local food chains are better than foreign food chains

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2009 -A Local Food Chains are better than Foreign Food Chains Submitted by: Razia Pukhraj 91022 Samiya Illias 91007 Submitted to: Mr Aslam Soni Statistical Research and Analysis

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Research assignment Hypothesis: Local Food Chains are better than Foreign Food Chains

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Page 1: Local Food Chains are better than Foreign Food Chains

2009-ALocal Food

Chains are better than Foreign Food Chains

Submitted by:Razia Pukhraj 91022Samiya Illias 91007

Submitted to:Mr Aslam Soni

Statistical Research and Analysis

Page 2: Local Food Chains are better than Foreign Food Chains

Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

ContentsIntroduction...........................................................................................................................................3

Statistical Analysis.................................................................................................................................4

Hypotheses........................................................................................................................................4Target population..............................................................................................................................4Sampling method...............................................................................................................................4Sampling distribution.........................................................................................................................4Decision rules....................................................................................................................................4

Analysis..................................................................................................................................................5

1. Frequency of eating out.............................................................................................................52. For a family treat, respondents prefer.......................................................................................53. When dining with friends, respondents prefer..........................................................................64. When at work/school, respondents prefer................................................................................65. From the following restaurants, respondents would prefer to go to........................................76. Respondents prefer to go to the above choice of restaurant because......................................87. Type of restaurant respondents eat more often at...................................................................98. They prefer to go to the above because..................................................................................109. They prefer to dine in a restaurant in......................................................................................1110. Respondents are in the following age bracket...........................................................................1211. Gender.......................................................................................................................................1312. Respondents live in....................................................................................................................1313. Respondents are in the following field......................................................................................1414. Respondents monthly income bracket (in PKR).........................................................................1415. Respondents office/educational institution is located in..........................................................1516. Opinion about local food chains, such as Usmania, Hanifia, Biryani Centre, etc.......................1517. Your opinion about foreign food chains such as McDonald’s, Pizza Hut, KFC, Subway, etc.......1618. Which is safer for health............................................................................................................1619. Which is more economical / value for money...........................................................................1720. Which is a more enjoyable experience......................................................................................17

Conclusion...........................................................................................................................................18

Exhibits................................................................................................................................................20

Pre-test form...........................................................................................................................20 Survey form.............................................................................................................................20 Filled-out pre-test forms (5)....................................................................................................20 Filled-out final survey forms (30).............................................................................................20

Submitted by: Razia Pukhraj and Samiya Illias Page 2

Page 3: Local Food Chains are better than Foreign Food Chains

Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

Introduction

Food chains have started cropping up all over the city. Eating out or ordering in has become very popular, and more and more people are patronising such outlets.

The proposed survey topic is that local food chains are better, and thus more popular among the people than foreign food chains.

The objective of the survey is to establish whether our hypothesis holds true or if the truth is to the contrary.

As the population of Karachi is huge, the survey is conducted through Random Sampling method. The target population covers people from different age groups including children, teenagers, adults, senior citizens and from different professions and income brackets to cover a broad spectrum of typical preferences.

The forms have been designed to capture the demographic data as well as respondents’ likes and dislikes, and reasons for the same. Personal information such as name, contact, etc have deliberately not been requested as people hesitate sharing such info in random surveys.

5 samples were collected in pre-test, and after analysis and required modification of forms, 30 samples were collected for analysis.

Details of the sample statistics, compilation and analysis of data, graphs and deduction are included in this report.

Also attached are

Pre-test survey form exhibit

Final survey form exhibit

Filled-out pre-test survey form

Filled-out final survey form

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Page 4: Local Food Chains are better than Foreign Food Chains

Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

Statistical Analysis

HypothesesNull Hypothesis (HO): Local food chains are better than foreign food chains

Alternate Hypothesis (HA): Foreign food chains are better than local food chains

Target populationPeople from different age groups including children, teenagers, adults, senior citizens and from different professions and income brackets to cover a broad spectrum of typical preferences.

Pre-test survey: # of respondents: 5

Final survey: # of respondents: 30

Sampling method Simple Random sampling

Sampling distribution Binomial expression

Decision rulesHO: true if P >=0.5

HA: true if P <0.5

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Page 5: Local Food Chains are better than Foreign Food Chains

Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

Analysis

1. Frequency of eating out daily:4 weekly:10 monthly:8 less often:6 never:2

Observation: People are eating out more frequently, with the largest section comprising of people who eat out weekly, and surprisingly, some even eat out daily.

2. For a family treat, respondents preferforeign food(pizza, burger, sandwich, chinese food,etc):7local food (nihari, tikka, kabab paratha, biryani, etc):15both local and foreign:7do not dine out with family:1

Observation: As a family, more than 50% respondents prefer local food

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Page 6: Local Food Chains are better than Foreign Food Chains

Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

3. When dining with friends, respondents preferforeign food(pizza, burger, sandwich, chinese food,etc):15local food (nihari, tikka, kabab paratha, biryani, etc):11both local and foreign:4do not dine out with friends:0

Observation:

4. When at work/school, respondents preferforeign food(pizza, burger, sandwich, chinese food,etc): 19local food (nihari, tikka, kabab paratha, biryani, etc): 9do not eat out or do not work/go to school: 2

Observation: At work/school, most respondents prefer foreign food, probably because of convenience in eating fast food as compared to traditional food.

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Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

5. From the following restaurants, respondents would prefer to go to foreign food chain: 15local food chain: 12both: 3

Observation: When asked explicitly which food chain would respondents prefer to go to, it appears that 50% are in favour of fast food chains

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Page 8: Local Food Chains are better than Foreign Food Chains

Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

6. Respondents prefer to go to the above choice of restaurant because

foreign local both

tasty food 13 7 3

cleanliness of restaurant 6 6 2

convenient location 2 5 2

hygienic preparation of food 2 6 2

easy parking 3 3 1

economical 3 6 1

expensive 0 0 0

Observation: The overwhelming consideration is of taste, especially in case of foreign food. In fact, foreign food consumers do not give much weightage to any of the other factors except cleanliness of restaurant, which is the 2nd highest in their list of reasons. Local food fans give more or less equal weightage to all factors, and somewhat similar results for those who chose both options.

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Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

7. Type of restaurant respondents eat more often atlocal food chain: 15 foreign food chain: 7 equally both: 8

Observation: Contrary of the fact that most respondents prefer to eat at foreign food chains (answer 5), yet more respondents eat more often at local local food chains

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Page 10: Local Food Chains are better than Foreign Food Chains

Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

8. They prefer to go to the above becauseforeign local both

tasty food 5 9 8

cleanliness of restaurant 3 6 3

convenient location 2 3 3

hygienic preparation of food 3 7 2

easy parking 1 3 2

economical 2 4 3

expensive 0 0 0

Observation: Respondents prefer to eat more often at local restaurants mainly because of the taste, hygiene and cleanliness.

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Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

9. They prefer to dine in a restaurant inGulshan: 5 Nazimabad:1 Defence: 9 Clifton: 16 Saddar: 1 Tower: 0 Burns Road: 4 Super Highway: 3 Other areas: 1

Observation: Most favourite area for eating out is Karachi District South, especially Clifton area, followed by Defence.

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Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

10. Respondents are in the following age bracket05-15years: 2 15-25years:14 25-35years:9 35-45years:3 45-55years:1 55-65years:1 65+:0

Observation: Most of the people who were surveyed fall within the age bracket 15-35 years.

Observation: Among the majority of the respondents, it is again visible that they mostly eat from local food chains. (compare with Answers 7 and 8)

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Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

11. Gender Male: 24 Female: 6

12. Respondents live inNorth Nazimabad, Nazimabad, FB Area or nearby: 9Gulshan, Gulistan-e-Jauhar or nearby: 5Clifton, Defence or nearby: 9Saddar, II Chundrigar Road, Bunder Road or nearby: 3Malir, Landhi or or nearby: 1Bahadurabad, Tariq Road, Sindhi Muslim or nearby: 2Other: 1

Table of area of residence vs eating in same area or going out of area

Area of residence Prefer to eat in same area

Prefer to go to another area

North Nazimabad, Nazimabad, FB Area or nearby

1 8

Gulshan, Gulistan-e-Jauhar or nearby 4 2

C lifton, Defence or nearby 9 3

Saddar, II Chundrigar Road, Bunder Road or nearby

1 1

Malir, Landhi or or nearby 0 1

Bahadurabad, Tariq Road, Sindhi Muslim or nearby

0 2

Other area 0 1

Observation: Again, Clifton seems to be the area for eating out, as most residents of the area prefer to eat here, whereas residents of other areas prefer to go to other areas. This answer correlates to answer number 9.

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Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

13. Respondents are in the following fieldMedical or health-related: 0 Business: 13 Education: 6 Transport: 0 Engineering or technical: 10 Food industry: 0 Other: 2

Observation: Most of the respondents are well-educated, though unfortunately nobody from the medical or food related industry could be included in the survey, yet it can be reasonably inferred that the educated population will make intelligent choices as regards the food they consume.

14. Respondents monthly income bracket (in PKR)100,000 or more: 8Between 75,000-100,000: 1Between 50,000-75,000: 3Between 25,000-50,000: 725,000 or less: 11

Observation: Comparing respondents monthly income with their preference (Answer 7), it appears that the preference for local food is independent of the income level except perhaps the income bracket between PKR50,000-75,000, which could either be an anomaly due very few number of people from this income bracket, or due to the some other psychological or socio-physiological reasons__ an independent survey would perhaps be required to establish that. Also, the preference for foreign food in the lowest income bracket is quite low comparatively.

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Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

15. Respondents office/educational institution is located inNorth Nazimabad, Nazimabad, FB Area or nearby: 0Gulshan, Gulistan-e-Jauhar or nearby: 8Clifton, Defence or nearby: 17Saddar, II Chundrigar Road, Bunder Road or nearby: 4Malir, Landhi or or nearby: 0Bahadurabad, Tariq Road, Sindhi Muslim or nearby: 0Other : 0Not applicable: 1

Observation: Perhaps the preference for eating in Clifton can also be attributed to most of the respondents’ office/school being located in the area. This still would not explain the family preferences for eating in Clifton, as many respondents live in different areas of the city, yet choose to come to Clifton for eating out.

16. Opinion about local food chains, such as Usmania, Hanifia, Biryani Centre, etc

positive opinion: 19negative opinion: 8

Observation: Most respondents have a positive opinion about Local Food Chains

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Page 16: Local Food Chains are better than Foreign Food Chains

Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

17. Your opinion about foreign food chains such as McDonald’s, Pizza Hut, KFC, Subway, etc

positive opinion: 15negative opinion: 12

Observation: Though many find positive aspects in the foreign food chains, yet they also have quite a few negative things to say about it as well. Compared with opinions about local food chains (Answer 16), it appears that people are more favourably inclined towards local food chains.

18. Which is safer for healtheating from a local food chain restaurant: 4eating from a foreign food restaurant: 4both are okay: 16neither: 6

Observation: 13% of the respondents consider food from local chains only to be safe, while an equal number have the same opinion about foreign chains exclusively. More than 50% of the respondents consider both as safe for health, whereas 20% worry over the health issues of such restaurants. Thus, it can be inferred that the majority of the population is comfortable eating out, and health and hygiene is not a major determinant in the choice of restaurant.

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Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

19. Which is more economical / value for moneyeating from a local food chain restaurant: 16eating from a foreign food restaurant: 3both cost nearly the same: 9neither: 2

Observation: Most consider local restaurants to be more ‘value-for-money’ as compared to the foreign restaurants.

20. Which is a more enjoyable experienceeating from a local food chain restaurant: 9eating from a foreign food restaurant: 4both are equally enjoyable: 16neither: 1

Observation: Most of those surveyed find eating out enjoyable, but more votes have been casted in favour of local than foreign food chains.

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Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

ConclusionThe starting premise of our research was

Null Hypothesis (HO): Local food chains are better than foreign food chains Alternate Hypothesis (HA): Foreign food chains are better than local food chains

After conducting the survey and analysing the results, it appears that:

A comparison of the percentage values shows that personal preferences vary greatly across different options and choices presented to the respondents.

A maximum value of 87% is touched by the Local Food Chain whereas the Foreign Food Chains touch a maximum high of 67%, but for very different choices.

While families prefer Local Food Chains, and respondents eat more often there, yet Foreign Food Chains are the preferred choice of Friends, At Work/School as well as Personal Preference.

Local Food Chains top the chart Positive Opinion, Economical and Enjoyable, while respondents consider both to be equally Safe for Health.

Though not many chose economics as the reason for their preference, (answer numbers 5-8), but it is clear from the statistics that Local Food Chains are viewed as far more value-for-money as compared to the Foreign Chains.

There are very few regions on the graph where Local Food Chain values are less as compared to the Foreign Food Chain values.

Submitted by: Razia Pukhraj and Samiya Illias Page 18

Local (%)

Foreign (%)

Families prefer 51 23

Friends prefer 37 50

At work/school 30 63

Prefer to eat at 40 50

Eat more often at

50 23

Positive opinion 63 50

Negative opinion

27 40

Safe for health 67 67

Economical 53 10

Enjoyable 84 67

Page 19: Local Food Chains are better than Foreign Food Chains

Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

Re-arranging data to calculate mean, median and mode:

Local Food Chain: 27 30 37 40 50 51 53 63 67 84Mean: 50.2 Median: 50.5 Mode: no mode

Foreign Food Chain: 10 23 23 40 50 50 50 63 67 67Mean: 44.3 Median: 50.0 Mode: 50

Decision Rules: HO: true if P >=0.5 HA: true if P <0.5

Mean value for Local >50 Foreign < 50Median value for Local >50 Foreign=50Mode value for Local: no Foreign=50

Therefore, just considering the Mean statistic, one is tempted to accept HO: true.But since median and mode values do not support this contention, no decisive deduction can be inferred.

Considering collected data, even though economics is not a prime concern in the choice of restaurant (answer numbers 5-8), yet most consider local restaurants to be better, and thus frequent them more. Therefore, even though there is no clear winner of this comparison, we can safely state that Local Food Chains are in fact more popular than Foreign Food Chains.

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Statistical Research and AnalysisLocal Food Chains are better than Foreign Food Chains

Exhibits

Pre-test form

Survey form

Filled-out pre-test forms (5)

Filled-out final survey forms (30)

Submitted by: Razia Pukhraj and Samiya Illias Page 20