6 Zijmr Vol5 Issue6 June2015

7/24/2019 6 Zijmr Vol5 Issue6 June2015

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ZENITH International Journal of Multidisciplinary Research ______________ISSN 2231-5780

Vol.5 (6), JUNE (2015)Online available at zenithresearch.org.in

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COMPARATIVE STUDY ON CUSTOMER SATISFACTION TOWARDS

KFC AND MCDONALDS, CHENNAI

M.MONDURAILINGAM*, V.JEYASEELAN ** AND A.K.SUBRAMANI***

* I YEAR M.B.A,VEL TECH BUSINESS SCHOOL, VEL TECH UNIVERSITY,

AVADI, CHENNAI600062. TAMILNADU, INDIA.

**I YEAR M.B.A,VEL TECH BUSINESS SCHOOL, VEL TECH UNIVERSITY,

AVADI, CHENNAI600062. TAMILNADU, INDIA.

*** ASSISTANT PROFESSOR,VEL TECH BUSINESS SCHOOL, VEL TECH UNIVERSITY,

AVADI, CHENNAI600062, TAMILNADU, INDIA.

ABSTRACTThe international market is flooded with various sectors and industries that involve products

of daily as well as occasional use for the consumers.In todays competitive world, Service Quality

has become one of the most strategic tools for measuring customer satisfaction. The main objectiveof the study is to compare customer satisfaction level towards KFC and McDonalds, Chennai.Descriptive research is followed in this research. The universe of the population includes the

respondents who are the customers of KFC and McDonalds, located at Mogappair, Chennai. The

samples (i.e. sample size 50) were selected among the customers of KFC and McDonalds, locatedat Chennai for this research. The major findings of the study are 22% of KFC customers and 18%

of McDonalds customers are not opined either positively or negatively with respect to the quality of

food. 18% of KFC customers and 12% of McDonalds customers are not satisfied with price of thefood. 24% of KFC customers and 18% of McDonalds customers are satisfied with taste of the

food.Both the food giants have given each other immense competition in terms of customer

satisfaction, service quality and promotional strategies.

KEY WORDS:Customer satisfaction, Fast food industry, Food and beverage services,

Food retail chain, KFC, McDonald.

I. INTRODUCTIONIndian consumers lifestyle has immensely helped the fast food industry to mature and

expand over the last few years. Other reasons like rising number of nuclear families, exposure towestern cuisine and global media, growing number of working women - have had a substantial


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impact on the eating out trends and growth of the fast food industry. The industry experts consider

that the middle class young population, with high disposable income, will spend more on eating outat chained fast food outlets. The demand for ready-to-eat packaged food is also expected to record

strong growth in the country.

In todays competitive world, Service Quality has become one of the most strategic tools formeasuring customer satisfaction. Customer satisfaction is actually how customer evaluates the

ongoing performance (Gustafsson, Johnson and Roos, 2005). Customer satisfaction is very

important in todays business world as the ability of a service provider to create high degree ofsatisfaction is crucial for product differentiation and developing a strong relationship with

customers (Deng et al., 2009). Because of the above reasons the companies consider customer

satisfaction as very important element while devising their core strategies. Moreover, the concept of

customer satisfaction gained so much importance that American Customer Satisfaction Index(ACSI) was developed.

II. COMPANY PROFILE

a) About McDonaldsThe McDonalds restaurant concept was introduced in California by two brothers named

Dick and Mac McDonalds of Manchester. The business was founded in 1940 by these 2 brothers. It

is the world's largest fast food chain, selling primarily hamburgers, chicken, French fries andcarbonated drinks. It was later modified and expanded by their business partner, Ray Kroc who

later bought out the business of the McDonalds brothers and went on and found McDonald's

Corporation. Advertising has always played a key role in the development of the McDonald'sCorporation. Indeed, McDonald's ads have been some of the most identifiable over the years. In

1962, McDonald's introduced its now world-famous Golden Arches logo. A year later, the company

sold its billionth hamburger and introduced Ronald McDonald, a red-haired clown designed to

appeal to children. McDonald's restaurants are found in 120 countries and serve nearly 54 million

customers each day. Most of the McDonaldsrestaurants offers both counter services and homedeliveries up to certain distances. At the end of 2003 there were over 6oo McCafes worldwide.

b) About KFCKFC (the name was originally aninitialsfor Kentucky Fried Chicken) is a fast food

restaurant chain that specializes in fried chicken and is headquartered in Louisville, Kentucky, in

the United States. It is the world's second largest restaurant chain (as measured by sales)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 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 througha series of changes in corporate ownership with little or no experience in the restaurant business. In

the early 1970. The chain has since expanded rapidly in China, which is now the company's singlelargest market. PepsiCo spun off its restaurants division as Tricon Global Restaurants, which later


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changed its name to Yum! Brands. KFC's original product is pressure fried chicken pieces,

seasoned with Sanders' recipe of 11 herbs and spices. The constituents of the recipe represent anotable 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. Since the early 1990s, KFC has expanded its menu to offer other chicken products suchas 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 likeKFC" and "So good."

III. REVIEW OF LITERARTURE

Schlosser E. (2001) pointed out the most frequently reported reasons for eating at fast-foodrestaurants were fast food is quickly served. Laroche and Parsa (2000) found that that people decide

to choose fast food restaurant because they like the taste and prefer instant satisfaction of their taste

buds. Fast food restaurant include a wide range of quick and fast service, brands and take only short

period to serve it. Consumer make their choice of brands in multi brand situation is one of leastunderstood yet important phenomenon in the marketing of Quick Service Restaurant - Fast Food

Restaurant. French SA et al, (2001) pointed out that visiting fast food restaurant is to spent time

with family and friends. Drewnowski and Spectre, (2000) contends that one of the factor thatinfluences consumption of fast food is by socio-economic status. There is a difference between

people who have high income with people who is have low income. Usually people with low

economic status prefer roadside stalls which are inexpensive; hygiene is not a criterion for them.

Agnes K.Y. Law, Y.V. Hui, Xiande Zhao, (2004) have studied on Modeling repurchase

frequency and customer satisfaction for fast food outlets. In this study, the relationships between

customer satisfactions; repurchase frequency, waiting time and other service quality factors in fast

food outlets are modeled. Results shows that waiting time, staff attitude, food quality and foodvariety all significantly affect customer satisfaction.

Ronald Gilbert, Cleopatra Veloutsou, Mark M.H. Goode, Luiz Moutinho, (2004) have

studied on Measuring customer satisfaction in the fast food industry: a cross-national approach.

This study provides a cross-cultural comparison of service satisfaction of fast food establishments

in four English-speaking countries. It is based on data collected from customers of five globally-franchised fast-food chains, using a previously developed service satisfaction instrument. The study

reveals two empirically derived, cross-cultural fast-food customer satisfaction dimensions:

satisfaction with the personal service and satisfaction with the service setting.

Monika J.A. Schrder and Morven G. McEachern, (2005) have studied on Fast foods andethical consumer value: a focus on McDonalds and KFC. This paper aims to investigate the effect

of communicating corporate social responsibility (CSR) initiatives to young consumers in the UKon their fast-food purchasing with reference to McDonalds and Kentucky Fried Chicken (KFC).


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Most respondents (82 per cent) regularly purchased fast food from one of the companies; purchases

were mostly impulsive (57 per cent) or routine (26 per cent), suggesting relatively low-levelinvolvement in each case. Four factors were isolated, together explaining 52 per cent of the variance

in fast food purchasing behaviour. They were brand value, nutritional value, ethical value and food

quality.Sandeep Singh Chib (2012),in his paper analyzed the customer satisfaction level related to

KFC and McDonald. It aims at knowing which of the companies (KFC or McDonald) is doing

better in terms of service quality and also to know which of the companies (KFC or McDonald) ishaving more overall customer satisfaction. The researchers have used self-administered

questionnaire which is having two sections. First section comprises of statements related to

customer satisfaction, derived from Customer Satisfaction Questionnaire (CSQ-8, C. Clifford

Attkisson 1979) and American Satisfaction Customer Index (ASCI, University of Michigan 1944).The second section comprises of statements related to service quality, derived from SERVQUAL

statements to collect primary data. The investigator has used ANOVA (Univariate), Descriptive

Statistics, correlation and regression, KMO and Bartlett Test and Factor Analysis in order to

achieve the research objective. The study reveals that KFC was having better service quality andoverall customer satisfaction as compared to McDonald. This paper offers suggestions for adoption

of customer satisfaction techniques pertaining to Fast food Industry. Finally, the scope for further

research also spelt out concisely.Vanishree, M, and Shanthi, L (2013), in their paper discussed about customer awareness and

satisfaction towards KFC in Coimbatore. The demand for ready-to-eat packaged food is also

expected to record strong growth in the country. After the liberalization policy that came in force in1991, fast food industry has grown in India as multinational fast food providers have set up their

business either jointly with Indian partners or independently. In 1995, Kentucky Fried Chicken

(KFC) also entered the Indian market and opened its outlet in Delhi. With changing life style and

aggressive 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 inevitable. Hence, the researcherhas chosen this area for the study. Tools like descriptive analysis, chi square analysis and average

rank analysis are tested to identify the awareness and satisfaction level of KFC customers.Kinnarry Thakkar and Mrunmayee R.Thatte (2014), in their study attempted to study the

consumer perception about two important food franchise, McDonalds and KFC. The study is an

explorative study based on primary data collected from 150 respondents in Thane city through a

structured questionnaire. Various factors like variety of food items, quality, taste, ingredients etc.are analyzed to study consumer perception about food franchise. The study revealed that price of

the food items affect the frequency of visits to food outlets.

IV. OBJECTIVES OF THE STUDYPrimary Objective:

To compare customer satisfaction level towards KFC and McDonalds, Chennai.


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Secondary Objectives:

To identify the relationship between demographic variables and factors of customersatisfaction towards KFC and McDonalds.

To compare the satisfaction level of KFC and McDonalds customers.

To access the user satisfaction towards service, Hygienic, Advertisement, delivery of theproducts.

VRESEARCH METHODOLOGYDescriptive research is followed in this research. The universe of the population includes the

respondents who are the customers of KFC and McDonalds, located at Mogappair, Chennai. The

samples (i.e. sample size 50) were selected among the customers of KFC and McDonalds, located

at Chennai for this research. The samples were chosen from the population, by using Conveniencesampling technique (i.e. Non-probability sampling technique), because the exact population size is

unknown and the accessibility of the customer is difficult. Survey method of data collection was

used in this research. The primary data were collected using structured questionnaire.

VIDATA ANALYSIS AND INTERPRETATION

1. FREQUENCY ANALYSIS:

Descriptive statistics is used to describe the nature of the population. In this part of analysis,descriptive statistics tools such as frequency table, cross tabulation, mean and standard deviation

were used to analyze the data.

Table 1 Frequency table Classification of the respondents based on demographic variables

S.No Particulars Frequency Percent

Gender Group

1 Male28 56.0

2 Female 22 44.0

Qualification Group

1 S.S.L.C/H.S.E 10 20.0

2 U.G 20 40.0

3 P.G 15 30.0

4 Others 5 10.0

Occupation Group

1 Student 10 20.0

2 Employee 23 46.0

3 Self Employed/ Business 14 28.04 Others 3 6.0

(Source: Primary Data)


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From the above table 1, it is inferred majority(56%) of respondents are male and the

remaining (44%) are female. 30% of the respondents are PG Qualified. 46% of respondents areemployed.

Table 2. Frequency table- Personal details

S.No Particulars Frequency Percent

Type of Food consumption

1 Vegetarian 2 4.0

2 Non vegetarian 48 96.0

Accompanied person to the restaurant

1 Family 4 8.0

2 Friend 36 72.0

3 Alone 5 10.0

4 Others 5 10.0

(Source: Primary Data)Table 2 presents that, most (96%) of the respondents are non-vegetarian. Majority (72%) of respondents are

accompanying friends to visit KFC or McDonalds.

2. CROSS TABULATION

Table 3. Cross tabulation for Overall satisfaction towards KFC and McDonalds* Type of

food consumption

Type of food consumptionType of food consumption

TotalVegetarian Non vegetarian

KFC

Overall

satisfaction

towardsKFC

Highly dissatisfied 0 3 3

Dissatisfied 0 1 1

Neutral 0 12 12

Satisfied 0 4 4Highly satisfied 0 5 5

Total 0 25 25

McDonalds

Overall

satisfaction

towardsMcDonalds

Dissatisfied 0 2 2

Neutral 0 13 13

Satisfied 1 6 7

Highly satisfied 1 4 3

Total 2 25 25

Total

Overall

satisfaction


Dissatisfied 0 3 3

Neutral 0 25 25

Satisfied 1 10 11


Total 2 48 50



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Table 3 presents that, only 4% respondents are vegetarians, and that too they are the

customers of McDonalds, these two customers are satisfied with McDonalds. In Non-vegetarianscategory, out of 96% of respondents, 48% are the customers of KFC and another 48% of are

McDonalds.Out of Non-vegetarians. 16% of respondents from KFC are satisfied and 22% of

respondents are satisfied in overall manner.

Table 4.Cross tabulation - Customer Satisfaction towards the KFC and McDonalds

S.No ParticularsFast food Restaurant Total in

%KFC in % McDonalds in %

1Frequency ofVisit

Once a week 8 4 12

Once in 2 Weeks 22 26 48

Once in a month 18 16 34

Once in 6 months 2 4 6

2 Accompanyingperson

Family 2 8 8

Friend 38 34 72Alone 10 10 20

3

Average

expenses in a

visit

Below Rs. 100 0 4 4

Rs. 100 to Rs. 500 16 24 40

Above Rs. 500 34 22 56

4 Price of food


Dissatisfied 18 12 30

Neutral 10 18 28

Satisfied 20 14 34Highly satisfied 2 6 8

5 Quality of food


Dissatisfied 4 8 12

Neutral 22 18 40

Satisfied 22 20 42


6 Taste of food


Dissatisfied 4 4 8

Neutral 16 22 38Satisfied 24 18 42



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7Freshness of

the food


Dissatisfied 0 2 2

Neutral 24 28 52

Satisfied 12 14 26


8PreparationTime of KFC


Dissatisfied 4 0 4

Neutral 24 30 54

Satisfied 18 16 34


9Variety of

foods


Dissatisfied 12 0 12

Neutral 12 24 36

Satisfied 24 26 50


10Hospitality ofthe staff


Dissatisfied 6 0 6

Neutral 18 16 34

Satisfied 18 28 46


11Environment of

KFC


Dissatisfied 8 0 8Neutral 12 10 22

Satisfied 22 32 54


12Advertisement

attractiveness


Dissatisfied 2 0 2

Neutral 14 10 24

Satisfied 16 26 42


13

Attractive

advertisement

of KFC

Highly dissatisfied 0 0 0Dissatisfied 2 0 2

Neutral 14 10 24

Satisfied 16 26 42


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14 Home deliveryof food


Dissatisfied 0 0 0

Neutral 20 22 42Satisfied 20 18 38


15Favourite

restaurant

KFC 18 8 26

McDonalds 12 14 26

Both 20 28 48

16

Overallsatisfaction

towardsrestaurant


Dissatisfied 2 4 6

Neutral 26 24 50

Satisfied 8 14 22



inference:

From the above table 4, it is inferred that the 48% of respondents visit KFC or McDonalds

once in two weeks. Majority (72%) of respondents visit KFC or McDonalds with their friends. 40%

of customers spends between Rs.100 and Rs.500 in KFC or McDonalds restaurants. 22% of KFC

customers and 18% of McDonalds customers are not opined either positively or negatively with

respect to the quality of food. 18% of KFC customers and 12% of McDonalds customers are not

satisfied with price of the food. 24% of KFC customers and 18% of McDonalds customers are

satisfied with taste of the food.

3. INDEPENDENT SAMPLE T-TEST:

HYPOTHESIS 1

Null Hypothesis:

There is no significant difference between Vegetarian and Non-vegetarian respondents with respectto the factors of customer satisfaction towards KFC and McDonalds.


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Table 5. Independent sample t test for significant difference between vegetarian and non-

vegetarian with respect to preference towards food items of KFC and McDonalds.

Type of food preferred

Overall satisfaction tvalue p value

Highly

Dissatisfied

Dissatisfied

Neutral

Satisfied

Highly

Satisfied

3.539 0.472

Vegetarian 0 0 0 1 1

Non vegetarian 3 3 25 10 7

Total 3 3 25 11 8


Inference:Table 5 depicts that, p value is 0.472, which is greater than 0.05, so null hypothesis is

accepted and alternative hypothesis is rejected at 5% level of significance. Hence it is concluded

that there is no significant difference between vegetarian and non-vegetarian respondents withrespect to preference towards food items of KFC and McDonalds

.ONE-WAY ANOVA TEST

HYPOTHESIS 2Null Hypothesis: There is nosignificant difference between qualification of the respondents and the

customer perception towards price, quality and tasteof the food with regard to McDonalds and KFC

products.\

Table 6. One-way ANOVA for significant difference between qualification of the respondents

and the customer perception towards price, quality and taste of the food with regard toMcDonalds and KFC products

Particulars F value p value

Price

Between Groups

.944 0.427Within Groups

Total

Quality

Between Groups

1.233 0.308Within Groups

Total

Taste

Between Groups

2.102 0.113Within GroupsTotal



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Inference:

The table 6 shows that, the p value is greater than 0.05 for all the factors of customersatisfaction, so the null hypothesis is accepted and alternative hypothesis is rejected at 5% level of

significance. Hence it is concluded that there is no significant difference between qualification of

the respondents and the customer perception towards price, quality and taste of the food with regardto McDonalds and KFC products.

VII. DISCUSSIONS:

The customers are mostly satisfied towards the price, quality and taste of KFC products.

According to Hygiene, Preparation time, Nature of product and hospitality McDonalds was

prepared much.

There is no significant relation between vegetarian and non-vegetarian respondents to prefer theproduct of KFC and McDonalds.

There is no relation between qualification of the respondents and the price, quality and taste of

McDonalds and KFC products.

48% of respondents visit KFC or McDonalds once in two weeks. Majority (72%) ofrespondents visit KFC or McDonalds with their friends. 40% of customers spends between

Rs.100 and Rs.500 in KFC or McDonalds restaurants.

22% of KFC customers and 18% of McDonalds customers are not opined either positively or

negatively with respect to the quality of food. 18% of KFC customers and 12% of McDonalds

customers are not satisfied with price of the food. 24% of KFC customers and 18% of

McDonalds customers are satisfied with taste of the food.

VIII. IMPLICATIONS:

From the survey we come to know that the number of customers were fond of non-veg

products of both KFC and McDonalds. So, importance of products were given only to non-veg

customers.

From the above point we come to know that only non-veg products are mostly sold so byintroducing new varieties in veg will attract the veg customer and it will increase the number of

customers

Though KFC is an international product, the price of their products were nominal to the peopleaccording to the region. But McDonalds have common for all region so if the price level is

modified McDonalds also can reach level of KFC

If the method of delivering products of McDonalds should be revised to increase the number of

customer.

The fast food giants may open exclusive vegetarian food restaurant to attract vegetariancustomers with more variety on vegetarian foods.

IX. CONCLUSION:In India fast food market is strongly dominated by these 2 brands. But when it comes to comparing

these two brands the following study brings us to a conclusion that as far as market presence and


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brand value is concerned McDonalds has definitely provide a point for themselves. But KFC who

re-entered in 2003 has shown a rapid progress and no wonder if in the coming year KFC overtakesMcDonalds in the Indian market share. Both the food giants have given each other immense

competition in terms of customer satisfaction, service quality and promotional strategies.

X. REFERENCES:

BOOKS:

1. Kenneth E Clow & Donald Back, Integrated Advertising, Promotion & Marketing

Communications, Pearson, 2012 Edition.

2. George Belch & Michael Belch, An Integrated Marketing Communications Perspective,

McGraw Hill Education, 2010 Edition.

3. Consumer Behaviour: Perspectives, Findings and Explanations (Paperback) by John

O'Shaughnessy Publisher: Palgrave MacMillan Released: 2013 MacMillan

4.

Consumer Behavior by Leon G Schiffman, Leslie Lazar Kanuk, ISBN 8131731567, 2013.5. Consumer Behaviour : Text and Cases 1st Edition (Paperback) by Ramneek Kapoor,

Nnamdi O. Madichie Publisher: Tata-Mcgraw Hill Publisher Edition: 2012

6. Consumer Behaviour Building Marketing Strategy with CD by Del l. Hawkins ISBN

0070682160 Publication, 2011 Eleventh Edition.

JOURNALS:

1. Sandeep Singh Chib, Relationship matrix between customer satisfaction and service

quality in fast food industry - A comparative study of KFC and McDonalds, International

Journal of Retailing & Rural Business Perspectives, Volume 1, Number 1, July -September

2012.2. Kinnarry Thakkar and Mrunmayee R.Thatte, Consumer Perceptions of Food Franchise: A

Study of McDonalds and KFC, International Journal of Scientific and Research

Publications, Volume 4, Issue 3, March 2014, Pp 15.

3. Vanishree, M and Shanthi, L, A Study on Customer Awareness and Satisfaction Towards

Kentucky Fried Chicken (KFC) in Coimbatore, Global Research analysis, Volume 2, issue

1, Jan 2013, Pp 141 -144.

WEB REFERENCES:

http://www.slideshare.net/shahkarizma/kfc-vs-macdonald-world

http://www.slideshare.net/chindatouy/mcdonald-vs-kfc http://publications.theseus.fi/bitstream/handle/10024/60257/Xie_Yuanyuan%20and%20

Hu%20_Wei.pdf

https://stacy2011.wordpress.com/2011/11/08/McDonalds-vs-kfc/
http://www.slideshare.net/shahkarizma/kfc-vs-macdonald-worldhttp://www.slideshare.net/chindatouy/mcdonald-vs-kfchttp://publications.theseus.fi/bitstream/handle/10024/60257/Xie_Yuanyuan%20and%20Hu%20_Wei.pdfhttp://publications.theseus.fi/bitstream/handle/10024/60257/Xie_Yuanyuan%20and%20Hu%20_Wei.pdfhttp://publications.theseus.fi/bitstream/handle/10024/60257/Xie_Yuanyuan%20and%20Hu%20_Wei.pdfhttp://publications.theseus.fi/bitstream/handle/10024/60257/Xie_Yuanyuan%20and%20Hu%20_Wei.pdfhttps://stacy2011.wordpress.com/2011/11/08/mcdonalds-vs-kfc/https://stacy2011.wordpress.com/2011/11/08/mcdonalds-vs-kfc/http://publications.theseus.fi/bitstream/handle/10024/60257/Xie_Yuanyuan%20and%20Hu%20_Wei.pdfhttp://publications.theseus.fi/bitstream/handle/10024/60257/Xie_Yuanyuan%20and%20Hu%20_Wei.pdfhttp://www.slideshare.net/chindatouy/mcdonald-vs-kfchttp://www.slideshare.net/shahkarizma/kfc-vs-macdonald-world


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http://www.ukessays.com/essays/marketing/customer-satisfaction-towards-the-services-

of-kfc-marketing-essay.php

https://www.franchisehelp.com/industry-reports/fast-food-industry-report/
http://www.ukessays.com/essays/marketing/customer-satisfaction-towards-the-services-of-kfc-marketing-essay.phphttp://www.ukessays.com/essays/marketing/customer-satisfaction-towards-the-services-of-kfc-marketing-essay.phphttp://www.ukessays.com/essays/marketing/customer-satisfaction-towards-the-services-of-kfc-marketing-essay.phphttp://www.ukessays.com/essays/marketing/customer-satisfaction-towards-the-services-of-kfc-marketing-essay.phphttps://www.franchisehelp.com/industry-reports/fast-food-industry-report/https://www.franchisehelp.com/industry-reports/fast-food-industry-report/http://www.ukessays.com/essays/marketing/customer-satisfaction-towards-the-services-of-kfc-marketing-essay.phphttp://www.ukessays.com/essays/marketing/customer-satisfaction-towards-the-services-of-kfc-marketing-essay.php

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