Business-Experimentation

Consumers' Willingness to Pay for Different Delivery Time Intervals

Team project for Business Experimentation and Causal Methods (BA830)

Data Source

• Questionnaires

Project Objectives

• We assumed that the more precise the delivery time interval is, the more willingly a customer will place an order. By analyzing the extent of food delivery time interval affecting consumer’s willingness to place an order, we would like to provide evidence to help the delivery platforms gain more profits and consumers have a better user experience.

Language/Methods

• Language: R
• Questionnaire Design
• A/B Testing
• Exploratory Data Analysis
• Causal Analysis (Regression Analysis)

Project Summary

• We considered participants' demographic information and provided different food categories options to reduce the bias in the analysis.
• According to the regression analysis, we found that demographic and consumers' preference of food categories influence their willingness-to-pay. For example,
  • People who order from a fast-food restaurant or a pizzeria are more time-sensitive.
  • People who favor ordering Chinese cuisine are slightly more in favor of short delivery time interval estimates.
  • Consumers who had high previous order frequency tended to pay more attention to food delivery time intervals.

By Chenzhi Pan, Muyan Xie, Tzuhua Huang, Yangyang Zhou, Yichi Zhang, Yulong Gong