This study investigates how the use of online food delivery (OFD) services can motivate consumers to switch between food providers through its impact on switching costs, variety-seeking tendencies and exposure to competitors' marketing activities.
We develop a structural equation model in which the usage frequency of OFD services is postulated to weaken procedural and relational switching costs and increase variety-seeking tendency and marketing exposure. The model is calibrated using online survey data collected in China and Japan (n = 602).
The results suggest that the frequent use of OFD services weakens procedural and relational switching costs and increases customer exposure to competing firms' marketing activities. Surprisingly, OFD reduces some customers' variety-seeking tendencies.
While many studies have delineated the benefits that food retailers obtain by adopting OFD services, little attention has been paid to how these services can be detrimental to adopting firms. This study provides evidence of how OFD services reduce switching costs and make customers more vulnerable to competitors’ marketing.
