THE INFLUENCE OF FOOD QUALITY, SERVICE QUALITY AND

ATMOSPHERE ON CUSTOMER EXPERIENCE AT MCDONALD.

INTAN NADHRAH AHMAD FADZIL 2009666863

KHALILAH ABD HAFIZ2009965547

•Overview

•Problem statement

•Research objectives

•Limitation

•Significant of study

•Literature review

•Research methodology

•Findings

•Recommendation

Presentation Outline

OVERVIEW

• Product has become commoditize. Company need to upgrade their offerings to the next stage of economic value.(Source: B. Joseph, James H Gilmore, Welcome to The Experience Economy)

• Customer experience and emotion of customer become crucial factors to most organization in order to stay competitive in the market

Industry Overview• Malaysian fast food industry is rapidly

growth by year. It shows a significant amount of market share increase according to the report of fast food industry in Malaysia of 2004 – 2009 (Source : Global Market Information Base).

• A study done by AC Nielsen in 2005 showed that Asians is the world greatest fast food fans. Nearly all Filipino (99%), Taiwanese and Malaysian (98%) adults eat at fast food restaurants. (Source :Mahmood, W. S. (2005). Asians is the World Greatest Fans. AC Nielsen.)

McDonald’s Expansion

Source : Wikipedia.com

300

98

34

33

167

920

27

Number of Fast Food's outlet in Malaysia

KFC

Pizza Hut

Kenny Rogers Roasters

A& W

McDonalds

Burger King

Domino's Pizza

Shakey's Pizza

Source: http://www.malaysiamission.com/team.php?id=25 

PROBLEM STATEMENT

• Offerings has increasingly commoditized, thus lead to the emerging of experience economy, which looking at the customer experience to stay distinct from others.(Source: B. Joseph, James H Gilmore, Welcome to The Experience Economy)

RESEARCH OBJECTIVES

• To identify the relationship between food quality towards customer experience

• To identify the relationship between of service quality (reliability) and customer experience

• To identify the relationship between service quality (responsiveness) of atmosphere and customer experience

• To identify the relationship between service quality (assurance) and customer experience

• To identify the relationship between atmosphere and customer experience

• To provide recommend sustain and competitive strategy for McDonald.

LIMITATION OF STUDY

• Limited Data

• Cost• Time

SIGNIFICANCE OF STUDY

• Management team (McDonald’s)

• Workers (McDonald’s)

• Customers• Future research

LITERATURE REVIEW

CONT’..

CUSTOMER EXPERIENCE MODEL

EXAMPLE OF CUSTOMER EXPERIENCE MODEL

Creating A Customer Experience Model by Phill Hunt, 2003Source: http://www.ysatisfy.com/satisfaction_metrics/customer_experience_model.html

Inside the Ritz Carlton Customer Experience Model by Scoot Gillium,2010Source : http://www.b2bknowledgesharing.com/2010/07/inside-ritz-carlton-customer-experience.html

RESEARCH FRAMEWORK

THEORETICAL FRAMEWORK

Service Quality- Reliability- Responsiveness- Assurance

Food Quality- Fresh-Presentation- Well-cooked- A variety of food and beverages

Atmosphere-Ambiance condition-spatial layout and functionality-sign, symbol

Behavioral Intention

Dependent variable

Independent variable

Customer Experience

RESEARCH METHODOLOGYPurpose of the

study

-Exploration

Data collection

method

-Primary data

(questionnaire,

interview)

-Secondary data

Types of investigation

Establishing:

-Correlation

Extent of

researcher

interference

- Minimal

interference

Study setting

-Noncontrived

setting (field

study)

Measurement and measures

-Nominal scale

-Scaling :5 point scale (Sekaran 1982)

DATA ANALYSIS

-Cronbach Alpha

-Beta

-P value

-R squared

Sampling design

-Sampling technique: Stratified random sampling

-Sampling Population: Respondents in Shah Alam area

-Sampling frame: customer who purchase McDonald dine in only and it is not valid for takeaway and drive-

thru

-Sampling size: 130

-Pilot Test: 20 respondents

Unit of analysis

(population to

be studied)

-Individual

(McDonald’s

customer)

PRO

BLEM

STA

TEM

ENT

FINDINGS

Research objectives Beta P-value Relationship

1. To identify the relationship between food quality towards

customer experience

.036 .678 Not Significant

2. To identify the relationship between of service quality (reliability) and customer

experience

.305 .002 Significant

3. To identify the relationship between service quality

(responsiveness) of atmosphere and customer experience

-. 100 .394 Not Significant

4. To identify the relationship between service quality (assurance)

and customer experience

-.133 .198 Not Significant

5. To identify the relationship between atmosphere and customer

experience

.654 .000 Significant

• R2 = .602• Cronbach’s Alpha >>

6. To provide recommend sustain and competitive strategy for McDonald.

STRATEGIC IMPORTANCE 10

Resources and capabilities

Porter’s Five Forces

RIVALRY AMONG COMPETITORS

- Mass advertising and promotions

- Product bundling

THREATS OF NEW ENTRANTS

- Industry is growing and more new

entrants enter the market

BARGAIING POWER OF BUYER

-Low switching cost due to the wide availability of the

product

THREATS OF SUBSTITUE PRODUCT

- switching cost to buyers is low

- wide variety of choices available in the industry

BARGAINING POWER OF SUPPLIER

- Backward integration (McFood)

Low High

High

High

High

SWOT ANALYSIS

IFE

EFE

IE MATRIX

IE matrix shows that McDonald’s is in the hold and maintain position which can conclude that the way McDonald’s operate it business is in the right track as it can be seen that it is moving towards the highest quadrant which is the “Grown and Build” quadrant.

7P’s

Product

Place

Price

PromotionPeople

Process

Physical

MARKETING MIX

RECOMMENDATION

Product Development

Many countries have their own special product develop to meet the local taste, McDonald’s Malaysia should develop a new product that suit the local taste, such as Satay burger as satay is widely accepted in this multicultural county. With the new localized product has been developed it will make one feel acknowledged of the unique taste of their culture as well as a token of appreciation from McDonald’s to the customer that patron their restaurant. As such, foreigner will always reminded of the experience when they go to McDonald’s in the different countries, which indirectly can strengthen the McDonald’s brand positioning in one’s mind.