Study of consumer behavior towards product bundling in online food delivery and its impact on stakeholders

Abstract

Growth of the online food delivery business in India has been phenomenal and has reached a value of $ 4.35 Billion (for online aggregators) in 2020. In addition, the online food delivery industry is set to grow at a CAGR (Compound Annual Growth Rate) of 30.11% between the years 2021 and 2026 (Source: IMARC Research). With the vast potential offered in the online food aggregation space, consumer behavior helps in channelizing the business effort spent in creating a win-win environment for the stakeholders. The study presented in this report aims to consumer behavior patterns in purchase of bundled products, in particular with the purchase of soft drinks bundled along with the food orders in the online aggregator platforms. This provides insights on how effectively products can be packaged together in order to provide delight to the customers and also increase the basket size for the aggregators and the restaurants alike. It benefits the customers in finding the offerings that are in line with their needs and preferences and the restaurants in maximizing their business opportunities. Bundling of soft drinks with food items ordered is a common practice observed in the industry, but it is often found that the offerings are more expensive forcing the customers to opt out while considering such combos. The impact of various factors on the purchase behavior of consumers in online food delivery platforms and the optimal solution that can be employed in maximizing the value added is studied. Along with this we have also studied effect of promotions & advertisement on food aggregators. We tried to analyze if health conscious customers can be targeted for better sales on these platforms. Research hypotheses and the objectives were framed based on the secondary research and a survey questionnaire was developed to study the respondents’ attitudinal change in behavior for various situations based on the stimuli induced in the questionnaire. Responses were studied and descriptive analysis like t-test and factor analysis was performed to derive managerial implications from the same. Comprehensive results of the analysis are presented in the report.