“To study the degree of customers’ satisfaction with McDonald’s services”
Executive Summary
The purpose of this study is to examine the level of customer satisfaction for a fast food chain, Mc Donalds in Singapore. The study identifies the different factors and its impact that leads to the measure of customer satisfaction such as quality dimension, product performance, and perceived customer expectations, price behavior of employee, etc. the data was collected form 100 customer participants via a questionnaire. The study put forwards that the services provided by McDonald’s in Singapore fulfils the expectations of its customers. The study also suggests ways to enhance the level of customer satisfaction through cost leadership approach, total quality management and feedback mechanism.
Chapter 1: Introduction
Research topic is to study the degree of customers’ satisfaction with McDonald’s services.
This research has wide scope for the marketers, organizations and readers including students and researchers to develop their understanding how the services can be improved to enhance customer satisfaction level in fast food industry. In this competitive business environment, it is mandatory for the firms to maintain customer satisfaction level to achieve the success and get competitive advantage over the competitors. Therefore, the consideration of customer satisfaction is essential for the firms to achieve the growth in the market that is possible through providing the quality services to the customers. Regarding this, the undertaken research can be helpful for the marketers to determine the factors that contribute to the satisfaction level of the customers.
Apart from this, the outcomes of this study are significant for the firms to determine any gap in their services and get effective ideas to develop strategies to improve services to enhance satisfaction level of the customers. As an academic perspective, the undertaken study is significant for the researchers and scholars because this study is valuable to add in existing literature review to develop theoretical aspects regarding the factors facilitating the improvement in customer satisfaction and ways to improve services for customer satisfaction. Along with this, this study has wide scope for the researcher
1.3 Motivation and background of research:
The key motivation behind conducting this study is its contribution to the fulfilment of Masters Programme. It is a study of Master of business Specialisation that will be helpful for the researcher to complete his master degree. The fulfilment of this degree after completion of this study is beneficial for the researcher to make a career in business line or marketing field. Apart from this, nowadays, customer satisfaction is major concern for the businesses due to changing needs and requirements of customers and fierce competition in the market. Therefore, this research is helpful for the researcher to make a career as marketing manager, who design better strategies to increase the sales of the company through customer satisfaction. The focus on this research is helpful for the researcher to adopt better practices to handle the challenges related to customer satisfaction and contribute to the success of the organization.
Customer satisfaction is the key aspect for a business success. It is because customer satisfaction shows the positive attitude and experience of the customers towards the product or brand. It is beneficial for the firms to increase the number of satisfied customers to increase repurchasing and mouth-of-publicity for achieving high growth in the market (Al-Tit, 2015). According to Tan et al. (2014), firms need to understand the customers’ needs and requirements to meet their expectations successfully and increase their satisfaction level. One of the growing industries is fast food industry globally as its market value was $539.63Billion in 2016 and expected to grow above $690.80 Billion in 2022 with growth rate of 4.20% annually (Zion Market Research, 2017). Concerning, the brand value of the 10 most valuable fast food brands worldwide is as below:
Figure 1: Brand value of the fast food brands in 2017 (in million $)
(Source: Statista, 2017)
McDonald’s adopts better strategies as compared to its competitors to increase customer satisfaction. But, McDonald’s is facing competition from other brands that raises the need of adopting effective strategies to enhance customer satisfaction level consistently (McDonald and Wilson, 2016). Therefore, marketers need to make extensive efforts to enhance customer satisfaction to retain customers to maintain their position in the marketplace (Cao and Kim, 2015). The success of customer satisfaction practices depends on the ability to compete and understand the customer perceptions and provide value to manage the total customer experience (Liu et al., 2017).Singapore is a famous international travel destination because of its rich culture and beautiful sites and hospitality of the Singaporean people (Henderson, 2016). At the same time, there is high demand of fast food showing by the below graph:
Figure 2: Market value of the fast food industry in Singapore (in million U.S. dollars)
(Source: Statista, 2017)
Therefore, it is required for the fast food companies like McDonald’s to meet the expectation level of customers and increase their satisfaction level to increase the market share in the market of Singapore (Namin, 2017). In relation to this, the study of customer satisfaction reveals the perceptions of customers at different branches of McDonald’s in Singapore including Toa-Payoh, DhobyGhaut and Sentosa, which receive more number of customers and have more employees. So, it is critical to study the customer satisfaction for addressing the customers’ expectations to evaluate the success factors and deficiencies of the McDonald’s services.
Following research objectives are fulfilled to after completion of this study:
- To evaluate how the customers are satisfied by the services provided by McDonald’s
- To suggest the methods to improve the services to satisfy their customers
The below research questions are answered by conducting this research:
- What are the factors that measure the satisfaction of customers of McDonald’s?
- Whatt are the deficiences of the services of McDonald’s?
- Is services provided by McDonald’s fulfill the expectations of cusotmers?
- What are the ways by which McDonald’s can improve upon its cusotmer satisfaction in fastfood service industry?
In order to achieve the research objectives, the following hypotheses are tested and approved or rejected:
- Null Hypothesis: Services provided by McDonald’s do not fulfil the expectations of customers.
- Alternative Hypothesis: Services provided by McDonald’s fulfil the expectations of customers.
Overall, this chapter provides guidance to the researcher for conducting the research by explaining research objectives and questions. It also provides the idea about the research and scope of the research topic. In additon, this chapter also explains the motivation behind conducting this research signfcantly.
Chapter 2: Literature Review – Customer Satisfaction by Service Quality
This is one of the main chapters of the research study that allows the researcher to develop the depth theoretical understanding of the research issues and objectives. In this chapter, the researcher collects data and information from the previous literatures and articles and analyse them to reach at the specific conclusion. The aim of this research is to identify the ways from the company can improve the customer satisfaction level in the fast food service industry. This chapter mainly deals with the key concepts related to the customer satisfaction. Moreover, this chapter also includes the theories related to customer satisfaction and satisfaction dissatisfaction theory. At the same time, this chapter also represents and enhances the knowledge on the various theories and models that are related to the customer satisfaction.
2.2 Concepts related to customer satisfaction
According to Ryu et al., (2012), customer satisfaction is a kind of the marketing term that is used in the marketing activities of the companies. It determines the level of the organisational service and product in the context of the customer expectation. A company’s product that is able to meet the customer expectation defines the high level of the customer expectation. In the same concern of this, the words of Siddiqi (2011) defines that customer satisfaction can be defined as the part of the customer experience with a brand and company. It determines that how effectively, the offered product by the company completed the requirement of the customers. In the business environment, there is an expectation that a satisfied customer of the company retain with the company for long time.
The views of Eid (2011) explored that customer satisfaction is one of the common objective of each business that is related with the fulfilment customer needs by offing the service and products. It is also related with the quality of the service in the business. Typical, the level of the customer satisfaction is related to the quality of the service. A company that wants to increase the market share profitability then it becomes essential for the company to focus on the quality of the service to satisfy the customer. It helps to increase new customers as well as retain the existing customers. In a competitive marketplace where businesses compete for customers; customer satisfaction is seen as a key differentiator. Businesses who succeed in these cut-throat environments are the ones that make customer satisfaction a key element of their business strategy. Customer satisfaction is the measure of how the needs and responses are collaborated and delivered to excel customer expectation. It can only be attained if the customer has an overall good relationship with the supplier. In today’s competitive business marketplace, customer satisfaction is an important performance exponent and basic differentiator of business strategies. Hence, the more is customer satisfaction; more is the business and the bonding with customer (Zablah et al., 2016).
Customer satisfaction is a part of customer’s experience that exposes a supplier’s behaviour on customer’s expectation. It also depends on how efficiently it is managed and how promptly services are provided. This satisfaction could be related to various business aspects like marketing, product manufacturing, engineering, quality of products and services, responses customer’s problems and queries, completion of project, post delivery services, complaint management etc. (Jahanshahi et al., 2011).
Customer satisfaction is the overall essence of the impression about the supplier by the customers. This impression which a customer makes regarding supplier is the sum total of all the process he goes through, right from communicating supplier before doing any marketing to post delivery options and services and managing queries or complaints post-delivery. During this process the customer comes across working environment of various departments and the type of strategies involved in the organization (Liu et al., 2011). This helps the customer to make strong opinion about the supplier which finally results in satisfaction or dissatisfaction.
2.3 Factors that measure the satisfaction of customers
The literature of customer satisfaction highlights different factors that measure satisfaction of customer in effort to secure a loyal customer. The measure of customer satisfaction is a motivation for the organization to improve the product features as per the customer needs to fulfil their expectations and improve service delivery to enhance satisfaction level (Ernst et al., 2011). Thus, it can be said that measuring the satisfaction level of customer is essential for product and service transformation.
According to Navimipour and Soltani (2016), employee behaviour is an influencing factor that measure customer satisfaction. In addition to this, the study emphasizes on the staff behaviour, timeliness and cleanliness as essential factors that contribute in the satisfying customers. This implies that customer satisfaction initiates with the organizational members. In support of this, the study of Zablah et al. (2016) states that employees who are satisfied with their job tend to perform job activities and interact with customers happily and with positive attitude. Employee attitude would ‘touch’ and reflect in every transaction and interaction between customers and your company. Positive employees would know that providing great customer service is not just about being courteous and polite, but extends to cover many different realms. For example even if a sales person were working on commission, they would not lie about a product / offering of the company. They would be completely honest and provide the customer with the whole truth. Employees dealing directly with customers would ensure that they provide speedy, efficient and high quality responses and service to all customers, irrespective of the size of the customer’s business (Rigdon et al., 2011). A clear indication of positive employee attitude would be that whoever interacts with a customer, would remember to thank the customer for doing business with them. In addition, they would remain calm and positive even in the face of high-stress situations such as customer complaints. In brick and mortar stores, positive employee attitude can be reflected by being courteous and helpful even to customers who may not buy too much or at all. The fact is a business can never be sure as to which ‘visitor’ eventually becomes their biggest customer.
In the views of Jahanshahi et al. (2011), customer service plays an important role in measuring customer satisfaction. According to Kursunluoglu (2011), customer service is a predictive variable of customer satisfaction. It can be said that the experience of customer service results in either dissatisfaction or satisfaction of customer where high customer service such as building rapport, listening to customers, resolving issues and complaints, etc. (Jahanshahi et al., 2011) are associated with customer satisfaction. Businesses, no matter the size, should see every customer as a person making a conscious decision about where to spend their money. They chose you, so it’s your job to keep them coming back. Providing exceptional customer service from hiring knowledgeable employees to implementing a personalized complaints department goes much further than having the lowest possible prices and less-than-adequate customer service. Customers will return if they can talk to a real, well-educated person when they call your business phone, according to Small Business Software. Telephone customer service must be quick, polite and end with customer satisfaction. This doesn’t necessarily mean handing out free stuff when something goes wrong, but you can offer partial discounts and gift cards so they will return (Rigdon et al., 2011). Customers will return if they can visit website and find a phone number and/or email address on the front page of the site. Customers will return if employees are knowledgeable about the products sell–whether cutting edge technology, competitors’ prices or where to find certain items in the store. Customers will return if every single one of employees seems excited about his job and turns that excitement into excellent customer service.
Ren et al. (2016) also states that measuring customer satisfaction is measure of customer experience during the purchase and post purchase of the products. The author viewed that customer experience from the product or service results in creating an environment of satisfaction. It was put forwards that customer experience is an emotional measure of customer satisfaction which is reflected through customer opinion and experience in using the product or consuming services. Thus, it can be understood that customer experience is a predictive measure of customer satisfaction.
2.3.4 Organizational Relationship with Customers
In similar context, Liu et al. (2011) studied the relationship factors of customer satisfaction. The author found that organizational relationship with customers shapes customer expectation with the organization where service performance impacts customer satisfaction. The study recognized that service performance affects the customer psychological response and evaluation of overall satisfaction. It can be understood that quality of past service encounters and experience is another factor that affect satisfaction level of customers.
The study of Ren et al. (2016) mentions the assimilation-contrast theory of customer satisfaction which presents view of post evaluation of product performance. According to the theory, if product performance meets the acceptance criteria of customers by meeting few expectations, the discrepancy would be ignored as assimilation will work where performance is considered to be acceptable. On the other side, if performance do not meet acceptable level and is rejected then contrast will operate making the difference visible that led to unaccepted product/service and lead to dissatisfaction and negative behaviour of the customer.
On the different side, the study of Malik et al. (2012) revealed that the price factor holds a high relevance in measuring customer satisfaction as compared to the customer service. Price is an important factor to measure satisfaction of price sensitive customers as it influences the buyer experiences and perception of quality associated with product and services. This is also an indicative that price sensitive customer sees price factor to judge quality which affects customer satisfaction.
The study by Rigdon et al. (2011) mention that customer satisfaction is evaluated based on customer expectation form the product or service and actual product/service experience. The measurement of customer satisfaction is related to the comparison based on actual product/service performance with expectation and perceived product/service quality in the minds of the customers and actual experience with the product/service. This can be related to the consistency theory of the customer satisfaction which underlines that any gap in actual product performance and customer expectation create some kind of strain/ tension that affect the satisfaction level from the purchase product or service consumption.
On the other hand, Jakpar et al. (2012) argue that product quality is an important measure of customer satisfaction. The study revealed that quality has a direct effect on the satisfaction and constructive behavioural intentions of customers. It can be understood that product quality is a relevant concept vital to fulfil the customers’ needs and expectations as it represents totality of product features and potential to satisfy customer needs. This further determines the customer satisfaction by making the product acceptable by the customers. Jahanshahi et al. (2011) mentions the criteria for product quality that influence satisfaction of customers such as safety, comfort, design and functional attributes for post choice evaluation of judgement. Apart from this, several studies have also indicated factors like cost, quality, product performance, product efficiency, personalized services and compliant management process bearing a significant impact on the customer satisfaction. It can be noted that product attribute and performance characteristics are considered to be a vital measure of customer satisfaction.
2.3.9 Internal and External Associated
This can be related to cue utilization theory of customer satisfaction as stated in Wu et al. (2011) which suggests that the cues both internal and external associated with product or services are indicators of quality of product and service. These cues are utilized by customers to determine the quality such as physical feature, cost/price, brand image, etc. which influence customer expectation from the product/service and affects satisfaction of customer. This is recognized in the study of Ernst et al. (2011) which specify that performance of the product is closely linked to the both customer service and satisfaction. A good product performance leads to less complaints and less involvement of customer services operations to resolve issues which leads to satisfaction from the product being purchased.
Thus, several studies related to customer satisfaction highlight the factors that are responsible to measure level of satisfaction among the customers for a product, brand or service when the product/service or particular brand is able to fulfil the customer needs and meet expectations of customers.
Eid (2011) mentioned innovation referred to the changes and creation of more reliable process, ideas, and products that is being sold to the customers. By involving in the innovation process, the company plans to offer specialised services which are distinct from the others. Innovation in the products improves the quality of the products, and attracts larger number of clients. Quality products are improved, which results in maximum customer services.
2.4 Ways to improve the customer satisfaction
The research study is conducted by Flint et al. (2011) demonstrate that the there are various ways that are helpful in increasing the customer satisfaction in which to increase the quality of the service is main way to can provide the great improvement in the customer satisfaction. In the market, each customer wants to use a product that completes the each parameter in the context of the quality. In the support of this, Grissemann & Stokburger-Sauer (2012) posited that in the market, the number of the people is high that have to use the high quality products as compared to cheapest product. So that companies can increase the investment to increase the quality of the service and product.
2.4.1 Multichannel Support Service
In the words of Angelova & Zekiri (2011), in order to increase the customer satisfaction level, food service companies can concern on providing the multichannel support service. In this, companies can prepare and implement the effective strategy that where company can communicate with the customers with the help of the various sources of the communication such social, mobile, web chat, and email.
Furthermore, the research study of Saeidiet al. (2015) represents the discussion on the disconfirmation theory that is a significant theory of the customer satisfaction that determines that the customer satisfaction is related to the size and direction of the discrepancy between the prior expectations of the customer and performance of the product of the company. This theory focuses needs and requirement of the customer. By the application of this theory, a company in the food industry can easily improves the customer base because it emphases on the expectation of the customers.
On the other hand, the research study conducted by Ganguli & Roy (2011) on the customer satisfaction, where research developed a conclusion and explored that the consideration of the company on the SERVQUAL model helps to improve the customer satisfaction. SERVQUAL model is a well-known in the management tool that is developed by Valarie Zeithaml, A. Parasuraman and Leonard Berry in year 1988. The main aim of this tool is to increase the quality of product and service. An increase in the quality of the good and service provides the competitive advantage to the company. Zhao et al., (2012) supported the views of above research and argued that the primary nature of this analysis is to make the quantitative analysis. SERVQUAL model contain the mainly ten dimensions such responsiveness, competence, credibility, knowing the customer, credibility, communication, access, reliability, courtesy, tangibles. In this model, each dimension is related to the different measure. But, the all the dimensions have the common objective to increase the increase the customer satisfaction by increasing the quality of the service.
According to SERVQUAL model cited in Cao and Kim (2015), it is required for the firms to focus on service quality to measure the gaps between expectations of the customers and their perceptions of the actual performance of service. It is based on five dimensions of service including tangibility, reliability, responsiveness, assurance and empathy. Tangibility is related to the physical characteristics regarding the services like interior design, the appearance of employees, etc. whereas reliability refers to the ability of service provider to offer accurate and dependable services (Jahanshahi et al., 2011). On the other hand, responsiveness is related to willingness of the firm to support the customers through fast and efficient service performances. At the same time, this dimension of the model reflects the ability of the firm to promptly and efficiently solve customer requests and problems. In addition, assurance dimension refers to the diverse features that are crucial to provide confidence to customers including specific service knowledge and polite and trustworthy behaviour of the employees at workplace (Jakpar et al., 2012). Apart from this, empathy is relayed to readiness of the firm to provide personalized services to each customer. It is significant to develop trust and loyalty of the customers due to increase in satisfaction level.
According to the research of Ryu et al., (2012), it is analysed that the customer satisfaction can increase by building the customer loyalty. The customer satisfaction has no value or it might be worthless if the organisation unable to make loyal customer. The loyal customer does not think about the price of the product because they need high quality products. The customers also create positive relations with the organisation if they have good satisfaction. In order to build customer loyalty, the organisation can focus on the increment of customer satisfaction by using different ways such as celebrating special occasions, define product uses to customer, invest in self-service, talk to customer, etc. In addition to this, all the ways of building customer loyalty are helpful for an organisation to improve satisfaction level of the customer.
2.4.4 Avoiding Make the Mistakes
On the other hand, the satisfaction level of the customer can also be increased by avoiding make the mistakes. From the research finding of Eid (2011), it can also be defined that the mistakes can make unhappy to the customer. For this, the organisational employees should ignore the wrong feedbacks of the customer and also use polite words to make happy to the customers.
The managers should take personal feedback of the customer and make them understand about the mistake. Additionally, it is also necessary to take timely survey to understand the customer needs and demands to highly satisfy them. At the same time, Flint et al. (2011) supported that the customer expectations should also set early by the management to reduce the common mistakes. This expectancy of the customer can be analysed by the sales person after identifying the regular demand. The customer expectations should be fulfilled by the business to satisfy the customers.
The above literature review reflects the factors measuring the satisfaction level of the customers and ways to improve customer satisfaction level by using different theories and concepts related to consumer buying behaviour and satisfaction level. From the literature review, it can be summarized that employee behaviour, timeliness and cleanliness, organizational relationship with customers, personalized services, product performance, price, quality, physical feature and brand image are the major factors that determine the consumer satisfaction level. At the same time, this literature review also suggests some ways to improve customer satisfaction including multichannel support service, better quality, tangibility, reliability, responsiveness, assurance and empathy. This literature review reflects views and opinions of several authors regarding customer satisfaction but at the same time, it does not include more real examples from the food sector that is main consideration of the undertaken study. Apart from this, some studies are based on secondary data that reduces the validity and reliability of the research outcomes. Most of the studies describe different factors and ways with dissimilarities as there is need to conduct a study that could determine the authenticity of the existing literature.
Chapter 3: Research Methodology
This introduction part has a crucial role to play in the attainment as well as achieving the research. The main cause behind it is that it helps the researcher to obtain an in-depth and detailed outlook in regard with the various aspects of the research such as the techniques, approaches, methods, etc. which are been used by the researcher to fulfil the research. At the same time, obtaining detailed insight also helps the researcher to generate valid outcomes. This chapter of the research also will assist the researcher to obtain in-depth knowledge of the various techniques used for data analysis, the various methods of data collection, etc that make it simpler for the researcher to attain the already set objectives and also to complete the research on time. This chapter emphasise on the overview of methodology such as research methods and data collection method for the study. It reflects on identifying the detailed aspects of the research methods to operationalize the study such as selection of data, data collection, sample size, sampling method, data analysis for customer satisfaction of McDonalds customers. Hence, it is stated that research methodology hold an important role to play in the success of the research.
This section of the research also hold significance as it helps to provide the required crucial information which is vital for the researcher. This helps him to understand and gets an idea about which data is to be used and which is to be analyzed further. Therefore, to gain an understanding of the backdrop of the research and nature of issues associated with the research, the philosophies provide valuable guidance to the researcher. It influences the way the researcher carry out the research to achieve convincing results. The research philosophy provides fundamental principle and form assumption to develop framework to understand the nature of research issue for collection of data requirement, its analysis and utilisation to produce a reliable finding. It helps in the development of necessary contextual knowledge to gain an understanding of research nature (Creswell, 2013). The research philosophy includes the four kinds such as pragmatism, positivism, realism and interpretivism. The researcher adopted positivism philosophy to find actual measurable facts. Positivism philosophy focused on observations to attain realistic understanding which is critically examined and computable by means of statistical methods (Moon and Blackman, 2014).This philosophy shaped consideration, assumptions, knowledge, beliefs and judgement of the researcher.
The justification to the research assumption, analysis and interpretation of results according to nature of research issue is concerned with the research approach. This part generally helps the researcher to obtain the detailed understanding of the various underlying issues of the research that help in its accomplishment. Thus, it provides justification for the techniques and methods employed for data collection and analysis to collect appropriate data to reach desired outcomes. The research approaches are generally divided into inductive, adductive and deductive research approach. Deductive approach is preferred as it allowed researcher to develop hypothesis to produce systematic results. This research approach works form more general to more specific by developing hypothesis and observation. The hypothesis is developed based on existing philosophy and assumptions (Crowther and Lancaster, 2012). On the other hand, the inductive research approach does not consider the hypothesis testing in the research. Additionally, the researcher preferred deductive research approach as it avoid risk and there is availability of short time to complete the research. Deductive research approach explores a known phenomenon and test the validity of the theory is valid in a logical way (Crowther and Lancaster, 2012). In this approach the reasoning initiates with a theory towards a new proposition. The theory was assessed by with study observations to either reject or confirm the hypothesis. Generally, inductive approach is more suitable with the use of interpretivism philosophy and deductive approach is used with positivism philosophy. This approach was flexible and effective in reaching valid results for this study.
3.4 Research Design and Methodology
The research methods consider theoretical assumptions to realize the methodology for data collection and data analysis. This has helped the researcher reach each research question. Thus, it covers the theoretical assumptions serve as guidance for the researcher to fulfil the research objectives in a systematic manner. This part helps the researcher in attaining the various types of information which is needed by the researcher in order to conduct the research study. There are three types of research methods used to conduct the research effectively. The methods are qualitative research method, qualitative research method and mixed research method. The quantitative research method is used when there lays a need to analyze the statistical or numerical data which is gathered by conducting polls, questionnaires, etc. It also helps to conduct the research effectively as well as on time and also serves the purpose of achieving the objectives of the research. This research method is also significant as it helps to get understanding of the actual need of the people on few particular things and conditions. It determined the design of the research and method for data gathering, analysis and interpretation using the quantitative nature of research. It focuses on the evaluation of the relationship among the different variables (O’Leary, 2013) The researcher employs questionnaire method to collect and present quantitative data distribution in form of tables, graphs and charts using data management and statistical tools.
Data collection is a significant aspect of the research. It is used to attain or achieve the research successfully and also for creating the vital information as well as data. The data should be gathered or obtained authentically and should hold the power to cease the outcomes of the research study. It is also used in the hypothesis selection process. At the same time, there are two different ways or methods to gather or obtain the data or information. The two different data collection methods are primary data collection method and the secondary data collection method. They are been used by the researcher as per the issues of the research.
The method of data collection helps the researcher to specify the nature of study. The data collection methods for this research also falls under two broad categories as primary and secondary methods. This research makes use of both these data collection methods to collect primary and secondary data. In regards to primary method, researcher collects facts from the survey and personal observation while secondary method includes existing theories and models within which new study is developed. Under the primary research, the first hand or new quantitative data is collected by the researcher through method of questionnaire. The questionnaire is distributed among the 100 participants to get an effective investigation of research questions to achieve conclusive results. The researcher employs secondary data collection methods such as literature review from eBooks, journals and online available published articles to recognise scope of the research questions. The secondary research provides support to the primary research by providing justification from the literature to the study observation and findings to fulfil the research knowledge gap with respect to research questions.
3.6 Sampling procedure and sample size
Sampling method plays an integral part in this research study as it allows the researcher to collect the data properly with the selection of relevant tools. The sampling procedure saves the extra investment of company in regards to collect valid facts for solving the research problem. There are two types of sampling method exist such as random and non-random method. In case of random method, every individual gets equal chances to become a part of the survey while secondary method is more based on the judgements. Sampling procedure determination is crucial for to get a representative sample from population to gain wide generalisation for the overall population. Here, for this quantitative research, the method of probability sampling is used. This method is preferred as it provides equal chances of population member getting and it provide the researcher to choose participants to get effective results and avoid the issue of bias (Yeager et al., 2011). Moreover, the questionnaire method was suited with random sampling method.
Population Sample: The sample for this research comprises of participants from Singapore customers to get relevant primary research data. This population sample is chosen by the researcher as Mc Donald’s products consumers are easily accessible.
Sample Size: Here, the sample size presents the number of participants selected by the researcher for filling up the questionnaire form from personal distribution and through email to get maximum response. The sample size for the quantitative research can be from fifty to two hundred or more depending upon the nature and objectives of the research to certain a successful statistical analysis to arrive at inferences about target population (Yeager et al., 2011).The sample size decided for the research study was 100 participants to collect evidence for the research questions as to get wide generalization for the Singapore market for McD customer satisfaction.
To address the research question and identify conclusive outcomes from the responses/observation, the collected research data needs to be analysed and evaluated in the most proper systematic way. Thus, the data analysis is the most critical process of a research process. The analysis of collected data confirms the relevance of the research data and provides meaningful information for its successful interpretation of reliable research outcomes. The analysis of data done with caution and proper application of statistical knowledge ensure the achievement of research aim and objectives in an effective and efficient manner. After the collection of primary data, the research data is analyzed using MS Excel, an effective tool for data management tool. This data management tool is also utilized for making charts and graphs to determine the study findings. The graphical representation of collected data helped the researcher in maintaining relevancy in the research study and presenting it in an understandable way. The MS excel is preferred by the researcher owing to its ease of use for distribution of data in different formats in understandable way that lead to reliable outcome for this research. MS excel provides a systematic way for distribution of data and analysis which is useful to draw conclusive findings for each research questions. The excel spreadsheet software is also useful in presenting research data in tabular form to narrow the focus on relevant information and was used in visual representation of data findings in form of charts and graphs. Thus, the use of different features and function of MS excel spreadsheet the researcher was able to properly presents the responses for each question and its findings in table and graphical form to develop a clear understanding of the research outcomes and enabled the researcher to identify specific observations from different formats to address each research questions.
The time factor and the unwillingness of the participants to provide correct response to the questionnaire responses formed the limitation for this research. The sample size also poses a limitation to validate the outcomes. The time constraint and the lack of interest among the participants can bear a negative impact on the study findings and affect the overall results.
It is identified that researcher to achieve successfully the research outcome, there is high needs to consider the ethical issues framework. The researcher provides the relevant data to the research that should not affect the ethics of others. The researcher has certain consideration on the ethics during the secondary data collection. The researcher has focused on the copyright, patent, and plagiarism during the research to overcome the ethical issue. The researcher also pays attention to the referencing and in-texting in the past researched data to remove the problem. The researcher has also followed the roles and parameter that was provided by the university and provide help to remove the ethical problem during the submission of the study.
Chapter 4: Data Analysis – Customer Survey
Q1. Gender
- Male
- Female
Q2. Occupation
Student
Employee
Businessman
Retired
Q3. Whether do you agree that customer satisfaction is an important element of the marketing activity of the company?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Q4. Do you think that a high quality of the of the service leads to the customer satisfaction?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Q5. Are you agreed that employee behaviour in the organisation influences measure customer satisfaction?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Q6. Do you think that organisation step to develop the effective relationship with the customer is helpful to provide customer satisfaction?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Q7. Whether the performance of the service of the organisation determines the customer satisfaction?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Q8. Do you think that in order to determine the customer satisfaction, the role of price policy of the company is effective?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Q9. Do you think that company performance regarding the meeting with the customer expectation is significant in the determination of the level of the customer satisfaction?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Q10. Are you agreed the behaviour of employee and staff is major factor that is essential to measure customer satisfaction?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Q11. In your views, whether internal and external associated with product or services are indicators of quality of product and service and customer satisfaction?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Q12. In your views, whether the consideration of the company to increase the quality of the service or produce can be helpful to increase the customer satisfaction level?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Q13. Do you think that a restaurant and food chain organisation can increase the customer satisfaction by focusing on the cost leadership strategy?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Q14. Whether the adoption of the total quality management and other method can be effective in the increasing the level of the customer satisfaction?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Q15. Are you agreed that to take the feedback from the customer on product and service is helpful to improve the customer satisfaction?
- Strongly Agree
- Agree
- Neutral
- Disagree
- Strongly Disagree
Result of survey
The survey has been taken from 100 customers of McDonald’s
Table 1: Gender
| Gender? | |
| Male | Female |
| 62 | 38 |
Figure 3: Gender
From the above table, it is identified that most of the respondents were male as compare to Females. Likewise, around 62% male members are responded for the survey questions while only 38% females are responded the survey. On the basis of this, it is stated that female are participating less as compare to males once.
Table 2: Occupation
| Occupation? | |||
| Student | Employee | Businessman | Retired |
| 42 | 22 | 20 | 16 |
Figure 4: Occupation
From the above table, it is illustrated that 42% people who are student in occupation provide the response on the survey questions. On the flip side, the 16% respondents are retired person, 20% are businessman and 22% are employees. This indicates that the students are more active for answering the research questions. Hence, it is stated that students plays important for completing this research study.
Table 3: Customer satisfaction is an important element
| Whether do you agree that customer satisfaction is an important element of the marketing activity of the company? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 43 | 20 | 6 | 20 | 11 |
Figure 5: Customer satisfaction is an important element
From the graph, it is interpreted that majority of respondents believed that customer satisfaction is an important element of the marketing activity of the company. However, 63% people strongly agree on this statement while only 31% people deny this fact that customer satisfaction has not played important role in marketing activity.
Table 4: High quality of the service
| Do you think that a high quality of the of the service leads to the customer satisfaction? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 29 | 31 | 5 | 17 | 18 |
Figure 6: High quality of the service
From the above pie chart, it is identified that 60% respondent believed that high quality of the service leads to customer satisfaction. On the other hand, 35% people feel that the high quality of service does not have any effect on consumer satisfaction. However, it is identified that high quality of product attracts more consumer and it leads to increase the satisfaction.
Table 5: Employee behaviour in the organisation influence
| Are you agreed that employee behaviour in the organisation influences customer satisfaction? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 32 | 28 | 2 | 20 | 18 |
Figure 7: Employee behaviour in the organisation influence
From the above graph, it is interpreted that employee behaviour has a strong impact on the consumer satisfaction level. However, around 60% respondents are agreed on the statement. It is identified that if employee behaviour towards the consumer is positive then the customer become loyal towards the brand. As per a study conducted by Zablah et al., (2016) satisfied employees usually perform better and communicate the associated customers satisfaction. It is possible to infuse positive attitude in the customers, which is the major requirement to make the sales.
Table 6: Organisational step to develop the effective relationship
| Do you think that organisation step to develop the effective relationship with the customer is helpful to provide customer satisfaction? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 32 | 26 | 4 | 20 | 18 |
Figure 8: Organisational step to develop the effective relationship
On the basis of this graph, it is rightly stated that organization step is to develop the effective relationship with customer will result in customer satisfaction. Likewise, 58% respondent agreed on that developing a relationship with customer always contribute towards the customer satisfaction. For creating relationship, it is requires to offer discounts, schemes and coupons to the target consumer. This practice will help to assist in building the relationship with customers. Liu et al., (2011) examined the relationship between the customer satisfaction and the external factors associated with the customer services. Organisational relationship with the buyers orients around the customer expectations of the company. The services performances are improved through the psychological response system, where the customer satisfaction is examined at different phases.
Table 7: Performance of the service of the organisation
| Whether the performance of the service of the organisation determines the customer satisfaction? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 22 | 38 | 3 | 22 | 15 |
Figure 9: Performance of the service of the organisation
On the basis of this graph, the majority of respondents illustrated that performances of service of the organisation has an impact on customer satisfaction in a positive manner. Likewise, if company focus more on its service quality then the larger customer can satisfy. In regards to this, 60% respondents provide their acceptances on the statement. As specified by Kursunluoglu (2011) factors related to customer services are the predicted variables to understand how customer satisfaction level can be improved. Customer service experience can either lead to the buyer satisfaction or dissatisfaction level. An analysis is done to calculate the factors the dissatisfaction level, and work on improving it. Changes are introduced through building rapport with the clients and hearing the customer issue. Compliant handling process has to be prompt as it increases the business performances.
Table 8: Determine of the service of the organisation
| Do you think that in order to determine the customer satisfaction, the role of price policy of the company is effective? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 18 | 38 | 7 | 22 | 15 |
Figure 10: Determine of the service of the organisation
From the above study, it is illustrated that price policy proves to be effective in terms to determine the customer satisfaction. Likewise, customers focus more on the price after product quality and then take the buying decision. Therefore, it is rightly stated that company price policy has a direct impact on the consumer buying decision. As per the pie chart, 56% provide agreement on this survey question. Malik et al., (2012) conducted a detailed analysis on the price factor that could impact the customer satisfaction level. Accurate and reliable pricing system is introduced to increase the customer service level and to retain the buyers. Pricing factor is an important aspect that is included in the evaluation part to improve the customer satisfaction level.
Table 9: Company performance regarding the meeting
| Do you think that company performance regarding the meeting with the customer expectation is significant in the determination of the level of the customer satisfaction? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 28 | 36 | 2 | 14 | 20 |
Figure 11: Company performance regarding the meeting
As per the above study, it is identified that the meeting of customer expectation with the organization service will result in satisfaction of consumer. On this statement, 64% respondent agreed and described that if consumer fulfil their expectation with any product then they satisfy maximum. Rigdon et al., (2011) conducted a study to apprehend the concept of customer satisfaction level. It is related to the customer expectations, which influences the buyer’s decision to purchase the product and services, essential to retain the tough competition.
Table 10: Behaviour of employees and staff
| Do you agree that the behaviour of employee and staff is major factor that is essential to measure customer satisfaction? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 30 | 30 | 2 | 24 | 14 |
Figure 12: Behaviour of employees and staff
From the above graph, 60% respondent stated that behaviour of employee and staff behaviour has a maximum contribution on the consumer satisfaction. On the other side, 38% people deny this fact and depicted that staff behaviour has no correlation to the customer satisfaction.
Table 11: Internal and external Associated with product or service
| In your views, whether internal and external associated with product or services are indicators of quality of product and service and customer satisfaction? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 29 | 29 | 5 | 18 | 19 |
Figure 13: Internal and external Associated with product or service
On the basis of above study, 58% respondent believed that both internal and external association of product are provide indication towards the quality and customer satisfaction. It means that if product feature is appealing and it has good quality then it surely attracts the customer and makes them satisfy. Ernst et al., (2011) examined the performance of the products and linked it with the customer satisfaction and service level. The best product tends to perform better and receives fewer complaints, from the buyers. Through the operational strategic planning method, a plan can be adopted to increase the customer satisfaction level, which impacts the sales.
Table 12: Consideration of the company to increase the quality
| In your views, whether the consideration of the company to increase the quality of the service or product can be helpful to increase the customer satisfaction level? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 40 | 22 | 2 | 22 | 14 |
Figure 14: Consideration of the company to increase the quality
On the basis of above study, it is identified that, it proves to be beneficial for the company if it is considered to increase quality of product or service. At the same time, approx. 62% respondent provide their agreement on this statement while 36% respondent deny this fact by stating that with consideration of quality related to product & service then also it does not affect the consumer satisfaction. At last, only 2% respondent provides the neutral answer. This means that respondent neither agrees on statement nor denies it.
Table 13: A restaurant and food chain organisation
| Do you think that a restaurant and food chain organisation can increase the customer satisfaction by focusing on the cost leadership strategy? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 36 | 23 | 4 | 20 | 17 |
Figure 15: A restaurant and food chain organisation
From the above study, it is analysed that food chain restaurants increase the customer satisfaction by using the cost leadership strategy. However, the graph also indicates that 59% respondents believed that restaurant and food chain organisation can increase the customer satisfaction by focusing on the cost leadership strategy. On the other hand, 37% people deny this fact that cost leadership strategy contributes towards the customer satisfaction.
Table 14: Total quality management and other
| Whether the adoption of the total quality management and other method can be effective in the increasing the level of the customer satisfaction? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 27 | 31 | 2 | 22 | 18 |
Figure 16: Total quality management and other
On the basis of above table, it is found that quality management method contributes towards the bringing improvement in quality of product and services and it result in customer satisfaction. Moreover, 58% respondent agreed on this and depicted that quality management method are indirectly supports towards the attaining of customer satisfaction. While 40% people deny this statement and lastly, only 2% respondent give neutral answer which means that they are neither favour the statement nor deny it.
Table 15: Feedback from the customer on product and service
| Are you agreed that to take the feedback from the customer on product and service is helpful to improve the customer satisfaction? | ||||
| Strongly agree | Agree | Natural | Disagree | Strongly Disagree |
| 23 | 35 | 2 | 22 | 18 |
Figure 17: Feedback from the customer on product and service
From the above table, it is interpreted that feedback of customer tend to contributes towards bring improvement in the customer satisfaction. However, 58% respondents believed that by receiving the customer feedback then company can make modification and alterations as per the feedback form. Thus, this modification will allow to achieving high satisfaction of consumer. A timely survey is carried out to apprehend the customer needs for the products and demands. This assists in improving the customer satisfaction level, an important factor required to sustain the challenging market.
This section supports the analyze of the research findings and the correlation among the primary and secondary findings. From the data analysis results, it can be discussed that in this survey has involved male and female belong to different occupation even retired persons to analyze the finding in a broader perspective to increase the reliability and relevancy of the existing research .
From the research findings, it can be studied that there is an agreement to the customer satisfaction as an important element for marketing activity. This is due to the fact that customer satisfaction serves as an indicator of loyalty and well as gives directions to marketers about effectiveness of their services and tendency of positive publicity of their products/ brand. It can also be discussed that respondents agree that high service quality leads to customer satisfaction. Quality feature is not restricted to product quality but to its service quality in McDonalds. Quality which is in accordance to meet the customer expectation results in satisfaction. Also, market perceived quality forms customer attitude towards products or services and higher quality leads to more satisfied customers and loyal customers who repeat visit and contribute in generation of high sales and profits. This is in consensus with Eid (2011) that related customer satisfaction with fulfillment of customer expectation through quality services. Employee behavior is also considered to be a significant factor that influences customer satisfaction as agreed by most of the respondents. It can be said that positive and negative behaviors and their interaction with customers impacts the perception of the customer towards a service quality therefore, also pose an impact on customer satisfaction. This can be linked to the finding of Navimipour and Soltani (2016) which put forward that employee behavior, service timeliness affects customer satisfaction in service industries. From the study, it was clear that there was a strong agreement for the initiative to develop effective organizational relationship can result in customer satisfaction. this is essential as it influences the psychological responses of the customers and can also shape the positive impression towards the organization. The finding of Liu et al. (2011) can be related as the author considers the relationship factor essential to shape expectation from the organization and high service performance satisfies the customers. The results also the underlines performances of service of the organization impact on customer satisfaction as per majority of the respondents. It can be discussed that an excellent customer service results in satisfaction of the customers and lack of it in dissatisfaction. An acceptable level of services many not result in satisfaction but a high level of services ensure satisfaction. The study of Jahanshahi et al. (2011) and Kursunluoglu (2011) can be related to customer service as n key role and predictive variable of customer satisfaction.
The finding also considered the role of price policy in achieving customer satisfaction as agreed by many respondents. This is due to the fact the price conscious customers measures their satisfaction with price of the products and give preference to price over customer service. However, for non-price sensitive customers, price is an indicator to form perception about quality and service quality. This is in consensus with the study of Malik et al. (2012) that recognizes price as an essential factor in measuring customer satisfaction of price sensitive customers against service standards.
Consider the meeting with customers expectation is also is significant in the determination of the level of the customer satisfaction as per most respondents. It can be conversed that the measure of customer satisfaction, marketers considers the expectation met by their offered products and services. Thus, customer expectations are considered as a standard to achieve customer satisfaction and their decision to repurchase or consumer their services. This relates well with the study findings of Rigdon et al. (2011) reminds that evaluation of customer based on customer perceived expectation and actual experience with products/ services. This also related to the customer satisfaction theory of consistency that states gap in customer expectation and actual performance creates strain/tension impact customer satisfaction level.
It is also identified that internal and external product cues are indication towards the quality and customer satisfaction agreed by the most respondents. It can be said that store name, price of products and brand along with customer service are factors to measure the overall satisfaction of a customer.
From the questionnaire survey, it is agreed that consideration to enhance quality levels is helpful to enhance consumer satisfaction. It can be argued that high quality of services can lead to specific levels of perceived value for the customer to engage with customers in a positive manner. Thus, customers expect higher services to result in superior satisfaction through enhanced quality service levels. Apart from this, consideration by most respondents was given to a cost leadership strategy for a restaurant and food chain organization to increase the customer satisfaction. It can be discussed that respondents are of opinion that restaurants should focus on reducing their operational cost in order to become or follow a low cost service producer as compared to their competitors. Another method that majority agreed was on total quality management (TQM) to enhance customer satisfaction. From this it can be interpreted that this management approach require participation from all organizational members to improve on products, services, culture and business process to achieve customer satisfaction. In addition, mechanism of customer feedback is considered to contribute towards customer satisfaction by majority respondents. This is effective for the marketers to get the consumer opinion about the product, service quality, service delivery, behavior of staff, timeliness, etc, that can be improved to match customer expectation and needs and lead to more satisfying customers and achieving loyalty.
The existing research was an attempt to understand the customer satisfaction towards the McDonalds products. The result of the study from the analysis of the survey questionnaire indicates towards the acceptance of the fact that services provided by McDonald’s to fulfil the expectations of its customers in Singapore. The customers expectation, service, quality and price factor were considered as the standard belief of consumer about the McDonald products and service. The customer satisfaction was found to be the core of marketing activity as it results in report sales, positive publicity and develop loyalty in customers. The results summaries that the behavior of employees, product performance, service quality dimensions, price factor for price conscious customers, products internal and external cues, and customer expectation are important indicators that contribute in customer satisfaction for the McDonald services. The overall quality and services of products was related to customer perceived values and expectation. On meeting these values and expectation, the customer satisfaction can be determined. The study relates the positive impact of customer satisfaction in positive publicity, repeat purchase and in developing loyal behavior in the customers.
It can be summarized that fast food business the customers expectation along with dimension of quality, service, price and other discussed factors together can be linked to the customer satisfaction of McDonald services. It meets the customer requirements and expectation that are tangible and intangible to meet them with its products and services to achieve customer satisfaction. It is also recognized that cost leadership, approach of total quality management and feedback from customers are some of the effective ways to improve the level of customer satisfaction in McDonald service in the Singapore markets. Thus, the existing study provided a useful insight towards the factors that contribute in customer satisfaction in fast food sector and the level of customers’ satisfaction for the services of McDonald in Singapore.
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