From the signaling theory perspective, the current study explores various drivers of brand transparency and its effect on users' interactions with food delivery apps.
First, a set of precursors of brand transparency of food delivery apps from focus group discussions was identified. Next, an integrated model tests the impact of brand transparency, perceived risk and brand trust on users' ordering frequency. Data collected from 522 users were analyzed using the partial least squares structural equation modeling method.
The outcomes showed the effectiveness of brand communications as the strongest indicator of brand transparency. Moreover, brand transparency favorably influences users' brand trust and ordering intention and negatively influences perceived risk. Hygiene rating attenuates the adverse effects of perceived risk.
The current study is a pioneering attempt that offers ways for online food delivery providers to build brand transparency, lessen users' risk perceptions and foster greater use of apps in the post-pandemic scenario.
