Title – Relationship between Zomato and Nifty50
Author – Zeal Kavi
Introduction –
Zomato is an Indian multinational restaurant aggregator and food delivery company, founded by Deepinder Goyal and Pankaj Chaddah in 2008.[4] Zomato provides information, menus and user-reviews of restaurants as well as food delivery options from partner restaurants in more than 1,000 Indian cities, as of 2022.
Objective – Calculation of Beta of Zomato and its significant
Literature review
1) Decoding the effect of restaurant reviews on customer choice: Insights from Zomato
The modern consumer looks at visiting restaurants as a much broader experience than just consuming food. They are aware and carefully form their decisions based on available information. Therefore, foodservice businesses should also ensure that they are being promoted positively among their peers to continue gaining profits in the long run. This study aims to explore and understand the impact of online reviews and the nature of reviews on consumer’s purchase intention on the platform of Zomato. The research uses a mixed-method approach using Sequential Explanatory Research design. In the quantitative segment, data from 208 participants were collected through a survey. In the qualitative segment, three Focus Group Discussions were conducted to gain a critical understanding of the constructs identified in the proposed framework. The results confirm that online reviews and star ratings available on Zomato significantly impact the willingness to purchase. However, the research established moderators as choice indicators that entail information seeking, risk reduction, seeking approval to visit a restaurant, reassurance to visit a restaurant, and indulging in its services. Together as choice indicators, these variables significantly moderate the perception of the reviews, thus generating purchase augmenting business. The variables are well supported as moderating variables in the findings of the study using a mixed-method approach. This research recognized and authenticated these variables considered in the study as an auxiliary variable that affects consumers’ willingness to pay for particular services, mainly food services.
(Vaishnavi Vajjhala, Munmun Ghosh,Journal of Foodservice Business Research 25 (5), 533-560, 2022)
2) A Study on Customer Satisfaction and Perception towards Food Delivery services of Zomato with reference to Hyderabad City
The evolution and revolution of technology have completely changed the customization of products and services required by the consumers, especially in the e-commerce industry. E-commerce service providers are reaping benefits by offering online technological support to the consumers who cherish to get various services to their doorsteps quickly. Food delivery service through online booking is the latest version of e-commerce. The strength of these services is embedded in the fact that one does not need any kind of technical skills or proficiency of any particular language to avail the services. Having a minimum technical knowledge to place the orders via web browsers or mobile apps will make a good business nowadays. Though the Covid Pandemic has troubled this sector for the last one year, the global online food delivery services market size is expected to grow from $115.07 billion in 2020 to $126.91 billion in 2021 at a compound annual growth rate (CAGR) of 10.3%.(Mckinsey report, 2020). In India, we have major online food delivery channels like Zomato, Swiggy, Foodpanda, Travelkhana, Ubereats and so on. Among all, most of the customers prefer the services of Zomato or Swiggy due to their availability across the country.
(R Raghavenrda Rao,GLS KALP–Journal of Multidisciplinary Studies 1 (3), 29-42, 2021)
DATA COLLECTION – Data was collected from yahoo finance website from 1st April 2022 to 31st march 2023
Data analysis
N= 51
R2 = 0.293537
F= 20.3596
SIGNIFICANCE = 4.0264E-05
ZOMATO Return = -3.96104
Nifty return = -0.00206
T stats for BETA = -4.51216
Conclusion
The above equation shows the relationship between X and Y negative sign means there is an inverse relationship,
Which means if X increases Y decreases and vice versa
R2 is 0.29 which means 29% of Y is explained by X
Similarly, F is 20.3596 which is also more then table value
Reference
1) (Vaishnavi Vajjhala, Munmun Ghosh,Journal of Foodservice Business Research 25 (5), 533-560, 2022)
2) (R Raghavenrda Rao,GLS KALP–Journal of Multidisciplinary Studies 1 (3), 29-42, 2021)