1

Name

: PURVA MAHESHWARI
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Registration Number

: BS15MB003

Major Subject

: Finance

Name of Major Advisor

: Mr.Pawan Dubey (Assistant professor)

Name of Department

: Department of Business Administration

Name of College

: Akal College of Economics, Commerce and Business

Administration

1.Title: A COMPARATIVE STUDY ON CUSTOMER SATISFACTION TOWARDS

SERVICE AND FOOD QUALITY WITH SPECIAL REFERENCE TO MCDONOLDS
AND KFC IN GHAZIABAD (U.P.), INDIA

2.Introduction: As two of the world's largest fast-food giants, McDonald's and Kentucky Fried
chicken (KFC) are both from the United States.Fast food industry is one of the worlds fastest
growing sectors in food industry. However, over a period of time, with a growth in the number of
nuclear families, economic growth and increasing per capita income as well as globalization, fast
food culture gained prominence in India. Fast food is the food item that can be prepared and
served very quickly. Food sold in a restaurant or store with preheated or precooked ingredients
and served to the customer in a packaged form for take-out/take-away. Because of commercial
emphasis on speed, uniformity and low cost, fast food products are often made with ingredients
formulated to achieve a certain flavour or consistency and to preserve freshness. The emergence
of the fast food industry has, transformed urban food culture in India to some extent. In India,
fast food culture emerged after independence. Eating at home used to be a significant aspect of
Indian culture. However, over a period of time, with a growth in the number of nuclear families,
economic growth and increasing per capita income as well as globalization, fast food culture
gained prominence. Similarly, children also resorted to fast food due to their exposure to global
urban culture and western cuisine which accelerated their desire for cheap and delicious fast
food. Moreover, fast food costs less than traditional meals commencing with appetizer and
concluding with dessert. With the liberalization of the economy in 1992, new multinational fast
food giants targeted India as a huge potential market with their outlets. Burger King, Pizza Hut,
Dominos Pizza, McDonalds and KFC outlets are functioning in shopping malls and other
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public areas. Changing consumer behaviour and favourable demographics led India to witness a
tremendous growth in fast food restaurant industry. McDonald's Corporation is the world's
leading chain of hamburger fast food restaurants and the recognized global food service retailer.
The first McDonalds restaurant was run by brothers Mac (Maurice) and Dick (Richard)
McDonald in San Bernardino, California. In 1937, their father Patrick McDonald was having a
hot dog cottage called as Airdrome restaurant near the Monrovia Airport in Monrovia, California.
The McDonald brothers decided it was time for a change. They shut down the restaurant for
renovations, reopened as simply McDonald's, and served hamburgers and cheeseburgers, soft
drinks, French fries and apple pie. In 1955, Ray Kroc, a 52-year old salesman of milkshake
mixing machines, became interested in a cord of seven restaurants owned by Richard and
Maurice McDonald. Kroc started expanding their business by opening franchises for McDonalds
in Des Plaines, Illinois. In 1960 McDonalds advertising campaign look for the golden arches
gave McDonalds sale a big boost. In 2002, Kroc pitched his vision of creating more than 30,000
McDonalds in 121 places and countries all over the world, including Canada, the Caribbean,
Europe, Central and South America, Australia, Japan, Korea, Southeast Asia, even Russia and
China. It has the fastest growth rate in the restaurant industry. Its outstanding brand recognition,
experienced management, high quality food, site development expertise, advanced operational
systems and unique global infrastructure helps it to capitalize on global opportunities. KFC
(Kentucky Fried Chicken) was founded by Colonel Harland Sanders, an entrepreneur who began
selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great
Depression. Sanders identified the potential of restaurant franchising, and in 1952, the first
"Kentucky Fried Chicken" franchise opened in Salt Lake City, Utah. KFC popularized chicken in
the fast-food industry, diversifying the market by challenging the established dominance of the
hamburger. Branding himself "Colonel Sanders", the founder became a prominent figure of
American cultural history, and his image remains widely used in KFC advertising. The
company's rapid expansion made it too large for Sanders to manage, so in 1964 he sold the
company to a group of investors ran by John Y. Brown, Jr. and Jack C. Massey. KFC was one of
the first fast-food chains to expand internationally, opening outlets in England, Mexico and
Jamaica by the mid-1960s. Throughout the 1970s and 80s, KFC experienced mixed success
domestically, as it went through a series of changes in corporate ownership with little or no
experience in the restaurant business. In the early 1970s, KFC was sold to the spirits distributor
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Heublein, which was taken over by the R.J. Reynolds food and tobacco conglomerate, which
later sold the chain to PepsiCo. The chain continued to expand overseas, and in 1987 KFC
became the first Western restaurant chain to open in China. In 1997, PepsiCo turned off its
restaurants division as Tricon Global Restaurants, which changed its name to Yum! Brands in
2002. Yum has proved a more focused owner than Pepsi, and although KFC's numbers of outlets
have declined in the US, the company has continued to grow in Asia, South America and Africa.
The chain has expanded to 18,875 outlets across 118 countries and territories, with 4,563 outlets
in China alone, KFC's largest market. In 1995, Kentucky Fried Chicken (KFC) also entered the
Indian market and opened its first outlet in Delhi.
Customer Satisfaction
Customer satisfaction is a marketing term that measures how products or services supplied by a
company meet or surpass a customers expectation. The definition of customer satisfaction has
been widely debated as organizations increasingly attempt to measure it. Customer satisfaction
can be experienced in a variety of situations and connected to both goods and services. It is a
highly personal assessment that is greatly affected by customer expectations. Satisfaction also is
based on the customers experience of both contacts with the organization and personal
outcomes. Customer satisfaction is a highly personal assessment that is greatly influenced by
individual expectations.
According to Hansemark and Albinson (2004) satisfaction is an overall customer attitude
towards a service provider, or an emotional reaction to the difference between what customers
anticipate and what they receive, regarding the fulfillment of some needs, goals or desire.
Service Quality
According to Zeithaml & Bitner, "Service quality is a focused evaluation that reflects the
customer's perception of specific dimensions of service: reliability, responsiveness, assurance,
Empathy, tangibles. Satisfaction, on other hand, is more inclusive: it is influenced by perceptions
of service quality, product quality, and price as well as situational factors and personal factors.
Food quality

Food quality is the quality characteristics of food that is acceptable to consumers. Food quality is
an important food manufacturing requirement, because food consumers are susceptible to any
form of contamination that may occur during the manufacturing process. Food quality is a
sensory property that includes appearance, taste, nutritional value (nutrient content), health
benefit (functional ingredient) or safety (chemical, physical, biological). It includes those
attributes which affect consumers choice for a product. Need to control the food quality the
major challenge for food industry is to maintain the food quality; the reason being well aware
consumers. For this reason food industry has to adopt certain techniques in order to meet the
growing need of maintaining food quality; this is known as food quality control.
McDonalds
McDonald's fast food restaurant is one of the leading franchises in the United States as well as
overseas, serving around 68 million customers daily in 119 countries across more than 36,000
outlets. McDonald's aims is to serve good food in a friendly and fun environment, to be a
socially responsible company, to provide good returns to its shareholders, to provide its
customers with food of a high standard, to provide a quick service and value for money. The
company logo is McDonalds with a big yellow M and slogan is Im Lovin It. They
reorganized their business as a hamburger stand using production line principles. McDonald's
primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks,
milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its
menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries. In India, McDonald's is
a joint-venture company managed by two Indians. While Amit Jatia, M.D. Hard castle
Restaurants Pvt. Ltd. owns and spearheads McDonalds in west & south India, McDonalds
restaurants in North & East India are owned and managed by Vikram Bakshis Connaught Plaza
Restaurants Private Limited. Today McDonald's has 235 restaurants in India serving over
5,00,000 customers per day.
Mc Donald Specification
Name of the organization

: McDonalds

Industry

: Restaurant
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Founders McDonalds

: Richard and Maurice McDonald

McDonalds Corporation

: Ray Kroc

Headquarters

: Oak Brook, Illinois, U.S.

Number of locations

: 36,000+ worldwide

President and CEO

: Steve Easterbrook

Slogan

: Im Lovin It

Source: www.gjeis.org
KFC (Kentucky Fried Chicken)
Kentucky Fried Chicken (KFC) is a fast food restaurant chain that specializes in fried chicken
and is headquarter situated in Louisville, Kentucky, United States. It is the world's second largest
restaurant chain after McDonald's. Serving around more than 12 million customers each day in
more than 115 countries and territories around the world. There were 18,875 KFC outlets in 118
countries and territories around the world. There are 4,563 outlets in China, 4,491 in the United
States, and 9,821 across the rest of the world. Outlets are owned by franchisees or directly by the
company. The company is a subsidiary of Yum! Brands, a restaurant company that also owns the
Pizza Hut and Taco Bell chains. KFC is known for its former and current slogan "Finger Lickin'
Good", which was replaced by "Nobody does chicken like KFC" and "So good" in the interim.
KFC primarily sells fried chicken, chicken sandwiches, wraps, french fries, soft drinks, salads,

desserts, breakfast. There are 350 KFC outlets in India. Its non-vegetarian platter is loved by the
Indian youth. KFC franchises are extremely successful all over India and make huge profits.

2.1 Scope and significance of the study

The scope of the study is limited to the consumers satisfaction regarding service and food
quality within the limit of Ghaziabad. Total number of franchisees of McDonalds and KFC is 6
& 4 respectively in Ghaziabad. The study will be able to reveal the preferences, needs,
perception of the customers regarding the fast food products with reference to McDonalds. It
will also help the McDonalds to know whether the existing products are really satisfying the
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customers needs understand the consumers perception about fast food and the companies to
understand, how a consumer selects, organizes and interprets the quality of service and food
offered by the McDonalds and KFC. The deeper the company understands the consumers needs
and perception, the earlier the product is introduced ahead of competition and the greater will be
the expected contribution margin. Hence the study is very important. Consumer markets and
consumer buying behavior can be understood before sound product and marketing plans are
developed. This study will help McDonalds and KFC to customize the service and food,
according to the consumers need and understand the experience and expectations of the existing
customers. In spite of Quality, Service, Cleanliness and Value capabilities for fast food product,
an in-depth study of the consumers, their perceptions and demand for their product is very
necessary for setting up an efficient marketing network.
2.2 Objectives of the study
1. To compare the level of satisfaction between the consumer towards service quality of
McDonalds and KFC based on SERVQUAL model.
2. To compare the pattern of different variables which affect consumers satisfaction
towards food quality of McDonalds and KFC.
3. To suggest appropriate measures for improving the satisfaction level of customers.
3. Expected new knowledge of the study
1. It will provide the baseline information about the area.
2. The findings may be helpful for generating competitive strategy.
3. The customers liking McDonalds as well as KFC may be due to various factors like
quality of product, cleanliness, competitive price, freshness of product etc.
4. This type of study will be beneficial in identifying the satisfaction level of customer in
McDonalds and KFC.
5. The study is expected to provide assistance for conducting study on the similar topic.

4. Review of Literature
A comparative study conducted by M.Mondurailingam, V.Jeyaseelan and A.K.Subramani(2015)
between KFC and McDonalds in Chennai with the sample size 50. Came out with major findings
that 22% of KFC customers and 18% of McDonalds customers are not satisfied with the quality
of food. 18% of KFC customers and 12% of McDonalds customers are not satisfied with price
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of the food. 24% of KFC customers and 18% of McDonalds customers are satisfied with taste of
the food. Both the food giants have given each other immense competition in terms of customer
satisfaction, service quality and promotional strategies. A comparative study conducted by
Muhammad Usman, Haider Dr Farzand, Ali Jan Muhammad Farooq, Jan Muhammad, Faheem
Jan (2013) between McDonald and KFC this study reveals that McDonalds & KFC need to
capitalize on these strengths to increase their market share and brand loyalty. Mc-Donalds has a
strong and clear brand image. Their consumers can easily identify and relate to the Mc-Donalds
brand. These helps increase and maintain brand loyalty. According to the survey, Mc-Donalds
received an excellent rating for the service and behavior of their staff. This is a huge advantage,
especially in a service organization. KFC got a high rating in the market survey, for the Taste &
Quality of their products. KFC is higher in rating for delivery of product either inside the
restaurant or home delivery and also the serving method and delivery method which is
convenient to the consumer in ordering and the processing of the order. A study is conducted by
Feliks Anggia, Binsar Kristian P., Hotman Panjaitan (2014) the major findings of this study is to
Analysis the total quality service and customer relationship management effects toward customer
satisfaction and its impact on customer loyalty.Total quality service have significant effect on
customer satisfaction; total quality service have significant effect on customer loyalty; customer
relationship management have significant effect on customer satisfaction; customer relationship
management have significant effect on customer loyalty; customer satisfaction significantly
affect customer loyalty. A Study on Customer Awareness and Satisfaction towards Kentucky
Fried Chicken (KFC) in Coimbatore is conducted by Assistant Professor Dr. M. Vanishree & Dr.
L. Shanthi (2013) in this study reveals that fast food is one of the worlds fastest growing food
types. Majority of the customers are occasional purchasers and are highly satisfied towards the
taste and has no complaints about the services provided by KFC. The customers awareness level
varies towards the number of earning members and their monthly family income. Also the
customer satisfaction level differs in terms of their educational level. A study of McDonalds and
KFC is based on Consumer Perceptions of Food Franchise is conducted by CMA (Dr.) Kinnarry
Thakkar , Mrunmayee. R Thatte (2014) the major findings of this study are that price of the food
items affect the frequency of visits to food outlets. Consumers attach great importance to various
factors such as quality of food, facility layout, service quality speed and cleanliness. But all
factors are not equally important while choosing a food franchise. Hence we can say that good
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taste and good ingredients are most important factors whereas additional information is least
important factor for the consumers. There is a moderate positive correlation observed between
satisfaction level of price of McDonald's products and the frequency of the visits to McDonalds.
It means more the consumer is satisfied with the pricing, more they visit the outlet. According to
most of the consumers, taste and quality of ingredients of the food items are the most important
factors. Although most of the factors of consumers perception are idiosyncratic, there are few
factors where all the consumers formed a common opinion. A study on Customer Satisfaction in
the Restaurant Industry is conducted by Raja irfan sabir, Muhammad Irfan, naeem akhtar,
Muhammad abbas pervez (2014) reveals that restaurant owners should focus more on these four
factors of service quality, physical design, product quality and price if they think customer
satisfaction as part of their marketing strategy yet among all these four variables they should take
service quality as the most important tool of customer satisfaction. Physical design or
atmosphere has 2nd largest contributing effect towards customer satisfaction. A study is based on
customer attitude towards fast food restaurants is done by pratima singh (2014) in gwalior in this
study states that Fishbein multi-attribute was used to test customers belief and evaluation
towards these fast food restaurants. Five point likert scales was used in the questionnaire.
Customer attitude and their beliefs towards each fast food restaurants differ in Gwalior region.
5. Technical programme:
5.1 Name of the experiment
The study entitled A comparative study on customer satisfaction towards service and food
quality with special reference to McDonalds and KFC in Ghaziabad (U.P.), India.
5.2 Location: Field/Lab:
The study will be carried out at Ghaziabad, India.
5.3 Methodology:
1. The sampling method used for the research purpose will be the proportional sampling for
size of the sample and random sampling for individual respondents will be incorporated
2.

for the research purpose.

Furthermore, to achieve the objective of study, both primary and secondary data will be
considered.
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a) Primary Sources: The primary data will be collected by using the survey method with
the help of close-ended questionnaire which is attached with this synopsis.
b) Secondary Source: The secondary data will be collected from internet, marketing,
journal, books, magazines and past thesis.
5.4 Observations to be recorded:
1. The influence of demographic variables for example: age, gender, education, occupation,
marital status and monthly income on customer satisfaction will be observed.
2. Factors to be observed related to: Hospitality of staff, Preparation and delivery time of food,
freshness& taste of food, Hygienic, Space management, Restaurant working hours, Location,
Competitive price of different food on customers satisfaction will be observed and
Strongly
agree
(5)

Agree

Neutral

Disagree

Strongly disagree

(4)

(3)

(2)

(1)

evaluated.
3. The level of customer satisfaction with respect to various factors will be recorded and
measured using five point likert scales as given below.

5.5 Statistical Analysis

Data collected with the help of questionnaire will be coded in the form of numbers. The coded
data will be processed and analysed using SPSS version 21.0 statistical software. In order to
interpret and test the statistical significance of data, appropriate tools such as percentage, chi
square etc. will be used.

References:
Mondurailingam M, Jeyaseelan V and Subramani A K (2013) Comparative study on customer
satisfaction towards KFC and McDonalds in Chennai. ZIJMR. Vol. 5(6): 50-62)
Sabir R I, Ghafoor O, Hafeez I, Akhtar N and Rehman A U (2014) Factors affecting customers
satisfaction in restaurants industry in Pakistan. IRMBR. Vol. 3(2)

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Thakkar K and Thatte M R (2014) Consumer perceptions of food franchise: A study of

McDonalds and KFC. ISRP. Vol. 4(3)
Haider M U, Jan F A, Jan M F, Jan M F (2013) Factors Effecting Brand Preferences: A
Comparative Study of McDonalds and KFC. AJSS. Vol. 5(2)
P Kristian F A B, Panjaintan H (2014) Analysis of Customer Loyalty through Total Quality
Service, Customer Relationship Management and Customer Satisfaction. IJERE. Vol. 3(3)
Vanishree M, Shanthi L (2013) A Study on Customer Awareness and Satisfaction Towards
Kentucky Fried Chicken (KFC) in Coimbatore. IGRA. Vol. 2(1)
Singh P (2015) Difference in Beliefs, Consumer Attitudes towards Fast Food Restaurants in
Gwalior Region. IJSER. Vol. 3(5)

Signature of the Student

ADVISORY COMMITTEE
Name
Mr.PawanDubey

Designation
Assistant
Professor
Dr.KajalChaudhary Assistant
Professor

Department
Management
Commerce

Signature
Major Advisor
Member

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Er.DeepaGuleria

Lecturer

Dr.Sandipan Gupta

Management

Member

Mathematics

Member

Forwarded five copies to the Dean, Postgraduate Studies, for approval by the RDC

Head of the Department/ Principal

Dean of the College

Dean, Post Graduate Studies

ADVISORY COMMITTEE MEETING

Name of the Student (Capital letters) PURVA MAHESHWARI Regd No.BS15MB003 Semester
third.
Major Subject _Finance_______
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Major Advisor Mr.PawanDubeyName of Department ManagementName of College Akal college

of Economics,Commerce and Management
Venue __________ Date_________ Time ____
Students Work Load Teaching
S.N Course No
Title of Course
Credit Hrs
o
MATH-540
Operational research
1
MBA-551
Capital market
2
MBAF-554
Working capital management
3
MBA-553
Human resource management
4
MBAF-552
Financial engineering
5
BT-609
Research methodology
6
Title of Thesis: A comparative study on customer satisfaction towards service and food quality with
special reference to McDonalds and KFC in Ghaziabad (U.P.), INDIA

Research Work Carried out in the present Semester

Collecting review of literature

Research Work to be carried out in the next semester

Signature of the Student

Signature of Major Advisor

Committee Members
1. Name _Dr. Kajal Chaudhary Signature ________________________
2. Name _Dr. Sandipan Gupta Signature ________________________
3. Name _Er. Deepa Guleria
Signature ________________________
Three copies to be sent to the Dean PGS

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