CONSUMER SATISFACTION TOWARDS RESTAURANTS

Dissertation Submitted to the

School of Management
D Y Patil University
Navi Mumbai
In Partial Fulfilment of the requirements for the award of the
Degree of

MASTERS IN BUSINESS ADMINISTRATION

Submitted by:
DARSHAN OSW AL
(Roll No.MBACORE015102)

Research Guide:
Mrs.JYOTI PAWAR
Assistant Professor

D Y Patil University School of Management

CBD Belapur, Navi Mumbai
February, 2017
CONSUMER BEHAVIOR SATISFACTION TOWARDS RESTAURANTS +

Dissertation Submitted to the

School of Management

D Y Patil University
Navi Mumbai
In Partial Fulfilment of the requirements for the award of the
Degree of

MASTERS IN BUSINESS ADMINISTRATION

Submitted by:
DARSHAN OSWAL
(Roll No.MBACORE015102)

Research Guide:
Mrs.JYOTI PAWAR
Assistant Professor

D Y Patil University School of Management

CBD Belapur, Navi Mumbai
February, 2017
 DECLARATION
I hereby declare that the dissertation CONSUMER SATISFACTION TOWARDS
RESTAURANTS.
submitted for the MBA Degree at D.Y Patil University School of Management is my original
work and the dissertation has not formed the basis for the award of any degree, associateship,
fellowship or any other similar titles.

Place: Navi Mumbai Mr.Darshan Oswal

Date:
 CERTIFICATE
This is to certify that the dissertation entitled CONSUMER SATISFACTION TOW ARDS
RESTAURANTS the bona fide Research work carried out by Mr.Darshan Oswal student of an
MBA, at D.Y Patil University School of Management during the year 2015-2017, In partial
fulfilment of the requirements for the award of the Degree of Masters in Business Administration and
that the dissertation has not formed the basis for the award previously of any degree, diploma,
associateship, fellowship or any other similar title.

Mrs.Jyoti Pawar Dr.R.Gopal

Assistant Professor, Director,

D Y Patil University D Y Patil University
School of Management School of Management

Place: Navi Mumbai

Date:
 ACKNOWLEDGEMENT

In the first place, I thank the D. Y. Patil University, School of Management, Navi Mumbai
for giving me an opportunity to work on this project. I would also like to thank Mrs.Jyoti Pawar ,
Assistant Professor, School of Management, D.Y. Patil University, Navi Mumbai
for giving me his valuable guidance for the project. Without his help it would have been
impossible for me to complete the project.

I would also like to thank the various people from the retail industry who have provided me
with a lot of information many of which I have used in this report and successfully
completed my project.

I would be failing in my duty if I do not acknowledge with a deep sense of gratitude the
sacrifices made by my parents and thus have helped me in completing the project work
successfully.

Place: Mumbai
Signature of the student.
Date:
 TABLE OF CONTENT

Page
Chapter No Title No

A List of Tables -

B List of Figures -

1 Executive Summary 1

2 Introduction 3

3 Literature Review 10

4 Objectives of the Study 19

5 Research Methodology 21

6 Limitations 23

7 Industry Profile 25

7.1 Industry profile 26

7.2 Restaurants in India 31

8 Consumer Behaviour 32

8.1 Consumer Behaviour 33

8.2 Stages in Consumer Making Decision Process 37

8.3 Cultural Factors affecting Consumer Behaviour 40

8.4 Social Factors affecting Consumer Behaviour 42

8.5 Personal Factors affecting Consumer Behaviour 44

8.6 Psychological factors affecting Consumer Behaviour 46

8.7 Role of Consumer Behaviour in Marketing 48

8.8 Role of Family in Consumer Behaviour 50

4 Ways Consumer Behaviour Is Shaping Restaurant Industry Demands

8.9 (And Other Insights From The 19th Annual Restaurant Industry 52
Conference)
9 Analysis and Interpretation 55

10 Findings &Suggestions 98

11 Conclusion 100

12 Bibliography 102

13 Annexure 104
 LIST OF TABLES

PAGE NO.
TABLE NO. TITLE

1 Segmentation of Restaurants in India 31

2 Age group of respondents (in years) 56

3 Income of respondents (in INR per month) 58

4 Family size of respondents (number of members) 60

Frequency to visit restaurants 62

5

Preference to type of cuisines in restaurants 64

6

7 Reasons to visit restaurants again 66

Reasons for restaurant failure 68

8

9 Income Group With Relation To Its Price Range 70

10 Preference to visit restaurant 72

11 Preference related to food taste 74

12 Expectations in ambience from restaurants 76

13 Preference to style of restaurants 78

14 Style Of Restaurant (With Reference To Family Size) 80

15 Style Of Restaurant (With Reference To Age Group) 82

16 Preference of serving the food in restaurant 84

17 Reasons of visiting restaurants 86

18 Ways to attract customers to try new restaurants 88

 Reasons Why Consumers Visit Restaurants (With
19 90
Reverence To Age Group)
20 Preference to spend money on only those restaurants that 92
offer tasty food but no other frills
21 Tasty Food But No Frill (With Reference To Family 94
Size)
22 Preference to spend money on only those restaurants that 96
offer good ambience & good dining experience
 LIST OF CHARTS

PAGE NO.
CHART NO. TITLE

1 Age group of respondents 57

2 Age group of respondents (in years) 59

3 Income of respondents (in INR per month) 61

4 Family size of respondents (number of members) 63

5 Frequency to visit restaurants 65

6 Preference to type of cuisines in restaurants 67

7 Reasons to visit restaurants again 69

8 Reasons for restaurant failure 71

9 Income Group With Relation To Its Price Range 73

10 Preference to visit restaurant 75

11 Preference related to food taste 77

12 Expectations in ambience from restaurants 79

13 Preference to style of restaurants 81

14 Style Of Restaurant (With Reference To Family Size) 83

15 Style Of Restaurant (With Reference To Age Group) 85

16 Preference of serving the food in restaurant 87

17 Reasons of visiting restaurants 89

18 Ways to attract customers to try new restaurants 91

19 Reasons Why Consumers Visit Restaurants (With 93

Reverence To Age Group)
 Preference to spend money on only those restaurants
20 95
that offer tasty food but no other frills
21 Tasty Food But No Frill (With Reference To Family 97
Size)
 CHAPTER: 1
EXECUTIVE SUMMARY

1
CHAPTER 1

EXECUTIVE SUMMARY

Restaurant is a French word which means to restore- a place where we are restored to
strength and vigour refuelling, as it were, with food.

The basic need of human is hunger. The human body needs food for energy and sustenance.
So that people is buying food from a fancy restaurant or a normal stall based on their budget.

Convenience is also a factor that forces people to eat out. Many people, who dont have time
to prepare food at home, find restaurant convenient. There are restaurants that cater to all
segments of society.

This reports talks about the consumer behaviour in restaurants and reason for the failure of
restaurants.

This report talks about the satisfaction and the quality of the food or services provided by the
restaurants and how they can improve their quality to satisfy their customers.

Literature review discusses the view point of authors regarding restaurants and then later in
the report I have written the complete information of respondents like age, income group and
random sampling technique is used. This report ends with my conclusion and
recommendations.

2
 CHAPTER: 2

INTRODUCTION

3
CHAPTER 2

INTRODUCTION

CONSUMER BEHAVIOUR

Consumer behaviour is the study of individuals, groups, or organizations and the processes
they use to select, secure, use, and dispose of products, services, experiences, or ideas to
satisfy needs and the impacts that these processes have on the consumer and society. It blends
elements from psychology, sociology, social anthropology, marketing and economics. It
attempts to understand the decision-making processes of buyers, both individually and in
groups such as how emotions affect buying behaviour. It studies characteristics of individual
consumers such as demographics and behavioural variables in an attempt to understand
people's wants. It also tries to assess influences on the consumer from groups such as family,
friends, sports, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Research has shown that consumer behaviour
is difficult to predict, even for experts in the field. Relationship marketing is an influential
asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true
meaning of marketing through the re-affirmation of the importance of the customer or buyer.
A greater importance is also placed on consumer retention, customer relationship
management, personalisation, customisation and one-to-one marketing. Social functions can
be categorized into social choice and welfare functions.

Each method for vote counting is assumed as social function but if Arrows possibility
theorem is used for a social function, social welfare function is achieved. Some specifications
of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity,
homogeneity and weak and strong Pareto optimality. No social choice function meets these
requirements in an ordinal scale simultaneously. The most important characteristic of a social
function is identification of the interactive effect of alternatives and creating a logical relation
with the ranks. Marketing provides services in order to satisfy customers. With that in mind
the productive system is considered from its beginning at the production level, to the end of
the cycle, the consumer (Kioumarsi et al., 2009).

4
Evaluation of alternatives

At this time the consumer compares the brands and products that are in their evoked set. The
evoked set refers to the number of alternatives that are considered by consumers during the
problem-solving process. Sometimes also known as consideration, this set tends to be small
relative to the total number of options available. How can the marketing organisation increase
the likelihood that their brand is part of the consumer's evoked set? Consumers evaluate
alternatives in terms of the functional and psychological benefits that they offer. The
marketing organisation needs to understand what benefits consumers are seeking and
therefore which attributes are most important in terms of making a decision. It also needs to
check other brands of the customers consideration set to prepare the right plan for its own
brand.

Purchase decision

Once the alternatives have been evaluated, the consumer is ready to make a purchase
decision. Sometimes purchase intention does not result in an actual purchase. The marketing
organisation must facilitate the consumer to act on their purchase intention. The organisation
can use a variety of techniques to achieve this. The provision of credit or payment terms may
encourage purchase, or a sales promotion such as the opportunity to receive a premium or
enter a competition may provide an incentive to buy now. The relevant internal psychological
process that is associated with purchase decision is integration. Once the integration is
achieved, the organisation can influence the purchase decisions much more easily.

There are 5 stages of a consumer buying process: The problem recognition stage, meaning
the identification of something a consumer needs. The search for information, which means
you search your knowledge bases or external knowledge sources for information on the
product. The possibility of alternative options, meaning whether there is another better or
cheaper product available. The choice to purchase the product and then finally the actual
purchase of the product. This shows the complete process that a consumer will most likely,
whether recognisably or not, go through when they go to buy a product.

5
Post purchase evaluation

The EKB (Engel, Kollat, Blackwell) model was further developed by Rice (1993) which
suggested there should be a feedback loop. Foxall (2005) further suggests the importance of
the post-purchase evaluation and that it is key because of its influences on future purchase
patterns.

Other influences

Consumer behaviour is influenced by internal conditions such as demographics,

psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and
feelings. Psychological factors include an individual's motivation, perception, attitude and
belief, while personal factors include income level, personality, age, occupation and lifestyle.

Congruence between personality and the way a persuasive message is framed (i.e., aligning
the message framing with the recipients personality profile) may play an important role in
ensuring the success of that message. In a recent experiment, five advertisements (each
designed to target one of the five major trait domains of human personality) were constructed
for a single product. The results demonstrated that advertisements were evaluated more
positively the more they cohered with participants dispositional motives. Tailoring
persuasive messages to the personality traits of the targeted audience can be an effective way
of enhancing the messagesimpact.

Behaviour can also be affected by external influences, such as culture, sub-culture, social
class, past experience reference groups, family and situational determinants. Culture is the
broadest and most abstract of the external factors, they are the complexity of learning
meanings, values, norms, and customs shared by members of a society. It is important to
study the impact of culture on consumer behaviour as marketers expand their international
marketing efforts. Subcultures may be based on age, geographic, religious, racial, and ethnic
differences. These racial/ethnic subcultures are important to marketers because of their
growth, size, and purchasing power. Social Class refers to relatively homogenous divisions in
a society into which people sharing similar lifestyles and interests can be grouped. These
social classes are important to marketers because these consumers have similar buying habits.
Reference group is defined as "a group whose presumed perspectives or values are being
used by an individual as the basis for his or her judgment, opinions, and actions." As

6
consumers we use three different types of reference groups including, associative,
aspirational and dissociative as a guide to specific behaviours. Marketers uses these groups to
create advertisements. Finally, situational determinants or purchase and usage decisions.
Three types of these may have an effect: specific usage situations, purchase situations, and
the communication settings.

Consumer Socialization

Consumer socialization is the process by which young people develop consumer related
skills, knowledge and attitudes. This field of study has increasingly interested policy makers,
marketers, consumer educator and students of socialization.

George Moschis and Gilbert A. Churchill, Jr posit that mass media, parents, school and peers
are all agents of consumer socialization. According to this theory children and young adults
learn the rational aspects of consumption from their parents while the mass media teaches
them to give social meaning to products; schools teach the importance of economic wisdom
and finally peers exercise varying social pressures.

Research in this field is primarily based on two models of human learning: the cognitive
development model, which stem primarily from the works of Jean Piaget, and the social
learning model, which is based primarily on neo-Hullian, neo-Skinerian and social learning
theory.

This aspect of child socialization started receiving academic attention in early

1970s.Systematic academic research in this area was triggered by charges of various
consumer advocacy groups which were concerned with the effects of marketing, especially
TV advertising on children

7
Consumerism
Consumerism as a social and economic order and ideology encourages the acquisition of
goods and services in ever-increasing amounts. Early criticisms of consumerism occur in
1899 in the works of Thorstein Veblen. Veblen's subject of examination, the newly emergent
middle class arising at the turn of the 20th century, came to fruition by the end of the 20th
century through the process of globalization.

In the domain of politics, the term "consumerism" has also been used to refer to something
quite different called the consumerists' movement, consumer protection or consumer
activism, which seeks to protect and inform consumers by requiring such practices as honest
packaging and advertising, product guarantees, and improved safety standards. In this sense it
is a political movement or a set of policies aimed at regulating the products, services,
methods, and standards of manufacturers, sellers, and advertisers in the interests of the
consumer.

In the domain of economics, "consumerism" refers to economic policies placing emphasis on

consumption. In an abstract sense, it is the consideration that the free choice of consumers
should strongly orient the choice by manufacturers of what is produced and how, and
therefore orient the economic organization of a society (compare producerism, especially in
the British sense of the term). In this sense, consumerism expresses the idea not of "one man,
one voice", but of "one dollar, one voice", which may or may not reflect the contribution of
people to society.

8
Consumer Problem

Consumer problem is a state of mind that leads to consumers making imperfect purchasing
decisions or lacking confidence in the correctness of their purchasing decisions.

Problem occurs when a consumer fails to correctly understand or interpret products and
services. This, in turn, leads to them making imperfect purchasing decisions. This concept is
important to marketeers because consumer problem may result in reduced sales, reduced
satisfaction with products and difficulty communicating effectively with the consumer. It is a
widely studied and broad subject which is a part of Consumer behaviour and Decision
making.

Choice overload (sometimes called overchoice in the context of problem) occurs when the
set of purchasing options becomes overwhelmingly large for a consumer. A good example is
wine in the UK where supermarkets may present over 1000 different products leaving the
consumer with a difficult choice process. Whilst large assortments do have some positive
aspects (principally novelty and stimulation and optimal solutions) any assortment greater
than around 12-14 products leads to problem and specifically transferring the ownership of
quality assurance to the consumer. What this means in practice is reduced levels of
satisfaction with purchases from large assortments as a consumer may be left with doubt that
they have succeeded in finding the "best" product. Choice overload is growing with ever
larger supermarkets and the internet being two of the main causes

9
 CHAPTER: 3

LITERATURE REVIEW

10
CHAPTER 3

LITERATURE REVIEW

A case study of shifting efficiency frontier in Indian service

industryShrinivasan, S(2010), Indian Institute if Management, pp. 41
According to Srinivasan, S., service economy is booming @ 55% in India and more is the
customer demand at economic rates because of changing external environment awareness. He
considered many researchers like Schemenner and verma in this paper. This paper talks about
shift in efficiency and also gives many provisions in this regard.
nd
Food and beverage service 2 edition,Andrew, S (2009) New Delhi pp. 166
The research shows that many attempts have been made to examine customer perception
about organic food available at a restaurant. The report also comprises of the factors
responsible for declining preference of the customer for the organic food. The research
concludes that women are more interested in organic food than men and they buy organic
food more frequently than men (Davis et al., 1995). Education also plays an important role in
developing consumer attitudes towards the purchase of organic product (Lea &Worsley,
2005).

Quotes about Restaurants,Chatna (2010), pp.32

Dube et al. are saying that people with higher education have more positive attitude towards
the organic products as they are more aware about the products. The purchase of organic
goods in the restaurant also depends on the income level of the consumers. The people with
higher income are more likely to purchase organic products and they have more positive
attitude. The satisfaction level of the customers also determines their attitude towards the
product. If the consumer is highly satisfied they will buy the product again

Restaurant management customer, operation and employees(3 rd

edition),Mill R (2010) pp. 61
The process of a restaurant starts with the client when he places his order. The service
environment plays an important role in customer satisfaction. Many restaurants play soothing
music for the entertainment of its customers; many restaurants have a great ambience which
attracts the customer. The environment within the restaurant plays a very important role in
attraction and satisfaction of the customers.

11
Dineserve a tool of measuring service quality in restaurant, Knutsen,
Steven P,journal in marketing, (1995) pp. 56-60
Knutson et al. presents findings from a survey of 85 seniors regarding the important things
that customers consider in selecting a restaurant. He researched that two factors, Experience
and incentives are two attributes that are judges on factor and discriminate analysis. To
conclude, he also gave few implications.

In research done by Stevens et al., he mentioned about a reliable questionnaire called

Dineservto know the feedback of customers visiting any restaurant. This gives an insight
about what a customer wants and what standards to be maintained and how should a
restaurant operator determine for satisfying the hidden needs of guests.

Dineserve a tool for measuring service quality in restaurants

Vanniarajan, T Journal in Marketing Communication(2009), volume 2
pp. 42-52

According to Vanniarajan, T., research done on increasing craze for restaurant services, he
mentions about increasing income, urbanization effect and availability of easy transport and
communication facilities in recent years. But this also creates a competitive market in food
service and forced restaurants to maintain quality and standards for a high-level customer
experience and a continuous quality improvement. This paper therefore discussed the quality
attributes considering the study done by graduate students. He concluded about five
important DINESERV variables that make it possible.

Odours and consumer behaviour in restaurant,GueGuen and Petr C

Hospitality managementvolume 3(2005) pp. 335
According to various studies, aroma helps in changing humans behaviour and their
emotions. It can change human mood into another mood. It is also help full not making
consumer hyper at a time.(Gue´guen, N., and Petr, C., 2005)

12
Understanding consumer involvement influence the consumer behaviour
in fine restaurantsPeters, T The business review, (2012) pp. 155-160
According to Rasli, A. Main work for any restaurants with providing quality food is that
customer satisfaction. Satisfaction leads to success and attracts more and more customers.
Satisfaction is strongly related with quality. If the owner of restraints or any hotel provides
services with quality it automatically satisfied their customers. For that service provider
should check service quality measurement timely to know the level of quality they are
providing and it will also help to do some changes regarding quality improvement and it also
increase the customers level of satisfaction and encourage customers to come again.

Designing and repositioning food services for multicultural

marketsVerma R Pullman,Cornell Hospitality Quarterly(1999), pp. 76-
87
Verma, R., Pullman, E. and Goodale, J. have done extensive literature survey and found that
case analysis of Food Court operations at Chicagos OHare, one of the largest and busiest
international airport terminals. Food services are mostly preference three language groups
which are English, Japanese and Spanish. The discrete choice analysis process is using
different hypothetical changes for the four restaurants operating in the terminals food court.
Customer always chose the combinations feature that they want the most and expansions in
the menus, particularly the addition of menu item. Employee is always doing interaction with
customer, reliability and speed of completing transaction. Product is covering tangible items
such as building design, printed materials, employee appearance, cleanliness levels and
branding variety. According to Clark, cross national studies are very important in
international market settings because of national difference exist, difference can be observed
and difference significant bearing on both consumer behavior and strategic decision markets
firms.

Consumer perception about fast food in Indian exploratory studyGoyal

A Singh N British food journal(2007) pp. 182-195
Goyal, A. and Singh, N.P. have done the research and found that the purpose of paper seeks
are to estimating important of various factors which is affecting the choice of fast food by
Indian young customers. Goyel, A. is analysis the consumption patterns like impact of
hygiene, nutritional values and rating of various attributes of McDonalds and Nirulas. The
Indian young customer are having a passion for visiting fast food for fun and change but
home foods are the first choice. Because they has highest nutritional values followed by
ambience and hygiene. McDonalds have the higher score in rating differs significantly on
the seven attributes accepts variety. Customer is feeling that fast food is providing
additional information on nutritional values and hygiene conditions inside kitchen but fast
food is mainly focus on quality and variety of food beside the others service. There is a need
to communicate the young consumers about the hygiene and nutrition value of fast food
which is helping trust in the food provided by fast food players.

13
Does restaurant performance meet customers expectations? An
assessment of restaurant service quality using a modified dinserve
approachMarkovic S Raspor(Tourism in hospitality management) (2010)
pp. 181-185
Markovic, S., Raspor, S. and segaric, K. have done the study on restaurant service quality.
They have the same aims which are: (a) difference between perceived and expected service
quality, (b) assess customersexpectations and perceptions, (c) identify the number of
dimensions for expectations and perceptions scales of modified DineServ model and (d) test
the reliability of the applied DineServ Model.

They are saying after study that perception scores are lower than expectations, its means low
level of service quality.Seven factors are telling about best explain customersexpectations
and two factors are telling about best explain customersperceptions regarding restaurant
service. This case study is helping to indentify the strengths and weakness of service quality
and implement an effective strategy to meet the customers expectations. The most prospect
items were accurate bill, Clean rest rooms, clean, neat and dressed staffand clean
dining areas which is wrong under the dimensions reliability and tangibles.

Characteristics of organizational environments and perceived

environmental uncertainty, R.B. Duncan Administrative science
quarterly(1972), pp. 313327
The perspectives of organizational, marketing and strategic management theories provide a
reliable theoretical groundwork to understand the important managerial aspects of menu. For
instance, organization theory explicitly emphasizes the influence of external environment
both on the decisions of firm managers and the survival of firms on the long run. More
specifically, external environment is one of the central themes of organization theory and the
relevant studies primarily propose that managers essentially consider the influential external
factors that create uncertainty, diversity and volatility while making their decisions. Planning
and operating menus in a restaurant context involve considering external factors such as
customers, rivals, and vendors that have a great potential in creating uncertainty, diversity
and volatility in the restaurants' immediate business environment. Complementing this view,
marketing theory recognizes the importance of identifying the needs and expectations of
customers, and developing and improving products and service perfectly fit to those needs
and expectations. Additionally, pricing, promoting and distributing the products and services
should also be consistent with the customers' needs and expectations on the one hand, and
with the firm's objectives on the other hand. Thus, in the restaurant context, it is imperative
that menu as the food and beverage combinations offered by a restaurant reflects the
expectations and needs of customers. Moreover, managing menus involves planning, pricing,
designing, distributing and promotional decisions which are also the main issues of
marketing.

14
The Intellectual Structure of Strategic ManagementManag. J.,Journal
of Operations Management(2008), pp. 319336
Strategic management literature currently encompasses a wide range of strategic management
schools posing different strategy definitions and processes (Sarvan et al., 2003). As a result,
there are various understandings of the meaning of strategy (Okumus, 2002). For example,
Mintzberg et al. (1998) define 10 schools of strategic thinking as design, planning,
positioning, entrepreneurial, cognitive, learning, power, cultural, environmental and
configuration schools. Among the 10 strategy schools, positioning school provides a clear
typology of strategy alternatives. For instance, Porter (1980) proposes well-known three
generic strategies: low cost leadership, differentiation and focus strategies, those are also
available for restaurant firms. When considered in a restaurant context, each strategic
alternative has associated implications for menu. For example, if the strategy is low cost
leadership, then decisions on planning, pricing and designing menu reflect the strategy
through selecting low cost menu items, pricing menu items at a lower price than rivals, and
attractively presenting menu items with low prices on menu card, which probably result in
customers' perceptions of a satisfactory meal experience with a reasonable quality.
Conversely, when a differentiation strategy is chosen, a restaurant manager is expected to be
attentive to (i) selecting or innovating unique menu items, (ii) setting higher prices with an
expectation that customers are willing to pay premium for a differentiated product, and (iii)
heavily concentrating on attractively presenting unique items on menu card to create a
positive image of a unique meal experience. Thus, all managerial decisions with reference to
planning, pricing and designing menus are the reflections of the chosen strategy such as low
cost leadership or differentiation.

The Restaurant-Failure Myth, Kerry Miller Bloomberg Journal April

16, 2007 pp.2
Research shows that some popular perceptions about the rate of failure in the restaurant
industry are just not true

"Do you know me?" asked Rocco DiSpirito in a 2003 TV spot for American Express. "I'm a
chef who already runs two restaurants in New York. Now I'm opening a third on national
television in a time when nine out of 10 restaurants fail in the first year."

Like many viewers, H.G. Parsa did know DiSpirito from his NBC reality show The
Restaurant. The nine-out-of-10 figure was familiar, too. As an associate professor in Ohio
State University's Hospitality Management program, Parsa had heard it many times before.
But based on his 13 years of restaurant-industry experience, he still didn't buy it.

Parsa says he spent three months trying to track down someone at American Express who
could give him a source for the 90% figure quoted in the ad. As it turns out, they didn't have
one. "American Express has not been able to track down a specific data source for the
statistic," reads a written statement a spokesperson sent Parsa in response to his request.

Urban Mythbuster
15
Parsa wasn't surprised. He had run several spreadsheet simulations to verify the statistic
himself and found that not only is the 90% figure off base, it's practically impossible, given
industry growth rates. He decided to do his own research on failure rates, using Health Dept.
records to track turnover among 2,500 restaurants in Columbus, Ohio, over a three-year
period.

His research consistent with similar studies found that about one in four restaurants close
or change ownership within their first year of business. Over three years, that number rises to
three in five.

While a 60% failure rate may still sound high, that's on par with the cross-industry average
for new businesses, according to statistics from the Small Business Administration and the
Bureau of Labor Statistics.

Parsa's study garnered serious attention within the hospitality field: Within a year of the
paper's publication in the Cornell Hotel & Restaurant Administration Quarterly in August,
2005, Parsa's research had been downloaded nearly 2,000 times, a record for the trade
journal. But in the culture at large, the nine-out-of-10 myth has stubbornly defied debunking.

Wary Lenders

While it's certainly not the first urban legend to fly in the face of facts, Parsa holds the
banking community largely responsible for perpetuating it. "They are the ones that benefit
from the myth, and they use it more than anyone else," he explains, though he's quick to note
that his opinion is based on logic, not research.

Because of the belief that restaurants are high-risk investments, he says, many banks won't
lend to restaurants at all. Typically, the ones that do require would-be restaurateurs to pay
sky-high interest rates or put up significant collateral (say, a house) to mitigate the perceived
risk (see BusinessWeek.com, Winter, 2007, "Tapped Out"). Ironically, Parsa's research
identified lack of sufficient startup capital as one of the major elements that contribute to a
restaurant's failure making the myth a self-fulfilling prophecy of sorts.

Of course, a lot of restaurants do open and close each year, because opening a restaurant has
such low barriers to entry and exit. And because the figure seems true after all, there's
plenty of anecdotal evidence statistics-quoting experts who don't cite their sources often go
unchallenged. The media BusinessWeek included adds fuel to the fire (see
BusinessWeek.com, 5/19/03, "Cooking Up a Global Empire"). And every "under-new-
management" sign in a restaurant window acts as an independent confirmation, cementing the
idea that restaurants are impossibly risky further into our collective memory, continuing the
cycle.

16
Franchise Safety Is Overrated

And it doesn't end there. Research shows that a lot of the conventional wisdom about failure
in the restaurant industry is similarly faulty.

One widely held belief is that franchise restaurants are much safer bets than independent
restaurants. But Parsa found that the three-year success rate for franchised restaurants is
actually only a few percentage points higher than it is for independents about 43%. That's a
far cry from the 90% or higher success rates trumpeted by many franchisors.

So far a cry, in fact, that the International Franchise Assn. decided it had to step in to clear
things up. In 2005, the IFA issued a letter urging its members to remove from their Web sites
or printed materials "any information claiming that the success rate of franchised
establishments is much greater than that of independent small businesses," calling the
information "potentially misleading."

The IFA specifically called out franchisors for using old Commerce Dept. data that has been
shown to be invalid. But because changes in franchise ownership usually remain behind the
scenes, Parsa says it's still easy to make franchises look like a much safer bet than they are.
"In the Yellow Pages, a Taco Bell is still a Taco Bell," Parsa says even if it's had five
different owners in a year and isn't turning a profit (see BusinessWeek.com, 1/29/07,
"Franchise Owners Go to Court"). On the other hand, Parsa's failure-rate statistics are
somewhat misleading too, because they count any turnover as a failure, including restaurants
that close or change hands while still profitable.

Juggling Family Ties

Given the immense time commitment that goes into owning a restaurant, it makes sense that
some owners want out, even if they're making money. And in fact, the number of profitable
"failures" is not insignificant. A 2003 report from an economist in the SBA's Office of
Advocacy analyzed unpublished data from the U.S. Census and found that one-third of closed
businesses were financially successful at closure.

"It appears that many owners may have executed a planned exit strategy, closed a business
without excess debt, sold a viable business, or retired from the workforce," the report noted,
adding that business-failure statistics might therefore present "much more daunting odds for
business success than is actually the case."

Whether failure rates overstate or understate the odds, no one disputes the conventional
wisdom that making it in the restaurant industry is no cakewalk. What entrepreneurs might
find surprising is just how much a restaurant's success hinges on an owner's ability to keep
the pressures of work from affecting life at home.

17
Parsa says how well an owner juggles the demands of the business with family life is actually
one of the most critical factors contributing to a restaurant's success more important, even,
than "location, location, location."

Overcoming Geography

His conclusions were based on in-depth interviews with 20 successful and 20 failed
restaurateurs. He determined that "beyond muddled concepts, failure seemed to stem in large
part from an inability or unwillingness to give the business sufficient attention, whether due
to lack of time, passion or knowledge."

Most of the failed restaurant owners themselves attributed their failure at least partly to
competing family demands, including divorce, ill health, and retirement. Some owners
voluntarily closed when the family sacrifices became too much, like one owner who said she
didn't want to miss seeing her children grow up.

Location, while an important factor, appears to be more of a "moderating variable" than a

causal one, Parsa says, ruling that "a poor location can be overcome by a great product and
operation, but a good location cannot overcome bad product or operation."

DiSpirito whose restaurant Rocco's on 22nd Street shut down just over a year after its well-
publicized opening might well have a few moderating variables of his own for the list.

18
 CHAPTER: 4

OBJECTIVES OF THE STUDY

19
CHAPTER 4
OBJECTIVES OF STUDY

 To Study factor that contribute to consumer satisfaction towards restaurant.

 To Analyze importance of Taste and Food in restaurant.

20
 CHAPTER: 5

RESEARCH METHODOLOGY

21
CHAPTER 5

RESEARCH METHODOLOGY

RESEARCH DESIGN

Raw Primary data was collected with the help of questionnaire. The raw data was
tabulated with the help of table .From the table concept interferences was drawn
which was used for interpretation Based on these charts were prepared for better
pictorial understanding of the study

From the set of inferences and interpretation, conclusion was drawn which was
followed by suggestion, keeping the objectives in mind through the study.

SAMPLE DESIGN
The research was carried out in various phases that constituted an approach of working from
whole to part. The research is done as per the questionnaires asked to customers who are in
restaurants. For the customer behaviour study a sample of 100 persons was chosen from
CBD Belapur, Navi Mumbai. The methodology was random sampling.

Size of Sample 100

Sampling technique Random Sampling method

Location from which samples will be taken CBD Belapur, Navi Mumbai

TOOLS FOR ANALYSIS

The collected data used for analysis in the method of percentage analysis.

PERCENTAGE ANALYSIS= (No. of respondents /total no of respondents)*100

22
 CHAPTER: 6

LIMITATIONS

23
CHAPTER 6

LIMITATIONS

The wrong attitude of the respondents was the main factor while collecting the data.
Time constraint.
Small sample size.

24
 CHAPTER: 7

INDUSTRY PROFILE

25
CHAPTER 7.1

INDUSTRY PROFILE

The hospitality industry is a broad category of fields within the service industry that includes
lodging, event planning, theme parks, transportation, cruise line, and additional fields within
the tourism industry. The hospitality industry is a multibillion-dollar industry that depends on
the availability of leisure time and disposable income. A hospitality unit such as a restaurant,
hotel, or an amusement park consists of multiple groups such as facility maintenance and
direct operations (servers, housekeepers, porters, kitchen workers, bartenders, management,
marketing, and human resources etc.).

Restaurants are one of the six major industries in the field of hospitality-tourism
(Ottenbacher, Harrington &Parsa, 2009). According to the National Restaurant Association
(NRA, 2009), restaurant sales in 2009, were estimated to exceed $566 billion. The restaurant
industry is estimated to be 4 percent of the Gross Domestic Product of the United States
(U.S.) and provides jobs for more than 13 million people. Restaurants are highly visible with
nearly 945,000 locations throughout the United States. Industry sales represented an increase
of approximately 2.5 percent in 2009 over 2008 sales. Despite the sluggish economy, unlike
most other industries, the foodservice industry overall continued to maintain sales increases
(NRA, 2009).

In order to continue the trend of increasing sales in the restaurant industry, overall guest
satisfaction and repeat business must be a priority for organizations. Increasing guest
satisfaction can lead to increased guest loyalty, which ultimately leads to increased revenues
and profitability (Perutkova&Parsa 2010). Because the restaurant industry consists of diverse
segments with different types of guest service encounters, it is important for restaurants to
determine the level of service expected from guests and deliver this level of service and
quality effectively and consistently to achieve the desired level of guest satisfaction.

Current study investigates the important attributes in the two major segments of the
restaurants industry, full-service restaurants and quick service restaurants, using a scenario
approach. Earlier studies on this topic have used rank order method in soliciting consumer
preferences when patronizing a restaurant and their willingness to pay (WTP). In the rank
order method, consumers consider restaurant attributes in a sequential manner in order of
their importance when making their restaurant decisions (Perutkova&Parsa 2010).
Unfortunately the rank order method compromises on realism in the sense that consumers do
not necessarily follow a rank order method in choosing a restaurant. In contrast, often
consumers use a complex process evaluating all major restaurant attributes simultaneously in
a dynamic manner. Thus to better reflect the true consumer decision making process, the
current study substituted the traditional sequential process with a dynamic comparison of
restaurant attributes: food quality, service, and ambience, and consumer's willingness to pay
(WTP) and intention to patronize (ITP) while choosing a restaurant. Understanding the

26
functional structure of this relationship can help restaurant managers and owners make
informed decisions in terms of reallocation of their funds for maximum return on investment.

Current usage

In the West today hospitality is rarely a matter of protection and survival and is more
associated with etiquette and entertainment. However, it still involves showing respect for
one's guests, providing for their needs, and treating them as equals. Cultures and subcultures
vary in the extent to which one is expected to show hospitality to strangers, as opposed to
personal friends or members of one's ingroup.

Global concepts
Ancient Greece

In Ancient Greece, hospitality was right, with the host being expected to make sure the needs
of his guests were met. The ancient Greek term xenia, or theoxenia when a god was involved,
expressed this ritualized guest-friendship relation. In Greek society a person's ability to abide
by the laws of hospitality determined nobility and social standing. The Stoics regarded
hospitality as a duty inspired by Zeus himself.

India

In India hospitality is based on the principle Atithi Devo Bhava, meaning "the guest is God".
This principle is shown in a number of stories where a guest is revealed to be a god who
rewards the provider of hospitality. From this stems the Indian practice of graciousness
towards guests at home and in all social situations.

hotels, and theme parks seek to maximize the number of customers they "process" in all
sectors. This led to formation of services with the aim to increase usage rate provided by
hotel consolidators. Information about required or offered products are brokered on business
networks used by vendors as well as purchasers.

In looking at various industries, "barriers to entry" by newcomers and competitive advantages

between current players are very important. Among other things, hospitality industry players
find advantage in old classics (location), initial and ongoing investment support (reflected in
the material upkeep of facilities and the luxuries located therein), and particular themes
adopted by the marketing arm of the organization in question (for example at theme
restaurants). Also very important are the characteristics of the personnel working in direct
contact with the customers. The authenticity, professionalism, and actual concern for the
happiness and well-being of the customers that is communicated by successful organizations
is a clear competitive advantage.

COFFEEHOUSE
A coffeehouse, coffee shop, or café is an establishment which primarily serves hot coffee,
related coffee beverages (e.g., espresso, cappuccino, caffè latte), tea and other hot beverages.

27
Many cafés also serve some type of food, such as pastries, muffins or light snacks.
Coffeehouses range from owner-operated small businesses to large multinational companies
such as Starbucks.

In continental Europe, a café is a traditional type of coffeehouse, but elsewhere the term
"cafe" may also refer to a tea room, small and cheap restaurant (colloquially a "caff"),
transport cafe, or other casual eating and drinking place. A coffeehouse may share some of
the same characteristics of a bar or restaurant, but it is different from a cafeteria. Many coffee
houses in the Middle East, and in West Asian immigrant districts in the Western world, offer
shisha (nargile in Turkish and Greek), flavored tobacco smoked through a hookah. Espresso
bars are a type of coffeehouse that specialize in serving espresso and espresso-based drinks.

From a cultural standpoint, coffeehouses largely serve as centers of social interaction: the
coffeehouse provides patrons with a place to congregate, talk, write, read, entertain one
another, or pass the time, whether individually or in small groups. Since the development of
Wi-Fi, coffeehouses with this capability have also become places for patrons to access the
Internet on their laptops and tablet computers. A coffeehouse can serve as an informal club
for its regular members. As early as the 1950s Beatnik era and the 1960s folk music scene,
coffeehouses have hosted singer-songwriter performances, typically in the evening.

NIGHTCLUBS
A nightclub (also known as a discothèque, disco, dance club or club) is an entertainment
venue which usually operates late into the night. A nightclub is generally distinguished from
bars, pubs or taverns by the inclusion of a dance floor and a DJ booth, where a DJ plays
recorded music. The busiest nights for a nightclub are Friday and Saturday night.

The music in nightclubs is either live bands or, more commonly, a mix of songs played by a
DJ through a powerful PA system. Most clubs or club nights cater to certain music genres.

PUBS
A pub or public house is, despite its name, a private house, but is licensed to sell alcohol to
the general public. It is a drinking establishment in Britain, Ireland, New Zealand, Australia,
Canada and Denmark. In many places, especially in villages, a pub can be the focal point of
the community. The writings of Samuel Pepys describe the pub as the heart of England.

The history of pubs can be traced back to Roman taverns,[5] through the Anglo-Saxon
alehouse to the development of the modern tied house system in the 19th century.

Historically, pubs have been socially and culturally distinct from cafés, bars and German beer
halls. Most pubs offer a range of beers, wines, spirits, and soft drinks and snacks.
Traditionally the windows of town pubs were of smoked or frosted glass to obscure the
clientele from the street but from the 1990s onwards, there has been a move towards clear
glass, in keeping with brighter interiors.

28
The owner, tenant or manager (licensee) of a pub is properly known as the "pub landlord".
The term publican (in historical Roman usage a public contractor or tax farmer) has come
into use since Victorian times to designate the pub landlord. Known as "locals" to regulars,
pubs are typically chosen for their proximity to home or work, the availability of a particular
beer, as a place to smoke (or avoid it), hosting a darts team, having a pool or snooker table, or
appealing to friends.

Until the 1970s most of the larger pubs also featured an off-sales counter or attached shop for
the sales of beers, wines and spirits for home consumption. In the 1970s the newly built
supermarkets and high street chain stores or off-licences undercut the pub prices to such a
degree that within ten years all but a handful of pubs had closed their off-sale counters, which
had often been referred to colloquially as the jug and bottle.

RESTAURANT
A restaurant is a business which prepares and serves food and drinks to customers in
exchange for money, either paid before the meal, after the meal, or with an open account.
Meals are generally served and eaten on premises, but many restaurants also offer take-out
and food delivery services. Restaurants vary greatly in appearance and offerings, including a
wide variety of cuisines and service models ranging from inexpensive fast food restaurants to
high-priced luxury establishments. In Western countries, most mid- to high-range restaurants
serve alcoholic beverages such as beer and wine. Some restaurants serve all the major meals,
such as breakfast, lunch and dinner (e.g., major fast food chains, hotel restaurants and airport
restaurants). Other restaurants may only serve a single meal (e.g., a pancake house may only
serve breakfast) or they may serve two meals (e.g., lunch and dinner).

TYPES OF RESTAURANTS

Restaurants may be classified or distinguished in many different ways. The primary factors
are usually the food itself (e.g. vegetarian, seafood, steak); the cuisine (e.g. Italian, Chinese,
Japanese, Indian, French, Mexican, Thai) and/or the style of offering (e.g. tapas bar, a sushi
train, a tastet restaurant, a buffet restaurant or a yum cha restaurant). Beyond this, restaurants
may differentiate themselves on factors including speed (see fast food), formality, location,
cost, service, or novelty themes (such as automated restaurants).

Restaurants range from inexpensive and informal lunching or dining places catering to people
working nearby, with simple food served in simple settings at low prices, to expensive
establishments serving refined food and fine wines in a formal setting. In the former case,
customers usually wear casual clothing. In the latter case, depending on culture and local
traditions, customers might wear semi-casual, semi-formal or formal wear. Typically,
customers sit at tables, their orders are taken by a waiter, who brings the food when it is
ready. After eating, the customers then pay the bill.

29
For some time the travelling public has been catered for with ship's messes and railway
restaurant cars which are, in effect, travelling restaurants. (Many railways, the world over,
also cater for the needs of travellers by providing Railway Refreshment Rooms [a form of
restaurant] at railway stations.) In recent times there has been a trend to create a number of
travelling restaurants, specifically designed for tourists. These can be found on such diverse
places as trams, boats, buses, etc.

30
CHAPTER 7.2

RESTAURANTS IN INDIA

The Indian restaurant industry is worth Rs.75,000 crores and is growing at an annual rate of
7%. The industry is highly fragmented with 1.5 million eating outlets, of which a little more
than 3,000 outlets form the organized segment. However, the organized segment is rapidly
growing at an annual rate of 16%. Quick service segment is the clear winner in the eating out
market with a growth rate of 21%.

Organized Segment is expected to reach Rs.22, 000crore by 2017, driven by:

Rising disposable income

Nuclear family structure
Increasing working population
Rapid urbanization and consumerism
Increased private equity interest
TABLE 1
SEGMENTATION OF RESTAURANTS IN INDIA

Segment Market Size (Rs Cr) Expected Growth Rate

Quick service Restaurants 4675 21.5%

Casual dining 2365 11.9%

Cafes 1265 12.3%

Fine dining 1045 12.0%

Pubs, bars, clubs and lounges 963 11.0%

"Indians on an average eat out lesser than 2 times a month, compared to 40 times in
Singapore. Even a small increase in this number provides a huge market opportunity for
restaurants in India."

31
 CHAPTER: 8

CONSUMER BEHAVIOUR

32
CHAPTER 8

CONSUMER BEHAVIOUR

CHAPTER 8.1

CONSUMER BEHAVIOUR

Consumer behaviour is the study of individuals, groups, or organizations and the processes
they use to select, secure, use, and dispose of products, services, experiences, or ideas to
satisfy needs and the impacts that these processes have on the consumer and society. It blends
elements from psychology, sociology, social anthropology, marketing and economics. It
attempts to understand the decision-making processes of buyers, both individually and in
groups such as how emotions affect buying behaviour. It studies characteristics of individual
consumers such as demographics and behavioural variables in an attempt to understand
people's wants. It also tries to assess influences on the consumer from groups such as family,
friends, sports, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Research has shown that consumer behaviour
is difficult to predict, even for experts in the field. Relationship marketing is an influential
asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true
meaning of marketing through the re-affirmation of the importance of the customer or buyer.
A greater importance is also placed on consumer retention, customer relationship
management, personalisation, customisation and one-to-one marketing. Social functions can
be categorized into social choice and welfare functions.

Each method for vote counting is assumed as social function but if Arrows possibility
theorem is used for a social function, social welfare function is achieved. Some specifications
of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity,
homogeneity and weak and strong Pareto optimality. No social choice function meets these
requirements in an ordinal scale simultaneously. The most important characteristic of a social
function is identification of the interactive effect of alternatives and creating a logical relation

33
with the ranks. Marketing provides services in order to satisfy customers. With that in mind
the productive system is considered from its beginning at the production level, to the end of
the cycle, the consumer (Kioumarsi et al., 2009).

Evaluation of alternatives

At this time the consumer compares the brands and products that are in their evoked set. The
evoked set refers to the number of alternatives that are considered by consumers during the
problem-solving process. Sometimes also known as consideration, this set tends to be small
relative to the total number of options available. How can the marketing organisation increase
the likelihood that their brand is part of the consumer's evoked set? Consumers evaluate
alternatives in terms of the functional and psychological benefits that they offer. The
marketing organisation needs to understand what benefits consumers are seeking and
therefore which attributes are most important in terms of making a decision. It also needs to
check other brands of the customers consideration set to prepare the right plan for its own
brand.

Purchase decision

Once the alternatives have been evaluated, the consumer is ready to make a purchase
decision. Sometimes purchase intention does not result in an actual purchase. The marketing
organisation must facilitate the consumer to act on their purchase intention. The organisation
can use a variety of techniques to achieve this. The provision of credit or payment terms may
encourage purchase, or a sales promotion such as the opportunity to receive a premium or
enter a competition may provide an incentive to buy now. The relevant internal psychological
process that is associated with purchase decision is integration. Once the integration is
achieved, the organisation can influence the purchase decisions much more easily.

There are 5 stages of a consumer buying process: The problem recognition stage, meaning
the identification of something a consumer needs. The search for information, which means
you search your knowledge bases or external knowledge sources for information on the
product. The possibility of alternative options, meaning whether there is another better or
cheaper product available. The choice to purchase the product and then finally the actual

34
purchase of the product. This shows the complete process that a consumer will most likely,
whether recognisably or not, go through when they go to buy a product.

Post purchase evaluation

The EKB (Engel, Kollat, Blackwell) model was further developed by Rice (1993) which
suggested there should be a feedback loop. Foxall (2005) further suggests the importance of
the post-purchase evaluation and that it is key because of its influences on future purchase
patterns.

Other influences

Consumer behaviour is influenced by internal conditions such as demographics,

psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and
feelings. Psychological factors include an individual's motivation, perception, attitude and
belief, while personal factors include income level, personality, age, occupation and lifestyle.

Congruence between personality and the way a persuasive message is framed (i.e., aligning
the message framing with the recipients personality profile) may play an important role in
ensuring the success of that message. In a recent experiment, five advertisements (each
designed to target one of the five major trait domains of human personality) were constructed
for a single product. The results demonstrated that advertisements were evaluated more
positively the more they cohered with participants dispositional motives. Tailoring
persuasive messages to the personality traits of the targeted audience can be an effective way
of enhancing the messages impact.

Behaviour can also be affected by external influences, such as culture, sub-culture, social
class, past experience reference groups, family and situational determinants. Culture is the
broadest and most abstract of the external factors, they are the complexity of learning
meanings, values, norms, and customs shared by members of a society. It is important to
study the impact of culture on consumer behaviour as marketers expand their international
marketing efforts. Subcultures may be based on age, geographic, religious, racial, and ethnic

35
differences. These racial/ethnic subcultures are important to marketers because of their
growth, size, and purchasing power. Social Class refers to relatively homogenous divisions in
a society into which people sharing similar lifestyles and interests can be grouped. These
social classes are important to marketers because these consumers have similar buying habits.
Reference group is defined as "a group whose presumed perspectives or values are being
used by an individual as the basis for his or her judgment, opinions, and actions." As
consumers we use three different types of reference groups including, associative,
aspirational and dissociative as a guide to specific behaviours. Marketers uses these groups to
create advertisements. Finally, situational determinants or purchase and usage decisions.
Three types of these may have an effect: specific usage situations, purchase situations, and
the communication settings.

36
CHAPTER 8.2

Stages in Consumer Decision Making Process

An individual who purchases products and services from the market for his/her own personal
consumption is called as consumer.

To understand the complete process of consumer decision making, let us first go through the
following example:

Tim went to a nearby retail store to buy a laptop for himself. The store manager showed him
all the latest models and after few rounds of negotiations, Tim immediately selected one for
himself.

In the above example Tim is the consumer and the laptop is the product which Tim wanted to
purchase for his end-use.

Why do you think Tim went to the nearby store to purchase a new laptop ?

The answer is very simple. Tim needed a laptop. In other words it was actually Tims need to
buy a laptop which took him to the store.

The Need to buy a laptop can be due to any of the following reasons:
His old laptop was giving him problems.

He wanted a new laptop to check his personal mails at home.

He wanted to gift a new laptop to his wife.

He needed a new laptop to start his own business.

The store manager showed Tim all the samples available with him and explained him the
features and specifications of each model. This is called information. Tim before buying the
laptop checked few other options as well. The information can come from various other
sources such as newspaper, websites, magazines, advertisements, billboards etc.

37
This explains the consumer buying decision process.

A consumer goes through several stages before purchasing a product or service.

NEED

INFORMATION GATHERING/SEARCH

EVALUATION OF ALTERNATIVES

PURCHASE OF PRODUCT/SERVICE
↓

POST PURCHASE EVALUATION

Step 1 - Need is the most important factor which leads to buying of products and services.
Need infact is the catalyst which triggers the buying decision of individuals.

An individual who buys cold drink or a bottle of mineral water identifies his/her need as
thirst. However in such cases steps such as information search and evaluation of alternatives
are generally missing. These two steps are important when an individual purchases expensive
products/services such as laptop, cars, mobile phones and so on.

Step 2 - When an individual recognizes his need for a particular product/service he tries to
gather as much information as he can.

An individual can acquire information through any of the following sources:

Personal Sources - He might discuss his need with his friends, family members, co workers
and other acquaintances.

Commercial sources - Advertisements, sales people (in Tims case it was the store manager),
Packaging of a particular product in many cases prompt individuals to buy the same, Displays
(Props, Mannequins etc)

38
Public sources - Newspaper, Radio, Magazine

Experiential sources - Individuals own experience, prior handling of a particular product

(Tim would definitely purchase a Dell laptop again if he had already used one)

Step 3 - The next step is to evaluate the various alternatives available in the market. An
individual after gathering relevant information tries to choose the best option available as per
his need, taste and pocket.

Step 4 - After going through all the above stages, customer finally purchases the product.

Step 5 - The purchase of the product is followed by post purchase evaluation. Post purchase
evaluation refers to a customers analysis whether the product was useful to him or not,
whether the product fulfilled his need or not?

39
CHAPTER 8.3

Cultural Factors affecting Consumer Behaviour

Consumer behaviour deals with the study of buying behaviour of consumers. Consumer
behaviour helps us understand why and why not an individual purchases goods and services
from the market.

There are several factors which influence the buying decision of consumers, cultural factors
being one of the most important factors.

What are Cultural Factors?

Cultural factors comprise of set of values and ideologies of a particular community or group
of individuals. It is the culture of an individual which decides the way he/she behaves. In
simpler words, culture is nothing but values of an individual. What an individual learns from
his parents and relatives as a child becomes his culture.

Example - In India, people still value joint family system and family ties. Children in India
are conditioned to stay with their parents till they get married as compared to foreign
countries where children are more independent and leave their parents once they start earning
a living for themselves.

Cultural factors have a significant effect on an individuals buying decision. Every individual
has different sets of habits, beliefs and principles which he/she develops from his family
status and background. What they see from their childhood becomes their culture.

Let us understand the influence of cultural factors on buying decision of individuals with the
help of various examples.

Females staying in West Bengal or Assam would prefer buying sarees as compared to
Westerns. Similarly a male consumer would prefer a Dhoti Kurta during auspicious
ceremonies in Eastern India as this is what their culture is. Girls in South India wear skirts
and blouses as compared to girls in north India who are more into Salwar Kameez.

Our culture says that we need to wear traditional attire on marriages and this is what we have
been following since years.

People in North India prefer breads over rice which is a favorite with people in South India
and East India.

Subcultures

Each culture further comprises of various subcultures such as religion, age, geographical
location, gender (male/female), status etc.

Religion (Christianity, Hindu, Muslim, Sikhism, Jainism etc)

40
A Hindu bride wears red, maroon or a bright colour lehanga or saree whereas a Christian
bride wears a white gown on her wedding day. It is against Hindu culture to wear white on
auspicious occasions. Muslims on the other hand prefer to wear green on important
occasions.

For Hindus eating beef is considered to be a sin whereas Muslims and Christians absolutely
relish the same. Eating pork is against Muslim religion while Hindus do not mind eating it.

A sixty year old individual would not like something which is too bright and colorful. He
would prefer something which is more sophisticated and simple. On the other hand a teenager
would prefer funky dresses and loud colours.

In India widows are expected to wear whites. Widows wearing bright colours are treated with
suspicion.

Status (Upper Class, Middle class and Lower Class)

People from upper class generally have a tendency to spend on luxurious items such as
expensive gadgets, cars, dresses etc.You would hardly find an individual from a lower class
spending money on high-end products. A person who finds it difficult to make ends meet
would rather prefer spending on items necessary for survival. Individuals from middle class
segment generally are more interested in buying products which would make their future
secure.

Gender (Male/Female)

People generally make fun of males buying fairness creams as in our culture only females are
expected to buy and use beauty products. Males are perceived to be strong and tough who
look good just the way they are.

41
CHAPTER 8.4

Social Factors affecting Consumer Behaviour

Consumer Behaviour is an effort to study and understand the buying tendencies of consumers
for their end use.

Social factors play an essential role in influencing the buying decisions of consumers.

Human beings are social animals. We need people around to talk to and discuss various
issues to reach to better solutions and ideas. We all live in a society and it is really important
for individuals to adhere to the laws and regulations of society.

Social Factors influencing consumer buying decision can be classified as under:

Reference Groups
Immediate Family Members

Relatives

Role in the Society

Status in the society

Reference Groups

Every individual has some people around who influence him/her in any way. Reference
groups comprise of people that individuals compare themselves with. Every individual knows
some people in the society who become their idols in due course of time.

Co workers, family members, relatives, neighbours, friends, seniors at workplace often form
reference groups.

Reference groups are generally of two types:

Primary Group - consists of individuals one interacts with on a regular basis.

Primary groups include:

Friends

Family Members

Relatives

Co Workers

All the above influence the buying decisions of consumers due to following reasons:

42
They have used the product or brand earlier.

They know what the product is all about. They have complete knowledge about the features
and specifications of the product.

Tim wanted to purchase a laptop for himself. He went to the nearby store and purchased a
Dell Laptop. The reason why he purchased a Dell Laptop was because all his friends were
using the same model and were quite satisfied with the product. We tend to pick up products
our friends recommend.

A married individual would show strong inclination towards buying products which would
benefit not only him but also his family members as compared to a bachelor. Family plays an
important role in influencing the buying decisions of individuals.

A consumer who has a wife and child at home would buy for them rather than spending on
himself. An individual entering into marriage would be more interested in buying a house,
car, household items, furniture and so on. When an individual gets married and starts a
family, most of his buying decisions are taken by the entire family.

Every individual goes through the following stages and shows a different buying need in each
stage:

Bachelorhood: Purchases Alcohol, Beer, Bike, Mobile Handsets (Spends Lavishly)

Newly Married: Tend to purchase a new house, car, household furnishings. (Spends sensibly)

Family with Children: Purchases products to secure his as well as his familys future.

Empty nest (Children getting married)/Retirement/Old Age: Medicines, Health Products, and
Necessary Items.

A Ford Car in the neighbourhood would prompt three more families to buy the same model.

Secondary Groups - Secondary groups share indirect relationship with the consumer. These
groups are more formal and individuals do not interact with them on a regular basis, Example
- Religious Associations, Political Parties, Clubs etc.

Role in the Society

Each individual plays a dual role in the society depending on the group he belongs to. An
individual working as Chief Executive Officer with a reputed firm is also someones husband
and father at home. The buying tendency of individuals depends on the role he plays in the
society.

Social Status

An individual from an upper middle class would spend on luxurious items whereas an
individual from middle to lower income group would buy items required for his/her survival.

43
CHAPTER 8.5
Personal Factors affecting Consumer Behaviour

Consumer Behaviour helps us understand the buying tendencies and spending patterns of
consumers. Not all individuals would prefer to buy similar products.

Consumer behaviour deals with as to why and why not an individual purchases particular
products and services.

Personal Factors play an important role in affecting consumer buying behaviour.

Occupation

The occupation of an individual plays a significant role in influencing his/her buying

decision. An individuals nature of job has a direct influence on the products and brands he
picks for himself/herself.

Tim was working with an organization as Chief Executive Officer while Jack, Tims friend
now a retired professor went to a nearby school as a part time faculty. Tim always looked for
premium brands which would go with his designation whereas Jack preferred brands which
were not very expensive. Tim was really conscious about the clothes he wore, the perfume he
used, the watch he wore whereas Jack never really bothered about all this.

That is the importance of ones designation. As a CEO of an organization, it was really

essential for Tim to wear something really elegant and unique for others to look up to him. A
CEO or for that matter a senior professional can never afford to wear cheap labels and local
brands to work.

An individuals designation and his nature of work influence his buying decisions. You
would never find a low level worker purchasing business suits, ties for himself. An individual
working on the shop floor cant afford to wear premium brands everyday to work.

College goers and students would prefer casuals as compared to professionals who would be
more interested in buying formal shirts and trousers.

Age

Age and human lifecycle also influence the buying behaviour of consumers. Teenagers would
be more interested in buying bright and loud colours as compared to a middle aged or elderly
individual who would prefer decent and subtle designs.

A bachelor would prefer spending lavishly on items like beer, bikes, music, clothes, parties,
clubs and so on. A young single would hardly be interested in buying a house, property,
insurance policies, gold etc.An individual who has a family, on the other hand would be more
interested in buying something which would benefit his family and make their future secure.

44
Economic Condition

The buying tendency of an individual is directly proportional to his income/earnings per

month. How much an individual brings home decides how much he spends and on which
products?

Individuals with high income would buy expensive and premium products as compared to
individuals from middle and lower income group who would spend mostly on necessary
items. You would hardly find an individual from a low income group spending money on
designer clothes and watches. He would be more interested in buying grocery items or
products necessary for his survival.

Lifestyle

Lifestyle, a term proposed by Austrian psychologist Alfred Adler in 1929, refers to the way
an individual stays in the society. It is really important for some people to wear branded
clothes whereas some individuals are really not brand conscious. An individual staying in a
posh locality needs to maintain his status and image. An individuals lifestyle is something to
do with his style, attitude, perception, his social relations and immediate surroundings.

Personality

An individuals personality also affects his buying behaviour. Every individual has his/her
own characteristic personality traits which reflect in his/her buying behaviour. A fitness freak
would always look for fitness equipments whereas a music lover would happily spend on
musical instruments, CDs, concerts, musical shows etc.

45
CHAPTER 8.6
Psychological factors affecting Consumer Behaviour

Motivation

Nancy went to a nearby restaurant and ordered pizza for herself.

Why did Nancy buy pizza ?

Answer - She was feeling hungry and wanted to eat something.

In the above example, Hunger was the motivating factor for Nancy to purchase pizza. There
are several other factors which motivate individuals to purchase products and services. An
individual who is thirsty would definitely not mind spending on soft drinks, packaged water,
juice and so on. Recognition and self esteem also influence the buying decision of
individuals.

Why do people wear branded clothes?

Individuals prefer to spend on premium brands and unique merchandise for others to look up
to them. Certain products become their status symbol and people know them by their choice
of picking up products that are exclusive. An individual who wears a Tag Heuer watch would
never purchase a local watch as this would be against his image.

Perception

What is Perception?

What an individual thinks about a particular product or service is his/her perception towards
the same. For someone a Dell Laptop might be the best laptop while for others it could be just
one of the best brands available.

Individuals with the same needs might not purchase similar products due to difference in
perception.

Catherine and Roselyn had a hectic day at work and thus wanted to have something while
returning from work. Catherine ordered a large chicken pizza with French fries and coke
while Roselyn preferred a baked vegetable sandwich. Though both Catherine and Roselyn
had the same motivation (hunger), but the products they purchased were entirely different as
Roselyn perceived pizza to be a calorie laden food. Individuals think differently and their
perceptions do not match.

Individuals perceive similar situation differently due to difference in the way they interpret
information.

46
There are three different processes which lead to difference in perception:

Selective Attention - Selective attention refers to the process where individuals pay attention
to information that is of use to them or their immediate family members. An individual in a
single day is exposed to numerous advertisements, billboards, hoardings etc but he is
interested in only those which would benefit him in any way. He would not be interested in
information which is not relevant at the moment.

Selective Distortion - Consumers tend to perceive information in a way which would be in

line to their existing thoughts and beliefs.

Selective Retention - Consumers remember information which would be useful to them, rest
all they forget in due course of time. Michael wanted to purchase a watch for his wife and
thus he remembered the RADO advertisement which he had seen several days ago.

Learning

Learning comes only through experience. An individual comes to know about a product and
service only after he/she uses the same. An individual who is satisfied with a particular
product/service will show a strong inclination towards buying the same product again.

Beliefs and Attitude

Beliefs and attitude play an essential role in influencing the buying decision of consumers.
Individuals create a certain image of every product or service available in the market. Every
brand has an image attached to it, also called its brand image.

Consumers purchase products/services based on their opinions which they form towards a
particular product or service. A product might be really good but if the consumer feels it is
useless, he would never buy it.

47
CHAPTER 8.7

Role of Consumer Behaviour in Advertising

Marketers need to understand the buying behaviour of consumers while designing their
advertisements for the desired impact. Advertisements play an essential role in creating an
image of a product in the minds of consumers. Advertisements must be catchy and
communicate relevant information to consumers.

Understanding the needs of the consumer is really important when it comes to creating the
right advertisement for the right audience. Remember it is only through advertisements;
individuals are able to connect with your brand.

Identify your target audience. The advertisement in some way must touch the hearts of the
end-users for them to buy the product.

It is really essential to show what the consumers like. Meet your target audience and find out
what they expect from your product and brand on the whole. Do not show anything which
might offend any religious group or community. Make sure the message is relevant and crisp.
Overload of information nullifies the effect and the advertisement might go unnoticed. Dont
try to confuse the consumers. They will never buy your product. Understand their
psychologies well.

The advertisement must show what the product is all about. It should, in a way give some
kind of information about its price, benefits, usage, availability and so on.

Consumers perceive Women Horlics as a health and energy drink which is a must for all
working women as well as expecting mothers for their overall well -being. A Horlics
advertisement with a male model does not make sense as the target audience would never be
able to connect with the product. A lean and inactive office going female drinking Womens
Horlics and thereafter beaming with energy and confidence would be the ideal concept for the
advertisement. Through advertisements, the company actually tries to win over the
confidence of consumers who would not mind spending on their product.

A Tag Heuer, Omega, Mercedes, I phone advertisement ought to be classy for people to
recognize these products as status symbols. Use expensive props, unique concepts and well
known faces for all premium and exclusive brands.

Advertisements meant for younger people (college goers, young professionals) ought to be
colourful and trendy for them to be able to relate themselves with the product. Serious
advertisements do not go very well with the youngsters. It is essential to understand the
mindsets, attitudes and preferences of target audience.

48
Advertisements for insurance plans, medical benefits, hospitals ought to be sensible as they
convey much serious information and target a mature segment of individuals altogether.

The time slot of commercials also needs to be taken care of. Advertisements for products
meant for children should ideally be aired during afternoon or early evening hours as this is
the time when they watch maximum television. Understand the lifestyle of your target
audience. Prime time commercials are the ones which are viewed by maximum people.

Choose the right theme for your advertisement. The advertisements ought to create the need
among the consumers for them to buy the product. Commercials ought to give complete
information to the consumers. All tobacco and alcohol commercials must show the warning
message.

49
CHAPTER 8.8

Role of Family in Consumer Behaviour

No two individuals have same buying preferences. The buying tendencies of individuals vary
as per their age, need, income, lifestyle, geographical location, willingness to spend, family
status and so on. An individuals immediate family members play an essential role in
influencing his/her buying behaviour.

An individual tends to discuss with his immediate family members before purchasing a
particular product or service. Family members might support an individuals decision to buy
a particular product, stop him for purchasing it or suggest few other options.

Family comprises of:

Parents

Siblings

Spouse

Grandparents

Relatives (Cousins/Aunts, Uncles etc)

What an individual imbibes from his parents becomes his/her culture. In countries like India,
where children are supposed to stay with their parents till the time they get married, the
influence of parents on an individuals buying decisions can not be ignored. What he sees
from his childhood becomes his habit or in other words lifestyle. A female from an orthodox
background would prefer salwar suits, saris instead of westerns or short outfits. In India,
parents expect their children to dress up in nice, colourful outfits during marriages, festivals
or other auspicious occasions. Even if children want to buy something else, their parents
would always prompt them to buy traditional attire, thus influencing their buying decision.

The moment an individual enters into wedlock, his/her partner influences his buying
decisions to a great extent. In most families, wife accompanies her husband for shopping be it
grocery, home appliances, furnishings, car etc.An individual would always discuss with
his/her partner before any major purchase. After marriage, individuals generally do not like
spending on himself/herself; rather they do it for their partner or family.

A young bachelor would not mind spending on alcohol, attending night parties, casinos but
the moment he has a wife at home, he would instead spend on household and necessary
items. No bachelor likes to invest money on mutual funds, insurance policies, mediclaimsetc
but for someone who is married buying an investment plan becomes his first priority. Women
generally are inclined towards buying toiletries, perfumes, dresses, household items,
furnishings, food products while men would rather love to spend on gadgets, cars, bikes,
alcohol etc.Both have different tastes but when they come together, they mutually decide on
what to buy and what not to buy.

50
A Bachelor would never purchase Womens Horlicks or Kelloggs K special or a female
perfume but when he has a wife at home; he would love to purchase them for his wife. A
young girl who has never purchased shaving creams or mens perfume all through her life for
herself would not mind purchasing for her husband, father or father in law. A working
woman would have different needs as compared to a housewife. A woman who goes to office
would prompt her husband to buy formal trouser and shirt, office bag, make up products etc
for her while a house wife would not like spending on all these as she does not require an
office bag and so on.

Children also influence the buying decisions of individuals. An individual spends happily on
toys, candies, ice creams, chocolates. sweets when he has children at home. Children in the
family prompt their parents to subscribe to Disney Channel, Cartoon network and so on.

Individuals do not mind spending on medicines, health supplements, vitamin tablets, protein
drinks if they have ailing parents at home.

51
CHAPTER 8.9

4 WAYS CONSUMER BEHAVIOR IS SHAPING RESTAURANT

INDUSTRY DEMANDS (AND OTHER INSIGHTS FROM THE 19TH
ANNUAL RESTAURANT INDUSTRY CONFERENCE)
With demands for fairness, transparency and accountability when dealing with employees,
customers and society-at-large, there are major influences shaping the restaurant industry.

At the 19th Annual UCLA Extension Restaurant Industry Conference, leaders in brand
development, food service design innovation, operational excellence, market analysis and
customer satisfaction explored the demands for high-quality ingredients, local sourcing,
healthful menus, natural and minimally processed food, and sustainability.

In a series of mini presentations, structured like TEDx Talks, Steven Goldstein of The
Culinary Edge spoke about current culinary trends, Fred LeFranc of Results Thru Strategy
and Chef & Author Andrew Hunter discussed the guestsjourney, and Darren Tristano of
Technomic tackled the future of eating local.

Current Culinary Trends (and How Society Is Shaping Them)

Understanding the forces that create change in consumer behavior, both inside and outside of
the restaurant industry, is of the utmost importance in understanding restaurant consumers
needs. Consumers today are overwhelmed with choices. We can get what we want from
where we want, when we want it. We dont need anything new, and if another restaurant in
the U.S. never opened, we would not run out of choices or go hungry. With this freedom of
choice, we live in a society that Steven Goldstein deems democratized consumerism
because consumers are involved in the process of where they go.

Steven proposed four hypotheses:

1. We live in a share economy which creates economic democratization.

There is a new form of capitalism, and commerce has shifted. Lyft has transformed the
traditional taxi service, FlightCar is changing the rental car industry, EatWith allows
consumers to open a restaurant in their home, sell tickets and make social connections,
Yerdle is the new pawn shop 2.0, and Hoffice is creating a collective work environment by
bringing people into your home and increasing productivity. Consumers are now hosts,
competitors, collaborators, industry peers, influencers and experience sharers.

2. We are redefining local community democratization and, in many ways, moving

backwards as we move forward.

The term local has shifted in meaning. Ten years ago, the term was used to describe where
you were from. Now, it is about how we shop or eat. With companies like Good Eggs
bringing the farmers market to the online grocery store, Sprig delivering restaurant-quality
healthy meals to the home, Local Food Lab being an online community for farmers to

52
startupbusinesses, and Culinary Backstreets offering local food tours through cities, local
today is more than where your food is from. It represents ones location, lifestyle, ideology
and positioning.

3. There is a new definition of urban, resulting in lifestyle democratization.

Urban is in. There is a desire to be cosmopolitan and a yearning for centers for gathering. The
Tampa Waterfront 20/20 in Florida is Americas first crowdsourced neighborhood. Pinewood
Social in Nashville, Tennessee is a space for social gathering that can accommodate needs
morning, noon and night from coffee and meals to bowling, swimming and karaoke. Chefs
have moved to Oklahoma City, Sacramento, Indianapolis and other cities where there is a
need. And they are serving food that can be found in major cities like Los Angeles and New
York. Urban is redefining how we live.

4. The anti-chain is the future of democratization.

Labels are less in vogue. Tastemakers seek the unknown. They want to be individualistic and
find the one-off.Hotels like Soho Grand, AC Hotels and Moxy Hotels offer affordable
luxury. People dont want name brands. They dont want to stay where their parents and
grandparents stay. The idea is that it is cool to be different. Brands are a reflection of the
people who are using them.

Steven Goldstein concluded that as the consumer has more options with brands vying for
their attention, a restaurant must evolve and differentiate themselves. The question is: How
can experiential value be created as opposed to monetary value? There is a need to build
empathetic, social currency into brands.

The Guests Journey: How to Really Walk the Talk

How does a brand remain relevant in an ever changing world? We live in what Fred LeFranc
calls a white water world, where things are constantly changing. As a result, a company has
to be nimble.

Businesses cannot control a brand; they can only influence it. A companys brand vision is
intangible and the tangible aspects of the business are the marketing, financial market, the
concept execution and the culture. And it is the culture that is the secret weapon. The
leadership, values, clarity, rewards and transparency are what make a business unique.

Dining is a sensory experience, a combination of senses taste, smell, touch, see, hear
that together make the meal delicious. A restaurant model works if people are fully
engaged in the business. If the customers experience is a by-product of financial targets and
operating mechanics, it will face immense challenges. An enlightened restaurant will set a
clear vision and brand strategy and then redefine the guests journey and change the
organization to match it.

53
The Future of Local

Technomic did a study that reveals how consumers define the term local,finding that
consumers report seeing more local foods in restaurants, and 57% of consumers say they seek
out restaurants offering locally sourced products at least sometimes.

Consumers are aware of and place value on locally sourced products in restaurants. Using
local products is not only fresher, it also supports local businesses. Where restaurants can see
growth opportunities is in targeting menu items and positioning in the consumers mind.

54
 CHAPTER: 9

ANALYSIS AND
INTERPRETATION

55
 TABLE 2

1. Age group of respondents (in years)

Number Of
Sr.No. Age Group Percentage (%)
Respondents
1 18 TO 25 37 37
2 26 TO 35 31 31
3 36 TO 45 15 15
4 46 & ABOVE 17 17
TOTAL 100 100

56
 CHART 1

Age group of respondents ( in years)

40

35

p 30
e
r 25
c
e 20
n
AGE GROUP
t 15
a
g 10
e
5

0
18 TO 25 26 TO 35 36 TO 45 46 & ABOVE
( in years)

From the above chart 37% of respondents come under the age group of 18 to 25 years. 31%
of respondents come under the age group of 26 to 35 years. 15% of respondents come under
the age group of 36 to 45 years. Remaining 17% of respondentscome under the age group of
46 & above.

So from the above chart we can say that majority of respondents comes under the age group
of 18 to 35 years.

57
 TABLE 3

1. Income of respondents (INR per month)

Income Group Number Of Percentage
Sr.No.
(INR per month) Respondents (%)
LESS THAN
1 3 3
20000
2 21000 to 40000 62 62
3 41000 to 80000 25 25
4 81000 and above 10 10
TOTAL 100 100

58
 CHART 2

Income of respondents (INR per month)

INCOME GROUP (INR per month)

p 70%
e
60%
r
c 50%
e 40%
n
30% INCOME GROUP (INR per
t
month)
a 20%
g 10%
e
0%
LESS THAN 21000 TO 41000 TO 81000 AND
20000 40000 80000 ABOVE
Income (INR per month)

62% of respondents earn income ranging 21000 to 40000 per month. 25% of respondents
earn income ranging 41000 to 80000 per month. 10% of respondents earn income around
81000 and above per month. 3% of respondents earn income less than INR 20000 per month.

59
 TABLE 4

1. Family size of respondents

Family Size (no. of Number Of Percentage

Sr.No.
members) Respondents (%)

1 2 TO 4 71 71%
2 5 TO 8 26 26%

3 9 and above 3 3%

TOTAL 100 100%

60
 CHART 3

Family size of respondents

FAMILY
SIZE
p
e 80%
r
c 60%
e
40%
n
t 20% FAMILY SIZE
a
0%
g
2 TO 4 FAMILY SIZE
e
5 TO 8
9 AND ABOVE
number of members

71% of respondents have family size of 2 to 4 peoples. 26% of respondents have family size
of 5 to 8 peoples. 3% of respondents have family size of 9 people and above

61
 TABLE 5

1. How often do you visit restaurants?

Sr. No Types No. of respondents Percentage (%)

DAILY
1 5 5

2
WEEKLY 30 30

3 MONTHLY
65 65

TOTAL
100 100

62
 CHART 4
How often do you visit restaurants?

VISIT IN
RESTAURANTS
5%

30% DAILY
WEEKLY
MONTHLY
65%

As per the survey around 65% of respondents do visit restaurants in a month. 30% of
respondents visit on weekly basis. 5% of respondents visit on daily basis.

63
 TABLE 6

2. Which of the following type of cuisine you prefer in restaurants?

Sr. No Types No. of respondents Percentage (%)

1 INDIAN 52 52

2 CHINESE 26 26

3 CONTINENTAL 5 5

4 AMERICAN 14 14

5 OTHER 3 3

TOTAL 100 100

64
 CHART 5
Which of the following type of cuisine you prefer in restaurants

CUISINE
TYPES
p 60%
e
50%
r
c 40%
e 30%
n 20%
t CUISINE TYPES
a 10%
g 0%
e

types of cuisines

52% of respondents prefer Indian cuisines followed by Chinese cuisine with 26% as it is 2 nd
most likely food. 14% of respondents prefer American cuisine. Others which are 3% are
Mexican & Italian.

From the above chart we can say that majority of respondents do prefer Indian food. So
restaurants should focus on Indian dishes.

65
 TABLE 7

3. What is the main reason you prefer to visit the same restaurant again?

No. of Percentage
Sr. No Reasons Family Size (no. of members)
respondents (%)
9&
2 TO 4 5 TO 8
ABOVE
1
FOOD 23 6 2 31 31

2
AMBIENCE 16 3 3 22 22

3
MENU 8 3 1 12 12

4
11 2 2 15 15
SERVICE
5
13 4 2 20 20
TASTE

TOTAL 100 100

66
 CHART 6

What is the main reason you prefer to visit the same restaurant again

TASTE 20%
13

SERVICE 11%
11

9 & ABOVE
MENU 12%
8 5 TO 8
2 TO 4
AMBIENCE 22%
16

FOOD 31%
23

0 5 10 15 20 25

From the above chart 31% of respondents gave preference to food among which majority of
nd
the family size was 2 to 4 followed by ambience which was the 2 most important factor
rd
contributing to 22%. Taste was the 3 important factor. The other factor like menu which
contributed to 12% and service which contributed to 15%. Surprisingly from the chart we
can say that for a family size of 9 & above the respondents prefer ambience as compared to
food.
So ambience plays a vital role for a family size of 9 & above as compared to food.

67
 TABLE 8

4. According to you what is the main reason for restaurant failure?

Sr. No Reasons No. of respondents Percentage %

1 FOOD 32 32

2 AMBIENCE 8 8

3 MENU 6 6

4 48 48
PRICE

5 ALL OF THE 6 6
ABOVE

TOTAL 100 100

68
 CHART 7
According to you what is the main reason for restaurant failure

Reasons
all of the above

price

menu

reasons
ambience

food

0% 10% 20% 30% 40% 50% 60%

in percentage

According to survey around 48% of respondents believed that success or failure of restaurant
is upon the price of the service as India is a country which is price conscious. Followed by
food which accounted to 32%. Ambience accounted to 8% and menu accounted to 6%. There
were 6% of respondents who believed all the factors are necessary for the success of
restaurant.

69
As price plays a vital role in deciding to success or failure of restaurants it all depends on the
income group of the respondents.

TABLE 9

Income group (with relation to its price range)

INCOME
PRICE NUMBER OF
SR. NO GROUP (INR per PERCENTAGE %
RANGE RESPONDENTS
month)

1 0 TO 40000 LOW 82 82

2 41000 TO 80000 MEDIUM 16 16

3 80000 & ABOVE HIGH 2 2

TOTAL
100 100

70
 CHART 8

Income group (with relation to its price range)

INCOME GROUP (INR per month)

100%
80%
60%
40%
20%
0% INCOME GROUP (INR per
O TO month)
41000 to
40000(LOW 81000 and
80000
PRICE above (HIGH
(MEDIUM
RANGE) PRICE
PRICE
RANGE) RANGE)

82% of respondents prefer to visit restaurants with a low price range ranging in income group
0 to 40000 INR per month. 16% of respondents prefer to visit restaurants with a medium
price range ranging in income group of 41000 to 80000 INR per month. 2% of respondents
prefer to visit restaurants with a high price range ranging to income group of 81000 INR &
above.

So majority of respondents are price sensitive the restaurants should focus on their price.
They should keep price as per their value of service.

71
 TABLE 10

5. Which of the restaurant will you prefer to go?

Income Group (INR No. of

Sr. No Types Percentage
Per Month) respondents

1 81000 & ABOVE 5 5%

5 STAR

2 4 STAR 81000 & ABOVE 18 18%

3 3 STAR 41000 TO 80000 23 23%

4 0 TO 40000 54 54%
GENERAL

TOTAL 100 100%

72
 CHART 9
Which of the restaurant will you prefer to go

60%

50%
40%

30%

20%

10%
0%

4 STAR & 5 STAR

(81000 & ABOVE) 3 STAR (41000 TO
80000 PER MONTH) GENERAL (0 TO
40000 PER MONTH)

TYPES OF
RESTAURANTS

54% of respondents prefer to go in general restaurants which are affordable as well as

majority of respondents comes under salary of 21000 to 40000 per month. As in CBD
Belapur area respondentsresponded to go to hotel vishvanath as it is affordable. 23%
of respondents prefer to go to 3 star restaurant to get a good dining experience. The
respondents who prefer to go in 4 star and 5 star restaurants are due to status and
standard in society.
From the above chart we can say that as majority of respondents do visit general
restaurants so it would be easy for a new coming restaurant to know the market. So to
open general restaurant in CBD Belapur area it wont be a bad decision for restaurant
owner.

73
 TABLE 11

6. If taste of food is important what kind of food taste you prefer?

Sr. No Types No. of respondents Percentage (%)

1 SPICY 71 71

2 19 19
LESS SPICY

3 10 10
SWEET

TOTAL 100 100

74
 CHART 10
If taste of food is important what kind of food taste you prefer

TASTE
80%
70%
60%
50%
40%
30% TASTE
20%
10%
0%
SPICY
LESS SPICY
SWEET

From the above chart 71% of respondents prefer to have spicy food whereas 29% of
respondents prefer to have less spicy food or sweet food.
From this survey we can conclude that as majority of respondents prefer to have spicy
food so changes in menu can be done in form of creating new dishes which are spicy.
This analysis will help in forming the menu of the restaurant.

75
 TABLE 12
7. If ambience is important what you expect from ambience?

Sr. No Types No. of respondents Percentage(%)

1 MUSIC BANDS 26 26

2 45 45
SURROUNDINGS

3 EMPLOYEES 29 29
SERVICE

TOTAL 100 100

76
 CHART 11

If ambience is important what you expect from ambience

TYPES
MUSIC BANDS SURROUNDINGS EMPLOYEE'S
SERVICE

29% 26%

45%

45% of respondents agreed that surrounding plays a vital role in deciding the ambience of the
restaurant as people enjoy spending time in restaurant that has good surrounding. 29% of
respondents agree employee service plays a vital role as they create value for restaurant. 26%
of respondents agree that music bands are important to create ambience. When question
asked to them which restaurant will you go in CBD Belapur where you can enjoy music
shows? The answer was the line of restaurants which are in PUB STREET in CBD Belapur.

From the above chart we can see that as majority of respondents expect good surroundings.
So restaurant should plan or improve their surroundings to attract more customers.

77
 TABLE 13

8. What style of Restaurant would you prefer?

Sr. No Types No. of respondents Percentage(%)

1 Traditional 22 22

2 Homely 27 27

3 33 33
Modern

4 11 11
Concept/Theme

Mixed
5 Traditional and 7 7
Modern
TOTAL 100 100

78
 CHART 12
What style of Restaurant would you prefer

TYPES

7% TRADITIONAL
22%
11% HOMELY

MODERN

CONCEPT/THEME
33%
27% MIXED TRADITIONAL
&
MODERN

33% of respondents like the modern style of restaurant. Followed by home-made accounting
to 27%. 22% of respondents like traditional restaurants. The remaining respondents who like
concept and mixed traditional and modern are those people who want something
extraordinary from other restaurants. During survey when asked about theme restaurant in
CBD Belapurrespondents responded to visit restaurant called The Barbeque Nation

79
With the help of style of restaurant one important factor which takes place is the family size
and age group of respondents.

When family size takes place it describes the number of family members do visit a particular
style of restaurant.

TABLE 14

STYLE OF RESTAURANT (WITH REFERENCE TO FAMILY SIZE)

Style Of Family Size (no. of members)

Sr. No
Restaurant
2 TO 4 5 TO 8 9& ABOVE

1 TRADITIONAL 11 13 2

2 HOMELY 2 1 0

3 MODERN 46 8 1

4 CONCEPT 11 3 0

MIXED
5 TRADITIONAL 1 1 0
& MODERN

3
TOTAL 71 26

80
 CHART 13

STYLE OF RESTAURANT (WITH REFERENCE TO FAMILY SIZE)

9 & ABOVE
TRADITIONAL
m
n
e
o HOMELY
m
.
b 5 TO 8
MODERN
e
o
r
f CONCEPT
s
2 TO 4
MIXED TRADITIONAL
&
MODERN
0% 20% 40% 60% 80% 100%
in percentage

As per the above chart, majorityof respondents visit modern restaurants with a family size of
2 to 4 members. When family size is of 5 to 8 and above 9 respondents visit traditional
restaurants.

From the above chart we can say that family size more than 9 members dont prefer to go to
homely, concept as well as mixed traditional & modern restaurants. They prefer to go to
traditional restaurants.

81
When age factor takes place it shows the age group of respondents who visits the restaurants.

TABLE 15

STYLE OF RESTAURANT (WITH REFERENCE TO AGE GROUP)

Age Group (in years)

Style Of
Sr. No Restaurant
46 &
18 TO 25 26 TO 35 36 TO 45
ABOVE

1 TRADITIONAL 9 10 8 13

2 HOMELY 0 2 3 1

3 23 13 4 2
MODERN

4 5 5 0 1
CONCEPT

MIXED
5 TRADITIONAL 0 1 0 0
& MODERN

TOTAL 37 31 15 17

82
 CHART 14

STYLE OF RESTAURANT (WITH REFERENCE TO AGE GROUP)

a
g 46 & ABOVE (17%)
TRADITIONAL
e
HOMELY
i 36 TO 45 (15%)
n
MODERN
26 TO 35 (31%)
y
e CONCEPT
a
18 TO 25 (37%)
r MIXED TRADITIONAL
s &
MODERN
0 10 20 30 40
in percentage

As per the above chart majority of respondents do visit modern restaurants from age group of
18 to 35 years. After the age of 36 years the preference changes to traditional as well as
homely restaurants.

So restaurant should think of long term planning that the customers who visit normal
restaurants should not switch to traditional restaurants.

83
 TABLE 16

9. How would you prefer the food to be served?

Sr. No Types No. of respondents Percentage(%)

1 SIMPLE 43 43

2 8 8
CRAFTED

3
FLAVOURFUL 49 49

TOTAL 100 100

84
 CHART 15
How would you prefer the food to be served

TYPES
i
n 50%
45%
p 40%
e
35%
r
30%
c TYPES
25%
e
n 20%
t 15%
a 10%
g 5%
e 0%
SIMPLE CRAFTED FLAVOURFUL

49% of respondents believed that flavours play a vital role. 8% of people believe that food to
be crafted for eye appealing. 43% of people believe that food should be simple.

85
 TABLE 17

10.What is the main reason you visit restaurant?

Sr. No Reasons No. of respondents Percentage(%)

1 TO INVITE 12 12
SOMEONE

2 TO EAT GOOD 33 33
FOOD

3 TO EAT 9 9
SOMETHING
DIFFERENT
DONT WANT
4 TO COOK AT 13 13
HOME
5 TO SPEND 27 27
LEISURE TIME

6 FOR SPECIAL 6 6
EVENTS

TOTAL 100 100

86
 CHART 16

What is the main reason you visit restaurant

REASONS
FOR SPECIAL
EVENTS
TO SPEND LEISURE TIME

DONT WANT TO COOK AT HOME

TO EAT SOMETHING DIFFERENT

REASONS

TO EAT GOOD FOOD

TO INVITE SOMEONE

0% 5% 10% 15% 20% 25% 30% 35%

in percemtage

33% of respondents go to restaurants to have good food. 27% of respondents go to restaurant

for leisure time with friends or families. There were 13% of people who didnt want to make
food at home for some time. So for a change they visit restaurant.

So from the chart we can say that majority of respondents prefer to have good food. So the
restaurant or the chef can decide or plan more about dishes, taste of food.

87
 TABLE 18
11.What would attract you to try a new restaurant?

No. of
Sr. No Reasons Percentage (%)
respondents

1 RECOMMENDATIONS 14 14
BY RELATIVES
2 REVIEWS ON 11 11
INTERNET/MAGAZINES
3 CLOSE LOCATION 10 10
FROM WHERE I LIVE
TO DISCOVER
4 DIFFERENT KIND OF 8 8
CUISINE
5 SETTING, 7 7
DECORATION
6 MENU OPTIONS 5 5
7 AFFORDABLE PRICES 13 13
8 ADVERTISEMENTS 23 23

9 TO DISCOVER NEW 9 9
PLACES
TOTAL 100 100

88
 CHART 17

What would attract you to try a new restaurant

REASONS

TO DISCOVER NEW
PLACES
ADVERTISEMENT
S
AFFORDABLE
MENU OPTIONS
PRICES
SETTING,
DECORATION REASONS
TO DISCOVER DIFFERENT KIND OF
CLOSE LOCATION FROM WHERE I
LIVE
REVIEWS ON INTERNET/MAGAZINES
RECOMMENDATIONS BY RELATIVES
0% 5% 10% 15% 20% 25%
in percentage

23% of respondents say that advertisements create awareness about the restaurant and
through advertisements they come to know about offers in restaurants. 14% of respondents
get idea about restaurant through relatives as these people are word of mouth for the
restaurant. 13% of respondents believe that if price is affordable they will surely visit that
restaurant.

So from the chart we can say that advertisements play a vital role to attract customers. This
would help a new comer to enter into restaurant competition as well as to create awareness
about his restaurant.

89
 TABLE 19

Reasons why consumers visit restaurants (with reference to age group)

Age Group (In Years)

Sr. No Reasons 36 TO 46 &
18 TO 25 26 TO 35
45 ABOVE

1 RECOMMENDATIONS 1 3 3 7
BY RELATIVES
2 REVIEWS ON 3 6 1 1
INTERNET/MAGAZINES
3 CLOSE LOCATION 0 1 4 5
FROM WHERE I LIVE
TO DISCOVER
4 DIFFERENT KIND OF 5 1 2 0
CUISINE
5 SETTING, DECORATION 2 0 1 4

6 MENU OPTIONS 4 0 1 0

7 7 5 1 0
AFFORDABLE PRICES
8 ADVERTISEMENTS 9 13 1 0

9 TO DISCOVER NEW 6 1 1 1
PLACES
TOTAL 37 31 15 17

90
 CHART 18

Reasons why consumers visit restaurants (with reference to age group)

RECOMMENDATIONS
BY
RELATIVES
a REVIEWS ON INTERNET/
46 & ABOVE (17%) MAGAZINES
g
e CLOSE LOCATION FROM WHERE
I
36 TO 45 (15%) LIVE
i TO DISCOVER DIFFERENT KIND
n OF
CUISINE
SETTING,
y 26 TO 35 (31%) DECORATION
e MENU OPTIONS
a
r
AFFORDABLE PRICES
s 18 TO 25 (37%)
ADVERTISEMENT
0 10 20 30 40 S
in percentage TO DISCOVER NEW
PLACES

According to the above chart most of the respondents gets attracted from the advertisement
from the age group of 18 to 35 years followed by price constraint as respondents visit
restaurant because of its affordable price. Reviews from internet/ Magazines are maximum in
the age group of 18 to 35.

Surprisingly the reason to visit restaurant changes from the age of 36 as respondents visit
restaurants because of recommendations by relatives.

So it would help the restaurants to target audience according to their age either be
advertisement or word of mouth.

91
 Table 20

12.Would you prefer to spend money on only those restaurants that offer
tasty food but no other frills?

Sr. No Types No. of respondents Percentage(%)

1 YES 8 8

2 NO 92 92

TOTAL 100
100

92
 CHART 19

Would you prefer to spend money on only those restaurants that offer tasty food
but no other frill

TASTY FOOD BUT NO

FRILL YES NO

8%

92%

92% of respondents dont believe in spending money on restaurants that have tasty food but
no frills. Whereas 8% of people believe this fact. This happens due to family size of the
respondents.

93
 TABLE 21

Tasty food but no frill (with reference to family size)

Number Of Respondents
Family Size (no.
Sr. No
of members)
Yes No

7 37
1 2 TO 4

2 5 TO 8 52
1

3 3
9 & ABOVE 0

TOTAL 8 92

94
 CHART 20

Tasty food but no frill (with reference to family size)

100%
90%
p 80%
e
70%
r
c 60%
e 50%
n NO
t 40%
YES
a 30%
g
20%
e
10%
0%
2 TO 4 5 TO 8 9 & ABOVE
family size( no. of members)

As per the above chart family size of 2 to 4 shows less amount of respondents who want
tasty food with frills. But the number decreases as the family size increases and it becomes 0
when the family size is 9 & above.

This shows that majority of respondents give more preference to taste. So it gives an idea to
chef and restaurant manager to focus only on taste to attract more customers.

95
 TABLE 22

13.Would you prefer to spend money on only those restaurants that offer
good ambience & good dining experience?

No. Of Respondents
Income Group
Sr. No
(INR Per Month)
Yes No

0 3
1 LESS THAN 20000

2 21000 to 40000 38 24

3 41000 to 80000 25 0

4 10
81000 & above 0

73
Total 27

96
 CHART 21

Would you prefer to spend money on only those restaurants that offer good
ambience & good dining experience

80000 & ABOVE 41000 TO 80000 21000 TO 40000 LESS THAN 20000

NO

YES

0 5 10 15 20 25 30 35 40
percentage

73% of respondents prefer to spend money on ambience and dining experience due to their
income. Whereas other 27% people dont feel necessary to spend money on ambience and
dining experience due to their income.

In the above chart income group of INR 80000 and above shows that they want a good
ambience with dining experience because they are paying more and they expect the same for
what they are paying to the restaurant.

So a restaurant should decide the target audience they are catering and accordingly they
should work on good ambience and dining experience.

97
 CHAPTER: 10

FINDINGS AND SUGGESTIONS

98
CHAPTER 10

FINDING AND SUGGESTIONS

1. From chart 5, as majority of respondents prefer Indian cuisine so restaurants and chefs
should focus more on Indian dishes as well new innovative Indian dishes can be
added to the assortment in the menu card.
2. From chart 6, majority of respondents gave importance to food as a reason to visit
same restaurant.But families with large number of members prefer ambience as a
primary reason to revisit the restaurant. So restaurants should focus on food as well as
ambience with consideration of family size.
3. From chart 7, majority of respondents agreed the reason of failure of restaurants is the
price. From chart 8, we can clearly see that majority of respondents come under the
salary group of INR 0 to 40000 per month. So the restaurant should use appropriate
pricing methods to cater to the above mentioned income group.
4. From chart 8, we observe that majority of respondents visit general restaurants. It
would be a profitable decision to open general restaurant in CBD Belapur.
5. From chart 10, we observe that majority of respondents prefer spicy food instead of
less spicy and sweet food items. So the menu can be modified by adding more spicy
dishes to attract customers& give existing customers a wider variety of choice.
6. From chart 11, it shows that surroundings play a vital role. So surroundings can be
improved by keeping it clean as well as comfortable to customers.
7. From chart 13, we see the family size of 2 to 4 members give more preference to
modern restaurant. But when family size increases it gradually shifts to traditional
restaurants. So for modern restaurant in order to attract large family size they should
take necessary steps.
8. From chart 14, we see that after certain point preference to modern restaurant
decreases due to age factor and gradually starts shifting to traditional restaurants. So
modern style restaurants should plan to hold their existing customers.
9. From chart 15, we observe that flavours play a vital role. So chef should concentrate
on improving and adding new flavours in their dishes.
10. From chart 16, we can conclude that respondents prefer to have good food. So
restaurant owner or chef can plan more dishes focusing on taste.
11. From chart 18, we identify the advertisement plays a more important role to attract
customers again. This is true for the customers in age group of 18 to 35 years.
However the customers above 35 years give more importance to recommendations by
relatives to make the same decision. This insight will help the restaurant owner to use
advertisements to target customers at age group of 18 to 35 years.
12. From chart 20,we observe thatmajority of respondents prefer taste of food instead of
adding frills. So theprimary focus should be on taste of the food.
13. From chart 21, when income increases the preference for good ambience and dining
experience also changes. So it is necessary for restaurant to identify their target
audience according to income group.

99
CHAPTER: 11

CONCLUSION

100
CHAPTER 11

CONCLUSION
CBD Belapur is considered as a commercial area. The restaurants in CBD Belapurcater to
people of all income groups. We see many western restaurants where many youngsters visit
to chill out. In CBD Belapur there are majority of people whocome underearning age
groupbut lower income group. So most of the people visit restaurants on weekly or monthly
basis as well as they visit general restaurants as compared with 3 star to 5 starrestaurants.
Majority of the family size comes under 2 to 4 members who prefer to visit modern
restaurants. So modern restaurants as well as general restaurants are lucrative businesses in
CBD Belapur area.

The people in CBD Belapur area prefer tasty& good food.Advertisements play a pivotal role
to attract the younger generationto revisit. Due to change in income group the preference
changes to good ambience and dining experience.

The restaurants in CBD Belapur area offer a variety of options to a diverse crowd. The
present analysis hopes to serve the restaurant owners with clarity on theconsumer behaviour
related to food taste & ambience in restaurants at CBD Belapur area.

101
 CHAPTER: 12

BIBLIOGRAPHY

102
 BIBLIOGRAPHY
ÿ A case study of shifting efficiency frontier in Indian service industry Shrinivasan, S
(2010), Indian Institute if Management, pp. 41
nd
ÿ Food and beverage service 2 edition, Andrew, S (2009) New Delhi pp. 166
ÿ Quotes about Restaurants, Chatna (2010), pp.32
rd
ÿ Restaurant
(2010) pp. management
61 customer, operation and employees (3 edition), Mill R
ÿ Understanding consumer involvement influence the consumer behaviour in fine
restaurants Peters, T The Business Review, (2012) pp. 155-160
ÿ Designing and repositioning food services for multicultural markets Verma R
Pullman, Cornell Hospitality Quarterly (1999), pp. 76-87
ÿ Consumer perception about fast food in Indian exploratory study Goyal A Singh N
British Food Journal (2007) pp. 182-195
ÿ The Intellectual Structure of Strategic Management Manag. J., Journal of
Operations Management (2008), pp. 319336Quarterly (1972), pp. 31332716,
2007 pp.2
ÿ Dineserve a tool of measuring service quality in restaurant, Knutsen, Steven P,Journal
in Marketing, (1995) pp. 56-60
ÿ Dineserve a tool for measuring service quality in restaurants Vanniarajan, T
Journal in Marketing Communication (2009), Volume 2 pp. 42-52
ÿ Odours and consumer behaviour in restaurant, Gue Guen and Petr C Hospitality
managementVolume 3 (2005) pp. 335
ÿ Does restaurant performance meet customers expectations? An approach Markovic
S Raspor (Tourism in Hospitality Management) (2010)
ÿ Assessment of restaurant service quality using a modified Dinserve pp. 181-185
ÿ Characteristics of organizational environments and perceived environmental
uncertainty, R.B. Duncan Administrative Science
ÿ The Restaurant-Failure Myth, Kerry Miller Bloomberg Journal

BOOKS
1. Marketing Management Kotler, Philip -Eleventh Edition, Pearson education, India

2. Research Methodology-Methods and Techniques, Kothari, C.R, New Age International (p)
limited, publishers, New Delhi

WEBSITES

https://www.smergers.com/industry-watch/indian-restaurant-industry/
http://www.managementstudyguide.com/what-is-consumer-behaviour.htm

103
CHAPTER: 13

ANNEXURE

104
 ANNEXURE

Questionnaire:

1. Age (in years)

o 18 to 25
o 26 to 35
o 36 to 45
o 46 and above
2. Salary (INR per month)
o LESS THAN 20000
o 21000 T0 40000
o 41000 TO 80000
o 81000 AND ABOVE
3. Family size ( no. of members)
o 2 to 4
o 5 to 8
o 9 and above

4. How often do you visit restaurants?

ÿ Daily
ÿ Weekly
ÿ Monthly

5. Which of the following type of cuisine you prefer in restaurants?

ÿ Indian
ÿ Chinese
ÿ Continental
ÿ American
ÿ Any other (please specify)

6. Which is the main reason you prefer to visit the same restaurant again?

ÿ Food
ÿ Ambience
ÿ Service

105
 ÿ Menu
ÿ Taste

7. According to you whichis the main reason for restaurant failure?

ÿ Food
ÿ Ambience
ÿ Service
ÿ Price
ÿ All of the above

8. Which of the restaurant will you prefer to go?

ÿ 5 stars
ÿ 4 stars
ÿ 3 stars
ÿ General

9. If taste of food is important what kind of food taste you prefer?

ÿ Spicy
ÿ Less spicy
ÿ Sweet

10. If ambience is important what you expect from ambience?

ÿ Music bands
ÿ Surroundings
ÿ Employees service

11. What style of Restaurant would you prefer?

ÿ Traditional
ÿ Homely
ÿ Modern
ÿ Concept/Theme
ÿ Mixed Traditional and Modern

12. How would you prefer the food to be served?

ÿ Simple
ÿ Crafted

106
 ÿ Flavourful

13. What is the main reason you visit restaurant?

ÿ To invite someone (friends, relatives, etc.)

ÿ To eat good food
ÿ To eat something different, (food you dont usually eat)
ÿ Do not want to cook at your residence
ÿ To spend leisure time
ÿ For special events (birthdays, Valentine's Day, anniversary, etc.)

14. What would attract you to try a new restaurant?

ÿ Recommendations by relatives (word of mouth)

ÿ Reviews on Internet/magazines
ÿ Close location from where I live
ÿ To discover a different kind of cuisine, original food
ÿ To discover new places
ÿ Menu options
ÿ If the setting, decoration appeal to me
ÿ Affordable prices, cheaper than other restaurants
ÿ Advertisements

15.Would you prefer to spend money on only those restaurants that offer tasty
food but no other frills?

ÿ Yes
ÿ No

16. Would you prefer to spend money on only those restaurants that offer good
ambience & good dining experience?

ÿ Yes
ÿ No

107