Food delivery competition in the digital economy: Price war strategy in a developing country

Abstract

This study investigates how consumers make decisions when using online food delivery services in Thailand, with a particular focus on the price-related factors that influence their choices. The research adopts a mixed-method approach, combining quantitative and qualitative data collection and analysis. Quantitatively, data was gathered from 392 respondents through closed-ended questionnaires, and statistical analysis software was used, employing binary regression to explore the relationship between various independent variables (including gender, age, education, marital status, income, residence, experience, reasons, information sources, frequency, and expenses) and the price war strategy, which serves as the dependent variable. Qualitatively, in-depth interviews were conducted with ten purposively selected participants. The qualitative data were analyzed using content analysis and the NVivo software program. The study's results highlight the significant influence of income and information on the price-related decisions in Thailand's online food delivery market. Moreover, consumers in Thailand prioritize factors like price sensitivity, value perception, convenience, promotions, and cultural food preferences when selecting online food delivery services. This understanding is essential for businesses operating in this market to effectively meet consumer preferences and succeed in the competitive online food delivery industry.