Service Quality Analysis of McDonald’s Pakistan Submitted By: Ammara Anjum (12-BS--!"# $orai%a Aslam (12-BS--1&# (12-BS--1&#
Submitted To: Dr' Amani Mo%%am
1
Abstract Service quality and customer satisfaction are very essential concepts that organizations must understand in order to remain competitive in business and to grow. It is very important for companies to know how to measure these concepts from the consumers’ perspective in order to develop develop better understa understandin nding g and to know know their their needs needs to satisf satisfy y them. them. Servic Servicee quality quality is consid considered ered very import important ant becaus becausee it leads leads to higher higher custom customer er satisf satisfact action ion,, succes success, s, costcosteffectiveness, customer loyalty and tells the organization that how to retain customers. he purpose of our study is to e!plore service quality dimensions in fast food restaurant services. he restaurant restaurant we have chosen as our sub"ect sub"ect is #c$onald’ #c$onald’ss %akistan. %akistan. he study e!amines e!amines the effe effect ct of the the serv servic icee dime dimens nsio ions ns on cust custom omer er sati satisf sfact actio ion n and and the the gap gap analy analysi siss betwe between en e!pectation and perception within the restaurant. he findings are e!pected to help the owners of restaurant to reduce or deal with the gaps and improve satisfaction level of their customers, thereby bringing about repeat business and improving profits.
1
Abstract Service quality and customer satisfaction are very essential concepts that organizations must understand in order to remain competitive in business and to grow. It is very important for companies to know how to measure these concepts from the consumers’ perspective in order to develop develop better understa understandin nding g and to know know their their needs needs to satisf satisfy y them. them. Servic Servicee quality quality is consid considered ered very import important ant becaus becausee it leads leads to higher higher custom customer er satisf satisfact action ion,, succes success, s, costcosteffectiveness, customer loyalty and tells the organization that how to retain customers. he purpose of our study is to e!plore service quality dimensions in fast food restaurant services. he restaurant restaurant we have chosen as our sub"ect sub"ect is #c$onald’ #c$onald’ss %akistan. %akistan. he study e!amines e!amines the effe effect ct of the the serv servic icee dime dimens nsio ions ns on cust custom omer er sati satisf sfact actio ion n and and the the gap gap analy analysi siss betwe between en e!pectation and perception within the restaurant. he findings are e!pected to help the owners of restaurant to reduce or deal with the gaps and improve satisfaction level of their customers, thereby bringing about repeat business and improving profits.
2
Table of Contents McDonald’s ntroduction''''''''''''''' ntroduction''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''' ! #c$onald’s %akistan '''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''' "
esearc) esearc) Question''''''''''''''''''''''''''' Question''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''' ''''''''''''''' " esearc) esearc) *+jective''''''''''''''''''''''''''''''' *+jective''''''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''' ''''''''''' , iterature evie.''''''''''''''''''''''''' evie.''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''' '''''''''''''''''''' '''''' , esearc) esearc) met)odolo/y'''''''''''''''''''''''''' met)odolo/y'''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''' 11 ype of research ''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''' 12 &ocus of research '''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''' 12 'niverse of population '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''1! arget population '''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''' 1! ools for data collection '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''' '''''''''''''' 1! Sampling size '''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''' '''''''''' 1! (imitations''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''' ''''''''''''''''''''' ''''''' 1!
0)eoretical 0)eoretical frame.ork''''''''''''''''''''''' frame.ork''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''' '''''''''''' 1" $ifferent heories of )ustomer Satisfaction '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''1"
Assimilation 0)eory''''''''''''''''''''''''''''''' 0)eory''''''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''' 1" ontrast 0)eory''''''''''''''''''''''''''' 0)eory''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''''''' '''''''''' 1, Assimilation-ontrast Assimilation-ontrast 0)eory'''''''''''''''''''''''''''''''''''''''''''''''''' 0)eory'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''' '''''''''''''''' 1& $e/ativity 0)eory'''''''''''''''''''''''''''' 0)eory'''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''' 1 S*+'( #odel ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''1 ''''''''''''''''''''''1 he /aps #odel of Service uality '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''13
Data Analysis'''''''''''''''''''''''' Analysis''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''' ''''' 13 /ap scores analysis '''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''' '''''''''''''''''''''''' '''''''''' 2! $epartment-wise nalysis '''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''' ''''''''''''''' 2!
''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''' ''''''''' 2, $emographics''''''''''''''''''''''''''''''''''''''' onclusion''''''''''''''''''' onclusion''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''' 2& ecommendations'''' ecommendations'''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''' '''''''''''''''' 24 Quality riteria''''''''''''''''''''''''''' riteria'''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' '''' 2 Bi+lio/ra5)y''''''''''''''''''' Bi+lio/ra5)y''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''' ''''''''''''''''' ''' 23 A55endi6''''''''''''''''''''''''' A55endi6'''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''' '''''''''''''' !7
!
McDonald’s Introduction
#c$onald’s )orporation, incorporated on $ecember 01, 1234, operates and franchises #c$onald’s restaurants. #c$onald’s global system comprises both )ompany-owned and franchised restaurants. he )ompany manages its business as distinct geographic segments5 the 'nited States 6'.S.78 *urope, and sia9%acific, #iddle *ast and frica 6%#*7. he )ompany’s operations in )anada and (atin merica, as well as its corporate activities are reported under :ther )ountries ; )orporate. he )ompany’s restaurants offer a substantially uniform menu, although there are geographic variations to suit local preferences and tastes. #c$onald’s franchised restaurants are owned and operated under one of the following structures5 conventional franchise, developmental license or affiliate. 'nder a conventional franchise arrangement, the )ompany owns the land and building or secures a long-term lease for the restaurant location and the franchisee pays for equipment, signs, seating and decor. &ranchisees are also responsible for reinvesting capital in their businesses over time. he )ompany’s typical franchise term is 0< years. )onventional franchisees contribute to the )ompany’s revenue through the payment of rent and royalties -based upon a percent of sales, with specified minimum rent payments, along with initial fees paid upon the opening of a new restaurant or grant of a new franchise. 'nder a developmental license arrangement, licensees provide capital for the entire business, including the real estate interest. he )ompany does not invest any capital under a developmental license arrangement. he )ompany receives a royalty -based upon a percent of sales, as well as initial fees upon the opening of a new restaurant or grant of a new license. his structure is used in over =< countries with a total of appro!imately >,00? restaurants. he largest developmental licensee operates appro!imately 0,1<< restaurants in 12 countries in (atin merica and the )aribbean. he )ompany also has an equity investment in foreign affiliated markets, referred to as ffiliates. In these markets, the )ompany receives a royalty -based on a percent of sales. he largest of these affiliates is @apan, where there are nearly A,1<< restaurants.
"
McDonald’s Pakistan #c$onald’s first restaurant opened its door to the people of %akistan in September 122? in (ahore. his launch was met with unprecedented enthusiasm from the citizens of (ahore, who are known for their liveliness, vigor and penchant for quality food. Barachi opened its first restaurant a week after (ahore. *ver since they opened the doors of our restaurants both in Barachi ; (ahore, they have been proud to provide our customers the same great taste, outstanding value and superior service that is synonymous with the /olden rches all over the world. here are now A4 restaurants in ? ma"or cities of %akistan. 6Barachi, Cyderabad, (ahore, &aisalabad, Bala Shah Baku, Sialkot, /u"ranwala, Islamabad and +awalpindi7 oday millions of %akistanis place their trust in #c$onald’s to provide them with food of a very high standard, quick service and value for money. So ne!t time you walk into one of our restaurants, please remember, #c$onald’s %akistan is here now, to put a smile on your face, each and every time you visit us. #c$onald’s is firmly committed to giving back to the community where it operates. hey are happy to become involved because they recognize that organizations have a role to play in helping communities to work successfully. he contribution they en"oy most is the e!perience of working together with others in the community to achieve worthwhile benefits for those who need it most.
Research Question +esearch uestions he main issues we are addressing in this research are service quality and customer satisfaction using the S*+'( model in the conte!t of fast food restaurant. De are interested in the dimensions of service quality from the consumer’s perspective through assessing their e!pectations and perceptions of service quality. De therefore will like to answer the following questions in our study5 •
Dhat are the consumer’s e!pectations about the service qu ality of #c$onald’sE
,
• •
Cow do consumers perceive service quality in #c$onald’sE re consumers satisfied with service quality offered by #c$onald’sE
Research Objective
he ob"ective of this research is to find out the5 •
(evel of service of #c$onald’s pakistan.
•
&actors that satisfy and dissatisfy the customers related to their services.
•
+easons for #c$onald’s’s preference.
•
+easons for disliking the restaurant.
•
&actors that need improvement with respect to service qua lity.
Literature Revie ccording to subonteng 612237, due to strong competition and the unfriendliness of environmental factors, service quality has become a foundation for marketing strategy for corporations. his highlights how vital is to improve service quality for organizations for their survival and development since it could help them deal with these challenges they e!perience in the competitive markets. his means that service-based organizations are bound to provide e!cellent services to their consumers in order to have a viable competitive advantage. here is a need for these organizations to understand wha t sort of service quality is needed in order to attain their ob"ectives. Service quality is usually defined as the overall valuation of a service by the consumers, 6*shghi,0<7. If what is perceived is less than e!pectation if what is perceived is a smaller amount than e!pectation, client "udges quality as low and if whatHs perceived is meets or e!ceeds e!pectation then customer sees quality to be high.
&
he )rucial factor of service quality is consumer’s e!pectation that is seen as what they feel service provider should offer and this is influenced by his9her personal needs, past e!perience, word-of-mouth
and service provider’s communications,6%arasuraman,12?>7.hough,
this
meaning of e!pectation is that of service quality literature which is dissimilar from e!pectation in the customer satisfaction literature which defines e!pectation as forecasts made by consumer about what is likely to happen during an awaiting transaction. )onsumers’ perception of performance is what he9she e!periences 6%arasuraman,12??7. 'sually, it is stimulating to study e!pectations and e!periences of consumers in different conte!ts. It is of particular interest to study these concepts in the conte!t of &ast food restaurant because &ast food restaurant are playing an instrumental role in the lives of youth for the last few years. herefore, in this study, we will define consumer’s e!pectation as what consumers think should be offered by the ideal &ast food restaurant while consumer’s perception will be defined as what they e!perienced in the &ast food restaurant and this is assessed after the performance. &urthermore, service quality is predominantly focused on meeting the customer’s needs and also how good the service presented meets the customer’s e!pectation of it. It is however challenging according to preceding studies to measure service quality due to its intangible nature and also because it contracts with e!pectations and perceptions of consumers which is challenging as well to determine due to the comple!ity of human behavior. he intangible elements of a service that are inseparability, heterogeneity and perishability are the critical factors influencing service quality perceived by a consumer. his means that a service must be perfect by the provider in terms of its characteristics in order to understand how service quality is perceived by consumers. 6$ouglas ; )onnor,0<
8 (adhari,0<
4
must try to determine the level of intangibility of services and try to contain tangible elements that could help understanding of e!pectation from the customer’s perspective 6eamish ; shford, 0<<=7. Ceterogeneity means the quality of being diverse and difference in the level of delivery of service due to the difference in human behavior of those offering services and the consumer. *!ample occurs when seller offers assistance to one customer at the counter, that same person cannot offer e!actly the similar thing to the following customer because of differences in behaviors. his is why it is challenging to determine the quality and level of service provided because customers and service suppliers are different8 the same consumer could act contrarily with the same service provider 6eamish ; shford, 0<<=7. %erishability means that as services are produced and disbursed at the same time implying they cannot be stored for future usage. If the services are not used then they cannot be used again. his does not though hold in every service business 6eamish ; shford, 0<<=7. n e!ample occurs when a person books a hotel room for a night and does not use it, no other person can use at that same time. Inseparability means services are consumed as they are bought. his infers that the consumer is involved in the production and delivery of the service which means he9she takes distinct note of what is actually made by the service provider 6eamish ; shford, 0<<=7.hese above mentioned facets of service make it very thought-provoking measure service unlike product quality which is measured ob"ectively using factors such as resilience and number defects because of its tangible nature 6%arasuraman,12??7. he first model to live service quality is developed by /ronroos. Ce acknowledged three elements of service quality8 the technical quality cares with whatHs delivered 6outcome7, the practical quality deals with the method of service delivery 6how itHs delivered7 and therefore the image quality that is known as company image of company ensuing from each technical and practical qualities of service elements 6/ronroos,12?07. he technical quality element of product unlike services is easy to assess as a result of area unit they’re involved with palpability 6services cape7 like physical features that are visible to the buyer. Servicescape is outlined because the physical facilities of a service company and this idea is e!pounded to the S*+'( model in this the tangible aspects of the physical atmosphere
are lined within the S*+'( model. Servicescape thus plays a good role in this it influences consumers’ evaluations of alternative factors determining perceived service quality like sympathy, reliability, responsiveness, and assurances 6+eimer
;amp8
Buehn, 0<<47.
Servicescape is a lot of in service setting attributable to the distinctive characteristics of services 6intangibility, perishability, inseparability and heterogene ity7 6Dilliam ;amp 8 $argel,0<<47. Summarily, services cape is implausibly important inside the delivery of services and affects perceived service quality that any leads either consumer satisfaction or not. Service quality may be a vital space to academicians because of its association to service organizations and then many researchers have tried to develop varied models to measure it, even if some claim itHs arduous to live because of its intangibility thatHs powerful to quantify 6*shghi,0<
3
towards service. his model is sweet to live service quality however doesnHt give info on however customers can like service to be so as for service suppliers to create enhancements. eas in 122A developed the *valuated %erformance model that measures the gap between perceived performance and also the ideal quantity of a dimension of service quality, instead of the customer’s e!pectation. his was to unravel a number of the criticism of some previous models /ronroos, 612?478 %arasuraman et al., 612?>, 12??7. 6%arasuraman ,12?>7, developed a model of service quality when ending a study on four service settings5 retail banking, #aster)ard services, repair and maintenance of electrical appliances, and long-distance phone phone services. he S*+'( model represents service quality because the inconsistency between a customer’s e!pectations of service providing and also the customer’s perceptions of the service received. his primarily makes a behavior live 6%arasuraman,12?>7. Dhat this model tries to live specifically is that the client perception of the service quality that is dependable on the dimensions of the gap between e!pected service and perceived service that in go, depends on the gaps beneath the management of the service provider like delivery of service, promoting of your services etc. 6%arasuraman,12?>7. his mensuration of service quality relies on each on however client evaluates the service delivery method and also the outcome of the service. a decent service quality is taken into account united that meets or e!ceeds consumer’s e!pectation of the service 6%arasuraman, 12?>7. he S*+'( model was made from 1< dimensions of service quality once created8 tangibles, responsibility, responsiveness, communication, quality, security, competence, courtesy, understanding the client, and access, 6%arasuraman,12?>7 however anon these dimensions were squeeze right down to five as a result of some dimensions were overlapping and that they enclosed, • • • •
angibles 6physical facilities, equipment, and workers appearance7 +eliability 6ability to perform the secure service faithfully and accurately7 +esponsiveness 6willingness to assist customers and supply prompt service7 ssurance 6knowledge and courtesy of workers and their ability to inspire trust and confidence7
17
•
*mpathy-
caring,
individual attention
the
firm provides its
customers
6%arasuraman,12??7 he higher than dimensions in the main specialize in the human aspects of service delivery 6responsiveness, responsibility, assurance, and empathy7 and also the tangibles of service. ccording to study administrated by 6(adhari,0<<27, itHs suggested that the S*+'( model may be a smart scale to use once measure service quality in varied specific industries however that itHs acceptable to settle on the foremost vital dimensions of this model that fit that specific service being measured so as to assure reliable and valid results. De are going to use this model as a result of it takes into consideration customer’s e!pectation of a service similarly as perceptions of the service that is best thanks to live service quality in service sector 6Shahin,0<<>7. #any researchers that have used the S*+'( model in varied industries 6retailing, restaurant, banking, telecommunication trade, airline line, government, hotels, hospitals, and education7. &urthermore service quality has become a very important topic due to its apparent relationship to prices, profitableness, client satisfaction, client retention
and
positive
word
of
mouth
and itHs wide thought of as a driver of corporate market and monetary performance 6uttle,12237. In our study, we tend to square measure additional inquisitive about service quality and client satisfaction by victimization the S*+'( model to assess them in alimentation eating place. Service
quality
and client satisfaction
have
received an
e!cellent deal
of
attention
from each students and practitioners due to their connection and relationship 6*shghi,0<
;
@ulander,
12237.
)ustomer satisfaction has been studied by some researchers employing a single item scale 6)ronin ; aylor,12207 means that customer’s overall feeling towards a service is asked to live satisfaction whereas others use a multiple item scale 6%arasuraman et al,12?>,12??7 satisfaction is measured victimization varied dimensions as an e!ample the S*+'( dimensions. )ustomer satisfaction is outlined as a operate of the customer’s e!pectations and perceptions of performance in keeping with the e!pectation - disconfirmation paradigm 6se ; carpet, 12??7 and itHs
a
construct
closely associated
with perceived
service
quality
6#agi
;
11
@ulander,12237 varied studies that centered on a link between satisfaction and quality argued for various views in terms of relationship. his shows that thereHs some link between service quality and client satisfaction that highlights that importance of client fulfillment as process of quality 6Dicks ; +oethlein,0<<27. his ensure a relationship between service quality and client satisfaction however in keeping with 6subonteng,12237 thereHs no agreement on the precise reasonably relationship between the two constructs and points of out that almost all researchers agree that service quality and client satisfaction have attributes that square measure measurable. his is why we tend to shall use the S*+'( instrument with its dimensions to live these ideas 6service quality and client satisfaction7 and for the very fact that service quality results in client satisfaction we Hll build that assumption in our research in order to measure customer satisfaction.
Research !ethodolo"# he overall ob"ective of this research study is to establish the /ap nalysis between the %erception and *!pectation scores for all the customers of #c$onald’s %akistan. &igure 1 illustrates the overall research design. questionnaire already was pre-designed. review of the literature showed a previous scale measuring this construct. he questionnaire which will be been tested is a world renowned scale known as S*+'(. he authors of this S*+'( framework are alerie Keithaml, %arasuraman, and #ary @o itner. hus the primary ob"ective of this phase was to describe the appropriateness, reliability, and validity of using the S*+'( questionnaire items 6questions7. In addition, annotated questionnaire was constructed by merely ad"usting the questions towards a restaurant scenario. he sampling frames that will be used are the respondents based on rules as set in its respective section Lsampling’ mentioned under.
12
Annotation of nstrument (S89Q:A Questionnaire#
Sam5le Selection
Pre-testin/ of Questionnaire
Data ollection
Data Analysis
T#$e of research his study has been conducted on the basis of descriptive research design. $escriptive studies involve a one-time interaction with a group of people 6cross-sectional study7 or a study may possibly follow individuals over time 6longitudinal study7. he ultimate ob"ective of this research study is to analyze the %erception scores for all the customers of the fast food restaurant #c$onald’s. his section includes a discussion of the research’s ob"ectives. he questionnaires are tested in a world renowned scale known as S*+'(. he authors of this S*+'( framework are alerie Keithaml, %arasuraman, and #ary @o itner. hus the primary ob"ective of this phase was to describe the appropriateness, reliability, and validity of using the S*+'( questionnaire. In addition, questionnaire was constructed by ad"usting the questions towards restaurant scenario.
%ocus of research +esearch focuses on the service quality of the restaurant, customer satisfaction and the gaps between e!pectations and perception. his can provide invaluable information regarding the service quality of the restaurants so evaluation can be done.
1!
&niverse of $o$ulation he people of %akistan are fond of dinning in fast food restaurants so a huge crowd visits the fast food restaurants per day. ut this research will target the university going students because a large percentage of those people are students and it would convenient for us to target a particular rather than everyone.
Tar"et $o$ulation he target population of this research is basically the youth or university going students who are habitual of visiting restaurants more than any other. So they can better evaluate the service quality of the restaurants. he target population relates to faculty of management of 'niversity of he %un"ab uaid-e-zam campus (ahore.
Tools for data collection he questionnaire will request respondents to evaluate the service quality of the restaurants. here are total 13 questions that were needed by customer to answer.
'a!$lin" si(e De selected a sample size of 1>< respondents to fill the questionnaire because the population was unknown to us so taking the time limitation into account we opted the minimum requirement of questionnaires i.e. 1>< by using simple random sampling method. So that the estimate is accurate and the margin of error can be tolerated.
Li!itations here are some hurdles that came in a way of research5 17 It was hard to find people who have visited all the three restaurants. 07 %eople are less willing to fill the questionnaire. A7 ime limitations were also another factor.
1"
Theoretical fra!eork heoretical frameworks are also significant in descriptive studies, a descriptive study is one within
which data is
collected without changing the surroundings 6i.e.,
nothing
is
manipulated7. /enerally these are referred to as FcorrelationalG or FobservationalG studies. here are two motives why theoretical frameworks are vital here. &irst, no matter how slight you think you know about a sub"ect, and how unpre"udiced you reason you are, it is difficult for a human being not to have defined notions, even if they are of a very broad nature ) he theoretical framework is a structure that identifies and defines the ma"or elements, variables, or constructs of the research. It is used to hypothesize, understand, or give sense to the relationships between the elements that impact, affect, or predict the events or outcomes we specify. theoretical framework guides the researcher that which variables should be measured and what statistical relationships he9she should look for.
Different Theories of Custo!er 'atisfaction )onsistency theories suggest that when the e!pectations and the actual product performance do not match the consumer will feel some degree of tension. In order to relieve this tension the consumer will make ad"ustments either in e!pectations or in the perceptions of the product’s actual performance. &our theoretical approaches have been advanced under the umbrella of consistency theory5 617 ssimilation theory 607 )ontrast theory 6A7 ssimilation-)ontrast theory 647 Jegativity theory
Assi!ilation Theor# ssimilation theory is based on &estinger’s 612>=7 dissonance theory. $issonance theory posits that consumers make some kind of cognitive comparison between e!pectations about the product and the perceived product performance. his view of the consumer post-usage evaluation was introduced into the satisfaction literature in the form of assimilation theory. ccording to nderson 612=A7, consumers seek to avoid dissonance by ad"usting perceptions about a given
1,
product to bring it more in line with e!pectations. )onsumers can also reduce the tension resulting from a discrepancy between e!pectations and product performance either by distorting e!pectations so that they coincide with perceived product performance or by raising the level of satisfaction by minimizing the relative importance of the disconfirmation e!perienced.
Assi!ilation Theor# * Criticis!+ %ayton et al 60<
Contrast Theor# )ontrast theory was first introduced by Covland, Carvey and Sherif 612?=7. $awes et al 612=07 define contrast theory as the tendency to magnify the discrepancy between one’s own attitudes and the attitudes represented by opinion statements. )ontrast theory presents an alternative view of the consumer post-usage evaluation process than was presented in assimilation theory in that post-usage evaluations lead to results in opposite predictions for the effects of e!pectations on satisfaction. Dhile assimilation theory posits that consumers will seek to minimize the discrepancy between e!pectation and performance, contrast theory holds that a surprise effect occurs leading to the discrepancy being magnified or e!aggerated. ccording to the contrast theory, any discrepancy of e!perience from e!pectations will be e!aggerated in the direction of discrepancy. If the firm raises e!pectations in his advertising, and then a customer’s e!perience are only slightly less 24 than that promised, the product9service would be re"ected as totally unsatisfactory. )onversely, under-promising in advertising and over-delivering will cause positive disconfirmation also to be e!aggerated.
1&
Contrast Theor# * Criticis!+ Several studies in the marketing literature have offered some support for this theory. he contrast theory of customer satisfaction predicts customer reaction instead of reducing dissonance8 the consumer will magnify the difference between e!pectation and the performance of the product9service.
Assi!ilation,Contrast Theor# ssimilation-contrast theory was introduced by nderson 612=A7 in the conte!t of post-e!posure product performance based on Sherif and Covland’s 612317 discussion of assimilation and contrast effect. ssimilation-contrast theory suggests that if performance is within a customer’s latitude 6range7 of acceptance, even though it may fall short of e!pectation, the discrepancy will be disregarded M assimilation will operate and the performance will be deemed as acceptable. If performance falls within the latitude of re"ection, contrast will prevail and the difference will be e!aggerated, the produce9service deemed unacceptable.he assimilation-contrast theory has been proposed as yet another way to e!plain the relationships among the variables in the disconfirmation model.his theory is a combination of both the assimilation and the contrast theories. Fhis paradigm posits that satisfaction is a function of the magnitude of the discrepancy between e!pected and perceived performance. s with assimilation theory, the 2> consumers will tend to assimilate or ad"ust differences in perceptions about product performance to bring it in line with prior e!pectations but only if the discrepancy is relatively small. ssimilation-contrast theory attempts illustrate that both the assimilation and the contrast theory paradigms have applicability in the study of customer satisfaction.
14
ssimilation-)ontrast theory suggests that if performance is within a customer’s range of acceptance, even though it may fall short of e!pectation the discrepancy will be disregarded M assimilation will operate and the performance will be deemed as acceptable. If performance falls within the latitude of re"ection 6no matter how close to e!pectation7, contrast will prevail and the difference will be e!aggerated, the product deemed unacceptable. •
Assi!ilation,Contrast Theor# * Criticis!+ nderson 612=A7 argues that )ardozo’s 6123>7 attempt at reconciling the two earlier theories was methodologically flawed. he attempts by various researchers to test this theory empirically have brought out mi!ed results. :lson and $over 612=27 and nderson 612=A7 found some evidence to
1
support the assimilation theory approach. In discussing both of these studies, howeve r, :liver 612?<7 argues that only measured e!pectations and assumed that there were perceptual differences between disconfirmation or satisfaction. -e"ativit# Theor# his theory developed by )arlsmith and ronson 6123A7 suggests that any discrepancy of
performance from e!pectations will disrupt the individual, producing Lnegative energy’. Jegative theory has its foundations in the disconfirmation process. Jegative theory states that when e!pectations are strongly held, consumers will respond negatively to any disconfirmation. Fccordingly dissatisfaction will occur if perceived performance is less than e!pectations or if perceived performance e!ceeds e!pectations. his theory developed by )arlsmith and ronson 6123A7 suggests that any discrepancy of performance from e!pectations will disrupt the individual, producing Fnegative energy.G ffective feelings toward a product or service will be inversely related to the magnitude of the discrepancy '.R/Q&AL Model he S*+'( instrument has been widely applied in a variety of service industries, including
tourism and hospitality. he instrument was used to measure hotel employee quality as well.%arasuraman, Keithamal and erry 612??7 built a 00-item instrument called S*+'( for measuring consumer perceptions of service quality. S*+'( addresses many elements of service quality divided into the dimensions of tangibles, reliability, responsiveness, assurance, and empathy. number of researchers have applied the S*+'( model to measure service quality in the restaurant industry, with modified constructs to suit specific hospitality situations. ccording to the S*+'( model, service quality can be measured by identifying the gaps between customers’ e!pectations of the service to be rendered and their perceptions of the actual performance of service. S*+'( is based on five dimensions of service5 1.Tan"ibilit#+ angibility refers to the physical characteristics associated with the service encounter. 0.Reliabilit#+ he service provider’s ability to provide accurate and dependab le services8 consistently performing the service right. he physical surroundings represented by ob"ects 6for e!ample, interior design7 and sub"ects 6for e!ample, the ap pearance of employees7.
13
A. Res$onsiveness+ firm’s willingness to assist its customers by providing fast and efficient service performances i.e. the willingness that employees e!hibit to promptly and efficiently solve customer requests and problems. 4. Assurance+ $iverse features that provide confidence to customers 6such as the firm’s specific service knowledge polite and trustworthy behavior from employees7. >. .!$ath#+ he service firm’s readiness to provide each customer with personal service.
The 0a$s Model of 'ervice Qualit# Bhan and $utt cited that %arasuraman 612?>7 developed a model which depicts how various gaps in the service process may affect the customer’s assessment of the quality of the service. he foundation of the model 6see &igure 17 is a set of four gaps which are the ma"or contributors to the service quality gap which customers may perceive5
0a$ 1 2Consu!er .3$ectation * Mana"e!ent Perce$tion 0a$4+ In formulating its service
delivery policy, management does not correctly perceive or interpret consumer e!pectations. 0a$ 5 2Mana"e!ent Perce$tion * 'ervice Qualit# '$ecification 0a$4+ #anagement does not
correctly translate the service policy into rules and guidelines for employees. 0a$ 6 2'ervice Qualit# s$ecification * service deliver# 0a$4+ *mployees do not correctly
translate rules and guidelines into action. 0a$ 7 2'ervice Deliver# * .3ternal Co!!unications 0a$4+ *!ternal communications M
promises made to customers M do not match the actual service delivery.
Data Anal#sis
'TAT.M.-T'
McDonald’s P.RC.PTI .8P.CTATI O-
O- 'COR.
0AP
27
'COR. P
.
P, .
1 0 A
TA-0I9L.' +estaurant shall9has modern equipment. %hysical facilities will9are visually appealing. *mployees shall be9are dressed properly and
A.=? A.33 A.20
4.1? 4.14 4.A2
-<.4 -<.4? -<.4=
4
appear neat. %hysical environment will be9is clean
A.24
4.3
-<.33
6):5
7)65
,;)<
1
R.LIA9ILIT= Dhen customer has a problem, restaurant
A.>4
4.44
-1.<4
0
show a sincere interest +estaurant should perform9performs service
A.44
4.0A
-<.=2
A
right first time. Should perform services at the time they
A.=1
4.4>
-o.=4
A.>2
4.<3
-<.4=
6)<>
7)5?
,;)>5
1
R.'PO-'I/.-.'' *mployees should make information easily
A.31
4.
-<.40
0 A
obtainable by the customers *mployees should give prompt to customers *mployees should always be willing to help
A.30 A.3?
4.0A 4.0>
-<.31 -<.>=
4
customers *mployees in restaurants should9are never be
A.4<
4.1=
-<.==
6)<>
7)56
,;)@@
1
A''&RA-C. ehavior of employees in restaurants should
A.43
4.1<
-<.34
0
instill confidence in customers )ustomers should be able to feel safe in their
A.=2
4.03
-<.4=
Overall 'core
promised to do so. 4 Should keep their records accurately. Overall 'core
too busy to respond to customers. Overall 'core
21
A 4
transactions with employees in the restaurants *mployees should be polite *mployees of the restaurant should have the
4.<2 A.>?
4.0= 4.A1
-<.1? -<.=A
6)>6
7)56
,;)<
1
.MPAT= +estaurant should give customers individual
A.40
A.2>
-<.>A
0
attention heir operating hours should be convenient to
A.?
4.0=
-<.4=
A
all their customers hey should have their customers best interest
A.3=
4.1<
-<.4A
6)@6
7)1;
,;)7>
1
Product +estaurant should have enough variety of
A.2
4.0=
-<.A=
0
products he products in restaurants should be of good
A.=3
4.4?
-<.=0
6):6
7)65
,;)7?
knowledge to answer customersH questions Overall 'core
at heart Overall 'core
quality Overall 'core
M.A- 'COR.' O% T. Q&ALIT= D.T.RMI-A-T'
B
'.R/IC. Q&ALIT= D.T.RMI-A-T'
1
J/II(IN
P.RC.PTIO-
McDonald’s .8P.CTATIO-
0AP
'COR. P
'COR. .
P,.
6):5
7)65
,;)<
22
0
+*(II(IN
6)<>
7)5?
,;)>5
A
+*S%:JSI*J*SS
6)<>
7)56
,;)@@
4
SS'+J)*
6)>6
7)56
,;)<
>
*#%CN
6)@6
7)1;
,;)7>
3
%roduct
6):6
7)65
,;)7?
6)@?
7)57
Overall Mean 'core
0a$ scores anal#sis
he gap score analysis is to enable us find out how consumers perceive service quality in #c$onald’s and try to identify what dimensions of service quality they are satisfied with. ccording to 6%arasuraman,12?>7 the higher 6more positive7 the perception 6%7 minus e!pectation 6*7 score, the higher the perceived service quality and thereby leading to a higher level of customer satisfaction. In this regard, the gap scores were calculated based on the difference between the consumers’ perceptions and e!pectations of services offered by #c$onald’s. In general, it was found that, customers’ perceptions of service quality offered by #c$onald’s did not meet their e!pectations 6all gaps scores the dimensions are negative7. $imensions that reported larger mean gaps were reliability 6-<.=07, responsiveness 6-<.337 and assurance 6-<.>7 while smaller mean gaps obtained were products 6-<.427, tangibles 6-<.>7 and empathy 6-<.4=7. hese values show that the perception of performance in #onaldsH is less than the e!pected level of service quality.
De$art!ent,ise Anal#sis Institute of Ad!inistrative 'ciences 2IA'4 'erial no) 1 5
%actors
Perce$tions
.3$ectation
0AP
Tan"ibles +eliability
P A.?A A.>A
. 4.02 4.0=
P,. -<.43 -<.=4
2! 6 7 < @
+esponsiveness ssurance *mpathy %roduct
A.> A.=A A.31 A.=3
4.1> 4.0= 4.14 4.4=
-<.3> -<.>4 -<.>A -<.=1
%actors
Perce$tions
.3$ectation
0AP
angibles +eliability +esponsiveness ssurance .!$ath# %roduct
P A.=2 A.30 A.=< A.=2 A.3= A.?1
. 4.A0 4.A< 4.14 4.04 4.
P,. -<.>A -<.3? -<.44 -<.4> -<.41 -<.40
.3$ectation . 4.A= 4.A0 4.00> 4.0 4.1 4.4A
0AP P,. -<.>1 -<.=3 -<.3? -<.>0> -<.> -<.>0
Institute of 9usiness Ad!inistration 2I9A4 'erial no) 1 5 6 7 < @
Institute of 9usiness and Infor!ation Technolo"# 2I9IT4 'erial no)
%actors
1 5 6 7 < @
angibles +eliability +esponsiveness ssurance .!$ath# %roduct
•
Perce$tions P A.?>> A.>3 A.>4> A.3=> A.3< A.21
De have taken the faculty of management of 'niversity of the %un"ab, uaid-e-zam campus as our target population. ccording to the students of IS the gap in tangible factors 6physical facilities, uniform, and machinery7 was the most as compared to other factors which means their e!pectations were high an d what they perceived was low. :n the other hand the scores of respondents of II and I showed that the gap in empathy was high as compare to other factors.
2"
De!o"ra$hics
Gender
2; "!< 1; ,4<
Male1
%e!ale5
2,
Age
2; ,<
1; 3,<
11:,57 #ears
55<,6; #ears
Income
!; 1< "; 1< 2; 1!<
1; ,<
1;,1;;;
51;;;,5;;;
65;;;,6;;;
76;;; and above
2&
Conclusion
/ap analysis of #c$onald’s has been done in this pro"ect by using the Servqual #odel /ap nalysis. ccording to the perception and e!pectations score there are improvements needed. &rom the gap score analysis carried out, it was found that, the overall service quality is low as perceived by consumers in #c$onald’s and hence no customer satisfaction. )onsumers have higher e!pectations than what they actually receive from #c$onald’s even though the difference is not wide. o answer our research questions which are8 how consumers perceive service quality and are consumers satisfied with service offered by #c$onald’s, the gap scores analysis carried out provided answers to these questions. he overall perceived service quality is low as e!pectations e!ceed perceptions meaning consumers desired more than what was offered to them. s a result of this gap, it is clear that consumers are not satisfied. *valuating the perceptions and e!pectations of consumers, it can be seen that no dimension of service quality brings customer satisfaction. s we have taken faculty of #anagement as our sample so the trends were seen the same in all three departments IS, I and II. In all the departments perception score was lower than the e!pectations score so ultimately the satisfaction level was lower as well. *vidence from the study show that, #c$onald’s have to improve performance on all the dimensions of service quality in order to increase customer satisfaction since consumers e!pect more than what is been offered by it. his will enable them maintain high level of competitiveness. It has been found that the verage %erception Score of the +eliability among 3 quality determinants is the highest and because of tha t the customers consider it the best for dinning. verage %erception score of the factor HresponsivenessH is slightly lower than that of reliability then comes tangibility and assurance at same level and in the end product and empathy which needs highest improvement among all.
24
#c$onald’s is preferred by customers due to their facilities and reliability in the %akistani +estaurant Industry. )ustomers would like to dine in a hygienic, reliable and reputable restaurant. ccording to the scores #c$onald’s need to improve the product quality and need to bring more variety in its e!isting product line. nd also they lack individual attention to the customersH which is making customers less comfortable.
Reco!!endations
•
ring innovations in the menu.
•
$ining area should always be comfortable enough for the customers like the tables need to be spaced far enough apart that you don’t feel you are being eavesdropped in your conversation.
•
Should provide a calm dining atmosphere, it doesn’t need to be crammed so full that the noise level becomes intolerable.
•
uick service should be the main focus.
•
%rovide discounts and special deals.
•
Should do more advertising to remain in the minds of the customers and to show they care for their customers.
•
#ust assist customers and empathize them when they face any problem.
•
#ust give their regular customers special rewards or discounts. his can be done if they keep a record of them.
•
*mployees should have scheduled training and their behavior should be noted and compared with their future performance.
•
elephone operators and call centers should be more active and must immediately answer
•
customer’s calls and take orders. )ustomer satisfaction has to be improved by giving customer’s quick response from
•
placing the order till delivering it. &riendly workforce should be available to assist customer queries.
2
Qualit# Criteria In our study, which is using a cross-sectional design, the e!ternal validity would be weak because we did not apply a probability sampling technique meaning our results could not be generalized to a larger population. :ur study could be consider credible because we tried at all cost to obtain unbiased answers from our respondents and we analyzed e!actly what we had as data from them with doing any additional to primary data on our part. his means a high degree of honesty was applied in the study.
23
9iblio"ra$h# 1. %arasuraman, alarie . Keithaml and (eonard erry 612??7 FS*+'(5 #ultiple Item Scale for #easuring )ustomer %erceptions of Service ualityG 0. )hristopher C. (ovelock 60<<>7 FServices #arketing in sia5 #anaging %eople, echnology and StrategyG A. @in M Doo %ark, +odger +obertson and )heng M (ung Du F he *ffects of Individual $imensions of +estaurant Service uality5 &indings from ustralian $omestic ir )ustomersG 4. +obert *. #iller, ill Cardgrave and homas D. @ones Fhe Impact of %resentation :rder on Service uality $imensionsG >. nthony %errone and ntony Dard F*nhancing the /ronroos #odel of Service ualityG 3. San"ay B. @ain and /arima /upta F#easuring Service uality5 S*+'( S S*+%*+& ScaleG =. $r. #. Javeed Bhan and ippan +a" $utt. F)onsumer *!pectations, %erceptions and /aps #odel in Service ualityG
?. &areena Sultan and #erlin ) .Simpson FInternational Service ariants5 +estaurant )ustomer *!pectations and %erceptions of Service ualityG 2. Simon Jyeck, #iguel #orales, +iadh (adhari and &rank %ons F1< Nears of Service uality #easurement5 +eviewing the 'se of the S*+'( InstrumentG 1<. @ohn /ountas and +obin J. Shaw F%ersonality, uality and Satisfaction in +estaurant ServicesG
11. %hilemon :yewole , #uthulakshmi Sankaran, , %ravat )houdhury F #arketing +estaurant Services in #alaysia5 )ustomer Satisfaction :rientation pproach 10. http599shodhganga.inflibnet.ac.in9bitstream91<391A91AOchapterP0<4.pdf
!7
A$$endi3 Questionnaire De are the students of S 6hons7 #anagement from IS and carrying out a study that what students e!pect and how they perceive service quality of
McDonald’s. De request you to fill the
questionnaire with relevant answers . hank you. he questionnaire is in two parts, e!pectations and e!perience. De!o"ra$hic Euestions
/ender5
#ale
ge5
&emale
1?-04
$epartment
0>-A<
OOOOOOOOOOOOOOOOOO
(evel of *ducation5
'ndergraduate
#asters
:thers
Cow much do you spend in restaurants monthlyE < M 1<<<%B+
1<<1 M 0<<<%B+
0<<1 M A<<<%B+
above A<<<%B+
Nou should rank each statement as follows8 strongly $isagreeQ1, disagreeQ0, JeutralQA, greeQ4, Strongly gree Q>, %ut a cross 6R7 on your choice of answer.
.3$ectations+ his section deals with your opinion of restaurants. %lease, show the e!tent to which you think restaurants Lshould’ possess the following features. De are interested in knowing your e!pectations from ideal restaurants service.
'tate!ent
s 1. Ideal restaurants should have modern equipment. e l b i 0. heir physical facilities 6shelves, counters, fridges, g n computers, lights7 should be visually appealing. a T A. heir employees should be well dressed and appear
'cores
1
0
A
4
>
1
0
A
4
>
1
0
A
4
>
!1 neat. 4. he physical environment of the restaurants should
1
0
A
4
>
1
0
A
4
>
1
0
A
4
>
1
0
A
4
>
+(4. hey should keep their records accurately.
1
0
A
4
>
+J1. *mployees should make information easily
1
0
A
4
>
1
0
A
4
>
1
0
A
4
>
1
0
A
4
>
1
0
A
4
>
1
0
A
4
>
A. heir employees should be polite.
1
0
A
4
>
4. *mployees of restaurants should have the knowledge
1
0
A
4
>
1
0
A
4
>
1
0
A
4
>
be clean.
) +(1. Dhen a customer has a problem, restaurants should L R ( show a sincere interest in solving it.
y t i l i +(0. +estaurants should perform the service right the b a first time. i l e R +(A. hey should provide their services at the time they promise to do so.
) N R ( s s e n e v i s n o p s e R
obtainable by the customers. +J0. *mployees should give prompt service to customers. +JA. *mployees should always be willing to help customers. +J4. *mployees in restaurants should never be too busy to respond to customersH requests.
e 1. he behavior of employees in restaurants should c n instill confidence in customers a r u s 0. )ustomers should be able to feel safe in their s A transactions with employees in the restaurants.
to answer customers’ questions.
y *1. +estaurants should give customers individual ! t a attention. p m *0. heir operating hours should be convenient to all their customers.
!2 *A. hey should have their customersH best interest at
1
0
A
4
>
1
0
A
4
>
1
0
A
4
>
heart.
t %1. +estaurants should have enough variety of products c u d o r " %0. he products in restaurants should be of good quality
Actual .3$erience+ he following statements deal with the perceptions of service e!perienced in restaurants. %lease, show the e!tent to which these statements reflect your perception of service in restaurants in %akistan. Strongly $isagreeQ<1 to Strongly gree Q>, %ut a cross 6R7 on your choice of answer.
'tate!ent
s 1. +estaurants have up-to-date equipment. e l b i 0. %hysical facilities 6like shelves, fridges7 are g n visually appealing a T A. *mployees are well dressed and appear neat
) 4. he physical environment of the restaurants is L R ( clean
y t i +(1. Dhen a customer has a problem, they show a l i b sincere interest in solving it a i l e R
scores
1
0
A
4
>
1
0
A
4
>
1
0
A
4
>
1
0
A
4
>
1
0
A
4
>
