Chapter -1

INTRODUCTION

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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 McDonald’s Indore.

The study of customer satisfaction image reveals customer perception of Indore

McDonald's customer. Therefore, it is critical to study the customer satisfaction in order
to address the customer’s expectations and satisfaction to determine the strengths and
weaknesses of the MacDonald’s brand, which later will be used to improve the brand’s
attributes, and develop marketing strategies to compete with other businesses.

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 McDonald’s Indore.

The primary research findings shows that majority of the customers are satisfied and
highly satisfied with overall customer service at McDonald’s. However, some the
customers have mentioned that they are not satisfied with price of products at
McDonald’s. At the end, the researcher would like to opine that both McDonald’s 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.

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 Chapter -2

DETAILS OF COMPANY

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A)Background -

McDonald’s 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
McDonald’s 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).

McDonald’s is the world’s leading fast food business. Innovation and environmentally
sustainability approach of the business is one of the prime aspects at McDonald’s in
relation to provide foods and services to the customers throughout the world, including in
the UK (Love, 2008). McDonald’s is the world’s largest and biggest fast food chain.
McDonald’s was opened by two brothers named Richard and Maurice McDonald in 1937
in California, some scholars have mentioned that McDonald’s first opened in 1940 in
California (Gaspar, 2005). And so it was, on 12 December, 1948, that the new revamped
McDonald’s Restaurant opened, and Richard McDonald cooked the first McDonald’s
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 McDonald’s reflect the approach and practices of customer satisfaction.
For example, McDonald’s 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 McDonald’s believes what’s good for the business, is good for all of
us (McDonald’s, 2012). The author has revealed information from McDonald’s (2012)
that shows that customers are the first in the business of McDonald’s. The information
also shows that McDonald’s has been adopting most effective and appropriate strategies

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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.

Mckinney (2012) has noted that according to American Consumer Satisfaction Index,
McDonald’s has the worst level of customer satisfaction and also noted that all
McDonald’s customers are not agreed with the business vision, i.e. I’m lovin it’ of
McDonald’s. Mckinney (2012) has mentioned that it is worth noting that the company
has made significant improvements since 2004. On the other hand, McDonald’s issued a
statement in response: “At McDonald’s, customer satisfaction has, and continues to be, a
top priority. We take all customer feedback seriously. Through restaurant evaluations and
customer and employee feedback, we are continually evaluating our performance. Our
internal and third-party research shows that we continue to make progress in satisfying
our customers (McDonald’s, 2012). The company has been carrying out customer
satisfaction survey for the purpose of hearing from customer because customer
satisfaction is important to the business. The company has been carrying out customer
satisfaction survey and the feedback of the customer shared directly with all restaurants
to help to make next purchase an excellence experience (McDonald’s, 2012).

Thus, based on the customer satisfaction approach and practice at McDonald’s, it is clear
that McDonald’s is one of the most relevant organizations to carry out.

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B)History -

1948: Richard and Maurice McDonald open the first McDonald's restaurant in San
Bernardino, California.

1954: Ray Kroc gains the rights to set up McDonald's restaurants in most of the country.

1955: Kroc opens his first McDonald's restaurant in Des Plaines, Illinois; he incorporates
his company as McDonald's Corporation.

1960: The slogan, "Look for the Golden Arches," is used in an advertising campaign.

1961: Kroc buys out the McDonald brothers for $2.7 million.

1963: Ronald McDonald makes his debut.

1965: McDonald's goes public.

1967: The company opens its first foreign restaurant in British Columbia, Canada.

1968: The Big Mac is added to the menu.

1973: Breakfast items begin to appear on the menu, with the debut of the Egg Mc Muffin.

1974: The first Ronald McDonald House opens in Philadelphia.

1975: The first McDonald's drive-thru window appears.

1979: The children's Happy Meal makes its debut.

1983: Chicken Mc Nuggets are introduced.

1985: McDonald's becomes one of the 30 companies that make up the Dow Jones
Industrial Average.

1998: The company takes its first stake in another fast-food chain, buying a minority
interest in Colorado-based Chipotle Mexican Grill.

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1999: Donatos Pizza Inc. is acquired.

2000: McDonald's buys the bankrupt Boston Market chain.

2002: Restructuring charges of $853 million result in the firm's first quarterly loss since
going public.

2003: McDonald's sells Donatos in order to refocus on its core hamburger business.

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 Chapter -3

REVIEW OF LITERATURE

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The company has been following innovations and using different technologies for the
purpose providing quality products and services to the customers (Astute Solutions,
2012). McDonald’s 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 McDonald’s
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. The restaurant, which serves
tens of millions of customers a day, had a rating of only 59 back on 2000. Based on the
survey carried by ACSI (2012), it is clear that McDonald’s has the lowest score in
customer satisfaction compare to other fast-food industry around the USA and other
international countries.

Dhavale (2012) has stated that McDonald’s thinks according to the customers’ tastes,
value systems, lifestyles, language and perception that reflect the commitment of the
business to increase and improve customer satisfaction.

Fitzgerald and Moon (1996) have mentioned that the employees of the McDonald’s have
been focusing on the particular demands and expectations of the customers to increase
their level of satisfaction on the products and services at the business. They have also
mentioned that most of the employees at McDonald’s are talking constantly with the
customers to get their feedback and suggestions and thus develop business policy to
reduce customers’ complaints in relation to increase customer satisfaction at the business
compare to other competitors in the fast-food industry.

Based on the information obtained from City and Guilds (2012), McDonald’s has been
providing training to staff while seeing immediate improvements in customer
satisfaction. It is all about the effective day-to-day running of each restaurant and how
every apprentice can contribute to improve and increase customer satisfaction (City and
Guilds, 2012).

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 Chapter -4

RATIONALE OF STUDY

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The purposeofthis project to know service quality and customer satisfaction and how they
impact on organization. As we all know Mac Donald is the world’s best brand ever. In
this study we observe the way, how Mac Donald fulfill the needs of their customers and
also number of people who were unhappy with them.

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 Chapter -5

OBJECTIVES

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1. Identify Indian customer’s demographics and fast food stores patterns.
2. To study the satisfaction level of customer towards McDonalds.
3. To study the customers perception towards McDonalds.

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 Chapter -6

METHODOLOGY

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A) Research design –

“Methodology” refers to how a research should be undertaken (Creswell 2003 45). In

order to conduct a successful research, it is essential to collect relevant data from various
sources and analyse it.

The study sets out to expand upon previously completed work on the topic of“AStudy of
customer satisfaction with Special reference to McDonaldsIndore”. Considering the
nature of my research, I intend to use a questionnaire approach drawing on qualitative
and quantitative research methods. This study further defines and discusses the following:
the research design, the research approach, the research methods, the sample design and
data collection and analysis of the research. The aim of this research study is to
demonstrate the author's ability to conduct and utilise research methods to carry out his
proposed research in Consumer satisfaction.

There are a number of different types of method available for the collecting research data,
for example:

 Questionnaire
 Observations

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B) Variables to be used -

Variable to be used for the research project is usually either by using primary data,
secondary data or a combination of both.

1) Primary data -

Primary data can be defined as the new data collected for the specific purpose of the
research. This usually includes the use for various forms of interviews and questionnaire.
The main medium to obtain the primary data is through aquestionnaire. A questionnaire
is a written list of questions, the answer to which is recorded by respondents. The
questionnaire will consist of ten questions for which descriptive answer have to be
provided by the customers. Primary data will be collected to find out the most popular
customer of McDonald. To support my research, I will collect data from McDonald’s
customer.

2)Secondary data -

Secondary Research will be aimed at focusing on existing sources of information such as

an internal document, journal, magazines, internet etc.

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C) Sampling method–

Questioners will be used as collection methods. The time and budget will be
managed.Questionnaires will be distributed to the selected customers of Macdonald.

D) Tools for data collection -

 Questionnaire.

E) Tools for data analysis -

 Descriptive analysis was used to analyze the research questions.

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 Chapter -7

DATA ANALYSIS &

INTERPRETATION

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QuestionnaireSurvey -
Q1) Gender

RESPONSE NO. OF RESPONDENTS

Male 60
Female 40

GENDER

Male
40%

Female
60%

INTERPRETATIONS –

Out of 100 respondents 60% respondents are male while 20% respondents are female
when questionnaire survey on the basis on gender.

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Q2) Age

RESPONSE NO. OF RESPONDENTS

Below 18 20
18 to 22 36
23 to 27 34
28 and above 10

AGE

10%
20% Below 18

18 to 22

23 to 27
34%
28 and above
36%

INTERPRETATIONS -

Out of 100 respondents 20% respondents areBelow 18, 36% respondents are18 to 22,
34% respondents are23 to 27, while 10% respondents are28 and above when
questionnaire survey on the basis on age.

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Q3) Occupation

RESPONSE NO. OF RESPONDENTS

Student 40
Manager 25
Housewife 20
Others 15

OCCUPATION

15%

Student
40%
Manager
20%
Housewife
Others

25%

INTERPRETATIONS -

Out of 100respondents 40% respondents are Student,25% respondents are Manager, 20%
respondents are Housewife, while 15% respondents areOthers when questionnaire survey
on the basis on Occupation.

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Q4) Do you prefer to have meal from Fast Food restaurant?

RESPONSE NO. OF RESPONDENTS

Yes 68
No 32

Prefer to have meal from Fast Food

restaurant

32%
YES

NO
68%

INTERPRETATIONS -

Out of 100 respondents 68% respondentssaid YES, while 32%respondents said NOwhen
they asked Do you prefer to have meal form Fast Food restaurant.

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Q5) Which fast food restaurants do you visit most frequently ?

RESPONSE NO. OF RESPONDENTS

MCDONALD’S 36
PIZZA HUT 20
KFC 22
OTHERS 22

Prefered Fast Food Restaurant

22%
MCDONALD’S
36%
PIZZA HUT
KFC
22%
OTHERS

20%

INTERPRETATIONS –

Out of 100 respondents 36% respondents said MC DONALD’S, 20% respondentssaid

PIZZA HUT, 22% respondents said KFC, while 22%respondentssaid DOMINOSwhen
they askedWhich fast food restaurants do you visit most frequently.

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Q6) What is the first thing that strikes your mind about McDonald’s?

RESPONSE NO. OF RESPONDENTS

BURGER 26
ADVERTISING 16
SERVICES 22
VALUE for MONEY 18
FUN 18

First thing that strikes your mind about

McDonald’s
BURGER
18%
26% ADVERTISING

SERVICES

18%
VALUE OF
MONEY
16%
FUN

22%

INTERPRETATIONS -

Out of 100 respondents 26% respondents said BURGER, 16% respondentssaid

ADVERTISING,22% respondents said SERVICES, 18% respondents said VALUE OF
MONEY, while 18%respondents said FUN when they asked What is the first thing that
strikes your mind about McDonald’s.

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Q7) Is the product line in McDonald’s adequate?

RESPONSE NO. OF RESPONDENTS

YES 68
NO 32

Is the product line adequate

32%
YES
NO
68%

INTERPRETATIONS -

Out of 100 respondents 68% respondents said YES, while 32%respondentsaidNO when
they asked Is the product line in McDonald’s adequate.

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Q8) Which is your favorite product at McDonald’s?

RESPONSE NO. OF RESPONDENTS

MAHARAJ MAC 18
MC CHICKEN BURGER 16
MC VEGGIE BURGER 30
FRENCH FRIES 26
OTHERS 10

Favorite product at McDonald’s

10%
18% MAHARAJ MAC
MC CHICKEN BURGER
26% MC VEGGIE BURGER
16%
FRENCH FRIES
OTHERS
30%

INTERPRETATIONS -

Out of 100 respondents 18% respondents said MAHARAJ MAC, 16% respondents
saidMC CHICKEN BURGER, 30% respondents said MC VEGGIE BURGER, 26%
respondents said FRENCH FRIES, while 10%respondents said OTHERS when they
asked Which is your favorite product at McDonald’s.

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Q9) Which type of McDonald’s promotional advertising catch your eye?

RESPONSE NO. OF RESPONDENTS

INTRENET 14
NEWSPAPERS 21
POSTERS 14
MAGAZINES 17
TV 34

Promotional advertising catch

your eye

INTRENET
14%
NEWSPAPERS
34%
21% POSTERS
MAGAZINES
17% 14%
TV

INTERPRETATIONS -

Out of 100 respondents 14% respondents said INTRENET, 21% respondents said
NEWSPAPERS, 14% respondents said POSTERS, 17% respondents said MAGAZINES,
while 34%respondents said TV when they askedWhich type of McDonald’s promotional
advertising catch your eye.

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Q10) What is the main problem you faced at McDonald’s?

RESPONSE NO. OF RESPONDENTS

LONG QUEUES 20
RUDE BEHAVIOUR OF 16
EMPLOYEES
CONGESTION 18
OTHER 14
NO PROBLEM 32

Problem faced at McDonald’s

20% LONG QUEUES

32%
RUDE BEHAVIOUR
OF EMPLOYEES
CONGESTION
16%

OTHER
14%
18% NO PROBLEM

INTERPRETATIONS -

Out of 100 respondents 20% respondents said LONG QUEUES, 16% respondents said
RUDE BEHAVIOUR OF EMPLOYEES, 18% respondents said CONGESTION, 14%
respondentssaid OTHER, while 32%respondents said NO PROBLEM when they asked
What is the main problem you faced at McDonald’s.

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Q11 )McDonald’s product’s price, is it reasonable? If 5is perfect, your score is

RESPONSE NO. OF RESPONDENTS

1 7
2 13
3 20
4 27
5 33

RESPONSE

7%
1
13%
33% 2
3
20% 4
5
27%

INTERPRETATIONS -

Out of 100 respondents 7% respondentssaid 1, 13% respondentssaid 2, 20%

respondentssaid 3, 27% respondentssaid 4, while 33%respondentssaid 5as they are
satisfied with the price of Mcdonald’s menu.

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Q12) How often do you visit McDonald’s outlet?

RESPONSE NO. OF RESPONDENTS

WEEKLY 52
MONTHLY 24
OCCASIONALLY 24

Visit to McDonald’s outlet

24% WEEKLY
MONTHLY
52%
24% OCCASIONALLY

INTERPRETATIONS -

Out of 100 respondents 52% respondentssaid weekly, 24% respondentssaid monthly,

while 24%respondentssaid occasionallywhen they are asked about their visit to
McDonald’s outlet.

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Q13) Which area do you think needs the most improvement?

RESPONSE NO. OF RESPONDENTS

DELIVERY TIME 10
ENVIRONMENT 8
PRODUCT VARIETY 30
PRICE 22
OFFERS AND DISCOUNTS 20
OTHERS 10

Area needs most improvement

10% 10% DELIVERY TIME

8% ENVIRONMENT

20% PRODUCT
VARIETY
PRICES

OFFERS AND
30%
DISCOUNTS
OTHERS
22%

INTERPRETATIONS -

Out of 100 respondents 10% respondentssaid DELIVERY TIME, 8% respondents are

said ENVIRONMENT, 30% respondents are said PRODUCT VARIETY, 22%
respondents are said PRICE, 20% respondents are said OFFERS AND DISCOUNTS,
while 10%respondents are said OTHERS when they are asked about the things which
needs the most improvement.

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Q14) What factors do you consider important when visiting McDonald's?

RESPONSE NO. OF RESPONDENTS

Price 19
Food quality 28
Nutrition 21
Waiting time 14
Distance to McDonald’s 18

Factors important when visiting

McDonald's

Price
18% 19%
Food quality
14%
28%
21% Nutrition

INTERPRETATIONS -

Out of 100 respondents 19% respondents said Price, 28% respondentssaid Food quality,
21% respondentssaid Nutrition, 14% respondentssaid Waiting time, while
18%respondentssaid Distance to McDonald’s when they asked What factors do you
consider important when visiting McDonald's.

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Q15) Thinking about your most recent visit to McDonald's, to what level of
satisfaction do you rank that visit?

RESPONSE NO. OF RESPONDENTS

Very poor 4
Poor 6
Good 22
Very good 28
Excellent 40

Level of satisfaction on recent visit to

McDonald's
4%
6% Very poor
Poor
40% Good
22%
Very good
Excellent

28%

INTERPRETATIONS -

Out of 100 respondents 4% respondentssaid Very poor, 6% respondentssaid Poor, 22%

respondents said Good, 28% respondentssaid Very good, while 40% respondentssaid
Excellentwhen they askedThinking about your most recent visit to McDonald's, to what
level of satisfaction do you rank that visit.

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Chapter -8

FINDING

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 On the basis of gender male (60%) prefer fast food than female (40%).
 On basis of age majority is at the age of 18-22 (36%) while others are as Below 18
(20%), 23-27 (34%), 28 and above (10%).
 Based on occupation here the majority is students (40%) then Manages (25%), others
(15%) rest Housewife (20%).
 Almost 68% of people prefer to have food form fast food restaurants.
 MC Donald’s is preferred by (36%) of people while pizza hut (20%), kfc (22%) and
Others (22%).
 First thing that strikes mind about MC Donald’s is burger (26%) advertising (16%)
services (22%) value of money (18%) and fun (18%).
 The product line of MC Donald’s should be improved since most of them commented
as Yes (68%) and No (32%).
 Majority of people's favourite product is Maharaj Mac (18%), mc chicken
Burger(16%), Mc Veggie Burger (30%), French Fries (26%) and others (10%).
 Posters (14%), TV (34%), internet (14%), news papers (21%) and magazines (17%).
 There is no major problem faced by customersupto (32%) some of the problems are
long queues (20%) rude behaviour of employees (16%) congestion (18%) and other
(14%).
 Based on pricing strategy of MC Donald’s upto (33%) customer gave a score of 5,
(27%) for 4, (20%) for 3, (13%) for 2, (7%) for 1.
 Customer visit occasionally upto (24%), weekly (52%) and monthly (24%).
 MC Donald’s needs to improve the product variety then prices, offers and disc outs,
delivery time and environment.
 While visiting MC Donald’s (28%) people consider for food quality, for price (19%),
(21%) for nutrition, (18%) for distance and (14%) for waiting time.
 Ranking as per the last visit to MC Donald's (40%) customer voted for excellent,
(28%) for very good, (22%) for good, (6%) for poor and (4%) for very poor.

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 Chapter -9

SUGGESTIONS

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 Maintain consistency in the taste and quality of products.
 Include more items in its product line. (Variety).
 Include more veg. options.
 More promotional and advertising measures to increase its sales or to increase its
market share.
 Recognize the small outlets and give more discounts.
 Growing health trends among consumers.
 They should focus more on their promotional strategies like advertising etc.

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 Chapter -10

CONCLUSION

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The study of Customer Satisfaction with McDonald's Indorein theIndore Metropolitan
Area shows that the majority of the customers are satisfied by the services McDonald's
offers. Most of the participants taken in this study responded the satisfaction and there are
few responses from the dissatisfied customers.

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 Chapter -11

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