This study measures the service quality perceptions undertaken in International Fast Food Chains in Chandigarh. Tangibility was the most insignificant amongst the service quality dimensions. Reliability and responsiveness were the most significant.
This study measures the service quality perceptions undertaken in International Fast Food Chains in Chandigarh. Tangibility was the most insignificant amongst the service quality dimensions. Reliability and responsiveness were the most significant.
This study measures the service quality perceptions undertaken in International Fast Food Chains in Chandigarh. Tangibility was the most insignificant amongst the service quality dimensions. Reliability and responsiveness were the most significant.
International Journal of Applied Research and Studies (iJARS)
ISSN: 2278-9480 Volume 2, Issue 7 (July- 2013)
www.ijars.in
Manuscript Id: iJARS/ 545 1 Review Paper
Service Quality in International Fast Food Chains in Chandigarh Perceptions of Customers
Author: Manpreet Kaur *
Address For correspondence:
Assistant Professor, Guru Gobind Singh College for Women, Sector 26, Chandigarh
Abstract: Services are the activities which involve producing intangible products as education, entertainment, food, transportation, insurance, trade, real estate, consultancy, repair and maintenance like occupation. Quality has become a strategic tool for obtaining efficiency in operations and improved business performance. This study measures the service quality perceptions undertaken in international fast food chains in Chandigarh. Service quality model was used as conceptual framework for understanding service quality perception in fast food services. An analysis covering a sample of 100 respondents revealed that tangibility was the most insignificant amongst the service quality dimensions and reliability and responsiveness the most significant. Keywords: Quality, services, fast food chain.
Introduction: High quality goods and service are favored in the marketplace and high service quality performance does produce measurable benefits in profits, cost savings, and market share (Anderson, Fornell, & Lehmam, 1994). Service quality has been increasingly recognized as a critical factor in the success of any business (Parasuraman, Zeithaml & Berry, 1988). The topic of measuring service quality has been studied extensively in the past fifteen years. New ways to conceive of and measure quality in service industry is needed--and alternate approaches emerge in the business sector where organizations are increasingly evaluated in terms of their service quality. In 1988, marketing research team Parasuraman, Zeithaml and Berry developed a multiple-attribute scale called SERVQUAL for measuring service quality. The SERVQUAL scale operates and measures service quality along five distinct dimensions that can be viewed as indicators of the construct of perceived service quality. manpreetkaurleo@yahoo.co.in * Corresponding Author Email-Id International Journal of Applied Research and Studies (iJARS) ISSN: 2278-9480 Volume 2, Issue 7 (July- 2013) www.ijars.in
Manuscript Id: iJARS/ 545 2 Tangibles (Physical evidence of the service: appearance of physical facilities, tools and equipments used to provide the service, appearance of personnel and communication materials) Reliability (The ability to perform the promised service dependably and accurately: consistency of performance and dependability, service is performed right at the first time, the company keeps its promises in accuracy in billing and keeping records correctly, performing the services at the designated time) Responsiveness (The willingness and/ or readiness of employees to help customers and to provide prompt service, timeliness of service: mailing a transaction slip immediately, setting up appointments quickly) Assurance (The knowledge and courtesy of employees and their ability to convey trust and confidence: competence (possession of the required skills and knowledge to perform the service), courtesy (consideration for the customer's property, clean and neat appearance of public contact personnel), trustworthiness, security (safety and confidentiality)) Empathy (The provision of caring, individualized attention to customers: informing the customers in a language they can understand, Understanding customer's specific needs, Providing individualized attention) Over the years SERVQUAL has emerged as the most popular assessments tools of service quality. The SERVQUAL instrument has been verified and tested in assessing service quality in restaurant business (Bojanic & Rosen, 1994; Fu, 1999; Fu, Cho, & Parks, 2000) as well as in the tourism industry (Riemer & Reichel, 2000).
Fast Food Industry Introduction
Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with low quality preparation and served to the customer in a packaged form for take-out/take-away. Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food restaurants (also known as quick service restaurants). Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations.
The Start of Fast Food Culture
The concept of fast food came up during 1920s.The 1950s first witnessed their rapid proliferation. Several factors that contributed to this explosive growth in 50s were:
(1) Americas love affair with the automobiles. (2) The construction of a major new highway system. (3) The development of sub-urban communities. (4) The baby boom subsequent to world war second.
Fast-food chains initially catered to automobile owners in suburbia. International Journal of Applied Research and Studies (iJARS) ISSN: 2278-9480 Volume 2, Issue 7 (July- 2013) www.ijars.in
Manuscript Id: iJARS/ 545 3 Variants
Although fast food often brings to mind traditional American fast food such as hamburgers and fries, there are many other forms of fast food that enjoy widespread popularity in the West. Chinese takeaways/takeout restaurants are particularly popular. They normally offer a wide variety of Asian food which has normally been fried. Most options are some form of noodles, rice, or meat. Sushi has seen rapidly rising popularity in recent times. A form of fast food created in Japan. sushi is normally cold sticky rice served with raw fish. Pizza is a common fast food category in the United States, with chains such as Domino's Pizza, Sbarro and Pizza Hut. Menus are more limited and standardized than in traditional pizzerias, and pizza delivery, often with a time commitment, is offered. Globalization:
In 2006, the global fast food market grew by 4.8% and reached a value of 102.4 billion and a volume of 80.3 billion transactions. In India alone the fast food industry is growing by 40% a year. McDonald's is located in 120 countries and on 6 continents and operates over 31,000 restaurants worldwide. KFC is located in 25 countries. Subway has 29,186 restaurants located in 86 countries, Pizza Hut is located in 26 countries, Taco Bell has 278 restaurants located in 12 countries besides the United States.
Fast Food Industry in India India Emerging Market for Global Players The percentage share held by foodservice of total consumer expenditure on food has increased from a very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society. The growth in nuclear families, particularly in urban India, exposure to global media and Western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends. Fast food is one of the worlds largest growing food type. Indias fast food industry is growing by 40% a year Because of the availability of raw material for fast food, Global chains are flooding into the country.
Major players in fast food are: MCDONALDS KFC PIZZA HUT DOMINOS PIZZA. SUBWAY
The main reason behind the success of the multinational chains is their expertise in product development, sourcing practices, quality standards, service levels and standardized operating International Journal of Applied Research and Studies (iJARS) ISSN: 2278-9480 Volume 2, Issue 7 (July- 2013) www.ijars.in
Manuscript Id: iJARS/ 545 4 procedures in their restaurants, a strength that they have developed over years of experience around the world. The home grown chains have in the past few years of competition with the MNCs, learnt a few things but there is still a lot of scope for improvement. The success of fast foods has arisen from the changes in our living conditions: Many women or both parents now work There are increased numbers of single-parent households Long distances to school and work are common Usually, lunch times are short There's often not enough time or opportunity to shop carefully for groceries, or to cook and eat with one's family. Especially on weekdays, fast food outside the home is the only solution.
Besides the fast food chains have adopted strategies like targeting children as their major customers. They introduce varieties of things that will attract the childs attention thereby automatically targeting their parents. Moreover Fast food outlets are introducing varieties of products in order to cater the demands of each and every segment of the market. They are introducing all categories of product so that people of all age, sex, class, income group etc can come and become a customer of their food line.
History Brief of Major International Fast Food Players
Mc doanlds McDonald's is the leading global foodservice retailer with more than 31,000 local restaurants serving more than 58 million people in 118 countries each day. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women. In India, McDonald's is a joint-venture company managed by two Indians. Amit Jatia, M.D. Hardcastle Restaurants Pvt. Ltd. owns and spearheads McDonalds in west & south India; McDonald's restaurants in North & East India are owned and managed by Vikram Bakshi's Connaught Plaza Restaurants Private Limited. In India, McDonald now has a network of over 160 restaurants since its launch in 1996.
Kentucky Fried Chicken KFC also known as Kentucky Fried Chicken is a chain of fast food restaurants based in Louisville, Kentucky. KFC is a brand of Yum; brands since 1997 when that company was spun off from PepsiCo as Tricon Global Restaurants Inc. KFC founded by Colonel Harland Sanders in the year 1938.now stretches worldwide with more than 13,000 restaurants in more than 80 countries and territories around the world serving up the Colonels Original Recipe. KFC is the worlds No.1 Chicken QSR and has industry leading stature across many countries like UK, Australia, South Africa, China, USA, Malaysia and many more. KFC International Journal of Applied Research and Studies (iJARS) ISSN: 2278-9480 Volume 2, Issue 7 (July- 2013) www.ijars.in
Manuscript Id: iJARS/ 545 5 offers its signature products in India too In India; KFC is growing rapidly and today has presence in 21 cities with close to 107 restaurants.
Pizza hut Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and Long John Silvers under its umbrella. Pizza Hut is the worlds largest pizza chain with over 12,500 restaurants across 91 countries. In India, Pizza Hut has 140 restaurants across 34 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune, and Chandigarh amongst others.
Subway The first Fred and Petes submarine shop was opened in1965. From that day on the company continued to grow. By 1974, Fred and Pete decided franchising was the key to achieving higher growth. Brian Dixon was the very first SUBWAY franchisee. Today, entering their 46th year of operation, SUBWAY restaurants is the worlds largest submarine sandwich chain with its main office located in Milford, Connecticut. In India Subway Systems India Pvt Ltd opened its very first restaurant in 2001 in New Delhi and has swiftly grown its operations to 183 operating restaurants in 26 cities across India.
Literature Review Many researchers have conducted studies in measuring service quality in the past twenty years. In 1982, McCleary and Weaver indicated that good service is defined on the basis of identification of measurement behaviors that are important to customers. Zemke and Albrecht (1985) suggested that service plays an important role in defining a restaurants competitive strategies and identified systems and strategies for managing service. In 1988, Parasuraman, Zeithaml and Berry developed a multiple-item scale for measuring service quality called SERVQUAL. SERVQUAL is a generic instrument for measuring perceived service quality that is viewed as the degree and direction of discrepancy between consumers perceptions and expectations. Thus, service quality, as perceived by consumers, stems from a comparison of what they feel service providers should offer with their perceptions of the performance of service provided by service providers (Parasuraman, Zeithaml and Berry, 1988). The researchers also identified that there are five dimensions to service quality. The following is a list of the five dimensions and a brief description of each:
1. Tangibles: (physical facilities, equipment, and appearance of personnel). 2. Reliability: (ability to perform the promised service dependably and accurately). 3. Responsiveness (willingness to help customers and provide prompt service). 4. Assurance (knowledge and courtesy of employees and their ability to inspire trust and confidence). 5. Empathy (caring, individualized attention the firm provides its customers).
International Journal of Applied Research and Studies (iJARS) ISSN: 2278-9480 Volume 2, Issue 7 (July- 2013) www.ijars.in
Manuscript Id: iJARS/ 545 6 The SERVQUAL scale was employed to measure the service quality in an electric and gas utility company (Babakus and Boller, 1992) as well as restaurants (Bojanic and Rosen, 1994; Fu, 1999). In 1990, Knuston, Wullaert, Patton & Yokoyama drafted LODGSERV to improve on what a generic instrument might do in defining and measuring service quality, specifically for lodging properties. Among the five dimensions, reliability was found to be the most important of the five dimensions for lodging consumers followed, in ranking, by assurance, responsiveness, tangibles, and empathy (Knutson, Stevens, Wullaert, Patton and Yokoyama, 1990). Subsequently, Knutson, Yokoyama, Patton, and Thompson (1990) analyzed the statistical methodology itself, comparing the uses of confirmatory analysis versus factor analysis in index testing and refinement.
Then, in 1992, Knuston, Stevens, Patton, and Thompson studied consumer expectations for service quality in economy, mid-price, and luxury hotels. Across the three segments, they found that the five dimensions maintained their same ranking positions and that the higher the price category, the higher the consumer expectations of service quality. As a next step, Patton, Stevens and Knutson (1994) translated the instrument into other languages and pilot- tested LODGSERV in five other cultures. The instrument worked equally well, retaining its high validity level across each of the five pilot tests.
In 1995, Stevens, Knutson, and Patton drafted DINSERV after adapting the instrument SERVQUAL to the restaurant industry and using the lessons learned in developing and refining LODGSERV. The instrument was used to measure consumer expectations for service quality in three restaurant segments: quick service, casual/theme, and fine dining (Stevens, Knutson, and Patton, 1995). Like LODGSERV, DINESERV was found to have a high degree of reliability. The alpha for the total index is .95, while the reliability coefficients (alpha levels) for the five dimensions range from .89 to .92 (Stevens, Knutson, and Patton, 1995). Results show that DINESERV is a valid and reliable index by which consumer expectations for service quality in a restaurant experience can be measured. In 1999, Wu, Goh, Lin and Chen conducted a study in measuring service quality in a mid- price multi-unit Chinese restaurant using the DINESERVE instrument. The authors evaluated the customer perceptions of service quality and identified the differences in customer perceived service quality between lunch and dinner and between new customers and regular customers (Wu, Goh, Lin, and Chen, 1999). Kim, McCahon, and Miller (1999) also conducted a study to validate five dimensions of the DINESERV instrument in Korean casual dining restaurants and explored the differences in perceived service quality by restaurant. It is also hypothesized that perceived service quality differs based upon characteristics of the patrons. The present study attempts to evaluate customers perceptions of service quality in a chain-operated steakhouse using modified DINESERV instrument. Results can be compared to the results of previous studies.
International Journal of Applied Research and Studies (iJARS) ISSN: 2278-9480 Volume 2, Issue 7 (July- 2013) www.ijars.in
Manuscript Id: iJARS/ 545 7 Purpose and Objectives of the Study
Fast food is one of the worlds largest growing food type. Indias fast food industry is growing by 40% a year. It has caught on as a trendy thing amongst youngsters to visit the fast food outlets and spend leisure time there. This is apparently is due to modern look offered by the outlets. The purpose of this study is to ascertain the service quality offered by International fast food outlets in Chandigarh as perceived by experience of the respondents. The study is conducted with the following objectives:
1. To determine the perception of customers regarding the service quality offered by International fast food chains. 2. To analyze and compare the service quality perceptions of customer in different International fast food chains. 3. To determine the relevant dimensions of service quality.
Research Methodology
In the present study the service quality model developed Zeithamal , Parsuraman and Berry (1988) has been used with underlying assumption that service quality model is multi- dimensional. These dimensions contribute to assessment of service quality in any setting. A construct SERVQUAL based upon service quality model has been used to determine service quality in different fast foods with minor changes. Four well known International Fast food chains namely Mc Donald, KFC, PizzaHut and Subway were selected for the study. A fifth category of others was created to cover any varied choice of the respondent. A sample of 100 respondents was chosen from city of Chandigarh. Primary data was collected through questionnaire. In the questionnaire, 21 statements were grouped under 5 dimensions (Tangibility, Reliability, Responsiveness, Assurance and Empathy). To ascertain the perceptions of service quality, 5-point scale was used so that variations in the perceptions can be estimated. The 5- point scale represents 1 as Strongly Disagree and 5 as Strongly Agree.
International Journal of Applied Research and Studies (iJARS) ISSN: 2278-9480 Volume 2, Issue 7 (July- 2013) www.ijars.in
Manuscript Id: iJARS/ 545 8
Data Analysis
Sample Classification Analysis of Frequency of choice of Fast food most frequently visited by respondents reflects that most of the respondents had chosen Mc Donald as the most visited fast food. Table-1 Fast Food Frequency Percentage MCDonald 38 (38) KFC 18 (18) Pizzahut 24 (24) Subway 11 (11) Other 9 (9) TOTAL 100
Demographics of Respondents Table-2 shows demographics of respondents. It shows that 48 percent of the respondents are male and 52 percent are females. Majority (i.e.60 percent) of the respondents are employed followed by students (23 percent), homemaker (11 percent) and business (6 percent). Table-2 Number of Respondents Percentage GENDER MALE 48 (48) FEMALE 52 (52) TOTAL 100 PROFESSION EMPLOYED 60 (60) BUSINESS 6 (6) HOMEMAKER 11 (11) STUDENT 23 (23) TOTAL 100 INCOME LESS THAN 20,000 5 (5) 20-40,000 22 (22) 40-60,000 16 (16) 60-80,000 31 (31) 80,000 AND MORE 26 (26) TOTAL 100
International Journal of Applied Research and Studies (iJARS) ISSN: 2278-9480 Volume 2, Issue 7 (July- 2013) www.ijars.in
Manuscript Id: iJARS/ 545 9 Reliability of Construct
The reliability has been calculated for different dimensions using Cronbach Alpha. Table 1 show that the value of Alpha ranges from .534 to .749. The dimensions are therefore considered as reliable. Table-3: Descriptive Statistics and Reliability of the Scale Dimensions Items in the scale
Means.d. Cronb alch alpha Tangibility
The fast food has modern-looking furniture, floor design and dcor. 4.10 0.54 .534 The overall ambience was visually appealing (well lit , spacious and clean) 4.07 0.70 Staff was neat-appearing and smartly dressed. 4.19 0 .67 Availability of sauces, cutlery, trays, napkins, utensils etc. was good 4.19 0.73 The menu was easy to read 4.25 0.65 Parking was adequate 3.34 0.91 Fast food had a Kids Play area 2.90 1.11 Reliability When a customer has a problem, the fast food shows a sincere interest in solving it 3.64 0.87 .683 The fast food performs the service right the first time 3.94 0.74 Services are provided at the time the fast food promises to do 3.91 0.77 Billing was accurate 4.25 0.65 Responsiveness Staff tell customers when services will be performed 3.88 0.78 .599 Staff give prompt service to customers - I was served promptly 3.87 0.78 Staff is never too busy to respond to customers requests 3.64 0.95 Staff is patient while taking my order 3.99 0.70 Assurance Staff is friendly and courteous 4.12 0.60 .616 International Journal of Applied Research and Studies (iJARS) ISSN: 2278-9480 Volume 2, Issue 7 (July- 2013) www.ijars.in
Manuscript Id: iJARS/ 545 10 Staff has the knowledge to answer customers question 4.07 0.76 Empathy Staff give personal attention to customers 3.63 0.76 .749 Fast food understands specifics needs of its customers 3.73 0.84 Fast food has customers interest at heart 3.79 0.94 Operating hours are convenient to all customers 4.03 0.74
Table further shows Mean score and standard deviation of each item used in the construct to present the better picture of data collected from respondents. The item The menu was easy to read and Billing was accurate has highest mean score (4.25 0.65) and item Fast food had a Kids Play area has lowest mean score (2.90 1.11). Normality of Data The data was checked for normality with the help of One -Sample Kolmogorov-Smirnov test. P values were more then .05, indicating that data was normally distributed. Table-4: One -Sample Kolmogorov-Smirnov Test One -Sample Kolmogorov- Smirnov Test Dimensions Tangibility Reliability Responsiveness Assurance Empathy Kolmogorov-Smirnov Z 1.347 1.370 1.295 2.837 1.087 Asymp. Sig.(2-tailed) .053 .047 .070 .000 .188
Service Quality Dimensions Comparison
The average scores of the 4 International Fast Food chains considered in the study were compared for all the five dimensions of service quality (as per table below). Table-5: Average Scores for Five Service Quality Dimensions
From this analysis it can be seen that the dimension of Tangibility is not significant in the analysis. The average scores given by respondents for this dimension appear to be very close Fast Food\ Dimension MCDonald KFC Pizzahut Subway Other F Sig. Tangibility 3.9511 3.6825 3.9524 3.9221 3.7143 2.080 0.089 Reliability 4.1118 3.5556 4.0313 4.1136 3.4722 6.302 0.000 Responsiveness 4.0421 3.6778 3.9917 4.0182 3.3556 5.579 0.000 Assurance 4.0263 4.4444 4.0000 4.2727 3.4444 3.065 0.020 Empathy 3.7237 4.0417 3.7292 4.2500 3.2222 4.927 0.001 Total 3.9710 3.8804 3.9409 4.1153 3.4417 4.378 0.003 International Journal of Applied Research and Studies (iJARS) ISSN: 2278-9480 Volume 2, Issue 7 (July- 2013) www.ijars.in
Manuscript Id: iJARS/ 545 11 to each other, thus confirming the insignificance indicated above. This indicates that the respondents are neutral as far as Tangibility dimension is concerned, that is the respondents find the tangible features at all the 4 fast food chains equivalent. The dimensions of Reliability and Responsiveness are most significant closely followed by Empathy dimension and then by Assurance dimension. This finding is confirmed by reviewing the average scores on these dimensions between the 4 fast food chains. The average scores reflect variations between the 4 chosen Fast food chains on the 4 dimensions (other than Tangibility) indicating varied perceptions of the respondents on these dimensions based on their service quality experience at the outlets.
Table-6: One Way ANOVA of Profession vs. Total Service Quality Employed Business Homemaker Student F Sig. Tangibility 3.8381 3.8810 4.1169 3.8696 1.521 .214 Reliability 3.9792 4.1250 4.2727 3.6087 4.985 .003 Responsiveness 3.9067 4.1000 4.1636 3.7043 2.660 .053 Assurance 4.1000 4.1667 4.5455 3.7931 3.065 .032 Empathy 3.7792 4.2500 4.0909 3.5761 3.018 .034
The table shows that the dimension of Tangibility is not significant in the analyses. This means people of all the profession are indifferent with regards to tangibility of various restaurants. This is shown by the high significance value (i.e. more than .05) in tangibility dimension. The significance value in dimension of Responsiveness is close to .05, while it is less than .05 in other dimensions. This shows that there is significant difference between theses dimensions and different professions.
Findings of the Study
Present study included five dimensions of the service quality perceptions namely, tangibility, reliability, responsiveness, assurance and empathy. The analysis of these dimensions identified that between international fast food chains there is no significant difference on account of tangible features like ambience, modern look, staff smartness etc. This implies that respondents are satisfied with all the four fast food chains on this dimension of service quality. This is confirmed in the case of people of different professions also. The analysis further revealed that reliability and responsiveness dimension is most significant amongst the five dimensions. Out of the four chosen fast food chains the average scores for Mc Donald and Subway, on these two dimensions is highest. This implies that both Mc Donald and Subway are perceived by respondents to be focusing on the reliability and responsiveness aspect of service quality. The analysis also reflects that scores on the assurance dimension, particularly for Mc Donald and Subway are high. This is correlated with high scores on the reliability dimension for the International Journal of Applied Research and Studies (iJARS) ISSN: 2278-9480 Volume 2, Issue 7 (July- 2013) www.ijars.in
Manuscript Id: iJARS/ 545 12 two fast food chains as reliability leads to trust and support. This finding is confirmed from the correlation analysis where assurance has emerged as the most relevant dimension. On the dimension of empathy the highest score is for Subway followed by KFC. Score for Mc Donald on this dimension is lowest. This indicates that the aspect of personal attention to customer is not present in case of Mc Donald which confirmed in view of the self service model followed at Mc Donald. Conclusion
In the study both Mc Donald and Subway have scored highest on the most significant dimensions of reliability and responsiveness and scored on the higher end for tangibility and assurance dimension as well. Between the two maximum numbers of respondents had chosen Mc Donald as the most frequently visited fast food against minimum number in case of Subway. The study concludes that Mc Donald meets highest satisfaction level on the service quality dimensions as perceived by highest number of respondents. Bibliography:
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Manuscript Id: iJARS/ 545 13 11. Peter, P. J., G. A. Churchill and T. J. Brown (1993), Caution in the use of difference scores in consumer research, Journal of Consumer Research, vol 19(March), pp.655 662.