a study of factors influencing consumer perception towards mcdonalds

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A Research Project Report on A Study of Factors Influencing Consumer Perception Towards McDonalds Submitted to Dr. A.P.J. Abdul Kalam Technical University, Lucknow (Formerly-Uttar Pradesh Technical University) for the partial fulfillment of Master of Business Administration 2015-17 Submitted To: Submitted By: Prof.Namita Nath Kumar Mansi Dhingra (Assistant. Professor) (1582070035) AKGIM, Ghaziabad AJAY KUMAR GARG INSTITUTE OF MANAGEMENT 27th K.M Stone, NH 24, Delhi Hapur Bypass Road, Adhyatmik Nagar, Ghaziabad-201009 (U.P.)

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Page 1: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

A

Research Project Report

on

A Study of Factors Influencing Consumer Perception

Towards McDonalds

Submitted to

Dr. A.P.J. Abdul Kalam Technical University, Lucknow

(Formerly-Uttar Pradesh Technical University)

for the partial fulfillment of

Master of Business Administration

2015-17

Submitted To: Submitted By:

Prof.Namita Nath Kumar Mansi Dhingra

(Assistant. Professor) (1582070035)

AKGIM, Ghaziabad

AJAY KUMAR GARG INSTITUTE OF MANAGEMENT

27th K.M Stone, NH 24, Delhi Hapur Bypass Road, Adhyatmik Nagar,

Ghaziabad-201009 (U.P.)

Page 2: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

DECLARATION

I hereby declare that the project work entitled on “A Study of Factors Influencing

Consumer Perception Towards McDonalds” submitted to the Ajay Kumar Garg

Institute of Management, is a record of an original work done by me under the guidance

of Prof. Namita Nath Kumar (Faculty MBA) A.K.G.I.M, GHAZIABAD.

The project embodies the result of original work and studies carried out by me and the

contents of the project do not form the basis for the award of any other degree to me. I

have expressed my feelings in my own simple way. I hope who goes through it will find

interesting and worth reading.

Mansi Dhingra

(1582070035)

Page 3: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

ACKNOWLEDGEMENT

One of the most pleasant aspects of writing an acknowledgement is the opportunity to

thank all

those who have contributed to it. Unfortunately, the list of expression of gratitude no

matter how

extensive- is always incomplete and inadequate. This acknowledgement is no exception.

I wish to express my sincere gratitude to Under super vision of Prof. Namita Nath

Kumar AKGIM, GHAZIABAD for giving me an opportunity to do the project and

providing me all support and guidance which made me complete the project on time. I am

extremely grateful to her for providing such a nice support and guidance. Because of her

inspiring guidance, motivation, positive criticism, continuous encouragement and

untiring supervision this work could be brought to its present shape.

I would like to thank all of them who in one way or the other have helped me.

Mansi Dhingra

(1582070035)

Page 4: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TO WHOM SO EVER IT MAY CONCERN

This is to certify that work entitled “A Study of Factors Influencing Consumer

Perception Towards McDonalds” is a Research Project Report work done by MANSI

DHINGRA bearing Roll No. 1582070035 Under my supervision for partial fulfillment

of Master of Business Administration (MBA) at Ajay Kumar Garg Institute of

Management, affiliated to Dr. A.P.J. Abdul Kalam Technical University, U.P., Lucknow

(Formerly Uttar Pradesh Technical University).

I wish her all the best for the future endeavors.

PROF.NAMITA NATH KUMAR

ASSISTANT PROFESSOR

AKGIM, Ghaziabad

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LIST OF TABLES

S.No. Title Page No.

1. Table -1 3

2. Table -2 4

3. Table -3 4

4. Table -4 27

5. Table -5 49

6. Table -6 50

7. Table -7 51

8. Table -8 52

9. Table -9 53

10. Table -10 54

11. Table -11 55

12. Table -12(a) 56

13. Table -12(b) 57

14. Table -12(c) 58

15. Table -12(d) 59

16. Table -12(e) 60

17. Table -12(f) 61

18. Table -12(g) 62

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19. Table -12(h) 63

20. Table -13 64

21. Table -14 65

22. Table -15 66

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LIST OF GRAPHS/CHARTS

S.No. Title Page No.

1. 15

2. Figure -1 50

3. Figure -2 51

4. Figure -3 52

5. Figure -4 53

6. Figure -5 54

7. Figure -6 55

8. Figure -7 56

9. Figure -8 57

10. Figure -9 58

11. Figure -10 59

12. Figure -11 60

13. Figure -12 61

14. Figure -13 62

15. Figure -14 63

16. Figure -15 64

17. Figure -16 65

18. Figure -17 66

Page 8: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

EXECUTIVE SUMMARY

The aim of this dissertation is to investigate the factors that are influencing consumer

decision-making process in relation to fast food restaurant industry (McDonalds). It

further aims to examine how McDonalds is responding to changing environment and

consumer behavior.

This is important and at the same time interesting to observe such topic, because of the

high profile political and public debate on obesity and other health issues that is being

currently faced in today’s scenario.

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TABLE OF CONTENTS

S.No. Title Page No.

1. List of Tables

2. List of Graph/Charts

3. Executive Summary

PART-1

5. Introduction to the project 16

6. Review of Literature 31

7. Objectives of Study 45

8. Research Methodology 46

10. Data Analysis & Interpretation 48

11. Findings 67

12. Conclusion 68

13. Recommendation 69

14. Limitations of the Study 70

15. Bibliography 71

16. Annexure 74

Page 10: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

INTRODUCTION

The food service industry is broadly divided into two sectors, the organized sector and

the unorganized sector. The former include food court, retail food chain, etc, while the

latter include dhabas and roadside stalls. The organized sector is mainly recognized by its

ambience, hygiene and quality of food and services. India has witnessed an exponential

rise in the per capita income during the last decade. The rise in income levels and the

changing lifestyle of generation Y and Z, has made junk food an inextricable part of their

life. Consuming food in a superior food retail outlet has become comprehensible to the

general public. Although, the density of fast food chains in the developing countries is

less as compared to developed countries, there is an obvious increase in the number of

food outlets in India during the last decade.

Further, globalization and modernization has redefined the Indian fast food industry. The

burgeoning middle class, rise in urbanization and increasing youth spending has added

new dimensions to the growth of franchising business. The concept of franchising is

deep-rooted in the minds of potential entrepreneurs. Franchising provides an opportunity

to young enterprising persons to undertake a business venture. The leading sector where

franchise model is gaining popularity includes education and training, food and

beverages, apparels, beauty and salons, entertainment, healthcare fitness and so on. The

food franchise industry in India is highly geared towards expansion path. Franchising is

reckoned as the fastest and the cheapest route of brand popularization. The ability to

stretch customer base is a function of exhaustive market research, often undertaken by

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identifying the needs and expectations of customers and satisfying their demands. High

and frequent customer traffic is a unique characteristic of food franchising. The increase

in mall culture has enabled the food and beverages industry to gain momentum. The

penetration and outreach of food franchise in different parts of various cities is linked

with the development of the economy, as it strongly indicates the rise in purchasing

power of the consumers.

There has been a significant change in the consumption pattern of the young generation.

While frequent visits to a particular food outlet often depend on the factors like taste,

ambience, quick service etc, approximately 10 percent of the customers visited the outlet

not out of choice but due to its convenient location. Ninety percent of the customers

choose a food outlet on the basis of their past experiences. Nevertheless, the role of

advertising and marketing in increasing the number and frequency of visits of customers

cannot be denied.

The present study aims to analyze the consumer perceptions of fast food franchisee,

McDonalds which has registered immense growth in the last decade. Consumers

perception is considered as a pivotal determinant of the frequency of visit to a the

consumer attitudes towards fast food and to analyse the impact of foreign chains on the

emerging fast food preferences in India. The growth of franchise depends upon its

popularity amongst the consumers, and consumers perception depends upon various

factors like price, quality etc. The research will unearth the factors responsible for the

satisfaction of customers of McDonald‟s Further, the research also determines the buying

behaviour of consumers in context with products of McDonalds.

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McDonald's is a pioneer in the fast food industry and today world leader in the sector.

The company has over 31,000 fast food restaurants in over 120 countries. In 2003 the

company was loosing money for the fist time in its five-decade history, as it was

serving mainly greasy food and therefore fuelling obesity epidemic. Moreover the

company was loosing important consumers trust due to release of the documentary

‘Super size me’ and critical book ‘Fast food nation’. However, McDonalds introduced

healthier menus and just recently it has announced that its sales had rocketed, sending its

shares soaring to a six year high.

Food diversity in India is an implicit characteristic of India’s diversified culture

consisting of different regions and states within. Traditionally, Indians like to have home-

cooked meals – a concept supported religiously as well as individually.

However, with times due to increasing awareness and influence of western culture, there

is a slight shift in food consumption patterns among urban Indian families. It started with

eating outside and moved on to accepting a wide variety of delicacies from world-over.

Liberalization of the Indian economy in the early 1990s and the subsequent

entry of new players set a significant change in lifestyles and the food tastes of Indians.

Fast food is one which gained acceptance of Indian palate after the multinational fast

food players adapted the basic Indian food requirements viz. vegetarian meals and

selected non-vegetarian options excluding beef and pork totally from their menu.

Multinational fast food outlets initially faced protests and non-acceptance from

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Indian consumers. This was due to primary perception that these fast food players serve

only chicken and do not serve vegetarian meals. In addition, fast food is perceived

expensive besides being out-of-way meals in Indian culture. Today, fast food industry is

getting adapted to Indian food requirements and is growing in India. It is

gaining acceptance primarily from Indian youth and younger generations and is

becoming part of life. Keeping in view the Indian habits and changing preferences

towards food consumption, this study has its focus to understand the factors affecting the

perception of Indian youth, in the age group of 20-30 years, towards consumption of

fast food as well as towards making choice of fast food outlets.

Fast food from onion rings to double cheeseburgers, fast food is one of the world’s fastest

growing food types. Fast foods are quick, reasonably priced, and readily available

alternatives to home cooked food. While convenient and economical for a busy lifestyle,

fast foods are typically high in calories, fat, saturated fat, sugar, and salt.

After the liberalization policy that came in force in 1991, fast food industry grown in

India as multinational fast food providers have set up their business either jointly with

Indian partners or independently. McDonald’s signed two joint ventures – one with Amit

Jatia and another one with Vikram Bakshi in April 1995. The first outlet was

opened in New Delhi. It has 50 outlets in North India and 76 in total all over India till

2010.

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This model emphasizes the interrelationships between knowing, feeling and doing. The

tri-component attitude model helps to explore and gauge consumers’ attitudes towards

attitude object fast food. When such model applied to the questions, the outcome might

give author greater insight regarding knowledge and perceptions (about the fast food),

emotions or feelings (toward the fast food) and finally likelihood or tendency (of certain

behaviour).

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In this sequence, the consumer does not initially have a strong preference for one brand

over another, but instead acts on a basis of limited knowledge and then forms an

evaluation only after the product has been purchased or used. Under these conditions

consumers are influenced by principles of behavioural learning.

PEST Framework

The external environment will be analysed with the PEST framework, which categorized

environmental influences into four main types: political/legal, economic, socio-cultural

and technological .This framework will help to analyse the macro environmental

influences that might affect the organization. In addition it will provide an overview of

the environment in which McDonalds is evolving.

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The use of this framework is useful only when you apply the potential impact of factors,

now and in future affecting the industry, rather than just a long list of influences itself.

Having said that, we mean factors that have potential impact on customers and

stakeholders. It is of vital importance that one identifies the key drivers of change, as they

will provide a better understanding of the main issues that are currently facing the

industry and how these might affect the future of the business within the particular

industry. Nevertheless, not all factors will have the potential impact, thus combined effect

of some of the factors is likely to be the

most important.

McDonalds food is not as fat and caloric comparing to other food (in some instances even

less caloric and fatty). However, participants still associated fast food with ‘junk food’

and therefore simultaneously related it to fat, greasy and unhealthy food, which then have

negative impact on the perception of such food.

Group expressed mix feelings and emotions towards fast food (McDonalds). While some

participants absolutely loved it, others totally hated it. One participant put this reason for

going to McDonalds: “I’m dying of hunger and nothing else is available.” Other

participant said: “It comes once in a while, you know as it’s like something driving me

there, it’s when you have a crave, then I go and eat in McDonalds”. This statement may

suggest that eating such food comes as an eager desire.

The majority of participants described eating in such restaurants as convenient: “It’s

convenient and cheap, you can go in McDonalds and eat for three pounds three burgers,

where else can you do that”? Despite the fact that group described fast food as unhealthy,

they still go and eat there, although not very often. Perhaps the frequency of eating in

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such restaurants is also associated with risk perception. Participants are aware of poor

nutritious of fast food and links with obesity related diseases. Maybe they link such

products with risk.

McDonalds could result in laugher of my colleagues, since they might perceive it as

something cheap, unhealthy and low-class.

McDonalds tries to reduce consumers’ perceived risk by providing information about

their products. On their website everyone can have a look what ingredients each product

consists of. They strive to show customers that their burgers are not as bad as majority

might think. They also argue that McDonald’s “highly quality food is made out of best

raw ingredients”.

PRODUCTS OF MC DONALDS ALL OVER THE WORLD

Main McDonalds Menu

Big Mac

Big N Tasty

Big N Tasty w/ Cheese

Quarter Pounder w/ Cheese

Double Quarter Pounder w/ Cheese

Crispy Chicken

Chicken Mc Grill

Filet-O-Fish

Double Cheeseburger

Cheeseburger

Page 18: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

Hamburger

Chicken Mc Nuggets (4)

Chicken Mc Nuggets (6)

Chicken Mc Nuggets (9)

Mc Salad Shaker Chef Salad

Mc Salad Shaker Garden Salad

Mc Salad Shaker Grilled Chicken Caeser Salad

Main McDonalds Side Dish Menu

Small French Fries

Medium French Fries

Large French Fries

Super Size French Fries

Main McDonalds Breakfast Menu

Egg Mc Muffin

Sausage Mc Muffin

Sausage Mc Muffin w/ Egg

Bacon, Egg & Cheese Biscuit

Sausage Biscuit

Sausage Biscuit w/ Egg

Ham, Egg & Cheese Bagel

Sreak, Egg & Cheese Bagel

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Spanish Omelet Bagel

Sausage Breakfast Burrito

Big Breakfast

Deluxe Big Breakfast

Hotcakes & Sausage

Apple Danish

McDonalds Dessert Menu

Baked Apple Pie

Strawberry Sundae

Hot Fudge Sundae

Hot Caramel Sundae

Vanilla Reduced Fat Ice Cream Cone

Oreo Mc Flurry

M & M Mc Flurry

Butterfinger Mc Flurry

Fruit n Yogurt Parfait

Fruit n Yogurt Parfait - snack size

McDonald land Cookies

Fresh Baked Cookies

McDonalds Beverage Menu

Thick n Creamy Shake - Vanilla, Chocolate or Strawberry

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Coca-Cola, Diet Coke or Sprite

Coffee

Tea

Orange Juice

1% Milk

Various Attributes of a Fast Food Industry are:

(1) Service speed.

(2) Price.

(3) Hygiene.

(4) Seating space.

(5) Food taste.

(6) Variety.

(7) Ambience.

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LITERATURE REVIEW

Solomon (2006, p.27) consumer behaviour is the study of the processes involved when

individuals or groups select, purchase, use or dispose of products, services, idea or

experiences. Consumer behaviour focuses on how individuals make decisions to spend

their available resources on consumption related items. That includes what they buy, why

they buy,when they buy, where they buy it, how often they buy it how often they use it,

how they evaluate it after they purchase and the impact of such evaluations on future

purchases, and how they dispose it.

Ajzen (1998) the attitudes are the first determinant of behaviour intention. In consumer

behaviour context attitude is a learned predisposition to behave in a consistently

favourable or unfavourable way with respect of a given object. There is a general

agreement that attitudes are learned. This means that attitudes relevant to purchase

behaviour are formed as a result of direct experience with the product, word-of-mouth

information acquired from others, or exposure to mass media advertising. Internet etc.

(O’Neill, 2006)Fast food is regarded as “food, as hamburgers, pizza, or fried chicken,

that is prepared inquantity by a standardized method and can be dispensed quickly at

inexpensive restaurants for eating there or elsewhere”.

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(Boseley, 2006) The most recent research has shown that being overweight or obese is

now the norm in the UK, with figures released by the government showing that two-

thirds of men and almost 60% of women are unhealthily heavy.

(Euromonitor, 2006)McDonald's Corporation was the leading fast food outlet in the UK

in 2004, with an 18.3% value share and a clear lead over its nearest rivals KFC (owned

by Yum Brands) and Burger King.

Name of the company Market share (%)

McDonald's Corp 18.3

Yum! Brands Inc 8.4

Burger King Corp 8.3

Pret a Manger Europe Ltd 1.4

Compass Group Plc 1.2

Nando's Group Holdings Ltd 0.8

Schiffman and Kanuk, 2004, p.581The consumer decision to purchase or not to

purchase the product is crucial for marketers. It can signify whether the marketing

strategy has been wise, insightful, and effective, or whether was poorly planned and

missed the mark. Hence marketers are particularly interested in such process.

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Verbeke (2005) recognizes that at any point in time throughout the decision-making

process, judgements and choices are affected by a variety of stimuli from environment as

well as by internal process and characteristics form the consumers themselves.

and on a review of factors affecting food acceptance and behavior.

Schroeder and McEachern (2005), who were analysing the impact of McDonald’s and

KFC’s corporate social responsibility (CSR) on consumers purchasing behaviour, authors

propose that purchases of fast food are mostly impulsive, hence suggesting relatively

low-involvement in each case.

Brown, McIlveen and Struggnel (2000) examined the nutritional awareness and food

preferences among young consumers. They suggest that young consumer decisions

regarding food preferences are influenced by nutritional awareness knowledge. This

knowledge is acquired within the home, school and social environments. They also put

forward that education plays important role regarding healthy eating.

Verbeke (2005), who examined the influences on consumer decision-making process

towards fresh meat, the hierarchy of effects indicates the different mental stages that

consumer must go through when making buying decision and responding to marketing or

non-commercial messages. In our instance, where the attitude object is fast food, plus

taking into account that fast food is considered to be low involvement product, the low

involvement hierarchy of effects would occur.

Page 24: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

Verbeke (2005) recognizes that along with increasing importance of quality,

organoleptic and sensory properties of the food, issues relating to food safety and human

health have gained considerable attention and importance. All above links well to

attitudes that consumers will have with fast food products and companies.

Goldsmith, Freiden and Henderson (1997) suggest that the influence of values may not

be limited just to high- involvement areas, but may also be relevant to less involving

product fields such as food.

(Grunet, 2001, cited by Verdume and Viaene, 2003). When perceived risk is high, that

influence negatively on consumer’s purchase intention. That might be linked to fast food

as well, as eating fatty food may be risky of suffering obese related diseases.

Kim (2005) who was investigating how product involvement and values interact with

consumers, more current research examines consumer involvement under working

assumptions that different types of product involvement trigger different behaviour.

Brown, McIlveen and Struggnel (2000) examined the nutritional awareness and food

preferences among young consumers. They suggest that young consumer decisions

regarding food preferences are influenced by nutritional awareness knowledge. This

knowledge is acquired within the home, school and social environments. They also put

forward that education plays important role regarding healthy eating.

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Baltas (2001, cited by Schroeder and McEachern 2005) acknowledge that the nature

of fast food production and processing is becoming more important to consumer.

Harper and Makatouni (2002), note that ethical production in terms of animal and

human welfare and environmental protection are of greatest importance.

Mohr et al. recognize that information regarding firm’s ethical behaviour is thought to

influence product sales and consumers’ overall image of a company.

Goldsmith, Freiden and Henderson (1997) who investigated the impact of social

values on food related attitudes, recognize that marketers, consumer psychologists and

public policy makers have an interest in the personal and social values of consumers as

these deeply held feelings of what is important in life influence both consumer attitudes

and behaviour. Reflecting desired end states or ways of living, values might in part

represent some of the fundamental motives that drive and direct the consumer behaviour.

Homer and Kahle 1988,) suggest that the influence of values may not be limited just to

high- involvement areas, but may also be relevant to less involving product fields such as

food.

Verdume and Viaene (2003) investigated consumers’ beliefs, attitudes and purchase

intentions with regards to genetically modified food. Attitudes towards GM food are

determined by perception of risk and benefits.

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(Grunet, 2001,). When perceived risk is high, thatinfluence negatively on consumer’s

purchase intention. That might be linked to fast food aswell, as eating fatty food may be

risky of suffering obese related diseases.

Vignali (2001) applied 7Ps analysing the marketing mix of McDonald’s in the following

way:

1. Product – features, quality, quantity.

2. Place – location, number of outlets.

3. Price – strategy, determinants, levels.

4. Promotion – advertising, sales promotion, public relations.

5. People – quantity, quality, training, promotion.

6. Process – blueprinting, automation, control procedures.

7. Physical – cleanliness, decor, ambience of the service.

Laurent and Kapferer recognize that the degree of consumer involvement in a product

category has become a major factor relevant to advertising and promoting strategies.

Kara et al. (1995) has presented the consumers’ perceptions of and preferences for fast-

food restaurants in the US and Canada. According to their study, the consumers in the

age of 12 to 24 years look for variety, price, delivery service and location in America and

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for price and novelties in Canada. In the age group of 46 years to above 55 years

cleanliness, nutritional value, quality and taste are considered by Americans and

preference is given to nutritional value and seating capacity by Canadians in identifying

fast food restaurants.

Davies and Smith (2004) have analysed the importance of nutritional values of fast food

and also information printed/disclosed by the fast food providers in London.

McNeal et al. (1980), respondents felt that meals were moderately nutritious and a good

food buy, but they were fattening and contained harmful additives. These findings further

indicate that although the consumers perceive the nutritional aspects of fast food meals to

be important, they often ignore the

aspects in practice.

Adams’ (2005) paper outlines the bases for establishing fast food industry responsible for

obesity as articulated in litigation against fast food chains in U.S.

Barker (2006) indicates that Indians are facing the problem of obesity and among kinds

of food – fast food is one of the reasons for the same. However, there is gap of a

particular research in Indian context to have a link between the health problems and fast

food consumption.

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Laroche and Parsa (2000) found that that people decide to choose fast food restaurant

because they like the taste and prefer instant satisfaction of their taste buds. Fast food

restaurant include a wide range of quick and fast service, brands and take only short

period to serve it.

Drewnowski and Spectre, (2000) contends that one of the factor that influences

consumption of fast food is by socio-economic status. There is a difference between

people who have high income with people who is have low income. Usually people with

low economic status prefer roadside stalls which are inexpensive; hygiene is not a

criterion for them. On the other hand, high income people select branded restaurants as

hygiene and nutrition both the factors are important for them.

Herman and Polivy, (1984) emphasizes that one factor that influences the choice of fast

food restaurants depends upon whether they are from rural area or urban area. He

observed that as the density of fast food restaurants is low in rural areas the consumption

of fast food in retails outlet is less.

Bender and Bender (1995) as a“general term used for a limited menu of foods that lend

themselves to

production-line techniques; suppliers tend to specialize in products such as hamburgers,

pizzas, chicken, or sandwiches”.

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Data Monitor’s (2005) survey the fast food market is defined as the sale of food and

drinks for immediate consumption either on the premises or in designated eating areas

shared with other foodservice operators, or for consumption elsewhere.

Merriam-Webster online dictionary fast food is“designed for ready availability, use, or

consumption and with little consideration given to quality or significance”.

Veseth (2005), further states that the major reason of progressive performance of

McDonalds is based of its brand value that it created and maintained in its entire period

of product and service performance.

Expenditure on eating out by sector (growth): 2012- 2015

2010-2015 Nominal 2010-2015 Real

Cafés/bars 5.07 -3.14

5.07 3.14

Full-service restaurants 3.65 4.56

Fast Food 40.53 32.33

100% home delivery/take-

away

10.76 2.55

Self-service cafeterias

20.84 12.63

Street stalls/kiosks

14.47 6.26

TOTAL

19.32 11.11

McDonald's Corporation was the leading fast food outlet in the UK in 2014, with an

18.3% value share and a clear lead over its nearest rivals KFC (owned by Yum Brands)

and Burger King. (Euromonitor, 2006b)

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( Blackman,2006) Obesity is a major risk factor linked to heart disease, cancer, and type

2 diabetes. It reduces life expectancy by an average of nine years, and by more in

smokers. Apart from the human cost to the individual, there is a direct cost of obesity to

the nation. The Government has calculated that the overall cost of obesity to the National

Health Service is around £1 billion (2006), with a further £2.3 billion to £2.6 billion for

the economy as a whole. It warns that if obesity continues to increase, the cost to the

economy alone could rise to £3.6 billion by 2010, plus at least £1 billion on the NHS bill.

(Blackman, 2005) In 2004 the UK Department of Health released an extensive White

Paper on “Choosing health: Making healthy choices easier” that makes several

recommendations for UK policy on diet and health. (Blackman, 2005)

Processed foods will be clearly labelled to indicate fat, sugar and salt content,

using a ‘traffic light’ system (e.g. red light for foods high in sugar, fat or salt).

An independent task force will be set up to look at the best ways to prevent and

treat obesity.

Emphasis will be placed on the role of schools, which will be tasked with

providing healthier meals, free fruit and sport both within and outside of school

hours.

The way in which foods are advertised to children will be investigated, with a

view to voluntary restrictions, or possibly legislation, on “junk food” adverts.

Page 31: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

(Telegraph, unattributed, 2006) Fat tax ,Another policy to tackle the rising incidence of

heart disease and prevent obesity is to place so called fat tax on junk food. The Prime

Minister's Strategy Unit raised the prospect of extra duty or VAT being imposed on some

fatty foods after heart disease overtook cancer as Britain's biggest killer, and more young

people started developing diabetes. This would be a warning sign to producers as well as

consumers and serve more broadly as a signal to society that nutritional content in food is

important.

According to Warwick et al. 1997, cited by Brown, McIlveen and Strugnell (2000),

evidence has suggested that young consumers appear to be creatures of habit, fuelled

from birth by the guidance of parents, peers and from other societal

factors and once formed, such habits are difficult to change. This might indicate that the

way children were brought up; it is likely to affect its food behaviour. However, later

research suggested that the food preference habits of young consumers could change,

depending upon the environment within which they are present (home, school, social).

Schlosser E. (2001) pointed out the most frequently reported reasons for eating at fast-

food restaurants were fast food is quickly served.

Laroche and Parsa (2000) found that that people decide to choose fast food restaurant

because they like the taste and prefer instant satisfaction of their taste buds. Fast food

restaurant include a wide range of quick and fast service, brands and take only short

period to serve it.

Page 32: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

Herman and Polivy, (1984) emphasizes that one factor that influences the choice of fast

food restaurants depends upon whether they are from rural area or urban area. He

observed that as the density of fast food restaurants is low in rural areas the consumption

of fast food in retails outlet is less.

Elliott and Reed (2000) defined (as cited in Abdul Rahman & Syed Omar, 2009) fast

food restaurant as facilities where food is served to patrons from a self-service counter or

a drive through window, where the food may be prepared in advance or cooked to order

Goyal and Singh (2007) noted that fast food restaurants’ attributes can be categorized

into six major attribute groups that would affect the intention to revisit fast food

restaurant. It includes the variety of food, food taste and quality, ambiance and hygiene,

service speed, price and location provided by the restaurant.

UC Davis (2011), the study shows that fast food dining becomes more common as

earning increase from low to middle incomes.

Morland, Wing, Diez and Poole (2002), fast food restaurants are more popular among

the second and middle-income population. The rises of disposable income influence

people to consume fast food

(Habib et al., 2011) The tastes and preferences of consumers change due to the

influences such as cooking programs, exposure when travel overseas, and growing

cultural and ethnic diversity.

Page 33: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

(Kaushik, Narang, & Parakh, 2011)Due to the emerging trend of fast food culture all

around the world, fast food chains are gaining popularity among the youngster This is

driven by the factors such as easy availability, taste, low cost, marketing strategies and

peer pressure that make them become popular (Kaushik et al., 2011). Younger adults

have a high consumption of fast food especially for those who aged between 20 to 29

years old shows a greater consumption of fast food .This study further added that college

students who aged between 19 to 25 years old have a major consumption of fast food and

the reasons for them in consuming fast food were convenience and cost.

Kerkhoven, Freeling, and Villarino (2006) fresh food is relatively a current

phenomenon in parallel with the consumers’ growing awareness of nutrition and quality,

therefore, it is an important attribute to be learned by all parties who are involved in the

food industries in order to satisfy of their customers’ needs and wants .

Shaharudin et al. (2011), by successfully presenting a good-looking and well-decorated

food can stimulate the customer perception of quality and it will create a good impression

in terms of the feeling and mood of consumers toward consuming the food in fast food

restaurants. Therefore, it is essential to study on how the food quality in terms of food

freshness and food presentation impact undergraduates’ dining experience towards fast

food restaurants.

(Grunert, 2005; Rohr, Lu’ddecke, Drusch, Muller, & Alvensleben, 2005) Generally,

in consumers’ food perception and food choice decision, quality is one of the important

Page 34: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

elements Consumers prefer products of high quality including the choice of food that

they are consuming. Thus, consumers need to understand their own quality perception as

they usually will make purchasing decisions on these beliefs.

Vangvanitchyakorn (2000) revealed that quality of food is the most important factor in

consumer's evaluation on different categories of restaurants.

Namkung et al. (2007), food presentation is a factor that constitutes food quality and

impacts the appetite of the customer and their perception of food quality. Presentation is

associated with how the food is being prepared and presented to the customers. It is a part

of tangible cue and by successfully presenting a good-looking and well-decorated food

can stimulate the customer perception of quality.

(Barber & Scarcelli, 2009; Liu et al., 2009) Cleanliness is a crucial elements needed to

pay attention in restaurant industry. Restaurant cleanliness has been perceived as a key

factor when customer evaluates the quality of dining area provided .

(Bitner, 1992) Ambient conditions are intangible background characteristics that have

subconscious effect on customer perceptions and responses to the environment.These

intangible background characteristics may include lighting, noise, music, scent, air

quality and temperature. While ambient factors are not part of the main service in fast

food restaurant, their absence can cause concern or inconvenience to customers .

Page 35: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

OBJECTIVES OF THE STUDY

To know the purpose of visit of customer to McDonalds and their frequency.

To know features consumers are looking for in McDonalds products.

To know the factors preferred by customers in relation to services provided by

McDonalds.

Page 36: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

RESEARCH METHODOLOGY

The research methodology defines what the activity of research is, how to proceed, how

to measure progress, and what constitutes success. It provides us an advancement of

wealth of human knowledge, tools of the trade to carry out research, tools to look at

things in life objectively; develops a critical and scientific attitude, disciplined thinking to

observe objectively (scientific deduction and inductive thinking); skills of research

particularly in the ‘age of information’. Also it defines the way in which the data are

collected in a research project. In this paper it presents one components of the research

methodology from a real project; the theoretical design and framework respectively.

Research Design: Descriptive research design is been taken.

Sample Area : Ghaziabad city is being taken as a sample area for study.

Sample Size : 100 respondents

Data Collection Instrument: Structured Questionnaire

Sampling Procedure : We have used a Non Probabilistic Sampling

Technique that is, Convenience Sampling.

Page 37: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

DATA ANALYSIS & INTERPRETATION

The data has been analyzed by using the SPSS software. Originally SPSS is an acronym

of Statistical Package for Social Science but now it stands for Statistical Product &

Service Solutions. It is one of the most popular Statistical Package which can perform

highly complex data manipulation & analysis with simple instruction.

It is used for quick analysis of high volume of Social Science data, collected from

different methods of research. SPSS is a computer program that is basically used for

survey, authoring & deployment, data mining, text analytics, statistical analysis &

collaboration.

Major functions of SPSS are:

• It summarizes the data.

• It determine, whether there are significant differences between groups or not.

• Inspect the relationships among variables and graph result.

Page 38: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 1:

Q1.What do you do in McDonalds?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Enjoy 8 8.0 8.0 8.0

Have Snacks 25 25.0 25.0 33.0

Timepass 11 11.0 11.0 44.0

Enjoy + Snacks 56 56.0 56.0 100.0

Total 100 100.0 100.0

Figure:1

INTERPRETATION:

Majority of the respondents i.e.56% said that they visit for enjoy and have snacks in

McDonalds.

Page 39: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 2:

Q2.How often do you visit in McDonalds?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Once a week 19 19.0 19.0 19.0

Twice a week 14 14.0 14.0 33.0

Once a month 61 61.0 61.0 94.0

Daily 6 6.0 6.0 100.0

Total 100 100.0 100.0

Figure:2

INTERPRETATION:

Majority of respondents i.e. 61% have said that they visit McDonalds once in a month

whereas 19% of respondents said that they visit once in a week .

Page 40: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 3:

Q3. With whom you like to go ?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Parents 6 6.0 6.0 6.0

Friends 57 57.0 57.0 63.0

Girlfriend/Boyfriend 24 24.0 24.0 87.0

wife/Husband 13 13.0 13.0 100.0

Total 100 100.0 100.0

Figure:3

INTERPRETATION:

Majority of the respondents i.e. 57% of people like to go McDonalds with their friends

whereas only 6% of respondents said that they like to visit McDonalds with their parents.

Page 41: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 4:

Q4.Why do you prefer McDonalds in comparison to other traditional fast food?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Better Taste 23 23.0 23.0 23.0

Quick Service 18 18.0 18.0 41.0

Offer/Discounts 4 4.0 4.0 45.0

Cleanliness 30 30.0 30.0 75.0

Brand Value 14 14.0 14.0 89.0

Efficiency in Service 11 11.0 11.0 100.0

Total 100 100.0 100.0

Figure:4

INTERPRETATION:

Majority of the respondents said that they like to visit McDonalds due to its service factor

i.e. cleanliness.

Page 42: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 5:

Q5.What is your perception about McDonald in your mind?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Quality Products 24 24.0 24.0 24.0

Value for money 34 34.0 34.0 58.0

Possess Brand Equity 18 18.0 18.0 76.0

For Niche marketing 24 24.0 24.0 100.0

Total 100 100.0 100.0

Figure:5

INTERPRETATION:

Majority of respondents i.e. 34% of people have a perception in their mind that

McDonalds value for money of its customers.

Page 43: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 6:

Q6 .Which product do you like most?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Fries 18 18.0 18.0 18.0

Burger 34 34.0 34.0 52.0

Icecream 24 24.0 24.0 76.0

Pizza Puff 24 24.0 24.0 100.0

Total 100 100.0 100.0

Figure:6

INTERPRETATION:

Majority of people visit McDonalds to have a burger because it is most preferred product

i.e. 34% people visit McDonalds for burger.

Page 44: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 7:

Q7. What is the most important factor for choosing Happy Meal?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Reasonable Price 20 20.0 20.0 20.0

Gift Attachment 21 21.0 21.0 41.0

Attractive Packaging 19 19.0 19.0 60.0

Good Taste 19 19.0 19.0 79.0

Nutritious Value 21 21.0 21.0 100.0

Total 100 100.0 100.0

Figure:7

INTERPRETATION:

The most important factor for choosing Happymeal by the customers is its reasonable

price as well as the gift attachment with it.

Page 45: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 8:

Q8.What will you do if the price of the products increase with 25%?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Consistent with same 31 31.0 31.0 31.0

Switch to other Brand 16 16.0 16.0 47.0

Reduce your visits 27 27.0 27.0 74.0

Increase your visists 26 26.0 26.0 100.0

Total 100 100.0 100.0

Figure:8

INTERPRETATION:

In my research, majority of the respondents i.e. 31% said that they will be consistent with

same to visit McDonalds if the price of the product increases by 25% whereas

27% of the respondents said that they will reduce their visits if price increases.

Page 46: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 9:

Q9. How do you pay bills?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Cash 39 39.0 39.0 39.0

Credit Card 17 17.0 17.0 56.0

Debit Card 31 31.0 31.0 87.0

Others 13 13.0 13.0 100.0

Total 100 100.0 100.0

Figure:9

INTERPRETATION:

Majority of rspondents pay bills in McDonalds with cash.

Page 47: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 10:

Q10.What improvements would you recommend in McDonalds?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Music or T.V. 21 21.0 21.0 21.0

Waiter Service 43 43.0 43.0 64.0

Quality Improvement 29 29.0 29.0 93.0

Other 7 7.0 7.0 100.0

Total 100 100.0 100.0

Figure:10

INTERPRETATION:

Majority of the respondents said that they will be more pleased if they get a waiter

service instead of self service.

TABLE 11:

Page 48: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

Q11.What is your preferred eating service in McDonalds?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Eat In 37 37.0 37.0 37.0

Take Away 21 21.0 21.0 58.0

Both 42 42.0 42.0 100.0

Total 100 100.0 100.0

Figure:11

INTERPRETATION:

Majority of the respondents said that they prefer both eat in as well as take away service

from McDonalds.

Page 49: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 12 (A):

Q12.A)How would you rate McDonalds in following aspects? ( Money)

Frequency Percent Valid Percent Cumulative

Percent

Valid

Excellent 26 26.0 26.0 26.0

Very Good 37 37.0 37.0 63.0

Average 24 24.0 24.0 87.0

Poor 8 8.0 8.0 95.0

Very Poor 5 5.0 5.0 100.0

Total 100 100.0 100.0

Figure:12 (a)

INTERPRETATION:

Majority of the respondents i.e.37% said that McDonalds is very good in terms of

money.

Page 50: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 12 (B):

Q12.B)How would you rate McDonalds in following aspects?(Ambience)

Frequency Percent Valid Percent Cumulative

Percent

Valid

Excellent 44 44.0 44.0 44.0

Very Good 12 12.0 12.0 56.0

Average 22 22.0 22.0 78.0

Poor 20 20.0 20.0 98.0

Very Poor 2 2.0 2.0 100.0

Total 100 100.0 100.0

Figure:12 (b)

INTERPRETATION:

Majority of the respondents i.e.44% said that McDonalds have excellent service in terms

of ambience.

Page 51: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 12(C):

Q12.C)How would you rate McDonalds in following aspects? (Opening Hours)

Frequency Percent Valid Percent Cumulative

Percent

Valid

Excellent 32 32.0 32.0 32.0

Very Good 11 11.0 11.0 43.0

Average 21 21.0 21.0 64.0

Poor 25 25.0 25.0 89.0

Very Poor 11 11.0 11.0 100.0

Total 100 100.0 100.0

Figure:12(c)

INTERPRETATION:

Majority of the respondents i.e.32% said that McDonalds is excellent service provider in

terms of its opening hours.

Page 52: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 12(D):

Q12.(D)How would you rate McDonalds in following aspects?(Nutritional

Value)

Frequency Percent Valid Percent Cumulative

Percent

Valid

Excellent 15 15.0 15.0 15.0

Very Good 16 16.0 16.0 31.0

Average 22 22.0 22.0 53.0

Poor 34 34.0 34.0 87.0

Very Poor 13 13.0 13.0 100.0

Total 100 100.0 100.0

Figure:12 (d)

INTERPRETATION:

Majority of the respondents i.e.34% said that McDonalds is providing poor nutritional

value.

Page 53: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 12(E):

Q12.E)How would you rate McDonalds in following aspects? (Menu)

Frequency Percent Valid Percent Cumulative

Percent

Valid

Excellent 28 28.0 28.0 28.0

Very Good 16 16.0 16.0 44.0

Average 37 37.0 37.0 81.0

Poor 16 16.0 16.0 97.0

Very Poor 3 3.0 3.0 100.0

Total 100 100.0 100.0

Figure:12(e)

INTERPRETATION:

Majority of the respondents i.e.28% said that McDonalds is excellent in terms of menu.

Page 54: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 12(F):

Q12.F)How would you rate McDonalds in following aspects? (Location)

Frequency Percent Valid Percent Cumulative

Percent

Valid

Excellent 29 29.0 29.0 29.0

Very Good 22 22.0 22.0 51.0

Average 34 34.0 34.0 85.0

Poor 11 11.0 11.0 96.0

Very Poor 4 4.0 4.0 100.0

Total 100 100.0 100.0

Figure:12(f)

INTERPRETATION:

Majority of the respondents i.e.34% said that McDonald has an average service in terms

of its location.

Page 55: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 12(G):

Q12.G)How would you rate McDonalds in following aspects? (Customer

Service)

Frequency Percent Valid Percent Cumulative

Percent

Valid

Excellent 28 28.0 28.0 28.0

Very Good 28 28.0 28.0 56.0

Average 15 15.0 15.0 71.0

Poor 20 20.0 20.0 91.0

Very Poor 9 9.0 9.0 100.0

Total 100 100.0 100.0

Figure:12(g)

INTERPRETATION:

28% of respondents said that service provided by McDonalds is excellent and very good

to its customers.

Page 56: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 12(H):

Q12.H)How would you rate McDonalds in following aspects? (Parking Lot)

Frequency Percent Valid Percent Cumulative

Percent

Valid

Excellent 14 14.0 14.0 14.0

Very Good 34 34.0 34.0 48.0

Average 7 7.0 7.0 55.0

Poor 26 26.0 26.0 81.0

Very Poor 19 19.0 19.0 100.0

Total 100 100.0 100.0

Figure:12(h)

INTERPRETATION:

Majority of the respondents i.e.34% said that McDonalds is very good in terms of

parking lot.

Page 57: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

TABLE 13:

Q13.Age?

Frequency Percent Valid Percent Cumulative

Percent

Valid

15-30 48 48.0 48.0 48.0

30-45 28 28.0 28.0 76.0

45-60 18 18.0 18.0 94.0

Above 60 6 6.0 6.0 100.0

Total 100 100.0 100.0

Figure:13

INTERPRETATION:

Majority of the respondents i.e. 48% are of younger age i.e. 15-30 who visits Mc Donalds

.

Page 58: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

Statistics

Why do you prefer McDonalds in

comparison to other traditional

fast food?

N Valid 100

Missing 0

Mean 3.2700

Std. Deviation 1.70475

Table:14

Why do you prefer McDonalds in comparison to other traditional fast food?

Frequency Percent Valid Percent Cumulative

Percent

Valid

Better Taste 23 23.0 23.0 23.0

Quick Service 18 18.0 18.0 41.0

Offer/Discounts 4 4.0 4.0 45.0

Cleanliness 30 30.0 30.0 75.0

Brand Value 14 14.0 14.0 89.0

Efficiency in Service 11 11.0 11.0 100.0

Total 100 100.0 100.0

INTERPRETATION:

When comparing to McDonalds with other traditional fast food restaurants the mean is

3.27 and standard deviation is 1.70 with reference to the various attributes.

Page 59: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

Hypothesis:

H0: There is no significant relationship between frequency of visit and nutritional value

of McDonalds.

H1: : There is a significant relationship between frequency of visit and nutritional value

of McDonalds.

Table:15

Correlations

How often do

you visit in

McDonalds?

How would you

rate McDonalds

in following

aspects?(Nutriti

onal Value)

How often do you visit in

McDonalds?

Pearson Correlation 1 .306**

Sig. (2-tailed) .002

N 100 100

How would you rate

McDonalds in following

aspects?(Nutritional Value)

Pearson Correlation .306** 1

Sig. (2-tailed) .002

N 100 100

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

INTERPRETATION:

The analysis was done by performing a two tail test on Pearson correlation. It has been

found that there is high positive correlation of 0.306 at 1% level of significance between

two factors i.e. the frequency of visit to McDonalds and its nutritional value.

So, we can say that hypothesis is accepted.

Page 60: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

Hypothesis:

H0: There is no significant relationship between frequency of visit and opening hours of

McDonalds.

H1: There is a significant relationship between frequency of visit and opening hours of

McDonalds.

Table:16

Correlations

How often do

you visit in

McDonalds?

How would you

rate McDonalds

in following

aspects?

(Opening

Hours)

How often do you visit in

McDonalds?

Pearson Correlation 1 .246*

Sig. (2-tailed) .014

N 100 100

How would you rate

McDonalds in following

aspects? (Opening Hours)

Pearson Correlation .246* 1

Sig. (2-tailed) .014

N 100 100

*. Correlation is significant at the 0.05 level (2-tailed).

INTERPRETATION:

The analysis was done by performing a two tail test on Pearson correlation. It has been

found that there is high positive correlation of 0.246 at 5% level of significance between

two factors i.e. the frequency of visit to McDonalds and its opening hours.

So, we can say that hypothesis is accepted.

Page 61: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

Table:17

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .566

Bartlett's Test of Sphericity

Approx. Chi-Square 126.108

Df 28

Sig. .000

Communalities

Initial Extraction

How would you rate

McDonalds in following

aspects? ( Money)

1.000 .706

How would you rate

McDonalds in following

aspects?(Ambience)

1.000 .558

How would you rate

McDonalds in following

aspects? (Opening Hours)

1.000 .384

How would you rate

McDonalds in following

aspects?(Nutritional Value)

1.000 .693

How would you rate

McDonalds in following

aspects? (Menu)

1.000 .787

How would you rate

McDonalds in following

aspects? (Location)

1.000 .570

How would you rate

McDonalds in following

aspects? (Customer

Service)

1.000 .427

How would you rate

McDonalds in following

aspects? (Parking Lot)

1.000 .740

Extraction Method: Principal Component Analysis.

Page 62: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared

Loadings

Total % of

Varianc

e

Cumulative

%

Total % of

Variance

Cumulative

%

Total % of

Variance

Cumulati

ve %

1 2.176 27.200 27.200 2.176 27.200 27.200 1.949 24.357 24.357

2 1.498 18.727 45.927 1.498 18.727 45.927 1.493 18.663 43.019

3 1.192 14.894 60.821 1.192 14.894 60.821 1.424 17.801 60.821

4 .991 12.391 73.212

5 .799 9.982 83.193

6 .539 6.732 89.925

7 .437 5.463 95.388

8 .369 4.612 100.000

Extraction Method: Principal Component Analysis.

Page 63: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

Component Matrixa

Component

1 2 3

How would you rate

McDonalds in following

aspects? ( Money)

.589 -.460 -.384

How would you rate

McDonalds in following

aspects?(Ambience)

.240 -.073 .704

How would you rate

McDonalds in following

aspects? (Opening Hours)

.393 .182 -.443

Page 64: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

How would you rate

McDonalds in following

aspects?(Nutritional Value)

.682 .444 -.176

How would you rate

McDonalds in following

aspects? (Menu)

.066 .885 .002

How would you rate

McDonalds in following

aspects? (Location)

-.753 .023 .051

How would you rate

McDonalds in following

aspects? (Customer

Service)

.317 .376 .430

How would you rate

McDonalds in following

aspects? (Parking Lot)

.693 -.355 .366

Extraction Method: Principal Component Analysis.

a. 3 components extracted.

Rotated Component Matrixa

Component

1 2 3

How would you rate

McDonalds in following

aspects? ( Money)

.684 -.488 .014

How would you rate

McDonalds in following

aspects?(Ambience)

-.130 .034 .735

How would you rate

McDonalds in following

aspects? (Opening Hours)

.564 .132 -.221

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How would you rate

McDonalds in following

aspects?(Nutritional Value)

.698 .439 .113

How would you rate

McDonalds in following

aspects? (Menu)

.089 .878 -.090

How would you rate

McDonalds in following

aspects? (Location)

-.683 .004 -.320

How would you rate

McDonalds in following

aspects? (Customer

Service)

.086 .443 .472

How would you rate

McDonalds in following

aspects? (Parking Lot)

.419 -.276 .699

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 7 iterations.

INTERPRETATION:

By applying factor analysis, using principal component analysis of extraction method we

found

Component Transformation Matrix

Component 1 2 3

1 .877 .035 .480

2 .037 .990 -.139

3 -.480 .139 .866

Page 66: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser

Normalization.

FINDINGS

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• It has been concluded that according to the above study the consumers mainly

consist of students.

• These students mainly consume fast food for around 2-5 times a month.

• The consumers prefers their fast service & delivery while choosing these fast

food joints.

• Although the consumers also pay attention to the variety of the food products

available in the fast food joints.

• It is concluded that few people also prefer the ambience and the offers provided in

these joints.

• However few consumers did mention that there is still need for better and

attractive offers exists in these joints.

• The cleanliness is also an important factor mentioned by many consumers but

they didn’t consider it as important as compared to the fast service.

• On applying correlation analysis (using SPSS) on the primary data collected, it

has been found that there exists a positive relationship between the two factors

viz. frequency of visit of customers to McDonalds with its nutritional value and

its opening hours.

CONCLUSION

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Consumer acceptance of food served by fast food outlets is critically important for the

future growth of fast food outlets in any economy. Though the rating of fast food

outlets’ attributes under study based on mean score is very high but still consumers

visit fast food outlets for fun, change or entertaining their friends but certainly not as a

substitute of home made food.

Consumers demand more and more information related to hygiene issues and nutritional

values of the products of fast food outlets. Based on the analysis and results, we can say

that with more and more acceptability of fast food outlets and change in life style,

competition among fast food outlets with respect to quality of food and customer service

will be more prominent in the days to come.

This study finds that consumers attach great importance to various factors such as quality

of food, facility layout, service quality – speed and cleanliness. But all factors are not

equally important while choosing a food franchise. Hence we can say that good taste and

good ingredients are most important factors whereas additional information is least

important factor for the consumers. There is a moderate positive correlation observed

between satisfaction level of price of McDonald‟s products and the frequency of the

visits to McDonalds. It means more the consumer is satisfied with the pricing, more they

visit the outlet. According to most of the consumers, taste and quality of ingredients of

the food items are the most important factors.

SUGGESTIONS & RECOMMENDATIONS

• To provide more attractive offers and discounts to the consumers.

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• To print and make the consumers aware of the nutritional facts.

• In addition to the fast food few health friendly food products can be added to the

menu.

• To maintain their fast delivery and service. Also to maintain a stability in their

services and quality of food.

• To provide a friendly environment for the consumers, that is friendly staff.

• Not only for the consumers but a work friendly environment should be provided

for the staff.

• Attractive and innovative packaging as consumers do judge a book by its cover.

• Specials in the menu that are specific to that area.

• Food products must be verified by health Departments.

LIMITATIONS OF THE STUDY

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It is always a problem to get an enthusiastic response. There were not many

willing participants; lack of cooperation remains an aberration in most of the

survey based researches.

The study is only restricted to the Noida city.

Time constraint is also one of the factor.

REFERENCES

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WEBSITES :

www.mcdonaldsindia.com

NEWSPAPER :

The Times of India

The Economic Times

RESEARCH PAPERS:

Ajzen (1998) “Small town India on fast food express”, Express: Hotelier & Caterer,

September 8, available at:

www.expresshotelierandcaterer.com/20030908/foodservice01.shtml

Baltas (2001, cited by Schroeder and McEachern 2005) ‘McDonald’s: think global,

act local- the marketing mix’ British Food Journal, Volume 103 Number 2 2001 pp. 97-

111

(Boseley, 2006) “Fast food greases India’s way to fat”, Chicago Tribune, available at:

www.

chicagotribune.com/news

Brown, K., McIlveen, H. and Strugnell, C. (2000), “Nutritional awareness and food

preferences of young consumers”, Nutrition & Food Science, Vol. 30 No. 5, pp. 230-5.

Page 72: A STUDY OF FACTORS INFLUENCING CONSUMER PERCEPTION TOWARDS MCDONALDS

(Marrin, 2006) “Fast food: dietary perspectives”, Nutrition & Food Science, Vol. 34 No.

2, pp. 80-2.

Schiffman and Kanuk (2004 p.256 “Fast food, obesity and tort reform: an examination

of industry responsibility for public health”, Business and Society Review, Vol. 110 No.

3, pp. 297-320.

VERBEKE, W. ‘Influences on the consumer decision-making process towards fresh

meat’ Vol. 102 No. 7, pp. 522-538

VERDURME, A., VIAENE, J. (2003) ‘Exploring consumers attitudes towards

genetically

modified food’, vol.6, number 2, pp.95-110

BOOKS:

Philip Kotler, Marketing Management

.

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ANNEXURE

Dear respondent,

I am a student of MBA, is conducting a research on A Study of Factors

Influencing Consumer Perception Towards McDonalds”. I would be extremely thankful

if you spare some time to answer the following questions. All the facts disclosed by you

will be used for academic purpose only.

1. What do you do in McDonalds?

□ Enjoy □ Have Snacks

□ Timepass □ Enjoy+ Snacks

2.How often do you visit to McDonalds?

□ Once a week □ Twice a week

□ Once a month □ Daily

3.With whom you like to go?

□Parents □ Friends

□ Girlfriend/ Boyfriend □ Husband/ Wife

4.Why do you prefer McDonalds in comparison to other traditional fastfood?

□Better Taste □ Quick Service

□Offer/ Discounts □ Cleanliness

□ Brand Value □ Efficiency in Service

5.What is your perception about McDonalds in your mind?

□Quality Products □Value for Money

□Possess Brand equity □ For Niche marketing

6..Which product do you like most?

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□Fries □Burger

□Ice-cream □Pizza Puff

7.What is the most important factor for choosing Happy Meal?

□Reasonable Prices □ Gift Attachment

□ Attractive Packaging □ Good Taste

□ Nutritious Value

8 What will you do if the price of products increase with 25%?

□ Consistent with same □ Switch to other Brand

□ Reduce your visits □ Increase your visits

9.How do you pay bills?

□Cash □ Credit Card

□ Debit Card □ Others

10.What improvements would you recommend in McDonalds?

□Music or T.V. □ Waiter Service

□ Quality Improvement □ Others

11.What is your preferred eating service in McDonalds ?

□Eat In □Take Away

□Both

12.How would you rate McDonalds in following aspects?

Excellent Very Good Average Poor Very Poor

(1) (2) (3) (4) (5)

Money

Ambience

Opening Hours

Nutritional Value

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Menu

Location

Customer Service

Parking Lot

15. Name………………………

16. Age

□ 15 to 30 □ 31 to 45

□ 46 to 60 □ above 60