Int. J.

Production Economics 234 (2021) 108063

Contents lists available at ScienceDirect

International Journal of Production Economics

journal homepage: http://www.elsevier.com/locate/ijpe

The role of food apps servitization on repurchase intention: A study

of FoodPanda
Sook Fern Yeo a, Cheng Ling Tan b, *, Shen Long Teo a, Kim Hua Tan c
a
Faculty of Business, Multimedia University, Melaka, Malaysia
b
Graduate School of Business, Universiti Sains Malaysia, Penang, Malaysia
c
Nottingham Business School, University of Nottingham, UK

A R T I C L E I N F O A B S T R A C T

Keywords: With the exponential growth of smartphone applications (apps), companies have embraced the new concept of
Servitization platform service supply chain (PSSC). The food industry in particular has quickly adopted this concept through
Repurchase intention the use of food apps, such as Foodpanda, which is becoming popular among consumers when it comes to ordering
Platform service supply chain
food in Malaysia. As such, this study investigated the relationships between factors that drive customer
Food apps
repurchase intention in food delivery apps within the context of Malaysia. Data were collected from 250 re­
spondents between October 2019 and January 2020. This study will employ a non-probability purposive sam­
pling. In this study, two statistical analysis techniques were used for data analysis and testing of hypothesis,
namely, Statistic Package for Social Science (SPSS) version 25 and Partial Least Square Structural Equation
Modeling (PLS-SEM) version 3.2.9. As a result, perceived usefulness, social influence, and trust displayed a
significant and positive influence on customer repurchase intention for food apps. The outcomes retrieved from
the importance-performance matrix analysis (IPMA) revealed that both importance and performance of
perceived usefulness highly contributed to customer repurchase intention for food apps. This research has
important implications for Foodpanda to continuously improve its food delivery apps service platform and
achieve customer satisfaction, leading to repurchase intention. Having that said, this study sheds new light on the
platform serviceability within the food industry.

1. Introduction 2015). As depicted by Kian et al. (2018), the Internet has opened a
window of opportunities to communicate with people across the world
Since the 18th century, the initial industrial revolution has high­ without time or geological restriction, thus providing everyone with the
lighted the crucial role of technology in various industries. In many capacity to conduct feasible and direct business opportunities via a
aspects, technology has substituted human work due to its ability and virtual platform. With the rapid advancement and use of the Internet,
versatility in generating quick and efficient productivity with fewer re­ consumers’ online purchase (e-purchase) behaviour (also known as
sources, and in many cases, a safer environment for employees. Tech­ electronic commerce (e-commerce) has spiralled upwards as consumers
nology usage has facilitated multiple industries to increase their output begin to realise that the power of e-purchase is just a click away. They
with fewer resources and minimum raw materials or ingredients. are able to make better choices by comparing products and prices, all of
Needless to say, the Internet has led to a new paradigm shift towards which were unattainable prior to the digital age. Despite the similarities
the use of technology when most industries have begun adopting auto­ shared between conventional businesses and online shopping, the
mated machinery to manage their daily operations more efficiently, as Internet offers distinctive features, such as low search costs, easy price
well as to reduce risks and wastage. The rapid growth of the Internet and comparison, time saving, and endless varieties (Shimi and Michael,
technology as the new global market has bridged the gap between time 2018). With growing customer expectations for price and quality, ser­
and space. Information integration among supply chain members has vice providers today can no longer rely merely on cost. Still, they need to
become increasingly important in today’s Internet era (Zhou et al., be able to manage the supply chain proficiently and to understand better

* Corresponding author.
E-mail addresses: yeo.sook.fern@mmu.edu.my (S.F. Yeo), tanchengling@usm.my (C.L. Tan), 1151205307@student.mmu.edu.my (S.L. Teo), kim.tan@
nottingham.ac.uk (K.H. Tan).

https://doi.org/10.1016/j.ijpe.2021.108063
Received 11 August 2020; Received in revised form 6 December 2020; Accepted 8 February 2021
Available online 11 February 2021
0925-5273/© 2021 Elsevier B.V. All rights reserved.
S.F. Yeo et al. International Journal of Production Economics 234 (2021) 108063

Fig. 1. Research model.

the demands of their customers (Chong and Zhou, 2014). Based on the business outcomes, some companies appear to struggle
With the boom of the Internet, smart phones have become more with the servitisation concept (Kohtamäki et al., 2020).
common and ubiquitous. More companies have begun utilising this Global researchers have widely focused on online shopping behav­
benefit to reach out to as many consumers as possible through mobile iour, but not much has been studied in the field of food apps servitisation
applications (apps) (Islam and Want, 2014). The growth of mobile apps (Yeo et al., 2017). Therefore, it is noteworthy to highlight here that
has an integral role in creating vast opportunities for businesses, espe­ limited studies have comprehensively assessed the factors that affect the
cially in the food delivery industry. For instance, the revenue of food role of food apps servitisation on repurchase intention of Foodpanda in
delivery segment in the USA had achieved USD 358 million in 2018 the growing Malaysia market. Hence, this present study bridges the gap
(Statista, 2018). Food delivery service refers to an online platform or and spearheads an empirical investigation regarding the factors that
application, where consumers can order their meals to arrive at their influence consumers’ repurchase intention on the role of food apps
location and in their preferred free (Dazmin and Ho, 2019). Online servitisation in Malaysia. The findings from this study will be a source
ordering service apps have helped consumers eliminate unnecessary for the company to understand better their consumer behaviour and on
process through food delivery from a specific restaurant to the desired how to optimise their market share through consumer repeat purchase.
location. As such delivery service saves time; consumers have more time In precise, the following factors were assessed: effort expectancy,
to perform other significant tasks (Dazmin and Ho, 2019)). perceived usefulness, information quality, perceived risks, social influ­
In Malaysia, Foodpanda is the first food delivery company estab­ ence, and trust. This paper continues with the literature review and
lished in Malaysia. To date, Hirschmann (2020) reported that approxi­ hypotheses development. The following sections outline the methodol­
mately 75 percent of the Malaysians are in favour of using Foodpanda ogy and the results. Lastly, this study is concluded with a discussion of
food delivery app. Foodpanda is a worldwide online food ordering and results and several implications.
delivery marketplace that operates in 43 countries. Foodpanda has
cooperated with more than 45,000 restaurants worldwide and has never 2. Literature review and hypotheses development
ceased to grow rapidly (Mainuddin, 2018). Food delivery app and ser­
vice have gradually influenced the industry of food and beverage, 2.1. Effort expectancy and repurchase intention
mainly because of the growing potential of delivery service that can
ensure employee productivity, delivery order accuracy, and creation of Effort expectancy refers to the ease of using a service when making
customer database (Moriarty, 2018). Foodpanda operates based on the use of the service or the technology. Venkatesh et al. (2012) described
online-to-offline (O2O) business model, along with the existence of the effort expectancy as the level of easiness while utilising a system.
platform service supply chain (PSSC). Meanwhile, Zarrad and Debabi (2012) asserted that surfing difficulties
Due to the increasing demand in the food ordering apps services from can lead to the barrier of e-purchase. Thus, a supplier cannot build a
consumers, the product service system (PSS) has laid a strong foundation system that is difficult to understand and use. Pham and Ahammad
of the servitisation concept (Tan et al., 2019). The literature has used a (2017) reported that the convenience and ease of use of a website or app
range of terms to explain the servitisation concept, namely PSS, product can enhance purchase intention amidst clients. They depicted that a
and service integration, as well as hybrid offerings. As for this present poor app that fails to meet customers’ expectation of ease of use will not
study, servitisation and PSS are used interchangeably. Kastalli and Looy fulfil the customers’ satisfaction to purchase using the app. An app that
(2013) illustrated servitisation as the shift of a company’s focus from is easy to use will achieve customers’ satisfaction and make them happy
selling core products to offering augmented products. Servitisation when using the system. Chen et al. (2018) proposed that a mobile app
grants producers the opportunity to satisfy consumers’ needs and desires with a higher level of ease of use is more likely to create cheerful con­
by selling their products with a combination of services (Kian et al., sumer emotion, which induces consumers into the purchase process.
2018). Vandermerwe and Rada (1988) testified that businesses were Effort expectancy also refers to apps that stimulate purchasers to
enhancing their services by increasing competitiveness and strength­ continue using the website or app stemming from engaging experience
ening their power in the marketplace. They deliberate the growth of (Vivek et al., 2019). Good experience of effort expectancy leads pur­
servitisation as companies improve their portfolios from mere products chasers to continue using the technology system. If purchasers have a
or services to added value offerings with support, knowledge, and poor experience with the service system, their intention to purchase
self-service. Businesses that adopt the servitisation concept, basically, using the system may change and eventually switch to another platform.
add value by offering additional service to their existing core product. Silas and Lizette (2019) stated that a system has no significance of

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Table 1 ease of use shared an essential association with buyers’ purchase

Measurement items of the study. intention to adopt food delivery apps. Similarly, Lau and David (2019)
Constructs Indicators Sources found the positive impact of perceived ease of use on Malaysian cus­
tomers’ behaviour intention towards online food ordering service. Such
Effort EE1 - Learning to use the Foodpanda app is Van der Heijden
Expectancy easy. et al. (2003) a positive effect was noted due to the efficient use of the app. Those who
EE2 - It is easy to get the Foodpanda app to often use online food ordering systems seek apps that are easier to use
do what I want. with less effort. Mohd et al. (2011) asserted that convenience to use can
EE3 - The interactions with the Foodpanda significantly affect perceived usefulness. Davis et al. (1989) mentioned
app are clear and understandable.
EE4 - The Foodpanda app is flexible to
that if a specific innovation is helpful to the system; its users can trust
interact with. that the innovation is not difficult to use. Hence, perceived ease of using
EE5 - The Foodpanda app is easy to use. an app may affect one’s purchase intention towards food ordering apps,
Perceived PU1 - Foodpanda app would be useful in Chiu et al. (2005) such as Foodpanda. Referring to the overall research review, effort ex­
Usefulness ordering food online.
pectancy has a significantly positive relationship with improving user
PU2 - Advantages of ordering food online
outweigh the disadvantages. experience. As such, the following hypothesis is proposed:
PU3 - Foodpanda app makes my life H1: There is a significantly positive effect of effort expectancy on
meaningful. customer repurchase intention in Foodpanda delivery app.
PU4 - Foodpanda app saves my time.
PU5 - Foodpanda app is more convenient.
Information IQ1 - Using Foodpanda app provides Lee et al. (2019)
2.2. Perceived usefulness and repurchase intention
Quality accurate information
IQ2 - Using Foodpanda app provides Perceived usefulness refers to users’ perception if purchasing at the
believable information. website, online or app is more effective than in-store purchase (Koufaris,
IQ3 - Using Foodpanda app provides
2002). Perceived usefulness has significantly influenced consumers’
information at the right level of detail.
IQ4 - Using Foodpanda app presents the intention to buy through the Internet, besides being positively related to
information in an appropriate format. consumers’ behaviour and attitude (Monica et al., 2016). To date, many
Perceived Risk PR1 - I do not feel comfortable giving out Shim et al. (2001) companies and marketers have attempted to create functional websites
credit card information to make a
and apps to increase their customers’ perceived usefulness and conve­
transaction over the Foodpanda app.
PR2 - I feel apprehensive about purchasing
nience towards using their systems.
in Foodpanda app. According to Mazzini et al. (2016), perceived usefulness denotes the
PR3 - Purchasing in Foodpanda app is risky. users’ beliefs that when using a medium, such as the Internet, a website
PR4 - There are many uncertainties or an app, it will improve their performance and efficient productivity,
associated with purchasing in Foodpanda
apart from increasing their satisfaction and enhancing their experience.
app.
PR5 - Compared with other methods of An efficient app offers multiple benefits for consumers to enjoy while
purchasing, online food ordering is riskier. using it. If online shopping is not beneficial, users would not adopt such
Social Influence SI1 - People who are important to me think Lee et al. (2019) system. Thus, the usefulness of an online food ordering app can influ­
that I should use Foodpanda app for ence consumers to adopt the app to order food online. Dachyar and
purchasing foods.
SI2 - People who influence my behaviour
Banjarnahor (2017) depicted that the use of online transaction can help
think that I should use Foodpanda app for customers accomplish their shopping faster than the conventional mode
purchasing foods. of transaction. A useful app assists users to save their time and to browse
SI3 - People whose opinions I value prefer with enjoyment. Piyanath and Suthawan (2013) stated that perceived
that I use food delivery apps for purchasing
usefulness is affected by perceived ease of use through the lens of the
food.
Trust TRT1- Foodpanda app is trustworthy. Jarvenpaa et al. Theory Acceptance Model. Put simply, effortlessness in using a system
TRT2- Foodpanda app gives the feeling that (2000) will motivate users to adopt it. Senhui and Qing (2018) found that the
it keeps guarantees and responsibilities. capabilities and usefulness of a system can affect user gratification. The
TRT3- Foodpanda app meets my design features of a system, such as search engine, link, menu, and
expectations.
TRT4- I believe Foodpanda app keeps my
graphics, can enhance user experience (Song and Zinkhan, 2003). As for
best selection in mind. food ordering apps, their features can influence consumers’ usability
Repurchase RP1 - The probability I would consider Wang and Chu and satisfaction in using the system. Perceived usefulness reflects the
Intention repurchasing using Foodpanda app is high. (2020) needs and awareness of consumers towards a website or system in order
RP2 - I will consider repurchasing food
to add value and improve services (Hu et al., 2019). As Kim and Song
through the Foodpanda app.
RP3 - The likelihood I would repurchase (2010) defined, perceived usefulness is the efficiency usability to the
food using Foodpanda app is high. user, such as the advance search engine, or the customisation service
RP4 - I am willing to repurchase food from provided to a consumer.
Foodpanda app. The usefulness of a system or a network infrastructure is amplified
when the information addresses the demands of the beneficiaries. In this
simplicity if it offers confusion, complication or pointless steps to com­ era of advance technology, a technology system that can meet the de­
plete the purchase task on that system. If a system requires clients to mands and desires of consumers is deemed as a system that has useful­
make countless efforts to execute and complete the required task, the ness. A system that is both convenient and useful will encourage
system is considered to be technologically complex. It may serve as a consumers to exhibit buying behaviour through that system. The system
deterrent amongst users. In most cases, simplicity is essential to improve should be updated to the latest version to meet user expectations
consumers’ interaction, experience, and satisfaction towards the system. consistently. Clients also consider an informative app or website as part
Visual of the technology is also an essential factor in attracting clients’ of perceived usefulness. A website or app with more data instructions in
perception of the system, so as to guide them easily to use the the web-based business enables clients to compare price and items, thus
technology. increasing purchasers’ perception of usefulness. This is bound to build
Ray et al. (2019) claimed that perceived ease of use affects people’s their shopping pleasure and allow them to make a better buying decision
choices to adopt food delivery apps. The study discovered that perceived (Tien et al., 2019).
Nedra et al. (2019) asserted that consumers would highly consider

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S.F. Yeo et al. International Journal of Production Economics 234 (2021) 108063

Table 2
Measurement items of the study.
Variables Items Loadings Cronbach’s Alpha rho_A Composite Reliability AVE

Effort Expectancy EE1 0.804 0.792 0.802 0.858 0.550

EE2 0.622
EE3 0.757
EE4 0.686
EE5 0.821
Perceived Usefulness PU1 0.760 0.839 0.840 0.886 0.609
PU2 0.813
PU3 0.752
PU4 0.792
PU5 0.783
Information Quality IQ1 0.687 0.764 0.783 0.848 0.584
IQ2 0.810
IQ3 0.752
IQ4 0.803
Perceived Risk PR1 0.657 0.880 0.909 0.911 0.674
PR2 0.887
PR3 0.903
PR4 0.876
PR5 0.657
Social Influence SI1 0.803 0.787 0.790 0.876 0.701
SI2 0.859
SI3 0.849
Trust TRT1 0.799 0.821 0.829 0.882 0.651
TRT2 0.836
TRT3 0.744
TRT4 0.846
Repurchase Intention RI1 0.756 0.806 0.813 0.873 0.633
RI2 0.847
RI3 0.761
RI4 0.815

hypothesised:
Table 3 H2: There is a significantly positive effect of perceived usefulness on
Discriminant validity: HMTM.
customer repurchase intention in Foodpanda delivery app.
EE IFQ PCR PU PCI SCI TRT

Effort Expectancy 2.3. Information quality and repurchase intention

(EE)
Information 0.786
Quality (IFQ)
Information quality, being the value and convenience of information
Perceived Risk 0.166 0.131 (Negash et al., 2003), is an important factor that affects users’ satis­
(PCR) faction to use food delivery app. A good design platform can assist
Perceived 0.899 0.680 0.290 consumers in reducing their search cost while on the other hand, can
Usefulness (PU)
enhance the effectiveness of information processing (Xu et al., 2020).
Repurchase 0.772 0.606 0.217 0.854
Intention (PCI) Information quality refers to the extent to which a technology system
Social Influence 0.579 0.408 0.102 0.538 0.651 offers its users valuable and critical information in a quick and precise
(SCI) manner (Zhao, 2019). Superior information quality of products and
Trust (TRT) 0.653 0.775 0.115 0.675 0.731 0.535 services will enhance customer’s loyalty (Zhou and Li, 2020). Informa­
tion quality of a technology system denotes product, website, and
purchasing from a certain website or app upon discovering the useful­ application information. Product information is sharing the convenience
ness of the online system for them. Thus, perceived usefulness can create of accessible messages about the product and helping a consumer to
purchase intention when the technology innovation offers benefits to the evaluate the product (Shahzad et al., 2015). If a food delivery app lacks
clients. Pee et al. (2019) explained perceived usefulness as an assess­ product information, it may increase consumers’ doubts about the
ment of the utilitarian parts of online stores (e-stores) through the product and eventually leave the system. An app with complete infor­
evaluation of the fulfilment of objectives, such as shopping efficiency mation will lead to better user satisfaction. Hence, a consumer’s e-pur­
and viability. When a website or app evaluation has gained customers’ chase experience is based on the website or app information.
interest, more repurchasing is expected from this group of consumers, Consumers’ feedback about the website quality in terms of its fea­
thus increasing more loyal consumers. tures that can meet their needs with added value is vital in assessing
Monica et al. (2016) and Moslehpour et al. (2018) found that purchase intention (Jasur and Haliyana, 2015). Users start paying
perceived usefulness can significantly influence consumers’ e-purchase attention to websites that contain sufficient quality information to
intention. The cutting-edge technology has generated vast competitors facilitate in their decision-making process. Lack of information may
in the e-commerce platform. Perceived usefulness has turned into a affect consumers’ intention to purchase an item from the website
common feature that enhances one’s experience to purchase through the (Ghasemaghaei and Hassanein, 2016).
online platform. Perceived usefulness has been identified as one of the Information quality is characterised as data that are suitable for use
main factors that attract customers towards online food ordering process by consumers. Information quality is data that meet a certain require­
(Mohamed et al., 2014). Several scholars have highlighted the positive ment and fulfil users’ satisfaction (Nida et al., 2018). The informative­
relationship between perceived usefulness and consumers’ purchase ness of a food app enables buyers to compare item features, expand their
intention through food deliver app. As such, the following is shopping pleasure, and improve purchase decision, which are connected
with customers’ impression towards value (Tien et al., 2019). Data

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Fig. 2. Measurement model.

Table 4
Results of hypotheses testing.
Hypotheses Path Std Beta Std Error t-value Confidence Interval (95%) Bias Remarks
Corrected

H1 Effort Expectancy - > Repurchase Intention 0.103 0.087 1.185 [-0.044, 0.278] Not supported
H2 Information Quality - > Repurchase Intention − 0.013 0.057 0.221 [-0.120, 0.108] Not supported
H3 Perceived Risk - > Repurchase Intention − 0.043 0.046 0.929 [-0.155, 0.031] Not supported
H4 Perceived Usefulness - > Repurchase Intention 0.413 0.072 5.769** [0.269, 0.543] Supported
H5 Social Influence - > Repurchase Intention 0.191 0.052 3.713** [0.100, 0.296] Supported
H6 Trust - > Repurchase Intention 0.232 0.077 3.017** [0.068, 0.360] Supported

Notes: ** p < 0.01; * p < 0.05.

quality and contention quality have been viewed as significant de­ e-purchase intention. Suelen et al. (2017) revealed that information
terminants of the credibility of online information and website reviews. quality has a positive and direct impact on customers’ purchase inten­
Marc-Julian et al. (2019) claimed that in reality, consumers often rely on tion on website. Similarly, Lee et al. (2019) found that the quality of
the reviews given in the websites by other customers who are considered information affected the clients’ continuous purchase behaviour in using
as autonomous evaluators of any product or service. Reviews on a food delivery apps. Thus, service providers should provide a quality
website are a significant way to provide accurate data to consumers in system that offers helpful information to meet consumers’ expectations.
making a purchase. Unreliable data and poor information quality cause The literature depicts that information quality has a significantly posi­
consumers to leave poor reviews, and eventually, drop the system. tive relationship with consumers’ purchase intention in food delivery
Chen and Chang (2018) found that information quality can influence apps. Hence, the following hypothesis is proposed:
consumers’ purchase intention in Airbnb. They added that information H3: There is a significantly positive effect of information quality on
quality has an impact on customers’ satisfaction, thus affecting their customer repurchase intention in Foodpanda delivery app.

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S.F. Yeo et al. International Journal of Production Economics 234 (2021) 108063

Table 5 The first hazard is performance risk; the product fails to meet the stan­
Importance-performance matrix analysis (IPMA) results for repurchase dard quality. The second risk is financial risk; the value of the item is not
intention. at par with the price. The third risk is functional risk; the item does not
Latent variable Patient Loyalty meet consumers’ expectations. The fourth is social risk; choosing the
Direct effect (importance) Index value (performance)
product is influenced by a social problem. Physical and psychological
risks are the fifth and final perceived hazards, respectively. In order to
Effort Expectancy 0.103 83.649
attract consumers and increase sale, food delivery companies should
Information Quality − 0.013 75.398
Perceived Risk − 0.043 19.973 reduce these risks in their apps.
Perceived Usefulness 0.413 86.999 As mentioned by Joaquim et al. (2019), with the growing web
Social Influence 0.191 80.214 shopping and service delivery, perceived risk has become a vital issue
Trust 0.232 76.154 for online transactions. Some factors that affect clients’ e-purchase in­
tentions are risks that lead them to have fears about counterfeit prod­
2.4. Perceived risk and repurchase intention ucts, as well as wastage of their time and money. Another factor is the
risk of breaching their private data, financial information, and other
Perceived risk refers to a buyer’s belief of the uncertainty related to capabilities of the product. Perceived risk has a negative impact on
the outcome of the online transaction and the possible unpleasantness of buyers’ intention to adopt online payment. This factor will affect con­
the outcome (Forsythe and Shi, 2003). The risk is perceived by con­ sumers to switch to other platforms to avoid online payment risk.
sumers’ intention towards a specific purchase decision, and their fear of Therefore, companies that are perceived to have higher perceived risks
the outcome in the purchase process regardless of gain or loss. Shahzad, will face the issue of losing their current or potential consumers.
Yan, and Sumaira (2015) proposed that perceived risk is built by mul­ Kian et al. (2018) asserted that perceived risks can affect consumers’
tiple factors, namely physical risk, psychological risk, product feature buying intention in online grocery shopping. Online shopping is simi­
risk, social risk, financial risk, and transaction risk. Zhou et al. (2008) larly related to online food ordering, in which perceived risk can greatly
depicted that perceived risk include the inability of online buyers to influence consumers’ buying intention in food delivery apps online.
evaluate the value of a product, to contact the seller, and to gain Mazzine Ray et al. (2019) found that perceived risk had a negative
assurance about the security of payment while using the Internet. One relationship with Malaysian Generation Y in making e-purchase. Be­
with doubts about the purchase of a product increases his awareness of sides, perceived risk can adversely influence one’s intent to perform
the perceived risk, which may affect his purchase intention. Thus, online shopping (Moshref Javadi et al., 2017). The higher the perceived
perceived risk may affect consumers’ e-purchase. risk one faces, the lower is the satisfaction rate and purchase intention
From the stance of marketing, perceived risk is related to uncertainty (Pires et al., 2004). Therefore, the Foodpanda app should ensure contact
with likely negative results after shopping (Luis-Alberto et al., 2019). with less risk to attain customer satisfaction and continuous purchase
With the growth of the digital era, many perceived risks are related to using the food delivery app. A good application will not let users worry
the online website, app or system. Upon experiencing undesired about the risks that they have to face, but to enjoy the e-purchase.
outcome when using the system, clients are bound to use another system Hence, perceived risk can negatively influence the customers’ buying
or app to avoid recurrence of risks. These risks lead consumers to change intention using Foodpanda delivery app.
their purchase intention by adopting a competitor brand. The risk affects H4: There is a significantly positive effect of perceived risk on
consumers’ purchase action in specific brands. customer repurchase intention in Foodpanda delivery app.
There are two major types of perceived risk in customers’ purchase
decision process (Kian et al., 2018). The first type of perceived risk is 2.5. Social influence and repurchase intention
associated with products and services, which include feature loss, de­
livery or time loss, product peril, cash loss, and opportunities loss. Next, Social influence refers to the impact one’s peer, family, friends,
the second type of perceived risk is linked with online transaction, media, and society has on him or her. Within the context of this paper,
namely security and privacy risks. Fen, May, and Ghee (2012) described Emily et al. (2018) defined social influence as how a shopper perceives
six types of perceived risks that can affect consumers’ decision making. the significance of other people’s beliefs on the type of technology they
use. Social influence includes how one is affected by other people’s

Fig. 3. IPMA for repurchase intention.

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S.F. Yeo et al. International Journal of Production Economics 234 (2021) 108063

opinions on whether or not to purchase via online (Saeideh et al., 2016). 2.6. Trust and repurchase intention
Social influence is a reflection of how people affect each other’s
behaviour to purchase using food delivery apps. Hence, social influence Trust is to accept that somebody is excellent and fair, or that some­
is a vital factor that can influence other users to become potential con­ thing is safe and reliable. Trust is a vital factor for companies to keep a
sumers of a company. long-term relationship between buyer and seller. Trust is one who be­
Emiy et al. (2018) reiterated that peer or friends within a social circle lieves that the person or an object has reliability and trustworthiness
may influence one’s behaviour to use a new system. A technology sys­ (Everard and Galletta, 2006). Trust is believing in somebody or that
tem, such as food delivery apps, can be influenced by other online some service will provide security to them. Trust is built when the ser­
comments or reviews as an encouraging variable on user behaviour to­ vice provided or the system has reliability and dependability (Kim et al.,
wards using the system (Wakefield and Wakefield, 2016). People sur­ 2009). Also, trust is built by consumers’ past purchase experience. Trust
rounding can directly affect one’s intention to buy meals through online can reduce consumers’ perceived risk and insecurity towards using the
food ordering platforms, mainly due to the virtue of using the same system.
technology that offers them the feeling of belonging to the same com­ Since the pervasive integration of the digital world and virtual
munity group or social group. environment in all aspects of commercial and economic segments, the
Social influence is generally associated with informative and Internet is filled with uncertainties and irrelevant information. Thus,
normative social impacts. Message influence is also a form of informa­ credibility and trust have become essential factors amidst users to
tion influence that can happen when one gets and accepts information perform e-purchase. The more the buyers trust a system or website, the
from others as proof of reality. At the point when a buyer knows a few more the intention to acquire (Mansour et al., 2014; Lien et al., 2015).
people with information about the product, data from a reference group Trust has a significant role in clients’ purchasing intention in online
will work towards increasing product credibility. Exposure of informa­ systems. Trust makes consumers feel confident about purchasing via
tion can influence buyers’ evaluation of the item, wherein positive in­ online website. Mazzini et al. (2016) explained that trust is consumers’
formation will lead the buyers to form more favourable behaviour. On willingness to rely on the seller and to make an actual purchase. Trust is
the other hand, normative influence is one’s propensity to conform to a conviction that the counterparty will meet the desires without abusing
the expectations of other people. the vulnerabilities of the trustee (Shahab et al., 2019). At the point when
As defined by Kotler et al. (2016), netizen is an important factor to customers take part in an online transaction, trust is essential in
build social influence with the way of an “expressive evangelist” on the disposing of any uncertainty or uncontrolled capacity (Zhu et al., 2019).
Internet. As netizens are expressive evangelists, they are passionately Upon recognising that a system has uncertainty, both belief and trust
and emotionally committed to the brand they favour. They act as towards the system can be adversely affected.
evangelists and love sharing good information about the brand they According to Silva et al. (2019), trust is fundamentally essential for
favour. Sometimes, they voice out to safeguard their favourite brand e-purchase expectation. Trust is a critical factor that leads consumers to
against negative comments on social network sites, such as Facebook, buying action by assuring that there is no risk when the purchasing
Instagram, and Twitter. This is an effective way to influence online process occurs. Luis-Alberto et al. (2019) reported that lower risks
users’ confidence with a particular brand, along with their own beliefs engender higher levels of trust. Accurate information and service assist
that the brand is good and desired by netizens. vendors build trust amongst consumers. Sometimes, trust generates
With the digital era, engaging online celebrities to become their long-term consumers or loyalty buyers. Senhui and Qing (2018)
digital influencer to impact consumers’ buying action is becoming a explained that trust is one’s party of trustworthy towards another party
trend adopted by many companies. Online celebrities have become or an unfamiliar partner. It is not easy for consumers to directly trust a
brand ambassadors and their brand commitment for organisations seller. Similar to food delivery apps, it is not easy for consumers to
typically includes free items, the guarantee of ‘introduction’, and the directly trust online food delivery services, as multiple factors are
minimum entirety of costs (Duffy, 2016). They use the items given by weighed in prior to purchasing the food delivery service.
companies to introduce to their audience, thus influencing them to A study reported that trust positively influences buyers’ purchase
adopt that product. Ngoc et al. (2019) highlighted the pivotal role that behaviour in online hotel booking (Lien et al., 2015). Similarly, Amaro
social influence plays in promoting peer buying intention. Social influ­ and Duarte (2015) stressed that trust in online travel shopping exerted a
ence refers to buyer perception of the use of web shopping by a referent positive effect on consumers’ intention to purchase travel online. This
group. A referent group is composed of people who share similar needs firmly proves that trust is the main factor that can influence consumers’
and preferences. Referent groups are important to influence peer buying repurchase intention. Lau and David (2019) found that privacy and se­
action. curity increased customer trust and influenced their intention to pur­
Kotler et al. (2016) emphasised on another source of social influence chase using a food delivery service. Foodpanda, thus, can build more
for referent groups that derive from the social environment, which is the trust element to ascertain that their customers are confident with the
close circle of friends and family of an influencer. Apart from that, services. When customers are confident and satisfied with the service,
netizens can also be influencers in the online review site. Consumers they will form a loyal and long-term relationship with the vendor.
may be influenced by a brand that they have heard of before in a social Foodpanda can build their app with accurate and precise functions to
media platform. Besides, consumers can be influenced by online rating avoid users feeling anxious or worried when they purchase. With that,
systems, such as TripAdvisor and Yelp. These sources originate from the the next hypothesis is proposed:
netizens’ influencers. Netizens can be one of the most significant factors H6: There is a significantly positive effect of trust on customer
that drive social influencers to impact other buying behaviour. repurchase intention in Foodpanda delivery app.
Last but not least, the reason for clients’ buying intention using food Fig. 1 presents the research model used in this study based on the
delivery apps is based on social influence at social network sites, web­ literature review and hypotheses developed.
sites or app reviews. Social influence helps customers to be more
committed and to establish a psychological attachment to the new 3. Methodology
development. Hence, social influence is an important factor that allows
online users to repurchase using food delivery apps. 3.1. Research design
H5: There is a significantly positive effect of social influence on
customer repurchase intention in Foodpanda delivery app. This study employed the non-probability purposive sampling tech­
nique. According to Sekaran and Bougie (2013), purposive sampling is
confined to a specified category of people who can provide information

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that is sought after. The purposive sampling was deemed most suitable et al. 2015), this study adopted the more rigorous HTMT 0.90. Taken
for this study because users of Foodpanda delivery app age 18 and above together, these outcomes indicated that the common method bias was
and residing in Malaysia were in a better position to provide information not a threat to this present study. Therefore, discriminant validity is
required for this study. The questionnaire used in this study was adapted satisfactory. As shown in our measurement model (see Fig. 2), the R2 in
from a past study, along with several amendments to suit the context of this model displayed a high value of 0.597 for the endogenous constructs
this study. A total of 30 items were used for this research purpose. of repurchase intention, suggesting that 59.7% of the variance in
Measures for perceived effort expectancy (5 items) was adapted from repurchase intention in Foodpanda delivery app can be explained by
Van der Heijden et al. (2003). While perceived usefulness (5 items) was effort expectancy, perceived usefulness, information quality, perceived
borrowed from Chiu et al. (2005) and perceived risk (5 items) were risk, social influence, and trust. Hair et al. (2019) stated that R2 value
adapted from Shim et al. (2001). Meanwhiles, social influence (3 items) ranges from 0 to 1 - the higher the value, the higher the predictive
and information quality (4 items) were adapted from Lee et al. (2019). accuracy.
Trust was measured using four items adapted fromJarvenpaa et al.
(2000). Repurchase intention was measured by using a four-item scale 4.3. Structural model evaluation
that was adapted from Wang and Chu (2020) based on a well-established
seven-point Likert-type scale ranging from 1 (Strongly Disagree) to 7 The structural model represents the relationships between the con­
(Strongly Agree). Meanwhile, responses to the measurement of items for structs or latent variables hypothesised in the research model. The
independent variables (effort expectancy, perceived usefulness, infor­ bootstrapping analysis was performed on 5000 subsamples to test the
mation quality, perceived risk, social influence, trust) were based on significance of the regression coefficients, which can be applied to
five-point Likert scale from 1 (Strongly Disagree) to 5 (Strongly determine if the proposed hypotheses were significant or otherwise.
Disagree). Table 1 lists the measurement items applied in this study. From the initial set of paths, three were revealed as significance at the
An online invitation with a link to the questionnaire using ‘Google 0.01 level and the remaining were insignificant (see Table 4). The path
form’ was sent through WhatsApp and E-mail to all the target re­ coefficients of repurchase intention with perceived usefulness, social
spondents from October 2019 to January 2020. The target population of influence, and trust were 5.769 (p < 0.01), 3.713 (p < 0.01), and 3.017
this study refers to users of Foodpanda delivery app residing in Malaysia, (p < 0.10), respectively, hence supporting H4, H5, and H6. Neverthe­
particularly Kuala Lumpur, Melaka, and Johor Bahru. Based on G-power less, constructs effort expectancy, information quality, and perceived
with 0.15 effect size, 0.05 alpha, and 0.8 power; the minimum sample risk did not affect repurchase intention. Thus, H1, H2, and H3 are not
size required was 146. supported (see Table 4).
In order to assess the overall model fitness, the standardised root
3.2. Statistical analysis technique mean square residual (SRMR) had been determined based on the root
mean square discrepancy between the observed correlations and the
Data collected in this study were analysed with two types of statis­ model-implied correlations (Henseler et al., 2015). According to Hu and
tical softwares. The demographic data was analysed using the Statistic Bentler (1999), the rule of thumb is that SRMR values should be ≤ 0.08.
Package for Social Science (SPSS) version 25.0 software. The conver­ Hence, the model estimation showed that the SRMR value for the
gence validity, discriminant validity, the relationship between the var­ composite factor model was 0.072; denoting a fair fit (Browne and
iables and the Importance-Performance Matrix Analysis (IPMA) were Cudeck 1993).
analysed utilising Partial Least Square Structural Equation Modeling
(PLS-SEM) version 3.2.9. 4.4. The importance-performance matrix analysis (IPMA) results

4. Results The IPMA of path modelling for customer repurchase intention was
performed to extend the results of the structural model by taking into
4.1. Demographic consideration the performance of each latent variable on a scale from
0 to 100. According to Hair et al. (2019), relatively high importance and
A response rate of 89% was attained after 250 out of 280 respondents relatively low performance on a particular endogenous latent variable
completed the questionnaire with the following screening question: “do determine areas that require management attention. Turning to this
you use Foodpanda app platform for food delivery services”. From the study, both importance and performance of the latent exogenous vari­
250 usable responses, 42.8% were males, while 57.2% were females. ables on the endogenous variable (repurchase intention) were
More than two-thirds of the respondents fell in the 18–24 age group, measured. The results are illustrated in Table 5.
earned below RM1000 (52.4%) a month, and were degree holders The IPMA results for the endogenous variable of repurchase inten­
(68%). Most of the respondents (66.8%) actively sought food delivery tion are presented in Fig. 3. Based on the IPMA map, perceived useful­
via Foodpanda platform. ness has the highest in both performance and important. Effort
expectancy, on the other hand, has little relevance because it has low
4.2. Measurement model evaluation importance even though it has relatively high performance compared to
social influence. In addition, trust was the second most important after
The reliability of the construct measurement was evaluated by perceived usefulness, but it was recorded as the fourth lowest in terms of
examining composite reliability, as suggested by Gefen et al. (2011). performance. It implied that one point increase in trust, the customer
Table 2 tabulates that the composite reliability exceeded the benchmark repurchase intention is expected to increase by 0.232 of the total effect.
value of 0.70, thus demonstrating construct reliability. Out of the 30 It is of primary importance for improving customer repurchase inten­
items, 25 had loadings that exceeded the ideal level of 0.70, whereas five tion. Likewise, it was observed that of all the dimensions analysed, the
(EE2, EE4, IQ1, PR1, and PR5) items were greater than the acceptable information quality and perceived risk were the aspects of minor
level of 0.50 (Hair et al., 2019). This signified reasonable convergent importance for the sample in general. The results suggested that the
validity of the measurement model constructs. Convergent validity was company should pay less attention to the perceived risk as this is the
established for all the constructs since the average variance extracted least priority area for improvement, it has low importance (− 0.043) and
(AVE) met the suggested threshold of 0.50. Following this, discriminant low performance (19.973). The results from the IPMA analysis describe
validity was examined based on heterotrait-monotrait (HTMT) (Hens­ that the areas that need improvement with regards to the factors that
eler et al., 2015). As prescribed by scholars that the acceptable HTMT drive customer repurchase intention in food delivery apps within the
values (see Table 3) should be lower than either 0.85 or 0.90 (Henseler context of Malaysia are social influence and trust.

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5. Discussion about the security of payment while using the Internet. An interpreta­
tion of this result indicates that it is not a great concern for the con­
The R-square value of 0.597 showed that the factors in the present sumers in sharing their personal information while ordering their food
model can explain 59.7% of the variance in repurchase intention. Thus, through the food delivery apps.
the research model exemplified an appreciable explanatory power that
may serve as a robust framework for investigating repurchase intention 6. Conclusion
in the subject area of PSSC in future. The following discusses the study
implications. The study of PSSC and servitisation is a topic that is drawing the
Given the increasing demand for ordering food delivery via Food­ attention of academics and researchers. Several important contributions
panda app among customers, companies need to pay adequate attention, have made to this study. This study investigated the relationships be­
in order to satisfy the escalating needs and to retain their customers. The tween factors that drive customer repurchase intention in food delivery
results revealed that the effect of perceived usefulness was significantly apps of Foodpanda within the context of Malaysia. Understanding and
stronger than the other factors. It demonstrated that perceived useful­ involving customers is eminent to achieve servitisation, especially when
ness emerged as a vital element in influencing repurchase intention, it means giving value proposition to a company’s offerings. The com­
which is in line with that reported by Kian et al. (2018). Kian et al. petency of a company can be further improved based on its PSSC by
(2018) concurred that perceived usefulness of an online platform can making full use of the technology infrastructure to become more effec­
influence customers’ intention to perform online grocery shopping. tive and efficient. The study results may serve as a guideline in assisting
Perceived usefulness, which reflects more perceived benefits to con­ food delivery companies, such as Foodpanda, to comprehend and
sumers from using the Foodpanda app platform, can increase their explore the essential factors that can influence customers to repurchase
intention to reuse the app as a PSSC. using their apps. In order to compete with contenders and establish
Next, social influence appeared to be a potential factor that led to connectivity with consumers, this study can facilitate companies upon
repurchase intention. This finding is consistent with prior studies per­ identifying the most important reason that influences customer inten­
taining to online and offline PSSC (Kian et al., 2018; Lee et al., 2019). tion to purchase using their food delivery apps. This present study
The main difference between this present study and past studies is that prescribed that companies should focus on the problem they face, while
the latter seemed to focus on the importance of social influence in simultaneously overcoming their shortcomings. Such improvement will
adopting online apps for different business segments. However, this lead companies to more easily understand the needs of customers and
present study displayed that social influence is likewise significant when achieve their satisfaction when they apply the food delivery apps service
companies embrace the apps as a PSSC. One must understand that social platform. This helps a company to earn profile, reap larger market share,
influence can be an influential factor, especially when customers trust and gain loyal customers. Seemingly, the concept of food apps serviti­
that their family and friends would approve of them using food delivery sation is direct and is indeed substantial for the food delivery business,
apps. Approving social influence can positively increase the likelihood wherein enhancing customers’ engagement increases profit.
of consumers to reuse food apps as a PSSC. Despite meeting the study objectives, some limitations were noted in
More importantly, this study found that trust was an important this present that could have generated a different outcome. First, the
influential factor in achieving repurchase intention. Some evidence target sample derived from only three states located in Malaysia (Kuala
seems to support the significant link between trust and repurchase Lumpur, Melaka, and Johor Bahru). Therefore, the findings cannot be
intention (see Joaquim et al., 2019; Lau and David, 2019). Therefore, generalised to the entire population of Malaysia. Second, this study only
trust is a significant factor that can be applied to build consumer focused on respondents in Malaysia. Perhaps, future studies may probe
repurchase intention in the Foodpanda app platform. Upon having good into the Asian context, such as Indonesia, Singapore, and Thailand.
security experience in the purchasing process, consumers will trust the Collecting data from multiple respondents from various countries can
service providers and become loyal customers. The study outcomes were improve the validity of the research model. Third, the authors recom­
verified by the IPMA, which exemplified that the importance and per­ mend that future research may consider a qualitative study on food apps
formance of perceived usefulness had highly contributed to customers’ delivery users’ experiences in Malaysia. An in-depth description of the
repurchase intention for Foodpanda app platform in Malaysia. Despite experience will be useful to explore deeper into the issues of the
being the second highest level of importance in light of repurchase importance of food apps delivery services provided to the user from their
intention, trust had the third lowest level of performance among the own words and experience. Lastly, the data were collected from re­
other factors. This signified that Foodpanda might have overlooked the spondents who used the Foodpanda app. Hence, future studies may
aspect of building trust with their consumers, which can increase their incorporate data from other food apps delivery users, such as GrabFood
brand reputation and concurrently achieve higher customer repurchase and LOLOL, so as to enable a comparison between different food app
intention by using the app. The outcomes suggested that the company delivery companies.
PSSC should pay less attention to perceived risk as this emerged as the
least priority area for improvement. As pointed out by Mazzine Ray et al.
(2019), perceived risk has a negative impact on Malaysian Generation Y Declaration of competing interest
in purchasing via online platform.
Effort expectancy, information quality and perceived risk are not None.
significantly related to the repurchase intention. The influence of effort
expectancy does not have a strong influence on repurchase intention as References
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