Professional Documents
Culture Documents
CHAPTER 1
INTRODUCTION
1.1 Introduction
In this chapter, it will discuss about background of study and also will provide a general idea
about the scope of study. This chapter also discovers the identified research problem and
clearly defined the objectives of the study. Next, it will continue with the explanation of the
importance of the study. Followed by the limitations of study and finally it will focus on
definitions of the terms.
King, Manhattan Fish Market, Dunkin Donuts and Wendys are among the popular ones.
There are a lot of Malaysian copies of the American franchise fast food chains. A&W, 1901,
Marry brown, and Popeyes are scattered all over the country. All these restaurants are
burger and fries places. Among those various fast food companies, there were some that
was developed by high level cooperated companies. As for KFC, it was managed under one
name that is QSR Brands Bhd.
QSR Brands Bhd is an investment holding company, operates a chain of quick-service
restaurant. It operates approximately 640 KFC restaurants in Malaysia, Singapore, Brunei,
Cambodia and India, approximately 300 Pizza Hut restaurants in Malaysia and Singapore,
and 27 Rasamas restaurants in Malaysia and Brunei as well as approximately 74 Kedai
Ayamas convenience store that primarily sell chicken and chicken based product in
Malaysia. The company also engages in breeding, hatching, contract farming, processing
and sale of chicken and chicken parts; and poultry product, such as burgers, nuggets,
bologna, smoked chicken, satay, sausage and chicken balls under the Ayamas brand. In
addition, it sells board games; manufactures sauces; operates college/learning institute, and
sells and market food product as well as engaging in property holding activities. The
company is based in Kuala Lumpur, Malaysia.
The story of McDonalds first began in 1955 when Ray Kroc opened the first restaurant
in Des Plaines, Illinois. It then grew on to be a worldwide corporation spanning 117 countries
and serving more than 60 million customers every day. In December 1980, Golden Arches
Restaurants Sdn. Bhd. (GARSB) won the license to operate McDonalds in Malaysia. The
first McDonalds restaurant subsequently opened its doors at Jalan Bukit Bintang on 29 April
1982.
As the growth of this industries keep on increasing from day to day, the challenge to attract
customer are also increasing. Especially when it comes to these 2 big fast food company
KFC and McDonalds. Maintaining their customer is a big challenge because of several
aspects need to be taken care of. Several aspect such as service quality , food quality and
value added toward services provided are one of famous aspect in attracting customer to
keep on buying.
4%
18%
44%
KFC
Pizza Hut
18%
McDonalds
Others
16%
A&W
goal for most businesses because retaining existing or repeat customers is more profitable
than continually seeking new ones (Parasuraman et.al (1985). As evidence the observation
that been made by the researcher as a quality auditor at KFC. Daily observation had been
made in order to identify is there any weaknesses in service quality implemented by KFC
Holding and the result of the observation shown that there were customer complain on the
service provided.30 customer been observed and there were 2 customer who give negative
feedback which is because the speed of services at KFC Ampang Point. Quality is thus the
desire to improve social services continuously in line with the needs of the users .In dealing
with service quality in reaching towards customer satisfaction some company used quality
program such as quality audit from Rasamas, mystery shopper, Customer hero from
Ayamas, CHAMPS from KFC and Pizza Hut.
In the other previous research Fast Food and Ethical Customer value :a Focus on
McDonalds and KFCs ,Monika and Morven (2005) present a research on how both fast
food carry out their strategies in an ethical and socially responsible, way to young consumer
in United Kingdom. This research also concludes that ethical strategies are very important in
fast food industries. Their research mainly focused on consumers values and not on how
company implemented service quality and its influences towards customer satisfaction.
Moreover, the study was made in United Kingdom and not yet in Malaysia.
These research also been conducted in order to help both company and especially
KFCs management to benchmark McDonalds service quality as their consumers are started
to change their brands preferred. Benchmarking is made in order to pursue competitors
.Thus by using benchmarking, the management of KFC can identify or conduct any
measures to catch up customer perception and grabbing their heart as well. Same goes to
McDonalds management who can use this study as their references to improve more.
Therefore, in this research the researcher will analyze whether Food Quality, perceiving
value from customer and Service quality Dimension such as responsiveness, assurance,
tangibles , empathy and reliability will give the impact or not to the customer satisfaction.
This research is based on the primary data through questionnaire distribution.
ii-
McDonalds in Malaysia
To investigate the associations between independent variable (Service Quality,
Food Quality and Perceived Value) and dependent variable (Customer
Satisfaction)
iii-
iv-
i.
What is the level of customer satisfaction towards services provided by KFC and
ii.
iii.
iv.
perceived value?
Is there any different between several selected profile which the customer
satisfaction towards Dimension of Service Quality, Food Quality and Customer
Perceived value.
with the price given. The researcher also focus on the level of cleanliness at the fast food
outlet in term of how they make sure the ward always in proper way for example the staff
that responsible for cleanliness from exterior property, service area ,toilet is always clean
and also for the most important things make sure the equipment to cook is cleaned.
LIMITATION
a)Respondent Commitment
In conducting research, the cooperation from the respondents in answering and returning
the questionnaire is very important. However there are some respondent who do not giving
full commitment and some of them act negatively during the distribution and collections of
the questionnaire due to on leaving it.
b)Money Spent
Other than that, the researcher has to spend a lot of money in the process of completing the
research due to lack of sources and limited facilities in conducting the research. The cost of
budget is very important when conducting the research. So in order to complete this
research, the researcher have to spend a lot of money because it require for the researcher
to go to the cyber cafe and surf internet to find the literature review and other information
and for printing the questionnaire.
CHAPTER 2
LITERATURE REVIEW
2.1 Preamble
This chapter will find out the right sources from previous study regarding customer
satisfaction towards fast food services. The purpose of this chapter is to identify the scenario
and discussion from previous researchers about the variables that is proposed in this study.
Researcher desires to use previous reference as guidelines in explaining the factor
influencing customer satisfaction towards fast food services in Klang Valley area.
2.2 Introduction
A literature review is a step-by-step process that involves the identification of published and
unpublished work from secondary data sources on the topic of interest, the evaluation of this
work related to the problem, and the documentation of this work. A literature review helps us
to develop a good problem statement.
For this study, researcher use previous journal as guidelines to align with the finding of basic
understandings regarding the goal aims. After that, the literature review is documented to
build the problem statement and the theoretical framework.
In achieving profitability,the most important element that need every company to deal with is
customer satisfaction and from customer satisfaction comes customer loyalty.Thus it will
lead towards continual profit. Most researchers have looked into the priority of customer
satisfaction. Satisfaction can be defined as a persons feelings of pleasure or disappointment
resulting from comparing a product are perceived performance (or outcome) in relation to his
or her expectations. Satisfaction also can be describe as the feelings of acceptance,
happiness, relief, excitement, and delight.
A firms future profitability depends on satisfying customers in the present retained
customers should be viewed as revenue producing assets for the firm Anderson et al.
(1993). The key to building long-term customer satisfaction and retention and reaping the
benefits these efforts can offer is to focus on the development of the high quality products
and services. Therefore customer satisfaction can lead to the organizations goal where may
increase customer loyalty to the service business.
11
consumer service industries, Parasuraman et al. (1985) identify five quality dimensions
which link specific service characteristics to consumer expectations of quality. These five
basic dimensions are:
2.4.1.1 Tangibles.
Tangibles is the way the physical facilities, like equipment appearance of personnel and the
communication materials, are used by customers to judge the service(Hussain and
Nadiri,2005)
Ability to perform the promised service dependably and accurately. Tangibility in
fast food perspective is about cleanliness.There were 4 main area which will ensure the
management adopting tangible which is exterior property,service area , washroom and back
of house and equipment. Present of pest pest activities such as cockroaches, rats and fly
are the most hated pest by customer to be around fast food restaurant. As in Fast food
industries, it also referred to the presentation of the facilities physical layout for example
clean environment with a nice decoration of the place and the convenience offered to the
customer .Tangible according Maxwell. et. Al (2011) also including ,cleanliness,
atrractiveness neat apearance and comfortability given to customer.
2.4.1.2 Reliability
Reliability can be defined as customers expect the services providers to have the ability to
perform the desired service dependably, accurately and consistently. This involves keeping
the service promise and the reputation. Reliability is the Fast food restaurants regularity
and consistency in performing services and the degree to which it inspires confidence and
trust in customers Dotchin and Oakland (1992). In operational terms, these term means
that keeping promises, trustworthiness in transactions and the efficiency of the recovery
process if anything goes wrong .
12
2.4.1.3 Responsiveness.
While responsiveness in servicing fieldWillingness to help customers and provide prompt
service. The customers appreciate the willingness of services providers to provide the
service promptly and efficiently. To be responsive to customers means help them keeping
informed. Speed of services are the most important element in grabbing customer needs
and wants. Responsiveness results in psychic and time benefits to the customer.
The importance of psychic benefits, derived through the responsiveness dimension, has
been explored in direct sales. Crosby et al. (1990) find that in repeat-contact sales
relationships (life insurance), contact initiated by the salesperson and cooperative intentions
(expression of a willingness to help the customer) are very beneficial to ongoing sales
relationships. According to Parasuraman et al. (1985), Zeithaml et al. (1990)
responsiveness is defined as willingness and readiness to help customers and provide
prompt service.
2.4.1.4 Assurance.
Knowledge and courtesy of employees and their ability to convey trust and confidence.
Assurance is caused by the employees, knowledge, courtesy, competence and ability to
convey trust and confidence in customers. Every customer believes the reliability must be
doubled by the trust.
This is a commonly used term which has its origins in manufacturing but whose
concepts have spread to the public sector. Assurance means the knowledge and courtesy of
employees and their ability to convey trust and confidence the firm provides to its customers.
It also includes three main elements which are (i) Courtesy: politeness, respect,
13
14
encompass multiple disciplines including, but not limited to, marketing, human resources,
engineering, logistics, information technology, and other fields. Most service managers today
are woefully underprepared to handle all the different aspects of service quality. Many
organizations spend a lot of effort and money to measure quality without relating the results
of measurement to necessary improvements. Similarly, the need for striving for customer
satisfaction hghly relating towards result in economic success. Customer satisfaction is
considered the main element in grabbing customer retention and loyalty, and obviously helps
in realizing economic goals like profitability, market share, return on investment and etc.
(Scheuing. 1995; Reichheld. 1996; Hackl and Westlund 2000)
15
the investigation of consumer food choice As another example, the quality perception
process may be moderated by a number of both personal (e.g. involvement, past
experiences and the like) and situational variables (e.g. physical surroundings, buying
purpose, and the like), which also must be taken into account when seeking to understand
consumers perception of food quality. Previous research ( Montfort et al. 2000; Spreng
and Mackoy 1996) suggests that consumers expectations about the performance of a
product may have a direct influence on perceptions of performance. If consumers perceive
quality as independent attributes, different decisions may be made depending on whether
consumers focus on quality issues in their food choices.
16
decrease service performance gap and increase customer percieve value about the quality
systems.Thus it may lead to hiigher customer satisfaction.
2.8 Conclusion
In food and beverages industries the relationship with customer must be taken seriously
because customers pay all the service provided. Service quality provided is really being
taken seriously by these fast food company in order to give the best service for the
customer. By having customer satisfaction it will give return to the fast food company and
profitable because customer will interest to continue their loyalty to the organization.
Customers generally vary in terms of profitability.It is because of without customer,no
profitability will be generated.
17
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Introduction
Research methodology is a basic guideline that guides the data collection and
analysis phases of the research process. It is a framework or blueprint that specifies the
details for conducting the research Malhotra (2004). This chapter will explain the data
collection method, sampling techniques, variables and hypothesis. This data collection that
gathered from the research would hope to assist the Fast Food Company which is KFC
Holding management to eliminated the problem occurred and create a solving method
through understanding the customer satisfaction towards service provided by them.
DEPEND
ANT
VARIABL
18
RESPONSIVENESS
ASSURANCE
SERVICE QUALITY
DIMENSION
TANGIBLES
FOOD QUALITY
EMPATHY
CUSTOMER
PERCIEVED VALUE
CUSTOMER
SATISFACTION
RELIABILITY
The theoretical framework from this study is based on the output of numerous fields
and discipline that we had found during the period of studying for literature.
So, we have some discussion and make a decision making based theory found in
the literature review and concluded in the above. There are some various when we have
studied and explaining in the internal driving forces towards customer perceptions, that only
seven
internal forces that would be studied which are Dimension of service quality
19
measured and compared. The independent variables involved in this study are service
quality dimensions. These are five dimensions of service quality which is reliability,
assurance, responsiveness, empathy, and tangible. All of it important, in which it will
determine the level of payment collection that being achieved by those fast food restaurant.
Responsiveness.
The willingness to provide or to help and prompt.
Assurance.
Knowledge and courtesy of employees and their ability to inspire trust and confidence.
Empathy.
Caring, individualized attention the firm provides its customers.
3.3.1.2 Food Quality
The definitions of quality include the following: an attribute or special feature the nature,
kind or character (of something); hence the degree or grade of excellence etc. possessed by
a thing.
3..3.1.3 Perceived Value
Perceive value is considered as customer recognition and appreciation the utility of a
product that is given by a service provider which may full fill his/her expectation.
3.3.3 Dependent Variables
Dependent variables are the variables that measure the effect of the independent
20
variables on the test unit. The dependent variable for this study is the customer satisfaction.
21
customer to answer is very low due to privacy time and from 300 questionaire distributed
only 240 available to be analyze due to customer unwillingness to answer all question given.
22
23
In this research, the researchers have decided to use two types of primary data. These two
data are questionnaires and personal interview. This two data were used because of its level
of validity and also how it interrelates with each other. Besides that, one of them will also act
as a defense mechanism for another when it comes in term of level of validity.
3.6.2 Questionnaires
Questionnaire is one of the survey instruments, whereby it is a structured technique for data
collection consisting the series of questions, written or verbal, that are related to the topic
studied, to which a respondent replies. The questionnaire was designed to gather the
information based on the service quality provided ,food quality, perceived value and
customer satisfaction. The questionnaires were distributed to 300 domestic customers who
have to make payment on the service they used. The questionnaire was designed such that
the respondents can answer specific questions relevant to the study.
24
Normality test
In statistics, normality tests are used to determine if a data set is well-modeled by a normal
distribution and to compute how likely it is for a random variable underlying the data set to be
normally distributed.
25
Reliability Analysis
Reliability of a measure is established by testing both consistency and stability.
Consistency indicates how well the items measuring a concept hang together as a set.
Cronbachs alpha is a reliability coefficient that indicates how well the items in a set are
positively correlated to one another. Cronbachs alpha is computed in terms of the average
intercorrelations among the items measuring the concept. The closer Cronbachs alpha is to
1, the higher the internal consistency reliability. As suggested by Sekaran (2006), the
reliability test which the result less than 0.60 are generally considered as poor. Those in the
range of 0.70 is measured as acceptable, while over 0.80 is good. The closer Cronbachs
Alpha to 1, the higher the internal consistency reliability is.
26
Frequency Analysis
Frequency distribution is obtained for all the personal data or classification variables.
The purpose of the frequency distribution is to attain a count of the number of responses
associated with different values of one variable where these amounts are usually in
percentage. Therefore researcher can see their respondent background, such as gender,
education level, their job position, and also their income level.
Descriptive Analysis
Descriptive statistics such as maximum, minimum, means, and standard deviations
were obtained for the interval-scaled independent and dependent variables. By using this
analysis, researcher can obtain the pattern of respond made by respondent whether they are
giving more to the positive or negative answer.
27
CHAPTER 4
ANALYSIS AND FINDINGS
4.0 Preamble
These chapters will discuss about the finding of research and the ability of independent
variables in order to explain the dependent variable.
4.1 Introduction
In this chapter, researcher represents the finding and analysis on the study of the factor
influencing customer satisfaction among KFC and McDonalds customer. The 240
respondents have been collected as sample from population in the areas of study and the
respondents give full cooperation to the researcher along the process of collecting the data.
Researcher used the Statistical Package for Social Sciences (SPSS) system version 21.0 in
order to interpret the data of dependent and the independent variables. Three weeks is used
to collect the data and another two weeks to interpret the data of this study.
28
Corrected
Cronbach's
Item-Total
Alpha
Correlation
B1. Has Visually attractive parking areas and building exteriors
-.017
.068
.064
-.034
.996
.995
.996
-.028
-.033
B11.Has employees who are sensitive to your individual needs and wants,
.077
.993
.086
.073
.075
.095
.093
.068
.090
.075
B22.Makes you feel comfortable and confident in your dealings with them
.082
B23.Has personnel who are both able and willing to give your information
-.031
.072
-.032
-.034
B27.During busy times, has enough employees to help each other maintain
-.021
-.004
.078
.071
29
0.779
Corrected
Cronbach's
Item-Total
Alpha
Correlation
C1.The restaurant offers healthy options
.795
.441
Value
C4.The restaurant Part
offers D:Percieved
a variety of menu items
.342
Corrected
.807
Item-Total
0.760
Cronbach's
Table
Alpha
4.2.3
Correlation
.801
.327
.440
.790
Part
0.755
Reliability analysis
Corrected
Cronbach's
Item-Total
Alpha
Correlation
E1.I am satisfied with the service at this restaurant
.410
.410
0.580
Table 4.2 shows that the Cronbachs Alpha for all variables is between 0.580-0.779. These
results indicate the developed questions successfully measured the intended concept except
question for reliability. The inter-item consistency can be gathered from the Cronbachs Alpha
values. Sekaran &Bougie (2011) found that reliabilities less than 0.60 are considered to be
poor, those in range in the 0.70 range, acceptable, and those over 0.80 good. If the Cronbachs
Alpha is more than 0.60, the questions developed measured the intended concept.As shown
above, cronbachs alpha for customer satisfactions is below 0.6.In this case it may be
appropriate to report the mean inter term correlation for the item. Briggs and Cheek (1986)
recommend an optimist range for the inter item correlation of 0.2-0.4. As suggested by Sekaran
(2006), the reliability test which the result less than 0.60 are generally considered as poor.
Those in the range of 0.70 is measured as acceptable, while over 0.80 is good. The closer
Cronbachs Alpha to 1, the higher the internal consistency reliability is.
No.
Questions
30
Gender
Age
9
10
KFC
McDonalds
Male
Female
120
120
100
140
50.0
50.0
41.7
58.3
18-29
30-39
40-49
50-59
60 and above
Status
Single
Married
Others
Race
Malay
Chinese
Indian
Education Level SPM(Upper Secondary School)
Diploma/STPM
Degree and Above
Occupation
Government Sector
Private Sector
Self Employed
Student
Others
Income Level
Less than RM1000
Rm1000-Rm2000
Rm2001-Rm3000
Rm3001-Rm4000
Rm4001-Rm5000
Fast Food Preffered
KFC
McDonalds
Factors Preffered
Price
Atmosphere
WaitingTime
Kindness of personnel
Quality of Food
69
51
45
55
20
72
154
14
177
54
9
121
83
36
76
99
24
25
16
29
93
80
28
10
120
120
15
122
5
29
69
28.8
21.3
18.8
22.9
8.3
30.0
64.2
5.8
73.8
22.5
3.8
50.4
34.6
15.0
31.7
41.3
10.0
10.4
6.7
12.1
38.8
33.3
11.7
4.2
50.0
50.0
6.3
50.8
2.1
12.1
28.8
Table 4.3 indicates that both respondent for KFC and McDonalds currently at and which
restaurant preferred are selected equally which is 50% of 240 respondent in order to
determined level of satisfaction among them. From 240 respondent 100 of them are male
31
respondent and the rest are female respondent. Around 154 respondent status is married,
72 singles and the remaining 14 is other status. Regarding on the analysis, the age of the
respondent seems average for every range which is 18-29 years old with 69 respondent
28.8%,30-39 years old with 51 respondent 21.3%,40-49 years old with 45 respondent
18.8%,40-49 years old with 55 respondent 22.9% and 60 years above with 20 respondent
8.3%.The race of the respondent most of them are Malay with 177 respondent, Chinese
with 54 respondent and 9 of them is Indian. Next is education level.50.4% of the respondent
is SPM level of education,34.6% Diploma and STPM education level and the rest is Degree
and above with 15%.Occupation of the respondent dominated by private sector with 41.3%
followed with Government sector with 31.7%,Students with 10.4%,Self-employed with 10%
and other occupation with 6.7%.Majority of the respondent income level is around Rm1000RM2000 and the minority of respondent income level which is around RM4001-RM5000
with 4.2% from 240 respondent. Lastly is factors preferred choosing the restaurant. Majority
of respondents choose atmosphere with 50.8% and the least is waiting time with 2.1% from
240 respondent.
32
a.KFC
Table 4.4(1a) Descriptive Statistics KFC(Section B)
Descriptive Statistics
N
Mini
Maxi
mum mum
Mea
Std.
Deviation
120
6.15
.806
120
6.15
.847
B3: Has staff members who are clean,neat and appropriately dressed
120
6.35
.795
B4: Has a decor in keeping with its image and price range
120
6.33
.735
120
6.30
.763
B6: Has visually attractive menu that reflects the restaurant image
120
6.33
.760
B7: Has a dining area that is comfortable and easy to move around in
120
6.22
.735
120
6.47
.849
120
6.32
.809
120
6.49
.789
B11: Has employees who are sensitive to your individual needs and
120
5.07
1.333
120
6.03
.772
120
5.69
1.333
120
6.19
1.324
120
6.13
1.319
120
6.35
.866
120
6.48
.621
120
6.56
.632
120
6.46
.721
120
6.25
.713
120
6.56
.671
B22: Makes you feel comfortable and confident in your dealings with
120
6.44
.671
120
6.53
.710
120
6.48
.635
B25: Has personnel who are well trained, competent, and experienced
120
6.63
.501
B26: Give employees support so that they can do their jobs well
120
6.72
.488
B27: During busy times, has enough employees to help each other
120
6.56
.577
120
6.59
.615
120
6.53
.593
120
6.53
.565
is wrong.
them
B23: Has personnel who are both able and willing to give your
information about menu items, their ingredients, and methods of
preparation
33
Valid N (listwise)
120
Minim
Maxim
um
um
Mean
Std.
Deviation
120
6.19
1.324
120
6.13
1.319
120
6.35
.866
120
6.48
.621
120
6.72
.488
Valid N (listwise)
120
Minim
Maxim
um
um
Mean
Std.
Deviation
120
6.19
1.324
120
6.48
.621
120
6.35
.866
120
6.13
1.319
Valid N (listwise)
120
money
Minim
Maxim
um
um
Mean
Std.
Deviation
120
6.72
.488
120
6.56
.577
120
6.53
.565
120
6.53
.593
120
6.59
.615
Valid N (listwise)
120
34
Table 4.4(1a,1b,1c and 1d) shows that, mean values for these items ranging from 5.60426.5981 with standard deviation ranging from 5.07-6.72.. These indicate that averagely the
respondents are agreed in responding to each question. This analysis had answered the
research question 1 and 2.
b.McDonalds
Table 4.4(2a) Descriptive Statistics McDonalds (Section B)
Descriptive Statistics
N
Mini
Maxi
Mean
mum mum
Std.
Deviation
119
6.38
.521
B3: Has staff members who are clean,neat and appropriately dressed
120
6.28
.611
B4: Has a decor in keeping with its image and price range
120
6.39
.539
120
6.40
.525
B6: Has visually attractive menu that reflects the restaurant image
119
6.18
.562
B7: Has a dining area that is comfortable and easy to move around in
119
6.37
.565
119
6.33
.554
120
6.43
.604
120
6.33
.582
B11: Has employees who are sensitive to your individual needs and
120
4.83
1.807
119
4.94
1.833
120
4.13
1.742
120
4.33
1.692
120
4.26
1.703
120
6.00
.710
119
5.08
.971
120
6.14
.714
120
6.33
.833
120
6.16
.674
120
5.96
.938
B22: Makes you feel comfortable and confident in your dealings with
120
6.04
.782
120
6.44
.731
120
6.22
.862
something is wrong.
them
B23: Has personnel who are both able and willing to give your
information about menu items, their ingredients, and methods of
preparation
B24: Makes you feel personally safe
35
120
6.42
.729
B26: Give employees support so that they can do their jobs well
120
6.42
.668
B27: During busy times, has enough employees to help each other
120
6.38
.724
120
6.27
.753
120
6.38
.699
120
6.43
.694
Valid N (listwise)
117
experienced
Mini
Maxi
Mean
mum mum
Std.
Deviation
120
4.33
1.692
120
4.26
1.703
120
6.00
.710
119
5.07
.954
119
6.43
.658
Valid N (listwise)
118
Descriptive Statistics
N
Mini
Maxi
Mean
mum mum
Std.
Deviation
120
4.33
1.692
D2: The meal provided by this restaurant offers value for money
119
5.08
.971
120
6.00
.710
119
4.27
1.706
Valid N (listwise)
118
Descriptive Statistics
N
Mini
Maxi
mum mum
36
Mean
Std.
Deviation
120
6.42
.668
120
6.38
.724
120
6.43
.694
120
6.38
.699
120
6.25
.748
Valid N (listwise)
120
Table 4.4(2a,2b,2c and 2d) shows that, mean values for these items ranging from 4.13 to
6.44 with standard deviation ranging from 5.6042-6.5981. These indicate that averagely the
respondents are agreed in responding to each question. This analysis had answered the
research question 1 and 2. (Manoj & Sunil 2011)
Pearson Correlation
m_fq
1
Sig. (2-tailed)
m_fq
Pearson Correlation
Sig. (2-tailed)
m_pv
Pearson Correlation
Sig. (2-tailed)
m_cs
Pearson Correlation
Sig. (2-tailed)
.888
**
m_pv
m_cs
**
.505**
.000
.000
.000
**
.471**
.000
.000
.384**
.888
**
.000
.878
.991
.878**
.991**
.000
.000
.505**
.471**
.384**
.000
.000
.000
.000
1
Table 4.5 shows that the relationship between independent variables (dimension of service
quality,food quality and percieved value) with dependent variable (customer satisfaction). The
37
relationship between service quality and food quality with the dependant variable which is
customer satisfaction are moderate which is 0.471 and 0.505 respectively.While the
relationship of percieved value have moderate week relationship with customer satisfaction
with 0.384. From the correlation table show that all three factor influencing customer
satisfaction is significant with (0.00=,p<0.05) Stigler and Stephen. (1989). Thus objective 2
is supported and hypothesis 1 is accepted. These correlations also provide further
evidence of validity and reliability for measurement scales used in this research Azman et al.
2008)
.808
R Square
Adjusted R
Square
Estimate
.652
.648
.31464
Sum of Squares
df
Mean Square
Regression
43.802
14.601
Residual
23.364
236
.099
Total
67.166
239
F
147.479
Sig.
.000b
Table 4.5 indicates the independent variables contribute 41.3% in explaining the dependent
variable. Further, table 4.6 shows that the model is significant at 0.000 (F=147.479, p< 0.05).
38
Unstandardized Coefficients
Standardized
Sig.
Collinearity Statistics
Coefficients
B
Std. Error
(Constant)
2.029
.216
M_Servqual
-.001
.004
M_FoodQual
3.181
M_Pervalue
-2.486
Beta
Tolerance
VIF
9.394
.000
-.007
-.184
.854
.991
1.009
.172
5.504
18.498
.000
.017
60.072
.146
-5.074
-17.046
.000
.017
60.122
Table 4.6(1c) further shows the significant level for each independent variable.Food quality
and perceived value show the p value of 0.00 which is significant but when we see at
tolerance value,the tolerance values lower than 0.2 which means both variables is correlating
with other independent variable and should not be included.while the other independent
variables which is servqual show p value equal to higher than 0.000 which is 0.854 and it is
not significant since it is higher than 0.05.Combination data of KFC and McDonald shown no
independent variables that mostly influenced towards customer satisfaction.Thus,the
researcher saparating both data in order to have better results.the result of the saparation as
shown after at the end of regression analysis.
4.6(1d) Collinearity Diagnosticsa
Model
Dimension
Eigenvalue
Condition
Index
Variance Proportions
(Constant)
M_Servqual
M_FoodQual
M_Pervalue
3.683
1.000
0.00
0.02
0.00
0.00
0.296
3.526
0.00
0.97
0.00
0.00
.020
13.439
0.28
0.01
0.00
0.01
0.000
124.513
0.71
0.00
1.00
0.99
Residuals Statisticsa
Minimum
Predicted Value
4.8472
Maximum
6.8869
39
Mean
6.5188
Std. Deviation
0.42810
N
240
Residual
-.88689
1.15280
0.00000
0.31266
240
-3.905
.860
0.000
1.000
240
Std. Residual
-2.819
3.664
0.000
0.994
240
Unstandardized
Standardized
Coefficients
Coefficients
B
(Constant)
1
Std. Error
-1.095
.716
m_sq
.740
.154
m_fq
2.877
m_pv
-2.431
Sig.
Beta
Collinearity Statistics
Tolerance
VIF
-1.529
.129
.475
4.808
.000
.303
3.304
.250
4.497
11.529
.000
.019
51.540
.202
-4.552
-12.020
.000
.021
48.573
Table 4.7.2
further shows the significant level for each independent variable for KFC.
Service Quality of KFC shows that significant to Customer satisfaction at p-value of 0.000
(B=0.475) and the other 2 independent variables shows tolerance below 0.2 meaning that
that item is correlating with other item and should not be included in KFC customers
Questionaires. So, service quality is the most influence factor that contributes to satisfying
customer of KFC compared to the other independent variables. When the tolerance values
less than 10, multi-colleniarity assumption is not exist in this study.
While for mcDonalds ,variables food quality of McDonalds shows that significant to Customer
satisfaction at p-value of 0.000 (B=3.713). So, Food quality is the most influence factor that
contributes to satisfying customer of McDonalds compared to the other independent
variables. When the tolerance values less than 10, multi-colleniarity assumption is not exist
in this study.
So, here we are acknowledging that customer satisfaction of KFC is on service quality
provided by them and McDonalds customer satisfaction is lean towards food quality as
40
compared with other independent variables. The problem was solved by saparating both
customer of KFC and McDonald and it is shown below.So, here we are acknowledging that
there is an issue regarding choosing the most significant independent variables for both
restaurants.Thus,after analysing saparate regression analysis the research question 3
is answered and objective number 3 is supported for KFC and McDonalds as well.
Unstandardized Coefficients
Standardized
Sig.
Collinearity Statistics
Coefficients
B
Std. Error
(Constant)
.652
.896
m_sq
.334
.203
m_fq
2.912
m_pv
-2.319
Beta
Tolerance
VIF
.728
.468
.170
1.648
.102
.296
3.374
.254
3.713
11.453
.000
.030
33.357
.207
-3.445
-11.227
.000
.033
29.888
4.7 T Test
H3.There is significant different between several selected profile which the customer satisfaction
towards service quality dimension for customer. There were 2 selected profiles for this T-Test
analysis which is:
41
A.To measure the difference between customer of KFC and Mcdonalds toward Satisfaction of
the services provided.
Table 4.7(1a) :Group statistics among KFC and McDonalds respondent.
Group Statistics
Where Respondent
Mean
currently at
M_CustSatisfy
Std.
Std. Error
Deviation
Mean
KFC
120
6.6375
.42487
.03879
McDonalds
120
6.4000
.59621
.05443
The group statistics in the table 4.7(1a) shows that, KFC have 120 respondent and McDonalds
120 respondent. Thus, the mean value for KFC is 6.6375 and for McDonalds are 6.4000. The
standard deviations are 0.03879 and 0.05443 respectively.
Table 4.7(1b) :Independent samples test for male and female.
Independent Samples Test
Levene's Test for
Equality of
Variances
F
Sig.
df
Sig.
Mean
Std.
95% Confidence
(2-
Differe
Error
Interval of the
tailed
nce
Differe
Difference
)
M_Cu
Equal
stSati
variances
sfy
assumed
17.69
3.5
23
54
Equal
3.5
21
variances not
54
5.0
.000
assumed
.000
.000
nce
Lower
Upper
23750
06683
10584
36916
23750
06683
10577
36923
84
The significant value for Levene's Test for Equality of Variances is 0.000 (p < 0.05), therefore
the significant value under Equal variances assumed should not be referred. Meaning that,
there is a difference between KFC and McDonalds customer regards to Customer satisfaction
on the services. Thus, hypothesis 3 is supported. From the result of T-test analysis which
show significant of Both satisfaction of customer of KFC and McDonalds can be predict that,
some of KFC customer more satisfy with Service provided by KFC compare to McDonald
42
Customer who satisfy with McDonald services. Thus, this behavior will lead to different level of
satisfaction among KFC and McDonalds customer.
2.To measure the difference between customer in gender towards satisfaction on both KFC and
McDonalds services.
Table 4.7(2a) :Group statistics among male and female respondent.
Gender
Mean
Std. Deviation
Male
100
6.4780
.52346
.05235
Female
140
6.4771
.53639
.04533
M_CusSatisfy
The group statistics in the table 4.7(2a) shows that, female is the bigger group which 140
respondent and male only 100 respondent. Thus, the mean value for female is 6.4771 and for
male are 6.4780. The standard deviations are 0.42006 and 0.38862 respectively.
Table 4.7(2b) :Independent samples test for male and female..
Group Statistics
Levene's Test
for Equality of
Variances
Sig.
df
Sig.
(2-tailed)
Mean
Diff
Std. Error
of the Difference
Diff
Lower
Upper
M_Csatisfaction
Equal variances
assumed
.635
.426
.401
.402
238
216.466
.689
.02786
.06953
-.104912
.16483
.688
.02786
.06925
-.10863
.16434
assumed
The significant value for Levene's Test for Equality of Variances is 0.426 (p > 0.05), therefore
the significant value under Equal variances assumed should be referred, which is 0.689 (p >
0.05). Meaning that, there is no difference between male and female regards to satifaction on
services provided by KFC and McDonalds. Thus, hypothesis 3 is not supported.
43
The other findings that had been come out during the research been conducted is personal
interview. 2 interviewee had been selected in order to answer several questions that will help
the researcher to finishing the research. The first interviewee is one of the KFC Holding Quality
Audit Manager. The second Interviewee is Business Development Manager for Ayamas The
name cannot be mention as interviewee request.
1st Interviewee
Several questions had been asked in order to determine perception of KFC Manager towards
different Fast food. The manager choosing McDonalds as fast food preferred and when the
researcher asked why he chose McDonalds is because of the burger itself. The quality of the
burger is slightly different compared with other fast food who serving burger as their main meal.
The burgers served by McDonalds also come out with cheap prices especially when it comes to
promotion period that is value meal. The manager also give some response on trending
nowadays which is most teenager came to McDonalds is because of trending and lifestyle.
McDonalds Serving value meals and the McDonalds restaurant surrounding are quite
comfortable for a cheap value plus free Wi-Fi around the restaurant.
2nd Interviewee
Same question had been asked to the 2nd interviewee and he had choose KFC as his favorite
fast food restaurant. The manager choose KFC because of the service given and also it is
because his son always ask him to bring him to KFC .He also mention that mostly the family
come for the kid meals and the main reason why he choose KFC is because of the atmosphere
of the KFC itself. The atmosphere can create family to be gathered happily and the fried chicken
also has special taste that can increase his appetite.
CHAPTER 5
CONCLUSION AND RECOMMENDATION
44
5.0 Preamble
This chapter will elaborate and discuss more clearly the analysis finding and its interpretation
found in chapter 4. It is explains the relationship of the independent variables (Service quality,
food quality and perceived value) with Customer satisfaction.
5.1 Introduction
In this chapter, researcher aims to analyze the way to satisfying customer which is independent
variable factor that contribute to organizational success especially in attracting loyal customer.
Based on chapter 4, researcher conduct the data analysis to measures both factors. This is
important for the researcher in order to give better explanation on the factor and concept
provided at the early design of this study.
Chapter 1 develop by researcher is to give guidelines in term of explaining the problem of study,
objective and develop the right concept in continuing the study with the right track. Then,
researcher increase the nature of study by providing the facts and useful information in the
chapter 2 from secondary sources such as from journal, books, magazines, internet and other
sources is helped in searching the right information. Thus, continuation from chapter 3,
researcher provides the way of how the samples are taken and data analysis technique in
conducting this research precisely. In chapter 4, researcher distributed and collected the
questionnaire from target respondents and conduct data analysis to measure the concept of
study with primary data to better acknowledge the real respondent environment regarding the
finding.
The conclusion part will try to clarify the study towards the importance to know whether the both
organization implementing all the factor that leading towards customer satisfaction around
Klang Valley area is related with independent variables provided by researcher to support the
dependent variable.
5.2 Conclusion
45
Based on the finding in the chapter 4, researcher found out that the understanding of
respondent when answering the questionnaire given to them. It is surprise to see that result
from reliability analysis is positive to help researcher into further data analysis and answer the
questions develop in the chapter 1. From the finding, researcher completely answers the entire
question that persists to measure the desire concept. After completing the analysis, researcher
found that a few objectives and hypothesis did not significant to explain the organizational
learning success which is the dependent variable. Even though, this is not meaning that the
result is not good or out of track but was show the real Customer satisfaction towards services
provided by KFC and McDonalds. Researcher is satisfied with end data finding because of
concept can be explained very well.
For reliability test do by researcher found that, all independent factors contribute to the
higher rate (more than 0.70 to 0.80) which the questions develops are tap to concept and
respondent understand to answer. But for dependent variable showing that the value of
cronbach alpha below 0.6 which is 0.58. In this case it may be appropriate to report the mean
inter term correlation for the item. Briggs and Cheek (1986) recommend an optimal range for
the inter item correlation of 0.2-0.4.Thus from the analysis, they agreed with the questions
based on answer scale. This shows that, researcher able to measure the sense of how
respondent analyzes knowledge sharing with organizational learning success by their
perception without researcher interference.
In the demographic analysis, most of respondent is female ,at the age of 18-29 years old
,married, Malay race, SPM level of education, working at private sector with income level from
rm1000 to rm2000.In accessing the means of respondent answer, researcher conducted
descriptive statistic to investigate the way on how answers are given. By right, the answer is
around 3-7. This shows that respondent still agreed with the questions propose by researcher.
46
Saparate analysis had been made in order to identify which question had been choosen
lowest score in term of mean.From descriptive analysisof KFC and McDonalds,it shows several
item in the questinaires resulting low mean which can be explained as that question is low in
range from the most of respondent.
Correlations analysis shows that the relationship between independent variables
(dimension of service quality,food quality and percieved value) with dependent variable
(customer satisfaction).From the result,it clearly shown that all 3 independent have relationship
with dependent variables with all 3 achieving significant relationship.
Analyzing the multiple regressions, researcher able to know the percent of independent variable
influencing customer satisfaction which is 65.2% The researcher need to identify which
independent variables(service quality, food quality and perceived value) are influencing the most
towards dependent variable which is customer satisfaction .Separated analysis being conducted
for KFC and McDonalds .KFC analysis shows that service quality is the most influential factor
towards customer satisfaction for KFC while for McDonalds, food quality is the most influential
toward McDonalds customer satisfaction. Finally, researcher found out there is a significant
difference for 1 selected profile which is KFC and McDonalds customer and another one profile
that is gender are showing that there is no significant difference which the customer satisfaction.
5.3 Recommendation
For this study, the researcher gets good response from respondents. They gave a lot of opinion
and recommendation about customer satisfaction especially towards both KFC and McDonalds.
47
Based on descriptive analysis, there were several question showing the lowest mean score.
Thus, researcher able to come up with several recommendations regarding the finding of this
study as below:
5.3.1 KFC
a. Lessen The Policies Adapting more Sensitivity
KFC is one of the domain fast food mostly had implementing several policies which had
limit the relation between customer with KFC employee. These strict policies need to be less
focus as replacing it with sensitivity. Some customer might came to the restaurant for the
services and why not giving a new view which is by changing the atmosphere from family to a
bigger family. These can be done by train the employee to be more friendly towards regular
customer.
5.3.2 McDonalds
a. Offers more healthy option on menu
Consumers nowadays are very choosy, including in selecting meals every day. Some
might just like the way the fast food menu are but some may not. A healthy option might be
48
good dealing with this kind of consumer trend. When it comes to age, mostly customer with a
late age majority will choose healthy eating habit.
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