PACIS 2019 Proceedings


This study examines the relative importance of factors affecting restaurant sales volume on O2O food delivery platforms and the asymmetric effects of influencing factors in different levels of sales. Based on the data from 1,117 Chinese restaurants, we study the critical factors influencing sales volume from three aspects of logistics, price and word-of-mouse (WOM). Results show that the number of reviews is the most important factor for sales volume in the food delivery platform business and is positively associated with sales; whereas the delivery fees have a negative impact on sales. Additionally, the results indicate that for high-sales restaurants, WOM is the most important factor, reflected by the number of reviews and ratings. While for low-sales restaurants, all three attributes have a significant impact on sales, and the platform effect is more significant, which is not found in high-sales restaurants. Managerial implications, limitations and recommendations for future research are discussed.