Consumer's choice of food store for delivery in HCMC

Abstract

The main purposes of this paper are identify the factors which effecting to consumer’s selection and the mechanisms and current situation of food delivery services in Vietnam. Using econometric model RUM to analyze the behavior of consumers to each alternative options. Based on theory random utility, utility depends on the product attributes and consumer choice of products in the collection of the same products in the market depending on the utility from each category and products provided the highest utility will be selected. This study was conducted with 97 consumers in Ho Chi Minh City. The methodology was a combination between the qualitative and quantitative methods. To collect the necessary information for research purposes, the real orders from 97 consumers was used including information about gender, location, nationally, and the properties of products and suppliers that consumers are interested. The regression models (RUM) used to evaluate the factors effecting to the choice of consumers. The conclusion covers some key results, the contribution of this study, recommendations and restrictions. The result of this study said that the prices of products might not affect to the customer’s decision to order food online. The price variable was not signification in the result of regression model. However, the result showing consumer’s interest could be affected by other barriers, in details, the request of minimum value of order and delivery fee. It could be true, when they said that the customers willing to accept the prices of products, but they considering about the extra cost which has been added to their orders for delivery. In addition, the customers who ordering salad for delivery were an expats living and working in Ho Chi Minh City.