Perceived Price Premiums and Consumer Continuance Intention in Online Food Delivery: A Moderated Mediation Model for Vijayawada Consumers

Author

DR. Mohan Golli , MS. Chilukuri Sai Ankitha


Abstract

 Food delivery companies in India are facing tough competition as they grapple with their margins and consumer loyalty.Food delivery companies in India are seeing a competitive landscape as they tackle margins and consumer loyalty. Online food delivery platforms in India make their money from the "perceived price premiums" of their restaurants, which are higher on their menus than at the store, delivery fees, and platform fees, surcharges on peak hours and high delivery fees. This study aims to investigate the impact of consumers' perceptions of the price premium on their intention to use food delivery apps and under what conditions they do so. The design is based on expectation-confirmation theory, perceived value framework, and price-perception research and includes a perceived value as a mediator between perceived price premium and continuance intention, and price sensitivity as a moderator between the first part of the mediation. Surveyed respondents: 300 respondents using apps in Vijayawada are selected using a structured questionnaire and the data analysed in MS Excel using chi-square independence test, oneway ANOVA, multiple linear regression and regression based conditional process analysis. The relationship between perceived price premium and continuance intention is negative and significant (B = 0.29, p <.001), with an indirect effect via perceived value that is significant (indirect effect = 0.19, 95% CI [0.25, 0.13]). There is no significant direct relationship between perceived price premium and perceived value of the service (B = 0.11, p = .24). The conditional indirect effect is not significant at low price sensitivity (0.30), but is substantial at high price sensitivity (0.07); the overall effect, shown as an interaction with B = 0.31, is significant at p <.001. Income is associated with order frequency, (9, N = 300) = 50.36, p <.001, and perceived price premium varies significantly across income groups, F(3, 296) = 6.81, p <.001. The results indicate that delivery services have the capacity to protect perceived value and retain customer loyalty and should therefore develop value-based propositions, specific to the situation, for price sensitive and lower income customers.



Keywords

Submitted through to the 1. Perceived price premium, 2. Continuance intention, 3. Perceived value, 4. Price sensitivity, 5. Online food delivery, 6. Moderated mediation,



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