Submitted to Nasira Siddika (NSD) Lecturer, North South University. Submitted By
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NAME
ID
Mohammad Ziaul Haque
103 0119 030
Naim Mohammad Abu Saleh
093 0134 030
Shakera Ferdous
093 0942 030
Mohammad Sazzadur Rahman
102 0104 030
Md. Abu Jewel
102 0057 530
Letter of Transmittal Dec10, 2012 NasiraSiddika(NSD) Lecturer, BBA Department North South University Dhaka, Bangladesh. Subject: - A research report on the consumer behavior of young people while visiting fast food shops. Dear Madam, Here is a group report on the “Consumer Behavior Towards Newly Open Restaurant” which you have asked us to prepare as the part of our MKT344 course. While preparing this report we have left no stone unturned to include all the relevant information and the explanations to make the report informative and comprehensive. It was a very enriching and thrilling experience for us to prepare this report. Our report writing skills and communicating skills have improved a lot while doing this report. If you find any kind of assistance in understanding this report, please do not hesitate to consult with us in the classroom. Thank you for having trust on us and giving us that wonderful opportunity to have some real life experience in marketing. Sincerely, MOHAMMAD ZIAUL HAQUE
103 0119 030
NAIM MOHAMMAD ABU SALEH
093 0134 030
SHAKERA FERDOUS
093 0942 030
MD SAZZADUR RAHMAN
102 0104 030
MD ABU JUWEL
102 0057 530
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Letter of Acknowledgement At first we would like to thank Almighty Allah for giving us the patience and the capacity to put a hard endeavor with tremendous devotion. First and foremost thanks to our Course Instructor, NasiraSiddika (NSD) for his invaluable guidance, encouragement and suggestions throughout the entire MKT344 course. Without her assistance and trust on us it would have been impossible to complete and submit this report. We are really grateful to the stuffs of “Vooter Adda” they have given their precious time to answer our questions and have shared their valuable experience with us. We will also like to thank all the people who have answered our sample questionnaire. All their information and suggestion have taught us a great lesson and preparing this report has been a very positive and uplifting experience.
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TABLE OF CONTENTS TOPIC
Page No
Cover Page
1
Letter of Transmittal
2
Acknowledgement
3
ABSTRACT
5
4
1. Introduction
6
1.1 Fast food Product
6
1.2 Problem focus
7
1.3 Objective of the study
8
1.4 Presentation of the study
8
1.5 Limitation of the study
8
2. Methodology
8
2.1 Description of study area
9
2.2 Sampling design and data collection
10
3. Review of literature
10
3.1 Communication and consumer behavior
11
3.2 Influence of culture
(12-13)
3.3 Consumer motivation
(13-16)
3.4 Consumer influence of innovation
(16-17)
3.5 Decision making process
(18-21)
4. Recommendation
(21-22)
5. Appendix
(22-31)
ABSTRACT
Hundreds customers randomly from “Vooter adda” had been interviewed via pre designed questionnaire which is situated in Taltola, khilgaon. Descriptive evaluation indicates that most of the participants was young, well-educated as well as economically well off. Interpersonal relationship was the primary source associated with awareness about fast food and participants viewed fast restaurants because recreation as well as outing. Frequent visit of individuals in fast food restaurants indicates this quick growing business in Bangladesh .But because of expensive rate from the food price majority people are avoiding to go to this kind of restaurant. Grill item seemed to be fast options item followed by dessert. Cooperative mindset of things, good food test, different atmosphere and specially the elements of time savings inspires the customers strongly to fast foods over homemade food. There is really a need to educate people concerning the caloric require according sex, age as well as profession as well as health to enable them to choose the balance diet. The rate ought to be maintaining this type of level exactly where majority people can work.
Keywords: Fast food, Restaurant, Consumer, Test, Grill item, Dessert.
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1. INTRODUCTION There is nobody in the world that is left out of the class of consumers. The consumer- hood continues till one’s last breath in the world. The consumer purchases a variety of goods and services to satisfy his wants and he is always influenced in his purchasing activities by some considerations which lead him to select a particular commodity or a particular retail store in preference to others. So, consumer buying is more complex. Consumer purchases are likely to be influenced by physiological, psychological and sociological factors. The commodities and services are brought by the consumer to satisfy his basic needs, for comfort, pleasure, recreation and happiness. Every individual has physiological need such as hunger, shelter, thirst, etc. which have to be satisfied for survival. The psychological factors like status prestige and social factors like friends, neighbors, job and relatives influence their purchasing activities. People bear certain beliefs and attitudes towards certain types of goods, brands of commodities and retail outlets based on their previous experience. When there is a need, they are able to discover some new commodities capable of satisfying their needs. Before the commodities and brands are selected, these commodities must compete successfully against alternatives in the market. The selection of a particular commodity becomes important for consumer since there are wide varieties of consumer goods in the market. Again selection of a particular commodity depends on income of the consumer and necessity of the product to the individual. Before the selection of the commodity purchased, an individual requires information regarding the various sources of supply of the commodity, its brands, relative merits and demerits, uses and value of their characteristic features and services offered. The common sources through which individual gathers information are from advertising media (television, radio and newspapers), friends, retailers in the locality, displays in shops and food labels.
1.1 Fast food products: Unlike olden days where man used to have his food lavishly and slowly, the present trend changed the habits of foods, which are simple and easy to digest. Hence, the existence of these foods fulfilled all the needs of modern human being. The food habits in Bangladesh have changed due to the western influence and the usage of these foods is also on the rise. In Bangladesh, majority of food consumption is still at home. Nevertheless, out of home food consumption is increasing due to increase in urbanization, breaking up of the traditional joint family system, desire for quality, time which translates into an increased need for convenience, increasing number of working women, rise in per capita income, changing lifestyles and increasing level of affluence in the middle income group had brought about changes in food habits. In the last two decades, the share of urban population has increased from 23.30 per cent in 1981 to 27.80 per cent in 2001. During the same period the female work participation rate had increased from 19.70 to 25.70 per 6
cent. The per capita income increased from $816-$848 in 2012(current fiscal year). The change in food habits was evident from the growth of food processing industries. Generally, food is prepared depending on the habits, tastes, social status, economic factor, availability, traditions, habitats, etc.of the people of that region. The most sought after in the present age are the fast foods. Actually Fast food is food offered or exposed for sale without additional cooking or preparation, which is packaged on the premises where they are being sold and are ready for consumption. Development of the metropolitan cities due to increase in population, emergence of industries, evolution of various new factors, time factor, etc. created the need for fast foods in the market. Due to industrialization, the labor category is getting attracted to it because of better emoluments and hence there is shortage of home maid-servants. Due to this, the housewives, in order to save time started using fast foods. As the literacy rate is increasing among the women, a large number of them in our country are taking up jobs to setup their own status in the society and to use the extra income generated. These are creating the need for fast food. Earlier times, a single family consisted of many people i.e. ., a group of several nuclear families were living in a single place. Hence, larger quantities of the food were used to be prepared. But as these joint families started disappearing due to various reasons, each single family started using these ready foods in order to save time and energy. Due to establishment of multi- national companies in Bangladesh, the lady of the house also started working, because of which there is no time to prepare food at home. Hence, this created the need for using fast foods. The standard of living is also changing due to raise in income level, influence of western countries, more global trade, traveling etc. hence people are changing their taste to ready foods more compared to the old traditionally prepared foods. In the modern era, the media, particularly electronic and print media, are playing an important role in creating awareness of the products manufactured and released in the market. All these factors are responsible for the popularity of restaurant in Bangladeshi market. The marketers should see to it that the fast food is available to the consumers without any difficulty at competitive rates. The products should be provided to consumers by keeping in mind as when they want, where they want and the manner in which they want. These methods help in increasing the sales of the product with good feedback from the customers and creating niche for restaurant in the market.
1.2 Problem focus Several firms had been engaging in production and marketing of fast food products. Hence, the consumers had a greater option to choose from. In this context, a study on consumer behavior was seemed to be important to understand the buying behavior and preferences of different consumers. Understanding the consumer behavior would help the firms in formulating strategies to cater to the needs of the consumer and thereby increase their market share. Consumer’s taste and preference were 7
found to change rapidly, especially in a dynamic environment. Keeping in view the importance of consumer behavior and consumption pattern, the present study was under taken with the following objectives.
1.3 Objectives of the study The specific objectives of the study were: i. ii. iii. iv. v.
To examine consumer behavior issue, why this issue is important and interesting. To study the purchase behavior of ready-to-eat food products. To evaluate newly open restaurant preference of the consumers. To study the factors influencing newly open restaurant preference. To evaluate alternative purchase plans of the consumers.
1.4 Presentation of the study The study has been presented in four chapters as indicated below. Chapter-I deals with why this issue being studied, importance and specific objectives of the study; Chapter-II outlines the features of the study area, nature and source of data, sampling procedure and analytical tools and techniques employed in the study; Chapter-III is analysis of consumer behavior using different type of theory concept; Chapter-IV provides the summary of the whole study and also suggests the policy implication based on findings of the study. At the end, appendices and important references have been listed relating to the present study.
1.5 Limitation of the study This study was based on primary data collected from sample consumers by survey method. As many of the consumers furnished the required information from their memory and experience, the collected data would be subjected to recall bias. The study area was limited to only Dhaka city and the findings may not be applicable to other markets, as vast difference exists among the consumers with regard to demographic and psychographic characteristics. Hence, the findings of the study may be considered appropriate for the situations similar to study area and extra care should be taken while generalizing the results.
2. METHODOLOGY This chapter covers the following aspects: 2.1 Description of study area 2.2 Sampling design and data collection
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2.1 DESCRIPTION OF STUDY AREA Dhaka is the fastest growing city in Bangladesh. The population is heterogeneous with diverse cultural, religious and economic background. This urban conglomeration covers an area of 1353 square kilometers with a population of 8.5 million (2001 census). Because of the existence of various linguistic, religious and ethnic groups, it has been a very good marketing center for launching new products. Since, this city provide an ideal setting to study the behavior of consumers towards fast food products, so the present study was undertaken on a newly open restaurant “Vooter adda”.
2.2 SAMPLING DESIGN AND DATA COLLECTION 2.2.1 Selection of Restaurant food items Preliminary discussions were held with the local consumers and the restaurant authority about the consumption of fast food products as well as about the brands available and preferred in the study area to gather information on the products to be selected for the study. Based on the discussions, the most commonly available and used products in the study area were selected. The particular products were selected in such a way as to represent one product from each food group like Vegetable, Grill items, Soups & Sauces, Snacks and Dessert & Baking items. The products selected for the study were as follows:
Vegetable – Sauté & Salad Grill items– Meat, chicken with “Kabab” Soups & Sauces – Cold & Hot soups, Sweet sauces Snacks – Salty& Crunchy (popcorn), snacks bar. Dessert & Baking – Cakes, Breads, cookies.
2.2.2 Sample selection The total samples selected for the study was 100 respondents. They were selected randomly irrespective of age, education and income level.
Classification of the respondents The respondents were classified into different categories based on age. Age Age Group 1 (AG1) – Below 20 years Age Group 2 (AG2) – Between 21 – 40 years Age Group 3 (AG3) – Between 41 – 60 years 9
Age Group 4 (AG4) – Above 60 years Income The respondents were post classified into three income groups based on their income. Low income– Below 300(US dollar) per month. Middle income– Between 300-350(US dollar) per month. High income – Above 350(US dollar) per month. Collection of data To study the objectives, required data were collected from primary as well as secondary sources.
Primary data The data required for the study were collected from the respondents by personal interview method with the help of pre-structured questionnaire. The respondents were interviewed at restaurants, university campus, and even at the homes. The questionnaire consisted of: Part I : General information like name, age, education, sex, occupation, food habit, family income and family type. Monthly expenditure on food items in general and fast food products in particular. Part II : Specific information included the information regarding purchase behavior, factors influencing the purchase of ready- to- eat food products, brand awareness, sources of information for brand awareness, frequency of purchase, nature of purchase decision, place of purchase, influencers of purchase decision, brand preference, factors influencing to prefer particular brand and decision making process of the consumers.
Secondary data The secondary data on location, demography and regarding population of the study area were collected from text books, group discussion and published sources.
3. REVIEW OF LITERATURE In this chapter we are going to analysis of the consumer behavior using theory concepts of communication & consumer behavior, influence of culture, consumer motivation, consumer influence of innovation and decision making process. These are presented below: 3.1 Communication and consumer behavior 10
3.2 Influence of culture 3.3 Consumer motivation 3.4 Consumer influence of innovation 3.5 Decision making process
3.1 Communication and consumer behavior: Many factors play into the buying behavior of the consumer especially when they want to go a new restaurant to try out new foods and services. Successful marketers take into consideration the beliefs and culture of the buyer, as well as the family situation and even the psychological outlook of the purchaser. 3.1.1 The Psychology of Buying
In order to market a food or service to a target group, manufacturers should determine the needs of the buyer. Some buyers are looking for a sense of safety and belonging, while others want to gain esteem in the eyes of their peers. When providing information to buyers, marketers must understand how the product is perceived. Chances are the buyer will interpret information about the product based on previous knowledge and beliefs, but learning about the product can change the buyer's behavior. Buyers will also purchase products based on their personalities and lifestyles. For example, people who want to live an active, healthy life may opt for organic foods. 3.1.2Economic Factors The amount of money you have determines to a large extent what foods item you will take when you go to the restaurant. You may want to take dessert, in which case, you are faced with the question of which make to buy. Although you may have a strong desire to take “TURKİSH CUİSİNE”, you may decide to
take daydreamer dessert. In this case, you will sacrifice your love for the luxury item because you can only afford the cheaper item. 3.1.3 Social Considerations
People make decisions on what to buy based on their needs. However, in a situation when you can afford to have these needs, social considerations come into play in deciding what exactly to buy. For instance, while a consumer can comfortably go a road side hotel with tk300 for having their lunch, you may decide to go a restaurant with tk2500 for having your lunch because you are a famous athlete, banker or politician. What influences this decision is the respect you will get from society because of that house. 3.1.4 Environmental Influences
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The environment you live in determines what products or service you want buy on a daily basis. If you live in a family where everyone is very busy in their own work then you may find it easier to go where you can find out readymade food. If you study in an institution where your friends like to go for testing new recipe in restaurants then might be want to do the similar thing. 3.1.5 Impulse Purchases
When you go to a restaurant, in most cases, you have an idea of what you are going to eat. Most people actually boil down what they will take so that they do not spend a lot of time thinking while on the chair of the restaurant or end up overspending. However, human nature is such that consumers are prone to making impulse decisions to take things they had not planned for. You may see a lucrative recipe at the menu and decide to buy it, not because you had planned to but because the item is new and you want to test it.
3.2 Influence of Culture Culture is the complete picture of a society. Culture consists of sum total of learned customs, beliefs and values which demonstrate the consumption behavior of members of a particular society. Culture has a great impact on the consumption pattern of customers of a society. For example Bangladesh is a Muslim country. Eating pork is prohibited in Islam. As a result hamburger is not available in the restaurants of our country. 3.2.1 Culture is learned: Culture is generally learned it is not inherited. A human being born in a society and gradually the culture of the society influences the human being. There are three kinds of learning
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Formal learning
Informal learning Institutional learning
In case of consumer behavior towards eating fast food we can see the impact of informal learning. Informal learning is something which a consumer gets to know from following someone. For example we interviewed a girl named Tasnia. Tasnia’s brother loves to eat Grill items. As a result he used to bring Grill items in home and have it with family. Generally Tasnia has started to love Grill. It is an example of informal learning. Tasnia is learning to eat Pizza from her big brother in that case. 3.2.2 Ritual Ritual is a kind of symbolic activity. Rituals often involve product artifact. While observing the consumer attitudes we can find the attempt of rituals also. For example Consumers love to enjoy expensive fast food on some special occasions like birthday celebration, parents day etc. So while opening a new restaurant marketers should bear that in mind. 3.2.3 The Measurement of Culture In case of observing the consumer behavior towards eating fast food it is better to use content analysis rather that field observation or participant observation. Content analysis gives a clear picture of culture of a society. While doing research through content analyses we find out that people of Bangladesh is more family oriented and love to eat fast food in a family atmosphere. So it is better to use family atmosphere in a restaurant to attract customers.
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3.2.4 Subculture Subculture is a group of people who share common characteristic that distinguish them from the follower of common culture. Subculture has a great impact on the consumption pattern of fast food of consumers. For example people who reside in the Dhaka city used to like food which is less spicy. So fast food restaurant of Dhaka city offer food which is less spicy. But in the country side village people love to eat oily and spicy food. So if a fast food restaurant does business in village it will provide more spicy and oily food.
3.3 Consumer Motivation Motivation is a driving force which forces a consumer to take a particular decision. Motivation consists of a driving force which results from a state of tension as the result of an unsatisfied need. Consumer motivation can be divided into two types.
Positive motivation Negative motivation 3.3.1 Positive Motivation A driving force which lead consumer to capture some object or situation. For example a university named Jihad loves to eat fast food. So whenever he goes to “Vooter adda”. He usually takes fast food. So, to go “Vooter adda” acting as a positive motivation for Jihad. 3.3.1.2 Negative Motivation A driving forces which forces consumer to go away from some object or situation. For example Ashik loves to eat Grill of “Vooter adda”. But because of obesity doctor’s advice Asik’s not to eat Grill. So in spite of loving Grill Ashik does not go to “Vooter adda”. Doctor’s advice acts as a negative motivation towards burger for Ashik In the scenario. 14
3.3.2 The selection of fast food items: Consumer’s motivation towards fast food items based on various factors. Those are described below. 3.3.2.1 Personal Experience Consumers usually take their past experience on account while making purchase decision regarding fast food. For example a consumer had a bitter experience regarding the crispy chicken of “Vooter adda”. He will not go for it again because of past experience. 3.3.2.2 Physical Capacity Physical capacity is also a vital factor while selecting a fast food item by a consumer. For example it is not possible for a high blood pressure patient to have salty popcorn. 3.3.2.3 Prevailing Cultural norms Cultural beliefs, values are also important factors to be considered while selecting a food item. For example it is not possible for a Muslim to have a hamburger as a dinner. As eating pork is not permitted in Muslim culture. Besides there are also two motives which influence consumer attitude towards fast food items. 3.3.3 Rational Consumers used to take logical decision. Consumer takes the ultimate decision of having a fast food after considering all the factors such as price, quantity, quality and environment. For example a consumer takes the decision of buying chicken of “Vooter adda” instead of KFC. After considering that “Vooter adda” is offering same quality compared to KFC at a reasonable price. 3.3.4 Emotional
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Consumers take the decision based on their personal or subjective criteria. For example I will go to enjoy the cookies of “Vooter adda” in spite of knowing that Swiss is better than ”Vooter adda”. I will go there because of my personal liking towards “Vooter adda”. This is an example of emotional motive. 3.4 Consumer Influence of innovation If a restaurant which is opening new business in an area can assume the customers reaction regarding their food items they can reduce the uncertainty about selling their food items. Market researchers have identified five features that seem to influence customers’ acceptance of a newly open restaurant. 3.4.1
Relative Advantage
It indicates the degree to which potential customers assume newly open restaurant or their food items superior compare to existing ones. For example If Pepsi opens a new restaurant offering pastry they will have relative advantage over their existing competitors because of their brand image and loyal customers. 3.4.2 Compatibility It is the measurement of the degree to which consumers believe that a newly open restaurant or their food items is consistent with the present needs, values, and beliefs of the consumers. For example If the potential consumers of “ Vooter Adda “ presume that the food items such as Nan, cookies , salad offer by the “Vooter Adda” is like the traditional taste and it tastes better than the existing one then they will go for this restaurant.
3.4.3 Complexity The degree to which the taste of the food items offered by the restaurant is easily comprehends by the customers. For example if “Vooter Adda” offers Mexican salad the taste of which is not easily understood by their customers then the food item will not be a successful one. 16
3.4.4 Trial –ability It refers to the degree to which a new food item can be tested by consumers on a limited basis. The greater the trial ability of a new food item betters the opportunity of consumers to evaluate the food item. For example “Vooter Adda” can give a trail to test their food to the consumers. After evaluating trail foods consumers can have a positive idea about their food items and become the regular consumer of the restaurant.
3.4.5 Observe ability The degree to which a new food item benefit can be observed or described to the customers. For example “Vooter Adda” can describe the people that their green Salad is healthy for the health. To convince people regarding that they can take recommendation from a doctor that their green Salad is good for health. If consumers are convinced they will have a positive attitude regarding the food items of “Vooter Adda”.
Resistance to Innovation If the customers have a lot of options and more information than it can cause a resistance to innovation. If customers has less time, more information about the established restaurants then they will not try the new one. Moreover the complexity regarding the quality, image of the new restaurant it can influence their decision regarding the newly open restaurants.
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3.5Consumer Decision Making Process There are three levels in consumer decision making process. Those are Extensive Problem solving Limited Problem solving Reutilized Response Behavior
3.5.1. Extensive Problem Solving In that case while going to newly open restaurant or trying a new food consumer’s search huge amount of information. Consumers establish a set of criteria for evaluation. Consumer makes hard effort while making decision. For example Rony will go to “Vooter adda” for having Sauté & Salad. Before having Sauté & Salad Rony collects all relevant information every type of Sauté & Salad after that he makes the ultimate decision of having cheese Sauté & Salad. It is an example
of extensive problem solving. 3.5.2. Limited Problem Solving Consumers set some basic criteria for taking any decision regarding testing any food in a newly open restaurant. Consumers might establish some criteria such as quality, price, brand name etc. to make a decision. For example I take a decision to have Cold & Hot soups. Based on criteria such as quality, price and brand name I have selected Baily star, Vooter adda, Bella Italia in my consideration. 3.5.3 Reutilized Decision Consumers generally review the subject which they are already informed. They search for small amount of information it is particularly easy to make decision. For example consumers know about the brand such as KFC or BFC. They will just search for which brand has the quickest service. 18
A Simplified Model of Consumer Buying Decision:-
Consumer buying decision can be divided into three unique but interdependent stages. Those are input stage, process stage and the output stage. Those stages are described below with an example of a boy named Robi. 3.5.4 Input Stage In that stage consumers find out the need of a particular product. Say a boy named Robi find out his need for having fast food. In that stage Robi can collect information from two sources 19
3.5.5Restaurant Marketing Effort Robi can gather information from the marketing effort of the firm. He can know the brand name, he can see the advertisement or he can know the place where the food is sold. For example Robi knows “Vooter adda” it’s a newly open restaurant offering different type of testy foods. He sees the advertising of “Vooter adda” in newspaper. He decides to go to Taltola which is next to his home. 3.5.6 Sociological Influence On the contrary to marketing effort Robi can get to know about a product from an outside source. He can take information from his family, friends or informal sources such as opinion leader. For example Robi does not know about “Vooter adda” he came to know about this restaurant from one of his friend. Robi decides to try the spicy chicken of “Vooter adda”. Society can also affect the decision of purchase or can be a source of information. In that stage commutative effect of each firm’s marketing effort, the influence of family, friends or society exists norms those entire act as an input to influence what consumers purchase. 3.5.7 Process Stage This stage focuses basically how a consumer ultimately makes decision. The psychological factors such as motivation, perception, learning, attitudes have an impact on how the significance of external inputs from the input stage influence a consumer. In that stage consumers identify the need which can be matched with his psychological factors. Then Consumers look for pre -purchase information. After that consumers evaluate all the alternatives. After evaluating all the alternatives consumers make the ultimate decision. For example Robi after knowing from his friend regarding the spicy chicken of ““Vooter adda”, find out that the food item goes with his personality. After that before buying he searches information regarding the price, quality and health safety of the food. Then Robi evaluates all the alternatives such as FFC crispy chicken, Hazi chicken. After evaluation he makes mind to buy the food item.
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3.5.8 Output Stage The output stage consists of ultimate purchasing of the food item and behavior through which evaluate the worth of purchase. Purchase behavior can be divided into two sectors 3.5.9Trail A restaurant is offering free trail of their Sweet sauces. A consumer will test it. For example “Vooter adda” is offering free trail of their Sweet sauces in Dhaka. A consumer name Robi tries it. Trail purchase will help to explore the product. After trying the sandwich Robi finds out that it tastes really good. 3.5.10. Repeat Purchase It indicates the adaption of a particular product. For example Robi tries the French fry of”Vooter adda” it really satisfied him. So as a result he will have the taste of this item again and again. 3.5.11Post Purchase Evaluation It basically consists of views after using the product or having the food item. There can be three possible outcome of post purchase evaluation. Actual performance matches the expected one leading to a neutralfeeling. For example Robi expected “Vooter adda” chicken to be spicy and tasty it matches his expectation. Actual performance exceeds the expected one leading to a happy feeling. For example Robi finds the test of “Vooter adda” s chicken more than his expectation. So he will be happy and will like to have the food again. Actual performance is below the expectation which results into dissatisfaction. For example Robi finds the taste of “Vooter adda” chicken not as good as he heard. As a result he got disappointed and he decided not to test their food again. Post purchase evaluation is important to make consumers feeling that his decision was a wise one. Moreover it is important to remove the cognitive dissonance of the consumer. 21
4. Recommendations Today’s business world is very much competitive. So to be successful in this world a newly open restaurant has to face their challenges properly. They have to make sure that their business is running on the right track. To do so they have to overcome their lacking. After doing this research we find out some limitations of the newly open restaurant so we are recommending some ways to be a leader in their business. 4.1 The restaurant will have to decide their target market. Though it is usual for a restaurant to offer food to all people but especially they have to focus their attention to the young people who are their main customers. 4.2 The restaurant should go for hybrid segmentation such as demo-psychographic to reach more efficiently to their consumers. 4.3 As “Vooter Adda “is a new restaurant their brand image is poor so they have to create their image by spreading positive word of mouth regarding their food. 4.4 Food items are not all about a restaurant besides the food items they should also confirm the world class service to their consumers. 4.5 Consumers need a friendly atmosphere in the restaurant. So the restaurant should ensure that customers feel like home in the restaurant. 4.6 Menu is an important tool to attract the attention of consumers. The layout of the menu should be good looking. They should avoid the amateur looking menu designs, such as clip art or photocopied handwriting. 4.7 Pricing of the menu is important the restaurant should confirm that consumers find their pricing convenient. 4.8 Hiring the right staff is crucial to any new restaurant. Good food loses much of its appeal if it accompanied by bad service. Knowing the basic employee roles of the back of the house and the front of the house will help you select the best candidate for the job. Experience counts for important positions, such as head cook, dining room manager and bartender.
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APPENDIX – I INTERVIEW SCHEDULE “CONSUMER BEHAVOUR TOWARDS NEWLY OPEN RETAURANT PRODUCTS” QUESTIONNAIRE FOR CONSUMERS (The Data will be used for research purpose only) I. General Information 1. Name of the respondent: 2. Address: 3. Age: 4. Sex 5. Education: Illiterate/Primary/High/PUC/Degree/PG 6. Occupation: 7. City: 8. Name of the shop: 9. Monthly income (US dollar): 10. Food habit: Vegetarians/Non vegetarians 11. Type of family: Joint/Nuclear 12. Family:
FAMILY MEMBERS Adult males Adult females Children Total
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NAME
13. Monthly expenditure on Fast foods
Restaurant Food products
Expenditure (Amount in US dollar)
Vegetable – Sauté & Salad Grill items– Meat, chicken with “Kabab” Soups & Sauces – Cold & Hot soups, Sweet sauces Snacks – Salty& Crunchy (popcorn), snacks bar. Dessert & Baking – Cakes, Breads, cookies.
II. Specific Information 1. Do you like “Vooter adda” foods? Yes/No. 2.
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What are the reasons for eating “Vooter adda” food?
Reasons
Vegetable – Sauté & Salad
Grill items– Meat, chicken with “Kabab”
Soups & Sauces – Cold & Hot soups, Sweet sauces
Snacks – Salty& Crunchy (popcorn), snacks bar.
Dessert & Baking – Cakes, Breads, cookies.
Snacks – Salty& Crunchy (popcorn), snacks bar
Dessert & Baking – Cakes, Breads, cookies.
Ready available Taste Liked by the family members creams Influence of friends or relatives Easily available restaurants Convenient to use for snacks Satisfaction Save time of preparation Any other 3. What are the reasons for not eating “Vooter adda” food?
Reasons
Lack of awareness of products available in the market Dislike the product High price Low quality Not available in the shops Health conscious Any other
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Vegetable – Sauté & Salad
Grill items– Meat, chicken with “Kabab”
Soups & Sauces – Cold & Hot soups, Sweet sauces
4. Are you aware of the following items? Items Vegetable Sauté Salad Grill items Meat Chicken Kabab(shik, shaa-hiii) Soups & Sauces Cold Hot soups Sweet sauces Snacks & Crunchy (popcorn) Salty snacks bar Dessert & Baking Cakes Breads Cookies
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Yes
NO
5. Source of information for item awareness Source
Vegetable – Sauté & Salad
Grill items– Soups & Meat, chicken Sauces – Cold with “Kabab” & Hot soups, Sweet sauces
Snacks – Salty& Crunchy (popcorn), snacks bar
Dessert & Baking – Cakes, Breads, cookies.
Television Radio Newspapers Magazines Friends/relatives Agents Window display Any other
6. Nature of taking decision Nature of buying decision a. Impulsive buying b. Planned purchase
Vegetable
Grill items
Soups & Sauces
Snacks
Dessert & Baking
7. Influencers of purchase decision Influencers Parents Children Friends Neighbors Restaurant agents Self-decision
27
Vegetable
Grill items
Soups & Sauces
Snacks
Dessert & Baking
8. Which type of Salad do you prefer most? a) Green Salad. b) Mix Salad. c) Chicken Salad d) Bean Salad e) Coleslaw.
9.
Which type of grill item do you prefer most? a) Rotisserie Chicken. b) Beer Can Chicken. c) Brats Grill.
10. Which type of Kabab do you like most? a) Suti Kabab. b) Jali Kabab. c) Boti Kabab.
11. Which type of soup do you like? a) Corn Soup b) Thai Soup c) Mixed Vegetable Soup d) Clear soup 12. Which type of sauce do you prefer? a) Chili sauce. b) Sweet and sour sauce. c) Tomato Sauce with Vinegar. 13. Which type of Cake do you prefer? a) Vanilla Cake. b) Chocolate cake. c) Black Forest. d) Lemon Tart. 14. Which type of cookies do you prefer? a) Cream Cookie. b) Chocolate Cookie. c) Salted Cookies. d) Wafers 28
GRAPHS 1. Monthly expenditure on Fast foods items: 70% 60% 50% Vegatable 40%
Grill item Soups& sauces
30%
Snacks Dessert&Baking
20% 10% 0% $50-$60
$60-$75
$75-$90
$90-$100
2. Do you like “Vooter adda” foods?
100% 90% 80% 70% 60% 50% 40%
YES
30%
NO
20% 10% 0% BELOW 20 YEARS
BETWEEN 2140 YEARS
BETWEEN 4160YEARS
3. What are the reasons for eating “Vooter adda” food?
29
ABOVE 60 YEARS
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Dessert Snacks Soups & sauces
Vegetable
Dessert
Snacks
Soups & sauces
Grill items
Vegetable
Grill items
4. What are the reasons for not eating “Vooter adda” food? 30% 25% Lack of awerness 20%
Dislike the product High price
15%
Low quality Not available
10%
Health conscious any other
5% 0% vegatable
30
Grill item
soups & sauces
snacks
Dessert
5. Source of information for item awareness 50% 45% 40%
Television
35%
Radio
30%
Newspapers
25%
Magazines
20%
Friends/relatives
15%
Agents
10%
Window display Any other
5% 0% Vegatable
Grill item
Soups & sauces
Snacks &salty
Dessert & baking
6. Influencers of purchase decision
Influence of purchase dicision Parents
Children
Friends
Neighbors
5%
Restaurant agents
10%
5%
25%
15% 40%
31
Self-decision
