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S a l e s o f s e l e c t e d f a s t f o o d c h a i n i n M o r a y t a | 1
Market ResearchTitle:
“Factors that Affect the Sales of Selected Fast Food ChainsIn Morayta, Manila”
Alagao, Welben Chad P.Uddin, Nortujah
Raposas, Andre B.Casakit, Flori May C.
Dr. Joselito P. Tem
“Factors that affect the sales of selected fast food chains in Morayta,
Manila”
Food is one of the basic necessities in our everyday lives. The industry
which deals with preparing food items/products refers to the food service industry
includes restaurants, cafeterias, canteens, fast food, food carts and trucks and
catering. Restaurants and fast food mainly contributes to its industry. They
provide services to people away from home that is now developing wider, making
it not only a food service industry but gives importance now to hospitality
industry. However, it is the complexity of man’s life nowadays that makes fast
food restaurant rise; the shifting consumers’ preferences towards leisure and
convenience, and urbanization have heighted consumer demand for food
services.
Fast food restaurants are enhanced traditional catering. It is the type of
restaurant that sells quick made and served inexpensive and handy food. They
have provided flexibility and comfort with reasonable prices. Their services are in
the level that can satisfy customer. Like every other country, the food industry
has grown very well in the Philippines. Filipinos love to eat that’s the reason why
you will see a lot of restaurant and fast food chains restaurant everywhere.
These restaurants and fast foods can be local or international food chains.
Fast food restaurants have their own benefits. These perceived benefits
are the primary reason why they are patronized. Markets consist of various
buyers, and buyers differ from each other. They may differ in their wants,
resources, geographical locations, buying attitudes, lifestyle, and buying
practices. Therefore, the management needs to describe of his customers how
his store differs from current and potential competitors. Using their attributes, he
can make an image that directly influences the consumer patronage. It is the
purpose of this study to determine the forces that are responsible for students’
consumptions of food and the areas of improvement in fast food restaurant in
University-belt.
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On the other hand, Fast food retains its position as the largest and the fastest-
growing category in the Philippine consumer food service industry. During 2012, this
category reported total food service revenue of Ps121.9 billion, taking 30% of total value
sales in consumer food service. Growth in terms of outlets, transactions and value sales
remains vibrant. Outlet openings have been supported by the increasing number of
shopping centers and small community supermarkets in Metro Manila and key cities
nationwide. Outlet growth was estimated to be at 8% in 2012 while transactions and
value sales ballooned by 9% and 11% respectively.
Including revenue from its various franchisees and other brands under the whole
company, Jollibee Foods Corp dominates the local fast food category. The business
organization has grown its portfolio to include Jollibee, Greenwich, Chow king, Burger
King, Mang Inasal and Red Ribbon, most of which are sub-category leaders. The
company takes advantage of its deeper knowledge on the local palate, aggressive
advertising campaigns, and commitment to product innovation and brand acquisition in
order to cement its category leadership in the Philippines. Other important players in
fast food include Golden Arches Dev Corp (McDonald’s), RamcarInc (KFC and Mister
Donut) and Philippine Seven Corp (7-Eleven).
Fast food will continue to enjoy moderate in growth in the forecast. Amid more
market saturation and maturity, fast food constant value CAGR is set at 3% which is the
same rate recorded in the review period. In order to grow sales, operators will continue
to grow their outlets via franchising. The opening up of shopping centers and community
supermarkets both in Metro Manila and in key provincial cities will provide lucrative
venues for fast food. This category is expected to remain the biggest in the Philippine
consumer foodservice industry by the end of 2017.
Abstract
This study examines the effects of the five P’s of marketing on the sales of
different fast food chain in Morayta. Respondents of the study includes the
4thyear IABF Marketing Management students of Far Eastern University tested
and ask for their point of view of towards the Fast food chains in Morayta by
answering the questions in the survey form that is related to the topic. Products
taste and preferences considered being the high factor of the respondents to
avail products and services of the specific fast food chain based on results given
by the respondents. This research also supported by different related literature to
signifies the topic and its essence. However, this study will provide valuable
information of the factors that can affect the sales of fast food chain industry to
project sales.
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A. Statement of the Problems
1. What are the Factors that affect the increase of sales of the fast food chains
in Morayta?
2. Is there a significant difference on the factors that affect the increase of sales
in the fast food chain in Morayta Manila such as:
Price
Place
Promotion
Product
people
3. What will be the possible solutions the fast food chains can use to establish a
high sale?
Objectives:
To examine the buying behavior of the consumers in a fast food chain.
Identify problems that mostly affect fast food chain industry.
Provide possible solutions on how will fast food chains gain profit and
maximize it.
B. Background of the Study
Attaining higher sales is not an easy task to do in fast food chain industry.
There are lots of factors to be considered and steps to be followed to make it in a
most possible goal. The study entitled “Factors that affect the sales of selected
fast food chains in Morayta” focuses in factors and evaluations that include the 5
P’s of marketing namely product, price, promotion, place and people that
measure the sales in selected fast food chains in Morayta. Therefore, this study
will be a help in the society most especially for those people who has interest in
the topic of fast food chains and conducting sales which is the primary purpose of
the fast food firms in doing and establishing a business ; build high a sales and
get profit.
Most Filipinos in Manila area are in a work or in studies that’s why instead
of cooking foods for their own they choosing to eat in a fast food chains to lessen
their time in a busy society. That is the reason why researchers of this study
became interested in the topic, because food is one of the daily necessary needs
of any individuals in a society. On the other hand, the main purpose of this study
is to deeply know on how the fast food chain industry are reacting in different
factors which is the 5 P’s in getting and gaining their sales, and because of this
the researchers will know if the factors that affects the sales of fast food chains in
Morayta will be significant or insignificant, and knowing the fact can used as a
tools to redefining and designing different measurements on how fast food
industry can gain more sales.
The study focuses in different fast food chain in Morayta area which
includes the following:
Jollibee McDonalds KFC Chow king Mang Inasal
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Conceptual framework
Promotion
Figure 1.1 indicates the factors that affect the sale of the fast food chains including
the 5 P’s of marketing mix.
PROCESS Steps to be done:
PeopleProvide a program that
provide better service and build customer loyalty.
Provide safety measures such as CCTV, security guard and alarming systems.
ProductAgreement between the
suppliers.
Place -Attractive-
PriceOffer affordable prices
Promotion-used activities and printed
materials for announcements
INPUT
Problems usually
encounter:People- Slow service
performance- Safety and security Product - Availability of product
(supplier)- Taste Place - Ambiance- Cleanliness of fast food
chain Price - Price cost Promotion
-using of advertising tools
OUTPUTProvide better service by
developing some personnel orientations, team buildings and other seminars that can train and enhance the skills of their employees.
Implicate good ambiance in the store clean surroundings and organized exterior and interior designs to encourage customers and to attract sales
Usage of advertising materials to provide customer information
Ensuring product availability that meets customer demand
This conceptual framework is focusing in the 5p’s that is mainly affecting sales of a
fast
food chainindustry.
(A.)inputsome problems occurs in marketing mix that the fast food chain
are always facing they somehow become less focusing in their personnel’s ability
and services that can cause a customer dissatisfaction and lose sales. It is also the
product that sometimes becomes unavailable due to its high demand less supply
that can discourage sales. Place and ambiance is also a main factor because
customer is always looking for good servicestogether with the good ambiance
environment where the customer can move and eat without having dissatisfied
feeling. Price is also a main factor in affecting the sales of the fast food chain
because it is too risky in setting price in whether high or low because it greatly
affects the sales of the firms. Lastly, promotions are sometimes a problem because
firms are not maximizing the use of it, they are locking of support in advertising
sectors that can cause a low brand recall and can cause low customer retention and
can lead to lower sales.
On the other hand, (B.) Process is the things to be done. To increase the
sales of the firms they are needed to engage their personnel in some activities to
enhance their skills and ability. They are also needed to deal more in a fast flow of
logistic and build a good relationship in their suppliers to meet the demand of the
customers. The fast food firms are also needed to provide good ambiance together
with a high level of security to avoid unexpected incidents and lastly is the better
pricing and maximize use of promotional tools.
The possible output (C.) stated in figure 1.1 states that the fast food firms
will need to develop their personnel and implicate an organized physical store to
create an increase of sales.
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Purpose and Rationale
As we all know, the fast food industry in the Philippines gets bigger and
larger in the years to pass. It’s mainly because a lot of business men are investing in
this industry; they are allowing healthy competitions to provide choices and
satisfaction for the consumers.
For the researchers, this paper can enlighten their thinking with regards to
the reality of life especially as we walk towards concerning one of the basic needs of
individual which is the food. It tackles topics that can help fast food institutions on
how they can provide better service and products offering in their consumers as well
as developing a store ambiance to encourage more customers to eat. It also
includes the establishments of good business team in order to meet the satisfaction
of the customer and on how to maximize the use of advertising tools in order to
provide information for the customer need, because we believe that these can build
a customer loyalty that can cause high sales prospective and results. Also aside
from being informative this research will encourage the readers to stay abreast to
the various developments in the fast food industry and be aware in possible results
of their decision making in choosing the fast food chains they will choose to eat.
Hypothesis
There is no significant difference on the factors that affects the sales of fast food
chains in Morayta.
Review of Literature
I.
Sales promotions are action-focused marketing events whose purpose is to have a direct
impact on the behavior of the firm’s customers. There are three major types of sales promotions:
consumer promotions, retailer promotions, and trade promotions. Consumer promotions are
promotions offered by manufacturers directly to consumers. Retailer promotions are promotions
offered by retailers to consumers. Trade promotions are promotions offered by manufacturers to
retailers or other trade entities (Blattberg andNeslin 1990). This thesis is focused on promotions
offered to the consumer, therefore a combination of consumer and retailer promotions.
Throughout the world, sales promotions offered to consumers are an integral part of the
marketing mix for many consumer products. Marketing managers use price-oriented
promotions, such as coupons, rebates, and price discounts to increase sales and market share,
entice consumers to trial, and encourage them to switch brands or stores. Non-price promotions
such as sweepstakes, 7frequent user clubs, and premiums add excitement and value to brands
and may increase 6brand attractiveness.
Stimulus-Organism-Response Model
General form of the stimulus-organism response system where the organism stands for
a constellation of internal processes and structures intervening between stimuli external to the
person and the final actions, reactions, or responses emitted (Bagozzi
1986).
Stimulus-organism-response model (Bagozzi 1986)
Marketing MixVariables
ProductPlace
PromotionPrice
EnvironmentalFactors
EconomicConditions
Social Forces Cultural Inputs
Perceptual
Physiological
Feeling
Thinking
Psychological Reactions
Purchase Activities
Consumption Patter
Process
And
Structure
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It is noticed that the intervening processes and structures consist of perceptual, physiological,
feeling, and thinking activities (for example needs and preferences).
Obviously, these are complex, multifaceted aspects of human behavior. In reality, consumer
decision-making processes are quite complex and are influenced by many forces both within
and around the individual. Fortunately, it is possible to identify a relatively small number of
model of consumer behavior is an abstraction designed to symbolically represent most of the
major elements and processes in all consumer choice decisions. Figure 2.3 is one example of
such a general consumer behavior model (Blackwell et al. 2001). This is already the 9th edition
of this book (the first version was published in 1968, with a different composition of the authors),
but the consumer behavior model has not undergone any dramatic metamorphoses. In each
edition, some variables were renamed, and, very rarely, variables were added.
Figure 2.2: Stimulus-organism-response model (Bagozzi 1986) 23
As mentioned before, Figure 2.3 is one possible representation of the extended
-solving process. All variables shown are usually functioning in one way or another in extended
problem solving. This is because of the influences of involvement, differentiation, and absence
of time pressure. When these influences are not present, however, some stages such as
external search are skipped altogether, and alternative evaluations take an alternative form,
known as limited problem solving.
The consumption process appears to begin with an external stimulus striking the
consumer’s information processing. In reality, there are at least three ways an act of
consumption is initiated: (1) an external stimulus (e.g., display) is detected and acted upon; (2) a
physiological agitation within the consumer presses for equilibrium (e.g., hunger); or (3) a
psychological imbalance strives for resolution (e.g., desire for novelty). The last two ways are
both internal forces that may drive purchase behavior.
This model will not be dealt with in depth, but we have to note that not every element or
process within the model comes into play in every real-world decision. At this time in the
development of our knowledge of consumer behavior, three frequently occurring sub-processes
can be identified: impulse buying, habitual purchase behavior, or consumption problem solving
(Bagozzi 1986). When we buy things on impulse, it is generally because an external (e.g.,
display) or internal (e.g., deprivation) stimulus has caught our attention, and the product is easy
to acquire. Not many thoughts occur. Rather, emotional or motivational processes are primarily
at work. These, however, may occur below the level of self-awareness.
II.
Consumers mainly contributed to the development of fast food industry in
creating a more effective strategy to increase their sales, they are the ones that
can be used as a basis of when the firms or the businesses are increasing or
declining by focusing in the demand of the consumer in their buying behavior.
“Consumers in their quest to satisfy their emotional needs or taste and
preference avoid engaging in rational behavior; hence they behave
randomly depending on the stimulus that they are confronted with. The
stronger the effect or influence of the stimulus the greater the
randomness that is exhibited by the buyers and vice versa.
“(EMMANUEL SELASE ASAMOAH, MILOSLAVA CHOVANCOVÁ, Department
of Management and Marketing Faculty of Management and Economics Tomas
Bata University in Zlin)
This relationship occurs because of the influence that advertising and
sales promotion appeal to consumers which eventually triggers spontaneous
purchasing decisions without elaborate mental deliberations of all the available
alternatives before a purchase is made. According to Schiffman and Kanuk
(1997) consumer behavior is “the behavior that consumers display in
searching for purchasing, using, evaluating and disposing of products,
services and ideas.” With this statement consumers are undoubtedly exhibiting
varied taste and preference for food to meet their satisfaction. Therefore the firms
need to understand their consumers enabling them to strategize to respond to
the demand of the market and to stay competitive in the industry to attract more
sales.
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I.
A sale is the main factor why business men are doing business their goals
is to get high sales. Fast food chain industry gets a high percent in market share
in the Philippines. According to EUROMONITOR INTERNATIONALE Fast food
retains its position as the largest and the fastest-growing category in the Philippine
consumer foodservice industry. During 2012, this category reported total foodservice
revenue of Ps121.9 billion, taking 30% of total value sales in consumer foodservice.
Growth in terms of outlets, transactions and value sales remains vibrant. Outlet
openings have been supported by the increasing number of shopping centres and small
community supermarkets in Metro Manila and key cities nationwide. Outlet growth was
estimated to be at 8% in 2012 while transactions and value sales ballooned by 9% and
11% respectively.
Including revenue from its various franchisees and other brands under the whole
company, Jollibee Foods Corp dominates the local fast food category. The business
organisation has grown its portfolio to include Jollibee, Greenwich, Chowking, Burger
King, Mang Inasal and Red Ribbon, most of which are sub-category leaders. The
company takes advantage of its deeper knowledge on the local palate, aggressive
advertising campaigns, and commitment to product innovation and brand acquisition in
order to cement its category leadership in the Philippines. Other important players in
fast food include Golden Arches Dev Corp (McDonald’s), RamcarInc (KFC and Mister
Donut) and Philippine Seven Corp (7-Eleven).
Fast food will continue to enjoy moderate in growth in the forecast. Amid more
market saturation and maturity, fast food constant value CAGR is set at 3% which is the
same rate recorded in the review period. In order to grow sales, operators will continue
to grow their outlets via franchising. The opening up of shopping centres and community
supermarkets both in Metro Manila and in key provincial cities will provide lucrative
venues for fast food. This category is expected to remain the biggest in the Philippine
consumer foodservice industry by the end of 2017.
II.
One of the aspects of gaining and increase sales in business is by means of
advertising. Advertising a form of marketing communication used to encourage,
persuade, or manipulate an audience (viewers, readers or listeners; sometimes a
specific group) to take or continue to take some action. Most commonly, the desired
result is to drive consumer behavior with respect to a commercial offering. 5P’s is
considering promotion as one of the vital tool in order for a business to get a high
demand for its consumer. According to Mari CrisCrisostomo “because of promotional
materials, that have been used widely nowadays by different industries, companies tend
to increase primary its sales and its income relatively. They became helpful in
strengthen various thing supporting briefly.” It also tells that the sales promotions are an
important part of brands marketing mix. A good sales promotion will build brand equity
that re-enforcing a brand market place position, and possibly leads to a temporarily or
permanent lift in sales. If a sales promotion does not adhere to the brand standards or
appear gimmicky, it can hurt the brand.
McDonald's, Burger King and Wendy's are examples of extremely successful fast
food branding. Their signs, logos and slogans are recognizable around the world. Fans
of fast food like predictability, and they want to know exactly what they are going to get
before they go through the doors, according to the website Customer Service Zone. By
providing consistent, easily recognizable and simple branding, a business reassures
customers that nothing has changed. Simple slogans that lodge themselves in the brain
are repeated endlessly on television and radio commercials, ensuring that when
customers see the fast food outlet, they are primed to respond because the brand is
already "inside" of them.
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*Some advertising campaign used by leading fast food chains in the Philippines
III.
Total Customers’ Experience
Customers’ total experience can be defined as a “totally positive,
engaging, enduring, and socially fulfilling physical and emotional customer
experience across all major levels of one’s consumption chain and one that is
brought about by a distinct market offering that calls for active interaction
between consumers and providers. Delivering customers’ total experience (CTE)
goes beyond mere customer satisfaction and is a relatively new concept since
satisfied customers could still defect (Jones and Sasser, 1995). The ability to
satisfy customers is energetic for a number of reasons and avoids dissatisfied
customers (Syed and Conway, 2006). In the past, companies have primarily
focused on the physical aspects of the product, while totally neglecting the
emotional and value aspects and hence, losing many customers in the long run
( Nunes and Cespedes, 2003). According to Bojanic (2007), most of the
research concerning selection of a restaurant usually is “…based on
identification of determinant attributes”. The attributes are taste of food,
competitive price, service response time, cleanliness of the fast-food
restaurant, fast-food restaurant location, amenity, safety, employee
courtesy, restaurant operating hours, and the availability of healthy menus.
Food Quality
Food quality is one of the most critical components of a dining experience
(Namkung and Jang, 2007; Sulek and Hensley, 2004). Clark and Wood (1999)
confirmed that food quality is a primary factor influencing customer loyalty in
restaurant choice. While, Susskind and Chan (2000) persisted that from the
customer’s perspective, food quality is a key determinant forvisiting a restaurant.
Mattila (2001) considered food quality as a key predictor of customer loyalty in
casual-dining restaurants and Sulek and Hensley (2004) found that when
compared with other aspects of the restaurant, such as environmental
components and service quality, food quality is the most important element of
customer satisfaction. Namkung and Jang (2007) tested the impact of food
S a l e s o f s e l e c t e d f a s t f o o d c h a i n i n M o r a y t a | 17
quality on customer satisfaction and behavioural intentions and found a
positive relation between food quality and satisfaction or behavioural
intentions. Kivela et al. (2000) considered several aspects of food quality such
as tastiness of food, menu variety, and nutrition to examine the effect of excellent
food on customer satisfaction and return patronage. Darian and Tucci (2011)
added that nutrition food making consumers more health over time. For Raajpoot
(2002), he used food presentation, serving size, menu design, and variety of food
to measure product quality (food quality) in the food service industry.
Service Quality
Recently, customers have been progressively aware about quality of
service (Soriano, 2002).Service quality is often viewed from two perspectives that
are from the customer’s cognitive evaluation of the service provided (Taylor and
Baker, 1994) and a multidimensional construct created by an evaluation of
attribute performance (Parasuraman et al., 1988). Service quality is usually
defined as the customer’s judgment of the overall excellence or superiority of the
service (Zeithaml, 1988). Thus, it is the customer’s subjective evaluation formed
by comparing expectations and perceived performance (Bolton and Drew, 1991;
1985, 1988). Based on this gap theory, Parasuraman et al. (1988) developed
SERVQUAL as a mechanism to measure service quality. SERVQUAL consists of
five dimensions that are reliability, responsiveness, empathy, assurance, and
tangibles. In addition, since perceived levels of service in restaurants are based
on the relationship between customers and service providers (Nikolich and
Sparks, 1995), customer’s perceptions and evaluation of service quality may be
highly dependent upon the service provider’s performance during service
delivery.
Atmospheric Quality
Previous studies have identified atmospherics as another important
element of the dining experience and reported that atmospherics influence
customer’s emotions and expectations regarding service and food quality
(Baker et al., 1994; Reimer and Kuehn, 2005; Wall and Berry, 2007). Usually, a
customer first perceives the atmospherics when he or she enters a restaurant,
which occurs before any actual services or foods are delivered. Thus, the
emotions created by the perception of the atmospherics may affect the
customer’s reaction to the actual services and foods in restaurants (Bitner, 1990;
Zeithaml et al., 1993). In addition, Ryu et al, (2012) point out that consumer’s
perception of a restaurant’s image will return customer’s cumulative consumption
such as food, atmospherics, and service. That is, if a customer has a high
perception of the atmospherics, then customers’ expectations for service and
food quality could also be higher.
Perceived Value
The first definition indicates that perceived value is derived from a
“comparison between the expected benefits of a product and the sacrifices that a
consumer would have to make in order to guarantee those benefits” (Monroe and
Krishnan, 1985). The results of this comparison should affect the level of
customer satisfaction. However, even though individuals in both cases make a
comparison between rewards and costs, the concepts of perceived value and
satisfaction are not synonyms. Previous studies also have concluded that brand
perception can provide understanding for food firm to enhance perceived value
(Wang, 2013). Moreover, perceived value is classified into quality and price
(Dodds and Monroe, 1985). In addition, Zeithaml et al. (1998) indicate
“perceived value plays an important role in consumers’ purchase decision
making, suggesting that behavioral intentions are consequences of
perceived value”. From the various dimension of value, the most frequently
apply in recent marketing literature are hedonic and utilitarian values (Babin et
al., 1994; Jones et al., 2006; Park, 2004; Voss et al., 2003). According to
Donovan and Rossiter (1982), hedonic value is related with the revisit intention
among customers through emotions and affective experience. Thus, utilitarian
value means revisit intention but through high valuable experiences in terms of
efficient and economical aspects (Wynyard, 1993)
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METHOD
A. Subject and participants
The researchers selected the students of 4th year BSBA marketing
management of Far Eastern University as the respondents of this study
“factors that affects the selected fast food chain in Morayta”. This is because
the researchers believe that those chosen respondents can give the most
appropriate and accurate information’s and answers about the research topic.
The researchers get their respondents by using percentage method with a .20
ratio:
*Number of IABF BSBA Marketing Management student: 235 X Percentage ratio 20. = 47 respondents
B. Instruments use
Te research instruments use in the study to gather necessary data
includes questionnaires and some library techniques. The use of
questionnaires serves as the written reference about the latest information’s
essential for the study. It consists of set of questionnaires prepared for the
respondents in a printed form to be answered. Other library techniques were
also used to gather relevant information’s. This includes the use of related
books, and other and dissertations in the library.
C. Procedure
The study chooses a cluster sampling in where a sample cluster is chosen
using a probability method. Only individuals in a sampled cluster are surveyed.
The participant first ask to answer the survey sheet provided by the researcher
to measure the point of view of each participant in different factors or the 5p’s
of marketing. The participants are required to fill out each space after the
question choosing form strongly agree to the strongly disagree by putting
check. The researchers tally the results on how quantify each check in
different columns of questions in order to support the research data.
Results
Analyzes focus in the participant’s answers in the questions given in the survey form
In where they are obliged to answer each questions pertaining to the 5p’s of marketing
that is consider the factors of this study. Each participant has their own perception in
different factors that affects the sale of the fast food chains, they have different result
provided on what factors seems to be the list and the most needed in the fast food chain
industry to make their sales high.
Figure 1 and 2 defines the graph of the demographic state of the 47 respondents.
it shows the gender and the age of respondents who became the target market of the
study. Figure 1 shows the gender side, it shows that the dominant respondents are the
male (19) with having 3 number points greater than the female (16).on the other hand,
the age dominantly get form ages 16 to 20 years old (graduating FEU IABF BSBA
Marketing Management student)3/4 high than the 21 to25 years old respondents.
Respondents with the dominant demographic results are the ones who are often go and
avail service of the fast food chains in Morayta area.
Figure 1.
GENDER
Most of our respondents are male students, this show that male students are more into eating
at fast food chains.
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AGE
As you can see, 16-20 years old are majority who answered the questionnaires
The next figures represent the results of the survey based on the factors that affects the sales of
selected fast food chains in Morayta. The factors include the Product, Place, Price, People and promotion
that greatly affects the buying behavior of the consumers. It focuses on what factors is the most concern
of the consumers in choosing the fast food chains to eat that project and decrease the sales of the fast
food chains. The respondents chosen were located in Morayta area where they are all spend time in
study and eat their breakfast and lunch in the leading fast food chain in Morayta area they are chosen
because if their capacity they’ve experience in eating in different fast food chains in the area. The results
show the different data coming from the respondents that meets their satisfactions in terms of service
and preference based on the given factor.
Majority of the respondents considers the taste and products that are being offered by the fast
food chains.
Budget and Allowance has a big impact for students to eat in fast food chains which is why most of
them strongly agree to the statement about budget and allowance.
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The respondents are very particular in the clean surroundings and are of the fast food chain.
The respondents agree that promotional Medias such as TV commercials, radio ad, and prints ad
help them choose the fast food chain to eat
The respondents want them to be served with fast, accurate, and friendly service.
Discussion
A. Computation Chi-square
PRODUCT
Strongly
Agree
Agree Strongly
disagre
e
Disagree Row Total
Brand Name 18 24 0 5 47
Variety of
products
23 24 0 0 47
Taste of the
product
33 14 0 0 47
Column
Total:
74 62 0 0 141 (Grand
Total)
B.
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PRICE
Strongly Agree Agree Strongly
disagree
Disagree
Affordabilit
y
19 (22.00) [0.41] 25 (20.33) [1.07] 0 (1.00) [1.00] 3 (3.67) [0.12]
Price list 24 (22.00) [0.18] 20 (20.33) [0.01] 0 (1.00) [1.00] 3 (3.67) [0.12]
Budget and
allowanc
e
23 (22.00) [0.05] 16 (20.33) [0.92] 3 (1.00) [4.00] 5 (3.67) [0.48]
Column
Total:
66 61 3 11
C.The chi-square statistic is 9.3636. The P-Value is 0.154136. The result is not significant at p < 0.05.
PLACE
Strongly
Agree
Agree Strongly
disa
gree
Disagree Row Total
Ambiance 30 14 0 3 47
Location 25 18 0 4 47
Cleanliness 35 12 0 0 47
Column
Total:
90 44 0 7 141 (Grand
Total)
D.
PROMOTION
Strongly
Agree
Agree Strongly
disa
gree
Disagree Row
To
tal
Advertisements 11 (11.00) [0
.00]
26 (20.00) [1
.80]
5 (10.00
) [2.
50]
5 (6.00)
[0.17]
47
Celebrity
endorsers
9 (11.00) [0.
36]
13 (20.00) [2
.45]
17 (10.0
0) [
4.90]
8 (6.00)
[0.67]
47
Special promo.
discount
13 (11.00) [0
.36]
21 (20.00) [0
.05]
8 (10.00
) [0.
40]
5 (6.00)
[0.17]
47
Column Total: 33 60 30 18 141
(Gr
an
d
Tot
al)
The chi-square statistic is 13.8273. The P-Value is 0.031626. The result is significant at p < 0.05.
PEOPLE
Strongly
Agree
Agree Strongly
disagree
Disa
g
r
e
e
Row
To
tal
Accommodating
staffs
15 (26.33) [4
.88]
20 (15.67) [1
.20]
10 (4.33) [7
.41]
2 (0.
6
7
47
S a l e s o f s e l e c t e d f a s t f o o d c h a i n i n M o r a y t a | 27
)
[
2
.
6
7
]
Security
measures
30 (26.33) [0
.51]
17 (15.67) [0
.11]
0 (4.33) [4.
33]
0 (0.
6
7
)
[
0
.
6
7
]
47
Good quality
and services
34 (26.33) [2
.23]
10 (15.67) [2
.05]
3 (4.33) [0.
41]
0 (0.
6
7
)
[
0
.
6
7
]
47
Column Total: 79 47 13 2 141
(Gr
an
d
Tot
al)
The chi-square statistic is 27.1358. The P-Value is 0.000137. The result is significant at p < 0.05.
C. Conclusion
As per the study it is analysed that consumers in the today’s market are more aware in the changes and
factors which is the five p’s of fast food chains industry having the frequency of visiting the fast food
outlets relates with the ages of the consumers as well as the income affects the spending habits of an
individual. Therefore the factors of five p’s of marketing giving great effect to the sales of the fast food
chain industry.
D. RECOMMENDATION
The researchers recommends that the fast food industry will need to focus on their product offering to
and develop product lines to meet the satisfaction of the consumers and to lead in increase of sales.
S a l e s o f s e l e c t e d f a s t f o o d c h a i n i n M o r a y t a | 29
References
Bemmel Van J.H. (2002). Analysis of Sales Promotion on house hold purchase Behavior
Erasmus universities Rotterdam.
Erasmus Research Institute of Management
Borbon, R (2010). Analysis on the effectiveness of inventory methods used by selected
fast food chain in Metro Manila
Crisostomo, M.C. (2010) Effects on premium in sale of fast food along U-belt
Far Eastern University thesis 2010
Euromonitor. (November 2013)Fast food in the Philippines report
Report for consumer behavior 2013
Emmanuel, S.A, Miloslava, C. (1997) the behavior that consumers display in searching
for purchasing-
Department of Management and Marketing Faculty of Management and
Economics Tomas Bata University in Zlin. 1997