Fast Food Industry Complete Analysis

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MM ARKETING ARKETING MM ANAGEMENT ANAGEMENT

PPROGRAMROGRAM: M.C: M.COMOM

BBATCHATCH : 6: 6

A A SSIGNMENT SSIGNMENT T T OPIC OPIC . .

FFASTAST FFOODOOD IINDUSTRYNDUSTRY CCOMPLETEOMPLETE AANALYSISNALYSIS

S UBMITTED TO:

Mr. Hammad Mushtaq

S UBMITTED BY :

ADNAN SAJID 100645-011

DATE: 20-05-2011

Consumer Involvement 1



Table of Contents

Executive Summary........................................................................................................1

Introduction of the industry............................................................................................2




Introduction of the organization....................................................................................3

Introduction of the major competitors...........................................................................4

Literature review on relevant issue................................................................................5

Problem Statement..........................................................................................................6

Research Question..........................................................................................................7

Research Methodology....................................................................................................8

Sampling Plan.................................................................................................................9

Time Schedule.................................................................................................................10

Cost Schedule..................................................................................................................11

Data Analysis...................................................................................................................12

Findings...........................................................................................................................13

Recommendation.............................................................................................................14

References.......................................................................................................................15




Executive Summary

This Proposal explains the Consumer Involvement in purchasing of Fast Food products which

tells that how much people are involved in the Fast Food products they used to make decisions

about them, It explains the Problem Statement, Research Question, Research Objectives andResearch variables for conducting a research on checking the consumer involvement level in the

purchasing of Fast Food products.

It explains the Research Methodology which had used for conducting a research that what were

the sources and nature of the data. It explains that how we measured the data which was got

from the research.

Sampling Plan for the research also being explained that what our population, Sampling Unit,

how big our sample size was and what method we used for conducting a survey e.g.

Questionnaire.

Time Schedule will explain that how much time it took to complete our different aspects of

research and at the end the Cost Schedule that how much cost incurred on starting and

completion of the research.




Introduction to the Industry (Fast Food)

In this fast moving life with busy schedules and almost not time to spare every person of this

world wants fast transportation, fast communication and fast services like wise they want some

quick method in preparation of their food. The think that fulfill their demand is known as fast

food. The concept of fast food is generally associated with urban development. The food that is

prepared and served with in very short period of time is known as fast food or any meal with

low preparation of time can be considered as fast food. Typically the term fast food refers to

food sold in a restaurant or store with low quality preparation and served to the customer in a

packaged form for takeout or take away. The most evident advantage of fast food is that it saves

time. In today's fast-paced life, there is nothing better than getting a ready meal. Besides time,

cost saving gives fast food an edge over the meal prepared in the kitchen. If one lives alone,

then it is cheaper to buy a meal at the supermarket instead of cooking it at home. Different type

of meals like pizza, sandwich, French fries, fried chicken, shuwarma, hamburgers etc are

including in fast food.

Carl N. Karcher is one of the fast food Pioneer of Fast Food Industry in the world. In U.S the

largest segment of Fast Food is available with over 200,000 restaurants. But since late 2006, the

growth becomes slow because of soaring food and energy prices.

The concept of fast food not only in other countries but now in Pakistan is very common. This

industry now in Pakistan attracts so much people. Almost a person of every age now likes to eat

fast food. This industry works in Pakistan both in local level and international level. At

international level some international fast food franchises play a major role behind the success

of this industry in Pakistan. In this regard the contribution of International fast food franchiseslike KFC, MacDonald’s, and Pizza Hut being consider very important. At local level the fast

food restaurants like Fri chicks, AFC etc give head to head competition these international fast

food franchises in Pakistan.




Introduction of the organization under study (KFC)

KFC that is also known as “Kentucky Fried Chicken” is a brand of Yum! Incorporation. KFC

founded by Colonel Harland Sanders in 1952, is widely known as the world famous fast food

restaurant around the world.

Colonel Harland Sanders was born at 9 September 1890 in Louisville, Kentucky, U.S. He study

hard on fried chicken technologies, finally invented the eleven spices and unique cooking

technologies synthetic secret recipe successfully and was favored by the customers. The

business of the restaurant boom gradually and the secret recipe was continue to use until now.

In 1930; he started cooking chicken in a service station named sander’s court Corbin. In 1936

Kentucky started “Sanders Court & Cafe”. It was a dinning cafe and the governor of that time

Mr. Ruby Laffoon congratulates Sanders on his contribution to the state’s cuisine. Then sanders

expand his restaurant seats up to 142. In 1952 he moved to USA and opened the first“Kentucky Fried Chicken” outlet in 1952. Because of its unique and delicious flavor KFC gain

the success with in years. In very short period of time KFC gain international success and

recognition. Then the outlets of KFC were opened not only in USA but also in other countries

of the world. Now KFC has been the world biggest Fried chicken fast-food chain enterprise,

which has own more than 11,000 restaurants. These restaurants are over more than 80 countries.

KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus is

fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts.

According to current scenario they offer Zinger burger, Col. Fillet burger, Macho’s burger, Col.

Chicken burger, Cheese, Nuggets, Hot wings, Fries, Corn on the cob, Arabian rice, Dinner rolls,Hot and crispy soup, Soft Drink, Mineral water, Espresso, Cappuccino, Tea etc.

Like wise different countries KFC entered in Pakistan in 1st January 1997. When they opened

their first outlet in Gulshan-e-Iqbal , Karachi and with in no time KFC gained fabulous

popularity among the people of Pakistan. With in two or three years it became the market leader

and one of the famous fast food chains in Pakistan. According to the current situation KFC is

branched out in 17 cities of Pakistan with more than 62 outlets nation wide.

Introduction of the Major Competitors in the Industry




AFC (Al Najam Fried Chicken)

AFC is the fast food chain in Pakistan, which was started in mid 90’s in Samanabad Lahorewhen fast food in Pakistan was emerging and becomes famous in the People. It is local fast food

chain of Pakistan. Now AFC has thirteen branches nationwide like Mall Road, Railway Station,

Abbot Road, Allama Iqbal Town, Fortress and Township in Lahore and it is also operating in

the cities like Faisalabad, Gujrat, Rawalpindi, Abbotabad, Peshawar, Murree and Sargodha. The

Head office of AFC is situated on 95-Main Marked Saman-Abad Lahore which is also the first

branch AFC.

AFC claimed that they provide hygienic and quality products and used frozen chicken which is

safe, healthy and hygienic for the customers and offered fewer prices as compared to other Fast

Food Chains like McDonald’s, KFC and Pizza Hut etc so that middle class people can alsoafford fast food which was not possible for the people and their goal and aim is “To make

quality fast food available to all those people who liked the fast food but couldn’t afford.”

McDonalds

McDonald’s restaurant is the largest fast food chain of the world which provides different types

of product like hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft

drinks, milkshakes, and desserts and salads, wraps and fruit for the health conscious people.

McDonalds Corporation started in 1940 by the two brothers Dick and Mac McDonald in San

Bernardino, California, and then Ray Korc opened the first McDonald’s restaurant in 1955 in

the United States of America. It is the ninth most valuable brand in the world.

Now, McDonalds is the leading global food service retailer with more than 30,000 local

restaurants, employing more than 1.5 million people and serving 54 million customers in more

than 120 countries each day. In Pakistan it is also being operated and proved to be famous fast

food brand in Pakistan. It was opened in Pakistan in 1998 at Lahore and now working in seven

major cities of Pakistan and has 20 branches all over Pakistan and also planning to move

forward in other cities as well by using aggressive plan to expand. And they are givingemployment to about 3000 people in Pakistan with the investment of 30 million.

Pizza Hut


http://en.wikipedia.org/wiki/Dick_and_Mac_McDonald

http://en.wikipedia.org/wiki/San_Bernardino,_California


http://en.wikipedia.org/wiki/California

http://en.wikipedia.org/wiki/Dick_and_Mac_McDonald



http://en.wikipedia.org/wiki/California



Pizza Hut is the American fast food restaurant chain, which offer different types of products

especially Pizza of different styles and in four different sizes, personal (individual serving),

small, medium and large. The varieties and styles of Pizza they are offering are Meat Lovers,

Pepperoni Lovers, Cheese Lovers, Veggie Lovers, Double Cheeseburger, Supreme, Super

Supreme and they also offered other side dishes as well like pasta, buffalo wings, breadsticks, and garlic bread.

Pizza Hut was founded in 1958 by bothers, Dan and Frank Carney and the first franchise was

opened in 1959 in Topeka, Kansas and now it is working in approximately 100 countries and

approximately 34000 restaurants all over the world. In Pakistan Pizza Hut is also operating and

its operations has been expanded in 10 cities of Pakistan including, Lahore, Islamabad, Sialkot,

Rawalpindi, Karachi, Hyderabad, Multan, Peshawar, Faislabad and Muree and the numbers of

outlets in Pakistan are 37 which are expanded in all these cities.

Subway

Subway is the international fast food chain restaurant, which are widely distributed in the world

and proved to be one of the largest fast food chain. Subway started by Fred DeLuca in 1965 in

North America and which was owned and operated by Doctor’s Associations, Inc (DAI). The

products, which are sold in Subway, are submarine, sandwiches and salads and Subway started

its first association outside North America in 1984 when Subway was started in Bahrain. Now

Subway has 32271 franchises and which it is being operated in 91 different countries. Subway

also ranked No.1 by Entrepreneur Magazine twice.

Subway is also operated in Pakistan as well like other countries and the network of Subway in

Pakistan is spread in four cities of Pakistan including Karachi, Lahore, Islamabad and Sialkot.

Also there are many franchises of Subway, which are under construction in Pakistan. Subway is

known to be a healthy food server, which is targeting the health conscious people.


http://en.wikipedia.org/wiki/Pasta

http://en.wikipedia.org/wiki/Buffalo_wings

http://en.wikipedia.org/wiki/Breadstick

http://en.wikipedia.org/wiki/Garlic_bread

http://en.wikipedia.org/wiki/Pasta

http://en.wikipedia.org/wiki/Buffalo_wings

http://en.wikipedia.org/wiki/Breadstick

http://en.wikipedia.org/wiki/Garlic_bread



Literature Review

Consumer Involvement in financial services: an empirical test of two measures

By Abdullah H. Aldlaigan

Manchester Business School, University of Manchester, Manchester, UK Francis A. Buttle

Littlewoods Professor of Customer Relationship Management, Manchester

Business School, University of Manchester, Manchester, UK

Article explains that firstly consumer involvement is being used in the field of social

psychology and believed to be the relation between ego and object. And the audience response

to persuasive message is based on two things, one is the initial attitude towards the certain topic

and other is the involvement level. There are three types of involvement situational, enduring

and response involvement and these are introduced by Houston and Rothschild, so when these

types are being conceptualized they become stimulus, organism and response. This article alsoexplains the definition of involvement by both of them which is appropriate for the research of

consumer involvement in financial services which explains that involvement is an unobservable

state of motivation, arousal and interest.

This article explains about the consumer involvement level in the different financial services.

And consumer involvement is being checked through two measures PII and CPI. PPI treats

involvement as a unidimensional construct whereas CPI treats involvement as multidimensional

construct and both focus on individual-object involvement. PPI are related to three dimensions

Personal, Physical and Situational and whereas CPI measure five dimensions like Interest,

Pleasure, Sign Value, Importance risk and Risk Probability.

This article explain that firstly six financial services were selected for checking the consumer

involvement but then pretesting was performed to check whether the questions which were

being asked understandable for the respondents or not. After pretesting one thing became clear

that respondents had some problem in giving response to some of the services because some

services were used in the one category like two services in one category so after understanding

the problem then six services were converted into eight services and then consumer

involvement were checked on these eight services and services were, a cheque book, an

overdraft facility, switch services, a cash machine, savings account, investment services and personal loan.

This article explains that in research firstly questionnaire asked about twenty items related to

financial services of PPI and measures those on seven-point semantic differential scale and then

fifteen statements were asked on the format of five points Likert scale of CPI. In research

sample size of 120 people were selected and convenience sampling was used. The response rate




was 51 percent. The findings of the research showed that both the measures had different

involvement level for eight financial services which are being used. The PPI measure indicated

that Cash machine used, mortgage and investment are high involvement services whereas CPI

measure indicated that mortgage, investment and savings account are high involvement

services. In PPI measure savings account, personal loan, a cheque books, overdraft facility and

switch services are the middle range involvement financial services whereas in CPI measure personal loans, overdraft facilities, switch card, cash machine and cheque book usage are in the

middle range of involvement. And between both of these measures PPI proved to be more

reliable as compared to CPI.

In this article findings of the research were recognized that Involvement level for different

financial services were not equal, the scales which were used PPI and CPI focused on the

different dimensions of involvement and at last customized instrument should be develop to

measure the involvement and finally in order to understand the link between consumer

involvement and customer behavior in financial services more research is needed.

.

An Experimental Study on the Relationship between Consumer Involvement

and Advertising Effectiveness

By Shwu-Ing Wu, Department of Business Administration, National Chin-Yi

Institute of Technology, Taiwan

This article explain that the relationship between consumer involvement and Advertising

Effectiveness. Consumer Involvement in product category is proved to be a very important

variable in the designing of advertising strategy and to understand whether consumers have highor low involvement in the product category; there are many scales which are designed to

measure the consumer involvement. But in this research to check the relationship between the

consumer involvement and adverting effectiveness, PII (Personal Involvement Inventory) was

used due to its internal reliability, reliability over time, content validity, criterion-related

validity, and construct validity and also consumers were segmented in various clusters. Another

important thing which is explained it this article the hierarchy which consumer complete before

making a decision which tells that how consumers used advertising in their process of

purchasing. This hierarchy includes unawareness, Awareness, Knowledge, Liking, Preference,

Conviction and Purchase. In other words consumer first think, feel and do and it also tells that

whether there is a difference between various consumer involvement clusters in the advertising

effect hierarchy.

The factors that influence the level of consumer involvement in product, advertising or purchase

and the factors are the characteristics of the individual shoppers, physical characteristics of the

stimulus and purchasing situations. This study also explains the involvement construct, which is

base on the personal and product characteristics. So this article explains the checking of whether




there is a positive relation between the advertising effect hierarchy and involvement and

secondly it explains whether there is positive relation between advertising content and

involvement.

This article explains that perception of the advertising content including plot, slogan,

representative person, product introduction, expression, map and print of the customers aregathers through focus group and also questionnaire of eight parts including demographic, AIO

(Actives, Interests, Opinions), advertising content importance, advertising effect hierarchy and

consumer degree of involvement in a high involvement product, automobile, low involvement

product and shampoo were used and sample size of 500 people were selected to ask about these

dimensions and five points Likert scale was used for AIO under PII measure and random

sampling method was used for this purpose. The response rate was 97.8 percent.

The article explains the findings that the result showed that segment of the market can be

effected by the degree of consumer involvement and the results explains that there is a positive

relationship between the degree of consumer involvement and advertising effect hierarchy andalso it explains that there is a positive relationship between the degree of consumer involvement

and advertising effect if degree of consumer involvement will high the advertising effect will

also high. So all these findings prove that for the advertising strategy the degree of consumer

involvement is the major indication.




Introduction and background of the topic

Consumer Involvement in product is very essential for the company because it will tell them

that how much they show concern while making decision about the product. To check the

behavior of the consumers towards certain product, it is essential to know to that what their

involvement level is whether it is physical or psychological. The involvement level can be

checked through different factors like price, quantity etc.

By checking the different factors, it becomes apparent to understand that which is the single or

many factors which are influencing the buying behavior of the consumers and whether their

involvement level varies or not in different situations. And also it will explain that what are the

interests, need and values of the consumers which attracts consumer towards a certain product.

So one thing become apparent that it is very essential to increase the effectiveness of the

product and by seeing the responses will help in build a close relationship with the consumers.

Involvement in products affects the purchase decision or an essential part of purchase decision.

Purchasing decision regarding certain product will be more sensitive and person will show

much interest in purchasing certain product if the involvement level is high and person will

show less interest and also purchase decision will not be sensitive for the consumer if their

involvement level is low in that product.

Researchers classified Involvement in three parts:

Personal: This includes inherent interest, values or needs of a person that motivate that person

towards any object.

Physical: This includes a certain characteristic of object which brings difference or increase in

the interest.

Situational: This includes something, which bring temporarily increase interest or relevance in

any of the object based upon the situation.

These are the three factors that influence or change the involvement level of the consumer in theany of the product or any of the advertisement.




Problem Statement

What is the consumer involvement level in purchasing of Fast Food products particularly

of KFC?

It will explain that how much consumer involves in the purchasing of Fast Food products that

whether the involvement level is high, medium or low.

Research Question

What are the factors that influence the consumer involvement level in Fast Food products

particularly in KFC products?

Research Objectives

• To know about the demographics of the people

• To know about the frequency of purchasing the Fast Food

• To know about the factors which are affecting consumer involvement

Research Variables

To know about the demographics of the people

• Age

• Income

• Gender

• Area

To know about the frequency of purchasing the Fast Food

• Daily

• Twice a week

• Twice a month

• Once a week

• Once a month

• Occasionally

To know about the factors which are affecting consumer involvement

• Price

• Quantity

• Hygiene Factor

• Ingredients




Research Methodology

D ATA AND D ATA C OLLECTION

• We used primary and secondary data resources for checking the Consumer Involvement

level in purchasing the Fast Food. We draw the sample of 25 and collect the responses

of people who were involved to eat fast food. For this purpose we build a questionnaire

and collect their responses.

• Our basic purpose was to check the consumer involvement level of fast food industry in

Pakistan and focus on four factors like price, quantity, hygiene and ingredients.

• We also read some articles like (consumer involvement in financial services) to better

understand the concept of consumer involvement. It gives us so much help in data

collection. It helps us in making objectives, variables and the factors which is under

research to measure the overall consumer involvement level in fast food industry inPakistan.

M EASUREMENT M ETHODS

• There are several measurement tools that we have use in this project. Our first and most

important tool in our measurement methods is our Questionnaire. We built our

questionnaire by using 5-point likert scale. Then we put all the responses of our selective

sample in SPSS.

•

Through SPSS we take means, sum, quartiles. And for check the significance level of our factors we apply t-test, regression and correlation, factor analysis and corn Bach

alpha to check the overall significance of our sample.

• We also use Microsoft Word and Excel for report righting purpose and use excel for

plotting some table and in making of Gantt chart. We use all these software so we can

represent our analysis through graphs and quantitative data like table and Gantt chart etc.

Gantt Chart completed explains when our project started and ended.

Sampling Plan

Population

All people who eat fast food

Sampling Unit

Our sampling unit included Teenagers, Male and Female those who were involve eating Fast

Food Products particularly of KFC.




Sampling size

We draw a sample of 25 people who used to eat Fast Food products particularly of KFC.

Sampling Method

We used Non Probability Sampling and in that we used Convenience Sampling.

Time Schedule

No TasksJanuary, 2010

13 14 15 16 17 18 19 20

1 Preliminary Investigation

2 Building of Questionnaire

3 Survey

4 Original Proposal

5 Introduction of the industry

6 Introduction of Organization (KFC) 7 Introduction of major competitors

8 Literature Review

9 Data Analysis

10 Report Writing

11 Findings & Recommendations

12 Project Submission

Task 1 & 2

We complete first two tasks on a same day at 13 January. First task was to collect the required

or supportive data, which is also called preliminary investigation, and the second task was

building the questionnaire.

Task 3 & 4

After completing first two tasks third task was, to conduct a survey that we done on 14 th of

January and completed on the same day along with the original proposal.

Task

Task 5, 6 & 7

In the next two days 15th and 16th of January we have done the introduction to the industry,

introduction to the organization and introduction to the competitors.

Task 8

After completing these tasks we have done literature review on 17 th of January and completed it

on the same day.

Task 9 & 10




After literature review the main task was data analysis and report writing that was done on 18 th

of January.

Task 11

On 19the of January we have completed our findings and recommendations.

Task 12We submit our project on 20th of January.

Cost Schedule

Consumer Involvement

Particulars Cost (Rs)

Photocopy 50

Printing 200

Traveling 400

Refreshment 200

Electricity 200

Telephone Expense 300

Total Cost 1350

16



Data Analysis

Involvement Level


Involvement Level

NValid 25

Missing 0Mean 74.1167

Percentiles

25 67.5417

50 75.75

75 80.375

17



• Below 67.54 will be the low Involvement level of the consumers in the Fast Food.

• Between 67.55 to 80.38 will be the middle Involvement level of the consumers in the

Fast Food.

• And above 80.38 will be the high Involvement level of the consumers in the Fast Food.

Involvement Level

Frequency PercentValid

Percent

Cumulative

Percent

Valid

1 6 24 24 24

2 12 48 48 72

3 7 28 28 100

Total 25 100 100

1. Shows Low Level of Involvement

2. Shows Middle Level of Involvement

3. Shows High Level of Involvement

There was a sample of 25 and all 25 responded to the questions asked to them. When we see the

involvement level of the people in the Fast Food. There were 6 people those who have low

involvement level in the Fast Food and they are the 24% of the sample size. There were 12

people those who have middle level Involvement Level and they are 48% of the sample which

was of 25 people and at last there were 7 people who have High Involvement Level in the Fast

Food and it is the 28% percent of the sample size. So by seeing all these level of Involvement

we can say that most of the people have middle Involvement level in the Fast Food whenever

they purchased it. So Fast Food is not a high or low involvement product. It lies between middle

of them. Also when we see the Mean of Involvement level of Consumer it also lies between the

middle range of the Involvement Level. So overall Involvement is middle level




Demographics Analysis to Check the Involvement Level

Gender

Gender Involvement LevelGender

Involvement LevelTotal

1 2 3

Male 4 8 6 18

Female 2 4 1 7

Total 6 12 7 25

1. Shows Low Involvement Level

2. Shows Middle Involvement Level

3. Shows High Involvement Level

There were 25 respondents about whom we check the involvement level. Among all

respondents 18 were males and 7 were females. In male four have low involvement in the Fast

Food, eight males have middle involvement level and at last 6 male have high involvement level

in the Fast Food. When we see female side there are 2 females who have low involvement level,

four females have middle involvement level and at last only one has high involvement level.

When we see the overall result it shows that most of the males and females have middle level

involvement level in Fast Food.

Age

Age * Involvement Level

AgeInvolvement Level

Total1 2 3

Up to 20

years3 4 0 7

21-25 years 3 2 6 11

26-30 years 0 4 1 5

31-35 years 0 1 0 1

36-40 years 0 1 0 1

Total 6 12 7 25

1. Shows Low Involvement Level in Price

2. Shows Middle Involvement Level in Price

3. Shows High Involvement Level in Price




When we see the age of the respondents, there were 7 people up to the age of 20, 11 people had

the age between 21-25 years, 5 had the age between 26-30 and 1 respondent each between age

of 31-35 years and 36-40 had the age between 26-30 and 1 respondent each between age of 31-

35 years and 35-40 years.

Up to 20 yearsWhen we see the respondents up to the age of 20, there were 3 people who have low

involvement level in the Fast Food, four people have middle involvement level and there is no

person who has high level of involvement in the age group. So among all the involvement level

most of people up to the age of 20 have middle level involvement level.

Age from 21 to 25

The respondents from 21 to 25 years are 11 and 3 people have low involvement level in the Fast

Food, 2 people have middle involvement level and at last 6 people have high involvement level

and when we see the respondents involvement level in Fast Food, most of the people are highly

involved in the fast food.

Age from 26 to 30

When we see the respondent from the age of 26 to 30, no person has low involvement level, 4

people have middle involvement level and at last only one person has high involvement in the

Fast Food from the age of 26 to 30. And overall result shows that most of the people in age of

this range have middle level of involvement.

Age from 31 to 35

One respondent were from the age of 31 to 35 and the person has middle level of involvementin the Fast Food.

Age from 36 to 40

Again only one respondent was from 36 to 40 years old and he also has middle level of

involvement in the Fast Food.

Household Income

Household Income * Involvement Level

Household Income Involvement Level Total




1 2 3

Up to 10000 1 1 0 2

10001-20000 0 1 0 1

20001-30000 0 1 1 2

30001-40000 0 1 1 2

40001-50000 0 2 2 4

above 50000 5 6 2 13

Total 6 12 6 24

There were 25 people were asked about their income and only didn’t response. 2 people have

income up to 10,000, 1 person have income from 10,001 to 20,000, 2 people have income from

20,001 to 30,000, again 2 people have income of 30,001 to 40,000, 4 people have income of

40,001 to 50,000 and there were 13 people who have income more than 50,000.

Income Up to 10,000

Two respondents have income up to 10,000 and one has low level of involvement in Fast Food,

again one has middle level of Involvement and no one has high level of Involvement in the Fast

Food.

10,001 to 20,000

There was only one respondent who has income from 10,001 to 20,000 and he has middle level

of Involvement in the Fast Food.

20,001 to 30,000

There were two respondents were from the income of 20,001 to 30,000 and no one has low

level of Involvement in the Fast Food, one has middle and one has high level of Involvement in

the Fast Food.

30,001 to 40,000

There were two respondents were from the income of 30,001 to 40,000 and no one has low

level of Involvement in the Fast Food, one has middle and one has high level of Involvement in

the Fast Food.

40,001 to 50,000

There were four respondents from the income of 40,001 to 50,000 and no one has the low level

of involvement in the Fast Food, 2 people have middle level of Involvement in the Fast Food

and also 2 people have high level of Involvement in the Fast Food.




Above 50,000

There were 13 respondents whose income is more than 50,000 and 5 people have low level of

Involvement in the Fast Food, 6 people have middle level of Involvement and 2 person have

high level of Involvement. So most of the people have middle level of Involvement in the Fast

Food whose income is above 50,000.

Frequency of Taking Fast Food

Frequency of Taking Fast Food * Involvement Level

Frequency of Taking

Fast Food

Involvement LevelTotal

1 2 3

Once a Week 0 1 1 2

Twice a Week 5 5 3 13

Once a Month 1 3 1 5

Twice a Month 0 1 0 1

Occasionally 0 2 2 4

Total 6 12 7 25

There were 25 respondents who tell about their frequency of purchasing the Fast Food. 2 people

eat fast food once a week, 13 people eat twice a week, 5 people eat once a month, 1 eats twice a

month and 4 people eat Fast Food Occasionally.

Once a Week

There were two respondents who eat Fast Food once a week and one has middle level of

involvement, one has high level of involvement and no one has low level of involvement in the

Fast Food.

Twice a Week

There were 13 respondents who eat Fast Food Twice a Week and 5 people among those

respondents have low level of Involvement, 5 people have middle level of Involvement and 3

people have high level of Involvement in the Fast Food.

Once a Month

There were 5 respondents who eat Fast Food once a month and 1 person has low level of

Involvement in the Fast Food, 3 people have middle level of Involvement and 1 person has high

level of month. So most of the people have middle level of Involvement in the Fast Food who

eat it once a month.




Twice a Month

There was only one person who eats Fast Food twice a month and he has middle level of

Involvement in the Fast Food.

Occasionally

There were 4 respondents who eat Fast Food occasionally and no one has low level of

Involvement in the Fast Food who eat occasionally, 2 people have middle level of involvement

and 2 have high level of involvement in the Fast Food.

Residence Area

Residential Area * Involvement Level

Residential Area Involvement Level Total1 2 3

Model Town 1 1 1 3

Wapda Town 0 0 1 1

Gulberg 3 1 0 4

Mustafa Town 0 2 1 3

Johar Town 1 3 1 5

DHA 0 3 2 5

Askari 1 0 0 1

Ichara 0 1 0 1Punjab Society 0 1 0 1

GOR 0 0 1 1

Total 6 12 7 25

The respondents from whom we collect are belong to the 10 different places of Lahore, 3

respondents each were from Model Town and Mustafa Town, 1 respondent each from GOR,

Punjab Society, Ichara, Askari View and Wapda Town, 4 respondents were from Gulberg and 5

respondents each from DHA and Johar Town.

Model Town

There were three respondents from Model Town, one has low involvement level in Fast Food,

one has middle involvement level in Fast Food and at last again one has high involvement in

Fast Food. So we can say that people of Model town has mix sort of Involvement in Fast Food.

Wapda Town




Only respondents was from Wapda town and he has high Involvement Level in Fast Food

Gulberg

There were four respondents were from Gulberg and 3 people have low involvement level, one

has middle level of Involvement in Fast Food and at last no one has high involvement level in

fast Food in Gulberg. So most of the people in Gulberg have low level of Involvement in fastFood.

Mustafa Town

Three respondents were from Mustafa Town and no one has low level of involvement in Fast

Food, 2 people have middle level of involvement and only one person has high level of

involvement in the Fast Food. So most of the people in Mustafa Town have middle level of

Involvement.

Johar Town

There were five respondents were from Johar Town and 1 person has low level of involvementin the fast Food, 3 people have middle level of involvement and at last one person has high level

of involvement in the Fast Food. So most of the people in Johar Town has middle level of

Involvement.

DHA

There were five respondents were from DHA and no one has low level of involvement in Fast

Food in DHA, 3 people have middle level of Involvement in the Fast Food and at last 2 people

have high level of Involvement in Fast Food in DHA. So most of the people in DHA have

middle level of Involvement.

Askari

There was only one respondent from Askari View and he has low level of Involvement in the

Fast Food.

Ichara

There was one respondent from Ichara and he has middle level of Involvement in the fast Food.

Punjab Society

There was one respondent from the Punjab Society and he also has middle level of Involvement

in the Fast Food.

GOR




There was only respondent from GOR as well and he has high level of Involvement in the Fast

Food

Factor Analysis

Factor Analysis

FactorsComponent

1 2

Price Involvement 0.617 -0.64

Hygienic Involvement 0.827 0.227

Quantity Involvement 0.768 -0.237

Ingredients Involvement 0.492 0.791

The Factors which are most important among all the factors are two out of four factors, people

who used fast food gives important to Hygienic Factor of the Fast Food that they want Fast

Food to be clean enough to eat. The Second most important factor for the consumers isIngredients of the Fast Food. They show much concerned about the Ingredients of the Fast

Food.

So the most Important Factors are:

1. Hygienic Factor

2. Ingredients

Factor Analysis

FactorsComponent

1 2 3 4 5

How much consumer has concerned

in Fast Food0.349 0.105 0.813 -0.308 0.238

How much beneficial Fast Food is for

the consumer 0.834 -0.062 -0.387 -0.056 0.125

How boring Fast Food is for the

consumer 0.475 0.408 -0.203 0.61 0.166

To what extent Fast Food is exiting

for the consumer 0.685 0.441 0.145 0.229 -0.443

How much consumer desire aboutthe Fast Food

0.582 0.612 -0.154 -0.231 -0.283

There are five factors which are most important for the consumer regarding the Fast

Food.

1. The first most important factor for the consumer is that they want that Fast Food should

be a Beneficial Food for them or they are much concerned in the Benefits of the Fast

Food or it is a beneficial food.




2. The second most important for the consumer is that they have a desire for the Fast Food.

3. The third most important Factor for the consumer is that they are concerned about the

Fast Food or they have concern in the Fast Food.

4. The boring or fascinating factor is the fourth most important factor for the consumers.

5. The last most important factor for the consumers is that they want fast Food to be

Exciting Factor for them or they are much excited about the Fast Food.

Regression Analysis

Regression equation

Y = α + β X

Hypothesis

Ho = β = There is no significant relationship between the dependant and independent

H1= β There is a significant relationship between the dependant and independent variable

Age

From the result we find that this model is very weak because R square shows a very small

value, which is 0.097, which is 9.7%. So the model we built is very weak.

Coefficients

ModelUnstandardized Coefficients

Standardize

d

CoefficientsSig.

B Std. Error Beta

1(Constant) 68.655 3.844 0

Age 2.576 1.642 0.311 0.13

Ho: β = 0 (There is no significant relationship between the Involvement Level and Age)


Model SummaryModel R

R

Square

Adjusted R

Square

Std. Error of

the Estimate

1 0.311 0.097 0.057 8.15004

26



H1: β ≠ 0 (There is a significant relationship between the Involvement Level and Age)

Level of Significance = 0.05

We perform regression analysis on Age and Involvement level of the consumer. We take Age asIndependent Variable so it is constant and Involvement Level as Dependent variable. When we

see significant value it is 0.130 so it shows that there is no dependency in Age and Involvement

level or we can say that both are independent.

Gender

Model Summary

Model R R SquareAdjusted R

Square

Std. Error of

the

Estimate1 .227a 0.052 0.01 8.35081

The model which we have made is very weak which is clear from the R square value which

was very low.

Coefficients

ModelUnstandardized Coefficients

Standardize

d

CoefficientsSig.

B Std. Error Beta

1(Constant) 79.446 5.046 0

Gender -4.163 3.72 -0.227 0.275

Ho: β =0 (There is no significant relationship between the Involvement Level and Gender)

H1: β ≠ 0 (There is a significant relationship between the Involvement Level and Gender)


We Perform Regression Analysis to check whether Gender and Involvement have some relation

or not. We came to know after the analysis that the significance value is 0.275 which is more

than the allowable error which was 0.05. So we do not reject H0 and which proved that there is

no dependency between Gender and Involvement Level and both are independent.

Household Income




Model Summary

Model R R Square

Adjusted R

Square

Std. Error of

the

Estimate

1.004a 0.000 -0.045 8.39451

The model we built was very weak because its R square was very low which almost 0.

Coefficients

Model

Unstandardized

Coefficients

Standardized

CoefficientsSig.

BStd.

Error Beta

1

(Constant) 73.732 5.379 0

Household

Income-0.021 1.055 -0.004 0.985

Ho: β = 0 (There is no significant relationship between the Involvement Level and

Household Income)

H1: β is not equal to 0 (There is a significant relationship between the Involvement Level

and Household Income)


We perform Regression Analysis to check whether Involvement Level is dependent on the

household Income or not. So we take Household Income as Independent variable andInvolvement level as Dependent Variable. The findings shows that the significance value is far

more than the allowable error which was 0.05 so we will not reject Ho which means that there

no dependency in household Income and Involvement Level or Involvement level is not

dependent on the Household Income.

Frequency of Purchasing Fast Food

Model SummaryModel R R Square

Adjusted R

Square

Std. Error of

the Estimate

1 .034a 0.001 -0.042 8.57013

We came to know the model we made was very weak which can be seen from R Square that the

value is 0.001, which is very low.




Coefficients

Model

Unstandardized

Coefficients

Standardized

Coefficients Sig.

B Std. Error Beta

1

(Constant) 73.241 5.568 0

Frequency of Taking Fast Food

0.238 1.44 0.034 0.87


Frequency of Purchasing Fast Food)


and Frequency of Purchasing Fast Food)


We perform the regression analysis to check whether there relationship between the Frequency

to Purchase and Involvement Level. We take Involvement Level as dependent variable and

Frequency to Purchase as Independent Variable. The Finding shows that the significance value

0.870 is far high than the allowable error, which was 0.05. So we will not reject Ho and which

will prove that there is no relationship between Frequency to purchase and Involvement Level

and Involvement Level is not dependent on the Frequency of Purchase.

Residential Area

Model Summary

Model R R Square Adjusted R Square

Std. Error of

the

Estimate

1 0.204 0.042 0 8.39534

This model is also a weak model that is apparent from the R Square Value, which is very low.

Coefficients

ModelUnstandardized

CoefficientsStandardizedCoefficients Sig.

B Std. Error Beta

1(Constant) 70.688 3.824 0

Residential Area 0.726 0.728 0.204 0.329


Residential Area)





and Residential Area)


At last we perform regression analysis to check the relationship between Residential Area and

Involvement Level. We take Involvement level as Dependent Variable and Residential Area as

Independent Variable. From the findings we conclude that the Significance value is more than

the allowable error which was 0.05 so we will not reject Ho and which will prove that there is

no significant relationship between Residential Area and Involvement Level and Involvement

Level is not dependant on the Residential Area.

Reliability of the Instrument

Reliability Statistics

Cronbach's

Alpha

N of

Items

0.878 20

The overall reliability of the instrument Questionnaire that we use for the survey to see the

Consumer Involvement Level in the Fast Food is very high which is 87.8 percent. So the

instrument we used is reliable enough for the Research.

Findings

• People have middle level of Involvement in the Fast Food.

• Gender Wise both male and females have middle level of Involvement.

• Age up to 20 years have middle involvement level, 21 to 25 years have high

involvement level, 26 to 30 have middle involvement level, 31 to 35 have middle

involvement level and 36 to 40 years have middle involvement level.

• All the income level people have middle level of Involvement.




• Hygienic Factor and Ingredients of Fast Food are the most important factors.

• Other factors which are most important are benefit, concern about Fast Food,

consumer’s desire, Fast Food a fascinating matter and exciting factor of Fast Food.

• All the demographics age, household income, residential area, gender and frequency of

purchase do not have relationship with Involvement Level.

Recommendations

• When we see the overall Involvement Level of Fast Food it shows that people have

middle level of Involvement, so it is not bad but company has to take further steps or

develop a strategy so that people become highly involved in Fast Food whenever they

purchased.

• When involvement become high in the Fast Food of the consumers than Fast Food

Company has to maintain the standard which will justify their involvement in the Fast

Food.




• As we find that the Hygienic Factor and Ingredients of the Fast Food is important for the

consumer, so company should work more on these factor in order meet the expectations

of the Consumers regarding the Fast Food.

• The other factor we analyze and came to know that five Factors are most important for

the Consumers so company should work on the benefit, concern about Fast Food,

consumers desire, made Fast Food a fascinating matter for the consumer and at last work

on the exciting Factor of Fast Food so that consumers expectations regarding these

factors can be meet.

• As all the demographics do not have relation with the Involvement Level, so company

do not need to work on the different demographics particularly in order to increase or

maintain the involvement level.

References


Documents

Fast Food Industry Complete Analysis