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RP 2 Final Report Revise
RP 2 Final Report Revise
With the blessings of Almighty Allah who is most merciful and beneficial, we are very delighted
to present our little contribution to the development of this research. We are grateful to our
faculty, without his help and guidance this research would not have been completed. We hope
that our research project could be informative to other professionals.
Table of Content
Chapter # 1 – Introduction
The fast-food industry is highly competitive, and companies within this sector constantly strive to
attract and retain customers. One key factor that influences consumer behavior is their perception of a
company's corporate social responsibility (CSR) initiatives (Smith, J., Johnson, L., & Davis, R (2022).
Understanding the impact of CSR perception, customer satisfaction, and price fairness on purchase
intentions can provide valuable insights for fast food businesses to develop effective marketing
strategies However, there is a need to demystify the relationship between CSR perception, customer
satisfaction, price fairness, and purchase intention in the fast-food industry (Calvo- Porral & Levy-
Mangin, 2016) While previous studies have examined each of these factors individually, there is limited
research that explores the interplay between these variables specifically within the context of fast-food
consumption. By examining these variables and their relationships, this research will provide a
comprehensive understanding of the factors that influence purchase intentions in the fast-food industry
(Jones, M., Smith, K., & Brown, R. (2021). The findings can inform fast food businesses about the
importance of CSR perception, customer satisfaction, and price fairness in attracting and retaining
customers, and help them develop effective marketing strategies to enhance purchase intention.
To examine the impact of CSR perception, satisfaction and price fairness on consumer’s
purchase intention in context of fast food industry
1.4 Research Question:
Our study has repercussions for marketing managers, strategist, policy maker, practices and research
also not just in the issue of the food business but also in the generosity sector. Marketing managers are
essential decision makers as they are the people who makes strategies to sell out their products, make
marketing plans that how to attract buyers, draws policies regarding how pricing fairness, CSR, and
satisfaction effects on purchase intention. Reason behind why this study Significance for marketing
managers is that they will find what is the main reason that effects purchase intention whether it is
CSR, price fairness or satisfaction. By studying this they will surely take steps to avoid unnecessary
things and adopts fruitful strategies. Researchers are the people to whom this study also significant
because when they do research on the topic relate to study they will find many things that will help in
their research process like what are the variables that effects purchase intension? How to overcome
dissatisfaction of customer and so on? Policy makers are the other who can take benefit of this study,
as there are reasons that why the purchase intention of customers are effected? What policies should be
make about the price, that it indicates the reasonable price. How to satisfied the customer that they will
intend to repurchase next time?
Although our study explains the primary aspects that may influence the perception and behavior
of customers in the fast-food industry towards the purchase intention. There are number of
limitations that limit this study. Firstly, this study includes the data only of Karachi, Pakistan and
has been conducted in the fast-food industry hence, the results and the conclusion of this research
might not be generalizable to other cities and industries. Secondly, the factors namely brand
loyalty and values have not been taken into account of in this study. Moreover, cross sectional
study was conducted.
2.2.2 Satisfaction
A satisfied customer is likely to make purchase decision then keep using same brand in future as
well. The satisfied customer is expected to continue purchasing same brand it means satisfaction
directly impact on customer purchase intention many studies conducted in past on it few are
discuss here.
Customer satisfaction holds a strong relationship with their purchase intention. It enhances the
customers’ purchasing behavior and also increase their confidence of purchasing other products
(Cardozo, 1965; Yip, Chan, Kwan, & Law, 2011) in this study discussed the customers’
satisfaction increases purchase intention of same brand satisfaction means product same as
customers’ perception which the seller build in his mind and in case of any issue regarding
product/services they can immediately resolve it with compensation such as discount and coupon
etc. It has been shown that satisfaction with a business can influence purchase intention
(Alnawas & Aburub, 2016; Yu, Han, Ding, & He, 2021). Defined customer satisfaction when
the customer is fulfilling his high expectation related to his product or service”. Olive (1980).
Satisfaction is defined as numerous qualities or new capacities could finish and again need or
want of any consumer all through for better means when compared with rivalry. Argue with the
fact that is sort of fulfillment through different divers research workers in different ways. If an
organization completely full fill the consumer wants by the giving a product or service. The
more prominent or may be decreases fulfillment of any customer will rely on the standers
organization qualities which are accessible from an organization. Customer satisfaction emanates
from the assessment of anticipated performance against the real perceived performance and the
paid price (Abedi & Jahed, 2020). In this study discuss that customer satisfaction is a typical
performance measures it can be say that the gap between customer expectation and actual
experience when an organization fulfill the customers’ expectation customers got satisfaction its
directly Impact on purchase intention. Satisfaction contributes to repeat purchases.
CSR
Perception
Satisfaction
Price Fairness
Purchase
Chapter # 3 – Methodology
We used explanatory purpose because we are working with an existing model and expanding on
existing theories in another context. This approach provides the researcher with a wide concept and
then implements research to help them focus on the issues that should be delivered in the future. Its
goal is to figure out why and how something is examined.
Correlational research design is employed in this study. Because we are investigating the relationship
between purchase intension with satisfaction, price fairness and CSR (Corporate Social
Responsibility). Correlational research can look at links between variables, according to Fraenkel,
Wallen, and Hyun (1993), hence this design was appropriate for the study's goals.
In this study, a convenience sample technique was employed to collect data from participants. The study
can obtain a representative sample that includes participants from various demographics, income levels,
and geographic locations. This enhances the generalizability of the findings and allows for insights into
how CSR perception, satisfaction, and price fairness influence purchase intentions within different
segments of the fast-food consumer population. The non-probability sampling approach is another name
for this (Cooper & Schindler, 2014). Where a sample is drawn from a readily accessible or contactable
group of people Grab sampling and availability sampling are other names for this kind of survey.
The primary focus is on individuals who regularly or occasionally visit fast food restaurants and make
purchasing decisions within this industry. The target audience included students who were either
pursuing an undergraduate or graduate degree at any university. We use social media platforms during
our study time to reach our intended audience. This includes individuals from different age groups,
genders, income levels, and educational backgrounds. The available information also supports our
notion that students frequently eat at fast food joints (Harun et al., 2018).
According to Comrey and Lee (1992), Raza et al. (2015), Sharif and Raza (2017), a sample size of 50 is
poor, a sample size of 300 is good, a sample size of 500 is very good, and a sample size of 1,000 is
excellent for factor analysis. These recommendations were used to determine the sample size for the
data.
Several statistical techniques may be used to analyses and interpret the data for the study on explaining
how CSR perception, satisfaction, and price fairness affect purchase intention in the fast-food business.
Examining the effects of independent factors (such as CSR perception, satisfaction, and price fairness)
on a dependent variable (such as purchase intention) is possible via regression analysis. Multiple
regression analysis can be employed to assess the combined influence of these factors while
controlling for other relevant variables. This analysis helps identify the specific impact and
significance of each independent variable on purchase intention. Structural Equation Modeling (SEM)
allows for testing complex relationships among multiple variables simultaneously. It can be employed
to create a structural model that examines the direct and indirect effects of CSR perception,
satisfaction, and price fairness on purchase intention. SEM can also capture latent variables and assess
the overall fit of the model to the data. these statistical techniques can provide insights into the
relationships and effects between CSR perception, satisfaction, price fairness, and purchase intention in
the fast-food industry.
The measurement model in the study "Demystifying the Influence of CSR Perception, Satisfaction &
Price Fairness on Purchase Intention in the Fast-Food Industry" entails operationalizing and assessing
the constructs of CSR perception, satisfaction, price fairness, and purchase intention. The research
makes sure that the notions of CSR perception, satisfaction, price fairness, and purchase intention are
precisely quantified, enabling correct analysis and interpretation of the interactions between their
factors. Analysis of the measuring model's validity and reliability is part of its evaluation. Internal
consistency was established because the composite reliability values and Cronbach's alpha were both
over the 0.7 cutoff point (Hair, Howard, & Nitzl, 2020).
Convergent validity
The average variance extracted (AVE) values, which are used to assess for convergent validity, around
0.5 by (Hair et al., 2020), proving convergent validity. The HTMT values (Hetrotrait-Monotrait ratio),
which are another crucial measurement of the measurement model were analyzed to determine the
discriminant validity. The discriminant validity was established because each of these values fell below
the 0.8 threshold (Henseler, Ringle, & Sarstedt, 2015).
Discriminant validly
Discriminant validity, another important measure of the measurement model, was examined through the
HTMT values (Hetrotrait-Monotrait ratio) as shown in Table 3. All these values were below the
threshold limit of 0.8, thus establishing the discriminant validity (Henseler, Ringle, & Sarstedt, 2015).
The hypotheses' descriptions of the constructs' direct links are examined using the structural model.
Statistical methods like regression analysis or structural equation modelling (SEM) are used to test these
correlations. The analysis offers insights into the impact of CSR perception, satisfaction, and price
fairness on purchase intention in the fast-food business and allows for the evaluation of the strength and
significance of these interactions.
3.8 Questionnaire and Measurement Instrument:
The information was gathered via a questionnaire using a 5-point Likert scale, from strongly disagree to
strongly agree. The survey was adopted from earlier investigations. The variable purchase intention was
measured by 6 items, and the items for purchase intention were adopted from Harun et al. (2018). The
Variable 2 CSR perception was measured by 9 items and were adopted from Bianchi et al. (2019). The
variable 3 satisfaction was measured using 4 items and were adopted from Bign e, Alvarado, Ald as,
and Curr as (2011), Severt, Shin, Chen, and DiPietro (2020) and the items of variable 4 price fairness
were 4, which were adopted from Hassan, Hassan, Nawaz, and Aksel (2013), Namkung and Jang (2010)
The necessary data that is willingly accumulated from the accused through questionnaire for the
purpose of research study is totally confidential and any type of personal information of
individuals cannot be circulated anywhere. It is purely for the purpose of attaining the research
objective. Also respect for the dignity of research participants is highly prioritized and are not
subjected to harm in any ways.
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