MAJOR PROJECT REPORT

ON
A Study on Customer Satisfaction Of Burger King

Submitted in partial fulfilment of the requirement of

BACHELORS OF BUSINESS ADMINISTRATION (BBA)

Guru Gobind Singh Indraprastha University, Delhi

Session 2021-22

Under the Guidance of Submitted By

Ms. Swati Sharma Mohit Ahuja
Assistant Professor BBA -VI Sem
Enrolment Number: 02425501719

JIMS ENGINEERING MANAGEMENT TECHNICAL CAMPUS

48/4 Knowledge Park III, Greater Noida-201306 (U.P.)
CERTIFICATE
DECLARATION

I hereby declare that this Summer Training Report titled A study on Customer Satisfaction Of
Burger King submitted by me to JEMTEC, Greater Noida is a bonafide work undertaken during
the period from _____to ________by me and has not been submitted to any other University
or Institution for the award of any degree diploma / certificate or published any time before.

(Signature of the Student) Date:

Name: Mohit Ahuja

Enroll. No.: 02425501719

II
ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to JEMTEC, Greater Noida for imparting us very
valuable professional training in BBA.

I pay my gratitude and sincere regards to Ms Swati Sharma, my project Guide for giving me
the cream of his knowledge. I am thankful to her as she has been a constant source of advice,
motivation and inspiration. I am also thankful to her for giving his suggestions and
encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and library
staff for providing me opportunity to utilize their resources for the completion of the project.

I am also thankful to my family and friends for constantly motivating me to complete the
project and providing me an environment, which enhanced my knowledge.

Date:

Name: Mohit Ahuja

Enrolment. No.: 02425501719

Course: BBA (VI - Sem)

III
Executive Summary
In today’s times, every main organisation wants to hold their customers for long term and for
that they need to ensure that their customers are always satisfies with their services and
products.

Customers derive satisfaction from a product or a service based on whether their need is met
effortlessly, in a convenient way that makes them loyal to the firm. Hence, customer
satisfaction is an important step to gain customer loyalty.
Organizations calculate the customer satisfaction score (CSAT), which is the average rating of
a customer’s responses, the net promoter score (NPS), which indicates the probability that a
customer refers a brand to another person, and the customer effort score (CES), which indicates
how easy it is for a customer to do business with a firm. The customer satisfaction metrics are
then used to estimate consumer behaviour.

Customer satisfaction is defined as a measurement that determines how happy customers are
with a company’s products, services, and capabilities. Customer satisfaction information,
including surveys and ratings, can help a company determine how to best improve or changes
its products and services.

An organization’s main focus must be to satisfy its customers. This applies to industrial firms,
retail and wholesale businesses, government bodies, service companies, non-profit
organizations, and every subgroup within an organization. Organizations should not assume
they know what the customer wants. Instead, it is important to understand the voice of the
customer, using tools such as customer surveys, focus groups, and polling. Organisation needs
to satisfy their customers as to increase their market capture and also sustain in market.The
importance of customer satisfaction does not discriminate. It can make or break the success of
any restaurant, regardless of its size, location, demographics, or even the quality of the cuisine.

“It’s not about what restaurants need to feel satisfied, it’s about what guests feel restaurants need
to do to satisfy them.”

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CONTENTS

S. No. Topic Page No.

1. Certificate I

2 Declaration II

3 Acknowledgement III

4 Executive Summary IV

5 Chapter-1: Introduction 1 – 17

6 Chapter-2: Company Profile 19 – 34

7 Chapter-3: Literature Review 35 – 40

8 Chapter-4: Research Methodology 41 – 44

9 Chapter-5: Data Analysis 45 – 59

10 Chapter-6: Findings 60 – 62

11 Chapter-7: Recommendations/ Suggestions 63 – 64

12 Chapter-8: Conclusions & Limitations of the study 65 – 66

13 References/Bibliography 67

14 Appendices 68 - 70
 CHAPTER – 1
INTRODUCTION

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Customers are the lifeblood of your business and if you can't keep them happy and loyal, it
won't matter how good your marketing is, how many leads you receive, or how well your
salespeople convert new customers.

Without focusing on keeping your customers happy and consistently improving customer
satisfaction, you'll struggle needlessly and your doors will be closed in no time.

Customer satisfaction may seem like an elusive term that's impossible to track or manage,
however, there are a number of factors that dictate whether or not your customers are happy,
and a variety of measurement tools consistently evaluate customer satisfaction in your business.

Now, what is Customer?

A customer is an individual or business that purchases another company's goods or services.

Customers are important because they drive revenues; without them, businesses cannot
continue to exist. All businesses compete with other companies to attract customers, either by
aggressively advertising their products, by lowering prices to expand their customer bases, or
by developing unique products and experiences that customers love.

Businesses often honour the adage "the customer is always right" because happy customers
are more likely to award repeat business to companies who meet or exceed their needs. As a
result, many companies closely monitor their customer relationships to solicit feedback on
methods to improve product lines. Customers are categorized in many ways. Most commonly,
customers are classified as external or internal.

External customers are dissociated from business operations and are often the parties
interested in purchasing the final goods and services produced by a company. Internal
customers are individuals or businesses integrated into business operations, often existing as
employees or other functional groups within the company.

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So, what is Customer Satisfaction?

Customer satisfaction is defined as a measurement that determines how happy customers are
with a company’s products, services, and capabilities. Customer satisfaction information,
including surveys and ratings, can help a company determine how to best improve or changes
its products and services.

An organization’s main focus must be to satisfy its customers. This applies to industrial firms,
retail and wholesale businesses, government bodies, service companies, non-profit
organizations, and every subgroup within an organization.

Factors Affecting Customer Satisfaction

1. Accessibility

2. Empathy

3. Language

4. Response Time

5. Convenience

6. Choices

7. Simplicity

8. Quality

9. Reasonable Prices

10. Appreciation

11. Loyalty Programs

12. Community

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1. Accessibility:

Have you made it easy for customers to interact with you to ask questions, voice concerns, or
get a problem solved? Or, do customers have to jump through a number of hoops, do an
extensive Google search, and pray to the gods of customer service that they can get a hold of
you?

While it may be unpleasant dealing with an unhappy customer, it's significantly worse dealing
with an unhappy customer who took 2 hours out of their day to track you down.

2. Empathy

Mistakes happen, and despite the old adage, the customer isn't always right… but if you'd like
to keep them as a customer, they must always be happy. You can ensure this by hearing them
out when they are upset, showing concern for the situation, and letting them know that you'll
do everything in your power to make it right.

3. Language

Every industry and company has its own "shop terms" and lingo that they use to describe what
they do and how they do it. Unfortunately, this insider language doesn't resonate with
customers.

They want to know that you understand their problem and have a solution for it. In order to
communicate that, you need to figure out what words they use when they talk about it.

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4. Response Time

We live in a fast-moving world. Customers expect products to arrive on their doorstep hours
after they order them, and questions to be answered within minutes (if not sooner!) of them
asking.

While many companies can't afford round-the-clock staff, away messages that contain answers
to FAQs and chatbots make it possible to interact with your customers on their time.

5. Convenience

Very few customers will go out of their way to do business with you. If you make it difficult
for them to browse, shop, schedule, or buy, they'll be looking for another company to provide
the solutions they need.

It's important to review your buyer's journey on a regular basis and see if any areas could be
tweaked to increase convenience.

6. Choices

Customers like to have options when it comes to purchasing. They want different colors, styles,
levels of services, and different methods for delivery. These choices help them feel in control
of their own buying experience.

7. Simplicity

While customers like having options, too many options can cause analysis paralysis and cause
your potential customer to give up before they finalize a purchase. As you design your products
and your processes, remember that a confused mind never buys.

8. Quality

Your customer service may be top-notch, but if your product is of poor quality, you won't have
a returning buyer. Make sure that you create the best possible product that customers can't live
without.

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9. Reasonable Price

There will always be low range, mid-range, and high range prices. If your products are of
superb quality and your customer service consistently wows, it's okay to charge more.

However, if you charge more than the market will bear, and more than your ideal customer can
afford, you'll price yourself right out of business.

10. Appreciation

Customers want to feel appreciated for doing business with you. You should have some sort of
follow-up procedure in place to say thank you. This can range from a quick email to a thank
you gift (depending on the value of the product or service), but will always let your customer
know that they are important to you.

11. Loyalty Programs

It's wonderful to offer incentives to new customers coming in, but what about the loyal
customers that have stuck with you from the beginning? Consider instituting some sort of
loyalty program where existing customers receive discounts, freebies, or access to special
content or products as a thank you for their continued support.

12. Community

The business relationship doesn't have to stop just because the credit card has been swiped. As
humans, we want to feel like we are a part of something bigger. Creating a community, whether
virtual or in-person, around your product, will help keep your customers engaged with your
brand.

Customer satisfaction is the state of mind that customers have about a company when their
expectations have been met or exceeded over the lifetime of the product or service. The
achievement of customer satisfaction leads to company loyalty and product repurchase. There
are some important implications of this definition:

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  Because customer satisfaction is a subjective, nonquantitative state, measurement
won’t be exact and will require sampling and statistical analysis.
 Customer satisfaction measurement must be undertaken with an understanding of the
gap between customer expectations and performance perceptions.
 There is a connection between customer satisfaction measurement and bottom-line
results.

“Satisfaction” itself can refer to a number of different facts of the relationship with a customer.
For example, it can refer to any or all of the following:

 Satisfaction with the quality of a particular product or service.

 Satisfaction with an ongoing business relationship.
 Satisfaction with the price-performance ratio of a product or service.
 Satisfaction because a product/service met or exceeded the customer’s expectations.

Each industry could add to this list according to the nature of the business and the specific
relationship with the customer. Customer satisfaction measurement variables will differ
depending on what type of satisfaction is being researched. For example, manufacturers
typically desire on-time delivery and adherence to specifications, so measures of satisfaction
taken by suppliers should include these critical variables.

Clearly defining and understanding customer satisfaction can help any company identify
opportunities for product and service innovation and serve as the basis for performance
appraisal and reward systems. It can also serve as the basis for a customer satisfaction survey
program that can ensure that quality improvement efforts are properly focused on issues that
are most important to the customer.

Measuring customer satisfaction may be a new concept to companies that have been focused
almost exclusively on income statements and balance sheets. Companies now recognize that
the new global economy has changed things forever. Increased competition, crowded markets
with little product differentiation, and years of sales growth followed by two decades of
flattened sales curves indicate to today’s sharp competitors that their focus must change.

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Competitors that are prospering in the new global economy recognize that measuring customer
satisfaction is key. Only by doing so can they hold on to the customers they have and
understand how to better attract new customers. Successful competitors recognize that
customer satisfaction is a critical strategic weapon that can bring increased market share and
increased profits.

The problem companies face, however, is exactly how to measure customer satisfaction and
do it well. They need to understand how to quantify, measure, and track customer satisfaction.
Without a clear and accurate sense of what needs to be measured and how to collect, analyze,
and use the data as a strategic weapon to drive the business, no firm can be effective in this
new business climate. Plans constructed using customer satisfaction research results can be
designed to target customers and processes that are most able to extend profits.

Too many companies rely on outdated and unreliable measures of customer satisfaction. They
watch sales volume. They listen to sales reps describing their customers’ states of mind. They
track and count the frequency of complaints. And they watch aging accounts receivable reports,
recognizing that unhappy customers pay as late as possible — if at all. While these approaches
are not completely without value, they are no substitute for a valid, well-designed customer
satisfaction survey program. It’s no surprise to find that market leaders differ from the rest of
their industry in that they have programs in place to hear the voice of the customer and achieve
customer satisfaction. In these companies:

 Marketing and sales employees are primarily responsible for designing (with customer
input) customer satisfaction surveying programs, questionnaires, and focus groups.
 Top management and marketing divisions champion the programs.
 Corporate evaluations include not only their own customer satisfaction ratings but also
those of their competitors.
 Satisfaction results are made available to all employees.
 Customers are informed about changes brought about as the direct result of listening to
their needs.
 Customer satisfaction is incorporated into the strategic focus of the company via the
mission statement.

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  Stakeholder compensation is tied directly to the customer satisfaction surveying
program.
 Internal and external quality measures are often tied together.
 A concentrated effort is made to relate the customer satisfaction measurement results
to internal process metrics.

To be successful, companies need a customer satisfaction surveying system that meets the
following criteria:

 The system must be easy to understand.

 It must be credible so that employee performance and compensation can be attached to
the final results.
 It must generate actionable reports for management.

Understanding differing Customer Attires

The most basic objective of customer satisfaction surveys is to generate valid and consistent
customer feedback (i.e., to receive the voice of the customer), which can then be used to initiate
strategies that will retain customers and thus protect one of the most valuable corporate assets
— loyal customers.

As it’s determined what needs to be measured and how the data relate to loyalty and repurchase,
it becomes important to examine the mind-set of customers the instant they are required to
make a pre-purchase (or repurchase) decision or a recommendation decision. Surveying these
decisions leads to measures of customer loyalty. In general, the customer’s pre-purchase mind-
set will fall into one of three categories — rejection (will avoid purchasing if at all possible),
acceptance (satisfied, but will shop for a better deal), and/or preference (delighted and may
even purchase at a higher price).This highly subjective system that customers themselves apply
to their decisions is based primarily on input from two sources:

 The customers’ own experiences — each time they experience a product or service,
deciding whether that experience is great, neutral, or terrible. These are known as
“moments of truth.”

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  The experiences of other customers — each time they hear something about a company,
whether it’s great, neutral, or terrible. That is known as “word-of-mouth.”

There is obviously a strong connection between these two inputs. An exceptional experience
leads to strong word-of-mouth recommendations. Strong recommendations influence the
experience of the customer, and many successful companies have capitalized on that link.

How does a customer satisfaction surveying program allow you to make the connection
between the survey response and the customer’s attitude or mind-set regarding loyalty?
Research conducted by both corporate and academic researchers shows a relationship between
customer survey measurements and the degree of preference or rejection that a customer might
have accumulated. When the customer is asked a customer satisfaction question, the customer’s
degree of loyalty mind-set (or attitude) will be an accumulation of all past experiences and
exposures that can be indicated as a score from 1 (very dissatisfied) to 6 (very satisfied).

Obviously, the goal of every company should be to develop customers with a preference
attitude (i.e., we all want the coveted preferred vendor status such that the customer, when
given a choice, will choose our company), but it takes continuous customer experience
management, which means customer satisfaction measurement, to get there — and even more
effort to stay there.

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What are the objectives of Customer Satisfaction?

Customer satisfaction is a top indicator of customer loyalty and it increases chances for repeat
sales. It not only brings down customer churn, it boosts positive word-of-mouth promotion.

When you provide good customer service, customer satisfaction rises. When your customers are
satisfied, they stick to your brand, and this ensures repeat sales. Satisfied customers buy more.

Happy, satisfied customers tell family and friends. This brings in more customers who are
assured of good customer service. This too boosts sales.

This is why customer satisfaction is important to every business.

Most online sales brands ask a customer after a recent purchase about how they liked the
shopping and delivery experience, including feedback on how they can improve their service.
Most of them also ask, on a scale of 1 to 10, how likely they are to recommend the brand to
family and friends. Similarly, inbound call centre services or call centre outsourcing
services ask callers how well their issue was resolved during that call. This is part of the
excellent customer service that those brands provide and goes into creating customer
satisfaction.

Increase customer utility: Call centre services surveys, feedbacks and reviews help businesses
understand what their customers like or do not like about their products or services. Viable and
practical suggestions can be taken up and incorporated to cater to the customers’ needs.
Customers respond to brands that are responsive.

Increase customer advocacy: Happy customers are great brand advocates. When businesses
cater to customers’ needs and aim for higher customer satisfaction, they are not only ready to
be associated with the brand more, but love to ask friends and family to try it out. Customer
satisfaction increases referrals.

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Increase profitability: Customer satisfaction increases sales and, hence, profitability. It is not
enough that your product or service or even an attractive price impresses customer. Once they
purchase your offering, they want efficient and swift after-sales support. Studies show that
customers drop a brand with even one negative experience.

Customer satisfaction is a crucial part in your business. Adopting ways to measure customer
satisfaction will help you determine where you stand now. Work your way forward from there.
It will make all the difference in your business bottom line.

How to Measure Customer Satisfaction??

There are six steps that must be included in the customer satisfaction measurement process to
yield satisfactory results.

1. Create A Plan

What’s the point of measuring customer satisfaction without a plan? None. You have to
create a plan and set up clear goals.

Collecting the data takes time and effort (both yours and your customers’). If you’re doing
it, make sure you have a purpose – there’s no reason to bother yourself (and your
customers) pointlessly.

The main goals you can specify are:

 improving the quality of your product or service,

 improving customer service quality,
 improving any other customer touchpoint (e.g., website navigation).

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2. Choose A Metric

A well-chosen measurement tool is half the battle. We’ve compiled a list of the best metrics
that will help you to understand clients’ opinions better and gauge their overall satisfaction.

What Types of Metrics Measure Customer Satisfaction?

NPS (Net Promoter Score)

Net Promoter Score is one of the most popular metrics that asks your customers how likely
they are to recommend your company to someone else.

With just one question, the NPS metric examines consumers’ emotional attachment to a
brand and shows whether their loyalty is strong enough to become regular clients at your
store.

How to Calculate NPS?

First, ask users to rate your business with a standard NPS question:

On a scale of 0 to 10, how likely are you to recommend [company name] to a friend or
colleague?

Second, categorize respondents into three groups based on their score:

 Promoters (9-10 answers) are considered loyal customers who are very likely to
recommend your products or services,
 Neutrals (7-8 answers) are considered uncertain clients who can either become your
promoters or move to your competitors,
 Detractors (0-6 answers) are unhappy and dissatisfied customers that are very likely
to turn their backs on your business and share their bad experience with others.

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Third, subtract the percentage of detractors (0-6 answers) from the percentage of
promoters (10-9 answers).

The score you receive will vary from -100 to 100. The higher the score is, the more likely
you’ll get a recommendation. A low NPS score (below 0) means that you should start
working on your customer satisfaction level.

CES (Customer Effort Score)

Customer Effort Score is another great customer satisfaction metric that allows you
to measure how easy it was for a customer to complete an individual action (e.g.,
ordering a product online or solving a problem using your product or service).

By analysing the last interaction, CES helps company owners to identify and overcome
shopping obstacles, that discourage further interactions, and predict customers’ future
behaviour.

CSAT (Customer Satisfaction Score)

Customer Satisfaction Score is yet another type of survey that measures customer
satisfaction with a product, service or a recent interaction with a particular brand. With
CSAT, respondents are asked to rate their experience on a standard 1-5 metric scale:

1. very unsatisfied,
2. unsatisfied,
3. neutral,
4. satisfied,

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 5. very satisfied.

80% of organizations choose CSAT as their primary customer experience metric. CSAT’s
real-time responses allow to investigate to what extent businesses meet customers’
expectations and if they don’t, what measures should be undertaken. In this sense, CSAT
focuses on customer retention.

3. Build A Survey

How to build a survey? With the simplest tool out there – Google Forms. It’s totally free,
easy to use and allows you to create a good-looking survey in 5 minutes.

Thanks to Google Form, you can set up forms with:

 open questions,
 questions of singular choice,
 checkboxes,
 linear scales,
 multiple choice grid.

You can easily drag & drop various elements and set up answers as required. After creating
a form, you can share it with your customers using a direct link (or send it via email).

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4. Choose Timing to Send Satisfaction Survey

Timing is essential. Depending on your goals, the satisfaction survey should be sent after a
specific point of customer’s interaction with your business:

 Immediately after an interaction with your customer service. This approach

allows you to measure customers’ satisfaction with your customer support. It’s
important to capture this feedback right after the interaction took place, while
it’s still fresh. Otherwise, people may forget how they felt.
 Sometime after customer’s purchase (the timing depends on the nature of your
product or service). With this approach, you’ll catch the feelings regarding your
product or service after some time of usage. Why should you wait? It’s simple –
because customers need some time to fully familiarize themselves with a product or a
service. This of course differs from industry to industry, but a good rule of thumb is
to give your customers some time.
 At different stages of the customer life cycle. This approach allows you to measure
how the customer’s satisfaction changes over time. The more touch points you’ll
examine, the more specific image of customer experience you’ll get.

And remember not to survey your customers too often because it’ll result in low response
rates.

5. Gather Survey Feedback and Analyse the Data

No analysing, no conclusion.

Analysing helps you discover business’ strengths and weaknesses. Gaining that
knowledge is the first step to improve the weaker areas.

When analysing business’ flaws, ask yourself these questions:

 at what customer touchpoint did the issues occur?

 which area of your business is the issue related to?
 what was the direct cause of the customer’s score

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  what are the easiest and most effective solutions you can implement?

After getting the answers, it’s time to…

6. Look for The Solutions and Improve Customer Satisfaction

The most important thing in the process is to NAME the issue. After doing it, looking for
solutions should be much easier.

It’s difficult to provide specific tips –it all relies on industry and which area needs to be
improved.

For example, if the issue is related to customer service, you could provide training to your
customer service employees and work on their customer service skills by shortening response
times.

Another great idea would be implementing live chat software to use it as a customer service
channel. For 79% of companies that have deployed the chatting tool on their website, it
resulted in increased customer loyalty, satisfaction, and revenue.

Back to the general – depending on the nature of the issue, here are some ideas on
looking for solutions:

There are limitless possibilities when looking for answers. Choose the solutions that’ll suit
your industry and business best.

 speak to your customer service or marketing department,

 ask on Facebook Groups associating business owners from your industry,
 Google it – there’s a big chance that thousands of business’ owners already had the
same problem,
 run an experiment, test, play with solutions,
 understand and track your brand’s funnel to know what makes your customers tick.

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CHAPTER – 2
COMPANY
PROFILE

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BURGER KING CORPORATION

Burger King Corporation is the second largest fast-food chain in the United States, trailing only
McDonald's. The company franchises more than 10,400 restaurants and owns about 1,000 for
a chainwide total exceeding 11,455, with locations in all 50 states and 56 countries. The
company serves 15.7 million customers each day and over 2.4 billion Burger King hamburgers
are sold each year across the globe. In the late 1990s and into the new millennium, Burger King
was plagued by falling sales and deteriorating franchisee relationships. Burger King's parent,
Diageo plc, sold the company to a group of investors led by Texas Pacific Group in late 2002.

Burger King Vision: To be the most profitable QSR business, through a strong franchise
system and great people, serving the best burgers in the world.

Burger King Mission: Offer reasonably priced quality food, served quickly, in attractive,
clean surroundings.

Burger King Values: Teamwork and family, excellence and respect.

Burger Kings Objectives: To serve their customers with the best meals and services that
a fast-food company could provide.

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History

The burger company was founded by David Edgerton and James Mclamore in the year
1954 when they saw the need to expand the stores that were started by Keith Kramer and the
wife’s uncle in Jacksonville. By 1967, they were already the second bestselling company after
the McDonalds, which came first. The history of Burger King is one that brought forth the
business of fast foods that are currently one of the bestselling enterprises in the world. They
became the first people to offer the dining room which also brought more customers into their
business.

By 1957 they had expanded their business and were already including the whopper which was
a special burger that brought more customers into their business. By this time, the prices were
relatively low as they were still trying to get more customers to purchase their products; a
burger cost eighteen cents while a whopper cost thirty-seven cents.

In 1959, they expanded their market beyond Florida and were now making more income as
there were more customers from other states and this is also a big step that helped
internationalize their business that was then catching up. They also started advertising their
business on television and radio stations that also made them get customers beyond the borders
of Florida. By 1961, the Burger King and the special one called whopper were already known
in the United States of America and most people had already tasted the burgers and the number
of customers had also grown.

By 1967, the Pillsbury Company bought Burger King Corporation for eighteen million dollars
and made to grow to become the second largest chain store that provided burgers behind the
McDonald Company, which was still very strong due to the large capital base they had and the
familiarity they had to their customers.

During the market wars between Coke and Pepsi in the year 1970, there was also a battle for
supremacy between the McDonald Company and the Burger King Corporation which was now
growing at a very fast rate. This is also the period in which the battle that saw ABC beat NBC
and CBS to become the most popular television station by then.

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In 1978, the Burger King Corporation poached the main executive director of the McDonald
Company into their company, and this saw them being able to agree on how the franchise will
be made between the two companies.

This forced the Burger King Company to reach out to children who they saw also as a potential
source of a large market that would use to counter the McDonald company that had already
dominated the adult market. Norman Brinker became the person who made what was known
as the Burger Wars to be experienced in the United States during that period. He had been
brought into Pillsbury during the time when they bought the company from McLamore and
Edgerton, who were the initial owners of the company but sold it off to Pillsbury.

Brinker worked for a short time in the company and left to build his own restaurant. The
absence of Brinker left the company in decline. Later on, the company changed the supplier of
its soft drinks from Pepsi to Coca-cola and this also made more customers come for their
burgers since most customers already preferred Coke to Pepsi.

In 1992, the company’s main headquarter in Miami was destroyed by hurricane but was later
made to be operation in the year 1997. In 1997, they also formed a partnership with Guinness
to form Diageo, which also made the company to decline since they mostly concentrated on
the alcoholic drinks leaving the burger.The company continued to decline until it was bought
by Goldman Sachs and Bain Capital for 1.5billion dollars and an IPO was launched in
2006 which generated $425 million in revenue. Since that time the company continued to
grow up to when it had a worth of $3.2 billion in 2010. This journey has made the Burger King
to be the business models of today.

Burger King’s Organisational Structure

Burger King’s organizational structure has changed through the years, especially because of
leadership and ownership transitions. A company’s organizational structure defines the
composition and system used for its business activities. Burger King must adjust its
corporate structure over time to address changes in its business environment. As one of the
biggest quick service/fast food restaurant chains in the world, Burger King has recently
improved its performance through reforms in its organizational structure.

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The company was reorganized as a result of its merger with the Canadian firm Tim Hortons in
2014. This reorganization led to major changes in Burger King’s organizational structure to
suit new strategies to grow the business globally.

Burger King’s organizational structure is based on a centralized approach that aims to establish
control and increase management effectiveness. Burger King has experienced growth
following reorganization, indicating the suitability of its current structure.

Features of Burger King’s Organizational Structure

Burger King has a centralized functional organizational structure. Burger King merged with
Tim Hortons to form Restaurant Brands International (RBI) in 2014.

The company changed its structure in the process. At present, Burger King’s organizational
structure has the following main characteristics:

1. Global centralization
2. Functional groups
3. Geographic divisions

Global Centralization. This characteristic of Burger King’s organizational structure maintains

a core management team that makes most of the major decisions for the global organization.
In 2001, then CEO John Dasburg reformed Burger King’s organizational structure from a
decentralized one to a globally centralized structure. The purpose of this change was to ensure
that the new organizational structure supported Burger King’s efforts in improving
management effectiveness and business performance.

Functional Groups. Burger King’s organizational structure has function-based groups that
span the global organization. This feature of the organizational structure refers to basic business
functions like human resource management, legal, and IT. For example, Burger King has a
Senior Vice President (SVP) for Global Operations, an Executive Vice President (EVP) for
Finance, and an EVP who functions as the Global Chief Marketing Officer.

22
Geographic Divisions. Despite the reorganization efforts in 2001 and 2014, Burger King’s
organizational structure has geographic divisions as a tertiary characteristic. This feature of the
organizational structure divides operations according to their geographic locations. For
example, the following are Burger King’s geographic divisions, each of which is headed by an
Executive Vice President:

1. North America
2. Europe, Middle East and Africa
3. Latin America and the Caribbean
4. Asia Pacific

Burger King Franchises :When Burger King Corporation began franchising in 1959, it used a
regional model where franchisees purchased the right to open stores within a geographic region.
These franchise agreements granted BKC very little oversight control of its franchisees and resulted in
issues of product quality control, store image and design, and operational procedures. By 2001 and after
nearly 18 years of stagnant growth, the state of its franchises was beginning to affect the value of the
company. One of the franchises most heavily affected by the lack of growth was the nearly 400-store
AmeriKing Inc., one of the largest Burger King franchisees.

By 2002, the franchise owner, which until this point had been struggling under a nearly
US$300 million debt load and been shedding stores across the US, was forced to enter Chapter
11 bankruptcy. The failure of AmeriKing deeply affected the value of Burger King, and put
negotiations between Diageo and the TPC Capital-led group on hold. Individual franchisees
took advantage of the AmeriKing failure; one of BK's regional owners, Miami-based Al
Cabrera, purchased 130 stores located primarily in the Chicago and the upper mid-west region,
from the failed company for a price of $16 million, approximately 88 percent of their original
value. The new company, which started out as Core Value Partners and eventually
became Heartland Foods, also purchased 120 additional stores from distressed owners and
revamped them. The resulting purchases made Cabrera the largest minority franchisee of
Burger King, and Heartland one of the company's top franchises. By 2006, the company was
valued at over $150 million, and was sold to New York–based GSO Capital Partners.

Other purchasers included a three-way group of NFL athletes Kevin Faulk, Marcus Allen,
and Michael Strahan who collectively purchased 17 stores in the cities ,

23
Virginia; and Cincinnati-based franchisee Dave Devoy, who purchased 32 AmeriKing stores.
After investing in new decor, equipment and staff retraining, many of the formerly failing
stores showed growth approaching 20 percent.

As part of 3G's restructuring plan, the company decided to divest itself of its corporate owned
locations by re-franchising them to private owners and become a 100% franchised operation
by the end of 2013. The project, which began in April 2012, saw the company divest corporate-
owned locations in Florida, Canada, Spain, Germany, and other regions. The move gave the
company a Q3, 2013 profit of US$68.2 million over the same quarter, 2012 of US$6.6 million.

At the end of its 2013 fiscal year, Burger King was the second largest chain of hamburger fast
food restaurants in terms of global locations, behind industry bellwether McDonald's, which
had 32,400 locations. At the end of 2014, Burger King ranked fourth among US food chains in
terms of US sales, behind McDonald's, Starbucks, and Subway. Burger King now has over
12,000 stores worldwide.

Burger King International Operations

While BK began its foray into locations outside of the continental United States in 1963 with
a store in San Juan, Puerto Rico, it did not have an international presence until several years
later. Shortly after the acquisition of the chain by Pillsbury, it opened its first Canadian
restaurant in Windsor, Ontario in 1969. Other international locations followed soon after,
including Australia in 1971, with a restaurant in the Perth suburb of Innaloo, and Europe in
1975, with a restaurant in Madrid. Beginning in 1982, BK and its franchisees began operating
stores in several East Asian countries, including Japan, Taiwan, Singapore and South Korea.
While Burger King lags behind McDonald's in international locations by over 12,000 stores,
as of 2008 it had managed to become the largest chain in several countries including Mexico
and Spain.

Over a 10-year period starting in 2008, Burger King predicted 80 percent of its market share
would be driven by foreign expansion, particularly in the Asia-Pacific and Indian
subcontinent regional markets. While the TPG-led group continued BK's international
expansion by announcing plans to open new franchise locations in Eastern Europe, Africa and
the Middle East, and Brazil, the company plan is focusing on the three

24
largest markets – India, China, and Japan. The company plans to add over 250 stores in these
Asian territories, as well as other places such as Macau, by the end of 2012. Its expansion into
the Indian market has the company at a competitive disadvantage with other fast-food
restaurants such as KFC because of the aversion of the country's large Hindu majority to beef.
BK hopes to use their non-beef products, such as their TenderCrisp and TenderGrill chicken
sandwiches, as well as other products like mutton sandwiches and veggie sandwiches, to help
them overcome this hurdle to expand in that country. 3G has reported that it will continue with
the plans to grow globally, even ramping up the planned expansion to help increase their return
on investment.   It is expected that 3G Brazilian-based management connections in the region
may help Burger King expand in Brazil and Latin America, where it has been having problems
finding acceptable franchisees.

In December 2020, Burger King India went in for an initial public offering (IPO) on
the BSE and NSE in India. The IPO was subscribed over 150 times. The stock opened
at ₹112.5 per share on December 14, nearly double the IPO price of ₹60, and closed at ₹135.

Burger King In India

Restaurant Brands Asia Ltd. (RBA). Burger King India Ltd was incorporated as 'Burger
King India Private Limited' under the Companies Act 1956 at Mumbai pursuant to a certificate
of incorporation dated November 11 2013 issued by the RoC. Subsequently the Company was
converted into a public limited company the word private' was struck off from the name of the
Company and consequently a fresh certificate of incorporation dated September 25 2019 was
issued by the RoC recording the change of our Company's name to Burger King India Limited'.

It is one of the fastest growing international QSR chains in India during the first five years of
operations based on number of restaurants. As the national master franchisee of the BURGER
KING brand in India the company has exclusive rights to develop establish operate and
franchise Burger King branded restaurants in India. The companies master franchisee
arrangement provides the company with the ability to use Burger King's globally recognised
brand name to grow business in India while leveraging the technical marketing and operational
expertise associated with the global Burger King brand.

25
The globally recognised Burger King brand also known as the 'HOME OF THE WHOPPER
was founded in 1954 in the United States and is owned by Burger King Corporation a
subsidiary of Restaurant Brands International Inc. which holds a portfolio of fast-food brands
that are recognized around the world that include the BURGER KING POPEYES and TIM
HORTONS brands. The Burger King brand is the second largest fast food burger brand
globally as measured by the total number of restaurants with a global network 24

of over 18000 restaurants in more than 100 countries and U.S. territories as at June 30 2019.The
Companies master franchisee arrangement provides the company with flexibility to tailor menu
to Indian tastes and preferences as well as for promotions and pricing. The company’s customer
proposition focuses on value leadership offering the customers variety through innovative new
food offerings at different day parts catering to the local Indian palate offering a wide range of
vegetarian meal options and taste advantage and flame grilling expertise. The company
believes that this enables the company to grow customer base by attracting customers looking
for everyday value and giving them opportunities to access the companies brand for the first
time. This also increases the frequency and occasions when customers can visit the restaurants
which drives footfalls and same-store sales. This has driven footfalls and same-store sales in
the restaurants and enabled to become one of the fastest growing QSR brands to reach 200
restaurants among international QSR brands in India during the first five years of our
operations. Since opening first restaurant in November 2014 the company has used a well-
defined restaurant roll out and development process with the aim of growing quickly
consistently and efficiently into a pan-India QSR chain and capitalising on the growing market
opportunity in India for QSR restaurants. As at June 30 2019 Burger King India had 202
restaurants including seven Sub-Franchised Burger King Restaurants across 16 states and
union territories and 47 cities across India. As of November 2019, the company has 216
Company-owned Burger King Restaurants and eight Sub-Franchised Burger King Restaurants.
Burger King Corporation awarded the company the 'Global Master Franchisee of the Year' in
2018 for the Company's strong business performance on sales operations development and
profitability. Further the Company has consistently won regional performance awards since
2015 including 'APAC Master Franchisee of the Year' and 'APAC Operator of the Year' in
2018 as well as 'APAC Marketer of the Year' in 2017 and 2018.

26
List of Top-Level Management at Burger King India ltd.

27
BURGER KING SWOT ANALYSIS

Burger King has operated for over 65 years in the fast-food industry. From humble
beginnings in Florida to become one of the biggest fast-food chains in the world, Burger King
SWOT analysis can enhance understanding of what it takes to succeed in business.

Here is the Burger King SWOT analysis.

Burger King’s Strengths

1. Global Presence: Burger King has 18,838 stores spread across about 100 countries
worldwide. It is the sixth-largest fast-food chain in the world and servers over 10
million customers per day. The chain’s strong global presence is undeniably a major
strength.
2. Effective Strategies: Companies that employ effective management strategies always
find ways to rejuvenate and stay in touch with the trends in the market. After
stagnating for years, Burger King appointed 32-year-old Daniel Schwartz as CEO to
transform the chain into something cool. The young and creative CEO rejuvenated
and turned it around within a few years.
3. Strong Franchising Model: Currently, 90% of Burger King is franchised with over
15,000 outlets being owned by franchisees. To own its franchise, you only have to
pay a $45,000 franchise fee and a minimum initial investment of $317,100. It is the
most affordable franchise.
4. Wide Variety: Burger King offers a variety of local and international menu items to
cater to any traveler away from home. From bacon-studded buns to plant-based
Whoppers, grilled burgers, taro-filled pies, poutine-covered fries, beverages, desserts,
Chicken items, and many more, it is preferred for its wide selection.
5. Innovative Offerings: Burger King always reinvents and rejuvenates itself with new
and highly innovative offerings. It introduced plant-based sandwiches called
Impossible Whopper, which attracted new customers and helped the company to beat
2nd quarter profit expectations in 2019.
6. Ingenious Marketing: Effective marketing should shake the viewer to the core and
stays with them forever.

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 Burger King recently released a repulsive ad showing a preservative-free burger
deteriorating over 34 days. This attention-grabbing ad ensures that consumers always
recognize the brand for being all-natural.

7. Healthier than Competitors: While Burger King is not yet the healthiest food source in
the market, it offers healthier options than competitors.

Burger King’s Weakness

1. Overdependence on US Market: About 44.0% of Burger King’s restaurants are based

in the US and contributed $9.2 billion of its revenue. This exposes nearly half of the
company’s revenue stream to any challenges in the US market.

2. Misleading Ads: In the current health-conscious society, misleading ads about the
ingredients of products erode trust and turn away customers. Burger King was recently
reprimanded for implying that its Whopper is vegan-suitable, yet it prepared with egg-
based mayonnaise.

3. Over-Franchising: Even though Burger King’s franchises have been effectively

managed so far, rapid franchising weakens the sustainability of the model. For instance,
Subway’s conflict with its franchise owners highlights what’s in store for Burger King.

4. Lack of Stability: Any time the ownership and leadership of a business changes hands,
continuity of its operations are disrupted. The ownership of Burger King has changed
hands over 6 times with Restaurant Brands International taking ownership a few years
back.

5. Negative Publicity and Controversies: From feeding its customers horsemeat to

offering non-vegan Whoppers to vegans, and many more, each controversy and
negative publicity erode the trust of customers further.

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 6. Low Value: More customers are seeking value for their money. Unfortunately, Burger
King offers low value from the cheapest to the most expensive burger. This is why it
does not have a loyal customer base and its customers can eat at competitors if it is
more convenient.

Burger King’s Opportunities

1. Strengthen Market Presence: Having a strong market presence ensures every customer
can access an outlet instead of going to a competitor. Burger King understands the
opportunities offered by having more outlets is aims to expand from 26,000 to 40,000
restaurants.

2. Increase Plant-based Options: Burger King’s earnings increased by nearly 30% after
launching a healthier sandwich known as Impossible Whopper. The company can
exploit the ever-increasing demand for healthier foods by increasing plant-based
options in its menu.

3. Diversify Portfolio: Instead of focusing primarily on the restaurant business, Burger

King can diversify its portfolio beyond the sector. For instance, it can open a grocery
business instead of relying on other stores to distribute its plant-based Whoppers.

4. Focus on Emerging Economies: From Asia to Africa, the Middle East, and Latin
America, emerging economies offer unsaturated markets and a high potential for
growth.
5. Burger King is asking to order from McDonald’s: During the pandemic, in an attempt
to revive the restaurant industry, Burger King has sent out a tweet asking customers to
order from McDonald’s.

Burger King’s Threats

1. Global Recession: Even though food is essential, customers usually reduce eating out
in times of economic hardship. Already, some Burger King franchisees have declared
bankruptcy or are going into receivership.

30
 2. Stiff Competition: From McDonald’s, KFC, Subway, Dominos, and many more,
Burger King is facing stiff competition at home and abroad. It is engaged in fierce
‘Burger Wars’ with its market share, profitability, and sustainability on the line.
3. Rising Health-Consciousness: The number of health-conscious consumers is
increasing rapidly yet most of the foods offered by Burger King contain fats, animal
products, and are categorized as unhealthy. If a competitor offers healthier options,
health-consciousness customers can mass migrate from Burger King in an instant.
4. Strict Regulations: Governments across the world are struggling to bear the costs of
treating and managing lifestyle diseases linked to unhealthy food Authorities can
enact regulations targeting fast-food chains like Burger King to reduce unhealthy
foods.
5. Increasing Prices of Farm Products: The increase in population coupled with rapid
urbanization is increasing demand for fresh farm products while supply is decreasing.
The scarcity of fresh beef has increased prices, which threatens Burger King’s profits
and sustainability.
6. Global Pandemic: Any business that requires its customers to venture out of their
homes and consume in public spaces is vulnerable to the pandemic. Some Burger
King franchisees have gone under while others are struggling to make enough to pay
rent.

BURGER KING PESTEL ANALYSIS

PESTLE Analysis of Burger King analyses the brand on its business tactics. Burger King
PESTLE Analysis examines the various external factors like political, economic, social,
technological (PEST) which impacts its business along with legal & environmental factors.
The PESTLE Analysis highlights the different extrinsic scenarios which impact the business
of the brand.

PESTLE analysis is a framework which is imperative for companies such as Burger King, as
it helps to understand market dynamics & improve its business continuously. PESTLE analysis
is also referred to as PESTEL analysis.

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Political Factors:

The political factors in the Burger King PESTLE Analysis can be explained as follows:

Burger King is one of the largest food chains in the world. In 2014, Burger King Worldwide
merged with Tim Hortons, and a new parent company was formed – Restaurant Brands
International. As the parent company’s headquarters are located in Canada, it enjoys lower
rates of corporate tax on offshore profits. Burger King’s offshore profits were subject to US
Federal taxation laws, which mandated tax after repatriation also resulting in double taxation.
Thus, Burger King is now able to enjoy tax savings. The brand continues to expand its stores
in Asian markets like China and India. In India, it has filed trademark cases. There have been
cases of joints in malls with similar names or logos, affecting its business. Thus, these events
affect the financial performance of the business. Furthermore, Brexit could impact the supply
chain, financial, tax, legal and trade side of Burger King’s operations in UK, and the European
Union. The same has been stated as a risk in Restaurant Brands International annual report.

Economic Factors:

The impact of Covid-19 and consequent lockdowns has resulted in a decline in the global
revenues. Also, Burger King faces risks of fluctuating foreign currency exchanges and changes
in interest rates. The company tries to minimize these risks by diversifying geographically and
using derivatives, these strategies may not always be entirely effective and could affect
performance of the business. Since it has a franchise-led business model, it is also labour-
intensive. Labour costs and the long-term trend of increasing wages in both developing and
advanced markets can potentially affect the profitability of the business. Also, it faces risks
from labour unions affecting its daily operations. It sees tremendous opportunities in India and
continues to expand its stores. As of September 2020, the company has 260 stores. Burger King
India Ltd. came up with an IPO in 2020. The IPO was worth Rs. 810 crores.

Socio Factors:

Many social factors define the business of Burger King. As the restrictions due to Covid-19
induced lockdowns are lifted or gradually reduced, consumers are still worried about social
distancing rules and safety of food. Thus, they need to ensure eating out is safe for people.

32
For example, in Italy it plans to introduce an app for three of its Milan restaurants, that allows
users to check if the restaurant is crowded anytime. Increasing public health awareness poses
new challenges to Burger King. Some of its products contain caffeine, dairy products, sugar,
allergens, etc. These food items could pose health risks. Also, in the US and UK there is rising
awareness of health risks, like obesity. There is also a growing trend towards vegan foods in
many countries.

Technological Factors:

Burger King started The Traffic Jam Whopper service in Mexico. There are often very long
traffic jams in cities. The chain created a service by which commuters can order food on King’s
app, via voice commands. Then bike riders deliver the food in the middle of the traffic jam.
The company also uses real-time data to understand the concentration of traffic and alerts local
restaurants to ensure speedy delivery. In the first week, this resulted in a 60% increase in orders.
Burger King unveiled new restaurant designs called as “Restaurants of Tomorrow”. These
restaurants will have technology enabled components. These include Curbside delivery, Pick
Up Lockers, Drive-Thru and suspended kitchen and dining room. For example, delivery orders
can be picked up from coded food lockers facing exterior of restaurant. This enables food to be
moved from the kitchen to pick up lockers.

Environmental Factors:

Burger King has found new opportunities by providing more environmentally-friendly

products. They recently introduced new food items to reduce the environmental effect of
consuming beef. ‘The Impossible Burger’ is an innovative food item, produced to serve meat-
less burgers to customers. This burger is made from soy protein and is similar in texture and
taste of meat. As people become aware of environmental impact of consuming meat products,
this is good alternative to consumers who are environment-conscious and still want the same
taste of original burgers. This plant-based burger has 15% less fat and 90% less cholesterol,
too. Yet, the company still faces high risks due to unpredictable events like adverse weather
conditions, natural disasters, pandemics or catastrophic events. The most prominent example
is the Covid-19 pandemic which caused reduction in restaurant sales globally.

33
Legal Factors:

The company is subject to regulation by various health, sanitation, safety authorities. In many
of its markets like US, UK, Canada, Europe, the company is facing growing regulations, which
may affect its cost of doing business. Burger King may be subject to litigations with
franchisees, employees, suppliers, customers and even cases related to intellectual property
rights. This may harm company reputation, transfer funds away from operating activities and
adversely affect financial performance. While the company has insured for some of the losses
arising in case of unsuccessful legal cases, it may not be enough to cover very high costs. There
is also the risk of delay in receiving sum insured or the amount may be insufficient to cover
fully the losses.

34
CHAPTER – 3
LITERATURE
REVIEW

35
Understanding Satisfaction is the level of a person's feelings after comparing the performance
or perceived results compared with expectations (Susanto, 2010). Definition Satisfaction is a
value of one's feelings whether satisfying or disappointing produced by a process comparing
the presence or appearance of a product desirable to the expected values.

Kotler and Keller (2013) mention customer satisfaction is a person's feeling that is the result of
a comparison of the performance of a product purchased with what is expected by consumers.
Customer satisfaction is defined by the customer's response to the evaluation of perceived
nonconformity between expectations and performance. Oliver (2010) states that customer
satisfaction is a post-purchase evaluation where the perception of product performance exceeds
customer expectations. Loveloock (2012) states that customer satisfaction is an emotional state,
their postpurchase reaction can be anger, dissatisfaction, irritation, excitement, and neutrality.
Customer satisfaction has a direct relationship with customer loyalty, profits and market share.
Customers if they are satisfied with the value provided by products and services, are likely to
become customers for a long time.

Crosby, Evan and Cowles (19900 and Kim and Cha (2002) state that customer satisfaction is
defined as an experience based on customer evaluations or evaluations, namely reality greater
than expectations, factors that influence customer satisfaction if expectations are smaller than
reality. then the customer is not satisfied, whereas if the reality is greater than expectation then
said the customer is satisfied.

Kotler and Armstrong (2012) defined that "customer satisfaction is the extent to which
product's perceived performance matches a buyer's expectations." Customer satisfaction
consists of several indicators, namely loyalty, satisfaction, repurchase interest, small desire to
make a complaint, the willingness to recommend the product, and the reputation of the
company (Kotler and Keller, 2012; Nguyen and LeBlanc, 1998).

Kotler and Keller (2008) expressed satisfaction is feeling happy or disappointed someone
emerged after comparing between perception on the performance or the results of a product
and hope- Hopes. Satisfaction is a function of perception / impression of the performance and
hope.

36
Customer satisfaction, according to Deng et al (2009, 289), is very important part of the
business setup because business generates much revenue from the industry when the customer
is satisfied by the services being provided. Customer satisfaction refers to the customer buying
behavior and the utility he obtained using the product. Customer satisfaction functions in a
single manner whereby a customer compares your product with those of competitors to reach
a decision. Therefore, customer ‘s evaluation of products and services is what customer
satisfaction defines in that whether their services are meeting consumer needs or not. Through
customer satisfaction, customer ‘s expectations are assessed in that they are being satisfied or
remain unsatisfied with the quality of goods and services. Customers, sometimes, are more
satisfied in case the product performance goes beyond their expectation (Kotler 2012).

Customer satisfaction is the outcome that customers received when the service they
experienced exceed their expectation. In marketing, it is being viewed as the global evaluation
of service experience over time (Lim et al., 2006). Customer satisfaction is generally known as
an outcome of service quality.

Because of their impact on financial performance (Sun and Kim, 2013), customer satisfaction
and loyalty are crucially important to company management. From a cognitive psychology
view, customer satisfaction arises from consumers ‘subjective perceptions of post consumption
performance against their prior expectations of performance (Kim et al., 2015). The expectation
disconfirmation paradigm (Oliver, 1981) proposes that customer satisfaction arises in
situations where expectations are met, or even exceeded (positively
disconfirming/disconfirming) (Qian et al., 2015). Because expectations differ among
consumers, customer satisfaction is a highly subjective concept, and is the result of cumulative
service evaluations (Kaura et al., 2015). Following this stream of research, we define customer
satisfaction as a customer ‘s overall assessment of his or her mobile service provider to date
(Keiningham et al., 2014). As a fundamental concept of marketing, customer satisfaction is
widely recognized as a key intangible asset, and one of the best indicators for future profits of
a firm as it is positively associated with customer loyalty (Kim et al., 2015; Luo et al., 2010;
Ryding, 2010). Customer loyalty can be described as ―the strength of a customer ‘s
dispositional attachment to a brand (or a service provider) and his/her intent to rebuy the brand
(or repatronize the service provider) consistently in the future‖ (Pan et al., 2012, p. 151).
Besides driving higher repurchase intentions,

37
loyal customers are more likely to pay premium prices, make additional purchases, and bring
referrals through favorable word-of-mouth (Haumann et al 2014; Ryding, 2010; Qiu et al.,
2015). In the context of mobile services, empirical studies showed that customer satisfaction
leads to favorable post-purchase behaviors, such as increased customer loyalty, decreased
customer complaints, and lower switching intentions (Calvo-Porral and Lévy-Mangin, 2015;
Morgeson et al., 2015).

In marketing literature, customer satisfaction has been considered as a crucial factor

influencing customer loyalty (Gerpott et al., 2001; Kumar et al., 2013; Kim et al., 2015a; Kim
et al., 2016). Omachonu et al. (2008) suggest that it is a psychological state where there is a
consistency between the emerging emotion and expectation. Gerpott et al. (2001) state that
satisfied customers tend to retain their pattern of purchases. Grönholdt et al. (2000) point out
that customer loyalty is a function of customer satisfaction, and that loyal customers affect a
company‘s financial performance. Wong and Zhou (2006), Aktepe et al. (2015) and Chang,
(2015) specify that satisfaction is one of the key factors affecting customer loyalty. Analytical
studies by Maxham and Netemeyer (2002) and Blodgett et al. (1997) recognize the fact that
satisfied customers publicize the firm and are more likely to remain loyal. Therefore, it is
crucial that customer satisfaction is selected as a factor determining customer loyalty in this
study.

Crosby, Evan and Cowles (19900 and Kim and Cha (2002) state that customer satisfaction is
defined as an experience based on customer evaluations or evaluations, namely reality greater
than expectations, factors that influence customer satisfaction if expectations are smaller than
reality. then the customer is not satisfied, whereas if the reality is greater than expectation then
said the customer is satisfied. Kotler and Armstrong (2012) defined that "customer satisfaction
is the extent to which product's perceived performance matches a buyer's expectations."
Customer satisfaction consists of several indicators, namely loyalty, satisfaction, repurchase
interest, small desire to make a complaint, the willingness to recommend the product, and the
reputation of the company (Kotler and Keller, 2012; Nguyen and LeBlanc, 1998). Kotler and
Keller (2008) expressed satisfaction is feeling happy or disappointed someone emerged after
comparing between perception on the performance or the results of a product and hope- Hopes.
Satisfaction is a function of perception / impression of the performance and hope.

38
Customer satisfaction, according to Deng et al (2009, 289), is very important part of the
business setup because business generates much revenue from the industry when the customer
is satisfied by the services being provided. Customer satisfaction refers to the customer buying
behavior and the utility he obtained using the product. Customer satisfaction functions in a
single manner whereby a customer compares your product with those of competitors to reach
a decision. Therefore, customer‘s evaluation of products and services is what customer
satisfaction defines in that whether their services are meeting consumer needs or not. Through
customer satisfaction, customer‘s expectations are assessed in that they are being satisfied or
remain unsatisfied with the quality of goods and services. Customers, sometimes, are more
satisfied in case the product performance goes beyond their expectation (Kotler 2012).

Customer satisfaction is important to improve customer-focused products and services. Voice

of customers can be a valuable input for management in mapping which areas should be
prioritized. There is a significant relationship between product quality and customer
satisfaction (Cruz, 2015). Seyedi et al. (2012) also stated that the product and service quality
were the important factors affecting customer satisfaction. Moreover, the level of satisfaction
depended on the extent to which the needs were met. According to Suchánek et al. (2014),
quality is defined as perceived quality of the customer, so the main factor in measuring product
quality is customer satisfaction itself. To achieve high customer satisfaction, it is important for
the company to create products that meet the requirements of its customers.

Customer loyalty is one of the most important customer metrics in marketing due to the profit
impact of maintaining a loyal customer base (Oliver, 2010). The literature points out that
customer loyalty lead to firm profitability because customer loyalty positively influences firm
product-marketplace performance (Anderson & Mittal, 2000) and financial performance
(Gupta & Zeithaml, 2006). Brown and Chen (2001) propose three approaches used to measure
customer loyalty: 1) Behavioral measurement; 2) Attitudinal measurement; 3) Composite
measurement. Behavioral measurements consider continuous, repetitious purchase behavior as
an indicator of loyalty. The attitudinal measurements use attitudinal information to show the
emotional and psychological attachment inherent in loyalty, which include intentions for re-
purchase and the spreading of positive word-of-mouth about a product or service. Composite
measurement of loyalty combines both behavioral and attitudinal dimensions (Rundle-Thiele
& Maio, 2001). It measures loyalty in terms of preferences as a result of

39
trust in a product or service further explaining that a customer is sincerely loyal only when
brand commitment is present, which in turn is ―mediated by a high degree of affective and
cognitive brand conviction and attitude strength.‖ When a customer is said to have strong
resistance to change brands and have durable conviction over time, there is a high tendency to
be committed to a brand, resulting to measurement of loyalty.

Monroe (1990), defines that "customer value is buyers perceptions of value represent a trade-
off between the quality or benefits they perceive in the product relative to the sacrifice they
perceived by paying the price", while Naumann (1995) showed that " customer value is created
when customer expectations in each of the three areas are met or exceeded. Only when all three
are in harmony will be maximized customer value ". Therefore, Ma and Ding (2010) and
Sugiarti have a different perspective concerning the customer value, Ma and Ding (2010)
thought that "customer value is Directly related to the benefit that a product or service ",
whereas Sugiarti et al. (2013) concluded that "customer value is an evaluation of the benefits
of a product or service that is perceived by customers as Compared to what the customers had
dedicated to get the product or service". Customer value is seen as a ratio of the benefits felt
by the customer along with its sacrifice. Henceforth, there will be a disappointment when the
ratio value that is perceived by the economic sacrifices of the customers with the products
offered by the company are not in accordance with the customer expectations. Otherwise, when
the ratio value is appropriate or exceeding the customer expectations, customers will feel such
satisfaction. Another idea about customer value is that it is the perception of the customer about
the quality and the benefit of toothpaste towards the sacrifice to pay the price. Customer value
can be measured by functional value, emotional value and social value (Kotler and Keller,
2012; Afiff and Astuti, 2009; and Shoki, 2012). Kotler (2007) argues that customer value is the
difference between total customer value and total customer cost. Sugiarti T, et al (2013) found
that customer value contributed to customer satisfaction in his study in South Kalimantan
against 150 Hypermarts. Wang et.al. (2004) found the role of customer value to customer
satisfaction, brand loyalty and customer behavior based on CRM performance. Kotler (2002)
states that brand loyalty is one of the brand assets, which shows the high value of a loyalty,
because to build many challenges that must be faced and takes a very long time. Woodruff RB
(1997) states perceived value occurs through a customer shopping process once repeated
expenditures or expenditures.

40
 CHAPTER – 4

RESEARCH
METHODOLOGY

41
In our study, we are using quantitative research method. Business research that employs
empirical assessments with numerical measurement and analysis approaches to address the
research objectives is known as quantitative research. In our study we have surveyed a group
a people and distributed a questionnaire to them so understand the customer feedback and
their level of satisfaction they received after consuming the burger king products.

RESEARCH

Research may be defined as the search for knowledge through an objective and scientific
method of finding solution of finding of problem. Research methodology is a way to
systematically solve the research problem. It includes the various steps that are generally
adopted by researcher in studying problem with the logic behind them.

According to the American sociologist Earl Robert Babbie, “Research is a systematic inquiry
to describe, explain, predict, and control the observed phenomenon. Research involves
inductive and deductive methods.”

Inductive research methods are used to analyse an observed event. Deductive methods are used
to verify the observed event. Inductive approaches are associated with qualitative research and
deductive methods are more commonly associated with quantitative research.

CHARACTERISTICS OF REASEARCH

 A systematic approach must be followed for accurate data. Rules and procedures are an
integral part of the process that set the objective. Researchers need to practice ethics
and a code of conduct while making observations or drawing conclusions.
 Research is based on logical reasoning and involves both inductive and deductive
methods.
 The data or knowledge that is derived is in real time from actual observations in natural
settings.
 There is an in-depth analysis of all data collected so that there are no anomalies
associated with it.
 Research creates a path for generating new questions. Existing data helps create more
opportunities for research.
42
  Accuracy is one of the most important aspects of research. The information that is
obtained should be accurate and true to its nature. For example, laboratories provide a
controlled environment to collect data. Accuracy is measured in the instruments used,
the calibrations of instruments or tools, and the final result of the experiment.

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
The sample decided in this research is studied in a way that they express their conscious
knowledge about the brand and the contribution toward company’s brand equity.

OBJECTIVE OF RESEARCH

The main objective of the research was to find out the customer satisfaction of Burger King
Corporation.

 To get to know about the feedback of customers.

 To find out future potential changes for us to improve.
 To know that customers are satisfied or not with the product.
 To analyse reasons for low customer satisfaction.

DESCRIPTIVE RESEARCH

This method is undertaken when the researcher is interested in knowing about the
characteristics of certain group such as age, gender, education level, income. Interested in
knowing the proportion of unit in a given population who behaved in a particular way,
determine the relationship between two or more variable.

43
DATA SOURCES

What is Data?

Research data is any information that has been collected, observed, generated or created to
validate original research findings. Although usually digital, research data also includes non-
digital formats such as laboratory notebooks and diaries.

Data Collection

There may be different types of information and data, some of the information may be
unpublished, some is complete and some is incomplete, some is reliable data and some is based.
It is necessary for the researcher to know and the information is usually employed in marketing
research work and the types of sources from which it is generally collected. They may be
primary data and secondary data.

Plans of Analysis

Systematic objective quantitative analysis of the contents through the questionnaire was done.
Detailed tables were developed showing the data collected from the respondents. From the
tables, the percentages were calculated on the basis of which the data was analysed.

The various research measuring tools used for:

 Questionnaire
 Tables
 Percentage
 Pie-Charts
 Bar-Charts

44
 CHAPTER – 5
DATA ANALYSIS

45
 For evaluating the quality of customer satisfaction in Burger King, a
number of critical variables are selected for conducting an in-depth
analysis. The results of the analysis are presented in the following sections.

Q1. HOW OLD ARE YOU?

OPTIONS TOTAL PERCENTAGE

RESPONSES
LESS THAN 18 15 30

18 – 40 11 22
40 – 60 15 30
MORE THAN 60 9 18

TABLE 5.01

CHART 5.01

INTERPRETATIONS

By the help of the data, we could easily understand that our customers consist of almost all
aged peoples which depicts our product useful for each and everyone.

46
Q2. HAVE YOU TRIED OUR PRODUCTS?

OPTIONS TOTAL RESPONSES PERCENTAGE

YES 35 70

NO 15 30

TABLE 5.02

CHART 5.02

INTERPRETATIONS

According to the data, most of the respondent has already tried our products and experienced
but still a lot of persons are there as our future customers left and help us to expand our
market share.

47
Q3. HOW LONG HAVE YOU BEEN USING OUR PRODUCTS?

OPTIONS TOTAL RESPONSES PERCENTAGE

MORE THAN A YEAR 30 60
LESS THAN A YEAR 20 40

TABLE 5.03

CHART 5.03

INTERPRETATIONS

According to the data, we can say that more than half of the respondents are old customers of
our products. And nearly 30% of the respondents are customers which have used our products
for less than an year.

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Q4. WHAT DO YOU PREFER AS MODE OF ORDERING?

OPTIONS TOTAL RESPONSES PERCENTAGE

ONLINE 50 50
OFFLINE 50 50

TABLE 5.04

CHART 5.04

INTERPRETATIONS

By the help of data, we could derive that online and offline order holds an equal number of
market share. And both contains there advantages and features and therefore massively used.

49
Q5. WHAT DO YOU ORDER OFTEN?

OPTIONS TOTAL RESPONSES PERCENTAGE

COMBOS 20 40
WHOPPERS 11 22
CLASSIC BURGERS 9 18
OTHERS 10 20

TABLE 5.05

CHART 5.05

INTERPRETATIONS

As per the data, most demanded product is the combos our company provides and followed
by the special category burgers Whoppers. And the rest contains individual classic burgers
and other products like fries, drinks etc.

50
Q6. HOW OFTEN DO YOU USE OUR PRODUCTS?
OPTIONS TOTAL RESPONSES PERCENTAGE
ONCE IN A WEEK 5 10
ONCE IN A MONTH 20 40
RARELY 25 50

TABLE 5.06

CHART 5.06

INTERPRETATIONS

According to the data, majority of our customer base uses our products rarely and not often.
And which is followed by customers which uses products once in a month. And very less
consumers it every week.

51
Q7. DO YOU THINK THAT OUR PRICING AND PRODUCT ARE COMPETETIVE?

OPTIONS TOTAL RESPONSES PERCENTAGE

YES 30 60
NO 20 40

TABLE 5.07

CHART 5.07

INTERPRETATIONS

According to the responses, there is a close call between people who think that our pricing
and product are competitive.

52
Q8. ACCORDING TO YOU, WHO IS OUR BIGGER COMPETITOR?

OPTIONS TOTAL RESPONSES PERCENTAGE

Mc DONALD’s 20 40
SUBWAY 5 10
DOMINOS 15 30
PIZZAHUT 10 20

TABLE 5.08

CHART 5.08

INTERPRETATIONS

According to respondents, biggest competitors for our company is Mc Donald’s as they also
deal in same price range and similar products. Followed by dominos which is also a very big
QSR chain in pizzas.

53
Q9. WHERE CAN WE IMPROVE MORE?
OPTIONS TOTAL RESPONSES PERCENTAGE
SERVICE DELIVERY 18 36
PRODUCT TASTE 14 28
PRICING OF PRODUCTS 18 36

TABLE 5.09

CHART 5.09

INTERPRETATIONS

According to data, there is been a tie between people who thinks we should improve in
service delivery and pricing of products,

54
Q10. WHAT WOULD YOU LIKE TO RATE US OUT OF 5 FOR OUR PRODUCTS?

OPTIONS TOTAL RESPONSES PERCENTAGE

5 10 20
4 15 30
3 12 24
2 10 20
1 3 6

TABLE 5.10

CHART 5.10

INTERPRETATIONS

As per the responses, majority of the 30% of the respondents who rate us 4 and majority of
the people are satisfied as nearly 75% have rated our products in or above 3 rating.

55
Q11. WHAT WOULD YOU LIKE TO RATE US OUT OF 5 FOR OUR FREINDLINESS
OF STAFF?

OPTIONS TOTAL RESPONSES PERCENTAGE

5 15 30
4 16 32
3 10 20
2 5 10
1 4 8

TABLE 5.11

CHART 5.11

INTERPRETATIONS

As per the responses, majority of the 32% of the respondents who rate us 4 and majority of
the people are satisfied as nearly 80% have rated our staff behavioural in or above 3 rating.

56
Q12. WHAT WOULD YOU LIKE TO RATE US OUT OF 5 FOR OUR ORDER
ACCURACY?

OPTIONS TOTAL RESPONSES PERCENTAGE

5 16 32
4 10 20
3 15 30
2 5 10
1 4 8

TABLE 5.12

CHART 5.12

INTERPRETATIONS

As per the responses, majority of the 32% of the respondents who rate us 5 and majority of
the people are satisfied as nearly 82% have rated our order accuracy in or above 3 rating.

57
Q13. HOW LIKELY ARE YOU TO RECOMMEND OUR PRODUCTS TO OTHERS?

OPTIONS TOTAL RESPONSES PERCENTAGE

5 15 30
4 15 30
3 12 24
2 5 10
1 3 6

TABLE 5.13

CHART 5.13

INTERPRETATIONS

As per the responses, majority of the 30% of the respondents who rate us 5 and 4 each. And
majority of the people are satisfied as nearly 84% have rated in or above 3 rating and would
recommend to others.

58
Q14. WHAT WOULD YOU LIKE TO RATE US OUT OF 5 FOR OVERALL
EXPIRENCE YOU HAD WITH US?

OPTIONS TOTAL RESPONSES PERCENTAGE

5 15 30
4 15 30
3 12 24
2 3 6
1 5 10

TABLE 5.14

CHART 5.14

INTERPRETATIONS

As per the responses, majority of the 30% of the respondents who rate us 5 and 4 each. And
majority of the people are satisfied as nearly 84% have rated in or above 3 rating and had a
overall good experience.

59
CHAPTER – 6
FINDINGS

60
As per the research, we could easily derive that almost every aged person is consuming our
products which is a good sign as it would lead to high target market and also help us to
introduce a lot of variety of products for all our consumers.

Nearly 70% of the respondents have tried our product and experienced our service delivery but
still 30% are left so that help us to gather those 30% and increase our market share.

Customers uses online – offline mode equivalently. And both pf these carry their own
advantages to the consumers hence both carry growth potential for future orders.

In our menu, there are many highly demanded products but combos is highest among them
with nearly 40% of the demand. Which is followed by the Whopper burger category of 22%.
And at last classic burgers with approx. 18% share and rest demand by other products.

As per data, we can say that majority of customer are using our products for more than a year.
But still 40% of the respondents are new customers hence depicts our market presence.

By the help of responses, we can say that people consume our products but not often enough.
As majority uses our products rarely.

According to people, 60% of the respondents like our pricing and product. And the rest 40%
are still not completely satisfied.

According to the research, biggest competitors of our company in the eyes of the consumers is
Mc Donald’s followed by Dominos PizzaHut and Subway.

As per the study, consumer have suggested areas where we could improve. And as per that
service delivery and pricing of the products are on tie by 36% each and product taste at 28%.

According to customers feedback, they would rate our product more like 4 out of 5 and many
consumers are satisfied and only 26& are less satisfied.

Majority of consumers are happy with the experience they had with our staff. As nearly 82%
are highly to moderately satisfied and only 18% less satisfied.

61
As per the responses received, the order accuracy customers experienced is also good. Around
32% of the respondents gave 5 out of 5 rating and only 18% of the respondents are less satisfied.

As per the responses received, 30% of the respondents are highly likely to recommend our
products to other users as well. And only 16% are less likely to recommend us.

At last, by the help of data we could say that 30% of the respondents have extremely liked the
experienced the have with us and majority of the respondents have liked overall experience but
16% of the respondents are less satisfied with overall experience.

62
 CHAPTER – 7
RECOMMENDATIONS/
SUGGESTIONS

63
Our company has a lot of target audience as different age group of people uses our products so
we could additionally addon new categories and meals of those less targeted audiences. This
would help in sustaining in the market and also help us exploring new ideas and grabbing
opportunities for better future.

There is still a lot of potential in the market as per studies still some of the people haven’t tried
our products and services so we could target them to increase our market shares and raise our
profits and brand value.

In last year our company has seen a significant growth among the users as it has increased a lot
of users in that year.

Customers loves to order food in a way which is most convenient to them and that shows that
customers choose online and offline as a good option. And these both option holds a high
market share within them so changing anything thing could lead to a sudden high or low in the
current situation.

Products currently offered are getting a good demand like combos, whoppers etc. but the
company can still improve their individual classic burgers pricing or product to raise their
market share too.

Company should offer some kind of discounts or offers codes to their customer so that their
customer ordering items could be more frequent than current as that would build a habit and
more demand would be generated for our products.

As per customers point of view, Mc Donald’s is one of the biggest competitors we are facing
and to compete with them company should revise the pricing and marketing strategies as well.

As per feedback customer thinks we as a company can still improve a lot in service delivery
and pricing of the products so that it would help company to get a boost.

64
 CHAPTER – 8
CONCLUSIONS/
LIMITATIONS OF THE
STUDY

65
The conclusion of the study shows the customers satisfaction when they used to experience the
products and service offered by the Burger King. By the help of the study, we came to know
about various factors that could easily lead to affect the customer experience with us. And
methods to overcome those factors and follow up with the suggestion offered by the consumers
to gain better understanding from their point of view.

There are ways in which our company could improve and gain a better positioning in the highly
competitive market. And following those our company could get a upper hand with rest of the
competition.

LIMIATIONS

 Biasness of the respondents

 Lack of authenticity with the responses received
 Different branch leads to a change in experience.

66
 BIBLIOGRAPHY

 https://asq.org
 https://wikipedia.org
 http://www.journalijar.com
 www.researchgate.com
 https://bk.com

67
 ANNEXURE: QUESTIONNAIRE

A SURVEY ON CUSTOMERS OF BURGER KING TO UNDERSTAND ABOUT

CUSTOMER SATISFACTION

Q1. HOW OLD ARE YOU?

 LESS THAN 18
 18 – 40
 40 – 60
 MORE THAN 60

Q2. HAVE YOU TRIED OUR PRODUCTS?

 YES
 NO

Q3. HOW LONG HAVE YOU BEEN USING OUR PRODUCTS?

 MORE THAN A YEAR
 LESS THAN A YEAR

Q4. WHAT DO YOU PREFER AS MODE OF ORDERING?

 ONLINE
 OFFLINE

Q5. WHAT DO YOU ORDER OFTEN?

 COMBOS
 WHOPPERS
 MEALS
 OTHERS

68
Q6. HOW OFTEN DO YOU USE OUR PRODUCTS?
 ONCE IN A WEEK
 ONCE IN A MONTH
 RARELY

Q7. DO YOU THINK THAT OUR PRICING AND PRODUCT ARE COMPETETIVE?

 YES
 NO

Q8. ACCORDING TO YOU, WHO IS OUR BIGGER COMPETITOR?

 Mc. DONALD
 SUBWAY
 DOMINOS
 PIZZAHUT

Q9. WHERE CAN WE IMPROVE MORE?

 SERVICE DELIVERY
 PRODUCT’S TASTE
 PRICING OF PRODUCTS

Q10. WHAT WOULD YOU LIKE TO RATE US OUT OF 5 FOR OUR PRODUCTS?

 5
 4
 3
 2
 1

69
Q11. WHAT WOULD YOU LIKE TO RATE US OUT OF 5 FOR OUR FREINDLINESS
OF STAFF?

 5
 4
 3
 2
 1
Q12. WHAT WOULD YOU LIKE TO RATE US OUT OF 5 FOR OUR ORDER
ACCURACY?

 5
 4
 3
 2
 1
Q13. HOW LIKELY ARE YOU TO RECOMMEND OUR PRODUCTS TO OTHERS?

 5
 4
 3
 2
 1

Q14. WHAT WOULD YOU LIKE TO RATE US OUT OF 5 FOR OVERALL

EXPIRENCE YOU HAD WITH US?

 5
 4
 3
 2
 1

70