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MAJOR RESEARCH PROJECT SYNOPSIS ON

STUDY OF CUSTOMER PREFERENCES BETWEEN KFC AND McDonalds


For partial fulfillment of the requirement for The degree of Masters of Business Administration Batch (2010-2012)

Submitted By: Rajeev Singh chouhan MBA 3rd Semester

Guided By: Mrs. Garima Dayal Assistant Professor

IPS Academy

IPS Academy Indore

INDEX

1. Introduction 2. esearch Problem 3. Literature Review 4. Rationale of The Study 5. Objective of The Study 6. Research Methodology Desk Research Descriptive Research Sample Design Data Sources Tools for Data Analysis 7. Bibliography

INTRODUCTION

a) Consumer Satisfaction Customer satisfaction is the individuals perception of the performance of the product or service in relation to his or her expectations. The concept of customer satisfaction is a function of customer expectations. A customer whose experience falls below expectations (e.g. a limited beverage list at an expensive restaurant or cold chicken served at a KFC) will be dissatisfied. Diners whose experiences match expectations will be satisfied; customers whose expectations are exceeded (e.g. by small samples of delicious food from the Chef served between courses at an expensive restaurant, or a well-designed play area for children at a McDonalds outlet) will be very Satisfied or delighted. Besides, the degree of satisfaction provided by the goods or services of a firm as measured by the number of repeated customers (Leon & Leslie, 2006). As for many mature industries, high quality service is a cornerstone to every successful company to gain competitive advantage. Intense competition and high quality Expectation from consumer have forced fast food industry to transform from a product-centric approach to a customer-centric approach. b) Services Service quality is one of the vital determinants of customer satisfaction and it will directly Effect the organizational success especially in the service industry such as fast food Restaurants (FFRs) . Nowadays, almost all the FFRs focus on several ways to increase Their service quality in order to increase the level of satisfaction among their customers And thus increase their purchase intentions as well as loyalty. Therefore, service quality Measurement has to be done frequently and in a timely manner to obtain an

accurate Current level of service quality provided by the fast food industry in order to increase the Customer satisfaction as well as to encourage the customer purchase intentions towards The restaurants.

DETAILS OF INDUSTRY

a) Kentucky Fried Chicken (KFC)


KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food

restaurants based in Louisville, Kentucky, United States. KFC is present in 110 countries and territories around the world. It has in excess of more than 15,000 units in other parts of the world. Founder- HARLAND SANDERS. KFC Location Indore: KFC Restaurant Malhar Mega Mall.

b) McDonald's

McDonalds founded by brothers Richard and Maurice McDonald in San

Bernardino, California.
It is the world's largest chain of hamburger fast food restaurants, serving around

68 million customers daily in 119 countries. McDonalds Location Indore: Treasure Island Indore, Mangle City Indore, Malher Mega Mall.

RESEARCH PROBLEM

Assessment of customer needs in terms of services, quality, and product offerings of KFC and McDonalds with special emphasis to Indore region.

If we go by the trends it has been a lot of offerings when we talk about fast food outlets, gone are the days where people used to fancy homemade food. It has been an area of interest especially for the people who are fond of eating and are in search of lucrative options in the same. In the past decade or two there has been a lot of new and better options that have established themselves as market leaders. How effective are the strategies adopted by Branded Eaterys in fast food market in terms of services quality and satisfaction?

Literature Review

(a)Lockyer Sarah - Nations Restaurant News (21st May 2007) According to the study conducted by Locker Sarah on the University of Michigan's American Customer Satisfaction Index (ACSI) survey for quick-service restaurants (QSR) in the U.S. for the year 2007.The research shows that customers satisfaction did not grow and most of the leading brands lagged the overall ratings. Only four QSR chains posted improvements namely Starbucks Coffee, Wendys, KFC and McDonalds.
(b) Steenkamp, Jan-Benedict Van Heerde, Herald J Geyske (Dec 2010)

The growing sales of private labels (PLs) pose significant challenges for national brands (NBs) around the world. A major question is whether consumers continue to be willing to pay a price premium for NBs over PLs. Using consumer survey data from 22,623 respondents from 23 countries in Asia, Europe, and the Americas across, on average, 63 consumer packaged goods categories per country, this article studies how marketing and manufacturing factors affect the price premium a consumer is willing to pay for an NB over a PL. These effects are mediated by consumer perceptions of the quality of NBs in relation to PLs. Although the results do not bode well for NBs in the sense that willingness to pay decreases as PLs mature, the authors offer several managerial recommendations to counter this trend. In countries in which PLs are more mature, the route to success is to go back to manufacturing basics. In PL development countries, there is a stronger role for marketing to enhance the willingness to pay for NBs. (c) G.Ronald Gilbert Measuring Customer Satisfaction in Fast Food Industry A Cross National Approach (2004)

In todays ever increasing globalization of services and brands, service oriented business needs to attend to the satisfaction of their customers both domestically and abroad while transcending unique cultural differences from country to country. The study reveals two empirically derived customer satisfaction dimensions: 1) Satisfaction with the personal service. 2) Satisfaction with the service setting.

c) Brady and San Clemenate - Customer Satisfaction up at Fast Food Chains (2009) According to the study conducted by Brady and San fast food consumers are very satisfied by the overall dining experience. The study also reveals that the smaller regional brands are raising the bar for the fast food giants. The local regional brands that prevailed in 2008 are: 1) In N-Out Burger Calif. 2) Giordanos Pizza Chicago. 3) Taco Tote El Paso Texas 4) Chick-fil-A Atlanta.
d) Amran Rasli Abu Bakar Abd Hamid Seng Sook-MinThoo AiChin Consumers Purchase Intentions in Fast Food Restaurants.

The study highlights the following points:


1) Reliability Reliability is the FFRs regularity and consistency in performing services and the degree to which it inspires confidence and trust in customers. In operational terms, this means keeping promises, trustworthiness in transactions and the efficiency of the recovery process if anything goes wrong. 2) Responsiveness is defined as willingness and readiness to help customers and provide prompt service

. 3) Assurance Assurance means the knowledge and courtesy of employees and their ability to convey trust and confidence the firm provides to its customers. It also includes three main elements which are (i) Courtesy: politeness, respect, consideration, and friendliness of contact personnel; (ii) Credibility: trustworthiness, believability, and honesty of the service provider as well as (iii) Security: freedom from danger, risk, or doubt. 4) Empathy This term means caring, individualized attention the firm provides to its Customers. There are several components in this dimension which are (i) Access: approachability and ease of contact; (ii) Communication: keeping customers informed in languages they can understand and also listening to them; and (iii)

RATIONALE STUDY

The sole aim of conducting the study is to analyze the various options available in the fast food segment in Indore region. The product offerings of various outlets and the services provided in totality with the value for money and the overall customer satisfaction. The purpose of the research is to measure the customer satisfaction level of Branded Eatery outlets to that of Local Branded Eatery outlets in Indore. This study will help us determine what facilities value added services food items and other such offerings can be introduced for better customer satisfaction. The research in other words will

highlight the expectations and satisfaction of the customers in terms of food items and facilities provided in Indore Region.

OBJECTIVES

To study the products offerings of KFC and McDonalds outlets and compare them. To analyze the various strategies adopted by these outlets and to figure out the preferences of the customers

To evaluate the overall facts which form the basis of the footfalls in these outlets? To analyze and understand the consumer satisfaction level in fast food segment. To conduct a comparative study of both restaurant.

RESEARCH METHODOLOGY

The sole objective of the research is to understand the type of options available in Indore Region for fast food lovers and at the same time understand what the customer is looking forward to from these outlets. a) DESK RESEARCH Desk Research would be carried out in order to obtain secondary data. The main source for the collection of secondary data would be internet. b) DESCRIPTIVE RESEARCH Descriptive Research would be carried out to meet the objectives of the research and generalize the results from the samples collected from the customers. The survey method would involve a structured questionnaire which would help collect elicit information. c) SAMPLE DESIGN Population: Indore Sample Size: 200 d) DATA SOURCES The sources of data would include either primary of secondary data or even a combination of both. The present study would be based on primary and secondary data. Primary Data: Primary data is collected through a self design questionnaire filled up by the respondents/customers by face to face interaction. Secondary Data: The secondary data used in the study are collected from internet catalogues and magazines. e) TOOLS FOR DATA ANALYSIS The analysis would be done using statistical tools and techniques which will be based on the data collected from the sample in the research.

BIBLOGRAPHY

a) www.emeraldinsight.com/journals.htm?articleid=856027

b) raisingcanesminnesota.blog.com/2009/27/customer-satisfaction-up-at-fastfood-restaurant-chains-fast-food-lives-up-to-expectations-for-cash-strappedconsumers/
c) www.businessweek.com/careers/managementiq/archives/2009/05/fast_food_cu

stomer_service_scores.html

BOOK C.R. Kothari research methodology.