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Factor Affecting Consumer Preference in selecting a fast food retail chain” A report submitted to UKA TARSADIA UNIVERSITY in Partial Fulfilment of the Requirements for the Degree of Master of Business Administration in 040070102 Business Research (Fieldwork) By Group No. Enrolment No. Name of Students 11 201304100710 041 Trivedi Mitesh Jagdish 201304100710 048 Shinde Jainish Dinesh 201304100710 059 Babel Hardik Nemichand Guided by Mr. Sanjay Joshi Assistant Professor, SRIMCA

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Page 1: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

“Factor Affecting Consumer Preference in selecting a fast food retail chain”

A report submitted to

UKA TARSADIA UNIVERSITY

in Partial Fulfilment of the Requirements for the Degree of

Master of Business Administration

in

040070102 Business Research (Fieldwork)

By

Group No. Enrolment No. Name of Students

11

201304100710041 Trivedi Mitesh Jagdish

201304100710048 Shinde Jainish Dinesh

201304100710059 Babel Hardik Nemichand

Guided by

Mr. Sanjay Joshi

Assistant Professor, SRIMCA

Department of Management, Shrimad Rajchandra Institute of Management and Computer Application,

Gopal Vidyanagar, Bardoli, Surat.

December 2013

Page 2: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

CERTIFICATEThis is to certify that research work embodied in this report entitled “Factor Affecting

Consumer Preference in selecting a fast food retail chain” was carried out by

Mr.Trivedi Mitesh Jagdish (201304100710041), Mr.Shinde Jainish Dinesh

(201304100710048), Mr.Babel Hardik Nemichand (201304100710059) at Department

of Management, Shrimad Rajchandra Institute of Management and Computer

Application for the partial fulfilment of M.B.A degree to be awarded by UKA TARSADIA

UNIVERSITY. This research work has been carried out under my supervision and is to

my satisfaction.

Date:

Place:

Signature and name of Supervisor Signature and name of HOD

Signature and name of Principal

2

Page 3: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

DECLARATION

We hereby certify that we are the sole author of this research work and that neither

any part of this report nor the whole of the report has been submitted for a degree to

any other University or Institution.

We certify that, to the best of our knowledge, our report does not infringe upon

anyone’s copyright nor violate any proprietary rights and that any ideas, techniques,

quotations, or any other material from the work of other people included in our report,

published or otherwise, are fully acknowledged in accordance with the standard

referencing practices.

We declare that this is a true copy of our report, including any final revisions, as

approved by our report review committee.

Date:

Place: Signature and name of students

Verified Signature and name of Supervisor

3

Page 4: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

ACKNOWLEDGEMENT

As per laid down curriculum of the First year M.B.A., we are assigned to do a project

on Research subject. We are thankful to each & every person for providing us and

supplying adequate and useful information and their best support and guidance for

completion of our report. Through this acknowledgement, we express our sincere

gratitude towards all those people who have helped us in the preparation of this project

which has been a learning experience.

We would like to express our profound gratitude and sincere thanks to esteem taught

Director Dr. Prashant Joshi of MBA Department (SRIMCA), who allowed us to

conduct this study.

To start with, we personally would like to thanks our faculty guide Mr. Sanjay Joshi

for assisting us throughout the project period, guiding us and assisting at various stages

and thus sharing his valuable knowledge with us, to enhance our knowledge and

helping in preparing a project. We would also like to thanks all the faculty members,

who directly or indirectly help us to, successfully complete our project.

Lastly, we would like to thanks all of those who have furnish this project successfully

Mitesh Trivedi - 201304100710041

Jainish Shinde - 201304100710048

Hardik Babel - 201304100710059

4

Page 5: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

EXECUTIVE SUMMARY

This study has been conducted as a part of 1st semester MBA program.

The topic of the study is “Factor affecting consumer preference in selecting fast food outlet”

In order to conduct study 300 people were asked to fill the Questionnaire

Objective:

The objective of the study is to determine the Factor affecting consumer preference in selecting fast

food outlet and to know the most proffered outlet.

Research Design:

Descriptive research design is used based on Primary data.

Sampling plan:

Sample Size: 300

Sampling Method: Non-Probability (Convenience)

Sampling Unit: Consumer

Tools:

Statistical tools used for this study is Frequencies and Factor Analysis

Conclusion:

From this study, it can be Said that Service and Health, Quality, Price and Location are the four most

important factor affection consumer preference in selecting a fast food outlet.

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TABLE OF CONTENTS

List of Tables

6

Chapter No.

Particulars Page Nos.

1 Introduction 82 Literature Review 103 Objectives and Research Methodology 134 Data Interpretation and Analysis 155 Findings 296 Conclusion 307 Recommendations 318 References 32- ANNEXURES 33

Page 7: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

Table No Title of Table Page NoTable 1.1 Frequency Analysis of Age 15

Table 1.2 Frequency Analysis of Gender 16

Table 1.3 Frequency Analysis of Occupation 16

Table 1.4 Frequency Analysis of Monthly Income 17

Table 1.5 Frequency Analysis of visit to outlet 18

Table 1.6 Frequency Analysis of Frequency of visit 19

Table 1.7 Frequency Analysis of reason to eat fast food 20

Table 1.8 Frequency Analysis of Most preferred outlet 21

Table 1.9 Frequency Analysis of reason to select a outlet 22

Table 1.10 Ranking 23

Table 1.11 KMO and Bartlett’s Test 24

Table 1.12 Communalities 25

Table 1.13 Total Variance Explained 27

Table 1.14 Factor Matrix 28

INTRODUCTION OF TOPIC

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Definition:

Customer preference refers to how customers select goods and services in relation to

factors like taste, preference and individual choices. Factors such as the consumer's

income and price of the goods do not influence the customer's preferred products or

services.

Consumer preferences describe the reasons for the choices people make when selecting

products and services. Analyzing the factors that determine consumer preferences helps

businesses target their products towards specific consumer groups, develop new products and

identify why some products are more successful than others.

Factors affecting consumer preference:

Advertising:

Advertising plays an important role in consumer preference, especially for non-durable goods

such as food or magazines. Advertising informs consumers of available goods and services

and also shapes their impressions of these products. Advertising can also create demand; for

example, a consumer may not have wanted a new cell phone until he saw flashy new phones

on TV.

Social Institutions

Social institutions, including parents, friends, schools, religion and television show also

influence consumers' preferences. For example, kids might want to have the same toys their

schoolmates have, while young adults may purchase the same products their parents used to

buy.

Cost

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Consumers usually choose to purchase more of a good if the price falls. For example, a sale

or reduced prices may increase consumption of a good. On the other hand, an increase in

price may cause reduced consumption, especially if the good has available substitutes.

Consumer Income

Consumers often desire more expensive goods and services when their income increases. If

they suffer a decrease in income, they are more likely to choose less expensive goods and

services. For example, business selling luxury goods, such as jewellery, will probably be

more successful in a high-income area than a low-income area.

Available Substitutes

If a product has several substitutes -- alternative products that consumers may choose instead

a particular brand of product -- consumers will be more sensitive to changes in price.

However, if consumers do not perceive similar products to be effective substitutes -- for

example, consumers who do not think Coke and Pepsi are equally delicious -- they will be

less likely to switch to a substitute based on price. This concept is called the price elasticity

of demand.

LITERATURE REVIEW

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The aim of the research is to determine the factors which a consumer takes into account while

selecting a particular fast food chain. The past researches done by various researchers prove that

there are various factors which affect consumer preference or attitude towards any fast food chain.

Such factors are quality, price, service, cleanliness, location, staff attitude, attractiveness and other

factors.

Tajulurrus Mohammad (2003) in his paper titled “Attributes influencing preference of

university students on fast food outlets” selected the sample of students of the University of

Queensland (St. Lucia Campus, Brisbane, Australia) with the objective to identify whether the

perceptions and preferences of university students toward fast food restaurants are perceived

similarly across these multicultural students in single market location. He selected six fast food

restaurants. The research used non-probability sampling methods as a combination of convenience

sampling method and snowballing method. The questionnaire was developed for the purpose of

collecting data. A cross- comparison analysis was performed to evaluate fast-food consumer’s

perceptions by each student’s group. The study revealed that factors such as prompt service,

courteous staff, speed, attractiveness, cleanliness, consistency, modern equipment, staff appearance,

physical facilities, printed materials, location, food temperature, flavour, menu choices, freshness,

portion size, nutrition, and price of fast food restaurants influence the consumer preference of fast

food outlets in Australia.

A.Ali Khatibi, V. Thaigarajan and Hishammuddin Ismail (2003) in their research paper titled

“Factors Analysing Consumer’s Preference towards McDonald’s and A&W in Malaysia”. The

objective of the study was to find out the consumer preference towards McDonald’s and A&D in

Malaysia by comparing all the determining factors such as price, quality, service, value-satisfaction

level, etc. A total of 302 respondents was selected .From the study it is concluded that McDonald’s

strategy of providing tasty food with good environment and better ambience, wins well in attracting

the Malaysian consumer.

Anita Goyal and N.P. Singh (2007) in their paper titled “Consumer perception about fast food in

India: an exploratory study” seeks to estimate importance of various factors affecting the choice

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of fast food outlets by Indian young consumers. In this study multivariate statistical tools to estimate

importance of various factors affecting the choice of fast food outlets by Indian young consumers.

Accordingly 200 respondents from the target population were approached to fill in the questionnaire.

Out of 200 only 171 respondent’s data were valid. The study proved that the food habits of youngsters

are influenced by many factors such as environment at home, educational environment, availability

and accessibility to fast food providers, and social environment in their surroundings. In addition,

emergence of traits of independence in their eating habits, nutritional education, divergence of food

preferences at home and at fast food outlets and ambience of place for socializing affects their visit

and liking of fast food outlets

Nazrul Islam (2010) in his paper titled “Factors Affecting Consumer’s Preferences on Fast Food

Items in Bangladesh.” To conduct the study, a total of 250 university students of Dhaka city were

interviewed with a structured questionnaire, the objective of this research was to identify the

preference factors of fast food consumers living in Dhaka city. Multivariate analysis technique like

factor analysis was performed to identify the preference factors of the fast food student-consumers of

Bangladesh. Multiple regressions were run to identify the relationship between the factors identified

and the overall preference of the consumers. This study suggests that the brand reputation, nearness

and accessibility, similarity in taste, and cost and quality relationship should be emphasized to

improve the attraction of the university students towards the fast food items in Bangladesh.

Muhammad Usman Haider, Dr Farzand Ali Jan, Muhammad Farooq Jan, Muhammad Faheem Jan

(2012) in their paper titled “Factors Effecting Brand Preferences: A Comparative Study of

McDonald’s and KFC”. The study was undertaken with an objective to identify factors affecting brand

food products about two major food industries i.e. Mc-Donald’s and Kentucky Fried Chicken (KFC). Factors

included were taste and quality of product, price of product, delivery of product, availability of product,

environment of restaurant, staff of behaviour and value for money. A pre design questionnaire was used to

collect relevant data about these two food industries in Islamabad and Rawalpindi areas. Such questionnaire

was filled by 324 respondents. The study found that the product of KFC were relatively better as compared to

that of Mc-Donald’s in most of the traits studied especially in Taste and quality of food, price of product, staff

behaviour, delivery of product, and environment of the restaurant.

Ayesha Tabassum and Tasnuva Rahman (2012) in their paper titled “Differences in Consumer Attitude

towards Selective Fast Food Restaurants in Bangladesh: An Implication of Multiattribute Attitude

Model”. The objective of the research was to explore the consumer attitude towards the fast food restaurants

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in Bangladesh through comparative evaluation among the selective restaurants. A total of 100 respondents

were included in the study. The respondents were selected from two large private universities of Bangladesh.

The study concluded that Consumers in Bangladesh mostly emphasize on quality, price, quick service, and

environment of fast food restaurants as most significant.

RESEARCH METHODOLOGY

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Problem Statement:

“To identify factors affecting the Consumer preference in selecting a particular fast food chain”.

Research Objective:

To know the prominent factors which affect consumer while they select a particular fast food chain.

To know which brand customer prefers most.

To identify which point customer consider while selecting a particular brand.

To know changes required by the consumer in service, quality or in any other area.

Research Design:

There are mainly three research designs:

1. Exploratory research design

2. Descriptive research design

3. Causal research design

In this research Descriptive research design will be used in order to identify which factors affect the

consumer preference in selecting a fast food outlet.

Type of Data:

For this study primary data will be used

Sources of Data:

Data will be collected through questionnaire.

Sampling Plan:

Sample Size: 300

Sampling Method: Non-Probability (Convenience)

Sampling Unit: Consumer

Tools:

Statistical tools used for this study is Frequencies and Factor Analysis.

Benefits of the Study:

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Page 14: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

From this study a fast food company can identify the factors which affects consumer preference

towards fast food selection,

The company can determine that in which area he needs to improve.

To identify which fast food company is more popular among the consumers.

Limitations:

As only 300 respondents were questioned, responses/results may be bias,

Most of the respondents were students so the effect of income factor was neglected,

Based on the current findings, in future the researchers may take initiative to explore consumer

attitude towards the local and foreign fast food restaurants.

Analysis and Interpretation

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Frequencies

Frequencies are one of the simplest yet one of the most useful of all SPSS

procedures. The Frequencies command simply sums the number of instances

within a particular category. For eg Number of males and females, number of

respondents within a same age group and so on.

In our Research we have conducted frequency analysis on following criteria or questions:-

Age:

Interpretation:

Respondents were divided into four different age groups and were

asked to select the age group in which they belong. The number of people

in a particular age group and the overall contribution of an age group in the

total sample sized is stated in the table 1.1.

Gender

Frequency Analysis Table 1.2

15

Frequency Analysis

Table 1.1

Frequency Percent Valid Percent Cumulative Percent

Valid 15 to 25 140 46.7 46.7 46.7

26 to 35 116 38.7 38.7 85.3

36 to 45 32 10.7 10.7 96.0

46 and above 12 4.0 4.0 100.0

Total 300 100.0 100.0

Page 16: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

Interpretation:

The proportion of male and female in the overall sample size of 300 is stated

in the table 1.2. There were 178 male respondents and 122 female respondents

in the survey.

Occupation

Interpretation:

The respondents were then further classified according to their occupation.

They were asked to select their occupation from four options that is Student,

Employee, Businessmen and Others. The number of people belonging to each

category is shown in table 1.3 along with the contribution of the category in

overall sample in percentage.

16

Frequency Percent Valid Percent Cumulative Percent

Valid Male 178 59.3 59.3 59.3

Female 122 40.7 40.7 100.0

Total 300 100.0 100.0

Frequency Analysis

Table 1.3

Frequency Percent Valid Percent Cumulative Percent

student 134 44.7 44.7 44.7

Employee 95 31.7 31.7 76.3

Businessmen 46 15.3 15.3 91.7

Others 25 8.3 8.3 100.0

Total 300 100.0 100.0

Page 17: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

Monthly income

Interpretation:

The respondents were asked about their monthly income and to select the income group in which they belong. The number of person in each income can be known through table 1.4.

It can be seen that the number of people belonging to income group of 0 to 10000 are more as most of our respondents were students.

17

Frequency Analysis

Table 1.4

Frequency Percent Valid Percent

Cumulative

Percent

Valid 0 to 10000 154 51.3 51.3 51.3

10001 to 20000 73 24.3 24.3 75.7

20001 to 30000 53 17.7 17.7 93.3

30001 Or More 20 6.7 6.7 100.0

Total 300 100.0 100.0

Page 18: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

Which Fast Food Outlet you have visited till now?

Interpretation:

It was a multiple tick question in which the respondents have to select the outlets in which he or she has visited till now.

18

Frequency Analysis

Table 1.5

Responses

Percent of CasesOutlet N Percent

McDonalds 239 20.2% 79.7%

KFC 172 14.5% 57.3%

Pizza Hut 151 12.7% 50.3%

Us Pizza 176 14.9% 58.7%

Subway 87 7.3% 29.0%

Sugar and spice 175 14.8% 58.3%

Dominos 176 14.9% 58.7%

Others 9 .8% 3.0%

Total 1185 100.0% 395.0%

Page 19: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

From the table 1.5 it can be seen that McDonalds is the most visited brand by the people followed by US Pizza and Dominos as the second and sugar and spice as third.

How frequently do you visit a fast food outlet?

Frequency Analysis

Table 1.6

Interpretation:

19

Frequency Percent Valid Percent Cumulative Percent

Valid Rarely 62 20.7 20.7 20.7

Often 97 32.3 32.3 53.0

Occasionally 112 37.3 37.3 90.3

Regularly 21 7.0 7.0 97.3

Daily 8 2.7 2.7 100.0

Total 300 100.0 100.0

Page 20: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

In this question the respondents were asked about the frequency of their visit to the fast food outlet. That is within how much time gap they visit a fast food outlet. The objective of this question was to know their fast food consumption level.

Most of the people answer that they visit a fast food outlet occasionally that is either to celebrate birthdays, anniversary or certain festival that can be seen in table 1.6.

Why do you go to eat fast food?

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Interpretation:

In this question the respondents were asked about the reason they visit a fast

food outlet to eat. Most of the respondents that is 102 answered that they visit

a fast food outlet as it saves time. The answer of respondents on the can be

known through table 1.7.

Which fast food outlet you prefer most?

21

Frequency Analysis

Table 1.7

Frequency Percent Valid Percent Cumulative Percent

Valid for change 74 24.7 24.7 24.7

saves time 102 34.0 34.0 58.7

family outing 59 19.7 19.7 78.3

for fun 65 21.7 21.7 100.0

Total 300 100.0 100.0

Page 22: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

Interpretation:

The respondents were asked to select their most preferred fast food outlet

from the given outlet and also to mention other if there. The objective behind

asking this question was to know that which fast food outlet is more popular

among the customers and which fast food outlet is less popular.

KFC was the most popular or preferred brand followed by McDonalds and

then Pizza Hut. The information about other outlets and the number of person

who selected a particular outlet is shown in table 1.8.

Why do you select this brand?

22

Frequency Analysis

Table 1.8

Frequency Percent Valid Percent

Cumulative

Percent

Valid KFC 78 26.0 26.0 26.0

McDonalds 69 23.0 23.0 49.0

Pizza Hut 48 16.0 16.0 65.0

Dominos 38 12.7 12.7 77.7

Us Pizza 35 11.7 11.7 89.3

Sugar And Spice 20 6.7 6.7 96.0

Subway 11 3.7 3.7 99.7

Others 1 .3 .3 100.0

Total 300 100.0 100.0

Page 23: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

Frequency Analysis

Table 1.9

Frequency Percent Valid Percent

Cumulative

Percent

Valid Quality 101 33.7 33.7 33.7

Location 70 23.3 23.3 57.0

Price 39 13.0 13.0 70.0

Service 32 10.7 10.7 80.7

Brand Name 30 10.0 10.0 90.7

Variety 24 8.0 8.0 98.7

Physical Facilities 4 1.3 1.3 100.0

Total 300 100.0 100.0

Interpretation:

This question was related to previous question and was asked to know the

reason for selecting the outlet as most preferred one. The respondents were

given various factors which affects the selection of fast food outlet as options.

The frequency of the factor as selected as the reason behind the selection of

the fast food outlet is described in the table 1.9.

From the above table it can be seen that Quality is the most important factor

which affects the selection of fast food outlet and Physical Facilities is the

least important factor.

Ranking

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Ranking Table

Table 1.10

Interpretation:

The respondents were asked to rank the most important factor which affects

the selection of a fast food outlet. They were given a list of seven factors and

they have to rank them from 1 to 7.

For selecting the overall rank of an Factor the frequency achieved for each

ranked was multiplied by the rank and the Factor which had the lowest total

was given the first rank and the Factor which had the highest total was given

the last rank.

From the table it can be seen that Quality is the most important factor which

affects the selection of a fast food outlet as compared to price which is second

important factor, which means that consumers are ready to pay a higher price

if better quality of products are provided by the outlet.

24

FactorRank Overall

Rank1 2 3 4 5 6 7 Total

Quality 81 64 48 42 32 21 12 891 1Price 73 60 72 34 16 18 27 922 2Varieties 25 72 74 40 37 24 28 1076 3Location 55 36 30 58 60 40 21 1136 4Brand 37 38 20 53 83 45 24 1238 5Service 25 20 24 41 45 103 42 1438 6Physical Facilities 04 11 31 32 26 49 147 1700 7Total 300 300 300 300 300 300 300

Page 25: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

Factor Analysis

Factor analysis is a data reduction technique used to reduce a large number of

variables to a smaller set of underlying factors that summarise the essential

information contained in the variable.

KMO

and Bartlett's Test

Interpretation:

The value of KMO test is 0.678 (higher than .6) and the p value of

Bartlett’s test is .000 (less than .05), factor analysis can be under taken

using this dataset.

25

KMO and Bartlett's Test

Table 1.11

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy..678

Bartlett's Test of

Sphericity

Approx. Chi-Square 457.261

Df 78

Sig. .000

Page 26: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

Communalities Table

Interpretation:

This table shows the amount of variance explained by each

variable which is accounted for by the factors in factor solution

26

Communalities

Table 1.12

Variables Initial Extraction

Quality of food 1.000 .482

Price of products 1.000 .593

Varieties of product 1.000 .422

Service of outlet 1.000 .604

Location of Outlet 1.000 .403

Staff Behaviour 1.000 .432

Physical Facilities 1.000 .355

Contains Extra Fat 1.000 .395

Availability of products 1.000 .483

Harmful to health 1.000 .535

food provided is Hygienic 1.000 .578

Manage Brand Name 1.000 .588

Place to Hang Out 1.000 .638

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Scree Plot

Interpretation:

Scree plot determines the optimum number of components. It plots the Eigen

value of the components and those components having Eigen value more

than one are extracted and other components are rejected.

From the curve it can be seen that the no of components lying on steep slope

are extracted as their Eigen value is more than 1 and components lying

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beyond the point where the curve changes its direction are eliminated as

their Eigen value is less than 1.

Total Variance Explained Table

28

Total Variance Explained

Table 1.13

Compo

nent

Initial Eigen values Extraction Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 2.692 20.709 20.709 2.692 20.709 20.709

2 1.562 12.017 32.726 1.562 12.017 32.726

3 1.176 9.050 41.775 1.176 9.050 41.775

4 1.078 8.291 50.066 1.078 8.291 50.066

5 .994 7.644 57.710

6 .940 7.231 64.941

7 .883 6.790 71.731

8 .801 6.161 77.892

9 .684 5.259 83.151

10 .633 4.872 88.024

11 .577 4.438 92.462

12 .509 3.915 96.377

13 .471 3.623 100.000

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Interpretation:

The total variance explained table displays the total variance, percentage

variance and cumulative percentage variance of components. The cumulative

variance for components is 50.066%.

The first component or factor explains the maximum variance that is 20.7019%

followed by the second component which explains 12.017%, third component

explains 9.050% and fourth variable explains 8.291% of variance.

Factor Matrix Table

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Interpretation:

Through factor analysis method the 13 variables were extracted and divided into four most important factors and name was given to each factor on the basis of the group of the variable in it.

First Factor - Service and Health

Second Factor - Price

Third Factor - Quality

Fourth Factor - Location

Findings

30

Factor Matrix

Table 1.14

Factor

Variables Service & Health Price Quality Location

Service of outlet -.565

Contains Extra Fat -.525

Harmful to health -.520

Physical Facilities .518

Availability of products .514

Varieties of product

Location of Outlet

Staff Behaviour

Price of products .557

food provided is Hygienic -.550

Quality of food .549

Place to Hang Out .561

Manage Brand Name

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McDonalds is the brand which is been visited by most number of consumers i.e. 239 people

and Subway is the visited by least number of consumers i.e. 87 people

There are four important factors which affects the selection of outlet which are

1. Service and Health

2. Price

3. Quality

4. Location

Quality is the most important factor which a consumer takes into account while selecting a

fast food outlet.

Personal criteria of consumer such as Age, Gender, Occupation and Income also affect the

consumption and selection of fast food outlet.

People visit a fast food outlet mostly as it saves time.

The frequency of people visiting a fast food outlet on an special occasion increases as they

prefer to eat outside on such occasions.

KFC is the most preferred brand among the customers i.e. 78 consumers Voted for KFC

while Subway was voted by least number of consumers i.e. 11

Conclusion

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The study was conducted with an objective to find out the factors

which affect the consumer in selecting a fast food outlet and also to

find the most preferred brand by the customer in fast food business.

By conducting various tests and asking respondents various question

which can affect the selection of fast food outlet we came to know

that there are various factor which affects the selection of fast food

outlet and the most important of them all was quality of products

followed by price. That is consumers are ready to pay a higher price

if better quality of products are served.

Service & Health, Quality, Price and Location are the most

important factor affecting consumer preference in selecting a fast

food outlet.

Recommendations

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They should improve the quality of products provided to the

consumer.

Providing quick and efficient service to consumers

Establishing the outlet at a proper place where it is easy to visit

for the consumer.

Providing special offers on occasions as the frequency of visit at

such times increases.

Most of the respondents were not satisfied with the behaviour of

staff so necessary training should be provided.

Including more products in their menu so that more consumers

are attracted towards the outlet.

Reducing the amount of fat in products as people consider health

as important factor while selecting a fast food outlet.

Bibliography

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Websites:

http://teamjournalht.files.wordpress.com/2013/05/vol112004-team-journal-of-

hospitality_tourism_part9.pdf

http://journals.cluteonline.com/index.php/JABR/article/view/313/303

http://64.17.184.140/wp-content/uploads/2013/02/V5I2-3.pdf

http://www.aseanfood.info/articles/11023758.pdf

http://www.wbiaus.org/2.%20Ayesha.pdf

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http://www2.qsrmagazine.com/articles/features/116/charts.phtml

http://www.smartsurvey.co.uk/s/fast-food-restaurant-survey-template

Books

Zikmund. W.G. (2007) Business Research Method, Seventh Edition, Thomson India George, D., Mallery, p . (2011), SPSS for windows – Step by step, Tenth edition, Pearson

Journals The Journal of Applied Business Research – July/August 2010 Abasyn Journal of Social Sciences Vol.5 No.2, 2007 British Food Journal Vol.109 No.2, 2007 World Review of Business Research Vol.2 No.3, may 2012

ANNEXURES

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Page 35: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

Factors affecting consumer preference in selecting fast food chain

Name: -

Age:- 1115 to 25 262 26 to 35 36 to 45 46 and above

Gender: Male Female

Occupation:-

Student Employee Businessmen Others

Monthly Income:-

0 to 10000 10001 to 20000 20001 to 30000 30001 or More

1) Which Fast food outlets you have visited till now?(Multiple tick)

McDonalds KFC Pizza Hut US Pizza Subway

Sugar and Spice Dominos Others

2) How frequently you visit a fast food outlet? Rarely Often Occasionally Regularly Daily

3) Why do you go to eat fast food? For change Saves time Family outing For fun

4) Which Fast Food outlet you prefer most?

McDonalds KFC Pizza Hut US Pizza Subway

Sugar and Spice Dominos Others

5) Why do you select this brand? (Select any one)

Price Quality Location Service Physical Facilities

Variety Brand Name

6) Which factors do you consider while selecting a fast food chain?

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Page 36: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

(Rank them from 1 to 7)

Price Quality Location Service Physical Facilities

Variety of food Brand Name

7) Please put a tick mark according to your choice and rate the fast food outlet.

S.No Statements Strongly Agree

Agree Neutral Disagree Strongly Disagree

1. The food being served in restaurant has a good quality.

2. The price charged by the fast food outlet is reasonable.

3. The fast food outlet provides different varieties of products.

4. The outlet provides prompt service.

5. The outlet is situated at an appropriate place and is easy to visit.

6. The behaviour of staff is friendly towards customers.

7. The outlet as good interior and provides good physical facilities.

8. The food provide at outlet as extra fat then other outlets.

9. All the items listed in menu of outlet is available at all times.

10. Regular consumption of fast food is harmful for health.

11. Food provided at the outlet is hygienic.

12. The fast food outlet is able to manage its brand name

13. The fast food outlet is an proper place to hang out and spend some time.

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Page 37: Factor Affecting Consumer Preference in Selecting a Fast Food Retail Chain

8) Suggestion for this fast food outlet?

37