Factors influence on Consumer Preferences towards International Fast Food Restaurants

in Karachi: McDonalds & Hardees

A Research report submitted

By

Javed (2196)

To

Department of Business Administration

In partial fulfillment of

The requirement for the

Degree of

BACHELORS OF BUSINESS ADMINISTRATION

In

Research Report

Sir Syed Ali Raza

Advisor

Mr. TehseenJawaid
Manager Research

Acknowledgement/Dedication

First of all thank Al-Mighty ALLAH and our teachers, Mr.Syed Ali Raza and Miss Amber Virani

for their valuable advices and support, which they have given to us on preparing this report, without
 Factors influence on Consumer Preferences towards International Fast Food Restaurants in Karachi: ii
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their instructions this report wouldnt be completed. we would like to express our gratitude to all

those who have extended their helping hands to complete this research report . Amongst the most

deserving significant contributors were the participants who contribute to filling the questionnaires

and they gave their precious time to make our goal accomplish. We would like to appreciate our

group members for their efforts and cooperation for data collection and in preparation of this

report, each and every member played a vital part in preparing this report.

Abstract:

This article paper is based on consumers preferences; preferences are the desires by each
individual for the consumption of goods and services. The main reason for our study was to find

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out those factors which are affecting on consumers preferences towards international fast food
restaurants.

For this research, we have conducted a survey by questionnaire containing 30 questions and filled
it from the consumers of Mcdonalds and Hardees. Our research was purely quantitative and we
have used SPSS Software for Factor Analysis, Reliability and Regression.

All the variables which we used in this study (Services, Brand Loyalty, Brand Image and
Convenience) have positive and significant impact on Consumer Preference. Consumers tend to
consider these factors valuable and their behaviors are affected by them. Convenience was the
main factor which influences the most on Consumer Preferences.

Our study is totally based on particular consumers of the specific brand (Mcdonalds and Hardees)
and only covering beef lovers, because these are the only two international brand offering beef,
and the other issues were limited time period with a limited cost.

1. Introduction

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1.1. Background

There are many fast food restaurants running their functions in Pakistan i.e.: KFC, McDonalds and

Pizza Hut which are most famous for Pakistanis citizen. The purpose of their function has to

achieve good revenue and they prepared their menu by the discrimination of Pakistanis people.

These restaurants also help to build a better economy system for the country by generating more

job opportunities. There are many local restaurants facilitating the people of Pakistan.

The taste of consumer have changed with changing times. Because of busy life style of consumer

the focus is on quick-meal solution. The fast food industry of Pakistan comprises the large number

of operators and due to it there is a huge competition in fast food industry in Pakistan.

In this paper, we are considering Hardees &McDonalds and we will do analysis of these two fast

food restaurants.

Being a responsible corporate citizen, McDonalds firmly believes in giving back to the

communities it operates. We love to provide support and encouragement to the people who need

it the most. Every year we help set up and support numerous educational, sporting and charity

programs designed to help a wide range of people.In Pakistan Hardees goal is to supply the good

Quality food to the customers is a core focus for the brand.

Kossel, et al, (2007), this paper examines is to determine those elements which affects the

preference of consumer during purchasing. The most affecting factors of consumers decision

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towards product cost, attributes of the product, accessibility of the product and so on. He did

market survey to recognize those complications which are faced by consumer.

The objective of our paper is to measure the customers choice towards international fast food

restaurant in Karachi. In this we will discuss those factors which are related with consumer for

example they look for peaceful atmosphere and good quality products and the most important

factor is that they see their closeness also.

And in the last our research paper will be useful for the marketing department because in this paper

we will focus on the location because every person is more concern about location of fast food

restaurants.

1.2. Problem statement

Previous research entirely based on how to grab customers who have already a loyal of their

explicit traditional restaurants towards fast food industry, the most considered variable includes

ambience of the restaurants that how they contributes a major role to influence a consumer 1 .

Also previous research papers include convenience as a variable because some customers wish to

have short walking distance for meal2.

But however our study fallouts are based on that what are the prime variables that influence any

person to select one brand among all of the brands who are serving same nature of food. The

1
Horeco(2000)
2
Klassen,Trybus(2005)

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variables include service, convenience, brand loyality, brandimage, and location. The target

audience of our research is the core customers only and the brands which we have focused are

Hardies and Mc Donalds the location for conducting interviews is gulshan-e-iqbal (including all

branchesof the brands.

1.3. Research objective

Identify those components of International fast foods that impact on consumer preference.

1.4. Research Question

What are the factors that influence on consumer preferences towards international fast food

restaurants?

1.5Scope of the study

This paper is useful for new comers who want to explore the core ideas related towards

upcoming or existing fast food restaurants and also valuable for marketing peoples who wish to

become more competitive in fast food industry.

1.6 Limitation of study

Our study is totally based on particular consumers of that specific brand so our findings or results

will be able to represents the preferences of the general public who wish to buy the products of

that brand which are specifically beef lovers and the other most important issues is limited time

period with a limited cost.

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Chapter 2: Literature Review

2.1 Theoretical background

The independent variable we came up with is marketing campaign which can alter the consumer

preference in fast food industry. Food is a sensitive item about which consumers are very

conscious whether it is quality wise good or hygienic and in Muslim countries the products

should be halal so all these things are part of highlighting when marketing goods. A good

marketing campaign which analyzes the local culture can benefit from it.

The other independent variable we analyzed is brand image. Brand image in fast food industry

plays a role which affects consumer preferences, the brand which is well known all around the

world it carries an image itself and has goodwill attached to its name, so new consumers are

automatically attracted towards such brand. Then again when such huge brand enters into new

and different culture they create and give a local touch so that people associate it too easily.

Independent variable loyalty is most valuable factor act on consumer preference. Holding and

keeping consumers loyal to your products is not a piece of cake for any company when you have

huge competitions out there. This requires hard work, experience, and providing quality with

consistency and above all giving the consumer what it wants, and then comes the customer

suggestions and feedback.

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Service is also a crucial independent variable for consumer preference. Companies providing

good service with consistency can attract more users and retain their own users, and keep them

loyal. For example business or elite class dont really care about the price the products all they

care about is the quality and the service, whereas youngster especially students go for deals and

discounts offered at fast food. So service has to be such it makes the demand of masses answered

in a way that they are satisfied.

Convenience and location plays a vital role because consumers want the outlets of fast food near

their homes, workplace, school, universities and institutions so that they can easily go there when

they are out at lunch and dinner times. So opening up a restaurant at a location where people will

come is very important. These businesses are sensitive to this factor, so convenience is a major

independent factor for consumer preference.

2.2 Empirical studies

Anita Goyal N.P. Singh et al (2007) in this research article we explore the preferences of Indian

consumer and what are their preferences about fast food, the author focused on the consumption,

hygiene and nutritional values of the consumers, in this research the sample size was taken about

200, and It was thought that this number would be appropriate. The findings of this research is that

the Indian consumer like to have fast food as their meals and like to visit fast food outlets, but in

their mind their first choice is homemade food. They feel that it is for hygienic and is much better

than outside. The variables of this study are quality, hygiene, nutritious food and service. Although

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the fast food outlets rating are getting high but the consumers visit fast foods to go for a change

and fun, but not as a substitute to homemade food. Consumers are really very concerned about the

hygiene and nutrition of food served at fast food, so in future the competition in the market of fast

food would be on the quality and hygiene of the food product they are offering.

Ali Kara et al (1997) in this article it is explored about the marketing strategies of fast food outlets

and the perception of consumer is creating in their minds. This study is focused on two countries

which are a huge market of fast food, America and Canada. In this research the researcher has

focused on the idea that fast food should be marketed according to the culture and perceptions of

the local market. How is it perceived in certain country it could be perceived differently in other

culture? So the author has analyzed the two countries and their pattern. As this study is done on

two countries so the sample size would be the population of both countries US and Canada or the

fast food consuming public of these two countries, 179 questionnaires was obtain by US sample

and 141 usable questionnaires was retrieve by Canada. Variable of this study is the culture, which

builds the perception in the minds of the consumer about the fast food which they want to consume

or not.

US consumer place hamburgers at the top while Canadian put seafood at the top. US consumers

second choice is pizza while Canadians is hamburgers. But as findings showed that there is no

difference in the timings of consumption of fast food between US and Canadian consumers.

Usman Ehsanet al (2012) this journal is about the consumer preference of fast food, and the factors

which influence them to select or reject any particular fast food restaurant. So this article is about

recognizing those factors and identifying the cultural and regional differences in consumer

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behavior. Samples of 447 questionnaires were distributed in universities of three cities in Pakistan.

Following are the variables of this study, price, and variety of food, promotional deals and timely

service. The conclusive results of this study shows that in all the three cities of the same country

the factors vary for which consumer prefer the fast food. For some service is more important and

for some the quality and hygiene of the food is the major factor.

Bjorn Frank et al (2012) this research is about the formation of fast food restaurants by the

consumer attitudes. This study focuses on the obesity problem in youngster who consumes fast

and junk food a lot, and the difference in the attitude of teenagers and adults towards fast food.

This study in conducted in the German society.

Findings show that the teenagers do realize the negative effects of the consumption of fast food,

but they fail to choose a healthier diet over their love for fast food and to satisfy these urges as

compared to adults.

Jabir Ali et al (2010) this article is about the development of modern food industry had introduced

by the consumers choice and behavior. The sample in this research taken was 101 households

who had sufficient purchasing power. Variables of the study are price, quality and variety. The

finding shows that preferences of consumers indicated the cleanliness of the food products and its

fast service, and the availability of the outlet nearby their home. Food consumption is changing

around the world as life is speeding up people are more attracted towards the fast deliverance of

food with quality and hygienic food.

Frewer et al (2012) categorize and examine consumer preferences and information needs on the

topic of the immediate message of peril and damages connected with food exploitation. A total of

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33 consumers play a part in the hub group negotiations. Consumer preferences on the subject of

the communication of jeopardy-advantage judgment production specify that in chain with

reference to the net health collision of consuming fastidious foodstuff may be precious to

consumers, in particular information concerning the net impact on both life anticipation and

excellence of life. Although group may be responsive that a number of foodstuffs or component is

good quality or bad for their healthiness, they may not be aware about the faithful health impacts.

Precise information in relation to how specific products or ingredients may influence fitness, for

example in terms of transform in life probability and quality of living, may boost the

meaningfulness of the information for patrons. For most members, getting only information about

life suspense or quality of life was not satisfactory information to make an informed decision so

that fast food restaurant has no take some of major decision that influences the consumers

Schoormans et al (2010) inquire about to evaluation how favorite used for illustration

sophistication and equilibrium depends on the mixture of product value that is important to

community. 512 members of an end user domestic explore panel associated with a most important

European University. The in dependent variable equilibrium and illustration convolution on

customers and dependent variable were item for consumption, assessment straight inference for

executive management segment of manufactured goods advance concerning to make as the crow

flies the proposition crack with objective of customers and influential unmistakable item for

consumption devise implementation.

LANNES et al (2008) projected at evaluate the sensory acceptability of chocolate crammed with

strawberry, orange or passion fruit pulps, mixed in fondant, in a hydrogenated chubby pedestal as

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well as as truffles. Ninety four customers take part in the test using a 10 cm hedonic weighing

machine to charge the on the whole liking of the mock-up. Two-method of inquiry of difference

and the interior penchant mapping procedure be used to examine the information. Consequences

give you an idea about a high-quality generally predilection on behalf of more or less all tasters,

essentially used for strawberry and zeal fruit truffles.

Baldwin et al (2011) demonstrate that innovation; taste and symptom are the most significant

feature of new citrus. Wide-ranging preferred stay alive in the middle of customers in addition to

together demographic and a behavioral changeable has historic force resting on fondness. Specify

there are no major top predictors of customer preference. Though, it develop into observable

present is hidden to enlarge explicit marketing method based on demographics

Basman(2007) a body of theorems purporting to explain the consumption behavior of individuals

when their preferences are changed, either autonomously or by advertising and other forms of

selling effort. The objective of this paper is to present a theory of consumer demand with variable

preferences. The assumption that the individual consumer has a unique ordinal utility index

function is replaced by the assumption that he has a family of ordinal utility functions; advertising

expenditures by the sellers of commodities are assumed to determine which one of these ordinal

utility functions is to be maximized. From these assumptions are derived a number of theoretical

relations which measurements defining advertising elasticitys of demand must satisfy. The

relations involving shifts in demand and advertising elasticitys of demand.

Jehoushua (2000) the modeling of preferences for multi attribute alternatives has received an

increased attention in marketing (consumer behavior) and management science (decision analysis).

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The research in the two disciplines is closely related and can be applied to predicting consumer

preferences for multi attribute options. The purpose of this paper is to illustrate and discuss several

preference models and measurement techniques that have been used mainly by decision analysts

and which are applicable in the consumer preference judgment context. A pilot application of the

measurement techniques which provides some insight on their relative predictive accuracy and on

the usefulness of empirically verifying the conditions.

Srinivasanet al (2005) a new ways for measuring, analyzing, and predicting a new brand's equity

in a makter. As we know that Brand equity is defined as it is the intangible asset its a symbol or

name where we identify to use the source of product strategies to enhance a brand's equity.

According to the analysis brand equity can create a certain level of significant value

Hauser et al (1982), in this article, authors found consumer responses during when they tried to

new products. In this article, authors did quantitative research and they used stochastic models to

identify the consumer response towards marketing strategies and there are 6-7 marketing variables

such as: innovator, price-off deal, advertising, social and personal norms, product improvement,

product positioning and word of mouth. The objective of this article is that marketing manager is

launching a new product and he wants to know how quickly consumer will try the sample and

researched among three products that were purchased by the consumers. These three products are:

Bayer, Excedrin and Tylenol. And the conclusion of this article is that when the marketing manager

launches a new product that product does unaware from the consumers.

Kerssenset al (2005), in this article authors did research on consumers choice in their social health

insurance. The main objective of social health organization is that to become consumer oriented

and more proactive to manage health. Health cares expenses are too expensive in European

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countries. They used nonlinear additive model to identify health status about personal and family

characteristics and they mailed their questionnaire to 842people to one of the main Dutch health

institute fund and only 365 gave response. In this paper, the independent variables are: personal

characteristics such as age, gender, income, health status, illness, family situation etc. and

dependent variables are: premium, , nobody claim discount, choice of family physicians and

hospital, dental benefits and so on. The conclusion of this article is that Dutch population is

homogeneous regarding their satisfaction with insurance funds and the most frequently reason

where people choosing a health insurance in early when they adult with the recommendation from

family, friends and relatives.

Koksalet al (2007), in this article the purpose of this study is to identify the factors affecting the

consumer preferences and children behaviors clothing sectors in Turkey, as we know that the

majority of turkey population is under 18 years old . The most affecting factors of consumers

decision towards childrens are many thing it can be clothing are the convenience , payment,

quality and size of clothing. He did market survey to determine the factors that affect consumer

preference. And the conclusion of this study is that to explain the growing childrens clothing

market.

Ryan et al (1996), author did conjoint analysis as a method of getting visions into the preference

for food product. To establish the trade-offs that consumer make between price, quality and

location of acquisitions in the acquiring of fruits and vegetables. In this segmentation of the price

aspect by salary, those who have higher salary they will able to pay high. Authors founded results

through questionnaires because they felt it is the easy way to gather data and take meaningful

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answers. The result of this study suggested that is to establish consumer preferences for alternative

food products that are commercially reasonable.

Zhang et al (2008), the purpose of this research is to determine the product and process effect on

consumer preferences for online and offline channels. The transaction process has a significant

impact on consumer preferences for online and offline channels. Authors did a questionnaire

survey and it was limited to college students. The authors suggested that this paper will facilitate

those managers who are involve in designing and choosing transactions channels based on product

type and process function type.

Siau, et al (2003) examines issues in providing services via wireless technologies, i.e. mobile

services. They discuss the challenges facing by mobile services, such as changes in business

strategies, investment risk, limitations in mobile devices, networking problems, infrastructure

constraints, security concerns, and user distrust in mobile applications. The authors also discuss

the research issues, such as killer applications, usability, user interfaces, mobile access to

databases, and agent technologies.

Leppaniemi, (2005) presents the study which investigates the consumers' willingness to accept

mobile advertising. First, they study the factors that influence the acceptance of mobile advertising

from both industry's and consumers' point of view. Second, based on a review of previous studies

in the field, the authors propose a conceptual model of consumers' willingness to accept mobile

advertising. Their findings provide several conceptual and managerial insights into the role of

mobile advertising today and in the near future.

Farris et al (2012)The article define the possibility that the consumer might demand advertising as

a form of information, that a Manu- facture might advertise to strengthen his/her position most

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efficiently, and that a manufacturer might find advertising the most cost-effective device for

communication and competition in a world of mass marketers has often been overlooked.

Frequently instead, the apparent effects of advertising in a few highly visible product categories

have been used as the model for all consumer products; statistical results have been misused and

misinterpreted.

Karjaluotoet al (2005) argue that the choice of a mobile phone is a subjective choice situation;

there are many reasons to change the cell phones, it can be on cost, loyalty, image, etc. and the

result of this research is that the students have changed their mobiles.

Almeroet al (2011) this research has been done in Jordan by the framework of telecom industry.

They use the quantitative technique the sample size was 648 questionnaires was use 55% was filled

with male and 45%was filled female. Consumer choice was the dependent variable and brand

image and awareness was independent variable.

Al-Shiblyet al (2010) to examine the relationship between customer service skills and customers

loyalty through examining the mediation effect of customer satisfaction dimensions in Jordans

mobile service operators. They use the quantitative technique the sample size was1007 structural

equation modeling, and after a series of exploratory and confirmatory factor analyses, the authors

tested an integrated model of customer service skills and customer loyalty through examining the

meditational effects of customer service satisfaction dimensions on the relationship between

customer service skills and customer loyalty. Findings It was found that three of customer service

skills components, namely; reputation building skills, nonverbal communication skills, and

customer service culture have positive relationships with customer service satisfaction dimensions

(overall, functional, and technical customer satisfaction). Also, overall customer service

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satisfaction and technical customer service satisfaction dimensions fully mediated the relationships

between customer service skills and customer loyalty dependent variable was Reputation Building

Skills Problem Solving Skills Verbal Skills Nonverbal Communications Skills Customer Service

Satisfaction Overall Satisfaction Functional Satisfaction Technical Satisfaction, Customer Service

Culture Skills, Customer loyalty and independent variable were Customer satisfaction.

Kaapanda et al (2012) to ascertain serious thing in the choice of mobile telecommunications

service providers (MTSPs) in the northern region of Namibia. A survey gadget is working to gather

information as of customers of the three cellular phone machinist in Namibia. The study optional

precise marketing strategies on the way to develop the achievement of MTSPs into this aggressive

marketplace and guarantee superiority service freedom to make happy to customers. The

autonomous variables are social factors, service worth, value, endorsement and services

accessibility as well as needy variable was Satisfaction. The author have adapted quantitative

approach, 83 questionnaires were spread. It is plain that customers preference is principally

subjective by marketing merge fundamentals. The up to date study recognized that customers seem

at the call rates; promotional mix offers such as free calls/minutes and free SMSs, and promotions

with discount and free sample play a vital role in customers choice of MTSP.

Hossainet al (2012) study is designed for the analysis of the consumers preferences for selecting

the telecom operators in Bangladesh. This study includes an empirical analysis using AHP model

based on some criteria of consumers preferences. This study provides relevant ranking using AHP

model rather than finding the causal relationship among the variables. The nature of the study is

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of descriptive type with an empirical analysis. For the analytical purposes ranking of the telecom

operators are being made using the Analytical Hierarchy Process (AHP) model. It emphasizes on

the AHP ranking of the telecom operators based on some criteria of consumers satisfaction.

Rajpurohit, et al (2011) the time period of IT, now a day IT is providing fast and informative

knowledge to its users. As we see in every country nowadays the growing market in the world is

telecom industry. A service of the telecom industry is being provided by the internet access

provider, due to the new technologies and IT these restaurants also can take help from them to

make their services effective and efficient for their customers.

Seungjin, at al (2010) the Research of mobile is being used by the customers. Business can be run

in the market by the customers only because if a business man cannot design his products according

to the taste of customers. In order to gain more customers mobile phone network companies should

focus on customers services with different plans and packages according to their ages and

demands, nowadays unlimited voice plans packages are getting more popular so they need to focus

in this area.

Anthony, et al (2010) In India telecommunication sectors is growing day by day with the economy

opening up, competition in this sector is increasing. The entry of private companies promoted the

use of cellular phones in the country. There are 22 private companies providing mobile services in

14 telecom circles and three metro cities, covering many towns across the country. There are two

types of mobile service networks: GSM and CDMA. Major players operating in India in GSM

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sector are: Bharat Sanchar Nigam Limited. In the telecom sector service and quality is one of the

major key point, companies should remain understand about the competitors, they are growing

fast, also customer satisfaction is one of very important thing, which effect the organizational

profitably satisfaction of customer leads to repeated purchase, loyalty and positive words about

the brand.

Chapter 3.Methodology

3.1 Research Approach

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Quantitative Approach

For our primary data we have adapted the quantitative approach as it provide the accuracy,

trustworthy illustration and plan, potential to make causality declaration, beginning to end the

make use of prohibited research, numerical method assign for complex examination.

3.2 Research Purpose

Explanatory: Explanatory research is done in order to explain behaviors of the market and it is

done over topics which are already explored, but they still need to be elaborated. It could be done

through using questionnaires, group discussions, interviews, random sampling, etc

3.3 Research Design

Types of Quantitative Research

Co-relational

Correlation research is measured nature of observational research as nothing is influence by the

experimenter or individual accomplish the research. Co relational research is repeatedly conducted
as exploratory or beginning research. Once variables have been known and describe, test are
conduct able
The correlation is a technique to evaluate how linked or associated two or more variables. The
researchers seem at stuff that already be present and verify if and in what way individuals things
are interconnected to each other. The reason of doing correlations is to consent to us to make a
forecast regarding one variable found on what we know about an additional variable. We cannot
formulate statements in relation to cause and effect on the beginning of this sort of research.

3.4 Data Source

The data has been collected from the consumers of two of the major international fast food brands

delivering in Pakistan, McDonalds and Hardees.

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3.5 Target Population:

Target market is covered on multiple factors like: geographic, psychographic, demographic,

behavioral etc. In this paper, we are targeting the market by gender wise i.e. male and female both,

age wise i.e. 16+ and location wise i.e. within areas of Karachi.

3.6 Sample Size:

In this research paper, we will take 235 questionnaires.

3.7 Data Collection Technique:

In this research, we will make questionnaires and we will collect data through Likert Scale. The

format of Likert scale is that: 1. Strongly Agree, 2. Agree, 3. Neutral, 4. Disagree, 5. Strongly

Disagree.

3.8 Sampling Technique:

In this paper, we will conduct purposive sampling. Purposive sampling is also called judgmental

sampling it means that it is based on the knowledge of the researcher and what are those units on

which he is conducting the study. It is very useful sampling for the researcher for some situations

where you need to reach a targeted sample quickly.

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3.9 Statistical Technique:

This study followed by factor analysis and regression analysis.

Factor analysis:

Factor analysis is a statistical method used to describe variability among observed,

correlated variables in terms of a potentially lower number of unobserved variables

called factors.

Regression analysis:

Regression analysis is a procedure for calculating the relationships among variables. It uses for

forecasting and it also widely understand the relationship of dependent and independent variables.

It tells us typical value of dependent variable changes when one of the independent variable is

varied.

3.10 Model Hypothesis:

CP = + 1 MC + 2CL +3S+ 4L+ 5BI+e

H01 : There is an insignificant impact of marketing campaign on consumer preferences choosing

restaurants.

H 02 : There is an insignificant impact of convenience or location on consumer preferences

choosing fast food.

H03 : There is an insignificant impact of service on consumer preferences while choosing fast food

restaurants.

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H04 : There is an insignificant impact of loyalty on consumer preferences while choosing fast food

restaurants.

H05 : There is an insignificant impact of brand image on consumer preferences while choosing fast

food restaurants.

3.11 Variable description

3.11.1 Location

Location is a particular place or position.is a particular place or position.

3.11.2 Service

Service offers a familiarity with the purpose of assemble customer opportunity. It generates

pleased consumers. Bad service can make criticism. It can effect in lost sales, as consumers force

take their business to a rival.

Good service engages rising connection with consumers, confidently most central to long-period

associations. It builds compensation for both consumers and the industry alike. Consumers

promote for the reason that the industry is as long as a service that meets their desires. The business

payback as pleased regulars is likely to be recur customers. Service is exercise to deposit the way

for the industry.

3.11.3 Loyalty

Brand loyalty is that a person buys product or services repeatedly from the same manufacturer.

The result of brand loyalty is behavior of the consumer and it is affected by some consumers

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preferences. Loyal customers consistently purchase products irrespective their convenience or

price.

3.11.4 Brand image

Brand image is the existing outlook of the consumers regarding a brand. It can be distinct as a

exclusive bundle of relations surrounded by the mind of object customers. It is a set of beliefs held

about a specific brand. It is the approach in which a precise brand is to be found in the marketplace.

Brand image convey moving importance and not presently a mental reflection. Brand image is

nothing but an organizations character. It is a buildup of contact and surveillance by people

outside to an association. It should emphasize an organizations operation. The main essentials of

positive brand image are- exclusive symbol sparkly organizations image, slogan describing

organizations business in concise and brand identifier behind the key values.

4. Data Analysis

In this chapter 4, the data has been established in an order. The data will be examined by the use

of different tests in SPSS software.

4.1 Reliability

The data of reliability has been determined by applying statistical tests of reliability. The

questionnaire for this study based on 30 questions which contains both dependent and independent

variables. Reliability test has been tested in SPSS software, according to limitations the value of

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Cronbachs Alpha should be more than 05 or 50%. The Cronbachs alpha value for this study is

0.705 or 70.5% it means that data should be acceptable.

Table 4.1

Reliability Statistics

Variable No. Of Items Cronbach's Alpha

Service 3 .463

Convenience 3 .516

Brand Image 3 .275

Brand Loyalty 4 .509

Consumer Preferences 5 .513

Overall 18 .705

The first variable Service has 3 items and the value of alpha of these items is 0.463. In the

second variable Convenience has 3 items and the value of alpha of these items is 0.516. In the

third variable Brand Image has 3 items and the value of alpha of these items is 0.275. In the

fourth variable Brand Loyalty has 4 items and the value of alpha of these items is 0.509. In the

fifth variable Consumer Preferences has 5 items and the value of alpha of these items is 0.513.

First three variables have 3 items, one has 1 item and the last one has 1 item, it means that these

have less contribution. The overall reliability scale is 0.705 or 70.5%.

4.2 Factor Analysis

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Table 4.2.1

KMO and Bartletts Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .7244

Bartlett's Test of Sphericity Approx. Chi-Square 1322.602

Df 190.000

Sig. 0.000

As per the condition for the value of alpha that it should be more than 0.50, so the reliability of

the data that can be checked by the value of Cronbachs alpha and the values of both dependent

and independent variables which are greater than 0.50. The value of KMO of independent

variable is 0.7244 or 72.44% that is shows 72.44% of variance.

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Table 4.2.2

Rotated Component Matrix

Brand Brand Consumer

Services Convenience Image loyalty Preferences
Q1. I consider service speed in fast food
restaurants is very important. 0.4005132
Q3. I consider table service is very significant in
fast food restaurants. 0.7129182
Q5. Presentation of food is imperatively high in
fast food restaurants. 0.7976896
Q6. Easily accessibility and location of fast food
restaurants is important. 0.778518168
Q8. I believe parking facility is important in fast
food restaurants. 0.620290557
Q10. The consumer wants the outlet of fast food
restaurants near to the home or work places. 0.606331689
Q16. I consider a brand which endorsed by the
celebrity. 0.388428
Q17. Is it easy for a well-known brand to capture
new customers? 0.726655
Q18. Fast food delivers a good brand image to its
customer. 0.717487
Q21. Does brand loyalty have impact on your
purchase? 0.71791006
Q22. How likely that you would use your
preferred brand in the future. 0.49977126
Q24. You always give value what your family
recommends you about restaurants. 0.62505764
Q25. Your social gathering influences your
decisions of selecting your preferred brand. 0.64171624
Q26. Foreign products have an extra edge over
the domestic products in the preferences of
consumers. 0.562132
Q27. Consumer's buying patterns rely on some
factors when buying an imported product. 0.499538
Q28. There are few factors that motivate the
consumer in preferring any particular fast food. 0.533132
Q29. Preference priority changes with the
passage of time. 0.705333
Q30. Usually youth prefer international fast-food
restaurants. 0.600541

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Above table 4.2.2 defines the correlation between dependent and independent variables. The

highest value of correlation shows the highest level of relationship to the dependent variables. It

creates group of each variable.

4.3 Regression Analysis

Table 4.3.1: Regression Coefficient (Consumer Preferences)

Variables Coefficient t-stats Prob. V.I.F

(Constant) 0.603 3.403 0.001

Services 0.133 2.313 0.022 1.108

Convenience 0.278 5.684 0.000 1.108

Brand Image 0.109 2.234 0.026 1.033

Brand loyalty 0.229 4.306 0.000 1.120

Adj. R2 0.311

F-stats (Prob.) 24.606 (.000a )

Table 4.3.1 describes the statistics of all variable both dependent and independent variables with

their beta value, co-linearity value, significant value. The value of shows us the nature of

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relationship between dependent and independent variables. If the value is positive means that

there is positive relationship between independent and dependent variable and the negative value

of means there is negative relationship between independent and dependent variable. In above

table Services, Convenience, Brand loyalty and Brand Image have positive impact on Consumer

preferences.

value is used to form regression equation which is:

Consumer preferences = 0.603 + 0.133 (Services) + 0.278 (Convenience) + 0.229 (Brand loyalty)

+ 0.109 (Brand Image)

The t value in table 4.3.1 shows the relative importance of each variable in above model. P value

shows significance of each variable. In above table values of Services, Convenience, Brand

loyalty and Brand Image variable are less than 0.05 which means each variable has significant

effect on Consumer Preferences. VIF value shows the coefficient of multiple co-linearity which

means that the variables are very much connected with each other. When two variables are

highly correlated it means both variable are showing same occurrence and both are showing

same information.

If the value of VIF is greater than 10 there multi co-linearity exists. In above table the VIF value

for all variables are less than 10 it means change in value of any variable does not affect on

values of other variables. Value of adjusted R square in above table shows adequacy of model

with is 0.311 that shows independent variable (Services, Convenience, Brand loyalty and Brand

Image) can predict 31.1% of variance in dependent variable (Consumer preferences)

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5. Conclusion

5.1 Conclusion

The main reason for doing this study is to explore those factors which influence consumer

preferences towards international fast food restaurants. For this purpose we have designed an

easy and understandable research instrument (Likert scale Questionnaire) and filled it from the

consumers of Mcdonalds and hardees, these respondents are from Karachi only. The variables

used in this research are Consumer preferences as dependent variable, and Services,

Convenience, Brand loyalty and Brand Image as independent variables. The sample size in this

research was 235. After the collection of data we have applied different tests. First,

we applied reliability statistic to check the reliability of the data, then applied factor analysis test

to check the value of KMO (Kaiser-Meyer-Olkin), and also checked the items which were

included in the instrument, whether these are in proper form or not and at last we applied

multiple linear regression test and checked that which factors are most effecting Consumer

preferences and after complete analysis we found that Services, Convenience, Brand loyalty and

Brand Image have a significant effect on Consumer preferences.

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5.2 Recommendation

The purpose of this study is to identify those components of International fast foods that impact

on consumer preferences. After conducting the research the result shows Services, Convenience,

Brand loyalty and Brand Image have significant impact towards the product, and convenience is

the most effective variable that influences the consumer preference.

Consumer preferences are varied by individual to individual, it is very hard to say that each and

every person considers only a few set of variables effecting them, so for our research the variable

which we took were just a few of those most common ones otherwise if we included other

variables too the research would have got more broader and time consuming. But still we have

learned a lot from these figures which we have generated and experienced just a glimpse of how

the researchers work and what problems they face while conducting researches.

Following are the points for recommendations with respect to this study.

Convenience is one of the important factors in making the consumer prefer a brand; every

business should focus to make their products conveniently available.

Services should be such that customers are satisfied by providing them best quality service.

Improve the quality of the product.

Brand loyalty is also very important, this is achieved when company provides the features

which are liked by the user, so that they show their commitment towards the products and

will think twice or thrice before switching to any other brand.

Image of brand is very important; company should try to increase the image for product in

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the mind of consumer by promotional activities, advertising, and by different campaigns.

5.3 Future Recommendations

It is recommended that the research should be done in all parts of Pakistan for better

understanding.

It is also recommended that the research should also be done by using different variables

like quality, communication, marketing campaign, price, complaint handling etc.

It is also recommended that the research should also be done in overall fast food industry.

It is also recommended that the research should also be done by using Qualitative

technique.

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