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TERM PAPER: Service Quality Dimension Analysis of Foodpanda
Master of Business Administration
Service Marketing
Course: MKT- 627
Section: 1
Submit To:
Dr. Shaikh Rafiqul Islam
Professor
Marketing & International Business
School of Business and Economics
Submitted By: Group C
Name ID
Shoumik Islam 1935081060
Mashfir Ahmed 1935256660
Humaira Hossain 1935180660
Nazia Rahman Badhan 1925088660
Tahia Ata 2016370060
Date of Submission: December 28, 2021
LETTER OF TRANSMITTAL
December 28, 2021
To:
Dr. Shaikh Rafiqul Islam
Professor, Marketing & International Business
School of Business and Economics
North South University
Subject: Submission of term paper on service quality dimension analysis of Foodpanda
Dear Sir,
I am pleased to present our report which is based on Term Paper On Service Quality Dimension
Analysis of Foodpanda which was prescribed by you. We conducted a questionnaire survey
involving 20 candidates based on the dimensions that allowed us to do proper analysis. We have
gone through the internet, other sources for the relevant information and applied for our term paper
to accomplish the assigned topic. We will be happy if you take our cordial thanks for giving me
the opportunities to increase our knowledge and ideas by giving this task.
We had followed all the instructions that you have provided. Despite our great caution, there may
have some shortcomings. We would be grateful if you consider those from the excusable point.
Thank you
Sincerely,
Shoumik Islam - 1935081060
Mashfir Ahmed - 1935256660
Humaira Hossain - 1935180660
Nazia Rahman Badhan - 1925088660
Tahia Ata - 2016370060
EXECUTIVE SUMMARY
Foodpanda is a food delivery service that allows customers to buy food online and have it delivered
to their door via the Foodpanda mobile app or website. It is a worldwide food ordering platform
with a vast number of restaurants from which customers may pick their food. It is operating in
many cities and countries. In addition, it employs a huge number of active riders who deliver food
to customers' doorsteps.
Foodpanda Bangladesh Limited was founded in Bangladesh in December 2013 by a German
corporation. Rocket Internet, a European internet corporation recognized for establishing startups
and owning stakes in various models of the digitally retail industry, was the first to launch it. But,
on February 13, 2017, it sold the international brand Foodpanda to Delivery Hero, a German
competitor. Following the acquisition, Foodpanda was combined with Foodora, another online
food delivery business, and underwent a major rebranding.
Our professor assigned us the task of writing a report on the service quality dimension analysis.
As a result, we chose Foodpanda as the topic for our term paper. After conducting a Foodpanda
survey, we wrote about the industry analysis, quality dimension, customer satisfaction, and data
analysis. The purpose of this study is to justify Foodpanda Bangladesh Limited's current customer
satisfaction and compare it to their previous data to see how their performance has changed.
Table of Contents
1. Introduction...........................................................................................................................1
1.1 Mission & Vision ................................................................................................................1
1.2 Services.............................................................................................................................1
2. Industry Analysis ..................................................................................................................2
2.1 Food delivery Industry .......................................................................................................2
2.2 Bangladesh’s Food Industry Journey.................................................................................2
2.3 Food delivery Industry in Bangladesh ................................................................................2
2.4 Economic Condition Analysis.............................................................................................3
2.5 Competitor Analysis...........................................................................................................4
2.6 Porters Five Forces ...........................................................................................................4
3. A brief description of Service Quality Dimensions and Customer Satisfaction ...............7
3.1 Tangibles...........................................................................................................................8
3.2 Reliability...........................................................................................................................8
3.3 Responsiveness ................................................................................................................8
3.4 Assurance .........................................................................................................................8
3.5 Empathy ............................................................................................................................9
3.6 Customer satisfaction ........................................................................................................9
4. Methodology........................................................................................................................10
4.1 Data Collection ................................................................................................................10
5. Analysis ...............................................................................................................................11
5.1 Interpretation ...................................................................................................................12
6. Recommendation................................................................................................................12
7. Conclusion ..........................................................................................................................13
References: .........................................................................................................................14
Appendices .........................................................................................................................15
Page | 1
1. Introduction
Foodpanda is a leading name in food ordering and delivery providers around the world. It operates
in 50 countries and regions with its headquarters in Berlin, Germany. Foodpanda aims to serve
gourmets around the world with their favorite dishes from local restaurants. Foodpanda is an online
food and grocery delivery platform brand owned by Delivery Hero. Foodpanda is currently the
largest food and grocery delivery platform in Asia outside of China, operating in 12 Asian markets.
Foodpanda processes the order and sends it directly to the partner restaurant to deliver the meal to
the customer via the delivery driver. This service is available from its website and mobile
applications. It connects customers with restaurants that offer food delivery in the area, enabling
online / offline selection, ordering and payment. Customers enter their zip code on the website,
search for food in the list of restaurants, and order food. Before you enter your address and check
out, you can prepare your meal by browsing the restaurant menu and selecting the items you want
to order. There is also a review section on Foodpanda's restaurant page where customers can
comment on the restaurant's sales process, delivery, taste and overall impression. Foodpanda isn't
just about bringing delicious and favorite food to customers at their favorite restaurants, it's also
about making connections. Foodpanda sits down with the chefs, who prepare different menus that
are fresh and full of flavor. In 2013, Foodpanda was launched in Bangladesh and currently it is the
largest food delivery service in Bangladesh.
1.1 Mission & Vision
Like any other business, Food Panda has its own mission and vision. Foodpanda's mission is
"Bring delicious food into your daily life". This means they don't deliver but go the extra mile to
make customer satisfaction even more memorable. No matter what their customers want, they can
help.
1.2 Services
Foodpanda gives customers the easiest way to order food from their favorite restaurants and have
it delivered to their door. They also started delivering groceries to their customers. They have a lot
of restaurants on their list for customers to order from, including different cuisines and fast food.In
2013, Foodpanda was launched in Bangladesh. With over 20,000 employees working in its
business, Foodpanda is currently the largest food delivery service in Bangladesh.
Page | 2
2. Industry Analysis
2.1 Food delivery Industry
Food delivery Industry is a courier service which facilitates customers to order food items via
mobile app or websites. Food delivery companies are in partnership with several restaurants,
cuisine, or grocery shops.
2.2 Bangladesh’s Food Industry Journey
Restaurant chain concept was a very unfamiliar term before the 2000's. There was lack of
competition and hence only few Chinese Restaurants were operational in elite areas of Dhaka. Due
to the central zone of the country's business center, some restaurant facilities were established
surrounding the Motijheel area. With Respect to Bangladesh’s economic growth, the restaurant
business sector expanded over the period of time specially in the 21st
century.
The inauguration of the international chain restaurant began back in 2003 with the launch of Pizza
Hut in Gulshan. KFC came into Bangladesh in 2006. Gradually, some major QSR(Quick Service
Restaurant) like BBQ, Manhattan Fish Market, Mainland China, Herfy established their franchise
and began to expand their operation by establishing outlets in different parts of the country. Taking
advantage of this exponential growth of food industries in Bangladesh, major foodservice
providers like Foodpanda, Pathao, Hungrynaki launched their courier operation in Bangladesh and
facilitated food to the consumers doorstep with the help of information systems and utilizing
technology.
2.3 Food delivery Industry in Bangladesh
Bangladesh’s food delivery industry hasn’t yet exceeded 100 million. Compared to the South
Asian countries for Instance, India, Bangladesh’s food industry is still at its baby stage. As
expected, due to the advancement of technology and economic growth rate of China, it holds the
world top position with a market share of approximately 50 Billion USD. Next to china, about half
of its market size, the US is dominating 26 Billion USD worth of Market Share amongst the global
food delivery industry comprising a total of around 140 Billion USD.
With the increasing number of smartphone technology amongst the consumer, via app; foods can
be ordered on demand now-a-days in Bangladesh. The ride services market has boosted the process
of facilitating the increasing demand of food order in Bangladesh which is rising over the period
of time and also capable to meet future demand. In Bangladesh there are so many competitors in
food delivery industries. With the escalating competition the war has always been with the low
price, in another word discount competition. So, majority of the revenue of the food companies
come from promotional activities alongside with delivery charges and received commission from
the restaurants.
Page | 3
Figure 1: Comparison of Food delivery industry (Source: Business Inspection)
In the beginning, most of the food delivery companies started their business without any
commissions from the restaurants, whereas depending on scenarios on each order 25-30% charge
is imposed.
2.4 Economic Condition Analysis
Technological advancement and change in lifestyle have overall shaped the perception of people
and that’s why an unprecedented surge has impacted the overall growth of food demand via
delivery services in the recent years especially in Dhaka and few other cities of the country. Higher
buying capability and busy working hours have made most of the people compelled to purchase
food from online to save important corporate hours. Currently four companies including Pathao
food, share 90% of the market, leaving rest for the others. Now the online delivery market has
reached sales worth of $10 million.1
It is estimated that by 2025 market will cross $5 Billion. On
an average approximately 25,000 food orders are being delivered currently on daily basis.
Additionally, this has increased employability of a total of 3500 delivery person who are involved
in the food delivery industry as an employee or freelancer (Muntasir, 2019).
● FDI inflows: There has been recent foreign direct invest in Bangladesh which is uprising
over the years. The aggregate value of the e-commerce market in 2019 was USD 1,648
Million which will increase to USD 2,077 Million by 2020 and expected to reach a market
potential of approximate value of USD by 3,077 Million. (Statista, 2019). Recently, Daraz
which is a concern of Alibaba group has purchased HungryNaki. Alibaba as a foreign
investor acquired this and it is expected to continue backend IT and infrastructure
development of HungryNaki.
● Govt Policy: With the increased demand, government has to streamline the business
process that best defends both customer and suppliers’ interest. To do that e-commerce
1
Ibrahim Mohiuddin, Deputy CEO of Hungrynaki.com (Source: Dhaka Tribune)
Page | 4
Association Bangladesh(e-CAB) has formulated policy namely Digital commerce Policy
2021.
The cost per meal is still higher for restaurants. This includes upfront cost, supply chain
cost, VAT, tax payment. It is claimed by many restaurants that high commission charged
by the delivery services is harmful for their business profitability. The e-commerce
platforms are instructed to get registration done under BIN (Business Identification
Number). A proposition of central complaint tracking management system has been
proposed by e-CAB.
2.5 Competitor Analysis
Currently there are four major competitors in the Market namely Pathao Food, Food panda,
HungryNaki, Shohoj Food. In terms of orders received per day Pathao Food holds the major market
share of approximately 42%. The next share is hold by Foodpanda which is approximately 32%,
HungryNaki and Shohoj food delivery has the equal percentage of share, leaving 10% share for
the few others start up in the market. Currently, Pathao food has the highest number of affiliated
restaurants of approximately 5000, whereas foodpanda officials are saying it’s approximately 4000
restaurants in their case.
Pathao and Foodpanda has the major advantage in terms of data and technology implications which
is helping them to design better routing plan to optimize cost and timely delivery in different
locations of the country. In terms of discount, shohoz food made a successful move for which they
were able to acquire a market share of around 10% within short span of time. Additionally, in less
than a year of launching Shohoz Food signed contracts with more than 1,200 restaurants.
Some start-ups are trying to offer new types of offering for different market segment. For example,
cook-ups business model is to deliver homemade foods to the customer, additionally they sell
homemade honey, oil and several items on their web platform. Kludio is the country’s first full-
stacked cloud kitchen. They are focused on superior storage system and a optimized supply chain
solution. With their Kaas(Kitchen as a service) they facilitate zero upfront costs which is a major
deal for many people who are restaurant entrepreneurs and help them in outsourcing their delivery
logistics seamlessly.
2.6 Porters Five Forces
There are 5 forces of porter’s model that dictates whether a business model is sustainable or not
by analyzing industry competitiveness. In terms of online food delivery business these can be
termed as:
Page | 5
❖ Rivalry among existing firms
Based on the competitor analysis rivalry among competing firms is strong. Based on some factors
it can be defined:
● Number of competitors in the Market:
There are at least 5 popular online food delivery services such as HungryNaki, Pathao
Food, FoodPanda, Shohoz Food,etc. The competition is based on restaurant coverage and
the level of quality of service it provides to the customer. Pathao food has overall more
share in restaurant coverage, however in terms of major coverage in Dhaka city Foodpanda
is well ahead compared to any other companies. Industry is highly competitive on overall
basis.
● Growth Prospects of the market:
With the advancement of Data analytics and technological advancement the industry has
huge potential as the overall growth rate is around 10% every year. Bangladesh is receiving
FDI every year which is attracting more investors to cover the future demand in this
industry and countries economic advancement has made technology accessible to the mass.
● Availability of Substitutes:
There is no such thing as monopoly in this food delivery service industry. Consumer are
always having substitutes since the competition is fierce. People prefer to get discounts.
However, although all companies are active towards offering promotional campaigns
towards the consumer, the level playing field is also ensured.
● Exit Barrier:
Exit barrier is very low in food delivery industry, since there are lots of investment and
business loans in this industry and so many people are now getting employability. One of
the global chain Uber Eats has recently left Bangladesh, but companies can’t leave
overnight, they must follow some legal procedure according to the government compliance
to terminate their operation.
❖ Factors Affecting Threats of New entrants
There is no easy entrance to this industry since companies need to comply with strict
government directives.
● Economies of Scale:
Since services are intangible, food delivery services core strength is how they are designing
their app, hence cost associated with the app increases depending on the variation of
services they are providing. As such, they achieve economies of scale depending on how
Page | 6
optimized way they have designed their app and streamlined business processes
accordingly. That will give them more efficiency. So, new entrance is very difficult in this
industry since it takes time for a new entrant to build reputation.
● Regulatory and Legal restriction:
Due to recent scandals in online business, level of trust in consumer has decreased hence
people are becoming more conscious and in case of service failure they are lodging
complain against companies who have failed to provide them satisfactory services. So
government has introduced new policies and hence it creates a lengthy registration process.
Unless having huge capital and resources, it becomes tougher to stay in competition.
● Product differentiation:
In terms of food delivery services, it’s all about how they innovate new service offering.
And most consumers desire on time delivery and unspoiled food. However, the major
competition is based upon different level of discount offering. So, it’s difficult for new
entrants to sustain without any real product differentiation. (Example: Kludio, Homechef).
❖ Threats of Substitute Products:
The service providers are trying their level best to develop different potential substitute
products. For example, Foodpanda exempts their delivery charge for upto 5 orders of
customers for encouraging their app usage, however Pathao foods has reward basis
promotions. Upon reaching certain level of rewards customers can unlock different discounts
on other products like electronic gadgets, home decorations, computers, smartphones etc. The
competition in this term is Moderate.
❖ Bargaining Power of Suppliers:
The rivalry is moderate in between firms that are competing in the market.
● Switching Cost:
The switching cost is very high for the suppliers. The main investment goes behind setting
up the app and then legal expenses to validate license to run business operation in the
country. However, by affiliating with different restaurants they get commissions from the
market. That’s why they don’t require additional investment over the delivery channels. In
contrast, suppliers bargaining power is low in the industry, it’s because there are so many
restaurants and customers demand is dynamic.
● Substitutes:
Online food delivery industries have additional business that comes as substitute with the
service offering. For instance, Hungry uses separate app, foodpanda has separate app, but
Pathao has no separate app. Rather under one app they are operating ride sharing services,
Page | 7
parcel delivery and food delivery. Hence, there is no additional incremental cost for
individual business sector for this company.
❖ Bargaining Power of Customers:
Supplier got some sort of first mover advantage in this industry. So, brand reliability has made
majority of the customers dependent on the service offering of some major companies in this
industry. However, it depends on couple of factors that determines level of bargaining power
of the customer:
● Switching cost:
Any food service delivery providers app is free of cost, so there is no switching cost for
customers. They just need to install the desired company’s app without incurring any cost.
● Substitute Products:
There are so many service providers and customers have freedom to choose their desired
service provider like Pathao, Shohoz, Hungrynaki etc. So, their bargaining power is very
high in this perspective.
● Brand Loyalty:
Since, Customers have freedom to choose their favorite company, they will choose those
company which meets their needs and demands most. When the service sets a distinctive
competition in terms of quality and assurance, customers by their instinct, identify that
brand instantly. Not necessarily, Foodpanda or Pathao Food will remain the only brand in
Bangladesh if they can’t serve the desired level of service assurance with their capability
and resources they have. So, in terms of brand identification, customers have choices and
they spread positive WOM and become a loyal customer of that brand. So, customer has
the power in terms of brand identification.
3. A brief description of Service Quality Dimensions and Customer Satisfaction
Empirical study suggests that consumers perceive the quality of a service based on multiple factors
in a certain context or situation. Following Parasuraman et al. (1988), all these factors are under 5
broad dimensions namely Tangibles, Reliability, Assurance, Responsiveness and Empathy.
Therefore, service quality is the assessment of how a customer interprets the service through
Tangibles, Responsiveness, Reliability, Assurance and Empathy.
Page | 8
3.1 Tangibles
Tangible dimension denotes the physical aspects of a service. It comprises equipment, employees,
communication devices and materials that support in providing services and are visible to the
consumers. For FoodPanda in this case, the tangibles are the outlook of the website/mobile
applications, the appearance of the delivery personnel, the advertisements on pamphlets, television
and social media, order receipts etc.
Figure 2: Service Quality Dimensions
3.2 Reliability
Reliability represents the capability of the company to provide the promised services accurately.
It measures whether a customer finds the service provider dependable or not. For instance,
customers of online food delivery services like Food panda want their delivery to be timely,
undamaged and contain correct food items as per order.
3.3 Responsiveness
Responsiveness measures the desire of the service provider to help the customer via showing
swiftness in dealing with customer’s problems, complaints, queries or requests. For example, how
promptly customer representatives of Food Panda respond and try to resolve delayed delivery
issues of customer indicates the responsiveness dimension.
3.4 Assurance
Assurance is the ability of the service provider to trigger the feeling of trust and confidence of the
customers regarding their services. For example, customers of the Food Panda trusting the delivery
Page | 9
man to be well-trained and competent enough to deliver their orders properly is part of the
assurance dimension.
3.5 Empathy
Empathy is the dimension that embodies the individualized attention and care towards customer
specific needs and requirements as they engage in receiving the services. When a customer
complains about damaged food being delivered to him, the customer representative shows empathy
via listening to customers patiently, followed by a formal apology and a strong dedication to make
up for the service failure.
Figure 3: Customer Perceptions of Quality and Customer Satisfaction
3.6 Customer satisfaction
Customer satisfaction is the evaluation of a service being able to fulfill the needs and expectations
of the customer. It is the feeling of contentment that customers feel after receiving the service.
Technically, service quality is just a part of the bigger picture which is customer satisfaction.
Service quality dimensions specify service quality only while service quality, product quality,
pricing, situational and customer specific factors make up the customer satisfaction.
Page | 10
4. Methodology
Our group has decided to pursue and determine the co-relation of the food panda’s service qualities
dimensions’ impact on customer satisfaction. we have used multiple -regression for our analysis.
Multiple Regression is a method to find out the correlation between the dependent variable with
the help of two or more independent variables. While running this analysis, our main purpose is to
find out the impact of the service quality dimensions on customer satisfaction.
The formula proposes that,
 y = m1x1 + m2x2+ m3x3+ … + mnxn + b
where,
 y = the dependent variable of the regression
 m1, m2, … mn = slope of the regression
 x1, x2, … xn = independent variables of the regression
 b = intercept
4.1 Data Collection
Based on the five quality dimensions, we have set our survey questionnaires. After that we have
conducted a survey & collected a sample data consisting of 32 responses. In our survey
questionnaires, we used the 5 points ‘Likert’ scale method of survey.
It is just the degree of agreement or disagreement in a multiple-choice type format. As it does not
require the participant to provide a simple and concrete yes or no answer, it does not force the
participant to take a stand on a topic.
For 5 different attributes, we had asked them to choose the best option they prefer. In 5 Points
Likert scale, we have distributed the value of each scale as – [Strongly Unlikely= 1 point, Unlikely
= 2, Neutral = 3, Likely= 4, strongly likely= 5 points]
Page | 11
5. Analysis
Regression Equation:
Y′= b+ m1x1+ m2x2 + m3x3 + m4x4 + m5x5
Y′= 0.387423+ 0.520259x1+ 0.269251x2 -0.09874x3 + 0.152543x4 + 0.091788x5
Here,
m1= Assurance m4= Tangibles
m2= Reliability m5= Empathy
m3= Responsiveness
ANOVA
df SS MS F Significance F
Regression 5 13.97332 2.794665 20.27451 4.52E-08
Residual 25 3.446032 0.137841
Total 30 17.41935
Coefficient
s
Standar
d Error t Stat P-value
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercep
t 0.387423
0.40771
8
0.95022
3
0.35109
5 -0.45229
1.22713
5 -0.45229
1.22713
5
m1 0.520259
0.12651
9
4.11208
8
0.00037
1
0.25968
7
0.78083
1
0.25968
7
0.78083
1
m2 0.269251
0.15572
1
1.72906
9
0.09612
9 -0.05146
0.58996
4 -0.05146
0.58996
4
m3 -0.09874
0.14785
7 -0.6678
0.51037
8 -0.40326
0.20577
8 -0.40326
0.20577
8
m4 0.152543
0.14134
2
1.07924
4
0.29078
2 -0.13856
0.44364
3 -0.13856
0.44364
3
m5 0.091788
0.14378
6
0.63836
5
0.52904
1 -0.20434 0.38792 -0.20434 0.38792
Page | 12
5.1 Interpretation
The regression has been conducted with significance level, Îą = 0.05
 a = 0.387423 is the point where the regression line crosses Y axis
 m1 = 0.520259, Thus, we can conclude that Assurance is positively making an impact on
customer satisfaction.
 m2 = 0.269251, Thus, we can conclude that Reliability is positively making an impact on
customer satisfaction.
 m3= -0.09874, Thus, we can conclude that Responsiveness is negatively making an impact
on customer satisfaction.
 m4 = 0.152543, Thus, we can conclude that Tangibles is positively making an impact on
customer satisfaction.
 m5 = 0.091788, Thus, we can conclude that Empathy is positively making an impact on
customer satisfaction.
We can observe the R square value to be 0.802172 which indicates that 80.22% variation in the
customer satisfaction variable can be explained by the input variables, the 5 dimensions in this
case. Also, the F significance being so much smaller than significance level 0.05 says that, the
regression model is a better fit than the intercept-only model.
6. Recommendation
Taking five dimensions of the service quality into account an analysis has been conducted. The
results of the analysis have given a result where except the dimension responsiveness, rest of
the service dimension qualities have a positive relation with the customer satisfaction. Based
on that we can recommended the following;
 As Assurance depends on many factors but the main factor that customers perceived
while getting the service, how the service has been delivered via the final staff of the
company. Thus, address that if employees deliver the service enthusiastically
customers will have less dissatisfaction. That is why we will give our staffs time to
time perks or benefits based on their performance so that they can deliver the service
according as well as motivate other staff.
 To increase the reliability of our service so that our customers can get their delivery on
time, will enhance our supply chain system by introducing a strong AI system. Our Ai
system will guide the best route for delivery of the product, also our customers can
track it.
Page | 13
 As for tangible dimension, we will update the features of our app from time to time
according to the trend.
 As for empathy, we will introduce a special feedback feature via apps for our
customers’ requirements. Based on those data we will try to improve our service with
more care for our customers.
7. Conclusion
For all restaurant owners, online food ordering platforms have proven tremendously beneficial to
their business. People in today's highly competitive, tech-savvy generation rarely have time to
prepare meals for themselves since they are always on the move. Consumers may purchase food
online while sitting in the comfort of their own homes or businesses. As a result, these online food
delivery services serve as a one-stop shop for individuals, allowing them to view the whole menu
of their favorite restaurants, select their favorite foods, and wait for their food to come while doing
their other tasks. These online food ordering systems, such as Foodpanda, support restaurants in
making huge profits and in establishing and boosting their brand image.
In the online food delivery service business, the research of this term paper demonstrates the
aspects that are significant to customers. Only service quality dimensions were used in this study
to investigate consumers' perspectives. Future studies should look at the compatibility of customer
and facility provider views. This will allow the industry to determine whether customers and the
organization have the same point of view on customer satisfaction concerns. However, this study
concludes that customer satisfaction alone is ineffective in establishing customer loyalty; it also
emphasizes the differences in consumer behavior. Individual differences contribute to individual
differences in online behavior.
Page | 14
References:
H.T.T.P.S.W.W.W.T.H.E.D.A.I.L.Y.S.T.A.R.N.E.T.A.U.T.H.O.R.S.Y.E.D.-
M.O.S.T.A.H.I.D.A.L.-H.O.Q. (2021, April 12). How foreign investments in digital
ecosystem can catalyse a robust economy. The Daily Star.
https://www.thedailystar.net/opinion/news/how-foreign-investments-digital-ecosystem-
can-catalyse-robust-economy-2076017
Inside Foodpanda Bangladesh’s Aggressive Growth Push: An Interview with Zubair Siddiky,
Managing Director, Foodpanda Bangladesh. (2019, March 6). Future Startup. Retrieved
December 27, 2021, from https://futurestartup.com/2019/03/06/foodpanda-bangladeshs-
aggressive-growth-push-zubair-siddiky/
Muntasir, B. (2019, March 26). Meteoric rise of online food business. Dhaka Tribune. Retrieved
December 27, 2021, from https://www.dhakatribune.com/business/2019/05/26/meteoric-
rise-of-online-food-business
Appendices
Survey Questions
This questionnaire is conducted for the project report of Service Marketing Strategy (MKT: 627).
We have decided to conduct survey on Food Panda Bangladesh. How they are providing different
services. Following Questionnaire intends to find co-relation of Service Quality Dimensions
(Assurance, Reliability, Responsiveness, Tangibles, Empathy) with Customer Satisfaction.
Assurance Strongly
Unlikely
Unlikely Neutral likely Strongly
likely
I trust Food Panda as a
brand
1 2 3 4 5
My level of confidence in
using the online payment
options via foodpanda app
1 2 3 4 5
Level of trust in customer
care representatives’ skill
and competency
1 2 3 4 5
Delivery men are
responsible
1 2 3 4 5
Delivery men are well
trained and experienced.
1 2 3 4 5
Food panda delivers food
on time.
1 2 3 4 5
Responsiveness Strongly
Unlikely
Unlikely Neutral likely Strongly
likely
Food Panda app/website is
quick to access and easily
navigable
1 2 3 4 5
Delivery men are skilled at
delivery and interactive
communications
1 2 3 4 5
Customer care service
representative is prompt at
replying and processing
requests
1 2 3 4 5
Customer representatives
adapt to my specific issues
and keep me updated till the
issue is solved
1 2 3 4 5
Issues are promptly solved by
phone calls.
1 2 3 4 5
Tangible Strongly
Unlikely
Unlikely Neutral likely Strongly
likely
I think the website/app of
food panda is visually
appealing.
1 2 3 4 5
The site/app is up-to-date 1 2 3 4 5
Delivery personnel is well
dressed and in professional
attire.
1 2 3 4 5
I find their promotional
activities in social media very
engaging.
1 2 3 4 5
Empathy Strongly
Unlikely
Unlikely Neutral likely Strongly
likely
Food panda Apps have clear
and understandable UI.
1 2 3 4 5
Foodpanda Customer
representative patiently
listens to your complaints.
1 2 3 4 5
Foodpanda delivers food at a
fair price.
1 2 3 4 5
Payment system is flexible
(e.g. cash change, MFS
provisions)
1 2 3 4 5
Foodpanda delivers food
according to the customer
requirement (e.g.
customization of food)
1 2 3 4 5
Reliability Strongly
Unlikely
Unlikely Neutral likely Strongly
likely
Food panda delivers food on
time.
1 2 3 4 5
Delivery packages are sealed
and undamaged.
1 2 3 4 5
Food Panda delivers the
ordered foods accordingly
1 2 3 4 5
Foodpanda has an effective
system for refunding and
processing complaints
1 2 3 4 5
I find all the information of
restaurants, food items,
pricing, and other relevant
charges (delivery,
discounts) to be credible
1 2 3 4 5
Customer
Satisfaction
Strongly
Unlikely
Unlikely Neutral likely Strongly
likely
Foodpanda meets my needs
and expectation level
1 2 3 4 5
Foodpanda’s unique service
makes you repurchase from
it again
1 2 3 4 5
It is convenient to use
Foodpanda delivery service
1 2 3 4 5
Foodpanda values my time 1 2 3 4 5
Foodpanda offers better
value for money
1 2 3 4 5
Chart
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf
Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf

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Mkt627_Group_Term_paper_FinalGroup_C_3__3_.pdf.pdf

  • 1. TERM PAPER: Service Quality Dimension Analysis of Foodpanda Master of Business Administration Service Marketing Course: MKT- 627 Section: 1 Submit To: Dr. Shaikh Rafiqul Islam Professor Marketing & International Business School of Business and Economics Submitted By: Group C Name ID Shoumik Islam 1935081060 Mashfir Ahmed 1935256660 Humaira Hossain 1935180660 Nazia Rahman Badhan 1925088660 Tahia Ata 2016370060 Date of Submission: December 28, 2021
  • 2. LETTER OF TRANSMITTAL December 28, 2021 To: Dr. Shaikh Rafiqul Islam Professor, Marketing & International Business School of Business and Economics North South University Subject: Submission of term paper on service quality dimension analysis of Foodpanda Dear Sir, I am pleased to present our report which is based on Term Paper On Service Quality Dimension Analysis of Foodpanda which was prescribed by you. We conducted a questionnaire survey involving 20 candidates based on the dimensions that allowed us to do proper analysis. We have gone through the internet, other sources for the relevant information and applied for our term paper to accomplish the assigned topic. We will be happy if you take our cordial thanks for giving me the opportunities to increase our knowledge and ideas by giving this task. We had followed all the instructions that you have provided. Despite our great caution, there may have some shortcomings. We would be grateful if you consider those from the excusable point. Thank you Sincerely, Shoumik Islam - 1935081060 Mashfir Ahmed - 1935256660 Humaira Hossain - 1935180660 Nazia Rahman Badhan - 1925088660 Tahia Ata - 2016370060
  • 3. EXECUTIVE SUMMARY Foodpanda is a food delivery service that allows customers to buy food online and have it delivered to their door via the Foodpanda mobile app or website. It is a worldwide food ordering platform with a vast number of restaurants from which customers may pick their food. It is operating in many cities and countries. In addition, it employs a huge number of active riders who deliver food to customers' doorsteps. Foodpanda Bangladesh Limited was founded in Bangladesh in December 2013 by a German corporation. Rocket Internet, a European internet corporation recognized for establishing startups and owning stakes in various models of the digitally retail industry, was the first to launch it. But, on February 13, 2017, it sold the international brand Foodpanda to Delivery Hero, a German competitor. Following the acquisition, Foodpanda was combined with Foodora, another online food delivery business, and underwent a major rebranding. Our professor assigned us the task of writing a report on the service quality dimension analysis. As a result, we chose Foodpanda as the topic for our term paper. After conducting a Foodpanda survey, we wrote about the industry analysis, quality dimension, customer satisfaction, and data analysis. The purpose of this study is to justify Foodpanda Bangladesh Limited's current customer satisfaction and compare it to their previous data to see how their performance has changed.
  • 4. Table of Contents 1. Introduction...........................................................................................................................1 1.1 Mission & Vision ................................................................................................................1 1.2 Services.............................................................................................................................1 2. Industry Analysis ..................................................................................................................2 2.1 Food delivery Industry .......................................................................................................2 2.2 Bangladesh’s Food Industry Journey.................................................................................2 2.3 Food delivery Industry in Bangladesh ................................................................................2 2.4 Economic Condition Analysis.............................................................................................3 2.5 Competitor Analysis...........................................................................................................4 2.6 Porters Five Forces ...........................................................................................................4 3. A brief description of Service Quality Dimensions and Customer Satisfaction ...............7 3.1 Tangibles...........................................................................................................................8 3.2 Reliability...........................................................................................................................8 3.3 Responsiveness ................................................................................................................8 3.4 Assurance .........................................................................................................................8 3.5 Empathy ............................................................................................................................9 3.6 Customer satisfaction ........................................................................................................9 4. Methodology........................................................................................................................10 4.1 Data Collection ................................................................................................................10 5. Analysis ...............................................................................................................................11 5.1 Interpretation ...................................................................................................................12 6. Recommendation................................................................................................................12 7. Conclusion ..........................................................................................................................13 References: .........................................................................................................................14 Appendices .........................................................................................................................15
  • 5. Page | 1 1. Introduction Foodpanda is a leading name in food ordering and delivery providers around the world. It operates in 50 countries and regions with its headquarters in Berlin, Germany. Foodpanda aims to serve gourmets around the world with their favorite dishes from local restaurants. Foodpanda is an online food and grocery delivery platform brand owned by Delivery Hero. Foodpanda is currently the largest food and grocery delivery platform in Asia outside of China, operating in 12 Asian markets. Foodpanda processes the order and sends it directly to the partner restaurant to deliver the meal to the customer via the delivery driver. This service is available from its website and mobile applications. It connects customers with restaurants that offer food delivery in the area, enabling online / offline selection, ordering and payment. Customers enter their zip code on the website, search for food in the list of restaurants, and order food. Before you enter your address and check out, you can prepare your meal by browsing the restaurant menu and selecting the items you want to order. There is also a review section on Foodpanda's restaurant page where customers can comment on the restaurant's sales process, delivery, taste and overall impression. Foodpanda isn't just about bringing delicious and favorite food to customers at their favorite restaurants, it's also about making connections. Foodpanda sits down with the chefs, who prepare different menus that are fresh and full of flavor. In 2013, Foodpanda was launched in Bangladesh and currently it is the largest food delivery service in Bangladesh. 1.1 Mission & Vision Like any other business, Food Panda has its own mission and vision. Foodpanda's mission is "Bring delicious food into your daily life". This means they don't deliver but go the extra mile to make customer satisfaction even more memorable. No matter what their customers want, they can help. 1.2 Services Foodpanda gives customers the easiest way to order food from their favorite restaurants and have it delivered to their door. They also started delivering groceries to their customers. They have a lot of restaurants on their list for customers to order from, including different cuisines and fast food.In 2013, Foodpanda was launched in Bangladesh. With over 20,000 employees working in its business, Foodpanda is currently the largest food delivery service in Bangladesh.
  • 6. Page | 2 2. Industry Analysis 2.1 Food delivery Industry Food delivery Industry is a courier service which facilitates customers to order food items via mobile app or websites. Food delivery companies are in partnership with several restaurants, cuisine, or grocery shops. 2.2 Bangladesh’s Food Industry Journey Restaurant chain concept was a very unfamiliar term before the 2000's. There was lack of competition and hence only few Chinese Restaurants were operational in elite areas of Dhaka. Due to the central zone of the country's business center, some restaurant facilities were established surrounding the Motijheel area. With Respect to Bangladesh’s economic growth, the restaurant business sector expanded over the period of time specially in the 21st century. The inauguration of the international chain restaurant began back in 2003 with the launch of Pizza Hut in Gulshan. KFC came into Bangladesh in 2006. Gradually, some major QSR(Quick Service Restaurant) like BBQ, Manhattan Fish Market, Mainland China, Herfy established their franchise and began to expand their operation by establishing outlets in different parts of the country. Taking advantage of this exponential growth of food industries in Bangladesh, major foodservice providers like Foodpanda, Pathao, Hungrynaki launched their courier operation in Bangladesh and facilitated food to the consumers doorstep with the help of information systems and utilizing technology. 2.3 Food delivery Industry in Bangladesh Bangladesh’s food delivery industry hasn’t yet exceeded 100 million. Compared to the South Asian countries for Instance, India, Bangladesh’s food industry is still at its baby stage. As expected, due to the advancement of technology and economic growth rate of China, it holds the world top position with a market share of approximately 50 Billion USD. Next to china, about half of its market size, the US is dominating 26 Billion USD worth of Market Share amongst the global food delivery industry comprising a total of around 140 Billion USD. With the increasing number of smartphone technology amongst the consumer, via app; foods can be ordered on demand now-a-days in Bangladesh. The ride services market has boosted the process of facilitating the increasing demand of food order in Bangladesh which is rising over the period of time and also capable to meet future demand. In Bangladesh there are so many competitors in food delivery industries. With the escalating competition the war has always been with the low price, in another word discount competition. So, majority of the revenue of the food companies come from promotional activities alongside with delivery charges and received commission from the restaurants.
  • 7. Page | 3 Figure 1: Comparison of Food delivery industry (Source: Business Inspection) In the beginning, most of the food delivery companies started their business without any commissions from the restaurants, whereas depending on scenarios on each order 25-30% charge is imposed. 2.4 Economic Condition Analysis Technological advancement and change in lifestyle have overall shaped the perception of people and that’s why an unprecedented surge has impacted the overall growth of food demand via delivery services in the recent years especially in Dhaka and few other cities of the country. Higher buying capability and busy working hours have made most of the people compelled to purchase food from online to save important corporate hours. Currently four companies including Pathao food, share 90% of the market, leaving rest for the others. Now the online delivery market has reached sales worth of $10 million.1 It is estimated that by 2025 market will cross $5 Billion. On an average approximately 25,000 food orders are being delivered currently on daily basis. Additionally, this has increased employability of a total of 3500 delivery person who are involved in the food delivery industry as an employee or freelancer (Muntasir, 2019). ● FDI inflows: There has been recent foreign direct invest in Bangladesh which is uprising over the years. The aggregate value of the e-commerce market in 2019 was USD 1,648 Million which will increase to USD 2,077 Million by 2020 and expected to reach a market potential of approximate value of USD by 3,077 Million. (Statista, 2019). Recently, Daraz which is a concern of Alibaba group has purchased HungryNaki. Alibaba as a foreign investor acquired this and it is expected to continue backend IT and infrastructure development of HungryNaki. ● Govt Policy: With the increased demand, government has to streamline the business process that best defends both customer and suppliers’ interest. To do that e-commerce 1 Ibrahim Mohiuddin, Deputy CEO of Hungrynaki.com (Source: Dhaka Tribune)
  • 8. Page | 4 Association Bangladesh(e-CAB) has formulated policy namely Digital commerce Policy 2021. The cost per meal is still higher for restaurants. This includes upfront cost, supply chain cost, VAT, tax payment. It is claimed by many restaurants that high commission charged by the delivery services is harmful for their business profitability. The e-commerce platforms are instructed to get registration done under BIN (Business Identification Number). A proposition of central complaint tracking management system has been proposed by e-CAB. 2.5 Competitor Analysis Currently there are four major competitors in the Market namely Pathao Food, Food panda, HungryNaki, Shohoj Food. In terms of orders received per day Pathao Food holds the major market share of approximately 42%. The next share is hold by Foodpanda which is approximately 32%, HungryNaki and Shohoj food delivery has the equal percentage of share, leaving 10% share for the few others start up in the market. Currently, Pathao food has the highest number of affiliated restaurants of approximately 5000, whereas foodpanda officials are saying it’s approximately 4000 restaurants in their case. Pathao and Foodpanda has the major advantage in terms of data and technology implications which is helping them to design better routing plan to optimize cost and timely delivery in different locations of the country. In terms of discount, shohoz food made a successful move for which they were able to acquire a market share of around 10% within short span of time. Additionally, in less than a year of launching Shohoz Food signed contracts with more than 1,200 restaurants. Some start-ups are trying to offer new types of offering for different market segment. For example, cook-ups business model is to deliver homemade foods to the customer, additionally they sell homemade honey, oil and several items on their web platform. Kludio is the country’s first full- stacked cloud kitchen. They are focused on superior storage system and a optimized supply chain solution. With their Kaas(Kitchen as a service) they facilitate zero upfront costs which is a major deal for many people who are restaurant entrepreneurs and help them in outsourcing their delivery logistics seamlessly. 2.6 Porters Five Forces There are 5 forces of porter’s model that dictates whether a business model is sustainable or not by analyzing industry competitiveness. In terms of online food delivery business these can be termed as:
  • 9. Page | 5 ❖ Rivalry among existing firms Based on the competitor analysis rivalry among competing firms is strong. Based on some factors it can be defined: ● Number of competitors in the Market: There are at least 5 popular online food delivery services such as HungryNaki, Pathao Food, FoodPanda, Shohoz Food,etc. The competition is based on restaurant coverage and the level of quality of service it provides to the customer. Pathao food has overall more share in restaurant coverage, however in terms of major coverage in Dhaka city Foodpanda is well ahead compared to any other companies. Industry is highly competitive on overall basis. ● Growth Prospects of the market: With the advancement of Data analytics and technological advancement the industry has huge potential as the overall growth rate is around 10% every year. Bangladesh is receiving FDI every year which is attracting more investors to cover the future demand in this industry and countries economic advancement has made technology accessible to the mass. ● Availability of Substitutes: There is no such thing as monopoly in this food delivery service industry. Consumer are always having substitutes since the competition is fierce. People prefer to get discounts. However, although all companies are active towards offering promotional campaigns towards the consumer, the level playing field is also ensured. ● Exit Barrier: Exit barrier is very low in food delivery industry, since there are lots of investment and business loans in this industry and so many people are now getting employability. One of the global chain Uber Eats has recently left Bangladesh, but companies can’t leave overnight, they must follow some legal procedure according to the government compliance to terminate their operation. ❖ Factors Affecting Threats of New entrants There is no easy entrance to this industry since companies need to comply with strict government directives. ● Economies of Scale: Since services are intangible, food delivery services core strength is how they are designing their app, hence cost associated with the app increases depending on the variation of services they are providing. As such, they achieve economies of scale depending on how
  • 10. Page | 6 optimized way they have designed their app and streamlined business processes accordingly. That will give them more efficiency. So, new entrance is very difficult in this industry since it takes time for a new entrant to build reputation. ● Regulatory and Legal restriction: Due to recent scandals in online business, level of trust in consumer has decreased hence people are becoming more conscious and in case of service failure they are lodging complain against companies who have failed to provide them satisfactory services. So government has introduced new policies and hence it creates a lengthy registration process. Unless having huge capital and resources, it becomes tougher to stay in competition. ● Product differentiation: In terms of food delivery services, it’s all about how they innovate new service offering. And most consumers desire on time delivery and unspoiled food. However, the major competition is based upon different level of discount offering. So, it’s difficult for new entrants to sustain without any real product differentiation. (Example: Kludio, Homechef). ❖ Threats of Substitute Products: The service providers are trying their level best to develop different potential substitute products. For example, Foodpanda exempts their delivery charge for upto 5 orders of customers for encouraging their app usage, however Pathao foods has reward basis promotions. Upon reaching certain level of rewards customers can unlock different discounts on other products like electronic gadgets, home decorations, computers, smartphones etc. The competition in this term is Moderate. ❖ Bargaining Power of Suppliers: The rivalry is moderate in between firms that are competing in the market. ● Switching Cost: The switching cost is very high for the suppliers. The main investment goes behind setting up the app and then legal expenses to validate license to run business operation in the country. However, by affiliating with different restaurants they get commissions from the market. That’s why they don’t require additional investment over the delivery channels. In contrast, suppliers bargaining power is low in the industry, it’s because there are so many restaurants and customers demand is dynamic. ● Substitutes: Online food delivery industries have additional business that comes as substitute with the service offering. For instance, Hungry uses separate app, foodpanda has separate app, but Pathao has no separate app. Rather under one app they are operating ride sharing services,
  • 11. Page | 7 parcel delivery and food delivery. Hence, there is no additional incremental cost for individual business sector for this company. ❖ Bargaining Power of Customers: Supplier got some sort of first mover advantage in this industry. So, brand reliability has made majority of the customers dependent on the service offering of some major companies in this industry. However, it depends on couple of factors that determines level of bargaining power of the customer: ● Switching cost: Any food service delivery providers app is free of cost, so there is no switching cost for customers. They just need to install the desired company’s app without incurring any cost. ● Substitute Products: There are so many service providers and customers have freedom to choose their desired service provider like Pathao, Shohoz, Hungrynaki etc. So, their bargaining power is very high in this perspective. ● Brand Loyalty: Since, Customers have freedom to choose their favorite company, they will choose those company which meets their needs and demands most. When the service sets a distinctive competition in terms of quality and assurance, customers by their instinct, identify that brand instantly. Not necessarily, Foodpanda or Pathao Food will remain the only brand in Bangladesh if they can’t serve the desired level of service assurance with their capability and resources they have. So, in terms of brand identification, customers have choices and they spread positive WOM and become a loyal customer of that brand. So, customer has the power in terms of brand identification. 3. A brief description of Service Quality Dimensions and Customer Satisfaction Empirical study suggests that consumers perceive the quality of a service based on multiple factors in a certain context or situation. Following Parasuraman et al. (1988), all these factors are under 5 broad dimensions namely Tangibles, Reliability, Assurance, Responsiveness and Empathy. Therefore, service quality is the assessment of how a customer interprets the service through Tangibles, Responsiveness, Reliability, Assurance and Empathy.
  • 12. Page | 8 3.1 Tangibles Tangible dimension denotes the physical aspects of a service. It comprises equipment, employees, communication devices and materials that support in providing services and are visible to the consumers. For FoodPanda in this case, the tangibles are the outlook of the website/mobile applications, the appearance of the delivery personnel, the advertisements on pamphlets, television and social media, order receipts etc. Figure 2: Service Quality Dimensions 3.2 Reliability Reliability represents the capability of the company to provide the promised services accurately. It measures whether a customer finds the service provider dependable or not. For instance, customers of online food delivery services like Food panda want their delivery to be timely, undamaged and contain correct food items as per order. 3.3 Responsiveness Responsiveness measures the desire of the service provider to help the customer via showing swiftness in dealing with customer’s problems, complaints, queries or requests. For example, how promptly customer representatives of Food Panda respond and try to resolve delayed delivery issues of customer indicates the responsiveness dimension. 3.4 Assurance Assurance is the ability of the service provider to trigger the feeling of trust and confidence of the customers regarding their services. For example, customers of the Food Panda trusting the delivery
  • 13. Page | 9 man to be well-trained and competent enough to deliver their orders properly is part of the assurance dimension. 3.5 Empathy Empathy is the dimension that embodies the individualized attention and care towards customer specific needs and requirements as they engage in receiving the services. When a customer complains about damaged food being delivered to him, the customer representative shows empathy via listening to customers patiently, followed by a formal apology and a strong dedication to make up for the service failure. Figure 3: Customer Perceptions of Quality and Customer Satisfaction 3.6 Customer satisfaction Customer satisfaction is the evaluation of a service being able to fulfill the needs and expectations of the customer. It is the feeling of contentment that customers feel after receiving the service. Technically, service quality is just a part of the bigger picture which is customer satisfaction. Service quality dimensions specify service quality only while service quality, product quality, pricing, situational and customer specific factors make up the customer satisfaction.
  • 14. Page | 10 4. Methodology Our group has decided to pursue and determine the co-relation of the food panda’s service qualities dimensions’ impact on customer satisfaction. we have used multiple -regression for our analysis. Multiple Regression is a method to find out the correlation between the dependent variable with the help of two or more independent variables. While running this analysis, our main purpose is to find out the impact of the service quality dimensions on customer satisfaction. The formula proposes that,  y = m1x1 + m2x2+ m3x3+ … + mnxn + b where,  y = the dependent variable of the regression  m1, m2, … mn = slope of the regression  x1, x2, … xn = independent variables of the regression  b = intercept 4.1 Data Collection Based on the five quality dimensions, we have set our survey questionnaires. After that we have conducted a survey & collected a sample data consisting of 32 responses. In our survey questionnaires, we used the 5 points ‘Likert’ scale method of survey. It is just the degree of agreement or disagreement in a multiple-choice type format. As it does not require the participant to provide a simple and concrete yes or no answer, it does not force the participant to take a stand on a topic. For 5 different attributes, we had asked them to choose the best option they prefer. In 5 Points Likert scale, we have distributed the value of each scale as – [Strongly Unlikely= 1 point, Unlikely = 2, Neutral = 3, Likely= 4, strongly likely= 5 points]
  • 15. Page | 11 5. Analysis Regression Equation: Y′= b+ m1x1+ m2x2 + m3x3 + m4x4 + m5x5 Y′= 0.387423+ 0.520259x1+ 0.269251x2 -0.09874x3 + 0.152543x4 + 0.091788x5 Here, m1= Assurance m4= Tangibles m2= Reliability m5= Empathy m3= Responsiveness ANOVA df SS MS F Significance F Regression 5 13.97332 2.794665 20.27451 4.52E-08 Residual 25 3.446032 0.137841 Total 30 17.41935 Coefficient s Standar d Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercep t 0.387423 0.40771 8 0.95022 3 0.35109 5 -0.45229 1.22713 5 -0.45229 1.22713 5 m1 0.520259 0.12651 9 4.11208 8 0.00037 1 0.25968 7 0.78083 1 0.25968 7 0.78083 1 m2 0.269251 0.15572 1 1.72906 9 0.09612 9 -0.05146 0.58996 4 -0.05146 0.58996 4 m3 -0.09874 0.14785 7 -0.6678 0.51037 8 -0.40326 0.20577 8 -0.40326 0.20577 8 m4 0.152543 0.14134 2 1.07924 4 0.29078 2 -0.13856 0.44364 3 -0.13856 0.44364 3 m5 0.091788 0.14378 6 0.63836 5 0.52904 1 -0.20434 0.38792 -0.20434 0.38792
  • 16. Page | 12 5.1 Interpretation The regression has been conducted with significance level, Îą = 0.05  a = 0.387423 is the point where the regression line crosses Y axis  m1 = 0.520259, Thus, we can conclude that Assurance is positively making an impact on customer satisfaction.  m2 = 0.269251, Thus, we can conclude that Reliability is positively making an impact on customer satisfaction.  m3= -0.09874, Thus, we can conclude that Responsiveness is negatively making an impact on customer satisfaction.  m4 = 0.152543, Thus, we can conclude that Tangibles is positively making an impact on customer satisfaction.  m5 = 0.091788, Thus, we can conclude that Empathy is positively making an impact on customer satisfaction. We can observe the R square value to be 0.802172 which indicates that 80.22% variation in the customer satisfaction variable can be explained by the input variables, the 5 dimensions in this case. Also, the F significance being so much smaller than significance level 0.05 says that, the regression model is a better fit than the intercept-only model. 6. Recommendation Taking five dimensions of the service quality into account an analysis has been conducted. The results of the analysis have given a result where except the dimension responsiveness, rest of the service dimension qualities have a positive relation with the customer satisfaction. Based on that we can recommended the following;  As Assurance depends on many factors but the main factor that customers perceived while getting the service, how the service has been delivered via the final staff of the company. Thus, address that if employees deliver the service enthusiastically customers will have less dissatisfaction. That is why we will give our staffs time to time perks or benefits based on their performance so that they can deliver the service according as well as motivate other staff.  To increase the reliability of our service so that our customers can get their delivery on time, will enhance our supply chain system by introducing a strong AI system. Our Ai system will guide the best route for delivery of the product, also our customers can track it.
  • 17. Page | 13  As for tangible dimension, we will update the features of our app from time to time according to the trend.  As for empathy, we will introduce a special feedback feature via apps for our customers’ requirements. Based on those data we will try to improve our service with more care for our customers. 7. Conclusion For all restaurant owners, online food ordering platforms have proven tremendously beneficial to their business. People in today's highly competitive, tech-savvy generation rarely have time to prepare meals for themselves since they are always on the move. Consumers may purchase food online while sitting in the comfort of their own homes or businesses. As a result, these online food delivery services serve as a one-stop shop for individuals, allowing them to view the whole menu of their favorite restaurants, select their favorite foods, and wait for their food to come while doing their other tasks. These online food ordering systems, such as Foodpanda, support restaurants in making huge profits and in establishing and boosting their brand image. In the online food delivery service business, the research of this term paper demonstrates the aspects that are significant to customers. Only service quality dimensions were used in this study to investigate consumers' perspectives. Future studies should look at the compatibility of customer and facility provider views. This will allow the industry to determine whether customers and the organization have the same point of view on customer satisfaction concerns. However, this study concludes that customer satisfaction alone is ineffective in establishing customer loyalty; it also emphasizes the differences in consumer behavior. Individual differences contribute to individual differences in online behavior.
  • 18. Page | 14 References: H.T.T.P.S.W.W.W.T.H.E.D.A.I.L.Y.S.T.A.R.N.E.T.A.U.T.H.O.R.S.Y.E.D.- M.O.S.T.A.H.I.D.A.L.-H.O.Q. (2021, April 12). How foreign investments in digital ecosystem can catalyse a robust economy. The Daily Star. https://www.thedailystar.net/opinion/news/how-foreign-investments-digital-ecosystem- can-catalyse-robust-economy-2076017 Inside Foodpanda Bangladesh’s Aggressive Growth Push: An Interview with Zubair Siddiky, Managing Director, Foodpanda Bangladesh. (2019, March 6). Future Startup. Retrieved December 27, 2021, from https://futurestartup.com/2019/03/06/foodpanda-bangladeshs- aggressive-growth-push-zubair-siddiky/ Muntasir, B. (2019, March 26). Meteoric rise of online food business. Dhaka Tribune. Retrieved December 27, 2021, from https://www.dhakatribune.com/business/2019/05/26/meteoric- rise-of-online-food-business
  • 20. Survey Questions This questionnaire is conducted for the project report of Service Marketing Strategy (MKT: 627). We have decided to conduct survey on Food Panda Bangladesh. How they are providing different services. Following Questionnaire intends to find co-relation of Service Quality Dimensions (Assurance, Reliability, Responsiveness, Tangibles, Empathy) with Customer Satisfaction. Assurance Strongly Unlikely Unlikely Neutral likely Strongly likely I trust Food Panda as a brand 1 2 3 4 5 My level of confidence in using the online payment options via foodpanda app 1 2 3 4 5 Level of trust in customer care representatives’ skill and competency 1 2 3 4 5 Delivery men are responsible 1 2 3 4 5 Delivery men are well trained and experienced. 1 2 3 4 5 Food panda delivers food on time. 1 2 3 4 5
  • 21. Responsiveness Strongly Unlikely Unlikely Neutral likely Strongly likely Food Panda app/website is quick to access and easily navigable 1 2 3 4 5 Delivery men are skilled at delivery and interactive communications 1 2 3 4 5 Customer care service representative is prompt at replying and processing requests 1 2 3 4 5 Customer representatives adapt to my specific issues and keep me updated till the issue is solved 1 2 3 4 5 Issues are promptly solved by phone calls. 1 2 3 4 5 Tangible Strongly Unlikely Unlikely Neutral likely Strongly likely I think the website/app of food panda is visually appealing. 1 2 3 4 5 The site/app is up-to-date 1 2 3 4 5 Delivery personnel is well dressed and in professional attire. 1 2 3 4 5 I find their promotional activities in social media very engaging. 1 2 3 4 5
  • 22. Empathy Strongly Unlikely Unlikely Neutral likely Strongly likely Food panda Apps have clear and understandable UI. 1 2 3 4 5 Foodpanda Customer representative patiently listens to your complaints. 1 2 3 4 5 Foodpanda delivers food at a fair price. 1 2 3 4 5 Payment system is flexible (e.g. cash change, MFS provisions) 1 2 3 4 5 Foodpanda delivers food according to the customer requirement (e.g. customization of food) 1 2 3 4 5 Reliability Strongly Unlikely Unlikely Neutral likely Strongly likely Food panda delivers food on time. 1 2 3 4 5 Delivery packages are sealed and undamaged. 1 2 3 4 5 Food Panda delivers the ordered foods accordingly 1 2 3 4 5 Foodpanda has an effective system for refunding and processing complaints 1 2 3 4 5 I find all the information of restaurants, food items, pricing, and other relevant charges (delivery, discounts) to be credible 1 2 3 4 5
  • 23. Customer Satisfaction Strongly Unlikely Unlikely Neutral likely Strongly likely Foodpanda meets my needs and expectation level 1 2 3 4 5 Foodpanda’s unique service makes you repurchase from it again 1 2 3 4 5 It is convenient to use Foodpanda delivery service 1 2 3 4 5 Foodpanda values my time 1 2 3 4 5 Foodpanda offers better value for money 1 2 3 4 5
  • 24. Chart