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The purpose of the study is to research the fast-food industry in India and identify both global and domestic food trends. Responses from independent and fast-food joints in India provided the statistical basis for analysis of operations and financials of the existing restaurant industry in the country. The meaning of service and service quality has been discussed elaborately. Market research study has been conducted in order to know about the customers’ preferences and hospitality that they want from the fast food joints. After this a comparative analysis along with diagrams and charts has been made to bring forward the overall picture of the market research. The study also deals the service quality level provided by the fast food joint McDonald's and its main competitors. The survey was conducted so as to analyze the service level prevailing in the fast food centre and the improvement that can be made upon it. Survey has been done with the help of self prepare questionnaires. Segmentation targeting positioning customer relationship management, 7P's of marketing mix and completes SWOT analysis has been done and explained in detail in all the chapters.
1.1 Background of the study: Some of the emerging culinary trends internationally include the popularity of health foods, use of fresh and authentic ingredients acceptance of new fusion concepts and establishing of the chef entrepreneur. In India multinational restaurant chains had to make a downward price revision and offer more vegetarian toppings to increase sales volume. This led to dramatic improvement in their performance. They are also adding more spicy items in their menus to satisfy Indian taste buds. International and domestic multi-unit restaurant groups are expected to drive the expansion in the restaurant industry in India. Among the leading trends in this regard would be the expansion of quick service Asian restaurants, fusion concepts, restaurants with a focus on entertainment, and ethnic and regional cuisine restaurants.
1.2 The Indian fast food market- An overview: Up to the year 1995 Indian food market was predominantly dominated by the traditional food centres, potential restaurants in the customer’s colony and some restaurants in a five star hotel. Having fast food i.e., burgers, pizzas etc., was considered to be an option for eating out. It was not at all synonymous with the American concept of fast food as a quick takeaway bite or a substitute for lunch. Apart from fast food being available at the local colony restaurants and at some five star restaurants, Nirulas was the only fast food chain existing in the country with its restaurants expanding with every passing year since its inception. It has been almost 50 years now since its set up and there is hardly any one who doesn’t know that Nirulas exists.
Nirulas was the first one to bring fast food to India back in the 50’s since then it has evolved into an eating place with tremendous brand equity and brand recognition. It proved to be a perfect eating place for an average middle class who wants to eat out at an affordable price that can’t afford the five-star restaurants and would not want to go to the local food centres. Nirulas almost
had a monopoly for decades due to the way it has been placed. It is a place where a person from an average middle class group to upper class group can go to eat out. Its popularity has increased over the decades. With the trends changing and the incomes rising almost anybody who can afford to eat out could go for a snack at Nirulas. However the year 1995-96 witnessed a drastic change. 1996 is considered to be the year of India’s entry into the world food market. International giants such as McDonalds, KFC, TGIF, Dominos and Pizza Hut all bombarded the Indian food market. Before these, UK-based joint called Wimpy’s had established its chain in the country in 1990. By year 1996 it had about three to four joints established in Delhi. However it did not pose much of a threat to Nirulas reason being lack of variety and that Wimpy’s was looked at more of a hangout place rather than eating out with the family.
However, restaurant business is such that it is surrounded by competitors from all sides, be it Indian joints or foreign joints. Each of the foreign food joints that have come into the country have their own strategy lined up to differ from the rest. Each of these studied the Indian tastes and style and thereby targeted the Indian customer. An average Indian restaurant goes is no convenience eater, unlike the Americans. If he is paying, he is paying for food that tastes good, not for how pleasantly the stuff is served or how spotless the windows are. He wants food for that can make him come back to the restaurant. An Indian food joint owner would definitely understand this but an American company which comes and places itself directly without knowing the customer is definitely in for trouble. Customer loyalty in a restaurant business is essentially low.
A customer when he comes to a restaurant usually looks at the quality of food, variety, ambience, speed of delivery and the location. The variety would influence the frequency of visits since taste is a dominating factor to the Indian customers. Almost all the fast food chains both Indian i.e., Nirulas and foreign i.e., McDonalds etc., are targeting the families. This serves to be an advantage because the turnaround time is short and family has higher propensity to spend because different members order larger variety of dishes. Each of these restaurants delivers quality, value and services in its own way through its line of strategies. The emphasis is on the value that the restaurant is delivering to the customers.
3 Purpose of the study: Basically.4 Research questions: • • Which type of service quality McDonald’s provide? Does McDonald’s service quality better than others? Is McDonalds improving service quality? • 1. • • Service quality of other players vis-a-vis McDonalds: Comparing the service quality of McDonald along with that of Nirulas’. • To find out the ways by which McDonald’s can improve upon its service quality and bring more satisfaction to customers and thus add value to its bottom-line.1 Major Research Objectives: • • The service quality prevailing in McDonald's To find out the service quality of McDonalds in the various areas and finding out the deficiencies.1. Pizza Hut and others.5. 1. which are: 1. 1.2 Major Research Objectives: • The service quality prevailing in McDonald's.5. • . the purpose of the study is to research the fast-food industry in India and identify both global and domestic food trends.5 Research objectives: The objective of the study is divided into two parts. Further more. to check the trend of taste and preference in India after globalization and liberalization. To find out the service quality of McDonalds in the various areas and finding out the deficiencies.
Lack of interest of the respondent was one of the major problems. 1. • • To find out the ways by which McDonald’s can improve upon its service quality and bring more satisfaction to customers and thus add value to its bottom-line.6 Significance of the study: This study will help to consumer. have many limitations. Based on these trends. Sample size is limited. entrepreneurs related to this sector that how consumers taste and preference are changing. Comparing the service quality of McDonald along with that of Nirulas’.• Service quality of other players vis-a-vis McDonalds. • • • Potential biases such as reluctance of consumers. Unauthenticated information of the target sample. Only some other fast food restaurants are considered for the study • • . 1.7 Limitations of the study: In this study. Pizza Hut and others. executives etc. Here some of these: • 100% response rate was not found from the respondents. Some extent of biasness was found because of Brand loyalty while answering the questions. owners can make a strategy and serve better.
. Chapter III .The initial part of the dissertation discussed basically introduce the Indian fast food industry and its major players.8 Structure of the Dissertation: Henceforth. data analysis and lastly a conclusion with findings & recommendations.The methodology part will give both detailed accounts of how this study was conducted as well as explain as to why the chosen methods were of the greatest use.1.The literature review part of this dissertation start with some introductory part and further that discusses about some research work done previously. research methodology. leading to this study’s conclusions and recommendations by this study. Chapter II . Chapter V – Conclusions. this dissertation will entail five major parts. Chapter IV – The Analysis and Interpretation of data will give the empirical results and data analysis linking it to the theoretical framework provided in the literature review. literature review. Chapter I. introduction. in turn. findings and Recommendations will be the concluding chapter with a discussion concerning the empirical results.
Customer loyalty describes the tendency of a customer to choose one business or product over another for a particular need.S. 2002).CHAPTER. 2002) In simple terms customer satisfaction is essential for corporate survival. Basu 1994). While this research provides some perspectives to the field of service quality.1 Introduction: A fast-food industry in a primarily a service sector emphasis in given on the role-played by relationship marketing. (Buttle. It reinforces positive attitudes towards the brand. (Caruana. (Buttle. the one’s who do it pose major threat to rest of their competitors. customer satisfaction is recognized as of great importance to all commercial firms because of its influence on repeat purchases and word-of mouth. There are . Profits and revenues are nothing more than the outcomes of fulfilling customer’s needs and expectations (Dick. According to Vavra Customer satisfaction is the leading criterion for determining the quality that is actually delivered to customers through the product/ service and by the accompanying servicing. It is imperative to develop proactive methods for understanding what customers like and dislike.2 LITRATURE REVIEW 2. There is no higher achievement than to satisfy the customer which an organization has committed itself to serving. leading to a greater likelihood that the same brand will be purchased again. and K. (Alexandris et al. Customer satisfaction is an ultimate goal of any service industry. A. This doesn’t mean that the organization become a not for profit industry. As mentioned above several studies have found that it costs about five times as much in time. F 1996) Furthermore. money and resources to attract a new customer as it does to retain an existing customer This creates the challenge of maintaining high levels of service. It’s really hard for companies to make customers and then retain them. awareness of customer expectations and improvement in services and product. F 1996) Companies invest in retention rather than attracting new customers. it is believed that there are a number of things that should be done to confirm the verified methodologies as well as to develop the use of service quality in design and improvement of quality services.
the fast-food can save their marketing expenses. its temporary nature might lead to question marks on the reliability of service quality difference scores. a small increase in customer satisfaction boosts customer loyalty dramatically. when satisfaction reaches a certain level. at the same time. habit and loyalty. loyalty increases dramatically. Customer loyalty is concerned with customer satisfaction because of the benefits of retaining customers. since expectations and perceptions are based on experience. As for customer loyalty. As per the Rama. when satisfaction declined to a certain point. (2005). . spurious correlation’s. cost-effective links between an organization and its customers. 2002). On the high side. loyalty dropped equally dramatically. It is a result of consumers learning that one brand can satisfy their needs and develop a favorable attitude towards it which results in consistent purchase over time. there are two critical thresholds affecting the link between satisfaction and loyalty. Also. there is a close link that exists among learning. Managers should realize that having satisfied customers is not good enough. In addition to benefiting from the extremely satisfied customers' repeat patronage. Based on Coyne (1989). they must extremely satisfied customers. Also. inconsistent definitions and/ or interpretations of the ‘expectation’ might lead to a number of problems. poor discriminant validity. and the activities involved in it are aimed at developing long-term. In addition. one thing that Is felt important is that firms are good at attracting customers for the first time but they can’t actually retain them which is most important as It costs between three and seven times as much as to win a new customer as it does to hang on to an existing one.number of problems with the instrument that are mentioned in the literature. The evidence suggests that differential scores of perception minus expectation tend to exhibit reduced reliability. Now day’s fast-food companies have stepped up their promotions of frequent guest programmes to compete in the market. Moreover. and restricted variance problems (Alexandris et al.
nor is any one customer loyal to everything he or she buys and uses. Naturally then. I. Mittal.2 Customer Loyalty: Customer loyalty describes the tendency of a customer to choose one business or product over another for a particular need. service quality will be the dominant element in customers’ valuations. Customer retention has a direct impact on profitability and past research has claimed that it can be five times more expensive to obtain a new customer than to retain one. In the case of pure services. • Customer loyalty is a customer’s commitment to a brand or a store or a service or a supplier based on a strong favourable attitude (N. It’s really hard for companies to make customers and then retain them. • Its commonly known to everyone that typically about 80 percent of revenue comes from only 20 percent of customers therefore It would make sense to concentrate most marketing resources on this 20 percent. 1997). stores and services that command little or no loyalty from their customers. On the flip side of the coin. .Seth. Service quality is a critical element of customers’ perceptions that compliments loyalty. Companies invest in retention rather than attracting new customers. the one’s who do it pose major threat to rest of their competitors. 1999). There are some products. as said above not all consumers are loyal to any one product or service. considerable time and money is being spent in many organizations to develop strategies to retain customers. but the problem for managers is that the most financially rewarding 20 percent are not necessarily the loyal customers (Dowling and Uncles.Newman.2.
In this case the attitude towards the brand is favourable and the purchasing is done consistently for same brand. Perhaps the customer favours or likes the brand but is not able to buy it because of certain barriers which could be high price or lack in access to the brand or the store. etc. • When behaviour is high but attitude is low. Repeat loyalty. commitments. but has no preferential attitude or liking towards it. in the typology it’s the latent loyalty which evolves strong attitude and weak behaviour. Ratings. airlines. Customer loyalty includes both attitude and behaviour towards the service or product. stores. A fast-food might want to measure its loyalty on the basis of repeat patronage and repeat behaviour. (2002) typology. Weak attitude means customers don’t have a liking or preference for the brand and weak behaviour means that the same brand is not purchased consistently. • Finally. hotels. the customer has spurious loyalty which means loyalty that is incidental and not well founded. May be because this brand or store happens to be the only one affordable or convenient but if he is given choice they might shift towards another brand or store. marketers can tap into the hidden potential market by diminishing the barriers that prevent customers from buying their desired brands. no loyalty exists. Here. trust are various forms of attitudes that could be measured by survey presumed to guide behaviour. • When both behaviour and attitude are strong. 2005) . On the other hand behaviour which includes retention and share-of-category loyalty could be measured with panel data or survey which would indicate the possibility of purchase and generally applies to service organizations like groceries. satisfaction. (Rama. spurious loyalty and no loyalty are the 4 constituents of same which are represented in a model known as Alexandris et al. In this case the customer buys the same brand or shops at the same store regularly. process by which the outcome was delivered and the quality of the service surroundings where the actual service was delivered. Latent loyalty. strong loyalty exists. • When both behaviour and attitude are weak.The quality of the services may be judged by the customers on the basis of their perceptions of the technical outcomes provided.
customer satisfaction may not be an accurate indicator of customer loyalty. It is the strongest form of suppliercustomer relationship. 2005). location and convenience. Therefore. Value. but they will not necessarily stay in the same hotel when they visit that area again. attention. hotels are beginning to customize service. Loyalty is vulnerable because even if customers are satisfied with the service they will continue to defect if they believe they can get better value. It is the measure of how well the customer’s expectations are met. paying attention to the customer. This is just a simple example of building customer loyalty by taking personal care of loyal customers and satisfying them. The relationship between the customer and the service provider should be maintained at all times and personal interest should be shown towards each customer. Companies have to learn continuously about their customers' needs and expectations. Customer loyalty is also the basis of relationship marketing because retaining customers for life contributes to enhanced profitability. Loyalty is established when the . involvement and personal relationship are 5 major factors that would help a company generate customer loyalty. involving the customer in creating the service and having a personal relationship with the customer through all communicational activities and touch-points. Customers on the other hand are typical purchasers who have no feeling of loyalty towards your organization. and regular guests are given the same room. A customer travelling away from home may be very satisfied with a hotel in which they stay. Personality. every company would want their customers to be converted into a partner. customer loyalty is a measure of how likely a customer is to repurchase and engage in relationship activities. 2. convenience or quality elsewhere. Satisfaction is a necessary but not a sufficient condition for loyalty. For example. (Rama. Other variables impact on the customer's choice including price. ability of customer to relate with the brand. which are ever changing and often unpredictable. All these factors are very important factors as they focus on benefits offered.3 Customer Satisfaction: Customer satisfaction is an important concept to consider when developing a customer loyalty programmes. their table is booked for dinner at their regular time and newspapers can be ordered and delivered. Whereas if we compare customer loyalty with customer expectation.Now. which is on the top level of the loyalty ladder designed by Paine (1995). which is sustained because both parties see it as mutually beneficial.
In other words. the result of all this research has been the development of nine distinct theories of customer satisfaction. while other theories have been introduced without any empirical research. The majority of these theories are based on cognitive psychology. some have received moderate attention. based on some relationship between the customer's perceptions and objective attributes of the product''.1 What is customer satisfaction? Customer satisfaction can be defined as satisfaction based on an outcome or a process. Thus. There is a link between customer retention and satisfaction. Social psychologists. loyalty and profitability and this is illustrated by Orr (1995). or outcome. p. 4) outcome definition of customer satisfaction characterizes satisfaction as the end-state resulting from the experience of consumption. p. This end state may be a cognitive state of reward. 21) defines satisfaction as ``the customer's subjective evaluation of a consumption experience. Others point out that both what is perceived (outcome) and what is expected are subjective and therefore psychological phenomena . and students of consumer behaviour. have extensively studied the concepts of customer satisfaction and dissatisfaction The increasing importance of quality in both service and manufacturing industries has also created a proliferation of research. While there is no guarantee that a satisfied customer will return it is almost certain that a dissatisfied customer will not return (Rama. 1994). Vavra's (1997. who states that the best way to get the repeat business that you need to be profitable is by loyal programmes. frequent-buyer clubs. an emotional response to an experience or a comparison of rewards and costs to the anticipated consequences. Klaus (1985. 2002). A minority of researchers perceives the satisfaction process to be subjective in expectations but objective in the perceptions of the product attributes. we can have satisfaction without loyalty. but it is hard to have loyalty without satisfaction (Alexandris. marketing researchers.not reality (Dick. . 2005). et al.3. 2.customer makes a commitment to the brand and returns to the same hotel whenever they are in the area. good service and fair prices.
1994). et al. Customers' perceptions of service is vital in identifying customer needs and satisfaction because the extent to which goods or services meet the customer's needs and requirements is the index by which quality is determined . As an illustration of how expectations can be explicitly manipulated Sasser et al. 1999). they are quite pleased to be seated earlier. To assess the quality of services and customer satisfaction there are several ways i. 1986). measures of quality. 2. p. If people are willing to agree to wait this length of time.3.e. It reinforces positive attitudes towards the brand. As mentioned above several studies have found that it costs about five times as much in time. Furthermore. through subjective. customer satisfaction is recognized as of great importance to allcommercial firms because of its influence on repeat purchases and word-of mouth Recommendations (Berkman and Gilson. which focus on perceptions and attitudes of the customer rather than more concrete objective criteria.Since both expectations and perceptions are psychological phenomena. (1979. they are both vulnerable to external influences and manipulation. money and resources to attract a new customer as it do to retain an existing customer (Ingram and Daskalakis.2 Service quality via Customer satisfaction: According to Vavra (1997) Customer satisfaction is the leading criterion for determining the quality that is actually delivered to customers through the product/ service and by the accompanying servicing. 89) note that: ``some restaurants follow the practice of promising guests a waiting time in excess of the ``expected time''. In simple terms customer satisfaction is essential for corporate survival. This creates the challenge of maintaining high levels of service. These soft measures include customer satisfaction surveys and questionnaires to determine customer attitudes and perceptions of the quality of the service they are receiving (Ingram and Daskalakis 1999). leading to a greater likelihood that the same brand will be purchased again. awareness of customer expectations and improvement in services and product. or soft. thus starting the meal with a more positive feeling'' (Dick.
while his secondary will be composed of everything else. such as the building. suggests that satisfaction with a service is a function of satisfaction with two independent elements. The functional element. . the food poor''. public telephones for guests' use. while the indirect services include the provision of parking facilities. There is no uniformity of opinion among marketing experts as to the classification of the elements in service encounters. Reuland et al. For example.Finding a strong relationship between satisfaction scores and performance does not ensure economic success. etc. and the environment. and new competition may emerge. etc. (1985) on the other hand. the lighting in the restaurant. (1985. the behaviour and attitude of the employees which are responsible for hosting the guest. Davis and Stone (1985. 2. the authors claim that restaurant clients are quite capable of having responses to each element that differ one from the other: ``The service was great. In the long run the level of satisfaction may decline. to prove the independence of the two elements from each other. 142) suggest that hospitality services consist of a harmonious mixture of three elements: the material product in a narrow sense which in the case of a restaurant is the food and beverages. As per the.29) divide the service encounter into two elements: direct and indirect services. most hospitality experiences are a fusion of products and services. environment. customers' attitudes and desires change. In a restaurant situation Lovelock's core will be composed of the food and beverage. etc. including service.3 Components of customer satisfaction: Unlike material products or pure services. the layout. Czepiel et al.3. the furnishing. serving the meal and beverages and who come in direct contact with the guests. p. concierge. direct services may be the actual check-in/checkout process in hotels. delivery element. p. Therefore it is possible to say that satisfaction with a hospitality experience such as a hotel stay or a restaurant meal is a sum total of satisfactions with the individual elements or attributes of all the products and services that make up the experience. Lovelock (2002) divides the service attributes into two groups: core and secondary.
2. Reuland and colleagues' product. When purchasing goods. i. as well as interactions. the food and beverage in the meal experience. Service quality has been discussed in only a handful of writings (Rama. and personnel. Examination of these writings and other literature on service suggest three underlying themes: • • • Service quality is more difficult for the consumer to evaluate than goods quality. Davis and Stone's direct.e. hardness. The essential attributes are identical to Czepiel's functional. 2005). and Lovelock's core. the consumer employs many tangible cues to judge quality: style. feel. colour. But while purchasing services fewer tangible cues exist. The subsidiary attributes are more comprehensive than Davis and Stone's indirect. and include such factors as: accessibility. or Lovelock's secondary. (2002) classifies the service encounter attributes in two groups: essential and subsidiary. Service quality perceptions result from a comparison of consumer expectations with actual service performance. High quality of service is considered an essential determinant of the long-term profitability not only of service organizations. Quality evaluations are not made solely on the outcome of a service: they also involve evaluations of the process of service delivery. equipment.1 What is service quality? Service quality is considered a critical determinant of competitiveness. Czepiel's performance delivery. convenience of location.Alexandris. but also of manufacturing organizations. they interact closely with various aspects of the organization. Study done by the Kandampully (2000) revealed that service quality is crucial to the success of any service organization. label. availability and timing and flexibility. Attention to “service quality” can help an organization to differentiate itself from other organizations and through it gain a lasting competitive advantage. In most cases tangible evidence is limited to the service provider’s physical facilities.3. This inside knowledge gives them the opportunity to assess critically the services . packaging etc. As the customers participate in the production and consumption of services.3.
Market research has shown that customers dissatisfied with a service will divulge their experiences to more than three other people. Zeithml and Berry (1985) revealed that the consumers used 10 potentially overlapping dimensions in assessing service quality fit. Hence. access. the assessment of the quality of a service is made during the actual delivery of the service ± usually an encounter between the customer and a service contact person. Since superior quality is one of the crucial factors within the control of the hospitality service provider. Balmer and Baum (1993). competence. Thus. reliability. These dimensions were tangibles. service quality plays a critical role in adding value to the overall service experience. remark that these ingredients change over time and are not likely to be the same in hotels of different star ratings.1. responsiveness. security.3. & Kandampully (2003) suggested that enhancing the quality of service at all levels of service delivery has therefore become mandatory for organization survival. Barker. Lee-Mortimer and Buxton (1991) contend that hotel star ratings tend to measure tangible quality. Lee. Customers will assess service quality by comparing the service they get with the service they desire. and this is reflected in the current interest in quality accreditation frameworks. Exploratory research of Parasuraman. which may affect guest satisfaction either selectively or by their absence. Although Johns (1996) asserts that service quality is both ephemeral and personal.3. in the same way as Herzberg’s (1959) hygiene factors or Maslow’s (1954) hierarchy of needs operate at different levels. 2. the research indicates that six times more people hear about a negative customer service experience than hear about the positive one. Many authors have tried to identify the tangible and intangible components of service quality. According to the Technical Assistance Research Project (TARP). it needs to be defined and characterized in order to be specified and delivered reliably in hotels. courtesy. communications and credibility. understanding/ knowing the customer.1 Service quality dimensions: In service organizations. “Service quality” affects the repurchase intentions of both existing and potential customers.provided in particular the quality of service. These dimensions were derived for SERQUAL scale to . it is reasonable to conclude that poor service will reduce the potential customer base.
Responsiveness which shows the willingness to help customers and provide prompt services. 2. Outcomes of the study outline the fact that although SERVQUAL could close one of the important service quality gaps associated with external customer services. i. The majority of the work to date has attempted to use the SERVQUAL methodology in an effort to measure service quality. and Parasuraman et al.4 GAPS model of service quality: SERVQUAL as an effective approach has been studied which analysis the difference between customer expectations and perceptions. While there has been an effort to study service quality. The service quality (SERVQUAL): Much of the contemporary theory considers service quality from the viewpoints of both provider and customer. Reliability which shows the ability to perform the promised service. Assurance which shows employees knowledge and courtesy and their ability to inspire trust and confidence. it could be extended to close other major gaps and therefore. but still there is no general agreement on the measurement of the concept. (1990) suggest that the criteria used by customers in moulding their expectations and perceptions fit five dimensions of service quality which have been already discussed above. Zeithaml et al. it could be developed in order to be applied for internal customers. employees and service providers. (1985) propose a model which enables perceptual gaps to be identified.e. personnel. In 1991. these authors developed this framework into the SERVQUAL scale which enables actual service delivery to be measured.serve as the basic structure of service quality domain and further reduced to just five generic dimensions of service quality (SERVQUAL) that must be present in the service delivery in order for it to result in customer satisfaction. equipment. . and written materials. Empathy which shows caring and individualized attention given to customers and finally tangibles which includes appearance of physical facilities.
The SERVQUAL approach is the most common method for measuring Service quality. . Gap2: Management perceptions versus service specifications: as a result of inadequate commitment to service quality. Gap6: The discrepancy between customer expectations and employees’ perceptions: as a result of the differences in the understanding of customer expectations by front-line service providers. In this case. inadequate task standardization and an absence of goal setting. word of mouth recommendation and past service experiences. inadequate upward communication and too many layers of management. customer expectations are influenced by the extent of personal needs. inappropriate supervisory control systems. Gap3: Service specifications versus service delivery: as a result of role ambiguity and conflict. The model is an extension of Parasuraman et al.According to Brown and Bond (1995). Gap5: The discrepancy between customer expectations and their perceptions of the service delivered: as a result of the influences exerted from the customer side and the shortfalls (gaps) on the part of the service provider. There are seven major gaps in the service quality concept. poor employee-job fit and poor technology-job fit. "the gap model is one of the best received and most heuristically valuable contributions to the services literature". lack of perceived control and lack of teamwork. Gap7: The discrepancy between employee’s perceptions and management perceptions: as a result of the differences in the understanding of customer expectations between managers and service providers. Gap4: Service delivery versus external communication: as a result of inadequate horizontal communications and propensity to over-promise. (1985) which discusses 7 major gaps below: Gap1: Customers’ expectations versus management perceptions: as a result of the lack of a marketing research orientation. a perception of unfeasibility.
we can therefore determine the level of satisfaction. perceive the level of service performance that meets their expectations will reflect on the quality of service provided by the organization. 2 3. The most important gap (Gap 5) is that between customer’s expectation of service and their perception of the service actually delivered. even though not completely. It also considerably eases the task of measuring service quality. in these case fast-food joint customers. The model suggested service quality as the gap between customer’s expectations (E) and their perception of the service provider’s performance (P). the service qualities score (Q) can be measured by subtracting customer’s perception score from customer’s expectations score: Quality score (Q) = P . According to Alexandris (2002). again. Without question.4. Parasuraman (1988) revised and defined the service quality in five dimensions. In order to do so. Serious action must be taken because how the customers. employers and customers. It also has the advantage of being less abstract. which is defined as perceived quality.2. Hence by referring to the gap model. and 4) within the organization that inhibit delivery of quality service. the service provider must close the four other gaps (Gap 1. Hence. assurance. This concept is quite similar with Parasuraman’s (1985) service quality model. it is important to manage the gaps between expectations and perceptions on the part of management. As discussed above Parasuraman (1985) defined service quality in ten major dimensions that consumers use in forming expectations about and perceptions of services. it states that a service marketer must close the customer gap (Gap 5). responsiveness. and tangibles. it is the logic that if we can measure the difference between expectations and perceptions. empathy. SERVQUAL has been widely .1 Measuring Service Quality Gaps: Alexandris (2002) suggested that what can be measured are the differences between the abstractions. In a later research. which applied the expectancy-disconfirmation theory.reliability.E Zeithaml and Bitner (2003) stated that in order to manage service quality. the gaps measurement may be a significant marketing tool. So.
Zeithaml. and Berry developed a generic instrument called SERVQUAL to measure service quality based on input from focus groups. Since 1988 Parasuraman. Consider the varying demand placed on a hotel: An airline stewardess may find the 24 hour room-service extremely valuable. 2.3 Other researches similar to this topic: As the service sector of the global economy grows. 1994.3. For instance. assessment. they recommended that researchers . 2001).applied and is highly valued. This approach can field very valuable insight about changing customer preferences. and Berry have made numerous changes to SERVQUAL. As a result. Identifying groups of customers who have similar preferences or even similar tastes (such as sharing common perceptions of quality or states). hotels can target promotions to capitalize on known characteristics and individualize the presentation. and improvement (Spohrer & Maglio. it also is used in a variety of organizational settings. including libraries and information centers (Kettinger & Lee. 2008). must be seen within this broader context of strong endorsement. some in response to problems identified by other researchers.4. a retired couple may need dietary menu options. 2. in 1994 they reported on three different SERVQUAL formats. and a young female executive considers a security a priority (Swift. Although SERVQUAL was developed within the marketing sector.2 Priority Marketing: Priority Marketing focuses on what’s important to the customer. and globally have become larger portions of company revenue streams. Service products distributed regionally.4. accurate and reliable instruments that assess service quality are of great interest to companies whose revenues come from service delivery. Nitecki. Zeithaml. Any critique of SERVQUAL. a tour wholesaler may favor low prices.1 Service Quality: In 1988 Parasuraman. 2. the study of services and innovation are becoming increasingly important. nationally. knowledge-intensive business services aimed at enhancing performance require reliable methods of measurement.4. therefore. 1996). Perhaps the most popular and widely used service quality instrument is SERVQUAL. Hotels should break down their services and ask customers what is important to them. It is important that hotels involve their guests and stay in touch with customer perceptions of current services.
and Carr (2002) used four dimensions in their study. These two issues are resolved if one follows Cronin and Taylor (1992). Kappelman. They suggested that direct measures of disconfirmation are more important than expectations. it is appropriate to calculate service quality by subtracting expected from perceived service. and Teas (1993). Still. who recommended that expectation ratings be eliminated altogether. Nitecki (1996) proposed a three-dimensional SERVQUAL model. as opposed the five dimensions proposed by Zeithaml. other studies suggested that SERVQUAL has unstable dimensions. 1992). Van Dyke. The performance only approach to service quality utilizes the five of the seven SERVQUAL dimensions— the five performance dimensions. others disagree about whether the service quality should be the difference between expected and perceived service. Researchers have continued to use SERVQUAL instruments. Performance alone provides better predictive validity than SERVQUAL which is gap-based (Brady. Churchill. One then achieves an overall measure of service quality by averaging the scores of all items (Brown. Boulding. as did Landrum and Prybutok in 2004. Parasuraman. When Cronin and Taylor (1992) compared SERVPERF to SERVQUAL.use a format that separated customer expectation scores into tolerance zones. this procedure gives also rise to two issues: the first is disagreement over what really is being measured in SERVQUAL with expectations and the second is the problematic nature of the resulting difference scores. For example. Bolton and Drew (1991) stated that assessments of overall service quality are affected only by perceptions of performance levels. and Zeithaml (1993) also suggested that perceptions alone influence overall service quality. As we have noted. called this performance only subset instrument SERVPERF. and Berry (1988) stated that since service quality depends on the relationship of customer expectations with customer perceptions. while in 2002 Banwet and Datta measured IT service quality in a library service. and Prybutok employed SERVQUAL in an IS context. Parasuraman. & Brand. Cronin. these issues are all resolved if customer expectations are eliminated from the model. while Landrum and Prybutok (2004) used five. some researchers question the appropriateness of using SERVQUAL in an IS or IT context. Jiang. their results supported the dissenters: performance scores alone account for more variation in service quality than performance minus expectations. & Peter. Cronin and Taylor (1992). In 1997. Furthermore. Zeithaml. In addition. Liljander (1994) states that there is more support for performance only models than for the disconfirmation model of service quality. Kalra. However. 2002. Staelin. Cronin & Taylor 1992) and other studies show that . Klein. and Berry in 1990.
The notion of "fast" food reflected American culture in which speed and efficiency are highly prized. & Zhang. Prybutok. Traditionally. and assurance dimensions overlapped in this particular service domain. they concluded that responsive. we used only performance scores to perform analysis on the five SERVQUAL service quality dimensions. with times due to increasing awareness and influence of western culture. Nitecki and Hernon (2000) used SERVQUAL to assess library services at Yale University and found that among the five dimensions of SERVQUAL. Strutton. They found that SERVQUAL displayed three responsive dimensions.6 A brief review of fast-foods: Food diversity in India is an implicit characteristic of India’s diversified culture consisting of different regions and states within. “Fast-food chains initially catered to automobile owners in suburbia. The baby boom subsequent to world war second. & Zhang.5 The start of fast food culture: The concept of fast food pops up during 1920s. (1988). Indians like to have home-cooked meals – a concept supported religiously as well as individually.” 2. However. rather than the five dimensions originally proposed by Parasuraman et al. Kappelman. Prybutok.The 1950s first witnessed their rapid proliferation. there is a slight shift in .” Cook and Thompson (2000) investigated the reliability and validity of SERVQUAL instrument in the context of library service. Based upon these findings. respondents considered reliability the most important and empathy least important among the five quality dimensions (Landrum. Brady et al. 2008). 2. Landrum & Prybutok 2004. We next discuss adapting the SERVQUAL instrument to library information services because the test facilities were designated by the US Army Corps of Engineers as “libraries.performance scores alone exhibit better reliability and validity than difference scores (Babakus & Boller 1992. 2008). empathy. The construction of a major new highway system. Several factors that contributed to this explosive growth in 50’s were: • • • • America’s love affair with the automobiles. 2002. Landrum. The development of sub-urban communities. As a result..
fast food is perceived expensive besides being out-of-way meals in Indian culture. French-fries. on the bus. hot dogs. • • • The variety of foods and beverages is usually very limited Fast food frequently does not come with knives and forks. etc. park bench.5. The best way to distinguish fast foods is to use formal characteristics: • Time required . Liberalization of the Indian economy in the early 1990s and the subsequent entry of new players set a significant change in lifestyles and the food tastes of Indians. In particular.1 What is Fast food?: The term "fast food" means just that. . in the age group of 20-30 years. Fast food is one which gained acceptance of Indian palate after the multinational fast food players adapted the basic Indian food requirements viz. Multinational fast food outlets initially faced protests and non-acceptance from Indian consumers. vegetarian meals and selected non-vegetarian options excluding beef and pork totally from their menu. In addition. This was due to primary perception that these fast food players serve only chicken and do not serve vegetarian meals. However. fish and chips. making it "finger food. this study has its focus to understand the factors affecting the perception of Indian youth. fast food industry is getting adapted to Indian food requirements and is growing in India." When silverware. It is gaining acceptance primarily from Indian youth and younger generations and is becoming part of life. 2. the boundary between fast foods and traditional dishes is fluid. patties. Today. cups and plates are necessary. It started with eating outside and moved on to accepting a wide variety of delicacies from world-over. and if necessary will eat standing or walking.food consumption patterns among urban Indian families. or at work. they are disposable. it's difficult to provide a qualitative distinction because fast foods can also include salads and fruit in addition to classic offerings such as hamburgers. towards consumption of fast food as well as towards making choice of fast food outlets.those who eat fast foods do not want to spend a lot of time selecting and eating. sandwiches. Keeping in view the Indian habits and changing preferences towards food consumption.
These characteristics readily illustrate the difference from traditional dining culture. From onion rings to double cheeseburgers. fast food is one of the worlds fastest Growing food types. or for consumption elsewhere. and the silverware and plates are disposable. prepared and served quickly”. and readily available alternatives to home cooked food. stirred. etc.The characteristics of fast food. . sugar. There are three general categories of fast food businesses: • • Self-service restaurants with a fast-food palette. This is incorrect since convenience products are often eaten at home. They require active participation because they must be heated. fat. fast foods are typically high in calories. such as hamburgers and fried chicken. and salt. reasonably priced. offer a limited selection. are that they require little time. baked. • In Data Monitor’s (2005) survey the fast food market is defined as the sale of food and drinks for immediate consumption either on the premises or in designated eating areas shared with other foodservice operators. Fast foods are quick. • As per “the free dictionary” fast food is “inexpensive food. Many other definitions are proposed for fast foods in the literature. therefore. Take-out businesses that sell ready-to-eat foods and beverages "on the street corner" Hotdog stands and snack stands with counters or a pair of stand-up tables. suppliers tend to specialize in products such as hamburgers. are finger food. Many people equate fast foods with convenience foods. or sandwiches”. pizzas. and are supplemented with other foods.. chicken. thawed. saturated fat. While convenient and economical for a busy lifestyle. A few of these are mentioned below: • Fast food have been defined by Bender and Bender (1995) as a “general term used for a limited menu of foods that lend themselves to production-line techniques.
exposure to global media and Western cuisine and an increasing number of women joining the workforce have had . Nirula’s was a popular domestic fast food provider for eating-out. The percentage share held by foodservice of total consumer expenditure on food has increased from a very low base to stand at 2. Ice Cream Parlours. Today Wimpy has 8 outlets in the capital city New Delhi and it is expanding its menu with Indian dishes with a view to attract. Pastry Shops and Food Processing Plants in India. The growth in nuclear families. eating out was looked down upon in Indian society. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society. The chain with over 60 outlets operating in five states successfully caters to the Indian palate of over 50. not much research literature is available on fast food preferences of consumers’ especially young consumers in India. sandwiches etc. particularly in urban India. Waiter Service Restaurants.6 Fast food industry in India: According to worldwatch. Fast food is a very fast growing industry in world as well as in India especially in urban areas (small and large cities). Organization prospective (Fast food industry) 2. However. Established in 1934. Traditionally. Wimpy was another fast food provider besides Nirula’s in Indian market.6% in 2001.org. Wimpy used to be visited by foreigners in India. Wimpy was the only multinational fast food outlet in India before 1990s with one outlet in New Delhi. use. Nirula’s today is a diversified group having a chain of Elegant Business Hotels.• According to Merriam-Webster online dictionary fast food is “designed for ready availability.000 guest everyday for over 70 years. India’s fast-food industry is growing by 40 percent a year and supposed to generate over a billion dollars in sales in 2005 as per their estimates. Family Style Restaurants. pizzas. Before the entry of multinational fast food outlets. In the initial years of its operations. Nirula’s started with ice-cream parlours and later moved on the range of fast food including burgers. Indians were occasional visitors. or consumption and with little consideration given to quality or significance”.
And very often. fast food giants. restaurants etc. takeaways are becoming increasingly popular . And very often. The percentage share held by foodservice of total consumer expenditure on food has increased from a very low base to stand at 2. Not surprisingly. eating out is becoming synonymous with entertainment. Not surprisingly. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society.6% in 2001. particularly in urban India. are in planning or construction stage across the country. Traditionally. India is placed at the second rank in the 2004 global retail development index an annual ranking of retail investment attractiveness among 30 emerging markets. The growth in nuclear families. exposure to global media and Western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends. eating out is becoming synonymous with entertainment.an impact on eating out trends. multiplexes. it is preferred as a time-saving option to cooking. eating out was looked down upon in Indian society. it is preferred as a time-saving option to cooking. takeaways are becoming increasingly popular India is among the top three countries globally having highest number of people in the spending capacities in the age group of 25-49 yrs. The lack of consolidation and model retail concepts in India presents better opportunity to global players. Over 400 shopping malls. Increasingly. Increasingly.
are in planning or construction stage across the country Facts & figures: Fast food is one of the worlds largest growing food type. restaurants etc.India is among the top three countries globally having highest number of people in the spending capacities in the age group of 25-49 yrs. foreign investment in this sector stood at Rs.000 million. Pizza hut is also catching up and it has planned to establish 125 outlets at the end Subways has established around 40 outlets Nirulas is established at Delhi and Noida only. In last 6 years.1. India’s fast food industry is growing by 40% a year and is expected to generate a billion dollars in sales by 2005. India is placed at the second rank in the 2004 global retail development index an annual ranking of retail investment attractiveness among 30 emerging markets. However. 6 bn. a figure expected to zoom to Rs. the value of Indian dairy products is expected to be Rs. Because of the availability of raw material for fast food.000 of 2005. guests everyday. Over 400 shopping malls. By 2005. Market size & major players: • • • • • Dominated by McDonalds having as many as 75 outlets. fast food giants. 3600 million which is about one-fourth of total investment made in this sector.70 bn by 2005. Domino’s pizza is present in around 100 locations. Major players in fast food are: • • • • MCDONALDS NIRULAS PIZZA HUT DOMINOS PIZZA . The lack of consolidation and model retail concepts in India presents better opportunity to global players. 00.The multinational segment of Indian fast food industry is up to Rs. Global chains are flooding into the country. multiplexes. it claims to cater 50.
Within nine . Pizza Hut and Dominos are doing more business than Pizza Corner.Multinational fast-food companies have given domestic competition a run for its money. While McDonalds sells more than Nirulas.
Another key reason behind the success of multinationals is the ability to attract youngsters. The main reason behind the success of the multinational chains is their expertise in product development. the multinationals have grown at a faster pace than their Indian counterparts. is known to appeal more to the 30-plus consumer. According to industry estimates.25 billion). Also. sourcing practices. a strength that they have developed over years of experience around the world. service levels and standardized operating procedures in their restaurants. The challenge for the home grown chains is also to reinvent themselves to appeal to the younger consumer. We have applied our learning experience from other countries in all the processes including consistency. While McDonalds has been able to attract people below 30. marketing. distribution and training to the local market conditions. which has been present in the country since 1934. could only garner Rs 100 crore (Rs 1 billion) turnover. However.years of their existence in India since 1996. for example. the home-grown Nirulas. Pizza Hut. It's now that the domestic chains have realized the importance of such practices. Multinational chains like McDonalds and Pizza Hut are still on a learning curve trying to customize their menu to the Indian taste and food preferences. while McDonald's clocked a turnover of about Rs 125 crore (Rs 1. The home grown chains have in the past few years of competition with the MNCs. learnt a few things but there is still a lot of scope for improvement. the domestic chains are at an advantage since they understand the Indian consumer behaviour and eating habits and their product offerings have been tailored accordingly. launched its masala range of .' Nirulas. Dominos is targeting the 'convenience-seeker. in 2001. on the other hand. Nirulas is thus beefing up its organizational structure. quality standards. Nirulas has launched its '21' range if ice cream cafes to attract the younger lot. Small wonder. both Dominos Pizza Hut and Dominos clocked a turnover of about Rs 60 crore (Rs 600 million) but Pizza Corner lagged behind with a turnover of Rs 25-30 crore (Rs 250-300 million).
pizzas and also opened the world's first 100 per cent vegetarian outlet in India. the company operated company-owned outlets and then moved on the franchisee owned restaurants. the survey results indicate that Indians (66 percent) are . By 2000. success of existing fast food outlets and entry of more is inevitable (Gupta. has launched its peppy paneer pizza keeping in mind the Indian taste buds. Domino’s had presence in all the major cities and towns in India.000 crore (Rs 360 billion). The food service market in India is estimated to be around Rs 36. It has 50 outlets in North India and 76 in total all over India. Fast food consumption patterns: According to the findings of the recent online survey from AC Nielson (India) being at the seventh place. McDonald’s signed two joint ventures – one with Amit Jatia and another one with Vikram Bakshi in April 1995. Identifying the drivers for preference of one-brand over another. on the other hand. Besides these. Kentucky Fried Chicken (KFC) also entered the Indian market and opened its first outlet in Delhi.6 Indian consumer: After the liberalization policy that came in force in 1991. It aims for 100 outlets by the end of 2006. 2003). Over 70 per cent of urban Indians consume food from take-away restaurants once a month or more frequently. With changing life style and aggressive marketing by fast food outlets. Initially. 2. therefore. Domino’s. Pizza Hut and Nirula’s are the most popular and frequently visited fast food outlets. Survey indicates that Pizza Hut is the most preferred fast food outlet in India. fast food is also becoming popular in small towns. Pizza Hut entered India in June 1996 with its first outlet in Bangalore. In 1995. This segment is witnessing high growth of around 25-30 per cent per annum so the market has a lot of potential to grow. The first outlet was opened in New Delhi.000 crore (Rs 10 billion). Domino’s had grown from one outlet in 1995 to 101 outlets in April 2001. Domino’s set up base in India by entering into a longterm franchisee agreement with the Bhartia Brothers who had businesses in chemicals and fertilizers. of which the urban fast food quick service restaurants is around Rs 1. there are Pizza Express and Pizza Corner of which are not so popular. Domino. fast food industry grown in India as multinational fast food providers have set up their business either jointly with Indian partners or independently. McDonald’s. In 1996. is among the top ten markets for weekly fast food consumption among the countries of Asia-Pacific region. KFC has limited outlets and has faced number of problems since entry in India.
A total of 24 per cent of Indians use the quality of service as a decision making criterion to purchase a fast food brand’s offering and 22 percent rely on their perception of whether a take-away brand offers them healthy food options. In addition to the factors considered for choosing a fast food outlet. In Indian context. Recent news article by Barker (2006) indicates that Indians are facing the problem of obesity and among kinds of food – fast food is one of the reasons for the same. there are research studies towards the nutritional value of fast food. but they were fattening and contained harmful additives. There are special health related magazines that are now very popular. vegetables. Kara et al. and health shows on television. there is high concern towards health in twentyfirst century. A survey of more than 9. quality and taste are considered by Americans and preference is given to nutritional value and seating capacity by Canadians in identifying fast food restaurants. quality and service. delivery service and location in America and for price and novelties in Canada. According to their study. 2005). fats.amongsts the consumers who consider hygiene and cleanliness their most important criterion for selection. added sugars and proteins than those who do not (Bowman. These findings further indicate that although the consumers perceive the nutritional aspects of fast food meals to be important. nutritional value. In the age group of 46 years to above 55 years cleanliness. Americans preferred for speed and friendly personnel whereas Canadians looked for speed. However. Brown et al. Adams’ (2005) paper outlines the bases for establishing fast food industry responsible for obesity as articulated in litigation against fast food chains in US.000 consumers nationwide in US has shown that about 25 percent of those who eat fast foods and drink sugary. (1995) has presented the consumers’ perceptions of and preferences for fast-food restaurants in the US and Canada. there is gap of a particular research in Indian context . (1980). carbonated soft drinks generally consume more calories. In the middle age group of 25 to 45 years. price. water and to consume less or nil of junk food including fast food being high on fat and calories. (2000) emphasized the need for nutritional awareness and fast food preferences of young consumers during adolescent years. they often ignore the aspects in practice. Health related articles do mention to consume more fruits. the consumers in the age of 12 to 24 years look for variety. Davies and Smith (2004) have analysed the importance of nutritional values of fast food and also information printed/disclosed by the fast food providers in London. According to the study of McNeal et al. respondents felt that meals were moderately nutritious and a good food buy. carbohydrates. There are health related articles in daily newspapers.
sample selection procedure..2 Research Design: After having defined the marketing research problem and developed a suitable approach. research hypothesis and a review of the chosen research approach. genetically modified food may take the place of fast food of today (Onyango et al.1 Introduction: This chapter includes data sources. According to (C. CHAPTER. Sharma. 2005). 2004. models.to have a link between the health problems and fast food consumption. which will provide pertinent information. 2004) when defining research design. he presents it simply as the framework for a study used in order to guide the collection . attention must be given to the formulation of a detailed research design.R. The meaning of service and service quality has been discussed elaborately.3 RESEARCH METHODOLOGY 3. Market research study has been conducted in order to know about the customers’ preferences and hospitality that they want from the fast food joints. Kothari. In future. 3.
Even though exploratory and conclusive research has distinct purposes. as all customers have different perceptions about what contributes to good “quality”. 2) which have been undertaken as a primary research in this project. There are several ways to assess the quality of services and customer satisfaction through subjective. According to Kothari (2003). and levels of quality offered within service industries. which are required to be taken in a chronological order. measures of quality. . or soft. It is true to say that all guests within a fast-food chain have different perceptions on the quality of their stay. they both consist of the same research components. which is concerned with the development of initial hunches or insights and conclusive research which intends to verify insights and help decision makers to select a specific course of action. 1997. there are two major types of research design: Exploratory research.and analysis of data. customers' perceptions of service is vital in identifying customer needs and satisfaction. In this section I have first explained about research philosophy and approaches. In the later part of the chapter a brief and detailed overview of the research design and methodology used by me for this dissertation are provided. but fast-food joints are continually determined to monitor customer feedback in the light of improving service.3 Research process: The research process is carried out according to a designated series of steps. Fundamental to the success of any research project is sound research design. 3. These soft measures include customer satisfaction surveys and questionnaires to determine customer attitudes and perceptions of the quality of the service they are receiving (Hayes. It is the framework or plan for a study that guides the collection and analysis of data. p. which focus on perceptions and attitudes of the customer rather than more concrete objective criteria. Because the extent to which goods or services meet the customer's needs and requirements is the index by which quality is determined. It has been noticed that measuring customer satisfaction has become increasingly difficult.
3.4 Nature of the study: This study is exploratory.
Exploratory Research: According to Kothari (2003), the primary purpose of exploratory research is to shed light on the nature of situation and identify any specific objective or data needs to be addressed through additional research. Exploratory research is the most useful when a decision maker wishes to better understand situation, identify relevant courses of action or gain additional insights before an approach can be developed. In general, exploratory is appropriate to any a problem about which little is known. The research design used for this project is exploratory in nature. The major emphasis is on the discovery of ideas. The exploratory study is also used to increase the analyst familiarity with the problem under investigation.
3.5 Data required: Basically, all data are collected by the questionnaire from different consumers related to this study. • Sample size: 96
3.6 Data Collection: Basically, primary and some secondary data are considered for this syudy. • • Primary Data: Primary data has been collected through surveyed to the consumer. Secondary data: Secondary data has been collected from the company’s information brochure and internet.
3.7 Location of data: Delhi (Capital of India)
CHAPTER.4 INTERPRETATION AND ANALYSIS OF DATA
4.1 Analysis of questions based on questionnaire: Based on the questionnaire filled by the 96 respondents, all data is collected and put in the proper format of analysis. Below, in sequence as questions in questionnaire are analysing.
4.2 .1 How frequently do you go to restaurants? Based on the table.1 given below, It is indicating that the out of 96 respondents; maximum 44 go to restaurants in some special occasion and minimum 6 go everyday. In holidays and weekends, 31 and 6 respondents visit in restaurants. It means, special occasions and holidays play an important role in fast food related business in Delhi (India). Attributes Holidays Special occasion Weekends Everyday No. of Respondents 31 44 15 6 Percentage (%) 32.3 45.8 15.6 6.3
Table.1 Distribution of respondent’s feedback
Figure.1 Respondents feedback in Pie chart 4.2.2 Which restaurants do you go to?
The question related to choice of restaurants in Delhi asks by the respondents based on questionnaire. Based on the table.2 and figure.2 given below, indicating that the out of total respondents, 32 prefer to go in McDonalds, maximum 37 in Nirulas, 17 in Pizza hut and rest of the respondents in some other fast food chain restaurants. It means, the Delhi’s consumers prefer to go Nirulas first and McDonald comes second as per the respondent’s feedback. It may be some other attributes / things consist in Nirulas as compare to McDonalds in Delhi.
Attributes McDonalds Nirulas Pizza hut Others Total
No. of Respondents 32 37 17 10 96
Percentage (%) 33.3 38.5 17.7 10.4 100.0
out of 96 Respondents.3 and figure. As per the table.1 13.5 100.3 Distribution of respondent’s feedback about choice of restaurants .4% of Respondents prefers quality.5% prefer a homely atmosphere when they are in the Restaurant. Attributes Quality Better service Homely atmosphere Total No.0 Table. of Respondents 57 26 13 96 Percentage (%) 59. 59.2 Distribution of respondent’s feedback about choice of restaurants Figure.1% of Respondent wants to have a better service in the Restaurant and only 13.4 27.3. whereas 27.Table.2.2 Respondents feedback shown in Pie chart 4.3 What drives you to go to this restaurant? Quality is the one of the most potential driver in this business.
2.3 Respondents feedback shown in Pie chart 4. the service standard set by the McDonalds is at par as compare to other restaurants in Delhi. Satisfaction of service of others Yes No Total No.4 Are you satisfied with the present service provided by the Restaurant? Based on the table given below indicating that the out of 96 respondents taken for sample. only 29 satisfied with the service quality of other restaurants except McDonalds and rest respondents are not satisfied by the service of other.Figure. of respondents 29 67 96 Table. It means.4 Distribution of respondent’s feedback about service by other restaurants .
respondent’s feedback about service provide by the other restaurants 4.0 Table. it can be seen that out of 32 Respondents. However.1 3. most respondents (68.4 In pie chart.4.8% thinks that restaurant’s counter takes 2 – 5 minutes to book the order whereas according to 25% of Respondent it takes less than 2 min to place an order.8%) give the order between 2-5 minute in McDonalds and rest of the respondents comes above and below of this span. Order placing time <2 min 2-5 min 5-7 min 7-10 min Total No.2.1% of Respondent believes that it takes 5-7 min or 7-10 min to place an order at the counter. It means.8 3.5 Respondents order placing time span in McDonalds . of Respondents 8 22 1 1 32 Percentage (%) 25.1 100. only 3.e.4 and figure.5 What is the time taken at the counter to book your order? From table.Figure. 68. majority of Respondent i.0 68.
10-15 mins.4 34. Here.4% of Respondents.1 3. 3.4%.6 shows that according to 59.2.Figure. 5-10 mins. the restaurant takes less than 5 min to deliver the order whereas 34.0 .1% and 3.1% of Respondent believes that it takes 5-10 min. Service quality of McDonalds is very good as compare to other fast food chain in India. Total No. Delivery time <5 mins. The table. of Respondents 19 11 1 1 32 Percentage (%) 59. >15 mins.6 How much time do they take to deliver your order? This question was asked to the Respondents to know the time taken by the Restaurant to deliver the order.1 100.5 Bar chart of respondent feedback order placing time span 4.4 3. 10-15 min and more than 15 min respectively. 19 respondents said that the less than 5 minutes take to deliver the order because the front office is managed properly for consumer’s facility.6 and figure.
Table.3 9.7 that the maximum 17 respondents out of 32 are saying good. Secondly.1 31. Rest out of 5 respondents.3 53.7 & figure. 10 respondents said very good hospitality provide by the McDonalds.4% in overall respondent’s feedback.7 What is your view about the hospitality provided by this Restaurant? Feedback taken by the respondents based on the hospitality provided by the McDonalds. It is clear from the table.0 Table.4 100. It may due to well structured planning managed and execute by the top management for customers. of Respondents 2 17 10 3 32 Percentage (%) 6.6 Delivery time span answered by respondents at McDonalds Figure.2. 6 Bar chart of respondent’s feedback about delivery time 4. 3 said excellent and 2 said average hospitality provide by the McDonalds to the customers.7 Respondents view towards hospitality by McDonalds . Hospitality Average Good Very good Excellent Total No. Both total (Good & Very good) contributing 84.
2.5% of Respondent are moderately dissatisfied and only 9.9 12. While 12.4% are extremely dissatisfied with the food and services of McDonald’s. While 21.7 Respondents view towards hospitality by McDonalds In bar chart 4.Figure.8 and figure. total 19 respondents (Including Extremely Satisfied & Moderately satisfied) i.5 9.0 . 59. Attributes Extremely Satisfied Moderately satisfied Moderately dissatisfied Extremely dissatisfied OK Total No. 21.4 18.9% are moderately satisfied and 18.5 21.8 100.8% are ok with the food.e. of Respondents 12 7 4 3 6 32 Percentage (%) 37.8 What is your satisfaction level with McDonald's? Table.8 showing the satisfaction level of respondent.9 % of respondents said dissatisfied (Moderately dissatisfied & extremely dissatisfied).4% respondents are satisfied. services and other attributes of McDonald’s. At last.5% of respondents are extremely satisfied. Out of 32 respondents. 37.
e.0 14.0 Table.7 25.9 & figure.6 100. of respondents 18 40 24 14 96 Percentage (%) 18. 18 respondents have excellent and rest 14 respondents have poor level of understanding.9 What is the level of understanding of service problems of the customers? Level of understanding of service problems of the customers is one of the important attributes in service industry.9 given below.9 Level of understanding of respondents . Finally. 40 respondents understand the service problem and their level of understanding is very good.8 41. we can say that the 83.8 Respondents view towards hospitality by McDonalds in bar chart 4. 25 % of respondents or 24 respondents out of 96 have average.Table.2. As per the table.8 Respondents view towards hospitality by McDonalds Figure. is indicating that the 41.5 % respondent’s level of understanding of service problem comes under excellent to average. Attributes Excellent Very good Average Poor Total No.7 % of respondents i.
of factors Service. price & location is an vital part in selection while 37 or 38. Comb.9 Bar chart of level of understanding of service problem 4. price.0 .5 % 0f respondents tell that the service. tangible and intangible factors play an important role in selection of restaurants. promotion & location Price. location.10.5 11 96 11. Based on the table. price & location Service.10 Which are the combination of the factors do you thing very vital while you select a particular fast foods? Many. Factors like service quality. location & promotional activity by the done/ provide by the restaurant attract/ repeal the customers.10 & bar chart. location & promotion activity. Rest. 11 respondents focus on price.2. 50% of total respondents give the feedback that they think service.e. promotion Total No. of respondents 48 37 Percentage (%) 50 38.Figure. promotion & location is vital things.5 100. price. price. it is indicating that the highest 48 respondents i.
Respondents feedback for why the prefer to go McDonald that 17 i.10 Combination of factors in a restaurant for customer selection Figure.5 100. McDonald set itself as a dominating player in Indian fast food industry. Based on the respondent’s feedback.11 Preference factors for choosing McDonalds .Table.e.1 12. of respondents 4 7 17 4 32 Percentage (%) 12. Preference Service differentiation Product differentiation Price Promotion Total No.1 % of respondents prefer for price factor. Price & Promotion).2.11 why do you prefer McDonald's? In all arenas ( Service differentiation.10 Bar chart of respondents feedback toward combination of factors 4. Product differentiation. 53.0 Table. 7 for product differentiation & rest 4 each for service differentiation & promotion done by the McDonalds. it is clear that the price is one of the major factor in decision making.5 21.9 53.
2 13.12 Respondents preference other than McDonalds . it is indicating that the out of total respondents.12 and figure.e 47 respondents frequently go to other restaurants except McDonald.12. 29 respondents go occasionally.5 100. 49 % of respondents i.2. Respondents preference factors for choosing McDonalds 4. Time span Regularly Frequently Occasionally Rarely Total No. 13 go rarely and rest 7 respondents go regularly.11 In pie chart.12 How frequently do you visit any other restaurant except McDonald's? Based on the table.0 30. Based on the data given in the table tells that the respondents are not too much brand loyal and other restaurants except McDonalds also attract customers.3 49.Figure. of respondents 7 47 29 13 96 Percentage (%) 7.0 Table.
2.Figure. Nirulas and Pizza Hut? Ambience is one of the major factors in restaurants because customers want to feel something different while in the restaurants. highest 371 respondent’s rank Pizza Hut first after that McDonald comes second with 330 respondents.12 Respondents preference other than McDonalds in Pie chart 4. as cumulative score of all respondents. Finally.13. it can be say that the ambience factor of Pizza Hut is most like by the respondents. Based on these factors. Nirulas comes third with 262 respondents & last others come fourth with 204 respondents.13 How do you evaluate at the various aspects of McDonald's.1 Respondents Ambience Score (Cumulative) . Ambience Score (Cumulative) McDonalds Nirulas Pizza Hut Others Respondents 330 262 371 204 Table.
Cleanliness Score (Cumulative) McDonalds Nirulas' Pizza Hut Others Respondents 374 325 364 251 Table. Based on the data of table. 374 respondent ranked McDonald’s as first for its cleanliness and second being the Pizza Hut having 364 respondent while Nirulas comes in third with 325 respondent and fourth being the Others with 251 respondent. McDonalds come in first in cleanliness because due to this factor put in its one of the important priority.2 Cleanliness Scores (Cumulative) of different restaurants .2.e.13. it can be seen that majority of respondent i.13.13.1 Ambience Score (Cumulative) in vertical bar chart Cleanliness is a very important factor for restaurant to attract the customers.Figure.2 and figure.13.
2 Cleanliness Scores (Cumulative) of different restaurants Employee behaviour toward the customers is another most important factor to maintain and retain customers.3 Employee Behaviour Scores (Cumulative) of different restaurants .3 showing the cumulative scores of employee behaviour of different restaurants. Table 13. it is seen that the top fast food restaurants employee behavior is most appreciable and have much patience not for job security but also for brand value. McDonald’s comes in first with 379 respondent and pizza Hut being the second with 361 respondent whereas Nirulas ranked third with 312 respondent and Others being the fourth having 247 respondent. Mostly.13.13.Figure. Employee Behaviour Score(Cumulative) McDonalds Nirulas' Pizza Hut Others Respondents 379 312 361 247 Table.3 and figure 13.
Rest other restaurants comes at fourth with 226 score.3 Employee Behaviour Scores (Cumulative) of different restaurants As per the table.13.13. Best space management is also an attractive and magnetic factor for customers that focused the attention and feel more comfortable.13.4. it is clearly indicating that the only Nirulas is best managed in its space as basis on respondents feedback while McDonalds come second with 340 cumulative score and Pizz Hut stood third with 328 score.4 and figure. Space Management Score(Cumulative) McDonalds Nirulas' Pizza Hut Others Respondents 340 372 328 226 Table.Figure.4 Space Management Scores (Cumulative) of different restaurants .13.
4 Space Management Scores (Cumulative) of different restaurants Menu composition tells that the how much a particular restaurant is diversified in food items and makes customers more choose. Finally.13.Figure.13. it is indicating that the Nirulas comes second in menu composition with 359 cumulative score. Pizza hut fourth with 306 score. Menu Composition Score(Cumulative) McDonalds Nirulas' Pizza Hut Others Respondents 331 359 306 374 Table.5 Menu Composition Scores (Cumulative) of different restaurants . other restaurants comes first in menu composition with highest score 374. McDonalds third with 331 cumulative score. Based on customer response taken by the structured questionnaire.
5 Menu Composition Scores (Cumulative) of different restaurants 4.0 Figure. 42.14 What do you have to say for happy hours concepts in McDonalds? The respondent feedback for the happy hour concept by the McDonalds is highly appreciable because 41 respondents i.13. Happy hour feedback Excellent Good idea Does not matter Poor Total No. 12 said poor concept introduce by the McDonalds.2. But only 18 respondents show no interest in this concept whereas. of respondents 41 25 18 12 96 Percentage (%) 42.8 12.0 18.7 % of respondents said excellent and 26 % of total respondent remark as good idea.Figure.14 Respondents feedback for McDonalds happy hour concept .7 26.5 100.e.
15 Respondents suggestions for improve in service quality .0 100.Figure. of Respondents 23 73 96 Percentage (%) 24. respondent’s feedback for McDonald’s happy hour concept 4. Because 76% of respondents does not give any suggestion for it due to at par service quality provided by the McDonald’s but rest 23 respondents out of 96 said yes. Suggestions for service quality Yes No Total No.0 76.2.15 The suggestion asked by the respondents for improvement in service quality provided by the McDonalds is not very satisfactory for it.0 Table.14 In bar chart. As per the suggestions given by the respondents want to change the service quality because in the front counter sometimes there are a long queue for giving order and some suggestions for proper space management.
0 100 Table.4.16 Which similar restaurant you think has the best service quality and why? In previous question 2.4. It means the service quality provided by the McDonalds is not at top as compare to brand and some other local restaurants.15 Respondents suggestions for improve in service quality in bar chart 2. only 23 respondents gave some suggestions for improve in service quality. of Respondents 11 9 3 23 Percentage (%) 47.15. Then out of 23 respondents.1 13.Figure. By asking which other restaurants except McDonalds provide good service quality. 9 Nirulas and rest 3 respondents favour for local unbranded restaurants.8 39. Restaurants Pizza hut Nirulas Other (Local) Total No.16 Respondents feedback for service quality . 11 said Pizza hut.
17 Would you recommend McDonald's to your friends and relatives? This question was asked to the respondent whether they like to recommend McDonald’s to their friends and relatives.13 and figure. Respondents feedback for service quality 4. while only 14 respondent says probably no and 2 respondent definitely no that they will not recommend McDonald’s to their friends and relatives. Attributes Definitely Yes Probably Yes Probably No Definitely No Total No.13 shows that out of 98 respondent 60 respondents says definitely yes and 22 respondents says probably yes that they will recommend McDonald’s to their friends and relatives. The result showing in table.2. of respondents 60 22 14 2 98 .16 In Pie chart.Figure.
whose order time interval lies within two minutes got delivery less than 5 minutes. whose order period comes in 7-10 minutes. indicating that the 5 respondents. 6 respondents got in 5-10 minutes.3 Comparative analysis of order & delivery time: Out of 32 respondents who visit McDonalds. single respondent got delivery in 10-15 minute whose order period is lying between 5-7 minutes. receive delivery more than 15 minutes. Order placing time/ Delivery time < 5 minutes 5-10 minutes 10-15 minutes <2 min 5 2 1 2-5 min 2 6 13 5-7 min 0 0 1 7-10 min 0 0 0 Total 19 11 1 . In other brackets. Rest 1 respondents.Table. Based on the table.18 given below.17 Recommendation of McDonald’s to Friends and Relatives 4. 1 after 15 minutes and only one got within 5 minutes. For order time span 2-5 minutes. i respondent got within 510 minutes and next 1 between 10-15 minutes. 13 got 10-15 minutes.17 Recommendation of McDonald’s to Friends and Relatives Figure.
> 15 minutes Total 0 8 1 22 0 1 0 1 1 32 Table.18 Cross -tabulation between order & delivery time 4. ii. i. light. . Gap between management perception and service quality specification and service delivery. i. ii. music) or work floor area. Gap between consumer expectation a management perception: While the management of pizza hut perceives that the consumers need better quality food. the main area where at lacks is that it has not specified its customer “how to serve “or” what quality to be served”. iii. They find what have shown in media and what shown here in name some what difference. Gap between service quality specifications & service delivery: The delivery personnel in McDonald are mainly fresh graduates without a personal degree in “hotel management”. Here the negotiation has perceived well what the customer wants but. iii. Gap between management perceptions Service-quality specification: The “fast” service provided by McDonald goes very well with its customer perceptions. If the other person visit except the recognize restaurant like and what is in some what difference.4 Service GAP analysis of fast food industry based on the questionnaire: Service gap is a factor which causes the unsuccessful delivery. Gap between perceived service and expected service. (Like. Gap between service delivery and external communication iv. Gap between consumer expectation and management perception. These are five gap cause the unsuccessful/delivery. but the consumers may a clinically want better ambience.
McPuff. • Business focus: The employees seem to be more focused on the business rather than on the customers. With its corporate vision and mission spelled out in clear terms world wide McDonald's commands respect and belief in the minds of the people through out the world wherever its operations are present. • Consistency of food products: McDonald's has well laid out procedures for preparing food.5 SWOT Analysis 4.iv. etc. generally known as Happy hours.5. 4. French fries.1 Strength: • Brand Equity world wide: McDonald's has a brand name and brand value associated with it world wide. • Overseas market: Besides USA. Happy meals.2 Weakness: • One order at a time: Employees take one order at a time.5. . checking the quality of the food items at various stages. 4. Whereas Pizza Hut is providing home delivery to there customers. the equipments used are also pre calibrated to add the quantity of ingredient. the company has successful food products such as Burgers. etc. This allows for accuracy and quality of the service to a high degree but decreases the speed of the service. making the taste the food consistent at any of its outlets. • Successful items: On its menu. Therefore the element of human touch is missing in the restaurants. making the other customers to wait in line. Gap between perceived service and expected service: The customer of McDonald and Nirula’s are wanted free home delivery but presently there not providing. McDonald's has its operation in 121 countries giving it the largest overseas market and tremendous growth opportunities. and to add to this McDonald's marketing strategy has various promotional schemes to make it more attractive during the lean time periods.
• Growing Dining-out market: with the increase in the dining out culture and trend in the market. like some people may want to have onion in their burgers while others may not. • Serving in the Same tray: Even while McDonald's has separate production lines for the vegetarian and non-vegetarian food products. 22 gm of fat and 48 gm of carbohydrate. they are already avoiding these fast foods. 4. the employees serves the two different products in the same tray. .4 Threats: • Competition: With opening up of newer fast food joints providing more options to choose from and better service. still when it comes to serving. So there is huge opportunity of growth.3 Opportunities: • Serving only one percent: McDonald's with its huge presence in more than 121 countries and serving about 45 million people every day world wide still serves less than 1 percent. which is sometimes objected by the strict vegetarians. • Inflexible products: Though the variety of food items provided is large but there is still inflexibility in terms of food products.5.• Formal Communication: Only communication between the customer and the employee is during the placement of the order.5. • International Exposure: McDonald's has a vast exposure and experience of operating in different cultures and it is because of its flexibility of adopting the cultures that it has been able to lead the fast food industry from the front. the market has started to feel the heat because of the competition. 4. • Health Conscious Customers: The calories content in a vegetarian burger is 418 calories besides 10 gm of protein. With people becoming more health conscious. it is expected that the sales of McDonald¡¦s should increase.
hard to procure ingredients Pries determined by suppliers to maintain quality Lack of single supplier on a contract basis to Threat of New Entrants high Unorganized sector has low entry barriers and low initial investment Threat of FMCG majors entering fast food with established distribution Success dependent on maintaining low costs Further entry of Intensity of rivalry high with both national (Dominos.6 Porters five forces model with reference to fast food joints: Power of suppliers – High Expensive. McDonalds with deep pockets and rapid expansion plans Regional level chains (Nirulas. Pizza Corner. US. Pizza hut. Pizza) Consumer – Low switching costs Highly unpredictable consumer perceptions Higher purchasing power Large number of fast food options Low brand loyalty .4.
1 Political / Legal: • In India. As a result of this. making Industry dominated by the unorganized sector with low entry and exit barriers Fast food suffers competition from the well established ready to eat snack food segment Indians most comfortable with “ghar ka khana” Ready to cook foods category growing at a rapid pace in India Dine in joints dominate as pizza is still not considered Demand quality at a low price Highly deal prone customer Table.19 Porter five forces model 4. • The unexpected change in government policies has always been of great concern for the industry. each having their own set of policies and each having a desire to come to power has made the government unstable. • The government has increased the prices of Diesel as result of which the transportation costs are bound to increase and net effect will be reduction in the profit margin of the organization.7 The market environment: PEST Analysis 4.7. ensure fixed rates Fluctuation in supply of seasonal products offerings studied. where there are lots of political parties. . the peoples and organizations are hesitant towards making FDI in India. • Also with the domestic message spreading all around. It is acting as a sword which is hanging over the head of the management of the organization.
small or large. • With the rise in inflation. analyzed. while that in rural India is over 20%. employment and media will make the consumer more discerning and demanding. engaged in strategic planning examine the economic environment. 4. 4.8 Marketing strategy for future prospective: The first step in developing a marketing strategy is to understand the customers.4 Technology: • • Technology developments come out of the R&D effort. 4.7. McDonalds continuously trying to come out with new products and variants and flavors’ that will fit in the Indian palate. the cost of production rises due to increase in the prices of raw materials. • Over 40% of all packaged goods consumed in urban India are foods and beverages. The company is trying to offer better value to their customer and also trying to deliver superior product at competitive price.7.3 Social: • The relevance’s of the social environment to a particular business will depend on the nature of business. sales tax and in certain cases even local taxes. reacting to their changing needs and the changing . which have an adverse effect on the profits of the organization. The impact of the social environment on a consumer products company is much more than any other company. leading to a cascading impact.2 Economical: • It is not unrealistic to say that all companies. 4.7. Education. and interpreted for use in planning. This trend will deepen because of the changing profile of the consumer. if they don’t increase the price or reduce their overheads. Relevant published information in usually gathered.• • Legislation related to manufacturing and taxation should be made more investment friendly. The industry suffers from multiple taxes like excise.
pubs. Having an in-depth understanding of all aspects related to the competition allows McDonald’s. This research should describe how McDonald's is perceived and about changes that are taking place in the market. • Competitive Product: Quick Service Restaurants are constantly expanding their menus. This can be done on a short-term promotional basis or as a long-term expansion strategy. to monitor the competitive environment to exploit the opportunities and check threats in time. This is the narrowest sector in consideration. Which is considered at three distinct levels? • Total Eating out Market gives the broadest competitive context and includes all restaurants.dynamics of the market. • Competitive Place: Distribution is the key to any retailer or brand. Nirula’s. This is achieved through the following: • Competitive Pricing: Being in touch with the pricing of their competitors allows them to price their products correctly. • Competitive Promotion: At McDonald’s it is believed that before they communicate with their customers. and any other outlet where people eat. Example: Wimpy’s. This category contains the entire gamut of eating outlets ranging from the “mom-&-pop outlet” to the most exclusive five star hotels. The research must involve both quantitative and qualitative research methods. Research should also conduct into the local area of their restaurants. • Quick Service Restaurant sector includes any outlet where food is served quickly and the process is usually self-service. they must be aware of what the competitors are communicating so that they can create a beneficial advantage. into the general market environment and into specific areas of their business. To this end McDonald’s should conduct several stages of in-depth customer research and audits of the McDonald's brand. hotels. McDonald's prides itself on its superior delivery process. • Burger House Sector includes those restaurants that serve different varieties of burgers as their primary menu item. balancing quality with value. Example: Domino’s. .
McDonald's considers three basic areas: the total eating out market gives the broadest competitive context and includes all restaurants. McDonald and Pizza Hut should increase the space available inside there fast food joint. and any other outlet where people eat. At McDonald you get your order usually within 60-90 seconds from the time it is placed. Seeing that the choice and selection of the children by and large dominate buying behaviour of the family. McDonald should also restructure their menu composition to attract all kinds of customers with different preferences. From the past few years McDonald’s is doing the same by introducing meal combos. It is giving an edge to McDonald's over Nirulas and Pizza Hut.1 Conclusion of the study: McDonald takes the share on this attribute by providing the customer with fast and friendly services. therefore we suggest that McDonalds should try and capture more of this section. The advantage McDonald having over the other restaurant is i) Ambiance ii) employ behaviour iii) cleanness iv) price. They also focus on the quick . McDonald India has to make it presence felt. hotels. toys. After the detailed findings and analysis of various responses I would like to put some suggestive points. They also have to have a thorough understanding of their competition. This is the big advantage McDonald's is having over the other restaurants. A lasting impression in the student community would help a long way in the Brand Recognition. For the personnel parties McDonald's should also introduce some new ideas to satisfy the customers and give them customized services to fulfill their social needs. and special children day program. which the customer is looking for. pubs. Providing the customer fast and friendly services is the philosophy of McDonald's. The customer satisfaction levels are better than the other competitors McDonald's is having. There is a price and service quality factor today. If we compare the space management Nirulas is having better space management than McDonald and Pizza Hut.CHAPTER. for long time as giving a Scholarship program for students.5 CONCLUSION & RECOMMENDATIONS 5.
All most all kind of people irrespective of the cast. Seeing that the choice and selection of the children by and large dominate buying behaviour of the family.any outlet where food is served quickly. The increasing awareness and popularity of fast food joint is the major reason for the growth of this industry and promises continues growth looking at its products and price differentiation as well as services and quality standards that are at far with any five to seven star hotels which believe in finest quality and service. The final sector that they focus on is defined as the Burger House Sector. Reintroduce the Chilly sauce as another differentiated yet standard (McDonald’s) product. This includes all the obvious competition and also fish and chip shops. A lasting impression in the student . Wimpy and all independent burger bars. From the past few years McDonald’s is doing the same by introducing meal combos. but as we see at present fast food in all Asian countries except India is a synonym for McDonalds. therefore we suggest that McDonalds should try and capture more of this section. A useful way to gaining knowledge of all aspects of the competition is the examination of the four Ps of the marketing mix: Price. This looks only at restaurants serving hamburgers including Burger King. McDonald India has to do the same. customized. toys. A right entry fetches the customer entry to the daily lucky draw of bumper prizes. and dedicated phone lines under all the potential business giving corporate offices which automatically connect to the nearest McDonald’s. 50 the customer gets a key against which he gets a question on his mobile after giving his number. for long time as giving a Scholarship program for students. and sandwich shops . McDonald’s could also have two auto connecting. When low prices. sex. make it presence felt. creed. class or category prefer visiting fast food joints for the reasons discuss in the thesis in details. New Year and festival strategies through SMS competitions: On any order above Rs. Promotion. delicious and differentiated product associated with finest quality and service in the industry is sure to say "Sky is the limit". Place.service restaurant sector. and Product. and special children day program. age.
Customer Identification for the customer database.2 Suggestions: McDonald's has started the free home delivery service but few important suggestions to make full use of the scheme are as follows: • • • • • • • Call Pickup Standard: Max time of 5 seconds before the customer attended to with standard greeting. Verification with customer for the same imperative. Verification done through a phone call from McDonald’s to the customer. . Order Details along with order time and promised order delivery time range. enabling reaction to their changing needs and the changing dynamics of the market. McDonald's should always conduct in-depth customer research and audits of it's brand. Priya. On delivery conformation received against the order number and the outlet identification number. • McDonald's should continuously develop a marketing strategy to understand the customers. The research should involve both quantitative and qualitative research methods. 5.community would help a long way in the Brand Recognition. This research will tell us a lot about how McDonald's is perceived and about trends that are taking place in the market. Check for traffic and cost of delivery vis-à-vis the identified outlet. order placing compatibility on the internet for home delivery. Combo Options with various movie halls like PVR. Adlabs etc. Evaluate the optimal option and a go ahead with order processing. Identification of nearest McDonald’s outlet.
• Abbey J. • Alexandris. Dimidriadis. Vol. 1. vol. M (1997) Marketing Research. and Bowen D. Understanding Consumer Delight and Outrage”. Banwari.E. Consumer Behaviour and beyond . Jagdish (1999) Customer Behaviour. V.R. • Mittal.A & Bitner. (1999).Sheth. vol.. New Delhi • Caruana. mediating role of customer satisfaction” European Journal of Marketing. Second edition.REFERENCE & BIBLIOGRAPHY • Schneider B. (2003) Research Methodology: Methods and Techniques. 12. by Ah & LA. Integrating customer focus across the firm. Slogan Management Review. Pearson Education Zeithmal. & Wright. Services Marketing. Dick. No 7/8 • • Chisnell. and K. (2002) Principles of Services Marketing and Management.” Journal of the Academy of Marketing Science. N & Markata. 35-45. G (1999) “Measuring quality gaps in hotels: the case of Crete” International Journal of Contemporary Hospitality Management 11/1 24–30 • Lovelock. Peter. A. research agenda” European Journal of Marketing.. pp 99-113. Basu (1994).M. H & Daskalakis. Vol. Vol. • • Rama Mohana Rao (2005). McGraw Hill. Fifth edition. McGraw Hill. pp 224-231 • Buttle. 41. Dryden Press. K. Prentice Hall. 22. F (1996) “SERVQUAL: review.J (2003) Service Marketing. • Kothari C.I Newman . C. K. pp. Michigan. North High Street. Third Edition. 30 No. pp. 8-32. New Age International.(1999) "Hospitality Sales And Marketing". “Customer Loyalty: toward an integrated conceptual framework. . 2. no.S. D (2002) “ Can perceptions of service quality predict behavioral intentions?” Managing Service Quality. • Ingram.R. L.Bruce and N. A (2002) “The effect of service quality and. critique.
• Sheth.pdf http://www.measure-x.net/blogs/diary/archive/000244. Number 7. Balancing customer perceptions and expectations. (2002). Jennifer “McDonald's to Assess Full-Service Effect On Profit With Launch of Diner Concept” Wall Street Journal March 16.com/Docs/0077.clickz. • Ordo. Volume 16. V. Parasuraman.com/Common/Sample %20Projects/McDonald's_Corporation. (2001).com/ .com/2006/08/02/stories/2006080203221200. Ronald S. pp 590-592 • Swift.2myprofessor. 2001 • Pizza Hut offers desi flavors’ in intl format “http://www.blonnet. N.reports. Macmillan.com/experts http://www.html http://www. J.html “Discounts do not generate consumer loyalty” • • • • http://www. Present. And Future http://www.com/publication/12.marketingstudies. Leonard L (1990) Delivering Quality Service.A. Journal Of Services Marketing. A & Berry.com/ http://www. New Jersey Prentice Hall.htm” • McDonald’s Corporation: The Past. Accelerating Customer Relationships: Using CRM and Relationship Technologies.asp http://www. ‘The Future Of Relationship Marketing’.mcdonalds.mintel. Upper Saddle River.mcdonaldsindia.com/nov0804/food_services.PDF • • • • http://www.qmconf.pdf http://www.businessworldindia.• Zeithmal.com/aboutus/presskit/05%20Value.
APPENDIX. What drives you to go to this restaurant? The quality of food Better service Homely atmosphere 4. What is the time taken at the counter by you to book your order? Within 2 minutes 2 . Are you satisfied with the present service provided by the Restaurant? Yes No 5. Which restaurants do you go to? McDonalds Nirulas’ Pizza Hut Others (specify) --------------------- 3.5 minutes . How frequently do you go to restaurants? Only on holidays Weekends On special occasions Everyday 2.I CUSTOMER QUESTIONNAIRE 1.
15 minutes 5 . What is your view about the hospitality provided by this Restaurant? Average Very Good Good Excellent 8. 7.7 minutes 7 .10 minutes 6. 5 . How much time do they take to deliver your order? Within 5 minutes 10 . of Respondents Percentage . What is your satisfaction level with McDonald's? Attributes Extremely Satisfied Moderately satisfied Moderately dissatisfied Extremely dissatisfied OK No.10 minutes More than 15 mins.
Promotional Scheme. Which are the combination of the factors do you thing very vital while you select a particular fast foods Service price and location Service. How frequently do you visit other restaurants except McDonald's? Regularity Occasionally Frequently Rarely . of respondents percentage 10. What is the level of understanding of service problems of the customers? Attributes Excellent Very good Average Poor No. Location. Price. Why do you prefer McDonald's? Service differentiation Product differentiation Price differentiation Promotional Scheme 12.9. Promotional Scheme 11. Location Price.
of respondents percentage . Which similar restaurant you think has the best service quality and why? 17. How do you evaluate at the various aspects McDonald's. Nirulas and Pizza Hut ? Scale 1-5 (1 is the minimum. Please give suggestions (If any) for improvement in service quality 16. Would you recommend McDonald's to your friends and relatives? Attributes No. 5 is the maximum) Nirulas Pizza Huts McDonald’s Ambience Cleanliness Behaviour of employees Space management Menu composition Quality of food Service quality 14. What do you have to say for happy hours concepts in McDonalds? Excellent Does not matter Good idea Poor 15.13.
......................................................................................................................................................................... ................................................................................................... .......... ....................................................................... Any Suggestions for overall improvement of fast food joints? .............................................................................................................................................................................. .......Definitely Yes Probably Yes Probably No Definitely No 18........................................................................................... .....
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