1. 1School of Management andEntrepreneurshipINSTITUTE FOR INTERNATIONAL MANAGEMENTAND TECHNOLOGYIntroduction to Research MethodsAssignment 1CONSUMER BEHAVIOR IN RESTAURANTSemester – 2Academic Year 2011-12Teaching TeamDr. Tanuja Kaushik (Module Leader)Mr. Gaurav TripathiSubmitted By:Sachin Kumar (PGDM)Sgahlaut711@gmail.comwww.sachingahlaut.webs.com
2. 2 Executive summaryThis report is talks about the consumer behavior in restaurants and reason for the failure ofrestaurants.This report talks about the satisfaction and the quality of the food or services providing by therestaurants and how they can improve their quality to satisfy their customers.This report starts with introduction and literature review which I did with the help of variousarticles.Literature review discusses the view point of authors regarding restaurants and then later in thereport I have written the complete information of respondents like gender, education,occupation and etc. Then after I applied hypothesis test which shows my null hypothesis hasbeen rejected or accepted and my discussion is based on that. This report ends with myconclusion and recommendations.
3. 3 Consumer Behavior in Restaurants: ObjectiveTo find out the changing taste of the customer with emerging food chains.To find out the reasons that restaurants fail.To find out the common denominators of restaurants. Research design:I have chosen descriptive research in which I will do the research on the basic of article andresearch paper which I have collected from various sources and I will also do a survey throughquestionnaires and will try to find out the changing taste of customer and reasons of restaurantfailure. I will also find out the consumer behavior in restaurant. Sampling Design:1. Target Population:The target population from which I will collect the sample would be from college students,people from business as well as service class and from faculty members about their taste.These people can belong to any income-group, age group, occupation and profession.i. Elements- both sex unisex (Male/ Female)ii. Sampling Units- person between the age of 20 to 40iii. Geographical Region- Gurgaon (IIMT Campus)iv. Time- January to February 20122. Frame of SamplingThe data would be collected from the IIMT students as well as Faculty.3. Techniques of SamplingThe Stratified Sampling Technique is used to collect the data.4. Size of SampleIn this research a sample size of 30 respondents is to be taken.
4. 4 IntroductionRestaurant is a French word which means “to restore”- a place where we are restored tostrength and vigor refueling, as it were, with food.“A successful restaurant makes everything in it, including the patrons, seem a little betterthan they are.” (Cooley, M. 2001). Restaurant is a place where the people is buying theirbasic need food and comes for the entertainment, reputation, good atmosphere and the bestquality of food.The basic need of human is hunger. The human body needs food for energy and sustenance.So that people is buying food from a fancy restaurant or a normal stall based on theirbudget.Convenience is also a factor that forces people to eat out. Many people, who don‟t have timeto prepare food at home, find restaurant convenient. There are restaurants that cater to allsegments of society.Social occasions are also a great reason why people eat food in restaurant. Businessmanmay want to think of their families to celebrate birthday, anniversaries, religious festivalsetc. in a specialty restaurant.Entertainment is a great reason to eat out. That is why restaurants go beyond food andprovide costumes, showmanship and music to create an amusing environment. Night cluband some specialty restaurants provide sheer entertainment.
5. 5 Literature Review-According to Srinivasan, S., service economy is booming @ 55% in India and more is thecustomer demand at economic rates because of changing external environment awareness.He considered many researchers like Schemenner and verma in this paper. This paper talksabout shift in efficiency and also gives many provisions in this regard. (Srinivasan, S.,2006)The research shows that many attempts have been made to examine customer perceptionabout organic food available at a restaurant. The report also comprises of the factorsresponsible for declining preference of the customer for the organic food. The researchconcludes that women are more interested in organic food than men and they buy organicfood more frequently than men (Davis et al., 1995). Education also plays an important rolein developing consumer attitudes towards the purchase of organic product (Lea & Worsley,2005).Dube et al. are saying that people with higher education have more positive attitude towardsthe organic products as they are more aware about the products. The purchase of organicgoods in the restaurant also depends on the income level of the consumers. The people withhigher income are more likely to purchase organic products and they have more positiveattitude. The satisfaction level of the customers also determines their attitude towards theproduct. If the consumer is highly satisfied they will buy the product again (Dube et al.2005). The process of a restaurant starts with the client when he places his order. Theservice environment plays an important role in customer satisfaction. Many restaurants playsoothing music for the entertainment of its customers; many restaurants have a greatambience which attracts the customer. The environment within the restaurant plays a veryimportant role in attraction and satisfaction of the customers (Yalch & Spangenberg,1995).Knutson et al. presents findings from a survey of 85 seniors regarding the important thingsthat customers consider in selecting a restaurant. He researched that two factors, Experienceand incentives are two attributes that are judges on factor and discriminate analysis. Toconclude, he also gave few implications. (Knutson, B., Beck, J. et al., 2006)
6. 6In research done by Stevens et al., he mentioned about a reliable questionnaire called„Dineserv‟ to know the feedback of customers visiting any restaurant. This gives an insightabout what a customer wants and what standards to be maintained and how should arestaurant operator determine for satisfying the hidden needs of guests. (Stevens, p.,Knutson, B., et al. 1995)According to Vanniarajan, T., research done on increasing craze for restaurant services, hementions about increasing income, urbanization effect and availability of easy transport andcommunication facilities in recent years. But this also creates a competitive market in foodservice and forced restaurants to maintain quality and standards for a high-level customerexperience and a continuous quality improvement. This paper therefore discussed thequality attributes considering the study done by graduate students. He concluded about fiveimportant DINESERV variables that make it possible. (vanniarajan, T., 2009)According to various studies, aroma helps in changing human‟s behavior and theiremotions. It can change human mood into another mood. It is also help full not makingconsumer hyper at a time.(Gue´guen, N., and Petr, C., 2005) Customer satisfaction isclosely related to the customer expectations if the services able to full fill the expectationsthat means they have did their job.(Farhana, N. and Islam, S., 2011)According to Rasli, A. Main work for any restaurants with providing quality food is thatcustomer satisfaction. Satisfaction leads to success and attracts more and more customers.Satisfaction is strongly related with quality. If the owner of restraints or any hotel providesservices with quality it automatically satisfied their customers. For that service providershould check service quality measurement timely to know the level of quality they areproviding and it will also help to do some changes regarding quality improvement and italso increase the customer‟s level of satisfaction and encourage customers to come again.(Rasli, A. 2011)Verma, R., Pullman, E. and Goodale, J. have done extensive literature survey and found thatcase analysis of Food – Court operations at Chicago‟s O‟Hare, one of the largest and busiestinternational airport terminals. Food services are mostly preference three language groupswhich are English, Japanese and Spanish. The discrete choice analysis process is using
7. 7different hypothetical changes for the four restaurants operating in the terminal‟s food court.Customer always chose the combinations feature that they want the most and expansions inthe menus, particularly the addition of menu item. Employee is always doing interactionwith customer, reliability and speed of completing transaction. Product is covering tangibleitems such as building design, printed materials, employee appearance, cleanliness levelsand branding variety. According to Clark, cross national studies are very important ininternational market settings because of national difference exist, difference can be observedand difference significant bearing on both consumer behavior and strategic decision marketsfirms. (Verma, R, Pullman, E and Goodale, J., 1999)Goyal, A. and Singh, N.P. have done the research and found that the purpose of paper seeksare to estimating important of various factors which is affecting the choice of fast food byIndian young customers. Goyel, A. is analysis the consumption patterns like impact ofhygiene, nutritional values and rating of various attributes of McDonald‟s and Nirula‟s. TheIndian young customer are having a passion for visiting fast food for fun and change buthome foods are the first choice. Because they has highest nutritional values followed byambience and hygiene. McDonald‟s have the higher score in rating differs significantly onthe seven attributes accepts “variety”. Customer is feeling that fast food is providingadditional information on nutritional values and hygiene conditions inside kitchen but fastfood is mainly focus on quality and variety of food beside the others service. There is a needto communicate the young consumers about the hygiene and nutrition value of fast foodwhich is helping trust in the food provided by fast food players.(Goyal, A. and Singh, N.P.,2007)Markovic, S., Raspor, S. and segaric, K. have done the study on restaurant service quality.They have the same aims which are: (a) difference between perceived and expected servicequality, (b) assess customers‟ expectations and perceptions, (c) identify the number ofdimensions for expectations and perceptions scales of modified DineServ model and (d) testthe reliability of the applied DineServ Model.They are saying after study that perception scores are lower than expectations, its means lowlevel of service quality. Seven factors are telling about best explain customers‟ expectationsand two factors are telling about best explain customers‟ perceptions regarding restaurant
8. 8service. This case study is helping to indentify the strengths and weakness of service qualityand implement an effective strategy to meet the customers‟ expectations. The most prospectitems were “accurate bill”, Clean rest rooms”, “clean, neat and dressed staff” and cleandining areas” which is wrong under the dimensions reliability and tangibles.(Markovic, S.,Raspor, S. and segaric, K., 2010) Data Analysis: Respondent Profile:This survey is showing that there are 57% female respondents and 43% male respondents.The elements of this survey are both sex unisex male and female. The majority of femalerespondents are more than the male respondents and the respondents are not equal.Female57%Male43%Gender
9. 9The survey shows that 53% respondents are at below 30 years age group and 40%respondents are at 30-40 years age group and 7% respondents are at 40-50 years age group.Below 3053%30-4040%40-507%above 500%AgeGraduate27%Post Graduate40%ProfessionallyQualified33%Education
10. 10The survey shows that only 27% respondents are graduate, who 50% graduates are havingthe knowledge regarding the specific food and 50% respondents don‟t know. 40%respondents are post graduate, who 54% respondents are having the knowledge regarding thespecific food and 46% respondents are not having the knowledge regarding the specific food.33% respondents are professionally qualified, who 43% respondents are having theknowledge regarding the specific food and 57 % respondents are not having the knowledgeregarding the specific food.The survey shows that 50 % respondents are know about the traditional cultural- specificfood of the ethnic tribes depicted at IIMT‟s restaurant and 50% respondents are not knowabout this. All questionnaires fill up by IIMT students and faculty. The survey has done inIIMT campus.Yes50%No50%Knowledge regarding the specific food
11. 11The survey shows that 56% respondents are like Food quality in the IIMT Restaurant becauserestaurant is providing food, if food quality is not good customer will not go again in therestaurant. 20% respondents are like service. 7 % respondents are like price of food. 7%respondents are like menu. Only 10 % respondents are like ambience. The survey is tellingabout that more than 50 % customer are going for quality of food. Hypothesis:Null HypothesisH0: µi ≤ 4, where “i” is the variable that keeps on changing.Alternate HypothesisH1: µi > 4, it means that scale is statistically significant.NOTE: Here i= 1 to 22. It is the index no. for the scale items given in the questionnaire.Service20%Food Quality56%Ambience10%Menu7%Price7%Factors like more in the Restaurant
12. 12The questionnaire is based on 7 point scale ranging from1- Highly disagree2- Disagree3- Slightly disagree4- Indifferent or Neutral5- Slightly agree6- Agree7- Highly AgreeFor Hypothesis T-Test has been considered; this is due to the sample size and the samplesize in this paper is 30 and T-test is used, where the sample size is 30 or less than 30.T-test has been calculated on the basis of:T-calc. = (Average- neutral value)/ (S.D./sqrt (n))For calculating T-tabulated we assumed that the value of the level of significance is 0.05 andthe degree of freedom is 29. In this case total respondents are 30 and the calculation ofdegree of freedom is (n-1) i.e. (30-1 =29). Result:T-calc.> T-tabNull hypothesis is rejectedT-calc. < T-tabNull Hypothesis is accepted
14. 1418 µ18<=3 µ18>3 3.4148 0.6830 T-calc.<T-tab Accept19 µ19<=3 µ19>3 4.8631 0.6830 T-calc.<T-tab Accept20 µ20<=3 µ20>3 4.1675 0.6830 T-calc.<T-tab Accept21 µ21<=3 µ21>3 4.2276 0.6830 T-calc.<T-tab Accept22 µ22<=3 µ22>3 2.4145 0.6830 T-calc.<T-tab AcceptThe subscript (1-22) is the indicator for statement 1-22 in the questions.In this tables T-calc. > T-tab. Value is showing that null hypothesis (H0) has been rejectedand T-Calc. < T-tab. Value is showing that alternate hypothesis (H1) is accepted. Five ofstatements in the questionnaire are related to menu. Five of statements in the questionnaireare related to food taste, quality, Temperature. According to this survey all questionnaire areaccepted. Its means respondents are satisfy with the food quality, service, ambience, priceetc. Chi Square Test:H0:- Knowledge regarding the specific food is independent of educationH1:- Knowledge regarding the specific food is not independent of educationI have applied the chi square test on the basic of questionnaire. Chi square test is used forknow the relationship between two factor. The questionnaire has two questions on theeducation and Knowledge regarding the specific food. I fill up that question in IIMT campus.The survey shows that 50% respondents know about the specific food in IIMT restaurant and50% respondents don‟t know about any specific food. Graduate respondent are 50%, whohave knowledge about specific food. Post graduate are 54%, who have knowledge aboutspecific food. Professionally Qualified are 43 %, who knowledge about the specific food.
15. 15X2Cal > X2tabNull hypothesis is rejectedX2Cal < X2tabNull Hypothesis is acceptedX2Cal = 0.209α = 0.05X2tab = 5.990Comparison between T-calc. and T-Tab. = X2Cal < X2tabDecision is accept.Conclusion of Chi Square Test: - there is no relationship between Education andKnowledge regarding the specific food which means Knowledge regarding the specific foodis independent of education.
16. 16 Conclusion:In the restaurant, the most important factor is food quality. The survey shows that mostlycustomer are going for food quality in restaurant. Second important factor is service. Afterthe food quality customer are going for good service. The entire five star hotel restaurants aregiving good service. The most important factor of restaurant failure is food quality andservice. Restaurant is gaining profit which is giving good food quality, service, ambience,menu item, and price. IIMT restaurant is giving good customer satisfactions. Recommendations: Limitation:It is not possible to collect the data from whole region as sample size is small so onlypreference to be given to Gurgaon.Lack of chances of mistakes.Respondents don‟t have a time to read the full questionnaire as they fill it randomly.
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19. 19 APPENDIX:Questionnaire: Dear respondent, I, Sachin Kumar, want you to fill this questionnaire on“Consumer Behavior in IIMT Restaurants”. Please give your valuable time.Personal DetailsGender: Male FemaleAge: Below 30 30-40 40-50 above 50Education: Graduate Post Graduate Professionally QualifiedOccupation: Business Student Professional HousewifeGovernment Service RetiredYearly [family] income: Below 4 lakhs 4 lakhs to 8 lakhsabove 8 lakhs1. Which of the following factors you like more in this restaurant?Service Food Quality Ambience Menu PriceOther ………………..2. Do you have any knowledge regarding the traditional cultural-specific food of the ethnic tribesdepicted at IIMT‟s Restaurant?Yes No3. Do you have any knowledge regarding the traditional cultural-specific food of other tribes ornationalities?Yes NoIf Yes please specify……………………4. How satisfied are you with the whole meal experience offered at IIMT‟s Restaurant?Totally dissatisfied dissatisfied neutralSatisfied totally satisfied
20. 20The following set of statements relate to your opinions about the Restaurant. Please showthe extent to which you think the Restaurant possess the features described by each statementby ticking one of the seven numbers next to each statement. If you agree to the maximum,please tick 7, and if you agree the minimum please tick 1. 1- Highly disagree,2- Disagree, 3- Slightly disagree, 4- Indifferent or Neutral, 5- Slightly agree6- Agree, 7- Highly Agree5. A complete traditional menu 1 2 3 4 5 6 76.menu with some traditional dishes 1 2 3 4 5 6 77.A menu with traditional ingredients prepared in a western manner 1 2 3 4 5 6 78.The current menu 1 2 3 4 5 6 79.Presentation or appearance 1 2 3 4 5 6 710.Taste of the food 1 2 3 4 5 6 711.Temperature of the food 1 2 3 4 5 6 712.Menu item variety 1 2 3 4 5 6 713.Food quality 1 2 3 4 5 6 714.Authenticity of the food 1 2 3 4 5 6 715.Friendly, polite and helpful staff 1 2 3 4 5 6 716.Attentive staff 1 2 3 4 5 6 717.Efficient service 1 2 3 4 5 6 718.Staff have food and beverage knowledge 1 2 3 4 5 6 719.Staff have culinary heritage knowledge 1 2 3 4 5 6 720.Sympathetic handling of complaints 1 2 3 4 5 6 721.Restaurant‟s temperature 1 2 3 4 5 6 722.Restaurant‟s appearance 1 2 3 4 5 6 723.Décor (Table setting, crockery and cutlery) 1 2 3 4 5 6 724.Staff appearance 1 2 3 4 5 6 725.General excitement a place generates 1 2 3 4 5 6 726.Music 1 2 3 4 5 6 7Thank you very much for your participation and for completing the “dining meal experience”questionnaire.Your participation and time are greatly appreciated.