Marketing Research Assignment - Research Plan

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Marketing Research Assignment - Research Plan

  1. 1. ASSIGNMENT 3: BURGER BOSS RESEARCH PLAN STUDENT NAME: FAHME STUDENT #: COURSE NAME: MARKETING RESEARCH COURSE ID: MKTG466 SUBMISSION DATE: 19/SEPTEMBER/ 2013
  2. 2. pg. 1 TABLE OF CONTENTS INTRODUCTION ………………………………………………………………………………………………………………………………………… 2 LITERATURE REVIEW & HYPOTHESES ………………………………………………………………………………………………………. 4 RESEARCH DESIGN …………………………………………………………………………………………………………………………………… 7 DATA COLLECTION ……………………………………………………………………………………………………………. 8 METHOD OF ADMINISTRATION ……………………………………………………………………………………… 10 SAMPLE FRAME ………………………………………………………………………………………………………………..11 DATA ANALYSIS ………………………………………………………………………………………………………………… 12 CONCLUSIONS …………………………………………………………………………………………………………………………………………. 15 REFERENCES ……………………………………………………………………………………………………………………………………………. 17
  3. 3. pg. 2 INTRODUCTION Established in 2001, Burger Boss (BB) is a fictional company-owned and franchised operated fast-food chain of restaurants. The fast-food chain currently operates 50 restaurants located in the metropolitan cities of Miami, Chicago, Boston and San Francisco. Burger Boss offers consumers with a gourmet alternative to the traditional fictitious fast-food giants such as Rooneys and Burgernator (equivalent to McDonalds and Burger King respectively). Since its inception the franchise has enjoyed raved reviews from food magazines and critics, and consumers have flocked to Burger Boss restaurants to indulge into gourmet custom made burgers that provide fast food lovers a refreshing alternative to the multinationals. Burger Boss operates under the simple motto of having a few but appealing options for the burger lovers. This is evident in therestaurants one page eight item menu which ranges from the “classic” cheeseburger to the franchise special “the meat”: double beef patty, chicken fingers and three cheese loaded 800 calorie monster burger. To the customers delight, at an extra cost, any order on the menu can be completely customized, for example chicken fingers on your cheeseburger. Burger Boss prices on an average are 10% steeper than the competitors and unlike the multinationals, currently the Burger Boss menu does not offer any grilled meat, salad or juice options in its menu. However, Burger Boss is currently experiencing stagnant growth and profitabilitydue to the economic recession, increased competition and a growing trend of shifting consumer tastes and wants. Since the recession consumers are now far more price sensitive and value driven, and there is also an increasing shift towards demand for healthier menu options. To remain competitive and profitable, Burger Boss wants to analyze the fast-food restaurant industry (comprehensive analysis of current customer eating trends coupled with study of the competitor strategies) to determine best direction for the franchise’s future. Prior to recession the annual profit margins for Burger Boss ranged in the doubled digits which spawned the franchises rapid growth, however since the recession margins have slimed significantly causing the managers at the Burger Boss corporate headquarters to devise a strategic plan to improve the financial performance of the fast-food chain. It was also noticed that direct competitors such as Rooneys and Burgernator seemed to have weathered the recession, inside reports claiming little no loss in profit margins. Battling a scenario as such the executives at Burger Boss feel the most prudent decision would be to
  4. 4. pg. 3 conduct a marketing research initiative, which they hope will help uncover contingencies to restore the growth and profitability of the fast food chain. Burger Boss is faced with a discovery oriented decision problem and the research question to be addressed by marketing research is:“will introducing healthier menu items aid Burger Boss to improve the financial performance of the fast-food chain?” Direct competitors Rooneys and Burgernator currently offer meat free salads on their menu as healthy alternatives but the prices of these salads are approximately 30% more than the most expensive burger on their menu. Executives at Burger Boss feel this new health conscious value driven target population is potentially a lucrative target market. The research findings to be presented by this report are critical to decide the potential of the proposition put forward by the executives. Through marketing research the following objectives are intended to be addressed: Objective 1:“The health food versus the fast food industry trends” What are the changing trends in the fast-food industry? Do customers in fact want new healthier menu items? Objective 2:“How does Burger Boss attract thecompetitor’s customers?” Will the addition of new healthy menu options attract competitor customers to Burger Boss? Do customers instead want cheaper menu prices? Objective 3:“Cost, Profit and Risk Analysis” What is the profit margin for introducing healthy menu options? Will the addition of healthy options cause Burger Boss brand confusion among consumers? What is Burger Boss’s position compared to its competitors? This report will examine various fast food industry and consumer trending insights and the observations will be conveyed in the Literature Review section which is followed immediately after this segment. These insights are intended to uncover information that will assist in devising hypothesis that will serve as central components to evaluate and realize the research question and objectives at hand. Furthermore, the report will detail the research plans approach to capture important primary and secondary data to support or refute the hypotheses. Data
  5. 5. pg. 4 collection and analysis procedures and techniques will be addressed to ultimately offer the executives conclusive answers in regards to the findings of the research. The primary goal of the research plan and report remains to furnish the decision makers at Burger Boss with evidence (or lack off) that the research question and objectives in hand will ensure a criterion for improved financial and competitive performance of the fast-food chain. LITERATURE REVIEW & HYPOTHESES In order for the executives at Burger Boss corporate headquarters to reach a judgment into the direction to undertake to improve the profitability of the franchise, extensive research (industry literature review) has to evaluated and considered to form the foundations of Burger Boss’s research plan. The literature review on the trends and the conditions of the fast food industry will allow the researches to develop hypothesis and variables to test and experiment during the research plan itself, which anticipates establishing conclusions for the franchise to consider as course of action. The fast food industry is definitely trending into serving healthy alternatives on their menus. Market research published in 2011 found an 86-percent increase in the term "healthy" and a 33-percent increase in the term "low- fat" on fast-food menus. (Wanjek, 2013) This substantial surge of the healthy buzz word is reflective of the growing health conscious attitudes of consumers. Reports indicate 39% of consumers choose salads for an entree, 28% pick a healthier protein, 19% don’t eat the full meal, and 16% request sauce or dressing on the side. (Watrous, 2013) Customer's interest in healthier food seems to be growing. Some 78% of restaurants in the "quick-service" category, which includes fast food, are seeing more orders for entrée salads, according to the National Restaurant Association (NRA), an industry group. In fact, entrée salads have shown the biggest increase of all menu items, in both quick- service and sit-down restaurants, the NRA say.With obesity reaching near-epidemic levels in the United States, corporations and the media are paying more attention to health, nutrition, and anti-obesity efforts. "We have sold 300 million salads in the U.S., equaling 600 million vegetable servings," says Cathy Kapica, PhD, RD, global director of nutrition for McDonald's. (Zelman, 2005) A recent Harris study of restaurant patrons found that while 90% choose a restaurant based on price, “healthy menu items” are also a top motivator for 58%. The second study comes from
  6. 6. pg. 5 the Natural Marketing Institute (NMI), which researched and segmented U.S. consumers by their attitudes about the health aspects of food. NMI found that 17% of consumers could be classified as “well-beings,” passionate about eating healthier foods and willing to pay more for it. Another 14% are “food actives,” who want to eat better but are more price-sensitive. Together these three groups make up 52% of restaurant customers, a group too big to ignore. (Leadership, 2013)Such enthusiasm within consumers for healthier diets has translated into momentous revenue for the fast food retailers offering demanded options. An article in the Nutrition Business Journal reported total sales of healthy foods in 2006 at $120 billion, or 21% of total food sales. That’s double the numbers from a decade earlier.(Nerac, 2013) The fast food industry has also understood the importance of keeping with the consumer’s demand of healthier options and the implications that come with failing to entertain these mandates. A new report from the Hudson Institute has found that between 2006 and 2011, chain restaurants that increased their low-calorie offerings sold nearly nine percent more products, while those that decreased their healthier options witnessed a sixteen percent drop in total sales. (Tao, 2013) Furthermore, reports indicate more parents are starting to spread their eating habits to their newborns. While some argue that this method stops kids from receiving proper nutrition, parents are feeling more confident about raising vegan babies and some health experts see no problem with it.(Huffington Post, 2012) Parents advocating veganism as healthier lifestyle ultimately means these children (the future consumers) will demand salads and vegetarian alternatives on fast food menus to satisfy their diets. The fast food industry is still a large and diverse industry with plenty of opportunity. Consumers are now on the look-out for new ways to eat fast and healthy. And as the industry continues to evolve and the economy strengthens, fast food franchise profitability will continue to grow. (Sena, 2013)Experts such as Matthew Corrin, the CEO of healthy fast-casual chain Freshii, couldn't agree more. He expects the next decade of hyper growth in the restaurant business to focus on "health casual" dining in fast food franchises. (Durisin, 2013) When analyzing the demographic aspects of fast food trends studies show that nutrition and healthy eating habits are top meal planning priorities for Baby Boomers. Boomers are all 50+ and health is a bigger concern as people age. (Henderson, 2013) As the nationwide advertisement and education of obesity continues, the baby boomers (also one of the largest dining
  7. 7. pg. 6 and spending target market) will look to find healthier dining alternatives on menus. The geographical importance of food trends is also necessary to understand the diet regimes of the consumers situated within the 50 Burger Boss locations situated in the Northeast and Pacific coast of the United States (Miami, Chicago, Boston and San Francisco). A breakdown of U.S. consumers' nutrition-seeking habits by geographic region revealed consumers in the Northeast and Pacific regions cared the most about nutrition. On the other end of the spectrum, consumers in the Southwest and Central regions cared considerably less, with only 18.2% and 17.8% of those surveyed saying "nutritional value is the most important factor in the food they eat," respectively. (Savenije, 2013) However, the realities of recession and global economic downturns impact on commodities to deliver consumer demands also have to be realized. Rising commodity prices have also significantly crunched many fast food franchises. With food and beverage inputs making up approximately 33% of costs, higher prices for livestock, corn, wheat and more have seriously shrunk margins over the past decade. With vegetable prices overwhelming scales and in such a fiercely competitive space it is impossible to force a price increase on customers, so profit margins are often south of 10%.In fact, there was some increase in consumer visits as people choose cheaper fast food options over fast casual or traditional restaurant choices.(Sena, 2013) Undeniably the presence of offering healthier options for consumers is vital for the survival and continuity of the fast food industry. The literature review offers valuable insight into consumers who are constantly looking to adapt into their lifestyle healthier diets as the world educates consumers to the risks of food related obesity. This consumer trend has to be understood and catered to by the fast food industry as the articles suggests the fast food retailers marketing the health movement are favored far better over the franchises who do not. However, the realities for franchises cannot be overlooked. As presented by the article, the continuous rise in prices of commodity is making it difficult for fast food retailers to offer value as consumer keep demanding for variety and reduced prices. Although mass producing multinational fast food franchises have been able to keep prices relatively truncated, franchises such as Burger Boss who operate at a much smaller scale have found it difficult to keep prices competitive and be profitable at the same time. For the research plan to develop and commence, certain
  8. 8. pg. 7 assumptions have to be recognized and hypotheses have to be derived. For the research question at hand, the research plan at the preliminary stage will center on the following consequent hypotheses: 1. Keeping up with the fast food consumer trend and consumer demand, Burger Boss must introduce healthier options on their menus. 80% of the respondents to the survey will prefer the introduction of new healthier options on the Burger Boss menu. 2. The addition of healthier menu options will retain existing and attract new consumers.However, lone addition of healthier menu options will notbe the key contributing factor to improving financial performance of the franchise. 3. The cost of commodities and scale of production puts Burger Boss at a disadvantage to larger competing multinational corporations. Rather than competing on price,the executives should strategize on repositioning Burger Boss’s branding. Marketing Burger Boss as a traditional burger joint with healthier gourmet alternatives. 4. Consumer will opt for Burger Boss based on value and selection. Profitability will result through a combination of continuously improving the menu with consumer diet trends and competitive pricing of meals. RESEARCH DESIGN- The research plan has been articulated to consist of six steps, they are as follows: Step 1: Defining the research problem and objectives (presented in the Introduction section) Step 2: Developing hypotheses (presented in the Literature Review section) Step 3: Data collection& Method of Administration (to be discussed in this section) Step 4: Sample frame(to be discussed in this section) Step 5: Data Analysis(to be discussed in this section) Step 6: Conclusions (to be presented in the subsequent section)
  9. 9. pg. 8 DATA COLLECTION: One of the most integral and influential factors of the research plan will the data collected. This data will provide the executives at Burger Boss with the knowledge (industry and consumer) to determine the most effective direction to undertake. For the research plan to answer the research question, objectives and tackle the hypotheses a combination of both primary and secondary data will be required. For Burger Boss to identify the trend and demand characteristics of fast food consumers, primary data will have to be collected. A questionnaire will be devised to capture and identify key concepts. The questionnaire formulated will anticipate to uncovering and understanding primary data of consumer demands and ultimately answering the objectives of the research question. The questionnaire will be designed to capture relevant concepts such as;do Burger Boss consumers in fact want healthier items on the menu? Do people choose a fast food restaurant based on the lowest priced value meals? Will people pay a premium for healthier options on the menu? Would consumers prefer healthier items or lower priced meals? Does the availability of healthier menu options serve as a deciding factor when choosing a fast food franchise to dine? Can Burger Boss improve business by concentrating on convenience such as longer operating hours, more locations, etc., rather than adding healthier options? What is the fast food consumer’s brand perception of Burger Boss in comparison to its immediate competitors? What is Burger Boss’s competitive positioning in comparison to the fast food competition in the minds of the fast food consumer? The goal of the primary data to be collected will be to tabulate the voice of the consumer. The questionnaire developed should be surveyed within both existing and non-Burger Boss consumers to conceive a realistic non- biased outlook of fast food consumers. Numerous third party companies offer survey services explicitly geared towards franchises. Such third party companies manage, organize and analyze data for the researchers to evaluate the results of the questionnaire. The administrating third party company consults with the management and researchers to develop the questionnaire with the wording, question sequence, format and layout. For fast food or quick serve industry and competitor analysis, secondary data has to be acquired. Secondary data collected will emphasis on:
  10. 10. pg. 9 Estimating cost, profit and viability of introducing new menu items for Burger Boss The collaboration with suppliers is essential to the success of any business. Any new direction that Burger Boss initiates will require commitment from suppliers; hence, the supplier has to be introduced to the possibilities brainstormed by both the researchers and executives at Burger Boss. The suppliers will be able to compute cost of raw and produced materials that will be required to assemble the proposed new menu items. This will help determine the cost to produce to the new items, estimate the consumer price of the item (including markup), forecast sales(based on internal and competitor analysis) and ultimately the profit margin. Competitor analysis An integral position on the success of business is how well the managers understand and respond to competitors. The competitor analysis not only allows to identify profit ventures but also to study projects that have failed. Competitor annual reports for at least the last five years have to be acquired and studied. The researchers should construct reports on competitor’s menu pricing, the category of items that are the most profitable and graphs depicting the trending of growth and profits/loss of new introduced items. The researchers should also inquiry into any studier published or available on competitor research. Key information such as how new introduced items have performed, growth of newly introduced items, marketing strategy, pricing strategy and future undertakings. This may result in valuable information for researchers to develop and test the research hypotheses on hand. Competitor analysis will also help to analyze if alternate strategies implemented by competition has resulted in driving more consumers into their franchises such as promotions, convenience (increased locations, operating hours, automation of process, etc.), and/or increased presence through marketing/advertising. Fast Food Industry analysis Similar to competitor comprehensive knowledge of the fast food industry is essential for the success and continuity of Burger Boss. Researchers have to attain industry reports, articles and journals. The industry reports will indicate the position of franchises, information on new entrants, competitor sales and revenue information, consumer demographic statistics, consumer growth and spending rate forecasts, industry growth rate forecasts, economic
  11. 11. pg. 10 growth rates forecasts, and industry expert opinions & forecasts. For researchers to render management with such comprehensive industry insights coupled with cost versus profit and competitor analysis allows executives to consider the implications and deliver on the research question. METHOD OF ADMINISTRATION For the collection of primary data the consumers will directed to the web based cross sectional questionnaire within the Burger Boss’s website. The company website is a great way to not only directly capture the feedback from consumers but also allows for Burger Boss to showcase and promote their brand and menu as well. There are a few ways to direct consumers to the questionnaire prepared by the research team: In store – when customers pay for the meals at Burger Boss, the cashier/server should be trained to inform each paying customer of the questionnaire currently being sponsored by Burger Boss. The receipt should include brief details under the meal total. Particulars should include Burger Boss’s website, reminder to fill in the questionnaire, short details on the incentive to complete survey (to be discussed below) and disclaimer such as following “for details please visit the website”. The goal will be entice existing customers to visit the website to not only complete the survey, but also to educate the customer on the company, the menu selection, provide location information, offer transparency on calorie counts, and promote web exclusive campaigns. Social Media– The most powerful instrument to promotion awareness in modern advertising campaigning is through social media. Burger Boss will be required to utilize their FaceBook, Twitter, Instagram, Flickr and FourSqaure pages to inform their page members on the questionnaire and direct them to the questionnaire link. These members are Burger Boss enthusiasts and are the most likely to respond to promotions from the company. The incentive for completing the questionnaire should remain identical for both the store customer and social media page member. Blogs/Deal websites – The feedback of non-Burger Boss customers are equally important. Hence, to attract new customers’ food blogs and survey websites such as Red Flag Deals should be utilized. These websites are
  12. 12. pg. 11 frequented by millions of people a month who are looking for deals or incentives in exchange for their time or input. The addition of input by non-Burger Boss customers will give the researchers an unbiased view of fast food consumer opinions that can support or offer arguments to pro Burger Boss consumer feedback result obtained through the questionnaire. The desired flow of administrating the Burger Boss questionnaire is as follows: Consumers are made aware of the Burger Boss questionnaire through the outlets mentioned above Participants visit Burger Boss website and click on the questionnaire link within the website Disclaimer, instructions and purpose of the questionnaire are presented to the participant On completion of the questionnaire the participant is provided with a code for the pledged incentive that can be redeemed at a Burger Boss franchise The secondary data can be purchased, viewed, downloaded and analyzed through a host of outlets. Though some articles may have to be purchased, the web offers a wealth of complimentary information. Competitor annual financial reports can be downloaded directly from their websites, competitor menus and pricing can also be attained from their websites or from websites such as FastFoodMenuPrices.com which offers comprehensive menu listings and prices of all geographically competing fast food franchises regardless of size. The fast food industry website such QSRmagazine.com provide complete information of the industry size and progression rates , consumer size and growth rates, consumer spending reports, new entrant reports, and semi-annual forecast on the food fast industry and consumers. Fast food industry expert opinions are readily available on the web and considering the expert and their opinions on the discretion of the researcher. Supplementing the primary data, all the facts obtained through secondary data will enable the researchers to derive a solid conclusion to the validity of the hypotheses, and ultimately retorting the research question and objectives. SAMPLE FRAME–The fictitious Burger Boss annual financial report stated the 50 franchised locations served 5 million customers in 2012. The annual report also indicated 30.3 million hits on the company website in the year. Current Burger Boss social media statistics indicate 500,000+ members in the FaceBook page, 120,000+ members in
  13. 13. pg. 12 the Twitter account, charted by a following of 150,000+ combined members in other social media application including but not limited to FourSqaure, Flickr and Instagram. Visitation analytical bar on the RedFlagDeals.com website indicates a browser-ship of 4.3 million fast food promotion seekers. With such an enormous sample size and target population, the sample frame rests on the promotional incentive budget of the Burger Boss management. According to research studies the average response rate of online surveys is 30% (IAR, 2011) Hence, an ideal a target sample frame for this research study would be of 5,000 Cluster, Quota and Stratified random sampling participants. For sheer number of potential samples, the ideal scenario would be post the questionnaire and incentive on the FaceBook and Twitter accounts, and on RedFlagDeals.com. The benefit of this strategy is twofold: Firstly, cost savings. Posting and delinking on FaceBook, Twitter and RedFlagDeals.com incurs absolutely no cost and time to Burger Boss, in comparison to adding the details of the questionnaire on the receipts. Secondly, since the questionnaire is administered to be conducted online, recruiting participants from FaceBook, Twitter and RedFlagDeals.com confirms internet accessibility. This may not be true for all customers visiting the stores, even though they may be directed to the website, completing the questionnaire may be irrelevant to them because of inaccessibility of internet. Within the target population, the sample should be comprised of approximately 75% existing and 25% non-Burger Boss consumers. Hence, a filter question is required to be incorporated within the questionnaire that would allow the determined set number respondentsto participate confined between the two groups’designated (existing and non-Burger Boss customers). The ratio is rationalized by the concept that existing Burger Boss customer are the ideal judge of the conditions and offering through their direct interactions with the stores and would provide realistic feedback based on their experiences. The research plan concludes that 5,000 participants feedback would be satisfactory to generalize the findings as the collective prospective of Burger Boss on the minds of fast food consumers. DATA ANALYSIS–Once data has been collected and prepared for analysis, several statistical procedures can help to better understand the response. (Hair, 2010) To test the four null hypotheses derived for the research study the following statistical analysis techniques will be applied to each of the hypotheses:
  14. 14. pg. 13 Hypothesis 1:80% of the respondents to the survey will prefer the introduction of new healthier options on the Burger Boss menu. This null hypothesis tackles an important objective set as a defining parameter to address the research question. While this hypothesis will determine the decision to introduce healthier item to the existing Burger Boss menu, the percentage of response (for example 90% say yes add healthier items) will allow for researchers to understand people trend and prospective towards healthier diets and meals. To test the null hypothesis the researchers will conducted a Univariate Statistical Test. Univariate statistics uses only one variable at a time to generalize about a population from a sample. Univariate tests of significance are used to test hypotheses when the researcher wishes to test a proposition about sample characteristics against a known or given standard. (Hair, 2010) The level of significance for rejecting the null hypothesis and accepting the alternative hypothesis is set at 65%. This essentially means that when the statistical test is executed and the result of the data for this particular question are tabulated, Burger Boss will consider to add healthier items only if more than 65% of the participant preferred the introduction. Otherwise, any figure below 65%, the alternative hypothesis will be accepted and the potential of healthier items on the Burger Boss menu will be scraped. Hypothesis 2:The addition of healthier menu options will retain existing and attract new consumers. The volume of consumers to stores determine the revenue generation for any franchise. The primary emphasis of this hypothesis is to forecast the volume of consumer that can be expected to visit Burger Boss stores, this in turn will help estimate the revenue and profit margins associated with the introduction of healthier items. Cross Tabulation will be used to test this hypothesis. Cross Tabulation is useful for examining relationships and reporting findings for two variables. The purpose of the cross tabulation is to determine if differences exist between subgroups if the total sample. Testing this hypothesis will indicate an estimated profitability of new items to into the Burger Boss menu. By testing and accepting this hypothesis the researchers will be able to support the objectives and research question for this study. For Burger Boss to improve financially the most simplistic attribute would be to increase the traffic of consumers into its stores, this volume of consumers which is constituted in combination of
  15. 15. pg. 14 both the existing customer return business and attracting new customers to the franchise. If the null hypothesis is rejected the alternate hypothesis would be to consider marketing and branding efforts. Hypothesis 3:Rather than competing on price,the executives should strategize on repositioning Burger Boss’s branding. When identifying the prospective of brand image in the minds of the consumers, perceptual mappingfor image measurement which provides a visual presentation of a brands position in comparison to its competition. Perceptual map is a graphic representation of respondent’s belief about the relationship between objects with respect to two or more dimensions. (Hair, 2010) Researchers can determine the variables they consider most important as Burger Boss’s brand differentiation. For example if Burger Boss feels the franchise significantly provide better value meals and has a great selection, a perceptual map can be created with the grid variables value and selection. The consumers will then be asked to rate both these variables on a scale that best represents value and selection for Burger Boss and its direct competitors. Now a two dimensional map supports as a visual presentation of the tabulated results can be generated which will plot the franchises on the grid. This visualization representation of consumer interpretation of fast food franchises provides the management to focus on tested variables that feel differentiates them from the competition. The graph of perceptual mapping can be utilized to either market a certain franchise as the best value fast food franchise or used as manuscript to improve on the variables that are resulting in competitive advantage for the competition. Hypothesis 4: Consumers will opt for Burger Boss based on value and selection. This hypothesis serves two purposes. Firstly, the hypothesis will aid in understanding the decision making initiative of the fast food consumer. In essence the goal is to determine the influence of value meals and selection of menus has on customer when they choose a fast food franchise to dine in. Secondly, the variables value and selection will be tested as dependent variables, the existing and non-Burger Boss customers although related sampleswill be treated as dependent variables to test any variance in opinions. For example if Burger Boss customers consider selection over value versa. The same test will be conducted for non-Burger Boss customers to discover similarities or
  16. 16. pg. 15 difference in opinions. If the variances are high and a significant difference is observed, the test will additionally support Hypothesis 3 and the alternative hypothesis will be to focus strategy on marketing rather than on menu and pricing because the variance of customer differences in independent variables will be difficult for Burger Boss to deliver upon. To test Hypothesis 4 the ANOVA (Analysis of Variance), specifically f-Test will be used. ANOVA is a statistical technique that determines if the tested means are different from each other. f-Test is used to statistically evaluate the differences between the group means in ANOVA. The objective of test is to statistically prove that both the dependent variables demonstrate similar variance towards the independent variables and that in fact no differences exist between the groups (existing and non-Burger Boss customers) when opting for Burger Boss based on value and selection. CONCLUSIONS After the hypotheses are tested, the results analyzed and a final report will be generated summarize the material for the Burger Boss executives to consider. The results obtained from the research will be a principal factor in influencing the answering the research question and determining the course of action to be undertaken by the executives. The results of the hypothesis will establish key aspects to address the objectives of this study which will ultimately retort the fundamental component of this study the research question. Hypothesis 1 was specifically developed to address Objective 1, to establish if in fact fast food consumer really did want Burger Boss to include healthier items on their existing menus. The null hypothesis proposed 80% of the participants would favour the addition of healthier items. The result of testing the hypothesis will be the building block for the researchers to analyze the next three hypotheses. If the null hypothesis is rejected, than the outcome will suggest that the proposition of introducing healthier item is redundant and Hypothesis 2 irrelevant. Hypothesis 2 and 4 has been formulated to address Objective 2. Null hypothesis 2 and 4 were developed to estimate and forecast the traffic of potential customers that the inclusion of healthier items to the Burger Boss menu would attract. Since the entirety of this research study is to address the financial progression of the franchise based on the addition of healthier items. The response of the participants is fundamental in forecasting potential revenue
  17. 17. pg. 16 generation. If the null hypotheses 2 and 4 are accepted the researchers can then suggest to the executives to consider the addition of new healthier items because the response of the participants can be translated into forecasted revenue, these figures can then be assessed for financial profitability. If significant revenue estimation is predicted the executives can then consider executing the decision to adding new healthier items on the menu. Hence, answering the research question. Similarly, Hypothesis 3 was developed to address Objective 3. If null hypothesis 2 and 4 are rejected then hypothesis 3 will provide the researchers to suggest to the executives that brand management and marketing may be an alternative for Burger Boss to improve financially. The image measurement in perceptual mapping will enable researchers to propose the competitive advantage factor that can be communicated as the Burger Boss brand differentiation to the fast food consumers. Even if hypotheses 2 and 4 are accepted the researchers may still recommend further strategies based on the perceptual mapping that may contribute to further financial success for Burger Boss. Furthermore, the secondary data will also be analyzed to determine the cost of new product to Burger Boss and subsequently to the consumer. The secondary data can also recommend retail prices that are both competitive and profitable for Burger Boss. This information can be compared with the revenue estimated in Hypotheses 2 and 4 to provide a cumulated figure against the Burger Boss corporate goals. Once the report is finalized the research question will be satisfied based on the testing of the hypotheses addressing the objectives of the research study. This report will support executives at Burger Boss to make an informed decision before investing in new healthier items.
  18. 18. pg. 17 REFERENCES 1. Zelman, Kathleen M. "Fast Food: Does Healthy Sell?" WebMD. WebMD, 28 Jan. 2005. Web. 28 Aug. 2013. <http://www.webmd.com/diet/features/fast-food-does-healthy-sell>. 2. Sena, Matt. "Fast Food Industry Analysis 2013 – Cost & Trends." Fast Food Industry Analysis 2013. Franchise Help, July 2013. Web. 28 Aug. 2013. <http://www.franchisehelp.com/industry-reports/fast-food-industry- report>. 3. Henderson, Tina. "2013 Food Trends Favor Tech Savvy, Health Conscious Consumer." Editorial. Nebraska Farm Bureau. Nebraska Farm Bureau, 28 Mar. 2013. Web. 28 Aug. 2013. <http://www.nefb.org/articles/85008/2013_food_trends_favor_tech_savvy_health_conscious_consumer>. 4. Savenije, Davide. "10 Consumer Food Trends You Should Know about in 2013." Food Dive. Food Dive, 17 Apr. 2013. Web. 28 Aug. 2013. <http://www.fooddive.com/news/10-consumer-food-trends-you-should-know- about-in-2013/121794/>. 5. Nerac. "As Fast Food Goes Healthy, What Opportunities Await Food Companies?" Nerac Insights. Nerac, 2013. Web. 28 Aug. 2013. <http://www.nerac.com/nerac_insights.php?category=articles>. 6. Wanjek, Christopher. "Do Fast-Food Restaurants Fall Short on Their Health Claims?"LiveScience.com. Live Science, 16 May 2013. Web. 28 Aug. 2013. <http://www.livescience.com/32070-fast-food-health-quality- nutrition.html>. 7. Leadership. "Fast-Food Chains Had Better Move Past Value Meals And Embrace Health."Forbes.com. Forbes Magazine, 05 June 2013. Web. 28 Aug. 2013. <http://www.forbes.com/sites/forbesleadershipforum/2013/06/05/fast-food-chains-had-better-move-past- value-meals-and-embrace-health/>. 8. Tao, David. "FAST FOOD CHAINS BOOST SALES WITH HEALTHIER OPTIONS."Greatist.com. Greatist, 08 Feb. 2013. Web. 28 Aug. 2013. <http://greatist.com/health/chain-restaurants-boost-sales-healthier-options- 020813>.
  19. 19. pg. 18 9. Durisin, Megan. "Here's Why Healthy Dining Will Be The Next Big Thing In Fast Food."BusinessInsider.com. Business Insider, 01 May 2013. Web. 28 Aug. 2013. <http://www.businessinsider.com/healthy-fast-food-on- the-rise-2013-5>. 10. Huffington Post. "Health And Food Trends 2013: 20 Healthy Lifestyle Trends For The New Year." Http://www.huffingtonpost.ca/. The Huffington Post Canada, 28 Dec. 2012. Web. 28 Aug. 2013. <http://www.huffingtonpost.ca/2012/12/28/health-and-food-trends-2013_n_2370772.html>. 11. Watrous, Monica. ”Consumers prefer to indulge in restaurants.” Food Business News, 12 June 2013. Web. 28 Aug. 2013. <http://www.foodbusinessnews.net/articles/news_home/Consumer_Trends/2013/06/Consumers_prefer_to _indulge_in.aspx?ID=%7B38FA91E0-7E9B-46C9-9774-6F698F6AE354%7D> 12. IAR. "IAR: Assess teaching > Sampling."Home | The University of Texas at Austin. The University of Texas at Austin, 11 Sept. 2011. Web. 18 Sept. 2013. <http://www.utexas.edu/academic/ctl/assessment/iar/teaching/gather/method/survey-Sampling.php>. 13. Hair, Joseph F.. Essentials of marketing research. 2nd ed. New York, NY: McGraw-Hill Irwin, 2010. Print.

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