POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 1

Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

It takes a big idea to attract the attention of consumer and get them to buy

your product. People buy products to satisfy their needs and wants. According to

Shep Hyken, a loyal customer is different from a satisfied customer. You cannot

easily determine loyal customers but we can make them satisfied by meeting their

expectation. You know that it is not enough to earn their loyalty; it’s more important

to make them regular customers.

Nowadays, food is a large business industry in our country. Fast food plays

an important role in everyone’s day-to-day life. The term fast food is a type of

mass-produced food that is prepared and served very quickly. Fast foods are quick

alternatives to home-cooked meals and are low cost. Most served products are

hamburgers, pizzas, chicken, fries or sandwiches. It was first popularized in the

1950’s in United States and normally refers to food sold with pre-heated or

precooked ingredients and served into to package form for take-out.

This study would determine the different factors that affect the patronage of

consumers on fast food chains. Consumers continue to patronize fastfood because

of its affordability, their own choice of foods, ambiance and cleanliness of the

place. Foods are served quick, employees’ good attitude and the likes. They also

save time, fulfill their starvation for pleasure, and for social interactions.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 2

Background of the Study

Patronage is a regular business that is given by a particular customer to a

store restaurant or businesses. Patronage intentions can be a gathering of

customer satisfaction that is a task of cognitive assessment of expectations to the

consumption and real experience of an individual. Most work on food choices has

focused on physiological and psychological determinants and factors, with less

attention given to the cultural, historical, social, and demographic considerations of

the customers. This study is about the assessment of factors affecting consumers’

patronage on selected fast food chains located in Santa Maria such as:

Jollibee

Jollibee is founded by Filipino-Chinese Tony Tan Caktiong. His family began as a

two-branched ice cream parlor in 1975 at Cubao offering hot meals and

sandwiches. The original company name was Jolibe. Then became Jolly Bee and

eventually to Jollibee. Their success was phenomenal. By 1994 he got Greenwich

for expansion for their pizza-pasta segment and by the end of the year, there are

148 Jollibee stores nationwide. By 1999 Jollibee opened another 50 stores

nationwide making a total of 350 stores. By 2000, 31 more Jollibee stores opened,

giving a total of 381 stores, Jollibee also obtains Chowking Foods Corporation.

Among all the fast food chains here in the Philippines, Jollibee Food Corporation is

considered to be the most popular choice among all the Filipinos.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 3

Mc Donalds

1955: The Founder. Ray Kroc started it all when he bought the franchise of a small

burger joint owned by brothers Dick and Mac McDonald. He opened his first

restaurant in Des Plaines, Illinois. Five years later, he bought the exclusive rights

of the name, McDonald’s. McDonald’s continues to serve close to 68 million in over

119 countries every day. Today, McDonald’s has grown to have more than 36,000

restaurants all over the world. It was in 1981 when George T. Yang opened the

first-ever McDonald’s here in the Philippines. The historic restaurant still stands on

its original location in Morayta, Manila. Today, McDonald’s has grown to become

one of the country’s leading fast food chains with more than 500 restaurants

nationwide, with President and Chief Executive Officer Kenneth S. Yang at the

helm, McDonald’s is now a Multibillion-Peso company that continues to serve

Filipinos all over the country.

Kentucky Fried Chicken

For the man world-famous for his fried chicken, Harland David Sanders or Colonel

Sanders, began his life far from the kitchen. In1950, Sanders went on to take the

biggest leap of his professional career — where he finalized the original recipe of

11 secret herbs and spices. A decade later, Sanders’ success in the food business

flocked all over the United States and Canada with over 600 franchise outlets.

Seven (7) years after, KFC found a home in the Philippines. The Colonel donated

millions to charity, schools and hospitals. Today, as the Colonel’s legacy continues

to grow, we are constantly reminded of his journey— a man who found his passion
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 4

at his 60s, to becoming a world renowned chef who humbly introduced his recipe

in all corners of the globe. KFC Philippines Milestones Kentucky Fried Chicken has

come a long way since it first set foot in the Philippines in 1966— from the humble

beginnings of Colonel Sanders serving travelers in the back of a filling station, to

selling chicken by the bucket in 1957.

Theoretical Framework

The Theory of Reasoned Action was developed by Fishbein and Ajzen

(1975, 1980). In this study, variables external to the theory of reasoned action

were included in other to predict consumer’s behavioral intention to patronize fast

food restaurants. The variables included food quality, restaurant image, service

quality, atmospheric quality, perceived value, price, quick service,

environment, consumers’ demographics and modernity. In the model are

drawn from various food service literature (Ibrahim and Vignali, 2005; Tabassum

and Rahman, 2012; Nezakati1, Kuan and Asgari, 2011; Ahmad, Ghazali, Othman,

2013; Tat, Sook-Min, Ai-Chin, Rasli and Hamid, 2011; Akbar and Alaudeen, 2012;

Sefian, Jaini, Sharudin and Abdullah, 2013). The variables have in different context

explained some variance in consumer’s behavioral intention to patronize fast food

restaurants.

An Integrative Theory of Patronage Preference by Jagdish N. Sheth states

that the influences on consumer’s patronage behavior are retail life cycle, location,

store image, store positioning, personal characteristics and unemployment.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 5

Conceptual Framework

Figure 1

Input Process
Output
Demographic
profile of the
respondents in
terms of: Presentation of
Data
 Age
 Occupational
Status
Assessment of Assessment on the
customers of
factors affecting
selected fast food
chains for the consumers’
following: patronage on
selected fast food
 Food Quality Analysis of Data chains in Santa
 Restaurant Image Maria, Bulacan
 Service Quality
 Atmospheric
Quality
(Ambiance)
 Perceived Value
 Affordability
 Environment Interpretation of
 Consumers’ data
Demographics
 Modernity
 Quick Service

Rating of factors
that affects
consumer

FEEDBACK
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 6

Statement of the Problem

The purpose of this study is to assess the factors affecting the consumers’

patronage on selected fast food chains in Santa Maria, Bulacan.

It seeks to answer the following:

1. What is the demographic profile of the correspondent in terms of?

1.1 Age

1.2 Occupational Status

2. How do the customers of selected fast food chains assess the following

factors?

2.1 Food Quality

2.2 Restaurant Image

2.3 Service Quality

2.4 Atmospheric Quality

2.5 Perceived Value

2.6 Affordability

2.7 Environment

2.8 Consumers Demographic

2.9 Modernity

2.10 Quick Service

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 7

Scope and Limitation of the Project

The scope of this research is the factor affecting consumers’ patronage on

three fast food chains located in Santa Maria, Bulacan such as Jollibee,

McDonalds and KFC. The information was gathered through the use of

questionnaire. The questionnaires were distributed to customers of the said fast

foods.

Significance of the Study

To the entrepreneur students - As future entrepreneurs, this study can serve

as their basis and guide on how they will deal with their future customers. They

could also determine the difference between loyal and regular customers.

To the employees - This study will serve as their guide for them to improve

their performance to become effective and productive. This would also help

them to understand the customers and how they will deal with them.

To the business owners - The result of the study will serve as their guide to

keep their consumer to be more satisfied in their products and service. This

would also determine what factors affect the decisions of consumers in

patronizing business and will help them in developing new strategies specially

in marketing aspect.

To the future researchers - This can serve as their guide and it will help them

understand customers deeper. This will make their research easier.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 8

Definition of Terms

Atmospheric quality / ambiance – look and feel of a place (mall, restaurant,

tourist destination, etc.) that evokes a unique atmosphere or mood and

makes it 'sticky' (compels people to come and stay around).

Customer demographic – a statistical view of population, generally includes

age, gender, income, schooling, occupation, and so on.

Environment – is the sum total of all external and internal factors that influence

a business. You should keep in mind that external factors and internal

factors can influence each other and work together to affect a business.

Food quality – is the quality or characteristics of food that is acceptable to

consumers. This includes external factors such as appearance (size, color,

gloss and consistency), texture, and flavor; factors such as federal grade

standards (e.g. of eggs) and internal (chemical, physical, and microbial).

Modernity – is the characteristics of modern societies that have capitalistic

economies and democratic political structures, and are highly industrialized

and divided into social classes base on economic status.

Perceived value – is the worth that a product or service has in the mind of the

consumer. For the most part, consumers are unaware of the true cost of

production for the product they buy; instead, they simply have an internal

feeling for how much certain products are worth to them.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 9

Patronage - the material helped and encouragement given by a patron, in this

instance the patron in seen to be a customer in an exchange transaction. It is

the act of being a regular customer to a shop.

Price – a value that will purchase a finite quantity, weight, or other measure of

a good or service. It is the consideration given in exchange for transfer of

ownership. Price forms the essential basis of commercial transactions.

Restaurant image – a firm or business presents themselves to the public

customer and investors.as well as employees

Service quality – an assessment of how well a delivered service conforms to

the client’s expectations. Service business operators often assess the

service quality provided to their customers in order to improve their service,

to quickly identify problems, and to better assess client satisfaction.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 10

Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents conceptual and research literature which are relevant

to the present investigation. In order to gain insight on how to go about with this

research work, several books, journals, master thesis and related materials had

been read, reviewed and linked into the present study.

Foreign Literature

The ability to satisfy customers is energetic for a number of reasons and

avoids dissatisfied customers (Syed and Conway, 2006). It is important to satisfy

the customers for them to patronize the business. In the past, businesses only

focused in the physical aspect of the product while totally neglecting the emotional

and value aspects so they lost many customers in the long run (Nunes and

Cespedes, 2003).

According to Bojanic (2007), most of the research concerning selection of a

restaurant usually is ―…based on identification of determinant attributes‖. The

attributes are taste of food, competitive price, and service response time,

cleanliness of the fast-food restaurant, fast-food restaurant location, amenity,

safety, employee courtesy, restaurant operating hours, and the availability of

healthy menus. This proves that the emotional aspect of the customers is also

important not just the physical aspect of the product. Law, Hui, & Zhao (2004) also
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 11

narrated how staff attitude, food quality, and variety and environment significantly

affect customer satisfaction in fast food outlets.

Ahmad, Ghazali and Othman (2013) noted that factors include the physical

surrounding, service quality and food quality. Sefian, Jaini, Sharudin and Abdullah

(2013) also include food quality, service quality, atmospheric quality and perceived

value as factors influencing consumers’ patronage intention. Nezakati, Kuan and

Asgari (2011) proposed product quality and brand trust as the dominant variable

that drives the customer to patronize their preferred fast food restaurants.

Perceived value has drawn in many researchers after considering service

quality, customer satisfaction and client commitment. All the same perceived value

has gained great attention as execution techniques (Vantrappen, 1992). Sweeney

and Soutar (2001); besides that, perceived value varies linking on sorts of products

or services, and personal characteristics of consumers (Lee, Yoon, & Lee, 2007).

According to Olise, Okoli and Ekeke (2011) what determines a customer's

choice of selecting or patronizing a fast food restaurant differs from country to

country and from region to region as a result of cultural, environmental and

socioeconomic specifics, since that customers have different preferences

depending on the culture and traditions on their place.

Many companies use social media marketing to easily reach their customers

and create a good relationship with them since that many people are engaged in
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 12

social media. Certainly social media helps the company to have an efficient way of

advertising their product, creates fast and convenient transaction with their

customer (Khan, K. 2010).

Local Literature

No business can exist without its customers. It is a common saying that ―it

takes five times more effort and cost to gain one new customer as it takes to

maintain one current customer‖ (Victoria and Paragua, 2010).

In an article by Soriano (2002), he mentioned that quality of food and fresh

ingredients were the reason why customers return to a restaurant. The most

important reason for customers’ intention of return to the restaurant was the quality

of food because Soriano also found that quality of food is significantly more

important than any other attribute.

Affordability and variety of the foods were the general basis for satisfaction

of the typical student consumer (Azanza, 2009), since those students don’t have

their own source of income.

Velasco (2015) said that in Metro Manila, fast food is no longer just about

having a quick and easy eating solution. The cheap prices definitely save the

wallet, but when he or she craves for it they tend to forgot the price instead they

just enjoy the food rather than thinking the price. It’s definitely exciting to dine out,

even when it comes to the straight forward simplicity of fast food.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 13

As the Philippine market becomes more involved with global business, the

importance of service quality increases, because it is a big factor to be able to

compete globally (Munoz, Raven and Welsh, 2006).

According to Winston Asiedu Inkumsah work, Andaleeb and Conway (2006)

the pricing of restaurant items varies according to the type of restaurant. If the price

is high, customers are like to expect high quality.

Quality of the services can be the differences between success and failure

in both service and manufacturing firms (Gupta et. al., 2005). Service quality,

customer satisfaction and customer value have become the main concerns in both

manufacturing and service organizations (Wang et., al., 2004) as many researches

recognize that service quality can bring an organization a sustainable competitive

advantage (Moore, 198 and Lewis, 1989).

The Philippine trend toward service quality was initiated in 1880’s when the

business realized that maintaining competitive advantage is not guaranteed by a

quality product, standing alone (Van der Wal et. al., 2002).

According to Kumar et. al., (2009), ―High quality service can result in high

customer satisfaction and increases customer loyalty.‖ Thus, customer satisfaction

is the outcome of service quality (Parasuraman et., al., 1998) Naeem and Saif

(2009), which can further stimulate the profit and the growth of the businesses
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 14

through increased customer loyalty that is a direct result of customer satisfaction

(Hesket et., al., 1997).

As a result, many organizations are paying increasing attention to improve

service quality (Gupta et., al., 2005). Service quality is considered a more important

order winner that produce quality in some manufacturing industries (Ghobadian et.,

al., 1994), as service quality improvements can lead to customer satisfaction and

cost management that result in improved profits (Stevenson 2002).

Foreign Studies

A study conducted by Petti John and Luke (1997) on which restaurant

attributes were most important in contributing to consumer satisfaction of fast food

restaurant patrons, found that the food quality was the most rated, followed by

cleanliness and value. Menu variety and store atmosphere were ranked as least

important.

Factors ranging from food quality, service quality, environment, price, quick

service (Tabassum and Rahman, 2012), restaurant image (Ling, Mun and Ling,

2011) and fast food store image factors, customers' values of eating-out,

customers' opinions about the globalization (Ibrahim and Vignali, 2005) have been

considered to influence customers’ patronage of fast food restaurants in regions

with different cultural, environmental and socioeconomic specifics.

Store atmospheric cues, such as color, lighting, interior decoration, or music,

form the overall context within which shoppers make patronage decisions and are
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 15

likely to have a significant impact on store image (research by Milliman,1982;

Bellizzi, Crowley, and Hasty, 1983; Baker, Grewal, and Parasuraman, 1994;

Chebat, Gelinas-Chebat, and Vanisky, 1995; Dube, Chebat, and Morin, 1995)

Anderson, Fornell and Lehmann (1994) in the ―Customer Satisfaction,

Market Share, and Profitability: Findings from Sweden‖, discussed how

expectations, quality, and price should affect the customer satisfaction and why

customer satisfaction, in turn, should affect profitability. The findings supported a

positive impact of quality on customer satisfaction, and, in turn, profitability.

Furthermore, these investigators revealed that customer satisfaction is considered

to be based upon value; therefore, it is closely related to the price of a product,

unlike the service quality that is not related to price.

Blythe (2001) said that the family, among all groups is probably the most

powerful reference group. The favorable consumer behavior was determined to be

persistent irrespective of the customers’ occupation, social class (which was

significant, given that the study was conducted in India, where social class is highly

structured), or the demographic factors.

Previous studies have established that the demographics can affect the

consumers’ patronage of fast food restaurants and that frequency of visits to such

establishments is related to the gender, age and various household characteristics

of every person. (Grazin and Olsen, 1997).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 16

Akbay et al. (2007) concluded that demographic variables such as age and

income as well as other consumer perceptions of attributes such as price and

healthiness influence the patronage of the consumers of different fast food

restaurants. Sinha and Banerjee (2004) concluded in their study that store

convenience and customer services positively influences consumer store selection.

Oyewole (2007) also concluded that gender, age, marital status and income

affect the frequency of visits made by consumers to fast food outlets. Hence,

marketing managers of fast food restaurants need to give due importance to

demographics when designing marketing strategies.

Goswami (2009) concluded that customer patronage to grocery stores was

found to be positively related to location, helpful and trustworthy salespeople,

home shopping, cleanliness, offers, and qualities and negatively related to travel

convenience.

Local Studies

Every customer is the foundation of any business' success. There are many

ways a restaurant can offer good customer service to patrons. It does not matter

how fabulous the restaurant decoration is or how delicious the food is. If the service

does not meet or exceeds customers’ expectations, then there is a chance that

they will not come back anymore and a big chance that they will badmouth your

business. Customer satisfaction covers different aspects of restaurants’ day to day

operations. By prioritizing the needs and wants of the customers, there will be an
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 17

increase of customers’ retention. The whole staff should be involved in achieving a

good customer satisfaction feedback such as clean restrooms, good food, and a

friendly and inviting atmosphere (Gadais, 2005).

Since the Philippines has one of the most developed fast food restaurant

segments in Asia and nearly all Filipinos (99 percent) are fast food patrons and are

widely used by different age groups, the researchers decided to cover this

particular industry (Nielsen, 2005).

Aure (2017) cited that customers looking to try new food concepts and bond

with a group of family, friends and loved ones appreciate the ambiance and variety

offered by the format, while starting entrepreneurs appreciate the incubator-like

nature of the food parks in terms of testing novel concepts with minimal capital.

Consumer nowadays tend to like restaurants with a great aura that help them to be

pleased and satisfied.

According to Mark Keith Muhumuza (2015) service quality and customer

satisfaction are very important concepts that companies must understand to remain

competitive and grow in the market industry.

The customer satisfaction and service quality is another factor for fast food

chains that must be considered. If they meet the needs and requirements of their

customers within a time frame, it will definitely have a good impact on the business

because it will generate more sales and the customers will be loyal in patronizing

the fast food chain. Further, good feedback makes business well-known, progress
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 18

rapidly, and portrays a good image in the business industry (Capistrano and

Padilla, 2013).

De Castro, C., Garcia, M., Meneres, E., Toribio, J. (2007) noted that the time

it takes for an employee to response to a customer’s request is same as the

promptness of the employee in entertaining request or help. If the employee

doesn’t respond quickly to the eager request of the customers, that will be a bad

feedback for the business.

Marasigan (2010) encouraged the employees of the company to be more

consistent in their behavior, attitude and performance in dealing with customer, to

have a good and sure result of the business.

The According to Alpha Eliza Notario delivering good service to customers is

the main goal that every service business strive to accomplish from time to time.

Ability for a service provider to deliver service quality is considered an essential

strategy for success and survival in today’s competition.

Several studies have identified that some of the factors that can influence

customer’s satisfaction of their dining experience, include the wait time, quality of

the service, responsiveness of front-line employees, menu variety, food prices,

food quality, food consistency, ambiance of the facilities and convenience (Suek

and Hensley 2004; Iglesias and yague 2004; Andaleeb and Conway 2006).

Result of the study by Pocholo Miguel M. Valbuena, Norell R. Paunlagui, and

Sonn R. Matanguihan showed that the customers of Max’s Restaurant in SM Sta

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 19

Rosa were all very satisfied with its wait-staff service, food quality and facilities.

However, some customers thought that there were still some areas that need

improvement as what can be seen on their suggestions. Hence, the study

recommended that Max’s Restaurant should improve the quality of its service by

conducting seminars and trainings to the subject company in a franchise type of

business.

Synthesis of the Literatures and Studies

The researchers have gone through a lot of processes in order to accumulate

enough local and foreign studies and literature that is required for this research

study. The researchers conducted a library visit in the different libraries.

The ability to satisfy customers is energetic for a number of reasons, thus

avoiding dissatisfied ones (Syed and Conway, 2006).

In the past, businesses only focused on the physical aspect of the product

while totally neglecting the emotional and value aspects so they lost many

customers in the long run (Nunes and Cespedes, 2003).

According to Bojanic (2007), most of the research concerning selection of a

restaurant usually is ―…based on identification of determinant attributes‖.

Law, Hui, & Zhao (2004) also narrated how staff attitude, food quality, and

variety and environment significantly affect customer satisfaction in fast food

outlets.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 20

Ahmad, Ghazali and Othman (2013) noted that factors include the physical

surrounding, service quality and food quality.

Sefian, Jaini, Sharudin and Abdullah (2013) also include food quality,

service quality, atmospheric quality and perceived value as factors influencing

consumers’ patronage intention.

Nezakati, Kuan and Asgari (2011) proposed product quality and brand trust

as the dominant variable that drives the customer to patronize their preferred fast

food restaurants.

All the same perceived value has gained great attention as execution

techniques (Vantrappen, 1992).

Perceived value varies linking on sorts of products or services, and personal

characteristics of consumers (Lee, Yoon, & Lee, 2007).

According to Olise, Okoli and Ekeke (2011) what determines a customer's

choice of selecting or patronizing a fast food restaurant differs from country to

country.

Certainly social media helps the company to have an efficient way of

advertising their product, creating fast and convenient transaction with their

customer (Khan, K. 2010).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 21

It is common that ―it takes five times more effort and cost to gain one new

customer as it takes to maintain one current customer‖ (Victoria and Paragua,

2010).

In an article by Soriano (2002), he mentioned that quality of food and fresh

ingredients were the reason why customers return to a restaurant.

Affordability and variety of the foods were the general basis for satisfaction

of the typical student consumer (Azanza, 2009),

Velasco (2015) said that in Metro Manila, fast food is no longer just about

having a quick and easy eating solution.

The importance of service quality increases, because it is a big factor to be

able to compete globally (Munoz, Raven and Welsh, 2006).

According to Winston Asiedu Inkumsah work, Andaleeb and Conway (2006)

the pricing of restaurant items varies according to the type of restaurant. Quality of

the services can be the differences between success and failure in both service

and manufacturing firms (Gupta et., al., 2005).

Service quality, customer satisfaction and customer value have become the

main concerns in both manufacturing and service organizations (Wang et., al.,

2004)
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 22

Many researches recognize that service quality can bring an organization a

sustainable competitive advantage (Moore, 198 and Lewis, 1989).

The business realized that maintaining competitive advantage is not

guaranteed by a quality product, standing alone (Van der Wal et., al., 2002).

According to Kumar et., al., (2009), ―High quality service can result in high

customer satisfaction and increases customer loyalty.‖

Customer satisfaction is the outcome of service quality (Parasuraman et.,

al., 1998) Naeem and Saif (2009),

Customer satisfaction can further stimulate the profit and the growth of the

businesses through increased customer loyalty that is a direct result of customer

satisfaction (Hesket et., al., 1997).

Many organizations are paying increasing attention to improve service

quality (Gupta et., al., 2005).

Service quality is considered a more important order winner that produce

quality in some manufacturing industries (Ghobadian et., al., 1994),

Service quality improvements can lead to customer satisfaction and cost

management that result in improved profits (Stevenson 2002).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 23

Petti John and Luke (1997) determined which restaurant attributes were

most important in contributing to consumer satisfaction of fast food restaurant

patrons.

Factors ranging from food quality, service quality, environment, price and

quick service (Tabassum and Rahman, 2012),

Restaurant image (Ling, Mun and Ling, 2011) and fast food store image

factors, customers' values of eating-out, customers' opinions about the

globalization. (Ibrahim and Vignali, 2005) have been considered to influence

customers’ patronage of fast food restaurants in regions with different cultural,

environmental and socioeconomic specifics.

Store atmospheric cues, such as color, lighting, interior decoration, or music,

form the overall context within which shoppers make patronage decisions are likely

to have a significant impact on store image (research by Milliman,1982; Bellizzi,

Crowley, and Hasty, 1983; Baker, Grewal, and Parasuraman, 1994; Chebat,

Gelinas-Chebat, and Vanisky, 1995; Dube, Chebat, and Morin, 1995)

Anderson, Fornell and Lehmann (1994) revealed that customer satisfaction

is considered to be based upon value; therefore, it is closely related to the price of

a product, unlike the service quality that is not related to price.

Blythe (2001), said that the family, among all groups is probably the most

powerful reference group.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 24

The demographics can affect the consumers’ patronage of fast food

restaurants and that frequency of visits to such establishments is related to the

gender, age and various household characteristics of every person. (Grazin and

Olsen, 1997).

Akbay et al. (2007) concluded that demographic variables such as age and

income as well as other consumer perceptions of attributes such as price and

health influence the patronage of the consumers.

Sinha and Banerjee (2004) concluded in their study that store convenience

and customer services positively influence consumer store selection.

Oyewole (2007) also concluded that gender, age, marital status and income

affect the frequency of visits made by consumers to fast food outlets.

Goswami (2009) concluded that customer patronage to grocery stores was

found to be positively related to location, helpful and trustworthy salespeople,

home shopping, cleanliness, offers, quality and negatively related to travel

convenience.

Every customer is the foundation of any business' success. There are many

ways a restaurant can offer good customer service to patrons (Gadais, 2005).

The Philippines has one of the most developed fast food restaurant segments

in Asia and nearly all Filipinos (99 percent) are fast food patrons (Nielsen, 2005).
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 25

Aure (2017) cited that consumer nowadays tend to like restaurants with a

great aura that help them to be pleased and satisfied.

According to Mark Keith Muhumuza (2015) service quality and customer

satisfaction are very important concepts that companies must understand to remain

competitive and grow in the market industry.

Customer satisfaction and service quality are factors for fast food chains that

must be considered (Capistrano and Padilla, 2013).

De Castro, C., Garcia, M., Meneres, E., Toribio, J. (2007) noted that the time

it takes for an employee to response to a customer’s request is same the as the

promptness of the employee in entertaining request or help.

Marasigan (2010) encouraged the employees of the company to be more

consistent in their behavior, attitude and performance in dealing with customer, to

have good and sure result to the business.

According to Alpha Eliza Notario delivering good service to customers is the

main goal that every service business strives to accomplish from time to time.

Several studies have identified that some of the factors that can influence

customer’s satisfaction of their dining experience (Suek and Hensley 2004; Iglesias

and yague 2004; Andaleeb and Conway 2006).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 26

According to the work of Pocholo Miguel M. Valbuena, Norell R. Paunlagui,

and Sonn R. Matanguihan, the customers of Max’s Restaurant in SM Sta Rosa

were all very satisfied with its wait-staff service, food quality and facilities.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 27

Chapter 3

RESEARCH METHODOLOGY

This chapter deals with the research methodology applied for the purposes

of this study that covered the areas like research design, population of study,

sampling technique, data collection method, data analysis method and limitations.

Research Method Used

Researchers used the descriptive method of research. A descriptive

research provides situations, conditions, and events that occur in the present. It is

also called statistical research. It is used to describe characteristics of a population

or phenomenon being studied. The characteristics used to describe the situation or

population are usually some kind of categorical scheme also known as descriptive

categories. A descriptive research can be explained and known as a statement of

affairs presenting by the researcher having no control over the variables taken and

learned. However, this method can be characterized simply as the attempt to

study, determine, describe or identify "what is". Descriptive research main objective

is to ―aimed at casting the light on current issues or problems through a process of

data collection that enables them (the researchers) to describe the situation more

completely than was possible without employing this method.‖

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 28

Sampling Technique Used

The sampling method used is simple random sampling. It is a type of

probability sampling technique with a simple random sample. There is an equal

chance of selecting each unit from population being studied when creating the

sample. Our desired sample size was 200 customers around Santa Maria.

Population and Sample Size

The respondents of this study were the customers of Jollibee, KFC, and

McDonalds at Santa Maria, Bulacan. The study selected a sample size of 200

customers around Santa Maria, Bulacan.

Description of Respondents

This research was focused on the assessment of the factors affecting

consumer’s patronage on selected fast food chain in Sta. Maria, Bulacan. To make

the survey easier, the researchers selected customers aged15 and above, male or

female around Santa Maria, Bulacan.

Instrumentation

The research instrument used in this study was the checklist method

questionnaire in which the questions were formed by the researchers. The

questionnaire consists of 3 categories namely: (1) Demographic profile of the

respondents, (2) Assessment of customers of selected fast food chains and (3)
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 29

Ranking of factors that affects consumer patronage. The questions were listed

according to the categories to have reliable results.

Data Gathering Procedure

The researcher conducted a study through the use of checklist method

questionnaire. Based on the study, the survey was created using questions related

to different research and individual. The questionnaire would be distributed to the

selected respondents of the fast food chains. They gathered the result from the

questionnaires and proved the assessments of all the selected respondents in

relation to the factors affecting the consumer’s patronage of selected fast food

chains.

Statistical Treatment of Data

The statistical treatments that the researcher utilized to accomplish this

study were the frequency, ranking and percentage. These methods helped the

researchers determine the factors that affect the consumer’s patronage.

1. Frequency - A frequency distribution is a tabular representation of a survey data

set used to organize and summarize the data. Specifically, it is a list of either

qualitative or quantitative values that a variable takes in a data set and the

associated number of times each value occurs. The researchers used the tools

in tabulating the data collected from the questionnaire.

2. Percentage - A percentage frequency distribution is a display of data that

specifies the percentage of observations that exist for each data point or
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 30

grouping of data points. It is a particularly useful method of expressing the

relative frequency of survey responses and other data.

Formula: f
X 100 %
n

Where: f= frequency n= total number of population

3. Weighted mean - an average in which each quantity to be averaged assigned a

weight. This weighting determines the relative importance of each quantity on

the average. Weightings are the equivalent of having that many liked items

which the same value involved in the average.

Formula: =

Where x = weighted mean

x= … = items given

f = frequencies corresponding to the items given

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 31

Chapter 4

PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA

This chapter presents the data collected from respondents that had

undergone statistical treatment. To enhance the understanding of the study, the

data were grouped, statistically treated to, in the form of table in order to answer

the specific questions in the statement of the problems.

Based on the result obtained and presented, the following are the result of the

analysis and interpretation data.

1. Profile of the Respondents

Table 1

1.1 Frequency and percentage distribution according to age.

Age Frequency Percentage (%)

15-25 95 47.5%

26-35 68 34%

36 and above 37 18.5%

Total 200 100%

Table 1 shows the distribution of respondents according to their age. As shown

47.5% or 95 out of the 200 respondents are 15-25 years old followed by 34% or
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 32

68 of 200 respondents are from 26-35 years old and 18.5% or 37 out of the 200

respondents are 36 and above years old.

1.2 Frequency and percentage distribution according to occupational status

Table 2

Occupational status Frequency Percentage (%)

Student 80 40%

Employed 66 33%

Unemployed 54 27%

Total 200 100%

This table shows that out of 200 respondents 80 were student with a percentage

of 40%. 66 were employed with the percentage of 33% and 54 were unemployed

with a percentage of 27%.

2. Assessment of customers of selected fast food chains.

Jollibee

Table 3

Factors General Weighted Interpretation

Mean

Food Quality 4.35 Excellent

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 33

Restaurant Image 4.45 Excellent

Service Quality 4.00 Good

Atmospheric Quality 4.25 Excellent

Perceived Value 4.15 Good

Affordability 4.34 Excellent

Environment 4.17 Good

Consumers Demographic 4.13 Good

Modernity 3.27 Fairly good

Quick Service 4.04 Good

Total 4.12 Good

This table shows the assessment of how the customers of Jollibee rated the

following factors. The customers rated food quality as excellent with a general

weighted mean of 4.35, restaurant image as excellent with a general weighted

mean of 4.45, service quality as good with a general weighted mean of 4.00,

atmospheric quality as excellent with the general weighted mean of 4.5, perceived

value as good with a general weighted mean of 4.15, affordability as excellent with

a general weighted mean of 4.34, environment as good with a general weighted

mean of 4.17, consumers demographic as good with a general weighted mean of

4.13, modernity as fairly good with a general weighted mean of 3.17 and quick

service as good with a general weighted mean of 4.04.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 34

Mc’Donalds

Table 4

Factors General Weighted Interpretation

Mean

Food Quality 4.25 Excellent

Restaurant Image 4.39 Excellent

Service Quality 3.97 Good

Atmospheric Quality 4.35 Excellent

Perceived Value 4.16 Good

Affordability 4.28 Excellent

Environment 4.21 Excellent

Consumers Demographic 4.07 Good

Modernity 4.19 Good

Quick Service 4.05 Good

Total 4.19 Good

This table shows the assessment of how the customers of McDonalds rated

the following factors. The customers rated food quality as excellent with the

general weighted mean of 4.25, restaurant image as excellent with the

general weighted mean of 4.39, service quality as good with the general

weighted mean of 3.97, atmospheric quality as excellent with the general

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 35

weighted mean of 4.35, perceived value as good with the general weighted

mean of 4.16, affordability as excellent with the general weighted mean of

4.28, environment as excellent with the general weighted mean of 4.21,

consumers demographic as good with the general weighted mean of 4.07,

modernity as good with the general weighted mean of 4.19 and quick service

as good with the general weighted mean of 4.05.

KFC

Table 5

Factors General Weighted Interpretation

Mean

Food Quality 4.08 Good

Restaurant Image 4.01 Good

Service Quality 3.84 Good

Atmospheric Quality 4.07 Good

Perceived Value 3.88 Good

Affordability 3.98 Good

Environment 4.02 Good

Consumers Demographic 3.99 Good

Modernity 4.04 Good

Quick Service 3.97 Good

Total 3.99 Good

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 36

This table shows the assessment of how the customers of KFC rated the

following factors. The customers rated food quality as good with the general

weighted mean of 4.08, restaurant image as good with the general weighted mean

of 4.01, service quality as good with the general weighted mean of 3.84,

atmospheric quality as good with the general weighted mean of 4.07, perceived

value as good with the general weighted mean of 3.88, affordability as good with

the general weighted mean of 3.98, environment as good with the general

weighted mean of 4.02, consumers demographic as good with the general

weighted mean of 3.99, modernity as good with the general weighted mean of 4.04

and quick service as good with the general weighted mean of 3.97.

Figure 2

ASSESSMENT OF THE FAST FOOD

CHAIN
Jollibee Mc Donalds KFC

4.25
4.2
4.15
4.1
4.05
4
3.95
3.9
3.85
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 37

Chapter 5

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

This chapter presents the highlights of the important finding as well as the

conclusion and the recommendations that researchers wish to suggest based on

the findings of the study.

Findings

Findings revealed that in terms of age 47.5% or 95 out of the 200

respondents are 15-25 years followed by 34% or 68 who are 26-35 years old,n

18.5% or 37 out of 200 respondents are 36 and above years old.

In terms of occupational status, out of the 200 respondents, 80 were student

with a percentage of 40%, 66 were employed with the percentage of 33% and 54

were unemployed with a percentage of 27%.

In Jollibee, the following factors were assessed as excellent, food quality with

an average weighted mean of 4.35, restaurant image with an average weighted

mean of 4.45, atmospheric quality with an average weighted mean of 4.25,

affordability with an average weighted mean 4.34 and modernity with an average

weighted mean of 3.27. The remaining factors were assessed as good. This

proves that customers are patronizing Jollibee because of its restaurant image.

For Mc Donalds, the food quality with an average weighted mean of 4.25,

restaurant image with an average weighted mean of 4.39, atmospheric quality

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 38

with an average weighted mean of 4.35, affordability with an average weighted

mean of 4.28, and environment with an average weighted mean of 4.21 are

excellent factors why customers chose to patronize them, while all the remaining

factors were assessed as good. Restaurant image is the reason why consumers

continuously patronize Mc Donald’s.

In KFC, customers assessed all factors as good but the taste of the

products under food quality was assessed as excellent.

In terms of ranking food quality and affordability are the most influential

factor in choosing fast food chains and consumer demographic as the least

influential.

Conclusions

Based on the findings of this study, most of the respondents were students’

aged 15-25 years old. Customers patronized Jollibee because food quality,

restaurant image, atmospheric quality, affordability and modernity while Mc

Donald’s is patronized because of food quality, restaurant image, atmospheric

quality, affordability, and environment. KFC is patronized because of its popularity

in the Philippine industry. Food quality and affordability are the most influential

factor in choosing fast food chains and consumer demographic as the least

influential.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 39

Recommendations

This research study of assessment of factors affecting consumers’ patronage

of selected fast food chains would like to recommend the following:

 The three fast food chains should focus on the behavior and performance

of their employees because based on the study, employees’ promptness

makes the costumers dissatisfied.

 Food quality is one of the most influential factor that affect customers’

patronage so fast food chains should continuously improve the quality of

their products.

 Since affordability is one of the most influential factor, they must always

consider the buying capability of the customers when pricing their

products. They could also provide more saver meals specially for students

since they still don’t have their own source of income.

 Front-line staff has a very critical role in the business so they must be well

trained and oriented.

 To ensure continuous patronage, they should improve their services and

maintain the cleanliness of their facilities.

 Employees should build good relationship among their customers and be

approachable to attract more.

 Fast food chains should consider customers buying capability on pricing

their products.