KFC Research Paper

Factor Influencing Customer Satisfaction
CHAPTER 1
INTRODUCTION
1.1 Introduction
In this chapter, it will discuss about background of study and also will provide a general idea
about the scope of study. This chapter also discovers the identified research problem and
clearly defined the objectives of the study. Next, it will continue with the explanation of the
importance of the study. Followed by the limitations of study and finally it will focus on
definitions of the terms.
1.2 Background of Study
The research has been conducted on Fast Food industries in Malaysia which is KFC
and McDonalds. Our respondents will be focused on any customer from this fast food
company. The research was conducted around 2 major cities in Malaysia which is Kuala
Lumpur and Selangor.
1.2.1 Background of the company
In this decade, the Global Fast Food Restaurants industry has expanded due changing
consumer tastes and a struggling global economy. As disposable income decreased due to
the recession, consumers cut back on luxuries like eating out. However, fast food operators
outperformed full-service restaurants during this time as many consumers found room within
their budgets for lower-priced and convenient food options. The industry also experienced
steady and growing demand from expanding economies, which boosted the industry's
overall performance. As everywhere in the world fast food is popular with the youth, but also
with dining families. Malaysia has really adopted fast food, and loves the American style of
fast food. There are fast food restaurants in every little village. McDonalds, KFC, Burger
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King, Manhattan Fish Market, Dunkin Donuts and Wendys are among the popular ones.
There are a lot of Malaysian copies of the American franchise fast food chains. A&W, 1901,
Marry brown, and Popeyes are scattered all over the country. All these restaurants are
burger and fries places. Among those various fast food companies, there were some that
was developed by high level cooperated companies. As for KFC, it was managed under one
name that is QSR Brands Bhd.
QSR Brands Bhd is an investment holding company, operates a chain of quick-service
restaurant. It operates approximately 640 KFC restaurants in Malaysia, Singapore, Brunei,
Cambodia and India, approximately 300 Pizza Hut restaurants in Malaysia and Singapore,
and 27 Rasamas restaurants in Malaysia and Brunei as well as approximately 74 Kedai
Ayamas convenience store that primarily sell chicken and chicken based product in
Malaysia. The company also engages in breeding, hatching, contract farming, processing
and sale of chicken and chicken parts; and poultry product, such as burgers, nuggets,
bologna, smoked chicken, satay, sausage and chicken balls under the Ayamas brand. In
addition, it sells board games; manufactures sauces; operates college/learning institute, and
sells and market food product as well as engaging in property holding activities. The
company is based in Kuala Lumpur, Malaysia.
The story of McDonalds first began in 1955 when Ray Kroc opened the first restaurant
in Des Plaines, Illinois. It then grew on to be a worldwide corporation spanning 117 countries
and serving more than 60 million customers every day. In December 1980, Golden Arches
Restaurants Sdn. Bhd. (GARSB) won the license to operate McDonalds in Malaysia. The
first McDonalds restaurant subsequently opened its doors at Jalan Bukit Bintang on 29 April
1982.
As the growth of this industries keep on increasing from day to day, the challenge to attract
customer are also increasing. Especially when it comes to these 2 big fast food company
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KFC and McDonalds. Maintaining their customer is a big challenge because of several
aspects need to be taken care of. Several aspect such as service quality , food quality and
value added toward services provided are one of famous aspect in attracting customer to
keep on buying.
1.3 Problem Statement
According to Global Fast Food Restaurants Market Research Report, Jul 2013 , The
Global Fast Food Restaurants industry has managed to grow over the past five years
despite being battered by a weakened global economy and society's increasing awareness
of the health risks associated with a diet high in fat, salt and sugar. Despite these obstacles,
the industry experienced steady and growing demand from emerging economies. The
industry's attempts to respond to changes in consumer preferences have also supported
revenue growth. Over the five years to 2013, revenue is expected to grow at an average rate
of 2.5% per year. Industry revenue declined 2.6% in 2009, but bounced back 4.4% in 2010
and continued growing through 2011 and 2012. In 2013, revenue is expected to grow an
additional 3.6% to total $526.2 billion. As everywhere in the world fast food is popular with
the youth, but also with dining families.
In year 2007, according to Aseambankers (2007), KFC Malaysia was owned by QSR
Brands Bhd, a Malaysian public-listed company which controlled over 60% of fast food
market in Malaysia, inclusive other brands such as Pizza Hut, Rasamas and Ayamas.
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4%
18%
44%
KFC
Pizza Hut
18%
McDonalds
Others
16% A&W
Figure 1.1:Estimated Market share of Fast food Segment In Malaysia 2007
Competition among KFC and McDonalds to attract customer shown in 2007 resulting KFC to
lead McDonalds around 26% not included other QSRs brand fast food restaurant. As to
compared the market share among fast food companies there were pilot study been made
to identify either KFC still lead the market share in year 2013.The study was held at the front
yard of KLCC around 2 p.m. in 8th October 2013.20 random respondents had been given
several question. The first question is about which fast food preferred and the reason why
they choose. The result of the pilot study shows 15 of the respondent pick McDonalds as
their favorite fast food. It shows that 75% of public are choosing McDonald and only 25%
preferred KFC as their favorite restaurant. In such competitive environment the only way to
survived is by listen and provide what exactly people want.
Customer loyalty is an important aspect of stability and growth for a chain restaurant
because maintaining an existing customer provides several economic benefits. Customer
loyalty will lead towards customer satisfaction. Indeed, customer loyalty has become a key
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goal for most businesses because retaining existing or repeat customers is more profitable
than continually seeking new ones (Parasuraman et.al (1985). As evidence the observation
that been made by the researcher as a quality auditor at KFC. Daily observation had been
made in order to identify is there any weaknesses in service quality implemented by KFC
Holding and the result of the observation shown that there were customer complain on the
service provided.30 customer been observed and there were 2 customer who give negative
feedback which is because the speed of services at KFC Ampang Point. Quality is thus the
desire to improve social services continuously in line with the needs of the users .In dealing
with service quality in reaching towards customer satisfaction some company used quality
program such as quality audit from Rasamas, mystery shopper, Customer hero from
Ayamas, CHAMPS from KFC and Pizza Hut.
In the other previous research Fast Food and Ethical Customer value :a Focus on
McDonalds and KFCs ,Monika and Morven (2005) present a research on how both fast
food carry out their strategies in an ethical and socially responsible, way to young consumer
in United Kingdom. This research also concludes that ethical strategies are very important in
fast food industries. Their research mainly focused on consumers values and not on how
company implemented service quality and its influences towards customer satisfaction.
Moreover, the study was made in United Kingdom and not yet in Malaysia.
These research also been conducted in order to help both company and especially
KFCs management to benchmark McDonalds service quality as their consumers are started
to change their brands preferred. Benchmarking is made in order to pursue competitors
.Thus by using benchmarking, the management of KFC can identify or conduct any
measures to catch up customer perception and grabbing their heart as well. Same goes to
McDonalds management who can use this study as their references to improve more.
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Therefore, in this research the researcher will analyze whether Food Quality, perceiving
value from customer and Service quality Dimension such as responsiveness, assurance,
tangibles , empathy and reliability will give the impact or not to the customer satisfaction.
This research is based on the primary data through questionnaire distribution.
1.4 Research Objectives
i- To assess the level of customer satisfaction towards KFC Holding and
McDonalds in Malaysia
ii- To investigate the associations between independent variable (Service Quality,
Food Quality and Perceived Value) and dependent variable (Customer
Satisfaction)
iii- To investigate the most influential factor of Customer Satisfaction among KFC
and McDonalds customer.

iv- To examine the possibility of different between several selected profile which
the customer satisfaction towards Dimension of Service Quality, Food Quality
and Customer Perceived value.
1.5 Research Question
i. What is the level of customer satisfaction towards services provided by KFC and
McDonalds restaurant in Klang Valley area?

ii. How well dimension of service quality, quality of food and perceiving value from
KFC and McDonalds customer will lead towards Customer satisfaction?

iii. Which is the most predictor to customer satisfaction; Service quality, food quality or
perceived value?
iv. Is there any different between several selected profile which the customer
satisfaction towards Dimension of Service Quality, Food Quality and Customer
Perceived value.
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1.6 Significance of the Study
The study conducted in the state of Kuala Lumpur and Selangor district. During this
study the researcher need to obtaining as much as information to see the relationship of
customer satisfaction between our seven independent variables which are responsiveness,
empathy, assurance, tangibles and reliability, food quality and perceived value.
Customer today are far more complicated than in the past, thus it is important for
industries such fast food to know the nature of its customer perception and what factor that
influence them, so they can better serve their customer needs and reach them in the most
effective ways. Assessing the external factor that influence customer satisfaction will provide
ways for the fast food management should explore the resources available to attract
customer getting services.
Identify and understanding the customer perception can also benefits to the fast food
management in communicating with the customer and improve the standard services.
1.7 Scope and Limitation
For research scope Im focusing on the level of customer satisfaction at selected outlet
of 4 KFC restaurants and 4 McDonalds outlet around Kuala Lumpur and Selangor. The
researcher took sample based on public preferred fast food.300 questionnaire had been
distribute but only 240 available to be analyze due to customer unwillingness to answer all
question given. In this research we conduct the study on responsiveness, assurance,
tangible, empathy, reliability, food quality and perceived value.
The researcher had also do research about service that had been given to the customer
through product quality provided and how company assures their food quality compatible
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with the price given. The researcher also focus on the level of cleanliness at the fast food
outlet in term of how they make sure the ward always in proper way for example the staff
that responsible for cleanliness from exterior property, service area ,toilet is always clean
and also for the most important things make sure the equipment to cook is cleaned.
LIMITATION
a)Respondent Commitment
In conducting research, the cooperation from the respondents in answering and returning
the questionnaire is very important. However there are some respondent who do not giving
full commitment and some of them act negatively during the distribution and collections of
the questionnaire due to on leaving it.
b)Money Spent
Other than that, the researcher has to spend a lot of money in the process of completing the
research due to lack of sources and limited facilities in conducting the research. The cost of
budget is very important when conducting the research. So in order to complete this
research, the researcher have to spend a lot of money because it require for the researcher
to go to the cyber cafe and surf internet to find the literature review and other information
and for printing the questionnaire.
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1.8 Definition Of Key term
1.8.1 Customer Satisfaction
It is a business term, is a measure of how products and services supplied by a company
meet or surpass customer expectation. Customer satisfaction is seen as a key differentiator
and increasingly has become a key element of business strategy
1.8.2 Service Quality
Service quality was originally measured on 10 aspects of service quality: reliability,
responsiveness, competence, access, courtesy, communication, credibility, security,
understanding or knowing the customer and tangibles. It measures the gap between
customer expectations and experience
1.8.3 Service Quality Dimension
Service quality has been reported as second order construct and being composed of several
first order variables. There are five connectional service quality dimensions, which are;
Realibility
Ability to perform the promised service dependably and accurately.
Assurance
Knowledge and courtesy of employees and their ability to inspire trust and confidence.
Responsiveness
The willingness to provide or to help and prompt.
Empathy
Caring, individualized attention the firm provides its customers.
Tangible
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The physical facilities, equipment and appearance of personnel.
CHAPTER 2
LITERATURE REVIEW
2.1 Preamble
This chapter will find out the right sources from previous study regarding customer
satisfaction towards fast food services. The purpose of this chapter is to identify the scenario
and discussion from previous researchers about the variables that is proposed in this study.
Researcher desires to use previous reference as guidelines in explaining the factor
influencing customer satisfaction towards fast food services in Klang Valley area.
2.2 Introduction
A literature review is a step-by-step process that involves the identification of published and
unpublished work from secondary data sources on the topic of interest, the evaluation of this
work related to the problem, and the documentation of this work. A literature review helps us
to develop a good problem statement.
For this study, researcher use previous journal as guidelines to align with the finding of basic
understandings regarding the goal aims. After that, the literature review is documented to
build the problem statement and the theoretical framework.
2.3 Customer Satisfaction
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In achieving profitability,the most important element that need every company to deal with is
customer satisfaction and from customer satisfaction comes customer loyalty.Thus it will
lead towards continual profit. Most researchers have looked into the priority of customer
satisfaction. Satisfaction can be defined as a persons feelings of pleasure or disappointment
resulting from comparing a product are perceived performance (or outcome) in relation to his
or her expectations. Satisfaction also can be describe as the feelings of acceptance,
happiness, relief, excitement, and delight.
A firms future profitability depends on satisfying customers in the present retained
customers should be viewed as revenue producing assets for the firm Anderson et al.
(1993). The key to building long-term customer satisfaction and retention and reaping the
benefits these efforts can offer is to focus on the development of the high quality products
and services. Therefore customer satisfaction can lead to the organizations goal where may
increase customer loyalty to the service business.
2.4 What is Quality?
Various definitions are available by quality gurus such as (Deming, 1986; Crosby, 1979;
Feigenbaum, 1980; Ishikawa, 1985). Dictionary definitions of quality have their core terms
like degree of excellence, relative nature, or kind or character, and usually go on to
equate quality with high rank or greater standing.
2.4.1 Service Quality
Service Quality is the quality of the service depends on how the customer perceives the
package in its totality, including the relationship with the service provider. In a study of four
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consumer service industries, Parasuraman et al. (1985) identify five quality dimensions
which link specific service characteristics to consumer expectations of quality. These five
basic dimensions are:
2.4.1.1 Tangibles.
Tangibles is the way the physical facilities, like equipment appearance of personnel and the
communication materials, are used by customers to judge the service(Hussain and
Nadiri,2005)
Ability to perform the promised service dependably and accurately. Tangibility in
fast food perspective is about cleanliness.There were 4 main area which will ensure the
management adopting tangible which is exterior property,service area , washroom and back
of house and equipment. Present of pest pest activities such as cockroaches, rats and fly
are the most hated pest by customer to be around fast food restaurant. As in Fast food
industries, it also referred to the presentation of the facilities physical layout for example
clean environment with a nice decoration of the place and the convenience offered to the
customer .Tangible according Maxwell. et. Al (2011) also including ,cleanliness,
atrractiveness neat apearance and comfortability given to customer.
2.4.1.2 Reliability
Reliability can be defined as customers expect the services providers to have the ability to
perform the desired service dependably, accurately and consistently. This involves keeping
the service promise and the reputation. Reliability is the Fast food restaurants regularity
and consistency in performing services and the degree to which it inspires confidence and
trust in customers Dotchin and Oakland (1992). In operational terms, these term means
that keeping promises, trustworthiness in transactions and the efficiency of the recovery
process if anything goes wrong .
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2.4.1.3 Responsiveness.
While responsiveness in servicing fieldWillingness to help customers and provide prompt
service. The customers appreciate the willingness of services providers to provide the
service promptly and efficiently. To be responsive to customers means help them keeping
informed. Speed of services are the most important element in grabbing customer needs
and wants. Responsiveness results in psychic and time benefits to the customer.
The importance of psychic benefits, derived through the responsiveness dimension, has
been explored in direct sales. Crosby et al. (1990) find that in repeat-contact sales
relationships (life insurance), contact initiated by the salesperson and cooperative intentions
(expression of a willingness to help the customer) are very beneficial to ongoing sales
relationships. According to Parasuraman et al. (1985), Zeithaml et al. (1990)
responsiveness is defined as willingness and readiness to help customers and provide
prompt service.
2.4.1.4 Assurance.
Knowledge and courtesy of employees and their ability to convey trust and confidence.
Assurance is caused by the employees, knowledge, courtesy, competence and ability to
convey trust and confidence in customers. Every customer believes the reliability must be
doubled by the trust.
This is a commonly used term which has its origins in manufacturing but whose
concepts have spread to the public sector. Assurance means the knowledge and courtesy of
employees and their ability to convey trust and confidence the firm provides to its customers.
It also includes three main elements which are (i) Courtesy: politeness, respect,
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consideration, and friendliness of contact personnel; (ii) Credibility: trustworthiness,
believability, and honesty of the service provider as well as (iii) Security: freedom from
danger, risk, or doubt (Parasuraman et al. 1985; Zeithaml et al. 1990)
2.4.1.5 Empathy.
Empathy can be defined as caring, individualized attention provided to customers. The
customers usually wanted to be very well understood by services providers. Thus, they
expect the provision of caring, individualized attention, speak to them in language they can
understand and listen to them.Empathy also can defined as hospitality in big industries such
as fast food.Hospitality in these provision including all customer treated with respect, team
member are friendly responsive and knowlegdeable,proper attire and appropriate
supervision on duty which is manager himself and directing activities to meet customer
needs and wants.
There are several components in this dimension which are
(i) Access: approachability and ease of contact.
(ii) Communication: keeping customers informed in languages they can understand and also
listening to any complaign and needs as well.
(iii) Understanding Customers: making the effort to know customers and their needs.
(Parasuraman et al. 1985; Zeithaml et al. 1990).
Quality is thus the desire to improve social services continuously in line with the
needs of the users. These five dimensions of the service quality being choose because it
has been widely used by the researchers in a variety of industrial, commercial and not for
profit setting, for one or the other reasons
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2.5 Relationship Of Service Quality Towards Customer Satisfaction
The customer comes to the service provider with a problem or need, and quality
is determined by the solution to the customers problem. Quality in services is very
subjective, and determined by the customer.It is important to understand consumers own
perceptions and representations of quality and safety. This is because consumers will base
their purchasing decisions on these beliefs. Nevertheless, quality and safety are concepts
that cannot be easily defined, because they are classified as credence attributes as for
examples product attributes that cannot be verified by the consumer. Services today
encompass multiple disciplines including, but not limited to, marketing, human resources,
engineering, logistics, information technology, and other fields. Most service managers today
are woefully underprepared to handle all the different aspects of service quality. Many
organizations spend a lot of effort and money to measure quality without relating the results
of measurement to necessary improvements. Similarly, the need for striving for customer
satisfaction hghly relating towards result in economic success. Customer satisfaction is
considered the main element in grabbing customer retention and loyalty, and obviously helps
in realizing economic goals like profitability, market share, return on investment and etc.
(Scheuing. 1995; Reichheld. 1996; Hackl and Westlund 2000)
2.6 Food Quality
From the consumers' point of view, most customer want high quality products
and are prepared to pay a premium for them. The difficulty in trying to understand what is
meant by "high quality" is compounded by the fact that the concept almost certainly varies
from one person to another. Even for an individual, the willingness to buy the high quality
products may differ depending on the type of food being considered.
Consumers perception of quality has received considerable interest in relation to
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the investigation of consumer food choice As another example, the quality perception
process may be moderated by a number of both personal (e.g. involvement, past
experiences and the like) and situational variables (e.g. physical surroundings, buying
purpose, and the like), which also must be taken into account when seeking to understand
consumers perception of food quality. Previous research ( Montfort et al. 2000; Spreng
and Mackoy 1996) suggests that consumers expectations about the performance of a
product may have a direct influence on perceptions of performance. If consumers perceive
quality as independent attributes, different decisions may be made depending on whether
consumers focus on quality issues in their food choices.
2.7 Percieved Value
Prior marketing studies have suggested a direct positive relationship between percieved
value and brand preference Chiu et al. (2010),and indicated that the main factor influencing
brand preference is percieved value Hellieret et al. (2003). These studies have established
that overall customer perceptions of product value are strongly associated with brand
preferences.
Percieved value in viewed as the customers overall assessment of the utility of a product
based on the perception of what is received and what is given (Zeithaml, 1988). Dodds et
al. (1991)further reinforce this trade off notion and argue the buyers perception of value
represent a tradeoff between the quality and benefit they receive in the product relative to
the sacrifice htey percieve in paying the price.
Perceive value is considered as customer recognition and appreciation the utility of a
product that is given by a service provider which may fullfil his/her expectation ( Walker et
al. 2006).For example, Parasuraman et al. (1985) conceptual service quality model
highlights that matching between servicequality standard and customer standards may
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decrease service performance gap and increase customer percieve value about the quality
systems.Thus it may lead to hiigher customer satisfaction.
2.8 Conclusion
In food and beverages industries the relationship with customer must be taken seriously
because customers pay all the service provided. Service quality provided is really being
taken seriously by these fast food company in order to give the best service for the
customer. By having customer satisfaction it will give return to the fast food company and
profitable because customer will interest to continue their loyalty to the organization.
Customers generally vary in terms of profitability.It is because of without customer,no
profitability will be generated.
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CHAPTER 3
RESEARCH METHODOLOGY
3.1 Introduction
Research methodology is a basic guideline that guides the data collection and
analysis phases of the research process. It is a framework or blueprint that specifies the
details for conducting the research Malhotra (2004). This chapter will explain the data
collection method, sampling techniques, variables and hypothesis. This data collection that
gathered from the research would hope to assist the Fast Food Company which is KFC
Holding management to eliminated the problem occurred and create a solving method
through understanding the customer satisfaction towards service provided by them.
3.2 Theoratical Framework
INDEPEND DEPEND
ENT ANT
VARIABLE VARIABL
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RESPONSIVENESS
SERVICE QUALITY
ASSURANCE DIMENSION
TANGIBLES FOOD QUALITY

CUSTOMER
SATISFACTION
EMPATHY CUSTOMER
PERCIEVED VALUE
RELIABILITY
The theoretical framework from this study is based on the output of numerous fields
and discipline that we had found during the period of studying for literature.
So, we have some discussion and make a decision making based theory found in
the literature review and concluded in the above. There are some various when we have
studied and explaining in the internal driving forces towards customer perceptions, that only
seven internal forces that would be studied which are Dimension of service quality
(responsiveness ,assurance, tangibles, empathy and reliability),food quality and perceived
value from customer.
3.3 Research Variables
Variable can be defined as anything that can take on differing or verifying values. There
are two types of variables in this study and known as independent variables and dependent
variables.
3.3.1 Independent Variables
These are the variables that manipulated by researcher and whose effects are
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measured and compared. The independent variables involved in this study are service
quality dimensions. These are five dimensions of service quality which is reliability,
assurance, responsiveness, empathy, and tangible. All of it important, in which it will
determine the level of payment collection that being achieved by those fast food restaurant.
3.3.1.1 The Service Quality Dimensions
Reliability.
Ability to perform the promised service dependably and accurately.
Tangibles.
The physical facilities, equipment and appearance of personnel.
Responsiveness.
The willingness to provide or to help and prompt.
Assurance.
Knowledge and courtesy of employees and their ability to inspire trust and confidence.
Empathy.
Caring, individualized attention the firm provides its customers.
3.3.1.2 Food Quality
The definitions of quality include the following: an attribute or special feature the nature,
kind or character (of something); hence the degree or grade of excellence etc. possessed by
a thing.
3..3.1.3 Perceived Value
Perceive value is considered as customer recognition and appreciation the utility of a
product that is given by a service provider which may full fill his/her expectation.
3.3.3 Dependent Variables
Dependent variables are the variables that measure the effect of the independent
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variables on the test unit. The dependent variable for this study is the customer satisfaction.
3.4 Hypothesis Development
i. There is a significant relationship between each independent variable (Dimension Of
service quality,food quality and percieved value) with Customer satisfaction.
ii. All the predictors such as Dimension of service quality, food quality and perceived value
are able to influence the customer satisfactions.
iii. There is significant different between several selected profile which the customer
satisfaction towards service quality dimension for customer.
3.5 Sampling Procedures
3.5.1Sampling Size
According to the rule of thumb, the sample size which is larger than 30 and less than
500 are appropriate for most research Sekaran. (2006). Sampling size refers to the number
of elements to be included in the study. The researcher determines there are large numbers
of domestics customers, 29,998 who received the serviced that given by KFC around Kuala
Lumpur and Selangor business district territory. Nominated as a knowledge Metropolis,
Kuala Lumpur is the federal capital and most popular city in Malaysia .The city covering an
area of 243 km (94 sq. mil), has a population estimated of 1.6 million as of 2012.Greater
Kuala Lumpur also known as the Selangor is an urban agglomeration of 7.2 million .It is
among the fastest growing metropolitan region in the country in terms of population and
economy. The total number of respondent of this sample size is 300 customers.
Based on the population data gathered, the recommended no of samples to be taken is
400. For the purpose of this research, the number of sample taken is 300, taking into
considerations the contingency for unused data. But unfortunately the willingness of
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customer to answer is very low due to privacy time and from 300 questionaire distributed
only 240 available to be analyze due to customer unwillingness to answer all question given.
3.5.2 Sampling Technique
Sampling technique can be classified into two techniques, which are non-probability
sampling and probability sampling. In this research, researcher is using probability sampling.
Probability sampling techniques are the sampling method that relies on the personal
judgment of the researcher Malhotra (2004).
In this study, researcher uses the non-probability sampling for the sampling technique. It
is because the elements in the population do not have any probabilities attached to them
being chosen as sample subjects. The researcher has decided to use the convenient
sampling. It is because it refers to the collection of information from the specific target group
who are conveniently available to provide it. From the total sample size the researcher found
that 300 respondents responded to the research activities.
3.5.3 Research Instrument
A set of questionnaire was constructed consisting of 54 questions. The breakdown of item is
questionnaire is as follows: 10 items on demographics profiles, 30 items on Service Quality,5
item on food quality,4 items on perceived value, and 5 item on Customer satisfaction.
3.5.4 The Sampling Design
The sampling involves the procedure that using a small number of items or parts of the
whole population to make conclusions regarding the whole population. Sampling is the stage
in which the researcher determines who is to be sampled, how large a sample is needed,
and how sampling units will be selected. The exactly terms are the population of this study,
the sample size, and the sampling techniques used by the researcher.
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3.5.5 Sample Population
Refer to Sekaran (2006) population is referring to the entire group of people, events, or
things of interest that researchers wish to investigate. While, Malhotra (2004) defined
population as a collection of elements or objects that possess the information sought by the
researcher and about which inferences are to be made. Population refers to the entire
group of people in the research project. The target populations of this study are the
domestics customers of these 2 fast food restaurant.
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3.6 Data Collection Method
In this research, the researchers have decided to use two types of primary data. These two
data are questionnaires and personal interview. This two data were used because of its level
of validity and also how it interrelates with each other. Besides that, one of them will also act
as a defense mechanism for another when it comes in term of level of validity.
3.6.1 Primary Data
Primary data refers to the information obtained firsthand by the researcher on the variables
of interest for the specific purpose of the study Sekaran. (2006). In order to obtain
information during this study, questionnaires are being used as primary data. Primary data is
used to get all the information directly from the domestic customers, by this method a survey
will be conducted on all domestic customers available at fast food outlet around Kuala
Lumpur and some Selangor District area.
3.6.2 Questionnaires
Questionnaire is one of the survey instruments, whereby it is a structured technique for data
collection consisting the series of questions, written or verbal, that are related to the topic
studied, to which a respondent replies. The questionnaire was designed to gather the
information based on the service quality provided ,food quality, perceived value and
customer satisfaction. The questionnaires were distributed to 300 domestic customers who
have to make payment on the service they used. The questionnaire was designed such that
the respondents can answer specific questions relevant to the study.
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3.6.3 Personal Interview
An interview also being conducted with the domestic customers and employees in order to
get a clear picture and further understanding on the research matters. This method helps to
gather additional information, feedback and comments on their knowledge and experience
that matters with this research.
3.7 Procedures For Data Analysis
Based on the sampling, 300 customers had been selected randomly. The statistical
package will be used to tabulate the data gathered from the research questionnaires. The
frequencies and Pearson Correlation analysis are used to analyze the data. The process of
analyzing the data will help researcher to determine the relative importance of the
correlations between dependent and independent variables.
Normality test
In statistics, normality tests are used to determine if a data set is well-modeled by a normal
distribution and to compute how likely it is for a random variable underlying the data set to be
normally distributed.
Confirmatory Factor Analysis (CFA)

In statistics, confirmatory factor analysis (CFA) is a special form of factor analysis, most
commonly used in social research. As such, the objective of confirmatory factor analysis is to
test whether the data fit a hypothesized measurement model. This hypothesized model is
based on theory and/or previous analytic research. CFA was first developed by Jreskog
(1969) and has built upon and replaced older methods of analyzing construct validity such as
the MTMM Matrix as described in Campbell and Fiske (1959).
25
Pearson product-moment correlation coefficient
The Pearson product-moment correlation coefficient (sometimes referred to as the PPMCC
or PCC, or Pearson's r) is a measure of the linear correlation (dependence) between two
variables X and Y, giving a value between +1 and 1 inclusive, where 1 is total positive
correlation, 0 is no correlation, and 1 is negative correlation. It is widely used in the
sciences as a measure of the degree of linear dependence between two variables. It was
developed by Karl Pearson from a related idea introduced by Francis Galton in the 1880.
Stigler and Stephen. (1989)
The coefficient of determination
The coefficient of determination, r 2, is useful because it gives the proportion of the variance
(fluctuation) of one variable that is predictable from the other variable. It is a measure that
allows us to determine how certain one can be in making predictions from a certain
model/graph.
Reliability Analysis
Reliability of a measure is established by testing both consistency and stability.
Consistency indicates how well the items measuring a concept hang together as a set.
Cronbachs alpha is a reliability coefficient that indicates how well the items in a set are
positively correlated to one another. Cronbachs alpha is computed in terms of the average
intercorrelations among the items measuring the concept. The closer Cronbachs alpha is to
1, the higher the internal consistency reliability. As suggested by Sekaran (2006), the
reliability test which the result less than 0.60 are generally considered as poor. Those in the
range of 0.70 is measured as acceptable, while over 0.80 is good. The closer Cronbachs
Alpha to 1, the higher the internal consistency reliability is.
26
Frequency Analysis
Frequency distribution is obtained for all the personal data or classification variables.
The purpose of the frequency distribution is to attain a count of the number of responses
associated with different values of one variable where these amounts are usually in
percentage. Therefore researcher can see their respondent background, such as gender,
education level, their job position, and also their income level.
Descriptive Analysis
Descriptive statistics such as maximum, minimum, means, and standard deviations
were obtained for the interval-scaled independent and dependent variables. By using this
analysis, researcher can obtain the pattern of respond made by respondent whether they are
giving more to the positive or negative answer.
27
CHAPTER 4
ANALYSIS AND FINDINGS
4.0 Preamble
These chapters will discuss about the finding of research and the ability of independent
variables in order to explain the dependent variable.
4.1 Introduction
In this chapter, researcher represents the finding and analysis on the study of the factor
influencing customer satisfaction among KFC and McDonalds customer. The 240
respondents have been collected as sample from population in the areas of study and the
respondents give full cooperation to the researcher along the process of collecting the data.
Researcher used the Statistical Package for Social Sciences (SPSS) system version 21.0 in
order to interpret the data of dependent and the independent variables. Three weeks is used
to collect the data and another two weeks to interpret the data of this study.
4.2 Reliability Analysis
In addressing the issue concerning reliability of the instrument, 240 sets of questionnaires
were distributed to the selected respondents and collected for analysis. Thankfully,
researcher able to collect the entire data from require respondent on time within three weeks.
The measurement was done by calculating the Cronbachs Alpha that indicates how well the
items in a set are positively correlated to one another. This is to ensure the validity of
questions develop to explains the variable of each group and researcher used the right
questions for specific variables. The results is analyzed and suggested in Table 4.1 below:-
28
Table 4.2.1 Part B Reliability Analysis
Corrected Cronbach's
Part B:Service Quality Item-Total Alpha
Correlation
B1. Has Visually attractive parking areas and building exteriors -.017 0.779
B3.Has staff members who are clean,neat and appropriately dressed .068
B4.Has a decor in keeping with its image and price range .064
B5.Has a menu that easily readable -.034
B6.Has visually attractive menu that reflects the restaurant image .996
B7.Has a dining area that is comfortable and easy to move around in .995
B8.Has rest rooms that are always clean .996
B9.Has dining areas that are thoroughly clean -.028
B10.Has comfortable seats in the dining room -.033
B11.Has employees who are sensitive to your individual needs and wants, .077
rather than always relying on policies and procedures
B12.Makes you feel special .993
B13.Anticipates your individual needs and wants .086
B14.Has employees who are sympathetic and reassuring if something is wrong. .073
B15.Seems to have the customers best interests at heart .075
B16.Serves you in the time promised .095
B18.Is dependable and consistent .093
B19.Provides an accurate guest check .068
B20.Serves your food exactly as you ordered it .090
B21.Has employees who can answer your questions completely .075
B22.Makes you feel comfortable and confident in your dealings with them .082
B23.Has personnel who are both able and willing to give your information -.031
about menu items, their ingredients, and methods of preparation
B24.Makes you feel personally safe .072
B25.Has personnel who are well trained, competent, and experienced -.032
B26.Give employees support so that they can do their jobs well -.034
B27.During busy times, has enough employees to help each other maintain -.021
speed and quality of service.
B28.Provides prompt and quick service -.004
B29.Gives extra effort to handle your special requests .078
B30.Offers excellent service quality .071
29
Table 4.2.2 Part C Reliability Analysis

Part C:Food Quality Item-Total Alpha
Correlation
C1.The restaurant offers healthy options .795

C2 The restaurant serves tasty food .441 0.760
C3.The restaurant offers fresh food .342
Corrected Cronbach's Table
C4.The restaurant Part
offers D:Percieved Value
a variety of menu items .807
Item-Total Alpha
4.2.3
Correlation
Part
D1. The meal provided by this restaurant is reasonably priced .801
D
D2.The meal provided by this restaurant offers value for money .327 0.755
D3.The quality of the meal provided is worth the price .440
D4.The meal provided by this restaurant is economical .790
Reliability analysis
Table 4.2.4 Part E Reliability analysis

Part E Customer Satisfaction Item-Total Alpha
Correlation
E1.I am satisfied with the service at this restaurant .410 0.580

E2.I am pleased to have visited this restaurant .410
Table 4.2 shows that the Cronbachs Alpha for all variables is between 0.580-0.779. These
results indicate the developed questions successfully measured the intended concept except
question for reliability. The inter-item consistency can be gathered from the Cronbachs Alpha
values. Sekaran &Bougie (2011) found that reliabilities less than 0.60 are considered to be
poor, those in range in the 0.70 range, acceptable, and those over 0.80 good. If the Cronbachs
Alpha is more than 0.60, the questions developed measured the intended concept.As shown
above, cronbachs alpha for customer satisfactions is below 0.6.In this case it may be
appropriate to report the mean inter term correlation for the item. Briggs and Cheek (1986)
recommend an optimist range for the inter item correlation of 0.2-0.4. As suggested by Sekaran
(2006), the reliability test which the result less than 0.60 are generally considered as poor.
Those in the range of 0.70 is measured as acceptable, while over 0.80 is good. The closer
Cronbachs Alpha to 1, the higher the internal consistency reliability is.
4.3 Frequency Analysis
Table 4.3: Analysis of Respondent Demographic.

No. Questions Frequency Percentage, (%)
30
1 Where Respondent currently at KFC 120 50.0

McDonalds 120 50.0
2 Gender Male 100 41.7
Female 140 58.3
3 Age 18-29 69 28.8
30-39 51 21.3
40-49 45 18.8
50-59 55 22.9
60 and above 20 8.3
4 Status Single 72 30.0
Married 154 64.2
Others 14 5.8
5 Race Malay 177 73.8
Chinese 54 22.5
Indian 9 3.8
6 Education Level SPM(Upper Secondary School) 121 50.4
Diploma/STPM 83 34.6
Degree and Above 36 15.0
7 Occupation Government Sector 76 31.7
Private Sector 99 41.3
Self Employed 24 10.0
Student 25 10.4
Others 16 6.7
8 Income Level Less than RM1000 29 12.1
Rm1000-Rm2000 93 38.8
Rm2001-Rm3000 80 33.3
Rm3001-Rm4000 28 11.7
Rm4001-Rm5000 10 4.2
9 Fast Food Preffered KFC 120 50.0
McDonalds 120 50.0
10 Factors Preffered Price 15 6.3
Atmosphere 122 50.8
WaitingTime 5 2.1
Kindness of personnel 29 12.1
Quality of Food 69 28.8
Table 4.3 indicates that both respondent for KFC and McDonalds currently at and which
restaurant preferred are selected equally which is 50% of 240 respondent in order to
determined level of satisfaction among them. From 240 respondent 100 of them are male
31
respondent and the rest are female respondent. Around 154 respondent status is married,
72 singles and the remaining 14 is other status. Regarding on the analysis, the age of the
respondent seems average for every range which is 18-29 years old with 69 respondent
28.8%,30-39 years old with 51 respondent 21.3%,40-49 years old with 45 respondent
18.8%,40-49 years old with 55 respondent 22.9% and 60 years above with 20 respondent
8.3%.The race of the respondent most of them are Malay with 177 respondent, Chinese
with 54 respondent and 9 of them is Indian. Next is education level.50.4% of the respondent
is SPM level of education,34.6% Diploma and STPM education level and the rest is Degree
and above with 15%.Occupation of the respondent dominated by private sector with 41.3%
followed with Government sector with 31.7%,Students with 10.4%,Self-employed with 10%
and other occupation with 6.7%.Majority of the respondent income level is around Rm1000-
RM2000 and the minority of respondent income level which is around RM4001-RM5000
with 4.2% from 240 respondent. Lastly is factors preferred choosing the restaurant. Majority
of respondents choose atmosphere with 50.8% and the least is waiting time with 2.1% from
240 respondent.
4.4 Descriptive Analysis
Saparate analysis had been made in order to identify which question had been choosen lowest
score in term of mean.
1) To assess the level of cutomer satisfaction towards Both KFC and McDonalds Restaurants.
32
a.KFC
Table 4.4(1a) Descriptive Statistics KFC(Section B)
Descriptive Statistics
N Mini Maxi Mea Std.

mum mum n Deviation
B1: Has Visually attractive parking areas and building exteriors 120 4 7 6.15 .806
B2: Has Visually Attractive dining area 120 4 7 6.15 .847
B3: Has staff members who are clean,neat and appropriately dressed 120 4 7 6.35 .795
B4: Has a decor in keeping with its image and price range 120 3 7 6.33 .735
B5: Has a menu that easily readable 120 4 7 6.30 .763
B6: Has visually attractive menu that reflects the restaurant image 120 4 7 6.33 .760
B7: Has a dining area that is comfortable and easy to move around in 120 4 7 6.22 .735
B8: Has rest rooms that are always clean 120 4 7 6.47 .849
B9: Has dining areas that are thoroughly clean 120 4 7 6.32 .809
B10: Has comfortable seats in the dining room 120 4 7 6.49 .789
B11: Has employees who are sensitive to your individual needs and 120 2 7 5.07 1.333
wants, rather than always relying on policies and procedures
B12: Makes you feel special 120 4 7 6.03 .772
B13: Anticipates your individual needs and wants 120 1 7 5.69 1.333
B14: Has employees who are sympathetic and reassuring if something 120 1 7 6.19 1.324
is wrong.
B15: Seems to have the customers best interests at heart 120 1 7 6.13 1.319
B16: Serves you in the time promised 120 4 7 6.35 .866
B17: Quickly corrects anything that is wrong 120 5 7 6.48 .621
B18: Is dependable and consistent 120 5 7 6.56 .632
B19: Provides an accurate guest check 120 5 7 6.46 .721
B20: Serves your food exactly as you ordered it 120 5 7 6.25 .713
B21: Has employees who can answer your questions completely 120 5 7 6.56 .671
B22: Makes you feel comfortable and confident in your dealings with 120 5 7 6.44 .671
them
B23: Has personnel who are both able and willing to give your 120 5 7 6.53 .710
information about menu items, their ingredients, and methods of
preparation
B24: Makes you feel personally safe 120 5 7 6.48 .635
B25: Has personnel who are well trained, competent, and experienced 120 5 7 6.63 .501
B26: Give employees support so that they can do their jobs well 120 5 7 6.72 .488
B27: During busy times, has enough employees to help each other 120 5 7 6.56 .577
maintain speed and quality of service.
B28: Provides prompt and quick service 120 5 7 6.59 .615
B29: Gives extra effort to handle your special requests 120 5 7 6.53 .593
B30: Offers excellent service quality 120 5 7 6.53 .565
33
Valid N (listwise) 120
Table 4.4(1b) Descriptive Statistics KFC(Section C)
N Minim Maxim Mean Std.

um um Deviation
C1: The restaurant offers a variety of menu items 120 1 7 6.19 1.324
C2: The restaurant offers healthy options 120 1 7 6.13 1.319
C3: The restaurant serves tasty food 120 4 7 6.35 .866
C4: The restaurant offers fresh food 120 5 7 6.48 .621
C5: Food is served at the appropriate temperature 120 5 7 6.72 .488
Table 4.4(1c) Descriptive Statistics KFC(Section D)

um um Deviation
D1: The meal provided by this restaurant is reasonably priced 120 1 7 6.19 1.324
D2: The meal provided by this restaurant offers value for 120 5 7 6.48 .621
money
D3: The quality of the meal provided is worth the price 120 4 7 6.35 .866
D4: The meal provided by this restaurant is economical 120 1 7 6.13 1.319
Table 4.4(1d) Descriptive Statistics KFC(Section E)

um um Deviation
E1: I am satisfied with the service at this restaurant 120 5 7 6.72 .488
E2: I am pleased to have visited this restaurant 120 5 7 6.56 .577
E3: I would like to come back to this restaurant in the future 120 5 7 6.53 .565
E4: I would recommend this restaurant to my friends or others 120 5 7 6.53 .593
E5: I would say positive things about this restaurant to others 120 5 7 6.59 .615
34
Table 4.4(1a,1b,1c and 1d) shows that, mean values for these items ranging from 5.6042-
6.5981 with standard deviation ranging from 5.07-6.72.. These indicate that averagely the
respondents are agreed in responding to each question. This analysis had answered the
research question 1 and 2.
b.McDonalds
Table 4.4(2a) Descriptive Statistics McDonalds (Section B)
N Mini Maxi Mean Std.

mum mum Deviation
B2: Has Visually Attractive dining area 119 5 7 6.38 .521

B3: Has staff members who are clean,neat and appropriately dressed 120 4 7 6.28 .611
B4: Has a decor in keeping with its image and price range 120 4 7 6.39 .539
B5: Has a menu that easily readable 120 5 7 6.40 .525
B6: Has visually attractive menu that reflects the restaurant image 119 4 7 6.18 .562
B7: Has a dining area that is comfortable and easy to move around in 119 4 7 6.37 .565
B8: Has rest rooms that are always clean 119 5 7 6.33 .554
B9: Has dining areas that are thoroughly clean 120 5 7 6.43 .604
B10: Has comfortable seats in the dining room 120 4 7 6.33 .582
B11: Has employees who are sensitive to your individual needs and 120 1 7 4.83 1.807
wants, rather than always relying on policies and procedures
B12: Makes you feel special 119 1 7 4.94 1.833
B13: Anticipates your individual needs and wants 120 1 7 4.13 1.742
B14: Has employees who are sympathetic and reassuring if 120 1 7 4.33 1.692
something is wrong.
B15: Seems to have the customers best interests at heart 120 1 7 4.26 1.703
B16: Serves you in the time promised 120 4 7 6.00 .710
B17: Quickly corrects anything that is wrong 119 4 7 5.08 .971
B18: Is dependable and consistent 120 4 7 6.14 .714
B19: Provides an accurate guest check 120 4 7 6.33 .833
B20: Serves your food exactly as you ordered it 120 4 7 6.16 .674
B21: Has employees who can answer your questions completely 120 4 7 5.96 .938
B22: Makes you feel comfortable and confident in your dealings with 120 4 7 6.04 .782
them
B23: Has personnel who are both able and willing to give your 120 4 7 6.44 .731
information about menu items, their ingredients, and methods of
preparation
B24: Makes you feel personally safe 120 4 7 6.22 .862
35
B25: Has personnel who are well trained, competent, and 120 5 7 6.42 .729
experienced
B26: Give employees support so that they can do their jobs well 120 5 7 6.42 .668
B27: During busy times, has enough employees to help each other 120 5 7 6.38 .724
maintain speed and quality of service.
B28: Provides prompt and quick service 120 5 7 6.27 .753
B29: Gives extra effort to handle your special requests 120 5 7 6.38 .699
B30: Offers excellent service quality 120 5 7 6.43 .694
Table 4.4(2b) Descriptive Statistics McDonalds (Section C)

mum mum Deviation
C1: The restaurant offers a variety of menu items 120 1 7 4.33 1.692
C2: The restaurant offers healthy options 120 1 7 4.26 1.703
C3: The restaurant serves tasty food 120 4 7 6.00 .710
C4: The restaurant offers fresh food 119 4 7 5.07 .954
C5: Food is served at the appropriate temperature 119 5 7 6.43 .658
Table 4.4(2c) Descriptive Statistics McDonalds (Section D)

mum mum Deviation
D1: The meal provided by this restaurant is reasonably priced 120 1 7 4.33 1.692
D2: The meal provided by this restaurant offers value for money 119 4 7 5.08 .971
D3: The quality of the meal provided is worth the price 120 4 7 6.00 .710
D4: The meal provided by this restaurant is economical 119 1 7 4.27 1.706
Table 4.4(2d) Descriptive Statistics McDonalds (Section E)

mum mum Deviation
36
E1: I am satisfied with the service at this restaurant 120 5 7 6.42 .668
E2: I am pleased to have visited this restaurant 120 5 7 6.38 .724
E3: I would like to come back to this restaurant in the future 120 5 7 6.43 .694
E4: I would recommend this restaurant to my friends or others 120 5 7 6.38 .699
E5: I would say positive things about this restaurant to others 120 5 7 6.25 .748
Table 4.4(2a,2b,2c and 2d) shows that, mean values for these items ranging from 4.13 to
6.44 with standard deviation ranging from 5.6042-6.5981. These indicate that averagely the
respondents are agreed in responding to each question. This analysis had answered the
research question 1 and 2. (Manoj & Sunil 2011)
4.5 Pearson Correlation
To investigate the associations between independent variable (Dimension of service quality,

food quality and perceived value) and dependent variable (customer satisfaction).
Table 4.5 Pearson Correlation
Correlationsb
m_sq m_fq m_pv m_cs

** **
m_sq Pearson Correlation 1 .888 .878 .505**
Sig. (2-tailed) .000 .000 .000

** **
m_fq Pearson Correlation .888 1 .991 .471**
Sig. (2-tailed) .000 .000 .000
m_pv Pearson Correlation .878** .991** 1 .384**
Sig. (2-tailed) .000 .000 .000
m_cs Pearson Correlation .505** .471** .384** 1
Sig. (2-tailed) .000 .000 .000
**. Correlation is significant at the 0.01 level (2-tailed).
b. Listwise N=240
Table 4.5 shows that the relationship between independent variables (dimension of service
quality,food quality and percieved value) with dependent variable (customer satisfaction). The
37
relationship between service quality and food quality with the dependant variable which is
customer satisfaction are moderate which is 0.471 and 0.505 respectively.While the
relationship of percieved value have moderate week relationship with customer satisfaction
with 0.384. From the correlation table show that all three factor influencing customer
satisfaction is significant with (0.00=,p<0.05) Stigler and Stephen. (1989). Thus objective 2
is supported and hypothesis 1 is accepted. These correlations also provide further
evidence of validity and reliability for measurement scales used in this research Azman et al.
2008)
4.6 Multiple Regression
To investigate the most influential factor of Customer Satisfaction among KFC and McDonalds
customer.
4.6(1a) Table of adjusted R Square

Model Summary
Model R R Square Adjusted R Std. Error of the

Square Estimate
a
1 .808 .652 .648 .31464
a. Predictors: (Constant), M_Pervalue, M_Servqual, M_FoodQual
4.6(1b) Table Anova Analysis of Multiple regression

ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 43.802 3 14.601 147.479 .000b
1 Residual 23.364 236 .099
Total 67.166 239
a. Dependent Variable: M_CustSatisfy

b. Predictors: (Constant), M_Pervalue, M_Servqual, M_FoodQual
Table 4.5 indicates the independent variables contribute 41.3% in explaining the dependent
variable. Further, table 4.6 shows that the model is significant at 0.000 (F=147.479, p< 0.05).
38
4.6(1c) Coefficient Table

Coefficientsa
Model Unstandardized Coefficients Standardized t Sig. Collinearity Statistics

Coefficients
B Std. Error Beta Tolerance VIF
(Constant) 2.029 .216 9.394 .000
M_Servqual -.001 .004 -.007 -.184 .854 .991 1.009

1
M_FoodQual 3.181 .172 5.504 18.498 .000 .017 60.072
M_Pervalue -2.486 .146 -5.074 -17.046 .000 .017 60.122
Table 4.6(1c) further shows the significant level for each independent variable.Food quality
and perceived value show the p value of 0.00 which is significant but when we see at
tolerance value,the tolerance values lower than 0.2 which means both variables is correlating
with other independent variable and should not be included.while the other independent
variables which is servqual show p value equal to higher than 0.000 which is 0.854 and it is
not significant since it is higher than 0.05.Combination data of KFC and McDonald shown no
independent variables that mostly influenced towards customer satisfaction.Thus,the
researcher saparating both data in order to have better results.the result of the saparation as
shown after at the end of regression analysis.
4.6(1d) Collinearity Diagnosticsa
Model Dimension Eigenvalue Condition Variance Proportions

Index
(Constant) M_Servqual M_FoodQual M_Pervalue
1 3.683 1.000 0.00 0.02 0.00 0.00
2 0.296 3.526 0.00 0.97 0.00 0.00
3 .020 13.439 0.28 0.01 0.00 0.01
0.000 124.513 0.71 0.00 1.00 0.99
a. Dependent Variable: M_Csatis
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value 4.8472 6.8869 6.5188 0.42810 240
39
Residual -.88689 1.15280 0.00000 0.31266 240

Std. Predicted Value -3.905 .860 0.000 1.000 240
Std. Residual -2.819 3.664 0.000 0.994 240
4.6(2a)Table of Coefficients for KFC

Coefficientsa
Model Unstandardized Standardized t Sig. Collinearity Statistics

Coefficients Coefficients
(Constant) -1.095 .716 -1.529 .129
m_sq .740 .154 .475 4.808 .000 .303 3.304

1
m_fq 2.877 .250 4.497 11.529 .000 .019 51.540
m_pv -2.431 .202 -4.552 -12.020 .000 .021 48.573
a. Dependent Variable: m_cs
Table 4.7.2 further shows the significant level for each independent variable for KFC.
Service Quality of KFC shows that significant to Customer satisfaction at p-value of 0.000
(B=0.475) and the other 2 independent variables shows tolerance below 0.2 meaning that
that item is correlating with other item and should not be included in KFC customers
Questionaires. So, service quality is the most influence factor that contributes to satisfying
customer of KFC compared to the other independent variables. When the tolerance values
less than 10, multi-colleniarity assumption is not exist in this study.
While for mcDonalds ,variables food quality of McDonalds shows that significant to Customer
satisfaction at p-value of 0.000 (B=3.713). So, Food quality is the most influence factor that
contributes to satisfying customer of McDonalds compared to the other independent
variables. When the tolerance values less than 10, multi-colleniarity assumption is not exist
in this study.
So, here we are acknowledging that customer satisfaction of KFC is on service quality
provided by them and McDonalds customer satisfaction is lean towards food quality as
40
compared with other independent variables. The problem was solved by saparating both
customer of KFC and McDonald and it is shown below.So, here we are acknowledging that
there is an issue regarding choosing the most significant independent variables for both
restaurants.Thus,after analysing saparate regression analysis the research question 3
is answered and objective number 3 is supported for KFC and McDonalds as well.
4.6(3a)Table of Coefficients For McDonalds

Coefficientsa
Model Unstandardized Coefficients Standardized t Sig. Collinearity Statistics

Coefficients
(Constant) .652 .896 .728 .468
m_sq .334 .203 .170 1.648 .102 .296 3.374

1
m_fq 2.912 .254 3.713 11.453 .000 .030 33.357
m_pv -2.319 .207 -3.445 -11.227 .000 .033 29.888
a. Dependent Variable: m_cs
4.7 T Test
H3.There is significant different between several selected profile which the customer satisfaction
towards service quality dimension for customer. There were 2 selected profiles for this T-Test
analysis which is:
41
A.To measure the difference between customer of KFC and Mcdonalds toward Satisfaction of
the services provided.
Table 4.7(1a) :Group statistics among KFC and McDonalds respondent.

Group Statistics
Where Respondent N Mean Std. Std. Error

currently at Deviation Mean
M_CustSatisfy KFC 120 6.6375 .42487 .03879
McDonalds 120 6.4000 .59621 .05443
The group statistics in the table 4.7(1a) shows that, KFC have 120 respondent and McDonalds
120 respondent. Thus, the mean value for KFC is 6.6375 and for McDonalds are 6.4000. The
standard deviations are 0.03879 and 0.05443 respectively.
Table 4.7(1b) :Independent samples test for male and female.

Independent Samples Test
Levene's Test for t-test for Equality of Means

Equality of
Variances
F Sig. t df Sig. Mean Std. 95% Confidence

(2- Differe Error Interval of the
tailed nce Differe Difference
) nce Lower Upper
M_Cu Equal 17.69 .000 3.5 23 .000 . . . .

stSati variances 8 54 8 23750 06683 10584 36916
sfy assumed
Equal 3.5 21 .000 . . . .

variances not 54 5.0 23750 06683 10577 36923
assumed 84
The significant value for Levene's Test for Equality of Variances is 0.000 (p < 0.05), therefore
the significant value under Equal variances assumed should not be referred. Meaning that,
there is a difference between KFC and McDonalds customer regards to Customer satisfaction
on the services. Thus, hypothesis 3 is supported. From the result of T-test analysis which
show significant of Both satisfaction of customer of KFC and McDonalds can be predict that,
some of KFC customer more satisfy with Service provided by KFC compare to McDonald
42
Customer who satisfy with McDonald services. Thus, this behavior will lead to different level of
satisfaction among KFC and McDonalds customer.
2.To measure the difference between customer in gender towards satisfaction on both KFC and
McDonalds services.
Table 4.7(2a) :Group statistics among male and female respondent.

Gender N Mean Std. Deviation Std. Error Mean
M_CusSatisfy Male 100 6.4780 .52346 .05235
Female 140 6.4771 .53639 .04533
The group statistics in the table 4.7(2a) shows that, female is the bigger group which 140
respondent and male only 100 respondent. Thus, the mean value for female is 6.4771 and for
male are 6.4780. The standard deviations are 0.42006 and 0.38862 respectively.
Table 4.7(2b) :Independent samples test for male and female..

Group Statistics
Levene's Test
for Equality of
T-test for Equality of Means
Variances
95% Confidence Interval
Std. Error of the Difference
F Sig. t df Sig. Mean
Diff
Diff
(2-tailed) Lower Upper
M_Csatisfaction
Equal variances
.635 .426 .401 238 .689 .02786 .06953 -.104912 .16483
assumed
216.466
Equal variances not .402 .688 .02786 .06925 -.10863 .16434
assumed
The significant value for Levene's Test for Equality of Variances is 0.426 (p > 0.05), therefore
the significant value under Equal variances assumed should be referred, which is 0.689 (p >
0.05). Meaning that, there is no difference between male and female regards to satifaction on
services provided by KFC and McDonalds. Thus, hypothesis 3 is not supported.
4.8 Personal Interview
43
The other findings that had been come out during the research been conducted is personal
interview. 2 interviewee had been selected in order to answer several questions that will help
the researcher to finishing the research. The first interviewee is one of the KFC Holding Quality
Audit Manager. The second Interviewee is Business Development Manager for Ayamas The
name cannot be mention as interviewee request.
1st Interviewee
Several questions had been asked in order to determine perception of KFC Manager towards
different Fast food. The manager choosing McDonalds as fast food preferred and when the
researcher asked why he chose McDonalds is because of the burger itself. The quality of the
burger is slightly different compared with other fast food who serving burger as their main meal.
The burgers served by McDonalds also come out with cheap prices especially when it comes to
promotion period that is value meal. The manager also give some response on trending
nowadays which is most teenager came to McDonalds is because of trending and lifestyle.
McDonalds Serving value meals and the McDonalds restaurant surrounding are quite
comfortable for a cheap value plus free Wi-Fi around the restaurant.
2nd Interviewee
Same question had been asked to the 2nd interviewee and he had choose KFC as his favorite
fast food restaurant. The manager choose KFC because of the service given and also it is
because his son always ask him to bring him to KFC .He also mention that mostly the family
come for the kid meals and the main reason why he choose KFC is because of the atmosphere
of the KFC itself. The atmosphere can create family to be gathered happily and the fried chicken
also has special taste that can increase his appetite.
CHAPTER 5
CONCLUSION AND RECOMMENDATION
44
5.0 Preamble
This chapter will elaborate and discuss more clearly the analysis finding and its interpretation
found in chapter 4. It is explains the relationship of the independent variables (Service quality,
food quality and perceived value) with Customer satisfaction.
5.1 Introduction
In this chapter, researcher aims to analyze the way to satisfying customer which is independent
variable factor that contribute to organizational success especially in attracting loyal customer.
Based on chapter 4, researcher conduct the data analysis to measures both factors. This is
important for the researcher in order to give better explanation on the factor and concept
provided at the early design of this study.
Chapter 1 develop by researcher is to give guidelines in term of explaining the problem of study,
objective and develop the right concept in continuing the study with the right track. Then,
researcher increase the nature of study by providing the facts and useful information in the
chapter 2 from secondary sources such as from journal, books, magazines, internet and other
sources is helped in searching the right information. Thus, continuation from chapter 3,
researcher provides the way of how the samples are taken and data analysis technique in
conducting this research precisely. In chapter 4, researcher distributed and collected the
questionnaire from target respondents and conduct data analysis to measure the concept of
study with primary data to better acknowledge the real respondent environment regarding the
finding.
The conclusion part will try to clarify the study towards the importance to know whether the both
organization implementing all the factor that leading towards customer satisfaction around
Klang Valley area is related with independent variables provided by researcher to support the
dependent variable.
5.2 Conclusion
45
Based on the finding in the chapter 4, researcher found out that the understanding of
respondent when answering the questionnaire given to them. It is surprise to see that result
from reliability analysis is positive to help researcher into further data analysis and answer the
questions develop in the chapter 1. From the finding, researcher completely answers the entire
question that persists to measure the desire concept. After completing the analysis, researcher
found that a few objectives and hypothesis did not significant to explain the organizational
learning success which is the dependent variable. Even though, this is not meaning that the
result is not good or out of track but was show the real Customer satisfaction towards services
provided by KFC and McDonalds. Researcher is satisfied with end data finding because of
concept can be explained very well.
For reliability test do by researcher found that, all independent factors contribute to the
higher rate (more than 0.70 to 0.80) which the questions develops are tap to concept and
respondent understand to answer. But for dependent variable showing that the value of
cronbach alpha below 0.6 which is 0.58. In this case it may be appropriate to report the mean
inter term correlation for the item. Briggs and Cheek (1986) recommend an optimal range for
the inter item correlation of 0.2-0.4.Thus from the analysis, they agreed with the questions
based on answer scale. This shows that, researcher able to measure the sense of how
respondent analyzes knowledge sharing with organizational learning success by their
perception without researcher interference.
In the demographic analysis, most of respondent is female ,at the age of 18-29 years old
,married, Malay race, SPM level of education, working at private sector with income level from
rm1000 to rm2000.In accessing the means of respondent answer, researcher conducted
descriptive statistic to investigate the way on how answers are given. By right, the answer is
around 3-7. This shows that respondent still agreed with the questions propose by researcher.
46
Saparate analysis had been made in order to identify which question had been choosen
lowest score in term of mean.From descriptive analysisof KFC and McDonalds,it shows several
item in the questinaires resulting low mean which can be explained as that question is low in
range from the most of respondent.
Correlations analysis shows that the relationship between independent variables
(dimension of service quality,food quality and percieved value) with dependent variable
(customer satisfaction).From the result,it clearly shown that all 3 independent have relationship
with dependent variables with all 3 achieving significant relationship.
Analyzing the multiple regressions, researcher able to know the percent of independent variable
influencing customer satisfaction which is 65.2% The researcher need to identify which
independent variables(service quality, food quality and perceived value) are influencing the most
towards dependent variable which is customer satisfaction .Separated analysis being conducted
for KFC and McDonalds .KFC analysis shows that service quality is the most influential factor
towards customer satisfaction for KFC while for McDonalds, food quality is the most influential
toward McDonalds customer satisfaction. Finally, researcher found out there is a significant
difference for 1 selected profile which is KFC and McDonalds customer and another one profile
that is gender are showing that there is no significant difference which the customer satisfaction.
5.3 Recommendation
For this study, the researcher gets good response from respondents. They gave a lot of opinion
and recommendation about customer satisfaction especially towards both KFC and McDonalds.
47
Based on descriptive analysis, there were several question showing the lowest mean score.
Thus, researcher able to come up with several recommendations regarding the finding of this
study as below:
5.3.1 KFC
a. Lessen The Policies Adapting more Sensitivity
KFC is one of the domain fast food mostly had implementing several policies which had
limit the relation between customer with KFC employee. These strict policies need to be less
focus as replacing it with sensitivity. Some customer might came to the restaurant for the
services and why not giving a new view which is by changing the atmosphere from family to a
bigger family. These can be done by train the employee to be more friendly towards regular
customer.
b. Conduct a research on consumer behavior
In customer service field, the most important element is the customer itself. Everything
such need and wants are such important part in realizing customer satisfaction and before it can
be done, an organization that serving services need to be the first to anticipate what are the
things need to be improved and things that customer wanted. Every customer have different
desire especially when it comes to age. Different customer in term of age mostly have different
interest in taste .A promotion on differ age might be a good move.
5.3.2 McDonalds
a. Offers more healthy option on menu
Consumers nowadays are very choosy, including in selecting meals every day. Some
might just like the way the fast food menu are but some may not. A healthy option might be
48
good dealing with this kind of consumer trend. When it comes to age, mostly customer with a
late age majority will choose healthy eating habit.
5.3.3 General: Benchmarking from Better Company
Benchmarking is a common practice and sensible exercise to establish baselines, define best
practices, identify improvement opportunities and create a competitive environment within the
organization. Benchmarking helps companies As from what had been discussed before, every
company have their own company or brand name strength. As for KFC, their strength are based
on Service quality whereas McDonalds with food quality. Both can overcome their own
weaknesses by learning from other competitors strength. The effect of benchmarking Gain an
independent perspective about how well they perform compared to other companies clearly
identify specific areas of opportunity, validate assumptions prioritize improvement opportunities
set performance expectations and monitor company performance and manage changes.
Benchmarking at its best is used as a tool to help companies evaluate and prioritize
improvement opportunities.
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Factor Influencing Customer Satisfaction

definitions of the terms.

1.2 Background of Study

Lumpur and Selangor.

1.2.1 Background of the company

name that is QSR Brands Bhd.

QSR Brands Bhd is an investment holding company, operates a chain of quick-service

restaurant. It operates approximately 640 KFC restaurants in Malaysia, Singapore, Brunei,

and 27 Rasamas restaurants in Malaysia and Brunei as well as approximately 74 Kedai

company is based in Kuala Lumpur, Malaysia.

1.3 Problem Statement

industry's attempts to respond to changes in consumer preferences have also supported

the youth, but also with dining families.

Figure 1.1:Estimated Market share of Fast food Segment In Malaysia 2007

survived is by listen and provide what exactly people want.

because maintaining an existing customer provides several economic benefits. Customer

Ayamas, CHAMPS from KFC and Pizza Hut.

to change their brands preferred. Benchmarking is made in order to pursue competitors

This research is based on the primary data through questionnaire distribution.

1.4 Research Objectives

i- To assess the level of customer satisfaction towards KFC Holding and

Food Quality and Perceived Value) and dependent variable (Customer

and McDonalds customer.

the customer satisfaction towards Dimension of Service Quality, Food Quality

and Customer Perceived value.

1.5 Research Question

McDonalds restaurant in Klang Valley area?

KFC and McDonalds customer will lead towards Customer satisfaction?

satisfaction towards Dimension of Service Quality, Food Quality and Customer

1.6 Significance of the Study

customer getting services.

1.7 Scope and Limitation

question given. In this research we conduct the study on responsiveness, assurance,

tangible, empathy, reliability, food quality and perceived value.

the questionnaire due to on leaving it.

and for printing the questionnaire.

1.8 Definition Of Key term

1.8.1 Customer Satisfaction

It is a business term, is a measure of how products and services supplied by a company

meet or surpass customer expectation. Customer satisfaction is seen as a key differentiator

and increasingly has become a key element of business strategy

1.8.2 Service Quality

Service quality was originally measured on 10 aspects of service quality: reliability,

responsiveness, competence, access, courtesy, communication, credibility, security,

customer expectations and experience

1.8.3 Service Quality Dimension

Ability to perform the promised service dependably and accurately.

The willingness to provide or to help and prompt.

Caring, individualized attention the firm provides its customers.

The physical facilities, equipment and appearance of personnel.

Researcher desires to use previous reference as guidelines in explaining the factor

to develop a good problem statement.

build the problem statement and the theoretical framework.

2.3 Customer Satisfaction

satisfaction. Satisfaction can be defined as a persons feelings of pleasure or disappointment

or her expectations. Satisfaction also can be describe as the feelings of acceptance,

happiness, relief, excitement, and delight.

A firms future profitability depends on satisfying customers in the present retained

increase customer loyalty to the service business.

2.4 What is Quality?

like degree of excellence, relative nature, or kind or character, and usually go on to

equate quality with high rank or greater standing.