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This project had been assigned by Mr. Manqoosh-ur-Rehman lecturer of Business research methods on 6th Jan, 2010. The topic was to analyze the “Consumer Involvement” in fast food industry and we focused on the customers of Fri-chicks, a very well-known and emerging fast food restaurant in Lahore. Although, there is a growing volume of research on consumers especially for fast food restaurants but there are many variables which are still confusing or may be changing according to the customer changing taste and buying or decision pattern. That’s why in this project we considered product attributes, such as Price, Ingredients, Quantity and Hygiene factors. We collected information with the help of questionnaire from the customers who ate fast food, specifically from Fri- Chicks. Then we have analyzed the collected data through SPSS and made a decision by analyzing and interpreting the data.
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We took 7 days for the research work till the analysis and findings of the assigned project i.e. “consumer involvement level of fast food industry”. We also have clarified out time schedule and task management through Gantt chart as well and in the end we have also determined the total and segmented cost of the whole project.
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How many customers are involved in fast food industry?
What factors are influencing the consumer involvement level of fast food industry in Lahore?
2. 3. 4. 5. 6. 7.
Does consumers concern with price of the fast food? Does consumers concern with Quantity of the fast food? Do customers want hygienic products? Is the price they are offering affordable to number of customers? Are customers looking for ingredients in fast food? Does a customer go for fast food daily or they have different routine?
Research objectives & Variables
1. To know: about the demographics of fast food users Variables:
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Age Gender Income level Area
2. To know about how product attributes put affect on fast food industry. Variables:
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Price Quantity Ingredient Hygiene
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3. To know about the importance of price, Quantity, Ingredients and Hygiene factors in the eyes of customer Variables:
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Valuable Significant Appealing Essential Relevant
a) Data and Data Collection
1. Primary Data In order to collect our primary data we have done the following methods: Survey:
2. Secondary Data We are also going to take information from:
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Internet Articles Brochures Magazines
a. Measurement methods The two methods which we will be using for the analysis of our data to get the output are:
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b. Sampling Plan A sampling plan is a detailed outline of which measurements will be taken at what times, on which material, in what manner, and by whom. The criteria of our sampling plan will be as follows: 1. Population People who likes and visit fast food restaurants. 2. Sampling Unit Individuals who take fast food and are being surveyed. 3. Sample Size Our sampling size is 25 4. Sampling Method Our sampling method is convenience sampling
Total time estimated for the project completion will be two weeks. i.e. 14 days. Sr. No. 1 2 3 4 5 6 Activities Primary Data collection Secondary Data Collection Developing Instrument Data Entry in SPSS Analysis, results and Interpretation Compilation of Project Time period 1 Day 1 Days 2 Days 1Days 1 Day 1days
Primary Data Collection
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Secondary Data Collection Developing instrument Data entry in SPSS Analysis Compilation
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Cost schedule Printing Expenses Stationary Expenses Telephonic expenses Refreshment Transportation & fuelling Expenses Total
Amount 50 40 500 1,000 1,500 3,090
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Chapter 2: Introduction to industry
Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with low quality preparation and served to the customer in a packaged form for take-out/take-away. The term "fast food" was recognized in a dictionary by Merriam–Webster in 1951. Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations for example like KFC, McDonald, Pizza Hut, and Burger King and so on. The capital requirements involved in opening up a fast food restaurant are relatively low. Smaller, individually-owned fast food restaurants are becoming much more common throughout the world. Even fast food have become a phenomena in Malaysia even through out the world, this have come up some issue such as globalization, jobs and labor issues and health issue. Fast food has become one of the fastest-growing segments of the hotel and catering industry. This growth has not only been fuelled by consumer demand, but also through the expansion of the supply base. Fast-food menus have been limited in breadth and depth of product mix, as the market has matured. Numbers of chains are able to offer a new experience to their existing customers and possibly appeal to a new customer base. In the United States, product diversity has taken a branded route, with companies supplying complementary products in order to create branded stores. The capital requirements involved in opening up a fast food restaurant are relatively low. Restaurants with much higher sit-in ratios, where customers tend to sit and have their orders brought to them in a seemingly more upscale atmosphere may be known in some areas as fast casual restaurants.
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Chapter 3: Introduction of Fri-Chiks
Fri-Chicks is basically a foreign fast food restaurant and it started its services from Kentish town, London. Now they are working in Lahore from 2003 and they are running their business through six branches in Lahore in the following areas:
1. 2. 3. 4. 5. 6.
Iqbal Town Sabzazar Faisal Town (Akbar Chowk) Johar Town (Near G1 Market) Sadar (Cantt) Fortress Stadium
Fri-chicks is offering take away facility, dine in and home delivery service. They have several deals with the normal price rate. The current deals which they are offering are mainly with the price range from Rs 25 to 1195. The names of the Deals are mentioned below in which sub deals are also available.
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Mazedar deals Special deals Family meal Super family meal
Some of the major product of the fri-chicks are
Chicken finger also known as chicken tenders or chicken strips, this is one of the most common forms of fried chicken, generally pieces of chicken breast (sometimes with rib meat) cut into long strips, breaded or battered dipped, and deep fried.
Chicken nuggets Hot chicken - a pan-fried variant of fried chicken coated with lard and cayenne pepper paste
Popcorn chicken — occasionally known as chicken balls
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Chicken fries chicken nuggets in the shape of French fries Burgers Pizza
The major competitors for Fri-Chicks are:
1. 2. 3. 4.
AFC KFC Mc Donalds Pizza Hut
The time was mid 90's. Fast food companies were booming in Pakistan. Quality fast food in Pakistan was outrageously expensive and on a handful of families could afford to go there. No middle class family could think of taking their children to such big food chains. This was the time when AFC (Al-Najam Fried Chicken) opened its first restaurant at Saman Abad, Main Market in Lahore. AFC’s goal and aim was very simple. To make the quality fast food available to all those people who liked the fast food but couldn't dare to afford. They did so without compromising the highest standards of food industry. AFC, not only use the best raw materials available but they also provide the best of food at a very reasonable and competitive price. All their foods are processed and prepared using of the art machines and equipments. AFC became the fastest growing fast food chain in Pakistan. At present time, AFC has more then twenty branches Nationwide including Mall Road, Railway Station, Allama Iqbal Town, Twonship, Mughal Pura, Defence, Thokar Niaz Baig, G.T Road, Wapda Town. It has also opened in Faisalabad, SGD, Abbotabad, Karachi, Gujranwala, Rawalpindi, Gujrat whereas Sahiwal Branch is ready to start business. At least three more branches including Murree and Multan are in the wings.
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KFC ( Kentucky fried chicken):
KFC has come a long way, perfecting its herbs and spices; they opened their first franchise in Lahore in 1997 in Gulshan-e-Iqbal and wore the market leaders title in fast food industry. Delicious food in a relaxing environment had made KFc everyone’s favorite. Presently KFC is branched out in eighteen major cities of Pakistan (Karachi, Lahore, Gujranwala, Sukkur & Muree) with more than 60 outlets nation-wide. KFC has also contributed a lot in the economic development of Pakistan as well as providing entertainment to its customers in a friendly environment.
Presently KFC has provided to over 1200 Pakistanis, which adds up to 6000 individuals directly dependent in KFC Pakistan.
The Government of Pakistan receives over Rs.10 million per month from KFC Pakistan as direct taxes.
95% of all food and packing material used in KFC Pakistan is procured locally, which sums up to a purchase of over Rs.35 million per month.
Each new outlet developed by KFC Pakistan costs approximately Rs.40 million, which is a huge amount for our construction industry.
McDonald's Corporation is the world's largest chain of fast food restaurants. In 1940, the first McDonald's was built by the McDonald brothers (Dick and Mac). In 1953, it became the standard for the fast food franchises across the country. Later in 1955, the McDonald's Corporation was created which is the ninth most valuable brand in the world in USA. In Pakistan, McDonald started its business in September 1998 at Lahore. The Lakson Group Companies has taken over McDonalds Corporation, USA and a local partner making it a 100% owned and operated Pakistani company. Presently, it is operating in seven major cities with a network of 20 restaurants. The cities in with McDonald is operating are Lahore, Karachi, Islamabad, Sialkot, Rawalpindi, Hyderabad and Faisalabad.
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Pizza hut came into being by two brothers named Frank and Dan Carney who lived in Wichita, Kansas. They wanted to open a pizza parlor which they started of by the name of Pizza Hut in 1959 by borrowing $600 from their mother initially in Topeka, Kansas. After just 10 years they were catering one million customers a week in 310 locations and it was put into New York stock exchange in 1970. Over the years Pizza Hut captured the market world wide and its sales increased gradually globally. They introduced Pizza Hut delivery service in 1986. Their market share was 46.6% in 1996, when they launched their campaign “The Best Pizzas under One Roof” which battered slowly over the years due to tough market competitors.
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Consumer involvement in product choice
Consumer involvement is a source to explain the differences in the degree of both mental and physical effort of a consumer and his decision making. The objective of this article is to examine the relationships between consumer involvement and demographic in a different temporal and cultural context. This article talks about how consumer involvement varies with different product and also with demographics of the people. Involvement comes from split half theory which describes that there are types of involvement, high and low involvement. So, the people who have high involvement they require more information for a decision making purpose. The constructs of consumer involvement like interest and importance create a conflict that is consumer involvement perceived personal relevance or motivational state. Research shows that consumer involvement relates with consumers psycho-social wants and needs. This is also analyzed that the product which has high price, complexity and high perceived risk, consumers are more inclined towards them rather than the products which have low risk and price. Consumer involvement is also linked with demographic of the consumers. Consumers made different purchases in their lives according to their current stages like a married person and unmarried person will purchase different products and they have different involvement level with different products. Research shows that due to differences in age, sex, occupation and family income consumers have different involvement with products Two products were taken which shows high involvement (television) and low involvement (toothpaste) so that consumer’s exact response could be achieved. Cronbach alpha value for high involvement (television) and low involvement (toothpaste) are 0.6993 and .6773 respectively which shows that consumers are much inclined toward high involvement products rather than low involvement products.
Received November 11, 2006; Revised February 13, 2007 1. Fellow (Doctoral) Student, Institute of Rural Management, Anand,
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e-mail : email@example.com, firstname.lastname@example.orgVilakshan, XIMB Journal of Management ; March, 2007
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Hypothesis: Overall Involvement Level of customer in fast food:
Statistics IL N Valid Missing Mean Percentiles 25 50 75 25 0 41.9833 34.0000 41.7500 49.0000
We have calculated Quartiles in order to define the ranges of involvement levels i.e. High Involvement, Medium Involvement and Low Involvement. The values of the quartiles are as follows:
1. 2. 3.
1st Quartile = 34 & Below 34 2nd Quartile = 34-49 3rd Quartile = above 49
We have computed the mean in order to find the involvement level of the overall data and the mean in 41.9833 which falls in the middle quartile range i.e. 34-49 this shows that our mean lies in the 2nd Quartile, but we are not sure that the overall involvement level of the data is in second Quartile. We are not sure about the decision only based on mean so we have done hypothesis testing below in order to be sure about the significance of the whole data.
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OneSample Test Test Value =1 95% t df Sig. (2-tailed) Mean Difference Confidence Interval of the Difference Lower IL 19.319 24 .000 40.98333 36.6050 Upper 45.3617
We have done hypothesis of Involvement Level only here, One sample T-test is performed in order to reject or do not reject the null hypothesis. Here we will reject Ho because our p value is less than alpha (0.05) and our involvement level is highly significant.
Significance T-test of Gender and IL:
OneSample Test Gender Test Value = 1 95% t df Sig. (2-tailed) Mean Difference Confidence Interval of the Difference Lower Upper
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In order to find that either male are significant or females are significant in the fast food industry we have done one sample t-test on both the genders along with the involvement level, the results we obtained are displayed in the table and interpreted as follows. We have found that both male and female are significant here and we reject Ho because our P-value is less then Alpha (0.05).
One-Sample Test Household Income Test Value = 1 95% t df Sig. (2-tailed) Mean Difference Confidence Interval of the Difference Lower upto 10000 10001-20000 20001-30000 30001-40000 above 50000 a. No statistics are computed for one or more split files IL IL IL IL IL 11.051 14.533 4.564 8.217 8.319 4 3 2 4 6 .000 .001 .045 .001 .000 37.75000 43.75000 42.33333 36.20000 43.33333 28.2658 34.1696 2.4209 23.9683 30.5871 Upper 47.2342 53.3304 82.2458 48.4317 56.0796
Significance T-test of Household Income and IL:
In order to find that which Household factor is significant in the fast food industry we
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have done one sample T-test on all the household income along with the involvement level, the results we obtained are displayed in the table and interpreted as follows. We have found that all the ranges of household incomes are less significant among each other but income range upto Rs10, 000 and above Rs50, 000 are highly significant among each other but the income range of Rs20, 000 – Rs30, 000 are least significant among all because its p-value is 0.45, the ranges but if we compare them with alpha (0.05) they are all significant. So we will reject Ho as all the p-values are less than alpha (0.05).
Significance T-test of Age and IL:
One-Sample Test Age Test Value = 1 95% t df Sig. (2-tailed) Mean Difference Confidence Interval of the Difference Lower Upto 20years IL 21-25years a. No statistics are computed for one or more split files IL 14.903 12.048 6 13 .000 .000 44.47619 39.41071 37.1738 32.3439 Upper 51.7786 46.4776
In order to find the significance of involvement level in age of the people we performed the t-test of age and Involvement level and found out the results that both the age levels which we attained are highly significant and the significance of the remaining four age classes are not calculated by SPSS as they don’t have any Standard Deviation among them. So we can say that by analyzing that we will reject Ho as the p values are less than that of alpha (0.05) which shows that our decision is obvious and we are not committing error by rejecting Ho.
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Significance T-test of frequency of taking fast food and IL:
One-Sample Test Frequency of Taking Fast Food Test Value = 1 95% t df Sig. (2-tailed) Mean Difference Confidence Interval of the Difference Lower Daily Once a Week Twice a Week Once a Month Twice a Month Occasionally IL IL IL IL IL IL 11.231 9.179 7.226 5.749 12.633 7.595 1 4 6 2 3 3 .057 .001 .000 .029 .001 .005 36.50000 44.15000 40.46429 37.16667 41.68750 42.33333 -4.7952 30.7956 26.7626 9.3492 31.1858 24.5954 Upper 77.7952 57.5044 54.1660 64.9841 52.1892 60.0713
To find the significant level of frequency of taking fast food with the involvement level of customers, we analyzed that only out of six variables only one variable i.e. “Daily” is insignificant, while the others are less significant and varies from 0.00 – 0.029. We concluded that we have rejected Ho in all the five cases which are significant whereas only one of the variable which is ‘Daily’ is not rejected as the p value is greater than alpha (0.05).
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Total Vari ance Explain ed Initial Eigenvalu es Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 10.735 3.094 1.205 .862 .849 .715 .581 .386 .364 .274 .241 .171 .131 .123 .090 .077 .048 % of Variance 53.676 15.468 6.027 4.311 4.246 3.575 2.907 1.930 1.821 1.369 1.206 .855 .657 .613 .450 .383 .238 Cumulative % 53.676 69.144 75.171 79.482 83.728 87.303 90.210 92.139 93.960 95.329 96.535 97.390 98.048 98.660 99.111 99.493 99.731 Extraction Sums of Squared Loadings Total 10.735 3.094 1.205 % of Variance 53.676 15.468 6.027 Cumulative % 53.676 69.144 75.171
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18 19 20 Extra ction Method: Prin cipal Comp onent Analysi s.
.030 .014 .010
.148 .071 .051
99.879 99.949 100.000
We have done factor analysis of all the 20 Variables of each factor that are price, Quantity, Ingredients, and Hygiene and we found out, that only three variables are affecting the most, to them which are mentioned in the table above, but we are not sure that which are the most affecting three Variables are, so it is explained below with the help of the component matrix.
Component Matrix Component 1 IMPO OCTM IRVN MALM USLS VLUE SECN BENI .500 .728 .822 .824 .810 .649 .611 .680 2 .566 -.383 -.380 .158 -.345 .503 -.285 .567 3 -.414 -.405 -.042 -.310 .308 .227 .076 .318
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MATM INTR SIGN CRIT BORN UNEX APPL ROMA ESSE UNDE WANT NOND Extraction Method: Principal Component Analysis. a. 3 components extracted.
.789 .803 .913 .722 .710 .841 .523 -.220
.491 -.294 -.010 .209 -.251 -.156
.027 .109 .157 -.345
-.045 -.031 .295 .157 .099 -.184 -.166
.570 .089 -.389 .279 -.393
.775 .753 .762
In order to find that which three variables are most significant among the 20 variables, we have analyzed through this table and found that Essential, Appealing and boring are the most significant variables among 20 variables respectively.
Case Processing Summary N Cases Valid Excludeda 25 0 % 100.0 .0
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Total a. Listwise deletion based on all variables in the procedure.
We had a sample size of 25 and out of which 25 are valid so we got 100 percent result of the reliability analysis.
Reliability Statistics Cronbach's Alpha .942 N of Items 20
We have done reliability analysis to find out that how much our analysis is reliable. The value of Cronbach’s Alpha when comes approximately to 0.5 or 0.6 it is normal but is very good if it is 1 or near to 1. Here our Cronbach’s value is 0.94 i.e. 94% which depicts that our analysis is near 1 that is a excellent score.
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The purpose of this investigative study was to measure the involvement level of the consumers of fast food. Four variables has been tested that were price, quantity, hygiene and ingredients and each variable got twenty factors. We calculated the quartiles in order to set the scale to prioritize the data. There are many findings which are listed below:
The consumer involvement level in fast food regarding our survey is medium by calculating mean
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Involvement level of all the factors varies. Involvement is highly significant of customers in fast food. Frequency of taking fast food daily is not significant among other variables. Household Income range up to 10,000 and above 50,000 is significant as compared to other variables.
When we found the involvement level in age of the people. The results we found are that; age levels up to 25 years which we attained are highly significant and the significance of the remaining four age classes are not calculated due to no SD.
Among the four factors that are price, Quantity, Ingredients, and Hygiene, The most significant variables are: Essential, Appealing and boring which are considered the most by the consumer in buying a product.
Analyzing the reliability of our analysis the cronbach’s Alpha shows that our analysis is 94.2% appropriate in order to make decisions.
This study could assist and help in understanding consumer involvement behavior regarding fast food restaurants because we mainly focused on relevant and important factors from both consumer and service provider side as well. After analyzing all the findings we suggest that Fast food industry should focus on the three main factors which are mainly focused by the customers. Industry should make their deals more exciting as compared to the current deals which are being offered now as deals and the four factors appeal the most to the customers but
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they found them boring. They should reduce their prices and improve the quantity and quality as the customers are feeling bored and are not happy to pay the prices for the regarding deals. This could be of benefit for fast food restaurants in making wise decision while recommending price, quantity of fast food because now customer have more options and now they are more price conscious and sharp. Also, this could help them in providing good atmosphere and healthier fast food because now people are more heath conscious.
Muhammad Mansoor Operation manager (Sabzazar Branch –fri Chiks)
Mr. Imran Ali Operation manager (Iqbal Town Branch- fri Chiks)
XIMB Journal of Management ; March, 2007
1. Fellow (Doctoral) Student, Institute of Rural Management, Anand, email@example.comVilakshan,
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