Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
권호 표지
DOI QR코드

DOI QR Code

The Long Tail Effect in the Online Food Ordering and Delivery Industry

음식 주문 배달 산업의 긴꼬리 효과에 관한 실증 연구

  • Yongkil Ahn (Department of Business Administration, Seoul National University of Science and Technology) ;
  • Chul-Sung Lee (Policy Research Team, Woowa Bros.)
  • 안용길 (서울과학기술대학교 경영학과) ;
  • 이철성 ((주)우아한형제들)
  • Received : 2024.02.29
  • Accepted : 2024.03.24
  • Published : 2024.03.31
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose - This study aims to quantify the long tail effect in the digital economy. It also investigates the role of digital platform before and after the COVID-19 pandemic. Design/methodology/approach - We take advantage of a granular data set from one of the biggest digital platforms in Korea. Rather than computing the absolute number of products sold or the Gini coefficient, we estimate the slope of the log-linear relationship of the non-parametric sales distribution. Findings - We find that the use of online food order and delivery services is positively associated with individual restaurant's sales growth. We also document that the long tail effect is increasing over time. Long tail effects are clustered in the cross-section where average revenue per order is high or the restaurant belongs to the top 50% of the sales distribution. Research implications or Originality - The findings may indicate that digital platforms are contributing to the development of the digital economy in Korea. Also, we confirm that digital platforms make it possible for small and sole proprietors to go through the difficulties induced by the COVID-19 pandemic.

Keywords

References

  1. Abidi, N., M. El Herradi and S. Sakha (2022), Digitalization and Resilience: Firm-level Evidence during the COVID-19 Pandemic, International Monetary Fund.
  2. Acs, Z. J., A. K., Song, L., Szerb, D. B., Audretsch and E. Komlosi (2021), "The Evolution of the Global Digital Platform Economy: 1971-2021," Small Business Economics, 57, 1629-1659. https://doi.org/10.1007/s11187-021-00561-x
  3. Anderson, C. (2006), The Long-tail. Hyperrion Audio Books
  4. Atkinson, R. D. and A. S. McKay (2007), Digital Prosperity: Understanding the Economic Benefits of the Information Technology Revolution, Information Technology and Innovation Foundation.
  5. Bartik, A. W., M. Bertrand, Z. B. Cullen, E. L. Glaeser, M. Luca and C. T. Stanton (2000), How are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey, NBER Working Paper 26989.
  6. Brynjolfsson, E. and B. Kahin (2000), Introduction, in Understanding the Digital Economy, Brynjolfsson E. and B. Kahin (eds), MIT Press, Cambridge, MA, 1-10.
  7. Brynjolfsson, E., Y. J. Hu and M. D. Smith (2006), "From Niches to Riches: Anatomy of the Long Tail," Sloan Management Review, 47(4), 67-71.
  8. Brynjolfsson, E., Y. Hu and D. Simester (2011), "Goodbye Pareto Principle, Hello Long Tail: The Effect of Search Costs on The Concentration of Product Sales," Management Science, 57(8), 1373-1386. https://doi.org/10.1287/mnsc.1110.1371
  9. Bukht, R. and R. Heeks (2017), Defining, Conceptualising and Measuring the Digital Economy, Development Informatics Working Paper, 68, Centre for development informatics, Manchester.
  10. European Commission (2013), Expert Group on Taxation of the Digital Economy, Brussels: Author
  11. European Parliament (2015), Challenges for Competition Policy in a Digitalised Economy, Brussels: Author.
  12. Frank, R. and P. Cook(1995), The Winner-Take-All Society, The Free Press, New York.
  13. Goldfarb, A. and C. Tucker (2019), "Digital Economics," Journal of Economic Literature, 57(1), 3-43. https://doi.org/10.1257/jel.20171452
  14. Gordon, R. J. (2000), "Does the "New Economy" Measure up to the Great Inventions of the Past?," Journal of Economic Perspectives, 14(4), 49-74. https://doi.org/10.1257/jep.14.4.49
  15. Hinz, O., J. Eckert and B. Skiera(2011), "Drivers of the Long Tail Phenomenon: An Empirical Analysis," Journal of Management Information Systems, 27(4), 43-70. https://doi.org/10.2753/MIS0742-1222270402
  16. Huirong, J. (2014), "The Study of Dynamic Effect Relationships between the e-commerce, the Logistics and Economic Growth Based on the VAR Model," International Journal of U-and E-Service, Science and Technology, 7(3), 187-196. https://doi.org/10.14257/ijunesst.2014.7.3.16
  17. Jorgenson, D. W. (2001), "Information Technology and the US Economy," American Economic Review, 91(1), 1-32. https://doi.org/10.1257/aer.91.1.1
  18. Jullien, B. (2012), "Two-sided B to B platforms," In M. Peitz and J. Waldfogel (Eds.), The Oxford Handbook of the Digital Economy , Oxford: Oxford University Press, 161-185.
  19. Keeble, M., J. Adams, T. R. Bishop and T. Burgoine (2021), "Socioeconomic Inequalities in Food Outlet access through an Online Food Delivery Service in England: A Cross-sectional Descriptive Analysis," Applied Geography, 133, 102498.
  20. Kim, K. B. and G. Lee (2023), Who Benefits from Food Delivery Platforms? The Heterogeneous Effects of Platforms on Restaurant Sales, 2023 KER International Conference.
  21. Knickrehm, M., B. Berthon and P. Daugherty (2016), Digital Disruption: The Growth Multiplier, Accenture, Dublin.
  22. Kumar, A., M. D. Smith, and R. Telang (2014), "Information Discovery and the Long Tail of Motion Picture Ccontent," MIS Quarterly, 38(4), 1057-1078. https://doi.org/10.25300/MISQ/2014/38.4.06
  23. Lane, N. (1999), "Advancing the Digital Economy into the 21st Century," Information Systems Frontiers, 1(3), 317-320. https://doi.org/10.1023/A:1010010630396
  24. Leontyev, A. I. and N. V. Novikova (2020, May), "Implementation of the National Project "Digital Economy" in Regional Strategies," Advances in Economics, Business and Management Research, 138 1047-1051.
  25. Litan, R. E. and A. M. Rivlin (2001), "Projecting the Economic Impact of the Internet," American Economic Review, 91(2), 313-317. https://doi.org/10.1257/aer.91.2.313
  26. Malecki, E. J. and Moriset, B. (2007), The Digital Economy: Business Organization, Production Processes and Regional Developments, Routledge.
  27. McKenzie, J. (2010), "How do the Atrical Box Office Revenues affect DVD Retail Sales? Australian Empirical Evidence," Journal of Cultural Economics, 34, 159-179. https://doi.org/10.1007/s10824-010-9119-x
  28. Mesenbourg, T. L. (2001), Measuring the Digital Economy, US Bureau of the Census, Suitland, MD.
  29. Nayyar, G. and E. Davies (2023), "Services-Led Growth," In M. A. Kose and F. Ohnsorge (Eds.), Falling Long-Term Growth Trends Expectations and Policies, World Bank, 367-398.

  30. OECD (2013), The Digital Economy, OECD, Paris: Author.
  31. Parker, G. G., M. W. Van Alstyne and S. P. Choudary (2016), Platform Revolution: How Networked Markets are Transforming The Economy and How to Make Them Work for You, WW Norton & Company.
  32. Peltier, S. and F. Moreau (2012), "Internet and the 'Long Tail versus Superstar Effect' Debate: Evidence from the French Book Market," Applied Economics Letters, 19(8), 711-715. https://doi.org/10.1080/13504851.2011.597714
  33. Pigatto, G., J. G. D. C. F. Machado, A. dos Santos Negreti and L. M. Machado (2017), "Have You Chosen Your Request? Of Online Food Delivery Companies in Brazil," British Food Journal, 119(3), 639-657. https://doi.org/10.1108/BFJ-05-2016-0207
  34. Puram, P., A., Gurumurthy, M. Narmetta and R. S. Mor (2022), "Last-mile Challenges in On-Demand Food Delivery during Covid-19: Understanding The Riders' Perspective Using A Grounded Theory Approach," The International Journal of Logistics Management, 33(3), 901-925. https://doi.org/10.1108/IJLM-01-2021-0024
  35. Rosen, S. (1981), "The Economics of Superstars," American Economic Review, 71, 845-58.
  36. Rouse, M. (2016), Digital Economy, Techtarget, Newton, MA.
  37. Talamini, G., W. Li and X. Li (2022), "From Brick-and-mortar to Location-less Restaurant: The Spatial Fixing of On-demand Food Delivery Platformization," Cities, 128,
  38. Verhoef, P. C., P. K. Kannan and J. J. Inman (2015), "From Multi-channel Retailing to Omni-channel Retailing: Introduction to the Special Issue on Multi-channel Retailing," Journal of Retailing, 91(2), 174-181. https://doi.org/10.1016/j.jretai.2015.02.005
  39. Walls, W. D. (2010), "Superstars and Heavy Tails Inrecorded Entertainment: Empirical Analysis of the Market for DVDs," Journal of Cultural Economics, 34, 261-279. https://doi.org/10.1007/s10824-010-9125-z
  40. Wang, Z. and S. Y. He (2021), "Impacts of Food Accessibility and Built Environment on On-demand Food Delivery Usage," Research Part D: Transport and Environment, 100, 103017.
  41. Willis, J. L. (2004), "What Impact Will e-commerce Have on the US Economy?," Economic Review-Federal Reserve Bank of Kansas City, 89, 53-68.
  42. World Bank (2016), Digital Dividends: World Development Report 2016, Washington, DC.: Author.
  43. 김기홍(2006), "e-비즈니스의 경제적 효과측정에 대하여: 일반적 효과, 연구현황, 향후의 과제를 중심으로," e-비즈니스연구, 7(2), 55-75.
  44. 김빛마로(2017), "디지털 경제의 특징과 시사점 : 경쟁 및 조세정책을 중심으로," 월간재정포럼, 265, 6-29.
  45. 농림축산식품부, 한국농촌경제연구원(2023), 외식업체 경영실태조사.
  46. 梅屋 真一郎(2020), 新型コロナウイルスが日本経済と雇用に及ぼす影響, 野村総合研究所.
  47. 심재훈(2020), "디지털 경제 발전이 한국경제에 미치는 영향 분석: 전자상거래 중심으로," 산업경제연구, 33(5), 1591-1605. https://doi.org/10.22558/jieb.2020.10.33.5.1591
  48. 안용길, 김용환, 송명진(2022), "디지털 플랫폼 규제의 경제적 비용 : '온라인 플랫폼 공정화법 (안)' 사례 연구," 벤처창업연구, 17(5), 237-250. https://doi.org/10.16972/APJBVE.17.5.202210.237
  49. 안용길, 이철성(2024), "온라인 주문 음식 상품의 긴꼬리 효과 횡단면 분석," 상품학연구, 42(1), 41-47.
  50. 오정아(2016), "국내.외 유통업체의 옴니채널 전략 활용현황 분석," 한국실내디자인학회 논문집, 25(5), 111-120.
  51. 유희영, 우아영(2023), "외식업체 배달앱 이용과 매출액의 실증적 관계성에 대한 연구-지역 및 상권별 이질성을 중심으로," 부동산학연구, 29(4), 63-77.
  52. 이봉식, 박민재(2021), "AHP 기법을 활용한 외식산업의 발전 전략에 관한 연구: COVID-19 팬더믹 이후의 디지털, 비대면 전환에 대한 인식," 아태비즈니스연구, 12(4), 271-288.
  53. 이상원, 전현배(2022), "배달앱 이용과 음식점업 매출: 대구광역시 코로나 19 효과를 중심으로," 경제학연구, 70(4), 69-91. https://doi.org/10.22841/KJES.2022.70.4.003
  54. 이윤재(2002), "정보통신기술(IT)이 인플레이션을 낮추었는가?: 1990년대 OECD 국가를 중심으로," 경제학연구, 50(1), 93-115.
  55. 이중원, 박철(2022), "온라인 구전이 영화매출에 미치는 영향: 소유미디어와 획득미디어의 조절효과를 중심으로," Information Systems Review, 21(2), 29-50.
  56. 이철성(2023), "음식배달 플랫폼을 통한 사회적 혁신이 음식점 경영 성과에 미치는 영향: 서비스 혁신과 운영 효율성을 중심으로," 유통경영학회지, 26(4), 109-120.
  57. 임창식, 임정빈(2023), "코로나19 이후 배달서비스 도입이 외식업체의 경영성과에 미치는 효과," 농촌경제, 46(3), 111~128. https://doi.org/10.36464/JRD.2023.46.3.005
  58. 전성민(2014), "소셜 커머스 시장의 롱테일 현상에 대한 실증연구," 한국전자거래학회지, 19(1), 119-129. https://doi.org/10.7838/JSEBS.2014.19.1.119
  59. 조준모, 박민수, 조동훈, 문상균, 박세정, 정예성(2020), 키오스크 확산이 외식업 고용에 미치는 영향, 한국노동연구원.
  60. 최성희(2021), "디지털 온라인 영화시장의 수요 집중화 경향," 한국콘텐츠학회논문지, 21(8), 69-78. https://doi.org/10.5392/JKCA.2021.21.08.069