“CUSTOMER SERVICE OF JOLLIBEE, MCDO, AND CHOWKING BASIS FOR
MANAGEMENT DEVELOPMENT OF 24/7 FASTFOOD CHAIN IN TORIL
POBLACION”
In Partial Fulfillment of the Requirements
For the Practical Research II
Submitted by:
COMPAS, SHALMAHANIE O.
VALDEZ, RENZ HERICHO O.
LEE, HANNAH ALJEAH D.
OLBINAR, JEMAR JR. C.
SUNICO, JOANILOU T.
SAMUEL, DIOSSEL A.
SARAEL, RAJA
SEPTEMBER 2019
PROBLEM AND ITS SETTING
In our ever-increasingly globalised world, the fast food
industry represents billions of dollars yearly and is still
growing, specifically in Asia (Data Monitor, 2005). AC Nielsen
Online Consumer Survey (ACNielsen, 2005) reveals that Asians are
the world’s greatest fast food fans. A total of 30 percent of
Asia Pacific consumers eat at take-away restaurants at least
once a week and 35 percent of the population of Asia Pacific
eats at take-away restaurants three times a week and some even
more than once a day.
As a consequence, studies relating to fast food, specifically of
service quality, have also grown over the decades. However, most
studies have focused on the western countries (Bougoure and Neu,
2010) compared to the limited literature on service quality in
eastern countries. This is problematic because consumers’
perception of service quality can vary across countries due to
cultural and environmental differences (Qin, Prybutok and Zhao,
2010).
Among all the fast food studies undertaken, most of the studies
have aimed at investigating the relationship between service
quality and customer satisfaction in FFRs (Brady et al., 2001;
Gilbert et al., 2004; Kara et al., 1995; Lee and Ulgado, 1997).
Other potential antecedents of customer satisfaction namely food
quality and perceived value have not received attention (Qin and
Prybutok, 2009). In addition, many researchers believe that food
quality greatly influences customer satisfaction in the context
of FFRs (Kivela et al., 1999; Johns and Howard, 1998) and
perceived value is seen as a determinant of customer
satisfaction because of its ability to retain.
Philippines has one of the most developed fast food restaurant
segments in Asia. Nearly all Filipinos (99 percent) are fast
food patrons, and the Philippines are third in the world in
terms of the frequency of fast food restaurant visits. Business
Asia (2000), estimated that there are a total of 2000 fast food
restaurant outlets in the Philippines, and contributing to 2
percent of total food service outlets in the country, Nielsen
(2005),
Here in Phillipines, people love to eat in different fast
food chains because of it's affordability. Jollibee is the
country's largest and well known fast food chain here in
Philippines. Some fast food chains that are people love going to
are McDo, and Chowking. Lots of customers prefer to eat in fast
food chain because of the service and food they provide.
Customer satisfaction measures the product and service
effectiveness of the business on meeting the expectations of the
customers. This is an indicator to measure customer loyalty,
identify unhappy customers, reduce churn and increase revenue.
Knowing how the business satisfies the customers help the
business to know what to do in order to improve the product or
the service. Customer's satisfaction has an important role
within the business in terms of gaining or earning profit from
the customers. If the customer was satisfy with the product or
service, revenue will increase knowing that the customer will
keep on coming back and spend more money for the product or
services offered by the business.
Recently, customers have been progressively aware about
quality of service (Soriano, 2002). Service quality is often
viewed from two perspectives that are from the customer’s
cognitive evaluation of the service provided (Taylor and Baker,
1994) and a multidimensional construct created by an evaluation
of attribute performance (Parasuraman et al., 1988). Service
quality is usually defined as the customer’s judgment of the
overall excellence or superiority of the service (Zeithaml,
1988). Thus, it is the customer’s subjective evaluation formed
by comparingexpectations and perceived performance (Bolton and
Drew, 1991; Parasuraman et al., 1985,1988).
Service Quality and satisfaction are very often inter-related.
As said earlier, the term “customer satisfaction” became
popularized in the 1980’s with the total quality movement.
Customer Driven Excellence and Customer Focused Results remain
important aspects of the Baldrige National Quality Programme.
However, it is a fact that there exists a gap between these two
concepts. According to Cronin and Taylor (1992), this
distinction is important to both managers and researchers alike,
since service providers need to know whether their objective
should be to have consumers which are satisfied with their
performance or to offer the reinforce customer service
excellence.
Objective of the study
The main objective of this study is to extends the applicability
of customer experience quality scale in fast food chain
(Jollibee, McDo, and Chowking0, which makes marketers to think
about the different touch points during customer interaction
with the fast food chain.
Therefore, the present study examined the direct influence
of customer experience quality dimensions on customer
satisfaction, brand loyalty and word-of-mouth, and also measures
indirect influence of customer satisfaction on word-of-mouth
through brand loyalty.
Hypothesis:
H1: Peace of mind positively influences customer
satisfaction.
H2: Moments-of-truth positively influence customer
satisfaction.
H3: Outcome focus positively influences customer
satisfaction.
H4: Product experience positively influences customer
satisfaction.
H5: Customer satisfaction positively influences brand
loyalty.
H6: Customer satisfaction positively influences
word-of-mouth.
H7: Brand loyalty positively influences word-of-mouth.
Significance of the study
The study is beneficial to the students taking up the
strand Accountancy Business and Management (ABM) and other
business management courses since it covers the topics customer
servive and customer satisfaction . It would give the students
additional information on how do fast food chains serve
customers in order to achieve customer satisfaction. Also, this
would be beneficial to the Research Division of the Marketing
Team of selected fast food chains since this study shows the
reflection of their service based on the findings of the study.
The data that will be gathered might be an additional basis for
them in order to innovate ways on how they would satisfy
customers.
CONCEPTUAL FRAMEWORK
Figure 1. Klaus and Maklan’s (2012) scale of customer experience
quality (EXQ)
In the present study, we examine the Klaus and Maklan’s (2012)
scale of customer experience quality (EXQ) (Peace-of-mind,
moments-of-truth, outcome focus and word-of-mouth) to validate
our hypothesis in food industry.
THEORITICAL BACKROUND
Service quality measures received global attention (Zeithaml,
1988), but recent service quality researches has shown criticism
due to its large focus on transaction specific assessment (Voss
et al., 2008). Customer experience incorporates service quality
definition along with the objective to refine static measurement
of service quality (Berry et al., 2002). Customer experience is
an observation of a journey that precedes service encounters,
passes through service deliver and continues even after delivery
of services (Berry et al., 2002). Before service delivery or
purchase, customer experiences direct or indirect communications
made by a firm (Brakus et al., 2009) and receives word-of-mouth
from other customers (Kwortnik& Ross 2007). Customer experiences
the context of approaching the organization, like the journey to
a retailer (Gilmore & Pine, 2002) or the contact through website
medium (Sautter et al., 2004). Physical environment contacts
also offer experiences to the customer (Pullman & Gross 2004).
After delivery of services, customer consumes the
product/service that constitutes consumption experiences
(Woodruff, 1997). Studies argued the conceptual difference
between customer experience and service quality (Klaus &Maklan,
2007), and developed new measurement for it (Klaus &Maklan,
2012).
According to Klaus and Maklan (2013), measure of experience
incorporates feelings and emotions that bring its scope broader
than that of service quality measures. Literature provides
better understanding of customer experience through some
definitions. As, Meyer and Schwager (2007) define customer
experience as “customers’ internal and subjective response to
any direct or indirect contact with the company across multiple
touch points”. Gentile et al. (2007, p. 397) stated that
“customer experience originates from a set of interactions
between a customer and a product, a company, or part of its
organization, which provoke a reaction. This experience is
strictly personal and implies the customer’s involvement at
different levels (rational, emotional, sensorial, physical, and
spiritual)”. Klaus and Maklan (2013) viewed customer experience
as “the customer’s cognitive and affective assessment of all
direct and indirect encounters with the firm relating to their
purchasing behaviour”. In the words of Lemke et al. (2011),
customer experience is conceptualized as “the customer’s
subjective response to the holistic direct and indirect
encounter with the firm, and customer experience quality as its
perceived excellence or superiority”.
LEGEND: SA- STRONGLY AGREE
A- AGREE
M- MODERATE
SD- STRONGLY DISAGREE
D- DISAGREE
PEACE OF MIND SA A M SD D
1. I am confident in their expertise; they know
what they are doing.
2. The whole process was so easy; they took care
of everything
3. It is not just about the now; this company is
looking after me.
4. I am already a customer; they know me and take
good care of me, so why should I go elsewhere?
5. I have dealt with them before, so getting a
mortgage was really easy.
6. I choose them because they give independent
advice.
OUTCOME FOCUS
1. Yes, there are other companies, but I would
rather stay with mine; it makes the process much
easier.
2. It was more important to get the mortgage than
to shop around for a better rate
3. I stay with my company because I am not
confident about using an alternative provider.
4. It was important that the advisor had a
mortgage too; he/she knew what I was going
through.
MOMENTS OF TRUTH
1.It was important that the company was flexible
in dealing with me and looking out for my needs.
2. It is important that they keep me up to date
and inform me about new options.
3. I want to deal with a safe company, because a
mortgage is a lot of money
4. It is important that the people I am dealing
with are good people; they listen, are polite and
make me feel comfortable
5.The way they deal(t) with me when things go
(went) wrong will decide if I stay with them.
PRODUCT EXPERIENCE
1. I want to choose between different options to
make certain I get the best offer
2. It is important to me to receive mortgage
offers from different companies.
3. Unless I can compare different options, I will
not know which one is the best for me
4. It would be great if I could deal with one
designated contact through the entire process of
getting my mortgage.
CUSTOMER SATISFACTION SA A M SD D
My feelings towards hotel are very positive
I feel good about coming to hotel for the
offerings I am looking for
Overall I am satisfied with hotel and the service
they provide.
I feel satisfied that hotel produce the best
results that can be achieved for me
The extent to which hotel has produced the best
possible outcome for me is satisfying
BRAND LOYALTY
I will be loyal to “ Brand ” in the future.
I will keep on being a customer of “Brand” for the
next 5 years
I will recommend “ Brand ” to others
WORD-OF-MOUTH
Mentioned to others that you do business with fast
food restaurant.
Made sure that others knew that you do business
with fast food reataurant.
Spoke positively about hotel employee(s) to
others.
Recommended hotel to family members.
Spoke positively of hotel to others.
Recommended hotel to acquaintances.
Recommended hotel to close personal friends.
REFERENCE
(Brady et al., 2001; Gilbert et al., 2004; Kara et al., 1995;
Lee and Ulgado, 1997).
(Qin and Prybutok, 2009)
(Kivela et al., 1999; Johns and Howard, 1998)
Klaus and Maklan’s (2012) scale of customer experience quality
(EXQ)
(Data Monitor, 2005).
(ACNielsen, 2005)
(Bougoure and Neu, 2010)
(Qin, Prybutok and Zhao, 2010)
