THE INFLUENCE OF DISCOUNT, DELIVERY FEE, AND CASHBACK TOWARD CUSTOMER PURCHASE DECISIONS AND LOYALTY IN ONLINE FOOD DELIVERY SERVICES

• Main Author: Aliya Silmi, Adam
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72849
• Institution: Institut Teknologi Bandung

Recently, online food delivery service companies have been adjusting their sales promotion strategies to obtain more profit. This includes the decreased value of discounts, delivery fees, and cashback vouchers given to the customer. Previous research reveals that promotion highly influence customer loyalty. Since discount, delivery fee, and cashback is forms of sales promotion in online food delivery service, therefore, this research aims to examine the influence of discounts, delivery fees, and cashback toward customer loyalty in the online food delivery service industry, specifically in GoFood, GrabFood, and Shopee Food, with brand trust, purchase intention, and purchase decision as mediating variables. This study employs a quantitative approach using an online survey with a total of 2.886 responses as the primary data source distributed to online food delivery users across Indonesia. Furthermore, descriptive statistics and PLS-SEM are used to analyze the data. The result indicates that discounts, delivery fees, and cashback have a positive influence on brand trust. Brand trust, purchase intention, and purchase decision mediate the relationship between discount, delivery fee, and cashback towards loyalty. Discounts, delivery fees, and cashback also have a direct influence toward customer loyalty. This study points out the practical direction for online food delivery companies. It reveals that customers are not loyal to one platform and explain that customers rely on sales promotion to purchase online food. This research also fills the gap between circumstances before and after online food delivery companies adjust their sales promotion strategy. Eventually, the insight from this research may help companies to revamp their strategy to become more profitable and sustainable. Other than that, this study may also contribute to future research related to the influence of discounts, delivery fees, and cashback toward loyalty.