Analysis of Attributes Towards Customer Satisfaction in Fast Food Brands - A Study On KFC India
Analysis of Attributes Towards Customer Satisfaction in Fast Food Brands - A Study On KFC India
By
VINAY RAJU ZACHARIAH
20192MBA0228
PRESIDENCY UNIVERSITY
2019–2021
CERTIFICATE BY THE GUIDE
Date:
1
DECLARATION BY THE STUDENT
I also declare that this project is the outcome of my own efforts and that it has not
been submitted to any other university or Institute for the award of any other
degree or Diploma or Certificate.
2
ACKNOWLEDMENT
I perceive this opportunity as a big milestone in my career development. I will strive to use
gained skills & knowledge in the best possible way and in order to attain desired career
objectives. Hope to continue cooperation with all of you in the future, sincerely.
I thank Presidency University, especially Dr. Gunjeet Kaur, Dean, School of Management
and Commerce, Dr. Krishna Kumar, Associate Dean, Head of the Department, School of
Management for providing me this opportunity to work on the project.
In the best words the Respondents are the foundations of this study. Without their co-operation
and willingness to provide the required sufficient information, this project would never been
possible. I express my gratitude.
Regards
VINAY RAJU ZACHARIAH
20192MBA0228
3
TABLE OF CONTENTS
7 Bibliography 70 - 71
8 Annexure 73 - 74
4
LIST OF TABLES
5
4.13 Table showing the rating of interior design and 48
decorations
6
LIST OF CHARTS
7
4.13 Chart showing the rating of interior design and 48
decorations
8
EXECUTIVE SUMMARY
The market is highly competitive with a large number of Indian players seeking
business in this rising trend. The market is led by global players, especially in the
organized fast food segment. Growing trend in consumption of multi cuisines and
expanding brand awareness has led to the expansion of global players.
For a nation that is particular about its food and considerably fond of home cooked
and fresh food, this trend is showing the globalization of India and increase of new
markets not witnessed in India before. With large number of people eating out the
industry offers major opportunities to the players to persuade a larger consumer
base. This research is based on the analysis of attributes towards the customer
satisfaction in fast food brands in India. This research is carried with reference to
the KFC, India.
9
CHAPTER-1
INTRODUCTION
10
1 .INTRODUCTION ABOUT THE TOPIC
In this modern era, fast food has become common and an essential part of most people’s busy
everyday persistence. Indian consumers’ lifestyle has particularly helped the fast food industry to
develop and extend over the last few years. Fast food outlets are also known as Quick Service
Retail outlets which provides confined menu, limited service and frequent self-serve counters.
Branded fast food retail outlets and exhaustion in fast food outlets are extremely increased in last
few years. Both have a high positive association. Thus fast food outlets has become common and
this trend has progressed in cities of India. Various reasons like growing number of nuclear
families, disclosure to western dishes and global media, rising number of working women - have
had a considerable contact on the eating out trends and rise of the fast food industry. The
industry experts review that the middle class young population, with high available income, will
spend more on eating out at bounded fast food outlets. The desire for ready-to-eat packeted food
is also expected to record strong growth in the country.
Millions of people visit restaurant for their enjoyment. Some go to restaurants for business
meetings dinner, while others go for family celebration. People who go for family celebration
often spend the most on restaurant, because they want to make their visit an unforgettable one.
Our dissertation is based on the factors of priority for the restaurants. The factors that that come
in the mind of the customers when selecting a restaurant to dine are price, quality, environment,
high employee service and security services. These are the most important factors that a
customer thinks of before choosing a restaurant.
This dissertation shows importance on these variables and tells how they are important.
Customers who go to restaurant for family celebration will frequently look for quality,
environment, good employee service and security services. There is a possibility that customers
who go to outlets for family celebration will often ignore the high price of the restaurants,
because they want good quality and enjoyable environment for their celebration. Customers who
go to restaurants just because there is no one to prepare food at home or they are far from their
residence will often look for low price and they will sacrifice the remarkable security and service
and quality of food. The business people like family celebration customers will also focus more
on quality and environment instead of low price because their high quality is mostly in their
budget. They can afford high price for high quality. Customer preservation is very important
index to measure organizational performance. Customer preservation is much better as compared
11
to obtain new customers. Gaining new customers is important but it is more costly than customer
preservation. Quality and customer satisfaction have been recognized as playing an important
role for success and survival in today’s competitive market. Moreover, substantial research has
been conducted on these two concepts. Consumers who are satisfied pay more tips and help
business by becoming its ambassadors and also link other businesses.
Fast food outlets not only reformed the lifestyle of consumers but also resulted in unstable diets
and different tradition of cooking at home. The benefits of fast food are convenience, readily
available food and image etc. Drawbacks of fast food items are high calories, fat, salt and other
improper additives. Despite of all these cons total food fast food production in India is likely to
double in the upcoming decade and there is an opportunity for large investment in fast food. Fast
food service declines the distance covered by the customer to reach for food. This attracts all
classes of people in the society. A popular outlet like KFC is facing challenges due to customer’s
taste and concern towards nutritional values, which resulted in expanding product range at
competitive prices.
Customer satisfaction is indeed how customer assesses performance and ability of a service
provider to create a high degree of satisfaction to manage strong relationship with customers. As
a result, fast food outlets should consider customer satisfaction as the key parameter while
devising their competitive advantage.
PRODUCT PLACE
VARIETY CHANNELS
QUALITY COVERAGE
DESIGN ASSORTMENT
FEATURES LOCATION
BRAND NAME INVENTORY
PACKAGING TRANSPORT
PRICE PROMOTIONS
LIST PRICE SALES
DISCOUNT ADVERTISING
ALLOWANCES 13 PROMOTION
PAYMENT SALE FORCE
PERIOD PUBLIC RELATIONS
1.3 INDIAN FAST FOOD INDUSTRY
The global fast food market is ready to witness major growth during the forecast period, holding
to increase in number of fast food restaurants, rise in number of working women, tech-savvy
ordering options, rise in demand for international restaurants, and change in customer taste and
preference. However, details such as high setup cost of restaurants and rise in health concerns
among the fast food customers are expected to holdback the growth of this market. Moreover,
the rise of fast casual food is predicted to negatively affect the fast food market growth.
Fast food product is one such appropriate food product which can be consumed with ease
anywhere, anytime. Hence, the fact that the busy lifestyle being acquainted by majority of
customers covers way for fast food product to grow in terms of volume sales. Increase in
popularity of fast food restaurants, also known as the quick service restaurants, promotes the
growth of the global fast food market. Among the developing economies, China, India, and
Brazil rules in terms of fast food consumption, being responsible to their large population base
and growth in number of QSRs such as Burger King, McDonalds, Dunkin' Donuts and Wendy's,
Subway.
According to Economist Intelligence Unit, India’s fast food industry is expected to double from
2013 to 2016. The quick service restaurant industry is still in the beginning and there is a wide
scope for more brands and outlets. The growth in nuclear families, urbanization, westernized
culture and exposure to media have impact on eating out trends. McDonalds, KFC, Subway and
Pizza Hut are the major players in Indian market.
The fast food products market was rated at $647.7 billion in 2019 and is valued to reach $931.7
billion by 2027, growing at a CAGR of 4.6% during the forecast period. Fast food is defined as
food that is quick to prepare and serve. It acts as a replacement to home cooked food. One of the
popular occurrence of the twenty-first century is the quick adoption of fast food. The increase in
demand for fast food has brought in new concepts like “take away” or eating on the run concept.
The fast food concept has globalized the demand for food and courtesy to fast food restaurants
international foods are now being served outside their regional boundaries. The fast food market
has been noticing rapid growth due to quick and inexpensive meals.
Changing lifestyle patterns such as busy schedules and working women have guided the
necessity for small meals leading to the growth of the global fast food market. Growth in female
employment rate because of which women do not have enough time to prepare food; increase in
number of fast food restaurants, which results in easy access to the fast food and skilled ordering;
rises the growth of the fast food market. In addition, a rise in exposure to international food
14
through media and travelling will continue to expand the growth of this market. However, there
is high cost related to the establishment of a restaurant or a food truck, which alerts the growth of
the fast food market. Moreover, a rise in health issues among the people like obesity which is
caused due to unhealthy oils and preservatives that are used in the preparation of fast food
products also prevents the growth of the fast food market. The scope for the fast food market is
serving low calorie & organic healthy food and increase in number of fast food outlets.
The market is valued to grow in the coming years by offering menu according to the taste of
people and region, modifying fast food menu for breakfast or dinner and extending delivery
services. Howover, top players are forming partnerships with other food markets to seize the
market share such as McDonalds has a partnership with Kraft for McCafe coffee. In addition,
major players in this market are making the use of marketing techniques such as children toys,
credit points, and other premiums methods.
The research will show and expose on factors affecting consumer satisfaction on purchasing fast
food and determines whether it is really useful for consumer satisfaction. Franchise fast food
15
right now is one of the good business opportunity and very competitive in the global market. So,
these businesses are fiercer. The purpose of this study is to show the customers satisfaction of
KFC brand on the process of making the decision to choose their product or service.
Businesses around the world today understands the importance consumer awareness have on
their businesses and they are beginning to think like customers in order to have a better
understanding of what inspires purchase. The major difficulty they face is that they respond to an
unknown but complicated environment, sometimes, based on an opportunistic response to
market. Customers see businesses through a lens that color their perception and the way they
interprets value.
Consumer tastes and preferences are ever changing, this indicates that every brand should
concentrate on ways to stay fresh in order to remain updated in the market. The fast food
industry is no longer split into defined segments since the services conflict sometimes. Therefore
the way and manner in which services provided are difficult to gain unique advantage. Customer
satisfaction is formed by former experiences. So it is essential to understand the customer
satisfaction based on measurable factors of the same. In this opinion, several factors have been
considered to understand customer satisfaction. This will indeed help the branded outlets to
attract new customers and retain existing customers.
16
Figure below shows the theoretical framework of the study. There are two variables discussed in
this study, i.e. independent and dependent variables. Customer satisfaction in fast food industry
showing the dependency on Service quality, Physical Environment, Price, and Quality of the
product are the independent variables.
Chapter 2
Review of Literature and Profile of
17
the Company
2.1 INTRODUCTION
Relevant literature will be approached to provide an overview of the secondary data discussed
for the development of the dissertation in this chapter. The chapter provides readers with a
detailed synopsis of the various factors that influence customer satisfaction.
In general, customer satisfaction is one of the most important factors in determining an
organization's success and increased efficiency. Supplying high quality service to customers is
one of the most vital challenges every organization faces. No enterprise can survive unless it can
attract and keep a sufficient number of satisfied customers. Successful performance of
organizations depends on creation of unique value in services they offer in an effective way for
customers. This has made the recognized product quality become one of the most important
competitive factors in the market.
The present study fills the gap and contributes by researching customer satisfaction and
positioning of service quality dimensions in fast food restaurants. It provides evidence that the
18
path towards making improvements in customer satisfaction is through various mentioned
factors as the intermediary. Results show that improving only service quality in fast food
restaurants will not directly improve customer satisfaction. Since in practice no manager has
access to an infinite amount of resources, by providing positioning of mentioned factor
dimensions, the dissertation helps managers find their focus area and assign their resources better
given their business goals and ideas. Fast food restaurant managers can use findings of this
research to improve customer satisfaction. This work also casts light on fast food restaurant
managerial decisions and helps managers take future steps in creating a more customer-oriented
culture at their restaurants.
There are several factors that lead to selection of a restaurant for its consumers. An important
objective of corporate marketing strategies is satisfaction of customers so high level of
satisfaction can lead to high level of customer loyalty. It can also lead to trust and positive word
of mouth. Marketing research and other supports that other costs such as time efforts and psychic
are noticeable to the customers. Value is defined as all the factors that are qualitative or
quantitative that completes the experience of the purchasing people or consumers. This statement
of value “value is what you are paying in return for what you are receiving” is favored by all the
people. Abstractions have been noted which combines with price and quality and also produces
value ideas in the customers making purchases at restaurants. Such major abstractions are
convenience, time and freshness. Logical models have been used to verify the influence of
customer’s perceived value on purchase intention in fast food industry.
Independent variables chosen are food quality, price, ambience, security and service quality and
dependent variable is customer satisfaction. Literature has been collected on these variables.
19
KFC (known as Kentucky Fried Chicken) is a fast food restaurant chain that majors in fried
chicken and is headquartered in Louisville, Kentucky, in the United States. It is the world's
second largest restaurant chain after McDonald's, with 18,875 outlets in 118 countries and
territories as of December 2013. The company is a subsidiary of Yum! Brands, a restaurant
company that also owns the Pizza Hut and Taco Bell chains.
KFC was founded Colonel by Harland Sanders who began to sell fried chicken from his roadside
restaurant in Corbin, Kentucky during Great Depression. He spotted the potential of the
restaurant franchising concept and the first “Kentucky Fried Chicken” franchise opened in Utah
in 1952. KFC popularized in the fast food industry, enlarging operations of the market by
challenging the established dominance of the hamburger. By branding himself as “Colonel
Sanders”, Harland became a remarkable figure of American cultural history, and his image
remains widely used in KFC advertising. However, Harland sold the company to a group of
investors led by John Y. Brown and Jack C. Massey in 1964.
KFC was one of the first fast food chains to expand internationally, opening outlets in Canada,
the United Kingdom, Mexico, and Jamaica by the mid-1960s. Throughout the 1970s and 1980s,
KFC experienced mixed fortunes domestically, as it went through a series of changes in
corporate ownership with little or no experience in the restaurant business.
In the early 1970s, KFC was sold to the spirits distributor Heublein who were taken over by the
R.J Reynolds food and tobacco conglomerate, who sold the chain to PepsiCo. The chain
continued to expand overseas. KFC's original product is pressure fried chicken pieces, seasoned
with Sanders' recipe of 11 herbs and spices. The constituents of the recipe represent a notable
trade secret. Larger portions of fried chicken are served in a cardboard "bucket," which has
become a well-known feature of the chain since it was first introduced by franchisee Pete
Harman In 1957. However, in 1987 became the first Western restaurant chain to open in China,
which is now the company's single largest market. PepsiCo spun off its restaurants division as
Tricon Global Restaurants, which later changed its name to Yum! Brands. Since the early 1990s,
KFC has expanded its menu to offer other chicken products such as chicken fillet burgers and
wraps, as well as salads and side dishes, such as French fries and coleslaw, desserts, and soft
drinks, the latter often supplied by PepsiCo. KFC is known for the slogan "finger licking' good,"
which has since been replaced by "Nobody does chicken like KFC" and "So good."
Yum! Brands company owns 4491 stores in U.S, 4563sores in China and 9821 stores across the
rest of countries. They totally own the 18875 outlets in 118 countries in 2013. Their average
annual sales per unit is 1.2 million. In 2014, they already had more than 41000 restaurants in
over 125 countries and global sales totaled more than US$ 13 billion.
20
Mission
To maximise profitability, improve shareholder value and deliver sustainable growth year after year.
Principle
The KFC principlas are adapted from the Yum! Dynasty Model and are known as the KFC Dynasty
Model.
1940
Original Secret Recipe of Kentucky Chicken was born.
1952
The Colonel begins to expand his chicken business by traveling from town to town.
The Colonel awards Pete Harman of Salt Lake City with the first KFC franchise. A
handshake agreement stipulates a payment of a nickel to Sanders for each chicken sold.
1955
Sanders sell the service station that he receives his first social security check for $105.
After paid all the debts owed, he is virtually broke, bankrupt. He decides to sell his Secret
Recipe to restaurants.
1957
Kentucky Fried Chicken first sold their chicken in buckets.
1960
There have total 190 KFC franchisees and 400 franchise units in the U.S. and Canada.
1964
Kentucky Fried Chicken has more than 600 franchised outlets in the United States,
Canada. The first overseas outlet located in England. Sanders sell his interest in the U.S.
company for $2 million to a group of investors headed by John Y. Brown Jr., so KFC
now cooperation.
1966
The Kentucky Fried Chicken Corporation goes public.
1969
The Kentucky Fried Chicken Corporation is listed on the New York Stock Exchange.
1971
21
More than 3,500 franchised and company-owned restaurants exist in worldwide when
Heublein Inc. acquires KFC Corporation.
1976
An independent survey ranks the Colonel as the world’s second most recognizable
celebrity.
1980
Colonel Harland Sanders died. Flags on all Kentucky state buildings fly at half-staff for
four days.
1982
Kentucky Fried Chicken becomes a subsidiary of R.J. Reynolds Industries, Inc. (now
RJR Nabisco, Inc.) when Heublein, Inc. is acquired by Reynolds.
2002
Tricon Global Restaurants, Inc., the world’s largest restaurant company, changes its
corporate name to YUM! Brands, Inc.
2006
More than a billion of the Colonel’s “finger lickin’ good” chicken dinners are served
annually in more than 80 countries and territories around the world.
2007
KFC introduces a new recipe that keeps the Colonel’s 11 herbs and spices and finger-
lickin’ flavour, but contains Zero Grams of Trans Fat per serving thanks to new cooking
oil.
2008
KFC change it icon. KFC replaces Sanders classic white, double-breasted suit with a red
apron.
2009
Kentucky Grilled Chicken has less calories, fat and sodium than KFC Original Recipe
22
Customer satisfaction is defined through evaluation of customers’ experiences with and
awareness of products or services and whether both of them meet the expectations in satisfying
customers needs and wants.
I. Li, Ali, Kim, and Jeon (2016)- freedom of choice affects customer satisfaction. For
example, restaurant customers could be satisfied and return good feedback when they
have the possibility of choosing menu items for themselves.
II. Hanaysha & Hilman (2015)- customer loyalty can result when provided products or
services fulfil their expectations.
III. Zairi (2000)- the feeling of pleasure and expectation fulfillment is known as Satisfaction.
If the product does not satisfy customer feelings they will be dissatisfied, or else becomes
loyal to that product or brand.
IV. Oliver (1981)- customer satisfaction is the part of marketing and play important role in
the market. In an organization customer satisfaction is more important, because if the
customer is satisfied with your services or products, you will get good position in the
market.
Service Quality
V. Sundho (2015) & Swanson and Chen (2016)- all industries recognize service quality as
a global concept. The objective of service quality is to fulfil the satisfaction of customers
towards the services that are provided.
VI. (Okoli, Olise, & Ekeke, 2015)- the staff must serve customers with kindness and show a
good attitude in meeting with the customers. Previous research has stated that the quality
of services provided has an influence on customers Therefore, if high service quality is
given, the result will be higher customer satisfaction.
VII. Cronin and Taylor (1992)- The general definition of service quality, abbreviated as
SERVQUAL which attempts to measure and hypothesize the service performance of any
product or service.
There were ten dimensions on which SERVQUAL was measured, but later on, the number
was reduced to five dimensions, namely RATER, which are as follows
1. Reliability: It refers to the capacity to perform given service accurately and
dependably such as records and billing.
2. Assurance (inclusive of security, credibility, courtesy, and competence): It is
associated with good manners and information of workers as well as their skills
and traits to provide confidence and ensure trust to the consumers.
3. Tangibles: It implies communication material, employees, equipment, employees
and physical facilities of the company.
4. Empathy (including understanding, communication, and access of consumer): It
refers to individualized attention, caring, and understanding that the company
gives to its clients.
5. Responsiveness: It is the readiness to provide constant and prompt service to help
customers.
23
Price
Price can be described as the amount of money a customer has to pay or exchange in order to
receive a good or service. It is by far considered as one of the most important factors
affecting the consumers understanding of a product all over the world.
VIII. Lichtenstein, Ridgway and Netemeyer (1993) as cited by Chankarachan (2013)-
price is one of the most important product information cues and its perception- is simply
the process by which consumers understand price and attribute value to a good or service.
IX. (Schiffman and Kanuk, 2007)- How a customer perceives price, either as high, low or
fair will have a strong influence on both purchase intentions and purchase satisfaction.
X. Skindaras (2009)- we come across a lot of assorted products bearing different price
ranges.
XI. (Kottler & Armstrong 2012)- In Marketing Mix, the price is one of the four P’s which
play an important part in implementing marketing strategy.
XII. (Lambert, 1972; Shapiro, 1968)- Some consumers judge quality on the basis of the
prices. If the price is high they judge it as high quality and if the price is low then they
will recognize as a product or service of low-grade quality.
Ambiance
On the basis of previous research, the cleanliness of restaurant surroundings must be given
priority for customer satisfaction. The objective of restaurant ambiance is to provide
customers a comfortable environment while eating in the restaurant and directly fulfil their
expectations.
XIII. Booms and Bitner(1982)- Physical environment of a brand is very important in creating
a brand image for hospitality firms and also enhances their satisfaction levels.
XIV. Nguyen and Leblanc (2002)- It is also been said that the environment and personnel that
contacts with the guest had a positive impact on the perceived corporate image.
XV. Ryu et al (2008)- It has been suggested that nice interior décor, good quality of food and
service and appropriate location is a key to build goodwill and brand image.
XVI. Ryu et al (2010)- consumers save a large chunk of their time and get a better
environment when they eat out nowadays as compared to the last decade. The eating out
trend have influenced restaurants to put great attention in their interior and create a more
pleasant environment for customers.
Food Quality
Food quality another important element that influences the satisfaction and purchase
intentions among customers. The objective of managing food quality is to increase the image
and brand recognition of products and services. The restaurants should provide fresh and
well-cooked meals to maintain quality of the food.
24
XVII. Johns and Howard(1998)- customers go to a restaurant to eat; that's why quality of food
is an extremely important factor in attracting the customers to, and maintaining them in, a
dining place. They also show that quality of food is so important that even
knowledgeable employees would not be considered a substitute for that from the
customers’ perspective.
XVIII. Nmakung and Jang (2008)- Food quality is key attribute of satisfaction of diners in
restaurants People mostly got to restaurants for getting food in their leisure time and
quality is always a predominant factor of this.
XIX. Rijswijk and Frewer (2008)- Food quality is predictor of food safety Its so much
common for human beings that they are curious about everything which relates with them
i.e. what they ware what they eat what they feel.
25
Chapter 3
Research Methodology
26
Research methodology is used by researchers to collect, examine and explain the answers for
hypotheses and questions and in a more systemic and constructional way. In this section, it is
included how the research was carried, what was the research design, how the data was collected,
what the research technique was, what the sample design was and how data was examined and
processes. The purpose of this portion is to give a better understanding about the outcome and
result of the research.
Descriptive research design is selected to achieve the purpose of the study. This aims to
understand the key factors which influences customer’s satisfaction towards quick service outlet
mostly visited. In this study outlet means frequently visited outlet by the respondents.
The study is based on primary data collected from customers directly using a structured
questionnaire with multiple choice questions seeking demographic information and five point
rating scale statements to discover consumer satisfaction. Demographic details of the
respondent’s includes Age and Gender. The Five point rating scale ranges from Strongly Agree 5
to Strongly Disagree 1. The questionnaire was prepared in simple English to improve the process
of understanding by consumers and further interpretations.
The samples were selected using convenience sampling. The questionnaire was circulated to
large number of respondents and finally got completely filled questionnaire from about 50
respondents. Sending the questionnaire through Google forms gives more freedom to responses
and their convenience is given priority.
The growth in nuclear families, especially in urban India, disclosure to global media and Western
foods and an increasing number of women joining the workforce has lead us to a new era of fast
foods. Earlier studies have shown that, the reason behind the success of the multinational chains
is their experience in product development, sourcing practices, service levels, quality standards
and standardized operating procedures in their restaurants, a power that they have developed
over years of experience around the world. KFC being one of the lead multinational chain, which
has been emerged in India, the researcher wants to identify the awareness level of KFC and to
identify the customers satisfaction level towards KFC and hence the study.
3.3 OBJECTIVES
27
The objectives are:
To identify different key elements that provides satisfaction to the consumers for opting
fast food brands.
Service Quality
Price
Physical Environment
Food Quality
To enhance the fast food service quality effect on overall customer satisfaction and to
study buying behavior towards KFC fast food brand.
To explore the opinions of customers on price fairness of food and services of KFC
restaurant.
To examine the particular differences/similarities in the factors considered by consumers
for the selection of KFC fast food brands.
To provide suggestions to improve the service quality of KFC fast food brand.
28
The Indian market is filled with various sectors and industries that include products of daily as
well as occasional use for the consumers. In today’s competitive world, customer satisfaction has
become one of the most important tools for measuring the success of the firm. Fast food is one of
the world’s fastest expanding food types. Fast foods are quick, sensibly priced, and easily
available alternatives to home cooked food. Unlike in developed countries where organized retail
chains are compelling the changes in the food chain, in India, organized food service will take
the lead for making change in the short to medium term. The industry experts review that the
middle class young population, with high available income, will spend more on eating out at
bounded fast food outlets. The desire for ready-to-eat packeted food is also expected to record
strong growth in the country. Fast food industry has grown in India as multinational fast food
providers have set up their business either jointly with Indian partners or independently, after the
liberalization policy that came in force in 1991. Kentucky Fried Chicken (KFC) also entered the
Indian market and opened its outlet in Delhi in 1995. With varying life style and direct marketing
by fast food outlets, fast food is also becoming popular in small towns; therefore, success of
existing fast food outlets and entry of more is expected. Hence, the researcher has chosen this
area for the study. Tools like descriptive analysis, chi square analysis and factor analysis are
tested to identify the awareness and satisfaction level of KFC customers.
Sampling refers to selecting a small number of respondents from a larger population to get a
conclusion which represents the whole. In this research, 100 samples were taken where the
population was people who were regularly visiting KFC brand.
29
Data collection refers to gather data for analysis and examining, there are two types of data;
Primary data and secondary data. Data collection helps in obtaining research objectives and
scheduled hypothesis testing and to verify the reliability of the analysis.
Primary data is a direct personal information collected by the researcher through questionnaires
in terms of quantitative research and observations for qualitative research. In this study, familiar
questionnaires were used which were distributed to respondents and were collected back once
they finished the survey.
Secondary data is to reconsider the already collected data from previous researchers and authors.
These data are already available on different sources such as internet or past papers. The
advantage is that it is cheaper and gives a direct end form of result as compared to primary
research. In this research, reviews from travel advisors were used as secondary data form.
Reviews of customers on travel advisor about these restaurants were analyzed as what customers
think about the fast food outlets in terms of price, ambiance, service quality and food quality in
KFC restaurants of India.
Sampling alludes to selecting a small number of respondents from a larger population to make an
end result which represents the whole. In this research the population was people who were
restaurant goers, and sample was those who were visiting KFC restaurants.
Questionnaire was used as an instrument for analysis in this dissertation. Questionnaires are set
organised questions where respondents read and answer from the given options. It serves as an
essential tool to collect responses from the respondents as it is cheaper and can easily choose
maximum respondents from a large number of sample.
In this survey, closed ended organized questionnaire were used which had two parts, Part A
consisted of demographics and part B consisted of questions that are related to variables. Rating
scale was used for options where 1= strongly Agree to 5= Strongly Disagree.
The questionnaire was prepared, where the items were selected from previously done researches
and modified according to the study.
Non- probability convenience sampling technique was used in this research i.e., anyone who is
convenient to be part of the survey can answer the questions. This is the simplest way as one
does not have to wait long for respondents to answer. Online Google docs’ forms were used for
surveying and the link was circulated among the people who are frequent KFC restaurants goer.
30
3.8 Statistical Tools for data collection
Questionnaire was used as an instrument for analysis in this research through Google forms or
Survey monkey. Questionnaires are set structured questions where respondents read and answer
from the given options. It serves as an important tool to gather responses from maximum
respondents.
Statistical inferences are applied for analyzing the data such as Ex. mean, SD, correlation,
regression, chi-square, ANOVA( One way, two way), T-test, Z-test, Non-parametric tests, Factor
analysis etc..
31
3.10 LIMITATIONS OF THE STUDY
A few limitations were identified while conducting this research which could be difficult for
further studies.
The first limitation is that this study was based on KFC customer perceptions which
could change according to time, trends, lifestyle and other factors.
Besides that, there was the feasibility of a gap between what respondents may have
thought and the survey responses they actually select due to lack of time and having to
rush to get their work done.
Next, this study uses convenience sampling, in which it does not have specific
respondents. Thus, in future studies, other sampling methods could be used to gather the
data.
Furthermore, it was impossible to collect highly accurate data because some of the
questionnaires had to be rejected due to incomplete answers.
Also, the authenticity of information provided by the customers could not be verified.
They may have experienced reservations in giving sincere responses on some of the
information when filling up the questionnaire due to an observed lack on anonymity.
Although the results were dependable but there are other factors too which affect
customer satisfaction and can be figured out in future.
32
Chapter 4
Data Analysis and Interpretation
33
DATA ANALYSIS
Q 1. GENDER
4.1
MALE 43 43
FEMALE 57 57
4.1
57
43
MALE FEMALE
INTERPRETATION
From the above table and graph it is clear that number of females are more when compared to
males from 57% - 43%.
34
Q 2. AGE
4.2
Above data collection shows the age group divided into (18-25(42%), 26-34(31%), 35-50(27%),
45% above- nil. That shows the age group visiting KFC.
27%
42%
31%
INTERPRETATION
From the above graph it is clear that majority of customers are youngsters followed by middle
aged customers.
Q 3. OCCUPATION
4.3
35
OCCUPATION RESPONDENTS PERCENTAGE
STUDENT 34 34
SELF-EMPLOYED 26 26
PROFESSIONAL 27 27
HOUSEWIFE 13 13
TOTAL 100 100
Above data collection shows the customer occupation in percentage- 34% students, 26% self-
employed, 27%professional and 13% housewife. Students are mostly visiting KFC.
4.3
13%
34%
STUDENT
SELF-EMPLOYED
27% PROFESSIONAL
HOUSEWIFE
26%
INTERPRETATION
As per the above graph, majority of the customers are students (34%) followed by self-employed
(26%), professional (27%) and housewife (13%). This shows that students are more interested to
have food from KFC.
Q 4. MARITAL STATUS
36
4.4
MARITAL-STATUS RESPONDENTS PERCENTAGE
SINGLE 34 34
MARRIED 66 66
Above data collection shows the marital status of customer single 34%, married 66%. This
shows the attraction of the customers towards the food which are preferred to be more married
persons.
4.4
70
60
50
40
30
20
10
0
SINGLE MARRIED
INTERPRETATION
As per marital status we can see that 66% married person visit KFC while only 34% single
person visit there. This shows that couples enjoy more visiting KFC.
Q 5. MONTHLY INCOME
37
4.5
MONTHLY INCOME RESPONDENTS PERCENTAGE
BELOW 19999 40 40
20001-40000 30 30
40001-60000 18 18
60001 & Above 12 12
TOTAL 100 100
Above data collection shows the customer income level – below 20000(40%), 20000-
40000(30%), 40000-60000(18%), 60000 & Above(12%).
4.5
12%
30%
INTERPRETATION
Income level shows that 40% customers have below 20000 and 30% has 20000-40000 that
means 70% customers has income level below 40000. It shows that most of their income is less
than 20,000. Then also people are visiting KFC.
38
4.6
KFC RESPONDENTS PERCENTAGE
NO 0 0
4.6
100
90
80
70
60
50
40
30
20
10
0
YES NO
INTERPRETATION
We can see that every person is visiting KFC restaurant.
39
4.7
VISITORS RESPONDENTS PERCENTAGE
JUST MYSELF 0 0
FRIENDS 74 74
FAMILY 26 26
TOTAL 100 100
Data collection shows that most of them are visiting KFC restaurant with their friends.
4.7
26%
74%
INTERPRETATION
We can see that none of the customers are visiting KFC restaurant by them self. They are visiting
either with friends or family. This may be due to the interaction with others while having food in
KFC restaurant.
RATES
1 STRONGLY
DISAGREE
40
2 DISAGREE
3 NEUTRAL
4 AGREE
5 STRONGLY AGREE
1 2 3 4 5
41
4.8
RATE RESPONDENTS PERCENTAGE
1 8 8
2 12 12
3 20 20
4 28 28
5 32 32
4.8
0 5 10 15 20 25 30 35
RATE RESPONDNETS
INTERPRETATION
When we analyse the above data, it is clear that majority (32%) of customers agrees to the
variety of food that KFC offer and 8% with 1 star. Since KFC is providing with wide range of
menu, customers used to try combos.
1 2 3 4 5
42
4.9
4.9
29
26
25
11
9
5
4
3
2
1
1 2 3 4 5
RATE RESPONDNETS
INTERPRETATION
When we analyse the above chart, it is clear that majority (29%) of customers agrees to the taste
of the food provided by KFC followed by 4 star and 9% with 1 star. KFC has secret recipes
which provide taste to the food.
1 2 3 4 5
4.10
43
RATE RESPONDENTS PERCENTAGE
1 0 0
2 17 17
3 7 7
4 13 13
5 63 63
4.10
17%
1
7% 2
3
4
63% 13% 5
INTERPRETATION
When we analyse the above chart, it is clear that majority (63%) of the customers agrees to the
visual attraction and food presentation. Followed by 5 stars and none of them with 1 star. Visual
attraction encourages people to have more.
1 2 3 4 5
44
4.11
4.11
6%
14%
46%
34%
1 2 3 4 5
INTERPRETATION
When we analyze the above chart, it is clear that majority (46%) of the customers agrees to the
menu which reflects the dining followed by 5 stars and none of them with 1 star. KFC is
providing different kinds of combos which will attract customers.
1 2 3 4 5
45
4.12
4.12
RATE RESPONDENTS
50
45
40
35
30
25
20
15
10
0
1 2 3 4 5
INTERPRETATION
When we analyse the above chart, it is clear that majority (47%) of the customers agrees with the
price of the food served and none of them with 1 or 2 stars. This shows that even though the
price is much higher people used to visit KFC.
1 2 3 4 5
46
4.13
4.13
2
12%
5
28%
3
29%
4
31%
INTERPRETATION
When we analyse the above chart, it is clear that majority (31%) of the customers agrees with the
interior design and decorations and none of them disagrees. The ambience of the restaurant
makes people to enjoy their meal.
1 2 3 4 5
47
4.14
4.14
60
50
40
30
20
10
0
1 2 3 4 5
INTERPRETATION
When we analyse the above chart, it is clear that majority (51%) of the customers agrees with the
cleanliness of the furniture and none if them disagrees with it. Since the furniture is clean, it
shows the attraction level to the customers.
48
1 2 3 4 5
4.15
4.15
45
40
35
30
25
20
15
10
5 RESPONDENTS
RATE
0
1 2 3 4 5
RATE RESPONDENTS
INTERPRETATION
When we analyse the above chart, it is clear that majority of the customers (42%) agrees with the
air condition system of the restaurant and none of them disagrees with it. The temperature is well
maintained for the customers as not too high but will be able to spend for hours.
49
Q 11. RATE THE SEATING ARRANGEMENT IN THE RESTAURANT
1 2 3 4 5
4.16
RATE RESPONDENTS PERCENTAGE
1 3 3
2 17 17
3 25 25
4 11 11
5 44 44
4.16
1 2 3 4 5
3%
17%
44%
25%
11%
INTERPRETATION
When we analyse the above chart, it is clear that majority (44%) of the customers agrees with the
seating arrangement in the restaurant and only 3% agrees with 1 star. This shows that seating
arrangement is more comfortable for employees.
Q 12. RATE THE MUSIC AND SOUND THAT THE RESTAURANT PROVIDES
50
1 2 3 4 5
4.17
RATE RESPONDENTS PERCENTAGE
1 12 12
2 18 18
3 23 23
4 21 21
5 26 26
4.17
30
25
20
15
10
0
1 2 3 4 5
INTERPRETATION
When we analyse the above chart, it is clear that majority (26%) of the customers agrees with the
music and sound quality that the restaurant provides and 12% of the customers disagrees with it.
Music gives the customers different feeling to have food from the restaurant.
51
1 2 3 4 5
4.18
4.18
RATE RESPONDENTS
42
35
23
0 0 4 5
2 3 RESPONDENTS
1
RATE
1 2 3 4 5
INTERPRETATION
When we analyse the above chart, it is clear that majority of the customers (42%) agrees with the
staff behavior and none of the customers with 1 or 2 stars. Employees are behaving perfectly to
their customers.
52
Q 14. RATE YOUR OVERALL SATISFACTION LEVEL AT KFC RESTAURANT
1 2 3 4 5
4.19
4.19
RESPONDENTS
RATE
0 5 10 15 20 25 30 35 40 45
INTERPRETATION
When we analyse the above chart, it is clear that majority (39%) of the customers agrees with the
overall satisfaction level of KFC restaurant. Customers are satisfied with the employees as well
as the food in the restaurant.
STATISTICAL ANALYSIS
53
4.20
1 STAR
QUESTION RATE
1 8
2 9
3 0
4 0
5 0
6 0
7 0
8 0
9 3
10 12
11 0
12 0
2.66666666
MEAN 7
4.39696865
SD 3
54
4.20
LINEAR REGRESSION
14
12
10
4
f(x) = − 0.24 x + 4.26
R² = 0.04
2
0
1 2 3 4 5 6 7 8 9 10 11 12
SLOPE -0.2448
y- intercept 4.2576
Y=mx+b
Y=-
0.2448+4.2576 R2= 0.0403
CORRELATION 0.200749
4.21
2 STAR
55
QUESTION RATE
1 12
2 11
3 17
4 6
5 0
6 12
7 3
8 10
9 17
10 18
11 0
12 3
9.0833
MEAN 3
6.5707
SD 1
4.21
56
LINEAR REGRESSION
18
17 17
12 12
11
f(x) = − 0.4 x + 11.7
R² = 0.05 10
3 3
0 0
1 2 3 4 5 6 7 8 9 10 11 12
SLOPE -0.4021
y- intercept 11.697
Y=mx+b
y = -0.4021x + 11.697
R2= 0.0487
CORRELATION 0.22068
4.22
57
3 STAR
QUESTION RATE
1 20
2 25
3 7
4 14
5 22
6 29
7 27
8 11
9 25
10 23
11 23
12 27
21.083
MEAN 3
6.8947
SD 7
4.22
58
f(x) = 0
R² = 0 LINEAR REGRESSION
12
10
0
0 2 4 6 8 10 12
\
SLOPE 0.6678
y- intercept 16.742
Y=mx+b
y = 0.6678x + 16.742
R2=0.122
CORRELATION
0.34928
4.23
59
4 STAR
QUESTION RATE
1 28
2 29
3 13
4 34
5 31
6 31
7 51
8 42
9 11
10 21
11 35
12 31
MEAN 29.75
11.136
SD 5
4.23
60
f(x) = 0
R² = 0
LINEAR REGRESSION
12
10
0
0 2 4 6 8 10 12
SLOPE 0.2832
y- intercept
Y= mx+b
y = 0.2832x + 27.909
R2=0.0084
CORRELATION
0.09165
61
4.24
5 STAR
QUESTION RATE
1 32
2 26
3 63
4 46
5 47
6 28
7 19
8 37
9 44
10 26
11 42
12 39
MEAN
37.4176
SD
12.079
62
4.24
f(x) = 0
R² = 0
LINEAR REGRESSION
12
10
0
0 2 4 6 8 10 12
SLOPE -0.3042
y- intercept 39.394
Y= mx+b
y= -0.3042x + 39.394
R2= 0.0082
CORRELATION 0.09055
63
Chapter 5
Summary of Findings, Suggestions
and Conclusion
64
5.1 FINDINGS
43% customers are males and 57% are females who visits KFC at the time of survey.
40% customers are youngsters, under-25 who visits KFC.
Almost 34%of the respondents are students who visit KFC.
66% married customers at KFC.
40% customers have below-20000 income per month.
74% of the customers visits KFC with their friends.
32% of customer rates 5 star for the variety of food KFC offers where only 8% rates
1 star.
29% of the respondents rates 4 star for the taste of food and only 9% rates 1 star.
63% of the target population rates 5 star for visual attraction and food presentation
Around 46% of the total population rated 5 star for menu which reflects the image of
dining.
47 % of the target population gave 5 star for the price of food served.
31 % of the population gave 5 star for KFC interior design and decorations.
51 % of the target population gave 5 start rating for the cleanliness and furniture of the
restaurant.
32 % of the respondents gave 5 star for the air conditioning system of KFC restaurant.
44 % of the target population gave 5 star for seating arrangement in the restaurant, where
only 3% rated 1 star.
26 % of the target population gave 5 star for the music and sound that the restaurant
provides while 12% rated 1 star.
42 % of the target population rated 5 star for KFC staff according to their behavior.
Almost 35 % respondents gave 5 star for the overall satisfaction at KFC restaurant.
65
5.2 SUGGESTIONS
Even though KFC is popular among the famous fast food industry for more than a half century,
there is still having space for improvement from many aspects.
KFC should try to give more advertisement to increase their brand image appealing as a
lifestyle product.
KFC should work more upon their nutrition value of food and should an impression that
they are more interested towards the health of their customers.
KFC should also bring more variety in vegetable products which will add up more
vegetarian customers also.
Creating fun strategies such as entertainment week, birthday fun, friends feast, etc., could
increase the sales for KFC brand.
KFC can reduce their price which will bring the middle class customers also to their
restaurants.
KFC can focus on kids by providing special offers and packages that shows more
interested towards fast foods and children’s are vital customers who bring the entire
family to the restaurants.
66
5.3 CONCLUSION
The quick service retail industry has a tremendous potential and growing one third of its own
every year for a brand like KFC. The study helps to understand the importance of factors
influencing customer satisfaction towards the store. The important parameters that influences
customer satisfaction are Ambience of store, price, Quality of product, variety of products. The
study can be further expanded by studying in detail about more parameters of KFC retail outlets
using different research design and increasing sampling size in each brands.
Customers are visiting KFC with their friends or family and they are very much interested in
having the meal with the good atmosphere. It shows the quality of the food that KFC provide is
good that the customers used to visit more number of times. It can also be concluded that overall
satisfaction differs with various parameters.
67
BIBLIOGRAPHY
68
PETER,J.P.,&OLSON,J.C. (1999). Consumer behaviour and marketing strategy (5th ed.).
Boston, MA: McGraw-Hill.
PEDRAJA,M., and YAGUE, J., (2001). What information do customers choose when selecting a
restaurant? International journal of contemporary Hospitality management, 13(6), 316-318.
GOYAL, A., &SINGH, N.P.(2007). Consumer perception about fast food in India: an
exploratory study. British Food Journal, 109(2), 182-195.
SWAN,J. E.& OLIVER, R. L. (1989). Post-purchase communications by consumers. Journal of
Retailing, 65, 516–533.
ANDALEEB, S. S., & CONWAY, C.(2006). Customer satisfaction in the restaurant industry:
An examination of the transaction-specific model. Journal of Services Marketing, 20 (1), 3–11.
RYU, K., LEE, H-R., and KIM, G. W.,(2012).The influence of the quality of the physical
environment, food, and service on restaurant image, customer perceived value, customer
satisfaction, and behavioral intentions. International Journal of Contemporary Hospitality
Management, 24(2), 200-223.
ZHANG, Z., and LAW, R., (2013). Regional effects on customer satisfaction with restaurants.
International Journal of Contemporary Hospitality Management, 25(5), 705-722.
HANAYSHA, J.(2016). Testing the effects of food quality, price fairness, and physical
environment on customer satisfaction in fast food restaurant industry. Journal of Asian Business
Strategy, 6(2), 31-40.
LAHAP JOHANUDIN, AZLAN, R.I. & BAHRI, K.A. & SAID NORASLINDA ABDULLAH,
DAHLAN & ZAIN RAZLAN. (2018). The effect of perceived waiting time on customer's
satisfaction: A focus on fast food restaurant. International Journal of Supply Chain Management.
7 (5)259-266.
MUALA, A.A.(2018). Influence of Viral Marketing Dimensions on Customer Satisfaction in
Fast Food Restaurants in Jordan. Journal of Management and Sustainability, 8(1), 149-155.
SZYMANSKI, D.M. & HENARD, D.H. (2001). Customer satisfaction: A meta-analysis of the
empirical evidence. Journal of the Academy of Marketing Science, 29 (1), 16-35.
ZALATAR, W.F.(2017). Service quality and customer satisfaction in fast food restaurant: A
customer comparison using discriminant analysis
69
WEBSITES
KFC (www.kfc.com)
KFC- Yum Brands (www.yum.com)
About KFC (www.kfc.ps)
Scribd.com
Google search
Wikipedia.com
70
ANNEXURE
QUESTIONNAIRE
Demographic details
1.Age?
A. 18-25
B. 26-34
C.35-50
D. 50 and above
2.Gender?
A. Male
B. Female
3.Occupation?
A. Student.
B Self- Employed.
C. Professional.
D. Housewife.
4.Marital status?
A. Single
B. Married
5. Monthly income?
A. Below 20000 B. 20000-40000 C. 40000- 60000 D. 60000 & Above
8. Rate the restaurant according to the variety of food that they offer
1 2 3 4 5
71
1 2 3 4 5
1 2 3 4 5
11. Rate the menu which reflects the image of the dining
1 2 3 4 5
12. Rate the restaurant according to their price of the food served
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
17. Rate the music and sound that the restaurant provides
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
20. Give some suggestions to KFC restaurant for improving customer satisfaction
72