A

COMPREHENSIVE PROJECT REPORT

On

“Gap Model Analysis on McDonald’s”

Submitted to

Institute code: 796

L.J. Institute of Management Studies

Under Guidance of
Prof. Harleen Mahajan
In partial fulfillment of the Requirement of the award of the degree of
Master of Business Administrative (MBA)
Offered By
Gujarat Technological University
Ahmedabad
Prepared by:
Jayshree Naidu (197960592066)
Tushar Maheshwari (197960592052)
MBA (Semester -IV)
April 2021

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 STUDENT DECLARATION

I hereby declare that the COMPREHENSIVE Project Report titled “GAP

MODEL ANALYSIS ON MCDONALD’S” is a result of our own work and our
indebtedness to other work publication, reference, if any, has been duly
acknowledged. If we are found guilty of copying from any other report of
published information and showing as our original work, or extending plagiarism
limit, we understand that we shall be liable and punishable by the university, which
may include “Fail” in examination or any other punishment that university may
decide.

Enrollment no. Name Signature

197960592066 Jayshree Naidu

197960592052 Tushar Maheshwari

Place: Ahmedabad Date: / /2021

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 INSTITUTE CERTIFICATE

“This is to certify that is COMPREHENSIVE Project Report Titled “GAP

MODEL ANALYSIS ON MCDONALD’S” is the bonafide work of Jayshree
Naidu (197960592066) and Tushar Maheshwari (197960592052) that has
carried out their project under my supervision. I also certify further, that to the best
of my knowledge the work reported here in does not form part of any other project
report or dissertation on the basis of which a degree or award was conferred on an
earlier occasion on this or any other candidate .I have also checked plagiarism
extent of this report which is 10% and it is below the prescribed limit of 30%. The
separate plagiarism report in the form of html /pdf file is enclosed with this.

Rating of Project Report [A/B/C/D/E]: ___________

(A= Excellent; B= Good; C= Average; D; Poor; E; Worst)
(By Faculty Guide)

Signature of the Faculty Guide Signature of the

Director

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PLAGIARISM REPORT

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 PREFACE

The raising numbers of fast food restaurants nowadays are the result of the
increasing demand for relatively inexpensive and ready-to-eat food. This condition
makes the competition among fast food restaurant is getting bigger. To deal with
the high competition in fast food market, McDonald’s as one of the fast food
restaurant should provide the best service to make customer satisfied. By
measuring the service quality, McDonald’s will be able to know whether the
service that has been provided satisfies its customers or not.

The purpose of this research is to measure the service quality by using the
SERVQUAL method. There are five dimensions in SERVQUAL method, which
are tangible dimension, reliability dimension, responsiveness dimension, empathy
dimension, and assurance dimension. In this research, the service quality of
McDonald’s will be measured by calculating the differences between customers’
expectation and customers’ perception. This difference is called customer gap.
From the customer gap result, it is possible to know which SERVQUAL dimension
that customers’ feel satisfied from service that provided by McDonald’s. The data
collection in this research will be from primary data, which is questionnaire. There
are statements in the questionnaire that are from SERVQUAL model, and the
questionnaire will be spread to respondents.

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 ACKNOWLEDGEMENT

We are using this opportunity to express my gratitude to everyone who supported

us throughout the course of this project. We are thankful for their aspiring
guidance, invaluably constructive criticism and friendly advice during the project
work. We are sincerely grateful to them for sharing their truthful and illuminating
views on a number of issues related to the project.

We are thankful to my Director Dr.P.K.Mehta, Dean Dr. Siddharth Bist &

Faculty guide Assistant Prof. Harleen Mahajan of L. J. Institute of
Management for providing such an opportunity for undergoing a Summer
Internship Project

Last but never can be least utmost eternal thanks to Gujarat Technological
University, to give the pragmatic experience to the management students, a special
‘Comprehensive Project ’ has been the compulsory in MBA two-year full-time
course, which is one of the distinct, excellent features of quality education of
‘GUJARAT TECHNOLOGICAL UNIVERSITY’.

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 TABLE OF CONTENTS

Chapte Particular Page

r no.
Title Page
•
Student Declaration
•
Institute Certificate
•
Plagiarism Report
•
Preface
•
Acknowledgement
•
Introduction
1
Literature Review
2
Objective
3
Research Methodology
4
Analysis & Interpretation
5
Finding & Conclusion
6
Bibliography
7
Annexure
•

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Chapter-1
Introduction

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 Industry Introduction
The model of service quality
The model of service quality, popularly known as the gaps model was developed
by a group of American authors, A. Parasuraman, Valarie A. Zeithaml and Len
Berry, in a systematic research program carried out between 1983 and 1988. The
model identifies the principal dimensions (or components) of service quality;
proposes a scale for measuring service quality (SERVQUAL) and suggests
possible causes of service quality problems. The model's developers originally
identified ten dimensions of service quality, but after testing and retesting, some of
the dimensions were found to be auto correlated and the total number of
dimensions was reduced to five, namely - reliability, assurance, tangibles, empathy
and responsiveness..

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A simplified model of service quality
Businesses use the SERVQUAL instrument (i.e. questionnaire) to measure
potential service quality problems and the model of service quality to help
diagnose possible causes of the problem. The model of service quality is built on
the expectancy-confirmation paradigm which suggests that consumers perceive
quality in terms of their perceptions of how well a given service delivery meets
their expectations of that delivery. Thus, service quality can be conceptualized as a
simple equation:
SQ = P- E
Where;
SQ is service quality
P is the individual's perceptions of given service delivery
E is the individual's expectations of a given service delivery
When customer expectations are greater than their perceptions of received
delivery, service quality is deemed low. When perceptions exceed expectations
then service quality is high. The model of service quality identifies five gaps that
may cause customers to experience poor service quality. In this model, gap 1 is the
service quality gap and is the only gap that can be directly measured. In other
words, the SERVQUAL instrument was specifically designed to capture gap 1. In
contrast, Gaps 2-5 cannot be measured but have diagnostic value.

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Summary of Gaps with Diagnostic Indications 
Gap Brief description
Difference between the
Gap 1 target market's expected
The Knowledge service and management's
Gap perceptions of the target
market's expected service
Difference between
Gap 2 management's perceptions of
customer expectations and
The standards the translation into service
Gap procedures and
specifications
Gap 3 Difference between service
quality specifications and the
The Delivery Gap service actually delivered
Gap 4 Difference between service
Probable Causes
 Insufficient marketing
research
 Inadequate upward
communications
 Too many layers of
management
 Lack of management
commitment to service
quality
 Employee perceptions
of infeasibility
 Inadequate goal
setting
 Inadequate task
standardization
 Technical breakdowns
or malfunctions
 Role conflict/
ambiguity
 Lack of perceived
control
 Poor employee-job fit
 Poor technology- fit
 Poor supervision or
training
 Lack of horizontal
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 communications
 Poor communication
with advertising
agency
 Inadequate
communications
The delivery intentions and what
between sales and
Communications is communicated to the
operations
Gap customer
 Differences in policies
and procedures across
branches or divisions
of an entity
 Propensity to
overpromise

Criticisms of SERVQUAL and the model of service quality

Although the SERVQUAL instrument has been widely applied in a variety of
industry and cross-cultural contexts, there are many criticisms of the approach.
Francis Buttle published one of the most comprehensive criticisms of the model
of service quality and the associated SERVQUAL instrument in 1996 in which
both operational and theoretical concerns were identified. Some of the more
important criticisms include:
1. Face validity
2. Construct validity
3. Ambiguity of expectations construct
4. Operational definition of the expectations construct
5. Questionnaire length
6. Administration of the questionnaire
7. Dimensional instability

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 Company Introduction

 A Locally Owned Company

 Local Sourcing Is Key for Truly Indian Products
 Respect for the Indian Customs and Culture
 An Employer of Opportunity
 Quality, Service, Cleanliness & Value
 Community Partnership

(https://www.stocktalk.in/indian-food-services-industry-market-analysis/ - 13
April, 2020)

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 Chapter-2
Literature Review

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 LITERATURE REVIEW

Literature Review on Service Quality Gap in Other Countries of the World

The research studies conducted on service quality in India are reviewed in order
to have a snap shot of the research conducted in this area.
Arun and Venkateswaran (2014) studied the service quality aspects in public and
private hospitals. He observed that the level of expectation on the service quality
and modern service qualities among the patients’ are not yet fulfilled by the
service provider. The service quality gap revealed that the level of perception on
the service quality is lesser than the level of expectation in all the aspects. It is
very high among the patients’ in public health care centers.
Jayesh, and Renuka (2010) developed a scale for measuring perceived service
quality for public hospitals from the user's (patient's) perspective. – A reliable and
valid scale called public hospital service quality (PubHosQual) was developed to
measure the five dimensions of hospital service quality: admission, medical
service, overall service, discharge process, and social responsibility. Kumar, et al.,
(2012) conducted a study on service quality at a hospital in Mysore and the
results of the study revealed that all the four dimensions of service quality –
Reliability, Responsiveness, Tangibles and Empathy were positively related to
patient’s loyalty.
The study conducted by Sahney, Banwet and Karunes (2004) outlined the results
of a study conducted on students within selected educational institutions in India
to obtain a student perspective of the quality of those institutions. The SERVQUAL
methodology was applied to identify the gap between customer expectations and
perceptions of the actual service received.
Khurana (2013) analyzed the gap between customer expectation and customer
perception in the service delivery of retail banks. A sample of 200 customers from
10 top performing banks of Hissar city in Haryana were selected for the study. The
results have shown that there is a huge gap between perception and expectation
in the case of tangibility dimension of service quality and low in the case of
competency.

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Garikaparthi (2014) examined service quality in retail apparel industry in three
retail outlets in Mumbai, i.e., Pantaloons, Shoppers Stop and Westside. The study
had shown that there are six factors which influence the service quality of a retail
outlet. Five out of the six factors are in accordance with the five factors of
SERVQUAL model. The sixth factor that has been identified in the study was
Advanced Services
Literature Review on Service Quality Gap in Other Countries of the World
There is a substantial body of evidence in higher education literature suggesting
that the SERVQUAL instrument is effective in measuring service quality in the
higher education environment and is especially useful in offering guidance for
changing shortcomings to strengths (Angell et al., 2008, Wolverton, 1995, Yang,
2008, Harris, 2002).
Martins and Dastane (2014) measured African student perspective on service
quality and performance of higher education institutes (HEI) in Malaysia. Based on
stratified random sampling of 150 students from ten private HEI in Kuala Lumpur,
Malaysia, using a SERVEQUAL model that measures five dimensions of quality
attribute, the results have shown that service quality in the private HEI is at
moderate level.
Rasli, et al., (2012) conducted a study to make a gap analysis by measuring the
perception and expectation of service quality in higher education from the
perspectives of Iranian postgraduate students This study was able to show that
postgraduate students from Iran in five top ranked Malaysian universities have
negative perceptions of education service quality in their universities, as their
expectations were not met in the performance of education services. The
negative values indicate dissatisfaction. Students were dissatisfied with the
education service quality on all the five aforementioned service quality factors –
Tangible, Reliability, Responsiveness, Assurance and Empathy.
Tsang and Qu (2000) assessed the perceptions of service quality in China’s hotel
industry, from the perspective of both international tourists and hotel managers.
It was found that tourists’ perceptions of service quality provided in the hotel
industry in China were consistently lower than their expectations and that
manager overestimated the service delivery, compared to tourists’ perceptions of
actual service quality, in the hotel industry in China.
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The concept of service quality and service orientation in rural tourism
establishments in Israel was investigated by Reichel, et al, (2000). Utilizing
Grönroos's model of perceived service quality, an exploratory empirical study of
206 guests and 23 entrepreneurs’ revealed gaps between expected and
experienced service dimensions.
Nadri and Hussain (2005) conducted a study among the European tourists visiting
Northern Cyprus hotels to examine their perception of service quality. The results
revealed that tangibles and intangibles dimensions exert a significant positive
effect on customer satisfaction.
The study conducted by Saleh and Ryan (2006) reported an application in the
hospitality industry of the SERVQUAL model developed by Parasuraman, Zeithaml
and Berry. The study identified the existence of gaps between clients' and
management perceptions of attributes of the hotel, and between client
expectation and perception of the services offered. It is argued that the existence
of these gaps is a source of dissatisfaction with services provided.
The conclusion towards this research will be explained by the author, as below:
To measure the service quality gap in McDonald’s Dago, the author has conduct a
research by spreading the service quality questionnaire to 100 customers of
McDonald’s Dago, focusing on ITB undergraduate students. From the data
analysis towards the questionnaire, it can be found that all of the service qualities
dimensions have minus gap, which is the perception of the customers, are lower
than their expectation. (Ni Putu Radha Naraswari and Ira Fachira School of
Business and Management Institut Teknologi Bandung, Indonesia)

The strengths of the Gaps Model certainly lie in its relative simplicity, in the
linearity of its outline and in the rationality of the firm actions, which determine
its intelligibility and its communicative force. It is also our view that these same
strong points may nonetheless pose a challenge to the model: it is evident that
the analytical-reductionist approach on which it is developed fragments reality
into separate elements leaving behind the systemic nature of the firm, which, in
actual facts, is a system immersed in the environment. Reflections arisen from
conducting this research lead us to look with interest to every innovative
contribution intended to develop a new approach aimed to challenge the
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traditional conception of unidirectional and linear cause-effect relation among the
elements of the model. An approach grounded on a systemic logic characterized
by mutual relations and circular interactions. The main pillar of this approach is
the recognition of the firm as a subject which is not isolated but operates also
among cooperative and competitive relations with other actors who are
connected by various resource and communication flows. Further research
developments may focus on the role of price and on the relation between service
quality and customer satisfaction. Referring to price, it is our opinion that its role
should be analyzed in a more extensive way, considering its impact on customer
expectations and purchase behavior, its relevance for quality and value
assessments, in light of the employment of revenue management techniques,
which are widespread in the service sector. Discussing on the relation between
quality and customer satisfaction, it is remarked that the determiners of these
two concepts and the relation concerning them are still object of ongoing
interesting investigations.(November 22, 2013- Aurelio G. Mauri1 , Roberta
Minazzi2 & Simonetta Muccio)
It is essential in the service sector to have a good understanding on what exactly
the consumers want. Identifying the specific expectations of consumers, the
dimensions of the service quality, and their relative importance for consumers for
each specific segment of the sector would definitely help in the challenge of
improving the service quality. Information on service quality gaps can help
providers and policy makers to diagnose where performance improvement can
best be targeted. Identifying the largest negative gaps, combined with assessment
of where expectations are highest, facilitates prioritization of performance
improvement- (Dr. V.Rama Devi – MARCH 2015-
http://14.139.206.50:8080/jspui/bitstream/1/3929/1/Service%20Quality
%20Gap%20%E2%80%93%20A%20Literature%20Review%20%281%29.pd.pdf)

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Chapter-3
Objective

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 OBJECTIVE +
 Identify the gaps between customer expectation and the actual
services provided at different stages of service delivery
 Close the gap and improve the customer service
 Ensure the service performance meets standards
 Ensure service delivery matches promises

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 Chapter-4
Research Methodology

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 Research Design
 Exploratory and Descriptive research design

Sample Design
 Sampling method:
For the study purpose, I have used convenience method.
 Sample Size:
Total sample size is 85 respondents.

Research Objective

Data Collection
Basically, there are two methods for the process of data collection

A. Primary Data:
My research is mainly from the primary data, which is collected by the
researcher for the purpose of research. The survey is conducted on unique
85 respondents and the questionnaire through which the data is collected
from the 14 questions.

B. Secondary Data:
Some information is collected through various websites, newspapers
and Blogs.

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 Chapter-5
Analysis & Interpretation

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 Analysis & Interpretation

Gender Count Percentage

Female 36 42.4%
Male 49 57.6%
Grand Total 85 100%

Interpretation:

From the above data, we can conclude that among the sample, females were
42.4% and Male 57.6%.

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Interpretation:

From the above data, we can conclude that among the sample, 21-30 Age
group visit McDonald’s more than others, 77.6%

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Interpretation:

From the above data, we can conclude that among the sample, 56.5%
respondents are earning person 56.5% respondents are earning person

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Interpretation:

From the above data, we can conclude that among the sample, 71.8% people
are vegetarian (Product). So the McDonalds Store moreover looks after the
Vegetarian customers.

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Interpretation:

From the above data, we can conclude that among the sample, 58.8% people
do visit quarterly. The footfalls are Moderate.

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Interpretation:

From the above data, we can conclude that among the sample, 57.6% people
are updated about the products via Social Media Ads (Promotion).

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Interpretation:

From the above data, we can conclude that among the sample, 67.1% people
prefer for Dine-in Service. This shows that the customer need a place to sit
and eat. Due to COVID-19 McDonalds started the Take-Away Service which
would not create chaos, but only 11.8% prefer Take-Away(Process).

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 Count of Count of Count of
Particulars Ambience Product info Consistency
Average 71 5 8
Excellent 6 33 31
Good 8 46 45
Poor 0 0 0
Very Poor 0 1 1
Grand Total 85 85 85

Interpretation:

From the above data, we can conclude that among the sample, 71 respondents
say that the (Ambience) Place is Average and 46 respondents say that Product
information is good. The Consistency of the service is also good said by the 45
respondents.

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Interpretation:

From the above data, we can conclude that among the sample, 72.9% people
feel the price are Medium ranged as compared to others (Price).

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Interpretation:

From the above data, we can conclude that among the sample, 57.6% people
have been taken order with a Big Smile on the face of the Employees of
McDonald’s.

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Interpretation:

From the above data, we can conclude that among the sample, 37.6%
respondents have rated 4 out of 5 for the Physical evidence and Process that
has been experienced when ordering and delivering the Service. Where 1 is
poor and 5 is excellent.

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Interpretation:

From the above data, we can conclude that among the sample, 41.2%
respondents have rated 5 out of 5, the experience of the Customers are good
with the Service provided by the employees(Physical evidence). Where 1 is
poor and 5 is excellent

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Interpretation:

From the above data, we can conclude that among the sample, 84.7%
respondents are satisfied with the Price charged for the products provided.

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Interpretation:

From the above data, we can conclude that among the sample, 88.2%
respondents are satisfied with the service and products.

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 Chapter-6
Findings & Conclusion

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 Findings
 Females were 42.4% and Male 57.6%.
 21-30 Age group visit McDonald’s more than others, 77.6%
 56.5% respondents are earning person.
 71.8% people are vegetarian (Product). So the McDonalds Store moreover
looks after the Vegetarian customers.
 58.8% people do visit quarterly. The footfalls are Moderate.
 57.6% people are updated about the products via Social Media Ads
(Promotion).
 67.1% people prefer for Dine-in Service. This shows that the customer need a
place to sit and eat. Due to COVID-19 McDonalds started the Take-Away
Service which would not create chaos, but only 11.8% prefer Take-Away
(Process).
 71 respondents say that the (Ambience) Place is Average and 46 respondents
say that Product information is good. The Consistency of the service is also
good said by the 45 respondents.
 72.9% people feel the prices are Medium ranged as compared to others (Price).
 57.6% people have been taken order with a Big Smile on the face of the
Employees of McDonald’s.
 37.6% respondents have rated 4 out of 5 for the Physical evidence and Process
that has been experienced when ordering and delivering the Service. Where 1 is
poor and 5 is excellent.
 41.2% respondents have rated 5 out of 5, the experience of the Customers are
good with the Service provided by the employees (Physical evidence). Where 1
is poor and 5 is excellent
 84.7% respondents are satisfied with the Price charged for the products
provided.
 From the above data, we can conclude that among the sample, 88.2%
respondents are satisfied with the service and products.

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 Conclusion
As respect to the above survey about McDonald’s service, the respondents have
provided their customer satisfactory about the Company. Which clears gives an idea
about the company and their analysis about customer’s expectation. According to the
report, the global fast food market is expected to reach $931.7 billion by 2027, rising
at a CAGR of 4.6% from 2020 to 2027. By type, the Asian/Latin American food
segment is estimated to witness the fastest growth, registering a CAGR of 3.4%
during the forecast period. The western fast-food chain has been exhibiting promising
growth rate in India and is likely to continue its growth. For McDonald’s, things have
been working in its favor because it has maintained customers by providing affordable
meals, HDFC securities said in a report on Tuesday. By sourcing 95% of its
products locally, the company saves up on costs and it has focused on network
expansion, innovation, premiumisation and diversification into segments of the future,
helping it become one of India’s fastest growing players in India’s quick-service
restaurant.
With the above data analysis, we conclude that 71.8% people are vegetarian
(Product), when McDonald’s entered India they had a survey about taste which is
working in favor. But as compare to the price lower middle class people will visit
quarterly where the middle class and upper middle class might go monthly. Talking
about the promotional activities, McDonald’s focuses more on Social Media as a
medium, where the people using the Social media are high in number. As we Indian
have a habit of sitting to eat, people find Dine-in as a better option. Due to COVID-19
McDonalds started the Take-Away Service which would not create chaos, but only
11.8% prefer Take-Away (Process).Among 85, 71 respondents say that the
(Ambience) Place is Average and 46 out of 85 respondents say that Product
information is good and The Consistency of the service is also good. The price of the
product with respect to service provided is Average. The Staffs are trained well that
the customers are satisfied by their service.
McDonald’s being in the QSR industry is doing better than the other Competitors.

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Chapter-7
Bibliography

Page | 41
 Bibliography
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item
scale for measuring consumer perceptions of service quality. Journal of Retailing,
64, 12-40.
Service Quality and SERVQUAL Model: A Reappraisal Brajaballav Kar KIIT School of
Management, KIIT University, Bhubaneswar, Odisha, India (Received: 05/04/2016;
Accepted: 14/12/2017), Amity Journal of Operations Management 1(2), (52-64)
©2016 ADMAA
https://en.wikipedia.org/wikSERVQUAL#The_model_of_service_quality
https://www.mcdonaldsindia.com/McDonaldsinIndia.pdf
http://14.139.206.50:8080/jspui/bitstream/1/3929/1/Service%20Quality%20Gap
%20%E2%80%93%20A%20Literature%20Review%20%281%29.pd.pdf
https://www.businesswire.com/news/home/20200716005498/en/Fast-Food-Industry-Analysis-
and-Forecast-2020-2027---ResearchAndMarkets.com

https://www.livemint.com/news/india/indians-still-hungry-for-fast-food-report-11613997244459.html

https://www.techsciresearch.com/news/4597-india-quick-service-restaurants-qsr-market-to-grow-at-18-
until-2025.html#:~:text=According%20to%20a%20recently%20released,CAGR%20of%20more%20than
%2018%25

Page | 42
Annexure

Page | 43
 Annexure

Gap Model Analysis of McDonald's

Dear Respondent,
We are student of MBA program from L.J. INSTITUTE OF MANAGEMENT STUDIES.
As a part of our curriculum we are required to prepare a comprehensive project
for which we have selected the topic "Gap Model Analysis Of McDonald's". We
ensure you that the information provided by you will be kept confidential and
exclusively used for academic purposes only. We will be thankful to you if you
spend few minutes to fill this Questionnaire.

Thank you.

1. Gender:
a. Male
b. Female

2. Age:
a. 0-20
b. 21-30
c. 31-40
d. 41-Above

3. Are you an earning person?

a. Yes
b. No

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4. Which food you preferred?
a. Vegetarian
b. Non Vegetarian
c. Eggiterian

5. How frequently do you visit McDonald’s?

a. Weekly
b. Monthly
c. Quarterly

6. How do you get to know about new products of McDonald’s?

a. Television
b. E-Mail
c. Newspaper
d. Blogs
e. Social Media

7. Which service do you preferred from McDonald’s?

a. Dine In
b. Take Away
c. Delivery

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8. Please give your feedback:

Particulars Excellen Good Average Poor Very

t Poor
How well are the
ambience /
atmosphere /
environment and
other equipment's
placed in Mc
Donald's?

Are you satisfied

with the products
information
available?

How is the service

delivery in terms of
consistency

9. How often do you feel regarding prices of McDonald's products?

a. Low
b. Medium
c. High

10.How McDonald's employees greet you during the time of taking order?
a. With Greetings
b. With smile
c. With Rudeness

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11.How much you are satisfied with the counter ordering & delivery system in
McDonald's on scale of 1 to 5?
1 2 3 4 5
Poor Excellent

12.How do you rate service delivered by employees of McDonald's on scale of 1

to 5?
1 2 3 4 5
Poor Excellent

13.Do you think you have been delivered a quality product for the price
charged?
a. Yes
b. No
c.
14.Does McDonald's provide what was promised to you?
a. Yes
b. No

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