Relationship between perceived benefits and risks, and customer satisfaction and loyalty among food delivery application users in China

The advent of online-to-offline (O2O) mobile applications has revolutionized the online food delivery industry in China. This scenario has made food delivery apps (FDAs) a popular choice for catering businesses and customers. However, increasing competition among business in the market has led to declining customer loyalty. Underpinned by Valence Theory and Stimulus￾Organism-Response (SOR) model, this study intends to identify the antecedents of positive valence (i.e. perceived benefit) and negative valence (i.e. perceived risk) and how they interplay as stimuli to affect customer satisfaction (i.e. organism) and customer loyalty (i.e. response) in the FDA context. Utilizing purposive sampling technique, data were collected from Chinese FDA users through an online survey platform and distributed via mainstream Chinese social networking sites (i.e. WeChat and QQ). A total of 399 respondents were received, but only 360 valid responses were considered for Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis to test the hypotheses. Six notable findings were: 1) three online (i.e. various food choices, online ratings, and visual appeal) and one offline motivational factor (i.e. convenience) were positively related to the perceived benefits; 2) two online (i.e. advertisement overload risk, and customer service risk) and two offline risk factors (i.e. food quality risk, and delivery riders service quality risk) were positively related to the perceived risks; 3) perceived benefits positively influenced customer satisfaction while perceived risks negatively influenced customer satisfaction; 4) customer satisfaction positively influenced customer loyalty; 5) customer satisfaction significantly mediated the influences of both perceived benefits and perceived risks on customer loyalty; and 6) none of the moderating relationships were significant. This research contributes to theoretical knowledge in three dimensions. First, it broadens the application of the Valence Theory to the FDA context by integrating both positive and negative valences into the model. Second, the empirical findings enhance the relevance of the SOR model in the FDA context by investigating satisfaction as a mediator. Lastly, it enriches the existing FDA literature by encompassing both online and offline antecedents. Furthermore, this research offers valuable insights to industry professionals in three key ways. First, it advises managers of FDA companies to concentrate on optimizing O2O motivational factors and mitigating risk factors. This approach aims to enhance customer satisfaction by maximizing perceived benefits and minimizing perceived risks, thereby promoting customer loyalty. Second, it emphasizes to catering business managers the significance of providing comprehensive food information and high-quality food images, and addressing safety and hygiene concerns during food preparation for sustainable satisfaction. Lastly, it urges policymakers to take initiative in regulating the FDA ecosystem. This involves clarifying the responsibilities and rights of all stakeholders in the online food delivery industry to reduce risk perceptions and create a more secure food environment.

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