Consumer Decision processReza Mousavi-Scsj0003500

Firm’s Marketing Efforts1. Product2. Promotion3. Price4. Channels of distribution

Sociocultural Environment

1. Family2. Informal sources3. Other noncommercial

sources4. Social class5. Subculture and

culture

Output

Process

Input

Exte

rnal

Infl

uen

ce

Con

sum

er

Decis

ion

M

akin

g

Pos t

-D

ecis

ion

B

eh

avi

or

Postpurchase Evaluation

Purchase1. Trial2. Repeat purchase

Need Recognition

Prepurchase Search

Evaluation of

Alternatives

Psychological Field1. Motivation2. Perception3. Learning4. Personality5. Attitudes

Experience

A Model of Consumer Decision Making

INTRODUCTIONKFC McD'sKFC Corporation based in

Louisville, Kentucky

is the world’s most popular chicken restaurant.

KFC is part of Yum! Brands, Inc., which is the world’s largest restaurant system

KFC has more than 11000 restaurants in more than 80 countries and territories around the world. Serving more than 12 million customers each day

Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. The remainder are operated by others through a variety of franchise agreements and joint ventures.

 is the world's largest chain of hamburger fast food restaurant

McDonald's restaurants are found in 119 countries and operates over 31,000 restaurants worldwide, employing more than 1.5 million people. Serving more than 58 million customers daily

Product

•Study of culture

•Offers regionalized menu

•Innovates its products

•56 products (approx)

Place

Price

criticismPromotion

Radio

Online

News papers

Poster TVC

Cinema

Toys

PRODUCT

Chicken specialist/ experts

Innovation

Buckets

Variety of product in the chicken

Kids meal

PLACE

‘Proper food at reasonable prices’

Cost base price strategy

Market segment

Standard value meals

Price

• Bill boards • News

papers• TVC• Pop-

ups on internet

• Special packages

Promotion Nobody does chicken like KFC

PRODUCTSKFC McD'sCHICKEN DELIGHT: chicken

meal that include Original Recipe or Hot&Crisry with fries and Pepsi.

BURGER MEALS: Very famous range of KFC burger, Zinger meal, Zinger chicken meal

BUCKET: Hot & Crispy, Original Recipe, Chicken Strips.

RICE MEAL:Chicken Rice Meal.DESSERTS: Brownie Sundae,

Soft Twirl.

BURGER MEALS:  Burger base on consumer taste. Beef, Fish, Chicken,Veggie,Pork

Halal and None Halal Fried Chicken Breakfast Salads Desserts: Kiddie Cone,Strawberry

Sundae,Hot Caramel Sundae,Hot Fudge Sundae,McFlurry with M&M’s,McFlurry with OREO Cookies,Chocolate Triple Thick Shake,Strawberry Triple Thick Shake,Vanilla Triple Thick Shake,Baked Apple Pie ,Cookies and ….

THE PROCESS OF CONSUMER DECISION MAKING

PERCEVING A NEED RECOGNITIONKFC McD'sThe need was hunger and

the immediate satisfaction of hunger through fast food.

Mainly targeted at chicken lovers.

Growing fast food market : KFC came up with new Products but was copying other fast food chain to stay competitive.

The need was hunger and the immediate satisfaction of hunger through fast food.

Mainly targeted at all type of consumer

The traditional eating habits in new countries have changed.

Youngsters, now days want a hanging joint with good food.

Growing fast food market:McD came up with New Menu for attracting costumers.

INFORMATION SEARCH KFC McD’sInternal factors of Information Search

by consumers were

1. Recall of advertisements/Print media.

2. Some perceived KFC as high price ,high quality.

3. KFC Logo features Colonel Harland Sanders”the smiling”. “Finger licking good”

External factors of Information Search are: Friends and Family. Public sources, including various product-rating organizations such as Consumer Reports.

Internal factors of Information Search by consumers were

1. Recall of advertisements/Print media.

2. Some perceived McD's as satisfy price ,good quality.

3-’M’Logo ,”I’m Loving it”

External factors of Information Search are: Friends and Family. Public sources, including various product-rating organizations such as Consumer Reports

ALTERNATIVE EVALUATIONKFC McD's

RATIONAL CHOICE : For burger and chicken lovers .

ATTITUDE CHOICE: Some people perceived it as high price, high quality products at KFC

ATTRIBUTE CHOICE THEORY: By knowing the product well, as in the ingredients, hygiene factors, ambience etc.

RATIONAL CHOICE : For burger and all type of meat lovers or Vegetarian. Halal and None-Halal

ATTITUDE CHOICE: Some people perceived it as satisfy price, good quality products at McD's

ATTRIBUTE CHOICE THEORY: By knowing the product well, as in the ingredients, hygiene factors, ambience etc.

PURCHASE or BUYING DECISIONKFC McD's The decision of buying a product at

KFC was backed by many factors(as known by consumer survey)

SOCIAL SURROUNDINGS: The kind of people around i.e Including others present when a purchase is made.

PHYSICAL SURROUNDINGS: Such as decor, music, and ambience, cleanliness etc

ANTECEDENT STATES: Which include the consumer’s mood or amount of cash on hand.

The decision of buying a product at McD's was backed by many factors

SOCIAL SURROUNDINGS: The kind of people around i.e Including others present when a purchase is made.

PHYSICAL SURROUNDINGS: Such as decor, music, and ambience, cleanliness etc

ANTECEDENT STATES: Which include the consumer’s mood or amount of cash on hand.

CONSUMPTIONKFC POSITIVE FEEDBACK NEGATIVE FEEDBACKConsumers were

satisfied with the promotions and the price

Some people were even satisfied with the environment and the friendly attitude of people at cash counters.

Some consumers are complain of quality.

They found the chicken has been cooked earlier and kept it in warm environment.

One of the respondent renamed KFC as BFC(badly fried chicken).

CONSUMPTIONMcD's POSITIVE FEEDBACK NEGATIVE FEEDBACKConsumers were

satisfied with the promotions and the price

Some people were even satisfied with the environment and the friendly attitude of people at cash counters.

Some consumers are complain about the quality.

They found the burger and french-fries has been cooked earlier and kept it in warm environment.

McD's is good at making junk foods.

POST-CONSUMPTION (EVALUATION)Online surveys, Phone line and Boxes on the counter.

taking care of customers before, during, and after the sale of a product or service.

Target is to create a Loyal Customer or to achieve Customer Loyalty.

80 percent of McDonalds’ and KFC profits come from 20 percent of customer feedback.

A responsible customer is logical, conceptually, loyal, emotionally, and reliable, practically a satisfied customer is inevitable objective for business success, the prominent signs of satisfied customers are:1. Repeated buying interaction with the organization,2. Telling friends and colleagues about the advantages of

dealing with and purchasing from the organization, &3. Giving appropriate feedback to organization from time to

time.

Divestment

Corporate Social Responsibility

Environment

Energy efficiency

Green Restaurant Design

Sustainable Packaging & Waste Management

www.crmcdonalds.com

Yum! Environment

Waste management

Sustainable building design

Packaging

Corporate Social Responsibility

Cruel treatment of chickens

1 billion chickens killed each year

Unsafe chicken/Bird flu

Unhealthy food

ConclusionMcDonald’s operates in an environment that is

influenced by diverse cultures, ethnic customs, religious tenets, political systems, consumer watchdog groups, and fierce competition from other entities seeking to erode some of the dominant market share that McDonald’s enjoys. Including all of its shareholders in the process for ensuring that quality, value, consistency, customer relations, and a willingness to change with the winds of consumer preferences has been that recipe for success.

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