Market

S a l e s o f s e l e c t e d f a s t f o o d c h a i n i n M o r a y t a | 1

Market ResearchTitle:

“Factors that Affect the Sales of Selected Fast Food ChainsIn Morayta, Manila”

Alagao, Welben Chad P.Uddin, Nortujah

Raposas, Andre B.Casakit, Flori May C.

Dr. Joselito P. Tem

“Factors that affect the sales of selected fast food chains in Morayta,

Manila”

Food is one of the basic necessities in our everyday lives. The industry

which deals with preparing food items/products refers to the food service industry

includes restaurants, cafeterias, canteens, fast food, food carts and trucks and

catering. Restaurants and fast food mainly contributes to its industry. They

provide services to people away from home that is now developing wider, making

it not only a food service industry but gives importance now to hospitality

industry. However, it is the complexity of man’s life nowadays that makes fast

food restaurant rise; the shifting consumers’ preferences towards leisure and

convenience, and urbanization have heighted consumer demand for food

services.

Fast food restaurants are enhanced traditional catering. It is the type of

restaurant that sells quick made and served inexpensive and handy food. They

have provided flexibility and comfort with reasonable prices. Their services are in

the level that can satisfy customer. Like every other country, the food industry

has grown very well in the Philippines. Filipinos love to eat that’s the reason why

you will see a lot of restaurant and fast food chains restaurant everywhere.

These restaurants and fast foods can be local or international food chains.

Fast food restaurants have their own benefits. These perceived benefits

are the primary reason why they are patronized. Markets consist of various

buyers, and buyers differ from each other. They may differ in their wants,

resources, geographical locations, buying attitudes, lifestyle, and buying

practices. Therefore, the management needs to describe of his customers how

his store differs from current and potential competitors. Using their attributes, he

can make an image that directly influences the consumer patronage. It is the

purpose of this study to determine the forces that are responsible for students’

consumptions of food and the areas of improvement in fast food restaurant in

University-belt.


On the other hand, Fast food retains its position as the largest and the fastest-

growing category in the Philippine consumer food service industry. During 2012, this

category reported total food service revenue of Ps121.9 billion, taking 30% of total value

sales in consumer food service. Growth in terms of outlets, transactions and value sales

remains vibrant. Outlet openings have been supported by the increasing number of

shopping centers and small community supermarkets in Metro Manila and key cities

nationwide. Outlet growth was estimated to be at 8% in 2012 while transactions and

value sales ballooned by 9% and 11% respectively.

Including revenue from its various franchisees and other brands under the whole

company, Jollibee Foods Corp dominates the local fast food category. The business

organization has grown its portfolio to include Jollibee, Greenwich, Chow king, Burger

King, Mang Inasal and Red Ribbon, most of which are sub-category leaders. The

company takes advantage of its deeper knowledge on the local palate, aggressive

advertising campaigns, and commitment to product innovation and brand acquisition in

order to cement its category leadership in the Philippines. Other important players in

fast food include Golden Arches Dev Corp (McDonald’s), RamcarInc (KFC and Mister

Donut) and Philippine Seven Corp (7-Eleven).

Fast food will continue to enjoy moderate in growth in the forecast. Amid more

market saturation and maturity, fast food constant value CAGR is set at 3% which is the

same rate recorded in the review period. In order to grow sales, operators will continue

to grow their outlets via franchising. The opening up of shopping centers and community

supermarkets both in Metro Manila and in key provincial cities will provide lucrative

venues for fast food. This category is expected to remain the biggest in the Philippine

consumer foodservice industry by the end of 2017.

Abstract

This study examines the effects of the five P’s of marketing on the sales of

different fast food chain in Morayta. Respondents of the study includes the

4thyear IABF Marketing Management students of Far Eastern University tested

and ask for their point of view of towards the Fast food chains in Morayta by

answering the questions in the survey form that is related to the topic. Products

taste and preferences considered being the high factor of the respondents to

avail products and services of the specific fast food chain based on results given

by the respondents. This research also supported by different related literature to

signifies the topic and its essence. However, this study will provide valuable

information of the factors that can affect the sales of fast food chain industry to

project sales.


A. Statement of the Problems

1. What are the Factors that affect the increase of sales of the fast food chains

in Morayta?

2. Is there a significant difference on the factors that affect the increase of sales

in the fast food chain in Morayta Manila such as:

Price

Place

Promotion

Product

people

3. What will be the possible solutions the fast food chains can use to establish a

high sale?

Objectives:

To examine the buying behavior of the consumers in a fast food chain.

Identify problems that mostly affect fast food chain industry.

Provide possible solutions on how will fast food chains gain profit and

maximize it.

B. Background of the Study

Attaining higher sales is not an easy task to do in fast food chain industry.

There are lots of factors to be considered and steps to be followed to make it in a

most possible goal. The study entitled “Factors that affect the sales of selected

fast food chains in Morayta” focuses in factors and evaluations that include the 5

P’s of marketing namely product, price, promotion, place and people that

measure the sales in selected fast food chains in Morayta. Therefore, this study

will be a help in the society most especially for those people who has interest in

the topic of fast food chains and conducting sales which is the primary purpose of

the fast food firms in doing and establishing a business ; build high a sales and

get profit.

Most Filipinos in Manila area are in a work or in studies that’s why instead

of cooking foods for their own they choosing to eat in a fast food chains to lessen

their time in a busy society. That is the reason why researchers of this study

became interested in the topic, because food is one of the daily necessary needs

of any individuals in a society. On the other hand, the main purpose of this study

is to deeply know on how the fast food chain industry are reacting in different

factors which is the 5 P’s in getting and gaining their sales, and because of this

the researchers will know if the factors that affects the sales of fast food chains in

Morayta will be significant or insignificant, and knowing the fact can used as a

tools to redefining and designing different measurements on how fast food

industry can gain more sales.

The study focuses in different fast food chain in Morayta area which

includes the following:

Jollibee McDonalds KFC Chow king Mang Inasal


Conceptual framework

Promotion

Figure 1.1 indicates the factors that affect the sale of the fast food chains including

the 5 P’s of marketing mix.

PROCESS Steps to be done:

PeopleProvide a program that

provide better service and build customer loyalty.

Provide safety measures such as CCTV, security guard and alarming systems.

ProductAgreement between the

suppliers.

Place -Attractive-

PriceOffer affordable prices

Promotion-used activities and printed

materials for announcements

INPUT

Problems usually

encounter:People- Slow service

performance- Safety and security Product - Availability of product

(supplier)- Taste Place - Ambiance- Cleanliness of fast food

chain Price - Price cost Promotion

-using of advertising tools

OUTPUTProvide better service by

developing some personnel orientations, team buildings and other seminars that can train and enhance the skills of their employees.

Implicate good ambiance in the store clean surroundings and organized exterior and interior designs to encourage customers and to attract sales

Usage of advertising materials to provide customer information

Ensuring product availability that meets customer demand

This conceptual framework is focusing in the 5p’s that is mainly affecting sales of a

fast

food chainindustry.

(A.)inputsome problems occurs in marketing mix that the fast food chain

are always facing they somehow become less focusing in their personnel’s ability

and services that can cause a customer dissatisfaction and lose sales. It is also the

product that sometimes becomes unavailable due to its high demand less supply

that can discourage sales. Place and ambiance is also a main factor because

customer is always looking for good servicestogether with the good ambiance

environment where the customer can move and eat without having dissatisfied

feeling. Price is also a main factor in affecting the sales of the fast food chain

because it is too risky in setting price in whether high or low because it greatly

affects the sales of the firms. Lastly, promotions are sometimes a problem because

firms are not maximizing the use of it, they are locking of support in advertising

sectors that can cause a low brand recall and can cause low customer retention and

can lead to lower sales.

On the other hand, (B.) Process is the things to be done. To increase the

sales of the firms they are needed to engage their personnel in some activities to

enhance their skills and ability. They are also needed to deal more in a fast flow of

logistic and build a good relationship in their suppliers to meet the demand of the

customers. The fast food firms are also needed to provide good ambiance together

with a high level of security to avoid unexpected incidents and lastly is the better

pricing and maximize use of promotional tools.

The possible output (C.) stated in figure 1.1 states that the fast food firms

will need to develop their personnel and implicate an organized physical store to

create an increase of sales.


Purpose and Rationale

As we all know, the fast food industry in the Philippines gets bigger and

larger in the years to pass. It’s mainly because a lot of business men are investing in

this industry; they are allowing healthy competitions to provide choices and

satisfaction for the consumers.

For the researchers, this paper can enlighten their thinking with regards to

the reality of life especially as we walk towards concerning one of the basic needs of

individual which is the food. It tackles topics that can help fast food institutions on

how they can provide better service and products offering in their consumers as well

as developing a store ambiance to encourage more customers to eat. It also

includes the establishments of good business team in order to meet the satisfaction

of the customer and on how to maximize the use of advertising tools in order to

provide information for the customer need, because we believe that these can build

a customer loyalty that can cause high sales prospective and results. Also aside

from being informative this research will encourage the readers to stay abreast to

the various developments in the fast food industry and be aware in possible results

of their decision making in choosing the fast food chains they will choose to eat.

Hypothesis

There is no significant difference on the factors that affects the sales of fast food

chains in Morayta.

Review of Literature

I.

Sales promotions are action-focused marketing events whose purpose is to have a direct

impact on the behavior of the firm’s customers. There are three major types of sales promotions:

consumer promotions, retailer promotions, and trade promotions. Consumer promotions are

promotions offered by manufacturers directly to consumers. Retailer promotions are promotions

offered by retailers to consumers. Trade promotions are promotions offered by manufacturers to

retailers or other trade entities (Blattberg andNeslin 1990). This thesis is focused on promotions

offered to the consumer, therefore a combination of consumer and retailer promotions.

Throughout the world, sales promotions offered to consumers are an integral part of the

marketing mix for many consumer products. Marketing managers use price-oriented

promotions, such as coupons, rebates, and price discounts to increase sales and market share,

entice consumers to trial, and encourage them to switch brands or stores. Non-price promotions

such as sweepstakes, 7frequent user clubs, and premiums add excitement and value to brands

and may increase 6brand attractiveness.

Stimulus-Organism-Response Model

General form of the stimulus-organism response system where the organism stands for

a constellation of internal processes and structures intervening between stimuli external to the

person and the final actions, reactions, or responses emitted (Bagozzi

1986).

Stimulus-organism-response model (Bagozzi 1986)

Marketing MixVariables

ProductPlace

PromotionPrice

EnvironmentalFactors

EconomicConditions

Social Forces Cultural Inputs

Perceptual

Physiological

Feeling

Thinking

Psychological Reactions

Purchase Activities

Consumption Patter

Process

And

Structure


It is noticed that the intervening processes and structures consist of perceptual, physiological,

feeling, and thinking activities (for example needs and preferences).

Obviously, these are complex, multifaceted aspects of human behavior. In reality, consumer

decision-making processes are quite complex and are influenced by many forces both within

and around the individual. Fortunately, it is possible to identify a relatively small number of

model of consumer behavior is an abstraction designed to symbolically represent most of the

major elements and processes in all consumer choice decisions. Figure 2.3 is one example of

such a general consumer behavior model (Blackwell et al. 2001). This is already the 9th edition

of this book (the first version was published in 1968, with a different composition of the authors),

but the consumer behavior model has not undergone any dramatic metamorphoses. In each

edition, some variables were renamed, and, very rarely, variables were added.

Figure 2.2: Stimulus-organism-response model (Bagozzi 1986) 23

As mentioned before, Figure 2.3 is one possible representation of the extended

-solving process. All variables shown are usually functioning in one way or another in extended

problem solving. This is because of the influences of involvement, differentiation, and absence

of time pressure. When these influences are not present, however, some stages such as

external search are skipped altogether, and alternative evaluations take an alternative form,

known as limited problem solving.

The consumption process appears to begin with an external stimulus striking the

consumer’s information processing. In reality, there are at least three ways an act of

consumption is initiated: (1) an external stimulus (e.g., display) is detected and acted upon; (2) a

physiological agitation within the consumer presses for equilibrium (e.g., hunger); or (3) a

psychological imbalance strives for resolution (e.g., desire for novelty). The last two ways are

both internal forces that may drive purchase behavior.

This model will not be dealt with in depth, but we have to note that not every element or

process within the model comes into play in every real-world decision. At this time in the

development of our knowledge of consumer behavior, three frequently occurring sub-processes

can be identified: impulse buying, habitual purchase behavior, or consumption problem solving

(Bagozzi 1986). When we buy things on impulse, it is generally because an external (e.g.,

display) or internal (e.g., deprivation) stimulus has caught our attention, and the product is easy

to acquire. Not many thoughts occur. Rather, emotional or motivational processes are primarily

at work. These, however, may occur below the level of self-awareness.

II.

Consumers mainly contributed to the development of fast food industry in

creating a more effective strategy to increase their sales, they are the ones that

can be used as a basis of when the firms or the businesses are increasing or

declining by focusing in the demand of the consumer in their buying behavior.

“Consumers in their quest to satisfy their emotional needs or taste and

preference avoid engaging in rational behavior; hence they behave

randomly depending on the stimulus that they are confronted with. The

stronger the effect or influence of the stimulus the greater the

randomness that is exhibited by the buyers and vice versa.

“(EMMANUEL SELASE ASAMOAH, MILOSLAVA CHOVANCOVÁ, Department

of Management and Marketing Faculty of Management and Economics Tomas

Bata University in Zlin)

This relationship occurs because of the influence that advertising and

sales promotion appeal to consumers which eventually triggers spontaneous

purchasing decisions without elaborate mental deliberations of all the available

alternatives before a purchase is made. According to Schiffman and Kanuk

(1997) consumer behavior is “the behavior that consumers display in

searching for purchasing, using, evaluating and disposing of products,

services and ideas.” With this statement consumers are undoubtedly exhibiting

varied taste and preference for food to meet their satisfaction. Therefore the firms

need to understand their consumers enabling them to strategize to respond to

the demand of the market and to stay competitive in the industry to attract more

sales.


I.

A sale is the main factor why business men are doing business their goals

is to get high sales. Fast food chain industry gets a high percent in market share

in the Philippines. According to EUROMONITOR INTERNATIONALE Fast food

retains its position as the largest and the fastest-growing category in the Philippine

consumer foodservice industry. During 2012, this category reported total foodservice

revenue of Ps121.9 billion, taking 30% of total value sales in consumer foodservice.

Growth in terms of outlets, transactions and value sales remains vibrant. Outlet

openings have been supported by the increasing number of shopping centres and small

community supermarkets in Metro Manila and key cities nationwide. Outlet growth was

estimated to be at 8% in 2012 while transactions and value sales ballooned by 9% and

11% respectively.

Including revenue from its various franchisees and other brands under the whole

company, Jollibee Foods Corp dominates the local fast food category. The business

organisation has grown its portfolio to include Jollibee, Greenwich, Chowking, Burger

King, Mang Inasal and Red Ribbon, most of which are sub-category leaders. The

company takes advantage of its deeper knowledge on the local palate, aggressive

advertising campaigns, and commitment to product innovation and brand acquisition in

order to cement its category leadership in the Philippines. Other important players in

fast food include Golden Arches Dev Corp (McDonald’s), RamcarInc (KFC and Mister

Donut) and Philippine Seven Corp (7-Eleven).

Fast food will continue to enjoy moderate in growth in the forecast. Amid more

market saturation and maturity, fast food constant value CAGR is set at 3% which is the

same rate recorded in the review period. In order to grow sales, operators will continue

to grow their outlets via franchising. The opening up of shopping centres and community

supermarkets both in Metro Manila and in key provincial cities will provide lucrative

venues for fast food. This category is expected to remain the biggest in the Philippine

consumer foodservice industry by the end of 2017.

II.

One of the aspects of gaining and increase sales in business is by means of

advertising. Advertising a form of marketing communication used to encourage,

persuade, or manipulate an audience (viewers, readers or listeners; sometimes a

specific group) to take or continue to take some action. Most commonly, the desired

result is to drive consumer behavior with respect to a commercial offering. 5P’s is

considering promotion as one of the vital tool in order for a business to get a high

demand for its consumer. According to Mari CrisCrisostomo “because of promotional

materials, that have been used widely nowadays by different industries, companies tend

to increase primary its sales and its income relatively. They became helpful in

strengthen various thing supporting briefly.” It also tells that the sales promotions are an

important part of brands marketing mix. A good sales promotion will build brand equity

that re-enforcing a brand market place position, and possibly leads to a temporarily or

permanent lift in sales. If a sales promotion does not adhere to the brand standards or

appear gimmicky, it can hurt the brand.

McDonald's, Burger King and Wendy's are examples of extremely successful fast

food branding. Their signs, logos and slogans are recognizable around the world. Fans

of fast food like predictability, and they want to know exactly what they are going to get

before they go through the doors, according to the website Customer Service Zone. By

providing consistent, easily recognizable and simple branding, a business reassures

customers that nothing has changed. Simple slogans that lodge themselves in the brain

are repeated endlessly on television and radio commercials, ensuring that when

customers see the fast food outlet, they are primed to respond because the brand is

already "inside" of them.


*Some advertising campaign used by leading fast food chains in the Philippines

III.

Total Customers’ Experience

Customers’ total experience can be defined as a “totally positive,

engaging, enduring, and socially fulfilling physical and emotional customer

experience across all major levels of one’s consumption chain and one that is

brought about by a distinct market offering that calls for active interaction

between consumers and providers. Delivering customers’ total experience (CTE)

goes beyond mere customer satisfaction and is a relatively new concept since

satisfied customers could still defect (Jones and Sasser, 1995). The ability to

satisfy customers is energetic for a number of reasons and avoids dissatisfied

customers (Syed and Conway, 2006). In the past, companies have primarily

focused on the physical aspects of the product, while totally neglecting the

emotional and value aspects and hence, losing many customers in the long run

( Nunes and Cespedes, 2003). According to Bojanic (2007), most of the

research concerning selection of a restaurant usually is “…based on

identification of determinant attributes”. The attributes are taste of food,

competitive price, service response time, cleanliness of the fast-food

restaurant, fast-food restaurant location, amenity, safety, employee

courtesy, restaurant operating hours, and the availability of healthy menus.

Food Quality

Food quality is one of the most critical components of a dining experience

(Namkung and Jang, 2007; Sulek and Hensley, 2004). Clark and Wood (1999)

confirmed that food quality is a primary factor influencing customer loyalty in

restaurant choice. While, Susskind and Chan (2000) persisted that from the

customer’s perspective, food quality is a key determinant forvisiting a restaurant.

Mattila (2001) considered food quality as a key predictor of customer loyalty in

casual-dining restaurants and Sulek and Hensley (2004) found that when

compared with other aspects of the restaurant, such as environmental

components and service quality, food quality is the most important element of

customer satisfaction. Namkung and Jang (2007) tested the impact of food


quality on customer satisfaction and behavioural intentions and found a

positive relation between food quality and satisfaction or behavioural

intentions. Kivela et al. (2000) considered several aspects of food quality such

as tastiness of food, menu variety, and nutrition to examine the effect of excellent

food on customer satisfaction and return patronage. Darian and Tucci (2011)

added that nutrition food making consumers more health over time. For Raajpoot

(2002), he used food presentation, serving size, menu design, and variety of food

to measure product quality (food quality) in the food service industry.

Service Quality

Recently, customers have been progressively aware about quality of

service (Soriano, 2002).Service quality is often viewed from two perspectives that

are from the customer’s cognitive evaluation of the service provided (Taylor and

Baker, 1994) and a multidimensional construct created by an evaluation of

attribute performance (Parasuraman et al., 1988). Service quality is usually

defined as the customer’s judgment of the overall excellence or superiority of the

service (Zeithaml, 1988). Thus, it is the customer’s subjective evaluation formed

by comparing expectations and perceived performance (Bolton and Drew, 1991;

1985, 1988). Based on this gap theory, Parasuraman et al. (1988) developed

SERVQUAL as a mechanism to measure service quality. SERVQUAL consists of

five dimensions that are reliability, responsiveness, empathy, assurance, and

tangibles. In addition, since perceived levels of service in restaurants are based

on the relationship between customers and service providers (Nikolich and

Sparks, 1995), customer’s perceptions and evaluation of service quality may be

highly dependent upon the service provider’s performance during service

delivery.

Atmospheric Quality

Previous studies have identified atmospherics as another important

element of the dining experience and reported that atmospherics influence

customer’s emotions and expectations regarding service and food quality

(Baker et al., 1994; Reimer and Kuehn, 2005; Wall and Berry, 2007). Usually, a

customer first perceives the atmospherics when he or she enters a restaurant,

which occurs before any actual services or foods are delivered. Thus, the

emotions created by the perception of the atmospherics may affect the

customer’s reaction to the actual services and foods in restaurants (Bitner, 1990;

Zeithaml et al., 1993). In addition, Ryu et al, (2012) point out that consumer’s

perception of a restaurant’s image will return customer’s cumulative consumption

such as food, atmospherics, and service. That is, if a customer has a high

perception of the atmospherics, then customers’ expectations for service and

food quality could also be higher.

Perceived Value

The first definition indicates that perceived value is derived from a

“comparison between the expected benefits of a product and the sacrifices that a

consumer would have to make in order to guarantee those benefits” (Monroe and

Krishnan, 1985). The results of this comparison should affect the level of

customer satisfaction. However, even though individuals in both cases make a

comparison between rewards and costs, the concepts of perceived value and

satisfaction are not synonyms. Previous studies also have concluded that brand

perception can provide understanding for food firm to enhance perceived value

(Wang, 2013). Moreover, perceived value is classified into quality and price

(Dodds and Monroe, 1985). In addition, Zeithaml et al. (1998) indicate

“perceived value plays an important role in consumers’ purchase decision

making, suggesting that behavioral intentions are consequences of

perceived value”. From the various dimension of value, the most frequently

apply in recent marketing literature are hedonic and utilitarian values (Babin et

al., 1994; Jones et al., 2006; Park, 2004; Voss et al., 2003). According to

Donovan and Rossiter (1982), hedonic value is related with the revisit intention

among customers through emotions and affective experience. Thus, utilitarian

value means revisit intention but through high valuable experiences in terms of

efficient and economical aspects (Wynyard, 1993)


METHOD

A. Subject and participants

The researchers selected the students of 4th year BSBA marketing

management of Far Eastern University as the respondents of this study

“factors that affects the selected fast food chain in Morayta”. This is because

the researchers believe that those chosen respondents can give the most

appropriate and accurate information’s and answers about the research topic.

The researchers get their respondents by using percentage method with a .20

ratio:

*Number of IABF BSBA Marketing Management student: 235 X Percentage ratio 20. = 47 respondents

B. Instruments use

Te research instruments use in the study to gather necessary data

includes questionnaires and some library techniques. The use of

questionnaires serves as the written reference about the latest information’s

essential for the study. It consists of set of questionnaires prepared for the

respondents in a printed form to be answered. Other library techniques were

also used to gather relevant information’s. This includes the use of related

books, and other and dissertations in the library.

C. Procedure

The study chooses a cluster sampling in where a sample cluster is chosen

using a probability method. Only individuals in a sampled cluster are surveyed.

The participant first ask to answer the survey sheet provided by the researcher

to measure the point of view of each participant in different factors or the 5p’s

of marketing. The participants are required to fill out each space after the

question choosing form strongly agree to the strongly disagree by putting

check. The researchers tally the results on how quantify each check in

different columns of questions in order to support the research data.

Results

Analyzes focus in the participant’s answers in the questions given in the survey form

In where they are obliged to answer each questions pertaining to the 5p’s of marketing

that is consider the factors of this study. Each participant has their own perception in

different factors that affects the sale of the fast food chains, they have different result

provided on what factors seems to be the list and the most needed in the fast food chain

industry to make their sales high.

Figure 1 and 2 defines the graph of the demographic state of the 47 respondents.

it shows the gender and the age of respondents who became the target market of the

study. Figure 1 shows the gender side, it shows that the dominant respondents are the

male (19) with having 3 number points greater than the female (16).on the other hand,

the age dominantly get form ages 16 to 20 years old (graduating FEU IABF BSBA

Marketing Management student)3/4 high than the 21 to25 years old respondents.

Respondents with the dominant demographic results are the ones who are often go and

avail service of the fast food chains in Morayta area.

Figure 1.

GENDER

Most of our respondents are male students, this show that male students are more into eating

at fast food chains.


AGE

As you can see, 16-20 years old are majority who answered the questionnaires

The next figures represent the results of the survey based on the factors that affects the sales of

selected fast food chains in Morayta. The factors include the Product, Place, Price, People and promotion

that greatly affects the buying behavior of the consumers. It focuses on what factors is the most concern

of the consumers in choosing the fast food chains to eat that project and decrease the sales of the fast

food chains. The respondents chosen were located in Morayta area where they are all spend time in

study and eat their breakfast and lunch in the leading fast food chain in Morayta area they are chosen

because if their capacity they’ve experience in eating in different fast food chains in the area. The results

show the different data coming from the respondents that meets their satisfactions in terms of service

and preference based on the given factor.

Majority of the respondents considers the taste and products that are being offered by the fast

food chains.

Budget and Allowance has a big impact for students to eat in fast food chains which is why most of

them strongly agree to the statement about budget and allowance.


The respondents are very particular in the clean surroundings and are of the fast food chain.

The respondents agree that promotional Medias such as TV commercials, radio ad, and prints ad

help them choose the fast food chain to eat

The respondents want them to be served with fast, accurate, and friendly service.

Discussion

A. Computation Chi-square

PRODUCT

Strongly

Agree

Agree Strongly

disagre

e

Disagree Row Total

Brand Name 18 24 0 5 47

Variety of

products

23 24 0 0 47

Taste of the

product

33 14 0 0 47

Column

Total:

74 62 0 0 141 (Grand

Total)

B.


PRICE

Strongly Agree Agree Strongly

disagree

Disagree

Affordabilit

y

19 (22.00) [0.41] 25 (20.33) [1.07] 0 (1.00) [1.00] 3 (3.67) [0.12]

Price list 24 (22.00) [0.18] 20 (20.33) [0.01] 0 (1.00) [1.00] 3 (3.67) [0.12]

Budget and

allowanc

e

23 (22.00) [0.05] 16 (20.33) [0.92] 3 (1.00) [4.00] 5 (3.67) [0.48]

Column

Total:

66 61 3 11

C.The chi-square statistic is 9.3636. The P-Value is 0.154136. The result is not significant at p < 0.05.

PLACE

Strongly

Agree

Agree Strongly

disa

gree

Disagree Row Total

Ambiance 30 14 0 3 47

Location 25 18 0 4 47

Cleanliness 35 12 0 0 47

Column

Total:

90 44 0 7 141 (Grand

Total)

D.

PROMOTION

Strongly

Agree

Agree Strongly

disa

gree

Disagree Row

To

tal

Advertisements 11 (11.00) [0

.00]

26 (20.00) [1

.80]

5 (10.00

) [2.

50]

5 (6.00)

[0.17]

47

Celebrity

endorsers

9 (11.00) [0.

36]

13 (20.00) [2

.45]

17 (10.0

0) [

4.90]

8 (6.00)

[0.67]

47

Special promo.

discount

13 (11.00) [0

.36]

21 (20.00) [0

.05]

8 (10.00

) [0.

40]

5 (6.00)

[0.17]

47

Column Total: 33 60 30 18 141

(Gr

an

d

Tot

al)

The chi-square statistic is 13.8273. The P-Value is 0.031626. The result is significant at p < 0.05.

PEOPLE

Strongly

Agree

Agree Strongly

disagree

Disa

g

r

e

e

Row

To

tal

Accommodating

staffs

15 (26.33) [4

.88]

20 (15.67) [1

.20]

10 (4.33) [7

.41]

2 (0.

6

7

47


)

[

2

.

6

7

]

Security

measures

30 (26.33) [0

.51]

17 (15.67) [0

.11]

0 (4.33) [4.

33]

0 (0.

6

7

)

[

0

.

6

7

]

47

Good quality

and services

34 (26.33) [2

.23]

10 (15.67) [2

.05]

3 (4.33) [0.

41]

0 (0.

6

7

)

[

0

.

6

7

]

47

Column Total: 79 47 13 2 141

(Gr

an

d

Tot

al)

The chi-square statistic is 27.1358. The P-Value is 0.000137. The result is significant at p < 0.05.

C. Conclusion

As per the study it is analysed that consumers in the today’s market are more aware in the changes and

factors which is the five p’s of fast food chains industry having the frequency of visiting the fast food

outlets relates with the ages of the consumers as well as the income affects the spending habits of an

individual. Therefore the factors of five p’s of marketing giving great effect to the sales of the fast food

chain industry.

D. RECOMMENDATION

The researchers recommends that the fast food industry will need to focus on their product offering to

and develop product lines to meet the satisfaction of the consumers and to lead in increase of sales.


References

Bemmel Van J.H. (2002). Analysis of Sales Promotion on house hold purchase Behavior

Erasmus universities Rotterdam.

Erasmus Research Institute of Management

Borbon, R (2010). Analysis on the effectiveness of inventory methods used by selected

fast food chain in Metro Manila

Crisostomo, M.C. (2010) Effects on premium in sale of fast food along U-belt

Far Eastern University thesis 2010

Euromonitor. (November 2013)Fast food in the Philippines report

Report for consumer behavior 2013

Emmanuel, S.A, Miloslava, C. (1997) the behavior that consumers display in searching

for purchasing-

Department of Management and Marketing Faculty of Management and

Economics Tomas Bata University in Zlin. 1997

Documents

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