NATIONAL COLLEGE OF BUSINESS

ADMINSTRATION
& ECONOMICS, MULTAN SUB CAMPUS

“Factors Influencing on Customer Satisfaction in

Restaurant Industry: A Case Study of Kentucky Fried
Chicken (KFC) Multan”

By

Shehroze Aamir

Master

in

Business Administration

October2018

i
 NATIONAL COLLEGE OF BUSINESS
ADMINISTRATION & ECONOMICSMULTAN SUB
CAMPUS
11/B, Gulgasht Colony, Bosan Road Multan

“Factors Influencing on Customer Satisfaction in

Restaurant Industry: A Case Study of Kentucky Fried
Chicken (KFC) Multan”

BY

SHEHROZE AAMIR
__________________________________________________________________________________
A dissertation submitted to School of Business Administration, in partial fulfillment
of the requirements for the degree of
MASTER
IN
BUSINESS ADMINISTRATION
Dissertation Committee:

____________________________
Chairman

____________________________
Member

____________________________
Member

__________________
Pro-Rector
National College of Business
Administration & Economics Multan

ii
 DECLARATION

This is to certify that this research work has not been submitted for obtaining similar
degree from any other university/college.

SHEHROZE AAMIR
November, 2018

iii
 NATIONAL COLLEGE OF BUSINESS
ADMINISTRATION & ECONOMICSMULTAN SUB
CAMPUS
11/B, Gulgasht Colony, Bosan Road Multan

COURSE COMPLETION CERTIFICATE

Ref. Dated: 28-09-2018

It is certified that course requirements of Mr. SHEHROZE AAMIR Registration

No.121630654 for the program MASTER IN BUSINESS ADMINISTRATION
MBA (EXE)has been completed and his current CGPA is3.0.

Mr. Nabeel Hameed Prof. Dr. G. R. Pasha

Deputy Controller Examination Cell Pro-Rector

Copy to
1. The Director NCBA&E Lahore
2. The Director NCBA&E Multan Campus.
3. Notification file.

iv
 RESEARCH COMPLETION CERTIFICATE

It is to certify that the research work contained in this report entitled “” has been
carried out and completed by SHEHROZE AAMIR under my supervision“Factors
Influencing on Customer Satisfaction in Restaurant Industry: A Case Study of
Kentucky Fried Chicken (KFC) Multan”on during his MBA (EXE) program.

(IFTIKHAR AHMED)
Supervisor

v
 ACKNOWLEDGMENT

I would like to thank Great ALLAH ALMIGHTY for His gracious blessing without
whom I would not be able to complete my project work. I express my gratitude and
obligations to Prof. Dr. G.R. Pasha & Dr. Farkhand Shakeel who did their selfless
and tireless efforts for providing us all facilities throughout the academic session and
their kind and loving attitude always encouraged us to work hard.
I am so grateful to the National College of Business Administration & Economics
Multan and the faculty for making it possible for me to study here. I give deep thanks
to the NCBA&E for having this project as a part of the degree requirement.
I gratefully acknowledge my respected supervisor, Mr. Iftikhar Ahmad who has
given me the opportunity to learn at a deep level to prepare this report and has
supported me throughout this project with utmost cooperation and patience. His
guidance helped me complete my project.

I would like to express my gratitude towards all my Family & Friends for their kind
co-operation and encouragement which helped me in completion of this project.

SHEHROZE AAMIR
October2018

vi
 DEDICATED
TO

“My beloved Parents and Teachers who have always been a source of inspiration for
me”

vii
 ABSTRACT

The primary purpose of this study is to explore the factors that investigate the
customers' evaluation and perception about determinants influencing on customer
satisfaction at fast-food restaurants. It is very essential for every business not only to
retain their existing customers but also to extend and appeal more new customers
significantly. In this study, the scale is measured on four main factors as Service
quality, Product quality, Price, and Environment affecting to all common fast-
food restaurants in Pakistan market. To appraise and evaluate the influence of each
factor, the study uses the mixed method of quantitative and qualitative researches. The
findings from the study revealed that the current situation of each factor in Pakistan
fast-food industry and how extremely influencing each factor is Furthermore, these
findings also provide useful strategies and understandable knowledge to improve and
develop fast-food restaurants as well as the satisfaction level from customers.

Keywords: Customer Satisfaction, Service Quality, Product Quality, Price and

Environment.

viii
 SUMMARY

The first chapter provides an introduction of the study as well as background, research
significance, research objectives and questions of the study. The next chapter provides
a critical analysis of the literature review. After the literature review, the company
profile are presented in the third chapter. The fourth chapter presents the data analysis
results and the sixth chapter is based on the interpretations and discussion of the
empirical findings. The final chapter presents the conclusion based on the research
outcomes, limitations of the study, and recommendations for future research.

ix
 Table of Contents
DECLARATION iv.

COURSE COMPLETION CERTIFICATE v.

RESEARCH COMPLETION CERTIFICATE vi.

ACKNOWLEDGEMENTS vii.

DEDICATION viii.

ABSTRACT ix.

SUMMARY x.

CHAPTER 1: Introduction 1

1.1 Background of the study 1

1.2 Research Objective 3

1.3 Research Question 4

1.4 Research Methodology 4

1.5 Theoretical Significance 4

1.6 Managerial Significance 5

CHAPTER 2: Literature Review 6

2.1 General Overview 6

2.2 Customer satisfaction 6

2.2.1 Outcomes of customer satisfaction 6

2.2.2 Customer loyalty 7

2.2.3 Word of mouth 7

2.3 Determinants of customer satisfaction 8

2.3.1 Price 8

2.3.2 Service quality 8

2.3.3 Environment 9

x
 2.3.4 Product quality 10

2.4 Research Gap 11

CHAPTER 3: Company Profile 12

3.1Introduction of KFC 12

3.2 Mission statement 13

3.3 Vision statement 13

3.4 Slogans 14

3.5 Goals 14

3.6 History 14

3.7 Products 17

3.8 Eleven herbs and spices 18

3.9 Competitors 18

3.10 KFC Pakistan 19

CHAPTER 4: Analysis and Discussion 20

4.1 SWOT Analysis 20

4.1.1 Strength 20

4.1.2 Weakness 20

4.1.3 Opportunities 21

4.1.4 Threat 21

4.2 Introduction to IFE and EFE Matrix 21

4.3 The Internal Factor Evaluation (IFE) Matrix 21

4.3.1 Results for IFE Analysis 24

4.4 The External Factor Evaluation (EFE) Matrix 25

4.4.1Results for EFE Analysis 25

4.5 Competitive Profile Matrix (CPM) 26

4.5.1. Results for CPM Analysis 27

4.6 BCG Matrix 28

xi
 4.6.1 Stars 28

4.6.2 Cash cows 28

4.6.3 Dogs 28

4.6.4 Question marks 28

4.7 PESTEL Analysis 29

4.7.1 Political Factor 30

4.7.2 Economical Factor 30

4.7.3 Social Factors 30

4.7.4 Technological Factors 31

4.7.5Environmental &Legal Factors 31

CHAPTER 5: Conclusion & Recommendations 32

5.1 Service Quality 32

5.2 Price 32

5.3 Environment 32

5.4 Product Quality 32

References 34

Appendix 37

xii
 Chapter: 1
Introduction
1.1. Background of the Study:

Customer satisfaction is “an outcome of purchase and use resulting from buyers’
comparison of the rewards and costs of purchase about anticipated consequences”
(Churchill &Surprenant, 1982). Oliver (2015) has defined customer satisfaction as “the
consumer’s fulfillment response. It is a judgment that a product or service feature, or the
product or service itself, provide a pleasurable level of consumption-related fulfillment.”
Zeithaml et al. (2009) posited that customer satisfaction concerns the evaluation of
products or services in meeting consumer expectations or needs.
The basis of customer satisfaction lies in the disconfirmation theory regarded as the
difference between customer expectation and perceptions. Consequently, when customer
perceptions exceed expectations (i.e. Positive disconfirmation), results in customer
satisfaction, positive word-of-mouth, and customer retention. Conversely, when actual
customer perceptions do not meet expectations (i.e. negative disconfirmation) leads to
customer dissatisfaction, negative word-of-mouth or customer defection (Bateson &
Hoffman, 2011).
Satisfaction is as a judgment following a consumption experience - it is the consumer’s
judgment that a product provided (or is providing) a pleasurable level of consumption-
related fulfillment (adapted from Oliver 1997).

According to Chew Gin Lee & Shi-Min How there is a positive long-run causality from
FP to customer satisfaction, and customer satisfaction has no effect on FP in the long-run.
This study also finds that firm size has no impact on customer satisfaction. (Chew Gin
Lee & Shi-Min How 2018).

Most research confirms that the confirmation or disconfirmation of pre-consumption

expectations is the essential determinant of satisfaction. This means that customers have a
certain predicted product performance in mind prior to consumption.

During consumption, customers experience the product performance and compare it to

their expected product performance level. Satisfaction judgments are then formed based

1
on this comparison. The resulting judgment is labeled positive disconfirmation if the
performance is better than expected, negative disconfirmation if it is worse than expected,
and simple confirmation if it is as expected. In short, customers evaluate product
performance by comparing what they expected with what they believe they received.

It is a common phenomenon that the services a brand offers and the price it charges
actually determine the level of satisfaction among its customers, than any other measure
(Turel et al. 2006).
Service quality is a very important aspect to be considered to retain consumers. PT.
ASDP INDONESIA FERRY (PERSERO) Merak Banten its duties as providers and
services in the field of crossings. Measurement of customer satisfaction by using the
method of the Customer Satisfaction Index (CSI) and Importance-Performance Analysis
(IPA) diagram, Customer Satisfaction Index (CSI) value is 80,68%. which is the priority
of improvement to improve customer satisfaction of PT ASDP INDONESIA that is in
dimension of attributes intangible dimension is about toilet facility, this attribute need to
be repaired because in its implementation there are still complaints from passengers and
attributes that are contained in the dimensions responsiveness is regarding the speed and
responsiveness in serving the passengers, responsiveness of the officer in providing
information in providing the arrival and departure time , and the attributes contained in
the assurance dimension is about the security level of the port area (Akbar Gunawan &
Iqbal 2018).
Customer’s involvement is also important as when buyer consider the product important
and invests time to seek information then it ultimately enhances the satisfaction level
(Russell-Bennett, McColl-Kennedy and Coote, 2007). This satisfaction may influence the
concerned company by repurchase, purchase of more products, positive word of mouth
and willingness of customer to pay more for the particular brand. Any business is likely
to lose market share, customers and investors if it fails to satisfy customers as effectively
and efficiently as its competitors is doing (Anderson, Fornell, and Mazvancheryl, 2004).
Customer satisfaction is defined as an "evaluation of the perceived discrepancy between
prior expectations and the actual performance of the product" (Tse and Wilton, 1988,
Oliver 1999). Satisfaction of customers with products and services of a company is
considered as most important factor leading toward competitiveness and success

2
(Hennig-Thurau and Klee, 1997). Customer satisfaction is actually how customer
evaluates the ongoing performance (Gustafsson, Johnson and Roos, 2005). According to
Kim, Park and Jeong (2004) customer satisfaction is customer’s reaction to the state of
satisfaction, and customer’s judgment of satisfaction level. Customer satisfaction is very
important in today’s business world as according to Deng et al., (2009) the ability of a
service provider to create high degree of satisfaction is crucial for product differentiation
and developing strong relationship with customers.
Previous researchers have found that satisfaction of the customers can help the brands to
build long and profitable relationships with their customers (Eshghi, Haughton and Topi,
2007). Though it is costly to generate satisfied and loyal customers but that would prove
profitable in a long run for a firm
(Anderson, Fornell and Mazvancheryl, 2004). Therefore a firm should concentrate on the
improvement of service quality and charge appropriate fair price in order to satisfy their
customers which would ultimately help the firm to retain its customers (Gustafsson,
Johnson and Roos, 2005).

1.2. Research objectives:

The aim of the study is to find

1. The influence of price on customer’s satisfaction level for KFC Multan.

2. The influence of service quality on customer satisfaction level for KFC Multan.
3. The influence of service environment on customer satisfaction level for KFC
Multan.
4. The influence of product quality on customer satisfaction level for KFC Multan.

1.3. Research Questions:

1. Does price influences customer satisfaction level for KFC Multan?

2. Does service quality influences customer satisfaction level for KFC Multan?
3. Does environment influences customer satisfaction level for KFC Multan?
4. Does product quality influences customer satisfaction level for KFC Multan?

3
1.4 Research Methodology:

The report is based on my internship program in KFC Multan. The methodology reported
for collection of data is primary as well as secondary data. The primary source of
information is my personal observation while working with staff and having discussion
with them. Formally arranged interviews and discussions also helped me in this regards.

1.5. Theoretical significance:

The article describe how price, service quality, environment and product quality help the
restaurant industry in improving customer satisfaction level. A great amount of work has
been done in various parts of the world to determine the impact of above mention four
factors on level of customer satisfaction in restaurant industry. My contribution in this
article is I am doing some analysis regarding the impact of these four factors on KFC
Multan. I am also doing SWOT, PESTEL, IFE, EFE, CPM and BCG Matrix analysis.

1.6. Managerial Significance:

The four factors price, service quality, environment and product quality have a major
influence over customer satisfaction level. If the management wants to maintain a certain
level of customer satisfaction, it needs to closely monitor the dynamics of all these four
factors. The management not only wants to satisfy and retain the existing customers but it
also wants to attract and add new customers, for which they must be aware of the impact
of the four factors that influence customer satisfaction level. The management can device
useful strategies to take advantage of the four factors of interest also it can be helpful to
determine either which of the four factors needs more attention by the management.

4
 Chapter: 2
Literature review

2.1. General Overview:

Research related to the consumer satisfaction and behavior in the field of food industry
has progress in upcoming years and also measured the dimensions of customer’s
satisfaction. Customer satisfaction is increase with the experience of that service in which
they involved. In restaurants industry the delivery of product is become more imperative
because customers are more careful about the health and restaurants environments.

2.2. Customer Satisfaction:

According to Deng et al., (2009) Customer satisfaction becomes the most important part
in the business field because when your customer is satisfied then it will provide the
profitable business to the industry. Basically customer’s satisfaction is term which means
that how customers predict about your product after the use of a specific product and how
they evaluate your product in single manner and compare with the competitors’ products.
The customer satisfaction is customer’s evaluation of goods and services in term of
whether it is according to the customer’s requirements or it has dissatisfied the
customer’s needs and wants. Actually customer’s satisfaction is the customer’s
evaluation of goods and services in term of whether it is according to the customer’s
needs and wants or customers dissatisfied with the product services or the dissatisfied
with the performance of the products and not according to expectation of customers and
sometime customers more satisfied if products performance is beyond with their
expectations.(Kotler 2012).and if one aspect of product and services is not meets the
customer’s satisfaction then they can be dissatisfied with the overall performance. So for
the food variable, it involves the price, quality, and value of money. For the service
variable, it includes the staff quality, behavior, and attitude and for the restaurants it also
involves the decoration and atmosphere. Customer satisfaction is the present performance
of the product or services which are providing to it on a specific time or on that time

5
when customers are using to it. (Gustafson et al. 2005). Some of the research said that
customer satisfaction is key element to build the brand for the long time as well as
develop the brand image of the company with in short time. It can be long term and
costly process to satisfy the customer but if companies gain it then it will provide the long
term relationship between customers and company brand as well as provide the more
profitability. (Eshghi et al, 2007). The relationship between customer satisfaction and
loyalty is strongly influenced by characteristics of the customer specially variety seeking,
age and income are found to be more important moderators of the satisfaction loyalty
relationship. Christian Homburg & Annette Giering (2016)

2.2.1. Outcomes of the customer satisfaction:

There are different results which are occurs due to customers satisfaction such like
loyalty and word of mouth.

2.2.2. Customer loyalty:

Loyalty is the behavior of the customer towards purchase the same product or services
from the same supplier or same service provider which lead to the customers towards
satisfaction. And the offering different packages to the customers lead the customer
satisfaction and build loyalty.

2.2.3. Word of Mouth:

Word of mouth is the term defined as the informal way to communication with the
friends or service provider about the product or service. Positive word of mouth can build
the strong relationship between potential customer and providers as well as it play the
important role in the promotion of the product and develop positive image in the society.
(Day, 1977).so positive word of mouth is directly influence the customer satisfaction
because it is related loyalty of existing customers as well as the new arrivals. (Henning et
al, 2002).

6
2.3. Determinants of Customer Satisfaction:

There are different variables which are influence on the customers satisfaction directly or
in directly.

 Services quality.

 Price.

 Environment of restaurants.

Product quality

In Pakistan hotel industry product and service quality, price and environment are
recognized as an assets and customers are willing to pay more for these attributes.
Quality such as food material service providers to customers is very important because its
affects the customer mind which develop the satisfaction for the specific product. The
other element fair price which is charging for the specific product directly related to the
customer satisfaction. And in Pakistan price is that variable on which most of the
customers are take the alternative decision for purchasing. At the end environment for
that element customers are willing to pay more price for the product because in Pakistan
most customers are satisfy only for the environment of the hotel.so now a days in
Pakistan the trend of branded and well-furnished hotel are growing to the customers
demand and they are bearing more and more price for that type of environment.

2.3.1. Price:

Price is the key element in the customer satisfactions in hotel industry because in
Pakistan most of the customers on the price of the brand then further purchase it
.according to the different research price of any product can build and can be down the
standard of the brand. (Turel et al. 2006).price is playing a vital role in the customer
satisfaction because the charges of the product directly affect the customer, so if it is
affordable then customers satisfy it and willing to purchase the product again and again in

7
future. (Gustafson et al. 2005). Price fairness is lead to the customer satisfaction because
price is that element which directly customers are paying for particular product which
they are availing against the price. So forthe customer satisfaction the service provider
must focus on the charges of the brand which they are providing to the customers.

2.3.2. Service Quality:

The hotel industry in Pakistan service quality there are different things which are directly
and indirectly related to the customer satisfaction such as the taste of product which are
highly matter to customer satisfaction because due to taste customers are choose the
specific restaurant and willing to come for the furthers purchase and also become the
word of mouth for the potential customers. If we talk about the service provider then it
must be in a standard form because customers are paying extra for these services.
Bateson and Hoffman (2011) pointed out that “service quality is an attitude formed by a
long-term, overall evaluation of performance”. They explained that the manner of service
delivery, as well as the outcomes affects the perceptions of customers about the quality.
Kenyon and Sen (2015) have pointed out physical aspects of the service (e.g., equipment,
facilities), and the firm’s brand image as the factors that has an effect on customer
perceptions about quality. (Kim et al, 2004). And the good behavior of the service
providers develops the positive relationship and impression on the customers which take
the lead toward customer satisfaction. (Soderlund and Rosengren, 2008). There are some
dimensions of service quality through which you can measure the service quality known
as SERVQUAL model such as

• Credibility which is the value and worth that a customer gives to your service.
• Reliability is the fulfillment of the company’s promise of their service.
• Responsiveness is rating of interest in solving the problems of the customers by
company that how abruptly a company response to his customers.
• Empathy to ability the understand customer feeling and resolve the customer
problems.
• Tangible is the physical existence of employees to share and provide the accurate
services. (Parasuraman et al., 1988).

8
2.3.3. Environment:

The last variable which is influence the customer satisfaction is the environment of the
restaurant because in Pakistan there is developing the concept of branded and well-
furnished restaurants due to the growing literacy rate and betterment in the economy.
According to the Lim (2010) the atmosphere of the restaurant is influence the customer
satisfaction such like music, setting arrangement, decoration these are things which create
the positive image of the restaurant in the mind of customers.

2.3.4. Product quality:

This key term is believed as the collection of available characteristics and features of
products which are created on its ability in order to satisfy all given needs and demands
(Winder, 1996; Chavan, 2003; Khuong, 2013). Food quality is defined as one of the most
critical constituents of a dining performance and productivity, (Namkung et al, 2007; and
Sulek et al., 2004). Food quality is main factor affecting on customer loyalty, expressing
customer's perspective; a primary determinant for appealing customers and retaining
them repeatedly, as well as a core
Predictor of loyal level from customers, (Jang 2010). When it is compared with other
standards as service quality or environment, food quality is the most crucial component
of customer satisfaction, (Sulek 2004). There is a positive relationship between food
quality and customer satisfaction when measuring the impact of this key term on
satisfaction and behavioral intention (Namkung, 2007). Product quality is stated to
comprise three main factors for evaluation quality as "safety, appeal, and dietary
acceptability", (Sulek 2004) and it is always the most important part impacting on
customer satisfaction which is equivalent with other Factors in restaurants as physical
environment and service quality. Product quality is definitely mentioned by evaluating
about the actual products -meal or quality of food- from customers and place where these
meals are delivered -physical environment-, which is similar to tangible elements in
SERVQUAL as above by (Parasuraman 1988). Therefore, the concentration of food
quality in this research is to measure the impact level of food quality on customer
satisfaction when they spend money on eating and enjoying on restaurants. For more

9
specific, product quality is stated to comprise three main factors for evaluation quality as
"safety, appeal, and dietary acceptability", (Sulek 2004) and it is always the most
important part impacting on customer satisfaction which is equivalent with other factors
in restaurants as physical environment and service quality. Some researchers also found
out the influencing relationship of customer satisfaction and their behavioral intentions as
well as among these with food quality.

2.4. Research Gap:

Pervious article describe how price, service quality, environment and product quality help
the restaurant industry in improving customer satisfaction level. A great amount of work
has been done in various parts of the world to determine the impact of above mention
four factors on level of customer satisfaction in restaurant industry. My contribution in
this article is I am doing some analysis regarding the impact of these four factors on KFC
Multan. I am also doing SWOT, PESTEL, IFE, EFE, CPM and BCG Matrix analysis.

10
 Chapter: 3
Company Profile

3.1. Introduction of Kentucky Fried Chicken (KFC):

KFC, until 1991 known as Kentucky Fried Chicken is an American fast food
restaurant chain that specializes in fried chicken. Headquartered in Louisville, Kentucky,
it is the world's second-largest restaurant chain (as measured by sales) after McDonald's,
with almost 20,000 locations globally in 123 countries and territories as of December
2015. The chain is a subsidiary of Yum! Brands, a restaurant company that also owns
the Pizza Hut and Taco Bell chains.

KFC was founded by Colonel Harland Sanders, an entrepreneur who began selling fried
chicken from his roadside restaurant in Corbin, Kentucky during the Great Depression.
Sanders identified the potential of the restaurant franchising concept, and the first
"Kentucky Fried Chicken" franchise opened in Utah in 1952. KFC popularized chicken
in the fast food industry, diversifying the market by challenging the established
dominance of the hamburger. By branding himself as "Colonel Sanders", Harland
became a prominent figure of American cultural history, and his image remains widely
used in KFC advertising. However, the company's rapid expansion overwhelmed the
aging Sanders and he sold it to a group of investors led by John Y. Brown Jr. and Jack C.
Massey in 1964.

KFC was one of the first American 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, it 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,
which was taken over by the Reynolds food and tobacco conglomerate; that company
sold the chain to PepsiCo. The chain continued to expand overseas, however, and in
1987, it became the first Western restaurant chain to open in China. It has since expanded
rapidly in China, which is now the company's single largest market. PepsiCo spun off its

11
restaurants division as Tricon Global Restaurants, which later 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 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. Since the early 1990s, KFC has expanded its menu to offer other chicken products
such as 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 its slogans "Finger Lickin' Good", "Nobody does chicken like KFC" and "So
good"

3.2. Mission:
“To sell food in a fast, Friendly Environment that appeals to pride Conscious, healthy
minded customers”

3.3. Vision:
“Our vision is to be the first priority of every individual when it comes to chicken”

3.4. Slogans:
"Finger Lickin' Good” , “So Good”

3.5. Goals:

• Build an organization dedicated to excellence.

• Consistently deliver superior quality, and value in our products and services.
• Maintain a commitment to innovation for continuous improvement and growth,
striving always to be the leader the market place changes.
• Generate consistently superior financial returns and benefit our owners and
employees.

12
3.6. History:

Harland sanders was born in 1890 and raised on a farm outside Henryville, Indiana (near
Louisville, Kentucky).When Sanders was five years old, his father died, forcing his
mother to work at a canning plant. This left Sanders, as the eldest son, to care for his two
younger siblings. After he reached seven years of age, his mother taught him how to
cook. After leaving the family home at the age of 13, Sanders passed through several
professions, with mixed success.

In 1930, he took over a Shell filling station on US Route 25 just outside North Corbin,
Kentucky, a small town on the edge of the Appalachian Mountains. It was here that he
first served to travelers the recipes that he had learned as a child: fried chicken and other
dishes such as steaks and country ham. After four years of serving from his own dining
room table, Sanders purchased the larger filling station on the other side of the road and
expanded to six tables. By 1936, this had proven successful enough for Sanders to be
given the honorary title of Kentucky colonel by Governor Ruby Laffoon. In 1937 he
expanded his restaurant to 142 seats, and added a motel he purchased across the street,
naming it Sanders Court & Café.

Sanders was unhappy with the 35 minutes it took to prepare his chicken in an iron frying
pan, but he refused to deep fry the chicken, which he believed lowered the quality of the
product. If he pre-cooked the chicken in advance of orders, there was sometimes wastage
at day's end. In 1939, the first commercial pressure cookers were released onto the
market, mostly designed for steaming vegetables. Sanders bought one, and modified it
into a pressure fryer, which he then used to fry chicken. The new method reduced
production time to be comparable with deep frying, while, in the opinion of Sanders,
retaining the quality of pan-fried chicken.

In July 1940, Sanders finalized what came to be known as his "Original Recipe" of 11
herbs and spices. Although he never publicly revealed the recipe, he admitted to the use
of salt and pepper, and claimed that the ingredients "stand on everybody's shelf”. After
being re-commissioned as a Kentucky colonel in 1950 by Governor Lawrence Wetherby,

13
Sanders began to dress the part, growing a goatee and wearing a black frock coat (later
switched to a white suit), a string tie, and referring to himself as "Colonel". His associates
went along with the title change, "jokingly at first and then in earnest", according to
biographer Josh Ozersky.

The Sanders Court & Café generally served travelers, so when the route planned in 1955
for Interstate 75 bypassed Corbin, Sanders sold his properties and traveled the US to
franchise his chicken recipe to restaurant owners. Independent restaurants would pay four
(later five) cents on each chicken as a franchise fee, in exchange for Sanders' "secret
blend of herbs and spices" and the right to feature his recipe on their menus and use his
name and likeness for promotional purposes. In 1952 he had already successfully
franchised his recipe to his friend Pete Harman of South Salt Lake, Utah, the operator of
one of the city's largest restaurants.

Don Anderson, a sign painter hired by Harman, coined the name "Kentucky Fried
Chicken". For Harman, the addition of KFC was a way of differentiating his restaurant
from competitors; a product from Kentucky was exotic, and evoked imagery of Southern
hospitality. Harman trademarked the phrase "its finger lickin' good", which eventually
became the company-wide slogan. He also introduced the "bucket meal" in 1957 (14
pieces of chicken, five bread rolls and a pint of gravy in a cardboard bucket). Serving
their signature meal in a paper bucket was to become an iconic feature of the company.

By 1963 there were 600 KFC restaurants, making the company the largest fast food
operation in the United States. KFC popularized chicken in the fast food industry,
diversifying the market by challenging the established dominance of the hamburger.

In 1964, Sanders sold the company to a group of investors led by John Y. Brown Jr. and
Jack C. Massey for US$2 million (around US$15 million in 2013). The contract included
a lifetime salary for Sanders and the agreement that he would be the company's quality
controller and trademark. The chain had reached 3,000 outlets in 48 different countries by
1970. In July 1971, Brown sold the company to the Connecticut-based Heublein, a
packaged food and drinks corporation, for US$285 million (around US$1.6 billion in

14
2013). Sanders died in 1980, his promotional work making him a prominent figure in
American cultural history. By the time of his death, there were an estimated 6,000 KFC
outlets in 48 different countries worldwide, with $2 billion of sales annually.

In 1982, Heublein was acquired by R. J. Reynolds, the tobacco giant. In July 1986,
Reynolds sold KFC to PepsiCo for $850 million (around US$1.8 billion in 2013).
PepsiCo made the chain a part of its restaurants division alongside Pizza Hut and Taco
Bell. The Chinese market was entered in November 1987, with an outlet in Beijing.

In 1991, the KFC name was officially adopted, although it was already widely known by
that initialism. Kyle Craig, president of KFC US, admitted the change was an attempt to
distance the chain from the unhealthy connotations of "fried". The early 1990s saw a
number of successful major products launched throughout the chain, including spicy "Hot
Wings" (launched in 1990), popcorn chicken (1992), and internationally, the "Zinger", a
spicy chicken fillet burger (1993). By 1994, KFC had 5,149 outlets in the US, and 9,407
overall, with over 100,000 employees. In August 1997, PepsiCo spun off its restaurants
division as a public company valued at US$4.5 billion (around US$6.5 billion in 2013).
The new company was named Tricon Global Restaurants, and at the time had 30,000
outlets and annual sales of US$10 billion (around US$14 billion in 2013), making it
second in the world only to McDonald’s.Tricon was renamed Yum! Brands in May 2002.

By 2015, the company was struggling, having lost business to other retailers and being
surpassed by Chick-fil-A as the leading chicken retailer three years previously. To
combat this, the company launched a new initiative with a plan to revamp its packaging,
decor and uniforms, as well as expanding its menu. Additionally, beginning in May 2015,
a new series of advertisements was launched featuring Darrell Hammond as Colonel
Sanders. Subsequently, in a planned rotation of actors, Norm Macdonald, Jim Gaffigan,
George Hamilton and Rob Riggle portrayed Sanders in similar ads through the fall of
2016.

15
3.7. Products of KFC:

Chicken Mania

Hot Shots

Hot Wings

Family Feast

Zinger Burger

Mighty Zinger

Nuggets

Twister Roll

Wow Meal

Extreme Zinger

Rice n Spice

Fries

Chicken Piece

Dinner Roll

Zinger Stripes

Chicken Chips

Arabian Rice

16
3.8. Eleven herbs and spices:
Sanders' Original Recipe of "11 herbs and spices" is one of the most famous trade
secrets in the catering industry. The recipe is not patented, because patents eventually
expire, whereas trade secrets can remain the intellectual property of their holders in
perpetuity.

A copy of the recipe, signed by Sanders, is held inside a safe inside a vault in KFC's
Louisville headquarters, along with eleven vials containing the herbs and spices. To
maintain the secrecy of the recipe, half of it is produced by Griffith Laboratories before it
is given to McCormick, who add the second half.

3.9. Competitors:

There are the following competitors of KFC in Multan Market.

1. McDonald’s

2. Pizza Hut

3. Dominos

4. Subway

5. Burger King

6. AFC

7. Fry Chick

8. Papa John's Pizza

9. RFC (Rasheed Fried Chicken)

17
3.10. KFC Pakistan:

KFC owned and Operated by Cupola Group in Pakistan, First entered Pakistan in the late
1960s to early 1970s but subsequently closed down. Started again in Gulshan-e-Iqbal in
Karachi in 1997.KFC has a presence in eighteen major cities of Pakistan (Karachi,
Lahore, Islamabad, Rawalpindi, Multan, Gujranwala, Sukkur, Murree etc.) with more
than 65 outlets nationwide. KFC Pakistan menu consists of burgers, fried chicken,
nuggets, fries, rice dishes and rolls.

18
 Chapter: 4
Analysis and Discussion
4.1. SWOT ANALYSIS:
The purpose of the SWOT analysis is to understand and help to build a strong business
strategy and make sure that company considered all the strengths and weaknesses of your
company, as well as the opportunities and threats, which exists in the market.
Strengths and weaknesses are internal to the company whereas Opportunities and threats
are external to the company. Internal factors are changeable with efforts but on the other
hand, external factors are not in control of the company. External factors are like
Political, Environmental, Social, Technology, and Legal.
4.1.1. Strengths:
1.Quality products and services
2.Cleanliness
3.Brand equity
4.Strong trade mark recipes
5.Strong financial position and largest market share
6.Good Taste
7.Global Experience
8.Operations
9.Strong Customer Focus
4.1.2. Weaknesses:
1. High price
2. Image of ‘Fried’
3. Only chicken related recipe
4. Most of the product having close substitution in market
5. Inconsistent Quality of service in many outlets.
6. Lack of control in Joint- venture arrangements.
7. Poor infrastructure
8. Lack of outlets
9. Lack of parking and drive through facility

19
 10. Lack of knowledge about customers
11. Not covering whole geographical area for home delivery
4.1.3. Opportunities:
1. Increase outlets
2. Undeveloped market abroad
3. Increase trends to take meal out of home
4. Earn big profits as the population grows
5. Availability to increase the number of franchise to other countries.
6. Updating infrastructure
7. Balanced menu
8. Focus on 18-24 age group
4.1.4. Threats:
1. New entrants / better quality brands
2. Health conscious eating habits
3. Lawsuits/Animal care activists (PETA, People for Ethical treatment of Animals)
4. No support from government agencies
5. Intensive Competition
6. Increasing wage rate directly affect the menu prices
7. Health trend
8. Population is price conscious

4.2. Introduction to IFE and EFE Matrix:

IFE (Internal factors evaluation) is used to see that how much company owned
strengths and weaknesses and their value. A table is made in which there are ratings
assigned to both strengths and weaknesses and evaluate them.
EFE (External factors evaluation) the same process but in this we see the threats
and opportunities that company has to face. The ratings assigned and values of weighted
score and evaluates the total value then comparison the total value with the average
value. It approaches to competitive advantage contends that internal resources are more

20
important for a firm than external factors in achieving and sustaining competitive
advantage.

4.3. The Internal Factor Evaluation (IFE) Matrix:

IFE matrix summarizes and evaluates the major strengths and weaknesses in the
functional areas of a business, and it also provides a basis for identifying and evaluating
relationships among those areas. Intuitive judgments are required in developing an IFE
Matrix, so the appearance of a scientific approach should not be interpreted to mean this
is an all-powerful technique
1. List key internal factors as identified in the internal-audit process. List strengths first
then weaknesses.
2. Assign a weight that ranges from 0.0 (not important) to 1.0 (all-important) to each
factor. The sum of all weights must equal 1.0.
3. Assign a 1-to-4 rating to each factor to indicate whether that factor represents a major
weakness (rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3), or
a major strength (rating = 4). Note that strengths must receive a 3 or 4 rating and
weaknesses must receive a 1 or 2 rating.
4. Multiply each factor’s weight by its rating to determine a weighted score for each
variable and add all the weighted scores for the variables for total weighted score.

21
 Table 4.1
Internal Factor Evaluation Matrix for KFC
Key internal factors Weight Rating Weighted Score

Strength
Good Taste 0.12 4 0.48

Brand Equity 0.08 4 0.32

Global Experience 0.08 3 0.24

Trademark Recipes 0.08 3 0.24

Strong Customer Focus 0.12 4 0.48

Operations 0.07 3 0.21

Weaknesses

High Price 0.08 2 0.16

Image of Fried (unhealthy) 0.07 3 0.21

Only Chicken Related Recipe 0.09 2 0.18

Most of the product having close 0.07 2 0.14

substitutes in market.

Inconsistent Quality of service 0.08 3 0.24

in many outlets.

Lack of control in Joint-venture 0.06 2 0.12

Arrangements

Total 1.00 3.02

22
4.3.1. Results for IFE Analysis:
So from the above table the total value that comes is 2.78. In this analysis (IFE) the
average value is 2.5, if the total value comes down by this its mean the company is not
much stronger internally and have more weaknesses and if value is up then average value
the company is internally strong. And the value of KFC is 2.78 much greater than
average, so the result is cleared the company has more strengths than weaknesses and
internally strong.

4.4. The External Factor Evaluation (EFE) Matrix:

1. List key external factors as identified in the external-audit process. Include a total of
15 to 20 factors, including both opportunities and threats that affect the firm and its
industry. List the opportunities first and then the threats
2. Assign to each factor a weight that ranges from 0.0 (not important) to 1.0 (very
important). The weight indicates the relative importance of that factor to being
successful in the firm’s industry. Opportunities often receive higher weights than
threats, but threats can receive high weights if they are especially severe or
threatening. The sum of all weights assigned to the factors must equal 1.0.
3. Assign a rating between 1 and 4 to each key external factor to indicate how
effectively the firm’s current strategies respond to the factor, where 4 = the response
is superior, 3 = the response is above average, 2 = the response is average and 1 = the
response is poor. Ratings are based on effectiveness of the firm’s strategies.
4. Multiply each factor’s weight by its rating to determine a weighted score.
5. Sum the weighted scores for each variable to determine the total weighted score for
the organization.

Regardless of the number of key opportunities and threats included in an EFE Matrix,
the highest possible total weighted score for an organization is 4.0 and the lowest
possible total weighted score is 1.0.

23
 Table 4.2

External Factor Evaluation Matrix for KFC

Key External Factors Weight Rating Weighted Score

Opportunities

Increase Outlets 0.15 3 0.45

Undeveloped market abroad 0.12 2 0.24

Increase trends to take meal out of home 0.13 4 0.52

Earn big profits as the population grows 0.10 3 0.30

Add more items in menu, other than chicken 0.14 4 0.56

Threats

New Entrants 0.07 3 0.21

Health conscious eating habits 0.07 4 0.28

Lawsuits against KFC 0.08 3 0.24

Currency Fluctuations 0.08 2 0.16

Intensive competition 0.06 4 0.24

Total 1.00 3.20

24
4.4.1. Results for EFE Analysis:

The same technique applies here as we discussed in the above table, but in this there are
opportunities and threats that are external factors. Company can never finish these factors
completely but can minimize as she can. The same weights and ratings assigned and the
total is 3.20. It is greater than average and not company much externally strong and not
so much weak. But it can be more strong externally by using positive opportunities and
minimize the threats so far.

4.5. Competitive Profile Matrix (CPM):

In this term strengths and weaknesses the company owned and comparison them to
the competitor’s strengths and weaknesses and the strategic position.
Step 1 Identify the Critical Success Factors
Those factors which might help an organization to achieve its missions. Critical
Success Factors (CSF) ensures the company for its success.
Step 2 Assign Weights to CSF’s
Assign to each factor a weight that ranges from 0.0 (not important) to 1.0 (very
important). The weight indicates the relative importance of that factor to being successful
in the firm’s industry. Opportunities often take higher weights than threats, but threats
might get higher if they are much threatening. By comparing the successful with
unsuccessful competitors or by group discussion these weights can be determined. The
sum of all weights assigned to the factors must equal 1.0.
Step 3 Assign Ratings to CSF’s
The ratings refer to strengths and weaknesses of each organization in terms of the
CSF’s, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 =
major weakness. Ratings can be assigned using benchmarking or during team
discussions.
Step 4 Compare the Scores and Take Action
Compare the scores on each factor to identify where company’s relative strengths
and weakness.

25
 Table 4.3 Competitive Profile Matrix

Sr Critical Success Weight KFC McDonald

No Factor
Rating Score Rating Score
1-4 1-4
1 Market Share 0.20 4 0.80 2 0.40

2 Product Quality 0.15 3 0.45 2 0.30

3 Customer Loyalty 0.17 3 0.51 1 0.17

4 Customer services 0.25 3 0.75 3 0.75

5 Price competitive 0.13 2 0.26 4 0.52

6 Advertisement 0.10 3 0.30 2 0.20

TOTAL 1.00 3.07 2.34

4.5.1. Results for CPM Analysis:

From the above results the total score of Kentucky Fried Chicken is greater than its
competitors. Its mean it is going much good currently and can be much stronger by
finishing weaknesses and minimizing the threats. It can make a good place in market by
competing the competitors with the help of opportunities and strengths and internally and
externally. Every brand in Fast food industry has some weaknesses and might be some
opportunities which they are not taking the benefit from them. So that is the good chance
to compete them.

26
4.6. Boston Consulting Group Matrix:
BCG Matrix is a chart that was created by Bruce D. Henderson for the Boston
Consulting Group in 1970 to help corporations to analyze their business units, that is,
their product lines. This helps the company allocate resources and is used as an analytical
tool in brand marketing, product management, strategic management, and portfolio
analysis.
4.6.1. Stars:
Star products all have rapid growth and dominant market share. This means that star
products can be seen as market leading products. These products will need a lot of
investment to retain their position, to support further growth as well as to maintain its
lead over competing products. This being said, star products will also be generating a lot
of income due to the strength they have in the market Star product can become Cash
Cows as the market growth starts to decline if they keep their high market share.
Example, Zinger Burger.
4.6.2. Cash Cows:
Cash cows don’t need the same level of support as before. This is due to less competitive
pressures with a low growth market and they usually enjoy a dominant position that has
been generated from economies of scale. Cash cows are still generating a significant level
of income but is not costing the organization much to maintain. These products can be
“milked” to fund Star products. Example, Rice n spice.
4.6.3. Dogs:
Product classified as dogs always have a weak market share in a low growth market.
These products are very likely making a loss or a very low profit at best. These products
can be a big drain on management time and resources. The questions for managers are
whether the investment currently being spent on keeping these products alive, could be
spent on making something that would be more profitable. The answer to this question is
usually yes. Example, Arabian Rice.
4.6.4. Question Marks:
Also sometime referred to as Problem child, these products prove to be tricky ones for
product managers. This product is in a high growth market but does not seem to have a

27
high share of the market. This could be reason for this such as a very new product to the
market. Example, Twister.

Zinger Burger Twister

Rice n Spice Arabian Rice

Source: https://www.google.com.pk/search?q=bcg+matrix&source

28
4.7. PESTEL ANALYSIS:
PESTEL analysis uses certain factors that determine how external forces are affecting the
working condition of any organization.

These external factors include:

a) Political
b) Economical
c) Social
d) Technological
e) Environmental
f) Legal
4.7.1. Political Factors:
The political factors include the government policies as KFC being a foreign company,
but they have to obey the policies of the Government laid by the government of Pakistan,
the country where the business activities are being carried out. KFC has handled this
situation very tactfully and has obeyed the policies of the Government as prescribe by the
government in order to run this kind of business. The other major factor is the pricing
policies. KFC maintain & design its price policies keeping in view the income & income
distribution of the people living in the country. That’s why all the classes are the target
market of KFC. And the most important factor is the political instability. As in Pakistan,
there are political crises faced by the government, these greatly affect the business of
KFC.
4.7.2. Economic Factors:
The economic factors includes the income of the people, KFC is going to target. Income
is an important economical factor of the KFC. This factor decides which class KFC is
going to target. In the early time of KFC, they were focusing on the upper class but they
after some time changed their strategies and started to target the mass market by
introducing some different kinds of meals and offers through which we can say that they
target the middle & the upper level as well. The consumption behavior of the people
plays an important role. KFC also estimated the consumption behavior of the people,
their liking and disliking and make decision accordingly. Payment method is an

29
important factor in the economical factor of the KFC. They check the behavior of the
regarding the payment methods of the people. They check whether the gives money in
the form of cash or plastic money.
4.7.3. Socio-culture Factors:
The Social/Cultural Factors includes the Social Class, as it is discussed earlier that KFC
target all the class including the upper class, upper middle and lower middle class etc.
Although the culture of KFC from where they come is entirely different but they have
adopted the Pakistani culture as they had to serve the people living in Pakistan having
entirely different culture from other areas. And it has not only adopted the Pakistani
culture but also the Religion as well. They offer Halal foods to the customers, which is
the symbol that they adopted the Muslim religion strategies as they had to serve in the
Muslim country, to the Muslim customers.
4.7.4. Technological Factors:
The technological factors include the Pace of change at a fast level.
Pace of change mean rate of change. KFC has strategy to introduce new technology
whenever they think that it is a time to introduce new technology. Research &
Development is also an important factor in the Technological factor. KFC always support
the work of research & development in order to introduce the new technology. Capital
formation means stock of machinery. KFC has a stock of machinery in order to run its
business activities. In other words KFC has a good amount of Capital Formation.
4.7.5. Legal & Environmental Factors:
In the recent past, a number of legal changes have been implemented in Pakistan, such as
recycling, minimum wage increase and disability discrimination, which has directly
affected businesses there. However, when it comes to environment, the quality of air in
Pakistan has been adversely affected by industrialization and urbanization, also resulting
in health problems. As a result, there have been establishments of environmental pressure
groups, noise controls, and regulations on waste control and disposal.

30
 Chapter: 5
Conclusion and Recommendation
5.1. Service Quality:
Service quality has a positive and strong impact on customer satisfaction. If the managers
want to increase customer satisfaction level, they need to enhance the level of service
quality. The front line staff should be given proper training on how to deal with the
customer. They should be polite and always willing to help customer with the smile on
their face. They must never ignore customer complaints and queries as customer
feedback is the only way to enhance service quality.

5.2. Price:
Price has a strong and a moderate impact on customer satisfaction. If KFC Multan wants
to increase the level of satisfaction of their customer they need to pay attention on their
price levels. The menu should be design as to cater a wide range of customers as there are
some customers who could afford high price deal box whereas there are some who could
only afford economical price deals. Recently KFC Pakistan has incorporate a whole new
range of “Everyday Affordable Meals”. This is surely going to bring the customer
satisfaction level to whole new height.

5.3. Environment:
Environment has a strong impact on customer satisfaction. If the KFC Multan Manager
wants to increase the level of satisfaction of their customer they need to pay attention on
their restaurant environment as well as kitchen environment. KFC Multan uses paper
bags (Green Packaging) instead of plastic bags to reduce environmental pollution. They
should recycle the waste and trash at daily basis to reduce pollution. They must use music
and art on the wall of restaurant to feel customer pleasure. They must stop using harmful
toxic chemicals in cleaning tables and floor.

5.4. Product Quality:

Product quality has main key factor for customer satisfaction. If KFC Multan wants to
increase the level of satisfaction of their customer they need to be consistent in quality.

31
Quality is a foundation of our business. While safety is of prime importance and
technology leadership drives our business forward, it is our commitment to quality
and continuous improvement that customers have come to rely on to help build their
businesses.
Our customers can:
 Be confident that we strive to provide a consistent quality experience to meet or
exceed their expectations.
 Trust that we endeavor to deliver consistent high-quality products.
 Expect us to strive to always do the right thing, the right way.

32
 References

1. Gunawan, A. & Iqbal, I. 2018, Quality Measurement Customer Satisfaction Index

(CSI) Method and Importance-Performance Analysis (IPA) Diagram PT. ASDP
INDONESIA FERRY (PERSERO) Merak – Banten, Juornal of Industrial
Engineering Indonesia.
2. Bateson, J. E. G., & Hoffman, K. D. (2011). Services Marketing (4th Ed.). United
States: South-Western College.
3. Chew Gin Lee & Shi-Min How (2018) Long-run causality between customer
satisfaction and financial performance: the case of Marriott, Current Issues in
Tourism, DOI: 10.1080/13683500.2018.1453788
4. CHAVAN, R. B., (2003). Manual on Quality Assurance for Khadi. In: Mahatma
Gandhi Institute of Rural Industrialization a Collaborative Project of KVIC & IITD.
New Delhi.
5. Christian Homburg and Annette Giering (2016): Customer Satisfaction and Loyalty-
an Empirical Analysis.
6. Day, R. (1977),``Consumer satisfaction, dissatisfaction, and complaining behaviour'',
in R. Day (Ed.),Symposium Proceedings, 20-22 April, School of Business, University
of Indiana, Bloomington, Indiana.
7. Deng, Z., Lu, Y, Wei, K. K., Zhang, J. (2009), “Understanding customer satisfaction
and loyalty: An empirical study of mobile instant messages in China”, International
Journal of Information Management.
8. Eshghi, A., Haughton, D., and Topi, H., (2007), “Determinants of customer loyalty in
the wireless telecommunications industry”, Telecommunications policy,
9. Gustafsson, A., Johnson, M.D., and Roos, I. (2005), “The Effects of Customer
Satisfaction, Relationship Commitment Dimensions, and Triggers on Customer
Retention”, Journal of Marketing.
10. Thorsten Hennig-Thurau and Alexander Klee, (Dec 1997).The Impact of Customer
Satisfaction and Relationship Quality on Customer Retention: A Critical
Reassessment and Model Development, Journal of Psychology and Marketing

33
11. Hennig-Thurau, T., Gwinner, K.P. and Gremier, D.D. (2002), “Understanding
relationship marketing outcomes: an integration of relational benefits and relationship
quality”, Journal of Service Research.
12. JANG, S., and Ha, J. (2010). Effects of service quality and food quality: The
moderatingrole of atmospherics in an ethnic restaurant segment. [Online].
International Journal ofHospitality Management, 29 (3), 520-529.
13. Kenyon, G. N., &Sen, K. C. (2015). The Perception of Quality Mapping Product and
Service Quality to Consumer Perceptions. London: Springer London.
14. Kim, M.K., Park, M.C., and Jeong, D.H. (2004) “The effects of customer satisfaction
and switching barrier on customer loyalty in Korean mobile telecommunication
services”, Electronics and Telecommunications Research Institute, School of
Business, Information and Communications University, Yusong-gu, Hwaam-dong,
Taejon 305-348, South Korea.
15. KHUONG, M. N., and Anh, H. (2013). Direct and Indirect Effects of Customer
Satisfaction through Product and Service Quality–A Study of PhuNhuanJewelry
Stores in Ho Chi Minh.International Journal of Business and Management Review
Vol.4, No.6.
16. Kotler, (2012). Principles of marketing14th Edition. Pearson Education.
17. Lim, H. (2010). Understanding American customer perceptions on Japanese food and
services in the U.S. UNLV Theses/Dissertations/Professional Papers/Capstones.
18. NAMKUNG, Y., and Jang, S. (2007). Does food quality really matter in restaurant:
its impact of customer satisfaction and behavioral intentions? Journal of Hospitality
and Tourism Research.
19. Oliver, R. L. (2015). Satisfaction A Behavioral Perspective on the Consumer (2nd
ed.). New York, NY: Routledge.
20. Parasuraman, A., Zeitham, A. V. & Berry, L. L. (1988). SERVQUAL: A multiple-
item scale for measuring consumer perceptions of service quality. Journal of
Retailing.
21. Soderlund, M., and Rosengren, S. (2008), “Revisiting the smiling service Worker and
customer satisfaction”, International Journal of Service Industry Management.

34
22. SULEK, J. M., and Hensley, R. L. (2004). The relative importance of food,
atmosphere, and fairness of wait. Cornell Hotel and Restaurant Administration
Quarterly.
23. Turel, O., and Serenko, A. (2006), “Satisfaction with mobile services in Canada: An
empirical investigation”, Telecommunication policy, 30pp 314–331.
24. WINDER, R. E., and Judd, D. K. (1996). Organizational orienteering: Linking
Deming, Covey, and Senge in an Integrated Five Dimension Quality Model. In: Proc.
ASQC Seventh National Quality Management Conference Transactions. American
Society for Quality, America.
25. Zeithaml, V. A., Bitner, M. J., &Gremler, D. D. (2009). Service Marketing:
Integrating Customer Focus Across The Firm (5th Ed.). New York, NY: McGraw-
Hill/Irwin.

35
 Appendix

1. When did KFC established originally?

2. When did KFC moved into Pakistan?
3. Who was the founder of KFC?
4. What are the objectives of KFC?
5. How KFC do its operations?
6. Whom are the main rivals of KFC?
7. What are your major strengths?
8. What are the main weaknesses of KFC?
9. What are your best opportunities to take advantage of?
10. What are the central threats to KFC?
11. What are the steps you take to create customer satisfaction?
12. Does KFC give trainings to its employees to create customer satisfaction?
13. How KFC maintains product quality to ensure customer satisfaction?
14. How KFC manages its environment to create a better customer experience?
15. How KFC uses pricing to create value and customer satisfaction?

36