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AN ANALYTICAL STUDY ON CUSTOMER PREFERENCE AND SUCCESS FACTOR OF RESTAURANTS IN SOUTH MUMBAI (Disseratation)

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AN ANALYTICAL STUDY ON CUSTOMER PREFERENCE AND SUCCESS FACTOR OF RESTAURANTS IN SOUTH MUMBAI (Disseratation)

  1. 1. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 1 111401222 AN ANALYTICAL STUDY ON CUSTOMER PREFERENCE AND SUCCESS FACTOR OF RESTAURANTS IN SOUTH MUMBAI Project Submitted to Welcomgroup Graduate School of Hotel Administration, Manipal Submitted By Kunal Bapna 111401222
  2. 2. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 2 111401222 ACKNOWLEDGEMENT I would like to offer my sincerest gratitude to the institute, Welcomgroup Graduate School of Hotel Administration, Manipal, and Manipal University for providing me an opportunity to conduct this research. I would also like to thank the Principal Prof. Parvadhavardhini G as well as the Project coordinator, Prof. Y.G. Tharakan, for all the patience and guidance provided to me throughout the dissertation period. I take this opportunity in expressing the sense of gratefulness to Mrs. Shreelatha Rao and my faculty mentor Mr. Raghavendra for their time and guidance. I would also like to acknowledge to Mrs Jyothi Mallya, our college librarian and her staff for providing me access to the facilities in the library. Further, I would like to thank all other teaching and non-teaching staff for their undying support throughout this academic year. Last but not the least I am grateful to my family, for their love, understanding, prayers, guidance, and encouragements.
  3. 3. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 3 111401222 DISCLAIMER The information contained in this research is in no way to be interpreted as recommendation by Welcomgroup Graduate School of Hotel Administration, Karnataka, India, for resting down any industrial standards or as any kind of proposal to be adopted by one or be enforced upon any member of the hospitality industry.
  4. 4. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 4 111401222 DECLARATION I hereby declare that this dissertation is my own original work and has not been submitted before to any institution for assessment purposes. Further, I have acknowledged all sources used and have cited these in the reference section. Kunal Bapna 111401222
  5. 5. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 5 111401222 TABLE OF CONTENTS Chapter 1: Introduction 09 1.1 Michelin Star Restaurants 10 1.2 AArosette 11 1.3 Restaurants in Mumbai 13 1.4 Themed restaurants in Mumbai 15 Chapter 2: Statement of Problem 16 Chapter 3: Literature Review 18 Chapter 4: Research Methodology 27 4.1 Introduction 27 4.2 Purpose of Research 27 4.3 Research Design 27 4.4 Research Question 28 4.5 Research Method 29 Chapter 5: Data Analysis 30 5.1 Introduction 30 5.2 Theme of the restaurant 31 5.3 Age 33 5.4 Profession 34
  6. 6. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 6 111401222 5.5 Education Level 36 5.6 Willingness to Pay 37 5.7 Frequency of visit 38 5.8 Preference 39 5.9 Attractiveness 40 5.10 Service Staff 41 5.11 Cleanliness of the restaurant 42 5.12 Nutrition of the food 43 5.13 Menu 44 5.14 Lighting Design 45 5.15 Background Music 46 5.16 Speed of service 47 5.17 Parking 48 5.18 Memorable experience 49 5.19Kind of experience preferred 50 5.20 Overall Satisfaction 51 5.21Crosstabulation 52 5.21.1Age* Frequency of visit 52 5.21.2 Kind of places you prefer while dining out *Age 53 5.21.3 Age* Willingness to pay Chi square test 54
  7. 7. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 7 111401222 5.21.4 Age* Cleanliness of the overall area One way ANOVA test 56 Chapter 6: Conclusion & Summary 58 Annexures 60 References 63
  8. 8. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 8 111401222 Abstract Multiculturalism is an intrinsic part of the historical formation and development of any country. Mumbai is also a multiethnic and multilingual society, a trend that will increase in the future. One of the important components of ethnicity is expressed in the manner in which ethnic groups prepare and serve their food. Every group uses a distinct method of cooking and traditional ingredients in their dishes. Ethnic foods represent a dynamic and evolving category. Over time foods that were considered ethnic, like thali, have become a part of the mainstream in the Indian diet plan. Most recently, restaurateurs are beginning to mix and combine the influences and traditions from a variety of ethnic origins in a fusion of cuisines and flavors. Today, international food is very popular. Many different cuisine restaurants open each year in the city to meet the needs of the population and others. Today in the city, Westerners are more accepting of international cuisines than before. It is important for restaurateurs to know consumer demand before opening a restaurant due to the high rate of restaurant failures. Sometimes the ambience of the restaurant will greatly affect customer preferences because they are not familiar with the new setting, so they may feel uncomfortable while dining. An example is eating with chopsticks at a Chinese restaurant or sitting on the floor to eat in a Japanese restaurant. Diners’ preferences in association with themed restaurants contain physical and psychological components. Twenty of these features were adopted to compute a study. A total of 205 respondents who had visited themed restaurants at least once in recent year were questioned using a suitable sampling approach. Independent sample test, Chi-square test and cross tabulations were used to study the consequences of the principle factors and to attain a reliable result of consumers’ preferences. The willingness to pay per meal for one person ranged from Rs.600-800 to 1500 and above. Menu, Parking, location, cleanliness, background music and service staff, service speed, showed various influence on individuals. Keywords: Kind of preferred experience, Theme (cuisine of the restaurant), Willingness to Pay, Age group
  9. 9. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 9 111401222 Chapter 1 Introduction According to Lynne Olver, 2000 the establishment of outside eatery dates back to ancient times where street vendors and public cooks were becoming famous in Ancient Rome. Medieval voyagers ate at inns and convents. This gave rise to the growth and expansion of RESTAURANT INDUSTRY in Paris during the course of French Revolution. The present day working is a part of industrial revolution. Restaurant is derived from the French word restaurer meaning “to restore”, the practice of serving consommé to aid unhealthy people. Late 19th century in Montmartre which saw the opening of the first ever café and cabaret was an outlet offering drinks rather than a full scale food service. In their opening times, these arty cafes had a drive that celebrated the radical Paris Commune of 1871. Another historical event was opening of Café Du Bagne (Café of the Penitentiary) in 1885. Pictures in the cafe illustrated a prison eating hall and addressed revolutionary heroes. The staffs were dressed as inmates, which created a thrill among the mob resulting in supporters of the cause lining up to dine in. Many of the cafes in that region celebrated the morbid through paintings and ambiance depicting death and injury. Inspiring from this movement the world saw openings of many theme based restaurants elsewhere. In recent times, the global practice of “eating out” has been referred to as the democratization of luxury” (Mennell, 1985; Laermans, 1993). In Beardsworth and Keil’s (1997) description, the existence of themed restaurants reveals the transformation of leisure into a gigantic industry, and the formation of a food arrangement highlighting dining out as a recreational activity. To understand them logically, we need to “categorize and model the way the mind works” (Westen, 1996, p.17). The main purpose of this dissertation is to summarize a report, focusing to find out the important reasons that influence consumers’ preferences and choices related to specialty cuisine restaurants in South Mumbai. Consumers and entrepreneurs need information to make their decision in
  10. 10. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 10 111401222 regards to purchasing and establishing a new venture in this locality. This study will not only survey the factors related to customer preferences, but will also examine how to create an appropriate pricing to cater to the crowd in South Mumbai. The information collected from this research can aid entrepreneurs and market researchers of restaurant business. Restaurants offering different cuisine in and around South Mumbai make it a hotspot for restaurateurs to invest in providing new and unique dining experiences to their guests. The standalone restaurants have proven to be a tough market competition for restaurants based in a five star luxury hotel. Headed by experienced chefs these restaurants are gaining popularity. To create a fine-dine specialty experience one has to choose a suitable location with a view, a strong team and an USP that will attract customers. Since the capital investment is quite huge, the owners expect that due to the theme or cuisine offered, a great number of people would like to come and experience themed restaurants. Many restaurants who are originally not a specialty restaurant, host theme nights. These might be nights focused on a particular food or local cuisine, entertainment or something exciting. Due to inflow of new consumers into the locality, because of the commercial sectors established in the area, the market is ready to cater to large amount of tourists and locals. The concept of specialty cuisine restaurant is capable to appeal to large number of people who are either a resident or a tourist. 1.1 Michelin Guide The Michelin Guide is an annual reference books published by the French company Michelin from a long time. The term normally refers to the Michelin Red Guide, the oldest and best-known European hotel and restaurant reference guide, which awards Michelin stars for exceptional food and service quality. The acquisition or loss of a star can have adverse effects on the success of a restaurant. Started off as a promotion for people to make road trips, the very identical company that manufactures tires came up with the idea of this food guide. They namelessly started rating restaurants in a three-star system. Over the past century, perfecting their system of rating, Michelin guide starts became more and more glorious all over the world
  11. 11. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 11 111401222 The quality of food, ambiance, and service provided, menu and overall experience is what the Michelin officers concentrates on while rewarding or withdrawing a star to a restaurant. Stars awarded to restaurant acts as an accomplishment for the chefs. Chefs actually exhibit them with much delight since these stars are like medals of honor and pride. The Michelin guides are made according to countries and cities all across the world. India unfortunately is still waiting for its first Michelin starred restaurant, which is denoted by red book, but India does have a green book. A green Michelin guide sites tourist destinations rather than restaurants range from worth a trip" to "worth a detour", and "interesting". The rating systems are, 1 Star: Worth Stopping For 2 Stars: Worth a Detour 3 Stars: Worth a Trip The process of Michelin is very discrete in nature. The Michelin officers visit the establishment without prior notice and checks smallest of details to finally judge the worth of the restaurant. Indian restaurant with Michelin stars are example Tamarind and Rasoi in London. There are also restaurants like Junoon and Tulsi in New York. In 2010 Michelin guide awarded Japan as the country with most number of stars which created an issue and rumour of Michelin awarding stars to establish their tire selling business in Japan. This even created a problem for Japanese chefs who started getting unexpected reservations expecting creativity whereas they preferred traditional cooking. 1.2 AA rosette The AA rosette is one of the UK's most standard and trusted brands in applauding and rating hotels restaurants and guest accommodations. With over 100 years of experience it is an important tool to subdivide restaurants in United Kingdom Background–AA rosette guide One rosette
  12. 12. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 12 111401222 Chefs should portray a mastery of basic skills and knowledge and be able to produce dishes of sound quality with clarity of flavors, fresh ingredients. Two rosettes Innovation, greater skill, consistent and judgment in pairing and balancing ingredients are essential at this level of cookery. Three rosettes Game of big league. Anticipations from the kitchen are high: precise technique, flair and creativity must be seen in every plate and usage of fresh ingredients and balancing the flavors are all-important. Four rosettes Four, this level, not only should skills be mastered, but there should also be courageous ideas, and they should click together. There is no room for mistakes. Flavors should be fresh and able to create a wow factor in the mouth. Five rosettes Supremacy honor is bestowed only when the cooking is at the pinnacle of accomplishment. Flavors, pairings and textures show a flawless sense of balance, making each dish unique and memorable. India is a growing nation in reference to acceptance for international cuisine and restaurant concept. Till date “HOME COOKED FOOD” is considered the best and is always preferred. Though, within the past few years considering the population age shift the country has positively witnessed a change in preferences and trends in regards to restaurant dining. The Indian restaurant industry is growing at an annual rate of 7% and is worth Rs.75,000 crores. The organized segment customs to a little more than 3000 outlets and highly uneven with 1.5 million eating outlets. However, the organized segment is speedily growing at an annual rate of 16%. With a growth rate of 21%, Quick service segment is the perfect winner in the eating out market.
  13. 13. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 13 111401222 Organized Segment is expected to touch Rs.22, 000 crore by 2017, driven by:  Rising disposable income  Nuclear family construction  Increasing working population  Speedy urbanization and consumerism  Increased private equity interest "Indians on an average eat out lesser than 2 times a month, compared to 40 times in Singapore. Even a small increase in this number provides a huge market opportunity for restaurants in India." (Source: India - TTM Multiples as on 14 March 2013) For India to accept the concept of dining out on a frequent basis one has to get new trends that appeals to the general public. Hour of the need is to have a long term benefit (health) rather than a short term (convenience). According to Hudson Riehle, senior vice president of the National Restaurant Association’s research and knowledge group“Today’s consumers are more interested than ever in what they eat and where their food comes from, and that is reflected in our menu trends research. True trends – as opposed to temporary fads – show the evolution of the wider shifts of our modern society over time, and focus on the provenance of various food and beverage items, unique aspects of how they are prepared and presented, as well as the dietary profiles of those meals.” 1.3 MUMBAI Mumbai (previously known as Bombay) is the biggest metropolis of India. A city that is full of life and is also known for its well-known tourist’s places, commercial hubs restaurants and
  14. 14. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 14 111401222 government bodies. It is also known as the financial capital of India. The city is located on the western part of the India and is the capital of Maharashtra. (Source: http://www.saharastar.com/about-mumbai.aspx)
  15. 15. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 15 111401222 1.4 RESTAURANTS IN MUMBAI The land of seven islands- Mumbai, also known as the city that never sleeps, is a densely inhabited city in India offering a range of culinary experiences. Restaurants across the city are in cahoots to bring out the food connoisseurs with a range of food showcasing the art of fine dining to mouthwatering street food. The dining experience at an upscale restaurant in Mumbai is more or less the same as elsewhere in the world. This city serves cuisines from practically every part of the world. Cuisine covering length and breadth of India ( Punjabi to South Indian to Eastern Food) and International (Sushi, Chinese, Italian, Japanese etc.). City is also home to many successful chain restaurants of the world ( KFC, Pizza Hut, Hard Rock Café , T.G.I.F , Chilli’s etc. ).But to get a real flavor of what's unique to Mumbai; one will have to go a little lower down the scale and experience the street food and Irani cafes. Most of these cafes were situated at the corner of the building in old areas and commuters chose such spots to spend time while the hustle-bustle of the city goes on. Nevertheless the coming up of new restaurants and cafes has almost removed these cafes from the maps; still there are a notable few of these cafes catering to their guests. Mumbai, like its pace, has restaurants coming up very quickly. There are various renowned themed restaurants in this city. These restaurants offer a great dining experience for guest to have a taste of their authentic culture.
  16. 16. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 16 111401222 Chapter 2 Statement of the Problem The concept of theme based restaurant is growing at a very fast pace. Every entrepreneur wants to be different from the rest so that a new element can be presented to the guests. Distinction is seen in form of cuisine offered, décor, menu designing, overall concept etc. Customers have very high demands, fulfilling of which can make a restaurant successful in the business. Since the majority of guests are from upper-middle class to rich category, they are likely to be the ones to try new cuisines. It would be good for the restaurant owners/managers to know what people want and what they are searching for;. The main reasons customers choose where to dine may depend on the authenticity of the restaurant. Or customers may desire to experience a cuisine blended like Asian Fusion. For the newly opened fine dining restaurant, knowledge of its own image is of great value. By conducting research on restaurant images, the marketer can ascertain whether the image perception or services of this type of restaurant is in accordance with the needs of the target market. If unfavorable images are developing, then entrepreneur can identify possible areas for revision in the strategy. If favorable images are developing, then continuance of the same marketing strategy is apposite. Most customers never experience the authenticity of a cuisine. They may not know the difference between what is authentic and what is, as it is said “the Indianite version”. Therefore, most people expect their first experiences of the taste and texture of the food to be consistent in every ethnic restaurant. Sometimes the ambience of the restaurant will have a great effect on the preference of customers because they are not familiar with the new setting, so they may feel uncomfortable while dining. Also, customs of the culture like eating with chopsticks at Chinese restaurants or sitting on the floor at Japanese restaurants may also seem awkward for customers. Restaurateur nowadays boasts of offering “the authentic experience” but they get inclined towards the comfortable option rather than the authentic one. Surprising to this fact, the restaurant still runs successfully. It is said one cannot sleep well, eat well, and work well until he hasn’t dined well. Since, food is something which bonds people culturally too; I have decided to examine an upcoming trend in the
  17. 17. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 17 111401222 restaurant industry- theme based restaurants. The diverse nature of themed restaurants in such a small locality triggered me to carry out a survey getting to know about customers’ preference towards this aspect of dining. The question most crucial to my study is what is the preference pattern of customers towards themed restaurants when compared to other dining options and reasons for new restaurants opening up at a steady pace in the locality.
  18. 18. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 18 111401222 CHAPTER 3 Literature Review Understanding the guest's needs and wants is invaluable when starting a new restaurant. A lack of understanding of customer preference leads to problems in both product and service design (Schall, 2003). Research shows that the most successful restaurants are the ones which have anticipated guests needs fully and are aware of customer preferences and thus create their service strategy in line with targeted market needs (Victorinoet al, 2005). Therefore an important focus on customer loyalty is most probably the reason to become a success in the restaurant buzz. Generally speaking, a themed restaurant’s main features may be described as follows: 1. Cultural resources include art, movies, sports, cartoons, pop music, old acquaintances, fashion, the natural environment, locality, nationality and ethnicity. 2. No/ less emphasis on culinary content. 3. Menu and tableware correspondent with the theme. 4. Visible, tangible and acoustical devices include toys, décor, logos, musical instruments and souvenirs. 5. Differences in programs and exhibitions. 6. Geographical and traditional accessibility. (Source: Beardsworth&Bryman, 1999) Beardsworth and Bryman (1999) also categorized four types of restaurant theming: Ethnic theming which produces a distinctive setting which lays claim to being a reflection of some exotic, but recognizable culture. Parodic theming on the other hand is a kind of theming found in Rainforest Cafes, which creates a sense of involvement in the fantastic. Reflexive theming is done by outlets like KFC, McDonald’s etc and becomes a theme that entails a transition from a brand in itself to a brand for itself. Reliquary theming is kind of theming displays sacred relics and creates a sense of pilgrimage to the experience.” Such kind of theming can be found in restaurants like Hard Rock Café, Planet Hollywood etc.South Mumbai is seen to
  19. 19. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 19 111401222 have the last two categories of the restaurants. KFC, Pizza Hut, Dominos etc. are reflexive themed where as Hard Rock Café, Rude Lounge , Jugheads etc. are reliquary themed . For the past several years, people have begun to eat out more than ever before. Today consumers spend substantial amount of their food rupees at restaurants. These figures are expected to increase with time. There are many factors affecting this including: an increasing amount of single households, more families having double income providers, a need for companionship, dieting fads, and health issues (Kalmar, 2001). Restaurants are constantly adjusting to fit the needs of customers and to keep up with the changing times. They continue to provide the best possible service for everyone. There will always be people who need and want to go to restaurants. Businesses will continue to send their employees on business trips and people will continue to want food cooked for them on special occasions or after a long hard day. Vacationers must have a place to dine out while on the road. Utami (2004) describes ethnic food as an admission of a different region through its categorical cuisine and its origin. Utami (2004) further mentioned that people will anticipate the food as ethnic who are from different area from its origin. Based on restaurant segmentation study done by Olsen et al (2000), an ethnic restaurant is defined as full service restaurant offering dishes from foreign origin country, for example, Japanese, Thai, Chinese, and Italian. For consumers, tradition themed restaurant is most common. The reason why consumers dine at ethnic-themed restaurants is variable. For some of the consumers, ethnic-themed restaurants are a connection to their culture and a novelty too, (Negra, 2002) and interrelate with a different culture and gastronomy (Bailey and Tian, 2002; Barbas 2003; Germann-Molz, 2003 ; Long 2003). Currently the call for ethnic cuisine and theme restaurants has risen (Dundelston, 2003; Lewis, 2007; Wahlgreen 2005). The author debated that in order to measure a themed restaurant, every ethnic restaurant, thathas its design based from the crockery, food and restaurant décor of a national culture is a theme restaurant. The example of these kinds of restaurants can be Chinese, Japanese, Mexican, Indian and Korean. A restaurant which signifies several national decorations using traditional ethnic
  20. 20. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 20 111401222 colour and artefacts and serving exotic cuisine is a theme restaurant. (Walker 2007) (Source: http://www.ukessays.com) Upon entering a restaurant, customers will have certain perceptions of thedining experiences they are about to encounter. A study by Sommerville (1995) divided restaurant diners into 3 categories: culture-oriented customers, restaurant-oriented customers, and preparation-oriented customers. Each of these groups was separated by using demographic characteristics, attitudes, and the amount of knowledge, interest, and experience with ethnic cuisines. The culture-oriented customers were mostly age between 40 to 59 years old with a 50/50 ratio of men to women and a comfortable household income. This group of customers looked for the new and different, and wanted to taste untried dishes and exotic flavors. They also desired a challenge and enjoyed trying new cuisines as a hobby. This group of customers found inauthentic cuisine with evocative decor provided by natives to be interesting. They also liked trying special native beverages. The next group in the study is restaurant-oriented customers mostly between the ages of 40 to 59 years old, a 49/51 ratio of men to women and a comfortable household income though less than previous class. This group represented 40 percent, which is the largest segment of restaurant patrons (Papadopoulos, 1995). However, they had less experience with ethnic food than the culture-oriented customers. They looked for good food in a warm comfortable atmosphere. Dining in an ethnic restaurant was just another dining experience for them. This group also liked the friendly and attentive service and was big fans of take-out and delivery services. The last of these groups are preparation-oriented customers, with 37%being 60 years old or older and 73% being female and 27% male. This group likes to learn how to cook new food but is least interested in exotic foods especially hot and spicy. They preferred restaurants that offered cooking classes, gave away recipe cards, and had in-house ingredients available for sale (Sommerville, 1995). A great way to refresh ones work week, is to go out for dinner with family, friends or just for celebration. Everyone has their own taste in restaurants, from fine dining to casual, to quick
  21. 21. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 21 111401222 service etc. Factors other than cuisine also entice customers to experience a new restaurant or revisit the old restaurant. While, some consumers prefer to experience the regular dining experience. Theme restaurants cater to the demand of change for these kinds of consumers.(Source: TheDailyMeal.com) As mentioned by Brian Ratto (2013), when you walk into Take 27, your attention may be captured by the Tyrannosaurus rex over the bar, the Mr. Spock costume from the “Star Trek” movies or the John Wayne Movie posters on the back wall. Owned and operated by Georgia Steiger of Linden, her husband Choya of Lodi and her daughter Alicia Schmid. They take pride in personalizing their customer’s experiences, from speciality cocktails to homemade desserts. The new restaurant located across the movie theatre, adds to the ambience of Downtown Lodi. The restaurant was named Take 27,as a play on the movie theme. “Take” comes from the clapper board that is used before running a scene of a movie until the director cuts the scene. The number 27 comes from their address. Take 27 focuses on desserts made in-house. From cookies to cheesecake, all made fresh and hot to order. They give a homemade touch to the food they cater. And since it is located nearby a movie theatre, the customers can grab a quick bite and rush for their movie, for the food doesn’t take long. Meanwhile, the movie watchers can pep up for their entertainment before or after their movie since the restaurant has much to offer than food. The ambience of the movie theme creates a different environment from the regular dining experience. (Source: LodiNews-Sentinel (CA) 2013) According to Natalie Wood (2007), ethnic-themed restaurants are possibly the second most influential socialising agents of foreign cultures, after media. An offering to the guests to have a close peek into ones culture through food. But is this what is needed?? This paper addresses an important question: How do spaces of consumers affect the sensitivity and parade of ‘authentic’ culture? To explore this, cross- cultural qualitative study was done to examine the role of chain of restaurants plays in demonstrating culture in various parts of the country. The picture these restaurants provide is a mostly mainstream, outdated, inaccurate representation of their culture. This was revealed by the findings that were indicated by the surveyed subjects.
  22. 22. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 22 111401222 Mumbai has many food outlets to offer. But if one wants a different dining experience and enjoys the ambience too, then this city is a bag full of surprises. It has many theme restaurants too offer and these restaurants are creating a market for them and expanding their wings. Some of the theme restaurants are notably on many people’s choice, while some are still familiarising with the coming up of such kind of restaurants. Some of the various themed restaurants that we can talk about. Sporting an English theme of the 90s and its complementing food, Firangi Paani has it customers loaded with memories and a want to come back. The feel this restaurant gives is of a British Pub and a complete getaway from bustling city of Mumbai. The customers not only complement the ambience and the theme, they have their hands up in the air for positive reviews regarding the food and drinks they have on the menu. For a market of people who love regional cuisine and want to experience the feel of a rural area, The Village is popular among the demographics. Along with various muti-cuisine restaurants, themed restaurants are offering a wide variety and a good scope to experience a whole new dining experience. According to Amelia Jenkins (2012), many people have a vision to open a theme restaurant. Independent restaurant owners get to plan their own business, design their own menu and plan their own décor. Unluckily the independent restaurant business comes with its fair share of problems and restaurant owners face many challenges. Financial Many new restaurant owners undervalue the start-up capital they will need to open and run a new restaurant. In order to buy furniture and decorations, hire a new waiter and hostess, have a supply of the kitchen and bar areas, huge sums of capital are needed by new owners. After months or even several years of opening, good revenue is not achieved by most new restaurants. During recession, when restaurants have rarer customers, owners suffer a great amount financially and thus affect their business drastically. Planning
  23. 23. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 23 111401222 A decent location, a theme or style that appeals to a wide range of customers and a solid menu, is what requires a restaurant to be successful. Restaurants must stand out in the crowd, especially themed restaurants in urban areas with great competition. In order to ensure that restaurants are giving the customers what they want, the restaurant owners must continually analyse their menu and other aspects. If customers do not revel in the entire dining experience what they want or express how they want their experience to be the next time they visit, the owner will start to lose business and good word-of-mouth advertising. Thus, planning should be done well in advance to create a good dining experience for each customer through their overall theme and the complementing food and décor. Managerial Even though a restaurant’s theme and décor has much to offer to its customers, active care must be taken to ensure that there are efficient staffs to create the experience for the guests. Thus the wait, bar staff and the hostess are a large part of a restaurant’s achievement. The owner must also train the staff well and know how to grip disciplinary problems. Many a times, the staff of the restaurant play an important role in showcasing the image of the restaurant to the outside world. Thus there is a challenge for many restaurant owners to manage their staff. Competition Small independent restaurants in densely populated suburban areas or many cities face competition. Same is the case for theme restaurants in the city. A burgeoning concept, themed restaurants need a scope to expand. Enduring the competition, with the opening of many themed restaurants in the vicinity, is a task. A themed restaurant owner must know how to advertise his business, how to get in new customers and how to cultivate a repeat clientele. Large, well-known themed restaurant chains typically have an easier time drawing in customers whereas independent theme restaurant owners have to work hard to develop their own customer base. (Source: http://smallbusiness.chron.com)
  24. 24. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 24 111401222 Image as described by Oxenfeldt (1974-75) is an overall impression greater thanthe sum of its parts and considered as a combination of factual and emotional material. This viewpoint stresses that many customers will not only hold factually based opinions about a store but also will feel certain ways toward it (Oh, 1995). In other words, customers react to the store's characteristics, as they view them, in an emotional way. Lindquist (1975; Oh, 1995) synthesized store image frameworks into nine independent categories referred as image attribute groups. They are considered as the most comprehensive empirically image attributes and provide a good general base that restaurant managers can use in formulating store image (Rosenbloom, 1981; Oh, 1995).They are classified as follows: 1. Merchandise: refers to all the goods and services offered by the Restaurant such as quality, selection, styling, guarantees, and pricing. 2. Service: service in general, sales, the presence of self-service, delivery service, and the credit policies of the store. 3. Clientele: social class appeal, self-image congruence, and store personnel. 4. Physical facilities: elevators, lighting, air, conditioning, washrooms, store layout, aisle placement and width, carpeting, and general architecture. 5. Convenience: the three dimensions of this category are general convenience, location convenience, and parking. 6. Promotion: advertising and displays, and symbols and colors. 7. Store atmosphere: attributes that contribute the customer's feeling of warmth, acceptance, or ease conveyed by the store. 8. Institutional factors: reputation, and reliability. 9. Post-Transaction Satisfaction: consumer satisfaction Gender: the restaurateurs must seek to know if female patrons have different perceptions of what is important when compared with males due to the increase in female food-service patrons. Romeo (2002) indicated that females are typically getting treated worse than Males when dining out (Soriano, 2002).
  25. 25. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 25 111401222 Age: According to Siudzinski (2001), the profile of employees has to be appropriate to the age of customers. Bell (1993) concluded that restaurateurs must always search for strategies to market to the post-baby-boomers (Soriano, 2002). Restaurants new and old have been in the game of serving food. Some are serving generation kept secret recipes while others are taking a new approach and mixing things up. Recently a Bombay themed restaurant based on the concept of IRANI CAFES from the 19th century won the award for best eatery beating U.K’s Michelin star diners. “DISHOOM” was listed under top 100 restaurants by yelp. It won past REGENCY CAFÉ and famous DINER by HESTON BLUMENTHAL. SOURCE: Bombay-themed diner voted best restaurant in UK: PTI | London February 3, 2015 China opened a new themed restaurant where the décor is in form of a toilet. The seats are in shape of a bidet and cushions in shape of poop! The food is also served in small chinaware resembling bidets. The craze has flown town to town where people expect that the food won’t taste like the dish it is served in. Toilet restaurants are growing on a huge pace across China, in cities including Chongqing, Shanghai, Kunming and Hangzhou. Source: Bog-standard restaurant! New toilet-themed restaurant where diners eat out of bidets opens in china, By Ellie Buchdahl, Published: 16:36 GMT, 9 September 2013 Opened in Tokyo, the restaurant offers "gorgeous and gothic dining", but what they are offering is an opera-themed dining. The sauces are plated like musical notation;chocolate is written is the words “opera” on the dessert plate. The setup demonstrates an opera where the tables are made up of marbles and music is opera. The main focus is not the food but the décor, which seems to attract many. Source: Tokyo's theme restaurants, By Chris Michael, Thursday 27 November 2008 If one has ever wondered to eat like Batman, it is possible. A restaurant in USA came up with a concept of 250 cover restaurant overlooking Gasconade River. THE CAVE, Richland, MO offers an all American love i.e. steakhouse menu where guests can order loads of cheese and fries. For an
  26. 26. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 26 111401222 exceptional dining or photography experience one should request a table next to the crude mountain lion taxidermy. Source: thecaverestaurantandresort.com A sports bar, one of its kinds in the city. Manchester United – a hub for football lovers and Manchester United’s diehard fans around the city. One can not only view the live screening of the game but can come close to visit the mecca of football itself. It has a Wall of Fame and The Dugout area, just like a real stadium. To fuel the adrenalin rushing through the veins café and bar has a wide range of dishes on the menu with few like United Nachos, Fire Cracker Prawns, and Sloppy Joe Chicken burger being the crowd favorite. Another addition to Mumbai’s nightlife stop is Santein Bandra. There are as fine-casual can go. Tables floating in thin air, cozy tables for the romantic and a horse carriage out of the blue. This hip yet off-the-cuff bar even allows guests wearing shorts and slippers. The menu is a spice mix of dishes such as Reddy Steady Gambas (Andhra inspired prawns) and Kheema Malabari Quesadilla. Old school Gymkhana Sandwich, Baida Roti and Kheema and Egg Bhurji on Brioche are always there for non-experimental types. The bar at Santespurs up cocktails that’ll make anyone revisit the sober childhood with the taste of Dairy Milk Martini, Rum n Coke Float etc. These types of setup add to never ending list of new kind of dining experience for mumbaikars. Source: http://timescity.com/blog/new-eateries-in-mumbai/
  27. 27. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 27 111401222 Chapter 4 Research Methodology 4.1 Introduction A research has to be well planned, organized and structured. The methodology used determines the success of any research in order to achieve the set standards and goals of the research AN ANALYTICAL STUDY ON CUSTOMER PREFERENCE AND SUCCESS FACTOR OF RESTAURANTS IN SOUTH MUMBAI has been acknowledged and the research methods pursued by the researcher so as to study the problem have been highlighted in this chapter. This chapter highlights the process and techniques used for collecting, analyzing and interpreting primary data. 4.2 Purpose of the research Robson (1993), states that methodology helps to determine the technique in order to find a solution to an issue or a research question. In order to attain the desired outcome, it also identifies the procedure undertaken. Thus, a systematic and well-structured means of analyzing the data is signified by the research. The purpose of the research identifies the aim of the researcher and the means to achieve it. 4.3 Research Design The research has been designed in accordance with the theme of the study which is a quantitative research. The main purpose of the study is to identify the preference of customers regarding dining at themed restaurants in South Mumbai.
  28. 28. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 28 111401222 4.4 Research question A research question can be defined as an assertion that clearly states the phenomenon to be researched upon. the questionnaire used in this study is adopted from a study already carried out by hwang-linhsu, instructor, chienkuo technology university, customer perceptions for expectations and acceptance of an authentic dining experience in Thai restaurants by Piyavan Sukalakamala, b.i.d and a study of customer loyalty and the image of the fine dining restaurant by Rasha Alieliwa bachelor of tourism and hotel administration Helwan university Cairo, Egypt. Based on the above questionnaire, the questionnaire has been adopted as following: Table 1: Questionnaire of Preferences Related to Themed Restaurants Group No. of Item and Main Content Measure Evaluation of Themed Restaurant 1) Menu 2)Location 3) Service staff 4) Cleanliness of overall area 5) Nutritional Quality 6)Attractiveness of menu 7) Lighting Design8) Background Music 9) Speed of service 10) Parking availability 11) Memorable Experience Interval (5-point Likert-type) Follow-up Questions 12) Education level 13) Willingness to pay (in Rs) 14) Frequency of visiting themed restaurants per 15) Preference while dining out Interval Interval Demographic Attributes 16) Occupation 17) Age Nominal Nominal
  29. 29. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 29 111401222 4.5 Research Method The survey was conducted in December 2013 with the help of 101 questionnaires using five-point Likert-type scale intended to identify respondents’ preferences regarding themed restaurants in South Mumbai. Interviewers had been taught previously and were ready to direct the survey. Survey participants were interviewed through a convenient sampling approach in themed restaurants of Mumbai. Respondents were asked to answer every item in the questionnaire. The results of the survey are as follows.
  30. 30. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 30 111401222 Chapter 5 Data Analysis 5.1 Introduction Data Analysis is carried out so as to prove the research question correct and upkeep it with the data. In this chapter, the researcher will examine the data composed from the primary research in order to come to come to a conclusion and prove the research question accurate. The researcher collected the data by means of semi-structured interviews. Hence, the researcher moved towards the analysis by first recording the interviews and studying each one in detail. Following the transcribing and studying the above mentioned interviews in detail, the researcher acknowledged the emerging themes and the customer preference from all the observed data collected. Similar themes or covering themes have been merged by the researcher into one theme so as to dodge repetition and confusion. The survey questionnaires were coded and analysed by using the statistical package for Social Sciences (SPSS 14.0). Frequency counts and percentages were applied on all variables of the survey. Mean scores were applied on various variables. Two statistical techniques were used: (1) Descriptive statistics that consisted of frequency descriptions; and (2) Inferential statistics that included one way ANOVA (analysis of variance), chi-square test Descriptive statistics were utilized to display the distribution of the demographics and dining behaviour of the respondent, as well as to provide the result of the customer loyalty. The statistical factor analysis approach was used to analyse interrelationships among a large number of variables and explained these variables in terms of their common underlying factor dimensions.
  31. 31. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 31 111401222 5.2Frequency of Theme of restaurant Statistics Theme Frequency Percent Valid Percent Cumulative Percent Valid American 2 1.0 1.0 1.0 Any 2 1.0 1.0 2.0 Chinese 7 3.4 3.4 5.4 Continental 10 4.9 4.9 10.2 European 3 1.5 1.5 11.7 Indian 100 48.8 48.8 60.5 Italian 18 8.8 8.8 69.3 Japanese 4 2.0 2.0 71.2 Mediterranean 3 1.5 1.5 72.7 Mexican 5 2.4 2.4 75.1 Moroccan 5 2.4 2.4 77.6 Oriental 40 19.5 19.5 97.1 Spanish 2 1.0 1.0 98.0 Thai 4 2.0 2.0 100.0 Total 205 100.0 100.0
  32. 32. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 32 111401222 Inferences Out of valid 205 responses a total of 14 different themes of restaurants where reviewed. The results showed that INDIAN THEME constituted the highest i.e. 48.8% followed by ORIENTAL with 19.5%
  33. 33. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 33 111401222 5.3 Age Age Frequency Percent Valid Percent Cumulative Percent Valid genY 134 65.4 65.4 65.4 genX 51 24.9 24.9 90.2 genBoom 15 7.3 7.3 97.6 genTrad 5 2.4 2.4 100.0 Total 205 100.0 100.0 Inferences The results show that a total of 65.4% are in the age group of 18-27 i.e. genY ,24.9% of the respondents are between the age group of 28-43 years i.e. genX, , 7.3% of the respondents between the age group of 44-60 i.e.genBOOM, and 2.4% of the respondents are between the 61- 89 i.e. genTRAD
  34. 34. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 34 111401222 5.4 PROFESSION Profession Frequency Percent Valid Percent Cumulative Percent Valid Army 2 1.0 1.0 1.0 Assistant Manager 2 1.0 1.0 2.0 Athelete 4 2.0 2.0 3.9 Chartered Accountant 6 2.9 2.9 6.8 Chef 1 .5 .5 7.3 Doctor 24 11.7 11.7 19.0 Engineer 26 12.7 12.7 31.7 Foodie 6 2.9 2.9 34.6 Government Official 10 4.9 4.9 39.5 Human Resource 1 .5 .5 40.0 Pilot 1 .5 .5 40.5 Professor 5 2.4 2.4 42.9 Self employed 15 7.3 7.3 50.2 Service 12 5.9 5.9 56.1 Student 79 38.5 38.5 94.6 Teacher 11 5.4 5.4 100.0 Total 205 100.0 100.0
  35. 35. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 35 111401222 Inferences Responses from a total of 16 professions where obtained where, STUDENT constituted for 38.5% and ENGINEER constituted for 12.7%, being the highest two.
  36. 36. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 36 111401222 5.5 Education Level EDUCATION LEVEL Frequency Percent Valid Percent Cumulative Percent High school graduate 21 10.2 10.2 10.2 Some college 24 11.7 11.7 22.0 College graduate 52 25.4 25.4 47.3 Some graduate study 21 10.2 10.2 57.6 Graduate/professional 81 39.5 39.5 97.1 Other 6 2.9 2.9 100.0 Total 205 100.0 100.0 Inferences Results show that GRADUATE/ PROFESSIONALS made up 39.5% of the responses and then followed by College Graduates with 25.4%, whereas HIGH SCHOOL GRADUATES made up 10.2%, SOME COLLEGE 11.7%, SOME GRADUATE STUDY 10.2% and OTHERS 2.9%
  37. 37. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 37 111401222 5.6 Willingness to pay Pay Frequency Percent Valid Percent Cumulative Percent Valid Rs 600 - 800 93 45.4 45.4 45.4 Rs 800 - 1000 40 19.5 19.5 64.9 Rs 1000 - 1500 40 19.5 19.5 84.4 Rs 1500 and above 32 15.6 15.6 100.0 Total 205 100.0 100.0 Inferences Under Willingness to pay RS 600-800 constituted 45.4%, RS 800-1000 19.5% RS 100-1500 19.5% and RS 1500 and above 15.6%
  38. 38. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 38 111401222 5.7 Frequency of visit to a restaurant Frequency Frequency Percent Valid Percent Cumulative Percent Valid Once a month 95 46.3 46.3 46.3 Once in four months 65 31.7 31.7 78.0 Once in six months 22 10.7 10.7 88.8 Once a year 11 5.4 5.4 94.1 Others 12 5.9 5.9 100.0 Total 205 100.0 100.0 Inferences Frequency of visit of restaurants, once a month made up 46.3%, once in four months made up 31.7%, once in six months made up 10.7%, once in a year made up 11% and OTHER made up 12%
  39. 39. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 39 111401222 5.8Preference Preference Frequency Percent Valid Percent Cumulative Percent Valid Fine Dining Restaurants 75 36.6 36.6 36.6 Casual Dining Restaurants 61 29.8 29.8 66.3 Quick Service Restaurants 31 15.1 15.1 81.5 Themed Restaurants 38 18.5 18.5 100.0 Total 205 100.0 100.0 Inferences The results of the survey done to analyse what kind of places respondents prefer while dining out are. 36.6% of the respondents prefer a fine dining restaurant, 29.8% chose casual dining as an option, 15.1% of the respondents were for quick service restaurants and a total of 18.5% of the respondents preferred themed restaurants as a dining out option.
  40. 40. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 40 111401222 5.9 ATTRACTIVNESS Frequency Percent Valid Percent Cumulative Percent Valid STRONGLY DISAGREE 3 1.5 1.5 1.5 DISAGREE 2 1.0 1.0 2.4 NEUTRAL 22 10.7 10.7 13.2 AGREE 79 38.5 38.5 51.7 STRONGLY AGREE 99 48.3 48.3 100.0 Total 205 100.0 100.0 Inferences The statistics regarding the menu attractiveness are as follows 48.3% of the respondents strongly agree that the menu design should be attractive. 38.5% respondents agree, 10.7% were neutral, 1% disagree and a total of 1.5% strongly disagree.
  41. 41. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 41 111401222 5.10 SERVICE STAFF Frequency Percent Valid Percent Cumulative Percent Valid STRONGLY DISAGREE 1 .5 .5 .5 DISAGREE 7 3.4 3.4 3.9 NEUTRAL 13 6.3 6.3 10.2 AGREE 75 36.6 36.6 46.8 STRONGLY AGREE 109 53.2 53.2 100.0 Total 205 100.0 100.0 Inferences The results show that 53.2% of the respondents strongly agreed that the speed of service is important. 36.6% agree, 6.3% of the respondents were neutral, 3.4% disagree and a total of 0.5% of the respondents strongly disagree.
  42. 42. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 42 111401222 5.11 Cleanliness Inferences The percentage of the respondents regarding the cleanliness of the restaurant was, 64.9% strongly agree that the restaurant should maintain cleanliness and hygiene. A total of 21.5% agree, 9.3% of the respondents were neutral and 3.9% disagree. Cleanliness Frequency Percent Valid Percent Cumulative Percent Valid STRONGLY DISAGREE 1 .5 .5 .5 DISAGREE 8 3.9 3.9 4.4 NEUTRAL 19 9.3 9.3 13.7 AGREE 44 21.5 21.5 35.1 STRONGLY AGREE 133 64.9 64.9 100.0 Total 205 100.0 100.0
  43. 43. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 43 111401222 5.12 Nutrition Nutrition Frequency Percent Valid Percent Cumulative Percent Valid STRONGLY DISAGREE 3 1.5 1.5 1.5 DISAGREE 6 2.9 2.9 4.4 NEUTRAL 36 17.6 17.6 22.0 AGREE 79 38.5 38.5 60.5 STRONGLY AGREE 81 39.5 39.5 100.0 Total 205 100.0 100.0 Inferences The percentage of the respondents regarding the nutrition of food of the restaurant was, 39.5% strongly agree that the restaurant should maintain cleanliness and hygiene. A total of 38.5% agree, 17.6% of the respondents were neutral and 2.9% disagree.
  44. 44. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 44 111401222 5.13 Menu Menu Frequency Percent Valid Percent Cumulative Percent Valid STRONGLY DISAGREE 1 .5 .5 .5 DISAGREE 11 5.4 5.4 5.9 NEUTRAL 37 18.0 18.0 23.9 AGREE 88 42.9 42.9 66.8 STRONGLY AGREE 68 33.2 33.2 100.0 Total 205 100.0 100.0 Inferences The statistics regarding the menu design are as follows. 33.2% of the respondents strongly agree that the menu design should be attractive and provided variety. 42.9% respondents agree, 18.0% were neutral, 5.4% disagree and a total of 0.5% strongly disagree.
  45. 45. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 45 111401222 5.14 Lighting Lighting Frequency Percent Valid Percent Cumulative Percent Valid DISAGREE 5 2.4 2.4 2.4 NEUTRAL 35 17.1 17.1 19.5 AGREE 96 46.8 46.8 66.3 STRONGLY AGREE 69 33.7 33.7 100.0 Total 205 100.0 100.0 Inferences A total of 33.7% respondents strongly agree that the lighting design is important to be according to the theme. 46.8% agree, 17.1% were neutral, 2.4% disagree and 0% of the respondents strongly disagree
  46. 46. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 46 111401222 5.15 Background Music Inferences The statistics showed that 33.2% of the respondents strongly agree taking the background music into consideration. A total of 44.9% agree, 16.1% were neutral, 5.4% of the respondents disagree and a total of 0.5% of the respondents strongly disagreed. Background Music Frequency Percent Valid Percent Cumulative Percent Valid STRONGLY DISAGREE 1 .5 .5 .5 DISAGREE 11 5.4 5.4 5.9 NEUTRAL 33 16.1 16.1 22.0 AGREE 92 44.9 44.9 66.8 STRONGLY AGREE 68 33.2 33.2 100.0 Total 205 100.0 100.0
  47. 47. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 47 111401222 5.16 Speed of Service Speed Frequency Percent Valid Percent Cumulative Percent Valid STRONGLY DISAGREE 3 1.5 1.5 1.5 DISAGREE 5 2.4 2.4 3.9 NEUTRAL 11 5.4 5.4 9.3 AGREE 84 41.0 41.0 50.2 STRONGLY AGREE 102 49.8 49.8 100.0 Total 205 100.0 100.0 Inferences The results show that 49.8% of the respondents strongly agreed that the speed of service is important. 41.0% agree, 5.4% of the respondents were neutral, 2.4% disagree and a total of 1.5% of the respondents strongly disagree
  48. 48. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 48 111401222 5.17 Parking Parking Frequency Percent Valid Percent Cumulative Percent Valid STRONGLY DISAGREE 1 .5 .5 .5 DISAGREE 9 4.4 4.4 4.9 NEUTRAL 28 13.7 13.7 18.5 AGREE 83 40.5 40.5 59.0 STRONGLY AGREE 84 41.0 41.0 100.0 Total 205 100.0 100.0 Inferences The responses show that 41% of the respondents strongly agree that the availability of parking space is necessary, 40.5% agree, 13.7% respondents were neutral, 4.4% disagree regarding the availability of the parking space
  49. 49. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 49 111401222 5.8 Memorable experience Memorable Frequency Percent Valid Percent Cumulative Percent Valid STRONGLY DISAGREE 1 .5 .5 .5 DISAGREE 4 2.0 2.0 2.4 NEUTRAL 33 16.1 16.1 18.5 AGREE 76 37.1 37.1 55.6 STRONGLY AGREE 91 44.4 44.4 100.0 Total 205 100.0 100.0 Inferences The results of the study show that 44.4% of the respondents strongly agree that themed restaurants provide a memorable and a valuable experience, a total of 37.1% agree and 16.1% of the respondents were neutral towards this question.
  50. 50. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 50 111401222 5.16 Kind of experience preferred Kind Frequency Percent Valid Percent Cumulative Percent Valid Tried and tested 64 31.2 31.2 31.2 Experimenting with new cuisine and new restaurants 141 68.8 68.8 100.0 Total 205 100.0 100.0 Inferences The statistics showed that 31.2% of the respondents prefer tried and tested restaurants A total of 68.8% prefer experimenting with new cuisine and new restaurants.
  51. 51. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 51 111401222 5.17 Overall satisfaction Overall Frequency Percent Valid Percent Cumulative Percent Valid Very dissatisfied 1 .5 .5 .5 Dissatisfied 8 3.9 3.9 4.4 Neutral 35 17.1 17.1 21.5 Satisfied 130 63.4 63.4 84.9 Very Satisfied 31 15.1 15.1 100.0 Total 205 100.0 100.0 Inferences The results show that 15.1% of the respondents were very satisfied 63.4% were satisfied, 17.1% were neutral , dissatisfied 3.9% and 0.5% very dissatisfied.
  52. 52. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 52 111401222 CROSSTABULATION 5.21.1Age* Frequency of visit to the restaurant Age * Frequency Crosstabulation Count Frequency Total Once a month Once in four months Once in six months Once a year Others Age genY 65 43 13 5 8 134 genX 20 17 6 4 4 51 genBoom 7 3 3 2 0 15 genTrad 3 2 0 0 0 5 Total 95 65 22 11 12 205 Inferences Results show that 65 genY visit once a month 43 visit once in four month and 13 visit once in six month 5 visit once a year 20 genX visits once a month 17 visit once in four month 6 visit once in six month and 4 visit once a year 7 genBOOM visit once a month 3 visit once in four month 3 visit once in six month and 2 visit once a year 3 genTRAD visit once a month 2 visit once in four month 0 visit once in six month and 0 visit once a year
  53. 53. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 53 111401222 5.21.2Kind of places you prefer while dining out * Age Preference * Age Cross tabulation Count Age TotalgenY genX genBoom genTrad Preference Fine Dining Restaurants 53 18 2 2 75 Casual Dining Restaurants 42 12 6 1 61 Quick Service Restaurants 21 6 3 1 31 Themed Restaurants 18 15 4 1 38 Total 134 51 15 5 205 Inferences Statistics show that genY prefers fine dining restaurants,genX prefers fine dine restaurants, genBoom prefers casual dining restaurants and genTRAD prefers fine dining restaurants.
  54. 54. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 54 111401222 5.21.3Age * Willingness to Pay Chi-Square Tests Age * Willingness to Pay Cross tabulation Pay TotalRs 600 - 800 Rs 800 - 1000 Rs 1000 - 1500 Rs 1500 and above Age genY Count 76 30 18 10 134 % of Total 37.1% 14.6% 8.8% 4.9% 65.4% genX Count 17 8 12 14 51 % of Total 8.3% 3.9% 5.9% 6.8% 24.9% genBoom Count 0 1 8 6 15 % of Total .0% .5% 3.9% 2.9% 7.3% genTrad Count 0 1 2 2 5 % of Total .0% .5% 1.0% 1.0% 2.4% Total Count 93 40 40 32 205 % of Total 45.4% 19.5% 19.5% 15.6% 100.0%
  55. 55. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 55 111401222 Chi-Square Tests Value df Asymp. Sig. (2-sided) Pearson Chi-Square 47.456a 9 .000 Likelihood Ratio 52.237 9 .000 Linear-by-Linear Association 40.586 1 .000 No of Valid Cases 205 Inferences Chi square test was conducted to test whether there existed any association between age and willingness to pay by the customers. Since the p value was less than 0.05, based on the samples we conclude that there exist an association between the two attributes.
  56. 56. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 56 111401222 5.21.4 One way ANOVA test Age * Cleanliness of the overall area Cleanliness N Mean Std. Deviation Std. Error 95% Confidence Interval for Mean Minimum MaximumLower Bound Upper Bound genY 134 4.5970 .79585 .06875 4.4610 4.7330 1.00 5.00 genX 51 4.2157 .94475 .13229 3.9500 4.4814 2.00 5.00 genBoom 15 4.2000 .77460 .20000 3.7710 4.6290 2.00 5.00 genTrad 5 4.2000 1.09545 .48990 2.8398 5.5602 3.00 5.00 Total 205 4.4634 .85456 .05969 4.3457 4.5811 1.00 5.00 ANOVA Cleanliness Sum of Squares df Mean Square F Sig. Between Groups 6.909 3 2.303 3.259 .023 Within Groups 142.066 201 .707 Total 148.976 204 Multiple Comparisons Cleanliness Tukey HSD (I) Age (J) Age Mean Difference (I-J) Std. Error Sig. 95% Confidence Interval Lower Bound Upper Bound genY genX .38133* .13832 .032 .0230 .7397 genBoom .39701 .22890 .309 -.1960 .9900 genTrad .39701 .38293 .728 -.5950 1.3890 genX genY -.38133* .13832 .032 -.7397 -.0230 genBoom .01569 .24694 1.000 -.6240 .6554 genTrad .01569 .39398 1.000 -1.0050 1.0363 genBoom genY -.39701 .22890 .309 -.9900 .1960 genX -.01569 .24694 1.000 -.6554 .6240 genTrad .00000 .43414 1.000 -1.1247 1.1247
  57. 57. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 57 111401222 Inferences One way ANOVA test was conducted to test whether there existed a significant difference between age groups and cleanliness of the restaurant. Null hypothesis is stated as there are no difference in mean values of cleanliness with respect to the factors considered i.e. genX, genY, genBOOM and genTRAD. Since p<0.05, based on the samples we conclude that the hypothesis stands incorrect and there exists a significant difference. Post-hoc test was conducted to find out among which groups the significant difference existed, which resulted in the rejection. From the table above, we can observe that p value is <0.05 for the group genX and genY. Hence there is a significant difference between these groups whereas we can observe that rest of the p values are above 0.05 for the rest of the combinations.
  58. 58. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 58 111401222 Chapter 6 Summary and conclusions Considering the categories of Music, Decoration and Cleanliness majority were influential to the price of themed restaurants. This indicates that decoration, cleanliness and background music are important to people. Within the factor of “Quality of Service,” the categories of Speed of Service of the overall area were influential to preferring themed restaurants in South Mumbai. Within the factor of the categories of Availability of Parking and Location were influential to preferring themed restaurants. It is logical to infer that these two geographic variables influence the customers’ preference of choosing a themed restaurant. Two tests namely chi-square test and One way variable ANOVA test was conducted to test certain hypothesis. Chi-square test was conducted to test whether there existed any association between age and willingness to pay by the customers. Since the p value was less than 0.05, based on the samples we concluded that there existed an association between the two attributes. One way ANOVA test was conducted to test a hypothesis of any association between age and cleanliness of the restaurant. The hypothesis assumed that there are no differences in mean values of the factors considered i.e. genX, genY, genBOOM and genTRAD. Since p<0.05, based on the samples we concluded that the hypothesis stands incorrect and thus post-hoc test was conducted to find out the factors for reasoning the rejection. Rounded upon the data collected, it was clear that location, helpful attitude of the staff, cleanliness and décor were useful in calculating WTP (Willingness to pay). These were the factors that contributed to highlight the dining experience of the customers with consistent performance and quality assurance. As the owners express the restaurant concept to a more sophisticated level, showcases an understanding that sells, as mentioned by Pine & Gilmore, 1998.
  59. 59. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 59 111401222 The marketing management and expansion plans of promoting standalones and authentic theme based restaurants in Mumbai can be viewed with a help of the conclusions of the study. Future research could be conducted for the combination for customers’ satisfaction level of food and service quality and the image agreement level from the customers’ point of view on customer loyalty at different restaurant categories. Differences may exist in the customers’ behaviors towards other categories of restaurants. This will help restaurant managers to implant more effective strategies in order to expand customer loyalties.
  60. 60. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 60 111401222 Annexures Questionnaire Theme: Age: yrs Occupation: 1. Education level  High school graduate  Some college  College graduate  Some graduate study  Graduate/professional  Other 2. How much are you willing to pay per meal for one person?  Rs. 600-800  Rs.800- 1000  Rs.1000- 1500  Rs.1500 and above 3. How frequently do you visit themed restaurants in a year?  Once a month  Once in four months
  61. 61. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 61 111401222  Once in six months  Once a year  Others (Please specify) 4. What kind of places do you prefer while dining out?  Fine Dining Restaurants  Casual Dining Restaurants  Quick Service Restaurants  Themed Restaurants QUESTIONS STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE 5. Menu should be attractive and reflect image of The Fine dining restaurant 6. The location of the restaurant should be convenient (Closer to home) 7. The service staff should have a helpful attitude 8. Cleanliness of the overall area is important 9. The nutritional quality of items should be as expected in upscale restaurants
  62. 62. An analyticalstudy on customer preference and success factorof restaurants in South Mumbai KUNALBAPNA Page 62 111401222 16. What kind of experience would you prefer?  Tried and tested  Experimenting with new cuisine and new restaurants 17. Please rate your overall satisfaction with The Fine dining restaurant.  Very Satisfied  Satisfied  Neutral  Dissatisfied  Very dissatisfied 10. Attractiveness and variety in menu design is important 11. The lighting design should be according to the theme 12. The background music complementing the theme is important 13. Speed of service is important 14. Availability of parking space is an essential factor 15. Themed restaurants provide a memorable and valuable experience
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