Sugandha Agarwal
European International College, Abu Dhabi, UAE
E-mail: drsugandhaagarwaal@gmail.com
Rafika Ben Guirat
European International College, Abu Dhabi, UAE
E-mail: rafika.benguirat@eic.ac.ae
Submission: 05/04/2017
Accept: 12/05/2017
ABSTRACT
The
global markets have witnessed major shifts in the consumers’ behavior that have
been much influenced by the change of technology, innovation, research and
development. The consumer’s needs thus dynamically change in order to respond
to the change in the social and business environment. The corporate and
business strategies of companies thus being developed in the light of
capitalizing the potential from the markets but however, how the customers
would react to the products and services of companies in new and existing
markets remain the major question.
Customers belonging to different age groups flock
towards these outlets to satisfy their taste buds and hedonistic needs. Out of
all the age groups, the youngsters are considered to be the primary target by
the fast food service industry. Hence, these fast food services try to lure its
customers through sensory appeals.
It is well known that organized fast food
services have already made their presence felt in a big way in almost all the
major cities of India. The fast food outlets attract customers with their blend
of tasty food, Quality of food served, efficient service, appearance of staff,
décor, general excitement a place generates and other aesthetic appeals.
Organized as well as unorganized fast food service is a very fast growing
industry in India especially in urban areas. The aim of this
study is to investigate the factors that are influencing consumer behavior
towards fast food joints present in unorganized form in India. It
further aims to examine major growth drivers of fast food services in the
market and the demographic profile of consumers of fast food services. This
study aims to analyze that amount spent per visit to a fast food joint relates
to the occupations and the income of customers. And the frequency of visiting
fast food joints and preparation served at fast food joints are whether
influenced by the dietary preference of customers. Organizations must analyze
the consumer behavior which is largely influenced by number of socio-cultural,
demographic and psychological factors. To differentiate itself from others
in the market, is the core purpose of organizations and to achieve this, an
all-inclusive approach is essential to integrate all the crucial yet important
factors that could improve the overall business strategy. Fast food joints
realize the importance of factors that influence and affect the customer
behavior and the potential of customer loyalty program in order to improve
their brand image and company identity in the consumer market.
Keywords:
consumer behavior, business strategies, socio-cultural factors, psychological
factors, sensory appeals, demographic factors
1. INTRODUCTION
India
is one of the most expeditious growing economies in the world. Driven by
transmuting demographics, auxiliary and stable regime, propitious economic
policies, and a positive sentiment that country’s GDP is estimated to grow at
7.4 percent, as estimated by the International Monetary Fund (IMF), over the
Fiscal year 017 (FY 17) and FY 18.
Relatively,
the world economy is expected to grow at 3.1 percent over 2016, postulating
unaffected trade ties between the European Coalescence (EU) and the Amalgamated
Kingdom (U.K.). These projections make India the most expeditious growing
astronomically immense economy world-wide. Similarly, India’s magnification
ratings by the ‘Big Three’ credit rating agencies depict a positive perspective
as shown in the below-mentioned table.
Agency/Organization |
Growth Forecasts
for India |
|
|
FY 17 |
FY18 |
Fitch
ratings |
7.7% |
7.9% |
Moody’s
investors service |
7.5% |
7.5% |
Standard
& Poor’s |
8.0% |
8.0% |
IMF |
7.4% |
7.4% |
ADB
(Asian Development Bank) |
7.4% |
7.8% |
(Source: KPMG &
FCCI. (2016, November). India’s
food service industry : growth recipe : consumer market. Retrieve from https://assets.kpmg.com/content/dam/kpmg/in/pdf/2016/11/Indias-food-service.pdf)
The
Indian hospitality industry is one of the industries which contribute to
country’s growth with positive outlook. Major characteristics of the Indian
hospitality industry are High seasonality, Labor intensive, Fragmented,
Changing consumer dynamics and availability of easy finance.
Major
characteristics of the Indian hospitality industry are High seasonality, Labor
intensive, Fragmented, Changing consumer dynamics and availability of easy
finance. The Indian hospitality industry is highly fragmented with a large
number of small and unorganized players accounting for a lion’s share. The
country has experienced a change in consumption patterns.
The
middle-class population with higher disposable incomes has caused the shift in
spending pattern, with discretionary purchases forming a substantial part of
total consumer spending. Increased affordability and affinity for leisure
travel are driving tourism in India and in turn aiding growth of the
hospitality industry. Emergence of credit culture and easier availability of
personal loans have also driven growth in the travel and tourism and
hospitality industries in the country.
The
Indian hospitality industry has emerged as one of the key industries driving
growth of the services sector in India. It has evolved into an industry that is
sensitive to the needs and desires of people. The fortunes of the hospitality
industry have always been linked to the prospects of the tourism industry and
tourism is the foremost demand driver of the industry.
The
Indian hospitality industry has recorded healthy growth fueled by robust inflow
of foreign tourists as well as increased tourist movement within the country
and it has become one of the leading players in the global industry.
Fast
Food Industry in India became the fastest growing industry in the last decade
when number of international companies entered the market in order to expand
their market share and area of operations.
However,
the major challenges that appeared amongst the retailers were cultural
barriers, difference in eating habits and religious barriers whereas
unawareness, low spending power was others. However, with the advent of
Globalization and Liberalization of economy, major changes were noticed in
terms of education level, employment, and savings and GDP rate in the economy.
This
led to more purchasing power in the consumers that began to try the new
consumer durables and eat outplaces in metro cities and towns. This also
impacted on the sales and growth of fast food retailers who developed their
customer relationship strategy and marketing mix more often to gain competitive
advantage in the markets.
As
a result, the domestic and international retailers spread their operations to
major cities and towns across the country in a short period of time, however
still there was difference in the marketing strategy of international retailers
in terms of marketing initiatives they launched in the western countries.
The
research study thus focused on exploring theories and models of consumer
behavior, scope of customer loyalty and customer relationship strategy and
effectiveness of marketing strategies of domestic and international retailers
in the market. The Indian fast food habits and the customer perception towards
fast food has noticed gradual shift in the recent years as the significant
portion of the population spent more money on eating fast food from the
domestic and international retailers in the market.
The
sector was once unnoticed and merely had any existence in the food and
hospitality industry but recent findings suggested that there is huge potential
in the sector as the growth rate was recorded above 30% in the recent years.
The major international players including Kentucky Fried Chicken, McDonalds,
Pizza Hit, and Dominos’ entered the Indian market in the last decade.
As
per the KPMG and FICCI report, 2016, the Indian Food and Beverage (F&B)
services industry is one the most vibrant industries to witness rapid and
unprecedented growth over the recent past. The industry contributes
significantly to the nation’s economy and has been the frontrunner in terms of
attracting investments.
‘The
Gross Value Added (GVA) by Hotels and restaurants has witnessed an annual
increase in both absolute and relative terms. It grew from INR 1,084.2 billion
in FY14 to INR 1,211.7 billion in FY 15, growing its contribution in country’s
overall GVA from 1 % in FY 14 to 1.1% in
FY15’ (source: press notes on First Revised Estimates of National Income,
Consumption Expenditure, Savings and Capital Formation 2014-2015, CSO-MoSPI,
January 2016).
According
to National Restaurant Association of India (NRAI), ‘the restaurant industry is
expected to contribute about 2.1 percent to the total GDP of India by 2021’
(source: NRAI India Food Services Report 2016 launched by Shri Amitabh Kant in
New Delhi, NRAI websites, 21/07/2016). Food expenditure constitutes a majority
of population’s consumption basket and the share is expected to grow further in
the coming years.
(Source: KPMG
& FCCI. (2016, November). India’s food service industry: growth recipe
: consumer market. Retrieve from https://assets.kpmg.com/content/dam/kpmg/in/pdf/2016/11/Indias-food-service.pdf)
1.1.
Factors
Influencing Consumer’s Behavior
Consumer
behavior refers to the selection, purchase and consumption of goods and
services for the satisfaction of their wants. After selecting the commodities,
the consumer makes an estimate of the available money which he can spend.
Lastly, the consumer analyzes the prevailing prices of commodities and takes
the decision about the commodities he should consume. Meanwhile, there are
various other factors influencing the purchases of consumer such as social,
cultural, personal and psychological.
1.2.
Cultural
factors
Consumer behavior is deeply
influenced by cultural factors such as: buyer culture, subculture, and social
class.
Culture: Basically,
culture is the part of every society and is the important cause of person wants
and behavior. The influence of culture on buying behavior varies from country
to country therefore marketers have to be very careful in analyzing the culture
of different groups, regions or even countries.
Subculture: Each culture contains different subcultures such as
religions, nationalities, geographic regions, racial groups etc. Marketers can
use these groups by segmenting the market into various small portions. For
example, marketers, can design products according to the needs of a particular
geographic group.
Social Class: Every society possesses some form of social class which is
important to the marketers because the buying behavior of people in a given
social class is similar. In this way marketing activities, could be tailored
according to different social classes. Here we should note that social class is
not only determined by income but there are various other factors as well such
as: wealth, education, occupation etc.
1.3.
Social
factors
Social factors also impact the
buying behavior of consumers. The important social factors are: reference
groups, family, role and status.
Reference Groups: Reference groups have potential in
forming a person attitude or behavior. The impact of reference groups varies
across products and brands. For example, if the product is visible such as
dress, shoes, car etc. then the influence of reference groups will be high.
Reference groups also include opinion leader (a person who influences other
because of his special skill, knowledge or other characteristics).
Family: Buyer
behavior is strongly influenced by the member of a family. Therefore, marketers
are trying to find the roles and influence of the husband, wife and children.
If the buying decision of a particular product is influenced by wife, then the
marketers will try to target the women in their advertisement. Here we should
note that buying roles change with change in consumer lifestyles.
Roles and Status: Each person possesses different roles
and status in the society depending upon the groups, clubs, family,
organization etc. to which he belongs. For example, a woman is working in an
organization as finance manager. Now she is playing two roles, one of finance
manager and other of mother. Therefore, her buying decisions will be influenced
by her role and status.
1.4.
Personal
factors
Personal factors can also affect the
consumer behavior. Some of the important personal factors that influence the
buying behavior are: lifestyle, economic situation, occupation, age,
personality and self-concept.
Age: Age
and life-cycle have potential impact on the consumer buying behavior. It is
obvious that the consumers change the purchase of goods and services with the
passage of time. Family life-cycle consists of different stages such young
singles, married couples, unmarried couples etc. which help marketers to
develop appropriate products for each stage.
Occupation: The occupation of a person has significant impact on his
buying behavior. For example, a marketing manager of an organization will try
to purchase business suits, whereas a low-level worker in the same organization
will purchase rugged work clothes.
Economic Situation: Consumer economic situation has great
influence on his buying behavior. If the income and savings of a customer is high,
then he will purchase more expensive products. On the other hand, a person with
low income and savings will purchase inexpensive products.
Lifestyle: Lifestyle of customers is another important factor
affecting the consumer buying behavior. Lifestyle refers to the way a person
lives in a society and is expressed by the things in his/her surroundings. It
is determined by customer interests, opinions, activities etc and shapes his
whole pattern of acting and interacting in the world.
Personality: Personality changes from person to person, time to time and
place to place. Therefore, it can greatly influence the buying behavior of
customers. Actually, Personality is not what one wears; rather it is the
totality of behavior of a man in different circumstances. It has different
characteristics such as: dominance, aggressiveness, self-confidence etc. which
can be useful to determine the consumer behavior for particular product or
service.
1.5.
Psychological
Factors
There are four important
psychological factors affecting the consumer buying behavior. These are:
perception, motivation, learning, beliefs and attitudes.
Motivation: The level of motivation also affects the buying behavior of
customers. Every person has different needs such as physiological needs, biological
needs, social needs etc. The nature of the needs is that, some of them are most
pressing while others are least pressing. Therefore, a need becomes a motive
when it is more pressing to direct the person to seek satisfaction.
Perception: Selecting, organizing and interpreting information in a way
to produce a meaningful experience of the world is called perception. There are
three different perceptual processes which are selective attention, selective
distortion and selective retention. In case of selective attention, marketers
try to attract the customer attention. Whereas, in case of selective
distortion, customers try to interpret the information in a way that will
support what the customers already believe. Similarly, in case of selective
retention, marketers try to retain information that supports their beliefs.
Beliefs and Attitudes: Customer possesses specific belief and
attitude towards various products. Since such beliefs and attitudes make up
brand image and affect consumer buying behavior therefore marketers are
interested in them. Marketers can change the beliefs and attitudes of customers
by launching special campaigns in this regard.
2. REVIEW OF LITERATURE
India has seen unprecedented growth
and development in the fast food retailing in the recent years however this is
also vested to the significant increase in the income level, influence of
cultures, urbanization, globalization, changes in the lifestyles, family
structures and social interaction among consumers.
Ling et al. (2004), Goyal and Singh
(2007) emphasized that consumer buying behavior has been influenced by the
gradual changes in the economic, social, psychological and cultural factors and
moreover, the sustained development in the Indian market place has fueled the
fast food sector because of its relative competitive advantage in comparison to
other related sectors in the market.
Precisely, Mukherjee and Patel
(2005) found that the customer perception has significantly improved with
better eating experience they had at the stores that enormously changed their
customer relationship strategy. The customers now have access to the fresh
foods, variety of options with quick delivery at low prices. Wells et al.
(2007) also found that customer preference has also changed towards packaged food
in India as in the past there were merely few customers who tended to buy them.
However, the rising trend of fast
food availability in the market, emerging culture, desire for affordable food
and moreover, favorable eating experience has influenced the customers to try
the different kinds of fast foods available in the market.
Sabnavis (2008) cited that consumers
now made frequent visits to fast food chains in metro and urban cities in the
country and moreover, the small cities and towns have also been looking forward
to welcome the fast food retailers in their locations with the increased
awareness among the public in the markets.
Batte et al. (2007), Goyal and Singh
(2007) believed that choice of fast food stores among Indians was largely
influenced by their socio demographic characteristics such as disposable income
level, family size, education level, cultural background, age factor, religion,
etc. Significantly, the findings based on the survey conducted by Ali et al.
(2010) on Buying Behaviour of Consumers in Emerging Economies found that
consumers buying behaviour has been dynamically shifting and was highly
influenced by the places of purchase, variety, price, attraction for children,
entertainment features at stores and moreover intangible traits like hygienic
food, quality, cleanliness, courtesy, convenience and effective customer
services.
Sabnavis (2008) said that food
consumption pattern in India has now shifted from fresh, unprocessed food to
packaged, branded and processed food. The awareness and consciousness about the
foods has also added advantage to the fast food industry. The metro and fast
growing cities have noticed the fierce demand for fast food as multinational
organizations attempted to improve their market share in the country.
The study conducted by Goyal and
Singh (2007) on Consumer Behaviour of Fast Food Chains in India, found that
consumers now wished to have more convenient place where they could go with
their family to have good food while enjoying other features such as basic
amenities, entertainment, customer services and other physical environmental
features.
2.1.
Objectives
of Study
The objective of this study are to
analyze the consumer’s spending behavior on fast food consumption and their
preference for fast food menu at fast food restaurants, to analyze the
consumer`s consumption expenditure towards fast food with respect to gender,
age, income, education and dietary preference, to identify the determinants of
changing preference towards fast food joints, to find out the factors
influencing behavior of the consumers of fast food joints, to ascertain the
factors, influence the purchase of fast food, to identify the overall
satisfaction level among the customers of fast food joints.
2.2.
Research
Methodology
Research is the systematic process
of collecting and analyzing information (data) in order to increase our
understanding of the phenomenon about which we are concerned or interested.
In other words, the search for
knowledge through objective and systematic method of finding solution to a
problem is research. According to Redman and Mory: “Research is a
systematically effort to gain new knowledge”.
The research design followed for
this research work is initially exploratory study (which was used to understand
the factors influencing the behaviour of the consumers at fast food joints with
special reference to Nirula’s) followed by descriptive in nature.
2.3.
Sources
of data collection:
For the purpose of the study
the following sources of data are used:
Primary
Data: It is collected afresh
and for the first time, and thus happen to be original in character. This data
was collected through questionnaires and interviews which were done while
visiting the stores. Primary data was also collected from the
feedback of customers of fast food joints with the help of questionnaire.
Secondary
Data: It is that type of data
which have already been collected by someone else and which have through some
statistical analysis. This data was
collected from websites, journals and periodicals, business magazines, books
and past records of the organization. Secondary data was collected from internet,
journals, and books and from company’s employees.
2.4.
Sample
design and size
In this research work Judgemental Sampling method is
used. It is a non-probability sampling technique where the researcher selects
units to be sampled based on their knowledge and professional judgment.
The sample population
comprises of the customers who visited at different outlets of fast food joints
in Delhi and National Capital Region (NCR) of India
Though the questionnaires were administered to 150
customers. However, due to incomplete responses and to eliminate biased factor,
only 100 properly filled and authentic questionnaires were used for analysing
the data. Hence, 100 positive respondent customers are taken as the sample size
for data analysis.
Sample
unit: Customers
of Fast Food Joints
Sampling
technique: Judgmental
& Convenience sampling
Sampling
size: 100 Questionnaires of 23 Questions each
Domain
of study: DELHI
/National Capital Region
Statistical tools: Percentage analysis, Chi-square test,
Rank function, Mean and Standard Deviation, Tables, Bar graphs and Pie charts.
3. DATA
ANALYSIS & INTERPRETATION
Section 1: Demographic Profile of
Respondents
Variables |
Group Variables |
Frequency |
Percentage (%) |
Age |
Below 20 years |
8 |
8 |
21-30 years |
60 |
60 |
|
31- 40 years |
28 |
28 |
|
41 & above |
4 |
4 |
|
Gender |
Male |
78 |
78 |
Female |
22 |
22 |
|
Occupation |
Business |
28 |
28 |
Service |
64 |
64 |
|
Student |
6 |
6 |
|
Homemaker |
2 |
2 |
|
Income |
Less than 20, 000 INR |
18 |
18 |
20,000-40,000 INR |
50 |
50 |
|
41,000-60,000 INR |
8 |
8 |
|
More than 60,000 INR |
24 |
24 |
|
Education |
Under graduate |
4 |
4 |
Graduate |
24 |
24 |
|
Post graduate |
66 |
66 |
|
Above |
6 |
6 |
|
Dietary preference |
Veg |
36 |
36 |
Non-veg |
16 |
16 |
|
Both |
48 |
48 |
Source: Author’s own compilation
from primary data
Statistical analysis helps to gauge
that 50 % of the people who have 20,000-40,000 income visit the fast food
joints i.e. in a majority basis.24% of the people who have more than 60,000 of
income visit the stores, 18 % of the people visit the stores who have less than
20,000 of income and only 8 % of people used to visit the stores having 41000
to 60000 of income.
Table clearly depicts that majority
of the people (60%) who visit fast food joints belong to age bracket of 21-35
years. Statistics clearly indicates that people belonging to age bracket of
below 20 years (8%) and more than 50 years (8%), rarely visit fast food joint.
majority number of people which visits the fast food joints are Males having a
score of 78% and rest 22 % are the females. Majority of customers (64%) of fast
food joints are having Job as their primary occupation, whereas 2% and 6 %
customers are homemakers and students respectively. 28% customers of fast food
joints run their own business.
Thus, we can interpret that people
doing job are fonder of visiting fast food joints. If we look at the
educational profile of the respondents, we can easily interpret that majority
of the respondents i.e. 66% who visit the fast food joints like fast food
joints are post graduates. 24 % customers of fast food joints are simply
graduates whereas percentage of undergraduate customers is very low i.e. 4%
only.
Dietary preference is one of the
important Demographic criteria considered for analyzing the behavior of consumers
towards fast food joints. Above drawn chart interprets that majority of the
people (48%) visiting fast food joints prefer both vegetarian as well as
non-vegetarian food items, as compared to this, only 16 % of the people are
pure non-vegetarians.
Section 2: Analysis of Respondents’ Responses - Frequency
of visiting fast food joints?
Attributes |
Response in
percentage (%) |
|
Daily |
10% |
|
Weekly |
60% |
|
Monthly |
18% |
|
On special occasions/festivals |
12% |
|
Total |
100% |
|
Source: authors own
compilation from primary data
The above table shows that the
majority (60%) of respondents are visiting fast food joints weekly, 18% of
total respondents are visiting fast food joints monthly,12% of total
respondents are visiting fast food joints on special occasions/festivals and
only 10% of total respondents are visiting fast food joints on daily basis.
i.
Enjoy
visiting and spending time at fast food joints with whom.
Attributes |
Response in
percentage (%) |
Friends |
40% |
Family |
20% |
Relatives |
20% |
Alone |
6% |
Colleague |
14% |
Total |
100% |
Source: authors own
compilation from primary data
On the basis of the response and
related analysis shows in above table the majority of respondents (40%)
confirmed that they visit fast food joints with their friends as compared to
this only 20% of total respondents visit fast food joints with family and
relatives,14% of total respondents visit fast food joints with their colleagues
and only 6% of total respondents visit fast food joints alone. So, it is evident that most of the time,
people prefer to visit fast food joints
with their friends probably considering it as an opportunity to hang out with
them.
ii.
Amount
of money spent per visit to a fast food joint per head?
Attributes |
Response in
percentage (%) |
INR 200-500 |
22% |
INR 500-1000 |
42% |
Above |
36% |
Total |
100% |
Source: authors own
compilation from primary data
The statistical analysis of the
above data reveals that the majority of respondents (42%) spend between INR 500
and Rs1000, 36 % of total respondents are spending above INR 1000 and only 22%
of total respondents are spending amount between INR 200 and INR 500.
iii.
Preferable
time to visit a fast food joint?
Attributes |
Response in
percentage (%) |
Morning |
0% |
Afternoon |
46% |
Evening |
50% |
Late night |
4% |
Total |
100% |
Source: authors own
compilation from primary data
The above table shows that the
majority of respondents with 50% prefer to visit fast food joints in the
evening.46% of total respondents prefer to visit fast food joints in afternoon
and only 4% of total respondents prefer to visit fast food joints in late
night. None of the respondents prefer to visit fast food joints in morning.
iv.
How do customers get to know about different fast
food joints?
Attributes |
Response in percentage (%) |
Word of
mouth |
20% |
Advertisements |
0% |
Attracted
by food joints |
24% |
Visible
outlets |
56% |
Total |
100% |
Source: authors own
compilation from primary data
The above data shows that the
majority of respondents have come to know about fast food joints owing to its
visible outlets, 24% of total respondents know variety of fast food joints due
to their attraction towards food joints, 20% of total respondents have come to
know owing to word of mouth. No respondent has given credit to advertisement
for his knowledge about fast food joints.
v.
Preference
for vegetarian and non-vegetarian preparations served at fast food joints.
Attributes |
Response in percentage (%) |
Veg |
38% |
Non-veg |
18% |
Both |
44% |
Total |
100% |
Source: authors own
compilation from primary data
As per the analysis of the above
table the majority of respondents with 44%like both veg and non-veg
preparations of food, 38% of total respondents like preparation of veg foodandonly18%
of total respondents like preparation of non-veg food.
vi.
Reasons
for patronizing a particular fast food joint.
Attributes |
Response in
percentage (%) |
Quality |
36% |
Location |
50% |
Price |
6% |
Services |
8% |
Any other |
0% |
Total |
100% |
Source: authors own
compilation from primary data
As per the analysis of above table,
the majority of respondents with 50%patronize a fast food joint because of its
location, 36% of respondents due to its quality 8% for services and only 6%
respondents for price. No other reason to patronize fast food joint was made
evident by the respondents.
vii.
According
to customers which is the most effective promotional activity followed by fast
food joints in general to attract the customers?
Attributes |
Response in
percentage (%) |
Discounts |
10% |
Home delivery |
42% |
Combo offers |
32% |
Any other |
16% |
Total |
100% |
Source: authors own
compilation from primary data
The above table shows that the
majority of customers with 42% get attracted to fast food joints because of
their home delivery promotional activity, 32 % of respondents get attracted by
the combo offers, 16 % get attracted by some other medium and 10 % of the
customers are attracted by the discounts they offer.
viii.
How
do you perceive overall quality of services provided by fast food joints to its
customer?
Attributes |
Response in percentage (%) |
Excellent |
14%
|
Very
good |
22%
|
Good |
42%
|
Average |
16%
|
Poor |
6%
|
Total |
100%
|
Source: authors own
compilation from primary data
As per the above data, the majority
of customers i.e. 42 % perceive the quality of food provided by fast food
joints as good, 22 % rate it as very good, 16% rate it as average, 14 % rate it
as excellent and only 6 % rate it as poor.
ix.
Does
a customer believe in recommending his/her favorite fast food joint to others?
Attributes |
Response in percentage (%) |
Yes |
70%
|
No |
30%
|
Total |
100%
|
Source: authors own
compilation from primary data
The above table reveals that
majority of customers i.e. 70 % are positive about recommending to others but
the rest 30 % of customers are not in the favor of recommending to others.
Section 3: Ranking Analysis - Ranking the highest as
least and lowest as a most important factor as per the respondents’ view.
No. of Attributes |
Attributes |
Sum |
Range |
Ranking (highest as least and lowest as a
most Important factor) |
|
Scores |
Min |
max |
Rank on the basis of sum of scores |
||
1 |
Taste of Food |
120 |
1 |
8 |
2 |
2 |
variety in menu |
111 |
1 |
8 |
1 |
3 |
food quality |
181 |
1 |
11 |
3 |
4 |
Friendly, polite and Helpful staff |
376 |
1 |
12 |
7 |
5 |
Efficient service |
309 |
3 |
12 |
6 |
6 |
Sympathetic handling of complaints |
525 |
2 |
12 |
12 |
7 |
Décor |
261 |
1 |
12 |
4 |
8 |
Staff appearance |
414 |
2 |
12 |
9 |
9 |
General Excitement a place generates |
443 |
2 |
12 |
10 |
10 |
Location |
269 |
1 |
11 |
5 |
11 |
Seating capacity |
386 |
3 |
12 |
8 |
12 |
Waiting time for the order |
503 |
3 |
12 |
11 |
Source: authors own
compilation from primary data
Over all Ranking (Outcome of statistical analysis):
Attributes |
Ranking |
Variety in menu |
1 |
Taste of Food |
2 |
food quality |
3 |
Décor |
4 |
Location |
5 |
Efficient service |
6 |
Friendly, Polite and Helpful staff |
7 |
Seating capacity |
8 |
Staff appearance |
9 |
General Excitement a place generates |
10 |
Waiting time for the order |
11 |
Sympathetic handling of complaints |
12 |
Source: authors own
compilation from primary data
As per the given data and its
interpretation, variety in menu is evident to be the most important attribute
for the customers. It is followed by Taste of Food, food quality, décor,
location, efficient services, Friendly, Polite and Helpful staff, seating
capacity, staff appearance, General Excitement a place generates, waiting time
for the order and the least important attribute for the respondents is
Sympathetic handling of complaints.
Section 4: Analysis of the ‘Most Influencing
Parameters’ - Analysis of the most Influencing parameters on the basis of Mean
and Standard Deviation (SD)
S.No. |
Parameters |
Mean |
Standard deviation |
1 |
Taste of the food |
3.66 |
0.87 |
2 |
Variety in menu |
4.2 |
0.85 |
3 |
Food quality |
3.62 |
0.83 |
4 |
Friendly, polite and helpful staff |
2.76 |
1.06 |
5 |
Efficient service |
3.2 |
1.06 |
6 |
Sympathetic handling of complaints |
1.88 |
1.09 |
7 |
Décor |
3.7 |
0.83 |
8 |
Staff appearance |
2.68 |
1.07 |
9 |
General excitement a place generates |
2.88 |
1.06 |
10 |
Seating capacity |
3.5 |
0.86 |
11 |
Waiting time for the order |
2.46 |
0.73 |
Source: authors own
compilation from primary data
Fast food joints are already having
a good following with customers in terms of Taste of the food, Variety in menu,
Food quality, Décor, Seating capacity and Waiting time for the order Nirula’s
has to work on improving Friendliness, politeness and helpfulness in staff,
efficient service, Sympathetic handling of complaints, Staff appearance and
General excitement a place generates.
Section 5: Hypothesis Testing
Frequency of visiting Fast food joints
Ho: Frequency of
visiting fast food joints is independent of age of respondents
H1: Frequency of
visiting fast food joints is dependent of age of respondents
With whom visiting Fast food joints
Ho: There is no
significant relationship between age of respondents and with whom customers
visit fast food joints.
H1: There is
significant relationship between age of respondents and with whom customers
visit fast food joints
Amount spent per visit
Ho : age of
respondents does not leave considerable impact on amount spent per visit.
H1: age of
respondents leaves considerable impact on amount spent per visit.
Preferable time to visit the fast food joints
Ho : Preferable time
to visit the fast food joints does not depend on the age of the respondents
H1 : Preferable time
to visit the fast food joints depends on the age of the respondents
How came to know about fast food joints
Ho: Awareness about
fast food joints is independent of age of respondents
H1 : Awareness about
fast food joints is dependent of age of respondents
Preparations of food
Ho: age of
respondents does not leave considerable impact on types of preparations served
at fast food joints.
H1: age of
respondents leaves considerable impact on types of preparations served at fast
food joints.
Reasons for patronizing a particular fast food joint
Ho: There is no
significant relationship between age of respondents and reasons of patronizing a
particular fast food joint.
H1: There is
significant relationship between age of respondents and reasons of patronizing a
particular fast food joint.
Effective Promotional Activity to attract customers
Ho: Effective
Promotional Activity to attract customers is independent of age of respondents
H1: Effective
Promotional Activity to attract customers is dependent of age of respondents
Perception of overall quality provided by fast food joints
Ho: age of
respondents does not leave considerable impact on overall quality of services
provided by fast food joints.
H1: age of
respondents leaves considerable impact on overall quality of services provided
by fast food joints.
Like to recommend to other
Ho: There is no
significant relationship between age of respondents and recommending their
favorite fast food joint to others.
H1: There is
significant relationship between age of respondents and recommending their
favorite fast food joint to others.
Demographic
variable |
Question
Variable |
Chi-square
value |
P-value of
chi-square test |
Hypothesis
testing |
Hypothesis
accepted/rejected |
Age |
Frequency of
visiting Fast food joints |
10.16 |
0.3372 |
α<p |
Null hypothesis Ho is
accepted |
With whom
visiting Fast food joints |
17.82 |
0.1211 |
α<p |
Null hypothesis Ho is
accepted |
|
Amount spent
per visit |
8.27 |
0.2187 |
α<p |
Null hypothesis Ho is
accepted |
|
Preferable
time to visit the fast food joints |
2.74 |
0.8398 |
α<p |
Null hypothesis Ho is
accepted |
|
How came to
know about fast food joints |
5.25 |
0.5113 |
α<p |
Null hypothesis Ho is
accepted |
|
Preparations
of food |
1.55 |
0.9558 |
α<p |
Null hypothesis Ho is
accepted |
|
Reasons for
patronizing a particular fast food joint |
12.91 |
0.1665 |
α<p |
Null hypothesis Ho is
accepted |
|
Effective
Promotional Activity to attract customers |
8.02 |
0.5317 |
α<p |
Null hypothesis Ho is
accepted |
|
Perception of
overall quality provided by fast food joints |
42.13 |
0.0000 |
α>p |
Alternate hypothesis H1
is accepted |
|
Like to
recommend to other |
15.39 |
0.0015 |
α>p |
Alternate hypothesis H1
is accepted |
|
Gender |
Frequency of
visiting Fast food joints |
0.85 |
0.8363 |
α<p |
Null hypothesis Ho is
accepted |
With whom visiting
Fast food joints |
2.07 |
0.7218 |
α<p |
Null hypothesis Ho is
accepted |
|
Amount spent
per visit |
4.67 |
0.0966 |
α<p |
Null hypothesis Ho is
accepted |
|
Preferable
time to visit the fast food joints |
1.37 |
0.5033 |
α<p |
Null hypothesis Ho is
accepted |
|
How came to know
about fast food joints |
16.81 |
0.0002 |
α>p |
Alternate hypothesis H1
is accepted |
|
Preparations
of food |
4.57 |
0.1015 |
α<p |
Null hypothesis Ho is
accepted |
|
Reasons for
patronizing a particular fast food joint |
0.30 |
0.9592 |
α<p |
Null hypothesis Ho is
accepted |
|
Effective
Promotional Activity to attract customers |
0.19 |
0.9788 |
α<p |
Null hypothesis Ho is
accepted |
|
Perception of
overall quality provided by fast food joints |
4.88 |
0.2997 |
α<p |
Null hypothesis Ho is
accepted |
|
Like to
recommend to other |
0.41 |
0.5196 |
α<p |
Null hypothesis Ho is
accepted |
|
Occupation |
Frequency of
visiting Fast food joints |
11.75 |
0.2276 |
α<p |
Null hypothesis Ho is
accepted |
With whom
visiting Fast food joints |
17.91 |
0.1182 |
α<p |
Null hypothesis Ho is
accepted |
|
Amount spent
per visit |
15.07 |
0.0197 |
α>p |
Alternate hypothesis H1
is accepted |
|
Preferable
time to visit the fast food joints |
1.99 |
0.9201 |
α<p |
Null hypothesis Ho is
accepted |
|
How came to
know about fast food joints |
5.44 |
0.4887 |
α<p |
Null hypothesis Ho is
accepted |
|
Preparations
of food |
5.14 |
0.5257 |
α<p |
Null hypothesis Ho is
accepted |
|
Reasons for
patronizing a particular fast food joint |
22.50 |
0.0074 |
α>p |
Alternate hypothesis H1
is accepted |
|
Effective
Promotional Activity to attract customers |
14.26 |
0.1131 |
α<p |
Null hypothesis Ho is accepted |
|
Perception of
overall quality provided by fast food joints |
10.66 |
0.5575 |
α<p |
Null hypothesis Ho is
accepted |
|
Like to
recommend to other |
3.73 |
0.2917 |
α<p |
Null hypothesis Ho is
accepted |
|
Income |
Frequency of
visiting Fast food joints |
11.07 |
0.2706 |
α<p |
Null hypothesis Ho is
accepted |
With whom
visiting Fast food joints |
34.30 |
0.0006 |
α>p |
Alternate hypothesis H1
is accepted |
|
Amount spent
per visit |
17.65 |
0.0072 |
α>p |
Alternate hypothesis H1
is accepted |
|
Preferable
time to visit the fast food joints |
1.24 |
0.9744 |
α<p |
Null hypothesis Ho is
accepted |
|
How came to
know about fast food joints |
6.80 |
0.3389 |
α<p |
Null hypothesis Ho is
accepted |
|
Preparations
of food |
7.93 |
0.2428 |
α<p |
Null hypothesis Ho is
accepted |
|
Reasons for
patronizing a particular fast food joint |
15.12 |
0.0875 |
α<p |
Null hypothesis Ho is
accepted |
|
Effective
Promotional Activity to attract customers |
16.50 |
0.0571 |
α<p |
Null hypothesis Ho is
accepted |
|
Perception of
overall quality provided by fast food joints |
24.37 |
0.0181 |
α>p |
Alternate hypothesis H1
is accepted |
|
Like to
recommend to other |
6.53 |
0.0881 |
α<p |
Null hypothesis Ho is
accepted |
|
Education |
Frequency of
visiting Fast food joints |
7.25 |
0.6105 |
α<p |
Null hypothesis Ho is
accepted |
With whom
visiting Fast food joints |
21.56 |
0.0427 |
α>p |
Alternate hypothesis H1
is accepted |
|
Amount spent
per visit |
7.41 |
0.2839 |
α<p |
Null hypothesis Ho is
accepted |
|
Preferable
time to visit the fast food joints |
9.21 |
0.1619 |
α<p |
Null hypothesis Ho is
accepted |
|
How came to
know about fast food joints |
3.84 |
0.6979 |
α<p |
Null hypothesis Ho is
accepted |
|
Preparations
of food |
4.98 |
0.5460 |
α<p |
Null hypothesis Ho is
accepted |
|
Reasons for
patronizing a particular fast food joint |
8.68 |
0.4671 |
α<p |
Null hypothesis Ho is
accepted |
|
Effective
Promotional Activity to attract customers |
2.88 |
0.9687 |
α<p |
Null hypothesis Ho is
accepted |
|
Perception of
overall quality provided by fast food joints |
10.92 |
0.5352 |
α<p |
Null hypothesis Ho is
accepted |
|
Like to
recommend to other |
2.84 |
0.4154 |
α<p |
Null hypothesis Ho is
accepted |
|
Dietary
preference |
Frequency of
visiting Fast food joints |
12.96 |
0.0436 |
α>p |
Alternate hypothesis H1
is accepted |
With whom
visiting Fast food joints |
21.81 |
0.0053 |
α>p |
Alternate hypothesis H1
is accepted |
|
Amount spent
per visit |
4.42 |
0.3518 |
α<p |
Null hypothesis Ho is
accepted |
|
Preferable
time to visit the fast food joints |
4.75 |
0.3135 |
α<p |
Null hypothesis Ho is
accepted |
|
How came to
know about fast food joints |
3.32 |
0.5055 |
α<p |
Null hypothesis Ho is
accepted |
|
Preparations
of food |
78.48 |
0.0000 |
α>p |
Alternate hypothesis H1
is accepted |
|
Reasons for
patronizing a particular fast food joint |
7.10 |
0.3110 |
α<p |
Null hypothesis Ho is
accepted |
|
Effective
Promotional Activity to attract customers |
7.41 |
0.2844 |
α<p |
Null hypothesis Ho is
accepted |
|
Perception of
overall quality provided by fast food joints |
11.77 |
0.1614 |
α<p |
Null hypothesis Ho is
accepted |
|
Like to
recommend to other |
0.34 |
0.8399 |
α<p |
Null hypothesis Ho is
accepted |
Source: authors own
compilation from primary data
4. MAJOR
FINDINGS
The majority of respondents (40%)
confirmed that they visit fast food joints with their friends. Most of the
respondents (42%)spend between INR 500 and INR 1000 per head in each visit. The
majority of respondents with 50% prefer to visit fast food joints in the
evening. The majority of respondents (56%) have come to know about fast food
joints owing to its visible outlets.
Most of the respondents (44%) like
both vegetarian and non-vegetarian preparations of food. The greater part of
respondents with 50% patronize fast food joints because of its location. The
majority of customers with 42% get attracted to fast food joints because of
their home delivery promotional activity. Most of the customers i.e. 42 %
perceive the quality of food provided by fast food joints as good.
The greater part of customers i.e.
70 % are positive about recommending fast food joints they visit to
others. Variety in menu is evident to be
the most important attribute for the customers and the least important
attribute for the respondents is Sympathetic handling of complaints. Fast food
joints have to work on improving friendliness, politeness and helpfulness in
staff, efficient service, sympathetic handling of complaints, staff appearance
and general excitement a place generates.
5. CONCLUSION
In today's world, Fast food is
something that almost everyone, right from kids to the oldies, loves, and talks
about fast food. Fast food is one of the
world’s fastest growing food types. At the backdrop of modernization,
globalization and privatization has brought in innumerable MNC and Desi brands
to the Indian market.
Fast food joints are enjoying
enormous popularity among people of all age groups. As the disposable income,
has tremendously increased, this trend has meteorically raised. Fast food
joints commit to provide its customers with good food and services. The
competition in the market is quite stiff and to shine above the competition,
fast food joints have to extensively work upon some of its offerings in terms
of overall delivery. Variety in menu, taste and quality of food, Decor, seating
capacity and waiting time for the order are forte of fast food joints.
Fast food joints have to still prove
themselves in terms of more efficient services and better handling of
complaints. The staff’s appearance and their friendly and polite approach are
to be given due importance as it is being rated one of its, bleak aspects.
Further, proper promotion and
advertising should be meticulously taken care of so as to target a wider no of
prospects. Price competitiveness should also be taken into account as a no of
competitors are coming out with low priced offerings.
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