Consumer Perception With Regards To McDonald's

Consumer preference with respect to Quick Service Restaurant (McDonalds) in Bangalore North
RI MS, Bangalore Page 1

1. INTRODUCTION

Exhibit 1.1 McDonalds Restaurant at California
McDonalds is a leader in convenient foods and beverages, with revenues
of about $23 billion and over 1.6 million employees serving the
customers world wide. The company consists of the snack business of
Beverages and Foods. PepsiCo brands are available in nearly 115
countries having more than 24,500 restaurants in the world providing
24 hour service. Having about 1 billon customers to be served all over the
world
McDonaldss success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high integrity of
the people working in McDonalds. McDonalds is continuing to expand
and introduce new alternative beverages in the market. Approximately
85% of McDonalds restaurant businesses world-wide are owned and
operated by franchisees .All franchisees are independent, full-time


operators. McDonalds was named Entrepreneurs Number-one franchise
for 1997.
The mission of McDonalds is to be the world's premier Consumer
Products Company focused on convenient foods and beverages.
McDonalds products are recognized and are most respected all around
the globe. Currently, its divisions operate in all over the world in
beverages, snack foods, and restaurants. The corporations increasing
success has been based on high standards of performance, marketing
strategies, competitiveness, determination, commitment, and the
personal and professional integrity of their people, products and business
practices. McDonalds believes their success depends upon the quality and
value of their products by providing a safe, whole some, economically
efficient and a healthy environment for their customers; and by
providing a fair return to their investors while maintaining the highest
standards of integrity.

1.1 HISTORICAL BACKGROUND OF MCDONALDS
McDonalds is one of the leading restaurant chains in the world,
touching the lives of people everyday. The long journey of the burger
brand started in 1940, when two brothers, Dick and Mac McDonald
opened the first McDonalds restaurant in San Bernardino, California.


Initially, they owned a hotdog stand, but after establishing the
restaurant they served around 25items, which were mostly barbequed.
It became a popular and profitable teen hangout. In 1948, the
brothers closed and reopened the restaurant to sell only hamburgers,
milkshakes and French fries.
As per the information of the McDonalds history, the major revenue
came from hamburgers, which were sold at a nominal price of 15
cents. The restaurant gradually became famous and the McDonald
brothers begin franchising their restaurant in the year 1953. The first
franchise was taken by Neil Fox and under it; the second Mc Donalds
restaurant was opened in Fresno, California. It was the first to
introduce the Golden Arch design. The third and fourth restaurants
were opened in Saginaw, Michigan and Downey, California,
respectively.
The business began in 1940, with a restaurant opened by siblings Dick
and Mac McDonald in San Bernardino, California. Their introduction of
the "Speedee Service System" in1948 established the principles of the
modern fast-food restaurant. The original mascot of McDonald's was a
man with a chef's hat on top of a hamburger shaped head whose name
was Speedee. Speedee was eventually replaced with Ronald
McDonald in 1963.


The present corporation dates its founding to the opening of a
franchised restaurant by Ray Kroc, in Des Plaines, Illinois on April 15,
1955, the ninth McDonalds restaurant overall. Kroc later purchased
the McDonald brothers equity in the company and led its world wide
expansion and the company became listed on the public stock markets
in 1965. Kroc was also noted for aggressive business practices,
compelling the McDonald brother have to leave the fast food industry.
The McDonalds Brothers and Kroc feuded over control of the business,
as documented in both Krocs autobiography and in the McDonald
brothers autobiography. The site of the McDonald brothers original
restaurant is now a monument.
With the expansion of McDonalds into many international markets,
the company has become a symbol of globalization and the spread of
the American way of life. Its prominence has also made it a frequent
topic of public debates about obesity, corporate ethics and consumer
responsibility.

1.2 Timeline
1955 Ray Kroc opens his first restaurant in Des Plaines, Illinois and
the McDonalds Corporation is created.
1957 Quality, Service, Cleanliness and Value (QSC&V) becomes the
company motto.


1959 The 100
th
McDonalds open in Chicago.
1961 - Hamburger University opens in Elk Grove, near Chicago.
1963 One Billion hamburgers sold. Ronald Mc Donald makes his
debut.
1964 Filet - O- Fish sandwich is introduced.
1965 Mc Donalds Cooperation goes public.
1967 The first restaurant outside of the USA open in Canada and
Puerto Rico.
1968 The Big Mac is introduced. The 1000
th
restaurant opens in
Des Plaines, Illinois.
1972 A new Mc Donalds restaurants open every day. The quarter
Pounder is introduced.
1973 Egg Mc Muffin is introduced.
1974 The first Ronald Mc Donald House opens in Philadelphia. The
Happy Meal is launched.
1983 - Chicken Mc Nuggets is introduced. 50 billionth hamburgers
sold.
1984 Ronald MC Donald childrens charities is founded in Ray Krocs
memory to raise funds in support of child welfare.
1989 McDonalds is listed on the Frankfurt, Munich, Paris and
Tokyo stock exchanges.


1990 Mc Donalds open in Pushkin Square and Gorky Streets
Moscow.
1993 The fist Mc Donalds at sea opens abroad the Silja Europe, the
worlds largest ferry sailing between Stockholm and Helsinki,
1994 Restaurants open in Bahrain, Bulgaria, Egypt, Kuwait, Latvia,
Oman, New Caledonia, Toinidad and United Arab Emirates,
bringing the total to over 15,000 in 79 countries.
1996 Mc Donalds opens in India the 95
th
country.
The first McDonald's restaurant opened on Oct. 13, at Basant
Lok, Vasant Vihar, New Delhi. It was also the first McDonald's
restaurant in the world not serving beef.
1997 - The first Drive - Thru restaurant at Noida (UP). The first
disabled friendly store at Noida (UP)
1999 - The first Mall location restaurant at Ansal Plaza (New Delhi)
2000 - The first highway restaurant at Mathura (UP)
2001 - The first thematic restaurant at Connaught Place (New Delhi)
2002 - The first restaurant in a food court at 3C's, Lajpat Nagar
(New Delhi). The first restaurant at the Delhi Metro Station at Inter
State Bus Terminus. The first annual fund raiser in association with
ORBIS and Dr.Shroff's Charity Eye Hospital.(Delhi)


2003 - The first Dessert Kiosk - Faridabad (Haryana)
2003-04 - Indigenous products like McAloo Tikki, McVeggie and
Pizza McPuff exported to Middle East countries.
2004 - McDonald's Delivery Service (McDeliveryTM) introduced in
New Delhi.
2006 - McDelivery on Bicycles flagged off at Chandni Chowk (Delhi)-
another first initiative by McDonald's India100th McDonald's
Restaurant in India10 Year Anniversary.
2007 - The first Restaurant opened in the Eastern Region at Park
Street,Kolkata (West Bengal)The first Restaurant opened at
Airport.(Domestic Airport, NewDelhi.

Exhibit 1.2 Ray Kroc (Founder)


2. COMPANY OVERVIEW
Headquarters
The McDonald's headquarters complex, McDonald's Plaza, is located
in Oak Brook, Illinois. It sits on the site of the former headquarters and
stabling area of Paul Butler, the founder of Oak Brook.
[10]
McDonald's
moved into the Oak Brook facility from an office within the Chicago
Loop in 1971.
Founder(s)
Richard and Maurice McDonald, McDonald's restaurant concept;Ray
Kroc, McDonald's Corporation founder.
Key People
Andrew J. McKenna (Chairman)
Don Thompson (President and CEO)

Exhibit 1.3 McDonalds Plaza, Oak Brook, Illinois



3. MCDONALDS INDIA AT A GLANCE
The golden arches of McDonalds are slowly becoming an integral part of
the Indian landscapes. Everyone knows McDonalds is big, but very few
know just how significant its impact on Indian business really is.
Grand Opening; McDonalds opened its doors in India, the 95
th

country;in 1996 and was the first country to serve non-beef and
non-pork items. Its authority on non-beef and non-pork products
still remains unchallenged. Ever since then, the family restaurants
in Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur,
Noida Faridabad, Doraha, Manesar and Gurgaon have proceeded to
demonstrate, much to the delight of all the customers, what the
McDonald's experience is all about.
Ownership; McDonalds India is locally owned company managed by
Indians in a 50-50 joint venture partnership between McDonalds
Corporation[USA] and two Indians businessmen.
- Connaught Plaza Restaurants Pvt. Ltd in Northern and
Eastern Region (Headquartered in New Delhi) through a joint
venture; now managed by its Board of Directors.
- Smita Jatia, under Hardcastle Restaurants Pvt. Ltd in the
Western and Southern Region (Headquartered in Mumbai)
which is a DL (Development License)


McDonalds Philosophy; McDonalds philosophy of QSCV (Quality,
Service, Cleanliness and Value) is the guiding force behind its service
to the customers in India.
Today; Celebrating over 15 years of leadership in food service
retailing in India, McDonald's India now has a network of over 250
restaurants across the country. McDonald's India is a leader in the
food retail space, with a presence of more than 250 restaurants
serving more than 6.5 lakh customers daily in India.
Every McDonalds burger has nine different ingredients, which are
sourced, from 35 suppliers across the country before it reaches the
consumer.

3.1 McDonalds India.Culturally Sensitive
McDonalds worldwide is well known for the high degree of respect for
the local customs and culture. McDonalds has developed a menu
especially for India with vegetarian selections to suit Indian tastes and
preferences. Keeping in line with this, McDonald's does not offer any beef
or pork items in India. In the last decade it has introduced some
vegetarian and non-vegetarian products with local flavours that have
appealed to the Indian palate. There have been continuous efforts to
enhance variety in the menu by developing more such products.


McDonald's has also re-engineered its operations repeatedly in its11
years in India to address the special requirements of a vegetarian menu.
Vegetable products are 100% vegetarian, i.e.
They are prepared separately, using dedicated equipment and
utensils.
Only pure vegetarian oil is used as a cooking medium.
Cheese and sauces are completely vegetarian and egg less.
Separation of vegetarian and non-vegetarian food products is
maintained throughout the various stages of procurement,
cooking and serving.
3.2 International Standards
McDonald's India's local suppliers provide them with the highest quality,
freshest ingredients. Complete adherence to the Indian Government
regulations on food, health and hygiene is ensured, while maintaining
their own recognized international standards. Fast, friendly service - the
hallmark of McDonald's restaurants the world over is the mantra we
abide them.
Stringent cleaning standards ensure that all tables, chairs, highchairs and
trays are sanitised several times each hour. Such meticulous attention to


cleanliness extends beyond the lobby and kitchen to even the pavement
and immediate areas outside the restaurant.
3.3 McD Philosophy
"We take the burger business more seriously than anyone else." When
McDonald's founder, Ray Kroc made that memorable statement, he was
letting the world in on the philosophy and secret behind McDonald's
phenomenal success.
Their vision to be Indias "best" quick service restaurant experience is
supported by a set of principles and core values.

3.4 Bangalore North
In Bangalore north it serves in 8 places; New BEL Road, HSR
Layout, Orion Mall (Yeshwanthpur), Tumkur Road (Peenya
Industries), Esteem Mall (Hebbal), HRBR Layout (Kamannahalli),
Banaswadi, New Airport Road.
McDonalds is a chain of Fast Food Restaurants and has about 39
outlets in Bangalore. It is primarily known for its dishes like Masala
Grill Veg Meal, Masala Grill Chicken Meal etc. Apart from Fast Food
cuisine, it also offers other cuisines such as American and Desserts.



The items that they sell in Bangalore North;
- McSpicy Chicken - Big Spicy Chicken wrap
- McSpicy Paneer - McChicken
- Fliet-O-Fish - Chicken Maharaja Mac
- McVeggie - Big Spicy Paneer Wrap
- Masala Grill Chicken - Masala Grill Veg
- Chicken McGrill - McAloo Tikki
- McEgg - Chicken McNuggets
- Crispy Veggie Pops - Crispy Chicken Pops
- French Fries - Piri Piri Mix
- Desserts - Coke
Soft Serve
Chocolate Brownie
Mc Flurry
Mc Shakes
Coke Floats
As McDonalds is giving a tough competition to the restaurants
present. Total of 1100 restaurants are present in North Bangalore
out of which; Delivery 602, Dine-Out 981, Night life 17
and Caf 61.
Mostly in nort Bangalore the cuisines offered are; Hyderabadi
Biryani, Chicken Ghee Roast with Neer dosa, Mutton Biryani.


3.5 McDonalds Products










Exhibit 3.1 McDonalds Products


4. MCDONALDS MISSION AND VISION
4.1 McDonalds Vision
McDonald's vision is to be the world's best quick service restaurant
experience. Being the best means providing outstanding quality, service,
cleanliness and value, so that they make every customer in every
restaurant smile. To achieve their vision, they are focused on three
worldwide strategies:
1-Be the Best Employer:
Be the best employer for their people in each community around the
world.
2-Deliver Operational Excellence:
Deliver operational excellence to their customers in each of their
restaurants.
3-Achieve Enduring Profitable Growth:
Achieve enduring profitable growth by expanding the brand and
leveraging the strengths of McDonald's system through innovation and
technology.



4.2 McDonalds Mission Statement
McDonald's brand mission is to be our customers' favourite place and
way to eat and drink. Our worldwide operations are aligned around a
global strategy called the Plan to Win, which centre on an exceptional
customer experience People, Products, Place, Price and Promotion. We
are committed to continuously improving our operations and enhancing
our customers' experience
4.3 Objectives
We are the worlds favorite restaurant because we give
customers what they want great food and great
experience.
McDonald's objective is to attain QSCV at all of its restaurants, where:
Q is Quality
S is Service
C is Cleanliness
V is Value
Quality
Quality standards regarding each and every aspect of food and service
are documented, to provide consistency and to achieve the high level of
quality at all the McDonald's restaurants. It is due to documentation that
a consumer will get the same taste from a McDonald's whether he is in
New York or Moscow or in India.


The raw materials acquired are required to pass a stringent specification
test about factors from the freshness to vitamins contained in them.
Then there is documented recipe and cooking requirement regarding
utensils to temperature.
Service
At McDonald's everyone serves quickly with a smile. There is less than a
minute the time the customer orders and the food served to him. If
somebody has any problem, it must be sorted before coming to the
counter. It is the McDonald's culture that the customer is doing them a
favour by being there and not the staff so he should be received and
returned this feeling the same way.
Cleanliness
McDonald's is cleanliness fanatic. There is even a joke that explains
McDonald's philosophy that, If there is the time to lean then there is
time to clean.
The restaurant is thoroughly cleaned and sanitized after the closure, the
cooking utensils are disassembled every night for washing and then
reassembled, and the floors, washrooms, etc. are cleaned every half
hourly during the restaurant timing.


Value
McDonald's has an open-door culture; any employee can go to the
Restaurant Manager and can discuss any problem or new ideas for the
improvement of the restaurant. Nobody has any hang-ups; everybody
does everything.
McDonald's also believes in value to the customer, that is, why prices are
value oriented as Amin Mohammad Lakhani put it in his word;
nothing sells forever unless it is value for money.
4.4 McDonalds Services
It maintains Cost Leadership, i.e the firm provides the same or
similar services or products as other firms but does so at a lower
price.
It provides superior products at a similar cost to other firms
inferior products.
Customization of items.
Quick service facility
Same taste throughout.
It provides meals specially for kids
Hangout with friends, but keep it affordable
-


5. LITERATURE REVIEW
A review of literature involves a systematic identification, location,
scrutinizing and summary of written materials, containing information
on research problems. According to Polit and Beck a review of literature
is a written summary of existing knowledge on a research problem. In
depth study of any subject involves a systematic review and appraisal of
all the relevant scholarly literature and a specific topic. Literature related
to the consumer preference with respect to Quick Service Restaurants
with special reference to McDonalds are presented under the following
categories.
Literature and studies related to the consumption of fast food in
India.
Literature and Studies related to the lifestyle of people in India.
Literature and studies related to the preference of consumers.
Food diversity in India is an implicit characteristic of Indias diversified
culture consisting of different regions and states within. Traditionally,
Indians like to have home-cooked meals a concept supported religiously
as well as individually. However, with times due to increasing awareness
and influence of western culture, there is a slight shift in food
consumption patterns among urban Indian families. It started with
eating outside and moved on to accepting a wide variety of delicacies


from world-over. Liberalization of the Indian economy in the early
1990s and the subsequent entry of new players set a significant change
in lifestyles and the food tastes of Indians. Fast food is one which gained
acceptance of Indian palate after the multinational fast food players
adapted the basic Indian food requirements viz. vegetarian meals and
selected non-vegetarian options excluding beef and pork totally from
their menu. Multinational fast food outlets initially faced protests and
non-acceptance from Indian consumers. This was due to primary
perception that these fast food players serve only chicken and do not
serve vegetarian meals. In addition, fast food is perceived expensive
besides being out-of-way meals in Indian culture. Today, fast food
industry is getting adapted to Indian food requirements and is growing
in India. It is gaining acceptance primarily from Indian youth and
younger generations and is becoming part of life. Keeping in view the
Indian habits and changing preferences towards food consumption, this
study has its focus to understand the factors affecting the perception of
Indian youth, in the age group of 20-30 years, towards consumption of
fast food as well as towards making choice of fast food outlets.
Often you just think about fast food, and you would start salivating, this
show how big impact the media mass influence our mind regarding the
deliciousness of fast food. Everyone including adolescences seems to be


enjoying it every chance they get. Fast foods are very appealing because
they are widely available and inexpensive. The usefulness of fast food
consumption and convenience of this phenomenon had made people
becoming depended on its function without realizing the possible effect or
dangerous that it could affect human health, financial and also lifestyle in
daily life.
In our research, one of major question that need to investigate is
related to factors that influences customers to consume fast food. There
are few factors that may influence factor to consume fast food such as
based on the emotional, economic, time management and lifestyle. By
using previously research, some factors may determine and be as
parameter to conduct other our research.
On one hand, Herman and Polivy, (1984) contradicts/protests
and emphasizes that the factor that influence of fast food consumption
based on residential areas. He observed that people who stay at the rural
areas are less consumed of fast food rather than people who stay at
urban area because urban/town residential areas are nearer by the fast
food restaurants. On the other hand, Drewnowski and Spectre,
(2000)contends that another factor that may influence consumption of
fast food is by socioeconomic status. There have totally difference between
people who have high wages with people who is have low wages in their


life. Usually people who have low economic status, they more prefer to
choose food that something not has high nutrition, but more reasonable
and inexpensive price while wealthy person they prefer to choose branded
restaurants rather than realized the ingredients and nutrients contain in
the food.
Schlosser E. (2001) pointed out the most frequently reported
reasons for eating at fast-food restaurants were fast food is quick serve.
Laroche and Parsa (2000) agree with the Schlosser E and say that
people decide to choose fast food restaurant because they were worried
about time. To prepare homemade food, it may take much of time to
cook and serve it compared with taking fast food. Fast food restaurant
include a wide range of quick and fast service, brands and take only
short period to serve it. Consumer make their choice of brands in multi
brand situation is one of least understood yet important phenomenon in
the marketing of Quick Service Restaurant - Fast Food Restaurant.
French SA et al. (2001) summarizes this by saying some people have
other reason why they choose fast food restaurant as their primary
chosen to eat, because it is way to them spent their time with family,
friend or someone special. By along with eating at fast food restaurant
because they are quick and easy to get to, and also as a way of socializing
with friends and family.


The liberalisation and globalisation of the industries backed by the
government in 1991 was also one of the reasons for the development of
the fast food industry as number of international retailers entered the
market thereafter. The major international players including Kentucky
Fried Chicken, McDonalds, Pizza Hit, Dominos entered the Indian market
in the last decade. Kumar and Basu (2008) stated that during evolution
in the presence of overseas companies in the market, the domestic
players too changed their business strategies in terms of offering new
menus at revised prices and many other service including entertainment,
change in store formats, opening of stores at a number of locations and
moreover providing food and services with the influence of western
culture.
The Indian fast food habits and the customer perception towards fast
food has noticed gradual shift in the recent years as the significant
portion of the population spent more money on eating fast food from the
domestic and international retailers in the market. The sector was once
unnoticed and merely had any existence in the food and hospitality
industry but recent findings suggested that there is huge potential in the
sector as the growth rate was recorded above 30% in the recent years
(Ali et al. 2010).



5.1 LITERATURE AND STUDIES RELATED TO THE
CONSUMPTION OF FAST FOOD IN INDIA
Fast food
From onion rings to double cheeseburgers, fast food is one of the worlds
fastest growing food types. Fast foods are quick, reasonably priced, and
readily available alternatives to home cooked food. While convenient and
economical for a busy lifestyle, fast foods are typically high in calories,
fat, saturated fat, sugar, and salt[1]. Many other definitions are
proposed for fast foods in the literature. A few of these are mentioned
below:
. Definition 1. Fast food have been defined by Bender and Bender (1995)
as a general term used for a limited menu of foods that lend themselves
to production-line techniques; suppliers tend to specialize in products
such as hamburgers, pizzas, chicken, or sandwiches.
. Definition 2. In Data Monitors (2005) survey the fast food market is
defined as the sale of food and drinks for immediate consumption either
on the premises or in designated eating areas shared with other
foodservice operators, or for consumption elsewhere.


.Definition 3[2]. As per the free dictionary fast food is inexpensive
food, such as hamburgers and fried chicken, prepared and served
quickly.
. Definition 4[3]. According to Merriam-Webster online dictionary fast
food is designed for ready availability, use, or consumption and with
little consideration given to quality or significance.
Fast food is a very fast growing industry in world as well as in India
especially in urban areas (small and large cities). However, not much
research literature is available on fast food preferences of consumers
especially young consumers in India. This article that is based on an
exploratory study is an effort to fill that gap in the literature in the
context of North India
Fast food also known as Quick Service Restaurant or QSR is the term
given to food that can be prepared and served very quickly. While any
meal with low preparation time can be considered to be fast food,
typically the term refers to food sold in a restaurant or store with
preheated or precooked ingredients, and served to the customer in a
packaged form for take-out/take-away.
The term fast food was recognized in a dictionary by Merriam-
Webster in 1951. Outlets may be stands or kiosks, which may provide no
shelter or seating, or fast food restaurants also known as quick service


restaurants. Franchise operations which are part of restaurant chains
have standardized foodstuffs shipped to each restaurant from central
locations. Restaurants with much higher sit-in ratios, where customers
tend to sit and have their orders brought to them in a seemingly more
upscale atmosphere may be known in some areas as fast casual
restaurants.
Today world is very fast paced and is getting even faster by the
minute. Fast-food nutrition makes it possible to keep up with this speed-
of-sound lifestyle. A lot of people lead busy lifestyles. The main function is
to give fast food is to give someone a quick and easy fix or alternative to
cooking at home when they are need of something to eat in a hurry.
Another function of fast food is to give people a good bang for their buck.
It is rather inexpensive and portions are more than sufficient.
A study on Socio-cultural and Nutritional Aspects of Fast Food
Consumption among Teenagers and Youth was conducted during March
to June 2003 in Allahabad City of Uttar Pradesh, India. Samples from
four restaurants were selected by stratified random sampling technique.
Within each selected restaurant a sample of minimum 30 fast food
consumers aged 15-25 years was selected by systematic sampling
technique on a randomly selected day that was not a special occasion
such as fast or festival. The researcher concluded that majority of fast


food consumers (68.3%) belonged to age group of 18-21 years. 30% of
Adults are less conscious about their health. Majority 80% of adults like
to have a fast food in their areas where they live.

5.2 LITERATURE AND STUDIES RELATED TO THE LIFESTYLE
OF PEOPLE IN INDIA
With todays hectic lifestyles, timesaving products are increasingly in
demand. Perhaps one of the most obvious examples is fast food. The rate
of growth in consumer expenditures on fast food has led most other
segments of the food-away-from home market for much of the last two
decades. Since 1982, there is growth rate in consumer spending at fast
food.
Now people want quick and convenient meals, they do not want to
spend a lot of time preparing meals, travelling to pick up meals or
waiting for meals in restaurants. That result, consumers rely on fast food.
Knowing this fast food providers are coming up with new ways to
market their products that save time for consumers. The rapid rate at
which the fast food industry continues to add outlets is as much a
reflection of consumer demand for convenience as it is a reflection of
demand for fast food itself. Expanding the number of outlets increases
accessibility, thus making it more convenient for consumers to purchase


fast food. Rising incomes, longer workdays, and a growing tendency for
both spouses to hold full-time jobs are widely credited. This trend rise in
a way from home expenditures to fast food especially benefits from these
trends. The fast food industry focuses heavily on rapid consumer
turnover, speed of service, and take-out sales. Most fast food chains
emphasize convenience and low prices by offering a narrow range of
menu items. In the fast food industry, the critical success factors are:
Location, Menu, Price, Ambience, Taste, Quality, and Service.
The food intake of the people of any country is related to a
number of factors like income of consumers, employment status,
educational level and cultural differences (Dowler, 2001). Due to global
change the lifestyles of people change gradually, they spend more money
on fast food rather than spending on higher education, computers, books,
magazines, newspapers, videos and recorded music (Schlosser, 1998).
Fast foods have been defined by Bender and Bender (1995) as Fast food
is broad term used for a restricted menu of food that lend themselves to
production techniques, suppliers tend to specialize such as hamburger,
pizza, chicken and sandwiches. Definition of the fast food in a book by
Lundberg is Fast food means quick service- the food already prepared
and held limited menu items and no table service (Lundberg, 1984).
The sheer size of the fast food enterprise guarantees that it has a


considerable influence on the eating habits of large segments of the
population.
The use of technology has increased the growth of the fast food
industry, as McDonalds has increased their budget for the TV
advertisements, and as result led to increase in the sale (Harris, Schwartz
et al. 2010). Poultry meat (One of the key ingredients used in the fast
food industry) quality assurance is the very key and primary issue for the
fast food industry. Fast food has a large social effect on the life of the
people; it is found to be the one of the most important factor in the
increasing obesity rate in the young generation (Bowman, Gortmaker et
al. 2004). Due to the advancement in the technology the fast food is now
available at more convenient places and at the more convenient price.
The industry is increasing at a rapid rate; it is also producing consequent
impact on the social, political, economical aspects of the life.

5.3 LITERATURE AND STUDIES RELATED TO THE
PREFERENCE OF CONSUMERS
An exploratory study on Consumer perception about fast food in
Bangalore in India was conducted. The study was to estimate importance
of various factors affecting the choice of fast food outlets by Indian young
consumers. The study applied multivariate statistical tools to estimate


importance of various factors affecting the choice of fast food outlets by
Indian young consumers. Results indicated that the young India consumer
has passion for visiting fast food outlets for fun and change; they have
the highest value for taste and including quality nutritional values
followed by ambience and hygiene.
In todays world of competitive offerings, diversity of consumer
preferences and proliferation of brands, consumer behaviour has become
extremely important for marketing decisions, be it marketing mix
elements, segmentation changes or exploring new dimensions in
consumer behaviour in a changing environment.
1

It is expected that consumer preferences are formed towards
certain brands early in childhood and result in adult loyalty. This is
especially relevant in a market scenario like that of the Indian Market
where there were only few brands before the markets were opened up
for competition about fifteen years ago.
McDonald as a brand named after their founders have succeeded even
though they did not hold out a benefit. Salient attributes in a product
category are recalled better. Hence marketers need to research on them
for a given target segment for consumers. This depend on the goal of

1
S.Ramesh Kumar, Consumer Behavior and Branding


consumers have while choosing a product service. McDonald, the world
over, is associated with fast food, good value, convenience and hygiene.
McDonalds decided not to use Ronald McDonald in its
advertisements for the West Asian market because it failed religious
consumers may avoid the trendy and zany model
Differences across cultures have a number of implications for the
marketer. McDonald, in India, does not use beef in some of the popular
items on its menu as cows are sacred to a large section of Indian
consumers.
From foods and cosmetics to durable products like automobile and
watches, consumers employ emblems to reflect their social status to infer
the status of others. Fast food and trendy restaurants like McDonald,
Pizza Hut are associated with the young and the fashionable.
Involvement in work: Contemporary consumers now break away
from traditional work practices and are involved in high-tension, fast-
paced jobs. The experience time pressure and hence prefer time-
compression or convenience products. A variety of retail outlets across
product categories have emerged in the context, fast food restaurants
like McDonald in petrol bunks are one of the example.
2

2
S. Ramesh Kumar, Consumer Behavior and Branding


Another aspect to consider is the various dimensions that a specific
consumer segment might be interested in, when it comes to a retail
outlet. There may be few situations in which the retail outlet may cater
to a broad segment. This happens when an outlet, as a brand, appeals to
a big segment. A typical example is of McDonald outlets all over the
world. McDonald is known all over the world for its VALUE,
CLEANLINESS, CONSISYTENCY and CONVENIENCE. These expectations
have been built over a period of time, and hence, it draws consumers
from all income, age and life style groups. The brand, even today offers a
variety, which appeals to distinctive segments.
There may also be psychological factors like trust, peace of mind,
reassurance and risk reduction, which may have a pronounced impact on
brand loyalty. The consistency associated with the benefits of repeat
purchase may also be contributed to psychological factors associated with
the loyalty. A consumer who consistently gets good food and positive
experience at a McDonalds outlet becomes loyal to the brand and may
patronise the brand in several countries.



5.4 FACTORS INFLUENCING CONSUMER BEHAVIOUR
Consumer behaviour is the study of how individuals, groups and
organizations select, buy, use and dispose of goods, services, ideas, or
experiences to satisfy their needs and wants.
3

A consumers buying behaviour is influenced by cultural, social and
personal factors. Cultural factors exert the broadest and deepest influence

Exhibit 5.1 Factors Influencing Consumer Behaviour
While making a decision to visit McDonalds all these factors play an
important role and influences their decision making.

3
Kotler, Keller,Koshi and Jha, Marketing Management


a) CULTURE
Culture, subculture and social class are particularly important
influences on consumer buying behaviour. Culture is the
fundamental determinant of a persons wants and behaviour. The
growing child acquires a set of values, perceptions, preferences and
behaviours through his or her family and other key institutions. A
person residing in United States would not hesitate in eating beef
and pork burgers offered by McDonalds but a person in India
would not prefer eating beef and pork products because thats
against their cultural values.
Each culture consists of smaller subcultures that provide more
specific identification and socialization for their members.
Subcultures include nationalities, religions, racial groups and
geographical regions.
Social classes are relatively homogeneous and enduring divisions in a
society, which are hierarchically ordered and whose members share
similar values, interests and behaviours.
4

b) SOCIAL FACTORS
A persons reference groups are all the groups that have a direct
(face-to-face) or indirect influence on their attitude and behaviour.
Some of these are primary groups with whom the person interacts

4


fairly continuously and informally, such as friends, family,
neighbours and co-workers and secondary groups such as religious,
professional and trade union groups which tend to be more formal.
Family is the most important consumer buying organization in
society, and family members constitute the most influential
primary reference group. Family can be sub-divided into two
parts- The Family Of Orientation consist of parents and siblings
from whom a person acquires an orientation towards religion,
economics and sense of personal ambition, self-worth and love. A
more direct influence on everyday buying behaviour is the Family of
Procreation- namely ones spouse and children.
c) PERSONAL FACTORS
A buyers decisions are also influenced by personal characteristic.
Age and stage in the life cycle People buy different goods and
services over a lifetime. Taste in food, clothes, furniture and
recreation is often age related. For instance, youngsters mostly
prefer going to McDonalds because of their eating habits.
5

Occupation and Economic Circumstances Occupation also influences
consumption patterns. Product choice is greatly affected by
economic circumstances: spendable income (level, stability and time

5


pattern) savings and assets (including the percentage that is liquid),
debts, borrowing power, and attitudes toward spending and saving.
Personality and Self-Concept Each person has personality
characteristics that influence his or her buying behaviour.
Personality means a set of distinguishing human psychological traits
that leads to relatively consistent and enduring responses to
environmental stimuli (including buying behaviour). it is often
described in terms of traits as self-confidence, dominance,
autonomy, deference, sociability, defensiveness and adaptability.
Lifestyle and Values People from the same subculture, social class
and occupation may lead different lifestyles.
A lifestyle is a persons pattern of living in the world as expressed
in activities, interests and opinions. it portrays a whole person
interacting with his environment.
d) PSYCHOLOGICAL FACTORS
Perception is the process by which we select, organize and interpret
information inputs to create a meaningful picture of the world. In
marketing, perceptions are more important than the reality, as it
is perceptions that will affect consumers actual behaviour. People
can emerge with different perceptions of the same object.
Learning includes changes in our behaviour arising from experience.
Most human behaviour is learned, although much learning is


incidental. Learning theorists believe that learning is produced
through the interplay of drives, stimuli, cues, responses and
reinforcements.
Memory All the information and experiences we encounter as we
go through life can end up in our long- term memory. Cognitive
psychologists distinguish among Short-term memory- a temporary
and limited repository of information and Long-term memory- a
more permanent, essentially unlimited repository.
6

5.5 MCDONALDS PRICING REMINISCES MEMORY
Marketers sometimes use nostalgia to drive a point. In a price sensitive
market like India, McDonalds has been focusing on the price point very
aggressively. One of the platforms through which it emphasizes the price
point is the throwback days of reduced prices. The range of products it
offers like, Burgers, Ice-cream, Drinks, McPuff, etc. all at the rupees 20
price point. This reinforced through the series of advertisements,
commercials and in-store publicity that the company deploys to highlight
the price platform.
A popular television commercial of a retired army officer who visits a
McDonald store and after listening to the prices of the burger; he is

6


quickly transformed to his active days and starts giving orders as if on a
battle field. He also takes out a photograph of his heydays when in the
service and the caption, Ho Gayi Purani Yaadein Tazaa, typifies the
days of the lower prices. In fact, what is even more synchronic about the
series are the link they finally establish to the global positioning of the
brand, Im Lovin It.
The McDonalds Happy Price Menu is also a part of their global plank,
with an adaptation in the communication. The series also has other such
related situations where yesteryears film stars are also showcased in their
popular characters (like a Dilip Kumar look alike in the garb of Salim) to
highlight the platform of Ho Gayi Purani Yaadein Tazaa.
The campaign has been successful in creating appeal in the urban youth
in the age group of 18-25 years. For the years it has a separate set of
communication promoting merchandise and toys, which is run
separately. In essence therefore the plank works successfully with the
bisection of consumers, who perceive McDonalds to be expensive and on
the other hand the youths in schools and colleges, eating out, can explore
McDonalds as an option.
Whats driving the popularity of nostalgia marketing? Consumers in
todays fast paced, information-intensive age are feeling overwhelmed by
the new and unfamiliar, which leaves them more receptive to familiar


products, songs and images. Reminders of familiar offerings can also
enhance brand awareness and brand knowledge because consumers
already have a rich storehouse of personal experiences associated with
these offerings in memory. Many of these memories reflect a quieter,
more peaceful time. Hearing the name of an old product, seeing an old
ad, or hearing an old jingle reminds consumers of their positive feelings
about this earlier time and generates positive attitudes towards both the
ad and the advertised brand.
7

Exhibit 5.2
McDonalds uses price points to push their products. The low pricing is a metaphor to
the golden days, when prices of all products were very low and a discerning customer is
forced to take a walk back on memory lane.

7
Hoyer, Maclnnis & Dasgupta, Consumer Behaviour


5.6 MCDONALDS INDIA: I AM LOVING IT
On McDonalds launch in India during 1996 its North Zone Managing
Director, Vikram Bakshi quoted on being asked whether the menu will be
altered to suit the Indian palette: We will surely take into consideration
the Indian requirements and the variety of vegetarian dishes will be part
of our regular course. Circa 2006 and according to Vikram Bakshi, it
was necessary to adapt the companys offerings while keeping the core
brand values consistent across cultures. The menu has evolved over the
years as a result of constant innovation and our customers needs, says
Bakshi. Local creations like McAloo Tikki Burger, Curry Pans, Wraps
Pizza, McPuff, and McVeggie are established departures from what we
had in our introductory restaurant offerings. Today 70% of our menu is
Indianised, and the McAloo Tikki Burger is our highest selling product.
While the menu maybe different in some ways, the McDonalds experience
around the world is consistent, offering quality, great service, cleanliness
and value.
The complete reversal of statement is not what Bakshi would have really
thought when McDonalds launched in India. The brand and the products
were familiar to most Indians but the platter it offered had to suit the
Indian taste. India is the worlds vegetarians paradise. Nearly all of the 1
billion people living here eat meat only occasionally, or not at all. Beef


never shows up on the menu. India is a home to Hindu religion, which
preaches non violence. Believers fear the karmic consequences of harming
other creatures. McDonalds is the only chain in India, which does not
serve beef and pork. Most menus are vegetarian and there are a few,
which have been developed suiting the Indian taste and palette.
The US based fast food giant, McDonalds success in India had been built
on 4 pillars: Limited menu, Fresh food, Fast service and Affordable price.
Intense competition and demand for a wider menu drive-through and
sit-down meals encouraged the fast food giants to customize product
variety without hampering the efficacy of its supply chain.
This example illustrates several diversity influences that affect consumer
behaviour. In a culturally heterogeneous market lie India, McDonalds
attempt to offer a unique platter that caters to a Pan India taste is
pioneering and focuses on how global companies can adapt themselves to
local needs and tastes. In the McDonalds example the attempt was not
just to offer a localised menu, but issues like fresh food, fast service and
affordable price were well addressed too. Finally, consumer behaviour can
vary among sub-groups of individuals with unique patters of ethnicity
and religion, due to different traditions, customs and preferences.
Clearly, to develop and implement effective marketing strategies and


tactics companies must understand how these diversity influences affect
consumers.
8

Exhibit 5.3 FOCUSING ON THE INDIAN PALETTE
McDonalds local creation like McAloo Tikki Burger, Curry Pans, Wraps
Pizza Mcpuff and McVeggie are a favourite with the consumers.

8
Hoyer, MacInnis & Dasgupta, Consumer Behaviour


6. CUSTOMER ANALYSIS
Segmentation
The customers of McDonalds have been segmented on the basis of AIOD
into four categories, based on the product attributes that fulfil needs like
fast food, ambience, status symbol and hygiene.

Activities Interests

Opinions

Demographics

1
Fast
Food
Student,
Working,
Adventurous,
Energetic
Sports,
Entertainment,
fashion, music,
Recreation
Influenced by
peer pressure,
Energetic,
Impulse buying
Age: 16-24
years old.
Marital status:
Single; Heavy
users

2
Ambience

Student,
working/selfmade
businessmen;
working on
projects.

Entertainment,
Recreation,
Fashion,
Music,
Socialization.
Ambitious,
Future
business and
social issues,
Politics.

Age: 20-35 yrs
old. Marital
status: Single
and Married.
Light to
medium users.

3
Status
Symbol

Student,
working;
Hanging out,
Adventurous.

Sports,
Entertainment
, Fashion,
Music,
Recreation.

Energetic,
Impulse
buying,
influenced by
peer pressure.

Age: 16-25 yrs
old. Marital
status: Single;
light to medium
users

4
Hygiene

Working
women/men,
house-wives;
Shopping,
Club
memberships.

Home,
Recreation,
shopping,
Fashion,

Planned
purchasing,
Authoritarian,
Strong views,
Politics,Future
business and
Social issues.

Age: 25-45 yrs
old; Marital
status: Newly
married, Full
Nest; Light
users



1) FAST FOOD:
This segment of customers enjoys the Quick Service Restaurant
(QSR) facet of McDonalds and has its needs fulfilled. Since
McDonalds competes rigorously in the market on the quick delivery
attribute, the customers expect their food to be delivered to them
fast, both at the outlet, and at home (home delivery). A large
majority of this segment is composed of students whose activities
are adventurous, enthusiastic, energetic, and recreational and
revolve around sports, clubs, hangouts and shopping etc. This
segment thus targets the market that indulges in impulse buying
and is influenced by peer-pressure. These customers are heavy user
of the product at hand. A minority of newly working people are
also included in this segment.

2) AMBIENCE:
This segment enjoys the unique ambience provided by McDonalds.
Since the regular consumers of this product belong to the upper-
middle class, they prefer having a meal with the level of customer
service and a tinge of sophistication that the outlets provide. The
customers of this segment are students as well as working class.
These people enjoy recreation and socialization activities. They have


strong views about the current affairs and the future business and
social issues.

3) STATUS SYMBOL:
The people of this segment perceive the use of this product as a
status symbol and basically comprise students and new-working
class. These customers like being seen at the right places and like to
associate and socialize with people of the same class. These
customers are enthusiastic about entertainment, fashion, music and
sports. They have fickle opinions and subject to change because of
peer pressure. They follow fads and indulge in impulse buying.

4) HYGIENE:
This segment comprises people who are concerned with hygiene
and how the food is prepared and served and also the cleanliness of
the environment where they eat. It comprises of middle-aged
people mostly housewives and working women/men. These are light
users and make purchases once in a while, probably as a substitute
rather than a first-choice.



7. RESEARCH METHODOLOGY
Research Methodology:
Research Methodology is a method to solve the research problem
systematically. It involves gathering data, use of statistical
techniques, interpretations, and drawing conclusions about the
research data. It is a blueprint, which is followed to complete the
study.
9

Research Methodology
7.1. Title of the study
Study on consumers preferences with respect to Quick Service
Restaurants [McDonalds] in Bangalore North.

7.2 Objective of the Research
The basic objective of this project is to study the reasons of
consumers preferences with respect to QSRs, to assess how
particular situations affects the purchasing decisions of the
consumers and to find out that the purchase decisions depend ob
the expectation and suggestion of others.

9
S.N Murthy, Business Research Methods


7.3 Statement of Problem
My dissertation is on the topic Consumer Preference towards
McDonalds. It talks about the fast food sector to which McDonalds
belongs and consumer satisfaction and preference towards
McDonalds outlets in Bangalore North.
As a part of the research work I am trying to understand the
customers satisfaction level and preference which can fulfil all the
customers needs, buying behaviour of people living in North
Bangalore.

7.4 Sources of Data
Primary sources: The primary data is collected through
questionnaires. They were filled using the scheduled
method of data collection by the researcher.

Focused Group: A FGD of 6 people was conducted. It consisted of
people between the ages of 25 35 with 3 males
and 3 females. The objective of the discussion was
to understand the attributes that the customers
of McDonalds products values and to know their
perceptions about various brands.



Secondary sources: The secondary sources were used only for
collecting information regarding the sample and
literature survey like Internet, Books, Journals,
newspaper etc.
7.5 Sampling Unit
Samples for the study consisted of youth segment and the middle-
aged that falls between 25 35 yrs. Convenience samples were
drawn from Bangalore North region among the college students
and office going people. It was a random selection of individuals
from a large number of customers at the fast food outlets. This
segment of population was selected due to their adoption of
modern lifestyle pattern inclined towards eating and socializing
with friends and family.

7.6 Sample Size
Since it is an exploratory study, a sample size of 120 thought to be
adequate one. Accordingly 120 respondents from the target
population were approached to fill in the questionnaire. Out of 120
only 100 respondents accepted McDonalds in Bangalore North.



7.7 Limitations of the Research
The limitations of the research were as follows:
1) Lack of proper experience on the part of the researcher in
conducting such studies in the past.
2) The time period for carrying out the research was short as a result
of which many facts have been left unexplored.
3) The area for study which is quite a large area to judge out the
consumer preferences
4) Only 120 respondents have been chosen which is a small number
to represent the whole of the population.
5) While collection of the data many consumers were unwilling to fill
the questionnaire.
6) Many of the respondents did not fill the questionnaire properly.
7) Method of sampling is chosen which seems not to be appropriate.

7.8 Tools Used:
Percentage Analysis;
Pie Charts



8. DATA ANALYSIS AND INTERPRETATION
1. What is your Gender? Male/Female

Gender

Particulars Respondents %age
Male 80 66.67
Female 40 33.33
Total 120 100.00
Table 8.1- REPRESENTATION OF GENDER

Figure 8.1- GENDER

Description: Based on the analysis of data it can be said that more
number of males visits McDonalds as compared to the females but that
does not make a significant difference.
67%
33%
Gender
Male
Female


2. Which age group do you belong?

Age
15-19 0 0.00
20-24 28 23.33
25-29 20 16.67
30-34 40 33.33
35-39 12 10.00
>40 20 16.67
Total 120 100.00
Table 8.2- AGE GROUP

Figure 8.2- AGE GROUP

Description: From the above data we can conclude that the age group
between 30-34yrs are the people who visit McDonalds more. This age
group falls into Family Unit category who come to McD for their family
and also that coming to McD is a way of showing their status to the
society.
0%
23%
17%
33%
10%
17%
Age
15-19
20-24
25-29
30-34
35-39
>40


3. How often you visit McDonalds?

Visit
Once or twice in a month 84 70.00
3-4 times in a month 16 13.33
More than 4times in a
month 16 13.33
Never 4 3.33
Total 120 100.00
Table 8.3- VISIT TO McDONALD'S

Figure 8.3- VISIT TO McDONALDS

Description: From the above percentage analysis it is clear that Young
consumers of fast foods visit fast food outlets one to two times in a
month. It is not a regular behaviour of their eating habits.

70%
14%
13%
3%
Visit to Mcdonald's
Once or twice in a month
3-4 times in a month
More than 4times in a
month
Never


4. When you hear the word Burger does McDonalds come
in your mind?

Burger

Yes 72 60.00
No 16 13.33
Sometimes 32 26.67
Total 120 100.00
Table 8.4 - McDONALD'S BURGER

Figure 8.4- McDONALD'S BURGER

Description: As we can see in 60% of cases people attach the word burger
with McDonalds. That is quite a good response in favour of McDonalds.

60%
13%
27%
Word "Burger"
Yes
No
Sometimes


5. Which is your favourite product at McDonalds?

Fav product at McD
Mc Spicy Chicken 32 26.67
Chicken Mc Grill 44 36.67
Mc Spicy Paneer 4 3.33
Mc Egg 8 6.67
French Fries 28 23.33
Dessets 4 3.33
Total 120 100.00
Table 8.5- FAVOURITE PRODUCT AT McDONALD'S

Figure 8.5- FAVOURITE PRODUCT AT McDONALD'S

Description: Seeing the above data we can say that mostly people prefer
Non- veg items in McD and the products which are liked the most are
Chicken Mc Grill followed by Mc Spicy Chicken and French Fries.
27%
37%
3%
7%
23%
3%
Fav product at McDonalds
Mc Spicy Chicken
Chicken Mc Grill
Mc Spicy Paneer
Mc Egg
French Fries
Dessets


6. Is the product line in McDonalds adequate?

Product line in McD
Yes 64 53.33
No 4 3.33
It's Okay 52 43.33
Total 120 100.00
Table 8.6- PRODUCT LINE IN McDONALD'S

Figure 8.6- PRODUCT LINE IN McDONALD'S

Description: According to most of the people the product line in McD is
adequate but still few had a neutral reaction towards it.

54%
3%
43%
Product line in McDonalds
Yes
No
It's Okay


7. Suitable timing for visiting McDonalds?

Timing for Visit
Morning 0 0.00
Afternoon 28 23.33
Evening 92 76.67
Total 120 100.00
Table 8.7- TIMING FOR VISIT TO McDONALD'S

Figure 8.7- TIMING FOR VISIT TO McDONALD'S

Description: Above results indicates that going for snacks in the evening is
most preferred time for visiting fast food outlet followed by lunch time
that is afternoon.

0%
23%
77%
Timing for Visit to McDonalds
Morning
Afternoon
Evening


8. Do you like to visit McDonalds with?

Visit McDonalds with
Family 52 43.33
Friends 48 40.00
Couple 12 10.00
Alone 8 6.67
Total 120 100.00
Table 8.8- VISITING McDONALD'S WITH

Figure 8.8- VISITING McDONALD'S WITH

Description: Mostly people prefer going to McDonalds with their friends
and family and spending time with them.

43%
40%
10%
7%
Visit Mcdonalds With
Family
Friends
Couple
Alone


9. What is the reason for preferring McDonalds?

Reasons for preferring
McDonalds
Price 36 30.00
Accessibility 8 6.67
Food quality 44 36.67
Advertisement 8 6.67
Ambience 24 20.00
Total 120 100.00

Table 8.9- REASONS FOR PREFERRING McDONALD'S

Figure 8.9- REASONS FOR PREFERRING McDONALD'S
Description: The percentage analysis indicates that food taste and quality
has highest importance in the mind of fast food consumers while
selecting a fast food outlet for outings followed by price, ambience and
location of the outlet.
30%
7%
36%
7%
20%
Reasons for preferring McDonalds
Price
Accessibility
Food quality
Advertisement
Ambience


10. Rate the following questions:
{1= Strongly disagree 2= Disagree 3= Neutral 4=
Agree 5= Strongly agree }
a) The service rendered by McDonalds is the best as
compared to other fast food chains.

Services rendered by McD
Strongly disagree 8 6.67
Disagree 4 3.33
Neutral 44 36.67
Agree 52 43.33
Strongly agree 12 10.00

120 100.00

Table 8.10.a - SERVICE AT McD

Figure 8.10.a - SERVICE AT McD
Description: According to 43% of the people the service rendered by
McDonald is best as compared to other fast food restaurants.

7%
3%
37%
43%
10%
Service
Strongly disagree
Disagree
Neutral
Agree
Strongly agree


b) The design of facilities inside McDonalds. Ex- Chairs,
tables etc are good.

Design of Facilities in McD
Strongly
disagree 4 3.33
Disagree 16 13.33
Neutral 12 10.00
Agree 80 66.67
Total 120 100.00

Table 8.10.b- DESIGN OF FACILITIES IN McD

Figure 8.10.b- DESIGN OF FACILITIES IN MCD

Description: Most of the people rated the design of facilities inside
McDonalds as good.

3%
13%
10%
67%
7%
Design of facilities in McD
Strongly disagree
Disagree
Neutral
Agree
Strongly agree


c) You spend more time in McDonalds as compared to
Pizza Hut or KFC.

Spending more time in McD
Strongly
disagree 12 10.00
Disagree 20 16.67
Neutral 44 36.67
Agree 32 26.67

120 100.00

Table 8.10.c- SPENDING MORE TIME IN McD

Figure 8.10.c- SPENDING MORE TIME IN McD

Description: Based on the multiple answer questions, it can be inferred
that people spend more time in McD though the much favoured answer
was neutral followed by agree.
10%
17%
36%
27%
10%
Spending more time in McD
Strongly disagree
Disagree
Neutral
Agree
Strongly agree


d) The prevailing environment in McDonalds is Hygienic.

Hygiene in McD

Strongly
disagree 4 3.33
Disagree 8 6.67
Neutral 20 16.67
Agree 52 43.33

120 100.00

Table 8.10.d- HYGIENE IN McDONALD'S

Figure 8.10.d- HYGIENE IN McDONALD'S

Description: The above set of results indicates that young consumers are
very particular about hygiene factor of fast food outlets. The consumers
rated hygiene factor very high with 43%.
3%
7%
17%
43%
30%
Hygiene in McD
Strongly disagree
Disagree
Neutral
Agree
Strongly agree


e) Food of McDonald is delicious.

Delicious
food

Strongly
disagree 8 6.67
Disagree 4 3.33
Neutral 20 16.67
Agree 68 56.67

120 100.00
Table 8.10.e- DELICIOUS FOOD

Figure 8.10.e- DELICIOUS FOOD

Description: Most of the people agreed that the food of McDonalds is
delicious.
7%
3%
17%
56%
17%
Delicious Food
Strongly disagree
Disagree
Neutral
Agree
Strongly agree


f) McDonalds serve healthy food.

Healthy food in McD
Strongly
disagree 8 6.67
Disagree 4 3.33
Neutral 40 33.33
Agree 52 43.33

120 100.00
Table 8.10.f- HEALTHY FOOD IN McDONALD'S

Figure 8.10.f- HEALTHY FOOD IN McDONALD'S

Description: As people nowadays give much importance to health factor
so on the basis of results we can say that the food of McDonalds is
healthy.
7%
3%
33%
44%
13%
Healthy Food in McD
Strongly disagree
Disagree
Neutral
Agree
Strongly agree


g) McDonalds provide a sufficient variety of food to
vegetarians.

Sufficient variety for Vegetarians
Strongly
disagree 12 10.00
Disagree 12 10.00
Neutral 28 23.33
Agree 64 53.33

120 100.00

Table 8.10.g- SUFFICIENT VARIETY FOR VEGETARIANS

Figure 8.10.g- SUFFICIENT VARIETY FOR VEGETARIANS

Description: Most of the people agreed that McDonalds provide a
sufficient variety of food to vegetarians thus breaking the myth that
most fast food chain serves non-vegetarians more.
10%
10%
23% 54%
3%
Sufficient variety for vegetarians in
McD
Strongly disagree
Disagree
Neutral
Agree
Strongly agree


h) McD charges nominal price for the products.

Nominal price at McD
Strongly
disagree 8 6.67
Disagree 16 13.33
Neutral 28 23.33
Agree 52 43.33

120 100.00
Table 8.10.h- NOMINAL PRICE AT McDONALD'S

Figure 8.10.h- NOMINAL PRICE AT McDONALD'S

Description: As compared to other fast food restaurants McD charges a
nominal price for the products and service it offers.

7%
13%
23%
44%
13%
Nominal price at McD
Strongly disagree
Disagree
Neutral
Agree
Strongly agree


i) The price reflects the quality of food at McD.

Price reflecting the Quality of
Food
Strongly
disagree 8 6.67
Disagree 8 6.67
Neutral 24 20.00
Agree 72 60.00

120 100.00

Table 8.10.i- PRICE REFLECTING THE QUALITY OF FOOD

Figure 8.10.i- PRICE REFLECTING THE QUALITY OF FOOD

Description: 60% of the people agreed that the price McDonalds charges
reflects the Quality of food it provides and is reasonable for people.
6%
7%
20%
60%
7%
Price reflecting the Quality of Food
Strongly disagree
Disagree
Neutral
Agree
Strongly agree


j) The logo of the McDonalds is sharp enough for you to
recognize the location of the branch.

Logo of McDonalds
Strongly
disagree 8 6.67
Disagree 4 3.33
Neutral 4 3.33
Agree 40 33.33

120 100.00
Table 8.10.j- LOGO OF McDONALD'S

Figure 8.10.j- LOGO OF McDONALD'S

Description: It is very important to locate and recognize the place in
order to avail its services. Thus maximum people strongly agree that the
Golden Arches of McDonalds is sharp enough for people to recognize the
location of the branch.
7%
3%
3%
33%
54%
Logo of McDonalds
Strongly disagree
Disagree
Neutral
Agree
Strongly agree


11. Reasons for coming to McDonalds?

Reasons for Visiting McDonalds
For Change 44 36.67
Hangout 40 33.33
Saves time 8 6.67
Family outing 28 23.33

120 100.00

Table 8.11- REASONS FOR VISITING McDONALD'S

Figure 8.11- REASONS FOR VISITING McDONALD'S

Description: Most of the young Indian consumers visit fast food outlets for
change and fun as indicated by the results followed by hangout with
friends.
37%
33%
7%
23%
Reasons for Visiting McDonalds
For Change
Hangout
Saves time
Family outing


12. Your decision to visit McD is influenced by?

Influencing factor to visit
McDonalds
Spouse 16 13.33
Children 24 20.00
Friends 72 60.00
Relatives 8 6.67
Neighbour 0 0.00

120 100.00

Table 8.12- INFLUENCING FACTOR TO VISIT McDONALD'S

Figure 8.12- INFLUENCING FACTOR TO VISIT McDONALD'S

Description: Based on multiple answer questions it is inferred that
consumers preference to visit a particular fast food outlet is influenced
by friends in 60 per cent of cases followed by children and other factors

13%
20%
60%
7%
0%
Influencing Factor to Visit McDonals
Spouse
Children
Friends
Relatives
Neighbour


13. Which is the most effective promotional activity for
McD?

Effective Promotional Activity for McD
Discount 44 36.67
Home delivery 28 23.33
Others 48 40.00

120 100.00

Table 8.13- EFFECTIVE PROMOTIONAL ACTIVITY FOR McDONALD'S

Figure 8.13- EFFECTIVE PROMOTIONAL ACTIVITY FOR McDONALD'S

Description: Promotion is essential for every organization. For McD the
most effective promotional activity according to people are
advertisements followed by discount.

37%
23%
40%
Effective promotional activity for McD
Discount
Home delivery
Others


14. Will you try the new product within 1 week after the
latest advertisement released?

Tryiing the product within a week of latest
ad
Yes 48 40.00
No 72 60.00

120 100.00

Table 8.14- TRYING THE PRODUCT WITHIN A WEEK OF LATEST AD

Figure 8.14- TRYING THE PRODUCT WITHIN A WEEK OF LATEST AD

40%
60%
Trying the product within a week of
latest Ad
Yes
No


15. Do you think the introduction of Happy Price menu has
boosted the sales up?

Happy Price Menu resulting in Sales boost

Yes 60 50.00
No 4 3.33
Upto some
extent 56 46.67

120 100.00

Table 8.15- HAPPY PRICE MENU RESULTING IN SALES BOOST

Figure 8.15- HAPPY PRICE MENU RESULTING IN SALES BOOST

Description: McDonalds innovative scheme of introducing Happy Price
Menu was successful upto some extent in boosting up the sales of McD.

50%
3%
47%
Hapy Price Menu resulting in Sales
boost
Yes
No
Upto some extent


16. What is the distance of nearest McDonald from your
place?

Distance of McDonalds from your place
Near 64 53.33
Very near 16 13.33
Far 28 23.33
Very far 12 10.00

120 100.00

Table 8.16- DISTANCE OF NEAREST McDONALD'S FROM YOUR PLACE

Figure 8.16- DISTANCE OF NEAREST McDONALD'S FROM YOUR PLACE

Description: According to the above results it is clear that the nearest
distance of McD for most of the people are near to their home which
means the outlets of McD is vastly located in the Region of North
Bangalore.
54%
13%
23%
10%
Distance of nearest McD from your
place
Near
Very near
Far
Very far


17. What do you think is the biggest competitor of
McDonalds?

Competitor of McDonalds
KFC 92 76.67
Pizza Hut 12 10.00
Dominos 16 13.33
Subway 0 0.00

120 100.00

Table 8.17- COMPETITOR OF McDONALD'S

Figure 8.17- COMPETITOR OF McDONALD'S

Description: Though McD being one of the most favoured fast food outlet
among the young consumers, its toughest competition is from KFC
followed by Dominos.
77%
10%
13%
0%
Competitors of McDonalds
KFC
Pizza Hut
Dominos
Subway


9. SUMMARY OF FINDINGS
The food habits of youngsters are influenced by many factors such as
environment at home, educational environment, availability and
accessibility to fast food providers, and social environment in their
surroundings. In addition, emergence of traits of independence in their
eating habits, nutritional education, divergence of food preferences at
home and at fast food outlets and ambience of place for socializing
affects their visit and liking of fast food outlets. The results of data
analysis with respect to these issues of food consumption behaviour of
youngsters vis-a` -vis fast food outlets are presented in the following
sub-sections:
1. The findings clearly indicate that the young customers are
attracted more with the food quality, price and hygiene factors.
2. The above set of results also indicates young consumers are very
particular about the nutritional value of the fast food.
3. It also shows that mostly family people prefer going to McD and
the influencing factor for them is their spouse and mostly children.
Family also prefer going to McD to show their position in the
society as fast food chains have now become a status symbol for
people so they prefer going to branded fast foot outlets rather than
the non- branded ones even if it is expensive.


4. Many consumers are not satisfied with the product line of
McDonalds so it needs an improvement in the variety of products
served by McD.
5. McDonalds being most popular among the youth and even newly
working class of today but still it faces tough competition from KFC
and Dominos. Most of the young prefer Dominos for home orders
because of their scheme of in 30 minutes home delivery or else
free.
6. Finding also states that the outlets of McDonalds are vastly located
and within the reach of the customers.



10. LIMITATIONS OF THE STUDY
1) After as per my survey it is found majority of people in Bangalore
North are not rich enough to visit McDonalds frequently.
2) Distance is a problem in Bangalore city and even when people want
to visit traffic creates a problem.
3) Most of the McDonalds shops are located in the busy area
particularly in Bangalore North and there is no parking space for
the consumers.
4) Another limitation is, there is some confusion whether McDonald is
a vegetarian or a non-vegetarian restaurant. Recently one incident
happened where a vegetarian has been given a non-vegetarian food
and there was a big complaint on that issue.
5) Generally McDonalds differentiate the food servings through the
colours on the boxes. This should be more clearly enhanced and
rectified on the parity basis



11. RECOMMENDATIONS
Fast food providers need to focus on the quality and variety of food
besides other service parameters. Study clearly shows that consumers do
not visit these outlets primarily for food but for fun, change and social
reasons as they prefer home food over the fast food. This is an important
parameter to focus to have sustainable growth in the times to come.
Further, information about hygiene and nutrition value of the fast food
must also be communicated to the consumers. Thus, in nutshell, there is
need to focus on the food contents by the fast food marketers.

It is about the name recognition. Every where, millions of people are
familiar with the Golden Arches that are on top of every McDonalds
restaurants. McDonald should use this advantage to gain more attraction
from customers.

In addition, McDonald strength is giving variety of products even then
the company should focus on this strength to develop stronger. How ever,
the company seems not diversifying its products regularly, while
competitors are stronger and have new products gradually. Because of
this reason, McDonalds should spend more money on Research and


Development to create new products and services as well as increase the
efficiency of operations.

First, one thing McDonalds should focus on is that the play place for kids.
Next, even if companys menu is still relatively inexpensive compared to
that of its competitors, it is not totally enough. Apart from price,
customers also make decision rely on menu. So McDonalds should also
focus on an organic menu consisting of more fruits and vegetables. it is
necessary for them to make this change, since customers of recent times
are more conscious towards their health.



12. CONCLUSIONS
Consumer acceptance of food served by fast food outlets is critically
important for the future growth of fast food outlets in any economy.
Though the rating of fast food outlets attributes under study based on
mean score is very high but still consumers visit fast food outlets for fun,
change or entertaining their friends but certainly not as a substitute of
home made food. Study of McDonalds indicates a clear cut sign that
consumers demand more and more information related to hygiene issues
and nutritional values of the products of fast food outlets. Based on the
analysis and results, it can be said that with more and more
acceptability of fast food outlets and change in life style, competition
among fast food outlets with respect to quality of food and customer
service will be more prominent in the days to come.
Since food and medicine are permanent in nature, it is inevitable that
this industry will have a great future, what is required is that McDonalds
must improve its services in India and in Bangalore in particular since
Bangalore is virtually a Mini- India.



BIBLIOGRAPHY
1. S. Ramesh Kumar, Consumer Behaviour and Branding, The Indian
Context, 2003, pp. 65,144,162,265,354,377.
2. S. N. Murthy & U. Bhojanna, Business Research Methods, Excel
Books (2008) 2
nd
Edition.
3. Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar
Jha, Marketing Management, A South Asian Perspective, Dorling
Kindersley(India) Pvt. Ltd (2009), 13
th
Edition, pp. 144-158.
4. Wayne D. Hoyer, Deborah J. MacInnis & Pinaki Dasgupta,
Consumer Behaviour, Biztantra (2008) Edition, pp. 181,320.
5. Suja R. Nair, Consumer Behaviour in Indian Perspective,
Himalaya Publishing House, 2007 Edition.
6. http://www.mcdonalds.com
7. http://www.mcdonaldsindia.com
8. Economic Times Bureau, Sep 24, 2013. 04.25AM IST.
9. Anita Goyal & N.P Singh, Consumer Perception About Fast Food
Consumption in India: An Exploratory Study, British Food Journal,
Vol. 109 No. 2, 2007.



APPENDIX
QUESTIONNAIRE
Objective: This study is aimed at finding out the various reasons, why
consumers prefer McDonalds and how the particular situations affect the
decision of consumers. Your feedback would be valuable.
1) Which age group do you belong?
15-19 20-24 25-29 30-34 30-34
35-39 40& above
2) How often you visit McDonalds?
Once or twice in a month 3-4 times in a month
More than 4 times in a month Never
3) When you hear the word Burger does McDonalds come in
your mind?
Yes No Sometimes
4) Which is your favourite product at McDonalds?
McSpicy Chicken Chicken McGrill Desserts
McSpicy Paneer Mc Egg French Fries
5) Is the product line in McDonalds adequate?
Yes No Its okay
6) Suitable timing for visiting McDonalds?
Morning Afternoon Evening



7) Do you like to visit McDonalds with?
Family Couple Friends Alone
8) What is the reason for preferring McDonalds?
Price Accessibility Food quality
Advertisement Ambience

- Rate the following {1=Strongly disagree, 2=disagree,
3=neutral, 4=agree, 5=Strongly agree}
1 2 3 4 5
a) The service rendered by McDonalds is the best
as compared to other fast food chains
b) The design of facilities inside McDonalds.
Ex- Chairs, tables etc are good.
c) You spend more time in McDonalds as
compared to Pizza Hut or KFC.
d) The prevailing environment in McDonalds
is Hygienic.
e) Food of McDonald is delicious.
f) McDonalds serve healthy food.
g) McDonalds provide a sufficient variety
of food to vegetarians.
h) McD charges nominal price for the products
i) The price reflects the quality of food at McD
j) The logo of the McDonalds is sharp enough
for you to recognize the location of the branch?



9) Reasons for coming to McDonalds?
For change Family Outing Hangout Saves time
10) Your decision to visit McD is influenced by?
Spouse Children Friends Neighbours Relatives
9) Which is the most effective promotional activity for McD?
Discount Home delivery Others
10) Will you try the new product within 1 week after the latest
advertisement released?
Yes No
11) Do you think the introduction of Happy Price menu has
boosted the sales up?
Yes No Upto some extent
12) What is the distance of nearest McDonald from your place?
Near Very Near Far Very Far
13) What do you think is the biggest competitor of McDonalds?
KFC Pizza Hut Dominos Subway

NAME
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OCCUPATION
COMMENTS -



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