Profile of Food Truck Consumers and their intent to visit Food Trucks

 

Ajay Jamnani¹*, Jyoti Jamnani²

¹KLS Institute of Management Education and Research, Belagavi - 590011, Karnataka, India.

²KLS Gogte Insitute of Technology, Department of Management, Belagavi - 590008, Karnataka, India.

 

ABSTRACT:

The purpose of this paper is to develop the content and analyze the factors that impact the intent to purchase of customers from a food truck. The study was carried out in Belagavi, Karnataka, India, the study was carried out using a structured questionnaire to collect the data, the data was checked for normality and reliability, further one sample t test was applied to check the impact of selected factors on purchase intent of customers from food trucks. Demographic analysis of the respondents was also a part of the study. The impact of selected factors/variables on customer intent to purchase from food trucks was analyzed and it was observed that prize, taste, hygiene, Variety, service quality and exteriors had significant impact on the customer’s intent to purchase as the p-value = 0.000 (is < 0.05). The factors or variables were not borrowed from a single proven model in the literature, the factors were selected on the basic understanding of the researchers. The study was the first to analyze the impact of the factors impacting the customer intent to purchase from food truck in a non-metro city, and the results can be used by professionals working in the area.

 

 

 

INTRODUCTION:

A food truck is a large vehicle equipped to cook and sell food. The term “food truck” refers to a food vendor operating from a mobile vehicle (Hernández-López, 2011). Some, including ice cream trucks, sell frozen or prepackaged food; others have on-board kitchens and prepare food from scratch. Sandwiches, hamburgers, French fries, and other regional fast-food fare are common. The food truck is currently known by many names, including a gourmet food truck, catering truck, mobile food vendor, and rolling or roving restaurant (Linnekin, Dermer, and Geller, 2011).

 

“In recent years, associated with the pop-up restaurant phenomenon, food trucks offering gourmet cuisine and a variety of specialties and ethnic menus have become particularly popular. Food trucks, along with portable food booths and food carts, are on the front line of the street food industry that serves an estimated 2.5 billion people every day. The industry is expected to continue to grow, not only because consumers increasingly favor a unique experience and new cuisine at affordable prices, but also because an entrepreneur does not have to be financially equipped with an initial investment to start a mobile-food business” (Borham Yoon and Yeasun Chung, 2017). Food trucks are known for its mobility unlike any other restaurants they have advantage of moving to the places where its customers are. The mobility helps them to easily relocate from an area if they face any issues related to parking, as they are held back many times due to parking laws by municipal offices. Understanding and predicting consumers’ behavior is a main issue for the hospitality industry (Lee, Song, Bendle, Kim, and Han, 2012). Food trucks operate at high efficiency as they have limited resources like space constraints. They are innovative in their food ideas as they have to attract the customers based on the taste and look of the dishes.

 

LITERATURE REVIEW:

Borham Yoon and Yeasun Chung (2017) the author focuses on growth of food trucks and the Millennials’ getting attracting towards new things and tastes. The study puts light on risk and benefits of food trucks and Millennials’ attitude towards it. The study uses exploratory factor analysis and regression analysis to find that factors that negatively impact are hygienic and environmental risk, while hedonic benefits leads to favorable attitude. Yeon Ho Shin, Haemi Kim and Kimberly Severt (2017) The study focuses on factors that influence the customer’s decision to visit food trucks with special focus on psychological variables. The authors use Structural equation modeling to find the relationships between various constructs.

 

Haemi Kim, 25 Sep (2017), The food truck industry has become a national phenomenon in the United States by gaining attention and praise. However, there has been limited attention on how and why consumers decide to patronize food trucks. The purpose of the study is to investigate determinants of consumers’ intention to patronize food trucks by applying the model of goal-directed behavior. Structural equation modeling was employed to assess the relationships among constructs in the proposed research model. This study contributes significant theoretical and practical implications by first attempting to examine what specific psychological variables influence the decision-making process regarding consumers’ intention to visit food trucks. Beansie's Bus. (Olsen, Oct 2017) This critical incident discusses the challenges Jay LaShombe, owner of Beansie's Bus, faced trying to attract new, younger customers to his Burlington, Vermont food truck. Beansie's Bus had been located seasonally in Burlington's Battery Park since 1944. As the owner and only full-time employee, LaShombe ordered supplies, prepared food, greeted customers, took orders, hired parttime staff, cleaned and stocked the bus, and was responsible for complying with state laws and health department food service regulations. LaShombe, a part-time MBA student, was aware of the increased popularity of food trucks and hoped to capitalize on the trend. Nina

 

Martin (2014) the paper focuses on the issues faced by immigrant street vendors in Chicago due to restrictive city ordinance. It focuses on the biasness done by the government towards the creativity of food truck vendors as compared to the creativity of street vendors.  (Scott Wallsten, 2014)  While the use of social media by firms is nearly ubiquitous, there has been little analysis of its effectiveness in helping small businesses succeed in a highly competitive market. To begin studying this question, author created an extensive dataset on over 250 mobile food trucks—a dynamic, somewhat homogenous, and low-entry cost business that is highly dependent on social media for its business model—which operated in the Washington, DC metro area from 2009 to 2013. We explore how their use of social media and Internet services like Twitter, Facebook, and business webpages affect their ability to stay in business.  (Elliot Anenberg, April 10, 2014) Author studies the economic causes and consequences of the recent explosion in gourmet food trucks. They argue that 1) new mobile communication technology enabled food truck growth by relaxing an information friction complicating their business model and 2) that an important advantage of food trucks over brick-and-mortar restaurants is that trucks can use mobility to capitalize on consumers’ taste-for-variety.  (Sonenshein, Dec 2017) Using an inductive study of 41 gourmet food trucks, Author develops theory about how firms form a strategic group identity that shapes both competitive and cooperative behaviours among its members. Based on an analysis of group prototypes, author finds that members cooperate to help each other meet the central tendencies of the group—the properties that typical group members have—and yet compete to strive for the ideal tendencies of the group—the attributes of members held in highest regard. These competitive and cooperative dynamics lead to three surprising consequences in light of previous research on strategic groups: (1) existing members of the strategic group help new firms enter the market; (2) resource scarcity leads to cooperation, not competition; and (3) when competition does emerge, it focuses on status within the group and not on price.

 

Hawk (2013) Gourmet food trucks have emerged as increasingly popular dining alternatives for consumers in today’s urban landscape. Existing literature, as well as the authors’ ethnographic research within Orlando, Florida’s mobile food vending scene, reveals that food truck owner/operators utilize various strategies to establish a viable niche for themselves in this diversified and burgeoning market. Among other things, these strategies include online social networking, creating and maintaining a recognizable brand identity, collaborating with local retailers and bar owners, and incorporating organic and locally produced ingredients in their dishes whenever possible.

 

OBJECTIVES OF STUDY:

·       To evaluate the factors that attract customers towards food truck in Belagavi, India

·       To study the profile of food truck consumers

·       To study reasons for preference of street food on food truck.

·       To identify type of fast food preferred on food truck.

 

RESEARCH DESIGN AND METHODOLOGY:

This study was conducted with aim to study reasons for preference of street food on food truck. This study used a descriptive research design and conducted surveys as the samples were obtained from the population at a specific point of time. Frequency of past behavior was measured using a five-point Likert scale. Information gathered was discussed with the local food cart owners which can be used to identify type of fast food preferred on food truck. Normality and reliability test were done on the data before analyzing the data and interpreting the results.

 

Sampling Method:

 

ANALYSIS OF DATA AND INTERPRETATION:

Testing of hypothesis:

Analyzing the consumers buying behavior has been an area of interest in many researches. The authors have made an attempt to study the factors that lead to visiting a food truck and the impact of it on purchasing from food trucks. Based on the literature the following hypothesis are proposed

 

H0 There is no significant impact of prize on customer intent to purchase from food trucks 

H1 There is significant impact of Prize on customer intent to purchase from food trucks

 

H0 There is no significant impact of hygiene on customer intent to purchase from food trucks 

H1 There is significant impact of hygiene on customer intent to purchase from food trucks 

 

H0 There is no significant impact of taste on customer intent to purchase from food trucks 

H1 There is significant impact of taste on customer intent to purchase from food trucks 

 

H0 There is no significant impact of service quality on customer intent to purchase from food trucks 

H1 There is significant impact of service quality on customer intent to purchase from food trucks 

 

H0 There is no significant impact of attractive exteriors on customer intent to purchase from food trucks 

H1 There is significant impact of attractive exteriors on customer intent to purchase from food trucks 

 

H0 There is no significant impact of variety on customer intent to purchase from food trucks 

H1 There is significant impact of variety on customer intent to purchase from food trucks 

 

Table I:  One-Sample Statistics

 

From Table II, test results show that the t-value =30.638 (is > 1.96 for 2-tailed at 5% level of significance) and p-value = 0.000 (is < 0.05), we can conclude that we fail to accept the null hypothesis and support alternate hypothesis. It can be inferred that Price has an influence on intent to purchase from food trucks and was found to be statistically significant (p<0.05).

 

From Table II, test results show that the t-value = 28.143 (is > 1.96 for 2-tailed at 5% level of significance) and p-value = 0.000 (is < 0.05), we can conclude that we fail to accept the null hypothesis and support alternate hypothesis. It can be inferred that hygiene has an influence on intent to purchase from food trucks and was found to be statistically significant (p<0.05).

 

From Table II, test results show that the t-value = 24.291 (is > 1.96 for 2-tailed at 5% level of significance) and p-value = 0.000 (is < 0.05), we can conclude that we fail to accept the null hypothesis and support alternate hypothesis. It can be inferred that taste has an influence on intent to purchase from food trucks and was found to be statistically significant (p<0.05).

 

From Table II, test results show that the t-value = 26.857 (is > 1.96 for 2-tailed at 5% level of significance) and p-value = 0.000 (is < 0.05), we can conclude that we fail to accept the null hypothesis and support alternate hypothesis. It can be inferred that Service Quality has an influence on intent to purchase from food trucks and was found to be statistically significant (p<0.05).

 

Table II: One-Sample Test

 

From Table II, test results show that the t-value = 29.803 (is > 1.96 for 2-tailed at 5% level of significance) and p-value = 0.000 (is < 0.05), we can conclude that we fail to accept the null hypothesis and support alternate hypothesis. It can be inferred that Attractive exteriors has an influence on intent to purchase from food trucks and was found to be statistically significant (p<0.05).

 

From Table II, test results show that the t-value = 28.778 (is > 1.96 for 2-tailed at 5% level of significance) and p-value = 0.000 (is < 0.05), we can conclude that we fail to accept the null hypothesis and support alternate hypothesis. It can be inferred that Variety has an influence on intent to purchase from food trucks and was found to be statistically significant (p<0.05).

 

DEMOGRAPHIC PROFILE AND PREFERENCES TOWARDS FOOD TRUCK OF THE STUDY RESPONDENTS

Table III: Demographic Profile and preferences towards food truck of the Study Respondents

 

a.     Gender of the Respondents:

The final study sample had 46% female respondents and 54% male respondents.

b.    Age distribution of the Respondents:

Further, the age distribution of the respondents indicate that 54% of the respondents are aged between 16 to 25 years, 24% of the respondents are aged between 25 to 35 years, 16% of the respondents are aged between 35 to 45 years and 6% of the respondents are aged45 years or more.

c.     Distribution of Respondents based on their occupation:

The distribution of the respondents based on their occupation shows that 14% of the respondents are running their own business, 36% of the respondents are employed as service or professional, 6% of the respondents are homemakers, and 44% of the respondents are students.

d.    Average expenditure of the Respondents:

The final study sample had 20% of the respondents who spend between Rs50- Rs.100, 50% of the respondents spend Rs.100 to Rs.200, 28% respondents spend Rs. 200 to Rs.300and 2% respondents spend above Rs. 300.

e.     Frequency of visit to food trucks of the Respondents:

Further, the frequency of visit to food truck of the respondents indicate that 14% of the respondents visit food trucks 2 to 3 times in a week, 48% of the respondents visit food trucks once in a week, 10% of the respondents visit food trucks once in fortnight and 28% of the respondents visit food trucks ocassionally.

f.      Preference of customers for food packaging:

The preference of the respondents based on food packaging shows that 22% of the respondents prefer their food to be packed in paper plates, 40% of the respondents prefer their food to be wrapped up in a paper/foil, 2% of the respondents prefer their food to be packed in paper bags, and 36% of the respondents prefer their food to be packed in take away boxes.

g.     Foods mostly likely  purchased by the respondents from the food carts:

The Foods mostly likely purchased by the respondents from the food carts shows that 11.85% of the respondents prefer Pizza, 13.33% of the respondents Sandwiches, 12.59% of the respondents prefer Burgers, 16.30% of the respondents prefer Frankie, 18.52% of customers prefer chats, 14.81% prefer Chinese food, 2.96% prefer south Indian food and 9.64% of the respondents prefer side orders.

h.    Preference of the Respondents over time to visit the food truck:

Further, the time preference of visit to food truck of the respondents indicate that 6% of the respondents prefer to visit food trucks in the morning from 7:00am - 11:00am, 44% of the respondents prefer to visit food trucks in the Evening 4:00pm - 6:00pm, 50% of the respondents prefer to visit food trucks in the Night 7:00pm - 11:00pm.

i.      Preference of customers for most frequent purchase during the week:

The preference of the respondents based on most frequent purchase during the week shows that 32% of the respondents prefer to visit during the week days and 68% of the respondents to visit during weekends.

j.      Preference of customers for social media sites used to locate the food truck:

The preference of the respondents based on social media sites used to locate the food truck shows that 36% of the respondents opine that they could locate food trucks through Facebook, 30% of the respondents opine that they could locate food trucks through Instagram, 12% of the respondents opine that they could locate food trucks through Snapchat, 18% of the respondents opine that they could locate food trucks through All about Belgaum and 4% of the respondents opine that they could locate food trucks  through Twitter.

 

Inspection of the two group means indicates that the average shoppers who prefer price for female respondents (Mean = 3.26) is marginally lower than the score (Mean = 3.30) for males. Hence we can conclude that males were not significantly different from females on purchasing intent considering price as a factor (p = 0.871).

 

Similarly, average shoppers who prefer hygiene for male respondents (Mean = 3.22) is marginally lower than the score (Mean = 3.65) for females. Hence we can conclude that males were not significantly different from females on purchasing intent considering Hygiene as a factor (p = 0.078).

 

Similarly, average shoppers who prefer Taste for male respondents (Mean = 3.33) is marginally lower than the score (Mean = 3.48) for females. Hence we can conclude that males were not significantly different from females on purchasing intent considering Taste as a factor (p = 0.611).

 

Similarly, average shoppers who prefer Service Quality for female respondents (Mean = 3.61) is marginally lower than the score (Mean = 3.78) for males. Hence we can conclude that females were not significantly different from males on purchasing intent considering Service Quality as a factor (p = 0.564).

 

Table IV: Gender vs. factors having impact on intent to purchase from food trucks

Variable	Group Statistics			Levene’s Test for Equality of Variance		t-test for Equality of Means
	Gender	Mean	Std. Deviation	F	Sig.	t	df	p
Price	Female	3.26	0.689	0.314	0.578	-0.163	48	0.871
	Male	3.30	0.823
Hygiene	Female	3.65	0.647	3.257	0.077	1.803	48	0.078
	Male	3.22	0.974
Taste	Female	3.48	0.947	0.454	0.504	0.512	48	0.611
	Male	3.33	1.038
Service Quality	Female	3.61		0.040	0.843	-0.608	48	0.546
	Male	3.78	1.013
Attractive Exteriors	Female	3.83	1.072	1.481	0.230	-0.792	48	0.432
	Male	4.04
Variety	Female	3.48		0.432	0.514	-1.618	48	0.112
	Male	3.89

Similarly, average shoppers who prefer Attractive Exteriors for female respondents (Mean = 3.83) is marginally lower than the score (Mean = 4.04) for males. Hence we can conclude that females were not significantly different from males on purchasing intent considering Attractive Exteriors as a factor (p = 0.432).

 

Similarly, average shoppers who prefer Variety for female respondents (Mean = 3.48) is marginally lower than the score (Mean = 3.89) for males. Hence we can conclude that females were not significantly different from males on purchasing intent considering Variety as a factor (p = 0.112).

 

Age vs. factors having impact on intent to purchase from food trucks:

Ho: there is no significant difference among the different age groups of the respondents across all the food truck consumers’ for selected factors/variables

H1: there is significant difference among the different age groups of the respondents across all the food truck consumers’ for selected factors/variables.

 

From table V the test is statistically insignificant as the Significance value > 0.5 and hence null hypothesis is accepted for Price, Hygiene, Taste, Service Quality and Variety. It is observed that the significance value < 0.5 in case of Attractive exteriors and hence the Alternate hypothesis is accepted.

 

Table V: ANOVA

 

Table VI: Multiple Comparisons Age vs. factors having impact on intent to purchase from food trucks

*. The mean difference is significant at the 0.05 level.

 

Tukey HSD test results indicate that there is a no significant difference among the different age groups of the respondents across all the respondents for Price, Hygiene, taste, Service Quality, Attractive exteriors and Variety respectively. It can be inferred that irrespective of the age categories, people do visit food trucks if all the factors are satisfied.

 

Occupation vs. factors having impact on intent to purchase from food trucks:

Ho: there is no significant difference among the different occupation groups of the respondents across all the food truck consumers’ for selected factors/variables

 

 

H1: there is significant difference among the different occupation groups of the respondents across all the food truck consumers’ for selected factors/variables

 

From table VII the test is statistically insignificant as the Significance value > 0.5 and hence null hypothesis is accepted.

 

Tukey HSD test results indicate that there is a no significant difference among the different occupation groups of the respondents across all the respondents for Price, Hygiene, taste, Service Quality, Attractive exteriors and Variety respectively. It can be inferred that irrespective of the occupation categories, people do visit food trucks if all the factors are satisfied.

 

Table VII: ANOVA

 

Table VIII: Multiple Comparisons Occupation vs factors having impact on intent to purchase from food trucks

 

DISCUSSIONS AND CONCLUSION:

The present study focused on selecting variables that impact the consumer intent to purchase from the food trucks, the variables were derived based on the literature review and researchers understanding. The research findings can be used to understand the customer requirements from the food trucks and can also help researchers in conducting similar study. The demographic analysis of the respondents shows that factors like age and occupation have no impact on the customer expectations and choices when it comes to street food. The analysis of the variables impacting customer decision show that each factor has a significant impact on the intent to purchase as the p value was equal to 0.000 for all the variables. It was also observed that the customers are willing to visit the food trucks during the weekends and preferably in the evening and they spend an average of Rs. 200 to Rs.300 on their visit

 

REFERENCE:

1.      Anenberg, E. and Kung, E., 2014. What's Behind the Food Truck Phenomenon. Information Frictions and Taste-for-Variety. Washington, Board of Governors of the Federal Reserve System.

2.      De Lima, D., Medeiros, C., Dardin, F. and Stangarlin‐Fiori, L., 2019. Implementation of good hygiene practices in food trucks with and without the intervention of a food safety expert. Journal of Food Safety, 39(3), p.e12637.

3.      Dolberth Dardin, F., Stangarlin-Fiori, L., Olmedo, P., Serafim, A. and Opolski Medeiros, C., 2019. Elaboration and validation of a checklist for the evaluation of good hygiene practices in food trucks. British Food Journal, ahead-of-print(ahead-of-print).

4.      Hawk, Z., 2013. Gourmet Food Trucks: An Ethnographic Examination of Orlando's Food Truck Scene.

5.      Hernández-López, E. (2011). LA’s taco truck war: How law cooks food culture contests. The University of Miami Inter-American Law Review, 43(1), 233–268.

6.      Linnekin, B. J., Dermer, J., and Geller, M. (2011). New food truck advocacy: social media, mobile food vending associations, truck lots, and litigation in California and Beyond. The. NEXUS: Chapman’s Journal of Law and Policy, 17, 35–58

7.      Lee, C. K., Song, H. J., Bendle, L. J., Kim, M. J., and Han, H. (2012). The impact of non-pharmaceutical interventions for 2009 H1N1 influenza on travel intentions: A model of goal-directed behavior. Tourism Management, 33((1)), 89–99. doi:10.1016/j.tourman.2011.02.006

8.      Martin, N., 2014. Food fight! Immigrant Street Vendors, Gourmet Food Trucks and the Differential Valuation of Creative Producers in Chicago. International Journal of Urban and Regional Research, 38(5), pp.1867-1883.

9.      Olsen, P.E. and Mitchell, C.H., 2017. Beansie's or Bust: The Challenges of Managing a Food Truck Business. Journal of Critical Incidents, 10.

10.   Sonenshein, S., Nault, K. and Obodaru, O., 2017. Competition of a different flavor: How a strategic group identity shapes competition and cooperation. Administrative Science Quarterly, 62(4), pp.626-656.

11.   Shin, Y., Kim, H. and Severt, K., 2017. Antecedents of consumers’ intention to visit food trucks. Journal of Foodservice Business Research, 21(3), pp.239-256.

12.   Valente, G., Stangarlin-Fiori, L., Seiscentos, L., de Souza, V. and Opolski Medeiros, C., 2019. Profile of food truck consumers and their opinion about food safety. Nutrition and Food Science, 50(3), pp.481-495.

13.   Wallsten, S.J. and Rhyan, C., 2014. Social media and entrepreneurship: The case of food trucks. Technology Policy Institute: Selected Works, pp.1-12.

14.   Wessel, G., 2012. From Place to Non-Place: A Case Study of Social Media and Contemporary Food Trucks. Journal of Urban Design, 17(4), pp.511-531.

15.   Yoon, B. and Chung, Y., 2017. Consumer Attitude and Visit Intention toward Food-Trucks: Targeting Millennials. Journal of Foodservice Business Research, 21(2), pp.187-199.

 

 

Accepted on 15.02.2021           ©AandV Publications All right reserved