CUSTOMER SATISFACTION OF MCDONALD

PROJECT REPORT
ON

CUSTOMER SATISFACTION AT McDONALD

SUBMITTED TO
Mr. MOHNISH KUMAR
( FACULTY MBA )

SUBMITTED BY
PRIYANKA SAXENA 1105270040
PUSHPENDRA SINGH 1105270041
SUNIL KHARE

1105270051

INSTITUTE OF ENGINEERING AND TECHNOLOGY

ACKNOWLEDGEMENT
Apart from the efforts of our group, the success of the project depends largely on the
encouragement and guidelines of many others. We take this opportunity to express our
gratitude to the people who have been guiding in the successful completion of this
project.
First of all we would like to thank our honourable HOD Prof. Dr.D.N.Kakkar Sir for
his valuable guidance. We would like to show our greatest appreciation to and our faculty
members and our seniors. We thank for their tremendous support and help. we feel
motivated and encouraged every time. Without their encouragement and guidance this
project would not have materialized.
This guidance and support received from all the people, who contributed their
knowledge to this project, was vital for the success of the project. We are
grateful for their constant support and help.
.

PREFACE

This project contains information regarding the customer behavior McDonalds

productsThe project covers theory as well as practical aspects of consumer
satisfaction in McDonalds.Our primary focus is on understanding the
satisfaction of the consumers and also the consumption pattern and the
behavior while purchasing the McDonalds products.
There is a learning objective towards the topic.
It is followed by scope which tells what we are covering in our research
Then comes the research methodology telling us about the research design ,data
collection methods,sample size,sampling technique used in this
research,analysis tool.For getting the practical information we have collected
secondary data and shown it as review of literature.For collecting the primary
data we have personally met the customers through questionnaires, and have
thorough analysis of data.In theory we have covered topics like introduction of
McDonalds and also the introduction of consumer satisfaction.
This project has find out the conclusion in the last and has provided various
recommendations for further improvements.

INTRODUCTION
1) Statement of the problem:This topic is selected to analyze the satisfaction level of the consumers towards McDonalds products .
The project is aimed at understanding the consumers satisfaction.

2) Introduction to McDonalds Corporation :McDonalds Corporation is the worlds largest chain of FAST FOOD RESTAURANTS, Serving
nearly 58 million customer dalily. It was started by two brother Dick and Mac Donald in San
Bernardino, California in 1940. McDonalds Restaurants are found in more than 119 countries
and territories around the world and serve nearly 47Million customers each day. McDonalds
operates over 31,000 restaurants worldwide, employing more than 1.5 million people. The
company also operates other restaurant brands, such as Piles Caf and has a minority stake in
prt a Manger.
McDonald is one of the worlds chain of hamburger fast food restaurants, serving nearly 47
million customers daily.
A McDonalds restaurant is operated by a franchisee, an affiliate, or the corporation itself. The
corporations revenue comes from the rent, royalties and fees paid by the franchisees as well as
sales in company-operated restaurants.
McDonalds in India :
McDonalds has continually adapted to the customers tastes, value system, lifestyle, language
and perception. Globally McDonald was known for its hamburgers, beef and pork burgers. Most
Indians are barred by religion not to consume beef or pork. To survive, the company had to be
responsive to the Indian sensitivities so McDonald came up with chicken lamb and fish burger to
suite the Indian palate.
Indian has a huge population of Vegetarians. To cater to this customer segment, the company
came up with a completely new line of Vegetarian items like Mc veggie burger and Aloo Tikki.

3) Introduction of customer satisfaction: Customer satisfaction, a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation.
It is seen as a key performance indicator within business
In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy.
However, the importance of customer satisfaction diminishes when a firm has increased
bargaining power.

4) Objective:To study the problems faced by the customers in variety in product.

To analyze the self service.
To study the expectation of consumer in McDonalds
To measure quantities offered in the product
To obtain suggestions for improvements in the product.
To study the customer affordability in McDonald

5) Scope of the study:

With the help of this project, we can come to know the psychology of consumers staying
in the urban areas of LUCKNOW

The study also gives a wide scope for analysis regarding the consumers need,
consumption habits and purchase behavior.
The study provides the facts and figures and also reliable information regarding the
satisfaction level of the consumers.
The study also helps to obtain suggestions regarding improvement in product and service.

6) Review of the literature:-

Concept for this survey have been developed after studying previous surveys on consumer satisfaction at
different sectors such as Banking sector,online share trading.
Following websites can be referred:
Research conducted by Bain & Company found that an increase of 5% in customer retention can increase profits
by 25% to 95%. The same study found that it costs six to seven times more to gain a new customer than to keep an
existing one.
Additional researches has shown that:"US companies lose 50% of their customers every 5 years."
Source: Bain & Company
"Happy customers tell 4 to 5 others of their positive experience. Dissatisfied customers tell 9 to 12 how bad it
was."
Source Mark Stevens, Author
"Companies that make customer service a high priority see twelve times the return on sales than those
companies with a low emphasis on service."
Source: International Customer Service Association

"Only 1 out of 25 dissatisfied customers will express dissatisfaction."

"68% of customers stop doing business with a company because of poor service. Yet 95% of dissatisfied
customers would continue to do business with a company if their problem was solved quickly and
satisfactorily."
Source - Mark Stevens, Author
Two-thirds (or 66%) of customers do not feel valued by those serving them.
Source - Mark Stevens, Author International Customer Service Association

Customer Satisfaction in the Indian Banking Sector conducted at IIM Bangalore:-

This study, conducted among five Indian banks, aimed at identifying customer satisfaction variables which lead
to relationship building, and developing a conceptual framework of relationship marketing practices in Indian
banks by capturing the perspectives of customers with respect to their satisfaction with various services. It also
sought to identify whether demographics have a role to play in customer satisfaction. A questionnaire designed
from a literature review and in-depth interviews were utilised to arrive at the 16 variables which determined the
satisfaction of 555 customers of the five banks..
Conclusion

Reporting on the different satisfaction levels of the customers, the findings suggest that while private banks
have been able to attract the younger customers with higher educational levels, who are comfortable with multi
channel banking, the customers of the national bank are older and more satisfied with the traditional facilities.
The results from this study could provide managerial lessons on assessment of strengths and improvement of
services and in evolving a research strategy that will benefit the management of banks.

The study revealed that levels of customer satisfaction were on average 20 per cent higher in restaurants that
employ staff aged 60 and over. Widely recognised as one the largest providers of first time jobs in the UK,
McDonald's also has a strong core of older workers, with around two-fifths of restaurants employing staff aged 60
and over.

A study on customer satisfaction towards online share trading with special reference to Coimbatore city.

The study has revealed the nature of the share investors, share brokingfirms and investment atmosphere in
Coimbatore.Its good to note that the younger generation is more involved in on-lineshare trading.* Men are more
into this investment mode.* Post graduate investors are found to be more in this study.* People in the beginning
of their earning life seem to be more involved inon-line share trading.* Married men and women have found online share trading as a sourcefor extra income.* Friends have been the major inducing factor towards on-line
sharetrading. Most of the respondents access the internet at the stock brokers officeand they access it on all
business days.
Only less than 1/3rd of the investors are professionals Coimbatoreans show equal consideration towards the
trading sites.The investors of the Manchester of South India are interested in gettingmore information about the
stock prices etc.50% of the on-line share trading respondents here rate the infrastructurefacility in this town as
average. Majority of the respondents grade the bank associated activities of their on-line trading site as Good

American customer satisfaction index shows drop in customer satisfaction at Mcdonalds,a study conucted in 2010

According to the latest ACSI, which was founded at the University of Michigans Ross School of Business and is
produced by ACSI LLC, McDonalds satisfaction score fell from 70 out of 100 in 2009, to 67 in 2010.
Despite posting industry-beating same-store sales for years, McDonald's saw a 4.3-percent drop in its customer
satisfaction score in 2010, as measured by the American Customer Satisfaction Index.

RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY:-

1.Research design
Research Design is a systematic planning, organizing & executing a research project within
specified time limit & resource allocation.
After deciding the basic aspects of research project, example- formulating research problem,objectives of
research, data requirement, sample design & before the commencement of work of
research project, the researcher has to prepare research design. The research work will be
conducted as per the research design prepared. It is logical & systematic outline of research
project prepared for directing, guiding & controlling a research work.
This research is EXPLORATORY in nature as it deals in exploring customer satisfaction.
2. Data collection method:Data is collected mainly through two methods. They are as follows:i. Primary Data
ii. Secondary Data

a) Primary data: Primary data constitute first hand information which is collected for the first time in order
to solve research problem.
It is the data collected from primary sources which are original sources.
It is fresh data collected for the first time directly from the respondents.
Primary data is important as it gives reliable, factual first hand information for
information purpose.
Researcher collects primary data as per the need of his research project and from the source
or the source collected from internet
It is a created data.
It is also time consuming and costly data.
Primary different methods such as mail survey, personal interviews, observation or
experimentation
Data collection instruments are to be designed according to the needs of investigation.
Primary data is the original data collected by the researcher from respondents through
Primary data are collected for detailed information on certain aspects of research project.

Data collection was done through customer survey.

b) Secondary data: Secondary data are next to primary data.

This data is already collected and complied for someone other than the researcher
himself.
It is readily available in complied form.
Such data may be in the form of statistical statements or tables or reports and so on.
Such data is available in published or unpublished form.
A researcher may use secondary data as the sole source of information for his research
study.
Secondary data are available easily, quickly and economically.

3. Sampling technique:The technique used for sampling is the random or probability sampling
Probability sampling is a process of sample selection in which elements are chosen by chance methods
as flipping coins, drawing number of balls from an urn or through tables of random numbers.

4. Place of research:The universe taken for the research is LUCKNOWEAST END MALL(WAVES),
SAHARA GANJ,
FUN REPUBLIC

5. Analysis tool :-

The statistical tools for analysis used in this report are bar graphs,pie charts etc.
The tools used for conducting consumers survey Questionnaire survey.
The whole report has been prepared by using Microsoft office 2007

6. Sample size:-

We have taken the sample size as 100

such

C. SURVEY OF CONSUMERS:SURVEY WAS CONDUCTED WITH THE HELP OF A QUESTIONNAIRE

QUESTIONNAIRE
A survey conducted through questionnaire for the purpose of research on customer satisfaction at McDonalds which includes
the following questions. Please fill the questions precisely and help us in achieving the desired objective.
NAME: _____________________________________________________
AGE GROUP:
(a) Under 16 (b) 16-25
(c) 25-35
(d) Above 35
GENDER:
(a) Male
(b) Female
Occupation: __________________________________________________
Address: _____________________________________________________
_____________________________________________________
1) Have you ever visited McDonalds?
(a) Yes
(b) No
2) What makes you patronize McDonalds?
(a) Brand name
(b) Word of mouth communication
(c) Electronic Media Advertisement
(d) Print Media Advertisement
3) How often do you visit McDonalds?
(a) Once in a week (b) Once in a month
(c) Few days /month
(d) Few days/week
4) What is your main of purpose of visiting Mc Donalds?
(a) Eating
(b) Chatting
(c) Waiting
(d) Doing some work
5) Why do you prefer visiting Mc Donalds?
(a) Good service
(b) good quality
(c) reasonable price
(d) good taste
6) You like visiting Mc Donalds alongwith (a)Girlfriend/boyfriend
(b) Friends
(c) Family
(d) Alone
7) McDonalds should improve its

.
(a)Food
1) Very dissatisfied
5)Verysatisfied

(b) Service

(c) Price

2) Dissatisfied

(d) Location
3) Neutral

4)Satisfied

.
S.n
o
8

Statements

Are you satisfied with the price of meals served?

10

Are you satisfied with the service at McDonalds?

11

Are you satisfied with the quality of meals served?

12

Are you satisfied with the cleanliness of the restaurant

13

Are you satisfied with the self service at the restaurant?

14

Are you satisfied with the ambience of the restaurant?

15

Are you satisfied with the friendliness of the employees?

16

Are you satisfied with the products of McDonalds in comparison to other food players in
the market?

17

In all are you satisfied with McDonalds performance?

Date:

1 2 3 4 5

Are you satisfied with the variety of the meals served?

Signature

D. DATA ANALYSIS :-

GENDER:MALES
FEMALE
S

4
7
5
3

UNDER
16
16 25
25-35
ABOVE 35

AGE GROUP:1
18
72
9

1) HAVE YOU EVER VISITED McDONALDS?

4%
visitors
non visitors
96%

4% - non visitors
96% -visitors

ANALYSIS :- majority of the sample segment visit McDonalds because it is

the only brand avialable in market

2) WHAT MAKES YOU PATRONIZE McDONALDS?

60
50
40
30
20
10
0

0% - print media advertisements

20% - electronic media
40% - word of mouth communication
60% - brand name

ANALYSIS :- majority of visitors follow brand name as they feel that quality is
mentained and it also serves as status symbol

3) HOW OFTEN DO YOU VISIT McDONALDS?

24%

26%
11%

39%

26%
11%
39%
24%

once a week
few days a
week
once a month
few days a
month

- once in a week
-few days a week
- once in a month
- few days a month

ANALYSIS :- data analysis shows that majority of visitors visit on monthly

basis. Major visitors are from middle class society and so it is difficult to sustain
more frequent visits

4) WHAT IS YOUR MAIN PURPOSE OF VISITING McDONALDS?

do some work
waiting
chatting
eating
0

10 20 30 40 50 60 70 80

1% -doing some work

2% - waiting
19%- chatting
74% - eating

ANALYSIS :- the data shows that major purpose of visitors is eating

5) WHY DO YOU PREFER VISITING McDONALDS?

45
40
35
30
25
20
15
10
5
0

18%
39%
23%
16%

good service
good quality
reasonale price
good taste

ANALYSIS :- data shows people prefer McDonalds due to good quality. Since
consumers want maximum return for their money, quality is most promising
domain were maximum return can be reeped

6)

YOU LIKE VISITING McDONALDS ALONGWITH-

60
50
40
30
20
10
0

17%-GIRL /BOY FRIEND

54%-FRIENDS
22%- FAMILY
2%- ALONE

ANALYSIS :- MAJORITY PEOPLE VISIT WITH FRIENDS. In Indian society, one has to
mentain the decorum of social behaviour when with family while among friends
one is free of constrains, thus major people prefer company of friends.

7) McDONALDS SHOULD IMPROVE ITS-

LOCATION
PRICE
SERVICE
FOOD
0

21%
18%
21%
36%

10 15 20
25 30 35
40

FOOD
SERVICE
PRICE
LOCATION

ANALYSIS :- MAJORITY OF VISITORS THINK THAT MCDONALDS SHOULD

IMPROVE THEIR LOCATIONS. This because in lucknow, outlets are opened at
central points which may be far of from many places.
8) HOW MUCH SATISFIED ARE YOU WITH THE VAREITY OF MEALS SERVED?

Sales
VERY DISSATISFIED DISSATISFIED
9% 3% 6%

SATISFIED

NEUTRAL

30%
51% VERY SATISFIED

3% - VERY DISSATISFIED
6% - DISSATISFIED
30% - NEUTRAL
51%- SATISFIED
10 % - VERY SATISFIED

ANALYSIS :- major segment of people appear satisfied with variety of meal

served. This is because the consumers feel that their money is effeciantly
valued in terms of services provided
9) HOW MUCH SATISFIED ARE YOU WITH THE PRICE OF THE MEALS SERVED?

50
40
30
20
10
0
VERY DISSATISFIED NEUTRAL

VERY SATISFIED

ANALYSIS MAJOR SEGMENT OF THE PEOPLE APPEAR TO BE SATISFIED WITH

THE PRICES OF THE MEALS SERVED. Items like MAC ALLU TIKKI, MACPUFFS etc
are quite economical and good enough to satisfy hunger pangs
10)

HOW MUCH SATISFIED ARE YOU WITH THE SERVICE OF McDONALDS?

Sales
VERY DISSATISFIED DISSATISFIED
13% 7%
6%
27%
48%
SATISFIED
VERY SATISFIED

NEUTRAL

7%- VERY DISSATISFIED

5% - DISSATISFIED
27% - NEUTRAL
48% - SATISFIED
13% - VERY SATISFIED

ANALYSIS:
SERVICE.

MAJOR

SEGMENT

11)
HOW MUCH SATISFIED
SERVED?

APPEARED

TO

BE

SATISFIED

WITH

THE

ARE YOU WITH THE QUALITY OF THE MEALS

60
50
40
30
20
10
0

51
5

14

22

5%- VERY DISSATISFIED

4% - DISSATISFIED
14% - NEUTRAL
51% - SATISFIED
22% - VERY SATISFIED

ANALYSIS: MAJOR SEGMENT APPEARS TO BE SATISFIED WITH THE QUALITY OF

THE MEALS SERVED.
12)
HOW MUCH SATISFIED ARE YOU WITH THE CLEANLINESS OF THE
RESTRAUNT?

VERY
DISSATISFIED
DISSATISFIED
NEUTRAL
SATISFIED
VERY
SATISFIED

5%- VERY DISSATISFIED

4% - DISSATISFIED
14% - NEUTRAL
51% - SATISFIED
22% - VERY SATISFIED

ANALYSIS : MAJOR SEGMENT APPEARS TO BE SATISFIED WITH CLEANLINESS OF

THE RESTRAUNT.
13)
HOW MUCH SATISFIED ARE YOU WITH THE SELF SERVICE AT THE
RESTRAUNT?

VERY
DISSATISFIED
DISSATISFIED
NEUTRAL
SATISFIED
VERY
SATISFIED

5%- VERY DISSATISFIED

4% - DISSATISFIED
14% - NEUTRAL
51% - SATISFIED
22% - VERY SATISFIED

ANALYSIS : MAJOR SEGMENT APPEARS TO BE SATISFIED WITH THE SELF SERVICE

AT THE RESTRAUNT.This is because younger generation prefer more informal
ambiance rather than a sophisticated environment.
14)

HOW MUCH SATISFIED ARE YOU WITH THE AMBIENCE OF McDONALDS?

Chart Title

Axis Title

VERY SATISFIED
SATISFIED
NEUTRAL
DISSATISFIED
VERY DISSATISFIED
0 10 20
30 40 50
Axis Title

1%- VERY DISSATISFIED

8% - DISSATISFIED
30% - NEUTRAL
47% - SATISFIEd
10% - VERY SATISFIED

ANALYSIS: MAJOR SEGMENT APPEARS TO BE SATISFIED WITH THE AMBIENCE OF

THE RESTRAUNT because it entertains the liveliness of youth
15) HOW MUCH SATISFIED ARE YOU WITH THE FREINDLINESS OF THE
EMPLOYEES?

14% 2% 9%
27%
47%

VERY
SATISFIED
DISSATISFIED
NEUTRAL
SATISFIED
VERY
SATISFIED

2%- VERY DISSATISFIED

10% - DISSATISFIED
27% - NEUTRAL
47% - SATISFIED
14% - VERY SATISFIED

ANALYSIS- MAJOR SEGMENT APPEARS TO BE SATISFIED WITH THE

FREINDLINESS OF THE EMPLOYEES
16)
ARE YOU SATISFIED WITH THE PRODUCTS SERVED AT McDONALDS IN
COMPARISON TO OTHER ?

Chart Title

5 10 15
20 25 30
35 40 45
50

Axis Title

1%- VERY DISSATISFIED

9% - DISSATISFIED
19%- NEUTRAL
50% - SATISFIED
17% - VERY SATISFIED

ANALYSIS:- MAJOR SEGMENT APPEARS TO BE SATISFIED WITH THE THE

PRODUCTS SERVED AT MCDONALDS. This is because the easely satisfy the
need of snacks at economical prices

17)
HOW MUCH SATISFIED ARE YOU WITH THE OVERALL PERFORMANCE OF
McDONALDS?

VERY SATISFIED

19

SATISFIED
NEUTRAL

57
13

DISSATISFIED 6
VERY SATISFIED1
0

10

20

30

40

50

60

1%- VERY DISSATISFIED

6% - DISSATISFIED
13%- NEUTRAL
57% - SATISFIED
19% - VERY SATISFIED

ANALYSIS:- MAJOR SEGMENT OF THE PEOPLE APPERARS TO BE SATISFIED WITH

THE OVERALL PERFORMANCE OF McDONALDS.

E. INTERPRETATION:Customers patronize Mcdonalds because of its brandname.Most of the customers prefer to visit once in a
month rather visiting quarterly or weekly.
Most of the respondent visit due to the quality of the products.
Most of the people find ampleamount of variety of products and also they satisfy their hunger.
Most of the respondents are satisfied with the self servicing in McDonalds.Most of the people prefer
visiting McDonalds along with their friends.
Most of the customers appears to be satisfied with the friendliness of the employees.
Most of them have cherished the cleanliness of the restraint.Most of the segment is satisfied with the
overall performance of McDonalds.

F. CONCLUSION:A consumer is satisfied in a restaurant only when he receives the products within these three
aspects and they are quality, price and healthy product.
From this project we would like to conclude that most of the customers are satisfied with the
products offered and also with the quality of the products and also with prices of the products.
The customers also want McDonalds to improve its locations.

G. RECOMMENDATIONS AND SUGGESTIONS:-

McDonalds must provide waiter service instead of self service.

McDonalds must bring in variety of products in their menu.
McDonalds should reduce the prices of their products.
McDonalds should improve its locations.

H.LIMITATION:

The sample size of 50 is too small to understand the consumer satisfaction in McDonald
product.

Consumer satisfaction needs specialized knowledge of area so there is a chance of

interpretation error.
There is a possibility that respondents might have filtered their response under testing
condition.

I.

BIBLIOGRAPHY & WEBLIOGRAPHY:-

BIBLIOGRAPHY:-

WEBLIOGRAPHY:-

http://www.ehow.com/facts_7200417_consumer-satisfaction_.html
http://managementhelp.org/customer/satisfy.htm l

http://managementhelp.org/customer/satisfy.htm l
http://www.ehow.com/facts_7200417_consumer-satisfaction_.html

http://www.scribd.com/doc/12020770/A-STUDY-ON-CUSTOMER-SATISFACTION-TOWARDS-ONLINE-SHARE-TRADINGWITH-SPECIAL-REFERENCE-TO-COIhttp://www.greenbook.org/market-research-firms.cfm/customer-satisfaction

http://www.greenbook.org/market-research-firms.cfm/customer-satisfaction

www.iresearch.com/Customer-Satisfaction-Surveys.html - United States

http://www.efa.org.uk/pages/mcdonalds-research.html

http://nrn.com/article/mcdonalds-sees-drop-customer-satisfaction

http://www.iimb.ernet.in/publications/review/march2008/customer-satisfaction