Factors Influencing the Foreign Customer’s Decision Making

In Selecting a Fast-food Restaurant in Metro Manila

Reyes, Marielle S. Sebastian, Paula S. Sebastian, Rhoda R.

Tarrobago, Anjullo V. Velasco, Karyl Czarina L.
 CHAPTER 1

Introduction
In today's competitive restaurant sector, increased restaurant business rivalry means that
customers have more eating options than ever before, ranging from fast food to fine dining
places. As a result, customer expectations of the restaurant offers rising, and they are becoming
more demanding when it comes to selecting better restaurant options based on what they may
gain from their selection. The restaurant business is increasing competition which implies more
dining choices to choose from than before, ranging from fast food to fine dining restaurants
(Chua et al., 2020). As fast-food chains continue to expand in Metro Manila, more and more
Filipinos are enticed to consume fast-food products. It increases the demands of the public for
inexpensive and accessible food (Bondoc et al., 2019). This chapter contains the background of
the study, the research problem statement, research questions, research objectives, the scope
of the study, the significance of the study, the definition of terms, and the research structure.

1.1 Background of the Study

This study investigates Factors Influencing the Foreign Customer’s Decision Making in
Selecting a Fast-food Restaurant in Metro Manila.

Fast food quality is strongly related to customer satisfaction and is a significant predictor
of behavioral intention. Service quality is a critical aspect in determining the proneness of
consumers to return. Furthermore, the physical environment influences customer behavior at
restaurants, hotels, hospitals, retail establishments, and banks. Customer contentment is
preceded by the quality of the physical surroundings. This implies that consumer happiness is
linked to fast food quality, restaurant service quality, physical environment quality, and intention
to return (Rajput & Gahfoor, 2020)

A decision-making of a customer begins when he or she sees a need that can be met by
consuming the products/services offered. Having fast meals, commemorating important events,
entertaining business clients, and other considerations may promote the desire for restaurant
usage. Customers will look for important information about restaurants, evaluate restaurant
selections, and decide which restaurant to dine at. In the hotel industry, it is critical that service
providers understand how significant each product/main service element is in the decision-
making process of clients. While service firms can operationally control a product's or service's
performance, customers, the direct recipients of a product's or service's decisive factors,
primarily determine the importance of a product's or service's decisive factors. As a result,
several marketing scholars have investigated the importance of key factors in customer
decision-making across hospitality and tourism backgrounds like hotels, cruises, and
destinations (Chua et al., 2020).

1.2 Statement of the Problem

Common complaints of the customers these days in fast food restaurants include
overpricing, order mix-ups, long queues, and incorrect temperatures of food and beverages
served. This study seeks to understand foreign customers’ perception of various influences
such as food quality, service speed, price, and nutrition that are related to purchase decisions.

In the study of Jibril et al. (2019), the debate on fast food has been viewed from many
perspectives. For instance, pleasure with fast food restaurants. Social and biological variables
can have important effects on eating preferences and diet choices.

The difference between a well favored and a less favored food is a part of what makes
something taste good: watching someone else consume it while displaying no negative reaction
(Herman et al., 2019). Consumers, especially tourists, look at three main aspects of a place to
eat such as food quality, ambiance, and service in addition to the restaurant’s location.

Furthermore, depending on the type of food, customers evaluate these aspects

differently. It is essential that consumers have access to enough food. Because it gives the body
the nutrition it requires, food is essential. As a result of differences in location, climate,
environment, and culture, food products vary from society to society (Gogoi, 2020).

Raising food safety regulations, improving customer service in quick-service restaurants,

and employing more personnel to attend to customer’s needs while maintaining fair prices are
the best things we can do to address this concern.

1.3 Research Questions

Consumer lifestyles are changing noticeably because of increased disposable income
and the fast growth of social media. Consumption trends are also changing because of lifestyle
change and work culture. Time shortage is one of the factors affecting food consumption. Dual
income families are striving to have meal cooking time. This can lead to fast food consumption
which is easier (Gogoi, 2020). The aim of this study is to know the decision making of foreign
customers that was influenced by factors when choosing a fast-food restaurant in Metro Manila.
Finding the answers to the following questions is the purpose of the study.
I.Does food quality influence customer perception on purchase decisions?
II.Does service speed affect customer perception when it comes to purchasing decisions?
III.Is there a relation between price and customer perception towards purchase decisions?
IV.Does nutrition influence customer perception on purchase decisions?
V.Is price an influencing factor for purchase decisions?
VI.Does nutrition have an impact on purchase decisions?
VII.Is purchase decision influenced by customer perception?

1.4 Research Objectives

The goal of this study is to figure out the decision making of foreign customers, which was
influenced by different factors, when selecting a fast-food restaurant in Metro Manila. The
following are the research objectives of this study.
I.To analyze the influence of food quality on customer perception of purchase decisions.
II.To determine the effect of service speed on customer perception of purchase decisions.
III.To examine the relation of price and customer perception towards purchase decisions.
IV.To analyze the influence of nutrition on customer perception of purchase decision
V.To examine the influence of price on purchase decisions.
VI.To determine the impact of nutrition on customer perception of purchase decisions.
VII.To explore the influence of customer perception on purchasing decisions.

1.5 Scope of the Study

The idea of customer satisfaction leads the Philippine businesses to make marketing
strategies that will make the consumers happy and it has always been the cause of the
company's success (Raquel & Alonso, 2019). But, people have different perceptions of food and
quick service is what fast food is known for. But because of the easy access to the internet,
people started equating the services of different brands. This leads to irritation (Gogoi, 2020).

The focus of this study are the factors that are influencing the decision-making of foreign
customers in choosing a fast-food restaurant. The scope of the study is in Metro Manila,
Philippines. The target respondents are foreign customers, specifically foreign students and
adults ranging from 18 to 50 years old. This study aims to analyze the affecting factors to the
consumer perception of foreign customers towards their purchase decisions. The estimated
time of conducting the survey for this study is 2 months.

1.6 Significance of the Study

The integral part of this study is to determine the factors that affect the decision-making of
foreign customers, that are 18 to 50 years old in Metro Manila in selecting a fast-food restaurant
to dine at, as this will help the quick-service industry to improve their business as per the taste
of their customers. This study is based on customer perception of food quality, speed of
services, price, and nutrition towards purchasing decisions. This study may contribute
information and may be used as a guide and/or added reference to the academic works of the
students, teachers, professors, and future researchers. This study may also contribute
information, about the perception and purchase decisions of foreign customers, in the fast-food
industry.

Gogoi (2020) tries to assess different factors which can affect the purchase decision of
customers. Meals are a reconsideration instead of a prepared event nowadays. People were
starving while having no time to cook thus eating out. The impact is an increasing need for food
services of the restaurants (Arefin & Hossain, 2021). Regardless of consumer’s knowledge in
order choice, there is an important need for academic study in the Philippines that discusses the
connected important characteristics affecting purchase intention (Prasetyo et al., 2021). This
study is different from others because this will focus mainly on the factors that affect the
decision-making of foreign customers in selecting fast-food restaurants in Metro Manila to dine
at. This study is different from others because this will focus mainly on the factors that affect the
decision-making of foreign customers in selecting fast-food restaurants in Metro Manila to dine
at.

1.7 Definition of Terms

The following terminologies that are used in this study are listed below.
●Food Quality - Food quality is widely considered as an important factor in satisfying
restaurant customers. (Ramaraj, 2017)
 ●Nutrition - It is a food element that many people are concerned about (Taraporewala,
2019). Nutritional ingredients will have a direct influence on the buying choice if they
are included in the food. (Gogoi, 2020)
●Customer Perception - Customer perception refers to customers' thoughts, sentiments,
and beliefs about your brand. It is critical for increasing customer loyalty and
retention, as well as brand reputation and awareness. (Inabo, 2021)
●Price - It is a major factor for causing customer satisfaction (Al-Msallam, 2015; as cited
by Hossny, 2022). Price has a positive impact on consumer perception. (Gogoi, 2020)
●Purchase Decision - A purchase decision is a series of decisions made by a customer
before making a buying that begins when he or she is willing to meet a need.
(Hanaysha, 2018).
●Service Speed - Speed of service is a statistic that quantifies how long it takes to
accomplish a customer's service task. (Fontanella, 2021)

1.8 Research Structure

Research Questionnaire

Name: Sex: ◻ Male ◻ Female

Email:
1 - Strongly Disagree 2 - Disagree 3 - Neutral 4 - Agree 5 - Strongly Agree
FOOD QUALITY 1 2 3 4 5 SOURCE
FQ1 The food served is in the right order.
FQ2 The food has a good amount of serving.
Saneva &
FQ3 The food has a good taste
Chortoseva, 2018
FQ4 The food served is fresh.
FQ5 The food is served at the right temperature.
 SERVICE SPEED 1 2 3 4 5 SOURCE
SS1 Fast food provides on-time services.
SS2 Fast food provides quick service. Saneva &
SS3 Fast food provides the service at the Chortoseva, 2018
promised time
SS4 Food is served within the stated time
duration. Farooqui & Alwi,
SS5 Fast food has a reliable and consistent 2019
service.
PRICE 1 2 3 4 5 SOURCE
PR1 The offered products are at the right price.
PR2 Offers the right product/service for the price
offered.
Raquel & Alonzo,
PR3 Fast-food offers are worth the price.
2019
PR4 Buying fast food is thrifty.
PR5 Discounts and/or earning points through
loyalty programs are great strategies.
NUTRITION 1 2 3 4 5 SOURCE
N1 The nutritional information affects your
decision.
N2 Nutritional information is presented on the
menu.
N3 If nutritional information is presented, does Taraporewala,
the amount of fat affect your decision? 2019
N4 If nutritional information is presented, will the
amount of cholesterol affect your decision?
N5 If nutritional information is presented, will the
amount of sugar affect your decision?
PERCEPTION 1 2 3 4 5 SOURCE
PE1 I suggest that fast-food restaurants are a Arefin & Hossain,
primary selection. 2021
PE2 I would suggest fast-food restaurants to
others.
 PE3 In fast-food, foods are served by order.
PE4 Employees love maintaining quick and
quality service.
PE5 The taste of the food is suitable for others.
PURCHASE DECISION 1 2 3 4 5 SOURCE
PD1 I am happy with my decision to buy products
from fast food.
PD2 I will positively suggest fast food to others.
Hanaysha, 2018
PD3 I often buy fast food.
PD4 I would like to buy fast food in the future.
PD5 I am completely satisfied with my purchase.

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