DETERMINANT FACTORS IN INFLUENCING CUSTOMER INTENTION TO USE FOOD DELIVERY APPLICATION IN PALEMBANG CITY, INDONESIA

People are finding it easier to conduct online transactions as technology advances. One of them is using an online application to order food. Online food delivery service applications are becoming more prevalent in Indonesia cities, including Palembang, the site of this research. At the moment, consumers in Indonesia have numerous option for online food delivery services. For example there are Gofood, Grabfood, and Shopeefood. As for methodology, primary data was collected from a sample of 350 OFD users in Palembang using survey instruments. The collected data were analyzed using SPSS. The aim of this paper is to propose a conceptual model regarding consumer intention to use OFD application and its determinants factor. The hypotheses are developed based on the previous studies and finally a conceptual model of the study is proposed. Independent variables in this analysis are perceived usefulness, social interaction, and condition. All independent variables significantly have relationship with customer’s intention to use online food delivery application in Palembang city. The regression analysis reveals that R2 value of all dependant variables in influencing customers’ intention to use online food delivery application is 32% (R2 = 0,321). Therefore, this paper expects to achieving a better understanding to explore determinants factors in influencing customers intention to use food delivery application in Palembang based on the factors described above. This topic of studies is expected to help socially and economically potential for food delivery application developer to develop their application to be better in the future.