Consumer perception with regards to McDonald's

8/12/2019 Consumer perception with regards to McDonald's

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Consumer preference with respect to Quick Service Restaurant (McDonalds) in Bangalore North

RI M S, Bangalore Page 1

1. INTRODUCTION

Exhibit 1.1 McDonalds Restaurant at California

McDonalds is a leader in convenient foods and beverages, with revenues

of about $23 billion and over 1.6 million employees serving the

customers world wide. The company consists of the snack business of

Beverages and Foods. PepsiCo brands are available in nearly 115

countries having more than 24,500 restaurants in the world providing

24 hour service. Having about 1 billon customers to be served all over the

world

McDonaldss success is the result of superior products, high standards of

performance, distinctive competitive strategies and the high integrity of

the people working in McDonalds. McDonalds is continuing to expand

and introduce new alternative beverages in the market. Approximately

85% of McDonalds restaurant businesses world -wide are owned and

operated by franchisees .All franchisees are independent, full-time


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operators. McDonald s was named Entrepreneurs Number -one franchise

for 1997.

The mission of McDonalds is to be the world's premier C onsumer

Products Company focused on convenient foods and beverages.

McDonalds products are recognized and are most respected all around

the globe. Currently, its divisions operate in all over the world in

beverages, snack foods, and restaurants. The corporations increasing

success has been based on high standards of performance, marketing

strategies, competitiveness, determination, commitment, and the

personal and professional integrity of their people, products and business

practices. McDonalds believes their success depends upon the quality and

value of their products by providing a safe, whole some, economicallyefficient and a healthy environment for their customers; and by

providing a fair return to their investors while maintaining the highest

standards of integrity.

1.1 HISTORICAL BACKGROUND OF MCDONALDS

McDonalds is one of the leading restaurant chains in the world,

touching the lives of people everyday. The long journey of the burger

brand started in 1940, when two brothers, Dick and Mac McDonald

opened the first McDonalds restaurant in San Bernardino, California.


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Initially, they owned a hotdog stand, but after establishing the

restaurant they served around 25items, which were mostly barbequed.

It became a popular and profitable teen hangout. In 1948, the

brothers closed and reopened the restaurant to sell only hamburgers,

milkshakes and French fries.

As per the information of the McDona lds history, the major revenue

came from hamburgers, which were sold at a nominal price of 15

cents. The restaurant gradually became famous and the McDonald

brothers begin franchising their restaurant in the year 1953. The first

franchise was taken by Nei l Fox and under it; the second Mc Donalds

restaurant was opened in Fresno, California. It was the first to

introduce the Golden Arch design. The third and fourth restaurants

were opened in Saginaw, Michigan and Downey, California,

respectively.

The business began in 1940, with a restaurant opened by siblings Dick

and Mac McDonald in San Bernardino, California. Their introduction of

the "Speedee Service System" in1948 established the principles of themodern fast-food restaurant. The original mascot of McDonald's was a

man with a chef's hat on top of a hamburger shaped head whose name

was Speedee. Speedee was eventually replaced with Ronald

McDonald in 1963.


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The present corporation dates its founding to the opening of a

franchised restaurant by Ray Kroc, in Des Plaines, Illinois on April 15,

1955, the ninth McDonalds restaurant overall. Kroc later purchased

the McDonald brothers equity in the company and led its world wide

expansion and the company became listed on the public stock markets

in 1965. Kroc was also noted for aggressive business practices,

compelling the McDonald brother have to leave the fast food industry.

The McDonalds Brothers and Kroc feuded over control of the business,

as documented in both Krocs autobiography and in the McDonald

brothers autobiography. The site of the McDonald brothers original

restaurant is now a monument.

With the expansion of McDonalds into many international markets,

the company has become a symbol of globalization and the spread of

the American way of life. Its prominence has also made it a frequent

topic of public debates about obesity, corporate ethics and consumer

responsibility.

1.2 Timeline

1955 Ray Kroc opens his first restaurant in Des Plaines, Illinois and

the McDonalds Corporation is created.

1957 Quality, Service, Cleanliness and Value (QSC&V) becomes the

company motto.


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1959 The 100 th McDonalds open in Chicago.

1961 - Hamburger University opens in Elk Grove, near Chicago.

1963 One Billion hamburgers sold. Ronald Mc Donald makes his

debut.

1964 Filet - O- Fish sandwich is introduced.

1965 Mc Donalds Cooperation goes public.

1967 The first restaurant outside of the USA open in Canada and

Puerto Rico.

1968 The Big Mac is introduced. The 1000 th restaurant opens in

Des Plaines, Illinois.

1972 A new Mc Donalds restaurants open every day. The quarter

Pounder is introduced.

1973 Egg Mc Muffin is introduced.

1974 The first Ronald Mc Donald House opens in Philadelphia. The

Happy Meal is launched.

1983 - Chicken Mc Nuggets is introduced. 50 billionth hamburgers

sold.1984 Ronald MC Donald childrens charities is founded in Ray Krocs

memory to raise funds in support of child welfare.

1989 McDonalds is listed on the Frankfurt, Munich, Paris and

Tokyo stock exchanges.


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1990 Mc Donalds open in Pushkin Square and Gorky Streets

Moscow.

1993 The fist Mc Donalds at sea opens abroad the Silja Europe, the

worlds largest ferry sailing between Stockholm and Helsinki,

1994 Restaurants open in Bahrain, Bulgaria, Egypt, Kuwait, Latvia,

Oman, New Caledonia, Toinidad and United Arab Emirates,

bringing the total to over 15,000 in 79 countries.

1996 Mc Donalds opens in India the 95 th country.

The first McDonald's restaurant opened on Oct. 13, at Basant

Lok, Vasant Vihar, New Delhi. It was also the first McDonald's

restaurant in the world not serving beef.

1997 - The first Drive - Thru restaurant at Noida (UP). The firstdisabled friendly store at Noida (UP)

1999 - The first Mall location restaurant at Ansal Plaza (New Delhi)

2000 - The first highway restaurant at Mathura (UP)

2001 - The first thematic restaurant at Connaught Place (New Delhi)

2002 - The first restaurant in a food court at 3C's, Lajpat Nagar

(New Delhi). The first restaurant at the Delhi Metro Station at Inter

State Bus Terminus. The first annual fund raiser in association with

ORBIS and Dr.Shroff's Charity Eye Hospital.(Delhi)


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2003 - The first Dessert Kiosk - Faridabad (Haryana)

2003-04 - Indigenous products like McAloo Tikki, McVeggie and

Pizza McPuff exported to Middle East countries.

2004 - McDonald's Delivery Service (McDeliveryTM) introduced in

New Delhi.

2006 - McDelivery on Bicycles flagged off at Chandni Chowk (Delhi)-

another first initiative by McDonald's India100th McDonald's

Restaurant in India10 Year Anniversary.

2007 - The first Restaurant opened in the Eastern Region at Park

Street,Kolkata (West Bengal)The first Restaurant opened at

Airport.(Domestic Airport, NewDelhi.

Exhibit 1.2 Ray Kroc (Founder)


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2. COMPANY OVERVIEW

Headquarters

The McDonald's headquarters complex, McDonald's Plaza, is located

in Oak Brook, Illinois. It sits on the site of the former headquarters and

stabling area of Paul Butler, the founder of Oak Brook .[10] McDonald's

moved into the Oak Brook facility from an office within the Chicago

Loop in 1971.

Founder(s)

Richard and Maurice McDonald, McDonald's restaurant concept;Ray

Kroc, McDonald's Corporation founder.

Key People

Andrew J. McKenna (Chairman)

Don Thompson (President and CEO)

Exhibit 1.3 McDonalds Plaza, Oak Brook, Illinois
http://en.wikipedia.org/wiki/McDonald's#cite_note-10http://en.wikipedia.org/wiki/McDonald's#cite_note-10http://en.wikipedia.org/wiki/McDonald's#cite_note-10


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3. MCDONALDS INDIA AT A GLANCE

The golden arches of McDonalds are slowly becoming an integral part ofthe Indian landscapes. Everyone knows McDonalds is big, but very few

know just how significant its impact on Indian business really is.

Grand Opening; McDonalds opened its doors in India, the 95 th

country;in 1996 and was the first country to serve non-beef and

non-pork items. Its authority on non-beef and non-pork products

still remains unchallenged. Ever since then, the family restaurants

in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur,

Noida Faridabad, Doraha, Manesar and Gurgaon have proceeded to

demonstrate, much to the delight of all the customers, what the

McDonald's experience is all about.

Ownership; McDonalds India is locally owned company managed by

Indians in a 50-50 joint venture par tnership between McDonalds

Corporation[USA] and two Indians businessmen.

- Connaught Plaza Restaurants Pvt. Ltd in Northern and

Eastern Region (Headquartered in New Delhi) through a joint

venture; now managed by its Board of Directors.

- Smita Jatia, under Hardcastle Restaurants Pvt. Ltd in the

Western and Southern Region (Headquartered in Mumbai)

which is a DL (Development License)


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McDonalds Philosophy; McDonalds philosophy of QSCV (Quality,

Service, Cleanliness and Value) is the guiding force behind its service

to the customers in India. Today; Celebrating over 15 years of leadership in food service

retailing in India, McDonald's India now has a network of over 250

restaurants across the country. McDonald's India is a leader in the

food retail space, with a presence of more than 250 restaurants

serving more than 6.5 lakh customers daily in India .

Every McDonalds burger has nine different ingredients, which are

sourced, from 35 suppliers across the country before it reaches the

consumer.

3.1 McDonalds India.Culturally Sensitive

McDonalds worldwide is well known for the high degree of respect for

the local customs and culture. McDonalds has developed a menu

especially for India with vegetarian selections to suit Indian tastes and

preferences. Keeping in line with this, McDonald's does not offer any beef

or pork items in India . In the last decade it has introduced some

vegetarian and non-vegetarian products with local flavours that have

appealed to the Indian palate. There have been continuous efforts to

enhance variety in the menu by developing more such products.


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McDonald's has also re-engineered its operations repeatedly in its11

years in India to address the special requirements of a vegetarian menu.

Vegetable products are 100% vegetarian, i.e.

They are prepared separately, using dedicated equipment and

utensils.

Only pure vegetarian oil is used as a cooking medium.

Cheese and sauces are completely vegetarian and egg less.

Separation of vegetarian and non-vegetarian food products is

maintained throughout the various stages of procurement,

cooking and serving.

3.2 International Standards

McDonald's India's local suppliers provide them with the highest quality,

freshest ingredients. Complete adherence to the Indian Government

regulations on food, health and hygiene is ensured, while maintaining

their own recognized international standards. Fast, friendly service - the

hallmark of McDonald's restaurants the world over is the mantra we

abide them.

Stringent cleaning standards ensure that all tables, chairs, highchairs and

trays are sanitised several times each hour. Such meticulous attention to


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cleanliness extends beyond the lobby and kitchen to even the pavement

and immediate areas outside the restaurant.

3.3 McD Philosophy

"We take the burger business more seriously than anyone else." When

McDonald's founder, Ray Kroc made that memorable statement, he was

letting the world in on the philosophy and secret behind McDonald's

phenomenal success.

Their vision to be Indias "best " quick service restaurant experience is

supported by a set of principles and core values.

3.4 Bangalore North

In Bangalore north it serves in 8 places; New BEL Road, HSR

Layout, Orion Mall (Yeshwanthpur), Tumkur Road (Peenya

Industries), Esteem Mall (Hebbal), HRBR Layout (Kamannahalli),

Banaswadi, New Airport Road.

McDonalds is a chain of Fast Food Restaurants and has about 39

outlets in Bangalore. It is primarily known for its dishes like Masala

Grill Veg Meal, Masala Grill Chicken Meal etc. Apart from Fast Food

cuisine, it also offers other cuisines such as American and Desserts.


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The items that they sell in Bangalore North;

- McSpicy Chicken - Big Spicy Chicken wrap

- McSpicy Paneer - McChicken - Fliet-O-Fish - Chicken Maharaja Mac

- McVeggie - Big Spicy Paneer Wrap

- Masala Grill Chicken - Masala Grill Veg

- Chicken McGrill - McAloo Tikki

- McEgg - Chicken McNuggets

- Crispy Veggie Pops - Crispy Chicken Pops

- French Fries - Piri Piri Mix

- Desserts - Coke

Soft Serve

Chocolate Brownie

Mc Flurry

Mc Shakes

Coke Floats

As McDonalds is giving a tough competition to the restaurantspresent. Total of 1100 restaurants are present in North Bangalore

out of which; Delivery 602, Dine-Out 981, Night life 17

and Caf 61.

Mostly in nort Bangalore the cuisines offered are; Hyderabadi

Biryani, Chicken Ghee Roast with Neer dosa, Mutton Biryani.


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3.5 McDonalds Products


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Exhibit 3.1 McDonalds Products


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4. MCDONALDS MISSION AND VISION

4.1 McDonald s Vision

McDonald's vision is to be the world's best quick service restaurant

experience. Being the best means providing outstanding quality, service,

cleanliness and value, so that they make every customer in every

restaurant smile. To achieve their vision, they are focused on three

worldwide strategies:

1-Be the Best Employer:

Be the best employer for their people in each community around the

world.

2-Deliver Operational Excellence:

Deliver operational excellence to their customers in each of their

restaurants.

3-Achieve Enduring Profitable Growth:

Achieve enduring profitable growth by expanding the brand and

leveraging the strengths of McDonald's system through innovation and

technology.


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4.2 McDonalds Mission Statement

McDonald's brand mission is to be our customers' favourite place and

way to eat and drink. Our worldwide operations are aligned around a

global strategy called the Plan to Win, which centre on an exceptional

customer experience People, Products, Place, Price and Promotion. We

are committed to continuously improving our operations and enhancing

our customers' experience

4.3 Objectives

We are the worlds favorite restaurant because we givecustomers what they want great food and greatexperience.

McDonald's objective is to attain QSCV at all of its restaurants, where:

Q is Quality S is Service C is Cleanliness V is Value

Quality

Quality standards regarding each and every aspect of food and service

are documented, to provide consistency and to achieve the high level of

quality at all the McDonald's restaurants. It is due to documentation that

a consumer will get the same taste from a McDonald's whether he is in

New York or Moscow or in India.


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The raw materials acquired are required to pass a stringent specification

test about factors from the freshness to vitamins contained in them.

Then there is documented recipe and cooking requirement regarding

utensils to temperature.

Service

At McDonald's everyone serves quickly with a smile. There is less than a

minute the time the customer orders and the food served to him. Ifsomebody has any problem, it must be sorted before coming to the

counter. It is the McDonald's culture that the customer is doing them a

favour by being there and not the staff so he should be received and

returned this feeling the same way.

Cleanliness

McDonald's is cleanliness fanatic. There is even a joke that explains

McDonald's philosophy that, If there is the time to lean then there is

time to clean.

The restaurant is thoroughly cleaned and sanitized after the closure, the

cooking utensils are disassembled every night for washing and then

reassembled, and the floors, washrooms, etc. are cleaned every half

hourly during the restaurant timing.


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Value

McDonald's has an open-door culture; any employee can go to the

Restaurant Manager and can discuss any problem or new ideas for the

improvement of the restaurant. Nobody has any hang-ups; everybody

does everything.

McDonald's also believes in value to the customer, that is, why prices are

value oriented as Amin Mohammad Lakhani put it in his word;

nothing sells forever unless it is value for money.

4.4 McDonalds Services

It maintains Cost Leadership, i.e the firm provides the same or

similar services or products as other firms but does so at a lower

price.

It provides superior products at a similar cost to other firms

inferior products.

Customization of items. Quick service facility

Same taste throughout.

It provides meals specially for kids

Hangout with friends, but keep it affordable

-


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5. LITERATURE REVIEW

A review of literature involves a systematic identification, location,

scrutinizing and summary of written materials, containing information

on research problems. According to Polit and Beck a review of literature

is a written summary of existing knowledge on a research problem. In

depth study of any subject involves a systematic review and appraisal of

all the relevant scholarly literature and a specific topic. Literature related

to the consumer preference with respect to Quick Service Restaurants

with spe cial reference to McDonalds are presented under the following

categories.

Literature and studies related to the consumption of fast food in

India.

Literature and Studies related to the lifestyle of people in India.

Literature and studies related to the preference of consumers.

Food diversity in India is an implicit characteristic of Indias diversified

culture consisting of different regions and states within. Traditionally,

Indians like to have home-cooked meals a concept supported religiously

as well as individually. However, with times due to increasing awareness

and influence of western culture, there is a slight shift in food

consumption patterns among urban Indian families. It started with

eating outside and moved on to accepting a wide variety of delicacies


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from world-over. Liberalization of the Indian economy in the early

1990s and the subsequent entry of new players set a significant change

in lifestyles and the food tastes of Indians. Fast food is one which gained

acceptance of Indian palate after the multinational fast food players

adapted the basic Indian food requirements viz. vegetarian meals and

selected non-vegetarian options excluding beef and pork totally from

their menu. Multinational fast food outlets initially faced protests and

non-acceptance from Indian consumers. This was due to primary

perception that these fast food players serve only chicken and do not

serve vegetarian meals. In addition, fast food is perceived expensive

besides being out-of-way meals in Indian culture. Today, fast food

industry is getting adapted to Indian food requirements and is growing

in India. It is gaining acceptance primarily from Indian youth and

younger generations and is becoming part of life. Keeping in view the

Indian habits and changing preferences towards food consumption, this

study has its focus to understand the factors affecting the perception of

Indian youth, in the age group of 20-30 years, towards consumption offast food as well as towards making choice of fast food outlets.

Often you just think about fast food, and you would start salivating, this

show how big impact the media mass influence our mind regarding the

deliciousness of fast food. Everyone including adolescences seems to be


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enjoying it every chance they get. Fast foods are very appealing because

they are widely available and inexpensive. The usefulness of fast food

consumption and convenience of this phenomenon had made people

becoming depended on its function without realizing the possible effect or

dangerous that it could affect human health, financial and also lifestyle in

daily life.

In our research, one of major question that need to investigate is

related to factors that influences customers to consume fast food. There

are few factors that may influence factor to consume fast food such as

based on the emotional, economic, time management and lifestyle. By

using previously research, some factors may determine and be as

parameter to conduct other our research.

On one hand, Herman and Polivy, (1984) contradicts/protests

and emphasizes that the factor that influence of fast food consumption

based on residential areas. He observed that people who stay at the rural

areas are less consumed of fast food rather than people who stay at

urban area because urban/town residential areas are nearer by the fast

food restaurants. On the other hand, Drewnowski and Spectre,

(2000)contends that another factor that may influence consumption of

fast food is by socioeconomic status. There have totally difference between

people who have high wages with people who is have low wages in their


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life. Usually people who have low economic status, they more prefer to

choose food that something not has high nutrition, but more reasonable

and inexpensive price while wealthy person they prefer to choose branded

restaurants rather than realized the ingredients and nutrients contain in

the food.

Schlosser E. (2001) pointed out the most frequently reported

reasons for eating at fast-food restaurants were fast food is quick serve.

Laroche and Parsa (2000) agree with the Schlosser E and say that

people decide to choose fast food restaurant because they were worried

about time. To prepare homemade food, it may take much of time to

cook and serve it compared with taking fast food. Fast food restaurant

include a wide range of quick and fast service, brands and take onlyshort period to serve it. Consumer make their choice of brands in multi

brand situation is one of least understood yet important phenomenon in

the marketing of Quick Service Restaurant - Fast Food Restaurant.

French SA et al. (2001) summarizes this by saying some people have

other reason why they choose fast food restaurant as their primary

chosen to eat, because it is way to them spent their time with family,

friend or someone special. By along with eating at fast food restaurant

because they are quick and easy to get to, and also as a way of socializing

with friends and family.


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The liberalisation and globalisation of the industries backed by the

government in 1991 was also one of the reasons for the development of

the fast food industry as number of international retailers entered the

market thereafter. The major international players including Kentucky

Fried Chicken, McDonalds, Pizza Hit, Dominos entered the Indian market

in the last decade. Kumar and Basu (2008) stated that during evolution

in the presence of overseas companies in the market, the domestic

players too changed their business strategies in terms of offering new

menus at revised prices and many other service including entertainment,

change in store formats, opening of stores at a number of locations and

moreover providing food and services with the influence of western

culture.

The Indian fast food habits and the customer perception towards fast

food has noticed gradual shift in the recent years as the significant

portion of the population spent more money on eating fast food from the

domestic and international retailers in the market. The sector was once

unnoticed and merely had any existence in the food and hospitality

industry but recent findings suggested that there is huge potential in the

sector as the growth rate was recorded above 30% in the recent years

(Ali et al. 2010).


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5.1 LITERATURE AND STUDIES RELATED TO THE

CONSUMPTION OF FAST FOOD IN INDIA

Fast food

From onion rings to double cheeseburgers, fast food is one of the worlds

fastest growing food types. Fast foods are quick, reasonably priced, and

readily available alternatives to home cooked food. While convenient and

economical for a busy lifestyle, fast foods are typically high in calories,

fat, saturated fat, sugar, and salt[1]. Many other definitions are

proposed for fast foods in the literature. A few of these are mentioned

below:

. Definition 1. Fast food have been defined by Bender and Bender (1995)as a general term used for a limited menu of foods that lend themselves

to production-line techniques; suppliers tend to specialize in products

such as hamburgers, pizzas, chicken, or sandwiches.

. Definition 2. In Data Monito rs (2005) survey the fast food market is

defined as the sale of food and drinks for immediate consumption either

on the premises or in designated eating areas shared with other

foodservice operators, or for consumption elsewhere.


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.Definition 3[2]. As per the free dictionary fast food is inexpensive

food, such as hamburgers and fried chicken, prepared and served

quickly.

. Definition 4[3]. According to Merriam-Webster online dictionary fast

food is designed for ready availability, use, or consumption and with

little consideration given to quality or significance.

Fast food is a very fast growing industry in world as well as in Indiaespecially in urban areas (small and large cities). However, not much

research literature is available on fast food pref erences of consumers

especially young consumers in India. This article that is based on an

exploratory study is an effort to fill that gap in the literature in the

context of North India

Fast food also known as Quick Service Restaurant or QSR is the term

given to food that can be prepared and served very quickly. While any

meal with low preparation time can be considered to be fast food,

typically the term refers to food sold in a restaurant or store withpreheated or precooked ingredients, and served to the customer in a

packaged form for take-out/take-away.

The term fast food was recognized in a dictionary by Merriam -

Webster in 1951. Outlets may be stands or kiosks, which may provide no

shelter or seating, or fast food restaurants also known as quick service


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restaurants. Franchise operations which are part of restaurant chains

have standardized foodstuffs shipped to each restaurant from central

locations. Restaurants with much higher sit-in ratios, where customers

tend to sit and have their orders brought to them in a seemingly more

upscale atmosphere may be known in some areas as fast casual

restaurants.

Today world is very fast paced and is getting even faster by the

minute. Fast-food nutrition makes it possible to keep up with this speed-

of-sound lifestyle. A lot of people lead busy lifestyles. The main function is

to give fast food is to give someone a quick and easy fix or alternative to

cooking at home when they are need of something to eat in a hurry.

Another function of fast food is to give people a good bang for their buck.It is rather inexpensive and portions are more than sufficient.

A study on Socio-cultural and Nutritional Aspects of Fast Food

Consumption among Teenagers and Youth was conducted during March

to June 2003 in Allahabad City of Uttar Pradesh, India. Samples from

four restaurants were selected by stratified random sampling technique.

Within each selected restaurant a sample of minimum 30 fast food

consumers aged 15-25 years was selected by systematic sampling

technique on a randomly selected day that was not a special occasion

such as fast or festival. The researcher concluded that majority of fast


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food consumers (68.3%) belonged to age group of 18-21 years. 30% of

Adults are less conscious about their health. Majority 80% of adults like

to have a fast food in their areas where they live.

5.2 LITERATURE AND STUDIES RELATED TO THE LIFESTYLE

OF PEOPLE IN INDIA

With todays hectic lifestyles, timesaving products are increasingly in

demand. Perhaps one of the most obvious examples is fast food. The rate

of growth in consumer expenditures on fast food has led most other

segments of the food-away-from home market for much of the last two

decades. Since 1982, there is growth rate in consumer spending at fast

food.

Now people want quick and convenient meals, they do not want to

spend a lot of time preparing meals, travelling to pick up meals or

waiting for meals in restaurants. That result, consumers rely on fast food.

Knowing this fast food providers are coming up with new ways to

market their products that save time for consumers. The rapid rate at

which the fast food industry continues to add outlets is as much a

reflection of consumer demand for convenience as it is a reflection of

demand for fast food itself. Expanding the number of outlets increases

accessibility, thus making it more convenient for consumers to purchase


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fast food. Rising incomes, longer workdays, and a growing tendency for

both spouses to hold full-time jobs are widely credited. This trend rise in

a way from home expenditures to fast food especially benefits from these

trends. The fast food industry focuses heavily on rapid consumer

turnover, speed of service, and take-out sales. Most fast food chains

emphasize convenience and low prices by offering a narrow range of

menu items. In the fast food industry, the critical success factors are:

Location, Menu, Price, Ambience, Taste, Quality, and Service.

The food intake of the people of any country is related to a

number of factors like income of consumers, employment status,

educational level and cultural differences (Dowler, 2001). Due to global

change the lifestyles of people change gradually, they spend more moneyon fast food rather than spending on higher education, computers, books,

magazines, newspapers, videos and recorded music (Schlosser, 1998).

Fast foods have been defined by Bender an d Bender (1995) as Fast food

is broad term used for a restricted menu of food that lend themselves to

production techniques, suppliers tend to specialize such as hamburger,

pizza, chicken and sandwiches. Definition of the fast food in a book by

Lundberg is Fast food means quick service - the food already prepared

and held limited menu items and no table service (Lundberg, 1984).

The sheer size of the fast food enterprise guarantees that it has a


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considerable influence on the eating habits of large segments of the

population.

The use of technology has increased the growth of the fast food

industry, as McDonalds has increased their budget for the TV

advertisements, and as result led to increase in the sale (Harris, Schwartz

et al. 2010). Poultry meat (One of the key ingredients used in the fast

food industry) quality assurance is the very key and primary issue for the

fast food industry. Fast food has a large social effect on the life of the

people; it is found to be the one of the most important factor in the

increasing obesity rate in the young generation (Bowman, Gortmaker et

al. 2004). Due to the advancement in the technology the fast food is now

available at more convenient places and at the more convenient price.The industry is increasing at a rapid rate; it is also producing consequent

impact on the social, political, economical aspects of the life.

5.3 LITERATURE AND STUDIES RELATED TO THE

PREFERENCE OF CONSUMERS

An exploratory study on Consumer perception about fast food in

Bangalore in India was conducted. The study was to estimate importance

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

consumers. The study applied multivariate statistical tools to estimate


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importance of various factors affecting the choice of fast food outlets by

Indian young consumers. Results indicated that the young India consumer

has passion for visiting fast food outlets for fun and change; they have

the highest value for taste and including quality nutritional values

followed by ambience and hygiene.

In todays world of competitive offerings, diversity of consumer

preferences and proliferation of brands, consumer behaviour has become

extremely important for marketing decisions, be it marketing mix

elements, segmentation changes or exploring new dimensions in

consumer behaviour in a changing environment. 1

It is expected that consumer preferences are formed towards

certain brands early in childhood and result in adult loyalty. This is

especially relevant in a market scenario like that of the Indian Market

where there were only few brands before the markets were opened up

for competition about fifteen years ago.

McDonald as a brand named after their founders have succeeded eventhough they did not hold out a benefit. Salient attributes in a product

category are recalled better. Hence marketers need to research on them

for a given target segment for consumers. This depend on the goal of

1 S.Ramesh Kumar, Consumer Behavior and Branding


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consumers have while choosing a product service. McDonald, the world

over, is associated with fast food, good value, convenience and hygiene.

McDonalds decided not to use Ronald McDonald in its

advertisements for the West Asian market because it failed religious

consumers may avoid the trendy and zany model

Differences across cultures have a number of implications for the

marketer. McDonald, in India, does not use beef in some of the popularitems on its menu as cows are sacred to a large section of Indian

consumers.

From foods and cosmetics to durable products like automobile and

watches, consumers employ emblems to reflect their social status to infer

the status of others. Fast food and trendy restaurants like McDonald,

Pizza Hut are associated with the young and the fashionable.

Involvement in work : Contemporary consumers now break away

from traditional work practices and are involved in high-tension, fast-

paced jobs. The experience time pressure and hence prefer time-

compression or convenience products. A variety of retail outlets across

product categories have emerged in the context, fast food restaurants

like McDonald in petrol bunks are one of the example. 2

2 S. Ramesh Kumar, Consumer Behavior and Branding


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Another aspect to consider is the various dimensions that a specific

consumer segment might be interested in, when it comes to a retail

outlet. There may be few situations in which the retail outlet may cater

to a broad segment. This happens when an outlet, as a brand, appeals to

a big segment. A typical example is of McDonald outlets all over the

world. McDonald is known all over the world for its VALUE,

CLEANLINESS, CONSISYTENCY and CONVENIENCE. These expectations

have been built over a period of time, and hence, it draws consumers

from all income, age and life style groups. The brand, even today offers a

variety, which appeals to distinctive segments.

There may also be psychological factors like trust, peace of mind,

reassurance and risk reduction, which may have a pronounced impact onbrand loyalty. The consistency associated with the benefits of repeat

purchase may also be contributed to psychological factors associated with

the loyalty. A consumer who consistently gets good food and positive

experience at a McDonalds outlet becomes loyal to the brand and may

patronise the brand in several countries.


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5.4 FACTORS INFLUENCING CONSUMER BEHAVIOUR

Consumer behaviour is the study of how individuals, groups and

organizations select, buy, use and dispose of goods, services, ideas, or

experiences to satisfy their needs and wants. 3

A consumers buying behaviour is influenced by cultural, social and

personal factors. Cultural factors exert the broadest and deepest influence

Exhibit 5.1 Factors Influencing Consumer Behaviour

While making a decision to visit McDonalds all these factors play an

important role and influences their decision making.

3 Kotler, Keller,Koshi and Jha, Marketing Management


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a) CULTURE

Culture, subculture and social class are particularly important

influences on consumer buying behaviour. Culture is the

fundamental determinant of a persons wants and behaviour. The

growing child acquires a set of values, perceptions, preferences and

behaviours through his or her family and other key institutions. A

person residing in United States would not hesitate in eating beef

and pork burgers offered by McDonalds but a person in India

would not prefer eating beef and pork products because thats

against their cultural values.

Each culture consists of smaller subcultures that provide more

specific identification and socialization for their members.

Subcultures include nationalities, religions, racial groups and

geographical regions.

Social classes are relatively homogeneous and enduring divisions in a

society, which are hierarchically ordered and whose members share

similar values, interests and behaviours. 4 b) SOCIAL FACTORS

A persons reference groups are all the groups that have a direct

(face-to-face) or indirect influence on their attitude and behaviour.

Some of these are primary groups with whom the person interacts



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fairly continuously and informally, such as friends, family,

neighbours and co-workers and secondary groups such as religious,

professional and trade union groups which tend to be more formal.

Family is the most important consumer buying organization in

society, and family members constitute the most influential

primary reference group. Family can be sub-divided into two

parts- The Family Of Orientation consist of parents and siblings

from whom a person acquires an orientation towards religion,

economics and sense of personal ambition, self-worth and love. A

more direct influence on everyday buying behaviour is the Family of

Procreation- namely ones spouse and children.

c) PERSONAL FACTORS

A buyers decisions are also influenced by personal characteristic.

Age and stage in the life cycle People buy different goods and

services over a lifetime. Taste in food, clothes, furniture and

recreation is often age related. For instance, youngsters mostly

prefer going to McDonalds because of their eating habits. 5 Occupation and Economic Circumstances Occupation also influences

consumption patterns. Product choice is greatly affected by

economic circumstances: spendable income (level, stability and time



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pattern) savings and assets (including the percentage that is liquid),

debts, borrowing power, and attitudes toward spending and saving.

Personality and Self-Concept Each person has personality

characteristics that influence his or her buying behaviour.

Personality means a set of distinguishing human psychological traits

that leads to relatively consistent and enduring responses to

environmental stimuli (including buying behaviour). it is often

described in terms of traits as self-confidence, dominance,

autonomy, deference, sociability, defensiveness and adaptability.

Lifestyle and Values People from the same subculture, social class

and occupation may lead different lifestyles.

A lifestyle is a persons pattern of living in the world as expressed

in activities, interests and opinions. it portrays a whole person

interacting with his environment.

d) PSYCHOLOGICAL FACTORS

Perception is the process by which we select, organize and interpret

information inputs to create a meaningful picture of the world. Inmarketing, perceptions are more important than the reality, as it

is perceptions that will affect consumers actual behaviour. People

can emerge with different perceptions of the same object.

Learning includes changes in our behaviour arising from experience.

Most human behaviour is learned, although much learning is


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incidental. Learning theorists believe that learning is produced

through the interplay of drives, stimuli, cues, responses and

reinforcements.

Memory All the information and experiences we encounter as we

go through life can end up in our long- term memory. Cognitive

psychologists distinguish among Short-term memory- a temporary

and limited repository of information and Long-term memory- a

more permanent, essentially unlimited repository. 6

5.5 MCDONALDS PRICING REMINISCES MEMORY

Marketers sometimes use nostalgia to drive a point. In a price sensitive

market like India, McDonalds has been focusing on the price point very

aggressively. One of the platforms through which it emphasizes the price

point is the throwback days of reduced prices. The range of products it

offers like, Burgers, Ice-cream, Drinks, McPuff, etc. all at the rupees 20

price point. This reinforced through the series of advertisements,

commercials and in-store publicity that the company deploys to highlight

the price platform.

A popular television commercial of a retired army officer who visits a

McDonald store and after listening to the prices of the burger; he is



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quickly transformed to his active days and starts giving orders as if on a

battle field. He also takes out a photograph of his heydays when in the

service and the caption, Ho Gayi Purani Yaadein Tazaa , typifies the

days of the lower prices. In fact, what is even more synchronic about the

series are the link they finally establish to the global positioning of the

brand, Im Lovin It.

The McDonalds Happy Price Menu is also a part of their global plank,

with an adaptation in the communication. The series also has other such

related situations where yesteryears film stars are also showcased in their

popular characters (like a Dilip Kumar look alike in the garb of Salim) to

highlight the platform of Ho Gayi Purani Yaadein Tazaa.

The campaign has been successful in creating appeal in the urban youth

in the age group of 18-25 years. For the years it has a separate set of

communication promoting merchandise and toys, which is run

separately. In essence therefore the plank works successfully with the

bisection of consumers, who perceive McDonalds to be expensive and on

the other hand the youths in schools and colleges, eating out, can explore

McDonalds as an option.

Whats driving the popularity of nostalgia marketing? Consumers in

todays fast paced, information -intensive age are feeling overwhelmed by

the new and unfamiliar, which leaves them more receptive to familiar


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products, songs and images. Reminders of familiar offerings can also

enhance brand awareness and brand knowledge because consumers

already have a rich storehouse of personal experiences associated with

these offerings in memory. Many of these memories reflect a quieter,

more peaceful time. Hearing the name of an old product, seeing an old

ad, or hearing an old jingle reminds consumers of their positive feelings

about this earlier time and generates positive attitudes towards both the

ad and the advertised brand. 7

Exhibit 5.2

McDonalds usesprice points to push their products. The low pricing is a metaphor to

the golden days, when prices of all products were very low and a discerning customer is

forced to take a walk back on memory lane.

7 Hoyer, Maclnnis & Dasgupta, Consumer Behaviour


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5.6 MCDONALDS INDIA: I AM LOVING IT

On McDonalds launch in India during 1996 its North Zone Managing

Director, Vikram Bakshi quoted on being asked whether the menu will be

altered to suit the Indian palette: We will surely take into consideration

the Indian requirements and the variety of vegetarian dishes will be part

of our regular course. Circa 2006 and acco rding to Vikram Bakshi, it

was necessary to adapt the companys offerings while keeping the core

brand values consistent across cultures. The menu h as evolved over the

years as a result of constant innovation and our customers needs, says

Bakshi. Local creations like McAloo Tikki Burger, Curry Pans, Wraps

Pizza, McPuff, and McVeggie are established departures from what we

had in our introductory r estaurant offerings. Today 70% of our menu is

Indianised, and the McAloo Tikki Burger is our highest selling product.

While the menu maybe different in some ways, the McDonalds experience

around the world is consistent, offering quality, great service, cleanliness

and value.

The complete reversal of statement is not what Bakshi would have really

thought when McDonalds launched in India. The brand and the products

were familiar to most Indians but the platter it offered had to suit the

Indian taste. India is the worlds vegetarians paradise. Nearly all of the 1

billion people living here eat meat only occasionally, or not at all. Beef


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never shows up on the menu. India is a home to Hindu religion, which

preaches non violence. Believers fear the karmic consequences of harming

other creatures. McDonalds is the only chain in India, which does not

serve beef and pork. Most menus are vegetarian and there are a few,

which have been developed suiting the Indian taste and palette.

The US based fast food giant, McDonalds success in India had been built

on 4 pillars: Limited menu, Fresh food, Fast service and Affordable price.

Intense competition and demand for a wider menu drive-through and

sit-down meals encouraged the fast food giants to customize product

variety without hampering the efficacy of its supply chain.

This example illustrates several diversity influences that affect consumer

behaviour. In a culturally heterogeneous market lie India, McDonalds

attempt to offer a unique platter that caters to a Pan India taste is

pioneering and focuses on how global companies can adapt themselves to

local needs and tastes. In the McDonalds example the attempt was not

just to offer a localised menu, but issues like fresh food, fast service and

affordable price were well addressed too. Finally, consumer behaviour can

vary among sub-groups of individuals with unique patters of ethnicity

and religion, due to different traditions, customs and preferences.

Clearly, to develop and implement effective marketing strategies and


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tactics companies must understand how these diversity influences affect

consumers.8

Exhibit 5.3 FOCUSING ON THE INDIAN PALETTE

McDonalds local creation like McAloo Tikki Burger , Curry Pans, Wraps

Pizza Mcpuff and McVeggie are a favourite with the consumers.

8 Hoyer, MacInnis & Dasgupta, Consumer Behaviour


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6. CUSTOMER ANALYSIS

SegmentationThe customers of McDonalds have been segmented on the basis of AIOD

into four categories, based on the product attributes that fulfil needs like

fast food, ambience, status symbol and hygiene .

Activities Interests Opinions Demographics

1 Fast Food

Student,Working,Adventurous,Energetic

Sports,Entertainment,fashion, music,Recreation

Influenced bypeer pressure,Energetic,Impulse buying

Age: 16-24years old.Marital status:Single; Heavyusers

2 Ambience Student,working/selfmadebusinessmen;working onprojects.

Entertainment,Recreation,Fashion,Music,Socialization.

Ambitious,Futurebusiness andsocial issues,Politics.

Age: 20-35 yrsold. Maritalstatus: Singleand Married.Light tomedium users.

3 StatusSymbol

Student,working;Hanging out,Adventurous.

Sports,Entertainment, Fashion,Music,Recreation.

Energetic,Impulsebuying,influenced bypeer pressure.

Age: 16-25 yrsold. Maritalstatus: Single;light to mediumusers

4 Hygiene Workingwomen/men,house-wives;Shopping,

Clubmemberships.

Home,Recreation,shopping,Fashion,

Plannedpurchasing,Authoritarian,Strong views,

Politics,Futurebusiness andSocial issues.

Age: 25-45 yrsold; Maritalstatus: Newlymarried, Full

Nest; Lightusers


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1) FAST FOOD:

This segment of customers enjoys the Quick Service Restaurant

(QSR) facet of McDonalds and has its needs fulfilled. Since

McDonalds competes rigorously in the market on the quick delivery

attribute, the customers expect their food to be delivered to them

fast, both at the outlet, and at home (home delivery). A large

majority of this segment is composed of students whose activities

are adventurous, enthusiastic, energetic, and recreational and

revolve around sports, clubs, hangouts and shopping etc. This

segment thus targets the market that indulges in impulse buying

and is influenced by peer-pressure. These customers are heavy user

of the product at hand. A minority of newly working people are

also included in this segment.

2) AMBIENCE:

This segment enjoys the unique ambience provided by McDonalds.

Since the regular consumers of this product belong to the upper-middle class, they prefer having a meal with the level of customer

service and a tinge of sophistication that the outlets provide. The

customers of this segment are students as well as working class.

These people enjoy recreation and socialization activities. They have


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strong views about the current affairs and the future business and

social issues.

3) STATUS SYMBOL:

The people of this segment perceive the use of this product as a

status symbol and basically comprise students and new-working

class. These customers like being seen at the right places and like to

associate and socialize with people of the same class. These

customers are enthusiastic about entertainment, fashion, music and

sports. They have fickle opinions and subject to change because of

peer pressure. They follow fads and indulge in impulse buying.

4) HYGIENE:

This segment comprises people who are concerned with hygiene

and how the food is prepared and served and also the cleanliness of

the environment where they eat. It comprises of middle-aged

people mostly housewives and working women/men. These are lightusers and make purchases once in a while, probably as a substitute

rather than a first-choice.


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7.3 Statement of Problem

My dissertation is on the topic Consumer Preference towards

McDonalds. It talks about the fast food sector to which McDonalds

belongs and consumer satisfaction and preference towards

McDonalds outlets in Bangalore North.

As a part of the research work I am trying to understand the

customers satisfaction level and pr eference which can fulfil all the

customers needs, buying behaviour of people living in North

Bangalore.

7.4 Sources of Data

Primary sources : The primary data is collected through

questionnaires. They were filled using the scheduled

method of data collection by the researcher.

Focused Group: A FGD of 6 people was conducted. It consisted of

people between the ages of 25 35 with 3 males

and 3 females. The objective of the discussion was

to understand the attributes that the customers

of McDonalds products values and to know their

perceptions about various brands.


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Secondary sources: The secondary sources were used only for

collecting information regarding the sample and

literature survey like Internet, Books, Journals,

newspaper etc.

7.5 Sampling Unit

Samples for the study consisted of youth segment and the middle-

aged that falls between 25 35 yrs. Convenience samples were

drawn from Bangalore North region among the college students

and office going people. It was a random selection of individuals

from a large number of customers at the fast food outlets. This

segment of population was selected due to their adoption of

modern lifestyle pattern inclined towards eating and socializingwith friends and family.

7.6 Sample Size

Since it is an exploratory study, a sample size of 120 thought to be

adequate one. Accordingly 120 respondents from the target

population were approached to fill in the questionnaire. Out of 120

only 100 responden ts accepted McDonalds in Bangalore North.


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7.7 Limitations of the Research

The limitations of the research were as follows:

1) Lack of proper experience on the part of the researcher in

conducting such studies in the past.

2) The time period for carrying out the research was short as a result

of which many facts have been left unexplored.

3) The area for study which is quite a large area to judge out the

consumer preferences

4) Only 120 respondents have been chosen which is a small number

to represent the whole of the population.

5) While collection of the data many consumers were unwilling to fill

the questionnaire.

6) Many of the respondents did not fill the questionnaire properly.

7) Method of sampling is chosen which seems not to be appropriate.

7.8 Tools Used:

Percentage Analysis;

Pie Charts


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8. DATA ANALYSIS AND INTERPRETATION

1. What is your Gender? Male/FemaleGender

Particulars Respondents %age

Male 80 66.67

Female 40 33.33

Total 120 100.00

Table 8.1- REPRESENTATION OF GENDER

Figure 8.1- GENDER

Description: Based on the analysis of data it can be said that more

number of males visits McDonalds as compared to the females but that

does not make a significant difference.

67%

33%

Gender

Male

Female


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2. Which age group do you belong?

Age


15-19 0 0.00

20-24 28 23.33

25-29 20 16.67

30-34 40 33.33

35-39 12 10.00

>40 20 16.67

Total 120 100.00

Table 8.2- AGE GROUP

Figure 8.2- AGE GROUP

Description: From the above data we can conclude that the age group

between 30-34yrs are the people who visit McDonalds more. This age

group falls into Family Unit category who come to McD for their family

and also that coming to McD is a way of showing their status to the

society.

0%

23%

17%

33%

10%

17%

Age

15-19

20-24

25-29

30-34

35-39

>40


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3. How often you visit McDonalds?

VisitParticulars Respondents %age

Once or twice in a month 84 70.00

3-4 times in a month 16 13.33

More than 4times in a

month 16 13.33

Never 4 3.33

Total 120 100.00

Table 8.3- VISIT TO McDONALD'S

Figure 8.3- VISIT TO McDONALDS

Description: From the above percentage analysis it is clear that Young

consumers of fast foods visit fast food outlets one to two times in a

month. It is not a regular behaviour of their eating habits.

70%

14%

13%

3%

Visit to Mcdonald's

Once or twice in a month

3-4 times in a month

More than 4times in amonth

Never


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4. When you hear the word Burger does McDonalds come

in your mind?

Burger


Yes 72 60.00

No 16 13.33

Sometimes 32 26.67

Total 120 100.00

Table 8.4 - McDONALD'S BURGER

Figure 8.4- McDONALD'S BURGER

Description: As we can see in 60% of cases people attach the word burger

with McDonalds. That is quite a good response in favour of McDonalds.

60%13%

27%

Word "Burger"

Yes

No

Sometimes


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5. Which is your favourite product at McDonalds?

Fav product at McD


Mc Spicy Chicken 32 26.67

Chicken Mc Grill 44 36.67

Mc Spicy Paneer 4 3.33

Mc Egg 8 6.67

French Fries 28 23.33

Dessets 4 3.33

Total 120 100.00

Table 8.5- FAVOURITE PRODUCT AT McDONALD'S

Figure 8.5- FAVOURITE PRODUCT AT McDONALD'S

Description: Seeing the above data we can say that mostly people prefer

Non- veg items in McD and the products which are liked the most are

Chicken Mc Grill followed by Mc Spicy Chicken and French Fries.

27%

37%3%

7%

23%

3%

Fav product at McDonalds

Mc Spicy Chicken

Chicken Mc Grill

Mc Spicy Paneer

Mc Egg

French Fries

Dessets


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6. Is the product line in McDonalds adequate?

Product line in McD


Yes 64 53.33

No 4 3.33

It's Okay 52 43.33

Total 120 100.00

Table 8.6- PRODUCT LINE IN McDONALD'S

Figure 8.6- PRODUCT LINE IN McDONALD'S

Description: According to most of the people the product line in McD is

adequate but still few had a neutral reaction towards it.

54%

3%

43%

Product line in McDonalds

Yes

No

It's Okay


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7. Suitable timing for visiting McDonalds?

Timing for Visit


Morning 0 0.00

Afternoon 28 23.33

Evening 92 76.67

Total 120 100.00

Table 8.7- TIMING FOR VISIT TO McDONALD'S

Figure 8.7- TIMING FOR VISIT TO McDONALD'S

Description: Above results indicates that going for snacks in the evening is

most preferred time for visiting fast food outlet followed by lunch time

that is afternoon.

0%

23%

77%

Timing for Visit to McDonalds

Morning

Afternoon

Evening


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8. Do you like to visit McDonalds with?

Visit McDonalds with


Family 52 43.33

Friends 48 40.00

Couple 12 10.00

Alone 8 6.67

Total 120 100.00Table 8.8- VISITING McDONALD'S WITH

Figure 8.8- VISITING McDONALD'S WITH

Description: Mostly people prefer going to McDonalds with their friends

and family and spending time with them.

43%

40%

10%

7%

Visit Mcdonalds With

Family

Friends

Couple

Alone


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9. What is the reason for preferring McDonalds?

Reasons for preferringMcDonalds


Price 36 30.00

Accessibility 8 6.67

Food quality 44 36.67

Advertisement 8 6.67

Ambience 24 20.00

Total 120 100.00

Table 8.9- REASONS FOR PREFERRING McDONALD'S

Figure 8.9- REASONS FOR PREFERRING McDONALD'S

Description: The percentage analysis indicates that food taste and quality

has highest importance in the mind of fast food consumers while

selecting a fast food outlet for outings followed by price, ambience and

location of the outlet.

30%

7%

36%

7%

20%

Reasons for preferring McDonalds

Price

Accessibility

Food quality

Advertisement

Ambience


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10. Rate the following questions:

{1= Strongly disagree 2= Disagree 3= Neutral 4=

Agree 5= Strongly agree }

a) The service rendered by McDonalds is the best as

compared to other fast food chains.

Services rendered by McD


Strongly disagree 8 6.67

Disagree 4 3.33

Neutral 44 36.67

Agree 52 43.33

Strongly agree 12 10.00

120 100.00

Table 8.10.a - SERVICE AT McD

Figure 8.10.a - SERVICE AT McD

Description: According to 43% of the people the service rendered by

McDonald is best as compared to other fast food restaurants.

7%

3%

37%43%

10% ServiceStrongly disagree

Disagree

Neutral

Agree

Strongly agree


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b) The design of facilities inside McDonalds. Ex- Chairs,

tables etc are good.

Design of Facilities in McD


Strongly

disagree 4 3.33

Disagree 16 13.33

Neutral 12 10.00Agree 80 66.67


Total 120 100.00

Table 8.10.b- DESIGN OF FACILITIES IN McD

Figure 8.10.b- DESIGN OF FACILITIES IN MCD

Description: Most of the people rated the design of facilities inside

McDonalds as good.

3%

13%

10%

67%

7%

Design of facilities in McD

Strongly disagree

Disagree

Neutral

Agree

Strongly agree


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c) You spend more time in McDonalds as compared to

Pizza Hut or KFC.

Spending more time in McD


Strongly

disagree 12 10.00

Disagree 20 16.67



120 100.00

Table 8.10.c- SPENDING MORE TIME IN McD

Figure 8.10.c- SPENDING MORE TIME IN McD

Description: Based on the multiple answer questions, it can be inferred

that people spend more time in McD though the much favoured answer

was neutral followed by agree.

10%

17%

36%

27%

10%

Spending more time in McD

Strongly disagree

Disagree

Neutral

Agree

Strongly agree


67/92



d) The prevailing environment in McDonalds is Hygienic.

Hygiene in McD


Strongly

disagree 4 3.33

Disagree 8 6.67

Neutral 20 16.67

Agree 52 43.33


120 100.00

Table 8.10.d- HYGIENE IN McDONALD'S

Figure 8.10.d- HYGIENE IN McDONALD'S

Description: The above set of results indicates that young consumers are

very particular about hygiene factor of fast food outlets. The consumers

rated hygiene factor very high with 43%.

3%

7%

17%

43%

30%

Hygiene in McD

Strongly disagree

Disagree

Neutral

Agree

Strongly agree


68/92



e) Food of McDonald is delicious.

Deliciousfood


Strongly

disagree 8 6.67

Disagree 4 3.33

Neutral 20 16.67

Agree 68 56.67


120 100.00

Table 8.10.e- DELICIOUS FOOD

Figure 8.10.e- DELICIOUS FOOD

Description: Most of the people agreed that the food of McDonalds is

delicious.

7%3%

17%

56%

17%

Delicious Food

Strongly disagree

Disagree

Neutral

Agree

Strongly agree


69/92



f) McDonalds serve healthy food.

Healthy food in McD


Strongly

disagree 8 6.67

Disagree 4 3.33

Neutral 40 33.33

Agree 52 43.33


120 100.00

Table 8.10.f- HEALTHY FOOD IN McDONALD'S

Figure 8.10.f- HEALTHY FOOD IN McDONALD'S

Description: As people nowadays give much importance to health factor

so on the basis of results we can say that the food of McDonalds is

healthy.

7%3%

33%

44%

13%

Healthy Food in McD

Strongly disagree

Disagree

Neutral

Agree

Strongly agree


70/92



g) McDonalds provide a sufficient variety of food to

vegetarians.

Sufficient variety for Vegetarians


Strongly

disagree 12 10.00

Disagree 12 10.00



120 100.00

Table 8.10.g- SUFFICIENT VARIETY FOR VEGETARIANS

Figure 8.10.g- SUFFICIENT VARIETY FOR VEGETARIANS

Description: Most of the people agreed that McDonalds provide a

sufficient variety of food to vegetarians thus breaking the myth that

most fast food chain serves non-vegetarians more.

10%

10%

23%54%

3%Sufficient variety for vegetarians in

McDStrongly disagree

Disagree

Neutral

Agree

Strongly agree


71/92



h) McD charges nominal price for the products.

Nominal price at McD


Strongly

disagree 8 6.67

Disagree 16 13.33

Neutral 28 23.33

Agree 52 43.33


120 100.00

Table 8.10.h- NOMINAL PRICE AT McDONALD'S

Figure 8.10.h- NOMINAL PRICE AT McDONALD'S

Description: As compared to other fast food restaurants McD charges a

nominal price for the products and service it offers.

7%

13%

23%44%

13%

Nominal price at McD

Strongly disagree

Disagree

Neutral

Agree

Strongly agree


72/92


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j) The logo of the McDonalds is sharp enough for you to

recognize the location of the branch.

Logo of McDonalds


Strongly

disagree 8 6.67

Disagree 4 3.33

Neutral 4 3.33

Agree 40 33.33


120 100.00

Table 8.10.j- LOGO OF McDONALD'S

Figure 8.10.j- LOGO OF McDONALD'S

Description: It is very important to locate and recognize the place in

order to avail its services. Thus maximum people strongly agree that the

Golden Arches of McDonalds is sharp enough for people to recognize the

location of the branch.

7%3%

3%

33%54%

Logo of McDonalds

Strongly disagree

Disagree

Neutral

Agree

Strongly agree


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11. Reasons for coming to McDonalds?

Reasons for Visiting McDonalds


For Change 44 36.67

Hangout 40 33.33

Saves time 8 6.67

Family outing 28 23.33

120 100.00

Table 8.11- REASONS FOR VISITING McDONALD'S

Figure 8.11- REASONS FOR VISITING McDONALD'S

Description: Most of the young Indian consumers visit fast food outlets for

change and fun as indicated by the results followed by hangout with

friends.

37%

33%

7%

23%

Reasons for Visiting McDonalds

For Change

Hangout

Saves time

Family outing


75/92



12. Your decision to visit McD is influenced by?

Influencing factor to visit

McDonalds


Spouse 16 13.33

Children 24 20.00

Friends 72 60.00

Relatives 8 6.67

Neighbour 0 0.00

120 100.00

Table 8.12- INFLUENCING FACTOR TO VISIT McDONALD'S

Figure 8.12- INFLUENCING FACTOR TO VISIT McDONALD'S

Description: Based on multiple answer questions it is inferred that

consumers preference to visit a particular fast food outlet is influenced

by friends in 60 per cent of cases followed by children and other factors

13%

20%

60%

7%

0%

Influencing Factor to Visit McDonals

Spouse

Children

Friends

Relatives

Neighbour


76/92



13. Which is the most effective promotional activity for

McD?

Effective Promotional Activity for McD


Discount 44 36.67

Home delivery 28 23.33

Others 48 40.00

120 100.00

Table 8.13- EFFECTIVE PROMOTIONAL ACTIVITY FOR McDONALD'S

Figure 8.13- EFFECTIVE PROMOTIONAL ACTIVITY FOR McDONALD'S

Description: Promotion is essential for every organization. For McD the

most effective promotional activity according to people are

advertisements followed by discount.

37%

23%

40%

Effective promotional activity for McD

Discount

Home delivery

Others


77/92



14. Will you try the new product within 1 week after the

latest advertisement released?

Tryiing the product within a week of latest

ad


Yes 48 40.00

No 72 60.00

120 100.00

Table 8.14- TRYING THE PRODUCT WITHIN A WEEK OF LATEST AD

Figure 8.14- TRYING THE PRODUCT WITHIN A WEEK OF LATEST AD

40%

60%

Trying the product within a week oflatest Ad

Yes

No


78/92



15. Do you think the introduction of Happy Price menu has

boosted the sales up?

Happy Price Menu resulting in Sales boost


Yes 60 50.00

No 4 3.33

Upto some

extent 56 46.67120 100.00

Table 8.15- HAPPY PRICE MENU RESULTING IN SALES BOOST

Figure 8.15- HAPPY PRICE MENU RESULTING IN SALES BOOST

Description: McDonalds innovative scheme of introducing Happy Price

Menu was successful upto some extent in boosting up the sales of McD.

50%

3%

47%

Hapy Price Menu resulting in Salesboost

Yes

No

Upto some extent


79/92



16. What is the distance of nearest McDonald from your

place?

Distance of McDonalds from your place


Near 64 53.33

Very near 16 13.33

Far 28 23.33

Very far 12 10.00

120 100.00

Table 8.16- DISTANCE OF NEAREST McDONALD'S FROM YOUR PLACE

Figure 8.16- DISTANCE OF NEAREST McDONALD'S FROM YOUR PLACE

Description: According to the above results it is clear that the nearest

distance of McD for most of the people are near to their home which

means th

Consumer perception with regards to McDonald's

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