Consumer spending patterns in digital food commerce
Suman Thapa, Priya Rathi and Rajesh Poudel
This study examines consumer spending patterns in digital food commerce, focusing on three primary channels: e-grocery, online food delivery (OFD), and quick commerce (q-commerce). Utilizing data from 1, 000 households in tier-1 and tier-2 cities in India, the research investigates how delivery speed, promotional discounts, platform trust, and other factors influence consumer behavior. Descriptive statistics, regression models, and structural equation modeling (SEM) were applied to analyze the relationship between these factors and spending intensity. The results indicate that promotional discounts, platform trust, and delivery time significantly impact consumer spending. Notably, consumers were found to spend more on platforms offering faster delivery, particularly in tier-1 cities, with a notable increase in order values post the introduction of same-day delivery services. The regression analysis reveals that promotional discounts and trust in the platform have the strongest positive effects on spending intensity, while higher delivery fees negatively influence spending. Additionally, SEM analysis demonstrated that trust mediates the relationship between perceived usefulness and spending intensity. The study suggests that e-grocery, OFD, and q-commerce platforms can enhance consumer engagement and increase spending by offering attractive promotions, optimizing delivery speeds, and building consumer trust through transparent services. The findings also highlight the role of digital payment systems, such as UPI, in reducing transaction friction and boosting consumer spending, especially in tier-2 cities. The implications of this study are valuable for platform operators looking to optimize their pricing strategies, service offerings, and user experience to meet the growing demand for convenience and speed in digital food commerce.