The study aims to understand consumers who stop using the delivery app service, and totest the moderating effect of the degree of environmental, social, and governance (ESG) effort in identifying the influencing factors of consumer churn, and to sugge...
The study aims to understand consumers who stop using the delivery app service, and totest the moderating effect of the degree of environmental, social, and governance (ESG) effort in identifying the influencing factors of consumer churn, and to suggest the plans which prevent consumer churn in terms of increasing consumer rights and interests. Data from the 「2022 Delivery App User Satisfaction and Usage Survey」 conducted by the Korea Consumer Agency were used. According to an analysis of 667 respondents who evaluated delivery fees as expensive while using delivery apps within the last year, 58.5% of them discontinued their use. These respondents negatively evaluated all service attributes of the delivery apps, namely delivery fees-price adequacy, selection conditions-information sufficiency, selection conditions-information accuracy, delivery and food quality, cancellation-refund, additional benefits, and user interface. Respondents who left the market ordered less frequently than those who remained in it. There were also no statistically significant differences by order cost, age, and gender. Delivery fees-price adequacy, order frequency, and degree of ESG effort negatively affected consumer churn. The interaction term of order frequency and degree of ESG effort, and that of cancellation-refund and degree of ESG effort positively influenced consumer churn, indicating an interference moderating effects. In short, the greater the ESG effort, the less significantly negative the effect of order frequency and cancellation-refund on consumer churn. Indeed, when the degree of ESG effort was 3 points or more, the effect of order frequency and cancellation-refund was not statistically significant. However, their negative effect was statistically significant when the degree of ESG effort was fewer than 3 points. This study suggests an effective, consumer-oriented consumer churn prevention plan by analyzing the causes of delivery app consumer churn and the effect of ESG management activities.