Submitted to

Nasira Siddika (NSD)

Lecturer, North South University.

Submitted By

NAME ID

Mohammad Ziaul Haque 103 0119 030

Naim Mohammad Abu Saleh 093 0134 030

Shakera Ferdous 093 0942 030

Mohammad Sazzadur Rahman 102 0104 030

Md. Abu Jewel 102 0057 530

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Letter of Transmittal

Dec10, 2012

NasiraSiddika(NSD)

Lecturer, BBA Department

North South University

Dhaka, Bangladesh.

Subject: - A research report on the consumer behavior of young people while visiting fast food shops.

Dear Madam,

Here is a group report on the “Consumer Behavior Towards Newly Open Restaurant” which you have asked us to prepare as the part of our MKT344 course.

While preparing this report we have left no stone unturned to include all the relevant information and the explanations to make the report informative and comprehensive.

It was a very enriching and thrilling experience for us to prepare this report. Our report writing skills and communicating skills have improved a lot while doing this report. If you find any kind of assistance in understanding this report, please do not hesitate to consult with us in the classroom.

Thank you for having trust on us and giving us that wonderful opportunity to have some real life experience in marketing.

Sincerely,

MOHAMMAD ZIAUL HAQUE 103 0119 030

NAIM MOHAMMAD ABU SALEH 093 0134 030

SHAKERA FERDOUS 093 0942 030

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MD SAZZADUR RAHMAN 102 0104 030

MD ABU JUWEL 102 0057 530

Letter of Acknowledgement

At first we would like to thank Almighty Allah for giving us the patience and the capacity to put

a hard endeavor with tremendous devotion. First and foremost thanks to our Course Instructor,

NasiraSiddika (NSD) for his invaluable guidance, encouragement and suggestions throughout

the entire MKT344 course. Without her assistance and trust on us it would have been impossible

to complete and submit this report.

We are really grateful to the stuffs of “Vooter Adda” they have given their precious time to

answer our questions and have shared their valuable experience with us. We will also like to

thank all the people who have answered our sample questionnaire. All their information and

suggestion have taught us a great lesson and preparing this report has been a very positive and

uplifting experience.

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TABLE OF CONTENTS

TOPIC Page No

Cover Page 1

Letter of Transmittal 2

Acknowledgement 3

ABSTRACT 5

1. Introduction 6

1.1 Fast food Product 6

1.2 Problem focus 7

1.3 Objective of the study 8

1.4 Presentation of the study 8

1.5 Limitation of the study 8

2. Methodology 8

2.1 Description of study area 9

2.2 Sampling design and data collection 10

3. Review of literature 10

3.1 Communication and consumer behavior 11

3.2 Influence of culture (12-13)

3.3 Consumer motivation (13-16)

3.4 Consumer influence of innovation (16-17)

3.5 Decision making process (18-21)

4. Recommendation (21-22)

5. Appendix (22-31)

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ABSTRACT

Hundreds customers randomly from “Vooter adda” had been interviewed via pre designed questionnaire which is situated in Taltola, khilgaon. Descriptive evaluation indicates that most of the participants was young, well-educated as well as economically well off. Interpersonal relationship was the primary source associated with awareness about fast food and participants viewed fast restaurants because recreation as well as outing. Frequent visit of individuals in fast food restaurants indicates this quick growing business in Bangladesh .But because of expensive rate from the food price majority people are avoiding to go to this kind of restaurant. Grill item seemed to be fast options item followed by dessert. Cooperative mindset of things, good food test, different atmosphere and specially the elements of time savings inspires the customers strongly to fast foods over homemade food. There is really a need to educate people concerning the caloric require according sex, age as well as profession as well as health to enable them to choose the balance diet. The rate ought to be maintaining this type of level exactly where majority people can work.

Keywords: Fast food, Restaurant, Consumer, Test, Grill item, Dessert.

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1. INTRODUCTION

There is nobody in the world that is left out of the class of consumers. The consumer- hood continues till one’s last breath in the world. The consumer purchases a variety of goods and services to satisfy his wants and he is always influenced in his purchasing activities by some considerations which lead him to select a particular commodity or a particular retail store in preference to others. So, consumer buying is more complex. Consumer purchases are likely to be influenced by physiological, psychological and sociological factors. The commodities and services are brought by the consumer to satisfy his basic needs, for comfort, pleasure, recreation and happiness. Every individual has physiological need such as hunger, shelter, thirst, etc. which have to be satisfied for survival. The psychological factors like status prestige and social factors like friends, neighbors, job and relatives influence their purchasing activities.

People bear certain beliefs and attitudes towards certain types of goods, brands of commodities and retail outlets based on their previous experience. When there is a need, they are able to discover some new commodities capable of satisfying their needs. Before the commodities and brands are selected, these commodities must compete successfully against alternatives in the market. The selection of a particular commodity becomes important for consumer since there are wide varieties of consumer goods in the market. Again selection of a particular commodity depends on income of the consumer and necessity of the product to the individual. Before the selection of the commodity purchased, an individual requires information regarding the various sources of supply of the commodity, its brands, relative merits and demerits, uses and value of their characteristic features and services offered. The common sources through which individual gathers information are from advertising media (television, radio and newspapers), friends, retailers in the locality, displays in shops and food labels.

1.1 Fast food products:

Unlike olden days where man used to have his food lavishly and slowly, the present trend changed the habits of foods, which are simple and easy to digest. Hence, the existence of these foods fulfilled all the needs of modern human being. The food habits in Bangladesh have changed due to the western influence and the usage of these foods is also on the rise.

In Bangladesh, majority of food consumption is still at home. Nevertheless, out of home food consumption is increasing due to increase in urbanization, breaking up of the traditional joint family system, desire for quality, time which translates into an increased need for convenience, increasing number of working women, rise in per capita income, changing lifestyles and increasing level of affluence in the middle income group had brought about changes in food habits. In the last two decades, the share of urban population has increased from 23.30 per cent in 1981 to 27.80 per cent in 2001. During the same period the female work participation rate had increased from 19.70 to 25.70 per cent. The per capita income increased from $816-$848 in 2012(current fiscal year). The change in food habits was evident from the growth of food processing industries.

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Generally, food is prepared depending on the habits, tastes, social status, economic factor, availability, traditions, habitats, etc.of the people of that region. The most sought after in the present age are the fast foods. Actually Fast food is food offered or exposed for sale without additional cooking or preparation, which is packaged on the premises where they are being sold and are ready for consumption.

Development of the metropolitan cities due to increase in population, emergence of industries, evolution of various new factors, time factor, etc. created the need for fast foods in the market. Due to industrialization, the labor category is getting attracted to it because of better emoluments and hence there is shortage of home maid-servants. Due to this, the housewives, in order to save time started using fast foods.

As the literacy rate is increasing among the women, a large number of them in our country are taking up jobs to setup their own status in the society and to use the extra income generated. These are creating the need for fast food. Earlier times, a single family consisted of many people i.e. ., a group of several nuclear families were living in a single place. Hence, larger quantities of the food were used to be prepared. But as these joint families started disappearing due to various reasons, each single family started using these ready foods in order to save time and energy.

Due to establishment of multi- national companies in Bangladesh, the lady of the house also started working, because of which there is no time to prepare food at home. Hence, this created the need for using fast foods. The standard of living is also changing due to raise in income level, influence of western countries, more global trade, traveling etc. hence people are changing their taste to ready foods more compared to the old traditionally prepared foods.

In the modern era, the media, particularly electronic and print media, are playing an important role in creating awareness of the products manufactured and released in the market.

All these factors are responsible for the popularity of restaurant in Bangladeshi market. The marketers should see to it that the fast food is available to the consumers without any difficulty at competitive rates. The products should be provided to consumers by keeping in mind as when they want, where they want and the manner in which they want. These methods help in increasing the sales of the product with good feedback from the customers and creating niche for restaurant in the market.

1.2 Problem focus

Several firms had been engaging in production and marketing of fast food products. Hence, the consumers had a greater option to choose from. In this context, a study on consumer behavior was seemed to be important to understand the buying behavior and preferences of different consumers. Understanding the consumer behavior would help the firms in formulating strategies to cater to the needs of the consumer and thereby increase their market share. Consumer’s taste and preference were found to change rapidly, especially in a dynamic environment. Keeping in view the importance of consumer behavior and consumption pattern, the present study was under taken with the following objectives.

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1.3 Objectives of the study

The specific objectives of the study were:

i. To examine consumer behavior issue, why this issue is important and interesting. ii. To study the purchase behavior of ready-to-eat food products. iii. To evaluate newly open restaurant preference of the consumers.iv. To study the factors influencing newly open restaurant preference. v. To evaluate alternative purchase plans of the consumers.

1.4 Presentation of the study

The study has been presented in four chapters as indicated below. Chapter-I deals with why this issue being studied, importance and specific objectives of the study; Chapter-II outlines the features of the study area, nature and source of data, sampling procedure and analytical tools and techniques employed in the study; Chapter-III is analysis of consumer behavior using different type of theory concept; Chapter-IV provides the summary of the whole study and also suggests the policy implication based on findings of the study.

At the end, appendices and important references have been listed relating to the present study.

1.5 Limitation of the study

This study was based on primary data collected from sample consumers by survey method. As many of the consumers furnished the required information from their memory and experience, the collected data would be subjected to recall bias. The study area was limited to only Dhaka city and the findings may not be applicable to other markets, as vast difference exists among the consumers with regard to demographic and psychographic characteristics. Hence, the findings of the study may be considered appropriate for the situations similar to study area and extra care should be taken while generalizing the results.

2. METHODOLOGY

This chapter covers the following aspects:

2.1 Description of study area 2.2 Sampling design and data collection

2.1 DESCRIPTION OF STUDY AREA

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Dhaka is the fastest growing city in Bangladesh. The population is heterogeneous with diverse cultural, religious and economic background. This urban conglomeration covers an area of 1353 square kilometers with a population of 8.5 million (2001 census). Because of the existence of various linguistic, religious and ethnic groups, it has been a very good marketing center for launching new products. Since, this city provide an ideal setting to study the behavior of consumers towards fast food products, so the present study was undertaken on a newly open restaurant “Vooter adda”.

2.2 SAMPLING DESIGN AND DATA COLLECTION 2.2.1 Selection of Restaurant food items

Preliminary discussions were held with the local consumers and the restaurant authority about the consumption of fast food products as well as about the brands available and preferred in the study area to gather information on the products to be selected for the study. Based on the discussions, the most commonly available and used products in the study area were selected. The particular products were selected in such a way as to represent one product from each food group like Vegetable, Grill items, Soups & Sauces, Snacks and Dessert & Baking items.

The products selected for the study were as follows:

Vegetable – Sauté & Salad Grill items– Meat, chicken with “Kabab” Soups & Sauces – Cold & Hot soups, Sweet sauces Snacks – Salty& Crunchy (popcorn), snacks bar. Dessert & Baking – Cakes, Breads, cookies.

2.2.2 Sample selection

The total samples selected for the study was 100 respondents. They were selected randomly irrespective of age, education and income level.

Classification of the respondents

The respondents were classified into different categories based on age.

Age

Age Group 1 (AG1) – Below 20 years

Age Group 2 (AG2) – Between 21 – 40 years

Age Group 3 (AG3) – Between 41 – 60 years

Age Group 4 (AG4) – Above 60 years

Income

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The respondents were post classified into three income groups based on their income.

Low income– Below 300(US dollar) per month.

Middle income– Between 300-350(US dollar) per month.

High income – Above 350(US dollar) per month.

Collection of data

To study the objectives, required data were collected from primary as well as secondary sources.

Primary data

The data required for the study were collected from the respondents by personal interview method with the help of pre-structured questionnaire. The respondents were interviewed at restaurants, university campus, and even at the homes. The questionnaire consisted of:

Part I : General information like name, age, education, sex, occupation, food habit, family income and family type. Monthly expenditure on food items in general and fast food products in particular.

Part II : Specific information included the information regarding purchase behavior, factors influencing the purchase of ready- to- eat food products, brand awareness, sources of information for brand awareness, frequency of purchase, nature of purchase decision, place of purchase, influencers of purchase decision, brand preference, factors influencing to prefer particular brand and decision making process of the consumers.

Secondary data

The secondary data on location, demography and regarding population of the study area were collected from text books, group discussion and published sources.

3. REVIEW OF LITERATURE

In this chapter we are going to analysis of the consumer behavior using theory concepts of communication & consumer behavior, influence of culture, consumer motivation, consumer influence of innovation and decision making process. These are presented below:

3.1 Communication and consumer behavior

3.2 Influence of culture

3.3 Consumer motivation

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3.4 Consumer influence of innovation

3.5 Decision making process

3.1 Communication and consumer behavior:

Many factors play into the buying behavior of the consumer especially when they want to go a new restaurant to try out new foods and services. Successful marketers take into consideration the beliefs and culture of the buyer, as well as the family situation and even the psychological outlook of the purchaser.

3.1.1 The Psychology of Buying

In order to market a food or service to a target group, manufacturers should determine the needs of the buyer. Some buyers are looking for a sense of safety and belonging, while others want to gain esteem in the eyes of their peers. When providing information to buyers, marketers must understand how the product is perceived. Chances are the buyer will interpret information about the product based on previous knowledge and beliefs, but learning about the product can change the buyer's behavior. Buyers will also purchase products based on their personalities and lifestyles. For example, people who want to live an active, healthy life may opt for organic foods.

3.1.2Economic Factors

The amount of money you have determines to a large extent what foods item you will take when you go to the restaurant. You may want to take dessert, in which case, you are faced with the question of which make to buy. Although you may have a strong desire to take “TURKİSH CUİSİNE”, you may decide to take daydreamer dessert. In this case, you will sacrifice your love for the luxury item because you can only afford the cheaper item.

3.1.3 Social Considerations

People make decisions on what to buy based on their needs. However, in a situation when you can afford to have these needs, social considerations come into play in deciding what exactly to buy. For instance, while a consumer can comfortably go a road side hotel with tk300 for having their lunch, you may decide to go a restaurant with tk2500 for having your lunch because you are a famous athlete, banker or politician. What influences this decision is the respect you will get from society because of that house.

3.1.4 Environmental Influences

The environment you live in determines what products or service you want buy on a daily basis. If you live in a family where everyone is very busy in their own work then you may find it easier to go where you can find out readymade food. If you study in an institution where your friends like to go for testing new recipe in restaurants then might be want to do the similar thing.

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3.1.5 Impulse Purchases

When you go to a restaurant, in most cases, you have an idea of what you are going to eat. Most people actually boil down what they will take so that they do not spend a lot of time thinking while on the chair of the restaurant or end up overspending. However, human nature is such that consumers are prone to making impulse decisions to take things they had not planned for. You may see a lucrative recipe at the menu and decide to buy it, not because you had planned to but because the item is new and you want to test it.

3.2 Influence of Culture

Culture is the complete picture of a society. Culture consists of sum total of learned customs, beliefs and values which demonstrate the consumption behavior of members of a particular society. Culture has a great impact on the consumption pattern of customers of a society. For example Bangladesh is a Muslim country. Eating pork is prohibited in Islam. As a result hamburger is not available in the restaurants of our country.

3.2.1 Culture is learned:

Culture is generally learned it is not inherited. A human being born in a society and gradually the culture of the society influences the human being. There are three kinds of learning

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Institutional learning

Informal learning

Formal learning

In case of consumer behavior towards eating fast food we can see the impact of informal learning. Informal learning is something which a consumer gets to know from following someone. For example we interviewed a girl named Tasnia. Tasnia’s brother loves to eat Grill

items. As a result he used to bring Grill items in home and have it with family. Generally Tasnia has started to love Grill. It is an example of informal learning. Tasnia is learning to eat Pizza from her big brother in that case.

3.2.2 Ritual

Ritual is a kind of symbolic activity. Rituals often involve product artifact. While observing the consumer attitudes we can find the attempt of rituals also. For example Consumers love to enjoy expensive fast food on some special occasions like birthday celebration, parents day etc. So while opening a new restaurant marketers should bear that in mind.

3.2.3 The Measurement of Culture

In case of observing the consumer behavior towards eating fast food it is better to use content analysis rather that field observation or participant observation. Content analysis gives a clear picture of culture of a society. While doing research through content analyses we find out that people of Bangladesh is more family oriented and love to eat fast food in a family atmosphere. So it is better to use family atmosphere in a restaurant to attract customers.

3.2.4 Subculture

Subculture is a group of people who share common characteristic that distinguish them from the follower of common culture. Subculture has a great impact on the consumption pattern of fast food of consumers. For example people who reside in the Dhaka city used to like food which is less spicy. So fast food restaurant of Dhaka city offer food which is less spicy. But in the country side village people love to eat oily and spicy food. So if a fast food restaurant does business in village it will provide more spicy and oily food.

3.3 Consumer Motivation

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Motivation is a driving force which forces a consumer to take a particular decision. Motivation

consists of a driving force which results from a state of tension as the result of an unsatisfied

need. Consumer motivation can be divided into two types.

3.3.1 Positive Motivation

A driving force which lead consumer to capture some object or situation. For example a

university named Jihad loves to eat fast food. So whenever he goes to “Vooter adda”. He

usually takes fast food. So, to go “Vooter adda” acting as a positive motivation for Jihad.

3.3.1.2 Negative Motivation

A driving forces which forces consumer to go away from some object or situation. For example

Ashik loves to eat Grill of “Vooter adda”. But because of obesity doctor’s advice Asik’s not to

eat Grill. So in spite of loving Grill Ashik does not go to “Vooter adda”. Doctor’s advice acts as a

negative motivation towards burger for Ashik In the scenario.

3.3.2 The selection of fast food items:

Consumer’s motivation towards fast food items based on various factors. Those are described

below.

3.3.2.1 Personal Experience

Consumers usually take their past experience on account while making purchase decision

regarding fast food. For example a consumer had a bitter experience regarding the crispy

chicken of “Vooter adda”. He will not go for it again because of past experience.

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Positive motivation

Negative motivation

3.3.2.2 Physical Capacity

Physical capacity is also a vital factor while selecting a fast food item by a consumer. For

example it is not possible for a high blood pressure patient to have salty popcorn.

3.3.2.3 Prevailing Cultural norms

Cultural beliefs, values are also important factors to be considered while selecting a food item.

For example it is not possible for a Muslim to have a hamburger as a dinner. As eating pork is

not permitted in Muslim culture.

Besides there are also two motives which influence consumer attitude towards fast food items.

3.3.3 Rational

Consumers used to take logical decision. Consumer takes the ultimate decision of having a fast

food after considering all the factors such as price, quantity, quality and environment. For

example a consumer takes the decision of buying chicken of “Vooter adda” instead of KFC. After

considering that “Vooter adda” is offering same quality compared to KFC at a reasonable price.

3.3.4 Emotional

Consumers take the decision based on their personal or subjective criteria. For example I will go

to enjoy the cookies of “Vooter adda” in spite of knowing that Swiss is better than ”Vooter

adda”. I will go there because of my personal liking towards “Vooter adda”. This is an example

of emotional motive.

3.4 Consumer Influence of innovation

If a restaurant which is opening new business in an area can assume the customers reaction

regarding their food items they can reduce the uncertainty about selling their food items.

Market researchers have identified five features that seem to influence customers’ acceptance

of a newly open restaurant.

3.4.1 Relative Advantage

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It indicates the degree to which potential customers assume newly open restaurant or their

food items superior compare to existing ones. For example If Pepsi opens a new restaurant

offering pastry they will have relative advantage over their existing competitors because of

their brand image and loyal customers.

3.4.2 Compatibility

It is the measurement of the degree to which consumers believe that a newly open restaurant

or their food items is consistent with the present needs, values, and beliefs of the consumers.

For example If the potential consumers of “ Vooter Adda “ presume that the food items such as

Nan, cookies , salad offer by the “Vooter Adda” is like the traditional taste and it tastes better

than the existing one then they will go for this restaurant.

3.4.3 Complexity

The degree to which the taste of the food items offered by the restaurant is easily

comprehends by the customers. For example if “Vooter Adda” offers Mexican salad the taste of

which is not easily understood by their customers then the food item will not be a successful

one.

3.4.4 Trial –ability

It refers to the degree to which a new food item can be tested by consumers on a limited basis.

The greater the trial ability of a new food item betters the opportunity of consumers to

evaluate the food item. For example “Vooter Adda” can give a trail to test their food to the

consumers. After evaluating trail foods consumers can have a positive idea about their food

items and become the regular consumer of the restaurant.

3.4.5 Observe ability

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The degree to which a new food item benefit can be observed or described to the customers.

For example “Vooter Adda” can describe the people that their green Salad is healthy for the

health. To convince people regarding that they can take recommendation from a doctor that

their green Salad is good for health. If consumers are convinced they will have a positive

attitude regarding the food items of “Vooter Adda”.

Resistance to Innovation

If the customers have a lot of options and more information than it can cause a resistance to

innovation. If customers has less time, more information about the established restaurants

then they will not try the new one. Moreover the complexity regarding the quality, image of the

new restaurant it can influence their decision regarding the newly open restaurants.

3.5Consumer Decision Making Process

There are three levels in consumer decision making process. Those are

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Extensive Problem solving

Limited Problem solving

Reutilized Response Behavior

3.5.1. Extensive Problem Solving

In that case while going to newly open restaurant or trying a new food consumer’s search huge

amount of information. Consumers establish a set of criteria for evaluation. Consumer makes

hard effort while making decision. For example Rony will go to “Vooter adda” for having Sauté &

Salad. Before having Sauté & Salad Rony collects all relevant information every type of Sauté &

Salad after that he makes the ultimate decision of having cheese Sauté & Salad. It is an example

of extensive problem solving.

3.5.2. Limited Problem Solving

Consumers set some basic criteria for taking any decision regarding testing any food in a newly

open restaurant. Consumers might establish some criteria such as quality, price, brand name

etc. to make a decision. For example I take a decision to have Cold & Hot soups. Based on criteria

such as quality, price and brand name I have selected Baily star, Vooter adda, Bella Italia in my

consideration.

3.5.3 Reutilized Decision

Consumers generally review the subject which they are already informed. They search for small

amount of information it is particularly easy to make decision. For example consumers know

about the brand such as KFC or BFC. They will just search for which brand has the quickest

service.

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A Simplified Model of Consumer Buying Decision:-

Consumer buying decision can be divided into three unique but interdependent stages. Those

are input stage, process stage and the output stage. Those stages are described below with an

example of a boy named Robi.

3.5.4 Input Stage

In that stage consumers find out the need of a particular product. Say a boy named Robi find

out his need for having fast food. In that stage Robi can collect information from two sources

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3.5.5Restaurant Marketing Effort

Robi can gather information from the marketing effort of the firm. He can know the brand

name, he can see the advertisement or he can know the place where the food is sold. For

example Robi knows “Vooter adda” it’s a newly open restaurant offering different type of testy

foods. He sees the advertising of “Vooter adda” in newspaper. He decides to go to Taltola

which is next to his home.

3.5.6 Sociological Influence

On the contrary to marketing effort Robi can get to know about a product from an outside

source. He can take information from his family, friends or informal sources such as opinion

leader. For example Robi does not know about “Vooter adda” he came to know about this

restaurant from one of his friend. Robi decides to try the spicy chicken of “Vooter adda”.

Society can also affect the decision of purchase or can be a source of information.

In that stage commutative effect of each firm’s marketing effort, the influence of family, friends

or society exists norms those entire act as an input to influence what consumers purchase.

3.5.7 Process Stage

This stage focuses basically how a consumer ultimately makes decision. The psychological

factors such as motivation, perception, learning, attitudes have an impact on how the

significance of external inputs from the input stage influence a consumer. In that stage

consumers identify the need which can be matched with his psychological factors. Then

Consumers look for pre -purchase information. After that consumers evaluate all the

alternatives. After evaluating all the alternatives consumers make the ultimate decision. For

example Robi after knowing from his friend regarding the spicy chicken of ““Vooter adda”, find

out that the food item goes with his personality. After that before buying he searches

information regarding the price, quality and health safety of the food. Then Robi evaluates all

the alternatives such as FFC crispy chicken, Hazi chicken. After evaluation he makes mind to buy

the food item.

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3.5.8 Output Stage

The output stage consists of ultimate purchasing of the food item and behavior through which

evaluate the worth of purchase. Purchase behavior can be divided into two sectors

3.5.9Trail

A restaurant is offering free trail of their Sweet sauces. A consumer will test it. For example

“Vooter adda” is offering free trail of their Sweet sauces in Dhaka. A consumer name Robi tries it.

Trail purchase will help to explore the product. After trying the sandwich Robi finds out that it

tastes really good.

3.5.10. Repeat Purchase

It indicates the adaption of a particular product. For example Robi tries the French fry

of”Vooter adda” it really satisfied him. So as a result he will have the taste of this item again

and again.

3.5.11Post Purchase Evaluation

It basically consists of views after using the product or having the food item. There can be three

possible outcome of post purchase evaluation.

Actual performance matches the expected one leading to a neutralfeeling. For example

Robi expected “Vooter adda” chicken to be spicy and tasty it matches his expectation.

Actual performance exceeds the expected one leading to a happy feeling. For example

Robi finds the test of “Vooter adda” s chicken more than his expectation. So he will be

happy and will like to have the food again.

Actual performance is below the expectation which results into dissatisfaction. For

example Robi finds the taste of “Vooter adda” chicken not as good as he heard. As a result

he got disappointed and he decided not to test their food again.

Post purchase evaluation is important to make consumers feeling that his decision was a wise

one. Moreover it is important to remove the cognitive dissonance of the consumer.

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4. Recommendations

Today’s business world is very much competitive. So to be successful in this world a newly open

restaurant has to face their challenges properly. They have to make sure that their business is

running on the right track. To do so they have to overcome their lacking. After doing this

research we find out some limitations of the newly open restaurant so we are recommending

some ways to be a leader in their business.

4.1 The restaurant will have to decide their target market. Though it is usual for a restaurant to

offer food to all people but especially they have to focus their attention to the young people

who are their main customers.

4.2 The restaurant should go for hybrid segmentation such as demo-psychographic to reach

more efficiently to their consumers.

4.3 As “Vooter Adda “is a new restaurant their brand image is poor so they have to create their

image by spreading positive word of mouth regarding their food.

4.4 Food items are not all about a restaurant besides the food items they should also confirm

the world class service to their consumers.

4.5 Consumers need a friendly atmosphere in the restaurant. So the restaurant should ensure

that customers feel like home in the restaurant.

4.6 Menu is an important tool to attract the attention of consumers. The layout of the menu

should be good looking. They should avoid the amateur looking menu designs, such as clip

art or photocopied handwriting.

4.7 Pricing of the menu is important the restaurant should confirm that consumers find their

pricing convenient.

4.8 Hiring the right staff is crucial to any new restaurant. Good food loses much of its appeal if it

accompanied by bad service. Knowing the basic employee roles of the back of the house

and the front of the house will help you select the best candidate for the job. Experience

counts for important positions, such as head cook, dining room manager and bartender.

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APPENDIX – I

INTERVIEW SCHEDULE

“CONSUMER BEHAVOUR TOWARDS NEWLY OPEN RETAURANT PRODUCTS”

QUESTIONNAIRE FOR CONSUMERS (The Data will be used for research purpose only)

I. General Information

1. Name of the respondent:

2. Address:

3. Age:

4. Sex

5. Education: Illiterate/Primary/High/PUC/Degree/PG

6. Occupation:

7. City:

8. Name of the shop:

9. Monthly income (US dollar):

10. Food habit: Vegetarians/Non vegetarians

11. Type of family: Joint/Nuclear

12. Family:

FAMILY MEMBERS NAME

Adult males

Adult females

Children

Total

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13. Monthly expenditure on Fast foods

Restaurant Food products Expenditure (Amount in US dollar)

Vegetable – Sauté & Salad

Grill items– Meat, chicken with “Kabab”

Soups & Sauces – Cold & Hot soups, Sweet sauces

Snacks – Salty& Crunchy (popcorn), snacks bar.

Dessert & Baking – Cakes, Breads, cookies.

II. Specific Information

1. Do you like “Vooter adda” foods?

Yes/No.

2. What are the reasons for eating “Vooter adda” food?

24

3. What are the reasons for not eating “Vooter adda” food?

Reasons Vegetable – Sauté & Salad

Grill items– Meat, chicken with “Kabab”

Soups & Sauces – Cold & Hot soups, Sweet sauces

Snacks – Salty& Crunchy (popcorn), snacks bar

Dessert & Baking – Cakes, Breads, cookies.

Lack of awareness of products available in the marketDislike the product

High price

Low quality

Not available in the shopsHealth conscious

Any other

25

Reasons Vegetable – Sauté & Salad

Grill items– Meat, chicken with “Kabab”

Soups & Sauces – Cold & Hot soups, Sweet sauces

Snacks – Salty& Crunchy (popcorn), snacks bar.

Dessert & Baking – Cakes, Breads, cookies.

Ready available

Taste

Liked by the family memberscreams Influence of friends or relativesEasily available restaurantsConvenient to use for snacksSatisfaction

Save time of preparationAny other

4. Are you aware of the following items?

Items Yes NO

Vegetable

Sauté

Salad

Grill items

Meat

Chicken

Kabab(shik, shaa-hiii)

Soups & Sauces

Cold

Hot soups

Sweet sauces

Snacks & Crunchy (popcorn)

Salty

snacks bar

Dessert & Baking

Cakes

Breads

Cookies

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5. Source of information for item awareness

Source Vegetable – Sauté & Salad

Grill items– Meat, chicken with “Kabab”

Soups & Sauces – Cold & Hot soups, Sweet sauces

Snacks – Salty& Crunchy (popcorn), snacks bar

Dessert & Baking – Cakes, Breads, cookies.

TelevisionRadioNewspapersMagazinesFriends/relativesAgentsWindow displayAny other

6. Nature of taking decision

Nature of buying decision

Vegetable Grill items Soups & Sauces

Snacks Dessert & Baking

a. Impulsive buyingb. Planned purchase

7. Influencers of purchase decision

Influencers Vegetable Grill items Soups & Sauces

Snacks Dessert & Baking

Parents

Children

Friends

Neighbors

Restaurant agentsSelf-decision

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8. Which type of Salad do you prefer most?a) Green Salad.b) Mix Salad.c) Chicken Saladd) Bean Salade) Coleslaw.

9. Which type of grill item do you prefer most?a) Rotisserie Chicken.b) Beer Can Chicken.c) Brats Grill.

10. Which type of Kabab do you like most?a) Suti Kabab.b) Jali Kabab.c) Boti Kabab.

11. Which type of soup do you like?a) Corn Soupb) Thai Soupc) Mixed Vegetable Soupd) Clear soup

12. Which type of sauce do you prefer?a) Chili sauce.b) Sweet and sour sauce.c) Tomato Sauce with Vinegar.

13. Which type of Cake do you prefer?a) Vanilla Cake.b) Chocolate cake.c) Black Forest.d) Lemon Tart.

14. Which type of cookies do you prefer?a) Cream Cookie.b) Chocolate Cookie.c) Salted Cookies.d) Wafers

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GRAPHS

1. Monthly expenditure on Fast foods items:

$50-$60 $60-$75 $75-$90 $90-$1000%

10%

20%

30%

40%

50%

60%

70%

Vegatable Grill itemSoups& saucesSnacksDessert&Baking

2. Do you like “Vooter adda” foods?

BELOW 20 YEARSBETWEEN 21-40

YEARS BETWEEN 41-60YEARS ABOVE 60 YEARS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

YESNO

3. What are the reasons for eating “Vooter adda” food?

29

Vege

tabl

e

Grill

item

s

Soup

s & sa

uces

Snac

ks

Dess

ert

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

DessertSnacks Soups & saucesGrill itemsVegetable

4. What are the reasons for not eating “Vooter adda” food?

vegatable Grill item soups & sauces

snacks Dessert0%

5%

10%

15%

20%

25%

30%

Lack of awernessDislike the productHigh priceLow qualityNot availableHealth consciousany other

30

5. Source of information for item awareness

Vegatable Grill item Soups & sauces

Snacks &salty Dessert & baking

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

TelevisionRadioNewspapers MagazinesFriends/relatives Agents Window display Any other

6. Influencers of purchase decision

25%

15%

40%

5%

5%

10%

Influence of purchase dicisionParents Children Friends Neighbors Restaurant agents Self-decision

31