...Which Elements are Important to Customers in Fast Food Restaurants: Food quality, Time, and Price. Introduction A phenomenon anyone can easily observe is that people eat more meals outside their home than before(Kara, Kaynak, & Kucukemiroglu, 1997), and fast-food has increasingly become popular over the past decades (Pereira et al., 2005). When people are short of time, sick and tired of preparing for meals at home, or hatred to waiting, they willingly go out and eat meals. According to some authors (French, Story, Neumark-Sztainer, Fulkerson, & Hannan, 2001), between 1977 and 1995 the fast-food industry had experienced 200% rapid growth whereas other restaurant industry had been grown only by 150%. Adolescents visit a fast food restaurant more than twice every week on average, indicating that out of at least two-and-a-half of the away-from-home meals are eaten by them, and this trend is expected to continue in the future (French, et al., 2001). According to Namkung and Jang (2007), the very first objective of business is to satisfy customers, and in turn, have them repurchase. Food quality is one of the most important reasons that we repeatedly patronize a certain restaurant because after all is said and done, the fundamental reason of going to restaurants is to have meals. Therefore, food quality has received by far more attention from researchers than any other elements of restaurants (Jang, Ha, & Silkes, 2009), and their efforts have been continued on...
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...REVIEW OF LITERATURE OF FAST FOOD INDUSTRY Previous Research on fast food Industry has shown us a light in this project: The Research done by UCLA Anderson assistant professor Raphael Thomadsen. He presented the result in the paper entitled, ³Seeking an Aggressive Competitor: How Product Line Expansion Can Increase All Firms¶ Profits.´ According to him, if a McDonald¶s and a Burger King compete in the center of a small town, and a Burger King opens in the suburbs, it can boost profits for the McDonald¶s store. In previous research, Thomadsen demonstrated that prices at fast food outlets located near other outlets belonging to the same chain often charge high prices to avoid cannibalizing sales between the two outlets. These price differences can be large, with prices at many restaurants 20 percent or more higher than they would be if the restaurant owners did not worry about cannibalization. Now he finds that a firm may also charge higher prices when faced with a new competitor or product. He said that product-line expansion would affect profits .He said that when a firm adds products to its line, the profits of the incumbent firms in the market must go down. He used a standard economic model in this study. ³Consumers have different utility preferences,´ He explains that some people like one type of food while other people like a different type. There are also variations in location. So model consumers based on preferences, location and other factors likely to affect their behavior...
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...the fast food industry and the effects it has on the health industry, childhood obesity rates and the lack of informed citizens. Zinczenko uses numerous rhetorical devices in order to show the readers that the youth lack the understanding as well as the information needed to efficiently maintain a healthy lifestyle, he makes it clear that fast-food patrons are not to be solely blamed for their health problems, but in fact the fast food industry should be held accountable as well. Describing his childhood Zinczenko appeals to the audience using pathos as he creates the image of a ‘latchkey kid’ that had a ‘daily choice between McDonald’s, Taco Bell, Kentucky Fried Chicken or Pizza hut’ he states that he sympathizes with fast food patrons due to his upbringing being raised by a single mother working long hours. Zinczenko states that he ‘got lucky’ and joined the Navy reserves thus...
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...CHAPTER II- LITERATURE REVIEW In today's competitive environment it is very important for marketing managers to utilize the complete variety of marketing mix tools to achieve maximum result and one of these marketing tools is sales promotion which has been very important in the food retail division(Sue Peattie; 1998). Nowadays several promotional tools such as coupons, bonus packs, free samples and sweepstakes are very commonly practiced activities offered by manufacturers to its consumers but the next step which is the consumer response to these activities has not been understood well in this regard (Chem L. Narayan and P.S. Raju; 1985). So keeping in mind the importance of consumer's reactions and response towards promotional campaigns of organizations in order to implement these promotional activities successfully, the influence of these promotional activities on sales and consumer decision is going to be analyzed. Promotional campaign is an attempt to influence the consumer buying decision; and promotional strategist is a functional behavioral analyst who finds the nature of the response towards any promotional activity and seriously weighs up the facts and support provided by the respondents via behavioral research in order to achieve utmost results and efficient findings (Peter L. Wright; 1973). The impact of advertising on the purchasing behavior of the consumer has been acknowledged in the marketing literature while the impact of promotional activities has given lees...
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...Management and Economics 2013 Fast food consumption: Identifying working women’s attitudes towards consumption of fast food A.H.B. Sajani Rasanthikaa, T.S.L.W. Gunawardana b a Department of Marketing,University of Ruhuna, Matara, Sri Lanka sajani87@yahoo.com b Department of Marketing,University of Ruhuna, Matara, Sri Lanka gunawardana@badm.ruh.ac.lk Abstract The study focuses on examining working women’s attitudes towards the consumption of fast food. Five, literature supported, hypotheses were derived and tested to examine the attitudes in relation to the perceived taste, perceived quality, perceived nutrition value, perceived convenience and perceived price of fast food. A survey was conducted using 177 working women in Matara district, Sri Lanka. Structural equation modelling was employed for data analysis. The results showed that perceived convenience of fast food has a significant positive effect over fast food consumption whilst taste, nutrition value and price give a positive but not significant effect. However, perceived quality of fast food indicates a negative but non-significant effect on fast food consumption. Keywords: Fast Food consumption, working women 1. Introduction Fast food industry is not only a transformation to the traditional diet, but also a new trend to the landscape, economy, workforce and it has created a popular culture within a short period of time (Schlosser, 2001). Fast food can be identified as one of the main food choices of people today....
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... Those that are affected the most are citizens that live in low socioeconomic status communities due to lack of education and lack of resources. There are shortages of grocery stores and markets that offer fresh fruits and vegetables thus communities rely on fast food restaurants and convenient stores for food. Furthermore lack of fresh food coupled with physical inactivity is the main reason for the rise of childhood obesity and obesity in general in the past 30 years. Creating safe places for children to play as well as providing food and resources is the only way to eliminate the ongoing obesity epidemic. Growing up there has always been a certain degree of importance placed on the diet and living a healthy lifestyle to live a long and successful life. As of late there has been a boom in fitness sales, gym memberships, and importance on diet and quality food consumption, yet in the past 30 years the United States has seen a drastic increase in the amount of obese individuals. With social media and so many other health initiatives taking place across the country, why is there still a rise in obesity levels amongst adolescents and adults? This shift in weight can be attributed to numerous sources such as fast food consumption, overall poor diet, sedentary lifestyle, and a shift on career focus, but one of the main factors that people often don’t take into account is how financial constraint can affect ones health. If one does not have the financial security, they often...
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...[pic] ASSIGNMENT COVER SHEET (INDIVIDUAL OR GROUP) Please complete and attach this form to your assignment. All assignments must be submitted to lecturer on the stipulated submission date. |Name || | |Unit Code |BUS235 |Unit Name |Market Research & Analysis | |Class Code |PT-BUS35G | |Local Lecturer’s name |Ms Mona | |Assignment No. (i.e. 1,2,3) or ‘short answer’ |Assignment 3: Research Report – | | |Final Research Report | Your assignment should meet the following requirements. Please confirm this by ticking ( the boxes before submitting your assignment √ My assignment is double-spaced and clearly legible √ My assignment is written on one side of page only √ I have provided a wide margin (4 cm) on left-hand side of page √ The first page of my assignment is clearly labelled with my name, unit no, unit name and tutor’s name. √ I have retained a copy of my assignment ...
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...companies with vast agricultural estates. Due to rapid population growth and escalating commodity prices, increasing food self-sufficiency is a major concern. Similarly, food produced from large agricultural estates results in the Philippines being a major producer of sugar, rice, corn, tropical fruits, poultry, and pork. Manufacturing and agriculture comprise more than half (65%) of the country’s economy, and the agrifood sector employs over one-third of the population. Calata corporation (one of the biggest agricultural conglomerates, 2.7 billion) | 2. Availability of substitute inputs | The Philippines’ food processing sector is the most dominant manufacturing sector in the country. It accounts for 40% of total manufacturing output, contributes 20% of GDP per annum and is growing at 8-10% per annum. The sector comprises of fruits and vegetables, meat and poultry, flour, dairy products, fish and marine products, and the like. This sector is heavily reliant on both domestically produced and imported agrifood products. Recent economic liberalizations by the government has resulted in a trading system that’s relatively open and has some of the lowest applied tariffs in the region. (membership to the WTO, ASEAN, AANZFTA) Victorian agrifood exporters, together with other local agrifood providers, can be sources of agricultural products. (Roache, 2009) | 3. Importance of suppliers’ input to buyer | When it comes to agricultural products, about 80 per cent of our raw materials are...
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...Fast Food Workers’ Rights At a glance it is easy to see that the winning formula for the high economic success in the fast food industry is comprised of cheap food and cheap labor. Their ability to sell food at a low price in a matter of minutes caters to families or individuals limited on time or money, and in many cases both of these factors are of equal importance. Inordinately the consumption of low cost labor in the fast food industry has resulted in an underpaid and under protected workforce. In many ways limitations on workers’ rights in the fast food industry have been instrumental in the high profitability of the corporations that dominate it; however, the formation of unions or other sources of support for fast food workers would have implications on the price and/or quality of the final products sold. These implications, in particularly the price of the food, would force a complete restructure of the expectations and needs of customers who currently frequent the restaurants. A key element in sourcing low cost labor has been the excessive employment of teenagers. The fast food industry has exploited the needs and vulnerability of teenagers in order to create a high turnover workforce that is willing to accept low wages and easily taught. The industry has capitalized on assembly line production models, which require little skills from the workers; however, the machinery necessary for these conditions is often times dangerous and violates OSHA guidelines for...
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...dream of becoming a doctor. Looking for a way to pay for his education, a family friend suggested he open a submarine sandwich shop. friend-Dr loans $ 1,000. Peter Buck-offered to become Fred's partner, reached a business relationship will change the landscape of the fast food industry. Connecticut Bridgeport first store opened in August this year, 1965. Then, they set a goal of 32 stores open for 10 years. Fred quickly learned the basics of doing business, as well as a producer of the importance of excellent service, high quality products and provide excellent customer service, maintaining low operating costs and looking for a great location. These early lessons from around the world continue to serve as the basis of a successful restaurant Subway. SUBWAY, the Franchise By 1974, he owned and operated 16 submarine sandwich shops in Connecticut. Realize they will not achieve the target time of 32 shops, they began franchising, subway ® brand to launch a period of significant growth and continues to this day. A Fresh Future Today, the subway ® brand is the world's largest submarine sandwich chain with more than 37,000 worldwide locations. We have become the main choice of people looking for a quick, nutritious food, the whole family can enjoy. From the beginning, Fred has a clear vision of the future metro ® brand. We continue to grow, for customer service, he guided us warm fresh delicious, custom-made sandwiches. 2.2 Market Situation of the Company The Analysis Strategy ...
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...Topic 1: What factors affect the consumer's perceptions of fast food and its services? Summary: The two studies by M.K. Brady et al and Kim et al are concerned with the same question: what factors affect the consumer’s perceptions of fast food and its services? But while Kim et al. focuses on American college students to find out what factors that segment finds favourable in a fast-food service, M.K. Brady et al takes their study to the international level to find out how different cultural values can affect the consumer’s behavioural intentions relative to the fast-food industry and its services. Both articles agree that the majority of America customers prefer to trade-off between quality of services and expenditure required (expense-conscious). The American consumer tends to judge consumption of goods and services with a ‘neutral’ and logically based mindset; always asking the question of “is it worth my money?” Kim et al claims that due to relatively inexpensive, quick and convenient service, fast-food is becoming more and more popular among college students in North America. How could restaurants attract this emerging market? Further discussing in particular the college student market, and selecting Wendy’s, Burger King and McDonald’s as target examples will figure out the way to attract college students in fast-food services restaurant. Several factors are taken into consideration, including low price, quality food, fast service, and variety of menu, variety of healthy menu,...
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...Importance of Healthy Restaurants in University Campuses: An Annotated Bibliography Pelletier, J. E., & Laska, M. N. (2013). Campus food and beverage purchases are associated with indicators of diet quality in college students living off campus. American Journal of Health Promotion, 28(2), 80-87. This journal examines the relationship between the dietary patterns of college students and the frequency of purchasing foodstuffs and beverages from campus restaurants, fast foods and bringing packed lunch from home. This is important in the quest to ensure the health requirements and overall wellness of students is catered for. A research is conducted in one community college and one public university, both in Twin Cities, Minnesota. The target...
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...Soma Sandeep Herzing University, Atlanta Abstract McDonald’s, a fast food chain known for its quality and service, is pursuing a global expansion strategy that has brought the famous golden arches to more than 120 different countries. The question is why go abroad when MCD has more than 13,000 restaurants in the United States and serves up to 40% of the hamburgers that the Americans consume. From extremely modest beginnings, they hit on a winning formula selling a high quality product cheaply and quickly. . The best way to achieve this was through offering franchises. Today, over 70 percent of McDonald's restaurants are run on this basis. In the UK, the first franchised restaurant opened in 1986 - there are now over 1,200 restaurants, employing more than 70,000 people, of which 34 percent are operated by franchisees. McDonald’s Expands Globally While Adjusting Its Local Recipes. McDonald’s is the biggest chain of restaurants in the world serving nearly fifty million customers per day (McDonalds, 2011). . Situation Analysis: Political Factors the policies of government affect mc Donald’s in various ways Economic factors he economy goes through a series of fluctuations associated with general booms and slumps in economic activity. Businesses will be more encouraged to expand and take risks when economic conditions are right, e.g. low interest rates and rising Social factors currently affecting the food chain has been the rising agitation for green restaurants with hotels...
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...the Company develops, operates, franchises and licenses a worldwide system of restaurants which prepare, package and sell a menu of competitively priced food items. Their restaurant brands – KFC, Pizza Hut and Taco Bell – are the global leaders of the chicken, pizza and Mexican-style food categories. Their goal is to continue to build three global, iconic brands that people trust and champion. They are evolving KFC, Pizza Hut and Taco Bell into more relevant, engaged, connected and caring global brands. Industry/Strategy analysis Industry Analysis Demand Even though US encounters cautions consumer spending, sluggish economic growth in the first quarter of 2014, customers’ demand in the restaurant industry is still stabilizing after years of declines, which can be found from the recent US sales trends. According to S&P industry surveys, the largest US restaurants as a group continued to recover in 2013 from the great recession. There are a number of reasons discussed as following: First, fast-food restaurant consumption is an important lifestyle for each individual. Restaurants are offering products and services that consumers actively seek out and enjoy; an activity in which consumers is selecting to engage despite cash-on-hand restraints because it is an important component of their lifestyle. Second, fast food restaurants’ pricing practices and product design target people who are lower-income, are driven by cost and taste more than nutrition concerns, and have...
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...Leadership Five Guys’ Burgers and Fries, a family owned franchise is one of the fastest growing chains in America (Better Burgers Starts to Sizzle in Canada, 2012). Five Guys’ Burger and Fries sets itself apart from other fast food chains by using quality ingredients and keeping a constant core menu. Jerry Murrell, founder and owner says the business plan from the start is still the business plan today. “Sell a really good, juicy burger on a fresh bun. Make perfect French fries. Don't cut corners.” (Welch 2010) There are advantages to a family-owned business that give Five Guys’ Burgers and Fries unique edge. Also, Five Guys’ Burgers and Fries focus on the customer has helped their marketing efforts tremendously. Murrell’s philosophy for the successful franchise is different then most fast food franchises in that the focus is on quality food. Many fast food franchises serve frozen beef patties and dehydrated frozen fries. Five Guy’s Burger and Fries actually soaks their fries in water, then pre-fries them forming a seal so that when they get fried a second time, they don't absorb any oil -- and they're not greasy. (Welch 2010) Five Guys’ Burger and Fries also differs from other food chains by keeping the core menu. Murrell doesn’t want to serve subpar food so they stick with a limited menu and execute it well. Murrell also implements third party quality control. “If they get a good score, they will split another $1,000 among them, usually five or six people per crew.” (Welch...
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