Chapter 1

PROBLEM AND ITS BACKGROUND

Introduction

A marketing strategy is a process or model to allow a company or organization to

focus limited resources on the best opportunities to increase sales and thereby achieve a

sustainable, competitive advantage (Kazoo Associates, 2017). Companies with the most

effective marketing efforts thoroughly understand their customers and create a product or

service to meet the needs and satisfaction of the customer while using the best channels

for communicating to the target market.

Fast food industry is a subsector of the larger restaurant industry. The three (3)

selected fast food chain in the Philippines serves good, clean, and cheap food in a

moment of time. Fast food chains in the Philippines commonly use radio, television, and

billboards to promote their products. The success of fast food industry in the Philippines

can be attributed to the factors of standardized procedures, limited menus, placing

emphasis on value speed and efficient service and franchising. The fast food industry has

changed the urban lifestyle because it developed well in cities but fast food companies

are reluctant to develop a market in the suburban. (KJ Chen, 2008)

Fast Food Chain A, Fast Food Chain B and Fast Food Chain C are well-known

fast food chains in the country. They already have numerous customers but they continue

performing marketing strategies in order to gain more customers. They perform different

marketing strategies in order to meet the satisfaction level of their customers. Meeting the

needs of the customers are not that easy. They use contemporary marketing approach
which builds a bridge between the business and the customers through gamification.

Jollibee is one of the well-known fast food chain in the country. Fast Food Chain A used

to have kids as their target market but they are also targeting adults. They hold different

marketing strategies that attract potential customers. Next in line is the Fast Food Chain

B. Like Fast Food Chain A they hold numerous marketing strategies to attract more

customers. Lastly is the Fast Food Chain, a Philippine-based restaurant chain. The

concept combines Western fast food service with Chinese food menu.

The study focused on the satisfaction level of the grade 12 students of San Jose

del Monte National High School on the marketing strategies of three fast food chains.

The three fast food chains hold different marketing strategy to attract more customers but

how is it affect the customers in choosing where fast food chain they want to eat. This

study investigates on how the marketing strategies of the three fast food chains affect the

satisfaction level of the customers.

Background of the Study

A fast food restaurant is characterized as quick services of franchise restaurant

chain, which supplied the food quickly after ordering and minimal service offering for

dining and takeout facilities. Fast food also refers to food that can be prepared and served

quickly. Fast food restaurants usually have a walk up counter or drive-thru window where

you order and pick up your food. Typically, fast foods sold in a restaurant or store with

preheated ingredients and serve to the customer in a packaged form for take away.

Customers are generally price sensitive towards purchases of food but those from the

middle to high income group are willing to pay more for the quality foods. According to

Namita Jain (2010), fast food is often the default choice. Not only is it convenient and

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 easy to grab, it's also tasty and cheap. And fast food joints also serve as great teenage

hangout places. Fast food is also popular nowadays because it is cheap, fast, and tasty and

advertisers make it seem healthy, so naturally it seems like a no brainer. Fast food

restaurants are very popular because they serve filling foods that taste good and don't cost

a lot of money.

Customer satisfaction, fast food players recognize the growing consumer group of

millennials, especially those coming from the emerging middle class. The increasingly

on-the-go lifestyles of millennials are a huge opportunity for fast food players to further

highlight their strength in terms of convenience compared to other types of foodservice.

Conceptual Framework

Fast Food Place

1. Demographic Chain A
profile of the Product Customers
respondents Satisfaction Level
Price
1.1 age Fast Food
1.2 gender Chain B Promotion
1.3 monthly People
allowance
Physical
Fast Food
Evidence
Chain C
Process
Figure 1.

Assessment of the Customers’ Level of Satisfaction on the Three Fast Food Chains

using the 7 P’s Marketing Strategy

Figure 1 shows the conceptual framework of the study. As observed in the above

figure, demographic profile of the respondents is needed to consider on gathering data

and it also served as the independent variable of the study. The age, gender, and monthly

allowance are somewhat related on how the respondents perceive the marketing strategies

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of the three (3) fast food chains, as the study of Asamoah and Chovancova about the

theory of consumer behaviour in fast food marketing (2011) says, “Economist believe

that the consumers behave rationally and they if given a chance to choose the best

alternative with their level of income and preference.” After considering the demographic

profile of the respondents, the three fast food chains with list of indicators which

represent as the 7 P’s marketing strategies are needed because this will be the basis of the

respondents’ in ration their level of satisfaction.

Hypothesis

H o: There is no significant relationship between the satisfaction levels of the customers

on the marketing strategies of three fast food chains by gender.

Statement of the Problem

The investigation entitled “Assessment of the Customers’ Level of Satisfaction on

the Three Fast Food Chains’ Marketing Strategy” is an attempt to find answer to the

question “How may the satisfaction level of the customers and the marketing strategies of

three fast food chains related from each other?”

Specifically, it sought answer to the following:

1. What is the demographic profile of the respondents;

1.1 age;

1.2 gender;

1.3 monthly allowance?

2. How often the respondents visit the three fast food chains?

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3. How may the respondents rate their satisfaction level on the 7P’s marketing

strategies of three fast food chains;

3.1 place;

3.2 product;

3.3 price;

3.4 promotion;

3.5 people;

3.6 process;

3.7 physical evidence?

4. What is the overall satisfaction level of the customers on the marketing strategy of each fast

food chain?

5. Is there a significant relationship between the satisfaction levels of the customers

using the marketing strategies of the three fast food chains?

Scope and Limitation

The study was on the assessment of customers’ level of satisfaction on the three

fast food chains namely Fast Food Chain A, B and C in terms of their 7 P’s marketing

strategies which are place, product, price, promotion, people, process and physical

evidence. It involved a sample of Grade 12 students of San Jose del Monte National High

School in academic year 2018-2019. The chosen respondents provide their own

perception on the 7 P’s marketing strategies of the three fast food chains. Since the

instrument of the study will generate data based on the respondents’ perception, there is a

possibility of getting such subjective answer that will not give factual data on the results

of the study. Moreover, the study will not cover the specific marketing strategies of fast

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food chain that they really practiced in their business instead researchers provide

situations or statements that act as indicators of the respondents to rate the 7 P’s

marketing strategies of the three fast food chains.

Importance of the Study

This study will benefit the following:

Entrepreneurs • This investigation will benefit the entrepreneurs to give them an idea on

different marketing strategy and think about having new marketing strategies to promote

and sell their products.

Future Business Owners • This study will help the future business owners to know what

kind of strategies they can use in order to have a successful business specially in food

industry.

Future Researchers • This study will benefit the future researchers to have an overview

about the marketing strategies of different business specifically in food industry and it

can be one of their reference on their research that related to this study.

Definition of Terms

Fast Food Chain also known as Quick Service Restaurant (QSR), refers to the buildings

used for the preparation and sale of ready-to-eat food. Fast Food Chain is characterized

by a limited menu of food prepared quickly (often within a few minutes). And sometimes

cooked in bulk advance and kept hot.

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Marketing Strategies are the process that involves a product or service’s attributes,

pricing, distribution and promotion. All of these activities must work together to assure

successful marketing.

School is the place where the researchers gathered data which is the San Jose del Monte

National High School.

Students of San Jose del Monte National High School are the respondents of the study.