Millennial Experience with Online Food Home Delivery: A Lesson from Indonesia

Abstract

Aim/Purpose: To examine millennial satisfaction towards online food delivery services, including e-service quality, food quality, and perceived value as the determinants and behavioral intention as the consequence. Background: Among the generational cohorts, millennials are a demanding target group for many retailers, including restaurants. Despite many studies examining millennial behavior in the restaurant context, almost no research on millennial attitudes and behavior in the context of online food home delivery service can be found. Methodology: For this research, 332 millennials completed a self-administered survey in Indonesia. To assess the associations between satisfaction and its determinants and consequences, this study employs Partial Least Square modeling. Contribution: This research extends existing knowledge of millennial satisfaction toward online food delivery service by highlighting that food quality, e-service quality and perceived value are the main determinants of satisfaction for online food purchasing among millennials. Further, this study offers support for the spillover theory in the online food home delivery service from millennial perspective. Findings: This study uncovers the important direct dual influences of e-service quality and food quality on millennial satisfaction with online food delivery services. Further, this study notes that e-service and food quality also have an indirect influence on satisfaction via perceived value. Moreover, satisfied millennial customers are more likely to re-purchase, recommend to others, and re-purchase at an increased price. Recommendations for Practitioners: For small and medium restaurants, it is suggested that they need to focus solely on their core business of providing food. If they want to offer an e-service, they should develop strategic cooperation with one or more online service providers. Recommendation for Researchers: Millennials tend to repurchase, recommend, and be willing to pay more in the future extends the existing models that look at the associations among quality, satisfaction and behavioral intention. Thus, in online restaurant purchasing services, both e-service quality and food quality should be included in the future research models. Impact on Society: This study could help restaurant industries to increase their business performance and, indirectly, impact on society as a whole by providing high quality food, employment opportunities, and tax revenues. Future Research: Future researchers can reassess the model in different countries and/or with other generation cohorts as well as including other variables such as trust, image, involvement, as well as socio-demographic factors.