for faisalabad agriculture university student
TRANSCRIPT
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.
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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. Hardee’s ……………………………….. ……………………………..
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: Respondent’s 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 don’t 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
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have also been providing variety of fast food to the customers in different cities. Eventually, the
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
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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.
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
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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
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
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To suggest recommendation to improve customer experience in fast food chain in
Faisalabad
1.3. Research Rationale
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
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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
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
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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
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 customer’s 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
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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
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
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existence of global fast food companies like KFC, McDonalds, Pizza Hut, Pizza Express, and
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
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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.”
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 don’t 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.
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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
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 sale’s 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
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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,
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
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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 McDonald’s with high standard food, value for money and quick
service. If next time you are planning to walk in any of our restaurants, don’t forget McDonald’s,
putting smile on everyone’s face, on every visit.
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
everybody’s 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. Hardee’s
2.2. Factors Affecting Customer Experience in Fast Food Restaurant
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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
of food, interior design and décor, 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 customer’s 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
18
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
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).
19
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.
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 customer’s 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
20
a result, restaurant atmosphere has significant impact on customer’s 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.
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
21
that perceived ambiance was a direct indicator of a customer’s satisfaction (Chang, 2000).
Customer’s 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 customer’s perception towards food
quality and service.
2.2.5. Perceived Value
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.
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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. That’s 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.
25
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
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
26
well as disadvantages that can be experienced by the social scientist while conducting the
research studies using the statistical survey as the research method.
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)
27
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
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
28
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
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
29
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
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
30
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,
Hardee’s, McDonald, KFC and Fri Chick have been selected to ask survey participant about the
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
31
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: __________________________________
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)
Sr. # Variables
Rating
Strongly
Disagree(1)
Disagree(2)
Neutral
(3)
Agree
(4)
Strongly
Agree(5)
A Food Quality
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1 The smell of the food that stimulates my appetite
2 The crispness of the food attracting me toward the restaurant
3 The foods are served in a fresh and timely manner
4The fresh ingredients are used in preparing the foods
5 The food presentation which is visually attractive
6 Various colours of food attract my attention
7 Varieties of food components within a set of meal
8 Food presentation that is relatively organized
B Service Quality
1 The restaurant shows sincere interest in correcting anything that is wrong
2 The restaurant serves me in the time promised
3 The restaurant serves food exactly as what I ordered
4 The restaurant provides me accurate bill
5During busy time, employees shift to help each other to maintain speed and quality of service
6 The restaurant provides prompt and quick service
7 Staff puts in extra efforts to handle customer’s special request
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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
5 Pleasant smell or odour in the restaurant
6 Pleasant smell or odour from the surrounding of restaurant
7 Desire aroma of the restaurant
8 Pleasant air creates comfortable environment of the restaurant
D Perceived value
1If I Bought the food (selling Price), I feel I would be getting my money’s worth.
2I feel that I am getting food for a reasonable price
3
After evaluating the advertised food features, I am confident that I am getting quality food for (Selling Price)
4 If I compared this food, it is good value for
34
the money that I will spend
5I think that given food quality, it is good value for money
6
I feel that acquiring this food, meets both my high quality and low price requirements
7
Compared to the maximum price I would be willing to pay for this food, the sale price conveys good value
8I would value this food as it would meet my needs for a reasonable price
E Customer Experience
1The performance of restaurant exceed my expectation will bring me satisfaction
2I am satisfy if the restaurant puts me in a good mood
3
I have really enjoyed myself in the restaurant once I am satisfy with the restaurant’s performance
4My dining experience was pleasing if I am satisfy with the restaurant
5If I am satisfy, I will feel that I have got what I wanted when I leave the restaurant
6 I have always had a good impression of the restaurant once I am satisfy with it
F Most Popular Restaurant according to above factors studied
1 How do you rate the following fast food restaurants of Faisalabad with respect to 1 3 3 4 5
35
the identification of above discussed variables
KFC
Pizza Hut
McDonald
Hardee’s
Fri Chick
3.4. Basis for Data analysis
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 Berlet’s 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, Hardee’s 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: Respondent’s 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
40
Gender: The survey participents were asked to mention their gender and it was found that
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
42
4.2.2. Consumer Satisfaction Variables
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 Cronbach’s 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 Cronbach’s Alpha Std. DeviationFood Quality 250 3.13 0.288 1.219Service Quality 250 3.16 0.290 1.315Ambience 250 3.12 0.289 1.291Perceived Value 250 3.15 0.294 1.307 Customer Experience 250 3.16 0.292 1.192
43
Relationship between Food Quality, Service Quality, Ambience, Perceived Value and
Customer Experience
In order to establish the relationship between the independent (food quality, service quality,
ambience and perceived value) and the dependent variable (customer experience), Pearson’s
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
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.
Note: r= Pearson correlation coefficient. r2= Coefficient of Determination.
** Correlation is significant at the 0.01 level (2-talied).
44
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.
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
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.
**Correlation is significant at 0.01 level (2-tailed)
45
Table 4.9: Analysis of factors affecting customers’ experience in a restaurant
Coefficient t-value p
Value
Constant 3.522 8.901
0 .000**
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**
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
**Correlation is significant at 0.01 level (2-tailed)
46
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
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.
47
Table 4.11: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .578
Approx. Chi-Square 3411.533
Bartlett’s Test of Sphericity df 741
Sig. .000
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
48
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
Hardee’s 42
McDonald 72
Pizza Hut 45
Fri Chick 18
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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