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EFFECT OF HOME DELIVERY SERVICES ON PRODUCT ACCEPTANCE (CASE STUDY OF DOMINO PIZZA)


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Abstract

The number of online transaction in Nigeria has increased in recent years with fashion products currently dominate the e-commerce market as the most frequently purchased products. In today’s COVID hit world all business small or large has taken a hit either positively or negatively. Furthermore, the lockdown imposed due to coronavirus also caused people to switch to online buying of groceries and essentials. This study will focus on examination of the effect of home delivery service on product acceptance. In this study primary method of data collection has been used to obtain data from respondent through a structured questionnaire. The population of the study comprises of 300 Customers and staff of Domino Pizza. The researcher adopt the survey research design for the study, and the percentage method of frequency distribution was used as method of data analysis. The instrument of Data analysis was the SPSS version 21 statistic. The study includes almost every factor to study the impact of coronavirus on acceptance of food items home-delivered.

CHAPTER ONE

                                        INTRODUCTION

  • Background of the study

The COVID-19 pandemic has wreaked havoc on most facets of life, including people's ability to access products. Consumers have been held at home due to government-imposed lockdowns, preventing regular shopping habits, and many brick-and-mortar businesses have closed. Pharmacies and grocery stores, for example, have stayed open but with altered hours. Many restaurants have closed or resorted to takeout in order to stay afloat. For many customers, home delivery has provided a solution to some of COVID-19's challenges (Purvis, B.; Mao, Y.; Robinson, D 2019). Ecommerce and home delivery may be a convenient option for staff who are expected to work remotely, as well as a number of other categories, such as parents who must manage work and parental duties, or those who are at risk of severe COVID-19 health complications. When the pandemic of coronavirus hit the world the food industry and related services were heavily impacted (Ram, J.; Sun, S. 2020). This outbreak led the Nigerian government to make the food delivery and restaurants business to be categorized as critical services. Since more than 20% of population in Nigerian relies on online food and restaurants services on daily basis which include students, working young people, and paying visitors these services needed to be started again. This pandemic has in more than one way created challenges for online food delivery and food industry in large that could have lasting effects (Ram, J.; Sun, S. 2020). Food industry, such as online food delivery services, are eager to provide food. Customers, on the other hand, are wary of placing orders during the pandemic, despite the fact that many online food delivery services have allowed the delivery personnel to equip themselves with protective gear and encouraged customers to pay digitally to ensure contactless delivery. The cleanliness conditions of the restaurants and the sanitary conditions of the food deliver personnel are some of the major reasons behind people not trusting the online delivery of food and services of online food delivery platforms. The business of delivering ready to eat foodstuffs from restaurants to home is undergoing a sea change as new online platforms enable food providers to capture markets and customers day by day. Worldwide, the food delivery market stands at 4 percent of food items sold through restaurants chains and fast-food outlets. This market has already matured in many countries with a growth rate estimated at 3.5 percent for five years down the line (McKinsey, 2016). The picture is not so different in our country as well. The conventional mode of food delivery wherein customers order food online through the websites of restaurants, or fast-food chains have now been replaced with the concept of ‘aggregator business model.’ Here the business player provides a ‘single window system’ enabling the customers to order food online from a wide variety of food providers registered on the portal. The ‘aggregator’ would charge a fixed margin of the order from the food provider and in turn, handles the delivery of the food item at the doorstep of the consumer. The focus has now shifted from technology to logistics, which is currently acting as the major cost drivers for the food industry. Despite escalating traveling and vehicle maintenance costs, these food delivery companies make profits by up to 30% (Mckinsey, 2016). This has necessitate the researcher to investigate the effect of home delivery service on product acceptance with emphasis on Domino pizza.

  • STATEMENT OF THE PROBLEM

Food industry, such as online food delivery services, are eager to provide food. Customers, on the other hand, are wary of placing orders during the pandemic, despite the fact that many online food delivery services have allowed the delivery personnel to equip themselves with protective gear and encouraged customers to pay digitally to ensure contactless delivery. Product quality and delivery service are the offline characteristics of an online shop (Ahn, Ryu, & Han, 2004). One of online shopping problems that most people complain about is there is difference in the specifications of the products on the website with the quality of original product when received. Product quality is important in e-commerce to help maintain customer satisfaction and loyalty and reduce the risk and cost of replacing faulty goods. If the company makes a low quality product that is not very good people will not buy it. Especially in e-commerce market if people find a similar product at a lower price and higher quality, they can easily move and buy from more agile competitor. Another online shopping problem is poor delivery service that result in product arrival takes too long or even damaged. Delivery service is absolutely important in e-commerce, because it is the last stage of the order fulfillment process and from the consumers’ point of view, the most critical. Timely and reliable delivery must be the number one priority and is crucial to the success of every online shop on the planet. The cleanliness conditions of the restaurants and the sanitary conditions of the food deliver personnel are some of the major reasons behind people not trusting the online delivery of food and services of online food delivery platforms. Current consumers have been forced to rethink their potential buying decisions as a result of these problems.

  • OBJECTIVE OF THE STUDY

This study has one main objective which is sub-divided into general and specific objective. The general objective is to examine the effect of home delivery service on product acceptance with emphasis on Domino Pizza. The specific objectives are;

  1. To examine the effect of home delivery service on product acceptance
  2. To examine the relationship between home delivery service and customer patronage in Domino pizza
  • To examine the effect deliver man personal hygiene on product acceptance
  1. To examine the role of delivery timeframe on product acceptance
    • RESEARCH QUESTIONS

The following research questions are formulated by the researcher to aid the completion of the study;

  1. Does home delivery service have any effect on product acceptance?
  2. Is there any significant relationship between home delivery service and customer patronage in Domino pizza?
  • Is there any effect of deliver man personal hygiene on product acceptance?
  1. Does product delivery timeframe have any effect on product acceptance?
    • RESEARCH HYPOTHESES

The following research hypotheses were formulated by the researcher to aid the completion of the study;

H0: There is no significant relationship between home delivery service and customer patronage in Domino pizza

H1: There is a significant relationship between home delivery service and customer patronage in Domino pizza

H0: deliver man personal hygiene does not have any effect on product acceptance

H2: deliver man personal hygiene does have an effect on product acceptance

  • SIGNIFICANCE OF THE STUDY

It is believed that at the completion of the study, the findings will be of great importance to the human resource management of Domino pizza as the findings of the study will aid in marketing strategy formulation. The study will also be of great importance to the product innovation and sales management department of Domini pizza as the finding will help them in redefining their service delivery strategy. The study will also be of importance to researchers who intend to embark on a study in a similar topic as the findings of this study will serve as a guide to further study

  • SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers the effect of home delivery service on product acceptance with focus on Domino pizza. But in the course of the study, there are some factors that limit the scope of the study;

  1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
  2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
  3. c) Organizational privacy: Limited Access to the selected staff of Domino pizza makes it difficult to get all the necessary and required information concerning the activities

1.8 OPERATIONAL DEFINITION OF TERMS

Pizza

Pizza is an Italian dish consisting of a usually round, flattened base of leavened wheat-based dough topped with tomatoes, cheese, and often various other ingredients, which is then baked at a high temperature, traditionally in a wood-fired oven.

Retail food delivery

Retail food delivery is a courier service in which a restaurant, store, or independent food-delivery company delivers food to a customer

Service delivery

Home delivery is the bringing of items to the customer's home rather than the customer taking or collecting them from the store.

1.9 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study

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Author: SPROJECT NG