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Introduction:

During previous few years, fast food industry has turned out to be one of the
rapidly mounting service industries in Pakistan. Compared with manufacturing
firms, service marketers face several unique problems in positioning and
promoting their offers. On the other hand, its also more difficult for
consumers to evaluate the quality of services than that of products. Consumers
are unable to compare services side by side as they do with competing
products, and they rely on surrogate cues to evaluate service quality
(Schiiffman). So, it is very much important for companies to know the
perceptions of their customers about the product (service) because its not
enough to make an excellent product (service) rather, for customers to be
satisfied or delighted; they must perceive that the product (service) is
excellent. (Churchill)

This research is done to investigate the customers perceptions (beliefs) about
Kentucky Fried Chicken (KFC) and McDonalds (two fast food chains) on some
attributes like: locations, prices, range of meals, cleanliness etc. According to
Al Goldsmith, vice president of Maritz Virtual Customers division, fast food
industry has many measurable attributes that other service industries just
dont have.

Literature Review:
What is Perception?: Perception is a process by which an individual selects,
organizes, and interprets stimuli into meaningful and coherent picture of the
world. Like how we see the world around us. Perception is the result of two
kinds of inputs; physical stimuli from the outside environment and by
individuals themselves in the form of predisposition (expectations, motives and
learning). (Schiiffman) One reason that consumer respond differently to the
same external forces is that they perceive those factors differently. (Churchill).
Perceptions about a product (service) could lead towards the behavior of the
consumers as well as their rating of the product (service) among other products
(services) of the same category.

What is Attitude?: An attitude is the combination of a persons beliefs about
and evaluations of something, leading to a tendency to act in a particular way.
Attitudes always contain a behavioral component the tendency to act.
(Churchill)

What is Belief?: A belief is the probability a person attaches to a given piece of
knowledge being true. (Loudon, Bitta). Sometimes research of consumers
behavior emphasizes only one component of attitudes beliefs, or a persons
views about various subjects. (Churchill, Peter)

In recent years, both theories and empirical data have been developed to
suggest that, under certain circumstances, behavior can lead to the formation
of attitude and to attitude change. A study of the attitude-behavior
relationship by Day and Deutscher suggests that the source of an attitude may
have important implications for the strength of the attitude-behavior
relationship. (Hortan)



Research Question:
How consumers perceive KFC and McDonalds?

Significance of the Research:
Marketing research can discover latent demand and indicate the ways to
convert it into an effective market. It can direct the producers to produce
marketable goods and provide standards of quality for local and foreign
demand. It can make it possible for the product to be brought to the market
without purchasing power. In the developing countries, this means, in effect, a
twofold benefit for the nation: improved living, by expanding economic
activity, and the creation of small businesses, with the consequent growth of
the middle class, essential for the democratization of the social system.
(Kracmar)

In every developing country, however, marketing is the most underdeveloped
part of the economy, let alone marketing research. The result is the
populations of these countries are unable to make effective use of the little
they have. Progress would take centuries if the developing countries were to
depend on learning through their own experience and evolution. The role of
marketing and marketing research in the developing countries is to act as an
effective tool in helping poor countries to help themselves. (Kracmar)

Pakistan is one of those countries in which marketing research is not awarded
with as much importance as it should be. Specially, the research related to the
aspect that indicating how consumers perceive fast food restaurants is very
rare. So, this research will help national as well as multinational companies in
this industry (new or existing) to understand the specific segments perceptions
about fast food restaurants.

Limitations:
There are certain limitations of our report:
People do not have the serious attitude towards research and also there was
the group influence too among the sample for making choices.
Though our sample was of Punjab University students but even then, most of
them were not familiar with continuum type variables. They were unable to
understand the method of filling the questionnaires.
We had limited time at hand.
We were unable to statistically analyze the data came from our survey. We
couldnt use any statistical method or software to analyze our data. So, we
have analyzed it just as mean values for every variable.

Implications:
The implications of the research are:
As mentioned in report marketing research is not very common in developing
countries, it is true in the case of Pakistan too, so this research about how
people perceive McDonalds and KFC in Pakistan would help marketers
interested in positioning, segmenting and targeting markets for the fast food
restaurants in Pakistan.
The consumers are categorized for their perceptions according to their income
level and geographical location; national companies as well as multinationals
can use this data and would be able to know their segment.
The marketers would be able to know what kind of services, prices, range of
foods, locations, atmosphere etc are perceived ideal for the fast food
consumers between the ages of 18-24 in Pakistan. (by comparing them with
KFCs and McDonalds)

Method of Data Collection:
Sample Plan:
Sampling Unit: Sample unit is of 18 to 24 yrs old Students.

Sample Size: Total questionnaires (semantic differential scale) distributed
were 140. 22 of which has been rejected and finally, our sample size was 118.

Sampling Procedure: Simple Random Sample was picked from University of the
Punjab, New Campus Lahore. Students (from IBIT, IBA, IAS, Mass comm., Eng.,
Psychology etc.) in the sample were belonged to different residential areas,
also having different family income.

Exploratory Research:
A small scale research was conducted to explore the attributes which are
important to customers when they dine at a fast food restaurant. Personal
interviews were conducted from the sample.

From this exploratory research, the following parameters were found:
Locations
Range of Meals
Taste
Fast service
Friendly service
Price
Clean
Atmosphere (overall impression; music, sitting arrangement etc.)
Primary Research:
Research Methodology: Qualitative as well as Quantitative
Data Collection Method: Personal Surveys
Data collection instrument:
Semantic Differential Scale that consisted of a series of bipolar adjectives that
are anchored at the ends of a five-point continuum. The scale is used to rate
each attribute for both KFC and McDonalds in which 1 is towards best side of
the attributes and 5 is towards worst side. Like: for Taste, 1 is for Excellent
Taste and 5 is for Poor Taste. (Scale is attached at the end of the report).

Analysis of Data:
Mean values were used to analyze the obtained data and then graphic
consumer profiles are also developed to view the results.
Whole Sample:
Mean values of whole sample describe the overall beliefs of sample i.e.
collective perception of the whole sample. As it can be viewed from the survey
result (on the back), McDonalds is rated higher for the attributes: Location,
Range of Meals and Fast Service. On the other hand, KFC is rated higher for the
attributes: Taste and Cleanliness. Whereas for the attributes Friendly Service,
Prices and Atmosphere, both are rated equal. One thing is very delighting for
KFC, its satisfaction level and in meeting expectations of customers is rated
higher than that of McDonalds.

Segments:
After analyzing whole samples data, sample is divided into two types of
segments. Geographic Segment (Residential Area Vise) and Income Segment
(Family Income Vise)
Geographic Segment:
The whole Lahore is divided into four sets (the map is on the following page):
SET 1 is Rewaz Garden, Samanabad, Gulshan Ravi Chuburji etc.
SET 2 is Baghbanpura, Mughalpura, UET, etc.
SET 3 is Wapda Town, Township, Faisal Town, Johar Town etc.
SET 4 is Gulberg, Cantt, Defence, Cavalry etc.
Geographic segments can be more clearly viewed in the Lahores map (on the
next page)
Income Segment:
This sample is divided into Family Income Groups.
Less than 20,000 rupees per month
20,000 to 50,000 rupees per month
50,000 to 80,000 rupees per month
More than 80,000 rupees per month

The results from all the segments can be viewed in terms of mean values as
well as graphic profiles.