15  
It was established on the basis of the data analysis that all of the responding customers were
aware of the cyber security issues but some of them did not consider the security protocols of
the website when making purchase.
8.3. SUMMARY OF THE RESULTS
The following table highlights the overall summary of the results generated through the
interviews pertaining to the key research questions:
Table 7: Summary of Results
pg. 19

Question Result
What is the impact of technological advancement on the growth of online food businesses? Positive
What is the impact of Customer related factors on the growth of online food businesses? Positive
What is the impact of Marketing factors on the growth of online food businesses? Positive
What is the impact of Cyber security issues on the growth of online food businesses? Negative
9. FINDINGS
9.1. TECHNOLOGICAL FACTORS
The analysis of the data led towards the establishment of the fact that the increased
availability of technology available to the respondents increases the usage of the online food
delivery services. As one of the interviewees indicated that:
“Obviously, the technological devices are the only way we can use such services, so the
better the technology, the greater are the growth prospects of such services.”
This is also supported by the research of Kim et al (2018) and Kedah et al (2015) who
indicated that enhancement in technology not only increases the probability of usage of
online food services, but also provide such services with an ability to offer more variety to
the customers.
In relation to the use of unarmed vehicles to deliver the food services, one of the interviewees
indicated that:
“I see fast delivery at increased charges as an immediate outcome, and I believe that
customers will be willing to pay for increased convenience.”
This has been in alignment of the research of Frank and Albertz (2017) who indicated that
these vehicles will transform the future of the online food delivery services by cutting costs
and increasing the speed of delivery.
9.2. CUSTOMER CONVENIENCE
When asked about the impact of time savings on intention to use online services, one of the
respondents indicated that:
pg. 20

“I am a student and a part time employee; the existence of such services makes things easier
for me. The time saving factor is one of the key determinants of my purchase. I am willing to
pay higher if I get higher convenience, after all customer convenience is the key reason of
existence for such services”
The views of most of the respondents were similar to this, which indicates that by increasing
the degree of customer convenience the online food delivery services can grow more. These
findings were supported by the research of ALagoz and Hekimgolu, (2012) and Rohma and
Swaminathan (2004), which indicated that the enhanced convenience coupled with the
enhancement in the ability to order food from anywhere and get that delivered to their homes
encourage the customers to make more and more purchases from the online food delivery
services.
9.3. MARKETING FACTORS
One of the point of agreement for all the respondents in case of this element was that of price
promotions and discounts. In this regard, one of the respondents indicated:
“I look out for good deals when I want to order from these services, so yes this is a key
deciding factor for me.”
When asked about the impact of social media on purchase intentions, most of the respondents
agreed that the social media pages keep them informed about the services and guide their
purchases, however, one of the respondents said:
“For me social media is a form of entertainment, while ordering food I order as per my taste
and mood. I don’t think social media has much of a role to play there.”
However, majority of the respondents agreed with the positive impact of social media on the
growth of online food services, which also established by the research of De Vries, Gensler
and Leeflang (2012) and Stelzner (2011), where the ability of these platforms to work as
pg. 21

direct link between the customers and the companies was regarded as one of the key factors
that boost the growth of the online food service companies.
9.4. CYBER SECURITY
When asked about the knowledge of cyber security issues, all the respondents indicated that
they were very well aware of it. However, a mixed response came into light when the impact
of cyber security issues was discussed on their purchase intentions pertaining to online food
services. One respondent said:
“I ensure privacy and security by reading the terms and conditions. Obviously, I am giving
away my information and I shall know where its going. Also, I make sure that I am making
payments through safe payment mechanisms. If I am not satisfied with these aspects of the
service, I don’t make a purchase.”
However, one of the respondents indicated that:
“I don’t remember checking on such security protocols, I just assume that if it is a known
name then its safe. Also it must keep my information safe, as it is legally bound to do so.”
When taken collectively, most of the respondents agreed that the security of the website
played an important role in determining if they will purchase from it or not. This agreed with
the findings of the researches of Smith and Rupp (2003) and Brassington and Pettitt (2005),
where it was identified that the security aspects of the website developed the trust quotient for
the customers, which ultimately determine the success with the which the online services can
attract and retain the customers.
10. RECOMMENDATIONS
The following key recommendations are made on the basis of the above-mentioned analysis:
pg. 22

1. Active and extensive integrated social media marketing: By integrating different
social media platforms, the companies can ensure that the access a holistic range of
customers (Leeflang, 2012).
2. Reduction of gap between actual and perceived quality: Along with that, it shall be
ensured that the actual quality is equal to the perceived quality. This can be done
through the inclusion of the customer feedback in the services. This will allow the
companies to enhance the overall levels of customer satisfaction (Stelzner, 2011).
3. Top notch security protocol for the website: A very high-quality security
infrastructure shall be developed to ensure that the website of the companies are free
of cyber security issues. The security systems of the services shall also be upgraded
consistently (Smith and Rupp, 2003)
4. Delivery to far away locations at excess cost: As this factor is not currently actively
pursued by most of the online food delivery systems, these will allow the
organizations to attain the first mover advantage, which will add to the levels of
customer satisfaction and loyalty.
5. Flexibility of placing orders with 2 or more places at the same time: As a number of
customers place orders through the online food delivery systems for a group of people
of families, hence this option can add to the convenience of the customers by allowing
them to place one order for all.
6. Unattended delivery and shared economy: To ensure that the companies reduce their
fixed delivery costs, the option of shared economy where crowd sourcing can be used
to develop of freelance drivers who pick up the delivery orders as they are received by
the company’s system can allow for cost cutting. This is similar to the technology
used by the Uber and Lyft riding services. Coupled with that the companies shall
continue to do more research on unarmed vehicles, as these can allow the company to
pg. 23

go for fast last-minute deliveries and add more to customer convenience (Frank and
Albertz, 2017).
7. Cash on delivery: To boost sales as it will encourage those people to use the services
who were hesitant on using their debit and credit card details online.
On the basis of the above-mentioned findings, the following holistic framework is provided
for the success of online food businesses in the region of Australia:
Figure 2: Framework for the Success of Online Businesses
pg. 24

11. CONCLUSION
The overall analysis pertaining to the literature associated with the success of online food
businesses indicated that the success of these businesses can broadly be attributable to the
following three factors:
 Technological advancements
 Customer-related factors
 Improvements in marketing.
pg. 25
Success of
Online Food
Businesses
In Australia
Customer
Conveience
2) Delivery to far away
locations
3) Ability to order from 2 or
more places
Marketing
1) Integrated Social Media
Marketing
Service Quaility
1) Reduced gap between
actual and perceived quality,
through customer feedback
accomodations
Security
1) Consistent updating of
security protocols
2)Cash on delivery
Technology
1) Shared Economy
2) Reasearch into unattended
Delivery

Whereas, it was identified that the cyber security issues can have a negative impact on these
services. To further test these findings, the research under consideration went for the analysis
of customer perception by deploying a qualitative methodology. In this case, a qualitative
methodology was deployed and semi structured interviews were conducted for the collection
of data.
On the basis of the data analysis as well as the review of literature, a holistic framework for
the success of the online food businesses in the region of Australia was developed. In this
case, the following factors were regarded as critical to the success of the online food
businesses:
o Customer convenience
o Marketing
o Security
o Technology
o Service quality.
pg. 26

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pg. 29

APPENDIX – INTERVIEW QUESTIONS
General Overview
1. Do you use online food delivery services?
2. How has been your experience with these services so far?
3. Will you recommend others to use these services?
4. What recommendations do you have for the enhancement of these services?
Technological Factors
1. Do you think an access to desired technology makes it easier for the people to make
use of online food delivery services? Please Explain.
2. With all the research happening on Unarmed vehicles, how do you see the future of
such services?
Customer Convenience
1. A lot of literature indicates that time saving and an ability to avoid long waiting times
is one of the key factors that triggers customers to go for online food delivery
services. Do you agree with this? Please explain?
2. Do you think getting the food delivered to your place in multiple clicks motivates you
to go for online food delivery services? Please explain.
Marketing Related Factors
1. Do you look into the previous customer reviews and online recommendations when
going for an online food delivery service? Why?
2. The price promotions and discounts are said to influence the customer purchase
behaviour in the online food delivery services? Do you agree? Please explain.
3. An interactive social media page keeps the customers informed about what is going
on with the service, as suggested by the research. Do you follow the social media
pages of the online food delivery services that you use? If yes, does this influence
your online purchase behavior? Please explain.
Cyber Security Issues
pg. 30

1. Are you aware of the cyber security issues that pertain to the online purchase
systems?
2. Do you check the security protocols and trust worthiness of the online food delivery
services that you use? If yes, does this information influence your online purchase
behavior? Please explain.
pg. 31