Consumer Perception With Regards To McDonald S

Consumer preference with respect to Quick Service Restaurant (McDonald’s) in Bangalore North
1. INTRODUCTION
Exhibit 1.1 McDonald’s Restaurant at California
McDonalds is a leader in convenient foods and beverages, with revenues of
about $23 billion and over 1.6 million employees serving the customer’s
world wide. The company consists of the snack business of Beverages and
Foods. PepsiCo brands are available in nearly 115 countries having more
than 24,500 restaurants in the world providing 24 hour service. Having
about 1 billon customers to be served all over the world
McDonalds’s success is the result of superior products, high standards of
performance, distinctive competitive strategies and the high integrity of
the people working in McDonald’s. McDonalds is continuing to expand and
introduce new alternative beverages in the market. Approximately 85% of
McDonald’s restaurant businesses world-wide are owned and operated by
franchisees .All franchisees are independent, full-time operators.
McDonald’s was named Entrepreneur’s Number-one franchise for 1997.
RIMS, Bangalore Page 1

The mission of McDonald’s is to be the world's premier Consumer Products
Company focused on convenient foods and beverages. McDonald’s products
are recognized and are most respected all around the globe. Currently, its
divisions operate in all over the world in beverages, snack foods, and
restaurants. The corporations increasing success has been based on high
standards of performance, marketing strategies, competitiveness,
determination, commitment, and the personal and professional integrity
of their people, products and business practices. McDonald’s believes their
success depends upon the quality and value of their products by providing
a safe, whole some, economically efficient and a healthy environment for
their customers; and by providing a fair return to their investors while
maintaining the highest standards of integrity.
1.1 HISTORICAL BACKGROUND OF MCDONALD’S
McDonald’s is one of the leading restaurant chains in the world, touching
the lives of people everyday. The long journey of the burger brand started
in 1940, when two brothers, Dick and Mac McDonald opened the first
McDonald’s restaurant in San Bernardino, California. Initially, they
owned a hotdog stand, but after establishing the restaurant they served
around 25items, which were mostly barbequed. It became a popular and
profitable teen hangout. In 1948, the brothers closed and reopened the
restaurant to sell only hamburgers, milkshakes and French fries.

As per the information of the McDonald’s history, the major revenue
came from hamburgers, which were sold at a nominal price of 15 cents.
The restaurant gradually became famous and the McDonald brothers
begin franchising their restaurant in the year 1953. The first franchise
was taken by Neil Fox and under it; the second Mc Donald’s restaurant
was opened in Fresno, California. It was the first to introduce the Golden
Arch design. The third and fourth restaurants were opened in Saginaw,
Michigan and Downey, California, respectively.
The business began in 1940, with a restaurant opened by siblings Dick
and Mac McDonald in San Bernardino, California. Their introduction of
the "Speedee Service System" in1948 established the principles of the
modern fast-food restaurant. The original mascot of McDonald's was a
man with a chef's hat on top of a hamburger shaped head whose name
was “Speedee”. Speedee was eventually replaced with Ronald McDonald
in 1963.
The present corporation dates its founding to the opening of a franchised
restaurant by Ray Kroc, in Des Plaines, Illinois on April 15, 1955, the
ninth McDonald’s restaurant overall. Kroc later purchased the McDonald
brother’s equity in the company and led its world wide expansion and
the company became listed on the public stock markets in 1965. Kroc
was also noted for aggressive business practices, compelling the
McDonald brother have to leave the fast food industry. The McDonald’s

Brothers and Kroc feuded over control of the business, as documented
in both Kroc’s autobiography and in the McDonald brother’s
autobiography. The site of the McDonald brother’s original restaurant is
now a monument.
With the expansion of McDonald’s into many international markets, the
company has become a symbol of globalization and the spread of the
American way of life. Its prominence has also made it a frequent topic
of public debates about obesity, corporate ethics and consumer
responsibility.
1.2 Timeline
1955 – Ray Kroc opens his first restaurant in Des Plaines, Illinois and
the McDonald’s Corporation is created.
1957 – Quality, Service, Cleanliness and Value (QSC&V) becomes the
company motto.
1959 – The 100th McDonalds open in Chicago.
1961 - Hamburger University opens in Elk Grove, near Chicago.
1963 – One Billion hamburgers sold. Ronald Mc Donald makes his debut.
1964 – Filet - O- Fish sandwich is introduced.
1965 – Mc Donald’s Cooperation goes public.
1967 – The first restaurant outside of the USA open in Canada and
Puerto Rico.

1968 – The Big Mac is introduced. The 1000th restaurant opens in Des
Plaines, Illinois.
1972 – A new Mc Donald’s restaurants open every day. The quarter
Pounder is introduced.
1973 – Egg Mc Muffin is introduced.
1974 – The first Ronald Mc Donald House opens in Philadelphia. The
Happy Meal is launched.
1983 - Chicken Mc Nuggets is introduced. 50 billionth hamburgers sold.
1984 – Ronald MC Donald children’s charities is founded in Ray Kroc’s
memory to raise funds in support of child welfare.
1989 – McDonald’s is listed on the Frankfurt, Munich, Paris and Tokyo
stock exchanges.
1990 – Mc Donald’s open in Pushkin Square and Gorky Streets Moscow.
1993 – The fist Mc Donald’s at sea opens abroad the Silja Europe, the
world’s largest ferry sailing between Stockholm and Helsinki,
1994 – Restaurants open in Bahrain, Bulgaria, Egypt, Kuwait, Latvia,
Oman, New Caledonia, Toinidad and United Arab Emirates,
bringing the total to over 15,000 in 79 countries.
1996 – Mc Donald’s opens in India – the 95th country.
The first McDonald's restaurant opened on Oct. 13, at Basant
Lok, Vasant Vihar, New Delhi. It was also the first McDonald's
restaurant in the world not serving beef.

1997 - The first Drive - Thru restaurant at Noida (UP). The first
disabled friendly store at Noida (UP)
1999 - The first Mall location restaurant at Ansal Plaza (New Delhi)
2000 - The first highway restaurant at Mathura (UP)
2001 - The first thematic restaurant at Connaught Place (New Delhi)
2002 - The first restaurant in a food court at 3C's, Lajpat Nagar (New
Delhi). The first restaurant at the Delhi Metro Station at Inter State Bus
Terminus. The first annual fund raiser in association with ORBIS and
Dr.Shroff's Charity Eye Hospital.(Delhi)
2003 - The first Dessert Kiosk - Faridabad (Haryana)
2003-04 - Indigenous products like McAloo Tikki, McVeggie and Pizza
McPuff exported to Middle East countries.
2004 - McDonald's Delivery Service (McDeliveryTM) introduced in New
Delhi.
2006 - McDelivery on Bicycles flagged off at Chandni Chowk (Delhi)-
another first initiative by McDonald's India100th McDonald's
Restaurant in India10 Year Anniversary.

2007 - The first Restaurant opened in the Eastern Region at Park
Street,Kolkata (West Bengal)The first Restaurant opened at
Airport.(Domestic Airport, NewDelhi.
Exhibit 1.2 Ray Kroc (Founder)
2.COMPANY OVERVIEW
Headquarters
The McDonald's headquarters complex, McDonald's Plaza, is located in Oak
Brook, Illinois. It sits on the site of the former headquarters and stabling
area of Paul Butler, the founder of Oak Brook.[10] McDonald's moved into
the Oak Brook facility from an office within the Chicago Loop in 1971.
Founder(s)

Richard and Maurice McDonald, McDonald's restaurant concept;Ray Kroc,
McDonald's Corporation founder.
Key People
Andrew J. McKenna (Chairman)
Don Thompson (President and CEO)
Exhibit 1.3 McDonald’s Plaza, Oak Brook, Illinois
3. MCDONALD’S INDIA AT A GLANCE
The golden arches of McDonald’s are slowly becoming an integral part of
the Indian landscapes. Everyone knows McDonald’s is big, but very few
know just how significant its impact on Indian business really is.
 Grand Opening; McDonald’s opened its doors in India, the 95th
country;in 1996 and was the first country to serve non-beef and
non-pork items. Its authority on non-beef and non-pork products
still remains unchallenged. Ever since then, the family restaurants in

Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur,
Noida Faridabad, Doraha, Manesar and Gurgaon have proceeded to
demonstrate, much to the delight of all the customers, what the
McDonald's experience is all about.
 Ownership; McDonald’s India is locally owned company managed by
Indians in a 50-50 joint venture partnership between McDonald’s
Corporation[USA] and two Indians businessmen.
- Connaught Plaza Restaurants Pvt. Ltd in Northern and
Eastern Region (Headquartered in New Delhi) through a joint
venture; now managed by its Board of Directors.
- Smita Jatia, under Hardcastle Restaurants Pvt. Ltd in the
Western and Southern Region (Headquartered in Mumbai)
which is a DL (Development License)
 McDonald’s Philosophy; McDonald’s philosophy of QSCV (Quality,
Service, Cleanliness and Value) is the guiding force behind its service
to the customers in India.
 Today; Celebrating over 15 years of leadership in food service
retailing in India, McDonald's India now has a network of over 250
restaurants across the country. McDonald's India is a leader in the
food retail space, with a presence of more than 250 restaurants
serving more than 6.5 lakh customers daily in India.

 Every McDonald’s burger has nine different ingredients, which are
sourced, from 35 suppliers across the country before it reaches the
consumer.
3.1 McDonald’s India….Culturally Sensitive
McDonald’s worldwide is well known for the high degree of respect for the
local customs and culture. McDonald’s has developed a menu especially for
India with vegetarian selections to suit Indian tastes and preferences.
Keeping in line with this, McDonald's does not offer any beef or pork items
in India. In the last decade it has introduced some vegetarian and non-
vegetarian products with local flavours that have appealed to the Indian
palate. There have been continuous efforts to enhance variety in the menu
by developing more such products.
McDonald's has also re-engineered its operations repeatedly in its11 years
in India to address the special requirements of a vegetarian menu.
Vegetable products are 100% vegetarian, i.e.
 They are prepared separately, using dedicated equipment and
utensils.
 Only pure vegetarian oil is used as a cooking medium.
 Cheese and sauces are completely vegetarian and egg less.

 Separation of vegetarian and non-vegetarian food products is
maintained throughout the various stages of procurement,
cooking and serving.
3.2 International Standards
McDonald's India's local suppliers provide them with the highest quality,
freshest ingredients. Complete adherence to the Indian Government
regulations on food, health and hygiene is ensured, while maintaining their
own recognized international standards. Fast, friendly service - the
hallmark of McDonald's restaurants the world over is the mantra we abide
them.
Stringent cleaning standards ensure that all tables, chairs, highchairs and
trays are sanitised several times each hour. Such meticulous attention to
cleanliness extends beyond the lobby and kitchen to even the pavement
and immediate areas outside the restaurant.
3.3 McD Philosophy
"We take the burger business more seriously than anyone else." When
McDonald's founder, Ray Kroc made that memorable statement, he was
letting the world in on the philosophy and secret behind McDonald's
phenomenal success.

Their vision to be India’s "best" quick service restaurant experience is
supported by a set of principles and core values.
3.4 Bangalore North
 In Bangalore north it serves in 8 places; New BEL Road, HSR Layout,
Orion Mall (Yeshwanthpur), Tumkur Road (Peenya Industries),
Esteem Mall (Hebbal), HRBR Layout (Kamannahalli), Banaswadi,
New Airport Road.
 McDonald’s is a chain of Fast Food Restaurants and has about 39
outlets in Bangalore. It is primarily known for its dishes like Masala
Grill Veg Meal, Masala Grill Chicken Meal etc. Apart from Fast Food
cuisine, it also offers other cuisines such as American and Desserts.
 The items that they sell in Bangalore North;
- McSpicy Chicken - Big Spicy Chicken wrap
- McSpicy Paneer - McChicken
- Fliet-O-Fish - Chicken Maharaja Mac
- McVeggie - Big Spicy Paneer Wrap
- Masala Grill Chicken - Masala Grill Veg
- Chicken McGrill - McAloo Tikki
- McEgg - Chicken McNuggets

- Crispy Veggie Pops - Crispy Chicken Pops
- French Fries - Piri Piri Mix
- Desserts - Coke
• Soft Serve
• Chocolate Brownie
• Mc Flurry
• Mc Shakes
• Coke Floats
 As McDonald’s is giving a tough competition to the restaurants
present. Total of 1100 restaurants are present in North Bangalore
out of which; Delivery – 602, Dine-Out – 981, Night life – 17 and
Café – 61.
 Mostly in nort Bangalore the cuisines offered are; Hyderabadi
Biryani, Chicken Ghee Roast with Neer dosa, Mutton Biryani.
3.5 McDonald’s Products







Exhibit 3.1 McDonald’s Products
4. MCDONALDS MISSION AND VISION
4.1 McDonald’s Vision
McDonald's vision is to be the world's best quick service restaurant
experience. Being the best means providing outstanding quality, service,
cleanliness and value, so that they make every customer in every

restaurant smile. To achieve their vision, they are focused on three
worldwide strategies:
1-Be the Best Employer:
Be the best employer for their people in each community around the world.
2-Deliver Operational Excellence:
Deliver operational excellence to their customers in each of their
restaurants.
3-Achieve Enduring Profitable Growth:
Achieve enduring profitable growth by expanding the brand and leveraging
the strengths of McDonald's system through innovation and technology.
4.2 McDonald’s Mission Statement
“McDonald's brand mission is to be our customers' favourite place and way
to eat and drink. Our worldwide operations are aligned around a global
strategy called the Plan to Win, which centre on an exceptional customer
experience – People, Products, Place, Price and Promotion. We are
committed to continuously improving our operations and enhancing our
customers' experience”

4.3 Objectives
“We are the world’s favorite restaurant because we give

customers what they want — great food and great
experience.”
McDonald's objective is to attain QSCV at all of its restaurants, where:
· Q is Quality
· S is Service
· C is Cleanliness
· V is Value
Quality
Quality standards regarding each and every aspect of food and service are
documented, to provide consistency and to achieve the high level of quality
at all the McDonald's restaurants. It is due to documentation that a
consumer will get the same taste from a McDonald's whether he is in New
York or Moscow or in India.
The raw materials acquired are required to pass a stringent specification
test about factors from the freshness to vitamins contained in them. Then
there is documented recipe and cooking requirement regarding utensils to
temperature.
Service
At McDonald's everyone serves quickly with a smile. There is less than a
minute the time the customer orders and the food served to him. If

somebody has any problem, it must be sorted before coming to the counter.
It is the McDonald's culture that the customer is doing them a favour by
being there and not the staff so he should be received and returned this
feeling the same way.
Cleanliness
McDonald's is cleanliness fanatic. There is even a joke that explains
McDonald's philosophy that, “If there is the time to lean then there is time
to clean.”
The restaurant is thoroughly cleaned and sanitized after the closure, the
cooking utensils are disassembled every night for washing and then
reassembled, and the floors, washrooms, etc. are cleaned every half hourly
during the restaurant timing.
Value
McDonald's has an open-door culture; any employee can go to the
Restaurant Manager and can discuss any problem or new ideas for the
improvement of the restaurant. Nobody has any hang-ups; everybody does
everything.

McDonald's also believes in value to the customer, that is, why prices are
value oriented as Amin Mohammad Lakhani put it in his word; “… nothing
sells forever unless it is value for money.”
4.4 McDonald’s Services
 It maintains Cost Leadership, i.e the firm provides the same or
similar services or products as other firms but does so at a lower
price.
 It provides superior products at a similar cost to other firm’s
inferior products.
 Customization of items.
 Quick service facility
 Same taste throughout.
 It provides meals specially for kids
 Hangout with friends, but keep it affordable
5. LITERATURE REVIEW
A review of literature involves a systematic identification, location,
scrutinizing and summary of written materials, containing information on
research problems. According to Polit and Beck a review of literature is a
written summary of existing knowledge on a research problem. In depth

study of any subject involves a systematic review and appraisal of all the
relevant scholarly literature and a specific topic. Literature related to the
consumer preference with respect to Quick Service Restaurants with special
reference to McDonald’s are presented under the following categories.
 Literature and studies related to the consumption of fast food in
India.
 Literature and Studies related to the lifestyle of people in India.
 Literature and studies related to the preference of consumers.
Food diversity in India is an implicit characteristic of India’s diversified
culture consisting of different regions and states within. Traditionally,
Indians like to have home-cooked meals – a concept supported religiously
as well as individually. However, with times due to increasing awareness
and influence of western culture, there is a slight shift in food consumption
patterns among urban Indian families. It started with eating outside and
moved on to accepting a wide variety of delicacies from world-over.
Liberalization of the Indian economy in the early 1990s and the subsequent
entry of new players set a significant change in lifestyles and the food
tastes of Indians. Fast food is one which gained acceptance of Indian palate
after the multinational fast food players adapted the basic Indian food
requirements viz. vegetarian meals and selected non-vegetarian options
excluding beef and pork totally from their menu. Multinational fast food

outlets initially faced protests and non-acceptance from Indian consumers.
This was due to primary perception that these fast food players serve only
chicken and do not serve vegetarian meals. In addition, fast food is
perceived expensive besides being out-of-way meals in Indian culture.
Today, fast food industry is getting adapted to Indian food requirements
and is growing in India. It is gaining acceptance primarily from Indian
youth and younger generations and is becoming part of life. Keeping in
view the Indian habits and changing preferences towards food
consumption, this study has its focus to understand the factors affecting
the perception of Indian youth, in the age group of 20-30 years, towards
consumption of fast food as well as towards making choice of fast food
outlets.
Often you just think about fast food, and you would start salivating, this
show how big impact the media mass influence our mind regarding the
deliciousness of fast food. Everyone including adolescences seems to be
enjoying it every chance they get. Fast foods are very appealing because
they are widely available and inexpensive. The usefulness of fast food
consumption and convenience of this phenomenon had made people
becoming depended on its function without realizing the possible effect or
dangerous that it could affect human health, financial and also lifestyle in
daily life.

In our research, one of major question that need to investigate is
related to factors that influences customers to consume fast food. There
are few factors that may influence factor to consume fast food such as
based on the emotional, economic, time management and lifestyle. By
using previously research, some factors may determine and be as
parameter to conduct other our research.
On one hand, Herman and Polivy, (1984) contradicts/protests and
emphasizes that the factor that influence of fast food consumption based
on residential areas. He observed that people who stay at the rural areas
are less consumed of fast food rather than people who stay at urban area
because urban/town residential areas are nearer by the fast food
restaurants. On the other hand, Drewnowski and Spectre, (2000)contends
that another factor that may influence consumption of fast food is by
socioeconomic status. There have totally difference between people who
have high wages with people who is have low wages in their life. Usually
people who have low economic status, they more prefer to choose food that
something not has high nutrition, but more reasonable and inexpensive
price while wealthy person they prefer to choose branded restaurants
rather than realized the ingredients and nutrients contain in the food.
Schlosser E. (2001) pointed out the most frequently reported
reasons for eating at fast-food restaurants were fast food is quick serve.

Laroche and Parsa (2000) agree with the Schlosser E and say that people
decide to choose fast food restaurant because they were worried about
time. To prepare homemade food, it may take much of time to cook and
serve it compared with taking fast food. Fast food restaurant include a
wide range of quick and fast service, brands and take only short period to
serve it. Consumer make their choice of brands in multi brand situation is
one of least understood yet important phenomenon in the marketing of
Quick Service Restaurant - Fast Food Restaurant. French SA et al. (2001)
summarizes this by saying some people have other reason why they choose
fast food restaurant as their primary chosen to eat, because it is way to
them spent their time with family, friend or someone special. By along
with eating at fast food restaurant because they are quick and easy to get
to, and also as a way of socializing with friends and family.
The liberalisation and globalisation of the industries backed by the
government in 1991 was also one of the reasons for the development of
the fast food industry as number of international retailers entered the
market thereafter. The major international players including Kentucky
Fried Chicken, McDonalds, Pizza Hit, Dominos’ entered the Indian market
in the last decade. Kumar and Basu (2008) stated that during evolution
in the presence of overseas companies in the market, the domestic players
too changed their business strategies in terms of offering new menus at

revised prices and many other service including entertainment, change in
store formats, opening of stores at a number of locations and moreover
providing food and services with the influence of western culture.
The Indian fast food habits and the customer perception towards fast
food has noticed gradual shift in the recent years as the significant portion
of the population spent more money on eating fast food from the domestic
and international retailers in the market. The sector was once unnoticed
and merely had any existence in the food and hospitality industry but
recent findings suggested that there is huge potential in the sector as the
growth rate was recorded above 30% in the recent years (Ali et al. 2010).
5.1 LITERATURE AND STUDIES RELATED TO THE
CONSUMPTION OF FAST FOOD IN INDIA
Fast food
From onion rings to double cheeseburgers, fast food is one of the world’s
fastest growing food types. Fast foods are quick, reasonably priced, and
readily available alternatives to home cooked food. While convenient and
economical for a busy lifestyle, fast foods are typically high in calories, fat,
saturated fat, sugar, and salt[1]. Many other definitions are proposed for
fast foods in the literature. A few of these are mentioned below:

. Definition 1. Fast food have been defined by Bender and Bender (1995)
as a “general term used for a limited menu of foods that lend themselves
to production-line techniques; suppliers tend to specialize in products such
as hamburgers, pizzas, chicken, or sandwiches”.
. Definition 2. In Data Monitor’s (2005) survey the fast food market is
defined as the sale of food and drinks for immediate consumption either
on the premises or in designated eating areas shared with other foodservice
operators, or for consumption elsewhere.
.Definition 3[2]. As per “the free dictionary” fast food is “inexpensive
food, such as hamburgers and fried chicken, prepared and served quickly”.
. Definition 4[3]. According to Merriam-Webster online dictionary fast
food is “designed for ready availability, use, or consumption and with little
consideration given to quality or significance”.
Fast food is a very fast growing industry in world as well as in India
especially in urban areas (small and large cities). However, not much
research literature is available on fast food preferences of consumers’
especially young consumers in India. This article that is based on an
exploratory study is an effort to fill that gap in the literature in the context
of North India

Fast food also known as Quick Service Restaurant or QSR is the term given
to food that can be prepared and served very quickly. While any meal with
low preparation time can be considered to be fast food, typically the term
refers to food sold in a restaurant or store with preheated or precooked
ingredients, and served to the customer in a packaged form for take-
out/take-away.
The term “fast food” was recognized in a dictionary by Merriam-
Webster in 1951. Outlets may be stands or kiosks, which may provide no
shelter or seating, or fast food restaurants also known as quick service
restaurants. Franchise operations which are part of restaurant chains have
standardized foodstuffs shipped to each restaurant from central locations.
Restaurants with much higher sit-in ratios, where customers tend to sit
and have their orders brought to them in a seemingly more upscale
atmosphere may be known in some areas as fast casual restaurants.
Today world is very fast paced and is getting even faster by the
minute. Fast-food nutrition makes it possible to keep up with this speed-
of-sound lifestyle. A lot of people lead busy lifestyles. The main function is
to give fast food is to give someone a quick and easy fix or alternative to
cooking at home when they are need of something to eat in a hurry.
Another function of fast food is to give people a good bang for their buck.
It is rather inexpensive and portions are more than sufficient.

A study on Socio-cultural and Nutritional Aspects of Fast Food
Consumption among Teenagers and Youth was conducted during March to
June 2003 in Allahabad City of Uttar Pradesh, India. Samples from four
restaurants were selected by stratified random sampling technique. Within
each selected restaurant a sample of minimum 30 fast food consumers
aged 15-25 years was selected by systematic sampling technique on a
randomly selected day that was not a special occasion such as fast or
festival. The researcher concluded that majority of fast food consumers
(68.3%) belonged to age group of 18-21 years. 30% of Adults are less
conscious about their health. Majority 80% of adults like to have a fast food
in their areas where they live.
5.2 LITERATURE AND STUDIES RELATED TO THE LIFESTYLE
OF PEOPLE IN INDIA
With today’s hectic lifestyles, timesaving products are increasingly in
demand. Perhaps one of the most obvious examples is fast food. The rate
of growth in consumer expenditures on fast food has led most other
segments of the food-away-from home market for much of the last two
decades. Since 1982, there is growth rate in consumer spending at fast
food.

Now people want quick and convenient meals, they do not want to
spend a lot of time preparing meals, travelling to pick up meals or waiting
for meals in restaurants. That result, consumers rely on fast food. Knowing
this fast food providers are coming up with new ways to market their
products that save time for consumers. The rapid rate at which the fast
food industry continues to add outlets is as much a reflection of consumer
demand for convenience as it is a reflection of demand for fast food itself.
Expanding the number of outlets increases accessibility, thus making it
more convenient for consumers to purchase fast food. Rising incomes,
longer workdays, and a growing tendency for both spouses to hold full-
time jobs are widely credited. This trend rise in a way from home
expenditures to fast food especially benefits from these trends. The fast
food industry focuses heavily on rapid consumer turnover, speed of service,
and take-out sales. Most fast food chains emphasize convenience and low
prices by offering a narrow range of menu items. In the fast food industry,
the critical success factors are: Location, Menu, Price, Ambience, Taste,
Quality, and Service.
The food intake of the people of any country is related to a number
of factors like income of consumers, employment status, educational level
and cultural differences (Dowler, 2001). Due to global change the lifestyles
of people change gradually, they spend more money on fast food rather

than spending on higher education, computers, books, magazines,
newspapers, videos and recorded music (Schlosser, 1998). Fast foods have
been defined by Bender and Bender (1995) as “Fast food is broad term
used for a restricted menu of food that lend themselves to production
techniques, suppliers tend to specialize such as hamburger, pizza, chicken
and sandwiches”. Definition of the fast food in a book by Lundberg is “Fast
food means quick service- the food already prepared and held limited
menu items and no table service” (Lundberg, 1984). The sheer size of the
fast food enterprise guarantees that it has a considerable influence on the
eating habits of large segments of the population.
The use of technology has increased the growth of the fast food
industry, as McDonald’s has increased their budget for the TV
advertisements, and as result led to increase in the sale (Harris, Schwartz
et al. 2010). Poultry meat (One of the key ingredients used in the fast
food industry) quality assurance is the very key and primary issue for the
fast food industry. Fast food has a large social effect on the life of the
people; it is found to be the one of the most important factor in the
increasing obesity rate in the young generation (Bowman, Gortmaker et
al. 2004). Due to the advancement in the technology the fast food is now
available at more convenient places and at the more convenient price. The

industry is increasing at a rapid rate; it is also producing consequent
impact on the social, political, economical aspects of the life.
5.3 LITERATURE AND STUDIES RELATED TO THE
PREFERENCE OF CONSUMERS
An exploratory study on Consumer perception about fast food in Bangalore
in India was conducted. The study was to estimate importance of various
factors affecting the choice of fast food outlets by Indian young consumers.
The study applied multivariate statistical tools to estimate importance of
various factors affecting the choice of fast food outlets by Indian young
consumers. Results indicated that the young India consumer has passion
for visiting fast food outlets for fun and change; they have the highest value
for taste and including quality nutritional values followed by ambience and
hygiene.
In today’s world of competitive offerings, diversity of consumer
preferences and proliferation of brands, consumer behaviour has become
extremely important for marketing decisions, be it marketing mix
elements, segmentation changes or exploring new dimensions in consumer
behaviour in a changing environment.1
1
S.Ramesh Kumar, Consumer Behavior and Branding

It is expected that consumer preferences are formed towards certain
brands early in childhood and result in adult loyalty. This is especially
relevant in a market scenario like that of the Indian Market where there
were only few brands before the markets were opened up for competition
about fifteen years ago.
McDonald as a brand named after their founders have succeeded even
though they did not hold out a benefit. Salient attributes in a product
category are recalled better. Hence marketers need to research on them
for a given target segment for consumers. This depend on the goal of
consumers have while choosing a product service. McDonald, the world
over, is associated with fast food, good value, convenience and hygiene.
McDonalds decided not to use Ronald McDonald in its advertisements
for the West Asian market because it failed religious consumers may avoid
the trendy and zany model
Differences across cultures have a number of implications for the
marketer. McDonald, in India, does not use beef in some of the popular
items on its menu as cows are sacred to a large section of Indian consumers.
From foods and cosmetics to durable products like automobile and
watches, consumers employ emblems to reflect their social status to infer
the status of others. Fast food and trendy restaurants like McDonald, Pizza
Hut are associated with the young and the fashionable.

Involvement in work: Contemporary consumers now break away
from traditional work practices and are involved in high-tension, fast-
paced jobs. The experience time pressure and hence prefer time-
compression or convenience products. A variety of retail outlets across
product categories have emerged in the context, fast food restaurants like
McDonald in petrol bunks are one of the example.2
Another aspect to consider is the various dimensions that a specific
consumer segment might be interested in, when it comes to a retail outlet.
There may be few situations in which the retail outlet may cater to a broad
segment. This happens when an outlet, as a brand, appeals to a big
segment. A typical example is of McDonald outlets all over the world.
McDonald is known all over the world for its VALUE, CLEANLINESS,
CONSISYTENCY and CONVENIENCE. These expectations have been built
over a period of time, and hence, it draws consumers from all income, age
and life style groups. The brand, even today offers a variety, which appeals
to distinctive segments.
There may also be psychological factors like trust, peace of mind,
reassurance and risk reduction, which may have a pronounced impact on
brand loyalty. The consistency associated with the benefits of repeat
purchase may also be contributed to psychological factors associated with
2
S. Ramesh Kumar, Consumer Behavior and Branding

the loyalty. A consumer who consistently gets good food and positive
experience at a McDonald’s outlet becomes loyal to the brand and may
patronise the brand in several countries.
5.4 FACTORS INFLUENCING CONSUMER BEHAVIOUR
Consumer behaviour is the study of how individuals, groups and
organizations select, buy, use and dispose of goods, services, ideas, or
experiences to satisfy their needs and wants.3
A consumer’s buying behaviour is influenced by cultural, social and personal
factors. Cultural factors exert the broadest and deepest influence
3
Kotler, Keller,Koshi and Jha, Marketing Management

Exhibit 5.1 Factors Influencing Consumer Behaviour
While making a decision to visit McDonald’s all these factors play an
important role and influences their decision making.
a) CULTURE
Culture, subculture and social class are particularly important
influences on consumer buying behaviour. Culture is the fundamental
determinant of a person’s wants and behaviour. The growing child
acquires a set of values, perceptions, preferences and behaviours
through his or her family and other key institutions. A person
residing in United States would not hesitate in eating beef and pork
burgers offered by McDonald’s but a person in India would not prefer

eating beef and pork products because that’s against their cultural
values.
Each culture consists of smaller subcultures that provide more specific
identification and socialization for their members. Subcultures
include nationalities, religions, racial groups and geographical
regions.
Social classes are relatively homogeneous and enduring divisions in a
society, which are hierarchically ordered and whose members share
similar values, interests and behaviours.4
b) SOCIAL FACTORS
A person’s reference groups are all the groups that have a direct
(face-to-face) or indirect influence on their attitude and behaviour.
Some of these are primary groups with whom the person interacts
fairly continuously and informally, such as friends, family, neighbours
and co-workers and secondary groups such as religious, professional
and trade union groups which tend to be more formal.
Family is the most important consumer buying organization in
society, and family members constitute the most influential primary
reference group. Family can be sub-divided into two parts- The
Family Of Orientation consist of parents and siblings from whom a
person acquires an orientation towards religion, economics and sense
4

of personal ambition, self-worth and love. A more direct influence
on everyday buying behaviour is the Family of Procreation- namely
one’s spouse and children.
c) PERSONAL FACTORS
A buyer’s decisions are also influenced by personal characteristic.
Age and stage in the life cycle People buy different goods and services
over a lifetime. Taste in food, clothes, furniture and recreation is
often age related. For instance, youngsters mostly prefer going to
McDonalds because of their eating habits. 5
Occupation and Economic Circumstances Occupation also influences
consumption patterns. Product choice is greatly affected by economic
circumstances: spendable income (level, stability and time pattern)
savings and assets (including the percentage that is liquid), debts,
borrowing power, and attitudes toward spending and saving.
Personality and Self-Concept Each person has personality
characteristics that influence his or her buying behaviour. Personality
means a set of distinguishing human psychological traits that leads
to relatively consistent and enduring responses to environmental
stimuli (including buying behaviour). it is often described in terms of
traits as self-confidence, dominance, autonomy, deference,
sociability, defensiveness and adaptability.
5

Lifestyle and Values People from the same subculture, social class and
occupation may lead different lifestyles.
A lifestyle is a person’s pattern of living in the world as expressed in
activities, interests and opinions. it portrays a “whole person”
interacting with his environment.
d) PSYCHOLOGICAL FACTORS
Perception is the process by which we select, organize and interpret
information inputs to create a meaningful picture of the world. In
marketing, perceptions are more important than the reality, as it is
perceptions that will affect consumer’s actual behaviour. People can
emerge with different perceptions of the same object.
Learning includes changes in our behaviour arising from experience.
Most human behaviour is learned, although much learning is
incidental. Learning theorists believe that learning is produced
through the interplay of drives, stimuli, cues, responses and
reinforcements.
Memory All the information and experiences we encounter as we go
through life can end up in our long- term memory. Cognitive
psychologists distinguish among Short-term memory- a temporary

and limited repository of information and Long-term memory- a
more permanent, essentially unlimited repository. 6
5.5 MCDONALD’S PRICING REMINISCES MEMORY
Marketers sometimes use nostalgia to drive a point. In a price sensitive
market like India, McDonalds has been focusing on the price point very
aggressively. One of the platforms through which it emphasizes the price
point is the throwback days of reduced prices. The range of products it
offers like, Burgers, Ice-cream, Drinks, McPuff, etc. all at the rupees 20
price point. This reinforced through the series of advertisements,
commercials and in-store publicity that the company deploys to highlight
the price platform.
A popular television commercial of a retired army officer who visits a
McDonald store and after listening to the prices of the burger; he is quickly
transformed to his active days and starts giving orders as if on a battle
field. He also takes out a photograph of his heydays when in the service
and the caption, “Ho Gayi Purani Yaadein Tazaa”, typifies the days of the
lower prices. In fact, what is even more synchronic about the series are the
6

link they finally establish to the global positioning of the brand, “I’m Lovin’
It”.
The McDonalds Happy Price Menu is also a part of their global plank, with
an adaptation in the communication. The series also has other such related
situations where yesteryears film stars are also showcased in their popular
characters (like a Dilip Kumar look alike in the garb of Salim) to highlight
the platform of “Ho Gayi Purani Yaadein Tazaa”.
The campaign has been successful in creating appeal in the urban youth in
the age group of 18-25 years. For the years it has a separate set of
communication promoting merchandise and toys, which is run separately.
In essence therefore the plank works successfully with the bisection of
consumers, who perceive McDonalds to be expensive and on the other hand
the youths in schools and colleges, eating out, can explore McDonalds as an
option.
What’s driving the popularity of nostalgia marketing? Consumers in today’s
fast paced, information-intensive age are feeling overwhelmed by the new
and unfamiliar, which leaves them more receptive to familiar products,
songs and images. Reminders of familiar offerings can also enhance brand
awareness and brand knowledge because consumers already have a rich
storehouse of personal experiences associated with these offerings in
memory. Many of these memories reflect a quieter, more peaceful time.

Hearing the name of an old product, seeing an old ad, or hearing an old
jingle reminds consumers of their positive feelings about this earlier time
and generates positive attitudes towards both the ad and the advertised
brand. 7
Exhibit 5.2
McDonald’s uses price points to push their products. The low pricing is a metaphor to the
golden days, when prices of all products were very low and a discerning customer is forced
to take a walk back on memory lane.
5.6 MCDONALDS INDIA: I AM LOVING IT
On McDonalds launch in India during 1996 it’s North Zone Managing
Director, Vikram Bakshi quoted on being asked whether the menu will be
7
Hoyer, Maclnnis & Dasgupta, Consumer Behaviour

altered to suit the Indian palette: “We will surely take into consideration
the Indian requirements and the variety of vegetarian dishes will be part
of our regular course”. Circa 2006 and according to Vikram Bakshi, it was
necessary to adapt the company’s offerings while keeping the core brand
values consistent across cultures. “The menu has evolved over the
years as a result of constant innovation and our customer’s needs”, says
Bakshi. “Local creations like McAloo Tikki Burger, Curry Pans, Wraps Pizza,
McPuff, and McVeggie are established departures from what we had in our
introductory restaurant offerings”. Today 70% of our menu is ‘Indianised’,
and the McAloo Tikki Burger is our highest selling product. While the menu
maybe different in some ways, the McDonalds experience around the world
is consistent, offering quality, great service, cleanliness and value.
The complete reversal of statement is not what Bakshi would have really
thought when McDonalds launched in India. The brand and the products
were familiar to most Indians but the platter it offered had to suit the
Indian taste. India is the world’s vegetarian’s paradise. Nearly all of the 1
billion people living here eat meat only occasionally, or not at all. Beef
never shows up on the menu. India is a home to Hindu religion, which
preaches non violence. Believers fear the karmic consequences of harming
other creatures. McDonalds is the only chain in India, which does not serve

beef and pork. Most menus are vegetarian and there are a few, which have
been developed suiting the Indian taste and palette.
The US based fast food giant, McDonald’s success in India had been built
on 4 pillars: Limited menu, Fresh food, Fast service and Affordable price.
Intense competition and demand for a wider menu drive-through and sit-
down meals encouraged the fast food giants to customize product variety
without hampering the efficacy of its supply chain.
This example illustrates several diversity influences that affect consumer
behaviour. In a culturally heterogeneous market lie India, McDonalds
attempt to offer a unique platter that caters to a Pan India taste is
pioneering and focuses on how global companies can adapt themselves to
local needs and tastes. In the McDonalds example the attempt was not just
to offer a localised menu, but issues like fresh food, fast service and
affordable price were well addressed too. Finally, consumer behaviour can
vary among sub-groups of individuals with unique patters of ethnicity and
religion, due to different traditions, customs and preferences. Clearly, to
develop and implement effective marketing strategies and tactics
companies must understand how these diversity influences affect
consumers.8
8
Hoyer, MacInnis & Dasgupta, Consumer Behaviour

Exhibit 5.3 FOCUSING ON THE INDIAN PALETTE
McDonald’s local creation like McAloo Tikki Burger, Curry Pans, Wraps
Pizza Mcpuff and McVeggie are a favourite with the consumers.
6. CUSTOMER ANALYSIS
 Segmentation

The customers of McDonald’s have been segmented on the basis of AIOD
into four categories, based on the product attributes that fulfil needs like
‘fast’ food, ambience, status symbol and hygiene.
Activities Interests Opinions Demographics
1 “Fast” Student, Sports, Influenced by Age: 16-24

Food Working, Entertainment, peer pressure, years old.
Adventurous, fashion, music, Energetic, Marital status:
Energetic Recreation Impulse buying Single; Heavy
users
2 Ambience Student, Entertainment, Ambitious, Age: 20-35 yrs

working/selfmade Recreation, Future old. Marital
businessmen; Fashion, business and status: Single
working on Music, social issues, and Married.
projects. Socialization. Politics. Light to
medium users.
3 Status Student, Sports, Energetic, Age: 16-25 yrs

Symbol working; Entertainment Impulse old. Marital
Hanging out, , Fashion, buying, status: Single;
Adventurous. Music, influenced by light to medium
Recreation. peer pressure. users
4 Hygiene Working Home, Planned Age: 25-45 yrs

women/men, Recreation, purchasing, old; Marital
house-wives; shopping, Authoritarian, status: Newly
Shopping, Fashion, Strong views, married, Full
Club Politics,Future Nest; Light
memberships. business and users
Social issues.
1) “FAST” FOOD:

This segment of customers enjoys the Quick Service Restaurant (QSR)
facet of McDonald’s and has its needs fulfilled. Since McDonald’s
competes rigorously in the market on the quick delivery attribute,
the customers expect their food to be delivered to them fast, both at
the outlet, and at home (home delivery). A large majority of this
segment is composed of students whose activities are adventurous,
enthusiastic, energetic, and recreational and revolve around sports,
clubs, hangouts and shopping etc. This segment thus targets the
market that indulges in impulse buying and is influenced by peer-
pressure. These customers are heavy user of the product at hand. A
minority of newly working people are also included in this segment.
2) AMBIENCE:
This segment enjoys the unique ambience provided by McDonald’s.
Since the regular consumers of this product belong to the upper-
middle class, they prefer having a meal with the level of customer
service and a tinge of sophistication that the outlets provide. The
customers of this segment are students as well as working class. These
people enjoy recreation and socialization activities. They have strong
views about the current affairs and the future business and social
issues.

3) STATUS SYMBOL:
The people of this segment perceive the use of this product as a status
symbol and basically comprise students and new-working class. These
customers like being seen at the right places and like to associate and
socialize with people of the same class. These customers are
enthusiastic about entertainment, fashion, music and sports. They
have fickle opinions and subject to change because of peer pressure.
They follow fads and indulge in impulse buying.
4) HYGIENE:
This segment comprises people who are concerned with hygiene and
how the food is prepared and served and also the cleanliness of the
environment where they eat. It comprises of middle-aged people
mostly housewives and working women/men. These are light users
and make purchases once in a while, probably as a substitute rather
than a first-choice.
7. RESEARCH METHODOLOGY
 Research Methodology:

Research Methodology is a method to solve the research problem
systematically. It involves gathering data, use of statistical
techniques, interpretations, and drawing conclusions about the
research data. It is a blueprint, which is followed to complete the
study.9
Research Methodology
7.1. Title of the study
Study on consumer’s preferences with respect to Quick Service
Restaurants [McDonald’s] in Bangalore North.
7.2 Objective of the Research
The basic objective of this project is to study the reasons of consumers
preferences with respect to QSR’s, to assess how particular situations
affects the purchasing decisions of the consumers and to find out
that the purchase decisions depend ob the expectation and suggestion
of others.
7.3 Statement of Problem
9
S.N Murthy, Business Research Methods

My dissertation is on the topic Consumer Preference towards
McDonald’s. It talks about the fast food sector to which McDonalds
belongs and consumer satisfaction and preference towards
McDonald’s outlets in Bangalore North.
As a part of the research work I am trying to understand the
customer’s satisfaction level and preference which can fulfil all the
customers’ needs, buying behaviour of people living in North
Bangalore.
7.4 Sources of Data
Primary sources: The primary data is collected through questionnaires.
They were filled using the scheduled method of data
collection by the researcher.
Focused Group: A FGD of 6 people was conducted. It consisted of
people between the ages of 25 – 35 with 3 males
and 3 females. The objective of the discussion was
to understand the attributes that the customers of
McDonald’s products values and to know their
perceptions about various brands.

Secondary sources: The secondary sources were used only for
collecting information regarding the sample and
literature survey like Internet, Books, Journals,
newspaper etc.
7.5 Sampling Unit
Samples for the study consisted of youth segment and the middle-
aged that falls between 25 – 35 yrs. Convenience samples were
drawn from Bangalore North region among the college students and
office going people. It was a random selection of individuals from a
large number of customers at the fast food outlets. This segment of
population was selected due to their adoption of modern lifestyle
pattern inclined towards eating and socializing with friends and
family.
7.6 Sample Size
Since it is an exploratory study, a sample size of 120 thought to be
adequate one. Accordingly 120 respondents from the target
population were approached to fill in the questionnaire. Out of 120
only 100 respondent’s accepted McDonald’s in Bangalore North.

7.7 Limitations of the Research
The limitations of the research were as follows:
1) Lack of proper experience on the part of the researcher in
conducting such studies in the past.
2) The time period for carrying out the research was short as a result
of which many facts have been left unexplored.
3) The area for study which is quite a large area to judge out the
consumer preferences
4) Only 120 respondents have been chosen which is a small number to
represent the whole of the population.
5) While collection of the data many consumers were unwilling to fill
the questionnaire.
6) Many of the respondents did not fill the questionnaire properly.
7) Method of sampling is chosen which seems not to be appropriate.
7.8 Tools Used:
Percentage Analysis;
Pie Charts

8. DATA ANALYSIS AND INTERPRETATION
1. What is your Gender? Male/Female
Gender
Particulars Respondents %age
Male 80 66.67
Female 40 33.33
Total 120 100.00
Table 8.1- REPRESENTATION OF GENDER
Gender
33%
Male
Female
67%
Figure 8.1- GENDER
Description: Based on the analysis of data it can be said that more number
of males visits McDonald’s as compared to the females but that does not
make a significant difference.

2. Which age group do you belong?
Age
15-19 0 0.00
20-24 28 23.33
25-29 20 16.67
30-34 40 33.33
35-39 12 10.00
>40 20 16.67
Total 120 100.00
Table 8.2- AGE GROUP
Age
0%
17% 15-19
23%
20-24
10% 25-29
30-34
17% 35-39
>40
33%
Figure 8.2- AGE GROUP
Description: From the above data we can conclude that the age group
between 30-34yrs are the people who visit McDonalds more. This age
group falls into Family Unit category who come to McD for their family
and also that coming to McD is a way of showing their status to the society.

3. How often you visit McDonalds?
Visit
Once or twice in a month 84 70.00
3-4 times in a month 16 13.33
More than 4times in a
month 16 13.33
Never 4 3.33
Total 120 100.00
Table 8.3- VISIT TO McDONALD'S
Visit to Mcdonald's
3% Once or twice in a month
13% 3-4 times in a month
14% More than 4times in a

month
Never
70%
Figure 8.3- VISIT TO McDONALDS
Description: From the above percentage analysis it is clear that Young
consumers of fast foods visit fast food outlets one to two times in a month.
It is not a regular behaviour of their eating habits.

4. When you hear the word “Burger” does McDonald’s come
in your mind?
Burger

Yes 72 60.00
No 16 13.33
Sometimes 32 26.67
Total 120 100.00
Table 8.4 - McDONALD'S BURGER
Word "Burger"
27% Yes
No
60% Sometimes
13%
Figure 8.4- McDONALD'S BURGER
Description: As we can see in 60% of cases people attach the word burger
with McDonalds. That is quite a good response in favour of McDonald’s.

5. Which is your favourite product at McDonald’s?
Fav product at McD

Mc Spicy Chicken 32 26.67
Chicken Mc Grill 44 36.67
Mc Spicy Paneer 4 3.33
Mc Egg 8 6.67
French Fries 28 23.33
Dessets 4 3.33
Total 120 100.00
Table 8.5- FAVOURITE PRODUCT AT McDONALD'S
Fav product at McDonalds

3%
Mc Spicy Chicken
Chicken Mc Grill
27%
23% Mc Spicy Paneer
Mc Egg
7% French Fries
Dessets
3% 37%
Figure 8.5- FAVOURITE PRODUCT AT McDONALD'S
Description: Seeing the above data we can say that mostly people prefer
Non- veg items in McD and the products which are liked the most are
Chicken Mc Grill followed by Mc Spicy Chicken and French Fries.

6. Is the product line in McDonald’s adequate?
Product line in McD

Yes 64 53.33
No 4 3.33
It's Okay 52 43.33
Total 120 100.00
Table 8.6- PRODUCT LINE IN McDONALD'S
Product line in McDonalds
Yes
No
43%
It's Okay
54%
3%
Figure 8.6- PRODUCT LINE IN McDONALD'S
Description: According to most of the people the product line in McD is
adequate but still few had a neutral reaction towards it.

7. Suitable timing for visiting McDonald’s?
Timing for Visit

Morning 0 0.00
Afternoon 28 23.33
Evening 92 76.67
Total 120 100.00
Table 8.7- TIMING FOR VISIT TO McDONALD'S
Timing for Visit to McDonalds

0%
23%
Morning
Afternoon
Evening
77%
Figure 8.7- TIMING FOR VISIT TO McDONALD'S
Description: Above results indicates that going for snacks in the evening is
most preferred time for visiting fast food outlet followed by lunch time
that is afternoon.

8. Do you like to visit McDonald’s with?
Visit McDonalds with

Family 52 43.33
Friends 48 40.00
Couple 12 10.00
Alone 8 6.67
Total 120 100.00
Table 8.8- VISITING McDONALD'S WITH
Visit Mcdonalds With

7%
10%
Family
43% Friends
Couple
40%
Alone
Figure 8.8- VISITING McDONALD'S WITH
Description: Mostly people prefer going to McDonalds with their friends
and family and spending time with them.

9. What is the reason for preferring McDonald’s?
Reasons for preferring

McDonalds

Price 36 30.00
Accessibility 8 6.67
Food quality 44 36.67
Advertisement 8 6.67
Ambience 24 20.00
Total 120 100.00
Table 8.9- REASONS FOR PREFERRING McDONALD'S
Reasons for preferring McDonalds
Price
20%
30% Accessibility
7% Food quality
Advertisement
7%
Ambience
36%
Figure 8.9- REASONS FOR PREFERRING McDONALD'S
Description: The percentage analysis indicates that food taste and quality
has highest importance in the mind of fast food consumers while selecting

a fast food outlet for outings followed by price, ambience and location of
the outlet.
10. Rate the following questions:
{1= Strongly disagree 2= Disagree 3= Neutral 4= Agree
5= Strongly agree }
a) The service rendered by McDonald’s is the best as
compared to other fast food chains.
Services rendered by McD

Strongly disagree 8 6.67
Disagree 4 3.33
Neutral 44 36.67
Agree 52 43.33
Strongly agree 12 10.00
120 100.00
Table 8.10.a - SERVICE AT McD
10% 7% Service
3% Strongly disagree
Disagree
Neutral
37%
43% Agree
Strongly agree
Figure 8.10.a - SERVICE AT McD

Description: According to 43% of the people the service rendered by
McDonald is best as compared to other fast food restaurants.
b) The design of facilities inside McDonald’s. Ex- Chairs,
table’s etc are good.
Design of Facilities in McD

Strongly
disagree 4 3.33
Disagree 16 13.33
Neutral 12 10.00
Agree 80 66.67
Total 120 100.00
Table 8.10.b- DESIGN OF FACILITIES IN McD
Design of facilities in McD

3%
7%
Strongly disagree
13%
Disagree
10% Neutral
Agree
Strongly agree
67%
Figure 8.10.b- DESIGN OF FACILITIES IN MCD

Description: Most of the people rated the design of facilities inside
McDonalds as good.
c) You spend more time in McDonald’s as compared to
Pizza Hut or KFC.
Spending more time in McD

Strongly
disagree 12 10.00
Disagree 20 16.67
Neutral 44 36.67
Agree 32 26.67
120 100.00
Table 8.10.c- SPENDING MORE TIME IN McD
Spending more time in McD

Strongly disagree
10% 10%
Disagree
17%
27% Neutral
Agree
36%
Strongly agree
Figure 8.10.c- SPENDING MORE TIME IN McD

Description: Based on the multiple answer questions, it can be inferred
that people spend more time in McD though the much favoured answer
was neutral followed by agree.
d) The prevailing environment in McDonald’s is Hygienic.
Hygiene in McD

Strongly
disagree 4 3.33
Disagree 8 6.67
Neutral 20 16.67
Agree 52 43.33
120 100.00
Table 8.10.d- HYGIENE IN McDONALD'S
Hygiene in McD
3%
Strongly disagree
7%
Disagree
30%
17% Neutral
Agree
Strongly agree
43%
Figure 8.10.d- HYGIENE IN McDONALD'S

Description: The above set of results indicates that young consumers are
very particular about hygiene factor of fast food outlets. The consumers
rated hygiene factor very high with 43%.
e) Food of McDonald is delicious.
Delicious
food

Strongly
disagree 8 6.67
Disagree 4 3.33
Neutral 20 16.67
Agree 68 56.67
120 100.00
Table 8.10.e- DELICIOUS FOOD
Delicious Food
3%
17%
Disagree
17%
Neutral
Agree
56% Strongly agree
Figure 8.10.e- DELICIOUS FOOD

Description: Most of the people agreed that the food of McDonalds is
delicious.
f) McDonald’s serve healthy food.
Healthy food in McD

Strongly
disagree 8 6.67
Disagree 4 3.33
Neutral 40 33.33
Agree 52 43.33
120 100.00
Table 8.10.f- HEALTHY FOOD IN McDONALD'S
Healthy Food in McD

3%
13%
Disagree
Neutral
33%
Agree
44%
Strongly agree
Figure 8.10.f- HEALTHY FOOD IN McDONALD'S

Description: As people nowadays give much importance to health factor
so on the basis of results we can say that the food of McDonalds is
healthy.
g) McDonald’s provide a sufficient variety of food to
vegetarians.
Sufficient variety for Vegetarians

Strongly
disagree 12 10.00
Disagree 12 10.00
Neutral 28 23.33
Agree 64 53.33
120 100.00
Table 8.10.g- SUFFICIENT VARIETY FOR VEGETARIANS
Sufficient variety for vegetarians in

3%
McD
Strongly disagree
10%
Disagree
10%
Neutral
Agree
54% 23%
Strongly agree
Figure 8.10.g- SUFFICIENT VARIETY FOR VEGETARIANS

Description: Most of the people agreed that McDonalds provide a sufficient
variety of food to vegetarians thus breaking the myth that most fast food
chain serves non-vegetarians more.
h) McD charges nominal price for the products.
Nominal price at McD

Strongly
disagree 8 6.67
Disagree 16 13.33
Neutral 28 23.33
Agree 52 43.33
120 100.00
Table 8.10.h- NOMINAL PRICE AT McDONALD'S
Nominal price at McD
13%
13%
Disagree
Neutral
Agree
23%
44%
Strongly agree

Figure 8.10.h- NOMINAL PRICE AT McDONALD'S
Description: As compared to other fast food restaurants McD charges a
nominal price for the products and service it offers.
i) The price reflects the quality of food at McD.
Price reflecting the Quality of

Food

Strongly
disagree 8 6.67
Disagree 8 6.67
Neutral 24 20.00
Agree 72 60.00
120 100.00
Table 8.10.i- PRICE REFLECTING THE QUALITY OF FOOD

Price reflecting the Quality of Food
7% 6% Strongly disagree
7%
Disagree
Neutral
20%
Agree
Strongly agree
60%
Figure 8.10.i- PRICE REFLECTING THE QUALITY OF FOOD
Description: 60% of the people agreed that the price McDonalds charges
reflects the Quality of food it provides and is reasonable for people.
j) The logo of the McDonald’s is sharp enough for you to
recognize the location of the branch.
Logo of McDonalds

Strongly
disagree 8 6.67
Disagree 4 3.33
Neutral 4 3.33
Agree 40 33.33
120 100.00
Table 8.10.j- LOGO OF McDONALD'S

Logo of McDonalds
3%
7%
Disagree
Neutral
Agree
54%
33%
Strongly agree
Figure 8.10.j- LOGO OF McDONALD'S
Description: It is very important to locate and recognize the place in order
to avail its services. Thus maximum people strongly agree that the Golden
Arches of McDonalds is sharp enough for people to recognize the location
of the branch.
11. Reasons for coming to McDonald’s?
Reasons for Visiting McDonalds
For Change 44 36.67
Hangout 40 33.33
Saves time 8 6.67
Family outing 28 23.33
120 100.00
Table 8.11- REASONS FOR VISITING McDONALD'S

Reasons for Visiting McDonalds
For Change
23%
37%
Hangout
7%
Saves time
Family outing
33%
Figure 8.11- REASONS FOR VISITING McDONALD'S
Description: Most of the young Indian consumers visit fast food outlets for
change and fun as indicated by the results followed by hangout with
friends.
12. Your decision to visit McD is influenced by?
Influencing factor to visit

McDonalds

Spouse 16 13.33
Children 24 20.00
Friends 72 60.00
Relatives 8 6.67
Neighbour 0 0.00
120 100.00
Table 8.12- INFLUENCING FACTOR TO VISIT McDONALD'S

Influencing Factor to Visit McDonals

0%
7%
13%
Spouse
Children
Friends
20%
Relatives
60% Neighbour
Figure 8.12- INFLUENCING FACTOR TO VISIT McDONALD'S
Description: Based on multiple answer questions it is inferred that
consumer’s preference to visit a particular fast food outlet is influenced by
friends in 60 per cent of cases followed by children and other factors
13. Which is the most effective promotional activity for
McD?
Effective Promotional Activity for McD

Discount 44 36.67
Home delivery 28 23.33
Others 48 40.00
120 100.00
Table 8.13- EFFECTIVE PROMOTIONAL ACTIVITY FOR McDONALD'S

Effective promotional activity for McD
Discount
40% 37%
Home delivery
Others
23%
Figure 8.13- EFFECTIVE PROMOTIONAL ACTIVITY FOR McDONALD'S
Description: Promotion is essential for every organization. For McD the
most effective promotional activity according to people are advertisements
followed by discount.
14. Will you try the new product within 1 week after the
latest advertisement released?
Tryiing the product within a week of latest

ad

Yes 48 40.00
No 72 60.00
120 100.00
Table 8.14- TRYING THE PRODUCT WITHIN A WEEK OF LATEST AD

Trying the product within a week of

latest Ad
40% Yes
No
60%
Figure 8.14- TRYING THE PRODUCT WITHIN A WEEK OF LATEST AD
15. Do you think the introduction of Happy Price menu has
boosted the sales up?
Happy Price Menu resulting in Sales boost
Yes 60 50.00
No 4 3.33
Upto some
extent 56 46.67
120 100.00

Table 8.15- HAPPY PRICE MENU RESULTING IN SALES BOOST
Hapy Price Menu resulting in Sales

boost
Yes
47% No
50%
Upto some extent
3%
Figure 8.15- HAPPY PRICE MENU RESULTING IN SALES BOOST
Description: McDonalds innovative scheme of introducing Happy Price
Menu was successful upto some extent in boosting up the sales of McD.
16. What is the distance of nearest McDonald from your place?
Distance of McDonalds from your place

Near 64 53.33
Very near 16 13.33
Far 28 23.33
Very far 12 10.00
120 100.00

Table 8.16- DISTANCE OF NEAREST McDONALD'S FROM YOUR PLACE
Distance of nearest McD from your

place
10%
Near
23% Very near
54% Far
Very far
13%
Figure 8.16- DISTANCE OF NEAREST McDONALD'S FROM YOUR PLACE
Description: According to the above results it is clear that the nearest
distance of McD for most of the people are near to their home which means
the outlets of McD is vastly located in the Region of North Bangalore.
17. What do you think is the biggest competitor of
McDonald’s?
Competitor of McDonalds

KFC 92 76.67
Pizza Hut 12 10.00
Dominos 16 13.33
Subway 0 0.00
120 100.00
Table 8.17- COMPETITOR OF McDONALD'S

Competitors of McDonalds
0%
13%
KFC
10% Pizza Hut
Dominos
Subway
77%
Figure 8.17- COMPETITOR OF McDONALD'S
Description: Though McD being one of the most favoured fast food outlet
among the young consumers, it’s toughest competition is from KFC
followed by Dominos.
9. SUMMARY OF FINDINGS
The food habits of youngsters are influenced by many factors such as
environment at home, educational environment, availability and
accessibility to fast food providers, and social environment in their
surroundings. In addition, emergence of traits of independence in their
eating habits, nutritional education, divergence of food preferences at
home and at fast food outlets and ambience of place for socializing affects
their visit and liking of fast food outlets. The results of data analysis with

respect to these issues of food consumption behaviour of youngster’s vis-a`
-vis fast food outlets are presented in the following sub-sections:
1. The findings clearly indicate that the young customers are attracted
more with the food quality, price and hygiene factors.
2. The above set of results also indicates young consumers are very
particular about the nutritional value of the fast food.
3. It also shows that mostly family people prefer going to McD and the
influencing factor for them is their spouse and mostly children.
Family also prefer going to McD to show their position in the society
as fast food chains have now become a status symbol for people so
they prefer going to branded fast foot outlets rather than the non-
branded ones even if it is expensive.
4. Many consumers are not satisfied with the product line of McDonalds
so it needs an improvement in the variety of products served by McD.
5. McDonalds being most popular among the youth and even newly
working class of today but still it faces tough competition from KFC
and Dominos. Most of the young prefer Dominos for home orders
because of their scheme of in “30 minutes” home delivery or else
free.
6. Finding also states that the outlets of McDonalds are vastly located
and within the reach of the customers.

10. LIMITATIONS OF THE STUDY
1) After as per my survey it is found majority of people in Bangalore
North are not rich enough to visit McDonald’s frequently.
2) Distance is a problem in Bangalore city and even when people want
to visit traffic creates a problem.
3) Most of the McDonald’s shops are located in the busy area
particularly in Bangalore North and there is no parking space for
the consumers.
4) Another limitation is, there is some confusion whether McDonald is
a vegetarian or a non-vegetarian restaurant. Recently one incident

happened where a vegetarian has been given a non-vegetarian food
and there was a big complaint on that issue.
5) Generally McDonald’s differentiate the food servings through the
colours on the boxes. This should be more clearly enhanced and
rectified on the parity basis
11. RECOMMENDATIONS
Fast food providers need to focus on the quality and variety of food besides
other service parameters. Study clearly shows that consumers do not visit
these outlets primarily for food but for fun, change and social reasons as
they prefer home food over the fast food. This is an important parameter
to focus to have sustainable growth in the times to come. Further,
information about hygiene and nutrition value of the fast food must also
be communicated to the consumers. Thus, in nutshell, there is need to focus
on the food contents by the fast food marketers.

It is about the name recognition. Every where, millions of people are
familiar with the Golden Arches that are on top of every McDonalds
restaurants. McDonald should use this advantage to gain more attraction
from customers.
In addition, McDonald strength is giving variety of products even then the
company should focus on this strength to develop stronger. How ever, the
company seems not diversifying its products regularly, while competitors
are stronger and have new products gradually. Because of this reason,
McDonalds should spend more money on Research and Development to
create new products and services as well as increase the efficiency of
operations.
First, one thing McDonalds should focus on is that the play place for kids.
Next, even if company’s menu is still relatively inexpensive compared to
that of its competitors, it is not totally enough. Apart from price,
customers also make decision rely on menu. So McDonalds should also focus
on an organic menu consisting of more fruits and vegetables. it is necessary
for them to make this change, since customers of recent times are more
conscious towards their health.

12. CONCLUSIONS
Consumer acceptance of food served by fast food outlets is critically
important for the future growth of fast food outlets in any economy.
Though the rating of fast food outlets’ attributes under study based on
mean score is very high but still consumers visit fast food outlets for fun,
change or entertaining their friends but certainly not as a substitute of
home made food. Study of McDonald’s indicates a clear cut sign that
consumers demand more and more information related to hygiene issues
and nutritional values of the products of fast food outlets. Based on the
analysis and results, it can be said that with more and more acceptability
of fast food outlets and change in life style, competition among fast food

outlets with respect to quality of food and customer service will be more
prominent in the days to come.
Since food and medicine are permanent in nature, it is inevitable that this
industry will have a great future, what is required is that McDonald’s must
improve its services in India and in Bangalore in particular since Bangalore
is virtually a Mini- India.
BIBLIOGRAPHY
1. S. Ramesh Kumar, “Consumer Behaviour and Branding”, The Indian
Context, 2003, pp. 65,144,162,265,354,377.
2. S. N. Murthy & U. Bhojanna, “Business Research Methods”, Excel
Books (2008) 2nd Edition.
3. Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha,
“Marketing Management”, A South Asian Perspective, Dorling
Kindersley(India) Pvt. Ltd (2009), 13th Edition, pp. 144-158.
4. Wayne D. Hoyer, Deborah J. MacInnis & Pinaki Dasgupta, “Consumer
Behaviour”, Biztantra (2008) Edition, pp. 181,320.

5. Suja R. Nair, “Consumer Behaviour in Indian Perspective”, Himalaya
Publishing House, 2007 Edition.
6. http://www.mcdonalds.com
7. http://www.mcdonaldsindia.com
8. Economic Times Bureau, Sep 24, 2013. 04.25AM IST.
9. Anita Goyal & N.P Singh, “Consumer Perception About Fast Food
Consumption in India: An Exploratory Study”, British Food Journal,
Vol. 109 No. 2, 2007.
APPENDIX
QUESTIONNAIRE
Objective: This study is aimed at finding out the various reasons, why
consumers prefer McDonald’s and how the particular situations affect the
decision of consumers. Your feedback would be valuable.
1) Which age group do you belong?
15-19 20-24 25-29 30-34 30-34 35-
39 40& above
2) How often you visit McDonalds?
Once or twice in a month 3-4 times in a month

More than 4 times in a month Never
3) When you hear the word “Burger” does McDonald’s come in
your mind?
Yes No Sometimes
4) Which is your favourite product at McDonald’s?
McSpicy Chicken Chicken McGrill Desserts
McSpicy Paneer Mc Egg French Fries
5) Is the product line in McDonald’s adequate?
Yes No It’s okay
6) Suitable timing for visiting McDonald’s?
Morning Afternoon Evening
7) Do you like to visit McDonald’s with?
Family Couple Friends Alone
8) What is the reason for preferring McDonald’s?
Price Accessibility Food quality
Advertisement Ambience
- Rate the following {1=Strongly disagree, 2=disagree, 3=neutral,
4=agree, 5=Strongly agree}
1 2 3 4 5
a) The service rendered by McDonald’s is the best
as compared to other fast food chains
b) The design of facilities inside McDonald’s.
Ex- Chairs, table’s etc are good.

c) You spend more time in McDonald’s as
compared to Pizza Hut or KFC.
d) The prevailing environment in McDonald’s
is Hygienic.
e) Food of McDonald is delicious.
f) McDonald’s serve healthy food.
g) McDonald’s provide a sufficient variety
of food to vegetarians.
h) McD charges nominal price for the products
i) The price reflects the quality of food at McD
j) The logo of the McDonald’s is sharp enough
for you to recognize the location of the branch?
9) Reasons for coming to McDonald’s?
For change Family Outing Hangout Saves time
10) Your decision to visit McD is influenced by?
Spouse Children Friends Neighbours Relatives
9) Which is the most effective promotional activity for McD?
Discount Home delivery Others
10) Will you try the new product within 1 week after the latest
advertisement released?
Yes No
11) Do you think the introduction of Happy Price menu has
boosted the sales up?
Yes No Upto some extent
12) What is the distance of nearest McDonald from your place?

Near Very Near Far Very Far
13) What do you think is the biggest competitor of McDonald’s?
KFC Pizza Hut Dominos Subway
NAME –
GENDER –
OCCUPATION –
COMMENTS -

MCDONALD’S: BELANDUR CENTRAL


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Consumer preference with respect to Quick Service Restaurant (McDonald’s) in Bangalore North

Exhibit 1.1 McDonald’s Restaurant at California

McDonalds is a leader in convenient foods and beverages, with revenues of

than 24,500 restaurants in the world providing 24 hour service. Having

about 1 billon customers to be served all over the world

McDonalds’s success is the result of superior products, high standards of

performance, distinctive competitive strategies and the high integrity of

the people working in McDonald’s. McDonalds is continuing to expand and

introduce new alternative beverages in the market. Approximately 85% of

McDonald’s restaurant businesses world-wide are owned and operated by

franchisees .All franchisees are independent, full-time operators.

McDonald’s was named Entrepreneur’s Number-one franchise for 1997.

RIMS, Bangalore Page 1

The mission of McDonald’s is to be the world's premier Consumer Products

Company focused on convenient foods and beverages. McDonald’s products

restaurants. The corporations increasing success has been based on high

standards of performance, marketing strategies, competitiveness,

determination, commitment, and the personal and professional integrity

of their people, products and business practices. McDonald’s believes their

a safe, whole some, economically efficient and a healthy environment for

their customers; and by providing a fair return to their investors while

maintaining the highest standards of integrity.

1.1 HISTORICAL BACKGROUND OF MCDONALD’S

McDonald’s is one of the leading restaurant chains in the world, touching

McDonald’s restaurant in San Bernardino, California. Initially, they

around 25items, which were mostly barbequed. It became a popular and

restaurant to sell only hamburgers, milkshakes and French fries.

RIMS, Bangalore Page 2

As per the information of the McDonald’s history, the major revenue

came from hamburgers, which were sold at a nominal price of 15 cents.

The restaurant gradually became famous and the McDonald brothers

Michigan and Downey, California, respectively.

The business began in 1940, with a restaurant opened by siblings Dick

and Mac McDonald in San Bernardino, California. Their introduction of

the "Speedee Service System" in1948 established the principles of the

modern fast-food restaurant. The original mascot of McDonald's was a

was “Speedee”. Speedee was eventually replaced with Ronald McDonald

The present corporation dates its founding to the opening of a franchised

ninth McDonald’s restaurant overall. Kroc later purchased the McDonald

was also noted for aggressive business practices, compelling the

RIMS, Bangalore Page 3

Brothers and Kroc feuded over control of the business, as documented

in both Kroc’s autobiography and in the McDonald brother’s

autobiography. The site of the McDonald brother’s original restaurant is

With the expansion of McDonald’s into many international markets, the

company has become a symbol of globalization and the spread of the

of public debates about obesity, corporate ethics and consumer

the McDonald’s Corporation is created.

1957 – Quality, Service, Cleanliness and Value (QSC&V) becomes the

1959 – The 100th McDonalds open in Chicago.

1961 - Hamburger University opens in Elk Grove, near Chicago.

1964 – Filet - O- Fish sandwich is introduced.

1965 – Mc Donald’s Cooperation goes public.

RIMS, Bangalore Page 4

1972 – A new Mc Donald’s restaurants open every day. The quarter

1973 – Egg Mc Muffin is introduced.

1974 – The first Ronald Mc Donald House opens in Philadelphia. The