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Determinants of Customer Experience in Fast Food Restaurants: A Case Study of Fast

Food Chains in Faisalabad

Submitted by ______

For the Fulfilment of the Degree of ______

Submitted to___________

University of ________

Date _______________
Acknowledgement

I found it obligatory to construct some words for conveying my gratitude and thanks to

all the people who remained involved with me during the preparation of this dissertation. At first,

I believe it is all due to the thirst for knowledge bestowed by God that motivates me to continue

my journey towards attainment of knowledge. I am thankful to Almighty God for giving me

capabilities, resources and impulsion to pursuit for knowledge.

I am very much thankful to my supervisor Professor ____ for being so kind and

supporting throughout the preparation of the dissertation. I believe that his keen attention and

concern regarding the research study provided me with guidelines to keep my work on the right

track. His valuable advices and support enabled me to conduct the research work and to present

the outcome of my study in this dissertation form.

I would also like to convey my thankfulness to all of my family members for of their

espousal and encouragement for me. Their support and cooperation kept me motivated and

focused on my work and I became able to accomplish the task within the decided time without

any interruption or problem caused by them. My friends have also supported me by giving me

certain ideas and guidelines for conducting the research work. I appreciate each and every word

of support, motivation, cooperation and encouragement that any people says to me during my

work and allow me coming up with the research study report that I believe is result of combined

support of my supervisor, family and friends.

i
STATEMENT OF ORIGINALITY

I hereby declare that this submission is my own work and no significant part of this

dissertation has been taken from any document published or written by any other writer. I also

affirm that the contents of this dissertation have not been previously presented for the submission

of any degree. All the intellectual contents of the dissertation are output of my own work and

knowledge. All the contributions made during the preparation of this dissertation are

acknowledge

Sincerely,

NAME__________________

Date:

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Executive Summary

Will be done in the end

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Table of Contents
Acknowledgement .. i
Statement of Originality ii
Executive Summary...... iii
1. Introduction ....1
1.1. Background ..
1.2. Aims and Objectives of Research ...
1.3. Research Rationale ..
1.4. Research Design ..
1.5. Scope and Limitations .
2. Literature Review ....
2.1. Pakistani Fast Food Restaurant Industry ..
2.1.1. Evolution and Popularity of Fast Food .. ..
2.1.2. Factors contributed towards Fast Food Restaurant Industry growth .....
2.1.3. Popular Fast Food Chains in Pakistan
2.1.3.1. KFC ..

2.1.3.2. Pizza Hut .. ..


2.1.3.3. McDonald .. .

2.1.3.4. Fri Chick ..


2.1.3.5. Hardees .. ..

2.2. Factors Affecting Customer Experience in fast food restaurant .


2.2.1. Food Quality .
2.2.2. Service Quality
2.2.3. Customer experience ..
2.2.4. Ambiance
2.2.5. Perceived Value
3. Research Design .
3.1. Research Approach ...
3.2. Research type ....
3.3. Research Methodology ......
3.3.1. Secondary analysis of data ..
3.3.2. Statistical Survey ...
3.3.2.1. Survey Sampling .

3.3.2.2. Likert Scale ...


3.3.2.3. Variables .

3.3.2.4. Data Collection Method ...


3.3.2.5. Questionnaire

3.4. Basis for data analysis


4. Findings of Research ..
4.1. Key findings from Secondary analysis of data
4.2. Key findings of Statistical Survey ...
4.2.1. Demographics Variables ..
4.2.2. Consumer Satisfaction Variables ..
4.2.3. Most Popular Fast Food Restaurant ..
5. Interpretation and Discussion ..
5.1. Interpretation of the Research Findings
5.2. Discussion of the Main issue
5.2.1. Answering the research question
5.2.1.1. Demographics of Fast Food Customers ..
5.2.1.2. Key factors effecting customer experience

5.2.1.3. Most Attractive Fast Food Restaurant


6. Recommendations and Conclusion ..
6.1. Research Summary ..
6.2. Recommendations for Fast food ..
6.3. Conclusion .
Reference List
List of Tables

Table 4.1: Respondents Profile

Table 4.2: Age Group of Survey Participants

Table 4.3: Genders of Survey Participants

Table 4.4: Occupation of Survey Participants

Table 4.5: Income Group of Survey Participants

Table 4.6 Descriptive Statistics of Critical Variables

Table 4.7: Coefficient of determination (r2)

Table 4.8: Correlations matrix of fast food restaurant

Table 4.9: Analysis of factors affecting customers experience in a restaurant

Table 4.10: Factors that influence customers experience

Table 4.11: KMO and Bartlett's Test

Table 4.12: Favourite Fast Food Restaurant


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Chapter 1. Introduction

The market of Fast Food Restaurants is a developing industry currently in Pakistan banking

profoundly on the patterns of changing standard of living, rise in population of the aimed age

group and the associated rise in employment of females (Riaz, Wahla & Naseem, 2006).

Considering present frantic lifestyles, products that are meant to save time are becoming popular

and demanded the most evident being the fast food. The proportion of development in customer

disbursements on fast food has directed most other sectors of the restaurant industry market for

much of the past 10 years (Yahya, Zafar and Shafaq, 2013).

Increasing demand for better convenience has resulted in more expenditure where public need

convenient and quick food; people dont look to waste time on cooking food, traveling to get

food, or long waits for food at eating places. Consequently, clienteles depend more on fast food.

Considering this fact, fast food restaurants are introducing innovative techniques for marketing

of their business that is going to save precious time of the consumers (Clark & Wood, 1999).

Customers of food industry want to multi-task when it comes to eating food, for example work,

travel, or shopping, thus giving a smaller amount time for food, which results in increased

demand for fast food restaurants (Bowman & Vinyard, 2004).

Keeping in view the continuous popularity of fast food in Pakistan it has become an important

area of concern for the marketing specialists and social scientists to find out the factors that

contribute towards customer satisfaction vising the fast food restaurant. Taking notice of the

growing popularity of fast food trend in Pakistan, several fast food chains have already

established their chain of restaurants across the country whereas many local fast food companies

have also been providing variety of fast food to the customers in different cities. Eventually, the
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competition has become very intense in the fast food industry because the customers have been

provided with wide array of choices and options regarding the choice of restaurant and meal

(Cronin & Taylor, 1992). In this scenario, the fast food chains have to strive hard to attract the

attention of the customers and they have to focus more towards providing customers with better

food quality, competitive price, improved customer service and food variety so that the people

can perceive greater value for their money and can decide to visit again after getting satisfied

with their experience of visiting the restaurant (Mashhadi and Rehman, 2012).

The fast food restaurant thus have an important task of identifying the factors that contribute to

customer satisfaction so that they can focus more on those particular area and eventually can

enjoy increase in their loyal customer base. There have been several research studies conducted

to find out the factors that determine the customer satisfaction in the fast food restaurant industry

and it has been unveiled that the customers at large look for food quality, service quality, value

for their time and money and ambiance when they visit a fast food restaurant (Bitner, 1992;

Bojanic, 2007; Darian & Tucci, 2011). However, when the marketing managers and fast food

owners have to make decision on the basis of such research, they cannot simply use the these

generalized research findings (Shaikh & Rehman, 2010). Rather they need to have research

outcomes related with their specific areas because every locality, community and culture tend to

have different perception and the consumer satisfaction determent may also vary on these bases.

It has been discovered that there are some research studies conducted to find out the determents

of consumer satisfaction in Pakistan and these studies have so far focused on metropolitan cities

like Peshawar, Karachi and Lahore and despite being an important and populated metropolitan

city, Faisalabad fast food industry has not been yet researched in detail by any social scientist.
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Hence, this research report is aim at studying the determents of customer satisfaction in fast food

restaurant industry of Faisalabad by gathering information and data from different primary and

secondary sources. Along with the review of available literature, a survey among 250 fast food

consumers of Faisalabad has also been conducted to provide information about their

demographics, preference of fast food restaurant and determents of customer satisfaction.

1.1. Background

Pakistan, is ranked 6th because of its population, it is even described with a very high growth

rate of population and also it is also in the top three positions because of its total population

around 154.4 million people. Therefore, it has also affected the income and it has said to have

increased to US$ 850 while the age group between 16 to 65 years is the productive one and said

to take the major part of population approximately 70% of the total population. The rate in food

utilization has also risen because of the increased employment rate of male and female aging

between 21 to 30 years (fast food lovers) consequently the contribution to the total income

generated is supposed to be increased (Dilawar, 2010).

The industry of fast food in Pakistan is the second largest in Pakistan. It totals for 30% of its

value added production and 18% of the overall employment in the country with approximately

one hundred and seventy million customers. The Industry is shifting considerably with a down

shift in the old-style eating habits and living standard. One research report which was conducted

on the performance of fast food business in Pakistan, it was found that a normal consumer

spends 40 percent of the earnings on food. Processed food or wholesales is increasing by 10

percent every year and at present are assessed at about 1.5 billion US Dollars, out of which trade

in items totals for 330 million US Dollars (Ha & Jang, 2010). The superstores are gaining some
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reputation as the ultimate shopping destination and currently it totals for about ten percent of

overall retail sales of food items. Furthermore there are now numerous multinational fast food

outlets in Pakistan which proves the changing eating style of people of Pakistan (Ryu, Lee &

Kim, 2011). According to a report the eating habits and the fast food industry amongst the people

of Pakistan is growing at the rate of approximately 20 percent every year which makes it one of

the most popular and profitable business in not only in Pakistan but in the world too (Altaf,

2010).

1.2. Aims and Objectives of Research

The core aim of the research study is to present a comprehensive portrayal of current situation of

fast food restaurant industry in Faisalabad by focusing upon demographics, popularity of fast

food chain and determent factors of consumer satisfaction. Hence the main objectives of the

research study are as follow

To identify the demographic characteristics of the customer

To identify the key factors effecting the customer experience in fast food restaurants

To identify the most attractive fast food restaurants offering the best possible experience

in Faisalabad

To suggest recommendation to improve customer experience in fast food chain in

Faisalabad

1.3. Research Rationale


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The continuous growing popularity of fast food chain has gained the attention of marketing

experts and social scientists for several years (Bujisic, Hutchinson & Parsa, 2014; Bitner, 1992)

and there have been numerous research studies conducted to explore the dynamics of fast food

industry in Pakistan. These research studies explore the growth trend and popularity of Pakistani

fast food industry and also determine the core factors contributing towards the customer

satisfaction in Pakistani fast food restaurant. For instance, Altaf (2010) studied the demographics

and consumption patterns of fast food consumers in Lahore and provide concise overview of the

fast food chain operating in Lahore and consumer response towards them.

Similarly Dilawar (2010) prepared a research report focusing on the issue of consumer

involvement of fast food industry in Lahore. Khan, Hussain & Yaqoob (2013) prepared a

research report to determine the customer satisfaction patterns in fast food restaurants of

Peshawar. Yahya, Zafar and Shafaq (2013) investigate the consumption patterns of fast food

restaurant in reference to Karachi whereas Shaikh & Rehman (2010) also researched the factors

that affect the choice of fast food consumers in Pakistan.

The review of these research studies revealed that the customer satisfaction has been studied

either for Pakistan as a whole or for some metropolitan cities like Karachi, Lahore and Peshawar

however, there has been no research study conducted so far to examine the determent factors of

consumer satisfaction in fast food restaurants of Faisalabad. Faisalabad is an important and

among the most populated cities of Pakistan and has been ranked after Karachi and Lahore

according to population. Keeping in view these facts, the consumer research focusing on the

Faisalabad customer possesses great importance because the determination of factors of

consumer factors will allow the marketers and fast food chain operators to have better
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understanding of the trends and consumption patterns of fast food consumers in the city. But

there is a gap found in the literature that no research study has yet focused specifically on the fast

food consumers of Faisalabad to explore the factors determining their satisfaction at the fast food

restaurants. The current research study is thus based on the rationale of bridging the gap found in

the literature. The report will amply discuss the demographics, determent factors and most

popular restaurant of Faisalabad

1.4. Research Design

The research study employs a mixed methodological approach and data has been collected from

secondary and primary sources. The qualitative source selected for the study is secondary

analysis of data whereas the quantitative research method selected is statistical survey with a

questionnaire structured using Likert Scale. The secondary analysis of data allows constructing

variable for the study whereas the primary data allows exploring the constructed variables. The

selected sources for the study are as follow:

Secondary Data Collection Source: Books, Journals, Magazines, Research Reports, Websites

Primary Data Collection Sources: Statistical Survey

1.5. Scope and Limitations

The research study aims to explore the fast food industry of Faisalabad and identifying the

determent factors behind the fast food customer satisfaction. The research has great scope since it

aims to fill the gap found in the literature. There is no research study conducted to find out the

consumption patterns of fast food restaurant in Faisalabad and this research report will present

data that will be significant contribution to the literature. The report findings have broader scope
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and implication for marketing experts and social scientists. It provides well organized and

calculated data that could be used and referred by the social scientists for their future work.

The marketing managers can find this report a great opportunity to understand the consumption

patterns of fast food restaurant customer and the factors that influence them. This understanding

will help them in formulating better marketing strategies to cater more customers. The

management of the restaurants can also find this information very useful and they can strive to

attract more customers by emphasising on the factors that have proved in the study as major

determining factors behind customer satisfaction. They can take note on what the customers look

in the food, restaurant and service that insist them to come again and eventually they can be able

to meet the customers expectation in more adequate manner and results would be increase in

satisfied customers visiting their restaurants.

The research work also encountered several limitations that mainly came across during the

process of primary data collection. Since there have already been numerous research studies

conducted around the topic of fast food and customer satisfaction so there was no problem

occurred in collecting secondary data and the basic concepts and information about the topic was

easily gathered within the decided time frame. However, when it comes to primary data

collection things turn out to be quite challenging. The survey among 250 fast food consumers has

been conducted with the help of questionnaire.

The time period of two month was decided for primary data collection from the five decided fast

food restaurants of the city. It was estimated that in 2-3 visits to every restaurant during the rush

hour, the required number of questionnaire will be easily filled by the participants however,

when the restaurants were visited customers at large did not responded very positively towards
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taking part in the survey. Many of them feel uncomfortable in talking with a stranger, many

excused for their strict time schedule and many were afraid of providing their information as

they fear potential problem in future.

The participants were convinced that the personal information of any individual would never be

disclosed anywhere. It was also explained to the people that the questionnaire may look lengthy

but it comprises of all close ended questions and they simply have to pick any of the given

question rather giving long or detailed answers that can take time. Finally, the data was collected

using effective interpersonal communication skills but it was managed quite hardly in the given

time frame and due to this reason, the other tasks of the research work were also affected and bit

delayed.
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Chapter 2. Literature Review

2.1. Pakistani Fast Food Industry - Market Overview, Trends and Statistics

Zeithaml, Berry & Parasuraman (1993) explains that the term fast food is used to donate the food

that is quickly prepared and serviced at the outlets called fast food restaurant. The Fast food

restaurants are characterized by quickly supplied food, limited menu and minimal services. Most

of the times, the fast food restaurants are operated through franchise and chain systems and

standardized food is supplied to these outlets from the central location.

Anita & Singh, (2007) found that there are certain factors that contribute to the popularity of fast

food consumption all over the world like their relative low cost, quick service and convenient

eating arrangement. Contemporary, stream-lined accessibility of the fast food outlets offers a

new substitute and appealed to customers' drive for products and ideas related with technology,

innovation and process. People often find that they can get more value for their time and money

by visiting the fast food restaurant as compared with going to any traditional food point where

they have to spend relatively more time in waiting to get their order served.

Shaikh & Rehman (2010) noticed that amongst the most successful businesses in Pakistan fast

food is the industry associated to the fast food. The history and growth of fast food industry in

Pakistan is discoursed in detail. The short Order meal which they sell at different restaurant

across major cities has become famous amongst people of Pakistan. Despite the fact that that

business conditions are not so good in Pakistan the fast food business is gaining popularity in

Pakistan day by day. This is because people have welcomed the trend of fast food as a positive

change in their outdoor food consumption patterns. They find it attractive to experience the
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change in their traditional food by adding the foreign flavour of the food that they get from the

foreign fast food chains.

Yahya, Zafar and Shafaq (2013) affirm that even a quick overview of the Pakistani culture and

activities allow the viewers to understand that the Pakistani people love eating out and any new

and different food item and this one of the significant reasons for which all the global fast food

restaurant chains are looking interested to start their business in Pakistan amongst which many of

them have already opened their franchises in major cities of Pakistan. Pizza Hut, Kfc and

McDonalds are amongst the most famous outlets in Pakistan and they are running the business

magnificently. Dilawar (2000) explains that the international restaurants have become an

important part of the Pakistani food industry since they not only provide the fast food prepared

according to their international standards but also made some changes in their recipes to meet the

specific demands of the consumers of Pakistan.

2.1.1. Evolution and Popularity of Fast Food

Riaz, Wahla & Naseem, (2006) discovered that the swift degree at which the industry of fast food

endures to open outlets is a definite result of customer need for ease as it is an outcome of

demand for fast food within itself. Increasing the numeral of outlets increases convenience;

therefore it makes it more convenient for buyers to purchase fast food. Specifically in recent

times, most of the development existed in the form of "satellite" openings. These satellite outlets

are much smaller in size, with slight or not at all seating volume, and are a lot in non-traditional

sites, such as workplace buildings, airports, petrol stations and department stores; these kinds of

sites are nominated precisely to make the most of accessibility and customer convenience.
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Khan (2011) found that the Pakistani financial system has become service-oriented, over the past

many decades, the food industries offering a lot of convenience to the population has remarkably

achieved increased sales growth. As the population is rising, and increased work schedules and

incomes, a nearly voracious requirement for ease will continue to increase the fast food sales.

The Fast Food Chains will continue to find ways for the accessibility of their products.

Even if attitudes change of the population or incomes reduce, a very less percentage of

consumers will be expected to return to cook at home as the older practice (Zeithaml, Berry &

Parasuraman, 1993). This can also be related that if consumers spend more time at home, with

the family or any other reasons, cooking meal is going to be somewhere else not at home. Other

restaurants offering table services which by tradition give importance to fully fledged services in

dining; will be offering home delivery to capture the market (Byrne, Capps & Saha, 1998).

Dabholkar, Shepherd & Thorpe (2000) noticed that the importance of the time of consumers,

including the demand for proper, premium food products, will be a constant need to give a boost

to the fast food companies. Once Fast food was considered something extraordinary, has now

become a significant component of the diet of our young generation. The role of ease in this diet

change cannot be overlooked, and the growth in the other food service company will be done on

a large scale by its capability to find new innovative and creative ways to save the time of the

consumer.

2.1.2. Factors contributed towards Fast Food Restaurant Industry growth

Shaikh & Rehman (2010) revealed that the industry of Fast food is widespread in Pakistan, the

cause of most of its modernism, and several major global chains are established in Pakistan. The

existence of global fast food companies like KFC, McDonalds, Pizza Hut, Pizza Express, and
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Burger King Etc. has rather delivered to the higher salaried portion consequently emerging a

niche as upmarket restaurants of fast food. International firms like these usually alter their set

menu to accommodate home-grown Pakistani tastes and many foreign restaurants are possessed

by local franchises to make sure that ethnic, community, and cultural values have top preference

(Riaz, Wahla & Naseem, 2006).

Moreover, international fast-food companies are not the only one operating in this business or

even the key resource of fast food restaurants in main cities of Pakistan. A lot of local and

regional fast food restaurants have established across the major cities in Pakistan (like Jaanz

Broast in Karachi) to contest with famous multinational restaurants and deliver food items that

charm to the exclusive local habits and tastes at reasonably low prices.

Yahya, Zafar and Shafaq (2013) found that in Pakistan, international restaurants are significantly

more costly; they generally are visited since they are considered attractive and fairly glamorous

and since they generally are more hygienic than local restaurants. Though most percentage of

middle class families (major part of fast food lovers) chooses to eat in local restaurants that sell

low price fast food, therefore much more visits. Below are some of the major factors that have

been contributing towards the popularity of fast food in Pakistan

Altaf (2010) notices that nowadays most of the Fast Food outlets in Pakistan tend to have a great

focus on the philosophy of working snacks or work while you eat. The example can be the

International chain of McDonald at the Quaid-e-Azam International Airport at Karachi. A lot of

space is provided to the for the passengers for the transition or the International food chain of

KFC in many of the shopping malls in Karachi like the Dolmen Shopping Mall or the

Millennium Shopping Mall started with the concept of Shop While You Eat.
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Fast food chains have quickly become the place to eat "everybody can agree on", with numerous

highlighting child-size menu combos, play areas and imaginative branding promotions, designed

to charm to younger consumers. Parents can have a few minutes of peace while children played

or amused themselves with the toys included in the sites (Freisling, Elmadfa & Gall, 2006).

Many consumers see international fast food restaurants as symbols of the progress, wealth and

well-ordered openness of Western society and therefore become trendy attractions in major cities

of Pakistan, mostly amongst younger customers with more diverse tastes (Kara, Kaynak, &

Kucukemiroglu, 1997).

Shaikh & Rehman (2010) affirm that fast-food restaurants have become prevalent with people

for quite a few explanations. One of the reasons is by means of financial prudence of scale in

producing and purchasing food, these firms can provide food to customers at relatively low price.

However, quite a few people dont like eating in a fast food restaurant for its predictableness; it

could be comforting for a starving person in a flurry or far away from home.

International Fast food restaurants such as Pizza Hut quickly gained a reputation for their

hygiene, friendly customer service and a fast services atmosphere where travelling people on the

street can get a speedy meal, or just for a change of taste from homemade food. Before the

growth of the fast food restaurant, Public usually had to choose amongst local diners where the

hygiene of the food was frequently debatable and lacked customer services, or 4-5 Star hotels

that were costly and unreasonable for families with young kids.

2.1.3. Popular Fast Food Chains in Pakistan (Brief Introduction)

Fast food in Pakistan varies that it contains many types of international fast food chains like

Burger king, Mc-Donald, Pizza hut, Hardees, Subway, Dominos and many other causal or local
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restaurants like AFC, Al-Maida pizza garden, Forks n Knives, Apple nine etc. All of these

restaurants of fast food provide several channels of sales and services for the Satisfaction of

customers and gain large number of customers.

Probably international and local fast food restaurants use similar types of sales channel number

one is Cash Counter sale second is telephone order, third is through Internet online order and

Takeaway, but the store service is also the important part and which is different from the services

outside the outlet that is through sales channels in restaurant services includes atmosphere inside

the restaurant, cleanliness, services and information provided by the waiters and the

management, order taking and order serving, parking space, hygienic food, dressing of

employees, Healthy menu with variety of food range but the quality of service vary.

Like Mc-Donalds use all types of sales channel and provide quality product at very reasonable

price and the level of satisfaction of consumer is also vary. Level of satisfaction consist of

Service Quality, Ambiance, Food Quality, Perceived value and Customer experience, there are

number of customers who is different from their tastes. Now the question is what services are

important to maintain the high number of customers in fast food chain?

2.1.2.1. KFC

2.1.2.2. Pizza Hut

The first fast food chain in Pakistan was Pizza Hut, targeted at the informal dine-in market. Pizza

Hut opened its first outlet in 1993 in Pakistan at Boat Basin, Clifton, and Karachi. Currently,
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there are 35 outlets in ten major cities of Pakistan. Their tag line is Share the good times with

us. T heir most profitable out is situated on MM Alam Road in Lahore. The annual sales of the

outlet is more than US $10, 30, 0000 (about 10 crore Pakistani rupees) making it the first highest

in Pakistan and second highest profits maker of Pizza Hut worldwide. The food industry is at its

peak in Lahore, one of the significant factors for the uppermost sales. Pizza Hut familiarized

numerous Pakistani food products meant for the taste buds of the Pakistani market, comprising

Sundance, Seekh kebab, Bonfire, Spicy hot, Ring Of Fire, Spicy bbq prawns and Green chicken

tikka. The Tandoori chicken garnish which is currently in practice in Pizza Hut restaurants in

India was used first time in outlets in Pakistan. Pizza Hut open a deal yearly an "All you can eat"

in the holy month of Ramadan which is famous amongst people

2.1.2.3. McDonald

McDonald was launched in September 1998 in Lahore, Pakistan. This launch was a success and

was possible by the enthusiastic citizens of Lahore, who are famous for their love of food and

liveliness. In Karachi it was launched a week after it launching in Lahore. The day we have

opened our restaurants both in Lahore and Karachi, we have provided our customers great taste

with standard quality throughout, exceptional value and quality service that could be compared

with any international food chain around the world. Now we have thirty-four restaurants in eight

most important cities of Pakistan that includes Karachi, Lahore, Hyderabad, Faisalabad, Sialkot,

Kala Shah Kaku, Islamabad, Gujranwala and Rawalpindi. Today most of the Pakistanis trust in

the services provided by McDonalds with high standard food, value for money and quick

service. If next time you are planning to walk in any of our restaurants, dont forget McDonalds,

putting smile on everyones face, on every visit.


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2.1.2.4. Fri Chick

Fun, Festivity & Food, Fri-Chicks is leading all the way in the market from the time when it was

first started, Fri-Chicks offers the Bucket chicken meals for a nation which loves fried chicken.

Be it hot & spicy version or the colonel sanders furtive unique recipe, each item in their menu

list is yummy in taste. Fri-Chicks proudly say, We do chicken right. Presenting its unique

recipe of 12 spices and herbs in 2003, Fri-Chicks is planning to open 52 new restaurants in major

cities of Pakistan, Fri-Chicks has upheld its name, for the last 12 years, of being the fried chicken

Specialists. Fri-Chicks carried the label of being the chicken market frontrunner in its chicken

industry. Delivering hygienic and tasty food in a comforting atmosphere turned Fri-Chicks into

everybodys favoured place to eat. Currently Fri-Chicks are planning to announce different

chicken items and inauguration of new outlets for its consumers. Currently Fri-Chicks is

planning to open outlets in seventeen main cities of Pakistan (Lahore, Karachi, Murree,

Gujranwala & Sukkur) with further 45 restaurant outlets planned to start operating in coming

couple of years across Pakistan.

2.1.2.5. Hardees

2.2. Factors Affecting Customer Experience in Fast Food Restaurant

2.2.1. Food Quality

Jones & Sasser (1995) explains that quality of the food is very crucial part which is directly

influence the customer experience. Hygienic and good taste food is said to be food quality, or in

other words value for money. Food is one of the critical parts of healthy life. Food quality, range
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of food, interior design and dcor, cleanliness, atmosphere and service from staff has been

identified as a constituent of store image in fast food restaurant

According to the Research findings recommended by Dabholkar, Shepherd & Thorpe (2000) the

quality of the food is the major indicator of showing loyalty in Fast food restaurant. Jeong & Seo

(2013) pointed the main three factors to utilize the customers in targeted restaurants which are

dining of fast food area that is Ambiance, Service Quality and Food Quality. Food quality is

found to be the determinant which has significant positive relationship with customer loyalty and

satisfaction. Syed & NazuraJones (2001) explored that customers main reason to visit the fast

food restaurant was the food quality. So, the food quality is important factor in customer

experience as compared to other restaurant perceptions such as environment and the service

quality provided by the restaurant

Quality can be characterized on the basis of intrinsic and extrinsic factors. Intrinsic quality

factors are relevant to the physical outlook of the product (Friddle, Mangaraj, and Kinsey, 2001).

They cannot be changed without changing the crux of the product itself. The presence of intrinsic

factor can be easily observed in fresh food. The appearance of vegetables, fresh fruits, fish and

meat of the expected perceived quality, Depending on the particular shape, size, structure and

color of the food. On the other hand extrinsic quality factor are everything else that is related to

price, brand name, peer support and origin (Stevens, Knutson & Patton, 1995). These variables

sometimes called image variables. Extrinsic attributes are not product-specific and serves as a

general sign for quality across different product, although there are many other extrinsic factors

useful for the consumer but brand name, price and level of advertising are often associated with
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quality in research. Mostly Consumers favor intrinsic attributes over extrinsic attributes in the

development of perceived quality judgements (Sulek & Hensley, 2004).

2.2.2. Service Quality

Susskind & Chan (2000) find out that the service quality plays a vital role for good customer

experience. In order to describe service quality some restaurants gives fast service and some

slow, but most probably the acceptable service is fast, because consumer have no time to wait for

so long. But service quality varies from restaurant to restaurant, and reasonable waiting time for

order to be fulfilled. The most commonly studied restaurant factor by previous researchers is

service quality (Atkins & Bowler, 2001).

Researcher findings by Babin, Darden & Griffin (1994) proposed that service quality was a

predecessor of consumer experience while consumer experience was not a significant indicator

of service quality. Baker, Grewal & Parasuraman (1994) advise the direction of association

between customer experience and service quality. Researcher findings showed that perceived

service quality was a forerunner of satisfaction, rather than vice versa. Consistent with these

findings, the service quality enhances to describe customer experience. Service quality also

creates a major association on the choice of the fast food restaurant between customers (Bitner,

1990).

2.2.3. Customer experience

According to (Meyer and Schwager, 2007) internal response of customer vary to any direct and

indirect contact with a company. Direct contact takes place when customer makes purchase and

utilizes services. Indirect contact involves unintentional meetings with company representatives.
19

Previously researchers have considered service quality and customer satisfaction but not

customer experience (Parasuraman, Zeithamal, and berry 1988: Verhoef, Langerak, and Donkers,

2007). (Schmitt, 1999) has stated that companies make their customers sense, feel, think, act by

creating experiential marketing. Customer experience includes pre and post-sale services. Pre-

sale service is giving accurate information and test-checking of food before placing order to the

relevant customer. Post-Sale service include food parcel, offering candies (sweet-saunf) at free of

cost on your table and cash counter. Studies suggest that customer experience should have the

skill to satisfy customer and avoid Displeasing them (Syed and Conway, 2006). Customer

experience not only involves interaction in the restaurant but also consumption of food and after

sales services (Neslin et al, 2006). Other factors that influence customers experience are price,

restaurant location, convenience factors, and safety and operation hours of a restaurant (Min and

Galle, 1996; Kara et al, 1997; Tsai et al., 2007; Min and Min, 2011).

Ambient scent of a restaurant is another important issue must be taken into consideration and

having an impact on customer buying behavior (Yah, & Yoh, Fiore, 2000). Besides, (Henderson,

Spangenberg and Crowley (1996) said that ambient scent has effect on purchase intention.

Ambient scent can improve evaluation of specific products that are unfamiliar (Morrin and

Ratneshwar (2000). Restaurants use ambient scent because it will link to customer emotions. As

a result, restaurant atmosphere has significant impact on customers perception toward overall

quality of the restaurant, which will directly affect customer experience (Ryu & Jang, 2008).

Therefore, it is important for the owner of the restaurant to know customers taste and preferences

so that they can be satisfied through quality, customer experience. Customer also gives

importance to overall restaurants cleanliness, hygienic conditions and ambience scent that would

enhance their appetite.


20

Fulfilling or exceeding customer needs and requirements would increase customer loyalty that

would influence customers experience and overall Revenues and profitability of a restaurant

would be increased (Perutkova & Parsa, 2010). Retention is always cheaper than acquiring new

customers (Khalifa & Liu, 2003). If the customer needs and wants are not fulfill they would

switch to competitor restaurant. Customer retention is the reflection of long term success of the

restaurant and good customer experience.

2.2.4. Ambiance

Atmosphere quality is a key role to influence customer experience. Choosing of the restaurant by

the consumer environment of the restaurant is also important part, like cleanliness of utensils,

fragrance everywhere, staff dressing, and light music, colourful walls like graffiti, comfortable

sitting and tables. According to the Research, customers are affected by the service scape and

brand image of food restaurant (Ryu, Lee and Kim 2011). Services are intangible therefore

ambiance have significant impact on understanding the whole quality of the service come across,

which then turn affective customer experience in the fast food restaurant (Parasuraman et al.,

1988; Kotler, 1973, Brady & Cronin, 2001; Ryu & Jang, 2008; Bitner, 1990, 1992;). it is stated

that perceived ambiance was a direct indicator of a customers satisfaction (Chang, 2000).

Customers perception is built on the basis of ambiance before the food is served. Ambiance

becomes the main factor that affects customer reaction before the food is served and taste of the

food in fast food industry (Zeithaml et al., 1993; Bitner, 1990). Positive perception about the

ambiance of the fast food restaurant would influence the customers perception towards food

quality and service.

2.2.5. Perceived Value


21

Perceived value is the mentally satisfaction of the consumer, or it is said to be value for money.

(Zeithaml, 1988) defined perceived value as the assessment by the consumer about the utility of

a product based on perceptions of what is given and what is receive. The benefits include

customers desired value, e.g., quality (Monroe, 1990). Cost, on the other hand, includes non-

monetary (time, effort) and monetary (price) (Monroe, 1990; Monroe, Dodds & Grewal, 1991;

Cronin, et al., 2000). In order to create maximum perceived value for the customer, restaurant

must either decrease the efforts like time or increase the perceived value like quality. Perceived

value is a factor that affects overall customer experience of a customer in a restaurant (Woodruff,

1997). (Zeithaml et al, 1998) when making a purchase decision consumers are motivated by

perceived value.
22

Chapter 3: Research Design

The chapter describes the research methodology upon which the entire research study is

based. There are different research approaches that have been commonly used by the social

scientists for the attainment of their research purposes and it is important to select from these

research methods the most appropriate and the most suitable research methods in accordance

with the topic and objectives of the research. Thus in this chapter, different research approaches,

methods, sources of data collection are discussed and the most suitable option for the current

study has been selected. Moreover the chapter explicitly explains the entire process through

which the research work is conducted including the selection of the sources of information,

survey sampling method, data gathering, and questionnaire construction and result calculation

methods.

3.1 Research Approach

The mixed methodology approach has been selected for the study. Secondary analysis of data has

been selected as qualitative source whereas statistical survey is the quantitative source for the

thesis. Hence, it involves collecting data from secondary and primary sources. This approach is

chosen because it is significance method for conducting different types of research studies as

Johnson and Onwuegbuzie (2004) explained that mixed-method kind of research draws upon

the strengths of both quantitative and qualitative analysis, which enables the researcher to draw

upon several methodologies in measuring the variables of the study. In this way the research

study will be consist of both the qualitative and quantitative research.

3.2. Research type


23

There are four major types of research purposes. These include exploratory, descriptive,

analytical and predictive (Aaker and Days, 1990). The Exploratory research is one of the

important methods of conducting the research studies on different issues and topics. This

technique is most suitable for conducting interviews. The second type of research is the

Descriptive Research, which is also an important option for the researchers. The third type of

research is the Explanatory Research. Its main intention of the explanatory researches is to

build up precise theory that can be utilized for the description of different empirical

generalizations. The fourth and the last type of research study is the predictive research. While

using this type of research study, the social scientists usually go further for making certain

statements and comments by forecasting the likelihood of a similar situation occurring

elsewhere.

If we analyse the current research study in the light of these research types then it is found that

the this research study is exploratory research since it strives to explore the current situation of

fast food restaurant in Faisalabad. The study aims to explore the main factors contributing

towards the customer satisfaction, demographics of the fast food restaurant customer and the

most popular restaurant of the city.

3.3. Research Methodology (Mixed)

Qualitative research is a field of inquiry that crosscuts disciplines and subject matters (Becker

and Howard, 1996). The qualitative researchers are most of the times aimed at having deep

understanding of different issues, human behaviours and the reasons and factors governing the

human behaviours. Qualitative research is also regarded by the experts as an instrument that can
24

be used for the development of in depth understanding of any phenomenon that can become the

base for the quantitative research later on. (Denzin and Lincoln, 2000)

The quantitative research is the systematic and scientific investigation of quantitative properties

and phenomena and their relationships. It is all about quantifying relationships between

variables (Berg, 1989). The quantitative research methods are most of the times aimed at

developing and employing different mathematical models, theories and hypothesis that pertain to

the natural phenomenon. In the quantitative research methods, the measurement and calculation

of the result possesses the central importance because through the measurement or calculation

the fundamental relationship between different empirical and mathematical expressions is

established.

3.3.1. Secondary analysis of data

The social scientists use to conduct the studies on wide range of topics by employing

secondary analysis of data as the research method because this method has proved its

significance as one of the most useful qualitative research method. Thats why it has been

employed in conducting different researches for many years and different social scientist have

agreed upon the importance and significance of this research method. This method is found

relevant with the research study because the review of the researches helps in understanding the

need for studying the factors behind customer satisfaction and also to list out the variables that

have to be studied.

John Heaton (2000) also threw the light over the significance of the secondary analysis of data

and explains that the secondary analysis of data is a significant research method that is used for
25

the description of various analytical practices using the pre-existing data. This could be done

either for the investigation of the new research question or for the re-examination of any of the

primary study for the purpose of collaboration. He further explains that in order to conduct the

secondary analysis of data there are the literature review conducted of the available material in

order to describe and appraise the ways in which the social scientist have found the answers of

the research questions. This review of the literature is also helpful in considering the future

implications and development of the issues related with the topic of the research.

3.3.2. Statistical Survey- Primary Data

The quantitative research method selected for this research study is statistical survey that

appeared to be the most appropriate and suitable research method for the study and the social

scientists has also confirmed the importance and significance of this research method for

conducting quantitative research studies. Tanur (1982) explains that a statistical survey is an

efficient way of collecting information from a large number of respondents, the gathered

information can be used to study attitudes, concepts, values, beliefs, and behaviours.

O'Connor and Krotki (1997) explained that a survey is effective and efficient method of

collecting data from large number of respondents that allows the data collection from very large

samples. The data can be used to determine validity, reliability, and statistical significance.

Surveys are also considered as flexible research methods because they are standardized and easy

to administer. Ornstein (1998) clarified that the statistical survey possesses some advantages as

well as disadvantages that can be experienced by the social scientist while conducting the

research studies using the statistical survey as the research method.


26

The surveys are considered significant because of being standardized and there are usually free

from certain errors and easy to administer at different levels. In the same way there is less time

and money required to conduct the survey because the survey sampling prior to the survey

allows to specifically contacting the people whom opinions are required and in this way the

money of contacting and accessing many people is saved. Moreover the specific questions

related with the topic and objective of the research allow gathering the information in less time

as focused questions and their answers are asked, recorded, codified, and analysed by the

researchers with the help of the statistical surveys.

Thus, it was decided to conduct the survey among fast food customers of Faisalabad. For this

purpose, 5 restaurants were selected on the basis of their popularity and 50 people from each

restaurant were randomly selected for this survey. In this way, the research study comprises of

survey sample of total 200 people. The sampling technique used are described below

3.3.2.1 Survey Sampling

Survey sampling is the most important issues and step that the social scientists have to complete

systematically with great care because the selection of the survey sample is very critical to the

validity of the information that represents the populations that are being studied. The sampling of

the survey determines the focus of the study on the particular level and group of people and

should also assure that there is no biasness in the selection of the respondents. Ornstein (1988)

explains that there are two main techniques for the selection of survey sample; these include the

non-probability sampling approach and the probability sampling approach.

Probability sampling approach assures that each of the elements associated with the research

will get equal representation in the survey and responses will be collected from the people that
27

specifically belong to the group under study. It is regarded as a true representation of the

population however the researchers often face problems due to unwillingness, non-availability

and inaccessibility of some of the respondents. The probability sampling methods are further

classified into simple random, systematic, cluster and stratified sample (Deming, 1996).

The non-probability sampling approach includes the respondents in the survey on the basis of

their willingness and availability regardless of their group affiliations. This method is very

convenient for the researchers as they can go for gathering the information from anyone whom

they can access but at the same time the level of the validity is also very low in this type of

sampling because it does not assures the equal representation of different groups and level of

people. The non-probability sampling is further divided into quota, convenience and judgement

sampling (Moore and McCabe, 2005).

For this research study it has been decided to select the probability sampling technique because

the research study aims to collect the views of the consumers visiting to five different fast food

chains in Faisalabad and it is very important that the customers of all of these fast food chains

must have equal representation in the survey sample.

After deciding that probability sampling is the suitable method for the current study, next step

was to decide which method from this category has to be selected. Keeping in view the objective

of the survey, it is found that sample random sampling is suitable for the primary research.

People visiting five selected fast food chains and from customers of each fast food chain sample

of 50 people is selected for the survey participation.

3.3.2.2. Likert Scale


28

The questionnaire for the survey is constructed by using the Likert scale whereas the first section

contains multiple choice questions to collect information about the demographics of the

participants. Likert Scale is a bipolar scaling method used to measure either positive or negative

responses to a statement (Likert, 1932). It is a common system that is used in surveys. The Likert

scale is also called the psychometric response scale and it has given the name of the Likert Scale

after the name of its founder Rensis Likert who described in details the method of using this

scale and calculating the responses through the use of this survey tool (Miles & Huberman,

1994).

According to the Likert Scale Principle the set of attitude statements are presented in front of the

respondents and the respondents are required to express the level of their agreement and

disagreement using the five point scale. Each of the degree of agreement is donated by a

numerical value that ranges from 1 to 5. Some of the experts also emphasis on the use of 7 scale

and 9 scale to study the differences in opinions more deeply but the most preferred method is the

usage of the five point system in the questionnaires.

After getting all the responses, the total numerical values from all the responses are calculated

for each statement (Scheaffer, Mendenhal, and Lyman 1996). The traditional five-point scale is

used in this questionnaire and the respondents were asked to express their opinions about the

given statement by picking the answer from the given 5 options: Strongly disagree, Disagree,

neither agree nor disagree, Agree and strongly agree. These points were also rated from 1-5

where:

1. = Strongly Disagree,

2. = Disagree
29

3. = Neutral

4. = Agree

5. = Strongly Agree

After getting all the filled questionnaires, the scores for each of the questions is collected

individually and then the responses are also summed according to the group of the items. For

example in the survey there are five valuables selected for determining the customer satisfaction

using five different sections whereas one question has been formulated to know about the most

popular restaurant of Faisalabad.

3.3.2.3. Variables

Keeping in view the objectives of the research, it has been revealed that the research aims to find

out three main characteristics related with fast food restaurants in Faisalabad. These

characteristics include

Demographics

Factors determining customer satisfaction

Most popular fast food restaurant of the city

Each of these characteristic has been studied according to the respective variables like age group,

gender, income group and occupation are studied to find out the demographics. Food quality,

service quality, ambiance, customer satisfaction and perceived value are selected as variable to

understand customer satisfaction whereas five popular fast food chains including Pizza Hut,

Hardees, McDonald, KFC and Fri Chick have been selected to ask survey participant about the
30

most popular restaurant in Faisalabad in terms of providing maximum satisfaction to the

customers.

3.3.2.4. Method of Data Collection

Grooves (1989) explain that there could be different methods of collecting the information from

the survey sample. These methods of conducting surveys include mail, electronic email, face to

face, telephonic interviews, online surveys and personal in home surveys. The researcher can

choose from these methods according to the sample and requirement of the research objective.

Each of these methods causes different cost and time to the researcher and every method

possesses different level of significance and response rate. For example sending the

questionnaire via post is low cost method but requires more time, on the other hand accessing the

respondents face to face takes more cost of transportation and human resource but it takes less

time to collect the response and the rate of returns is also higher in this method.

The online survey are very low costing methods but for this it is necessary that all the

respondents included in the survey must have access to the internet. Thus for this statistical

survey the face to face administration method is chosen. When the statistical surveys are

administered by the researchers then they are called researcher administered survey (Grooves,

1989). This statistical survey is also administered by the researcher and all the responses were

collected face to face from the randomly selected customers visiting the five selected restaurants.

3.3.2.5. Questionnaire

Section 1 Personal Information

Name: __________________________________
31

Gender: Male Female

Age: 18 31 32 44 45 57 58 and Above

Occupation: Household Student Business Office Job

Income Group: 10,000-15,000 16,000-30,000 31,000-45,000 Above 45,000

Section 2 Information about Customer Satisfaction Experience

Please Tick () your responses using the following scale:

(1= Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agreed, 5= Strongly Agree)

Rating
Strongl
Sr.
Variables y Disagr Neutr Agre Strongl
#
Disagr ee al e y Agree
ee (2) (3) (4) (5)
(1)
A Food Quality
The smell of the food that stimulates my
1
appetite
The crispness of the food attracting me
2
toward the restaurant
The foods are served in a fresh and timely
3
manner

The fresh ingredients are used in preparing


4 the foods
The food presentation which is visually
5
attractive
Various colours of food attract my
6
attention
32

Varieties of food components within a set


7
of meal
Food presentation that is relatively
8
organized

B Service Quality
The restaurant shows sincere interest in
1
correcting anything that is wrong
The restaurant serves me in the time
2
promised

The restaurant serves food exactly as what


3
I ordered

4 The restaurant provides me accurate bill

During busy time, employees shift to help


5 each other to maintain speed and quality of
service
The restaurant provides prompt and quick
6
service

Staff puts in extra efforts to handle


7
customers special request

8 Employees are available upon request

9 Employees are willing to help

C Ambiance

1 The dining area is thoroughly clean

2 The rubbish area is clean and tidy

3 Flies are kept away from food

4 If visible, the kitchen looks clean


33

5 Pleasant smell or odour in the restaurant

Pleasant smell or odour from the


6
surrounding of restaurant

7 Desire aroma of the restaurant

Pleasant air creates comfortable


8
environment of the restaurant

D Perceived value

If I Bought the food (selling Price), I feel I


1 would be getting my moneys worth.

I feel that I am getting food for a


2 reasonable price

After evaluating the advertised food


features, I am confident that I am getting
3
quality food for (Selling Price)

If I compared this food, it is good value for


4 the money that I will spend

I think that given food quality, it is good


5 value for money

I feel that acquiring this food, meets both


my high quality and low price
6
requirements

Compared to the maximum price I would


be willing to pay for this food, the sale
7
price conveys good value

I would value this food as it would meet


8 my needs for a reasonable price

E Customer Experience
34

The performance of restaurant exceed my


1 expectation will bring me satisfaction

I am satisfy if the restaurant puts me in a


2 good mood

I have really enjoyed myself in the


restaurant once I am satisfy with the
3
restaurants performance

My dining experience was pleasing if I am


4 satisfy with the restaurant

If I am satisfy, I will feel that I have got


5 what I wanted when I leave the restaurant

I have always had a good impression of


6
the restaurant once I am satisfy with it

Most Popular Restaurant according to


F
above factors studied
How do you rate the following fast food
restaurants of Faisalabad with respect to
1 1 3 3 4 5
the identification of above discussed
variables

KFC

Pizza Hut

McDonald

Hardees

Fri Chick

3.4. Basis for Data analysis


35

A time period of 2 months was decided to collect the response from the customers visiting five

selected fast food restaurants of Faisalabad. During this time 3-4 visits of each restaurant were

conducted to get the questionnaire filled by required number of customers. After the collection of

data, the results were calculated for each variable and question and were put into the software for

calculation and result generation. The research results have been presented in the nest section

using different charts and graphs. The data collected has been calculated using SPSS and

different models like Regression model, KMO and Berlets Test and Communalities has been

used for data analysis.


36

Chapter 4. Findings of Research

The research is based on the analysis of secondary data and primary data i.e. statistical survey

using a structured questionnaire. The findings of the secondary and primary sources are

presented below separately with respect to the variables that have been studied.

4.1. Key findings from Secondary sources

The secondary analysis of data has been conducted using the available secondary sources like

books, journals, articles, online magazines, informative web portals and research studies

conducted around the related topic. The analysis of the secondary data allows coming towards

the following points

Fast food restaurant industry has been gaining more and more popularity day by day all

over the world due to number of factors like convenience, quick service and relative low

price.

In Pakistan, fast food restaurants have been expanding their network continuously and

their massive popularity has resulted in the presence of several international and national

fast food restaurant chains across different cities of Pakistan

The food consumption patterns of Pakistani people have been considerably changed due

to the popularity of fast food and there has been a shift observed from traditional to the

fast food
37

At present there are many fast food chains that have been successfully providing variety

of fast food items with some unique characteristics. Some popular fast food restaurants

including Pizza Hut, Dominos, Fri Chicks, KFC, McDonald, Hardees and Subway.

There are number of factors that have been studied and identified by the social scientists

has the determents of consumer satisfaction in fast food restaurant. These factors include

food quality, service, ambiance, perceived values and customer experience.

4.2. Key findings of Primary Sources (Statistical Survey)

The part presents the findings arrived at through the analysis of the questionnaire data. The

statistical survey has been conducted among 250 fast food consumers of Faisalabad from five

different fast food restaurants. These people were asked question using the structures

questionnaire and the results of the survey have been calculated according to the answers

received for the particular questions separately. In this regards, the demographic analysis results

are presented first.

This is followed by findings of the Customer Experience at Fast Food chains in Faisalabad

and finally the results for most favorite fast food restaurant in Faisalabad are presented.

Subsequently, results from the correlation analysis of the variables that are the relationship

between food quality, service quality, ambience, perceived value and customer experience have

been presented. In the end, the results from exploratory factor Analysis for factor structure of

customer experience at Fast Food Chains have been presented. The findings include results from

the descriptive analysis, Pearson correlation analysis, regression analysis and exploratory factor

analysis.
38

4.2.1. Demographics Variables

The first section of the survey questionnaire was consisted of four questions with multiple choice

questions. The main purpose of this section was basically to collect information about the

demographics of the consumers of the fast food restaurants by knowing about their age group,

income group, gender and occupation. The answers provided by the people in the first section

generate following results

Table 4.1: Respondents Profile

Gender n %
Male 154 61.6
Female 96 38.4

Age
18 - 31 119 47.6
32 44 65 26.0
45 57 41 16.4
58 and Above 25 10.0

The results in the table indicate that a majority of the questionnaire respondents, that is 61.6%

(n=154) were male and 38.4% (n=96) were females. This finding suggests the trend of visiting

and eating at Fast Food Restaurants is more prevalent among males in Faisalabad. The data on

the respondents age indicates that 47.6% belonged to the age bracket of 18-31 years. This

finding suggests that Fast Food is more popular amongst younger people. The findings on the
39

other age brackets show that older people belonging to age bracket 58 and above have less

tendency of visiting and eating at Fast Food Restaurants with 10.0% (n=25) frequency rate.

Age Group: The questionnaire asked for the participants to select the particular age group rather

giving them an open space to mention their age. It was done due to two reasons. At first, people

find it more comfortable to select the respective age group rather writing the number to represent

their age. Secondly, mentioning the age group allowed easily calculating, managing and

presenting the data using different categories. There were four options given in the questionnaire

and visitors of the selected fast food chains were asked to tick the one where they belong. The

results obtained from this question are presented below in tabular and chart form

Table 4.2: Age Group of Survey Participants

Age Group Number of Fast Food consumer


18-31 119
32-44 65
45-57 41
58 and above 25

Chart 1: Age Group of Consumers of Fast Food Restaurants

Gender: The survey participents were asked to mention their gender and it was found that
40

Table 4.3: Genders of Survey Participants

Male 154

Female 96

Chart 2: Gender of Consumers of Fast Food Restaurants

Occupation: The next question was about the Occupation and the participants were provided

with four different options to choose from. The answers selected by the survey participants were

counted and are presented below

Table 4.4: Occupation of Survey Participants

Household 47
Students 89
Business 45
Office Job 69
41

Chart 3: Occupation of Consumers of Fast Food Restaurants

Income Group: In the next question, the participants were asked to select their income group

and the resuts gathered from this quesiton have been presented below

Table 4.5: Income Group of Survey Participants

10,000-15,000 35
16,000-30,000 79
31,000-45,000 89
Above 45,000 47

Chart 4: Income Group of Consumers of Fast Food Restaurants

4.2.2. Consumer Satisfaction Variables


42

The second part of the questionnaire contains different questions aim at exploring the opinion

about the survey participants regarding the determent factors of customer satisfaction. The

questions are categorized under five groups (A-E) and under each group there are different

questions asked that related to the particular variable. Descriptive analysis of the questionnaire

items developed for testing the variables aimed to capture the customer experience at Fast Food

chains. The 39 items included the customer experience about the Fast Food chains food quality,

service quality, ambience and the customers perceived value for the food served at the

restaurants. Table 3.6 presents the value of Cronbachs Alpha for all the variables is between

0.288 to 0.294, which is between 0 and 1. This suggests that the questionnaire items are reliable

for measuring the customer experience at Fast Food chains.

Table 4.6 Descriptive Statistics of Critical Variables

Variables N Mean Cronbachs Alpha Std.


Deviation
Food Quality 250 3.13 0.288
1.219
Service Quality 250 3.16 0.290
1.315
Ambience 250 3.12 0.289
1.291
Perceived Value 250 3.15 0.294
1.307
Customer Experience 250 3.16 0.292
1.192

Relationship between Food Quality, Service Quality, Ambience, Perceived Value and

Customer Experience
43

In order to establish the relationship between the independent (food quality, service quality,

ambience and perceived value) and the dependent variable (customer experience), Pearsons

correlation analysis was performed. The rationale for conducting this was the need for

determining the direction and magnitude of the relationship that existed between the independent

and dependent variables. The results have been presented in Table 4.3 and 4.4.

Table 4.7: Coefficient of determination (r2)

Model r r2 Adjusted r Square Std. Error of Estimate Sig

1 .322 .104 .089 1.137 .000

Note: r= Pearson correlation coefficient. r2= Coefficient of Determination.

** Correlation is significant at the 0.01 level (2-talied).

The results of this analysis show that a moderate positive relationship (r=.322) that is highly

significant at p=.000 (p<.01) between dependent and independent variables exists. This suggests

that the customer experience of Fast Food restaurants might undergo an increase in the same that

is positive direction and in a similar manner. Thus, if the food quality, service quality, ambience

and perceived value are low, customer experience may be negative. As correlational analysis is

nor able to explicate the strength of the relationship and is not capable of making predictions

about the variables and/or the causality, a coefficient of determination was related to the other.

The model used has a good fit and indicates that the constructs (food quality, service quality,

ambience and perceived value) are able to explain 32.2% of the variance towards positive

customer experience.
44

Table 4.8: Correlations matrix of fast food restaurant

FQ SQ A PV CE

FQ 1

SQ .017 1

A .074 .163** 1

PV -.095 .056 -.411 1

CE .182** -.094 .123** -.268 1

**Correlation is significant at 0.01 level (2-tailed)


The results show that the two factors of food quality and customer experience were the ones

between which the largest number of significant correlations was identified (r=.182**). The

second highest correlation occurred between service quality and ambience (r=.163**) and the

third was between ambience and customer service (r=.123**). The results of the analysis also

suggested that food quality (p=.004) and perceived value (p=.000) have a very statistically

positive relationship with customer experience. Only two factors (food quality and ambience) are

positively related to total customer experience.

The results were further tested through the use of multiple regressions analysis. The reason for

running the regression analysis was to measure the relationships between the dependent variable

and all the four independent variables (food quality, service quality, ambience, and perceived

value). The results have been presented in Table 4.5.

Table 4.9: Analysis of factors affecting customers experience in a restaurant

Coefficient t-value p

Value
Constant 3.522 8.901 0.

000**
45

Food Quality Customer Experience 0.159 2.616 0.009**

Service Quality Customer Experience -0.088 -1.419 0.157

Ambience Customer Experience 0.028 0.417 0.677

Perceived Value Customer Experience -0.236 -3.519 0.001**

**Correlation is significant at 0.01 level (2-tailed)

The results show a statistically significant relationship between food quality and customer

experience (p=.009) and perceived value and customer experience (p=.001). The findings

suggest that higher food quality and perceived value have a positive relationship with customer

experience.

Exploratory Factor Analysis for Factor Structure of Customer Experience at Fast Food

Chains

In order to further explore the relationship between independent variables and the dependent

variable, exploratory factor analysis was conducted. This data reduction was conducted with the

aim of eliminating any non-significant items in the measures (variables) so that only those items

were extracted that contributed significantly to those factors that emerged in the survey that had a

role in correlational analysis. Furthermore, factor analysis also helped in demonstrating the

construct validity of the questionnaire items. The results have been presented in Table 4.6.

Table 4.10: Factors that influence customers experience

Component

1
46

Food Quality .317

Service Quality .076

Ambience .756

Perceived Value .820

Customer Experience .503

Extraction Method: Principal Component Analysis


All items in the table 3.9 show high values that are above 0.5 and suggest the validity of all the

items of the questionnaire. The highest variance is shown by the items of the factor of perceived

value that is .820 (82.0%). This finding suggests that there exists a possible reciprocal direction

between the two measures of perceived value and customer satisfaction. Ambience (75.6%) and

food quality (31.7%) also have significant variance. However, service quality has low variance

(7.6%).

In order to further explore the factor analysis, the Kaiser-Meyer-Olkin (KMO) measure of

sampling adequacy was performed. Table 4.7 presents the results for the test.

Table 4.11: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .578

Approx. Chi-Square
3411.533
Bartletts Test of Sphericity df 741
Sig. .000
47

The result shows 0.578 KMO sampling adequacy rates which are sufficient for conducting the

factor analysis for all the independent and dependent variables. Bartlett's Test of Sphericity was

highly acceptable, with a significant value of p=.000 for all samples.

The quantitative analysis found that a positive relationship exists between the independent

variables of food quality, ambience and perceived value and the dependent variable of customer

experience in relation to the Fast Food restaurants in Faisalabad. It is perceived that the factors

that have emerged as a result of the findings are consistent with the existing literature, however,

the level of correlation (r=.322) implies that there is an ample chance that there may be some

other variables influencing the customer experience (beyond those revealed in the current study).

4.2.3. Most Popular Fast Food Restaurant

The last question of the questionnaire was intended to find out that after expressing their opinion

about the factors that contribute to their satisfaction at the fast food restaurants, which restaurant

is viewed best by the people in terms of giving importance to the these variables. For this

purpose, the questionnaire provide the participants with 5 options and they were asked to pick

the restaurant that they consider best in providing them feed quality, service quality, ambiance,

experience and value. The results calculated from this question are as under:

Table 4.12: Favourite Fast Food Restaurant

KFC 23
Hardees 42
McDonald 72
Pizza Hut 45
Fri Chick 18
48
49

Interpretation and Discussion

Interpretation of the Research Findings

Discussion of the Main issue

Answering the research question

Demographics of Fast Food Customers

Key factors effecting customer experience

Most Attractive Fast Food Restaurant


50

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