Customer centricity is often mistaken for market orientation. Although there are significant differences, many companies treat the terms as interchangeable. Meanwhile, the market for food delivery apps (FDA), despite being large and appealing in terms of numbers, faces retention challenges and intense competition. In this context, this study aims to contribute to the field by testing a theoretical model that examines the effects of customer centricity on food quality, brand equity and perceptions of price fairness as well as its influence on loyalty.
A survey was conducted with 377 consumers, and the data were analyzed using the R program to test the hypothetical model using partial least squares structural equation modeling.
The results reveal that customer centricity has a significant impact on both brand equity (0.687) and loyalty (0.672), highlighting its crucial role in a firm's overall performance. The results also suggest that customer centricity can enhance perceptions of food quality and price fairness, indicating its ability to align company decisions with consumer needs. Furthermore, these constructs collectively explain 75.9% of loyalty, underscoring the model’s relevance for understanding consumer behavior in the food delivery market.
This study emphasizes that prioritizing customer centricity is crucial for retention. Managers should implement loyalty programs and differentiated offers to meet the needs of customers, thereby improving perceived food quality, brand equity and price fairness, combating churn.
This is the first study to reveal the relevance of customer centricity for online food delivery apps and demonstrates its significant capacity to drive loyalty, particularly in the context of food delivery apps in developing countries.
