M ARKETING ARKETING M M ANAGEMENT ANAGEMENTP PROGRAM ROGRAM: M.C : M.COM OM B BATCH ATCH : 6 : 6 A A SSIGNMENTSSIGNMENTTTOPICOPIC. . F FAST AST F FOOD OOD I I NDUSTRY NDUSTRY C COMPLETE OMPLETE A ANALYSIS NALYSIS SUBMITTEDTO: Mr. Hammad MushtaqSUBMITTEDBY: ADNAN SAJID 100645-011 DA TE: 20-05-2011 Consumer Involvement 1
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5/12/2018 Fast Food Industry Complete Analysis - slidepdf.com
This Proposal explains the Consumer Involvement in purchasing of Fast Food products which
tells that how much people are involved in the Fast Food products they used to make decisions
about them, It explains the Problem Statement, Research Question, Research Objectives andResearch variables for conducting a research on checking the consumer involvement level in the
purchasing of Fast Food products.
It explains the Research Methodology which had used for conducting a research that what were
the sources and nature of the data. It explains that how we measured the data which was got
from the research.
Sampling Plan for the research also being explained that what our population, Sampling Unit,
how big our sample size was and what method we used for conducting a survey e.g.
Questionnaire.
Time Schedule will explain that how much time it took to complete our different aspects of
research and at the end the Cost Schedule that how much cost incurred on starting and
completion of the research.
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In this fast moving life with busy schedules and almost not time to spare every person of this
world wants fast transportation, fast communication and fast services like wise they want some
quick method in preparation of their food. The think that fulfill their demand is known as fast
food. The concept of fast food is generally associated with urban development. The food that is
prepared and served with in very short period of time is known as fast food or any meal with
low preparation of time can be considered as fast food. Typically the term fast food refers to
food sold in a restaurant or store with low quality preparation and served to the customer in a
packaged form for takeout or take away. The most evident advantage of fast food is that it saves
time. In today's fast-paced life, there is nothing better than getting a ready meal. Besides time,
cost saving gives fast food an edge over the meal prepared in the kitchen. If one lives alone,
then it is cheaper to buy a meal at the supermarket instead of cooking it at home. Different type
of meals like pizza, sandwich, French fries, fried chicken, shuwarma, hamburgers etc are
including in fast food.
Carl N. Karcher is one of the fast food Pioneer of Fast Food Industry in the world. In U.S the
largest segment of Fast Food is available with over 200,000 restaurants. But since late 2006, the
growth becomes slow because of soaring food and energy prices.
The concept of fast food not only in other countries but now in Pakistan is very common. This
industry now in Pakistan attracts so much people. Almost a person of every age now likes to eat
fast food. This industry works in Pakistan both in local level and international level. At
international level some international fast food franchises play a major role behind the success
of this industry in Pakistan. In this regard the contribution of International fast food franchiseslike KFC, MacDonald’s, and Pizza Hut being consider very important. At local level the fast
food restaurants like Fri chicks, AFC etc give head to head competition these international fast
food franchises in Pakistan.
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Introduction of the organization under study (KFC)
KFC that is also known as “Kentucky Fried Chicken” is a brand of Yum! Incorporation. KFC
founded by Colonel Harland Sanders in 1952, is widely known as the world famous fast food
restaurant around the world.
Colonel Harland Sanders was born at 9 September 1890 in Louisville, Kentucky, U.S. He study
hard on fried chicken technologies, finally invented the eleven spices and unique cooking
technologies synthetic secret recipe successfully and was favored by the customers. The
business of the restaurant boom gradually and the secret recipe was continue to use until now.
In 1930; he started cooking chicken in a service station named sander’s court Corbin. In 1936
Kentucky started “Sanders Court & Cafe”. It was a dinning cafe and the governor of that time
Mr. Ruby Laffoon congratulates Sanders on his contribution to the state’s cuisine. Then sanders
expand his restaurant seats up to 142. In 1952 he moved to USA and opened the first“Kentucky Fried Chicken” outlet in 1952. Because of its unique and delicious flavor KFC gain
the success with in years. In very short period of time KFC gain international success and
recognition. Then the outlets of KFC were opened not only in USA but also in other countries
of the world. Now KFC has been the world biggest Fried chicken fast-food chain enterprise,
which has own more than 11,000 restaurants. These restaurants are over more than 80 countries.
KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is
fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts.
According to current scenario they offer Zinger burger, Col. Fillet burger, Macho’s burger, Col.
Chicken burger, Cheese, Nuggets, Hot wings, Fries, Corn on the cob, Arabian rice, Dinner rolls,Hot and crispy soup, Soft Drink, Mineral water, Espresso, Cappuccino, Tea etc.
Like wise different countries KFC entered in Pakistan in 1st January 1997. When they opened
their first outlet in Gulshan-e-Iqbal , Karachi and with in no time KFC gained fabulous
popularity among the people of Pakistan. With in two or three years it became the market leader
and one of the famous fast food chains in Pakistan. According to the current situation KFC is
branched out in 17 cities of Pakistan with more than 62 outlets nation wide.
Introduction of the Major Competitors in the Industry
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AFC is the fast food chain in Pakistan, which was started in mid 90’s in Samanabad Lahorewhen fast food in Pakistan was emerging and becomes famous in the People. It is local fast food
chain of Pakistan. Now AFC has thirteen branches nationwide like Mall Road, Railway Station,
Abbot Road, Allama Iqbal Town, Fortress and Township in Lahore and it is also operating in
the cities like Faisalabad, Gujrat, Rawalpindi, Abbotabad, Peshawar, Murree and Sargodha. The
Head office of AFC is situated on 95-Main Marked Saman-Abad Lahore which is also the first
branch AFC.
AFC claimed that they provide hygienic and quality products and used frozen chicken which is
safe, healthy and hygienic for the customers and offered fewer prices as compared to other Fast
Food Chains like McDonald’s, KFC and Pizza Hut etc so that middle class people can alsoafford fast food which was not possible for the people and their goal and aim is “To make
quality fast food available to all those people who liked the fast food but couldn’t afford.”
McDonalds
McDonald’s restaurant is the largest fast food chain of the world which provides different types
of product like hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft
drinks, milkshakes, and desserts and salads, wraps and fruit for the health conscious people.
McDonalds Corporation started in 1940 by the two brothers Dick and Mac McDonald in San
Bernardino, California, and then Ray Korc opened the first McDonald’s restaurant in 1955 in
the United States of America. It is the ninth most valuable brand in the world.
Now, McDonalds is the leading global food service retailer with more than 30,000 local
restaurants, employing more than 1.5 million people and serving 54 million customers in more
than 120 countries each day. In Pakistan it is also being operated and proved to be famous fast
food brand in Pakistan. It was opened in Pakistan in 1998 at Lahore and now working in seven
major cities of Pakistan and has 20 branches all over Pakistan and also planning to move
forward in other cities as well by using aggressive plan to expand. And they are givingemployment to about 3000 people in Pakistan with the investment of 30 million.
Consumer Involvement in financial services: an empirical test of two measures
By Abdullah H. Aldlaigan
Manchester Business School, University of Manchester, Manchester, UK Francis A. Buttle
Littlewoods Professor of Customer Relationship Management, Manchester
Business School, University of Manchester, Manchester, UK
Article explains that firstly consumer involvement is being used in the field of social
psychology and believed to be the relation between ego and object. And the audience response
to persuasive message is based on two things, one is the initial attitude towards the certain topic
and other is the involvement level. There are three types of involvement situational, enduring
and response involvement and these are introduced by Houston and Rothschild, so when these
types are being conceptualized they become stimulus, organism and response. This article alsoexplains the definition of involvement by both of them which is appropriate for the research of
consumer involvement in financial services which explains that involvement is an unobservable
state of motivation, arousal and interest.
This article explains about the consumer involvement level in the different financial services.
And consumer involvement is being checked through two measures PII and CPI. PPI treats
involvement as a unidimensional construct whereas CPI treats involvement as multidimensional
construct and both focus on individual-object involvement. PPI are related to three dimensions
Personal, Physical and Situational and whereas CPI measure five dimensions like Interest,
Pleasure, Sign Value, Importance risk and Risk Probability.
This article explain that firstly six financial services were selected for checking the consumer
involvement but then pretesting was performed to check whether the questions which were
being asked understandable for the respondents or not. After pretesting one thing became clear
that respondents had some problem in giving response to some of the services because some
services were used in the one category like two services in one category so after understanding
the problem then six services were converted into eight services and then consumer
involvement were checked on these eight services and services were, a cheque book, an
overdraft facility, switch services, a cash machine, savings account, investment services and personal loan.
This article explains that in research firstly questionnaire asked about twenty items related to
financial services of PPI and measures those on seven-point semantic differential scale and then
fifteen statements were asked on the format of five points Likert scale of CPI. In research
sample size of 120 people were selected and convenience sampling was used. The response rate
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was 51 percent. The findings of the research showed that both the measures had different
involvement level for eight financial services which are being used. The PPI measure indicated
that Cash machine used, mortgage and investment are high involvement services whereas CPI
measure indicated that mortgage, investment and savings account are high involvement
services. In PPI measure savings account, personal loan, a cheque books, overdraft facility and
switch services are the middle range involvement financial services whereas in CPI measure personal loans, overdraft facilities, switch card, cash machine and cheque book usage are in the
middle range of involvement. And between both of these measures PPI proved to be more
reliable as compared to CPI.
In this article findings of the research were recognized that Involvement level for different
financial services were not equal, the scales which were used PPI and CPI focused on the
different dimensions of involvement and at last customized instrument should be develop to
measure the involvement and finally in order to understand the link between consumer
involvement and customer behavior in financial services more research is needed.
.
An Experimental Study on the Relationship between Consumer Involvement
and Advertising Effectiveness
By Shwu-Ing Wu, Department of Business Administration, National Chin-Yi
Institute of Technology, Taiwan
This article explain that the relationship between consumer involvement and Advertising
Effectiveness. Consumer Involvement in product category is proved to be a very important
variable in the designing of advertising strategy and to understand whether consumers have highor low involvement in the product category; there are many scales which are designed to
measure the consumer involvement. But in this research to check the relationship between the
consumer involvement and adverting effectiveness, PII (Personal Involvement Inventory) was
used due to its internal reliability, reliability over time, content validity, criterion-related
validity, and construct validity and also consumers were segmented in various clusters. Another
important thing which is explained it this article the hierarchy which consumer complete before
making a decision which tells that how consumers used advertising in their process of
purchasing. This hierarchy includes unawareness, Awareness, Knowledge, Liking, Preference,
Conviction and Purchase. In other words consumer first think, feel and do and it also tells that
whether there is a difference between various consumer involvement clusters in the advertising
effect hierarchy.
The factors that influence the level of consumer involvement in product, advertising or purchase
and the factors are the characteristics of the individual shoppers, physical characteristics of the
stimulus and purchasing situations. This study also explains the involvement construct, which is
base on the personal and product characteristics. So this article explains the checking of whether
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there is a positive relation between the advertising effect hierarchy and involvement and
secondly it explains whether there is positive relation between advertising content and
involvement.
This article explains that perception of the advertising content including plot, slogan,
representative person, product introduction, expression, map and print of the customers aregathers through focus group and also questionnaire of eight parts including demographic, AIO
(Actives, Interests, Opinions), advertising content importance, advertising effect hierarchy and
consumer degree of involvement in a high involvement product, automobile, low involvement
product and shampoo were used and sample size of 500 people were selected to ask about these
dimensions and five points Likert scale was used for AIO under PII measure and random
sampling method was used for this purpose. The response rate was 97.8 percent.
The article explains the findings that the result showed that segment of the market can be
effected by the degree of consumer involvement and the results explains that there is a positive
relationship between the degree of consumer involvement and advertising effect hierarchy andalso it explains that there is a positive relationship between the degree of consumer involvement
and advertising effect if degree of consumer involvement will high the advertising effect will
also high. So all these findings prove that for the advertising strategy the degree of consumer
involvement is the major indication.
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• We used primary and secondary data resources for checking the Consumer Involvement
level in purchasing the Fast Food. We draw the sample of 25 and collect the responses
of people who were involved to eat fast food. For this purpose we build a questionnaire
and collect their responses.
• Our basic purpose was to check the consumer involvement level of fast food industry in
Pakistan and focus on four factors like price, quantity, hygiene and ingredients.
• We also read some articles like (consumer involvement in financial services) to better
understand the concept of consumer involvement. It gives us so much help in data
collection. It helps us in making objectives, variables and the factors which is under
research to measure the overall consumer involvement level in fast food industry inPakistan.
M EASUREMENT M ETHODS
• There are several measurement tools that we have use in this project. Our first and most
important tool in our measurement methods is our Questionnaire. We built our
questionnaire by using 5-point likert scale. Then we put all the responses of our selective
sample in SPSS.
•
Through SPSS we take means, sum, quartiles. And for check the significance level of our factors we apply t-test, regression and correlation, factor analysis and corn Bach
alpha to check the overall significance of our sample.
• We also use Microsoft Word and Excel for report righting purpose and use excel for
plotting some table and in making of Gantt chart. We use all these software so we can
represent our analysis through graphs and quantitative data like table and Gantt chart etc.
Gantt Chart completed explains when our project started and ended.
Sampling Plan
Population
All people who eat fast food
Sampling Unit
Our sampling unit included Teenagers, Male and Female those who were involve eating Fast
Food Products particularly of KFC.
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Only respondents was from Wapda town and he has high Involvement Level in Fast Food
Gulberg
There were four respondents were from Gulberg and 3 people have low involvement level, one
has middle level of Involvement in Fast Food and at last no one has high involvement level in
fast Food in Gulberg. So most of the people in Gulberg have low level of Involvement in fastFood.
Mustafa Town
Three respondents were from Mustafa Town and no one has low level of involvement in Fast
Food, 2 people have middle level of involvement and only one person has high level of
involvement in the Fast Food. So most of the people in Mustafa Town have middle level of
Involvement.
Johar Town
There were five respondents were from Johar Town and 1 person has low level of involvementin the fast Food, 3 people have middle level of involvement and at last one person has high level
of involvement in the Fast Food. So most of the people in Johar Town has middle level of
Involvement.
DHA
There were five respondents were from DHA and no one has low level of involvement in Fast
Food in DHA, 3 people have middle level of Involvement in the Fast Food and at last 2 people
have high level of Involvement in Fast Food in DHA. So most of the people in DHA have
middle level of Involvement.
Askari
There was only one respondent from Askari View and he has low level of Involvement in the
Fast Food.
Ichara
There was one respondent from Ichara and he has middle level of Involvement in the fast Food.
Punjab Society
There was one respondent from the Punjab Society and he also has middle level of Involvement
in the Fast Food.
GOR
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There was only respondent from GOR as well and he has high level of Involvement in the Fast
Food
Factor Analysis
Factor Analysis
FactorsComponent
1 2
Price Involvement 0.617 -0.64
Hygienic Involvement 0.827 0.227
Quantity Involvement 0.768 -0.237
Ingredients Involvement 0.492 0.791
The Factors which are most important among all the factors are two out of four factors, people
who used fast food gives important to Hygienic Factor of the Fast Food that they want Fast
Food to be clean enough to eat. The Second most important factor for the consumers isIngredients of the Fast Food. They show much concerned about the Ingredients of the Fast
Food.
So the most Important Factors are:
1. Hygienic Factor
2. Ingredients
Factor Analysis
FactorsComponent
1 2 3 4 5
How much consumer has concerned
in Fast Food0.349 0.105 0.813 -0.308 0.238
How much beneficial Fast Food is for
the consumer 0.834 -0.062 -0.387 -0.056 0.125
How boring Fast Food is for the
consumer 0.475 0.408 -0.203 0.61 0.166
To what extent Fast Food is exiting
for the consumer 0.685 0.441 0.145 0.229 -0.443
How much consumer desire aboutthe Fast Food
0.582 0.612 -0.154 -0.231 -0.283
There are five factors which are most important for the consumer regarding the Fast
Food.
1. The first most important factor for the consumer is that they want that Fast Food should
be a Beneficial Food for them or they are much concerned in the Benefits of the Fast
Food or it is a beneficial food.
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H1: β ≠ 0 (There is a significant relationship between the Involvement Level and Age)
Level of Significance = 0.05
We perform regression analysis on Age and Involvement level of the consumer. We take Age asIndependent Variable so it is constant and Involvement Level as Dependent variable. When we
see significant value it is 0.130 so it shows that there is no dependency in Age and Involvement
level or we can say that both are independent.
Gender
Model Summary
Model R R SquareAdjusted R
Square
Std. Error of
the
Estimate1 .227a 0.052 0.01 8.35081
The model which we have made is very weak which is clear from the R square value which
was very low.
Coefficients
ModelUnstandardized Coefficients
Standardize
d
CoefficientsSig.
B Std. Error Beta
1(Constant) 79.446 5.046 0
Gender -4.163 3.72 -0.227 0.275
Ho: β =0 (There is no significant relationship between the Involvement Level and Gender)
H1: β ≠ 0 (There is a significant relationship between the Involvement Level and Gender)
Level of Significance = 0.05
We Perform Regression Analysis to check whether Gender and Involvement have some relation
or not. We came to know after the analysis that the significance value is 0.275 which is more
than the allowable error which was 0.05. So we do not reject H0 and which proved that there is
no dependency between Gender and Involvement Level and both are independent.
Household Income
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The model we built was very weak because its R square was very low which almost 0.
Coefficients
Model
Unstandardized
Coefficients
Standardized
CoefficientsSig.
BStd.
Error Beta
1
(Constant) 73.732 5.379 0
Household
Income-0.021 1.055 -0.004 0.985
Ho: β = 0 (There is no significant relationship between the Involvement Level and
Household Income)
H1: β is not equal to 0 (There is a significant relationship between the Involvement Level
and Household Income)
Level of Significance = 0.05
We perform Regression Analysis to check whether Involvement Level is dependent on the
household Income or not. So we take Household Income as Independent variable andInvolvement level as Dependent Variable. The findings shows that the significance value is far
more than the allowable error which was 0.05 so we will not reject Ho which means that there
no dependency in household Income and Involvement Level or Involvement level is not
dependent on the Household Income.
Frequency of Purchasing Fast Food
Model SummaryModel R R Square
Adjusted R
Square
Std. Error of
the Estimate
1 .034a 0.001 -0.042 8.57013
We came to know the model we made was very weak which can be seen from R Square that the
value is 0.001, which is very low.
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