• International Journal of Technology (IJTech)
  • Vol 12, No 3 (2021)

The Impact of Online Food Applications during the Covid-19 Pandemic

The Impact of Online Food Applications during the Covid-19 Pandemic

Title: The Impact of Online Food Applications during the Covid-19 Pandemic
Sevenpri Candra, Monica Ayudina, Muhammian Aga Arashi

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Cite this article as:
Candra, S., Ayudina, M., Arashi, M.A., 2021. The Impact of Online Food Applications during the Covid-19 Pandemic. International Journal of Technology. Volume 12(3), pp. 472-484

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Sevenpri Candra Management Department, BINUS Business School Undergraduate Program, Bina Nusantara University, Jakarta 11480, Indonesia
Monica Ayudina Management Department, BINUS Online Learning, Bina Nusantara University, Jakarta 11480, Indonesia
Muhammian Aga Arashi Management Department, BINUS Online Learning, Bina Nusantara University, Jakarta 11480, Indonesia
Email to Corresponding Author

Abstract
The Impact of Online Food Applications during the Covid-19 Pandemic

In early May 2020, the Government of Indonesia announced that the Covid-19 outbreak was categorised as a pandemic and imposed several rules in order to minimise the negative impacts arising from this pandemic. This has caused people's routines to change, especially in terms of travelling and eating. This study aims to determine the online purchase intention and actual buy of food and beverages purchased using an online food application, especially during the Covid-19 pandemic. A structural equation model is used to perform the analysis in this research. This study was conducted by sending an online questionnaire to members of the public who were in a work from home or split office situation and had made a purchase through an online food delivery application during the Covid-19 pandemic. The sample used for analysis in the study consisted of 446 respondents. The results showed that subjective norms, e-service quality, and health consciousness had an impact on these online purchase intention activities. However, food and beverage quality is not a factor that can trigger online purchase intentions. On the other hand, there is a significant relationship between online purchase intentions and actual buy, so it can be concluded that the higher the online purchase intention, the more the actual buy will be increasingly realised. Online food delivery service providers and food and beverage sellers can increase promotions to increase online purchase intentions and the frequency of actual buy.

e-service quality; Food quality; Health consciousness; Online purchase intention; Subjective norm

Introduction

The Covid-19 pandemic has had a far-reaching impact on not only human health but almost all the fabric of human life. Covid-19 is a respiratory infectious disease similar to pneumonia that is caused by the coronavirus (Taylor, 2020; WHO, 2005). Globally, in February 2020, more and more countries confirmed cases and deaths caused by Covid-19. Likewise, in Indonesia at the beginning of March 2020, there were patients who were positive with Covid-19 (Kemenkes Republik Indonesia, 2020). As the number of patients increased and Covid-19 was easily transmitted, the DKI Jakarta Government issued a policy so that employees who work can do activities from home. Following the increasing and expanding infections between regions and the high numbers of cases and deaths in Indonesia, the Government of Indonesia imposed large-scale social restrictions, with the exception of offices and strategic agencies meeting criteria for defence and security, public order, food needs, fuel, oil and gas, health services, finance, communications, industry, exports and imports, logistics distribution, and other basic needs (Putsarna, 2020). In essence, the quarantine of this region aimed to enforce physical distancing to be able to minimise the increasing number of cases in several major cities in Indonesia (Amirullah, 2020; Tamtomo, 2020).

Large-scale social restrictions meant that estimated economic growth in 2020 fell to 2.3% (Sembiring, 2020). The decline in economic activity has the potential to put pressure on financial institutions because credit cannot be paid, and companies will experience difficulties from revenue due to the Covid-19 pandemic. The decline in Indonesia's economic growth is due to weakening economic activity in several sectors, including hotels and tourism, airlines, meetings, incentives, conferences, exhibitions (MICE), bars and restaurants, cinemas and concerts, sports, malls and retail, consumer electronics, automotive, and fuel (Pramudita, 2020). The bar and restaurant or food and beverage sector is one of the sectors that experienced weakening in economic activity, but the sector still has the potential to make an economic turnover even though it is not under normal conditions. One of the ways to do this is to prioritise online food delivery sales and takeout (Berawi, 2020; Cahyadi, 2020).

The food and beverage sector is one of the business sectors affected by the adjustments to government regulations designed to temporarily stop dine-in services, and this spurred restaurants to operate via online food delivery (CNN Indonesia, 2020). A qualitative study of the sociocultural attitudes towards of customers food online food delivery revealed several aspects that affected their consumption, including comfort, saving time, customer access, and social experiences to share when bringing food to eat at home (Blow et al., 2019). In 2019, an estimated 1.92 billion people purchased goods or services online, and electronic retail sales surpassed 3.5 trillion U.S. dollars worldwide (Coppola, 2021). This figure keeps climbing every year, as internet access and the adoption of technology are rapidly increasing. Indonesia is the 10th largest e-commerce growth country, with 78 percent growth (Badan Pusat Statistik, 2019; KOMINFO, 2019). Online business is predicted to continue to thrive in Indonesia for the next few years. This is predicted to occur due to the increasing purchasing power of the community and better levels of technological literacy and internet access throughout Indonesia (Annur, 2020a; Annur, 2020b). Based on data from Moka, which is a startup provider of digital cashier services in Indonesia, there was an increase in food or beverage purchases by the online food delivery method by 7% from January to February 2020 (Soenarso, 2020). This can be seen in the increase in transactions in Grab Food online food delivery, which increased by 4% in March 2020 (Hastuti, 2020). McDonald's, as an international fast food restaurant, also experienced growth in non-cash transactions on drive-thru or take-away services of as much as four times, with an average daily transaction value rising around 170% after the first week of being informed of a pandemic in Indonesia (Pertiwi, 2020). There was an increase in online food delivery because the government recommended not to leave the house to minimise the spread of Covid-19.

Today's delivery service is not only performed by conventional restaurants, as the technology world has made it easier for us to deliver online through applications on smartphones: Go-Jek has the Go-Food feature, Grab has the Grab Food feature, and WhatsApp chat can place an order directly with the seller. The ease of online food delivery can help people to continue to make purchases without leaving home during the Covid-19 pandemic. This is in line with an increase in demand of 10% for services through Go-Food and Grab Food (Annur, 2020b). In addition, some food and beverage merchants offer online food delivery services through the WhatsApp application; this is done to maximise reach to consumers during the Covid-19 pandemic ( Ismaya Gourmet Shop, 2020; JW Marriot Hotel Official, 2020; Sate Taichan “Goreng” Official, 2020; Berawi, 2021).

Based on the above explanation, transaction data for people's desires to shop online in a pandemic are increasing. According to Nystrand and Olsen (2020) said that online purchase intentions occur because of the subjective norms held by the buyer. This study uses the theory of planned behaviour, with an extension of the framework of the variables for self-efficacy, subjective norms, and hedonic and utilitarian eating values. Hypothesis relationships are tested using a structural equation model. The results of this study indicate that attitude and intention affect the consumption of functional foods. The research also suggests that the food industry or food and beverages need to functionally increase the value of food to be commercially successful.

Other research conducted by Kusumaningsih et al. (2019) says that online purchase intentions occur because of an attachment to health consciousness. This research uses the structural equation model and examines a population of respondents who have the intention to buy organic food by taking samples from a population of 150 respondents. The result is that health consciousness and environmental attitude impact attitudes towards purchasing organic foods, while subjective norms are not a factor that actively influences organic food purchases. The research provides advice by increasing knowledge about the benefits of organic food for the health and environment of the customer, so that increasing consumption of organic food can be achieved. Moreover, research from Xiao et al. (2018) explains that online purchase intentions occur because of the influence between food amd beverage quality and customer buying interest.

Based on several previous studies, it can be seen that the phenomenon of online purchase intention can be predicted by subjective norms, health consciousness, food and beverage quality, and e-service quality (Wee et al., 2014; Memery et al., 2015; Abdulsahib et al., 2019; Kusumaningsih et al., 2019). By looking at online purchase intentions, we can see the actual buy of transactions that will be carried out in online food applications (Sulek and Hensley, 2004; Rauniar et al., 2014; Memery et al., 2015; Ueasangkomsate and Santiteerakul, 2016; Curvelo et al., 2019; Candra et al., 2020a; Nystrand and Olsen, 2020). This research was conducted to see the actual buy of food and beverage transactions through online food applications during the Covid-19 pandemic in several regions in Indonesia. The benefit of the research is to help better understand the conditions and tendencies of consumers in the community who are in the condition of working from home or using a split office and use online food delivery application services during the Covid-19 pandemic. Moreover, this study will enrich the context of research related to the utilisation of online food applications, especially during the Covid-19 pandemic and in the context of the Indonesian state. This is important because there are still limited studies available about online food delivery, especially in Indonesia (Rahmaningtyas et al., 2017; Kusumaningsih et al., 2019; Suhartanto et al., 2019).

A subjective norm is a personal view of actions that are encouraged and influenced by other parties that are considered important by the person ( Shin and Hancer, 2016; Asvial et al., 2021). A subjective norm is a part of normative belief, where the belief refers to the beliefs and views of people that are important to an individual. Sometimes it may not only be the views but also the pressure from other parties that are important to an individual. Subjective norms can be linked to online purchase intentions, and based on research conducted by Hasbullah et al. (2016) using the statistical method of multiple regression analysis, subjective norms have a significant impact on online purchase intentions. Referring to Kusumaningsih et al. (2019) to study the relationship between subjective norms and online purchase intentions using the statistical analysis method, structural equation modelling, the results are similar: namely, there is a relationship between subjective norms and purchase intention. The greater the influence of the subjective norm, the stronger the influence on one's purchase intention. Due to the encouragement of the closest people to oneself, such as family, close friends, and one's community, a higher purchase intention will make someone buy something. This gives us the first hypothesis that can be established for this study:

H1: There is a relationship between subjective norms and online purchase intention.

Based on research from Xiao et al. (2018), customers have a tendency to seek nutritious food that has health value, so food and beverage quality has an impact on purchase intentions. In addition, Suhartanto et al. (2019) showed that food and beverage quality has several levels of assessment, such as whether the appearance of food and drinks is interesting, there are diverse types, the tastes of food and beverages are delicious, and there are choices of healthy food or drinks. his research reveals that food and beverage quality has an impact on online loyalty. Furthermore, a study by Sulek and Hensley (2004) shows that food and beverage quality has many characteristics, such as a diverse menu, good food taste, good food appearance, and healthy food choices; this study establishes a relationship between food and beverage quality and purchase intention. Based on these three studies, it can be hypothesis that:

H2: There is a relationship between food & beverage quality and online purchase intention.

A study by Ahmed et al. (2017) found that online shopping businesses in China can achieve high buying interest as a result of e-service quality, which has an impact on purchase intention. Moreover, Kalia et al. (2016) explained that ease of use, fast responses, informativeness, and a sense of security when using e-services can increase purchase intention, to show a relationship between e-service quality and purchase intention. Based on the two studies, it can be hypothesis that:

H3: There is a relationship between e-service quality and online purchase intention.

Consumers are beginning to have an awareness of how healthy the food they consume is in terms of nutrition, health, and quality, and this can affect the criteria for purchasing food (Chen, 2009). Before consumers can make purchases, of course they will refer to purchase intentions for what they will consume. Based on research conducted by Meireles (2018) regarding the relationship between health consciousness and purchase intentions in the population of Lisbon, Portugal, a correlation was found between health consciousness and purchase intention in purchasing organic food in local supermarkets in Portugal. Other research by Abdulsahib et al. (2019) studied hypotheses about whether health consciousness has a significant relationship to purchase intentions for healthy food. That research uses the statistical method of partial least square analysis on a sample of the population data collection in Iraq. The result is that health consciousness and purchase intentions of healthy food are related. It can be concluded that if health consciousness is correlated to purchase intentions, it will have the slightest relationship. Thus, another hypothesis can be established for this study:

H4: There is a relationship between health consciousness and online purchase intentions.

Online shopping has become a rapidly developing trend in the world, especially with the presence of information and communications technology (Ofori and Appiah-Nimo, 2019). Of course, before someone chooses something to buy, there is a purchase intention first. Purchase intention represents the level of probability that an actual buy will occur by consumers; it is how consumers think and consider buying something (Wee et al., 2014; Candra et al., 2020b). By increasing purchase intention, the possibility of actual buy actions will become more apparent. Research by Ofori and Appiah-Nimo (2019) studied whether there is a correlation between purchase intention and actual buy in online shopping activities. The research was conducted using the SEM-PLS method, which found that there was a strong relationship between purchase intention and actual buying behaviour. It can be concluded from these studies that there is a tendency for actual buy to be closely related to purchase intention. Thus, a final hypothesis can be established for this study:

H5: There is a relationship between online purchase intention and actual buy.

Conclusion

Based on this study, there are still concerns from users regarding the level of application security used in online food delivery. The matter of concern is related to personal information. For this reason, it is necessary for online food application service providers to improve customer data security and periodically educate users themselves. In using this service, it turns out users prefer it because they personally want to use the application. This study shows that not everyone closest to the respondent expects respondents to buy food and beverage online. Thus, the introduction of online food delivery application services will be more appropriate if it is more focused on the individual directly than through the testimony of the closest people to that individual.

With most respondents aged from 17–25 years, the results of the study are more likely to show that healthy food and beverage is not the main factor in purchasing. This certainly needs to be a concern for online food application service providers to combat the dangers of obesity so that it can be prevented as early as possible. This can be done by advertising or socialising for weight control and maintaining health from a young age, especially the age of 17–25 years, to trigger consumer awareness to maintain their physical condition. Moreover, food beverage businesses should provide healthy food & beverages that are attractive and innovative while conducting campaigns to consume healthy food and drinks. As an example, Lemonilo is one of the pioneers of technology-based healthy food and beverages in Indonesia; they provide food, cooking spices, and drinks and campaign to consume healthy food through cooperation with several cafes and ropang (grilled bread) (Handoko, 2018).

This study shows a lack of respondents who will conduct online food and beverage transactions within one week, so the advice for owners of online food delivery applications is to do a campaign directed at users in order to increase customer online purchase intentions. Moreover, transactions are carried out in a week only as many as 1–3 times. This is also a challenge for online food application service providers and food and beverage business owners, so that they can provide promotions through applications or create applications for this service with a gamification approach. Thus, the use of this application is expected to be more interesting and increase transactions in the purchase of food & beverages.

This study still has limitations, namely that the results of this study were obtained from respondents at residences in mostly Java. By carrying out further research in other environments, the researchers believe they will get results and new views that are more detailed. In addition, this research has not yet thoroughly examined the convenience of using smartphone-based technology applications, so there is still room for research development by looking at this technology from a different perspective. With the development of this research, it will be able to provide a more complete picture of application-based online food delivery services.

Supplementary Material
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