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1.

1 overview of the study


Customer satisfaction is one the most common and important aspects in any
organization, particularly in fast-food industry. Due to market competition and availability
of businesses, an organization needs to focus on the degree to which a customer is
satisfied with its products and/or services of the organization. This research project is
based on the comparative study on customer satisfaction at McDonalds and Burger
King, UK. Both the case studied organizations are leading fast-food businesses in the
UK and other international countries. From several sources of information depicts that
both business has been providing quality products and services to satisfy their
customers. So, it can be noted that the selection of the case studied organizations are
most relevant and appropriate to explore and analyze customer satisfaction in fast-food
industry.
Based on the review of literature, the researcher would like to opine that customer
satisfaction is an important factor in fast-food industry and there are several common
things including quality of products, price of products, service quality, settings of the
restaurant, promotion, brand name etc. have significant influence to satisfy customers.
The review of literature also shows that there are some common models, such as
SERVQUAL Model, Expectancy-disconfirmation Model, etc. can be used to measure
degree to which a customer is satisfied or dissatisfied with products and/or services of
an organization, like McDonalds and Burger King.
The primary research findings shows that majority of the customers are satisfied and
highly satisfied with overall customer service at McDonalds and Burger King. However,
some the customers have mentioned that they are not satisfied with price of products at
McDonalds and Burger King. At the end, the researcher would like to opine that both
McDonalds and Burger King have been developing and implementing policies and
practices to satisfy their customers and however, both business have to focus on the
current market trends in fast-food as well as demands and expectations of the
customers to increase customer satisfaction.

1.2 Background of The Study


Fast-food business is one the most common business mostly in developed countries
that depicts a process of delivering foods more quickly than other any other restaurant
system and it takes less time to prepare the foods as well as ready for eating and/or
delivering to the customers . they mentioned that customers are the most important part
of any business and they are the people who have significant influence and impact on
the business, including fast-food business. Customer satisfaction is the personal
feelings about foods and services in the fast-food business that has been considering
as one the most important aspects within the business.
Customer satisfaction is one of the most common and important aspect in recent
globalized and competitive business environment throughout the international markets.
Customer satisfaction is a behavioral approach of the customers that can be defined as
the level of satisfaction by the customers after buying and/or consuming a particular
product/service from a business. The level of customer satisfaction has been playing
significant roles to develop organizational policies and objectives as well as business
strategies to increase customer satisfaction through providing quality products and/or
services to the customer. For example, Hill et al. (2007) have mentioned that customer
satisfaction is regarding one of the most important aspects within a business to focus
profits of the business through customer satisfaction, employee satisfaction by virtue of
customer satisfaction, returns to shareholder by customer satisfaction, impacts of
customer satisfaction on macro-environment and so on.
The researcher is self-motivated to carry out such type of research project. The
selection of research topic is based on the importance of academic, organizational and
personal point of views. Customer satisfaction within fast food industry is becoming key
issue for the success of the business through creating brand loyalty and customer
loyalty. The researcher will explore and analyze existing theories and practices on
customer satisfaction through review of literatures and primary research findings.

1.3 Problem Statement


McDonalds: McDonalds is a famous fast food restaurant known in 119 nations around
the world because of products and services. The most recognizable brand is the Golden
Arches closely followed by the clown character called Ronald McDonald. The company
is well known throughout the world because of its products, such as hamburgers and
strong branding (Hassan, 2010). The entry of Ray Kroc was one of the historical events
for McDonalds success because of his significant changes and development within the
business. For example, Ray Kroc had brought the business outside of California and
Arizona and more than 100 restaurants were in operation by 1959 (Hassan, 2010).
McDonalds is the worlds leading fast food business. Innovation and environmentally
sustainability approach of the business is one of the prime aspects at McDonalds in
relation to provide foods and services to the customers throughout the world, including
in the UK (Love, 2008). McDonalds is the worlds largest and biggest fast food chain.
McDonalds was opened by two brothers named Richard and Maurice McDonald in
1937 in California, some scholars have mentioned that McDonalds first opened in 1940
in California (Gaspar, 2005). And so it was, on 12 December, 1948, that the new
revamped McDonalds Restaurant opened, and Richard McDonald cooked the first
McDonalds hamburger (Gaspar, 2005). Since then the company has been providing
fast food items in United States (U.S.) and other international markets.
The values of McDonalds reflect the approach and practices of customer satisfaction.
For example, McDonalds is committed to doing the right thing from the beginning of the
business. The company has been developing and implementing several policies,
programs and practices in place that allow the business to use its size and scope to
help make a difference because McDonalds believes whats good for the business, is
good for all of us (McDonalds, 2012). The author has revealed information from
McDonalds (2012) that shows that customers are the first in the business of
McDonalds. The information also shows that McDonalds has been adopting most
effective and appropriate strategies to offer high-quality products, quicker services in a
clean and friendly environment as well as commitment towards the value for money for
the customers.
Thus, based on the customer satisfaction approach and practice at McDonalds, it is
clear that McDonalds is one of the most relevant organizations to carry out customer
satisfaction in fast food business.

1.4 Research Question

1. The primary research question is what are the common factors that affect
customer satisfaction at McDonalds? The other research questions include2. What are the current business practices to satisfy customers at?
3. How the case studied organizations, such as McDonalds have been satisfying
their customers?
4. What are the common features within case studied organizations, such as
McDonalds leading customer satisfaction?
5. What are the levels of customer satisfaction towards McDonalds?
6. What are the future plans and policies to improve current customer satisfaction at
McDonalds?

1.5 Research Objectives

The primary research aim is to analyze customer satisfaction at fast food industry
through comparative study of McDonalds and Burger King. The objectives of this
research project as follows

To explore and analyze existing theories and practices on customer satisfaction


within fast food industry, case of McDonalds and Burger King through review of
literatures;

To identify and evaluate key factors influencing customer satisfaction at


McDonalds and Burger King through primary and secondary research findings;

To collect primary and secondary data and information in relation to current


approaches and practices on customer satisfaction at McDonalds and Burger
King;

To represent data and information in such a way that will reflect overall
description and explanation on customer satisfaction at McDonalds and Burger
King; and

To develop valid conclusions and recommendations in accordance with key


themes obtained from the primary and secondary data and information both in
terms of academic and organizational perspective.

1.6 Significance of The Study

1.7 scope of the study

1.8 Limitation of the study

There were limitations involved in this research project-

1. Shortage of time and financial resources were the most common limitations. Due
to limited time to there was limited review of literature. And this research project
was based on self-financed, so due to lack money the researcher has conducted
limited interviews and surveys to collect primary data from the case studied
organizations, such as McDonalds. So, the limited time and lack of available
financial resources was one the most vital limitations for this research project.
2. The concern for ethical issues and access to the case studied organizations,
such as McDonalds were another limitation of this research project. The
researcher has limited access to the data and information on current practices
and policies of customer services and approach of customer satisfaction because
of confidentiality of the case studied organizations.
3. The limited number of samples during the interview and survey may have
negative impact on the primary research findings and thus the preparation of final
research report. There was limited number of interviews and surveys because of
shortage of time and money of the researcher. There were few samples both in
interview and survey to collect primary data from the case studied organizations,
such as McDonalds.
4. The lack of interview and survey skills of the researcher may affect the collection
of primary data from the case studied organizations, such as McDonalds.

1.9 SCHEDULE

1.10 CONCLUSION

Under this chapter, the researcher has to discuss and explain some of the most
common and major issues of a research project. In this chapter, several issues and
concerns, such as background of the study, background of the case studied
organizations, research aim and objectives, research questions and overall limitations of
the research study etc. have discussed and explained by the researcher.

2.1 Customer Loyalty

2.2 CORPORATE IMAGE


McDonalds Corporation is the worlds largest chain of FAST FOOD RESTAURANTS,
Serving nearly 58 million customers daily. It was started by two brother Dick and Mac
Donald in San Bernardino, California in 1940. McDonalds Restaurants are found in
more than 119 countries and territories around the world and serve nearly 47Million
customers each day. McDonalds operates over 31,000 restaurants worldwide,
employing more than 1.5 million people. The company also operates other
restaurant brands, such as Piles Caf and has a minority stake in prt a Manger.
McDonald is one of the worlds chains of hamburger fast food restaurants, serving
nearly 47million customers daily. A McDonalds restaurant is operated by a franchisee,
an affiliate, or the corporation itself. The corporations revenue comes from the rent,
royalties and fees paid by the franchisees as well as sales in company-operated
restaurants.

2.3 CUSTOMER SATISFACTION


B. Customer satisfaction at McDonalds

McDonalds is the worlds largest food service retailer with more than 30,000 restaurants
in over 119 countries. The company is recognized a growing trend in the quick service
restaurant industry toward timely and accurate customer service. The company has
been following innovations and using different technologies for the purpose providing
quality products and services to the customers (Astute Solutions, 2012). McDonalds is
the largest fast food chains in the world. The company has been performing different
activities to satisfy its customers. However, in accordance with data collected by the
American Consumer Satisfaction Index (ACSI) reveals that McDonalds ranks in last
place in customer satisfaction, despite being the top fast food company in terms of
revenue (The HuffingtonPost.Com, Inc., 2012). The data from ACSI shows that the
company was highest in customer satisfaction in 1995.
ACSI is a national economic indicator of customer evaluations of the quality of products
and services. The ACSI uses data from interviews with roughly 70,000 customers
annually for measuring customer satisfaction. Since 1995, McDonalds has consistently
ranked last, according to the ACSI. However, there is good news: The restaurant, which
serves tens of millions of customers a day, had a rating of only 59 back on 2000. This
years ranking is the best ever for McDonalds (CBS Local Media, 2012). Based on the

survey carried by ACSI (2012), it is clear that McDonalds has the lowest score in
customer satisfaction compare to other fast-food industry around the USA and other
international countries.
In all fairness to the food and service at McDonalds, even though they rank last, they
have been showing some improvements, such as reducing price, introducing new
menu, facilities to customers at stores, ensuring cleanliness and tidiness within stores
etc. They have ranked dismally last since 1995 and at one point in 2000 their level of
satisfaction was only 59%, in 2012 it is 73% which is an increase from 2012.
McDonalds executives take these findings seriously and have been trying to give the
customers what they want (Esteves, 2012). On the other hand, McDonalds vice
president of operations, Jim McCabe has said that the company has been performing
better and continuously making progress in satisfying customers. He also noted that in
fact, the producers of the ACSI said that McDonalds customer satisfaction is at an alltime high (Farberov, 2012). Farberov (2012) has represent following figure to shows that
how McDonalds has been ranking below average on customer satisfaction-

2.4 SERVICE QUALITY


Service quality model, known as SERVQUAL model is widely used tool to measure
customer satisfaction. This model has been developed by Zeithaml in 1985. The model
is based on some specific items, such as tangibles, reliability, responsiveness,
assurance and empathy etc. against which the level of satisfaction of a customer is
measured and assesses for a particular business. SERVQUAL model is defined as the
difference between the customers expectations for the service being offered and his
perceptions of the service actually received (Zeithaml, 1985).

2.5 RESEARCH FRAMEWORK OF THE STUDY


The researcher would like to provide brief description of each issue that lead to
customer satisfaction as followsi. Product/service feature: customer satisfaction as the process of judgment that a
product or service feature, or the product/service itself. So, the overall features of the
product or service is prime concern in customer satisfaction. For example, West (2012)
has mentioned that the quality of a product and/or service builds positive image among
the customers and thus they make purchase decisions as they become satisfied with
that quality in product and/or service. Thus, it can be predict that the overall features
and description has vital influence on customer satisfaction (Hypothesis-1).
ii. Customers expectation: Customers expectations are key determinants of their
consumption experiences, satisfaction, and loyalty . It is now widely accepted that
exceeding customer expectations is key to customer satisfaction, delight, and loyalty.
So, it can be assume that customers expectation positively affecting customer
satisfaction (Hypothesis-2).
iii. Customers perception: Customers perception is defined as the perceived value
against expected value of a particular product/service of a business. As an example, Ho
and Zhen have mentioned that customers will be satisfied if their perceived delivery
times are shorter than their expectations in service delivery business. Thus, it can be
said that customers perception is interrelated and interconnected with customer
satisfaction (Hypothesis-3).
iv. Customers decision making process: A series of activities involved in customers
decision making process for purchase a product and/or service from a business. The
steps of customers decision making process include information search, finding and
evaluating alternatives, best value of product/service and simplest means to get the
product/service and finally post-purchase behavior of the customers etc. It can be

assume customers purchase decision making process is positively related with


customer satisfaction (Hypothesis-4).
v. Customers post-purchase behavior: The positive or negative feedback on a particular
product and/or service of a business after buying or consuming of that product and/or
service can be considered as customers post-purchase behavior (Ferrell and Hartline,
2010). So, it can be noted that customers post-purchase behavior has significant
influence on customer satisfaction (Hypothesis-5).

2.6 CONCLUSION
The review of literature shows that customer satisfaction is becoming key concern for a
business, particularly for fast-food business. Due to recent market competition and
increased demands and expectations of customer, a business has to develop and
implement several policies and practices to satisfy its customers. The researcher has
identified some of the great contributions from several authors and scholars on
customer satisfaction at McDonalds and Burger King. The researcher has also
identified some gaps in knowledge and understanding of customer satisfaction. At the
end, the researcher would like to opine that this chapter was most important and vital to
make standard research report with valid conclusions and recommendations in
accordance with issues and concerns in the field of customer satisfaction at McDonalds
and Burger King that identified from the review of literature.

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