Abstract

The rising growth of mobile food order applications have become more essentials and it
has increase the importance and create new opportunities of mobile market. Therefore,
understanding factors that that can influence consumers’ loyalty from using food order apps have
become important for marketers as well as food aggregators. The purpose of this research is to
discover and empirically analyze main factors that influence customers’ e-loyalty from using
mobile food order apps in Indonesia. The Unified Theory of Acceptance and Technology 2 and
collaboration are applied to verify the crucial factors. This research indicates quantitative to
collect the empirical data. The necessary data were gathered from a convenience sampling of
Indonesian users who used or experienced mobile food order apps. Accordingly, a sample of 358
surveys were distributed through online questionnaire in both Jakarta and Surabaya. The
empirical result mainly shows that habit has positively influence customers’ e-loyalty along with
social influence, performance expectancy, and facilitating conditions from using mobile food
order apps in Indonesia. With this regard, this research has contributed to provide an academic
knowledge and strategies for managers in the mobile food apps industry to promote, advertise,
and engage more with customers effectively.

Introduction

The rapid growth of communication technologies and information have greatly

transformed the market dynamics, making all business activities that previously were carried out
through physical interactions are gradually being achieved through virtual interactions of many
types. Physical stores as well as physical businesses have been seeking a new way to interact
with customers by using e-commerce as an attempt to achieve their competitive advantage. The
widespread adoption of mobile terminals particularly mobile application software has become
essential to perform daily activities, easy access of obtaining goods, and mostly the fully utilize
of the convenience presented by delivery based services. In addition, the increase transformation
of smart phones and mobile applications have also change the way customers interact with
brand. According to Statista (2019a), the mobile phone penetration worldwide is expected to
reach 63,4% in 2019 and over 50% of people spent their time on digital media. With this
explosive of number, it is crucial to have a deep understanding how on customers’ usage on
mobile apps as the key success of mobile marketing. Hence, many enterprises begun to apply
technological applications in their endeavors to maintain brand reputation, achieve marketing
aims, and enhance customers (Alalwan, Dwivedi, and Rana, 2017). In addition, mobile
platforms have essentially transformed the way how companies manage customers by creating an
innovative, unique, personalized experience and enterprises begun to accept mobile applications
as an additional communication way to attract potential new customer and enhance brand loyalty
(Wang et al, 2019; Alalwan, Dwivedi, and Rana, 2017; Ostdick, 2016).

Within the mobile commerce space across the world, one of the trend of mobile
applications can be found in food and beverages industry particularly mobile food online
ordering apps. Food companies and restaurants have begun to take into consideration of mobile
commerce as a new system to engage potential new customer or to retain customer contentment
and loyalty. In 2019, report shows that food and drink category were include as one of top ten
most popular apps categories to be downloaded for Apple users (Statista, 2019b). In Indonesia,
ordering food through mobile applications have become an integral part among mobile users.
With the presence of food online delivery services apps in Indonesia have changed people’s
behavior in consuming food to become more consumptive. Customers using mobile food order
apps more frequently to discover the restaurants nearly, choose the selected restaurants and look
through the menu, and then order the food only with a tap of finger while customers can just stay
at home waiting for the foods to be safely delivered to their home. Indonesian restaurants as well
as Indonesian food start-ups have begun to contemplate m-commerce as a new way to build their
brand recognition. With over 125 thousands of Indonesian restaurants and food start-ups have
joined food online delivery services. Food online ordering apps contain numerous innovative
attributes that can aid both customers and restaurants override issues which includes
miscommunication problems, delayed delivery, or dealing with customer complaints.

Despite many opportunities for businesses in digital era, conducting mobile commerce
also present many challenges for companies. According to Statista (2019c), mobile apps are
estimated to grow $189 billion in 2020. However, for apps developers, the development of
application is not financially fulfilling. Report shows that 67% developers earned less than
$500/month which resulted to inadequate to maintain their businesses. For food business
industry to stay in the market, it is essential to comprehend customer’s perceptive on the usage of
mobile application for developers to come up with effective strategies increase customer’s
engagement with apps, promote mobile apps as well as advertising within apps. Therefore, it is
critical for food aggregators and managers to know factors of mobile apps usage by customers to
provide and maintain customers’ satisfaction. The selection of Indonesia as for conducting
empirical study in this current research was because mobile food ordering applications are a
promising sector in the Indonesian market. In Indonesia with the total population of 268.2
million people the smartphone user penetration reached 60% in 2019 with over 90 million of
people have used smartphone as their device usage and its predicted that it will continue to
increase (Statista, 2019d), and over 5.000 billion number of mobile apps were downloaded
throughout the year of 2018 with the average 71 number of apps installed per smartphone device
(Appannie, 2019). With the explosion numbers of mobile users indicates that mobile applications
are now have become a basic essential part on every activity on each user.

Regardless of the rapid interest in mobile apps and their potential marketing effects, there
is a limited research with the usage of mobile apps as a convincing communication channel for
food ordering online and these related issues have not been fully studied and tested from prior
literature. In addition, most of the past studies are not conducted in Indonesia. Majority from
prior literatures of mobile applications in general and food order online in particular have
focused primarily on customers’ initial adoption or customer intention, and behavior towards
them. For example, previous researchers have applied antecedent frameworks such as TPB
(Ajzen,1991) to identified individuals’ intention with a subjective norms and perceived
behavioral control, or TAM (Davis,1998) to distinguish factors that assist customer to initially
begin to adopt a certain type of technology. Nevertheless, it is also important to notice that in this
digital era, consumers have already adopted and now are using mobile applications (Sanakulov
and Karjaluoto, 2015). The reseach will emphasize only on mobile food ordering apps and go
further from prior literature by going beyond factors of initial model application and considering
e-loyalty for customer which will be functional to parties earning profits. In addition, this
research plans to fill the research gap associate with mobile food ordering apps by presenting and
verifying a model that able to apprehend crucial factors related to Indonesian customers’
perspective and also considering the most dominant mobile commerce attributes. Thus, the main
goal in this research is to explore the main factors predicting consumer e-loyalty with mobile
food ordering applications in Indonesia applying and extending a conceptual model by
Venkatesh et al (2012) “Unified Theory of Acceptance and Use of Technology 2” with other
influencing factor to understand customer behavior. Furthermore, the following section in this
research are as follow; the next chapter discusses an overview of the main topics covered by
prior studies, followed by a chapter that discuss materials and methodological. Result and
discussion are explained in depth section in chapter four. The final chapter shows a conclusion,
limitations, and future research directions.
Review of Literature

Mobile food ordering applications are becoming more important in the food and
beverages industry to obtain potential customers. Many restaurants gradually recognize the
importance of mobile food ordering apps to help them enhance restaurant’s quality and
obtain customer satisfaction. Despite the extensive adoption of mobile food ordering apps by
restaurants, there is still limited interest in the academic field related to the mobile food
ordering apps. Mobile food ordering apps can be described as mobile applications where
users can download and apply an inventive and appropriate channels to order foods, make
advance payments, takeout food without having to wait in line (Wang et al, 2019). Majority
from prior literatures have mostly concentrated on customers’ aspect. The very first research
that made a contribution to develop a conceptual model of mobile food ordering apps context
using TAM with numbers of factors (social norm, self-efficacy, perceived ease of use,
perceived usefulness, and perceived enjoyment) to examine customers’ objective to use
mobile apps as a tool to encourage healthy eating behavior when ordering foods and drinks
(Okumus and Bilgihan, 2014). In addition, Cho, Bonn, and Li (2019) conducted a study in
China revealed that user perceived value, customers’ behavior towards food delivery apps,
and customers’ intention to continuously use food delivery apps were largely supported by
level of convenience, design, trust, and numbers of food choices between single person and
multi person families.

To distinguish psychological aspects that affect the adoption of smartphone diet apps
towards customer restaurant, Okumus et al (2018) created a conceptual model using
UTAUT. The result of their findings were largely shaped by performance expectancy, effort
expectancy, and social influence. Numbers of numerous studies have focused more to the
outcomes of mobile food ordering apps such as satisfaction, customer conversion rate, and
customer experience (Kapoor and Vij, 2018; Wang et al, 2019). Kapoor and Vij (2018) used
questionnaire and focus groups to explore the important predictors of mobile apps features
that influence customer conversion rate in Jordanian context. While Wang et al (2019) used
questionnaire to gather to investigate the main drivers of customers’ usage on mobile
catering apps on the basis of IS Success model. Result of their findings found that customers
have a positive significant value and will most likely satisfied with their experience on
mobile catering apps when customers recognize a sufficient level of information, system,
services, and product.

A further research is necessary to conduct in order to contribute the successful of mobile

food ordering applications especially there were no any related studies regarding mobile food
order online services in Indonesia while food services in Indonesia is continuing to grow.
Therefore, it is necessary to investigate factors that could influence Indonesian behavior
towards mobile food order apps. In terms of using smartphones or ordering food from apps,
customers’ habitual behavior could be one of the critical predictors that influence customer
intention and behavior towards mobile food ordering applications (Alalwan, Dwivedi and
Rana, 2017; Erikson, Kerem, and Nilson, 2008). Other important factor based from prior
literature related to mobile commerce is that the inventive attributes of mobile technology
such as collaboration. This construct has been adopted from only one study (Kapoor and Vij,
2018). Hence, further research is required to examine all factors that might affect customers’
awareness of the value of mobile food ordering apps as well as their effect on customer e-
loyalty.

This study used Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) as
the planned conceptual model to validate main factors influencing customers’ e-loyalty
towards mobile food ordering apps. The UTAUT2 model contains main determinants that
have been approved from prior literatures in the mobile food ordering apps context such as
price value (Cho et al, 2019; Wang et al,2019), performance expectancy, effort expectancy,
social influence (Okumus et al,2018), and hedonic motivation (Yeo, Goh, and Rezaei,
2017). Beside it is also worth to highlight based from prior studies to discover the
necessities of examining the attributes empowered by mobile commerce applications such as
collaboration (Kapoor and Vij, 2018; Cho et al,2018; Wang et al,2018). Thus, all seven
determinants in UTAUT2 model will be applied along with collaboration that associated
with mobile apps attributes to determine the effect of customers’ e-loyalty towards mobile
food applications in Indonesia.

Performance expectancy indicates the extent which consumers attain benefits from using
technology while conducting certain activities (Venkatesh et al, 2012). Customers are
highly possible to have positive response and be more motivated to new technologies if they
see the technology is more beneficial and useful for them to perform their daily activities
(Venkatesh et al, 2003). For example, users of mobile food order apps can place their food
order through the apps at any place and anytime, place their food orders, pay through the
mobile apps without having to actually visit the restaurants. While the consumers waiting
for the foods to arrive, consumers could focus on their other important activities. The
construct of performance expectancy has also repeatedly been deemed to have a significant
effect for customer behavior on technological usage (Venkatesh et al,2012; Rana et al,2016;
Alalwan et al,2017; Shareef et al,2018). In the mobile food order online context,
performance expectancy indicates food order in relation with activities which consumer can
apply using mobile food order online apps. The construct of performance expectancy has
been used by several researchers to study consumer behaviors toward food order online
decisions (Okumus et al,2018; Wang et al, 2018; Yeo, Goh, and Rezaei, 2017). With this
conception, it can be presumed that customers’ loyalty and continuous usage of mobile food
order apps arises if customer acknowledge the benefits of mobile food order apps. Hence,
the result of hypothesis 1 (H1): Performance expectancy from using mobile food order apps
positively affect customers’ e-loyalty.

Effort Expectancy refers to the degree which technology is easy to use (Venkatesh et
al, 2003). Effort Expectancy also corresponds with perceive ease of use in TAM (Davis,
Bagozzi and Warshaw, 1989), where the individuals’ acceptance of technology is not only
measured by the positive value of the technology but also the usage of technology that
requires free effort. With the development of smartphone technologies, comes a rapid
increase with the high-tech features on smartphones that form ease of use as experienced by
customer. Hence, Effort Expectancy in mobile food order apps context signifies the ease
related with using mobile food order apps and it is crucial for continuous usage behavior.
When customers use the mobile food orders apps, they have to place their food order
individually without the assistance from the restaurant staff. So it is critical to have food
order apps that are easy for consumers to use the application. Numerous researchers have
verified that effort expectancy is a crucial determinant on customers’ behavior (Alalwan et
al,2016; Shaw and Sergueeva,2016). Therefore, it can be stated that the easier usage of
mobile food order apps, the higher possibility for consumer to use them. In accordance with
these findings, the result of hypothesis 2 (H2): Effort expectancy from using mobile food
order apps positively affect customers’ e-loyalty.

Social influences based from prior empirical studies have broadly examined and
validated the conception as well as influences on building consumers’ behavior (Huang and
Kao,2015). In addition, it also has been revealed as an important determinant of the
acceptance and usage of technology products in different fields (Venkatesh et al,2012;
Phang, Zaiton and Cheuk, 2018). Social influence refers as the extent of which individuals
are influenced by others believe to engage with technology products (Venkatesh et al,
2012). Individuals have greater possibilities to go back to their social environment in order
to obtain more information, raise awareness or seek a social approval for their technological
usage decision (Verkijika, 2018; Khalilzadeh, Ozturk and Bilgihan, 2017). Thus, the
encouragement and information of the surrounding social environment (friends, family,
relatives, colleagues) can play a significant role in contributing consumers’ awareness
towards technology usage (Alalwan et al,2017; Okumus et al, 2018). This indicates that
social influencers can increase the customers’ loyalty by encouraging users to use and order
from mobile food order apps. Prior empirical studies related to food order online have
shown the significant role of social influence. Okumus et al. (2018) discovered that Social
Influence significantly influence consumers’ behavior. Hence, Social Influence as define in
this mobile food apps context is the extent of consumers’ perception of their social
surrounding environment to be influential to use mobile food order apps to order food for
their decision. To confirm this relationship in the context of mobile food order apps,
hypothesis 3 (H3) is proposed: Social influence from using mobile food order apps
positively affect customers’ e-loyalty.

Facilitating condition construct refers to the extent of individual perceives that human
support and technology infrastructure are available to the usage of technology products
(Venkatesh et al, 2003). Facilitating condition is the necessary resources and information to
utilize particular mobile apps. In terms of technology infrastructure prospective, food order
apps are software that can be used with smartphones and can only be effective when the
internet is available and the existence of 4 G services which then will determine how well
the apps function. Consumers also notice to the value of the apps and its capability to work
steadily without having much technical problems. Therefore, facilitating condition include
all phone features and specification. Beside technical perspective, human supports also play
contribution for the construct in customer service, delivery services, and call center. These
are important factors to secure a high value of service to consumers. In other words,
customers are more likely be more motivated if they have certain level of supports and
resources which will also increase their loyalty by using and order more from the
applications. However, there will be a higher hesitancy and resistance experience of
consumers to use apps if the facilitating condition is insufficient. Thus, facilitating condition
has been widely confirmed by prior marketing researchers to have an important effect on the
customers’ intention and actual usage behavior (Khalilzadeh, Ozturk and Bilgihan, 2017,
Verkijika, 2018). Therefore, hypothesis 4 (H4): Facilitating Conditions from using mobile
food order apps positively affect customers’ e-loyalty.

Conceptually, Hedonic motivation can be viewed as pleasure feeling caused by using

technology products, services, and applications (Venkatesh et al, 2012). Aside from
extrinsic motivation (perceived usefulness, performance expectancy), intrinsic motivation
(e.g. fun, enjoyment, pleasure) has constantly been deemed as an important determinant in
relation to technology acceptance and usage from customers (Alalwan et al, 2018). Mobile
apps have now become an essential part on consumer’s daily life. In addition, apps such as
mobile food order apps have been noticed to be innovative and modern (Yeo, Goh, and
Rezaei, 2017) which more likely lead consumer to feel enjoyment and entertaining while
using the applications. Based from the discussion above, customers are more likely to
increase their loyalty with their experience if they comprehend the value of their motivation
toward the apps usage. Hence, in the mobile food order apps context, hedonic motivation
requires aspect in the mobile apps that consumer apprehend as fun, entertaining, and
enjoyable. Yeo, Goh, and Rezaei (2017) found that hedonic motivation has positively affect
customers’ ease of usefulness of online food order delivery system. Thus, hypothesis 5 (H5:
Hedonic motivation from using mobile food order apps positively affect customers’ e-
loyalty.
 Price value originated from perceived value, which often considered as a critical
indicator in predicting customers’ purchase behavior. Venkatesh et al. (2012) then added
price value as a construct in UTAUT2 to be more suitable for consumer market. Price value
can be defined as a tradeoff of perceived benefits received and costs paid for using the
technology (Venkatesh et al,2012). From the marketing context, the price value has often
viewed as a set with the quality of products or services to measure its perceived value
(Ismail et al, 2018). In this mobile food apps context, the benefit of mobile food order apps
is the applications are free to download. The free download mobile food order will play a
key determinant in influencing customers’ loyalty. In addition, using mobile food order
apps save customers from financial and nonfinancial cost. For example, customers can save
energy and less effort without having to visit the restaurants. Restaurants have recently
provided customers with promotion, free delivery, discounts, if they use mobile food order
apps rather than visiting the restaurant. All these benefits could perform as a validity
indicator and assist potential users to appraise their value. Thus, the experience from using
apps will increase customers’ loyalty if the associated benefits higher than the financial
costs. Hence, this study proposes the following hypothesis 6 (H6): Price value from using
mobile food order apps positively affect customers’ e-loyalty.
Habit is the last factor added to the UTAUT2 model. the construct has been widely
examined across different contexts such as consumers’ purchase behavior, psychology,
health science (Huang and Kao,2015). There are two definite theoretic viewpoints of habit
construct (Kim, Malhotra and Narasimhan, 2005; Limayem, Hirt and Cheung, 2007).
Limayem, Hirt and Cheung (2007) defined habit construct as habit automaticity perspective
(HAP) or the degree which individuals tend to conduct the usage of technology products as
an automatic response based from the routinize behavior. In addition, this theory was
supported by Venkatesh et al. (2012). While Kim, Malhotra and Narasimhan (2005) viewed
habit construct as instant activation perspective (IAP) or an outcome based from cognitive
processing. Thus, in this mobile food apps context, habit can be viewed as the degree of
individuals’ behavioral pattern that propound the need to frequently use mobile food order
apps. It is assumed that the outcome of habitual behavior in using mobile food order apps
(e.g. order food online), could affect customers’ attitudes which in turn that automaticity
will take charge to predict customers’ continued usage intention in the same manner as
previously. This indicates that the continuous usage behavior will lead to higher customers’
loyalty. In addition, it has been confirmed that food service industry plays a critical part in
daily eating habit (Penney et al, 2016). Several researchers have verified the role of habit
construct in mobile commerce field (Yen and Wu, 2016; Sun and Chi, 2018). Hence
hypothesis 7 (H7): Habit from using mobile food order apps positively affect customers’ e-
loyalty.

One of the most important element that could affect consumers’ behavior on the mobile
apps usage is collaboration (Kapoor and Vij, 2018). Collaboration can be viewed as an
association between food online aggregator and e-commerce players in the business field
(Kapoor and Vij, 2018). Subsequently, studies proved that collaboration have a positive
effect toward consumers’ loyalty based from the finding of Osuna et al. (2015), which
claimed that customers are more motivated if they were offered by discounts. Majority of
food online gatherer have association with other e-commerce in result of providing
discounts, promotion, or even cash back to make their customer use their mobile apps more
frequent. For example, GrabFood in Indonesia has a collaboration with ovo wherein when
customer order foods on GrabFood app and make the final purchase with ovo, customers
can get discounts or cash back. However, these cashback and discount can only be redeemed
when they order through the mobile app. In addition, GrabFood also provide their customer
with rewards points that needs to be collected in order to get more discounts for the next
purchase. Customers are more likely to use apps frequently if they were provided with more
discounts or cashback. In this mobile food apps context collaboration can be defined as a
partnership between food online gatherer and other e-commerce with the purpose of
providing rewards to customer. Accordingly, based from the findings hypothesis 8 (H8):
Collaboration from mobile food order apps positively affect customers’ e-loyalty.

E-loyalty can be described as customers’ intention to revisit and repurchase from an e-

commerce portal (Purani, Kumar and Sahadev, 2019). Review from prior literatures on
consumer behavior toward mobile apps research revealed that behavioral intention and post
purchase behavior are antecedents from customers’ loyalty. The conception of e-loyalty has
enlarged the traditional loyalty concept to online consumer behavior. Generally, customer
loyalty refers to a supportive behavior from customer towards a product or a brand (Uncles,
Dowling, and Hammond, 2003). However, (Luarn and Lin, 2003) claimed that despite the
importance customer loyalty in the marketing literatures, the conceptual definition of
customer loyalty for e-service context is still very much ambiguous and yet to be developed.
Therefore, customers’ loyalty in The mobile food apps context only intensifies on the loyalty
toward mobile food order apps experience instead of looking at the overall customers’
loyalty. Although m-commerce now has been an important part in daily life, study of
customers’ loyalty in using mobile apps is still limited. Many of researchers have focused
more on the customers’ objective to accept mobile internet, rather than customers’ loyalty in
m-commerce. While there is a differences between customers’ loyalty and customers’
acceptance, however some researchers claim that evaluating behavioral intention to e-
commerce usage was propounded as a method to evaluate the success of e-commerce
indirectly and customers’ loyalty (Shafiee and Bazargan,2017). Additionally, customers’
acceptance can lead customers to use mobile commerce which then the customer loyalty is
built. Therefore, this study examines effects of customers’ acceptance and use of mobile food
apps on e-loyalty. Based from the review above, a conceptual framework has been made.
The framework contains seven factors from UTAUT2 model as proposed by Venkatesh et al.
(2012), and one additional construct related to mobile apps attributes as suggested by Kapoor
and Vij (2018). Based from the review above, a conceptual framework has been made. The
framework contains seven factors from UTAUT2 model as proposed by Venkatesh et al.
(2012), and one additional construct related to mobile apps attributes as suggested by Kapoor
and Vij (2018) was presented in Figure 1.
Figure 1. Conceptual Framework
Materials and Methods

In order to attained the empirical data required to analyze the research hypotheses and
provide a valid research, non-probability convenience sampling is chosen as the design
sampling to perform a survey. Convenience sampling involves participants who are
convenient to approach or easily available (Taherdoost, 2016). This approach is chosen
because the convenience sampling is suitable to collect sample data as it allows to simplify
the data collection at a relatively low cost (Okumus et al, 2018). In this context of research,
quantitative survey is applied to investigate consumers’ behavioral intention towards
customers’ e-loyalty using the UTAUT2 elements (PE, EE, SI, FC, HM, PV, HT) and
collaboration. Using survey strategies allows to get more control to the process of research
and findings of sample are possible to generalized back to the population (Saunders et
al,.2016). Data were performed in Indonesia using self-administered questionnaires.
Questionnaires were distributed online to Indonesia users who have used or experienced
mobile food order apps. The targeted participants came from different demographics, such as
gender, age, and occupation. A sample is approached in two main cities in Indonesia include
Jakarta (8.5 million population), the capital and most populated city; and Surabaya (2.3
million population) the second largest city. The reason for choosing these two cities is that
the total number of food sectors reaching over 24.000 units (Gbgindonesia, 2017). Most of
those food outlets can be found in Jakarta and Surabaya. 479 questionnaires were distributed
in this study to give a higher accuracy result with 1-month period to complete.

The survey questionnaires incorporated of structured questionnaire with close ended type
of questions to gather respondents’ information. The survey took approximately 10 minutes
for each participant to complete the questionnaire survey. The questionnaire was distributed
online through social media and mail and it was selected for the convenience of the
respondents to avoid any participant bias and error. The contributors are secured with
anonymity, and they can conduct the questionnaire survey in any place and time they find
convenient to avoid any participant as well as researcher bias and error. Respondents will be
given the same questions and answer options based from the structured questionnaire the
researcher designed. In the first part of the questionnaire, researcher explained an
introduction of the research topic along with the main objective of the study to the
contributors. After the introduction were explained, participants were asked to fill the
demographical questions about their gender, age, occupation. In addition, the survey contains
screening questions to asked how they have used mobile food order apps before, and their
experience with mobile food order apps. These questions indicate that only participants who
had experienced with mobile food order apps were considered qualified to answer the
questionnaire. The last part of the questionnaire indicated for the main scale items.

The items on the survey questionnaire were adapted from Venkatesh et al. (2012) and
Kapoor and Vij (2018). It includes 33 measurement items, specifically 29 items of
independent variables and 4 items of dependent variables. This study used the element based
from prior studies to validate the scale used. To measure the scale items, a 6-point Likert
scales were adapted varying from “1 - strongly disagree” to “6 - strongly agree”. The survey
method was revised in order to achieve the requirements with the current research study to
explore factors that affects the customers’ e-loyalty towards mobile food order apps. To
secure the reliability in this research, the data collected will be analyzed statistically with
Cronbach’s alpha with values higher than 0.7 (Hair et al, 2014). Beside reliability analysis,
Pearson’s correlation is implemented on the data to examine the relationships between
independent variables and dependent variable. The independent variables in this research are
performance expectancy, effort expectancy, social influence, facilitating conditions, hedonic
motivation, price value, habit, and collaboration. While the dependent variable is customers’
e-loyalty. The multicollinearity occurs when the result of correlations is more than 0.90. In
addition, to secure the validity in this research, this study adopted scales that already been
approved and applied in similar research “Theory Acceptance and Use of Technology 2”
from Venkatesh et al. (2012) and collaboration from Vij and Kapoor (2018). This research
also contains control variables include gender, age, and occupation. The data gathered then
will be inputted, cleaned, and formatted using SPSS (Statistical Package for the Social
Science).
Table 1. Literature sources of item generation.

Construct Sources
PE (Performance Expectancy) Venkatesh et al. (2012)
EE (Effort Expectancy) Venkatesh et al. (2012)
SI (Social Influence) Venkatesh et al. (2012); Leong et al. (2013)
FC (Facilitating Condition) Venkatesh et al. (2012)
HM (Hedonic Motivation) Venkatesh et al. (2012)
PV (Price Value) Venkatesh et al. (2012)
HT (Habit) Venkatesh et al. (2012); Verplanken & Orbell
(2003)
CN (Collaboration) Kapoor & Vij (2018)
E-Loyalty Venkatesh et al. (2012); Akour (2010)

Result and discussion

Based from the data that were collected, out of 480 questionnaires, 358 responded and
were found to be valid. All questionnaires that were gathered to conduct an analysis, have a
response rate of 74.7%. The demographical analysis found that more than half of the
respondents are female (62.6%), while male respondents are recorded for 37.4% respondents.
For the age distribution, majority of participants are within the age 21 to 30 years (66.8%),
following 21.5 % within the age group of 18 to 20 years, 4.5% in the age above50 years, 4.2%
within the age group of 41 to 50 years, and the smallest percentage of 3.1% in the age group 31
to 40 years. According to categories, 44.3% are employee, 40.5% are students, 12% are self-
employee, 3.1% are housewife, and 1.1% are other categories that include freelancer, co-
assistant doctor, and people who are unemployed. In terms of people who have experience with
mobile food order apps, 100% participants have used mobile food order apps before with most
participants had experience for around one to two years (41.9%).

The result of reliability test using Cronbach alpha’s value on each variable revealed as
follows; PE (0.87), EE (0.88), SI (0.87), FC (0.87), HM (0.87), PV (0.87), HT (0.87), CN (0.87),
EL (0.85). As it was stated by Hair et al. (2014), the value of Cronbach Alpha’s has to be more
than 0.7 for variable to be considered acceptable. If the result of Cronbach Alpha’s value closer
to 0.9 it signifies a good internal consistency and high reliability in the scale (George and
Mallery, 2003). Based from the result findings, effort expectancy has the highest of Cronbach
Alpha’s value with 0.884. In addition, the result also implies that all data that were collected are
in high reliability.

The purpose of conducting correlation test is to discover how variables correlate with
other variables. Based from the correlation result shows that all variables don’t have correlation
value more than 0.90. This result implies there is no multicollinearity issue was founded in this
study. In Pearson correlation test, it is important to look at the p-value and the value of r. The p-
value in Pearson’s correlation must be less than 0.05 in order for the data to be significant
correlate (Cohen, 2013). The result in this study found that all variables p-value are 0.00 (p-value
> 0.05). This indicates that all variables in this study are significant correlate. Beside p-value, the
value of r is also as important. According to Evans (1996), there are four classifications to
describe the strength of correlation by looking at the value of r or Pearson correlation coefficient:
0.00 – 0.19 “very weak”, 0.20 – 0.39 “weak”, 0.40 – 0.59 “moderate”, 0.60 – 0.79 “strong”, and
0.80 – 1.00 “very strong”. The result of Pearson correlation test on all independent variables
towards e-loyalty are as follow; PE (0.600), EE (0.371), SI (0.625), FC (0.523), HM (0.552), PV
(0.516), HT (0.804), CN (0.544). Thus, all variables have positive correlation to e-loyalty in
particular HT (0.804), SI (0.625), PE (0.600). In addition, the strongest positive correlation can
be found between habit and e-loyalty with 0.804 r value. While the weakest relationship can be
found between effort expectancy and habit with 0.241 r value or Pearson correlation coefficient
which indicates a weak positive correlation. Table 1 presents the results of multiple regression
analysis.

Table 2. Multiple regression analysis result

Hypothesis Variables Standardized Sig. value Decision

Coefficients Beta
H1 PE 0.10 0.01 Supported
H2 EE 0.04 0.22 Not Supported
H3 SI 0.15 0.00 Supported
H4 FC 0.10 0.01 Supported
H5 HM 0.07 0.06 Not Supported
H6 PV 0.03 0.45 Not Supported
H7 HT 0.56 0.00 Supported
 H8 CN 0.03 0.36 Not Supported

Regression analysis in which the dependent variable is determined by two or more

independent variables in known as multiple regression (Verma,2013). To develop multiple linear
regression, it is critical to know the efficiency of estimation. The efficiency of estimation is
measured by coefficient of determination (R²). The result of value coefficient of determination
(R²) in this study is 0.743 which signifies 74.3% the variation of e-loyalty (dependent variable)
can be justified by performance expectancy, effort expectancy, social influence, facilitating
condition, hedonic motivation, price value, habit, and collaboration (Independent variables). In
addition, the remaining 25.7% variation can be described by other factors which were not
included in this study of research. Table 2 summaries the result of multiple regression analysis.
Based from the result in Table 2, PE, SI, FC, and HT have positive influence on the e-loyalty as
the p-value is less than 0.05 (p-value < 0.05). This indicates that H1, H3, H4, and H7 are
supported. The standardize coefficients value (Beta) of PE, SI, FC, and HT are 0.56, 0.15, 0.10,
and 0.10 accordingly. This means that Habit (HT) is the strongest predictor with positive
influence on customers’ e-loyalty towards mobile food order apps, then followed by SI, PE, and
FC. On the other hand, EE, HM, PV, and CN constructs do not have any influence on e-loyalty
with the reason of p-value are more than 0.05. Thus, H2, H5, H6, and H8 are not supported. The
respective value of EE, HM, PV, and CN are 0.03, 0.03, 0.04, and 0.07.

The study’s result has empirically confirmed that habit positively affect customers’
loyalty. Habit in this study is the degree of individuals’ behavioral pattern that suggest the need
to regularly use mobile food order apps. Habit also found to be the strongest and the most
influential predictor on customers’ loyalty. This illustrate the importance of habitual behavior
towards mobile food order apps from Indonesian customers’ perspective. Generally, users who
are pleased about the result or the outcome of their experience are potentially going to repeat the
behavior. This indicates that Indonesian users who are contented with the experience from using
mobile food order apps are most probably to have a habitual behavior such as use and order
mobile food order apps more frequent or repeatedly. In addition, smart technology products
particularly in this case are mobile phones and mobile apps have come into human lives which
has become natural and people start to rely more on mobile apps. With this kind of behavioral
pattern will lead to higher customers’ loyalty towards mobile food order apps. The result in this
study is supported with Phang, Zaiton and Cheuk (2018), Yuan et al. (2015) findings.

Social influence in this study signifies the degree of how consumers perceive their social
surrounding environment to be persuasive to use and order through mobile food order apps. The
empirical results in this study shows that social influence positively affect customers’ e-loyalty
from using mobile food order apps. Indonesian users seem to be more affected by family and
friends’ recommendations and suggestion that could determine their decision to use and order
food order apps. These social factors or influencers are very powerful people to the users and
their opinions will highly affect their behavior to use and order more from food order apps which
will increase users’ loyalty. In addition, when social influencers view mobile food order apps as
suitable, it forms users’ high usage behavior. This empirical finding is in agreement with the
recent study that social influence is significantly impact with consumers’ usage behavior to shop
through mobile shopping apps (Phang, Zaiton and Cheuk, 2018).

Performance expectancy in this study is interpreted as how customers perceive that using
mobile food order apps can increase productivity into their activities. Based from the result, PE
has been confirmed to positively affect customers’ e-loyalty which in agreements with Purani et
al. (2019), Rahi, Ghani and Ngah (2018), and Alalwan (2018) initial findings. This result reflects
from the perspective of Indonesian smartphone users found that using mobile food order apps are
beneficial and improve their productivity in their daily activities which clarifies the usefulness of
mobile food order apps and increase customers’ e-loyalty. Mobile food order apps have different
kinds of interesting features that provide users high mobility and flexibility when it comes to
ordering food rather than the traditional methods such as ordering foods by directly visit the
restaurants. By ordering food through mobile food apps can save more time and effort for
individuals to do other activities that have more priorities. In addition, based from the findings in
this study found that usefulness in performance expectancy is more important than the ease of
use in effort expectancy which indicates that users will not be using mobile food order apps if it
is not considered useful to their life no matter how effortless to use the apps. Customers’ loyalty
will increase when they perceive mobile food order apps are useful.

Facilitating condition signifies the extent to which human support and technology
infrastructure influence users to use mobile food order apps. Statistical results in this study
confirmed that facilitating condition positively influence e-loyalty. This result shows that
Indonesian users do pay more attention with the necessary resources, facilities, skills, and
supports that are essential to use mobile food order apps effectively. The facilities that are
necessary associate with mobile food order apps include internet access, secured access,
customer services, 4G services, delivery service, and call center. With higher quality facility
conditions food order apps provide, it will also increase customers’ loyalty. Thus if the
customers have the required resources and support, they are more likely to use and order more
through mobile food order apps. This result aligns with Hew et al. (2015), Gharaibeh and Arshad
(2018). Thus, H4 is supported.

Effort expectancy implies the ease of use related with mobile food order apps. However,
contrary to Venkatesh et al. (2012) initial finding, effort expectancy does not have significant
effect in this study. Result shows that the effect of effort expectancy is less than performance
expectancy with the beta coefficient value of 0.04 and 0.10 value for performance expectancy.
This also reflects that Indonesian users paid less attention in relation to mobile food order apps
with the extent of simplicity and easy to understand. It has been argued that there’s a possibility
of effort expectancy lose their effect to customers’ usage behavior if the perceive of usefulness is
increase or with the high level of benefits they received (Davis et al, 1992). This statement is
supported with the empirical result in this study which customers have more value on
performance expectancy which also indicates that customer’s loyalty tend to increase because of
the usefulness in using food order apps. With the benefits customers obtained from using mobile
food order apps, customers are more likely to ignore the perceived of complexity of using food
order apps. The high quality facilitating conditions of mobile food order apps have provided to
their users in the form of technical perspective as well as human support have made them paid no
attention to the ease of use construct. In addition, the participants in this study are users who had
an experience with using mobile food order apps so users can order and purchase through mobile
food order apps without having to consider the complexity of the apps. The similar result of this
study also failed to confirm the effect of effort expectancy on customers’ usage behavior to
mobile commerce (Shaw and Sergueeva, 2019).

In this research, hedonic motivation refers to aspects of mobile food order apps that users
consider as fun, entertaining, and enjoyable. The statistical result in this study failed to verified
the role of hedonic motivation to e-loyalty from using mobile food order apps which in
agreement with the findings of Gaitan, Peral, and Jeronimo (2015), Gharaibeh and Arshad
(2018). In the case of technology products, the innovation or design of the apps are important to
determine the users’ usage behavior that lead to higher loyalty. When it comes to technology
product usage, novelty seeking and innovation can be added to hedonic motivation. However, as
experience increases, the attractiveness of novelty which support to the impact of hedonic
motivation can decrease and users will use technology products for more pragmatic reasons such
as obtain effectiveness (Venkatesh et al, 2012). This statement is supported with the empirical
result in this study. Most respondents in this study are people who have experienced with mobile
food order apps for around one to two years’ experience which indicates that Indonesian users
are getting used with the food order apps so they are more likely use it for practical purposes (e.g
performance expectancy). In addition, based on the statistical result we can see that the effect of
performance expectancy to customers’ e-loyalty (0.10) is higher than the hedonic motivation
(0.07) in this study.

Price value in this context of study views as customers’ consider mobile food order apps
are worth its value. Based from empirical result found that price value is not significant to the
customers’ loyalty which is line with Hew et al. (2015). This results shows that price value
earned less attention from Indonesian users’ prospective. Although users perceive that the
benefits of using mobile food order apps they received exceed the monetary value paid or in this
case the mobile food order apps are free, users would not have considered to always use the
apps. The consequences of users’ experience for long term period in customers’ loyalty context
in this study is largely predicted by the role of habit and social influencers.

In this context of study, collaboration refers to an association of a certain food online

aggregator and e-commerce players in the business field to provide discounts, cashback, and
coupons. The statistic result from the current study failed to verify the role of collaboration on
customers’ loyalty. This empirical finding shows that most of users are not driven by discounts
and coupons that food order apps provide through their collaboration with other e-commerce
players. One of the possible reason would be majority of participants in this study already have
an occupation or a stable job that includes employee, self – employee, doctors, and other
occupation which when it comes to ordering food they are not price sensitive. In order for users
to receive their reward programs from using mobile food order apps, users have to download
another apps or either have an account of other e-commerce players that have a partnership with
the food order apps which might result ineffective. Not many customers are willing to download
the other apps or join an account just so that they can receive discounts, cashback and coupons.
For example, GrabFood in Indonesia has partnership with ovo, a smart payment application in
which when users order food, users have to pay through ovo in order for them to get more
discounts or cashbacks. This result is supported by Shamout (2016).

The contribution of the current study to an academic implication is by providing a deeper

understanding from Indonesian prospective related to factors to that influence the successful
implementation of mobile food order apps particularly since there has not been well examined
studies in Indonesia related to the mobile food order apps. Different from prior studies on mobile
food order apps, rather than focusing on the initial adoption and customer intention, this study
has put more focus on e – loyalty. In addition, the study also tries to contribute to the academic
implication by verifying the role of collaboration that gives a new construct for the present
knowledge regarding important aspects viewed by customers in forming customers’ loyalty
experience from using mobile food order apps. Hence, in this matter the current study is able to
extend the range from the initial theory of UTAUT 2 by Venkatesh et al. (2012). Other than the
theoretical contribution, the following implications provide deeper understanding and are
recommended for business practitioners in mobile apps industry and marketers that should be
considered in designing strategies and marketing mobile food order apps. In this context, the
aspect of habit and social influencer should be paid more attention because these factors have
greater influence on customers’ e-loyalty. Developer apps should constantly strengthen users’
habit with more upgrades such as information design, visual design or provide more benefits in
their mobile food apps compare to their competition. Many customers have recently concerned
about their healthy eating habits so they take more interest on their food choices (Okumus et al,
2018). Therefore, app developers should consider to provide credible nutritional information.

Designer system apps should intensify on the functionality of the apps from the users’
perspective. In addition, they also should put more attention to the accuracy of the delivery time
which increase customers’ loyalty. A regular maintenance is required to do in order to guarantee
the reliability and the quality of mobile food order apps. Providing human support plays an
important role to increase customers’ loyalty. Beside the delivery services, providing call center
and customer service can be included in the human support. Customers service and call center
should be responsive when it comes to dealing with customers. They follow up comments,
reviews, as well as critics by customers to ensure the quality of mobile food order apps and to
make sure that customers are provided by reliable, credible information resources.

Since the social influence is the second strongest predictor, marketers should consider to
include social influencers or celebrities on their promotional campaign to influence customers.
Beside including social influencers, mobile food apps developers must maintain their reputation
since users’ decisions are affected by people surrounding them such as family, friends, or other
users of mobile food order apps and they are most probably want to use food order apps with
good reputation. Social media platforms, media sharing, and mobile messaging are efficient in
spreading positive word of mouth. However not only social media platforms, traditional media
tools have to be used as well. Mobile food operators should consider to intensify users’
experience of ordering food by emphasize more attributes of mobile food apps such as
responsiveness, connectivity, personalization, and active control. Operators could update their
historical customer data to achieved personalization. With all things considered, so long as
customers received high personalized treatment and services, customers will highly value using
mobile food order apps and accordingly increase customers’ loyalty. Furthermore, mobile food
order apps should design their apps in which customers have more control during the ordering
process.

Conclusion

Factors that influence customers’ e-loyalty from using mobile food order apps has been
successfully explored by applying the UTAUT2 model along with CN as additional construct.
Result shows that HT is the most prominent influence on customers’ e-loyalty, then followed by
SI, PE, and FC, while EE, PV, HM, and CN as the additional construct do not influence
customers’ e-loyalty towards mobile food ordering apps. It also indicates that based from the
perspective of Indonesian customers, a regular behavior of using mobile food order apps along
with the influence and suggestions from social influencers are the strongest impact which lead to
a higher customers’ loyalty that managerial and any food aggregators should put more attention
towards those two factors. Further explanation and discussion were provided regarding the
theoretical and managerial implication. Overall, the result of this study is useful for business
field particularly managers in the mobile food apps industry in strengthen their marketing
strategies as well as their corporates.

Limitations, Recommendation for future research

The limitation concern in this research is that although the study used convenience
sampling and data were collected in two main cities in Indonesia, the result findings might not be
generalizable since the it doesn’t reflect of the wider Indonesian population. In addition, there
was a language difficulty for non-English speaking to make a contribution taking the
questionnaire. However, it has demonstrated a feasible start for future research and assist with
marketing review. Furthermore, future research should be conducted into a wider Indonesian
population with more cities selected to demonstrate a true demographic characteristics of
Indonesia population. In addition, qualitative research could also be added to give a deeper
insight of consumers’ perspective to help the successful of mobile food order apps. Finally, the
future should also consider to add other factors for example cultural factors such as health food
habit and lifestyle. The impact of culture factors in the future research could help to have deeper
insight that support the success of mobile food order apps.

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