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DETERMINANTS OF CONSUMER BEHAVIOUR IN FAST FOOD RESTAURANTS IN

MALAYSIA

CHAPTER 1

INTRODUCTION

1.0 Introduction

Globally, fast food generates revenue over $570 billion (author, year). It is bigger

than the economic value of most countries. There are over 200, 000 fast food

restaurants in the United States. It is /estimated that50 million Americans eat at

one of them every single day. In the United States, there are fast food restaurants

available in every exit on the highway and rest stop, as well as in Malaysia. There

also fast food restaurants in the food court mall, on the commercial trips on the

outskirts of town, cities and at the airports in Malaysia.

Current trends of in Malaysia involve increasing proportion of urban population

through rural-urban migration, immigration, formation of new townships and

expansion of urban boundaries or counter-urbanization. Urbanization has

generated changing urban environment, especially in big cities and new

townships. It is to cater the increasing demand by urban population for

employment, transportation, social services, residential units, and others. Closely,

food as the basic need for human survival is also affected likewise. Increasing

demand for food is not only parallel with the increasing urban population. It is

involve changing eating behavior and the urban landscape. Hence, eating- out has

become a culture even though traditionally Malaysians like to have home-cooked

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meals. Going along with the times and due to the increasing awareness and

influence of the western culture, there is a great shift in food consumption patterns

among urban Malaysian. Hence, studying this issue in the Malaysian context will

provide deeper insights to the fast food industries and its consumers.

Last few years have seen an absolute explosion of diversity in both restaurant

concepts and menu choices. This evolution reflects an industry that has been

reacting to changing consumer’s tastes as well as entrepreneurs finding niche

opportunities to profit.

The powerful fragmentation of consumers nowadays represent a tendency that

should be taken into consideration in order to identify and improve the quality

dimensions of the products which are important for each category of consumers.

Fast food restaurant is the fastest growing industry in the world and in Malaysia

too. As we can see, every fast food restaurants in Malaysia have their own loyal

customer.

This study was conducted by the researcher to find out the actual factors that

influence consumer’s behavior towards fast food restaurants in Malaysia. It is

because the fast food restaurant mostly has patronage by citizens which are adults

and teenagers. Fast food restaurant is famous because it serves the food very fast,

cheap, and easily replaced homemade food. Besides, people who are usually very

busy working seek for fast food advantageous.

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On the other hand, youngsters are not concerned with food preparation and that is

why they prefer to go out and buy their meals. They usually go to fast food

restaurant, especially students who study away from home. In addition, fast food

restaurants are also their socializing place. Hence a research study will be

conducted to identify the actual factors that affect consumer’s behavior on fast

food restaurants

1.1 Background of the Study

Fast food is a mass produced food that is prepared and served quickly. The food is

typically less nutritionally compared to other foods and dishes. While any meal

with low preparation time can be consider as fast food. Typically, the term refers

to food sold in a restaurant with preheated ingredients, and served to the customer

in a packaged form for take away.

Basically, fast food restaurants are traditionally known by their ability to serve

food via drive through. Their outlet may provide limited seating (John, 1999) .

Fast food restaurants also known as quick service restaurants whereby franchise

operations that are part of restaurant chains (Talwar, Jennifer, 2003). It has

standardized food stuffs shipped to each restaurant from central location. In the

1860s, fast food began with the first fish and chip shops in Britain and drive

through restaurants were first popularized in the 1950s in the United States.

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The traditional family dinner is increasingly being replaced by the consumption of

takeaway. As a result, the time for food preparation getting lower with an average

couple in the United States spending 57 minutes per day on food preparation in

2013 (Jawarowska, Agnieszka, Blackham, Tony, 2013).

The network of fast food restaurants keep expanding throughout the year. It

attract more franchisees to invest and participate in the business chain and thus

encourages the expansion of branches throughout whole Malaysia. It has become

a necessary part in the youth’s lifestyle because they are looking for something

which is convenience, time saving, and relaxing when patronizing food service

outlets (Kueh & Voon, 2007)

According to Nezakati, Kuan and asghari (2011) reveal that they found a growing

demand for fast food in Malaysia. Based on Fast Food Analysis (2017), revenue

over five hundred and seventy billion ($570) of fast food has generated. There are

more two hundred thousand (200 000) fast food restaurants in the United State

(US) and it is estimated that fifty million (50M) Americans eat at one of them

every single day. This industry has become significant contributor to the Malaysia

economy. Base on the statement above, fast food restaurant will continue grows in

Malaysia economy since it is an important service that are needed by all people.

The Star Online reported that franchise sector is expected to contribute RM 26.8

billion to Malasia’s gross domestic product (GDP) in 2015 compared to RM 25.4

billion or 2.6% registered in the previous year.

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Average Annual Growth Rate for 2011-2015 Period.


8

3 Average annual growth


rate for 2011-2015 period.
2

Figure 1.1 Service sector expected to grow at 7.2% annually until 2015
(Source Department of Statistic Malaysia, 2013)

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Manufacturing
,
26.3

Construction, Services, 61.1


2.9
Agriculture,
6.6

Mining, 5.9

Figure 1.2 Share to GDP in 2015


Figure 1.1 & 1.2: Contribution service sector to GDP Malaysia
(Source Department of Statistic Malaysia, 2013)

Figure 1.1 and 1.2 shows a total contribution of the service sector to Gross

Domestic Product (GDP) in Malaysia in 2015. 61.1% are contributed by service.

According to Nebel, Pieroni, and Heinrich (2006), food service is a good

opportunity for local people to earn money either for their general income or side

income. This statement can be supported by using Maslow’s hierarchy concept

regarding human need basically for food and drink to live. So that, whatever

situation happened, food is the important things that customers will seek. Nguyen

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(2014) said that in a global view, restaurant industry can be considered as multi-

trillion dollar industries since the restaurant industries are growing.

The fast food industry is perceived to be an American creation. In Malaysia, the

American franchises have been dominating the fast food industry. Malaysia food

service industry is made up from various types of restaurant such as local food

restaurant and fast food restaurant. This will easily people to choose the preferred

restaurant. Moreover, for fast food restaurant, it offers the full meal with low

price. It includes Kentucky Fried Chicken (KFC), McDonald, A&W, Burger

King, Subway, Starbucks, Dunkin Donuts, Pizza Hut, Domino Pizza, Kenny

Rogers Roasters, Haagen Dazs, Famous Amos, Swensons, Auntie anne’s and the

Outback Steak House. Among the 6000 franchise outlets in Malaysia, foods and

beverages dominate the franchising sector. At present, KFC is the largest foreign

franchise operator in Malaysia. KFC was entered Malaysian market in 1973.

The fast-food industry’s growth has been spurred on by globalization and the

incomes of the wider global population generally increase. Moreover, in the

developing world, more inclusive economic growth has created a new market for

the fast food franchise industry, particularly due to the increased demand for

convenient, quick serving, and ready-made meals (Tabassum & Rahman, 2012).

This research is important to study what is the factors that influence consumers to

patronage fast food restaurants.

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1.2 Problem Statement

There exist many types of research on the general topic of consumer behavior but

the focus is usually directed to the purchase of consumer durables and related

household products. However, with the rapid growth and international expansion

of the fast food industry through franchises, the attention of researcher was

attracted towards consumer behavior in this industry. The critical determinants of

consumer behavior will identify in the literature include health dynamic, choice of

food, and price.

Little information is gained about the considerations that guide the consumer

behavior. An approach to understanding consumer decision making is provided

by the theory of planned behavior (Ajzen, 1991, 2005, 2012). Instead of relying

on the overall evaluation or utility of a product or service, this theory focuses on

the specific interest of consumer behavior. Theory of planned behavior aims to

provide a comprehensive framework for understanding the determinants of

consumer behavior.

The demand of fast food supply increasing especially in a society where

consumers are busy working (Kotler & Armstrong, 2010). Researchers have

shown that most of the working populations are having limited time at home.

Therefore, they are demanding fast food that suits their lifestyle (Shaharudin,

Hassan, Salleh, Ali, Harun, Aziz & Jalil, 2011). This issue of fast food

consumption is one crucial factor consumers to become aware of it. In recent

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years, consumers want healthy food and quality ingredients. As a result, some of

the country’s oldest brand names in fast food are coping with lower sales and

troubling trends.

Consumers continually read stories of dangers that exist in the food due to

additives, improper food preparation, and poor food choices. Additives are used in

processed food to preserve the food to stay fresh. Sometimes, additives are mixed

into food to make it smell, taste, and look more pleasing. The consumer choices

of food and eating based on healthier choices (Namkung & Jang, 2008). Fast food

also high in fat contains that contributing to many health problems such as

obesity, high blood pressure, and diabetes (H. M. Niemeier, H. A. Raynor, M. L.

Rogers, 2016). For example, in Korea, there was a dramatic increase in the

prevalence of obesity throughout the 1990s (Kim et al., 2005), meanwhile during

the same timeframe the popularity of takeaway foods which is fast food also grew

(Park, 2004). New Straits Times, Farezza Hanum Rashid (June 2017), reported

that Malaysia has the dubious honor of having the highest obesity prevalence in

Southeast Asia. This was based on Economist Intelligence Unit’s “Tracking

Obesity in Asian” report, Malaysia, Singapore, Indonesia, Thailand, Philippines,

and Vietnam.

Besides, some of the fast food restaurants fail in the market because of they are

unable to give concern to the kids. Most kids’ meal packaging is colorful with

toys (Bishop & Pete, 1990). There is a number of fast food brands target kids for

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selling their products. However, regularly consuming fattening junk food can be

addictive for children and lead to health issues such as obesity and chronic illness.

According to a study published in “Pediatrics” in 2004 found fast food

consumption in children was linked with many dangerous precursors for obesity.

For instance, McDonalds Happy Meals for children with toys has been under

attack for advertising themselves in such a way they selling toys with fast food

was considered as a healthcare issue to children. Other fast food brands also

advertise in such a way without caring about the health side effects of eating that

food (O’Brien, 2011).

Many Malaysians love sweet tastes and add a considerable amount of sugar to

many popular recipes. As an example, a key factor in the successful introduction

of Starbucks and Dunkin Donuts was the addition of extra amounts of sugar and

condensed milk. According to Mai et al. (2012), health-conscious consumers were

more willing to elaborate on health-related product attributes and emphasized

food naturalness. Cornish (2012) examined the factor behind the consumption of

both nutritionally poor functional. He found that consumers were unable to

distinguish between the two, and believed the health claims of both. The

consumption of nutritionally poor foods could have a negative impact on

consumer well-being, pointing to the necessity of educating consumers about

what constituted a healthy diet, the importance of choosing appropriate sources

for these nutrients to enable them to make healthier dietary choices and the role of

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nutrients as building blocks in healthy diets. Many health campaigns have done in

order to create awareness among citizens. Therefore, the consumers are aware and

concerned about their wellness and are motivated to improve, maintain their

health and quality of life to prevent ill by engaging in healthy behaviors and being

self-conscious regarding health (Newsom, Mcfarland, Kaplan, Huguet, & Zani,

2015)

In other hand, product variety or variety choice of menu also give impact on

consumer’s perception. Increasing product variety might have a strong impact on

operations of fast food restaurants such as increasing manufacturing cost and

complexity. Consumers represent a major demand source for variety with each

individual having different tastes, quality evaluations, or budget (Sharuddin,

Hassan, & Aziz, 2011). Consumers seek product variety because they get bored

with current selections and desire something new (Menon & Kahn, 1995). Larger

assortments lead to stronger preference because more options will allow

consumers to maintain flexibility when making a purchase decision.

In the past, Malaysian preferred A&W and Shakey Pizza. But the trend seems to

have shifted in the last decade, with the success of the Kentucky Fried Chicken,

McDonald's, Domino’s Pizza, and many others franchise restaurants. Many of

these local brands grew to become giant franchises that dominate the Southeast

Asia region. Statistic in Table 1.1 shows the result of a survey conducted by Cint

in the visited fast food restaurants in Malaysia.

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Table 1.1 Most Visited Fat food Restaurants in Malaysia in 2016

Most Visited Fast Food Restaurants in Percentage (%)

Malaysia (2016)

KFC 77.85

McDonalds 75.38

Pizza Hut 49.30

Subway 43.07

Domino’s 38.95

Secret Recipe 36.69

Kenny Rogers Roasters 26.83

Nando’s 26.10

A&W Restaurants 23.78

The Chicken Rice Shop 23.53

(Source: Kate Taylor in Business Insider US, 2017)

KFC is a fast food restaurant that specializes in fried chicken. Because of a rise of

health-conscious among consumers, KFC has moved into offering healthier

alternatives such as grilled chicken. Because of this, KFC offers many classic

chicken meals such as Doublicious, Colonel’s Classic, Chicken Littles, and

Family Meals that include a mix variety chicken wings and drumsticks. This can

show that the reason why KFC still survive and being the famous fried chicken

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that everyone loves until now compare to other fast food restaurants such as

Kenny Rogers Roasters and A&W Restaurants.

Other than that, consumers always assume that fast food restaurant offers high

price for their products and services compared to other local food. Moreover, for

the youngster like university students, they have limited money to spend on

luxury food (Bjorn Frank, 2012). So that, they are doubtful to dine in the fast food

restaurant. Fast food restaurants should try to reduce their operation cost, so that

product price also can be reducing (Matthew, 2014). Just like McDonald's, it

offers simple menu and implementing self-serve ordering. So that it can lower its

prices.

For many years, the relationship between poverty and obesity has been linked in

part to the abundance of fast food in low-income areas besides the choice of menu

that influence consumer behavior towards fast food consumption. Through doing

and learning, consumers acquire beliefs and attitudes, and it will influence their

buying behavior (Kotler & Armstrong, 2010). In choosing food, consumers seek

beyond than the physical product alone. Normally, the customers will form their

own value and expectations on the various offerings (Kotler & Armstrong, 2010).

They have high expectation and demand from the food supply. Consumers are

demanding for varieties of food, quality, nutritiousness safe foods and at the

reasonable cost. Restaurant operators fear about the growing customer’s

expectations in the next year ahead.

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Therefore, this research is important to help the manager to reduce the chances of

failure in the food service business by looking the attributes that customers

looking. Customers have their own reasons to revisit any restaurant. So that,

managers of the restaurants need to improve their performance along the time in

order to compete with their competitors in this world, more over for Malaysia fast

food restaurants.

1.3 Research Objectives

The purpose of this study is to identify the factors that influence consumer

behaviour towards fast food restaurants. More specifically, the objective of the

study:

1.3.1 To determine the relationship between health dynamic and consumer

behaviour.

1.3.2 To determine the relationship between variety choice of menu and consumer

behaviour.

1.3.3 To determine the relationship between price and consumer behaviour.

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1.4 Research Questions

To accomplish the research objectives, several research questions were design:

1.4.1 Does health dynamic of fast food restaurants influence consumer behaviour?

1.4.2 Does variety choice of menu of fast food restaurants influence consumer

behaviour?

1.4.3 Does price of fast food restaurants influence consumer behaviour?

1.5 Significance of the Study

1.5.1 To the researcher

This study can provide more understanding on how an attributes in a restaurant

and customer’s life can influence consumer’s behaviour to purchase the products

and dine at the fast food restaurants. This study also helps researcher to gain

knowledge on the reason behind the pack patronize in fast food restaurants which

is before this become a question in researcher’s mind. Knowing consumer’s

behaviour may help the researcher when want to open a business later. Means that

by using this study, researcher might know how to attract and fulfil customer’s

needs and wants.

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1.5.2 To the fast food restaurant operator, employees, and staffs

It is important to the restaurateurs to know their customer behaviour towards their

business either for the products or the services. By knowing the consumer’s

behaviour, it can help the restaurant to get more understanding about their

business in term of their strength and weaknesses of the restaurant in customer

perspective. Restaurant manager can improve their weaknesses to achieve

customer satisfaction by understanding their behaviour so that customer will still

loyal to the company. Besides, by knowing customer’s behaviour, it can help to

increase restaurant abilities to retain existing customers. Fast food restaurants can

retain their existing customers by understanding their attitude and behaviour when

they purchase the products. The high level of customers understanding can lead to

high level of products purchase. Sometimes, when comes to the fast food menu,

customers take time to choose their meal. So, as a good staff of fast food

restaurants, the staff may help their customer to choose the meal and have to take

a serious when explaining the menu. The fast food restaurants also can be free

rider in marketing when the customers promote the business to their family

members and friends, which is word of mouth marketing.

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1.5.3 To the competitors

This study might contribute some advantage to the competitors of fast food

restaurants such as grocery shop and local restaurants. Whereby, they can know

the most influential factors that influence consumer’s behaviour towards fast food

restaurants. Competitors will try to develop strategies and compete with fast foods

restaurants. For example, competitor might use the same pricing strategy and

improve their service quality.

1.6 Scope of the Study

The purpose of this study is to examine the determinants of consumer behaviour

for fast food restaurants. Subject matter for this study is consumer behaviour. The

aspect looked into were the health dynamic, the variety menu in fast food

restaurants, and price of fast foods. The data were gathered using questionnaire.

Respondent in this study were selected among Malaysian citizens who eat at fast

food restaurants. Period for this study was during August 2017 until December

2017.

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1.7 Limitations of the Study

1.7.1 Factors influence consumer’s behaviour

There might be some other relevant factors which significantly influence

consumer’s behaviour towards fast food restaurants. However, the discussions on

the other relevant factors are not more than the scope of this study. Factors that

influence consumer’s behaviour towards fast food restaurants are still under

control which subject to modification through more study.

1.7.2 Lack of sources

Lack of sources is another limitation for this study. It is mean the sources of data

that researcher needs to conduct this study are limited. There only few researchers

that did research on consumer’s behaviour towards fast food restaurants. Since the

sources are lacks, researcher adopt the factors from other study, then modified it

to fit the topic discussed in this study.

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1.8 Definition of Terms

1.8.1 Consumer behaviour

Consumer buying behaviour is considered to be an inseparable part of marketing.

According to Kotler and Keller (2011), consumer buying behaviour is the study of

the ways of buying and disposing of goods, services, ideas or experiences by the

individuals, groups, and organizations in order to satisfy their needs and wants.

Holbrook (1987) explained that consumer behavior research seeks to produce

knowledge about consumer behavior, and more specifically about the consumer’s

consumption.

1.8.2 Health Dynamic

According to Narrendra S khaira (2015), health dynamic is to know what are the

healthy and unhealthy practices and to avoid unhealthy practices that adversely

effects health. The proposed definitions make it empirically possible to diagnose

persons as healthy or diseased and to apportion some of the responsibility for their

state of health to individuals themselves.

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1.8.3 Variety Choice of Menu

According to Gernet, Jacques (1962), menus is a list of prepared foods. Menu is

a list of foods served that can be ordered in a restaurant. In the larger populated

cities, merchants found a way to cater to busy customers who had little time or

energy to prepare food during the evening. In a restaurant, a menu is a list of food

and beverage offered to their customer.

1.7.4 Price

According to Schindler, Robert M (2012), price is the quantity of payment or

compensation given by one party to another in return for goods or services. Price

to be paid determines the level of quality to be demanded. For company

perception, price is value that they will get when they give their service or product

to the customer.

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CHAPTER 2

LITERATURE REVIEW

2.0 Introduction

Literature review is the notation and quotation of references such as journal,

theses, magazines, newspaper, or books. This section is aims to discuss on the

previous studies related to the research which are supporting the whole study.

2.1 Literature Review on Dependent Variable

Dependent variable of this study is consumer behavior on fast food restaurants.

Therefore, the literature review will explained as below.

2.1.1 Consumer Behavior

According to Ajzen’s Theory of Planned Behaviour, behavior can be explained

through intention. These intentions are being determined by attitudes toward the

behavior, social or subjective norms and perceived behavioral control (AJ Zens,

1985).Consumer behavior is a study on the way how individuals, groups, or

organization choose, buy used, and dispose of the goods and the factors such as

their previous experience, taste, price, and branding on which the consumers base

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their purchasing decision (Kotler and Keller, 2012). Consumer behavior is the

study of how people buy, what they buy, when they buy and why they buy

(Kotler, 1994). Consumer behavior involves the study of individuals and the

method they employ to choose, utilize, and set out products and services to fulfill

their wants and the effect that these methods have on the consumer and the

society as a whole (Manali Khaniwale, 2015). Consumer behavior such as

consumers’ cognition, affection and behavioral reactions in the fast food industry

is one of the interesting topics in this competitive marketing arena (Brüggen,

Foubert, and Gremler, 2011)

The Importance of understanding consumer buying behavior and the ways how

the customers choose their products and services can be very important for

manufacturers, as well as service providers as this, provide them with the

competitive advantage over its competitors in several aspects (Kotler and Keller,

2011). For example, they may use the knowledge obtained through studying the

consumer buying behavior to set their strategies towards offering the right

products and services to the right audience of customers by looking their needs

and wants effectively.

In a business, to be the win is the business manager needs to know about their

customer’s needs and wants by the study on their behavior when purchasing

goods or services. Different theories and researchers have claimed that when

organizations fully meet the aspects of its customer needs, the result enhances

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their profitability (Chaudhuri, 2006). The essence of this approach is critical for

organization success to have a better understanding of their customer behaviors

(Solomon et al., 2006).

Marketers can directly measure physical action or behavior of the consumer and

their buying decision every day (Papanastassiu and Rouhani, 2006). For that

reason, many organizations are spending a lot of their resources to research how

the consumer makes their buying decision, what they buy, how much they buy,

when and where they buy (Kotler and Amstrong, 2001). To get a good result,

organizations normally looked at this behavior based on their analysis of

difference conceptions, such as whether customers buying behavior were

measured from different perspectives. For example, product quality and better

service, lower price structure, and others (Papanastassiu and Rouhani, 2006). The

field of consumer behavior has taken a tremendous turn in the commercial world

and became the fundamental concepts of achieving company goals (Schiffman

and Kanuk, 2007).

Study of consumer’s behavior helps marketer or sales person to achieve the

purpose of satisfying consumer’s demands. As consumers are the most important

person for marketer or salesperson, therefore, it is important for them what

consumers like or dislikes, so that they can provide them with the goods and

services (Solomon, 2009). In another hand, Professor Theodore Levitt says that

behavior importance to marketers in business studies as the main aim is to create

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and retain existing customers (Kumar, 2004). If customers satisfied with the

products or services, they will repeat purchase.

As we know, the service industry is an intangible product which is produced and

consumed at the same time, so producer need to produce the best service to

customers because consumer’s behavior depends on their experience too. In a

service industry, feelings, attitudes, expecations, and perceptions of customers

are important since services are tangible products (Dogdubay and Avcikur, 2008).

Many types of research have been done to measure the factors that influence

consumer’s behavior. This study focuses on fast food restaurants, which is foods

and restaurants industry. A study was done by Mason, Jones, Benefield, and

Walton (2013) investigated the consumer perception of fast food restaurants in

America incorporating several explanatory variables such as food price, service

speed, the location of the restaurant, quality of food, cleanliness, menu variety,

and quantity of food. Brady al et., (2001) argued that food price will influence

consumers behavior towards fast food restaurants. Based on the previous studies,

many factors that a restaurant need to managed well to make build a positive

attitudes or behavior toward the fast food restaurants. Generally, the business

aims to meet customer’s satisfaction by understanding their behavior.

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2.2 Literature Review on Independent Variables

The independent variables of this study are health dynamic, variety choice of

menu, and price. The literature review of this three variables will explained as

below.

2.2.1 Health Dynamic

Consumer awareness of food safety and nutrition is a major issue in relation to

healthy lifestyles and disease prevention. Health is the level of functional and

metabolic efficiency of a human. It is the ability of individuals or communities to

adapt and self-manage when facing physical, mental, psychological and social

changes with the environment (Huber M, Knottnerus JA, Green L., van der Horst

H, Jadad AR, Kromhout D, Smid H, 2011).

Researchers and health professionals have long been aware of the consequences

associated with eating fast food, but until now no one realized how quickly the

damage begins (Kristin Kirkpatrick, R.D, 2012). A study published in the

Canadian Journal of Cardiology indicates that damage to the arteries occurs

almost immediately after just one type of meal. A hypothesis that breast cancer

risk was related to fast food and sugary drinks (Chandran, 2014). During

adolescent years, young consumers need to have nutritional awareness and fast

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food preferences (Brown et al., 2000). The result of this study shows a positive

relationship between fast food intake and breast cancer.

Foods purchased from fast-food outlets, restaurants, and other places are

becoming an increasingly important part of people's diet, particularly in the US

(Nielsen SJ, Siega-Riz AM, Popkin BM, 2002). Such foods are up to 65% more

energy dense than the average diet, and intakes of selected nutrients are lower in

the population groups who consume more of them (Burns C, Jackson M, Gibbons

C, Stoney RM, 2002). Those consuming these foods tend to be heavier than those

who do not, even after controlling for a range of socio-demographic variables

(Binkley JK, Eales J, Jekanowski M, 2000). It has been suggested that fast-food

outlets are more prevalent in poorer areas (Swinburn B, Caterson I, Seidall J,

James W., 2004). This might help to explain higher rates of obesity in these

neighborhoods.

As health awareness increase, consumers seek healthier foods and food source.

Some people choose not to consume fast food because it is widely known for its

unhealthy effect and many parents are trying to constrict fast-food consumption of

their children. A study was conducted to find out whether adult family members

had an influence on their children’s fast-food consumption. The result was found

that family members who consider their children to be more susceptible to

childhood obesity are more likely to limit their children’s fast food consumption

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and adult family members who view seriously their children’s childhood obesity

are more likely to limit their children’s fast-food consumption.

Hence, H1: There is significant relationship between health dynamic and

consumer behaviour.

2.2.2 Variety Choice of Menu

Menu is defined as a list of dishes available in a restaurant (Gernet, Jacques,

1962). The menu is a list of food and beverage ready to purchase (Labersky et al.,

2001). The menu is a way of positioning and a marketing plan for the restaurant

operation (Shock, Bowen, and Stefanelli, 2004). The menu is a base on which the

customers make their food choices and a well-designed menu can direct

customers' attention to the items the firm wants to sell more (Antun and

Gustafson, 2005). Menu choice understanding consumer’s decision-making

process is critical to successful marketing and product development (Sirakaya,

Sheppard, and Mclellan, 1997).

Research have been done on menu related topics, such as menu engineering,

which was described as menu planning and development (Kwong, 2005,

Morrison, 1996), menu layout and design (Kincaid & Corson, 2003; Reynolds,

Merrit& Pinckney, 2005) and menu content and variability (Antun& Gustafson,

2005; Bernstein et al., 2008; Ravneberg, 2006). A study found that consumers

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prefer the selection of services or goods (Kahn, 1995). The researcher concluded

that consumers seek variety because either they have been having too much with

the familiar food or they are willing to try new things.

External situations such as time considerations, seasonality, and promotion

available may also cause the change in consumer choices. Three constructs to

explain the experience seeking behavior are cognition seeking, sensation seeking,

and novelty seeking (Hirschman, 1984). In particular, the researcher defined

novelty seeking as a willingness to try new things, which would imply the

consumer choice. However, consumers may select a familiar food entry in order

to reduce potential risk when eating that food. This tendency is defined as inertia

(Bawa, 1990).

The critical qualifications attributed to menu describe its importance to fast food

restaurant operations and customer experiences. The menu is a list or a card which

documents the food and beverage options being offered by a restaurant. It also

differs from the main product of a restaurant. The prior research claimed that the

primary product of restaurants is meal experience and it is constituted by many

components such as food and beverages, atmosphere, social factors and

management (Johns and Kivela, 2001; Gustafsson, 2004; Hansen et al., 2005).

What customers receive from consumption in restaurants is their memories and

overall perceptions of meal experience, and a menu is part of that experience and

related to customers' perceptions. Consequently, a menu cannot be considered as

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the overall product of a fast food restaurant but it is an important component

complementing atmosphere, interactions with servers and other customers, and

managerial systems which are jointly available in a restaurant where a good,

memorable meal experience is the main product.

Hence H2: There is significant relationship between variety choice of menu and

consumer behaviour.

2.2.3 Price

Basically, the price is the quantity of payment or compensation given by one party

to another in return for goods or services (Schindler, Robert M., 2012). Some

researchers determine price as price fairness which means the finding of whether

a product and process to get the products is acceptable (Bolton and

Shankar,2003). Price is the amount customers need to pay for any products or

services purchased. Company price is the value that company will get in return to

what they have provided to the customer (Irfan, Raja, Naeem, Abbas, and Asad,

2014).

Price is the one element of the marketing mix that produces revenue and the other

elements produce costs (Kotler and Keller, 2012). They also stated that how

consumers perceive prices and what they consider the current actual price to be

influenced purchase decisions. An important marketing priority is understanding

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how consumers arrive at their perceptions of prices. Usually, customers will

consciousness, especially about service. This is because service is an intangible

product whereby there cannot see or touch physically. Price normally becomes a

factor that influences consumers to buy any products or services. The price of a

product or service is one of the most important decision variables for both the

consumer and seller. Competitive conditions in the marketplace have made the

price more important to differentiating factor in formulating marketing and

business strategies.

According to Monroe (2003), the price has increasingly become a focal point in

consumer’s judgments of offer value as well as their overall assessments of the

seller. Price plays a role as an attribute of product performance as it can affect

customer behavioral (Clemes et al., 2010). Restaurants manager should setting

price according to what level of quality that they can provide so that customer can

get the values of what they expect. If the price in the restaurant is high, then the

customers will expect for high values in return.

A study that made by Skindaras (2009) found that there are many merchandises

on this earth possessing different price ranges low, moderate, or high. The

restaurant should setting price based on what level of quality that they can provide

so that customer will get the value as they expected. Another study by Moore and

Carpenter (2006) found that there is a significant relationship between price and

patronage behavior and supported by Yavas (2003).

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Price, quality, quick service, and environment were factors proposed as

determinants of consumer attitude towards selective fast food restaurants

(Tabassum and Rahman, 2012). Customers also visit restaurants because of the

price that they are paying is value for money instead of only good service,

environment, quality service and food (Yuksel and Yuksel, 2002). They continued

that value may have independent interpretation to a different person such as

consumers gets for the price in exchange of quality, any value-added consumers

demands in goods or services, low price and value that represents consumers

obtain for what they have sacrificed. Low price may generate sales increases and

store traffic which resulted either from price promotions or general price levels

(Pan and Zinkhan, 2006).

Hence, H3: There is significant relationship between price and consumer

behaviour.

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2.3 Hypothesis

Based on the research questions, there are three hypotheses that can be developed

which are:

2.3.1 The relationship between health dynamic and consumer behaviour

H0: There is no significant relationship between health dynamic and consumer

behaviour.

H1: There is significant relationship between health dynamic and consumer

behaviour.

2.3.2 The relationship between variety choice of menu and consumer behaviour

H0: There is no significant relationship between variety choice of menu and

consumer behaviour.

H1: There is significant relationship between variety choice of menu and

consumer behaviour.

2.3.3 The relationship between price and consumer behaviour

H0: There is no significant relationship between price in fast food restaurants and

consumer behaviour.

H1: There is significant relationship between price in fast food restaurants and

consumer behaviour.

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2.4 Theoretical Framework

A theoretical framework represents the beliefs on how certain phenomena is

related to each other an explanation on why the beliefs of these variables are

relate to each other. Hypothesis can be developed to test whether the theory is

valid or not by theoretical framework (Sekaran, 2013). Figure 2.1 show the

theoretical framework of this study.

Health H1
Dynamic

H2
Variety Choice Consumer
of Menu Behavior

H3
Price

Figure 2.1 Theoretical framework of factors that influencing


consumer behaviour towards fast food restaurants.

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Figure 2.1 Theoretical framework of factors that influencing consumer behaviour towards fast
food restaurants.

According to Sekaran and Bougie (2013), a theoretical framework represents how

the variables concept are related to each other model and will explained why these

variables concept are related to each other. This framework is constructing to

show the variable that related to this research. Figure 2.4 shows the research was

conducted using a model which stated what it dependent and independent variable

that used in this research. The dependent variable is consumer behaviour and the

independent variables are health dynamic, variety choice of menu, and price. The

independent variables give influences toward the dependent variable either

positive or negative way.

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CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

This section discusses the research methodology. It will include research design,

types of data, sampling design, data collection method, procedures for data

analysis, and hypotheses testing. The main purpose of the research is to

investigate the factors that influence consumer behavior on fast food restaurants

in Malaysia.

3.1 Research Design

According to Sekaran (2013), research design is the blueprint for the collection,

measurement, and analysis of data based on the research question involved in the

study. The purpose of research design is to ensure that the evidence obtained

enables the researcher to effectively address the research problem logically and as

unambiguously as possible. The essentials of action research design follow a

characteristic cycle whereby initially an exploratory stance us adopted. In other

hands, understanding of a problem is developed and plans are made for some

form of an intervention strategy. Then, the intervention is carried out during

which time, pertinent observations are collected in various forms. The new

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interventional strategies are carried out, and this cyclic process repeats, continuing

until a sufficient understanding of the problem is achieved.

3.1.1 Descriptive Research Design

This study will use descriptive research design, whereby, all the data are

determined by using survey method. The objectives of this method are to test the

specific hypotheses and the relationship. The information needed is clearly

defined where the research process is formal and structured. It is easy to use the

design where the sample is large and representative. Meanwhile, the data analysis

is quantitative. Then, the findings will be used in decision making.

3.2 Types of Data

To get the possible solution to the problem, necessary data can be collected and

analyzed. An exploratory study, descriptive study, and causal study are the types

of research design. The exploratory study is experimental research which done

when there is no information available on the similar problem that has been

solved in the past. A descriptive study was designed to describe characteristics of

person or events. Hypotheses testing usually used by the researcher to portray one

or more factor that causing a problem. Besides, it is also to find the relationship

between dependent and independent variable.


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3.2.1 Primary Data

The term primary data is used broadly to represent all sources that are original

(Galvan, J.L., 2013). In this study, the researcher used questionnaire and

distribute to the consumers in fast food restaurants. Sample respondent may

answer the questionnaires based on their experience with the fast food restaurants.

An advantage of using primary data is that researchers are collecting information

for the specific purposes of researcher’s study. In this study, researcher distributes

to the 100 respondent which the consumers of fast food restaurants in Malaysia.

3.2.2 Secondary Sources

Secondary data are data that have already been collected for purposes other than

the problem at hand. These data can be located quickly and inexpensively.

Secondary data help the researcher to identify the problem, better define the

problem, develop an approach to the problem, and other benefits. Secondary data

that has been used by the researcher in this study are internet searches and statistic

from the government department.

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3.3 Population and Sampling Design

Polit and Hungler (2010) refer to the population as an aggregate or overall of all

the objects, subjects or members that conform to a set of specifications. The

population of this research is comprised of residents in Malaysia. It was large

enough because they are many residents live in Malaysia.

According to Naresh K. Malhotra (2010), sampling design specifies for every

possible sample its probability of being drawn. It is a process of selecting the right

individuals, events, or events as the representative of the entire population. There

are two types of sampling design which are probability sampling and non-

probability sampling. Probability sampling consists of simple random sampling

and complex probability sampling. In other hand, the non-probability sampling

which consists of convenience sampling and purposive sampling.

In this study of factors that influencing consumer’s behaviour towards fast food

restaurants, the researcher used convenience sampling which falls under non-

probability sampling. The main reason is information that researcher seek is open

to anyone who conveniently available to provide it. By using this type of

sampling, the data can be collected quickly and efficiently. The population of this

study is citizens who eating fast food in fast food restaurants. 100 people were

drawn from the population in Malaysia to form the samples for this study.

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Table 3.1 Sample Population (Sekaran, 2010)

N S N S N S

10 10 210 136 1000 278

15 14 220 140 1100 285

20 19 230 144 1200 291

25 24 240 148 1300 297

30 28 250 152 1400 302

35 32 260 155 1500 306

40 36 270 159 1600 310

45 40 280 162 1700 313

50 44 290 165 1800 317

55 48 300 169 1900 320

60 52 320 175 2000 322

65 56 340 181 2200 327

70 59 360 186 2400 331

75 63 380 191 2600 335

80 66 400 196 2800 338

85 70 420 201 3000 341

90 73 440 205 3500 346

95 76 460 210 4000 351

100 80 480 214 4500 354

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110 86 500 217 5000 357

120 92 550 226 6000 361

130 97 600 234 7000 364

140 103 650 242 8000 367

150 108 700 248 9000 368

160 113 750 254 10000 370

170 118 800 260 15000 375

180 123 850 265 20000 377

190 127 900 269 40000 380

200 132 950 274 50000 381

3.4 Data Collection Method

For this study, the researcher used questionnaire which is primary data method. It

is the data that is collected directly by first-hand. Researcher distributes the

questionnaire to the customers of fast food restaurant after they finish the meals.

Before distributing the questionnaire, it was checked by Dr. Nik Norhasimah

(advisor) to access the validity of the research instrument. After getting the

approval, the researcher went to the fast food restaurants in Malaysia and

observed for those who have finished their meals. After that, the researcher will

approach them and ask if they have time to answer the questionnaire. If they agree

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to spend their precious time, the researcher will explain the purpose of the survey.

The researcher will collect it back when they complete answering the survey.

3.4.1 Measurement and Scaling

Nominal scale allows the researcher to categorize the subject into a certain group

(Sekaran, 2010). The nominal scale can be defined as something that cannot be

measured. For example, for the frequency such as gender and race. Gender can be

categorized into two, male and female. The race is included Malay, Chinese,

Indian, and others. The researcher also will use the ordinal scale in demographic

section. It is measured according to the section. For example, age can be

measured by the number of respondents which are the teenager, adult, and senior

citizens.

The Likert and interval scale will be used for another section. It is for section B

(health dynamic), section C (variety of menu), and section D (price). Interval

scale performs numerical operation on the data that were collected from

respondents (Sekaran, 2010)

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3.4.2 Questionnaire Design

A questionnaire is characterized by specific objectives (Malhotra, 2010). Means

that questionnaire is known as the interview from which consist set of questions

for obtaining information from respondents.

3.4.2.1 Nominal scale and ordinal scale (section A)

For section A, the researcher will use Closed-Ended question. In section A, the

researcher is focused on demographic factors which is respondent’s background

which consists of gender, age, marital status, employment, frequently visit fast

food restaurant and health status.

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Table 3.2 Demographic Information

No. Items Component Measurement and

scaling

Q1 Gender  Male  Nominal

 Female

Q2 Age  18-24 years old  Ordinal

 25-35 years old

 36-50 years old

 51 years old and

above

Q3 Marital status  Single  Nominal

 Married

Q4 Employment  Student  Nominal

 Employment

 Unemployed

Q5 Frequently visit  Yes  Ordinal

fast food  No

restaurants.

Q6 Health status  Good  Ordinal

 Fair

 Poor

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3.4.2.2 Likert scale questions (section B,C,D,E)

Likert scale question will be asked to evaluate based on subjective or objective

criteria which are starting from the level of agreement and ending with the level

of disagreement. It also is known as bipolar scale method. For this questionnaire,

researcher use 5 Likert scale format which is 5 strongly agree, 4 agree, 3 neutral,

2 disagree, 1 strongly disagrees. The source of the questions shows in table 3.3,

3.4, 3.5, and 3.6.

Table 3.3 Health Dynamic

No. Item Source

Q1 Fast-food is unhealthy. Nutr Res Pract

(2011)

Q2 I am aware of disease that will affect me Nutr Res Pract

from fast-food consumption. (2011)

Q3 Consumption of fast-food causes the heart Nutr Res Pract

attack and obesity. (2011)

Q4 Nutritional information influences my Nutr Res Pract

choice of fast food. (2011)

Q5 I try to avoid fast-food for a healthy diet. Nutr Res Pract

(2011)

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Table 3.4 Variety Choice of Menu

No. Item Source

Q1 Fast food restaurants provides variety of Allie Sommer

food choices in their menu. (2016)

Q2 Most food offered in the menu is available. Allie Sommer

(2016)

Q3 Menu in fast-food restaurants can attract me Allie Sommer

to purchase their product. (2016)

Q4 Menu in fast-food restaurants helps me to Allie Sommer

make a decision to eat. (2016)

Q5 Every food choice in the fast-food Allie Sommer

restaurants menu are tasty. (2016)

Table 3.5 Price

No. Item Source

Q1 Price charge in fast-food restaurants is Bjorn Frank

acceptable. (2012)

Q2 Food price sold are reasonable for the Bjorn Frank

portions served. (2012)

Q3 I think the price of the products and Bjorn Frank

services charges are based on cost. (2012)

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Q4 Most of the food price is affordable. Bjorn Frank

(2012)

Q5 Price in fast-food restaurants are consistent Bjorn Frank

in every outlet in the same country. (2012)

Table 3.6 Consumer Behaviour

No. Consumer Behaviour Source

Q1 I think there is high potential of fast-food Icek Ajzen

restaurants to growth in Malaysia. (2015)

Q2 Fast-food restaurants can compete with Icek Ajzen

others local restaurants. (2015)

Q3 I rather spend my money on fast-food than Icek Ajzen

buying groceries and cooking at home (2015)

Q4 My family/friends and I love to dine in at fast Icek Ajzen

food-restaurants. (2015)

Q5 Fast-food restaurants products are differ from Icek Ajzen

local restaurants products. (2015)

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3.5 Procedures of Data Analysis

After the data has been collected, the researcher needs to analyze the data to test

the hypotheses created for this study. Statistical Package for Social Science

(SPSS) which is a data management and analysis product used to analyze the data

collected from this survey.

3.5.1 Reliability test

Reliability test established by testing both consistency and stability. Consistency

indicates how well the items measuring together as a set. Cronbach’s alpha used

by the researcher to measure how well the items in a set correlated to each other.

If the result of Cronbach’s alpha is near to 1, the internal consistency reliability

will be high. The researcher also can discover which of the items need to be

removed in order to improve the inter-item consistency.

3.5.2 Descriptive statistics

Descriptive statistics are the statistic that quantitatively describes the present

study consist of the max, min, mean, standard deviation, skewness, and kurtosis.

Descriptive analysis can help to summarize the data in meaningful ways. The

purpose of using the descriptive statistic analysis in this study is to understand the

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characteristics of the data. According to Sekaran (2013), max is the maximum

value of the series in the present sample, min is the minimum value of the series

in the current sample, meanwhile where mean give a picture of data without need

devastate one with each observation in a data set.

3.5.3 Correlation test

Correlation test refers to the strength of a relationship between two variables. A

high correlation means that two or more variables have a strong relationship with

each other while a low correlation means that the variable not so related.

3.5.4 Regression model

The regression model is a set of statistical processes. It is used for estimating the

relationships among variables. It includes many techniques for modeling and

analyzing some variables whereby the focus is on the relationship between a

dependent variable and one or more independent variables. The researcher used

this type of analysis to examine the relative importance of price, service quality,

and lifestyle in the forecast of consumer behavior towards fast food restaurants.

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3.5.5 R-Squared

R-squared is a coefficient of determination. It is the proportion of the variance in

the dependent variable that is predictable from the independent variables. In this

study, researcher use r-squared to understand how the typical value of the

dependent variable changes when any one of the independent variables is varied,

while the other independent variables are held fixed.

3.5.6 F-Test (ANOVA)

F-test is a statistical test in which the test statistic has an F-distribution under the

null hypotheses. It is most often used when comparing statistical models that have

been fitted to a data set. Researcher use f-test in the study to identify the model

that best fits the population which the data were sampled.

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3.6 Hypotheses Testing

Through analyzing the result, this study tried to obtain the critical value to

determine whether to reject or accept the null hypotheses. Null hypotheses will be

rejected if the calculated value is greater than the level of significant value. The

significant value should be less than 0.05.

There are four steps of hypotheses testing. Firstly, state the hypotheses. Next, set

the criteria for a decision. The third step is to compute the test statistic, and lastly

make a decision. According to Naresh K. Maholtra (2010), the example of null

hypotheses as below:

Hypotheses: (Null Hypotheses): there is a relationship between independent

variable and dependent variable.

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CHAPTER 4

FINDING AND ANALYSIS

4.0 Introduction

This section includes the finding and the data that have been collected from

respondents. For this study, the information was obtained from questionnaires that

distributed among customers that getting services from fast food restaurants. The

questionnaire divided into 5 parts which are Part A, Part B, Part C, Part D, and

Part E. Part A is about demographic information of the respondents, Part B is

health dynamic, Part C is variety of menu, Part D is price, and Part E is dependent

variable which is consumer behaviour in fast food restaurants. The following table

shows the finding from questionnaire which were distributed to the respondents

who consume fast food.

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4.1 Demographics Analysis

Basically, frequency analysis is used to obtain a count of the respondents

associated with different value of one variable to express these counts in

percentage (%) terms. This analysis is appropriate and very suitable to analyze the

question in Part A which is demographic information of the respondents. The

frequency table shows the distribution of a variable that includes frequency and

percentage.

Table 4.1 Respondent’s Demographic Information

Descriptions Frequency Percentage (%)

Gender Male 39 39

Female 61 61

Total 100 100

Age 18-24 years old 68 68

25-35 years old 22 22

36-50 years old 7 7

51 years old 3 3

and above

Total 100 100

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Marital status Single 77 77

Married 23 23

Total 100 100

Employment Student 62 62

Working 32 32

Unemployed 6 6

Total 100 100

Frequently Yes 78 78

visit fast food No 22 22

restaurants

Total 100 100

Health status Good 70 70

Fair 30 30

Poor 0 0

Total 100 100

Based on Table 4.1, there are 100 respondents involved in this research. It shows

that 39 (39%) of the respondents were male and another 61 (61%) were female.

For the respondents’ age, 68 (68%) 18-24 years old, 22 (22%) were 25-35 years

old, 7 (7%) were 36-50 years old, and another 3 (3%) were 51 years old and

above.

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For the respondents marital status, there were 77 (77%) single respondents were

answered the questionnaire. Meanwhile, 23 (23%) respondents were married.

For employment, there were 62 (62%) of the respondents were students, 32 (32%)

are working, and only 6 (6%) of the respondents were unemployed.

Table 4.1 also shows that, there were 78 (78%) of the respondents frequently

visiting fast food restaurants and the rest which is 22 (22%) rarely visiting fast

food restaurants.

For health status, there were 70 (70%) have a good health status and 30 (30%)

have fair health status. Meanwhile, there were no respondents with poor health

status.

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4.2 Reliability Analysis

Table 4.2: Rules of thumb of Cronbach’s Alpha Coefficient Size

Alpha Coefficient Range Strength Associations

< 0.6 Poor

0.6 to < 0.7 Moderate

0.7 to < 0.8 Good

0.8 to < 0.9 Very good

0.9 Excellent

Table 4.2 shows the value of Alpha coefficient range. According to Naresh K.

Malhotra (2010), the Cronbach’s Alpha value that higher than 0.7 is considered

good and acceptable.

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Table 4.3: Cronbach’s Alpha

Variables Cronbach’s Alpha No of Items

Health dynamic (IV) 0.766 5

Variety choice of menu (IV) 0.752 5

Price (IV) 0.911 5

Consumer’s behaviour (DV) 0.806 5

Table 4.3 above shows the reliability of all the variables including the dependent

variable which is consumer’s behaviour and also the independent variable which

are health dynamic, variety choice of menu, and price.

The Cronbach’s Alpha value for health dynamic is 0.766 (76.6%) which indicates

as good. It means that the overall questions and respondents’ answer under this

variable and it can be used to find the result of the study.

The Cronbach’s Alpha value for variety choice of menu is 0.752 (75.2%) which is

good. This also can indicate that the overall questions and respondent’s answer

are reliable.

For price, the Cronbach’s Alpha is 0.911 (91.1%) of set of question is reliable. It

indicates that the variable is excellent.

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For dependent variable which is consumer’s behaviour, the Cronbach’s Alpha

value is 0.806 (80.6%) of set question is reliable. This indicates a very good

reliability and variables in the questionnaire for dependent variables could

produce accurate and precise result.

4.3 Descriptive Analysis

Descriptive analysis describes the main features of a collection of the overall data

quantitatively. Descriptive analysis statistic in this study includes the maximum,

minimum, mean, and standard deviation.

Table 4.4 Descriptive Analysis

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

IV1 100 3.00 5.00 4.1980 .52838

IV2 100 3.00 5.00 4.2140 .51030

IV3 100 1.00 5.00 3.9760 .74143

DV 100 2.60 5.00 4.1620 .55537

Valid N 100

(listwise)

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The mean for health dynamic is 4.1980. The maximum mean for health dynamic

is 5.00. This shows that most of the respondents expect more from the fast food

restaurants. The minimum mean for health dynamic is 3.00. The standard

deviation for health dynamic is 0.52838.

The mean for variety choice of menu is 4.2140. The maximum mean for variety

choice of menu is 5.00. This shows that most of the respondents expect more from

the fast food restaurants. The minimum mean is 3.00. Meanwhile the standard

deviation for variety choice of menu is 0.51030.

The mean for price is 3.9760. The maximum mean for price is 5.00 and the

minimum mean is 1.00. The standard deviation for standard deviation for price is

0.74143.

The mean for consumer’s behaviour is 4.1620 with standard deviation of 0.55537.

The maximum mean is 5.00. This shows that most of the respondents have

positive behaviour towards fast food restaurants. Meanwhile, the minimum mean

is 2.60.

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4.4 Pearson Test Correlation Analysis

In this study, the researcher used Pearson Correlation Matrix to test hypothesis. It

is because the questionnaire is an interval measurement of scale.

Table 4.5 Rules of Thumbs about Correlation Coefficient Size

Coefficient Range Strength of Association

± .91 t0 ± 1.00 Very strong

± .71 to ± .90 High

± .41 to ± .70 Moderate

± .21 to ± .40 Small but definite relationship

± .01 to ± .20 Slight, almost negligible

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Table 4.6 Pearson’s Test Correlation for Expectation

Correlations

IV1 IV2 IV3 DV

IV1 Pearson 1

Correlation

Sig. (2-tailed)

N 100

IV2 Pearson .632** 1

Correlation

Sig. (2-tailed) .000

N 100 100

IV3 Pearson .476** .453** 1

Correlation

Sig. (2-tailed) .000 .000

N 100 100 100

DV Pearson .581** .284** .482** 1

Correlation

Sig. (2-tailed) .000 .004 .000

N 100 100 100 100

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Based on table 4.6, the correlation between dependent variable and independent

variable are stated. The dependent variable is consumer’s behaviour on fast food

restaurants while the independent variables are health dynamic, variety choice of

menu, and price.

Hypothesis 1

H0: There is no significant relationship between health dynamic and consumer

behaviour on fast food restaurants.

H1: There is significant relationship between health dynamic and consumer

behaviour on fast food restaurants.

The result shows that there is positive relationship between health dynamic and

consumer behaviour on fast food restaurants. The finding shows that r-value is

0.581. The p-value shows that a probability of 0.000 indicating that there is highly

significant because p-value less than 0.01 significant levels. Then, it will answer

the first hypothesis.

Hence, there is significant relationship between health dynamic and consumer

behaviour on fast food restaurants.

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Hypothesis 2:

H0: There is no significant relationship between variety choice of menu and

consumer behaviour on fast food restaurants.

H1: There is significant relationship between variety choice of menu and

consumer behaviour on fast food restaurants.

Secondly, the result on variety choice of menu and consumer behaviour on fast

food restaurants shows that there are positive relationships. The findings shows

that r-value 0.284. The p-value shows that a probability 0.004 indicating that there

is highly significant because p-value less than 0.01 significant level.

Hence, there is significant relationship between variety choice of menu and

consumer behaviour on fast food restaurants.

Hypothesis 3

H0: There is no significant relationship between price and consumer behaviour in

fast food restaurants.

H1: There is no significant relationship between price and consumer behaviour in

fast food restaurants.

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Lastly, the result on price and consumer behaviour on fast food restaurants shows

that there are positive relationships. The findings shows that r-value 0.482. The p-

value shows that a probability 0.000 indicating that there is highly significant

because p-value less than 0.01 significant level.

Hence, there is no significant relationship between price and consumer behaviour

in fast food restaurants.

4.5 Regression Analysis

4.5.1 Coefficient of Determination

Table 4.7 Result of Regression Analysis for the Research Model

Model Summary

Mo R R Adjusted Std. Error of the Estimate

del Square R Square

1 .647a .418 .400 .43018

a. Predictors: (Constant), IV3, IV2, IV1

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Coefficient of determination or denoted by R square is the common measure of

the goodness of fit. The linear regression analysis is presented in table 4.7. R

square value indicates how much the dependent variable which is consumer’s

behaviour toward fast food restaurants can be explained by the changes

independent variable which is health dynamic, variety choice of menu, and price.

So, 41.8% of R square or variance in the dependent variable which is consumer’s

behaviour towards fast food restaurants can be explained while the balance 58.2%

can be explained by other factors.

4.5.2 F-test (ANOVA)

Table 4.8 Result of Regression Analysis by ANOVA

ANOVAa

Model Sum of Df Mean F Sig.

Squares Square

1 Regressi 12.770 3 4.257 23.003 .000b

on

Residual 17.765 96 .185

Total 30.536 99

a. Dependent Variable: Consumer Behavior

b. Predictors: (Constant), Health Dynamic, Variety Choice of Menu, and Price

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Based on Table 4.8, which is ANOVA F-test, the P-value =0.000, which less than

alpha value = 0.01. It means that all independent variable are significant and can

be proceed to test each hypothesis. The hypothesis was tested by referring to

coefficient table.

Calculation for determine the F-critical value:

F-critical value = (k-1, n-k-1)

Where:

K = number of independent variable

N = number of observation

Calculation of f-critical = (k-1, n-k-1)

= (3-1, 100-3-1)

= (2,96)

= 3.09

Table 4.9 Regression for F-test

Variable F-statistic Sign F-critical Status

All variables 23.003 > 3.09 Significant

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From the result above, the f-statistic is 23.003 higher than the f-critical value.

Means that the independent variables which are health dynamic, variety choice of

menu, and price has significant relationship with the dependent variable which is

consumer behavior on fast food restaurants.

4.5.3 Coefficient

Table 4.10 Coefficient Result

Coefficientsa

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Beta

Error

1 (Consta 1.718 .392 4.380 .000

nt)

IV1 .600 .110 .571 5.463 .000

IV2 -.235 .112 -.216 - .039

2.096

IV3 .230 .068 .307 3.384 .001

a. Dependent Variable: DV

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The calculated model is:

Y=1.718 + 0.600X1 – 0.235X2 + 0.230X3

Table 4.9 shows the result for the multiple regressions for the hypothesis and

analysing the factor that lead to the consumer’s behaviour towards fast food

restaurants. The result shows that all variables are significant which is 0.000,

0.039, and 0.010 whereby p < 0.05. Which mean that there are 60.0%, 0.235%,

and 23.0% of confident level. Therefore, all hypothesis are accepted for this

independent variable.

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4.6 Hypothesis Testing

A hypothesis was being tested so that the researcher can identify whether all the

independent variables which are health dynamic, variety choice of menu, and

price have a relationship with the dependent variable. Correlation analysis was

used by the researcher to test the result for the hypotheses of the study.

Table 4.11 Hypothesis Testing Result

Independent Significant Result Decision

Variable

Health Dynamic 0.000 Significant Accepted

Variety Choice of 0.039 Significant Accepted

Menu

Price 0.010 Significant Accepted

The result of hypothesis testing shows that all the independent variables which are

health dynamic, variety choice of menu, and price are significant and influence

the dependent variable which is consumer behaviour on fast food restaurants

which less than 0.05.

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H1: There is significant relationship between health dynamic with

consumer’s behaviour towards fast food restaurants.

Based on table 4.10, it shows that there is significant result by indicating the

positive influence between health dynamic and consumer’s behaviour towards

fast food restaurants. Thus, the result H1 is supported.

H2: There is significant relationship between variety choice of menu with

consumer’s behaviour towards fast food restaurants.

Based on table 4.10, it shows that there is significant result by indicating the

positive influence between variety choice of menu and consumer’s behaviour

towards fast food restaurants. Thus, the result H2 is supported.

H3: There is significant influence between price and consumer’s behaviour

towards fast food restaurants.

Based on table 4.10, it shows that there is significant result by indicating the

positive influence between price and consumer’s behaviour towards fast food

restaurants. Thus, the result H3 is supported.

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CHAPTER 5

CONCLUSION AND RECOMMENDATION

5.0 Introduction

This chapter will explain about the conclusion and recommendations for this

study. In this section, the researcher will elaborate the findings and analysis. The

recommendation or suggestion of ideas from the researcher that might be able to

improve fast food services to meet the customer satisfaction will be explain in this

chapter.

5.1 Conclusion

In response to the research objectives, the results offer strong support for the

direct influence of health dynamic, variety choice of menu, and price on

consumer’s behaviour towards fast food restaurants.

Besides, the theoretical framework has been developed consist of dependent and

independent variables. The dependent variable is consumer’s behaviour towards

fast food restaurants. Meanwhile the independent variables are health dynamic,

variety choice of menu, and price. In this study, there are three hypothesis that

have been tested. Basically, the main objective of this research is to study the

influence between independent variables and dependent variable. The regression

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analysis used to test the significant relationship between those variables either the

hypothesis is supported or not. From the analysis, the researcher can conclude that

independent variable which are health dynamic, variety choice of menu, and price

have significant influence on dependent variable which consumer’s behaviour

towards fast food restaurants. So, based on the result, H1, H2, AND H3 are

supported.

5.1.1 Health Dynamic

Based on the findings of this study, health dynamic is positively influenced

consumer’s behaviour towards fast food restaurants. For the first independent

variables, it is to determine whether health dynamic influence consumer’s

behaviour towards fast food restaurants. The importance of the independent

variables are analysing using frequency, percentage, mean, and based on the

correlation between independent and dependent variables. The statement showed

that the respondent agree with the statement with mean 4.2140. The respondent

also agreed that health dynamic is important in fast food consumption. Besides,

the result from table 4.6 shows r =.581. So, between health dynamic and

consumer’s behaviour towards fast food restaurants has a substantial relationship.

Overall, health dynamic is one of the factors that influence consumer’s behaviour

towards fast food restaurants.

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5.1.2 Variety Choice of Menu

According to the findings of this study, variety choice of menu is positively

influenced consumer’s behaviour towards fast food restaurants. It supported and

proved by data analysed. The respondent agreed that they considering the choice

of menu in choosing fast food restaurants. This shown by the mean score analysis

for the statement with mean 4.2140. Besides that, according to table 4.6, it shows

that correlation between variety choice of menu and consumer’s behaviour

towards fast food restaurants is r = .284. This result indicates that the correlation

result is small but definite relationship. So, between variety choice of menu and

consumer’s behaviour towards fast food restaurants have a positive and

significant relationship.

5.1.3 Price

For the price, it answering the forth research question. The answer is positively

influenced consumer behaviour’s towards fast food restaurants. It supported and

proved by data analysed. The respondent agreed that price influence their

behaviour in fast food consumption. This shown by the mean score analysis for

the statement with mean 3.9760. Besides that, according to the table 4.6, it shows

that correlation between price and consumer’s behaviour towards fast food

restaurants is r=.482. This result indicates that the correlation result is strongly

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correlate. So, between price and consumer’s behaviour towards fast food

restaurants has a positive and significant relationship.

5.2 Recommendations

Apart from the conclusions that have been mentioned, the objective of this

research is to suggest possible recommendation for the dependent variable which

is consumer’s behaviour towards fast food restaurants. Some of the

recommendations are stated as below:-

5.2.1 To Future Researcher

It is recommended for a future researcher to increase the sample size of

respondent for the study. Based on the studies that have been done, the selected

respondent (100 respondents) might not enough in order to produce the most

reliable result. Therefore, it is crucial for a future researcher to increase and get a

greater number of samples to get a valid and more accurate result.

Besides, future researcher also recommends to choose others factors as

independent variables such as product innovative, product freshness, product

presentation, and product quality. It is because, based on the study, health

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dynamic, variety choice of menu, and price shows that the selected variables

produce the significant influence the consumer’s behaviour towards fast food

restaurants. For the future research, they should focus on the similar study with

the extended scope to other fast food restaurants in Malaysia. Furthermore, any

factors related with the dependent variable should be access in order to get more

accurate results.

5.2.2 To Fast Food Restaurants

 Concern to produce healthy food

Health dynamic which is health consciousnesshas a significant relationship with

consumer’s behaviour. Management of the fast food restaurants should aim at

reducing the negative health implications from the increasing rates of obesity

prevalence among children and adolescents in Malaysia. First, the franchiser are

acknowledge about their products. They must be able to acknowledge their

customer preference. They may help to reduce obesity prevalence in children and

adolescents by utilizing mechanisms that improve diets through the influence of

healthy food. To promote healthy items in a less obvious way there are many

steps restaurants can take such as using terms like succulent, delicious, and fresh

in place of healthy, low fat, low sodium.

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In other hand, instead of producing a healthy food, the employees of fast food

restaurants should maintain the hygiene in the operation too. So that, unhealthy

consumers because of food poisoning can be avoided.

 Variety choice of menu

Based on the study that has been done, variety choice of menu has a significant

relationship with consumer’s behaviour. Which mean that variety choice of menu

influences consumer’s behaviour towards fast food restaurants. When it comes to

restaurant, restaurant guests will continue to prioritize creativity on the menu. To

the franchiser, they should improve their menu. They may provide variety of food

in the menu to attract more customers dine in and purchase their products. So that,

customers has more options for what to eat. It helps the fast food restaurants to

compete with local restaurants. Fast food restaurants also needs to increasing the

availability of the menus. Moreover, improvements in menu are made in order to

increase sales of the fast food restaurants.

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 Price

Fast foods are young people’s favorite restaurants. Young people are

characterized by low income, lack of time, convenience and need for

socializing. So, they choose fasts food restaurants. Fast food restaurants

should able to fulfill these needs by offering cheap products.

In order to act positively towards perceived value, price should be considered

critically by fast food restaurants operating in Malaysia in order to improve

the perceived value customers would place on their products. Consumers are

price sensitive but they are willing to pay extra for improvement in intrinsic

cues such as ingredient and taste.

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