The Effects of User Experience Factors on Satisfaction and Repurchase Intention at Online Food Market

Abstract

Purpose: This study aims to empirically analyze the effects of user experience on satisfaction and repurchase in the online food market and to present implications. Online food markets have rapidly dominated the grocery market since their appearance, and online food purchases by middle and seniors as well as young people are increasing rapidly. Research design, data, and methodology: The survey was conducted on 268 consumers with experience in using online food markets, and the results of the survey were analyzed using SPSS statistical program to verify reliability and feasibility, and using structural equation modelling (SEM) using AMOS. This study positively analyzed the impact of satisfaction and repurchase intent by setting system quality, product quality, brand characteristics, and economics as user experience factors in online food markets. Results: The results showed that among online food market user experience factors, the quality of the product and brand characteristics have a significant impact on satisfaction. This means that consumers decide to purchase food through online food markets by considering high-quality products and brand value together. Conclusions: This study has broadened the horizon of recent research on online food market which has been rapidly increasing in the market triggered by Covid19, providing significant implications.

1.Introduction

The domestic food market is facing a turbulent period with the recent social phenomenon of COVID19, along with changes in consumer lifestyles. In the meantime, the purchase of meat and vegetables has been on the rise as the online food market, which reliedon offline large discount stores or was distributed mainly on bulky bottled water or processed foods, has gradually expanded due to the development of technology. As packaging technology and reduction of delivery time made it possible to maintain freshness, among online food transactions, beverages, agricultural, livestock, and aquatic products increased by 29.9% and 23.8% from the previous year to KRW 802.7 billion and KRW 215 billion, respectively, as of 2018 (Kim & Kim, 2019). The non-face-to-face purchase characteristic, which was one of the reasons for not buying food online, is now emerging as a new desire of consumers to buy food safely away from the risk of COVID19. The online food distribution market is expanding to various types of platforms. Therefore, this study defined the online food market as an online food market that sells fresh and processed foods based on mobile applications, and specified the scope of the study as a platform for day delivery, designated delivery, and early morning delivery by building its own logistics system. Currently, the online food market is centered with Coupang, which has established its own logistics system with Market Curly and SSG.com, which utilizes a low-temperature distribution system, a cold chain. Kim and Kim (2019) conducted a survey of adult consumers on food purchases online, and found that the frequency of food purchases through large online malls such as SSG.com or online open markets such as Market Kurly and Coupang increased compared to the previous year. Through this, it can be predicted that online food markets are becoming more common as a daily food purchase channel. Accordingly, as the domestic distribution industry is simultaneously investing in the fresh food market, competition among industries for preoccupation is also intensifying. However, in the online market including mobile applications, it is difficult for consumers to gain a competitive advantage in an environment, because in which product prices, discount benefits, and information search and comparison are very easy. In order to survive in the online food market, which is inevitably more competitive than the offline market, it is most important to accurately identify the needs of customers and establish a unique brand identity (Mutum et al., 2014). Until now, research on food distribution through online has been mainly focused on delivery food apps, Kim (2020), Lee (2016). Most of the studies on online food markets, not delivery apps, are limited to analyzing factors that influence users purchasing decisions, such as studies on priorities that influence the purchasing decisions of customers who purchase fresh food from open markets. However, in order to secure the position of the online food market in the grocery market, it is necessary to analyze the needs of consumers in detail through research in terms of user experience and to segment the market. Therefore, in this study, by intensively exploring user experience factors that affect satisfaction with online food markets with their own logistics system, it is analyzed the effect of satisfaction on repurchase intentions. It is intended to contribute to the establishment of strategies to improve the customer loyalty of companies.

2. Theoretical Background

2.1. User Experienced (UX)

The user experience factor encompasses all direct and indirect experiences a user can obtain while using products and services. System quality with reference to the influence of the user experience factors of travel apps on the formation of intentions and behaviors of use, and a study suggesting the brand expansion plan of new distribution companies by deriving user experience factors of the online shopping market, Product quality, brand characteristics, and economics were set as online food market user experience factors.

2.1.1. System Quality

System quality refers to a service dimension that is convenient and safe for users to use and has technical stability. Due to the nature of the online food market based on mobile apps, the system quality of the app acts as an important factor in satisfaction and repurchase intention. The effect of system factors such as the ease of use of the application and the convenience of the payment system on satisfaction and repurchase intention has also been proven in a study on delivery apps(Cha & Rha, 2021). Seo, et al. (2009) stated that the accessibility of online shopping malls that can be used at any time positively influences the intention to repurchase. Based on these previous studies, the following hypothesis can be presented.

H1: System quality will have a positive (+) effect on satisfaction at online food market.

2.1.2. Product Quality

Lim (2006) stated that the quality of products at the bakery significantly affects customer satisfaction and intention to revisit, and contributes greatly to enhancing the customer's product purchasing power. Hwang (2013) derives product quality as a factor of satisfaction of customers using online shopping malls for agricultural products. It is premised that the quality of products differs according to the viewer's perspective by a user-centered approach, and this quality concept is in line with the marketing concept of achieving the company's goals through the satisfaction of consumers and acts as an important factor in the business performance of the company. In a study by Gwon et al., (2015), it was found that the safety of agricultural products is involved in satisfaction through food quality, and the higher the satisfaction, the higher the repurchase rate. A study by San Yang (2015) also found that the safety of eco-friendly organic foods influences continued purchasing. The effect of product safety on consumer satisfaction and repurchase intentions has also been verified in other fields such as ready-to-eat food (Ryu & Lee, 2013; Lee, Kwak & Cha, 2020). Based on these previous studies, the following hypothesis can be proposed.

H2: Product quality will have a positive (+) effect on satisfaction at online food market.

2.1.3. Brand Characteristics

When consumers decide to purchase products and services online, the unique characteristics of the brand serve as a criterion for brand selection as well as product quality (Choi & Jun, 2007; Cha & Ryu, 2019). The characteristics of a brand in the market can be a means of differentiation, and accordingly, the user experiences the characteristics of the corresponding brand when purchasing products and services. Therefore, in this study, the research was conducted by defining the elements representing the brand's identity as brand characteristics, such as brand image, PB product sales, and eco-friendly management operation method. According to a study by Lim (2006), the overall image of a bakery brand has a positive effect on customer satisfaction, and in a study by Choi and Jun (2007), the brand image such as reliability, size, and friendliness of restaurant companies has a positive impact on the repurchase intention(Cha & Seo, 2019)b. Through research, Kang and Kim (2004) found that among the individual factors of brand image, eco-friendliness affects customer loyalty created by customer satisfaction, which motivates customers to repurchase. Based on these previous studies, the following hypothesis can be presented.

H3:Brand characteristics will have a positive (+) effect on satisfaction at online food market.

2.1.4. Economics

In an online open market, economics can be defined as a reasonable and low price, and ultimately it means saving money. The price factor has a great influence on attracting consumers and achieving the final shopping purpose, and low prices and regular discount events have a positive impact on the satisfaction level (Cha & Seo, 2019)a, including the consumer's repurchase intention when purchasing instant noodle (Cha & Wang, 2020). Hoon et al. (2013), it can be said that the establishment of a rational price policy is a prerequisite for incentives to consumers, as price has a positive influence on the repurchase intention at the product search stage of online shopping malls. A study by Han, Ham and Moon (2019), which shows that financial benefits defined as economics affect consumers' intention to repurchase O2O dining platform services through trust with suppliers (restaurants), shows that price policies can be used to secure loyal customers. Therefore, the following hypothesis can be presented.

H4: Economics will have a positive (+) effect on satisfaction at online food market

2.2. Satisfaction and Repurchase Intention

Customer satisfaction can be defined as the customer's emotional state (Anderson, Fornell, & Lehmann, 1994) from the overall assessment of the product or service, or the perceived quality and emotional aspects caused by the consumption experience (Ha & Chang, 2010). Customer satisfaction with product or service quality plays an important role in future consumer behavior, namely repeat purchasing decisions (Jin & Lee, 2012), increasing customer loyalty to prevent the departure of existing customers, as well as spreading a favorable oral tradition to create new customers (Cha & Seo, 2018). Therefore, in this study, the following hypothesis is provided to find out how customer satisfaction affects repurchase intention.

H5: Satisfaction will have a positive (+) effect on the repurchase intention at online food market.

2.3. Moderating Effects between Young and Older Groups at Online Food Market

The majority of customers in their 30s or younger (66.4%) who responded to the questionnaire were reported as young people and analyzed the moderation effect between groups by dividing them from customers in the older age group. Van Deursen et al. (2011) confirmed that gender, age, consumption level, etc. affect the level of internet technology to explain the digital gap in the study (Cha, 2020). In the study, Heo and Lee (2010) found that there was a correlation with age and number of years of participation as a factor explaining the life satisfaction of game participants in Michigan seniors. Sahay and Sharma (2010) found in their research that younger people are more sensitive to the brand of the products. Pettigrew, Mizerski, and Donovan (2005) found that older people who visited supermarkets were more concerned about the appropriate placement of products. Therefore, the following hypothesis is suggested under the assumption that there will be differences in online food purchases between the young and the older groups. Figure 1 shows the research model.

Figure 1: Research Model

H6:When the user experience of an online food market affects satisfaction, young groups will be more sensitive to products.

H7:When the user experience of an online food market affects satisfaction, older groups will be more sensitive to products.

3. Research method

3.1. Operational Definition of Variables

This study was conducted in based on the research by Seo, et al.(2009), the system quality was defined as a convenient system, useful system, and easy system. Product quality was defined as eco-friendly, organic, and safety based on the research of Lim (2006), Hwang (2013), Gwon et al. (2015), San Yang (2015), Ryu and Lee (2013). Brand characteristics were defined as reliable, friendly, and unique (Choi &Jun, 2007).It is based on the research of Cha and Ryu (2019). Economics was defined as reasonable, low price, and saving money, based on the research of Cha and Wang (2020), Hoon et al. (2013). Satisfaction was defined as overall satisfaction, system satisfaction, and product satisfaction based on the research of the authors such as Anderson, Fornell, and Lehmann (1994). Repurchase intention was defined as considering purchase again, purchase the same food again, and recommendation intention based on the research of authors such as Cha and Seo (2018).

3.2. Sample and Investigation Procedure

This study aims to investigate the effects of system quality, product quality, brand characteristics, and economics on satisfaction, targeting online food markets that have built and operated their own logistics system, and empirically analyze the effects on satisfaction and repurchase intentions.

To prove the research hypothesis, a survey was conducted on adult consumers over 20 years of age who have experience using online food markets. The questionnaire was prepared to respond to the corresponding brand after selecting an online food market mainly used among Market Curly, Coupang RocketFresh, Homeplus, Hello Nature, E-Mart, SSG, and GS Fresh. The survey was conducted online from November 15, 2020 to November 30, 2020. A total of 303 questionnaires were collected, and a total of 268 questionnaires were used for empirical analysis after excluding 35 unfaithful or incomplete questionnaires. To verify the reliability and validity of the study, exploratory factor analysis and reliability analysis were conducted using SPSS 20. Structural equation modelling (SEM) was set up and a confirmatory factor analysis was performed with AMOS v20.0.0 to verify the hypothesis after intensive validation and discrimination validation.

4. Results

4.1. Demographic Characteristics

Of the 268 survey respondents, 180 (67.2%) females and 88 (32.9%) males showed that the female ratio was about twice as high. As for the job of respondents, students accounted for the highest percentage with 45.5%, and 66.4% of respondents aged 20 to under 30, as the results of previous studies, showed that the age group familiar with using the app was the main users of online food markets. In terms of the number of families living together, 3-4 people, including themselves, were the highest at 57.8%, and 1 and 2 were the second highest at 16.7%. The average monthly income was the highest at 25% of 1 million won or more and less than 2.5 million won. As for the frequency of use, 31% of respondents use it once a month, followed by 27.3% once every 2-3 months and 20.1% once every two weeks.

4.2. Empirical Analysis Results

Table 1 is showing the confirmatory factor analysis results and model suitability verification for the measurement model. Among the mean-variance extraction (AVE) and concept reliability (CR) for latent variables the mean-variance extraction value (AVE) is 0.5 or higher, and the conceptual reliability (CR) value is 0.7 or higher. As a result, it was found that the validity was high. For other latent variables, the criterion proposed by Fornell and Larcker (1981), CR ≥0.6, was satisfied.

Table 1: Results of Confirmatory Factor Analysis

* p< 0.05, ** p< 0.01, *** p< 0.001 ※Χ²=500.251(df =108, p= .000), NFI=0.912, RFI=0.907, IFI=0.933, CFI=0.932, TLI=0.939

In table 2, it shows the correlation between independent variables, it can be confirmed that the value of each correlation coefficient (p²) is smaller than the AVE value. This result can prove the discriminant validity of this study.

Table 2: Discriminant Validity through Correlation Analysis

※Squared value of the correlation coefficient p in parentheses / (p²)

4.3. Hypothesis Test Result

As a result of testing the hypothesis for the research model through Amos 20.0, it was found that the fitness index for the research model was Χ²=500.251 (df=108, p=.000), NFI=0.912, RFI=0.907, IFI=0.933, CFI=0.932, TLI=0.939. Table 3 is showing the results of hypothesis testing from research hypotheses H1 to H5, and these results were adopted and rejected based on the confidence level. As a result of hypothesis verification, among the user experience factors of online food market, system quality and economics did not significantly affect satisfaction, and hypotheses H1 and H4 were rejected. The reject of the hypothesis H1 was assumed to be because the mobile app system quality was leveled upward and each brand did not have discernment in terms of system quality. The dismissal of H₄ seems to reflect the consumption trend in which higher quality than the cheapness of the product acts as a determining factor for purchasing. Among the user experience factors of the online food market, product quality and brand characteristics have a significant effect on satisfaction, and hypotheses H2 and H3 were adopted. Among the four independent variables, the path coefficient of the product's quality item was 0.81, showing the highest value in satisfaction, and through this, it can be seen that purchasing fresh and high-quality products is the most important factor in satisfaction. In addition, it was found that satisfaction had significant effect on repurchase intention, so hypothesis H5 was adopted. This is interpreted as that satisfaction from user experience factors forms the intention of use and leads to repurchase later.

Table 3: Results of Research Hypotheses

* p< 0.05, ** p< 0.01, *** p< 0.001

4.4. Moderating Effect between Young and Older Group

It compares the path coefficients of the young and senior consumer groups when the importance of the selection attributes of grocery affects their satisfaction. The comparison results showed that the effect of brand of the online grocery on satisfaction was more apparent on young group, whereas the effects of product on satisfaction were more apparent older group. The result implies that the effects on satisfaction among young and older consumer groups vary according to attributes of online grocery. Table 4 shows the differences between the young and older consumer groups.

Table 4: Comparison of Young Consumer Group and Older Consumer Group

* p < 0.05, ** p< 0.01, *** p< 0.001

5. Conclusion and Implications

In this study, it was studied the impact of consumer experience factors on satisfaction and repurchase intentions so that online food markets can be competitive in the online food market, reflecting consumers' desire to buy food safely through the time of COVID19. The user experience factors were set as system quality, product quality, brand characteristics, and economics, and this is a factor based on actual consumption experience, so it is meaningful to study consumer psychology more specifically and empirically. Research hypothesis validation shows that among user experience factors, the quality and brand characteristics of the product have a positive effect on satisfaction, and that system quality and economics among user experience factors do not have a positive influence. Satisfaction resulting from user experience factors has been shown to have a positive effect on repurchase intent. These hypothesis tests suggest as follows.

First, the method of determining the quality of products or services during online transactions is somewhat limited compared to offline purchases. Nevertheless, consumers expect products of the same or better quality that they buy offline. Therefore, only companies that satisfy consumers' desire to know through detailed product photos, nutritional markings, and quality certification marks can meet consumer satisfaction. Fast delivery using its own logistics system is already a service built in all online food markets, so to differentiate and gain a competitive edge, consumers will need to provide enough information to recognize the quality of the products.

Second, consumers experience different brands depending on the online food market platform, even if they purchase similar items of food ingredients. Brand experience from eco-friendly policies and brand images related to delivery will affect satisfaction apart from purchased products. Due to the nature of an online food market based on mobile apps, the visual aspect of the brand image can also be a very important factor. Jeon, Kim and Jeong (2016) said that consumers who are accustomed to a variety of apps recognize the visual sophistication and excellence of delivery apps that provide information as important. Therefore, it is necessary to establish a brand identity that can be distinguished from competitors and imprinted on consumers, and actively utilize it in app design and in-house PB products to continuously expose and emphasize the brand image. In addition, promoting eco-friendly policies such as reusable packaging materials and eco-friendly packaging materials to appeal the positive value of the company to consumers can be of great help in enhancing the brand image.

Third, the reason for the rejection of the system quality factor can be found in the fact that the functionality of mobile apps and the contextual usefulness that can be ordered anytime, anywhere have become common. Online food market apps have made changes in the system, such as introducing their own payment system or detailing the categories within the app to make it easier to find the desired product, but it is not expected to have a significant impact on customer satisfaction any more. However, when consumers take the convenience of a mobile app for granted, it can be interpreted to mean that even a small error that occurs when using the app is perceived as a great inconvenience, so companies should constantly pay attention to improving system quality.

Fourth, the hypothesis that economics positively affects satisfaction among user experience factors was rejected, but the hypothesis that product quality had a significant effect on satisfaction was adopted. This shows that consumers place more importance on product quality than money savings when making purchase decisions. Companies must provide mental rewards that are valuable products and products that make me valuable, beyond economic rewards such as coupons, reserves, and discounts. Economic compensation strategies such as temporary discounts can be used as a strategy to induce repurchase by easy accessibility to the product by applying event-like effects to expensive foods. Fifth, in the comparison between the younger and older groups, it was confirmed that the younger class prioritizes the brand and the older class prioritizes the product. Companies need to reinforce products according to their age-specific preference channels according to their selection and concentration strategies in order to more effectively carry out target marketing for their age group. Due to COVID19, not only the younger people but also the older age groups are increasing their purchases through the online market. Therefore, it is time for companies to take a new strategy to secure loyal customers through online food purchases.

Nevertheless, this study has some limitations. First, same-day delivery, designated delivery, and early morning delivery provided by online food markets based on mobile apps are limited to the metropolitan area and some regions, so it is highly likely that the survey participants are limited to the metropolitan area. Therefore, further research is needed to investigate more extensive areas. Second, As there is a large difference in characteristics between sales product groups such as premium food, organic food, and large-capacity food by platform, future online food market-related research needs to be conducted by selecting platforms with common characteristics.