2012-rauf & butt

Upload: msaadnaeem

Post on 04-Jun-2018

224 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/13/2019 2012-Rauf & Butt

    1/31

    40 Int. J. Leisure and Tourism Marketing, Vol. 3, No. 1, 2012

    Copyright 2012 Inderscience Enterprises Ltd.

    Consumer perceptions of foreign fast foodrestaurants in an emerging market

    Ateeq Abdul Rauf*

    School of Business and Economics,

    University of Management and Technology,

    Lahore, Pakistan

    Email: [email protected]

    *Corresponding author

    Irfan ButtCollege of Commerce and Economics,

    Sultan Qaboos University,

    Muscat, Oman

    Email: [email protected]

    Abstract:This study empirically examines Pakistani consumer perceptions offoreign fast food restaurants. The objective of this study was to understandmultinational restaurant consumer behaviour in Pakistan and draw managerialimplications for international fast food marketers and operators of Pakistanirestaurants. The findings were based on a sample of 410 respondents. Theattributes of a fast food restaurant, identified through factor analysis, comprisedquality, cleanliness and comfort, ambience, childcare, presentation and

    healthiness, location and price, staff service and staff outlook. Multivariateanalysis of variance was performed to understand consumer perceptions bydemographics and other variables. Analysis revealed that age, gender, maritalstatus, education, household size, income and occupation and price influencethe ratings of attributes for restaurant selection. Results showed size ofhousehold, age and occupation were also factors in determining frequency ofpatronage. The findings were compared with earlier studies conducted in theUSA, South Korea, Saudi Arabia and India.

    Keywords: consumer perceptions; consumer behaviour; foreign; MANOVA;fast food; restaurants; Pakistan; emerging market; multinational; factoranalysis; demographics.

    Reference to this paper should be made as follows: Rauf, A.A. and Butt, I.(2012), Consumer perceptions of foreign fast food restaurants in an emerging

    market,Int. J. Leisure and Tourism Marketing, Vol. 3, No. 1, pp.4070.

    Biographical notes: Ateeq Abdul Rauf is a Lecturer at University ofManagement and Technology, Lahore, Pakistan. He has previously worked asResearch Fellow at Lahore University of Management Sciences, where heconducted research and taught undergraduate courses in management. He hasedited the appendices of the 13th edition of Principles of Marketing: A SouthAsian Perspective by Philip Kotler, Gary Armstrong, Prafulla Agnihotri andEhsan ul Haque. He is a graduate of Northwestern Universitys Master of

  • 8/13/2019 2012-Rauf & Butt

    2/31

    Consumer perceptions of foreign fast food restaurants 41

    Science programme in Integrated Marketing Communications. His research

    interests are in the area of consumption and anti-consumption, sociologicaleffects of marketing and media economics.

    Irfan Butt is an Assistant Professor of Marketing at College of Commerce andEconomics, Sultan Qaboos University, Muscat, Oman. Prior to joining SultanQaboos, he was a faculty member at Lahore University of ManagementSciences, Lahore, Pakistan. He received his PhD from Carleton University,Ottawa, Canada, where he also worked as a visiting faculty. He received hisMBA from Thunderbird School of Global Management, Arizona, USA, andBA from College of Wooster, Ohio, USA. His research interests are in theareas of export marketing, market positioning strategy, product-country imageand content analysis.

    1 Study objectives

    In recent years, the fast food industry has expanded tremendously around the world.The global fast food market was valued at $154.7 billion in 2008 is forecasted to increase

    by 29.3% to $200 billion in 2013 (Researchandmarkets.com, 2010). Thus, managersof major international fast food players ought to consider consumer expectations and

    behaviour in local markets since such perceptions are susceptible to culturaldifferences (Lee and Ulgado, 1997, p.39). Particelli (1990) mentions that success in aninternational scale will always require local adaptation. This is specifically the case for

    product categories associated with cultural and ethnic identification such as food (Reillyand Wallendorf, 1987). Keillor and Fields (1996) note that consumption habits arerelated to the cultural and ethnic environment of the consumers. Anderson and He (1999)contend because it functions in a cultural and demographic environment, the marketingmix (for fast food) may need changes from region to region to be appropriate for thetarget market (p.83). In this regard, researchers have examined various countries likeIndia, South Korea, China, Turkey and Saudi Arabia. One study notes that consumer

    perceptions on fast food may even differ across countries as similar as the USA andCanada (Kara et al., 1995).

    Previous studies have established that demographics can affect consumers patronageof fast food restaurants and that frequency of visits to such establishments is related togender, age and various household characteristics (Grazin and Olsen, 1997). Akbay et al.(2007) concluded that demographic variables such as age and income as well as otherconsumer perceptions of attributes such as price and healthiness influence patronage offast food restaurants. Oyewole (2007) concluded that gender, age, marital status and

    income affect the frequency of visits made by consumers to fast food outlets. Hence,marketing managers of fast food restaurants need to give due importance todemographics when designing marketing strategies.

    This paper intends to enhance existing literature on the subject of foreign fast foodconsumption by examining an emerging market, i.e. Pakistan. First, we discuss factorsaffecting consumer perceptions and their choice of multinational fast food chains. Wethen highlighted differences in consumer perception patterns within sub-groups of thesame demographic (e.g. age) using Multivariate Analysis of Variance (MANOVA), atechnique hardly used in such studies before. Keeping the above in view, the followingobjectives were set out for the study:

  • 8/13/2019 2012-Rauf & Butt

    3/31

    42 A.A. Rauf and I. Butt

    1 To examine the relationship between frequency of visits to fast food restaurants and

    consumer demographics.

    2 To explore attributes considered important for patronising foreign fast foodrestaurants.

    3 To investigate how consumer preferences differ by family size, income, age, gender,occupation and marital status.

    2 The fast food industry

    Researchers have conceptualised fast food in different ways. Keillor and Fields (1996)define it as a franchised restaurant chain offering both dining and take out facilitieswith no table service (e.g. McDonalds, Burger King and Kentucky Fried Chicken)

    (p.84). Bender and Bender (1995), on the other hand, confine fast food to food items thathave a limited menu and are prepared under certain production line techniques. However,for this paper we considered fast food as the sale of food and drinks for immediateconsumption either on the premises or in designated eating areas shared with otherfoodservice operators, or for consumption elsewhere (Researchandmarkets.com, 2010).

    Many common household names in fast food like McDonalds and Kentucky FriedChicken (KFC) have their origins in the USA. However, the expansion of many suchfranchises in recent years has occurred considerably outside their home country. Inemerging markets, global brands such as McDonalds (with 65% of sales overseas) andYum! Brands (with 50% of sales overseas) have been leading fast food growth byfranchising (Wikinvest, 2009).

    In China the fast food industry is growing by leaps and bounds. Compounded annualgrowth rate was expected at around 25% from 2008 to 2011 (Report Buyer, 2008).

    Reasons for this include a busier way of life in urban China leading to an increasingdemand for quick meals. According to Getchee Solutions (2009), Burger King plans toopen up to 300 outlets in China in the five years from 2009 to 2014 and KFC worked onopening at least 300 stores in 2009.

    The Indian fast food market is burgeoning, too. India is among the top ten markets forfast food consumption in the Asia-Pacific region (Goyal and Singh, 2007). According tothe Worldwatch Institute, Indias fast food industry was growing by 40% a year in 2005(Tiwari and Verma, 2008).

    Analysts have spotted similar growth in other countries as well. In Turkey, Yum,McDonalds and Burger King (BKC) have all expanded to the country of 73 million(MSN.com, 2010). Not satisfied by expansion rates in South Korea, McDonalds aimedto invest $15 million in the country in 2010 and $30 million in 2011 (MSN.com, 2010).Fast-foodrestaurantshavepenetratedeverymarketinCEE[CentralandEasternEurope].

    Brazil is a battleground for fast food in Latin America (PricewaterhousecoopersSouthAfrica, 2010).Another emerging market is Pakistan, a South Asian country of roughly 180 million

    people. In Pakistan, international fast food chains have increased their presence in recentyears in urban locations all over the country. One report states:

    Eating out is becoming more common with people trying continental andChinese as well as fast foods. People take more time to go out, enjoy deliciousfood, and hang out at coffeehouses, ice cream parlours, parks and so on. Thishas also raised demand for restaurants, coffeehouses, fast food outlets, dessertparlours, parks, bowling alleys and other recreational facilities across urbancentres. (Euromonitor International, 2008, pp.37, 7374)

  • 8/13/2019 2012-Rauf & Butt

    4/31

    Consumer perceptions of foreign fast food restaurants 43

    Horeca(Hotel/Restaurant/Caf)foodsalesareincreasedmorethan86%fromapproximately

    PKR 224 million in 2004 to approximately PKR 417.4 million in 2008 (Planet Retail,2009a, 2009b). Planet Retail (2009a, 2009b) data shows that 1.9% of all retail sales in

    Pakistan are from HoReCa.

    Major fast food players in Pakistan include the multinational chains McDonalds,

    KFC, Pizza Hut, Subway, Hardees, Nandos and Dominos Pizza. There are no local fast

    food players with an expansive reach in the country.

    3 Literature on fast food research

    Credible research literature on the Pakistani fast food industry is virtually non-existent.

    As a result, research conducted in other countries provided leads for this study. Kara

    et al. (1995) looked at differences between US and Canadian cities, Lee and Ulgado(1997) explored perceptual differences of consumers in South Korea and the USA; and

    Oyewole (2007) studied African-American consumers. Bhuians (2000) article discussed

    consumer perceptions in Saudi Arabia. Papers presented by Chavadi and Kokatnur

    (2008), Goyal and Singh (2007) and Tiwari and Verma (2008) surveyed cities in India.

    All these studies provided useful insight as to how research should be carried out in an

    emerging market like Pakistan.

    Kara et al. (1995) discussed how perceptions of fast food consumers differ across

    Canada and the USA. The aim of the study was to establish whether consumers on either

    side of the border perceived outlets of the same franchise similarly or not. A survey

    questionnaire was distributed to 200 households. The analysis of survey results revealed

    a significant difference between US and Canadian consumers based on the type of fast

    food they consumed, the place where they consumed the food and the price they were

    willing to pay. The researchers also used correspondence analysis to evaluate fast foodperceptions in the two countries. Frequent US fast food consumers deem variety of food,

    speed of service and friendly staff to be the most important criteria in selection. Less

    frequent US customers feel price and promotion are the most essential factors. Frequent

    consumers in Canada opined that restaurant seating capacity and food nutritional value

    were important determinants of their choice, while less frequent consumers valued price,

    novel menu items and location of restaurants.

    Kivela (1997) carried out a study on a random sample of 120 households in

    Hong Kong to determine how customers select restaurants and to assess whether

    variables affecting the selection differed by occasion, age and income. In addition, the

    study attempted to find out whether the selection of restaurants is influenced by lower

    priority variables once consumers have decided on occasion and segment. The results

    showed that most customers think food type and food quality are the most importantvariables. The occasion for dining out appears to be the key factor of the selection set.

    Age and income are identified as important determinants. The author also concluded that

    the overall package of a restaurant to a particular demographic is a key influencer in

    selection or rejection of that restaurant.

    Lee and Ulgado (1997) used SERVQUAL to analyse the gap between service

    expectation and perception. They ran a survey on US and South Korean customers and

    collected 193 questionnaires. The study chosen franchise brand was McDonalds. Lee

    and Ulgado used t-test to determine the difference between the two countries consumers.

    They found Korean customers have significantly higher expectations. Koreans also rate

  • 8/13/2019 2012-Rauf & Butt

    5/31

    44 A.A. Rauf and I. Butt

    dimensions of service value lower than their US counterparts. Results, attained with

    stepwise regression, indicated that Korean consumers judge reliability and price as themost significant variables for service value as opposed to price and assurance for US

    consumers.

    Bhuian(2000)empiricallyinvestigatedthefactorsthataffectSaudiArabianconsumer

    preferences for fast food restaurants. The hypotheses for this study posed that nutrition,

    price, taste, speed, seating space, delivery service, variety, location, friendliness and

    cleanliness were important in determining restaurant choice (H1) and their importance did

    not vary across demographically different groups (H2). Bhuian randomly intercepted and

    surveyed 250 respondents for this study. He used t-test for studying H1and Analysis of

    Variance (ANOVA) for studying H2. Research found all factors apart from delivery of

    service in H1to be significant in determining restaurant selection. The study also showed

    that, for H2, the influence of taste does not differ across age groups. In addition, all

    attributes affecting the selection of fast food outlets equally influence both genders.Moreover, the effect of only nutrition and taste is different across income groups.

    Oyewole (2007) researched the factors that influence frequency of visits to fast food

    restaurants by African-American consumers. The study used a convenience sample of

    400 African-American respondents and tested hypotheses regarding frequency of

    patronage using percentage distribution and Chi-square methods. He also examined

    hypotheses related to criteria of quality evaluation using ANOVA. The results indicated

    that the most important considerations in determining service quality were hygiene,

    reliability, expeditiousness, availability and courtesy. The paper also reported that

    gender, age, income and marital status influence frequency of visits to fast food

    restaurants. Young, single, adult males in lower income groups are frequent patrons of

    fast food outlets. Busy consumers in this sub-culture group are also frequent visitors to

    fast food outlets. Moreover, these short-of-time consumers are considered not to be brand

    loyal.Chavadi and Kokatnur (2008) set out to understand the factors influencing the

    selection of fast food restaurants in Davangere, India. SERVQUAL was used to identify

    service gaps from 140 respondents. The researchers used factor analysis to reduce the 19

    variables to four factors. Results showed that physical evidence, value pricing, high-

    quality service and good quality food are important to Indian customers. In addition, the

    authors noted that there is a large gap between expectation and perception of two

    variables: assurance and empathy. The investigators also studied the association of age

    and income with fast food preference using Chi-square tests. Both youth and high income

    groups are said to be positively associated with inclination towards fast food.

    Goyal and Singh (2007) conducted a study in New Delhi to identify variables

    important in fast food restaurant selection by young consumers. Other objectives of this

    research included examining consumption patterns of fast food and learning the impactof hygiene and nutritional value of fast foods on consumer decisions. The study used

    factor analysis to derive three dimensions: service and delivery, quality and product. The

    results indicated that young Indians visit fast food outlets for fun and change, but these

    consumers still prefer home-cooked meals. The study also revealed that consumers prefer

    more information related to cleanliness and nutrition.In a study carried out in Dehradun, India, Tiwari and Verma (2008) also assessed

    Indian consumer perception about fast food. The study objectives included identifyingfactors influencing consumer preference for fast food and studying consumption patternsof fast food. A convenience sample of 150 customers aged between 15 and 35 years was

  • 8/13/2019 2012-Rauf & Butt

    6/31

    Consumer perceptions of foreign fast food restaurants 45

    surveyed. Using simple frequency distribution, the researchers concluded that snack

    breaks and dinner are the most preferred times for consuming fast food. In addition,customers visit fast food outlets for fun and believe that friends are heavy influencers inthe selection of a restaurant. Food quality and service are the top listed factors that affectselection of fast food outlets.

    4 Hypotheses

    Our study aimed to confirm whether the relationships and results found in the literature

    hold true for the Pakistani fast food market. To answer this question and meet the

    objectives of this study, we developed the following hypotheses:

    H1: The frequency of visits to fast food restaurants is affected by (a) age, (b) education,

    (c) gender, (d) size of household, (e) income, (f) occupation, (g) marital status and(h) price expectation.

    H2: The importance consumers attach to attributes of service quality in choosing a

    fast food restaurant is affected by (a) age, (b) education, (c) gender, (d) size of

    household, (e) income, (f) occupation, (g) marital status and (h) price expectation.

    For H2our research also analysed differences by demographics, something that had not

    been explored in previous studies.

    5 Study methodology

    The data for this study were collected from customers eating at specific restaurant outletsin Lahore, the second largest city in Pakistan. The researchers selected multiple outletsfrom each of six major international fast food chains operating in Pakistan: McDonalds,Hardees, KFC, Pizza Hut, Subway and Nandos. Pakistani restaurants that serve acombination of fast food and traditional Pakistani food were also randomly selected to

    broaden the range of respondents. The six Pakistani restaurants were Bar BQ Tonight,Bundu Khan, Cock & Bull, Gourmet Grill, Karachi Bar BQ and KuKus Caf. MBAstudents from a local university judgementally selected the respondents. The intervieweesanswered the questions either inside or outside of each outlet, depending upon permissiongiven by the restaurant management to conduct the surveys. A total of 410 usablequestionnaires were obtained.

    6 Measures

    Based on extensive literature review (Kara et al., 1995; Kivela, 1997; Bhuian, 2000;Oweyole, 2007; Chavadi and Kakatnur, 2008; Tiwari and Verma, 2008), we selected 34attributes of fast food restaurants for this research (see Appendix A). The adaptedmeasures fell in the nine categories used by Oweyole (2007): Hygiene and reliability,expeditiousness, availability, courtesy, communication, health-consciousness, comfort,ease of complaint and love of children. A 5-point scale measured each attribute fromleast important (1) to most important (5). The interviewers asked demographic questionsabout gender, age, income, marital status, size of household, occupation and education

  • 8/13/2019 2012-Rauf & Butt

    7/31

    46 A.A. Rauf and I. Butt

    from each respondent. In addition, the interviewers also asked questions to determine the

    frequency of visit, reasons for visit, people accompanied on each visit and peopleinfluencing the choice of a restaurant.

    7 Distribution of respondents

    The demographic profiles for the studied sample are shown in Table 1.

    Table 1 Characteristics of the data set

    Demographics Frequency Percent Demographics Frequency Percent

    Type ofrestaurant visited

    Household Size

    Pakistani foodrestaurant 212 51.71% 2 or less persons 37 9.02%

    Fast food outlet 198 48.29% 35 persons 251 61.22%

    68 persons 105 25.61%

    More than 8 12 2.93%

    Gender Frequency PercentIncome

    (Pak Rs. Per month)Frequency Percent

    Male 270 65.85% Less than 25,000 45 10.98%

    Female 133 32.44% 25,00049,999 59 14.39%

    50,00074,999 78 19.02%

    Marital Status Frequency Percent 75,00099,999 53 12.93%

    Single 236 57.56% 100,000 and over 155 37.80%

    Married 167 40.73%

    Age Frequency Percent Education Frequency Percent

    1825 years 174 42.44% Home schooling 2 0.49%

    2634 years 158 38.54% Matric/O-Level1 14 3.41%

    3544 years 42 10.24% Intermediate/A-Levels2

    62 15.12%

    4554 years 23 5.61% Graduate/B.A 173 42.20%

    55 or more 11 2.68% Postgraduate 141 34.39%

    Notes: Missing values were omitted from the analysis. 1 10 years of schooling; 212 years of schooling.

    8 Analysis

    8.1 Demographics and frequency of visit

    In order to test H1, we performed a Chi-square analysis between the demographic

    variables and frequency of visit to fast food outlets. The hypothesis was supported in the

    cases of age, size of household and occupation. The significant results are shown in

    Table 2.

  • 8/13/2019 2012-Rauf & Butt

    8/31

    Consumer perceptions of foreign fast food restaurants 47

    Table 2 Significant results of Chi-square analysis between demographics and frequency

    of visit

    Chi-Square Tests

    Frequency of Visit * Age Value Df Asymp. Sig. (2-sided)

    Pearson Chi-square 33.32208 20 0.031093

    N of Valid Cases 408

    Frequency of Visit * Size of household

    Pearson Chi-Square 31.26894 15 0.008085

    N of Valid Cases 405

    Frequency of Visit * Occupation

    Pearson Chi-square 40.00241 25 0.029148

    N of Valid Cases 402

    The results shown in Table 2 indicated that there was a relationship between three

    demographic variables (age, number of people in the household and occupation) and

    frequency of visits.

    8.2 Factor analysis

    For the purpose of testing H2, we conducted a factor analysis on the list of 34 attributes inthe questionnaire. We intended to determine what factors affect consumer choice offoreign fast food outlets in Pakistan. Applying Varimax rotation, we retained only factorswith eigenvalues above 1 in the analysis. Eight components explaining more than 57%variance were extracted. Table 3 shows that the following factors were derived based onfactor loadings: quality, cleanliness and comfort, ambience, childcare, presentation,

    healthiness, location, price, staff service, open late, quantity of food and staff outlook.Cronbach alphas were obtained to test reliability of the factors (in Table 3). The alpha

    values for cleanliness and comfort, ambience, childcare, healthiness were all above theinternational standard of 0.7. Additionally, values of quality, staff service and staffoutlook were close enough to 0.7 to be studied. However, open late and quantity of foodhad low values and were removed from analysis. Presentation and healthiness whencombined brought the alpha values for these factors closer to the desired figure to beincluded in the study. Similarly, location and price when combined brought the alphavalues for these factors to an adequate level to be studied.

    Hence, the factors important to Pakistani consumers while selecting a fast food brandwere assessed to be as follows: quality, cleanliness and comfort, ambience, childcare,

    presentation and healthiness, location and price, staff service and staff outlook.

    8.3 Multivariate Analysis of Variance (MANOVA)

    In order to examine H2, we performed MANOVA using the factors obtained (in thefactor analysis) as dependent variables. The independent variables constituted of thedemographic variables and price preference variable.

    Results showed that all demographic variables (age, gender, marital status, education,household size, income and occupation) and price expectation variables influenced theratings of the factors under consideration. We considered measurements useful if thedifference between any two groups of a categorical variable was highly significantlydifferent (p< 0.05) from each other.

  • 8/13/2019 2012-Rauf & Butt

    9/31

    48 A.A. Rauf and I. Butt

    Table 3 Extracted factors and their Cronbach alphas

    ComponentLoadings

    CronbachAlphas

    F

    actors

    Variables

    1

    2

    3

    4

    5

    6

    7

    8

    Qualityoffood

    0.611822

    Freshnessoffood

    0.564687

    0.674

    Q

    uality

    TasteofFood

    0.584094

    Comfortableseating

    0.55222

    Clea

    nliness&

    Cleanwashrooms

    0.703521

    0.779

    C

    omfort

    Overallveryclean

    0.773883

    Lotsofspaceinside

    0.503714

    BrightLights

    0.523099

    Decorationsonthewall

    0.729655

    BackgroundMusic

    0.734073

    0.753

    Ambience

    Moderninteriordesign

    0.764471

    Childrenmenuavailable

    0.681578

    Toyswithchildrenmeal

    0.859381

    0.847

    Childcare

    Childrenplayarea

    0.884008

    Varietyofdishesinthemenu*

    0.524325

    0.517

    Presentation

    Presentationoffood*

    0.584976

    Nutritionvalueoffood*

    0.689202

  • 8/13/2019 2012-Rauf & Butt

    10/31

    Consumer perceptions of foreign fast food restaurants 49

    Table 3 Extracted factors and their Cronbach alphas (continued)

    Component

    Loadings

    CronbachAlphas

    Factors

    Variables

    1

    2

    3

    4

    5

    6

    7

    8

    0.713

    Healthiness

    Lowcalorie(low-fat)food*

    0.705104

    Convenient,easilyaccessible

    location**

    0.592786

    0.548

    Loc

    ation

    Locatedclosetothehouse**

    0.656567

    Lowprices**

    0.710954

    0.571

    Price

    Pricescomparabletosimilar

    restaurants**

    0.730548

    Politeandcourteousservers

    (waiters)

    0.532855

    Quickhandlingofcomplaints

    0.69464

    0.692

    StaffService

    Clearcommunicationwhile

    takingorders

    0.519035

    Friendlinessofstaff

    0.65591

    0.684

    StaffOutlook

    Neatandcleanlookingstaff

    0.881274

    Notes:

    *ifallfouritemsofPr

    esentationandHealthinessarecombined,thenC

    ronbachalphais0.713;**ifallfouritemsofLo

    cationandPricearecombined,then

    Cronbachalphais0.64

    4.

  • 8/13/2019 2012-Rauf & Butt

    11/31

    50 A.A. Rauf and I. Butt

    In summary, results showed education, income and price expectation influenced all

    eight attributes: quality, cleanliness and comfort, ambience, childcare, presentation andhealthiness, location and price, staff outlook and staff service. Data also revealed that

    gender affected cleanliness and comfort and staff outlook. Age impacted attributes of

    quality, ambience, childcare, location and price, staff outlook and staff service.

    Household size acted as an influencer on cleanliness and comfort, location and price,

    staff service and staff outlook. Marital status affected ambience, childcare, presentation

    and healthiness, staff service and staff outlook. Occupation influenced ambience,

    childcare, presentation and healthiness, location and price, staff service and staff outlook.

    8.3.1 Quality

    The 3544 years old age group was most particular when it came to quality of food.

    Compared to other age groups, this group gave significantly more importance to food

    quality in restaurant selection. In contrast, younger audiences did not seem to view

    quality as an important selection attribute. The results showed food freshness was least

    important to the least educated class in society. Those who had passed intermediate/A-

    levels (grade 12) were also not highly interested in freshness. However, degree holders of

    matric/O-level (grade 10) seemed to have a higher importance for freshness than home-

    school goers and intermediate/A-level degree holders. The highest income group valued

    quality of food as a significantly less important consideration in selection of a restaurant

    than the group with incomes between PKR 50,000 and 74,999.

    8.3.2 Cleanliness and comfort

    Graduates seemed to be significantly less sensitive to comfort in restaurants than

    matriculates. Graduates were also less sensitive than intermediates/A-level graduatesregarding cleanliness of restaurants. Females, as compared to males, tended to consider

    cleanlinesssignificantlymoreimportant.Unlikesmallerfamilies,peoplewithahousehold

    size of more than eight persons believed comfortable seating to be a significantly more

    important factor in restaurant selection. Results also indicated that comfortable seating

    was a more important consideration for income group PKR 50,00074,999 than it was

    for people in the lowest income group.

    8.3.3 Ambience

    Results showed that 1825 years old gave less importance to bright lights and seating

    space than 3544 years old. When compared to their younger counterparts, older groups

    seemed to have a stronger preference for seating capacity. People studying at home gave

    significantly more importance to space in restaurants than was given by students enrolledin higher education. Postgraduates attached higher importance to space than graduates.

    Bright lights and music were more strongly preferred by people earning less than

    PKR 50,000 than they were by people earning more than PKR 100,000. Space,

    decorations and interior design seemed to be greater influence in fast food restaurant

    selection for people with income less than PKR 25,000 than for people earning PKR

    100,000 and above. Results also showed that housewives had stronger preference for

    bright lights in fast food outlet selection relative to students. In addition, self-employed

    people deemed background music to be a significantly more important criterion in

  • 8/13/2019 2012-Rauf & Butt

    12/31

    Consumer perceptions of foreign fast food restaurants 51

    restaurant selection than did business owners, students and housewives. Also self-

    employed people, when compared to salaried employees and students, consideredmodern interior design to be a significantly more important criterion in selection.

    8.3.4 Childcare

    When compared to other age brackets, age group 3544 years followed by age group4554 years seemed to have a significantly higher preference for childcare facilities, toygifts (complementing children meals) and children play areas. The results also suggestedthat people educated at home gave higher importance to childcare than more educated

    people. Postgraduates, when compared to graduates, had a significantly higher inclinationfor children play areas. People earning more than PKR 100,000 seemed to besignificantly less influenced by childcare than people earning less than PKR 25,000. Incomparison to other groups, government service officials deemed childcare items to be a

    significantly more important decision factor in restaurant selection. Students and businessowners, however, appeared to be relatively indifferent in this aspect.

    8.3.5 Presentation and healthiness

    The age group of 3544 years considered nutrition and low-fat food as a more importantselection attribute than younger age groups. In addition, nutrition was a more importantfactor for 3544 years old than it was for 4555 years old. Variety of dishes seemed to bea more important selection criterion for 3544 years old than it was for 2534 years old.Presentation of food was believed to be significantly less important for 1825 years oldthan it was for almost all other age groups. In comparison to intermediates and graduates,matriculates/O-level degree holders considered nutrition to be a significantly moreimportant criterion in restaurant selection. Earners of less than PKR 50,000 thought low

    calories and nutrition were a more influential selection attribute than people earning overPKR 100,000. In comparison to other occupation groups, students found presentation andhealthiness to be less significant considerations in restaurant choice.

    8.3.6 Location and price

    In comparison to 1825 years old, 4554 years old considered location convenience to besignificantly more important in restaurant selection. Price was also a more influentialconsideration for 4554 years old when compared to 1834 years old. People living inhouseholds of more than eight persons gave higher preference to location than peopleliving in households of sixeight persons.

    When compared to people earning between PKR 25,000 and 49,999, employeesearning over PKR 100,000 considered location to be significantly less important.

    Customers earning more than PKR 100,000 also thought price was less influential thandid people earning less than PKR 25,000. When compared to other occupation streams,government officials gave higher preference to fast food restaurants closer to home.Housewives, when compared to other occupation groups, seemed to be relativelyindifferent to where the restaurant is located when deciding on a fast food outlet.

    8.3.7 Staff service

    As compared to other age brackets, age group 1825 years believed courtesy andpoliteness from restaurant staff to be a significantly less important factor in restaurant

  • 8/13/2019 2012-Rauf & Butt

    13/31

    52 A.A. Rauf and I. Butt

    selection. Relative to males, females tended to consider cleanliness and friendliness of

    staff significantly more important. Home-educated people considered communicationclarity significantly less important than higher educated people. Consumers from ahousehold of more than eight persons valued politeness and courtesy of waiterssignificantly more important when selecting a restaurant than people from otherhousehold strengths. People with income less than PKR 25,000 considered restaurantstaffs quick complaint handling more influential in their decision of selection than otherincome groups. When compared to other occupation groups, students believed staffservice to be significantly less important.

    8.3.8 Staff outlook

    Neatness of staff was a significantly less notable consideration for 1834 years old whencompared to 3544 years old. Postgraduates seemed to be influenced more significantly

    by staff outlook than are people educated at home. Earners of the lowest income bracketconsidered friendliness of staff to be a significantly more important factor in fast foodrestaurant selection than almost all other income groups. When compared to otherhousehold strengths, consumers from a household size of more than eight persons

    believed friendliness of staff to be significantly more important. Students gave lessimportance to staff outlook than other occupation groups.

    When compared to single adults, people who were married considered space, moderninteriors, childcare, presentation of food, food calories, nutrition, politeness of staff andfriendliness of staff to be significantly more important factors in evaluating fast foodrestaurants.

    Tables 411 illustrate the MANOVA findings detailed in the paragraphs above. Onlydata with highly significantly differences (p< 0.05) between groups have been presented.

    Table 4 Results of multivariate analysis of variance with age as an independent variable

    Age

    Dependent Variable(I) Household

    Income(J) Household

    IncomeMean Difference

    (IJ)Std. Error Sig.

    Quality

    Quality of food 1825 years 3544 years .2146* 0.09783 0.029

    2534 years 3544 years .2380* 0.09911 0.017

    3544 years 4554 years .3807* 0.14672 0.01

    Ambience

    Bright Lights 1825 years 3544 years .4205* 0.18983 0.027

    Lots of space inside 1825 years 2534 years .2573* 0.1064 0.016

    3544 years .4795* 0.16626 0.004

    4554 years .8129* 0.22108 0

    2534 years 4554 years .5556* 0.2225 0.013

    Childcare

    Children menu available 1825 years 3544 years 1.7735* 0.27458 0

    4554 years 1.0544* 0.31973 0.001

    2534 years 3544 years 1.5222* 0.27664 0

    4554 years .8032* 0.3215 0.013

    3544 years 55 or more 1.4030* 0.4831 0.004

  • 8/13/2019 2012-Rauf & Butt

    14/31

    Consumer perceptions of foreign fast food restaurants 53

    Table 4 Results of multivariate analysis of variance with age as an independent variable

    (continued)

    Age

    Dependent Variable(I) Household

    Income(J) Household

    IncomeMean Difference

    (IJ)Std. Error Sig.

    Childcare

    Toys with children meal 1825 years 2534 years .4531* 0.16304 0.006

    3544 years 1.1197* 0.27401 0

    4554 years .9388* 0.31907 0.003

    2534 years 3544 years .6667* 0.27607 0.016

    Children play area 1825 years 2534 years .4963* 0.16382 0.003

    3544 years 1.2333* 0.27532 0

    4554 years 1.1429* 0.32059 0

    2534 years 3544 years .7370* 0.27739 0.008

    4554 years .6466* 0.32237 0.046

    Presentation and Healthiness

    Low calorie (low-fat)food

    1825 years 3544 years .8731* 0.22819 0

    2534 years 3544 years .6244* 0.23067 0.007

    3544 years 55 or more 1.0326* 0.43901 0.019

    Nutrition value of food 1825 years 3544 years .7854* 0.23094 0.001

    2534 years 3544 years .5787* 0.23345 0.014

    Variety of dishes in the

    menu

    2534 years 3544 years .4007* 0.18716 0.033

    Presentation of food 1825 years 2534 years .2298* 0.11237 0.042

    3544 years .7135* 0.17918 0

    55 or more .6528* 0.31409 0.038

    2534 years 3544 years .4837* 0.18113 0.008

    Location & price

    Convenient, easilyaccessible location

    1825 years 4554 years .4722* 0.19839 0.018

    Prices comparable tosimilar restaurants

    1825 years 4554 years .5647* 0.21556 0.009

    2534 years 4554 years .5351* 0.2172 0.014

    Staff ServicePolite and courteousservers (waiters)

    1825 years 2534 years .2471* 0.10109 0.015

    3544 years .5001* 0.15821 0.002

    4554 years .4577* 0.20216 0.024

    Staff Outlook

    Neat and clean lookingstaff

    1825 years 3544 years .4205* 0.15249 0.006

    2534 years 3544 years .3198* 0.1539 0.038

  • 8/13/2019 2012-Rauf & Butt

    15/31

    54 A.A. Rauf and I. Butt

    Table 5 Results of multivariate analysis of variance with education as an independent variable

    Education

    DependentVariable

    (I)HouseholdIncome

    (J)HouseholdIncome

    MeanDifference(IJ)

    Std.Error

    Sig.

    Quality

    Freshnessoffood

    HomeSchooling

    Matric/O-Level

    1.7857*

    0.52793

    0.001

    Intermediate/A-Levels

    1.2419*

    0.50173

    0.014

    Graduate/B.A

    1.6471*

    0.49673

    0.001

    Postgraduate

    1.5942*

    0.49739

    0.001

    Matric/O-Level

    Intermediate/A-Levels

    .5438*

    0.20665

    0.009

    Intermediate/A-Levels

    Graduate/B.A

    .405

    1*

    0.10361

    0

    Postgraduate

    .352

    3*

    0.10678

    0.001

    CleanlinessandComfort

    Comfortableseatin

    g

    Matric/O-Level

    Graduate/B.A

    .516

    6*

    0.23202

    0.027

    Overallveryclean

    Intermediate/A-Levels

    Graduate/B.A

    .281

    5*

    0.10651

    0.009

    Postgraduate

    .267

    1*

    0.10965

    0.015

    Ambience

    Lotsofspaceinsid

    e

    HomeSchooling

    Matric/O-Level

    1.500

    0*

    0.73192

    0.041

    Intermediate/A-Levels

    1.383

    3*

    0.69597

    0.048

    Graduate/B.A

    1.420

    1*

    0.68869

    0.04

    Graduate/B.A

    Postgraduate

    .313

    0*

    0.11065

    0.005

    Childcare

    Toyswithchildren

    meal

    HomeSchooling

    Matric/O-Level

    2.200

    0*

    1.06642

    0.04

    Intermediate/A-Levels

    2.725

    5*

    0.99241

    0.006

    Graduate/B.A

    2.878

    4*

    0.98006

    0.004

    Postgraduate

    2.512

    4*

    0.98151

    0.011

    Graduate/B.A

    Postgraduate

    .366

    0*

    0.16873

    0.031

    Childrenplayarea

    HomeSchooling

    Intermediate/A-Levels

    2.402

    0*

    0.99016

    0.016

    Graduate/B.A

    2.432

    4*

    0.97784

    0.013

    Intermediate/A-Levels

    Postgraduate

    .645

    8*

    0.22933

    0.005

  • 8/13/2019 2012-Rauf & Butt

    16/31

    Consumer perceptions of foreign fast food restaurants 55

    Table 5 Results of multivariate analysis of variance with education as an independent variable

    (continued)

    Education

    DependentVariable

    (I)HouseholdIncome

    (J)HouseholdIncome

    MeanDifference(IJ)

    Std.Error

    Sig.

    Presentation&Healthiness

    Nutritionvalueoffoo

    d

    Matric/O-Level

    Intermediate/A-Levels

    1.0576*

    0.38548

    0.006

    Graduate/B.A

    .7669*

    0.36247

    0.035

    Location&Price

    Pricescomparableto

    similar

    restaurants

    Matric/O-Level

    Graduate/B.A

    .5418*

    0.26692

    0.043

    Staffservice

    Politeandcourteousservers

    (waiters)

    Intermediate/A-Levels

    Postgraduate

    .3233*

    0.14108

    0.022

    Clearcommunication

    while

    takingorders

    HomeSchooling

    Matric/O-Level

    1.3571*

    0.68652

    0.049

    Intermediate/A-Levels

    1.5806*

    0.65246

    0.016

    Graduate/B.A

    1.5706*

    0.64595

    0.015

    Postgraduate

    1.8381*

    0.64679

    0.005

    Intermediate/A-Levels

    HomeSchooling

    1.5806*

    0.65246

    0.016

    Graduate/B.A

    HomeSchooling

    1.5706*

    0.64595

    0.015

    Postgraduate

    .2675*

    0.10385

    0.01

    StaffOutlook

    Neatandcleanlookingstaff

    HomeSchooling

    Postgraduate

    1.2695*

    0.63684

    0.047

  • 8/13/2019 2012-Rauf & Butt

    17/31

    56 A.A. Rauf and I. Butt

    Table 6 Results of multivariate analysis of variance with gender as an independent

    variable

    Gender

    Dependent Variable Type III Sum of Squares df Mean Square F Sig.

    Cleanliness and Comfort

    Clean washrooms 2.960264224 1 2.960264224 4.150687 0.042

    Overall very clean 2.156476809 1 2.156476809 4.214667 0.041

    Staff outlook

    Friendliness of staff 3.13611082 1 3.13611082 3.86903 0.05

    Table 7 Results of multivariate analysis of variance with household size as an independent

    variable

    Household Size

    Dependent Variable(I) Household

    Income(J) Household

    IncomeMean Difference

    (IJ)Std. Error Sig.

    Cleanliness and Comfort

    Comfortableseating

    2 or less persons More than 8 .7101* 0.28617 0.014

    35 persons More than 8 .6134* 0.25674 0.017

    68 persons More than 8 .5970* 0.2642 0.024

    Location & Price

    Convenient, easilyaccessible location 68 persons More than 8 .5686* 0.27687 0.041

    Staff Service

    Quick handlingof complaints

    35 persons 68 persons .5103* 0.25611 0.047

    Polite andcourteousservers (waiters)

    2 or less persons More than 8 .6111* 0.3072 0.047

    35 persons More than 8 .6024* 0.27238 0.028

    68 persons More than 8 .6471* 0.28126 0.022

    Clearcommunication

    while taking orders

    35 persons More than 8 .6456* 0.26914 0.017

    Staff outlook

    Friendlinessof staff

    2 or less persons More than 8 .6081* 0.30123 0.044

    35 persons More than 8 .5757* 0.26794 0.032

    68 persons More than 8 .5481* 0.27645 0.048

  • 8/13/2019 2012-Rauf & Butt

    18/31

    Consumer perceptions of foreign fast food restaurants 57

    Table 8 Results of multivariate analysis of variance with income as an independent variable

    Income

    DependentVariable

    (I)HouseholdIncome

    (J)HouseholdIncome

    MeanDifference(IJ)

    Std.Error

    Sig.

    Quality

    Freshnessoffood

    50,00074,999

    100,000andover

    0.217019822

    0.102406

    0.035

    CleanlinessandComfort

    Comfortableseating

    Lessthan25,000

    50,00074,999

    .3521*

    0.15678

    0.025

    Ambience

    BrightLights

    Lessthan25,000

    100,000andover

    .4216*

    0.19243

    0.029

    25,00049,999

    100,000andover

    .4494*

    0.16873

    0.008

    BackgroundMusic

    Lessthan25,000

    100,000andover

    .5409*

    0.20238

    0.008

    25,00049,999

    100,000andover

    .3824*

    0.17745

    0.032

    Lotsofspaceinside

    Lessthan25,000

    25,00049,999

    .4941*

    0.19376

    0.011

    100,000andover

    .4701*

    0.167

    0.005

    25,00049,999

    Lessthan25,000

    .4941*

    0.19376

    0.011

    Moderninteriordes

    ign

    Lessthan25,000

    100,000andover

    .4620*

    0.20241

    0.023

    75,00099,999

    100,000andover

    .4659*

    0.18749

    0.013

    Decorationsonthewall

    Lessthan25,000

    100,000andover

    .5288*

    0.1993

    0.008

    Childcare

    Childrenmenuavailable

    Lessthan25,000

    25,00049,999

    .7945*

    0.33506

    0.018

    100,000andover

    .7921*

    0.28549

    0.006

    25,00049,999

    100,000andover

    .5043*

    0.21546

    0.02

    Toyswithchildrenmeal

    Lessthan25,000

    100,000andover

    .6790*

    0.27694

    0.015

    Childrenplayarea

    Lessthan25,000

    100,000andover

    .5614*

    0.28217

    0.047

    50,00074,999

    100,000andover

    .4810*

    0.21295

    0.025

    Presentation

    Lowcalorie(low-fat)food

    Lessthan25,000

    100,000andover

    .6553*

    0.2271

    0.004

    25,00049,999

    100,000andover

    .4850*

    0.19987

    0.016

    Nutritionvalueoffo

    od

    25,00049,999

    100,000andover

    .4664*

    0.20144

    0.021

    50,00074,999

    100,000andover

    .5083*

    0.18295

    0.006

  • 8/13/2019 2012-Rauf & Butt

    19/31

    58 A.A. Rauf and I. Butt

    Table 9 Results of multivariate analysis of variance with marital status as an independent

    variable

    MaritalStatus

    DependentVariable

    (I)HouseholdIncome

    (J)HouseholdIncome

    MeanDifference(I

    J)

    Std.Error

    Sig.

    DependentVariable

    TypeIIISumofSquares

    df

    MeanSquare

    F

    Sig.

    Ambience

    Lotsofspaceinside

    20.53264827

    1

    20.53264827

    23.06768

    2E-06

    Moderninteriordesign

    5.965867957

    1

    5.965867957

    4.44134

    0.036

    Childcare

    Childrenmenuavailable

    83.25241487

    1

    83.25241487

    43.99635

    1E-10

    Toyswithchildrenmeal

    73.25635913

    1

    73.25635913

    40.82763

    5E-10

    Childrenplayarea

    114.9831162

    1

    114.9831162

    66.56238

    7E-15

    PresentationandHealth

    Presentationoffood

    10.56176528

    1

    10.56176528

    10.17182

    0.002

    Lowcalorie(low-fat)food

    15.8334747

    1

    15.8334747

    9.543034

    0.002

    Nutritionvalueoffood

    10.06792516

    1

    10.06792516

    5.857223

    0.016

    Staffservice

    Politeandcourteousservers(waiters)

    14.72580506

    1

    14.72580506

    17.83605

    3E-05

    StaffOutlook

    Friendlinessofstaff

    4.053627201

    1

    4.053627201

    5.066268

    0.025

  • 8/13/2019 2012-Rauf & Butt

    20/31

    Consumer perceptions of foreign fast food restaurants 59

    Table 10 Results of multivariate analysis of variance with occupation as an independent

    variable

    Occupation

    DependentVariable

    (I)HouseholdIncome

    (J)HouseholdIncome

    MeanDifference(IJ)

    Std.Error

    Sig.

    Ambience

    BrightLights

    Student

    Housewife

    .4941*

    0.22725

    0.03

    BackgroundMusic

    Self-employed

    Businessowner

    .842

    4*

    0.32843

    0.011

    Student

    .630

    8*

    0.2985

    0.035

    Housewife

    .771

    2*

    0.36219

    0.034

    Moderninteriordesign

    Salariedemployee

    Self-employed

    .6188*

    0.29884

    0.039

    Self-employed

    Student

    .681

    5*

    0.29499

    0.021

    Decorationsonthewall

    Government

    Student

    .665

    7*

    0.32754

    0.043

    Childcare

    Childrenmenuavailable

    Salariedemployee

    Government

    1.67

    56*

    0.4147

    0

    Student

    .636

    3*

    0.17649

    0

    Self-employed

    Government

    1.0208

    0.51919

    0.05

    Student

    1.2911*

    0.35879

    0

    Businessowner

    Government

    1.21

    97*

    0.44277

    0.006

    Student

    1.0922*

    0.23497

    0

    Government

    Student

    2.3119*

    0.40894

    0

    Housewife

    1.3141*

    0.47447

    0.006

    Student

    Housewife

    .9978*

    0.29034

    0.001

    Toyswithchildrenmeal

    Salariedemployee

    Government

    1.02

    83*

    0.4179

    0.014

    Student

    .395

    5*

    0.17785

    0.027

    Housewife

    .6117*

    0.30069

    0.043

    Self-employed

    Student

    1.0071*

    0.36156

    0.006

    Businessowner

    Student

    .620

    8*

    0.23679

    0.009

    Government

    Student

    1.4238*

    0.4121

    0.001

    Student

    Housewife

    1.00

    71*

    0.29258

    0.001

  • 8/13/2019 2012-Rauf & Butt

    21/31

    60 A.A. Rauf and I. Butt

    Table 10 Results of multivariate analysis of variance with occupation as an independent

    variable (continued)

    Occupation

    DependentVariable

    (I)HouseholdIncome

    (J)HouseholdIncome

    MeanDifference(IJ)

    Std.Error

    Sig.

    Childcare

    Childrenplayarea

    Salariedemployee

    Self-employed

    .8883*

    0.35761

    0.013

    Government

    1.38

    83*

    0.40594

    0.001

    Student

    .761

    7*

    0.17276

    0

    Self-employed

    Businessowner

    1.0000*

    0.38852

    0.01

    Student

    1.6500*

    0.3512

    0

    Businessowner

    Government

    1.50

    00*

    0.43341

    0.001

    Student

    .650

    0*

    0.23001

    0.005

    Government

    Student

    2.1500*

    0.4003

    0

    Housewife

    1.0000*

    0.46445

    0.032

    Student

    Housewife

    1.15

    00*

    0.2842

    0

    PresentationandHealth

    Varietyofdishesinthe

    menu

    Salariedemployee

    Student

    0.243

    0.12398

    0.051

    Housewife

    .4433*

    0.21609

    0.041

    Self-employed

    Student

    .509

    6*

    0.24996

    0.042

    Businessowner

    Housewife

    0.4796

    0.24411

    0.05

    Government

    Student

    .691

    8*

    0.29711

    0.02

    Student

    Housewife

    .6863*

    0.21099

    0.001

    Presentationoffood

    Salariedemployee

    Businessowner

    0.3275

    0.1696

    0.054

    Student

    .395

    6*

    0.12051

    0.001

    Businessowner

    Student

    .723

    2*

    0.16342

    0

    Government

    Student

    .862

    9*

    0.28879

    0.003

    Student

    Housewife

    .5140*

    0.20509

    0.013

    Lowcalorie(low-fat)fo

    od

    Salariedemployee

    Student

    .621

    0*

    0.15401

    0

    Businessowner

    Student

    .607

    8*

    0.20885

    0.004

    Government

    Student

    .854

    3*

    0.36908

    0.021

    Student

    Housewife

    0.4752

    0.2621

    0.071

    Nutritionvalueoffood

    Salariedemployee

    Student

    .467

    1*

    0.15645

    0.003

    Businessowner

    Student

    .515

    5*

    0.21215

    0.016

    Government

    Student

    1.0100*

    0.37492

    0.007

  • 8/13/2019 2012-Rauf & Butt

    22/31

    Consumer perceptions of foreign fast food restaurants 61

    Table 10 Results of multivariate analysis of variance with occupation as an independent

    variable (continued)

    Occupation

    DependentVariable

    (I)HouseholdIncome

    (J)HouseholdIncome

    MeanDifference(IJ)

    Std.Error

    Sig.

    Location&Price

    Convenient,easilyaccessiblelocation

    Salariedemployee

    Housewife

    .3891*

    0.19255

    0.044

    Self-employed

    Businessowner

    .4909*

    0.24889

    0.049

    Student

    0.3933

    0.2234

    0.079

    Housewife

    .7256*

    0.27373

    0.008

    Government

    Housewife

    0.4905

    0.29467

    0.097

    Student

    Housewife

    0.3323

    0.18857

    0.079

    Locatedclosetotheho

    use

    Salariedemployee

    Government

    0.616

    0.33122

    0.064

    Businessowner

    Government

    0.6

    776

    0.35768

    0.059

    Government

    Student

    0.6199

    0.32723

    0.059

    Housewife

    0.7286

    0.38785

    0.061

    Staffservice

    Politeandcourteousservers(waiters)

    Salariedemployee

    Student

    .4047*

    0.10757

    0

    Self-employed

    Student

    0.3957

    0.21811

    0.07

    Businessowner

    Student

    .4652*

    0.14551

    0.002

    Government

    Student

    .6227*

    0.23571

    0.009

    Student

    Housewife

    .48

    15*

    0.18697

    0.01

    Clearcommunicationw

    hiletakingorders

    Salariedemployee

    Student

    .2657*

    0.10892

    0.015

    Staffoutlook

    Friendlinessofstaff

    Salariedemployee

    Student

    .2548*

    0.10825

    0.019

    Businessowner

    Student

    .3141*

    0.14484

    0.031

    Neatandcleanlooking

    staff

    Salariedemployee

    Businessowner

    0.2

    392

    0.14483

    0.099

    Student

    .2676*

    0.10463

    0.011

    Businessowner

    Student

    .5068*

    0.13999

    0

    Government

    Student

    .4876*

    0.23006

    0.035

    Student

    Housewife

    0.3

    447

    0.17971

    0.056

  • 8/13/2019 2012-Rauf & Butt

    23/31

    62 A.A. Rauf and I. Butt

    Table 11 Results of multivariate analysis of variance with price expectation as an independent

    variable

    Pricefo

    rafastfoodmealshouldbe

    DependentVariable

    (I)HouseholdIncom

    e

    (J)HouseholdIncome

    MeanDiffer

    ence(IJ)

    Std.Error

    Sig.

    Quality

    Freshnessoffood

    Lessthan200

    500599

    .34

    55*

    0.17026

    0.043

    Cleanlinessandcomfort

    Comfortableseating

    Lessthan200

    600andabove

    1.23

    08*

    0.59969

    0.041

    200299

    600andabove

    1.18

    24*

    0.59414

    0.047

    300399

    600andabove

    1.29

    03*

    0.59699

    0.031

    500599

    600andabove

    1.40

    00*

    0.61951

    0.024

    Ambience

    Backgroundmusic

    Lessthan200

    600andabove

    2.39

    39*

    0.83335

    0.004

    200299

    600andabove

    2.26

    19*

    0.82587

    0.006

    300399

    600andabove

    2.38

    71*

    0.82978

    0.004

    400499

    600andabove

    2.27

    50*

    0.84128

    0.007

    500599

    600andabove

    2.00

    00*

    0.86795

    0.022

    Lotsofspaceinside

    Lessthan200

    400499

    .38

    86*

    0.19368

    0.045

    Moderninteriordesign

    Lessthan200

    500599

    .64

    80*

    0.31212

    0.039

    200299

    500599

    .77

    84*

    0.29207

    0.008

    Decorationsonthewall

    Lessthan200

    600andabove

    1.63

    64*

    0.81092

    0.044

    300399

    600andabove

    1.66

    13*

    0.80745

    0.04

    500599

    600andabove

    1.97

    06*

    0.84459

    0.02

    Childcare

    Childrenmenuavailab

    le

    200299

    600andabove

    2.3562*

    1.02561

    0.022

    300399

    600andabove

    2.0625*

    1.03163

    0.046

    400499

    600andabove

    2.4677*

    1.05133

    0.02

  • 8/13/2019 2012-Rauf & Butt

    24/31

    Consumer perceptions of foreign fast food restaurants 63

    Table 11 Results of multivariate analysis of variance with price expectation as an independent

    variable (continued)

    Pricefora

    fastfoodmealshouldbe

    DependentVariable

    (I)HouseholdIncome

    (J)HouseholdIncome

    MeanDifferen

    ce(IJ)

    Std.Error

    Sig.

    Presentationandhealth

    Varietyofdishesintheme

    nu

    Lessthan200

    300399

    .3385*

    0.16907

    0.046

    400499

    .4462*

    0.20922

    0.034

    600andabove

    1.646

    2*

    0.74741

    0.028

    200299

    600andabove

    1.4529

    0.74049

    0.05

    Lowcalorie(low-fat)food

    Lessthan200

    200299

    .4534

    *

    0.1876

    0.016

    200299

    500599

    .7098*

    0.31885

    0.027

    600andabove

    1.876

    5*

    0.91495

    0.041

    Nutritionvalueoffood

    200299

    500599

    .8209*

    0.32383

    0.012

    300399

    500599

    .8455*

    0.33702

    0.013

    400499

    500599

    .7694*

    0.37081

    0.039

    Locationandprice

    Convenient,easilyaccessiblelocation

    300399

    600andabove

    1.1429

    0.63874

    0.074

    500599

    600andabove

    1.1

    0.66267

    0.098

    Locatedclosetothehouse

    Lessthan200

    300399

    0.371

    4

    0.19445

    0.057

    Pricescomparabletosimilarrestaurants

    Lessthan200

    300399

    .3736

    *

    0.1555

    0.017

    400499

    .3846

    *

    0.19395

    0.048

    500599

    .5038

    *

    0.24485

    0.04

    600andabove

    1.153

    8

    0.68742

    0.094

  • 8/13/2019 2012-Rauf & Butt

    25/31

    64 A.A. Rauf and I. Butt

    Table 11 Results of multivariate analysis of variance with price expectation as an independent

    variable (continued)

    Priceforafastfoodmealshouldbe

    DependentVariable

    (I)HouseholdIncome

    (J)HouseholdIncome

    MeanDifference(IJ)

    Std.Error

    Sig.

    Locationandprice

    Lowprices

    Lessthan200

    200299

    .4038*

    0.14742

    0.006

    300399

    .6396*

    0.1643

    0

    400499

    .6615*

    0.20492

    0.001

    500599

    1.273

    1*

    0.2587

    0

    600andabove

    1.623

    1*

    0.72632

    0.026

    200299

    300399

    0.2358

    0.13128

    0.073

    500599

    .8693*

    0.23909

    0

    600andabove

    1.2193

    0.71957

    0.091

    300399

    500599

    .6335*

    0.24985

    0.012

    400499

    500599

    .6115*

    0.27825

    0.029

    Staffservice

    Clearcommunicationwhi

    letakingorders

    Lessthan200

    600andabove

    1.2687

    0.65986

    0.055

    200299

    600andabove

    1.1471

    0.65404

    0.08

    300399

    600andabove

    1.1087

    0.65726

    0.092

    400499

    600andabove

    1.3

    0.66628

    0.052

    500599

    600andabove

    1.25

    0.68196

    0.068

    Staffoutlook

    Friendlinessofstaff

    200299

    300399

    0.22

    15

    0.11651

    0.058

    Neatandcleanlookingsta

    ff

    200299

    500599

    .444

    7*

    0.20974

    0.035

  • 8/13/2019 2012-Rauf & Butt

    26/31

    Consumer perceptions of foreign fast food restaurants 65

    9 Discussion and implications

    Today consumers have many choices while selecting fast food restaurants. Thus, to

    achieve sustainable competitive advantage, companies need to recognise and understand

    the varying needs and wants of fast food consumers (Bhuian, 2000). Fast food restaurant

    attributes have particular usefulness for marketers in the food retail industry. By

    discerning which attributes matter most to consumers, marketers can create campaigns

    that position their brands effectively using those attributes. This knowledge can help

    those foreign or local fast food franchises that are already established in Pakistan as well

    as those companies that are looking to set up a new in the country. In addition, consumer

    preference data can also be useful to those gourmet or casual local dining brands like

    Ziafat or Mirchi that may wish to expand into fast food operations. Current fast food

    chains can also use preference information to keep check of in-house operations and

    implement sterner controls on those attributes that influence consumer choice ofpreference. As Pakistan is a rapidly developing country, these consumer insights could

    provide significant leverage to capture market share in a booming industry.

    Oyewoles (2007) result that frequency of visits to fast food restaurants is affected by

    age is in line with our findings from the Chi-square analysis. In addition, our research

    confirmed Oyewoles finding that young adults tend to be more frequent samplers of fast

    food than older people. This study also showed that household size and occupation were

    important factors in determining frequency of patronage. However unlike Oyewoles

    study, our analysis could not support that gender, income and marital status also

    influence frequency of patronage to fast food outlets in Pakistan. Moreover, similar to

    their Indian counterparts, we saw that younger Pakistani people tended to be more

    frequent visitors to fast food restaurants. Moreover, households with threefive people,

    students and salaried employees all appeared to frequent fast food outlets more than other

    demographic groups. Similarly the older generation (age 35 and above), people who are

    self-employed, government servants and housewives were less inclined to go to fast food

    restaurants. Also people living alone, couples and people living in a group of more than

    eight were less frequent visitors to fast food outlets. Managers who wish to target heavy

    indulgers of fast food would find these conclusions valuable.

    In the independent samples t-test analysis, respondents who were at a fast food

    restaurant rated fast food outlets higher on ambience, childcare, nutrition, health care and

    presentation than those who were at a traditional restaurant. This important finding shows

    that these attributes of preference may determine why people end up visiting a fast food

    outlet when deciding to choose between two restaurant types.

    The results of the factor analysis showed key attributes for Pakistani consumers when

    making a selection decision about a fast food outlet. These were quality, cleanliness and

    comfort, ambience, childcare, presentation and healthiness, location and price, staffservice and staff outlook. These results match Kivelas (1997) observation that showed

    food quality is among the most often mentioned variables for dining out occasions for

    Hong Kong consumers. Our findings also corroborate Lee and Ulgados (1997) results

    that indicated Korean consumers consider reliability and lower prices as the most

    significant variables for service. Our results are also in line with those of Bhuians (2000)

    study. Results show that both Pakistani and Saudi consumers feel the attributes of

    nutrition, price, taste, speed, variety and location friendliness are significant in

    determining their choice of fast food restaurant. We also observe similarities in Pakistani

  • 8/13/2019 2012-Rauf & Butt

    27/31

    66 A.A. Rauf and I. Butt

    preferences with those of Indian consumers as reported by Chavadi and Kokatnur (2008)

    and Goyal and Singh (2007). Both Pakistani and Indian consumers are affected byphysical evidence, value pricing, high-quality service and good quality food.

    The MANOVA results revealed that age, gender, marital status, education, household

    size, income and occupation and price expectation influenced the ratings of all attribute

    variables for selection of a fast food restaurant. Findings from Bhuian (2000) and

    Oyewole (2007) concur with our MANOVA conclusions.

    In the MANOVA tests, our analysis revealed that some groups found certain

    attributes more important than other groups. Managerial implications for these are

    obvious, yet vital. While positioning their brands, marketing think-tanks would want to

    present certain attributes more vividly in their promotion schemes depending on who

    they are targeting. For instance if a certain brand is targeted to women, it could

    differentiate itself on cleanliness and friendliness of staff. In the same vein, we noticed

    that students, when compared to other occupation groups, seemed to be least botheredabout staff outlook and staff service. Hence, marketers may ignore this aspect in

    promotional messages if students are meant to be the primary targets.

    10 Limitations and future research avenues

    Since the fast food market in Pakistan is still small (yet rapidly expanding), it is not

    embedded in the countrys culture. Lee and Ulgados (1997) research showed that the

    more fast food restaurants become a part of culture, the more the promotional emphasis

    shifts from brand experience to the price and consistency of quality. This shift can

    become the subject of future research.

    The study was conducted in the city of Lahore, which may or may not be

    representative of Pakistani fast food preference in general. Future studies can aim toexplore preferences in Karachi and the twin cities of Islamabad and Rawalpindi. These

    cities, along with Lahore, comprise Pakistans major urban centres.

    Follow-up research may also embark on another angle of the fast food industry in

    emerging markets, i.e. the influence of national identity and patriotism on the perception

    of fast food restaurants. Feelings of anti-Americanism in Pakistan have been reported

    frequently in the past. Further studies may intend to see whether this translates into

    refraining from purchase of US products and services.

    To increase generalisability, samples in subsequent studies should include those

    interviewed during lunchtime or afternoon. Investigators may also wish to interview

    respondents in different seasons like winter and summer.

    Further research could also look at prioritising attributes that affect consumer choice

    of restaurant. Additional areas of interest may include expenditure patterns, types of fastfood preferred and types of meals preferred.

    Subsequent studies could also explore how various fast food brands differ on various

    attributes of consumer perception of and brand loyalty.

    Researchers may also conduct an in-depth study on a particular attribute like location.

    This would see how far consumers are willing to go to dine at a particular fast food place

    and what characteristics, e.g. income, may be important factors in influencing such

    preferences.

  • 8/13/2019 2012-Rauf & Butt

    28/31

    Consumer perceptions of foreign fast food restaurants 67

    We used a judgemental sample for this research. Further studies could use random

    samples. Future surveys could also be conducted in Urdu, the national language ofPakistan, instead of English. In addition, subsequent studies could also survey

    perceptions both before and after a meal is consumed. Moreover, further research could

    look at how perceptions vary when a survey is carried out on-premises than when it is

    conducted off-premises.

    An additional investigation could explore with whom and when customers make the

    decision to visit a particular restaurant.

    Follow-up studies may also compare other types of restaurants (traditional, Chinese,

    etc.) with foreign fast food brands. Another avenue for research could explore how

    Pakistani consumers perceive offerings like McDonalds Chicken McArabia and Pizza

    Huts Chicken Tikka pizza that are customised to local taste buds.

    Finally an additional cross-national study could see how Pakistani perceptions differ

    from those of consumers in another developing or developed country.

    References

    Akbay, C., Tiryaki, G.Y. and Gul. A. (2007) Consumer characteristics influencing fast foodconsumption in Turkey,Food Control, Vol. 18, pp.904913.

    Anderson, P.M. and He, H. (1999) Culture and the fast food marketing mix in the PeoplesRepublic of China and the USA: implications for research and marketing, Journal ofInternational Consumer Marketing, Vol. 11, No. 1, pp.7795.

    Bender, A.E. and Bender, D.A. (1995) A Dictionary of Food and Nutrition, 2nd ed., OxfordUniversity Press, Oxford.

    Bhuian, S.N. (2000) Saudi consumer preference of fast food outlets: the influence of restaurantattributes,Journal of Food Products Marketing, Vol. 6, No. 1, pp.3952.

    Chavadi, C.A. and Kokatnur, S.S. (2008) Consumer expectation and perception of fast foodoutlets: an empirical study in Davangere, The Icfai University Journal of Services Marketing,Vol. 1, No. 2, pp.621.

    Euromonitor International (2008) Consumer LifestylePakistan. Available online at:http://www.marketresearch.com/ (accessed on 8 September 2009).

    Getchee Solutions (2009) GetcheeEmerging Market News: News and Tips for Expansion inChina, India, and Southeast Asia. Available online at: http://blog.getchee.com/ (accessed11 May 2010).

    Goyal, A. and Singh, N.P. (2007) Consumer perception about fast food in India: an exploratorystudy,British Food Journal, Vol. 109, pp.182195.

    Grazin, C.L. and Olsen, J.E. (1997) Market segmentation for fast-food restaurants in an era ofhealth consciousness, Journal of Restaurant and Foodservice Marketing, Vol. 2, No. 2,pp.120.

    Kara, A., Kaynak, E. and Kucukemiroglu, O. (1995) Marketing strategies for fast-food restaurants:a customer view, International Journal of Contemporary Hospitality Management, Vol. 7,No. 4, pp.1622.

    Keillor, B.D. and Fields, D.M. (1996) Perceptions of a foreign service offering in an overseasmarket: the case of fast food in Hong Kong, Journal of International Consumer Marketing,Vol. 9, No. 1, pp.83104.

    Kivela, J.J. (1997) Restaurant marketing: selection and segmentation in Hong Kong,International Journal of Contemporary Hospitality Management, Vol. 9, No. 3, pp.116123.

    Lee, M. and Ulgado, F.M. (1997) Consumer evaluations of fast-food services: a cross nationalcomparison, The Journal of Services Marketing, Vol. 11, No. 1, pp.3952.

  • 8/13/2019 2012-Rauf & Butt

    29/31

    68 A.A. Rauf and I. Butt

    MSN.com (2010) MSN Money. Available online at: http://www.msn.com/ (accessed on

    30 April 2010).Oyewole, P. (2007) Fast food marketing and the African American consumers: the impact of

    socio-economic and demographic characteristics, Journal of International ConsumerMarketing, Vol. 19, No. 4, pp.75108.

    Particelli, M.C. (1990) A global arena,Journal of Consumer Marketing, Vol. 7, No. 4, pp.4352.

    Planet Retail Ltd. (2009a) Company profile: Carrefour in Pakistan. Available online at:http://www.planetretail.net/ (accessed on 12 November 2009).

    Planet Retail Ltd. (2009b) Grocery Retailing in Pakistan. Available online at:http://www.planetretail.net/ (accessed on 12 November 2009).

    PricewaterhousecoopersSouth Africa (2010) Asia Represents The Best Growth Prospects forRetailers and Consumer-Products Companies. Available online at: http://www.pwc.com/za/(accessed on 11 May 2010).

    Reilly, M.D. and Wallendorf, M. (1987, September) A comparison of group differences in food

    consumption using household refuse, Journal of Consumer Research, Vol. 14, No. 2,pp.289293.

    Report Buyer (2008) Report: China Fast Food Analysis (Rcs00496). Available online at:http://www.reportbuyer.com/ (accessed on 11 May 2010).

    ResearchandMarkets.com (2010) Fast Food: Global industry guideMarket research reportsResearch and markets. Available online at: http://www.researchandmarkets.com/ (accessedon 11 May 2010).

    Tiwari, P. and Verma, H. (2008) Consumer perception about fast food in India: an empirical studyof Dehradun City, The Icfai University Journal of Consumer Behavior, Vol. 3, No. 4,pp.8091.

    Wikinvest (2009) Industry: Fast food restaurants (QSR). Available online at: http://www.wikinvest.com/ (accessed on 11 May 2010).

  • 8/13/2019 2012-Rauf & Butt

    30/31

    Consumer perceptions of foreign fast food restaurants 69

    Appendix A: Attributes selected for study

    Attribute

    Category

    Chavadiand

    Kakatnur(2008)

    Tiw

    ariand

    Verm

    a(2008)

    Oweyole(2007)

    Bhuian(2000)

    Karaetal.(1995)

    Kivela(1997)

    Total

    Cleanliness(Hygiene)

    Environment

    x

    x

    x

    x

    x

    x

    6

    Varietyoffood/menu

    Food

    x

    x

    x

    x

    x

    5

    Price

    Price

    x

    x

    x

    x

    x

    5

    Servicespeed

    Service

    x

    x

    x

    x

    4

    Tasteoffood

    Food

    x

    x

    x

    x

    4

    Location

    Convenience

    x

    x

    x

    3

    Friendlinessofpersonnel

    Service

    x

    x

    x

    3

    Ambience

    Environment

    x

    x

    x

    3

    Qualityoffood

    Food

    x

    x

    x

    3

    Parkingspace/facility

    Convenience

    x

    x

    2

    Deliveryservice

    Delivery

    x

    x

    2

    Seatingcapacity/facilities

    Environment

    x

    x

    2

    Comforts

    Other

    x

    x

    2

    Billing

    Billing

    x

    1

    Creditcards

    Billing

    x

    1

    Serviceestablishment

    BrandName

    x

    1

    Prestige

    BrandName

    x

    1

    Loveofchildren

    Children

    x

    1

    Noveltiesforchildren

    Children

    x

    1

    Easeofcomplaint

    Service

    x

    1

    Nearness

    Convenience

    x

    1

    Homedelivery

    Delivery

    x

    1

  • 8/13/2019 2012-Rauf & Butt

    31/31

    70 A.A. Rauf and I. Butt

    Appendix A: Attributes selected for study (continued)

    Attribute

    Category

    Chavadiand

    Kakatnur(2008)

    Tiw

    ariand

    Verm

    a(2008)

    Oweyole(2007)

    Bhuian(2000)

    Karaetal.(1995)

    Kivela(1997)

    Total

    Communication

    Service

    x

    1

    Courtesy

    Service

    x

    1

    Employeebehaviour

    Service

    x

    1

    Expeditiousness

    Service

    x

    1

    Promptservice

    Service

    x

    1

    Seatingarrangement

    Environment

    x

    1

    Novelties

    Food

    x

    1

    Nutrition

    Food

    x

    1

    Caloriecontent

    Food

    x

    1

    Health-consciousness

    Food

    x

    1

    Businesshours

    Hours

    x

    1

    Earlyopening

    Hours

    x

    1

    Availability

    Other

    x

    1

    Coupons

    Other

    x

    1

    Orderliness

    Other

    x

    1

    Packaging

    Other

    x

    1

    Reliability

    Other

    x

    1

    Takingorderoverphone

    Other

    x

    1

    Convenience

    Other

    x

    1

    Newexperience

    Other

    x

    1

    Competentwaiting

    Service

    x

    1

    Prompthandlingof

    complaint(s)

    Service

    x

    1