The Influence of Online Food Delivery Service Quality on Customer Satisfaction and Customer Loyalty: The Role of Personal Innovativeness

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 6-12

J. Environ. Treat. Tech.

ISSN: 2309-1185

Journal weblink: http://www.jett.dormaj.com

The Influence of Online Food Delivery Service

Quality on Customer Satisfaction and Customer

Loyalty: The Role of Personal Innovativeness

, 2

Yusra *, Arawati Agus

Universiti Kebangsaan Malaysia, Graduate School of Business (UKM-GSB)

Sekolah Tinggi Ilmu Ekonomi (STIE) Sabang, Banda Aceh

Received: 02/04/2019

Accepted: 27/08/2019

Published: 12/09/2019

Abstract

The online food delivery industry has emerged as a new channel of food delivery and marketing in order to capture a bigger share

and sale in the food industry. This new type of business delivery has become very popular, especially among young, busy and working

people. In addition, this business has become more competitive due to the increasingly new business entries and users’ expectation

resulted from the anxiety of online food ordering and time convenience, but not at the expense of providing quality products and

services. Therefore, it is very crucial that online service providers understand the nature and requirements as well as the pertinent

aspects of the online service industry that are considered important to the customers in this emerging market. This study tries to explore

and gauge information to guide the online service providers regarding the requirements and attributes of this new service delivery

system. Using adopted questionnaire from Mobile Service Quality (M-S-QUAL), this study aims to investigate the relationships

between customers perceived service quality of online food delivery (OFD) and its influence on customer satisfaction and customer

loyalty, moderated by personal innovativeness. The data are collected from the customers or users of any online food delivery service

and will be analyzed using correlations and Hierarchical Moderated Regression Analysis.

Keywords: Online Food Delivery (OFD); Mobile Service Quality (M-S-QUAL); Customer Satisfaction; Customer Loyalty; Personal

Innovativeness.

satisfaction and loyalty, is crucial in any service industry to

Introduction

gain competitive advantage (7, 11). It infers that firms must

obtain the positive response from the user first before customer

loyalty is created and the competitive advantage is achieved.

Therefore, OFD service providers must fully understand how

the customer perceived this online service and such

understanding requires measuring the OFD service quality

To date, a smartphone is one of the important media gadget

for young Malaysian. In 2017, about 97.7 percent youngsters

aged 15 years and above have been using smartphones in

accommodating their daily activities. More specifically, it has

also changed how they purchase products or services to fulfill

their needs and wants. For instance, this trend has promoted

Online Food Delivery (OFD) Service in Food and Beverage

(

23). Thus, assessing perceived service quality of the customer

is very crucial for the service company in its effort to achieve

customer loyalty in order to sustain and survive in this very

competitive market. This is the main issue that this research

tries to investigate and hopes to contribute to better

understandings of OFD service quality.

Literature has provided considerable evidences on Mobile

Service Quality (M-S-QUAL), yet there is a lack of scale

utilization and exploration (21). More specifically, in the OFD

industry, previous studies mostly investigate the customer

attitude toward the service and few addressed the customers’

response behaviorally. In addition, several studies investigate

(

F&B) Industry. The OFD industry itself has emerged as a new

wave in the food and beverage industry. This new marketing

channel intends to increase sales and grab bigger shares of

F&B industry, either through partnerships with food delivery

companies (e.g., Foodpanda, Grabfood, Running Man

Delivery, etc., or restaurant delivery service, e.g., McDonalds,

KFC, Domino’s Pizza, Pizza Hut delivery services).

Although the OFD service industry seems to be hugely

promising, the nature of this market is poorly understood (10).

However, delivering superior service to increase customer

Corresponding author: Yusra, (a) Universiti Kebangsaan Malaysia, Graduate School of Business (UKM-GSB) and (b) Sekolah

Tinggi Ilmu Ekonomi (STIE) Sabang, Banda Aceh. E-mail: yusrahusainy@gmail.com.

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 6-12

the external factors in moderating the customer reaction of

perceived service (9). However, the presence of internal

characteristics, such as personal innovativeness is still limited.

So far, research examining the influence of personal

innovativeness that potentially moderates the customers post-

adoption of M-commerce is limited or not extensive (5, 32).

Therefore, this study tries to address this issue and fulfill the

gap in the literature by investigating the influence of perceived

OFD service quality on customer satisfaction and customer

loyalty and the role of personal innovativeness in moderating

the customer satisfaction and customer loyalty linkage.

In this regard, this study adopts the quantitative and cross-

sectional approach using M-S-QUAL (23) as the instrument to

capture the perceived OFD service quality. This paper firstly

proceeds with an introduction, the objectives of the study and

the test conducted to obtain the reliable measures of the

variables; Secondly, it continues with a brief literature review;

Thirdly, it describes the conceptual framework consisting of

the conceptual model and hypothesis related to Online food

delivery (OFD) service quality, customer satisfaction,

customer loyalty, personal innovativeness based on the review

of the current evidence of these relationships. Fourthly, it

discusses the methodology used. Fifth, it highlights the results

of the analysis using correlation and Moderated Regression

analyses. Finally, the results are then discussed and

implications highlighted.

comprises of 22 items in four dimensions: efficiency,

fulfillment, system availability, and privacy. Additionally, in

the same study, to measure the recovery aspect of service

quality the authors also developed e-recovery scale (E-RecS-

QUAL) which consist of 11 items in three dimensions:

Responsiveness, Compensation, and Contact (38). Even

though, m-commerce is often portrayed as the continuation of

e-commerce the existing electronic service quality may not be

proper. It leads to the need of specific measurement for mobile

commerce service quality as it has its own characteristics (33).

A number of scholars have formulated and suggested

various factors to operationalize mobile service quality.

According to Lu et al., m-service quality perceived is the form

of interaction, environment, and outcome qualities (32,33).

These are evaluated based on sub-dimensions of each

dimension, namely attitude, expertise, problem-solving and

information for interaction quality, equipment, design, and

situation for environmental quality, and punctuality, tangibles,

and valence for outcome quality. Lin state dimensions to assess

mobile service quality differently (30,31). They suggest using

functionality, content, customer service and interface design.

Moreover, to measure mobile service quality that has physical

and virtual product Huang et al., introduce the specific

measurement for mobile quality service, namely M-S-QUAL,

which consists of five dimensions: contact, responsiveness,

fulfillment, privacy and efficiency of virtual product and four

dimensions for physical product: contact, responsiveness,

fulfillment and efficiency. In the context of OFD, this present

study adopts a mobile service quality scale (M-S-QUAL)

developed by Huang et al., that has been widely used to

operationalize service quality for virtual and physical products

Literature Review

.1 Mobile Service Quality

As this study aims to examine the relationship of perceived

(

23).

service quality of OFD grounded from M-S-QUAL on

customer satisfaction and loyalty, it is important to understand

how the mobile service quality evolved in the literature.

Hence, the following paragraph starts with the initial service

quality model, followed by the evolving of the electronic

service quality literature and finally mobile service quality

literature in relation to this study setting.

Service quality has been substantially studied in the

literature (6, 12, 15, 17, 25) but SERVQUAL of Parasuraman

is the most influential seminal work which developed the

instrument of service quality dimensions, namely Tangibles,

Reliability, Responsiveness, Assurance, and Empathy (40) .

Basically, service quality is the form of customer perception

during the purchasing process and also when the

product/service is being delivered and recognized as the gap

model which is the comparison between the customer’s

perception of perceived service with their expectation (39).

However, the evaluation of perceived service quality varies

according to industries (14, 33). Thus, the existing scale of

service quality may not be generalized in electronic service

quality setting.

.2 Customer Satisfaction

Previous studies indicate that firms with high competitive

advantage must capture the customers’ positive response first

before reaching competitiveness (7, 11). This positive

response is characterized as a satisfied customer with the

service perceived after experiencing the service quality. In

fact, in mobile commerce, this attitudinal response is important

for the company to fully understand the quality of their service

(

27). So that, firms need to provide superior service in order to

achieve customer satisfaction. It explains that service quality

has a strong relationship with service quality (36). This link is

supported by Expectation Disconfirmation Theory (EDT) that

explains the post-purchase cognitive response of service.

H1: Mobile service quality positively affects customer

satisfaction

To improve the market share, mobile service business

needs to obtain a competitive strategy that caters to customers’

needs in order to achieve long-term success (29, 43). This

means the customer becomes loyal to the service. Unlike

satisfaction, customer loyalty can be categorized in behavioral

and attitudinal (11, 18). Furthermore, in technology-based

service perceived service quality has a positive impact on

customer loyalty (24). Therefore, there is a link between

service quality and customer loyalty and we hypothesized:

The wide advancement of technology and wired

communication devices have thriven the service quality

literature to adopt this advancement (16, 43). The

transformation of the way service is being delivered from

offline to online also lead this trend to the development an

Electronic Service Quality (E-S-QUAL) to gauge the service

quality delivered from websites (37,38). Initial E-S-QUAL

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 6-12

and user attitudes in the context of Location Based Service

(LBS) (26).

H2: Mobile service quality positively affects customer

loyalty

Although Walsh, Evanschitzky, & Wunderlich suggest

critical incidents and income as moderators to be pertinent in

the satisfaction and loyalty relationship, however, there is a

room for other moderators to be included in the link (41). In

fact, Homburg & Giering argued that personal characteristics,

specifically variety seeking, age, and income, are strongly

moderate this relationship (22). In the field of mobile

commerce, we assumed that as features and applications of

mobile technology become highly developed and become

more sophisticated, users’ internal motivation (i.e: personal

innovativeness) could potentially become a key element in

mobile-related service usage (5). This means the relationship

between customer satisfaction and customer loyalty and

between perceived service quality and customer loyalty are

assumed to be strengthened or weakened by personal

innovativeness. Thus, we hypothesized:

By adopting m-technology in the business, firms must first

consider the factors that influence customer satisfaction with

the service as these factors are the key elements to enhance the

loyalty (27). However, the nature of the relationship between

satisfaction and loyalty is being debated. Erjavec argues that

the drivers of satisfaction and customer loyalty are observed to

be diverse according to industries (19). Deng in his study on

mobile instant messages confirms that customer satisfaction

directly boosts customer loyalty (17). Likewise, in the mobile

banking sector, to attain customer and company long-term

relationship, the customer must be satisfied first (4). This

means, there is a positive relationship between customer

satisfaction and customer loyalty. Therefore, we hypothesized:

H3: customer satisfaction positively related to customer

loyalty

H2a: Personal innovativeness moderates the relationship

between customer satisfaction and customer loyalty

H3a: Personal innovativeness moderates the relationship

between service quality and customer loyalty

As stated before, service quality and customer satisfaction

have been identified as one of the major antecedents of

customer loyalty. However, the customer perception on

service quality initially affects customer satisfaction first. This

simultaneous relationship between perceived service quality

and customer satisfaction and its link toward customer loyalty

has been attracting scholar’s attention (13, 34). Whilst some

scholars studying the direct relationship between service

quality and customer loyalty, some examined the mediating

role of customer satisfaction over this relationship (8, 25).

Technology Acceptance Model (TAM) as the basic theory of

such adoption, explain the relationship of perceived usefulness

and perceived ease of use perceived from service quality may

lead to the attitudinal response, i.e: customer satisfaction, and

intention to repurchase the service, i.e: customer loyalty.

Therefore, we hypothesized:

Methodology

In the methodology section, we presented the

questionnaire design and measurement, the sampling method

of the study and data collection and also the profile of the

respondents.

.1 Questionnaire Design and Measurement

The questionnaire designed comprised of three sections,

namely Mobile Service Quality (Contact, Responsiveness,

Efficiency, Privacy, and Fulfillment), Customer Response

(

Personal Innovativeness, Customer Satisfaction, and

Customer Loyalty) and Demographic Information.

Demographic information captured respondents’ profile such

as Age, Gender, Education Level, and Monthly Income. We

included a screening question at the beginning of the survey

questionnaire to filter and ensure that respondents included in

the study were those that met the pre-determined criteria of the

target population which confined the respondents to those who

have conducted the Online Food Delivery service only.

H4: customer loyalty mediates the relationship between

service quality and customer loyalty

.3 Personal Innovativeness

Personal innovativeness is defined as the enthusiasm of an

individual to try any new technology and an individual’s

tendency to accept a new innovation earlier than others (1).

Personal innovativeness is found as internal social motivation

that determines the customer continuance intention in the

mobile commerce post-adoption behaviors (29). Since

customer satisfaction is a strong determinant of loyalty, there

is a potential impact of personal innovativeness to influence

the customers’ reaction toward this post-adoption of mobile-

commerce. Some scholars have employed personal

innovativeness as a moderator. For instance, Jeong, Yoo, &

Heo demonstrated that personal innovativeness moderates the

relationship between perceived need and purchase intention in

mobile RFID service and found the negative effect of personal

innovativeness (28). Another study by Jang & Lee also

discovered the personal innovativeness as strong moderator in

the association between reputation, trust, and entertainment

Figure 1: Research Model

The items used are mostly adapted from prominent studies.

A reflective model of Five dimensions was used by the present

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 6-12

to operationalized service quality (23). Online Food Delivery

and therefore, the study proceeded with the correlation and

regression analyses.

(

OFD) is as part of virtual mobile service, therefore, we used

M-S-QUAL instrument to operationalize the OFDs’ mobile

service quality. Three items were used to measure Personal

Innovativeness (1), three items for Customer Satisfaction (35),

and four items for customer attitudinal and behavioral loyalty

Results and Findings

.1 Correlation Analysis

In this study, the original measures of the constructs were

(

18). Respondent’s responses were measured using Likert

multi-dimensional. Therefore, Cronbach Alpha reliability

values were determined for each construct to ensure the

consistencies of the scales. The values of the Cronbach alpha

of the constructs were found to be at acceptable levels,

suggesting the existence of consistency of the measurements

since all the alpha values were above 0.70 (Table 2). The

service quality variables showed high associations among

them. Therefore, before conducting correlation and regression

analyses, the constructs were checked for any possible

multicollinearity problems. The collinearity statistics

suggested that the associations between scales within each

construct would not create severe multicollinearity problems

since all the VIF values were below the threshold value of 10.

As reveals in Table 3, the correlation analysis indicated that all

service quality variables had positive and significant

correlation with customer satisfaction and loyalty except

personal innovativeness. Satisfaction exhibited high

correlations with efficiency (.557), fulfillment (.460) and

responsiveness (.402). On the other hand, loyalty

demonstrated high correlations with fulfillment (.413),

responsiveness (.427), contact (.432), and satisfaction (.605).

Scale, ranging from 1 (strongly disagree) to 7 (strongly agree).

.2 Sample and Data Analysis

The present study employed purposive random sampling

since the sample frame is hard to discover. 158 usable

responses from OFDs’ customers in Malaysia were received.

As shown in Table 1, slightly more than half of the respondents

of this study were female at 56.96 percent. Majority of the

respondents were between 25-35 years of age (47.47%) and

mostly had managed to obtain a Bachelor or Master degree.

Majority of the respondents earned a monthly income of RM

5000 and less.

Table 1: Sample Profile

Frequency

Characteristics

Percentage

Gender

Male

Female

43.04

56.96

100.00

Age

36.08

47.47

16.46

5 - 35

6 - 45

6 - 55

Table 2: Reliability and Multicollinearity Analysis

Cronbach

Alpha

.781

.796

.779

.766

.775

.778

Collinearity Statistics

6 >

Variable

Tolerance

.569

.694

.630

.473

VIF

100.00

Efficiency (EFFI)

Privacy (PRIV)

Fulfillment (FULL)

Responsiveness (RESP)

Contact (CONT)

1.756

1.441

1.587

2.115

1.916

1.630

Level of Education

High School

6.33

4557

48.10

100.00

Undergraduate

Graduate

.522

.614

Satisfaction (SAT)

Personal Innovativeness

Monthly Income

1000

24.05

32.28

29.75

12.66

1.27

.871

1.060

(PI)

001 - 3000

001 - 5000

Dependent Variable: Loyalty (LOY)

001 - 10000

10001

.2 Mediated-Based Regression Analyses

The Mediated-Based Regression analyses were conducted

100.00

to test the proposed hypotheses. In this study, we tested H1,

H2, and H3 using simple linear regression analyses. The

mediated regression analyses were also performed to

investigate the mediating role (2). Mediation analysis was

conducted to test the mediating role of customer satisfaction in

the relationship between service quality and customer loyalty

association (H4). In the first step (first row of Table 4), SQ

Hierarchical Moderated Regression Analysis was used to

test the hypotheses regarding mediation and moderation.

Regression analysis was used to test the mediation effect of

customer satisfaction in the causal path between service

quality and customer loyalty, while the moderating effect of

personal innovativeness was analyzed using moderated

regression analysis method (42). As suggested by Hair et al.,

(

independent variable) exhibited positive and significant

impact (beta = 0.505) on CL (dependent variable). In the

second step (row 2), SQ demonstrated a positive and

significant contribution (beta = 0.528) towards CS. The third

step suggested that CS had a positive and significant

association (beta = 0.258) with CL. The result of the last step

in Table 4 indicated that when CS (mediator) was included in

the final step (row 4), the result showed that SQ was still

significant (beta = 0.468, sig. 0.000).

(

2014), before testing the hypotheses, we assessed the

variables for any multicollinearity problems. Multicollinearity

test was conducted to check whether two or more variables in

the regression model are highly correlated by examining the

Variance Inflation Factor (VIF) threshold values. Table 2

demonstrated that the VIF values were less than 10. The result

suggested that the multicollinearity problem was not severe

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 6-12

Table 3: Descriptive Analysis and Correlation

Mean

Efficiency

Privacy

5.65

5.22

5.35

5.28

5.05

5.34

5.41

63.03

.764

.928

.952

.945

.989

.895

.875

.488

.368**

.431**

.515**

.377**

.557**

.374**

.017

Fulfillment

.408**

.436**

.480**

.259**

.256**

-.079

Responsiveness

Contact

.489**

.434**

.460**

.413**

-.069

.646**

.402**

.427**

-.037

Satisfaction

.347**

.432**

-.085

Loyalty

.605**

.077

Personal Innovativeness

-.086

** Correlation is significant at the 0.01 level (2-tailed)

In addition, after including customer satisfaction in the

relationship between service quality and customer loyalty, it

resulted in the decrease of the beta values of SQ from 0.505 to

Conclusion and Discussion

The main purpose of this study is to investigate the

relationships between customers perceived service quality of

online food delivery service in Malaysia on customer

satisfaction and customer loyalty. In addition, the study also

examines the mediating role of customer satisfaction and the

moderating effect of personal innovativeness on that

relationship. We propose that high perceived service quality

will enhance customer loyalty as well as the customer

satisfaction in this relationship. This study provides evidence

to support the hypothesis regarding mediation proposed and

concludes that perceived service quality leads to loyalty via

customer satisfaction (8). Thus, online food delivery providers

must firstly attain customer satisfaction before they have the

privilege of securing customer loyalty. Nonetheless, the nature

of the mediation role of customer satisfaction in the OFD

context is found to be partial. In addition, the result of the

moderated regression analyses suggests that personal

innovativeness moderates the customer satisfaction-customer

loyalty link. However, the result fails to support that personal

innovativeness has a moderation role on the service quality and

customer loyalty linkage.

.468. The result indicated that the mediating role of CS was

partial. The results were summarized in Table 4 highlighting

the positive relationships between SQ-CL, SQ-CS, CS-CL and

SQ-CS-CL links. Thus, H1, H2, H3 and H4 were accepted.

Table 4: Result of the Mediated-Based Regression Analyses

Unstandardized

Coefficient

Standardized

Coefficient

Sig.

Path

Standard

Beta

Beta (Std)

Error

.087

.088

.092

SQ-CL

SQ-CS

CS-CL

SQ-

.639

.684

.326

.505

.528

.258

7.310 .000

7.768 .000

3.558 .000

6.466 .000

.458

.071

.468

CS-CL

Dependent Variable = Customer loyalty (CL)

4.3 Moderated Regression Analysis

In testing the moderation effect using the moderated

regression analysis, we used the overall values (mean) for all

main constructs and later the standardized Z-scores of all

constructs were predetermined (3). Table 5 summarized the

steps performed in the moderated regression analyses. H2a

proposed that personal innovativeness had a moderating role

on customer satisfaction-customer loyalty link. The result of

Model 3 showed that personal innovativeness negatively

moderated the relationship between customer satisfaction and

loyalty ( = -0.173; p<0.05). The result implied that when

personal innovativeness was at a higher level, customer

satisfaction had a lower effect on customer loyalty. However,

the significant result suggested that personal innovativeness

moderated the customer satisfaction-customer loyalty link.

Therefore, Hypothesis H2a was accepted. On the other hand,

H3a proposed the moderating effect of personal

innovativeness on service quality-customer loyalty

relationship. In model 4, the results show that  = 0.080 which

indicates that service quality and customer loyalty was not

significantly moderated by personal innovativeness.

Therefore, Hypothesis H3a was rejected.

Table 5: Moderated Regression Analyses

Model

Predictor Variable

Model 2 Model 3

Service Quality

Customer

Satisfaction

Personal

Innovativeness

Customer

.258*

.241*

.485*

.186*

.474*

.237*

.468*

.458*

-.103

-.105

-.112

Satisfaction x

Personal

.173*

Innovativeness

Service Quality x

Personal

.080

Innovativeness

.413

.406

.424

.413

.450

.436

.430

.415

(

adjusted)

54.611

37.823

31.355

28.824

Dependent variable = CL. *Significance at 0.05 level, **Significant

at 0.1 level

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 6-12

Many researchers agree with the notion that service quality

has positive influence on customer satisfaction and customer

loyalty and therefore can be considered as a very robust tool to

enhance customer performances which ultimately leads to

increased sales. In the context of online food delivery, it

implies that when customer perceived service quality as high,

it will enhance customer loyalty (25). Moreover, service

quality also is found to be positively associated with customer

satisfaction. This finding suggests that managers must

understand their service elements and provide what the

customers need in enhancing their loyalty.

The findings of the study also suggest that the service

quality dimensions are positively related to customer loyalty.

Among other dimensions, responsiveness is found to have the

highest correlation with customer loyalty. It indicates that in

order for the customer to become loyal, OFD firm must pay

attention to deliver the service responsively. For example, if

the service fails to deliver the food ordered, the representative

of the company must rectify the problem by either providing a

good explanation or replacement or compensation whenever

the service failure happened. This is very important since an

unsatisfied customer may tell others of his or her bad

experiences.

The result from the moderated regression analysis also

provides interesting results. We discover that personal

innovativeness has a negative moderating effect on the

relationship between customer satisfaction and customer

loyalty. This means that a customer with high personal

innovativeness will decrease the significance of customer

satisfaction-loyalty relationship. The majority of OFD users

are young people who are mostly engaged with activities

involving the usage of technological and innovative tools.

They have no problem getting the information and switching

to another OFD provider if they feel their needs are not

attended to. The switching behavior usually happens when

other OFD providers also offering the same services but with

cheaper prices. Thus, a company must continuously improve

their OFD service by considering consumers’ personal

innovativeness. By understanding their nature and

characteristics, it will lead themto form a new market segment.

As the limitation of this study, firstly, our sample of 158

online food delivery service is somewhat small. Future studies

on service quality, especially online service quality, can

perform studies by collecting larger sample size and adopting

different improved measures of service quality in order to

adapt to the existing trend. Secondly, in relation to the

mediating role, future study should include other potential

consequences besides customer satisfaction to be investigated

in service quality and loyalty relationship. Finally, since

personal innovativeness is one of many other personal internal

characteristics, other possible moderators, e.g., self-efficacy,

self-consciousness, interpersonal interactions, novelty-seeking

etc, can be considered for future investigation.

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