Food companies desire the logo but obtainable processed foods may not meet its strict supplies Laurance and Mitchell, As a result, manufacturers and retailers have begun to open their own logos and claims.
Customer value plays a vital role at the heart of all advertising activity as it refers to things of worth that have been created for a specific marketplace Holbrook, Customer value is a highly multifaceted concept in that it integrates a collection of possible product excellence attributes, process-related attributes and less touchable sources of value, in particular, brand image Schroder, For fast foods, manufactured goods attributes may be further broken down into dietary, sensory and clean quality.
The nature of food production and processing is becoming more significant to customers Baltas, ; Bredahl et al. Ethical manufacture in terms of animal and human welfare, and environmental guard are key issues here Wier and Calverley, ;Harper and Makatouni, ; Grankvist et al. Holbrook's typology serves as a mapping tool for generic customer value and is highly applicable to the food background. For example, it highlights both functional customer value which might be interpreted as food security and dietary make-up and ethics.
However, business image is only partially built on touchable product and process attributes. Equally significant is the manner in which company's converse with stakeholders through their marketing strategies, including CSR initiatives.
CSR may be defined as an organization's rank and activities with admiration to perceived communal obligations Brown and Dacin, Through the Business Excellence Model British Quality Foundation, , the crash of an association on society has been highlighted alongside the require for worker and customer satisfaction.
Clearly, the better the perceived power and influence of an association the more likely it is to draw the attentions of campaign groups.
The activities of influential organizations will be improved understood by the community and have an effect on more customers than those of smaller competitors. When campaigners single out such organizations for inspection or even assault, they can wait for more media interest for the issues they want to make public.
It is therefore not surprising that worldwide players in the fast-food sector, such as McDonald's, be inclined to find themselves in the dismissal line of groups concerned with the a variety of aspects of food quality.
While there are variations in the specific styles adopted by the fast food operators a number of general defining characteristics can be identified. Fast food outlets offer a simple and fairly restricted menu within a carefully controlled operating system.
A variety of burgers in a bun, fried chicken, French fries and to a lesser extent pizza and baked potatoes provide the main course. Typical desserts are ice cream and fruit pies and the drinks range includes milk shakes, fizzy drinks and tea and coffee. Customers queue up to be served at a counter, the aim being to serve a large number of people with the minimum of waiting time and most operators look to serve customers within three minutes of their entry onto the premises.
The food is sold in disposable packaging without cutlery. Some operators offer facilities for customers to consume their food on the premises while others tend to cater more for the take-away trade. The fast food revolution essentially had its origins in the US in the mid 's and this style of catering has continued to grow there and to spread to most of the rest of the world in the decades since then.
Schlosser has suggested that within the US the impact of this revolution has been seen to be particularly pervasive. He argues, for example, that during a relatively brief period of time the fast food industry has helped to transform not only the American diet but also our landscapes, economy, workforce and popular culture. More generally fast food can be seen as a powerful symbol of globalization and of post-modern society and few countries of the world seem immune to its apparent attractions.
McDonalds, for example, claim to serve 45 million customers every day in 30, restaurants in countries around the world. Branding has been a central and vital element in the introduction, growth and successful development of fast food in the UK.
According to Mintel branding is seen to give consumer reassurance and confidence in terms of the quality of the food, the service, menu pricing and overall standards, which effectively create a sense of 'knowing what you are going to get'. Thus brands are seen to take the guesswork and uncertainty out of choosing somewhere to eat, so long as they are operated within strict guidelines to ensure that the brand offer is identical.
This uniformity is seen to bring benefits not only to the customer but also to the operating company through economies of scale. Bulk buying and marketing strategies are identified as two major areas where significant cost savings can be made. Thus Mintel argue that the "success of branded operators is largely owing to their aptitude to provide formula food, that is, utilizing relatively contemptible ingredients, being reliable in their quality and with quick service".
In a similar vein the large branded chains are seen to be able to carry out national advertising campaigns and hence to reach a nationwide audience. Customer waiting time for service typically represents the first direct interaction between customers and most service delivery processes, so the importance of properly managing waiting times is of significant interest to most service operations.
In recent years, service managers have made efforts to reduce customer waiting times and, and in some cases, totally to eliminate waits by improving processes or by adopting faster service technologies. Customer reactions to waiting in line, whether they are good or bad, can color the customer's perception of the service delivery process. For example, customers in a restaurant who are unhappy about their long wait for seating may complain about the quality of the food, even if the food is totally acceptable.
It is therefore critical, in situations where waiting is inevitable, that service managers attempt to provide a high level of satisfaction with the waiting portion of the service experience. Previous research on customer satisfaction with respect to waiting in service operations has tended to parallel the broader research issue of customer satisfaction in services. Customer loyalty, as demonstrated in the form of repeat business, has been shown to be a key determinant of the success of many service companies Reichheld and Sasser, While a high level of customer satisfaction does not necessarily guarantee customer loyalty, dissatisfaction will cause customers to take their business elsewhere.
In other words, customers who are dissatisfied with the level of service they have received will be less likely to return in the future, or if they do return, they will most likely do so with less frequency than they did in the past. Conversely, customers who are extremely satisfied with their service experience with a given firm will most likely continue to return to that firm at the same frequency or even more frequently.
The customer's experience with the service firm is also likely to be multiplied through interactions with other prospective customers via word of mouth: One line of research has attempted to define satisfaction in terms of disconfirmation, that is, the difference between customer perceptions and expectations Anderson, ; Parasuraman et al.
Early work in this area proposed that there are two dimensions to the expectation construct: The disconfirmation model, however, has been questioned by some researchers who have used another approach to measuring customer satisfaction. Goode and Moutinho , for example, state, "The disconfirmation of prospect model has been more and more criticized in recent years and, as a consequence, standards other than prospect have been suggested" p.
Teas in particular, argue that the multiple definitions of expectations and the resulting difficulties with measurement operationalization undermine the value of models incorporating expectations. An alternative approach that appears to be gaining acceptance is that satisfaction depends primarily on the customer's perception of service performance rather than on the disconfirmation between perception and expectation Cronin and Taylor, ; Teas, This relationship is shown in equation 2.
Perception, of course, means the customer's perception of actual performance, implying that perception and "objective" actual performance are not one and the same. Social research is an invention of research methodology by early scientists, in practice for nearly years from the past. Greek authors such as Socrates have investigated the causes of social problems in the pat and produced a very impressive record of the social lives and the society, through social research.
According to him social research is a means by which one can explain the social life existing in the world, critically evaluate it and empower the people to overthrow it. QPR is a set of methods and techniques that let IS researchers to reply research questions about the interaction of humans and computers.
In this approach to research there are basically 2 corner stones. Emphasis on quantitative data is the first corner stone. Emphasis on positive philosophy is the second corner stone. With respect to the 1st cornerstone, these methods and techniques tend to specialize in quantities in the sense that the numbers come to stand for values and levels of theoretical constructs and concepts and the understanding of the numbers is viewed as strong scientific proof of how a phenomenon works.
The attendance of these quantities is so predominant in QPR that arithmetical packages and tools are an essential element in the toolkit of the researcher. Sources of information are of less importance in identifying a move toward as being QPR than the fact that empirically derived numbers lie at the core of the scientific evidence assembled. A QPR researcher may use archival information or gather it through structured interviews. In both cases, the researcher is motivated by the numerical outputs and how to derive meaning from them.
This emphasis on numerical analysis is also key to the second cornerstone, positivism, which defines a scientific theory as one that can be falsified. It seeks to give details the stability of performance from the individual's viewpoint. They are most interested in understanding the subjectively shaped world "as it is" in terms of ongoing processes. It emphasizes the religious nature of the world. Philosophers like Kant formed it's basis, and Weber, Husserl, and Schutz furthered the ideology.
This paradigm hasn't generated much organizational theory. The early form of research originated in the natural sciences such as biology, chemistry, physics, geology, etc. Such comments and measurements can be made objectively and repeated by other researchers.
This process is referred to as "quantitative research". They are subject to fixed pattern, which are empirically observable. Much later, along came the researchers working in the social sciences such as psychology, sociology, anthropology, etc. They were interested in studying human behavior and the social world inhabited by human beings Morgan, They found increasing difficulty in trying to explain human behavior in simply measurable terms.
Measurements tell us how often or how many people behave in a certain way but they do not adequately answer the question "why?. The above mentioned characteristics are accepted and mentioned by famous authors including Berger et al. Crabtree and Miller, ; Lamnek, ; Patton, ; Vlahos, The above research will involve both qualitative and quantitative research methodology.
It is qualitative in terms that its purpose is to understand the social life. It is idiographic as it describes the reality as it is. It is open and flexible in all respects. The research process is influenced by the respondants. The researcher is close to the respondents and uses a dynamic approach. It is holistic as it studies the whole units. The research places priorities in studying the similarities. It employs a low level of measurement. The research is quantitative in terms that it aims at theory testing.
The research is etiological as it is interested in why things happen. The research process involves a closed approach as it is strictly planned. The research employs a random sampling. The research also places priority in studying the differences. The research employs a reductive data analysis. The research employs a deductive approach. Hence, the research involves both qualitative and quantitative research methodology for the good of the research.
Advantages - suitable, relatively inexpensive, saves time, less interviewer, investigator bias than personal interview.
Advantages - cost effective for large areas, promotes accurate answers, minimizes interviewer bias,. Disadvantages - low response rates, unanswered questions, incorrect answers, lengthy transit time. Secondary data isdata that is neither composed directly by the user nor specifically for the consumer, often under conditions not known to the consumer. Examples include Government reports.
Secondary information has already been collected for some other purposes. It may be obtainable from internal sources, or may have been collected and published by another association.
Secondary data is cheaper and more rapidly available than primary data, but likely to need processing before it is helpful. For example, secondary sources of marketplace penetration of an association are data collected already for accountancy and operational purposes.
Total industry sales may already been collected and published by some outside body such as the government, trade association as secondary source of information. A corporation who wants to know the users of its products may have following secondary sources:.
The research involves both primary and secondary data collection techniques. Secondary data collection is done regarding McDonalds, their history, operations store locations, profit etc. In order to show that McDonalds is highly successful in their operations even under a credit crunch situation, financial data of McDonalds will be collected both in the pre credit crunch situation and under credit crunch situation, which will be done by getting the data from company's house.
This will include their most recent financial statement and the previous year's financial statement. These two statements will be compared to show the performance of McDonalds under the credit crunch situation. Primary data collection will include distribution of questionnaires to the customers regarding their view on McDonalds and its offerings. This will be done by requesting the customers who come out of the outlet to fill up the questionnaires for the purpose of the research. Nearly 4 major outlets will be covered to collect the questionnaires including north, east, south and central London.
Based on these data analysis will be done to know the customer perception on McDonalds. Mostly data collection will be done where in I will be requesting the customers to answer these simple questions based on the questionnaire design, rather than requesting them to fill the questionnaire by themselves and give back. This will help me to get a better response for the purpose of my research.
I would like to collect at least responses from the 4 outlets selected and there is no restriction to the maximum number of responses to be collected. Since the data collection will involve both numerical as well as qualitative data, my data analysis will engage both qualitative as well as quantitative data analysis. The qualitative data collected will be coded into themes and interpreted in order to get possible explanations of people's perceptions regarding McDonalds and its offerings.
The quantitative data collected in the form of variables will be organized and coded in a spread sheet from which possible explanations will be derived using logical thinking. All the data collected will be coded in excel spreadsheet with respect to age and ethnicity and gender, and these coded data will then be used to draw pie graphs from which possible explanation will be derived regarding consumer perception on McDonalds.
Data collection for the above research has been done by distributing questionnaires to McDonalds customers in a particular out let in central London. Overall responses has been collected. The below table shows the respondents report. From the below table it is very much clear that each and every individual has been grouped based on their age and gender. There were more female respondents than the male respondents as the number of female respondents was found to be more in the store.
While collecting the data it was made sure that no partiality was given to particular age band and all the 5 age bands are concentrated equally as far as possible as part of equal opportunity approach and towards satisfying my criteria in order to fetch better results for the purpose of my research. To start with in the order of my questionnaires when asked how often do they visit McDonalds in a week, which I have grouped based on their age and gender are as follows:.
Hence is clear that burger king is one big competitor to McDonalds, where they both share a similar target audience. Therefore nearly half of the people will think of Burger king in the absence of McDonalds.
Respondents who chose wimpy, in that most of them are in their mid 30s or 40s. All the respondents who chose KFC are in their 30s and all the people who chose others are in their 40s and 50s. From the above statistics its is clear that mostly young audience prefer Burger king as their other alternative and hence are more burger liking people and hence McDonalds should target them and make sure that they keep visiting McDonalds.
When asked about the reason for choosing McDonalds as their favorite food chain, here I am again going to discuss with respect to the respondents age and gender and the findings are as follows:.
From the above data analysis it is clear that majority of McDonalds customers choose it as their favorite food chain because of its good taste and cheap offerings. It is also evident that the older generation cares more about the quality of the product and chose it as their favorite food chain because of its quality.
However, looking at the overall picture it clear that quality is associated with the brand and brand savvy people doesn't have to care about the quality once they associate themselves with that particular brand. And here regular customers of McDonalds do care more about the taste and expense of the product rather than its quality as they are already assured of it.
Comparing the above 2 charts I can clearly say that still good taste is the priority for both the genders. However, good quality of product seems to be major criteria for the male customers than the female customers. Cost of the product is a major criterion for the female customers than the male customers. Hence, McDonalds under the credit crunch situation should keep their cost of food down if they want to attract more customers towards their side or at least hold their existing customers.
Hence, majority of the family strength of the McDonald's customers are between 3 and 4 members as shown in the chart below. Now the amount of money the family as a whole spends in the restaurant is high contributing towards the profit of McDonalds. McDonals also advertises themselves as a family restaurant and each and every ember of the family will advocate the message about McDonald's popularity to their friends and colleagues and hence the brand is getting marketed through advocacy.
Next when asked to the customers regarding the increase or decrease of the family income in the last year as a result of credit crunch situation. However majority of the customers in this category has decreased their number of visit. Hence, McDonalds under the credit crunch situation should adjust their offerings in such a way that they reduce the expense of the food and keep attracting people from all financial backgrounds.
Hence, McDonalds has been very much successful over the years in satisfying majority of their customers and continue to do so under the credit crunch situation. Hence, McDonalds should keep in mind the above queries of their not so satisfied customers in order to make them visit their restaurant on a more frequent basis.
Nearly 8 out of 10 customers who said increase in the seating space were above 50 years of age and are almost the same people who chose wimpy as their other alternaive.
Therefore, McDonalds has been very much successful in attracting their customers with their brand image. With regards to customer perception on the effect of credit crunch situation in the number of visits made to McDonalds, I have divided them based on the perceptions of both male and female and the below charts show them.
Comparing the above two we can say that less than half of the respondents including both the genders accept that credit crunch has affected their number of visits to their favorite restaurant. This shows McDonald's popularity and its strong brand imag.
Irrespective of the gender and age of the customers many of them still keep visiting McDonalds as it is still perceived as the cheap and best food chain among its lovers. Though McDonalds target audience is people in the age group between 15 and 35 yrs of age, however people from other age groups also visit the restaurant as McDonalds market themselves as family restaurant where the target audience is accompanied by kids and older people.
Though McDonalds is considered as the cheap and best food chain yet it's not cheap in its offerings. Many customers visit McDonalds keeping in mind the quality of its food and the taste that is unique. The effect of credit crunch situation on McDonald's sales is very minimal as even McDonalds claim that many cash-strapped customers chose McDonalds to dine out under the credit crunch situation because of its comparative low cost of service.
Along with it even some of the cash rich individuals chose McDonalds for a quick lunch as they trust the brand. McDonalds has a very strong brand image and the effect of credit crunch has hardly put any impact on them in comparison to their competitors as people continue to visit McDonalds on a regular basis irrespective of any crisis.
From the above analysis it has been known that irrespective of their gender younger generation seems to be more brand savvy towards McDonalds and the older people would not actually mind going to other similar restaurants in case there is no option for McDonalds, hence I feel McDonalds should not waste any time in attracting them but target the younger generation instead.
As per the customer recommendations regarding improvement by McDonalds, majority of the respondents are towards increasing the seating capacity of many of its stores. Though most of the McDonalds in UK have a good seating capacity, however during busy timings customers find it difficult to find space inside the store and if there is no space some customers walk out of the store looking for something else as they want to sit and eat.
Hence, McDonalds should focus on that apart from their brand image. The above research has given me a very good insight on understanding the different stages involved in marketing strategy with respect to fast food industry and McDonalds in particular. I must say I was successful to a great extent in my attempt to understand the consumer psychology in the fast food industry and how does different company work on strategies to keep themselves ahead in the market. McDonalds is seen as a clear market leader in the fast food industry, despite different competitors giving tough competition over the years.
With the recent credit crunch effect many companies are facing a bad time with loss of business, however McDonalds is said to have found this credit situation to their favor. According to the company's chief operating officer in the UK many people are coming back to McDonalds for refuge as they think it is cheaper having food at McDonalds than having at home.
In this particular research I have done a primary research involving questionnaires that was distributed in one of the McDonalds outlet in central London. I had collected responses, where the customers were divided with respect to their age and gender. The data collection was done in two days for my own convenience and the collected responses were analyzed individually. The collected data was recorded in the form of a pie chart with respect to the age and gender division.
Based on these pie charts different statements were arrived at in the form of findings. These findings summarize the purpose of my research. Through this research I have learned that marketing is one of the most important areas for any business operating under any field and a tool that provides a division between the top companies and other mediocre companies. Nazlin Imran, "The role of visual cues in consumer perception and acceptance of a food product" Nutrition and food service, MCB university press, No.
Eds , Advances in Consumer Research, Vol. Economy, Culture and Geography", Arnold, London, Corporate associations and consumer product responses", Journal of Marketing, Vol. Effects of consumer mood on the attribution of waiting time and perceived quality of services", Proceedings of the Third International Research Seminar in Service Management, LaLonde, Moonkyu Lee and Francis M.
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Effect of tight economic condition on the food industry. What do people perceive about McDonalds even in the tight economic condition? McDonalds brand management 4. Marketing strategies adopted by McDonalds to attract people keep coming towards their shop.
Size Matters Size of McDonald's has three main advantages: Major direct competitors in the hamburger-based fast food industry include: Marketing at McDonalds McDonald's is one of the best known brands worldwide. Marketing communication methods, such as advertising and promotions, are used to create the colours, designs and images which give the brand its recognisable face. By identifying their target audience McDonalds Marketing department will determine the correct marketing mix.
Weakness McDonald's has been around for a long time. For a business to run successfully one needs to know all about the potential and existing consumers and have a good idea about the market place you operate in. To have all this data in place, a systematic market research is a must.
Market research is crucial for accomplishments, such as new product development and for delivering the insight needed to give confidence and direction for big marketing decisions. Sometimes for a company to develop its brand image and brand awareness it is important that companies engage with their consumers at cultural level too. With globalization, it is important that companies understand their cultural atmosphere in different environments and bring about changes in their business strategy, functioning and brand awareness to adapt to their cultural difference.
Accurate research is crucial in generating the right mix to win customer loyalty. McDonalds through their market research sensed the need to involve the local culture and not isolate a particular section of the society Iacobucci They identified the consumer needs and successfully absorbed itself in both societies in a way that it was no longer thought of as an American brand.
In Australia, television commercials successfully gave McDonalds an Australian make-over. Cultural restrictions on certain meat like Beef cow is considered sacred and is worshipped and pork Muslims do not eat pork along with the fact that majority of Indians were vegetarians, made it a challenge for McDonalds to introduce Cheeseburgers Beef to the public. McDonalds seemed to have done their research well and accepted the challenge by creating a wide range of socially acceptable products for the Indian public.
McDonalds in their research considered local demographics, income level and customer preferences which was key reason for it achieve success in a multi-cultural country. It is one of the most recognisable brand among all age groups because of its brand image. For a fast food industry to flourish especially in the present times when health and fitness awareness is at a rise, it is important to undergo changes that matches the changing consumer needs.
Of course, with company as big as McDonalds, they have various market research groups to provide them specific information to improve their brand positioning as per different geographical locations.
Marketing Research on McDonald's - Download as Powerpoint Presentation .ppt /.pptx), PDF File .pdf), Text File .txt) or view presentation slides online. Scribd .
This research also aims at understanding; whether the age and gender of the respondents will have any impact on the McDonalds marketing strategy that should . Marketing Research Report_mcdonalds - Free download as Word Doc .doc /.docx), PDF File .pdf), Text File .txt) or read online for free. Scribd is the world's largest social reading and publishing site.4/4(8).
Apr 18, · The success of McDonalds in these countries and as well as globally was possible due to systematic market research which positioned them as a leader in fast food industry. Reference: David Newberry , Marketing Undressed, First edn, vol. 1. After operating five years in Bolivia, McDonalds en bolivia closed its eight branches and left the country in Lack of marketing research: Mcdonald cl.