Applied Business Research (MBA) Customer Experience.160511
THE INFLUENCE OF FOODQUALITY, SERVICE QUALITY AND ATMOSPHERE ON CUSTOMER EXPERIENCE AT MCDONALD. INTAN NADHRAH AHMAD FADZIL 2009666863 KHALILAH ABD HAFIZ 2009965547
Presentation Outline• Overview• Problem statement• Research objectives• Limitation• Significant of study• Literature review• Research methodology• Findings• Recommendation
OVERVIEW• Product has become commoditize. Company need to upgrade their offerings to the next stage of economic value. (Source: B. Joseph, James H Gilmore, Welcome to The Experience Economy)• Customer experience and emotion of customer become crucial factors to most organization in order to stay competitive in the market
Industry Overview• Malaysian fast food industry is rapidly growth by year. It shows a significant amount of market share increase according to the report of fast food industry in Malaysia of 2004 – 2009 (Source : Global Market Information Base).• A study done by AC Nielsen in 2005 showed that Asians is the world greatest fast food fans. Nearly all Filipino (99%), Taiwanese and Malaysian (98%) adults eat at fast food restaurants. (Source :Mahmood, W. S. (2005). Asians is the World Greatest Fans. AC Nielsen.)
Number of Fast Foods outlet in Malaysia 9 27 20 KFC 167 Pizza Hut 300 Kenny Rogers Roasters A& W McDonalds Burger King Dominos Pizza Shakeys Pizza 33 34 98Source: http://www.malaysiamission.com/team.php?id=25
PROBLEM STATEMENT• Offerings has increasingly commoditized, thus lead to the emerging of experience economy, which looking at the customer experience to stay distinct from others. (Source: B. Joseph, James H Gilmore, Welcome to The Experience Economy)
RESEARCH OBJECTIVES• To identify the relationship between food quality towards customer experience• To identify the relationship between of service quality (reliability) and customer experience• To identify the relationship between service quality (responsiveness) of atmosphere and customer experience• To identify the relationship between service quality (assurance) and customer experience• To identify the relationship between atmosphere and customer experience• To provide recommend sustain and competitive strategy for McDonald.
LIMITATION SIGNIFICANCE OF OF STUDY STUDY• Limited • Management Data team (McDonald’s)• Cost • Workers• Time (McDonald’s) • Customers • Future research
EXAMPLE OF CUSTOMER EXPERIENCE MODELCreating A Customer Experience Model by Phill Hunt, 2003 Inside the Ritz Carlton Customer Experience Model by ScootSource: Gillium,2010http://www.ysatisfy.com/satisfaction_metrics/customer_e Source : http://www.b2bknowledgesharing.com/2010/07/inside-xperience_model.html ritz-carlton-customer-experience.html
THEORETICAL FRAMEWORK Independent variable Service Quality -Reliability -Responsiveness -Assurance Food Quality Dependent variable - Fresh -Presentation - Well-cooked Customer Behavioral - A variety of food and Experience beverages Intention Atmosphere -Ambiance condition -spatial layout and functionality -sign, symbol
RESEARCH METHODOLOGY Purpose of the Types of Extent of Study setting Measurement and investigation measures study researcher Establishing: -Noncontrived -Nominal scale interference -Exploration -Correlation setting (field -Scaling :5 point - Minimal study) scale (Sekaran 1982) interferencePROBLEM STATEMENT DATA ANALYSIS -Cronbach Alpha Sampling design -Beta -Sampling technique: Stratified -P value random sampling -R squared Unit of analysis (population to -Sampling Population: Data collection Respondents in Shah Alam area be studied) method -Sampling frame: customer who -Individual purchase McDonald dine in only and -Primary data it is not valid for takeaway and drive- (McDonald’s (questionnaire, intervi thru customer) ew) -Sampling size: 130 -Pilot Test: 20 respondents -Secondary data
FINDINGS•R2 = .602•Cronbach’s Alpha >> Research objectives Beta P-value Relationship 1. To identify the relationship .036 .678 Not Significant between food quality towards customer experience 2. To identify the relationship .305 .002 Significant between of service quality (reliability) and customer experience 3. To identify the relationship -. 100 .394 Not Significant between service quality (responsiveness) of atmosphere and customer experience 4. To identify the relationship -.133 .198 Not Significantbetween service quality (assurance) and customer experience 5. To identify the relationship .654 .000 Significantbetween atmosphere and customer experience
6. To provide recommend sustain and competitive strategy for McDonald.
Resources and capabilities 10 STRATEGIC IMPORTANCE
Porter’s Five Forces High THREATS OF NEW ENTRANTS - Industry is growing and more new entrants enter the market Low High High RIVALRYBARGAINING AMONG BARGAIING POWER OF COMPETITORS POWER OF BUYER SUPPLIER - Mass -Low switching- Backward advertising and cost due to theintegration promotions wide availability of (McFood) - Product the product bundling High THREATS OF SUBSTITUE PRODUCT - switching cost to buyers is low - wide variety of choices available in the industry
IE MATRIXIE matrix shows that McDonald’s is in the hold and maintain positionwhich can conclude that the way McDonald’s operate it business is inthe right track as it can be seen that it is moving towards the highestquadrant which is the “Grown and Build” quadrant.
MARKETING MIX Product Physical PlaceProcess 7P’s Price People Promotion
RECOMMENDATIONProduct DevelopmentMany countries have their own special product developto meet the local taste, McDonald’s Malaysia shoulddevelop a new product that suit the local taste, such asSatay burger as satay is widely accepted in thismulticultural county. With the new localized product hasbeen developed it will make one feel acknowledged ofthe unique taste of their culture as well as a token ofappreciation from McDonald’s to the customer thatpatron their restaurant. As such, foreigner will alwaysreminded of the experience when they go toMcDonald’s in the different countries, which indirectlycan strengthen the McDonald’s brand positioning inone’s mind.