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Ali Thesis Compilation
Ali Thesis Compilation
22 November, 2017
Table of Contents
Abstract: ........................................................................................................................................................ 3
Background: .................................................................................................................................................. 3
Chapter 1 Introduction: ................................................................................................................................. 4
1.1 War of Restaurants:............................................................................................................................. 4
1.2 Services marketing Mix: ..................................................................................................................... 4
1.2.1 Product includes: .......................................................................................................................... 4
1.2.2 Price includes: .............................................................................................................................. 5
1.2.3 Place includes: ............................................................................................................................. 5
1.2.4 Physical evidence: ........................................................................................................................ 5
1.2.5 Process: ........................................................................................................................................ 5
1.2.6 Promotion:.................................................................................................................................... 5
1.3 Advertisements: .................................................................................................................................. 6
1.4 Sales Promotions................................................................................................................................. 6
1.5 Targeted Segment: .............................................................................................................................. 7
1.6 Consumer preference: ......................................................................................................................... 8
1.7 Does brand Loyalty really matter? ...................................................................................................... 8
Chapter 2 Literature review .......................................................................................................................... 9
Change in the consumption pattern with time: ......................................................................................... 9
Sales promotions and consumers preference: ......................................................................................... 10
Consumer preference and marketing strategies: ..................................................................................... 11
Urbanization:........................................................................................................................................... 12
Target of fast food restaurants: ............................................................................................................... 12
Influence of western culture:................................................................................................................... 13
Mobile marketing:................................................................................................................................... 14
Chapter 3 METHODOLOGY ..................................................................................................................... 15
3.1 Research Type:.................................................................................................................................. 15
3.2 Population: ........................................................................................................................................ 15
3.3 Measurement/Instrument Selection: ................................................................................................. 15
3.4 Variables: .......................................................................................................................................... 15
3.5 Theoretical justification: ................................................................................................................... 16
3.6 Research Hypothesis: ........................................................................................................................ 16
3.7 Data analysis tools and techniques: .................................................................................................. 17
Abstract: (This will be written at the end)
Background:
There was a time when people used to spend most of the time in their homes but now to survive
in this world both men and women have to work hard for livelihood. Most of the women in the
urban areas also have to work in offices to support their families, therefore the trend of cooking
at homes have changed with time and people are now more attracted towards the ready cooked
food. Fast food is prepared in very less time and is convenient for most of the people even the
students are becoming regular consumer of fast food as it is easily available in most of the
institutes. It’s becoming a part of everyone’s life and it is time saving for each one of us. Another
reason of consuming fast food is the marketing technique by fast food vendors they have made
fast food available at our door step easily by delivery methods and some of the fast food chains
also provide lunch services for offices. With time it is becoming a life style for the people.
Therefore, the fast food vendors have also changed their techniques of selling and advertising
their products with time. Initially most of the marketing of the products were done through radio
and newspaper advertisements but now days all the marketing techniques are converted into
digital marketing. Fast food chains have a war with each other since the trend started.
Chapter 1 Introduction:
Most of the fast food companies these days are using similar ways to attract customers by
offering similar services. In today’s world the survival of fast food businesses is not very
difficult as the demand of fast food is very high. Most of the restaurants are copying each other
on the basis of their products and services as well. But still the restaurants that introduced
something unique before any other restaurant do have a first mover advantage.
KFC initially introduced a burger which was named as Zinger. And with time many other
restaurants also started the same kind of product. But as KFC was the initial restaurant that
introduced it people trust it the most. Similarly the price of the products is also similar to one
another in different restaurants. The deals that are offered are also similar. Even restaurants try to
be geographically near to one and other to target the customers of other restaurants.
Every business uses the 7 P’s. From starting of a business to its becoming an establish business
all these 7 P’s play an important role. 7 P’s of Services Marketing Mix that includes:
It includes all the design of the product, the technology used to enhance the quality, packaging of
the product and Accessories and Warranties of the products. Fast food restaurants also focus on
the technology, quality, and packaging of their products. For e.g. McDonald’s waste their fries
after few minutes instead of frying it again just to maintain the same taste and quality.
1.2.2 Price includes:
Skimming cost leadership and penetration. It is mostly value based.Fast food restaurants have
to price their products according to their competitors. As most of the restaurants offer similar
Place includes Retail, wholesale, mail order and direct sale. Initially fast food restaurants
were only serving on tables but then they started drive thru facility and later it offered its
customers with home delivery. Now the customers can also order online through internet and
Physical evidence includes facilities, infrastructure and service deliveries. More hygienic food
and environment is the major goal of fast food restaurants or it may be the strategy to attract
more customers. For e.g. McDonald’s offers a tour to their kitchen. Subway prepares the desired
sandwich in front of its customers. Jalal Son’s makes Pizza in front of its customers.
1.2.5 Process:
1.2.6 Promotion:
Promotion includes all the major things that are used by the fast food restaurants to promote their
products and to promote their brands. It includes Special offering, Advertisements, Endorsements,
This is the major part of 7 P’s. Consumer preference is dependent on all the above mentioned
aspects as well.
1.3 Advertisements:
Advertising is basically the way to market any product, brand or service. And it is the key to
success for the businesses that wants to promote their products and wants to create awareness
about their products. Mostly the advertisements are done through audio and visual form.
advertisements and Public service advertisements. But the major types of advertisement that are
used in most of the countries are done through TV commercials, Radio, Billboards, and
newspapers. As all other businesses use advertisements such as groceries, automobiles, banks
etc. fast food is one of the businesses that spends the most to advertise its products according to a
research. US are spending a huge amount on advertising and it was ranked as the largest U.S.
advertisers. McDonlad’s was the fourth largest advertiser and Subway was ranked as the
nineteenth largest advertisers. This shows that fast-food businesses are mainly focusing on
All those strategies used by companies to attract the customer. It is used to persuade the
customer to buy the particular product. It is a short term technique to boost the sales of a
particular product but it ends up making a long term effect that is to have loyal customers. Loyal
customers are the asset for a company, they are the regular customers that don’t peruse and
second option and impulsively buy the particular product. But the major purpose of sales
promotion is also to persuade the customers to switch the brand, even the loyal customers. Sales
promotion is mostly done through contests, coupons, giveaways, prizes, samples and discount
vouchers etc. every company’s sales promotion is initiated by the whole team of the particular
brand.
All the fast food vendors also use advertisements and sales promotions to create awareness about
their product and to make more and better customer relationships. Like all other sectors of
businesses, the fast food companies come among the top to advertise their products. There was a
time when consumption of fast food was considered to be harmful for everyone but with the
advertisements the fast food companies have diverted the concept of people by the availability of
healthy food for the customers. But ultimately all the things that are claimed by the companies
The major target of the fast food companies is youth population. And even the kids are attracted
towards fast food with the help of the toys that are given to the kids with their meals in most of
the fast food restaurants. But the advertisements that are used to attract children are mostly
forbidden in most of the contraries as it is said to be junk food for children. Most of the
restaurants even use celebrities to advertise their products. Similarly sponsoring sports events
also helps the brands to market their products and some of the brands sponsor television
programs to advertise their products. With the improvement in Pakistan Media Industry the
companies of Pakistan food industries also advertise their products in their movies. But at the
end it all depends on the consumer’s preference that what they really value and what they really
care about. Consumers have different choices, tastes, likes and dislikes. If we focus on the target
audience of one of the most popular fast food restaurant that is investing the most in its
clown, Play place, Partnership with Disney, Nintendo play land and Other than that Hardees is
The customers preference of wanting one product/brand over the other. Consumer preference is
something that includes many different stages through which consumer goes and takes the final
decision. Before selecting a product a consumer might focus on Quality of the product, Hygiene
factor, Price, Location, Deals, Discounts, Brand image, Class and Brand loyalty. Similarly fast
food consumer prefers product that has any benefit to them it might be having more products in
fewer prices or excluded service charges etc. consumer preference can be changed and all the
Loyalty matters, but consumer preference does not always depend on the loyalty of customers.
People do change their choices according to their convenience. It all depends on the major need
of the consumer. For e.g. if a person wants to consume pizza and he has two choices he would
rather go the place where he gets some benefit. This is why most of the brands are able to switch
According to Jill J. McCluskey (2015) the food consumption pattern has changed with time and
it would keep on changing as well. The new generation is different from the previous generation
on the basis of choices and preferences. Children from 70’s and 80’s prefer more processed and
fast food. Even the vegetables used by most of the people are from cans that are stored in
freezers. Parents want their children to have healthier food, more organic food but people these
days enjoy exploring different type of food. According to the article the change in consumer
preference depends on the change in demographics. Most of the people in US population are
getting older and they are more concerned about health. They prefer one dish meals more. While
the youth is US are overweight due to the consumption of processed food with very less exercise
in their daily routine. Other than this many people from Asia and Latin have immigrated to
America and they prefer more spicy food with more use of chilies. And according to them food
taste is developed by consuming it repeatedly. The trend of fast food is also increasing due to
fewer traditional families. Women are more into workforce now therefore they don’t have a lot
of time to cook food. Most of the working women have to buy fast food, as it is ready to eat and
it can be served to the families’ as well. Education and income is playing a very important role in
turning people to become a fast food consumer, most of the educated people have a desire of
trying new food. Media also has a great role in transformation of market, cooking shows on
Television and more celebrity chefs have an influence on consumer preference. Consumer
prefers healthier food. Restaurants are using the customization technique to attract customers as
Subway and Starbucks give option to its consumers to select a particular option from a list of
options which is more satisfying for the customers as well. Food for identity is another aspect,
according to this customer consumption preference also depends on the land and climate etc.
Food quality is on the top of the consumer’s mind, which includes food standards and
Consumers are more into food that is healthier, tastier and its quality should be up to the mark.
They are only ready to pay the premium prices if the product has the above mentioned features.
But if the restaurants want to succeed they would have to introduce new products according to
The trend of consumer preference is changing with time and would keep on changing.
According to Hany Hosny Sayed Abdelhamied (2013) sales promotion has an impact on
consumer preference but it is for a very short period of time. Sales promotion basically persuades
the customers to do unplanned purchases. This article mainly tells about the different
promotional tools that restaurants use to increase their sales and to attract more customers. Sales
promotion doesn’t include advertising it mainly depends on personal selling and PR. The major
promotional tools that are used in fast food restaurants includes samples, it’s a free trial used to
attract customers. Promotional tools also include coupons, its major purpose is to increase
buyers saving and in other words increasing the company’s sales. Restaurants use coupons to
make new customers. Premium is another promotional tool which also attracts customers by
giving away something to the customers on purchasing their products. Reducing the price also
helps to increase the sales of the products as the customers have to spend fewer amounts for the
same product which they were spending more before, it automatically helps the customers. Other
than these contests and sweepstakes gives an option to the consumers to win a trip or a gift. The
fast food industry in Egypt is also growing. Most of the famous restaurants such as Pizza Hut and
KFC are opening. Most of the restaurants are offering similar products therefore none of the
restaurant has any edge over other. In increase in the women work force has increased the
concept of ready to eat food. While the youth of Egypt that are influenced by western living style
which is mostly shown in advertisements and TVC have increased the preference for fast food
restaurants. The older generation is also becoming fond of fast food. According to a finding the
people that consume fast food are more educated, younger and they have high income. The
major things that the researcher wanted to find out includes that weather sales promotion
increase the visiting of customers. Secondly is there any impact of sales promotions to the brand
loyal customers. According to the findings the people visiting the restaurants increase when there
is any sales promotion going on. Families visit more when there is a sales promotion.
According to Ripon Kumar Chakrabortty (2013) the human nature wants to be the best therefore
people switch from a particular brand to another. The major thing that a company focuses is the
demand of a particular product because at the end what really matters for the companies is the
profit. Therefore the major challenge that is faced by the companies is to make the best
marketing strategy as the company has to deal with a lot of products at the same time.
Companies have to focus on the right ways of advertisements to reach their customers. At the
same time companies are reallocating their promotional budgets and advertising budgets. Now a
day companies can easily switch the customers mind from one product to another by giving them
some incentives. It is the mentality of the customers that the companies which are offering high
quality for the customers advertise more often as compared to the low quality products.
Urbanization:
According to Horsu Emmanuel Nondzor (2015) the major reason of the growing interest of
people in fast food is the rapid urbanization, as the fast food is convenient, quick to serve and
quit affordable. But at the same times there are some disadvantages of fast food as well that
includes high calories, fat, saturated fat and salt that may cause heart diseases, diabetes and
obesity. The companies also use some kind of preservatives to keep the products fresh therefore
the food has to go through high degree of food engineering as well. According to the study the
students of American colleges considers the value and the amount of food which they get on
spending a particular amount instead of focusing on the nutritional status. While in India the
students are more passionate about visiting fast food restaurants for the sake of fun but they
prefer homemade food more. The people with high income are more into following the western
life style. And their major focus is on the quality, service and cleanliness. But the thing that
matters at the end is the taste and quality of the food. While in Ghana, people are attracted
towards the fast food due to long working hours, advertisements and urbanization as is saves a
lot of time as well. The people who avoid fast food think that fast food is unhealthy.
According to Simone French (2004) the major target of fast food restaurants and beverage
companies is the children. Companies are targeting youth because they know that youth these
days have a purchasing power and they can be their future adult consumers. These food
marketing channels include TVC’s, marketing with in the schools, targeting the kids clubs,
internet, toys and products with brand logos, and youth-targeted promotions, such as cross-
selling. Dietary intake patterns of American children and adolescents are poor and do not meet
national dietary goals. Children and adolescents are eating more food away from home, drinking
more soft drinks, and snacking more frequently. The growing epidemic of childhood overweight
and obesity is a major public health concern. These trends may seriously compromise the future
health and productivity of the US population and add to health care costs. While multiple factors
influence eating behaviors and food choices of youth, one potent force is food advertising.
Today's youth live in a media-saturated environment. During the past decade in the US, use of
public schools as advertising and marketing venues has grown. Reasons for the increase in in-
school marketing to children and adolescents include the desire to increase sales and generate
product loyalty, the ability to reach large numbers of children. Product placement is increasing in
popularity and becoming more acceptable as a standard marketing channel. It typically involves
According to Farzana Quoquab Habib (2011) consumers eat more food outside their home
instead of eating at homes and fast food sectors are the most growing sectors these days. Fast
food businesses are growing rapidly throughout the world as well as in Malaysia. Traditionally,
Malaysians like to have home-cooked meals. Malaysians used to prefer home cooked food
initially but with time and with more awareness Malaysians have also started following the
western culture and a lot of shift in food consumption patterns among Malaysian families can be
seen. As the lifestyle of people is getting busy therefore more interest of people can be seen
towards fast food. Chicken based fast-foods are more preferable among the youth and students.
KFC is preferred the most by Malaysians as it is mostly offering chicken based fast food. Indians
still prefer home cooked food. The major factor that influences the buying behavior of Malay is
to have Halal food. Chinese consumers’ major priority is the food-safety and Indians make their
choices on the basis of freshness of the food. Most of the restaurants that are preferred by the
consumers are near universities and shopping malls which save the time of consumers and they
have easy access to such restaurants. Short distance from the universities also influences the
students of universities to visit and consume the fast food products which are available nearby.
Mobile marketing:
According to Fehim Duzgun (2017) the trend of mobile marketing is also increasing with time as
all the people throughout the world have access to cell phones and it is one the major need of
people. Mobile phones are personalized devices which are important due to its affordability, user
friendly and fast features. Therefore, all the companies easily target the people they want to
target demographically. Smartphones are becoming a way to market the products by the
companies to its customers through SMS promotions. But according to a research SMS
marketing is not a successful way to market the products. Most of the people ignore the
messages which they get as SMS promotions because of spams. Most of consumers do not
Research design is “Quantitative” which would help to find out the impact of “Advertising” which
includes TVC, Billboard and Online Marketing and “Sales Promotion” which includes coupons,
discount vouchers etc. by the fast food restaurant on the choice of consumers. This would be done
3.2 Population:
The participants must belong to upper class so cash won’t become an issue that might impact the
preference of consumer. It would be conducted in few fast food restaurants of Lahore indicated by
Hardees, Jhonny and Jugnu, McDonalds and KFC. Age of the candidates would be around 18- 23.
The major instrument for measuring the research is “Questionnaires”. And a survey would be
conducted which would be concerned with the restaurants employees, the people working in the
particular organization. The survey would be related to the no. of commercials and the no. visitors.
3.4 Variables:
Independent variables:
“Advertising and Sales Promotion”
Dependent variable:
“Consumer Preference”
Advertising
Consumer preference
Sales Promotions
H1.
“There is a positive correlation between the advertising/sales promotions by fast food companies
H2.
H3.
H4.
“By promotion and advertising activities by the fast food vendor the preference of consumer may
Excel Spreadsheet/SPSS
Most of my respondents are youth which are less than 25 years old.
31.7 % prefered McDonalds and 30.5% prefer Hardees. These are one of the top vendors and
have a vast distribution, hence the majority can easily get their hands on these two fast food
chains. The reason behind the respondant choosing McDonalds over other fast food vendors is
that it is quite hygienic and quickly served plus it offers covenient take away options.
Fast food has not really become a need for the consumers. But around 30% respondents said that
it has become a need for them. Most of the respondents just prefer fast food vendors in order to
spend time with their friends and family and not because fast food is a need for them.
Around 59% respondents said sales promotions affect their buying behavior.
When you see a fast food advertisement your immediate reaction is?
Advertisements have the power to persuade the consumers to consume fast food.
34% respondents trust the advertisements they see while 28% don’t.
A company's advertising has the convincing power to make you go to the restaurant?
Most of the respondents think that company’s advertising has the convincing power and it can
effect the consumers preference.
CORRELATION
Correlations
CP4 SP2
Pearson 1 .232*
Correlation
CP4
Sig. (2-tailed) .037
N 81 81
*
Pearson .232 1
Correlation
SP2
Sig. (2-tailed) .037
N 81 82
*. Correlation is significant at the 0.05
level (2-tailed).
The dependent variable of this study is Consumer Preference (CP) and the independent variable
of this study is Sales Promotions (SP). They have a positive correlation which means that when a
food vendor offers sales promotions to their consumers the preference of the consumers to that
particular restaurant increases.
Correlations
CP4 A3
Pearson 1 .357**
Correlation
CP4
Sig. (2-tailed) .001
N 81 81
Pearson .357** 1
Correlation
A3
Sig. (2-tailed) .001
N 81 82
**. Correlation is significant at the 0.01
level (2-tailed).
The dependent variable of this study is Consumer Preference (CP) and the independent variable
of this study is Advertisements (A). They have a positive correlation which means that when a
food vendor advertises its products through any medium that might be TV commercials, Radio
or Social media etc. the preference of the consumers to that particular restaurant increases.
Regression Analysis
Linear Equation:
Y = mx + c
CP4 = 1.414 + 0.445SP2 + 0.467A3
Where:
CP stands for “Consumers Preference”.
SP stands for “Sales Promotions”
A stands for “Advertisements”
Variables Entered/Removeda
Mode Variables Variables Method
l Entered Removed
1 SP2b . Enter
a. Dependent Variable: CP4
b. All requested variables entered.
Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
1 .232a .054 .042 1.10536
a. Predictors: (Constant), SP2
ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 5.501 1 5.501 4.502 .037b
1 Residual 96.524 79 1.222
Total 102.025 80
a. Dependent Variable: CP4
b. Predictors: (Constant), SP2
Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 2.325 .463 5.027 .000
1
SP2 .462 .218 .232 2.122 .037
a. Dependent Variable: CP4
Variables Entered/Removeda
Mode Variables Variables Method
l Entered Removed
b
1 A3 . Enter
a. Dependent Variable: CP4
b. All requested variables entered.
Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
a
1 .357 .128 .116 1.06150
a. Predictors: (Constant), A3
ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 13.009 1 13.009 11.545 .001b
1 Residual 89.016 79 1.127
Total 102.025 80
a. Dependent Variable: CP4
b. Predictors: (Constant), A3
Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 2.312 .306 7.557 .000
1
A3 .474 .139 .357 3.398 .001
a. Dependent Variable: CP4
Conclusion
The aim of the study was to examine the effects of Advertisements and Sales Promotions by fast
food vendors on the preferences of consumers. This study presumed that both advertisements and
Sales Promotions would have a positive influence on consumer’s preference. In line with the
study hypothesis, there is a positive correlation between the advertising/sales promotions by fast
food companies and consumer preference. Social media, TV Commercials, Radios have an
influence on the consumer preference. The choice of consumers will shift from one restaurant to
Most of my respondants consume fast food twice a week as they are youngsters and they prefer
going out with there friends.
31.7 % prefered McDonalds and 30.5% prefer Hardees. These are one of the top vendors and
have a vast distribution, hence the majority can easily get their hands on these two fast food
chains.
Most of the respondents like to eat fast food because they like it as compared to home cooked
food. Fast food is easily available and most of the youth prefer fast food due to their busy daily
routine.
Most of the sales promotions are done by McDonalds which is around 66%.
According to my respondents discounts attracts customers the most. Customers do prefer the
places where they can save up some money. Most of my respondents are youth so money is a
really big factor.
Around 59% respondents said sales promotions affect their buying behavior.
Most of the respondents said that their prefernce depends on the sales promotions. Sales
promotions is the thing through which companies persuade their customers.
Advertisements have the power to persuade the consumers to consume fast food.
34% respondents trust the advertisements they see while 28% don’t.
Most of the respondents think that company’s advertising has the convincing power and it can
effect the consumers preference.