STUDY TO EXAMINE HOW THE LIFETIME VALUE AND BUYING BEHAVIOUR OF CUSTOMER IS AFFECTED BY THE HUGE DISCOUNTS OFFERED BY ONLINE FOOD DELIVERY

Abstract

Purpose- The purpose of this study is to understand the effect of huge discounts offered by online delivery apps on the lifetime value and buying behaviour of customers. This study also aims to understand the perceptions of the customers towards these online food delivery apps. It also fulfils the understanding of how the services being provided by these companies has an impact on the customer lifetime value. Various important variables are taken to study their impact on the buying behaviour of the customer.

Approach/ Methodology- The methodology used for this research is Quantitative Research method. The study is done by collecting the primary data from the population. Google forms was used for the collection of data. Convenience sampling is used. A structured questionnaire is designed with both close ended and open-ended questions. The collected data is then recorded in excel and SPSS for the analysis.

Findings- It is found that there is a significant impact of huge discounts and services offered by the online food delivery apps on the lifetime value and buying behaviour of customers. There is a significant relationship between the discounts and cross-selling and upselling & between discounts and frequency of order by the customer. Thus, Discount affects the loyalty of the customers, profitability of the firm and referrals of the services by the firm. The study finds a significant relationship of referral with customization and membership. Thus, both discount and services have a positive effect on customer lifetime value.

Research limitations- The non-probability sampling method is used in data collection. Data is collected through a structured questionnaire which is given to people who are easily available and ready to fill the questionnaire. There is limited access to the respondents.