Fast Food Industry Complete Analysis

M ARKETING M ANAGEMENT PROGRAM: M.COM BATCH : 6

A SSIGNMENT T OPIC . OPIC FAST FOOD INDUSTRY COMPLETE ANALYSIS

S UBMITTED UBMITTED TO:

Mr. Hammad Mushtaq S UBMITTED UBMITTED BY : ADNAN SAJID

100645-011

DATE: DATE: 20-05-201 20-05-20 11

Consumer Involvement

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Table of Contents Executive Summary........................................................................................................1 Introduction Introduction of the industry......................................................................................... ...2


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Introduction of the organization....................................................................................3 Introduction of the major competitors...........................................................................4 Literature review on relevant issue................................................................................5 Problem Statement..........................................................................................................6 Research Question..........................................................................................................7 Research Methodology....................................................................................................8 Sampling Plan.................................................................................................................9 Time Schedule.................................................................................................................10 Cost Schedule..................................................................................................................11 Data Analysis...................................................................................................................12 Findings...........................................................................................................................13 Recommendation.............................................................................................................14 References.......................................................................................................................15


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Executive Summary This Proposal explains the Consumer Involvement in purchasing of Fast Food products which tells that how much people are involved in the Fast Food products they used to make decisions about them, It explains the Problem Statement, Research Question, Research Objectives and Research variables for conducting a research on checking the consumer involvement level in the purchasing of Fast Food products. It explains the Research Methodology which had used for conducting a research that what were the sources and nature of the data. It explains that how we measured the data which was got from the research. Sampling Sampling Plan for the research research also being explained that what our population, population, Sampling Unit, how big our our samp sample le size size was was and and what what meth method od we used used for for cond conduct uctin ing g a surv survey ey e.g. e.g. Questionnaire. Time Schedule will explain that how much time it took to complete our different aspects of rese resear arch ch and and at the the end end the the Cost Cost Sche Schedul dulee that that how much much cost cost incu incurr rred ed on star starti ting ng and completion of the research.


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Introduction to the Industry (Fast Food) In this fast moving life with busy schedules and almost not time to spare every person of this world wants fast transportation, fast communication and fast services like wise they want some quick method in preparation of their food. The think that fulfill their demand is known as fast food. The concept of fast food is generally associated with urban development. development. The food that is prepared and served with in very short period of time is known as fast food or any meal with low preparation preparation of time can be considered considered as fast food. Typically Typically the term fast fast food refers to food sold in a restaurant or store with low quality preparation and served to the customer in a packaged form for takeout or take away. The most evident advantage of fast food is that it saves time. In today's fast-paced life, there is nothing better than getting a ready meal. Besides time, cost saving gives fast food an edge over the meal prepared in the kitchen. If one lives alone, then it is cheaper to buy a meal at the supermarket instead of cooking it at home. Different type of meals like pizza, sandwich, French fries, fried chicken, shuwarma, hamburgers etc are including in fast food. Carl N. Karcher is one of the fast food Pioneer of Fast Food Industry in the world. In U.S the largest segment of Fast Food is available with over 200,000 restaurants. But since late 2006, the growth becomes slow because of soaring food and energy prices. The concept of fast food not only in other countries but now in Pakistan is very common. This industry now in Pakistan attracts so much people. Almost a person of every age now likes to eat fast fast food. food. This industry industry works in Pakist Pakistan an both in local level level and internat internation ional al level. level. At international level some international fast food franchises play a major role behind the success of this industry in Pakistan. In this regard the contribution of International fast food franchises like KFC, MacDonald’s, and Pizza Hut being consider very important. At local level the fast food restaurants like Fri chicks, AFC etc give head to head competition these international fast food franchises in Pakistan.


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Introduction of the organization under study (KFC) KFC that is also known as as “Kentucky Fried Chicken” is a brand of Yum! Incorporation. KFC founded by Colonel Harland Sanders in 1952, is widely known as the world famous fast food restaurant around the world. Colonel Harland Sanders was born at 9 September 1890 in Louisville, Kentucky, U.S. He study hard on fried chicken technologies, finally invented the eleven spices and unique cooking techno technolog logies ies synth syntheti eticc secret secret recipe recipe succes successfu sfull lly y and was favore favored d by the custom customers ers.. The business of the restaurant boom gradually and the secret recipe was continue to use until u ntil now. In 1930; he started cooking chicken in a service station named sander’s court Corbin. In 1936 Kentucky Kentucky started “Sanders “Sanders Court & Cafe”. It was a dinning cafe and the governor governor of that time Mr. Ruby Laffoon congratulates Sanders on his contribution to the state’s cuisine. Then sanders expan expand d his his rest restaur aurant ant seats seats up to 142. 142. In 1952 1952 he move moved d to USA USA and opened opened the the firs firstt “Kentucky Fried Chicken” outlet in 1952. Because of its unique and delicious flavor KFC gain the success with in years. In very short period of time KFC gain international success and recognition. Then the outlets of KFC were opened not only in USA but also in other countries of the world. Now KFC has been the world biggest Fried chicken fast-food chain enterprise, which has own more than 11,000 restaurants. These restaurants are over more than 80 countries. KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts. According to current scenario they offer Zinger burger, Col. Fillet burger, Macho’s burger, Col. Chicken burger, Cheese, Nuggets, Hot wings, Fries, Corn on the cob, Arabian rice, Dinner rolls, Hot and crispy soup, Soft Drink, Mineral water, Espresso, Cappuccino, Tea etc. Like wise different countries countries KFC entered entered in Pakistan in 1st January January 1997. When they opened their their first first outlet outlet in Gulshan-e-Iqbal , Kara Karach chii and and with with in no time time KFC KFC gain gained ed fabu fabulo lous us popularity among the people of Pakistan. With in two or three years it became the market leader and one of the famous fast food chains in Pakistan. According to the current situation KFC is branched out in 17 cities of Pakistan with more than 62 outlets nation wide.

Introduction of the Major Competitors in the Industry Consumer Involvement

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AFC (Al Najam Fried Chicken) AFC is the fast food chain in Pakistan, which was started in mid 90’s in Samanabad Lahore when fast food in Pakistan was emerging and becomes famous in the People. It is local fast food chain of Pakistan. Now AFC has thirteen branches nationwide like Mall Road, Railway Station, Abbot Road, Allama Iqbal Town, Fortress and Township in Lahore and it is also operating in the cities like Faisalabad, Gujrat, Rawalpindi, Abbotabad, Peshawar, Murree and Sargodha. The Head office of AFC is situated on 95-Main Marked Saman-Abad Lahore which is also the first branch AFC. AFC claimed that they provide hygienic and quality products and used frozen chicken which is safe, healthy and hygienic for the customers and offered fewer prices as compared to other Fast Food Chains like McDonald’s, KFC and Pizza Hut etc so that middle class people can also afford fast food which was not possible for the people and their goal and aim is “To make quality fast food available to all those people who liked the fast food but couldn’t afford.”

McDonalds McDonald’s restaurant is the largest fast food chain of the world which provides different types of product like hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, milkshakes, and desserts and salads, wraps and fruit for the health conscious people. McDonalds Corporation started in 1940 by the two brothers Dick and Mac McDonald in San Bernardino, Bernardino, California, California, and then Ray Korc opened the first McDonald’s restaurant in 1955 in the United States of America. It is the ninth most valuable brand in the world. Now, Now, McDona McDonalds lds is the leadin leading g global global food food servic servicee retail retailer er with with more more than than 30,000 30,000 local local restaurants, employing more than 1.5 million people and serving 54 million customers in more than 120 countries each day. In Pakistan it is also being operated and proved to be famous fast food brand in Pakistan. It was opened in Pakistan in 1998 at Lahore and now working in seven major cities of Pakistan and has 20 branches all over Pakistan and also planning to move forward in other cities as well by using aggressive plan to expand. And they are giving employment to about 3000 people peo ple in Pakistan with the investment of 30 million.

Pizza Hut Consumer Involvement

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Pizza Hut is the American fast food restaurant chain, which offer different types of products especially Pizza of different styles and in four different sizes, personal (individual serving), small, medium and large. The varieties and styles of Pizza they are offering are Meat Lovers, Pepper Pepperoni oni Lovers Lovers,, Cheese Cheese Lovers Lovers,, Veggie Veggie Lovers Lovers,, Double Double Cheese Cheesebur burger ger,, Suprem Supreme, e, Super Super Supreme and they also offered other side dishes as well like pasta, pasta, buffalo wings, wings, breadsticks, and garlic bread. bread. Pizza Hut was founded in 1958 by bothers, Dan and Frank Carney and the first franchise was opened in 1959 in Topeka, Kansas and now it is working in approximately 100 countries and approximately 34000 restaurants all over the world. In Pakistan Pizza Hut is also operating and its operations has been expanded in 10 cities of Pakistan including, Lahore, Islamabad, Sialkot, Rawalpindi, Rawalpindi, Karachi, Hyderabad, Hyderabad, Multan, Peshawar, Faislabad Faislabad and Muree and the numbers of outlets in Pakistan are 37 which are expanded in all these cities.

Subway Subway is the international fast food chain restaurant, which are widely distributed in the world and proved to be one of the largest fast food chain. Subway started by Fred DeLuca in 1965 in North America and which was owned and operated by Doctor’s Associations, Inc (DAI). The products, which are sold in Subway, are submarine, sandwiches and salads and Subway started its first association outside North America in 1984 when Subway was started in Bahrain. Now Subway has 32271 franchises and which it is being operated in 91 different countries. Subway also ranked No.1 by Entrepreneur Magazine twice. Subway is also operated in Pakistan as well like other countries and the network of Subway in Pakistan is spread in four cities of Pakistan including Karachi, Lahore, Islamabad and Sialkot. Also there are many franchises of Subway, which are under construction in Pakistan. Subway is known to be a healthy food server, which is targeting the health conscious people.


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Literature Review Consumer Involvement in financial services: an empirical test of two measures By Abdullah H. Aldlaigan Manchester Business School, University of Manchester, Manchester, UK Francis A. Buttle Littlewoods Professor of Customer Relationship Management, Manchester Business School, University of Manchester, Manchester, UK Arti Articl clee expl explai ains ns that that firs firstl tly y cons consum umer er invol involve veme ment nt is bein being g used used in the the fiel field d of soci social al psychology and believed to be the relation between ego and object. And the audience response to persuasive message is based on two things, one is the initial attitude towards the certain topic and other is the involvement level. There are three types of involvement situational, enduring and response involvement and these are introduced by Houston and Rothschild, so when these types are being conceptualized they become stimulus, organism and response. This article also explains the definition of involvement by both of them which is appropriate for the research of consumer involvement in financial services which explains that involvement is an unobservable state of motivation, arousal and interest. This article explains about the consumer involvement level in the different financial services. And consumer involvement is being checked through two measures PII and CPI. PPI treats involvement as a unidimensional construct whereas CPI treats involvement as multidimensional construct and both focus on individual-object involvement. PPI are related to three dimensions Personal, Physical and Situational and whereas CPI measure five dimensions like Interest, Pleasure, Sign Value, Importance risk and Risk Probability. This article explain that firstly six financial services were selected for checking the consumer involvement but then pretesting was performed to check whether the questions which were being asked understandable for the respondents or not. After pretesting one thing became clear that respondents had some problem in giving response to some of the services because some services were used in the one category like two services in one category so after understanding the the prob proble lem m then then six six serv servic ices es were were conve convert rted ed into into eigh eightt serv servic ices es and and then then cons consum umer er involv involveme ement nt were were checked checked on these these eight eight servic services es and services services were, a cheque cheque book, book, an overdraft facility, switch services, a cash machine, savings account, investment services and personal loan. This article explains that in research firstly questionnaire asked about twenty items related to financial services of PPI and measures those on seven-point semantic differential scale and then fifteen statements were asked on the format of five points Likert scale of CPI. In research sample size of 120 people were selected and convenience sampling was used. The response rate


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was 51 percent. The findings of the research showed that both the measures had different involvement level for eight financial services which are being used. The PPI measure indicated that Cash machine machine used, mortgage mortgage and investment are high involvement involvement services whereas CPI measur measuree indica indicated ted that that mortga mortgage, ge, invest investmen mentt and saving savingss account account are high high involv involveme ement nt services. In PPI measure savings account, personal loan, a cheque books, overdraft facility and switch services are the middle range involvement financial services whereas in CPI measure personal loans, overdraft facilities, switch card, cash machine and cheque book usage are in the middle range of involvement. And between both of these measures PPI proved to be more reliable as compared to CPI. In this article findings of the research were recognized that Involvement level for different financial services were not equal, the scales which were used PPI and CPI focused on the different dimensions of involvement and at last customized instrument should be develop to measur measuree the involv involveme ement nt and finall finally y in order order to underst understand and the link link betwee between n consume consumer r involvement and customer behavior in financial services more research is needed. .

An Experimental Study on the Relationship between Consumer Involvement and Advertising Effectiveness By Shwu-Ing Wu, Department of Business Administration, National Chin-Yi Institute of Technology, Taiwan This This articl articlee explain explain that that the relati relationsh onship ip betwee between n consum consumer er involv involveme ement nt and Adverti Advertisin sing g Effectiveness. Consumer Involvement in product category is proved to be a very important variable in the designing of advertising adv ertising strategy and to understand whether consumers have high or low involvement in the product category; there are many scales which are designed to measure the consumer involvement. But in this research to check the relationship between the consumer involvement and adverting effectiveness, PII (Personal Involvement Inventory) was used used due to its intern internal al reliab reliabil ility ity,, reliab reliabili ility ty over time, time, content content validi validity ty,, criter criterion ion-re -relat lated ed validity, and construct validity and also consumers were segmented in various clusters. Another important thing which is explained it this article the hierarchy which consumer complete before maki making ng a decis decisio ion n whic which h tell tellss that that how cons consum umer erss used used adve advert rtis isin ing g in thei theirr proce process ss of purchasing. This hierarchy includes unawareness, Awareness, Knowledge, Liking, Preference, Conviction and Purchase. In other words consumer first think, feel and do and it also tells that whether there is a difference between various consumer involvement clusters in the advertising effect hierarchy. The factors that influence the level of consumer involvement in product, advertising or purchase and the factors are the characteristics of the individual shoppers, physical characteristics of the stimulus and purchasing situations. This study also explains the involvement construct, which is base on the personal and product characteristics. So this article explains the checking of whether


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there there is a positi positive ve relati relation on betwee between n the adverti advertisin sing g effect effect hierar hierarchy chy and involv involveme ement nt and secondl secondly y it explain explainss whether whether there there is posit positive ive relati relation on between between advert advertisi ising ng content content and involvement. This This arti articl clee expl explai ains ns that that perc percep epti tion on of the the adver adverti tisi sing ng conte content nt incl includi uding ng plot plot,, slog slogan an,, representative person, product introduction, expression, map and print of the customers are gathers through focus group and also questionnaire of eight parts including demographic, AIO (Actives, Interests, Opinions), advertising content importance, advertising effect hierarchy and consumer consumer degree of involvement involvement in a high involvement involvement product, product, automobile, automobile, low involvement involvement product and shampoo were used and sample size of 500 people were selected to ask about these dimens dimension ionss and five points points Likert Likert scale scale was used for AIO under PII measure measure and random random sampling method was used for this purpose. The response rate was 97.8 percent. The article explains the findings that the result showed that segment of the market can be effected by the degree of consumer involvement and the results explains that there is a positive relationship between the degree of consumer involvement and advertising effect hierarchy and also it explains that there is a positive relationship between the degree of consumer involvement and advertising effect if degree of consumer involvement will high the advertising effect will also high. So all these findings prove that for the advertising strategy the degree of consumer involvement is the major indication.


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Introduction and background of the topic Consumer Involvement in product is very essential for the company because it will tell them that how much they show concern while making decision about the product. To check the behavior of the consumers towards certain product, it is essential to know to that what their involvement level is whether it is physical or psychological. The involvement level can be checked through different factors like price, q uantity etc. By checking the different factors, it becomes apparent to understand that which is the single or many factors which are influencing the buying behavior of the consumers and whether their involvement level varies or not in different situations. And also it will explain that what are the interests, need and values of the consumers which attracts consumer towards a certain product. So one thing become apparent that it is very essential to increase the effectiveness of the product and by seeing the responses will help in build a close relationship with the consumers. Involvement in products affects the purchase decision or an essential part of purchase decision. Purchasing decision regarding certain product will be more sensitive and person will show much interest in purchasing certain product if the involvement level is high and person will show less interest and also purchase decision will not be sensitive for the consumer if their involvement level is low in that product. p roduct. Researchers classified Involvement in three parts: Personal : This includes inherent interest, values or needs of a person that motivate that person

towards any object. Physical : This includes a certain characteristic of object which brings difference or increase in

the interest. Situational : This includes something, which bring temporarily increase interest or relevance in

any of the object based upon the situation. These are the three factors that influence or change the involvement level of the consumer in the any of the product or any an y of the advertisement.


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Problem Statement What is the consumer involvement involvement level in purchasing of Fast Food products particularly particularly of KFC?

It will explain that how much consumer involves in the purchasing of Fast Food products that whether the involvement level is high, medium or low.

Research Question What are the factors that influence the consumer involvement level in Fast Food products particularly in KFC products?

Research Objectives •

To know about the demographics of the people

•

To know about the frequency of purchasing the Fast Food

•

To know about the factors which are affecting consumer involvement

Research Variables To know about the demographics of the people • • • •

Age Income Gender Area

To know about the frequency of purchasing the Fast Food • • • • • •

Daily Twice a week Twice a month Once a week Once a month Occasionally

To know about the factors which are affecting consumer involvement • • • •

Price Quantity Hygiene Factor Ingredients


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Research Methodology D ATA AND D ATA C OLLECTION OLLECTION •

We used primary and secondary data resources for checking the Consumer Involvement level in purchasing the Fast Food. We draw the sample of 25 and collect the responses of people who were involved to eat fast food. For this purpose we build a questionnaire and collect their responses.

•

Our basic purpose was to check the consumer involvement level of fast food industry in Pakistan and focus on four factors like price, qu antity, hygiene and ingredients.

•

We also read some articles like (consumer involvement in financial services) to better understand the concept of consumer involvement. It gives us so much help in data collection. It helps us in making objectives, variables and the factors which is under research to measure the overall consumer involvement level in fast food industry in Pakistan.

M EASUREMENT M ETHODS •

There are several measurement tools that we have use in this project. Our first and most impor importa tant nt tool tool in our our meas measur urem ement ent meth method odss is our our Ques Questi tion onnai naire re.. We buil builtt our questionnaire by using 5-point likert scale. Then we put all the responses of our selective sample in SPSS.

•

Through SPSS we take means, sum, quartiles. And for check the significance level of our factors we apply t-test, regression and correlation, factor analysis and corn Bach alpha to check the overall significance of our sample.

•

We also use Microsoft Word and Excel for report righting purpose and use excel for plotting some table and in making of Gantt chart. We use all these software so we can represent our analysis through graphs and quantitative data like table and Gantt chart etc. Gantt Chart completed explains when our project started and ended.

Sampling Plan Population

All people who eat fast food Sampling Unit

Our sampling unit included Teenagers, Male and Female those who were involve eating Fast Food Products particularly of KFC.


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Sampling size

We draw a sample of 25 people who used to eat Fast Food products particularly of KFC. Sampling Method

We used Non Probability Sampling and in that w e used Convenience Sampling.

Time Schedule No 1 2 3 4 5 6 7 8 9 10 11 12

Tasks

13

14

January, 2010 15 16 17 18

19

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Preliminary In Investigation Building of Questionnaire Survey Original Proposal Introduction of the industry Introduction of of Or Organization (K (KFC) Introduction of majo ajor competitors Literature Review Data Analysis Report Writing Findings & Recommend endations Project Submission

Task 1 & 2 We complete first two tasks on a same day at 13 January. First task was to collect the required or supportive data, which is also called preliminary investigation, and the second task was building the questionnaire. Task 3 & 4 After completing first two tasks third task was, to conduct a survey that we done on 14 th of January and completed on the same day along with the original proposal. Task Task 5, 6 & 7 In the next two days 15th and 16th of January we have done the introduction to the industry, introduction to the organization and introduction to the competitors. Task 8 After completing these tasks we have done literature review on 17th of January and completed it on the same day. Task 9 & 10


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After literature review the main task was data analysis and report writing that was done on 18th of January. Task 11 On 19the of January we have completed our findings and recommendations. Task 12 We submit our project on 20th of January.

Cost Schedule


Particulars

Cost (Rs)

Photocopy

50

Printing

200

Traveling

400

Refreshment

200

Electricity

200

Telephone Expense

300

Total Cost

1350

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Involvement Level Valid 25 N Missing 0 Mean 74.1167 25 67.5417 Percentiles 50 75.75 75 80.375

Data Analysis

Involvement Level


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Below 67.54 will be the low Involvement level of the consumers in the Fast Food.

•

Between 67.55 to 80.38 will be the middle Involvement level of the consumers in the Fast Food.

•

And above 80.38 will be the high Involvement level of the consumers in the Fast Food.

Involvement Level

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

1

6

24

24

24

2

12

48

48

72

3

7

28

28

100

Total

25

100

100

1.

Shows Low Level of Involvement

2.

Shows Middle Level of Involvement

3.

Shows High Level of Involvement

There was a sample of 25 and all 25 responded to the questions asked to them. When we see the involvement level of the people in the Fast Food. There were 6 people those who have low involvement level in the Fast Food and they are the 24% of the sample size. There were 12 people people those who have middle level Involvement Involvement Level and they are 48% of the sample sample which was of 25 people and at last there were 7 people who have High Involvement Level in the Fast Food and it is the 28% percent of the sample size. So by seeing all these level of Involvement we can say that most of the people have middle Involvement level in the Fast Food whenever they purchased it. So Fast Food is not a high or low involvement product. It lies between middle of them. Also when we see the Mean of Involvement level of Consumer it also lies between the middle range of the Involvement Level. So overall Involvement is middle level


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Demographics Analysis to Check the Involvement Level Gender Gender Involvement Level Involvement Level

Gender

Total

1

2

3

Male

4

8

6

18

Female

2

4

1

7

Total

6

12

7

25

1. Shows Low Involvement Level 2. Shows Middle Involvement Level 3. Shows High Involvement Level Ther Theree were were 25 resp respon onde dent ntss about about whom whom we chec check k the the invol involvem vement ent leve level. l. Among Among all all respondents 18 were males and 7 were females. In male four have low involvement in the Fast Food, eight males have middle involvement level and at last 6 male have high involvement level in the Fast Food. When we see female side there are 2 females who have low involvement level, four females have middle involvement level and at last only one has high involvement level. When we see the overall result it shows that most of the males and females have middle level involvement level in Fast Food.

Age Age * Involvement Level

Age

Involvement Level

Total

1

2

3

Up to 20 years

3

4

0

7

21-25 years

3

2

6

11

26-30 years

0

4

1

5

31-35 years

0

1

0

1

36-40 years Total

0 6

1 12

0 7

1 25

1. Shows Low Involvement Level in Price 2. Shows Middle Involvement Level in Price 3. Shows High Involvement Level in Price


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When we see the age of the respondents, there were 7 people up to the age of 20, 11 people had the age between between 21-25 years, years, 5 had the age between 26-30 and 1 respondent each between age of 31-35 years and 36-40 had the age between 26-30 and 1 respondent each between age of 3135 years and 35-40 years.

Up to 20 years When we see the respondents up to the age of 20, there were 3 people who have low involvement level in the Fast Food, four people have middle involvement level and there is no person who has high level of involvement in the age group. So among all the involvement level most of people up to the age of 20 have middle level involvement level. Age from 21 to 25 The respondents from 21 to 25 years are 11 and 3 people have low involvement level in the Fast Food, 2 people have middle involvement level and at last 6 people have high involvement level and when we see the respondents involvement level in Fast Food, most of the people are highly involved in the fast food. Age from 26 to 30 When we see the respondent from the age of 26 to 30, no person has low involvement level, 4 people people have middle involvement involvement level and at last only one person has high involvement involvement in the Fast Food from the age of 26 to 30. And overall result shows that most of the people in age of this range have middle level of involvement. Age from 31 to 35 One respondent respondent were from the age of 31 to 35 and the person has middle level of involvement in the Fast Food. Age from 36 to 40 Again only one respondent was from 36 to 40 years old and he also has middle level of involvement in the Fast Food.

Household Income Household Income * Involvement Level Involvement Level Household Income


Total

20

1

2

3

Up to 10000

1

1

0

2

10001-20000

0

1

0

1

20001-30000

0

1

1

2

30001-40000

0

1

1

2

40001-50000

0

2

2

4

above 50000

5

6

2

13

6

12

6

24

Total

There were 25 people were asked about their income and only didn’t response. 2 people have income up to 10,000, 1 person have income from 10,001 to 20,000, 2 people have income from 20,001 to 30,000, again 2 people have income of 30,001 to 40,000, 4 people have income of 40,001 to 50,000 and there were 13 people who have income more than 50,000. Income Up to 10,000 Two respondents have income up to 10,000 and one has low level of involvement in Fast Food, again one has middle level of Involvement and no one has high level of Involvement in the Fast Food. 10,001 to 20,000 There was only one respondent who has income from 10,001 to 20,000 and he has middle level of Involvement in the Fast Food. 20,001 to 30,000 There were two respondents were from the income of 20,001 to 30,000 and no one has low level of Involvement in the Fast Food, one has middle and one has high level of Involvement in the Fast Food. 30,001 to 40,000 There were two respondents were from the income of 30,001 to 40,000 and no one has low level of Involvement in the Fast Food, one has middle and one has high level of Involvement in the Fast Food. 40,001 to 50,000 There were four respondents from the income of 40,001 to 50,000 and no one has the low level of involvement in the Fast Food, 2 people have middle level of Involvement in the Fast Food and also 2 people have high level of Involvement in the Fast Food.


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Above 50,000 There were 13 respondents whose income is more than 50,000 and 5 people have low level of Involvement in the Fast Food, 6 people have middle level of Involvement and 2 person have high level of Involvement. So most of the people have middle level of Involvement in the Fast Food whose income is above 50,000.

Frequency of Taking Fast Food Frequency of Taking Fast Food * Involvement Level Involvement Level

Frequency of Taking Fast Food

1

2

3

Once a Week

0

1

1

2

Twice a Week

5

5

3

13

Once a Month

1

3

1

5

Twice a Month

0

1

0

1

Occasionally

0

2

2

4

Total

6

12

7

25

Total

There were 25 respondents who tell about their frequency of purchasing the Fast Food. 2 people eat fast food once a week, 13 people eat twice a week, 5 people eat once a month, 1 eats twice a month and 4 people eat Fast Food Occasionally. Once a Week There were two respondents who eat Fast Food once a week and one has middle level of involvement, one has high level of involvement and no one has low level of involvement in the Fast Food. Twice a Week There were 13 respondents who eat Fast Food Twice a Week and 5 people among those respondents have low level of Involvement, 5 people have middle level of Involvement and 3 people have high level of Involvement in the Fast Food.

Once a Month There were 5 respondents who eat Fast Food once a month and 1 person has low level of Involvement in the Fast Food, 3 people have middle level of Involvement and 1 person has high level of month. So most of the people have middle level of Involvement in the Fast Food who eat it once a month.


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Twice a Month

There was only one person who eats Fast Food twice a month and he has middle level of Involvement in the Fast Food. Occasionally Ther Theree were were 4 resp respon onden dents ts who who eat eat Fast Fast Food Food occa occasi siona onall lly y and no one one has has low low level level of Involvement in the Fast Food who eat occasionally, 2 people have middle level of involvement and 2 have high level of involvement in the Fast Food.

Residence Area Residential Area * Involvement Level Involvement Level Residential Area 1 2 3 Model Town 1 1 1

Total 3

Wapda Town

0

0

1

1

Gulberg

3

1

0

4

Mustafa Town

0

2

1

3

Johar Town

1

3

1

5

DHA Askari Ichara Punjab Society

0 1 0 0

3 0 1 1

2 0 0 0

5 1 1 1

GOR

0

0

1

1

Total

6

12

7

25

The respondents from whom we collect are belong to the 10 different places of Lahore, 3 respondents each were from Model Town and Mustafa Town, 1 respondent each from GOR, Punjab Society, Ichara, Askari View and Wapda Town, 4 respondents were from Gulberg and 5 respondents each from DHA and Johar Town.

Model Town There were three respondents respondents from Model Town, one has low involvement involvement level in Fast Food, one has middle involvement level in Fast Food and at last again one has high involvement in Fast Food. So we can say that people p eople of Model town has mix sort of Involvement in Fast Food. Wapda Town


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Only respondents was from Wapda town and he has high Involvement Level in Fast Food Gulberg There were four respondents were from Gulberg and 3 people have low involvement level, one has middle level of Involvement in Fast Food and at last no one has high involvement level in fast Food in Gulberg. So most of the people in Gulberg have low level of Involvement in fast Food. Mustafa Town Three respondents were from Mustafa Town and no one has low level of involvement in Fast Food, 2 people have middle level of involvement and only one person has high level of involvement in the Fast Food. So most of the people in Mustafa Town have middle level of Involvement. Johar Town There were five respondents were from Johar Town and 1 person has low level of involvement in the fast Food, 3 people have middle level of involvement and at last one person has high level of involvement in the Fast Food. So most of the people in Johar Town has middle level of Involvement. DHA There were five respondents respondents were from DHA and no one has low level of involvement involvement in Fast Food in DHA, 3 people have middle level of Involvement in the Fast Food and at last 2 people have high level of Involvement in Fast Food in DHA. So most of the people in DHA have middle level of Involvement. Askari There was only one respondent from Askari View and he has low level of Involvement in the Fast Food. Ichara There was one respondent from Ichara and he has middle level of Involvement in the fast Food.

Punjab Society There was one respondent from the Punjab Society and he also has middle level of Involvement in the Fast Food. GOR


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There was only respondent from GOR as well w ell and he has high level of Involvement in the Fast Food

Factor Analysis Factor Analysis Component

Factors

1

2

Price Involvement

0.617

-0.64

Hygienic In Involvement

0.827

0.227

Quantity Involvement

0.768

-0.237

Ingredients Involvement

0.492

0.791

The Factors which are most important among all the factors are two out of four factors, people who used fast food gives important to Hygienic Factor of the Fast Food that they want Fast Food to be clean enough to eat. The Second most important factor for the consumers is Ingredients of the Fast Food. They show much concerned about the Ingredients of the Fast Food. So the most Important Factors are: 1. Hygi Hygien enic ic Fact Factor or 2. Ingre ngred dients nts

Factor Analysis Factors How much consumer has concerned in Fast Food How much beneficial Fast Food is for the consumer How boring Fast Food is for the consumer To what extent Fast Food is exiting for the consumer How much consumer desire about the Fast Food

Component 1

2

3

4

5

0.349

0.105

0.813

-0.308

0.238

0.834

-0.062

-0.387

-0.056

0.125

0.475

0.408

-0.203

0.61

0.166

0.685

0.441

0.145

0.229

-0.443

0.582

0.612

-0.154

-0.231

-0.283

There are five factors which are most important for the consumer regarding the Fast Food. 1. The first first most important important factor factor for the the consumer consumer is that they they want that Fast Fast Food should should be a Beneficial Food for them or they are much concerned in the Benefits of the Fast Food or it is a beneficial food.


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2. The second second most import important ant for the the consumer consumer is that that they have have a desire for for the Fast Fast Food. Food. 3. The third third most import important ant Factor Factor for the consumer consumer is that they they are concerned concerned about the Fast Food or they have concern in the Fast Food. 4. The boring boring or fascinating fascinating factor factor is the fourth fourth most most important important factor factor for the consumers. consumers. 5. The The last last most most impor importa tant nt facto factorr for for the the cons consum umer erss is that that they they want want fast fast Food Food to be Exciting Factor for them or they are much e xcited about the Fast Food.

Regression Analysis Regression equation Y=α+βX

Hypothesis Ho = β = There is no significant relationship between the dependant and independent H1= β There is a significant relationship between the dependant and independent variable

Age Model Summary Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

0.311

0.097

0.057

8.15004

From the result we find that this model is very weak because R square shows a very small value, which is 0.097, which w hich is 9.7%. So the model we built is very weak.

Coefficients Unstandardized Coefficients

Model

1

B

Std. Error

(Constant)

68.655

3.844

Age

2.576

1.642

Standardize d Coefficients Beta

Sig.

0 0.311

0.13

Ho: β = 0 (There is no significant relationship between the Involvement Level and Age)


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H1: β ≠ 0 (There is a significant relationship between the Involvement Level and Age)

Level of Significance = 0.05 We perform regression analysis on Age and Involvement level of the consumer. We take Age as Independent Variable so it is constant and Involvement Level as Dependent variable. When we see significant value it is 0.130 so it shows that there is no dependency in Age and Involvement level or we can say that both are independent.

Gender Model Summary Model

R

R Square

Adjusted R Square

1

.227a

0.052

0.01

Std. Error of the Estimate 8.35081

The model which we have made is very weak which is clear from the R square value which was very low.


Model

1

B

Std. Error

(Constant)

79.446

5.046

Gender

-4.163

3.72

Standardize d Coefficients Beta

Sig.

0 -0.227

0.275

Ho: β =0 (There is no significant relationship between the Involvement Level and Gender) H1: β ≠ 0 (There is a significant relationship between the Involvement Level and Gender)

Level of Significance = 0.05 We Perform Regression Analysis to check whether Gender and Involvement have some relation or not. We came to know after the analysis that the significance value is 0.275 which is more than the allowable error which was 0.05. So we do not reject H0 and which proved that there is no dependency between Gender and Involvement Level and both are independent.

Household Income


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Model Summary Model 1

R

R Square

Adjusted R Square


.004a

0.000

-0.045

8.39451

The model we built was very weak because its R square was very low which almost 0.


Model

1

Standardized Coefficients

B

Std. Error

(Constant)

73.732

5.379

Household Income

-0.021

1.055

Sig.

Beta 0 -0.004

0.985

Ho: β = 0 (There is no significant relationship between the Involvement Level and Household Income) H1: β is not equal to 0 (There is a significant relationship between the Involvement Level and Household Income)

Level of Significance = 0.05 We perform Regression Analysis to check whether Involvement Level is dependent on the house househo hold ld Inco Income me or not. not. So we take take Hous Househ ehol old d Inco Income me as Inde Indepe pende ndent nt varia variabl blee and Involvement level as Dependent Variable. The findings shows that the significance value is far more than the allowable error which was 0.05 so we will not reject Ho which means that there no depende dependency ncy in househ household old Income Income and Involv Involveme ement nt Level Level or Involv Involveme ement nt level level is not dependent on the Household Income.

Frequency of Purchasing Fast Food Model Summary Model

R

R Square

Adjusted R Square


1

.034a

0.001

-0.042

8.57013

We came to know the model we made was very weak which can be seen from R Square that the value is 0.001, which is very low.


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Model

1

B

Std. Error

(Constant)

73.241

5.568

Frequency of Taking Fast Food

0.238

1.44


Sig.

Beta 0 0.034

0.87

Ho: β = 0 (There is no significant relationship between the Involvement Level and Frequency of Purchasing Fast Food) H1: β is not equal to 0 (There is a significant relationship between the Involvement Level and Frequency of Purchasing Fast Food)

Level of Significance = 0.05 We perform the regression analysis to check whether there relationship between the Frequency to Purchase and Involvement Level. We take Involvement Level as dependent variable and Frequency to Purchase as Independent Variable. The Finding shows that the significance value 0.870 is far high than the allowable error, which was 0.05. So we will not reject Ho and which will prove that there is no relationsh relationship ip between Frequency Frequency to purchase purchase and Involvement Involvement Level and Involvement Level is not dependent on the Frequency of Purchase.

Residential Area Model Summary Model

R

R Square

Adjusted R Square


1

0.204

0.042

0

8.39534

This model is also a weak model that is apparent from the R Square Value, which is very low.


Model

1

B

Std. Error

(Constant)

70.688

3.824

Residential Area

0.726

0.728


Sig.

Beta 0 0.204

0.329

Ho: β = 0 (There is no significant relationship between the Involvement Level and Residential Area)


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H1: β is not equal to 0 (There is a significant relationship between the Involvement Level and Residential Area)

Level of Significance = 0.05 At last we perform regression analysis to check the relationship between Residential Area and Involvement Level. We take Involvement level as Dependent Variable and Residential Area as Independent Variable. From the findings we conclude that the Significance value is more than the allowable allowable error which which was 0.05 so we will not reject Ho and which will prove that there is no significant relationship between Residential Area and Involvement Level and Involvement Level is not dependant on the Residential Area.

Reliability of the Instrument Reliability Statistics Cronbach's Alpha

N of Items

0.878

20

The overall reliability of the instrument Questionnaire that we use for the survey to see the Consumer Involvement Level in the Fast Food is very high which is 87.8 percent. So the instrument we used is reliable enough for the Research.

Findings •

People have middle level of Involvement in the Fast Food.

•

Gender Wise both male and females have middle level of Involvement.

•

Age Age up to 20 year yearss have have midd middle le invo involv lvem emen entt leve level, l, 21 to 25 year yearss have have high high involvement level, 26 to 30 have middle involvement level, 31 to 35 have middle involvement level and 36 to 40 years have middle involvement level.

•

All the income level people have hav e middle level of Involvement.


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•

Hygienic Factor and Ingredients of Fast Food are the most important factors.

•

Othe Otherr fact factor orss whic which h are are most most impo import rtan antt are are bene benefi fit, t, conc concer ern n about about Fast Fast Food, Food, consumer’s desire, Fast Food a fascinating matter and exciting factor of Fast Food.

•

All the demographics age, household income, residential area, gender and frequency of purchase do not have relationship with Involvement Level.

Recommendations •

When we see the overall Involvement Level of Fast Food it shows that people have middle level of Involvement, so it is not bad but company has to take further steps or develop a strategy so that people become highly involved in Fast Food whenever they purchased.

•

When involvement become high in the Fast Food of the consumers than Fast Food Company has to maintain the standard which will justify their involvement in the Fast Food.


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•

As we find that the Hygienic Factor and Ingredients of the Fast Food is important for the consumer, so company should work more on these factor in order meet the expectations of the Consumers regarding the Fast Food.

•

The other factor we analyze analyze and came to know that five Factors are most important important for the Consumers so company should work on the benefit, concern about Fast Food, consumers desire, made Fast Food a fascinating matter for the con sumer and at last work on the exciting Factor of Fast Food so that consumers expectations regarding these factors can be meet.

•

As all the demographics do not have relation with the Involvement Level, so company do not need to work on the different demographics particularly in order to increase or maintain the involvement level.

References


32

Fast Food Industry Complete Analysis

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