The Web as an E-Commerce Medium

Abstract

National pizza franchisors can increase overall sales by simply increasing the number of customers who prefer to order online on the Internet. Typically, a customer ordering online spends approximately 15% more per ticket online than ordering via phone to a store or call center. Yet, many franchisors have reached the conclusion that relatively few consumers have the willingness to use the Internet as a mechanism for ordering. This article reports the findings of an exploratory study that was conducted (1) to compare differences in consumer perceptions between those who choose the online ordering option and those who do not and (2) to investigate the relative importance of the consumer attributes in terms of predicting online ordering behavior. The results clearly show customers who have previously ordered pizza via the online method prefer e-commerce over more conventional telephone ordering. The challenge then is to persuade consumers that there is an advantage to using e-commerce over the traditional telephone ordering system. Respondents in this study report that the primary perceived benefits are time utility and accuracy of order. Thus, franchisors need to develop communications that inform and persuade consumers that e-commerce ordering may deliver greater overall customer satisfaction.

Key Words:

• Internet shopping
• franchising
• restaurant channels