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POLITECNICO DI MILANO
SCHOOL OF INDUSTRIAL AND INFORMATION ENGINEERING MASTER OF SCIENCE IN MANAGEMENT ENGINEERING
ANALYSIS OF CRITICAL SUCCESS FACTORS FOR SIX SIGMA IMPLEMENTATIONS IN ONLINE FOOD DELIVERY INDUSTRY
(TWO-SIDED MARKET)
Supervisor: Prof. Alessandro Brun
Authors: Panthalarajakumaran Kamaraj (863387) Naveen Kumar Thangavelu (863389)
2 TABLE OF CONTENTS ABSTRACT ... 5 CHAPTER 1 ... 7 1.1 Introduction ... 7 1.2 Theoretical Background ... 8
1.2.1 History of Food Delivery Services ... 8
1.2.2 Evolution of Modern Food Delivery Services ... 9
1.3 Literature Review ... 10
CHAPTER 2 ... 12
2.1 Online Food Delivery ... 12
2.1.1 Two Types of Online Food Delivery Industry ... 13
2.2 Problem Description ... 13
CHAPTER 3 ... 16
3.1 Critical Success Factors of Online Food Delivery Industries ... 16
3.1.1 Management Involvement and Organizational Commitment... 16
3.1.2 Encouraging and Accepting Cultural Change ... 16
3.1.3 Organization Infrastructure and Culture ... 17
3.1.4 Education and Training ... 18
3.1.5 Linkage Six Sigma to Business Strategy ... 18
3.1.6 Linkage Six Sigma to Customers ... 18
3.1.7 Linkage Six Sigma to Human Resources... 19
3.1.8 Linkage Six Sigma to Suppliers ... 19
3.1.9 Understanding Tools and Techniques Within Six Sigma ... 19
3.1.10 Project Selection, Management and Control Skills ... 20
3.2 Website Quality Improvement ... 20
3.2.1 Quality of Information ... 21
3.2.2 Technical Adequacy ... 22
3.2.3 Web Appearance ... 22
3.3 Measurement System ... 22
3 3.4.1 Efficiency ... 24 3.4.2 Fulfillment ... 25 3.4.3 Reliability ... 25 3.4.4 Privacy ... 25 3.5 Recovery E-SERVQUAL ... 25 3.5.1 Responsiveness ... 26 3.5.2 Compensation ... 26 3.5.3 Contact ... 26 CHAPTER 4 ... 27 4.1 Research Methodologies ... 27 4.1.1 Define ... 27 4.1.2 Measure ... 27
4.1.3 Population for Survey ... 28
4.1.4 Research Survey Design ... 28
4.1.5 Analyze/Improve/control ... 29
CHAPTER 5 ... 30
5.1 Analysis and Results ... 30
5.1.1 Website Quality Improvement ... 30
5.1.2 Prioritization of Service Quality Dimensions ... 34
5.1.3 Service Quality Measurement ... 36
CHAPTER 6 ... 37
6.1 Conclusion ... 37
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List of Figures
1. Growth Rate of Online Food Industry ... 10
2. Online Food Delivery (Two-Sided Market) ... 12
3. Online Food Delivery Process ... 15
4. Quality of Dimensions ... 21
5. E-SERVQUAL Model ... 23
6. Dimensions of Service Quality... 24
7. Google Ratings on Food Delivery Services ... 30
List of Tables 8. Tools Used in Measuring Phase ... 27
9. E-SERVQUAL Questionnaire ... 29
10. Prioritization of Service Quality Dimensions ... 35
List of Graph 11. Survey on Web-Based Delivery Services ... 31
12. Survey Result on Website Influence ... 31
13. Survey Result on Website Information ... 32
14. Survey Result on Website Design ... 33
15. Survey Result on Website Trust ... 33
16. Survey Result on Website Ease of Use ... 34
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ABSTRACT
Purpose: Six Sigma, branching out initially from electronics industries and has marked its territory in almost all sectors. Due to the lack of bibliographic analyses on Six Sigma implementations in the two-sided market, this paper deals with the analysis of critical success factors for implementation of Six Sigma in the two-sided market or multi-sided platform(MSP). This case study mainly focuses on online food delivery industries (Deliveroo, Foodora, Just Eat etc..,). Specifically, this research work addresses the question concerning multi-sided platform towards Six Sigma approaches: Is it necessary to consider the two factors called “Linkage Six Sigma to Website quality improvement” and “Measurement systems for service quality” for implementations of Six Sigma principles in online food delivery industries and if so, how effective it will be? Further analysis is made to identify the defect, the cause of the defect and improve the delivery process by implementing the best solution.
Design/Methodology/Approach: To determine the need for website quality improvement and measurement of service quality, DMAIC is considered. DMAIC (Define, Measure, Analyze, Improve, Control) methodology of Six Sigma is a systematic data-driven approach to reduce the defect and improve the quality of any type of business. By using this common methodology of Six Sigma in online food delivery industries, this paper legitimizes the need of the website quality improvement and the measurement for service quality. A survey with 13 polls concentrating on the dimensions of website quality and service quality was flowed among the students (mainly using food delivery services).
Findings: Website quality, customer satisfaction, on-time delivery, trust are one among the main dimensions of the online food industry. The
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respondent’s examination additionally demonstrates the significance of website quality improvement and the measurement system for service quality in web-based food delivery services. Surprisingly, the outcome indicates greater part of the respondents’ responses were exclusively in view of the impact of the website in the ordering process. In the survey for the measurement system, the customer expectation level is more contrasting to their perception level. The measurement system helps to enhance the service quality and reduce the gap between the customer perception and expectation. In the light of analysis, Online food delivery industries can be viewed as the two critical success factors while implementing Six Sigma projects.
Originality: The paper is the innovative approach for Six Sigma implementations in web-based food delivery services (two-sided market) and its related critical success factors. To increase the customer satisfaction in terms of delivery time, cost and the inferior quality of service, the Six Sigma project for online food delivery service context is inevitable. This paper could be considered as the subjective advance for the online food delivery service.
Keywords: Two-sided market, Online food delivery, Linkage Six Sigma to
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CHAPTER 1
This section starts with an introduction to the Six Sigma and online food delivery industries. Theoretical background of online food industries and bibliographic examination with respect to critical success factors for Six Sigma implementations is clarified.
1.1 Introduction
Starting from Motorola, Six Sigma implementation has paved its path in a different sector. Six Sigma has different interpretations and definition for different people. However, many organizations worldwide have modified Six Sigma methodology and tools to fit their own operations. Over the past decades, the evolution of two-sided markets is increasing dramatically. Rochet and Tirole (2006) define a two-sided market as one in which the volume of transactions between end-users depends on the structure and not only on the overall level of the fees charged by the platform. In the traditional value chain, value moves from left to right: to the left of the company is cost, to the right is revenue. Due to a distinct group of users on each side of the platform, the two sided-markets has both cost and revenue to the left and to the right; it incurs costs in serving both groups and can collect revenues from each, although one side is often subsidized.
The online food delivery comes under the two-sided market. Online food delivery is a popular trend all around the world. The rise of digital technology is a successful revolution in the two-sided market. Consumers familiarized to shopping online through apps or websites, with maximum convenience and transparency, increasingly expect the same experience when it comes to ordering food.
The results of a research mainly focus on Six Sigma implementation process in the web-based food delivering industries, with an attention to
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including the two success factors such as Linkage Six Sigma to website quality improvement and measurement systems for service quality. The paper structures as follow;
Section 1 consists of outline of the two-sided market and theoretical background of online food industries. With a subdivision of the literature review of on the topic of critical success factors explained by several authors on different sectors in implementing Six Sigma and on website and service quality.
Section 2 starts with quick overview of online food delivery industries. For further research and analysis, the problem is identified in the problem description part.
In Section 3, CSF for Six Sigma implementations on online food delivery industries is explained and the related frameworks of website quality and service quality measurement system are clarified. Critical analysis and research methodology is enlightened in Section 4.
In concluding section, authors conclude their statement by considering two success factors such as Linkage Six Sigma to website quality improvement and service quality measurement system while implementing Six Sigma principles.
1.2 Theoretical Background
Online food delivery is a concept coming to light nowadays. According to the research report, "Global Online Food Delivery and Takeaway Market - Global Online Food Delivery and Takeaway Market are projected to exhibit a CAGR of 15.25% during 2016-2021.
1.2.1 History of Food Delivery Services
Despite the fact of its peak popularity, the question remains, how did this service originate and from where this idea came from? Stefan Thomke,
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delivery started 125 years ago in Mumbai with about a hundred men which are known as "dabbawallas".
This concept became popular and spread widely during the second world war this service was started because most of the homes and kitchen appliances of a large population were destroyed and they did not have any place or food to cook. Lately, this idea was adopted by other countries. Waiter.com is the first online restaurant delivery service on the web, it pioneered the concept of online restaurant ordering in 1995.
1.2.2 Evolution of Modern Food Delivery Services
With the passage of time, a lot of changes and improvement was made to make this service more attractive than ever. Now there are many online foods delivering industries doing business across the world such as Deliveroo, Just Eat, Foodora, and UberEATS. These industries are intermediate between the local restaurants and the online community.
The outcome of a Statistical survey by The Statista portal, the European food delivery markets may reach the total the Revenue of US$28,346m in 2018 and is expected to show an annual growth rate (CAGR 2018-2022) of 17.0 % resulting in a market volume of US$53,124m in 2022. Especially, the market's largest segment is the "Online Takeaway" with a market volume of US$26,502m in 2018.
John Glass, Morgan Stanley's U.S. restaurant analyst says, online food delivery could grow by 16% annual compound rate by next 5 years.as sales via online delivery channels grow, so might the risk of cannibalization and profit-margin pressure for the restaurant sector (Fig 1). Whilst Ordering directly through restaurant website or phoning them directly is increasing only 4% over the years.
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Figure 1 Growth Rate of Online Food Industry Source: Morgan Stanley research
1.3 Literature Review
The systematic literature started out with reviewing the papers concerning Six Sigma implementation and its critical success factors. In their papers, Jiju Anthony and Ricardo Banuelas (2002), organized keys factors for implementing Six Sigma in multinational companies in a descending order from Management involvement and commitment as the most important to “Linking Six Sigma to employees” to the least ingredient. In the same year Ricardo Banuelas Coronado and Jiju Anthony, (2002), published another paper regarding the same topic but with the addition of another factor “Communication”. The factors from their research had been considered for the further research of the paper regarding online food delivery industries.
Y.H. Kwak, F.T. Anbari (2006) and Alessandro Brun (2010), enlightened the correlation between the critical success factors such as Education &Training, and Project Prioritization Selection & Management Skills. To direct
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the research in a correct direction, the first thing was to sort out the related to CSF implementation in Six Sigma for service organization. Jiju Anthony (2006), Jiju Anthony (2007), Frenie Jiju Anthony (2007), Maneesh Kumar (2007), Byung Rae Cho (2007) pointed out the some of the prominent critical factors in a service organization.
There are many papers about Six Sigma but the choice of understanding the real-life study was by mainly reviewing the Henderson and Evans, (2000), Jiju Anthony, (2004), and Vimal Kumar and Mukti (2018).
By reviewing all the given papers, authors were able to get clear view on Six Sigma concepts.
Due to the lack of papers publishing on Six Sigma implementations related with two-sided markets, next part of the bibliographic analysis started with the case studies on two-sided markets and particularly on online food delivery industries and its related key success factors,
Zulkarnain Kedah (2015), and articles on the changing the market for food delivery by Mckinsey & company (2016).
Website quality dimensions for online food delivery industries were understood by reviewing many papers such as Kim and Stoel (2004), Aladwani and Palvia (2002), and M. S Janita, F.J Miranda (2018). The measurement system and its related model for measuring the service quality dimensions were understood by overviewing the papers of Zeithaml, Parasuraman, and Malhotra (2000, 2002), B. Palesea and A. Usaib (2018).
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CHAPTER 2
This chapter debatesa quick overview of online food delivery services and their types. Problem description elaborates in detail to understand the problems in deep and to find a suitable method.
2.1 Online Food Delivery
All the main restaurants around the globe include food delivery services so that they can ease their customers when possible. Even though a real proportion of population love to enjoy dining at restaurants, however on some occasions they also prefer the prepared food delivered at their home. The on-demand food industry has disrupted traditional markets by adopting a full-cycle approach to the three basic components of a meal experience at a restaurant: Ordering, Cooking and Delivering. And the online
food delivery industries act as a two-sided market between the local restaurants and the customers (online community). the below diagram
illustrates the role of online food delivery service companies.
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2.1.1 Two Types of Online Food Delivery Industry
Independent food ordering (IFO) and aggregate food ordering (AFO) are two main providers of online food ordering services. One of the most commonly used models is the traditional one allows the consumer to place an order with the local restaurant via phone (especially, pizza) and waits for the restaurant to bring the food to the order. Due to development of online business, the consumers sway more towards new delivery method.
2.2 Problem Description
Critical success factors in Six Sigma implementations can be altered according to the favor of each sector. A lot of research is carried out to understand the implementations of Six Sigma. Despite many projects on Six Sigma, papers on online food industries are rare. This paper clearly focuses on online food delivery industry. To find the key factors a recommended bibliographic study on Banuelas Coronado and Anthony (2002), and Jiju Anthony and Ricardo Banuelas (2002) were carried out. These papers present the key ingredients for the effective introduction and implementation of Six Sigma in UK manufacturing and services organizations. Twelve CSF implemented were as follows,
• Management involvement and commitment. • Cultural change.
• Communication.
• Organizational infrastructure. • Education.
• Linking Six Sigma to business strategy • Linking Six Sigma to a customer.
• Linking Six Sigma to human resources. • Linking Six Sigma to suppliers.
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• Understanding tools and techniques within Six Sigma. • Project management skills.
• Project prioritization and selection.
Alessandro Brun, (2010) made two small modifications by expanding ‘‘Training’’ to ‘‘Education and Training’’ and ‘‘Organizational infrastructure’ ’to ‘‘Organizational infrastructure and culture’. This paper focuses on Implementing Six Sigma in the two-sided market particularly, online food delivering industries.
The above twelve factors have been modified corresponding to online food industries. Cultural change and communication are combined as
“Encouraging and accepting Cultural change “and Project management skills
and Project prioritization and selection are modified as “Project selection,
management and control skills” Y.H. Kwak, F.T. Anbari (2006). In addition to the above ten CSF, two more factors “Linkage Six Sigma to Website quality improvement” and “Measurement system for service quality” are introduced.
Ordering, Cooking and Delivering are three main processes of the online food delivery industry. By formulating these three processes, three business models were introduced into the market.
1. Order only model
2. Order and delivery model 3. Fully integrated model
Whatsoever the model is, most of the work is focused towards the ordering and the delivery service. The process model diagram describes the online food delivery processes from ordering the food on the website to delivering the order to the customer.
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Figure 3 Online Food Delivery Process
According to the process model, from the process of customer place, the order on food app/portal to the money transaction between the customer and online owners depends on the website(Internet). On the other hand, the preparing and delivering the food to the final customer deal with human behavior. The above diagram indicates that most of the process depends on the website of the online food delivery company. It clearly understood that the website plays a crucial role in ordering and delivering process. To provide a better service, the website and service quality should meet the customer perception.
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CHAPTER 3
This chapter consists of critical success factors for Six Sigma implementations explained in the form of online food delivery companies. And the second part deals with the website quality and service quality dimensions for the same.
3.1 Critical Success Factors of Online Food Delivery Industries
From analyzing the various research paper about Six Sigma implementations, it was understood that the twelve critical success factors play a vital role in implementing Six Sigma in any organization. Those CSF also applicable for online food delivery industries. They can be considered and structured as follows,3.1.1 Management Involvement and Organizational Commitment
All successful organization, implementing Six Sigma process requires top management involvement and commitment Ricardo Banuelas Coronado Jiju Anthony, (2002). Top management (Master black belt) should involve, participate actively Six Sigma projects at both strategic and operational level. Monitoring their employee (both aggregators and delivery riders) activity through evaluating the system in daily or weekly. Y.H. Kwak, F.T. Anbari (2006) Organizational infrastructure needs to be established with well-trained individuals ready for delivery. Implementation of Six Sigma projects means a commitment of resources, time, money, and effort from entire the service organization.
3.1.2 Encouraging and Accepting Cultural Change
People facing cultural change and challenges due to the implementation of Six Sigma must understand the change first. Y.H. Kwak, F.T. Anbari (2006)
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individuals to overcome resistanceand educating senior managers, employees, and customers on the benefits of Six Sigma.
3.1.3 Organization Infrastructure and Culture
The collaboration, correspondence and strengthening advanced by the organizational culture are additionally anticipated that would encourage the execution of tools and technique in Six Sigma Vimal Kumar and Mukti (2018).
The employees in an organization practicing Six Sigma are highly trained, have undergone rigorous statistical training, and lead teams in identifying and executing Six Sigma projects. Henderson and Evans (2000), They can be divided into various levels of expertise: Champions, Master black belt, Black belt, Greenbelt and delivery riders or part-time workers.
• Champions are fully trained business leaders who own the delivery company. They promote and lead the deployment of Six Sigma in a delivery service.
• Master black belts are fully-trained quality leaders responsible for Six Sigma strategy, training, mentoring, deployment and results. They are CEO of the company.
• Regional managers can be considered as black belts and they are fully-trained Six Sigma experts who lead improvement teams, who work projects across the business and mentor green belts.
• Aggregators can be considered as green belts and they are full-time teachers with quantitative skills as well as teaching and leadership ability; they are fully-trained quality leaders responsible for Six Sigma strategy, training, monitoring, deployment, and results.
• Delivery riders or freelance workers are individuals who support in delivery services.
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3.1.4 Education and Training
Education and training give a clear sense for people to better understand the fundamentals, tools, and techniques of Six Sigma. Training is part of the communication techniques to make sure that managers and employees apply and implement the complex Six Sigma techniques effectively Y.H. Kwak, F.T. Anbari (2006). Education and training program is crucial success factors Six Sigma implementations and differs to each belt systems. The education should be provided to the delivery riders who are the key employees of food delivery process.
3.1.5 Linkage Six Sigma to Business Strategy
Findings from Anthony and Banuelas (2002) and Alessandro Brun (2010) that the linkage Six Sigma to business strategy is most key factor next to the top management involvement and commitment. Also, the findings from Anthony (2004), the analysis of the pilot survey in UK service organization has shown that linking Six Sigma to business strategy is the most critical success factor. Many authors generally accepted Six Sigma is a philosophy that provides a better product or service. in a faster manner and with a lower cost than competitors. In every single project, the link between the project and the business strategy should be identified.
3.1.6 Linkage Six Sigma to Customers
Six Sigma should begin and end with the customers. Projects should begin with the determination of customer requirements. Anthony and Banuelas (2002) It is essential to set project goals between the company’s expected and actual performances. Especially in terms of delivery time, reliability and customer satisfaction. For considering the online food delivery industries, the linkage of Six Sigma is focused on online customers.
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3.1.7 Linkage Six Sigma to Human Resources
Truly changing behavior over the long term requires that the Six Sigma goals be internalized on an individual level. To this end, human resources-based actions need to be put into effect to promote desired behavior and results Anthony (2004). To provide the incentives and promotions to the employees. During the peak times like weekends and rainy season the company gives the incentives (combo pack bonus) to promote their employee desired behavior and to obtain superior results.
3.1.8 Linkage Six Sigma to Suppliers
Many organization that implement Six Sigma finds it beneficial to extend the application of Six Sigma principles to management of their supply chain. The company cannot be the six-sigma company without their supplier participating the cultural change. Restaurants can be considered as the suppliers for web-based food delivery services. When implementing the Six Sigma in online food delivery, the supplier should be participated in the cultural change.
3.1.9 Understanding Tools and Techniques Within Six Sigma
Employees should be armed with the proper tools to successfully approach and complete Six Sigma projects. A healthy portion of Six Sigma training involves an introduction to, the theory behind, typical use of, and practical experimentation with three groups of toolsets: team tools, process tools, and statistical tools Henderson and Evans (2000). The service organization does not need many of the tools and techniques of the six-sigma toolbox. Most of the process and quality-related problems in service organizations can be readily tackled using the simple problem-solving tools such as process mapping, cause and effect analysis, Pareto analysis and control chart Jiju Anthony (2007).
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3.1.10 Project Selection, Management and Control Skills
Six Sigma projects must be carefully reviewed, planned, and selected to maximize the benefits of implementation. The project must be feasible, organizationally and financially beneficial, and customer oriented Y.H. Kwak, F.T. Anbari (2006). For considering the food delivery service organization, the project selection based on customer-oriented in terms of good going restaurants. Considering these above critical success factors are suitable to online food delivery industries. And the website quality and the service quality measurement system are crucial factors for delivery service company.
3.2 Website Quality Improvement
Web quality is perceived as users’ evaluation of a web site’s features meeting users’ needs and reflecting overall excellence of the web site
Aladwani and Palvia (2002). To retain the customer and to attain their satisfaction, the website quality plays prominent role. A lot of research and papers regarding dimensions of the website quality is emerging nowadays due to the success of web-based industries. By revising papers on website quality, it was found that, M. S Janita, F.J Miranda (2018), made a clear structure for the website quality and categorized into four main dimensions such as, Quality of the Information, Technical Efficiency, Communication and Reliability & Security. Aladwani and Palvia (2002), considered web appearance, technical adequacy and web content (content quality & specific content). These above dimensions are not the exemption for Online food delivery industries. After the further review of the literature, major website quality dimensions necessary for online food delivery was conceptualized as Quality of information, Technical adequacy, and Web Appearance. These three dimensions are important for improving the website quality and when
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implementing Six Sigma for food delivery service company. These three dimensions are explained in the following section,
Figure 4 Quality of Dimensions
3.2.1 Quality of Information
The website must provide the content necessary to carry out the process. The information must be complete with a prominent level of detail, in-depth, sufficient, and relevant. It must be presented in the right format and at the right time. Relevant information, useful information, detailed content, clear content, updated information, secure information, timely information, personalized information and the information on an application are aspects comes under the quality of information M. S Janita, F.J Miranda (2018).
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3.2.2 Technical Adequacy
Includes technical aspects related to accessibility, ease of use and system availability. Security, ease of navigation, broadcast service, limited use of special plug-ins, search facilities, availability, valid links, reliability, speedy page loading, ease of access, multi-language support, bookmark facility Aladwani and Palvia (2002).
3.2.3 Web Appearance
This is the user support service, referring to the help, assistance and response capacity provided by the Government to its users during transactions. Attractiveness, distinctive hot buttons, changing look, proper use of fonts, proper use of colors, proper use of graphics, proper use of multimedia, style consistency, color consistency and good labeling Aladwani and Palvia (2002),
3.3 Measurement System
Measurement of the service quality for online food delivery industries is based on two aspects, services provided by the Website of the industry and delivery riders. Measuring tools for the service quality differ to each sector. The most commonly used tool SERVQUAL, to measure the service quality cannot be used for online food delivery industries. Zeithaml, Parasuraman, and Malhotra (2000, 2002) made some modification to measure the web-based services using the E-SERVQUAL model.
E-SERVQUAL model presents a conceptual model that brings together in a common framework the following: (1) customer assessment of e-SQ and its consequences (top half of the model) and (2) organizational deficiencies that could contribute to the poor assessment of e-SQ (bottom half of the model).The company side shows three potential disconnects—depicted as
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the information, design, and communication gaps—that can occur in the process of ordering, preparing and delivering in Online Food Delivery.
Figure 5 E-SERVQUAL Model
These gaps collectively contribute to the “fulfillment gap” on the customer’s side, triggering a chain of adverse effects on perceived e-SQ, perceived value, and purchase/repurchase behavior. In this model, to measure service quality seven dimensions are taken into the consideration.
• Efficiency • Reliability • Fulfillment • Privacy • Responsiveness • Compensation • Contact
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And the above seven dimensions forms two scales: core service and recovery services.
Figure 6 Dimensions of Service Quality
3.4 Core E-SERVQUAL
These dimensions include the criteria customers use to evaluate routine online service when they experience no questions or problems in using the site. Four dimensions - efficiency, fulfillment, reliability and privacy— the scale that is used to measure the customers' perceptions of service quality delivered by online retailers comes under core services.
3.4.1 Efficiency
Efficiency refers to the ability of the customers to get to the Web site, find their desired product and information associated with it, and check out with minimal effort. For example, if the customer wants to order the food in a local restaurant, the website of the delivery industry should provide all the information about cuisines and it can easily find the customer.
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3.4.2 Fulfillment
Fulfillment incorporates accuracy of service promises, having products in stock, and delivering the products in the promised time. In the offline context, fulfillment is defined as the “ability to perform the promised service dependably and accurately". This translates online into on-time and accurate delivery. It related to the agreement in relation to the delivery services is created by the company and the Customer each order regarding delivery lead time and delivery quantity.
3.4.3 Reliability
Reliability is associated with the technical functioning of the site, particularly the extent to which it is available and functioning properly. It deals with mobile applications supplied by the company and downloaded and installed for use on mobile devices. The mobile application should function properly and free from server-side error while using the application.
3.4.4 Privacy
The privacy dimension includes an assurance that shopping behavior data are not shared, and that payment card information is secure. It deals with the privacy policy that the delivery company ensures the security of customer payment information like credit or debit card information is encrypted and to ensure that this cannot be read by a third party. It includes the bank of the customer may also make additional security checks to confirm, that it is he/she who has placed the order.
3.5 Recovery E-SERVQUAL
The other three dimensions become salient only when the online customers have questions or run into problems other three dimensions
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responsiveness, compensation, and contact conceptualized as recovery services.
3.5.1 Responsiveness
Responsiveness measures the ability of e-tailers to provide appropriate information to customers when a problem occurs, have mechanisms for handling returns and provide online guarantees. For example, the delivery company able to provide the information to online customers when the problem occurs in the delivery process such as restaurant issue, rider vehicle issue.
3.5.2 Compensation
Compensation is the dimension that involves receiving money back and returning shipping and handling. For example, the user has the right to cancel any order if this takes place within a reasonable period and before the order becomes an "Order in Progress". Otherwise, the charges are debited to the customer. The food service company is responsible in case of damage and delivery compliance of order.
3.5.3 Contact
The contact dimension of the recovery e-SERVQUAL scale points to the need of customers to be able to speak to a live customer service agent online or through the phone—requiring seamless multiple channel capabilities on the part of e-tailers.
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CHAPTER 4
The chapter explains how the research methodology is carried out? and what are the necessary steps taken to complete the result research? The next section gives a clear view of the survey taken for the research purpose.
4.1 Research Methodologies
To determine the necessity of website quality and measurement of service quality, DMAIC is considered. DMAIC (Define, Measure, Analyze, Improve, Control) Methodology of Six Sigma is a systematic data-driven approach to reduce the defect and improve the quality of any type of business. By using this common methodology of Six Sigma in online food delivery industries, this paper justifies the necessity of the website quality and the measurement of service quality.
4.1.1 Define
The design phase is designed to help answer the question ``who are the customers and what are their priorities?''. The requirements and expectations of the customer about the website quality and the service quality are defined in the early stage. In this phase, the necessity of the two elements when implementing the Six Sigma in web-based food service industry is defined by data gathering.
4.1.2 Measure
The measuring stage in DMAIC is further classified for the two CSF factors,
Phase Description Aspects Tools used
Measure Measure the process to
determine current performance; quantify the
problem
Website quality VOC Measurement of the service quality
E-SERVQUAL
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4.1.3 Population for Survey
The survey questionnaire was distributed among 150 students in Politecnico di Milano (both national and international students). According to the survey, 65% of students have given a positive report other have not yet used the service.
4.1.4 Research Survey Design
A structured questionnaire survey was organized. The questionnaire consists of two parts, one is based on the quality of the website and the another is focused on the measurement system. The respondent was asked to give their opinion,
1. Website quality - The five-statements focusing on website layout, content, trust, information of website was formed to analyze the website quality. In the measuring phase, a questionnaire consists of nine questions have been derived in accordance with the website quality and the Google survey (VOC) is conducted among the various range of customer. A sample of questions which has been conducted as follows,
• How much do you trust the information on the website?
• How easy is it to find and understand the information on the website?
• How do you review the website based on the design layout? • How does the website quality influence your order process? 2. E-SERVQUAL - The questionnaire is made up of seven statements on
a scale of one to five indicated strongly disagree to strongly agree. A total of eight question was made to understand the necessity of measurement system and to measure the customer expectations of the
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service and the perceptions of service after the experience perceived by the customer
The following questions are developed, and the survey conducted to all type of customers. (students, aged people, working people). Questionnaire to Measure Service quality through E-SERVQUAL
Please rate the following statements on a scale of 1 to 5
(1) Strongly agree (2) Agree (3) Neither agree nor disagree (4) Disagree (5) Strongly disagree
STATEMENT EXPECTATION PERCEPTION
1. Do you think it is easy to find and understand the information on the website?
1 2 3 4 5 1 2 3 4 5
2 Does the delivery company provide the service at the time it promises to do so?
1 2 3 4 5 1 2 3 4 5
3 Does the website load quickly–even (especially) for mobile users and free from server-side errors?
1 2 3 4 5 1 2 3 4 5
4 Do you trust the website by providing personal information? (e.g. credit card, email etc..,)
1 2 3 4 5 1 2 3 4 5
5 Does the delivery company inform the customers whenever the problem occurs? (e.g. Navigation of Rider)
1 2 3 4 5 1 2 3 4 5
6 Does the delivery company provide compensation for the wrong or cancellation of order?
1 2 3 4 5 1 2 3 4 5
7 Does the delivery company give an immediate response to your request through live chat or phone call?
1 2 3 4 5 1 2 3 4 5
Table 2 E-SERVQUAL Questionnaire
4.1.5 Analyze/Improve/control
The last three phases of DMAIC designed to help answer the following questions ``what are the most important causes of the defects?”: ``how to remove the causes of the defects?'' and ``how to maintain the improvements?'' The three phases have been further explained in chapter 5.
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CHAPTER 5
This chapter contains the critical analysis and results of the importance of website quality and service quality dimensions are analyzed and discussed one by one.
5.1 Analysis and Results
To survey results are compiled in the form of pie charts and bar diagrams to obtain the anticipated result. Discussion and explanations for the diagram deliver the need and importance of both website quality and service measurement.
5.1.1 Website Quality Improvement
Based on the answers to the survey, the following analysis has been carried out. The segregation of answer has been done in the form of the graph. Some of the examples of website ratings are taken to compare the analysis. While comparing the website rating for the various website, overall highest rating for Just Eat and lowest for Foodora and Glovo.
Figure 7Google Ratings on Food Delivery Services
Surprisingly, the survey results were like the google ratings. It was found that Just eat food delivery was used by nearly 80% of the respondents. Foodora and Glovo are choices of delivery for nearly 21% & 18% of the
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respondents. Whereby Deliveroo and Uber Eats food delivery services have been used by the people 20% and 8% respectively.
Graph 1 Survey on Web-Based Delivery Services
The survey questionnaire was structured to help the answer to customer's requirement or opinion about website quality dimensions of their preferable food delivery services.
Graph 2 Survey Result on Website Influence
In graph 2, the overall influence of people on the website has been evaluated. The survey result shows nearly 60% of survey population
20, 14% 8, 6% 21, 14%
18, 12% 80, 54%
Web-based food delivery
Deliveroo Uber Eats Foodora Glovo Just Eat
0% 6% 28% 48% 16% 0 10 20 30 40 50 60 R es p o n se s Range
Influence on Website
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answered the website plays a prominent role in their ordering process. It is a matter of fact that website should more be appealing to the people so that they can find it attractive and like to order. Not even a single person responded negatively.
The first question based on the information quality of the online food delivery industry’s website which indicates restaurant and cuisine information of their most used website. Nearly, 80% of respondents responded scale four to five. This indicates that the quality of the information is one of the crucial factors of website quality improvement.
Graph 3 Survey Result on Website Information
The above graph indicates the information which has been viewed on the website page. Probably, almost 58% of people have predicted the quality of the website information has been quite achievable. Whereas 25% people quoted the quality of the information on the website as far as concerned till date has been extremely communicable. On the other hand, the remaining 17% of people have reviewed there is lack of information on the website.
1.02% 2.04% 13.27% 58.16% 25.51% 0 10 20 30 40 50 60 1 2 3 4 5 Re sp o n se Range Website Information
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Graph 4 Survey Result on Website Design
The column chart implies about how the website acts as user-friendly and how much they trust the information on the website. Over 46% of people have opted that the trust over the website is appreciated. Merely 22% of people have complete belief on the websites. It is obvious that certain website does not give trust to 30% of people. The author realized that there might be lack of belief in the mode of payment for the users.
Graph 5 Survey Result on Website Trust 0.00% 6.12% 37.76% 43.88% 12.24% 0 5 10 15 20 25 30 35 40 45 50 1 2 3 4 5 Re sp o n se Range Website design 0 6.12% 23.47% 46.94% 22.45% 0 5 10 15 20 25 30 35 40 45 50 1 2 3 4 5 Re sp o n se Range Website trust
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The above bar chart describes the appearance of the food delivery service website. Almost, 55% of people are attracted by the design of the website page. Simultaneously, there should be an improvement on website design. This has been voted by 6% of people. It is quite appreciable that none of them have given poor as a rating for website design. Thanks to the software developer.
Graph 6 Survey Result on Website Ease of Use
The result from the analysis of the accessibility of website describes the customer requirements on the website ease of use and ease of navigation. Nearly 53% and 18% of people rated the easiness of the website as good and extremely easy which states that the accessibility has been achievable and accepted by most of the people.
5.1.2 Prioritization of Service Quality Dimensions
Based on the ratings from the respondents, the table is formulated. And the prioritization(Rank) is given to the all service quality dimensions which were explained earlier. The ranking is given from highest dimension
0.00% 3.06% 25.51% 53.06% 18.37% 0 10 20 30 40 50 60 1 2 3 4 5 Re sp o n se Range Ease of use
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to the lowest. Vimal Kumar and Mukti (2018), the ranking is based on the formula ∑(ratings*frequency)/sample size.
No Service quality
Dimensions
Ratings and frequency Average(Rank)
∑(ratings*frequency)/sample size (98) 1 Strongly disagree 2 Disagree Neither 3 agree nor disagree 4 Agree Strongly 5 agree 1 Efficiency 1 2 25 50 20 3.877551(1) 2 Fulfillment 3 8 31 37 19 3.622449(3) 3 Reliability 1 6 32 46 13 3.653061(2) 4 Privacy 3 9 36 35 15 3.510204(4) 5 Responsiveness 6 20 29 34 9 3.204082(6) 6 Compensation 13 14 32 30 9 3.081633(7) 7 Contact 5 11 33 35 14 3.428571(6)
Table 3 Prioritization of Service Quality Dimensions
The above table is constructed based on the result from the customer perception on the web-based food delivery services in terms of service quality. The efficiency dimension gets the highest rating among all the dimensions. It refers to the satisfaction of the customers to get to the Website, find their desired food and information associated with it, and check out with minimal effort. The compensation and contact dimensions get lowest ratings and it refers to customers unsatisfied with the compensation activities like money back and cancelation of order. And the food delivery companies have a look at the service quality in terms of contact the customers via the phone call or online chat to meet the customer needs. After the analysis, there is lack of communication between the delivery company and the customers.
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5.1.3 Service Quality Measurement
Based on the analysis of E-SERVQUAL, the questions were asked to the people based on the seven dimensions as shown in above graph. On reviewing the graph, the expectation level of the user is much higher than the perception level for all the dimensions. Particularly, when the responsiveness and compensation of the service quality, the level of perception is very low when compared to other dimensions. The expectation of the user for these two dimensions is not completely satisfied.
Graph 7 Analysis of Service Quality (E-SERVQUAL)
The measurement of the service quality for both manufacturing and service sectors is likely more reliable. Meanwhile, the expectation level of the user should also meet them in the real life (i.e. the level of the expectation must be equal to the level of the perception). Mainly, these seven dimensions should be compulsory for all the web-based service industries.
3 3.2 3.4 3.6 3.8 4 4.2 4.4 Analysis of E-SERVQUAL Expectation Perception
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CHAPTER 6
6.1 Conclusion
Website quality improvement and Measurement system are the most crucial factor for both product and service organization. Particularly, to understand the customer requirements and to know the customer perception after the service perceived by the online customers, the measurement system for service quality is needed for web-based industries. Although to measure the service for online food delivery is the crucial one, the measurement system is most useful for retaining the online customer. By analyzing the seven dimensions of the E-SERVQUAL, it was understood that customer perception about the food delivery service has more variance than the customer expectation.
As Six Sigma implementations are not always suitable for all organizations in all industries. It is obvious that the extent to which Six Sigma implementation is done and depends on the financial capability of the organization. However, analyzing the results of the survey, two points were made clear. The first point is many customers using the web-based food delivery services prove the website quality is influencing more while ordering process. Another is the need for the measurement system. To reduce the gap between the customer’s expectation and the perception level, it is important that they are aligned with each other. Among the twelve CSF explained before, can also be as considered the two success factors called “Linkage Six Sigma to website quality improvement" and “Measurement system for service quality" for online food delivery industries.
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