TO STUDY THE EFFECT OF HUGE DISCOUNTS OFFERED BY ONLINE FOOD DELIVERY APPS ON LIFETIME VALUE AND BUYING BEHAVIOR OF CUSTOMER

Abstract

The growth of e-commerce, Digital India initiatives and the changing urban lifestyle of the Indian consumers are the drivers for online food order services. The seamless delivery of food at the doorstep with few clicks influence the Indian Consumers to order their favourite cuisines online from the restaurant of their choices. Companies look ahead huge potential in e-food industry segment and came up with food aggregator apps. Restaurants aware of the changing culture of “dining out” to “eating in” transformed their business by collaboration with food tech startups like Zomato and Swiggy. In order to gain market share and to survive in the long term in the competitive environment these apps gives huge discounts and offers to their existing and new customers. The aim of this study is to determine the effect of huge discounts on LifeTime Value and buying behaviour of customers. The primary objective is to know the effect of discounts and services provided by the apps on the customer lifetime value. The secondary objective is to know the consumer perception towards different online food ordering apps and effect of discounts on buying behaviour of consumers. Quantitative research method is used in this research and the study is done by collecting primary data from the population. The data collection has been done via Google forms, and convenience sampling is used. The data has been recorded in excel and recoded into SPSS for analysis. Through this study, it is found that huge discounts and different services offered by the food delivery apps have a significant impact on the lifetime value and the buying behaviour of customers. Cashbacks are the most preferred form of offers for the consumers. Consumers prefer online mode of ordering food through the apps because of doorstep delivery followed by Ease & Convenience and 24/7 Availability. Zomato and Swiggy are preferred by maximum number of consumers. Late delivery of food, minimum order criteria and quality are the main factors of dissatisfaction(Hinderance). Discount is the major factor which will motivate customers to switch between different apps and consumers are delighted by the apps which gives maximum discount.