Description
research report
INTRODUCTION
“Studying the effect of emotions on the Customer Satisfaction with special Reference for MCDONALD’S Product.” Traditionally, Satisfaction definitions include ?emotion? (feelings) elements. While it is accepted that satisfaction is closely related to, or includes emotions, it is not clear whether satisfaction is an emotion itself, or consists of several emotions that form the overall satisfaction emotional component. High consumer satisfaction has been linked to positive consequences for the service organization. Hence, it is in the interest of every firm to monitor their customers‘ perceived satisfaction with the service offer and the underlying factors that affect it. In services research, perceived service quality has usually been used as the only indicator of consumer satisfaction. However, there is a growing body of literature which clearly indicates that the positive and negative emotions that consumers associate with the service play an important role in forming satisfaction. Generally, positive emotions have been found to enhance satisfaction. On the other hand, it is also possible to combine high satisfaction with feelings that in other circumstances would have invoked dissatisfaction. The structure of emotions and consumer experienced emotions with advertising there is a lack of research on the
1
linkage between emotions and post-consumption variables like satisfaction. Different segments of consumers may react with different emotions to the same service, and because of service variability, one consumer‘s perceived service quality and experienced emotions may vary from one service encounter to another. It is a challenge for service managers to understand the emotions that their customers experience, and to manage the service in such a way that positive emotions are promoted and negative emotions reduced. In order to better understand the role of emotions in services, research is needed on different types of service encounters. The present study seeks to increase our understanding of how experienced emotions affect consumer satisfaction with a McDonalds‘ product. The main aim of this study was to investigate the structure of emotions as experienced by consumers for McDonald‘s products
2
LITERATURE REVEIW
The word "emotion" dates back to 1579, when it was adapted from the French word émouvoir, which means "to stir up". However, the earliest precursor of the word likely dates back to the very origins of language. Emotions have been described as discrete and consistent responses to internal or external events which have a particular significance for the organism. Emotions are brief in duration and consist of a coordinated set of responses, which may include verbal, physiological, behavioral, and neural mechanisms. Emotions have also been described as biologically given and a result of evolution because they provided good solutions to ancient and recurring problems that faced our ancestors. Emotion can be differentiated from a number of similar constructs within the field of affective neuroscience.
?
Feelings are best understood as a subjective representation of emotions, private to the individual experiencing them.
?
Moods are diffuse affective states that generally last for much longer durations than emotions and are also usually less intense than emotions.
?
Affect is an encompassing term, used to describe the topics of emotion, feelings, and moods together, even though it is commonly used interchangeably with emotion.
3
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."[1] In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses. It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. "Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers‘ expectations.
Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective." Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and representative measures of satisfaction.
4
"In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget motel—even though its facilities and service would be deemed superior in 'absolute' terms." The importance of customer satisfaction diminishes when a firm has increased bargaining power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry that is an oligopoly, where only a few suppliers of a certain product or service exist. As such, many cell phone plan contracts have a lot of fine print with provisions that they would never get away if there were, say, a hundred cell phone plan providers, because customer satisfaction would be way too low, and customers would easily have the option of leaving for a better contract offer. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms.
5
Sandra Kiffin-Petersen, and Geoffrey Soutar from University of Western Australia and Steven Murphy from Carlton University, Canada used a qualitative diary study with 276 sales employees to shed light on the sales experience from the employees‘ perspective. In psychology, ?affect‘ is the experience of feeling or emotion. We often feel emotions in response to specific events, particularly social interactions. Affective events theory (AET) suggests that a salesperson‘s thoughts about how they rate their interaction with a customer (appraisal) will then help determine the emotions they feel. Until now, studies of how an individual‘s positive emotion appraisals fluctuate in real life, or organizational settings, have been thin on the ground.
Emotions were also shown to be contagious – so as well as a great sales interaction making for a happy customer, it was also demonstrated that customer happiness can ?rub off‘ on the sales staff serving them.
"The customer interaction may need to be recast in the context of a dynamic interplay between salespersons and customers, where the affective state of each may influence the other," the authors of the study suggest.
6
INTRODUCTION TO MCDONALDS
McDonald is the world famous fast food restaurant. The idea of McDonald‘s was introduced by two brothers Mac (Maurice) and Dick (Richard) McDonald in California. Their father Patrick McDonald in 1937 was having a hot dog cottage called as Airdrome restaurant near the airport. In 1940 the restaurant was renamed as McDonald‘s Famous Barbeque. In 1940 both brothers came to a conclusion that most of their profit comes from selling hamburger so they made their menu very simple by selling only Hamburger, cheeseburger, soft drinks French fries and apple pie. In 1954 a turning point came in McDonald‘s brother history. Ray Kroc a seller of Multimixer milkshake visited McDonald and he liked the idea of McDonald. McDonalds corporation was build in those times and as a result Kroc started expanding their business by opening franchises for mcdonalds.1960 McDonald‘s advertising campaign ?look for the golden arches? gave McDonald‘s sale a big boost.1965 McDonald corporation went public. In 1968 McDonald open its 1000threstaurant.1974 McDonalds started their business in UK and Newzealand. In 1980 McDonalds was facing very big competition from its rival Burger King and Wendy but McDonald with its innovation was experiencing boost in its sales. In early and mid nineties McDonalds was having decline in their sales and as a result they start improving their business. Taste was improved and some new menu items were introduced. McDonald introduced first Kosher McDonald in Jerusalem and Halal McDonalds in India(1995 and 1996
7
respectively).McDonald start creating healthy image and invested heavily on refurbishment in 2000‘s.today McDonald‘s has more than 33000 outlets and is operating in 125 countries. It is the world leading brand in fast food. McDonald started their business in India in 1996.they start their business in India‘s capital New Delhi. They choose a busy residential area Vasant Vihar.McDonald India is 5050 partnership between McDonald USA corporation and Two Indians (Amit Jatia Hard castle Restaurant ltd Mumbai and Vikram Bakshi Cannaught plaza restaurant
Delhi).McDonald as of now has 210 stores in India. Majority of Indians are Hindu and cows are sacred to them. For McDonalds to sell beef was almost impossible. The second majority population is Muslim and they eat Halal food. It was a big challenge for McDonald‘s as there were many protest against McDonalds‘s .So McDonalds changed their menu according to local community for example they introduce Maharaja Mac instead of Big Mac. Their menu is full of some spicy products as we know that Indians use spice in their dishes in abundance. About 75 % of the menu of McDonald‘s has been indianised and specially designed to woo Indians. McDonald‘s passed through some tough times but eventually managed to survive in that different culture and different religious belief. McDonald by now has a big presence in India and are trying to extend this ahead. Over all McDonalds serve more than 47 million customers every day.
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OBJECTIVE
1. To review statistics on people‘s emotions eating at an establishment. 2. Studying customer preferences under different emotions. 3. Studying the impact of emotions on customer satisfaction.
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HYPOTHESIS
Hypothesis 1 Customer’s happy emotion will decide about the positive level of satisfaction Hypothesis2 Customer’s sad emotions will adverse effect to satisfaction level. Hypothesis 3 Customer satisfaction changes with the different emotions. Hypothesis 4 Customer satisfaction does not change with different emotions.
Hypothesis 5 Customer will have different emotion after having meal in McDonald.
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RESEARCH DESIGN
This chapter gives us an overview of the methodology, which describes how the research will be carried out. ?Methodology? refers to how a research should be undertaken. In order to conduct a successful research, it is essential to collect relevant data from various sources and analyze it. The study sets out to expand upon work on the topic of “The effect of emotions on the Customer Satisfaction with special Reference for MCDONALD’S Product.” Considering the nature of our research, we intend to use a questionnaire approach as research methods. This study further defines and discusses the following: the research design, the research approach, the research methods, the sample design and data collection and analysis of the research. There are a number of different types of method available for the collecting research data, for example:
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The Research Process
The first step of any research is to identify a subject area of research and design a clear objective within it to do further study on that particular research. Secondly, after getting secondary data from different sources on a similar subject has to be critically reviewed. To carry McDonald‘s Customer Satisfaction with their emotion out proper research an ideal person has to be defined, out of which, a sample has to be dispatched for survey by different sources. However, to make the research more authentic, qualitative research has to be carried out in the former of descriptive questionnaire. Lastly, before completing the report, the descriptive data thus collected has to be analyzed properly and then drive final conclusion. Following charts will show a brief summary of the research process . Formulating and clarifying Research Topic Critically Reviewing Literature Choosing Research Approach Constructing Instrument for Data Collection Selecting a Sample for Survey Analysis Qualitative Data Writing the Research Report
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Research Approach
An effective strategy will be used to collect most of the information and data from various sources. The research will contain two parts, firstly ?secondary Research? in which the researcher will go through various research papers, electronic journals and database. Whereas for ?primary Research?, different methods that will be used to collect information from outlets of McDonald. .
Sources of Data Collection
Data for the research project is usually either by using primary data, secondary data or a combination of both.
Secondary Data
Secondary Research will be aimed at focusing on existing sources of information such as an internal document, journal, magazines, internet etc. Research got permission from management to use internal material Data. McDonald's Customer Satisfaction with the emotions. Collection from secondary research will be routinely evaluated to eliminate bias, check the accuracy of data, make sure it is current and not obsolete, fit the purpose for what it is collected , examine the content of the data and to make sure it is dependable.
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Different statistical tools such as bar charts will be used to analysis data and to draw conclusions and
recommendations. In order to make it more comprehensive, Ms Word document will be used. This research methodology is carefully selected after considering factors such as the purpose of the research, accessibility and the amount of the time available. The secondary research does not provide statistical information about the subject and is purely based on qualitative analysis. It triggers generalized results not representing the actual picture of the research. For this reason, we cannot rely much on qualitative research.
Primary Data
Primary data can be defined as the new data collected for the specific purpose of the research. This usually includes the use for various forms of interviews and questionnaire. The main medium to obtain the primary data is through a questionnaire. A questionnaire is a written list of questions, the answer to which is recorded by respondents. The questionnaire will consist of ten questions for which descriptive answer have to be provided by the customers, to support my research.
Questionnaires
Questionnaires will be a mix of structure and unstructured questions. Structure questions will be used to find out the percentage of similar answer to a given condition while
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unstructured question will be use whenever there is a necessity for a wider view on the part of the respondent. Other forms of interview method such as postal email interview will be not used as the response rate is likely to low, additional time be needed to get a response and the lack of motivation/initiative on the part of the respondent will make the process frustrating. Further, it will not be possible for the research to read between lines of the response, due to the absence of observation of body language.
Questionnaire Survey
?Any person to person interview between two or more individuals with a specific purpose in mind is called an interview?. Research will collect primary data through the questionnaire duly filled in by the sample companies will be briefly informed about the research by the researcher before they will be given the questionnaire to be filled. The questionnaire will be mainly targeted to the customers who provide the most detailed information about the emotion which effect their satisfaction. All the respondents? agreements will be taken before using the provided data for research.
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SAMPLING McDonald‘s Customer Satisfaction with the effect of their emotions.
Questionnaire Frame Work
To conduct research in the form of a questionnaire, a sample will be chosen. ?A sample is a set of elements selected in some way from a population?. It is, therefore essential to choose a proper sample for any research. ?The quality of the sample has a significant impact on the overall quality of research but designing an appropriate sample is seldom easy.?It is also important to choose a sample of respondents. To select sample, questioner will be distributed to the customers of McDonalds. Information will be gathered on the basis of it; however, it will be kept in mind that a more varied the sample would lead to better accuracy to the finding to the research. Therefore, maximum number of questioners will be distributed, In order to come out with accurate outcome for the research.
Questionnaire Design
While designing the questionnaire, the main object will be that how customer addresses the effect of emotion . Also, what are the parameter how they decide their preference. The researcher will utilize sampling methods in designing the research sample. Initially the unit analysis will be identified their preference and with that their emotions.
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Furthermore, several sampling methods as appropriate and listed below will be considered bearing in mind the time and cost constraints at the time of study, accessibility of information, the scope of the inquiry and the desired accuracy. The researcher will take every precaution to make sure a credible scale has been developed for the study.
Data Collection
Questioners will be used as collection methods. The time will be managed. Questionnaires will be distributed to the customers of McDonald products will be held. The respond will vary with the different questions of which adequate research analysis will be done.
We took 30 random samples from three different locations, CBD –VASHI- KHARGHAR outlets.
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LIMITATIONS OF STUDY
The probable limitations of this study are as under: 1. The first and foremost limitations was time constraint which was only three months, but still efforts have been made to put the picture as clear and candid as possible. 2. Samples were randomly selected as per convenience so error is bound to creep in the observation. 3. The conservative attitude of the respondents was a limiting factor in gaining information. 4. The finding and conclusions are based on knowledge and experience of the respondents sometimes may subject to bias.
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DATA ANALYSIS AND INTERPRETATION
The emphasis is on the effect of emotions on the customer satisfaction with special reference to McDonald‘s products. From those who filled interview questionnaires, 53% of them were between the age group of 21-30 , 27% between the age group of 10-20 , and 20% between the age group of 31 and above. This indicates that majority of the customers at McDonalds are below the age of 30. This might be the reason why most of their products burgers and fast foods as they appeal more to the younger people as they opposed to the possibly health conscious older people.
Age Group
20%
27% 11_20 21-30 31 & above
53%
Fig no: 1-Age groups of the respondents.
63% of the respondents were male and while 37% were female. 70%of them use to visit McDonalds when they are
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happy like to celebrate, hangout, get together etc. 13% of them use to visit McDonalds when they are sad or bored and only 4% of them had other emotion when they have visited McDonalds. Most of them pick Happy Meal, CokeFloat, Coke, French Fries etc, under their emotions.
25 20 15 10 5 0 Happy Sad Bored Others
Out of 30 respondents 20 of them i.e. 67% of the respondents feels that their emotions changes after eating what they have picked. While rest 10 of the respondents i.e. 33% of them felt that their emotions remains the same even after eating what they have picked of their choice.
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Respondents
Yes No
Figure 1 : Response on whether their emotions changes after eating what they have picked.
87% i.e. 26 respondents felt that they will be satisfied with the customer services under their current mood. While 13% i.e. 4 respondents felt that they won‘t be satisfied with the services under their current mood.
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Respondents
30 25 20 15 10 5 0 Yes No Respondents
Figure 2 : Response on whether they feel satisfied with customer services under their current mood 60% i.e.18 respondents felt that different emotions would change their customer satisfaction. While 40% i.e. 12 respondents felt that their emotions remains the same in respect to customer satisfaction.
Respondents
20 18 16 14 12 10 8 6 4 2 0 Yes No
Respondents
Figure 3 : Response on whether different emotions would change their customer satisfaction.
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73% i.e.22 of the respondents felt that complementary gifts will change their level of customer satisfaction. While 27% i.e. 8 respondents felt that complementary gifts cannot change their level of customer satisfaction.
Respondents
25 20 15 10 5 0 Yes No Respondents
Figure 4 : Response on whether a complementary gift changes the level of customer satisfaction.
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FINDINGS
As per our research, wherein we had 30 random samples at different outlets of McDonald‘s. The respondents were 11 females and 19 males. Out of which 21 were in a happy mood when they visited the outlet, and 4 were sad and 4 were bored. As per these responses we found out that 70% were in a happy mood and at the same time were satisfied with the service provided. As per our findings, different emotions did not affect the customer satisfaction. We found that irrespective of the mood of the customer they were either satisfied with the service or not depending upon the service provided. We also found out that after meals there was a definite change in the moods of the customer thereby changing the emotions.
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SUGGESTIONS
Since we found out that the customers moods did not affect their level of satisfaction, we hereby suggest that the company‘s need to concentrate on the services they provide. Good response and service from the employees towards the customers do change the mood of the customers, hence its extremely important for the company to concentrate on providing a good and efficient service. This will ensure the company to have higher rate of customer retention.
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Conclusion
Concerning all types of business organization customer satisfaction is the most important issue, and considered as most reliable feedback, for the excellence of any business organization. Customer satisfaction is the part of marketing and play important role in the market. And for measuring the customer satisfaction and emotion effect on the level of satisfaction this study was conducted. Service quality, physical environment and emotion are the key determinant of customer satisfaction in the purchase of fast food industry. At the end it could be concluded that, there is a significant positive effect to customer satisfaction with the respect to their different emotions for McDonald‘s product. As per our research proved that customer‘s mood did not dictate their opinion about the service provided. Moreover it was clearly seen that they left with a positive feeling after a meal at McDonalds, in addition to it a good customer service provided left the customers with an overall good experience irrespective of the mood with which they walked in. According to our research our only suggestion would be for the companies to satisfy their customers with quality products that were promised to them and in return the companies can earn the loyalty of the customers, thus irrespective of the customers mood the company retains them for long.
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REFERENCE
http://www.mcdonalds.com/us/en/privacy.html/ 21/4/2013 & 22/4/2013
http://www.kristinroti.com/2012/10/08/organizationalstructure-of-mcdonalds/ 19/4/21013
http://www.uk.sagepub.com/aboutus/press/2012/aug/31_au g.htm/ 23/4/2013 & 24/4/2013
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Organizational Structure of McDonald’s
A company is usually divided into parts in which it receives revenue. Some companies are divided by operations, geographies or product lines. The focus of this article is the organizational structure of McDonald‘s and ways to visualize this information through the use of info graphics. McDonald‘s is organized geographically earning revenues through the United States, Europe, Asia Pacific and Other & Corporate. To help understand the organization of McDonald‘s, I have created an organizational chart to help you visualize the structure.
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By looking at this organizational chart, first look at the top box with the C.E.O. Notice the current C.E.O of McDonald‘s Corporation is Donald Thompson. The next box just underneath the C.E.O gives the key financials of McDonald‘s for the fiscal year ending in 2011. This box gives you the total assets, sales and net income in billions of dollars. McDonald‘s total assets in 2011 were 32.4 billion, its sales were 27 billion and its net income was 5.5 billion. Underneath the key financials box are four sub-divisions of McDonald‘s operating income, sales and assets. As stated previously, McDonald‘s is structured geographically, therefore the subdivision reports statistics from the United States, Europe, Asia Pacific and Other & Corporate. Each of these boxes presents information for that geographic division. For example, the operating income for McDonald‘s in the United States alone excluding other locations was $3.7 billion. The sales for McDonald‘s in the United States were $8.5 billion and the assets for McDonald‘s in the United States were $10.9 billion. The same concept and information provided is respective to the geography listed in the chart. Another way to visualize the information is to create a pie chart. Creating a pie chart let‘s you easily understand complex information. For example, take a look at the Sales for McDonald‘s for each of its four divisions. It will be much easier to compare the Sales by looking at a pie chart.
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The pie chart shown above is representative of the information pulled the organizational chart. This pie chart is focusing on the sales for McDonald‘s in each of its 4 geographical divisions. As you can see, Europe, denoted by the pink color in the legend, has the biggest slice earning $10.9 billion in sales for the fiscal year ending in 2011. To restate the purpose of this article, McDonald‘s is organized by geography. McDonald‘s has four major areas in which they record their revenue. The info graphics in this article allow for easy comprehension of McDonald‘s key financials. All of the information in this article was pulled from the income statement and balance sheet for the fiscal year ending in 2011 for McDonald‘s Corporation. With the use of info graphics, it is much easier to compare numbers to previous years or amongst competitors.
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Company policy
Types of Information they Collect and How It Is Used
They only gather personal information, such as first and last names, addresses and email addresses, Facebook profile name and Google user name, when voluntarily submitted by the customers. For example, personal information may be collected from customers when they register on any of the company‘s web sites, give feedback on their web sites and on products or to enter in one of their online prize promotions.
Sharing of Personal Information
They may share personal information within the
McDonald's Family ie McDonald's Corporation and each of its subsidiaries, together with their respective franchisees and certain selected companies.
Privacy Policy Regarding Children
They are very careful in any communications with one of their most treasured customers children.
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On their web sites, they offer many features, like games and colouring books, which do not require a child to provide any personal information. Their policy is not to collect personal information from any child under 12 unless for a specific activity where the child's parent or guardian has first written to them with that parent's or guardian's consent to that specific activity. They collect only limited personal information from children under 16 (like their email addresses) to respond to their online
communications.
Changes to their Privacy Policy
From time to time, it may be necessary for them to change this privacy policy, so they suggest that the customers check their websites periodically. Company assures that any changes will not be retrospectively applied and will not alter how they handle previously collected information.
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doc_257486221.docx
research report
INTRODUCTION
“Studying the effect of emotions on the Customer Satisfaction with special Reference for MCDONALD’S Product.” Traditionally, Satisfaction definitions include ?emotion? (feelings) elements. While it is accepted that satisfaction is closely related to, or includes emotions, it is not clear whether satisfaction is an emotion itself, or consists of several emotions that form the overall satisfaction emotional component. High consumer satisfaction has been linked to positive consequences for the service organization. Hence, it is in the interest of every firm to monitor their customers‘ perceived satisfaction with the service offer and the underlying factors that affect it. In services research, perceived service quality has usually been used as the only indicator of consumer satisfaction. However, there is a growing body of literature which clearly indicates that the positive and negative emotions that consumers associate with the service play an important role in forming satisfaction. Generally, positive emotions have been found to enhance satisfaction. On the other hand, it is also possible to combine high satisfaction with feelings that in other circumstances would have invoked dissatisfaction. The structure of emotions and consumer experienced emotions with advertising there is a lack of research on the
1
linkage between emotions and post-consumption variables like satisfaction. Different segments of consumers may react with different emotions to the same service, and because of service variability, one consumer‘s perceived service quality and experienced emotions may vary from one service encounter to another. It is a challenge for service managers to understand the emotions that their customers experience, and to manage the service in such a way that positive emotions are promoted and negative emotions reduced. In order to better understand the role of emotions in services, research is needed on different types of service encounters. The present study seeks to increase our understanding of how experienced emotions affect consumer satisfaction with a McDonalds‘ product. The main aim of this study was to investigate the structure of emotions as experienced by consumers for McDonald‘s products
2
LITERATURE REVEIW
The word "emotion" dates back to 1579, when it was adapted from the French word émouvoir, which means "to stir up". However, the earliest precursor of the word likely dates back to the very origins of language. Emotions have been described as discrete and consistent responses to internal or external events which have a particular significance for the organism. Emotions are brief in duration and consist of a coordinated set of responses, which may include verbal, physiological, behavioral, and neural mechanisms. Emotions have also been described as biologically given and a result of evolution because they provided good solutions to ancient and recurring problems that faced our ancestors. Emotion can be differentiated from a number of similar constructs within the field of affective neuroscience.
?
Feelings are best understood as a subjective representation of emotions, private to the individual experiencing them.
?
Moods are diffuse affective states that generally last for much longer durations than emotions and are also usually less intense than emotions.
?
Affect is an encompassing term, used to describe the topics of emotion, feelings, and moods together, even though it is commonly used interchangeably with emotion.
3
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."[1] In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses. It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. "Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers‘ expectations.
Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective." Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and representative measures of satisfaction.
4
"In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget motel—even though its facilities and service would be deemed superior in 'absolute' terms." The importance of customer satisfaction diminishes when a firm has increased bargaining power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry that is an oligopoly, where only a few suppliers of a certain product or service exist. As such, many cell phone plan contracts have a lot of fine print with provisions that they would never get away if there were, say, a hundred cell phone plan providers, because customer satisfaction would be way too low, and customers would easily have the option of leaving for a better contract offer. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms.
5
Sandra Kiffin-Petersen, and Geoffrey Soutar from University of Western Australia and Steven Murphy from Carlton University, Canada used a qualitative diary study with 276 sales employees to shed light on the sales experience from the employees‘ perspective. In psychology, ?affect‘ is the experience of feeling or emotion. We often feel emotions in response to specific events, particularly social interactions. Affective events theory (AET) suggests that a salesperson‘s thoughts about how they rate their interaction with a customer (appraisal) will then help determine the emotions they feel. Until now, studies of how an individual‘s positive emotion appraisals fluctuate in real life, or organizational settings, have been thin on the ground.
Emotions were also shown to be contagious – so as well as a great sales interaction making for a happy customer, it was also demonstrated that customer happiness can ?rub off‘ on the sales staff serving them.
"The customer interaction may need to be recast in the context of a dynamic interplay between salespersons and customers, where the affective state of each may influence the other," the authors of the study suggest.
6
INTRODUCTION TO MCDONALDS
McDonald is the world famous fast food restaurant. The idea of McDonald‘s was introduced by two brothers Mac (Maurice) and Dick (Richard) McDonald in California. Their father Patrick McDonald in 1937 was having a hot dog cottage called as Airdrome restaurant near the airport. In 1940 the restaurant was renamed as McDonald‘s Famous Barbeque. In 1940 both brothers came to a conclusion that most of their profit comes from selling hamburger so they made their menu very simple by selling only Hamburger, cheeseburger, soft drinks French fries and apple pie. In 1954 a turning point came in McDonald‘s brother history. Ray Kroc a seller of Multimixer milkshake visited McDonald and he liked the idea of McDonald. McDonalds corporation was build in those times and as a result Kroc started expanding their business by opening franchises for mcdonalds.1960 McDonald‘s advertising campaign ?look for the golden arches? gave McDonald‘s sale a big boost.1965 McDonald corporation went public. In 1968 McDonald open its 1000threstaurant.1974 McDonalds started their business in UK and Newzealand. In 1980 McDonalds was facing very big competition from its rival Burger King and Wendy but McDonald with its innovation was experiencing boost in its sales. In early and mid nineties McDonalds was having decline in their sales and as a result they start improving their business. Taste was improved and some new menu items were introduced. McDonald introduced first Kosher McDonald in Jerusalem and Halal McDonalds in India(1995 and 1996
7
respectively).McDonald start creating healthy image and invested heavily on refurbishment in 2000‘s.today McDonald‘s has more than 33000 outlets and is operating in 125 countries. It is the world leading brand in fast food. McDonald started their business in India in 1996.they start their business in India‘s capital New Delhi. They choose a busy residential area Vasant Vihar.McDonald India is 5050 partnership between McDonald USA corporation and Two Indians (Amit Jatia Hard castle Restaurant ltd Mumbai and Vikram Bakshi Cannaught plaza restaurant
Delhi).McDonald as of now has 210 stores in India. Majority of Indians are Hindu and cows are sacred to them. For McDonalds to sell beef was almost impossible. The second majority population is Muslim and they eat Halal food. It was a big challenge for McDonald‘s as there were many protest against McDonalds‘s .So McDonalds changed their menu according to local community for example they introduce Maharaja Mac instead of Big Mac. Their menu is full of some spicy products as we know that Indians use spice in their dishes in abundance. About 75 % of the menu of McDonald‘s has been indianised and specially designed to woo Indians. McDonald‘s passed through some tough times but eventually managed to survive in that different culture and different religious belief. McDonald by now has a big presence in India and are trying to extend this ahead. Over all McDonalds serve more than 47 million customers every day.
8
OBJECTIVE
1. To review statistics on people‘s emotions eating at an establishment. 2. Studying customer preferences under different emotions. 3. Studying the impact of emotions on customer satisfaction.
9
HYPOTHESIS
Hypothesis 1 Customer’s happy emotion will decide about the positive level of satisfaction Hypothesis2 Customer’s sad emotions will adverse effect to satisfaction level. Hypothesis 3 Customer satisfaction changes with the different emotions. Hypothesis 4 Customer satisfaction does not change with different emotions.
Hypothesis 5 Customer will have different emotion after having meal in McDonald.
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RESEARCH DESIGN
This chapter gives us an overview of the methodology, which describes how the research will be carried out. ?Methodology? refers to how a research should be undertaken. In order to conduct a successful research, it is essential to collect relevant data from various sources and analyze it. The study sets out to expand upon work on the topic of “The effect of emotions on the Customer Satisfaction with special Reference for MCDONALD’S Product.” Considering the nature of our research, we intend to use a questionnaire approach as research methods. This study further defines and discusses the following: the research design, the research approach, the research methods, the sample design and data collection and analysis of the research. There are a number of different types of method available for the collecting research data, for example:
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The Research Process
The first step of any research is to identify a subject area of research and design a clear objective within it to do further study on that particular research. Secondly, after getting secondary data from different sources on a similar subject has to be critically reviewed. To carry McDonald‘s Customer Satisfaction with their emotion out proper research an ideal person has to be defined, out of which, a sample has to be dispatched for survey by different sources. However, to make the research more authentic, qualitative research has to be carried out in the former of descriptive questionnaire. Lastly, before completing the report, the descriptive data thus collected has to be analyzed properly and then drive final conclusion. Following charts will show a brief summary of the research process . Formulating and clarifying Research Topic Critically Reviewing Literature Choosing Research Approach Constructing Instrument for Data Collection Selecting a Sample for Survey Analysis Qualitative Data Writing the Research Report
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Research Approach
An effective strategy will be used to collect most of the information and data from various sources. The research will contain two parts, firstly ?secondary Research? in which the researcher will go through various research papers, electronic journals and database. Whereas for ?primary Research?, different methods that will be used to collect information from outlets of McDonald. .
Sources of Data Collection
Data for the research project is usually either by using primary data, secondary data or a combination of both.
Secondary Data
Secondary Research will be aimed at focusing on existing sources of information such as an internal document, journal, magazines, internet etc. Research got permission from management to use internal material Data. McDonald's Customer Satisfaction with the emotions. Collection from secondary research will be routinely evaluated to eliminate bias, check the accuracy of data, make sure it is current and not obsolete, fit the purpose for what it is collected , examine the content of the data and to make sure it is dependable.
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Different statistical tools such as bar charts will be used to analysis data and to draw conclusions and
recommendations. In order to make it more comprehensive, Ms Word document will be used. This research methodology is carefully selected after considering factors such as the purpose of the research, accessibility and the amount of the time available. The secondary research does not provide statistical information about the subject and is purely based on qualitative analysis. It triggers generalized results not representing the actual picture of the research. For this reason, we cannot rely much on qualitative research.
Primary Data
Primary data can be defined as the new data collected for the specific purpose of the research. This usually includes the use for various forms of interviews and questionnaire. The main medium to obtain the primary data is through a questionnaire. A questionnaire is a written list of questions, the answer to which is recorded by respondents. The questionnaire will consist of ten questions for which descriptive answer have to be provided by the customers, to support my research.
Questionnaires
Questionnaires will be a mix of structure and unstructured questions. Structure questions will be used to find out the percentage of similar answer to a given condition while
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unstructured question will be use whenever there is a necessity for a wider view on the part of the respondent. Other forms of interview method such as postal email interview will be not used as the response rate is likely to low, additional time be needed to get a response and the lack of motivation/initiative on the part of the respondent will make the process frustrating. Further, it will not be possible for the research to read between lines of the response, due to the absence of observation of body language.
Questionnaire Survey
?Any person to person interview between two or more individuals with a specific purpose in mind is called an interview?. Research will collect primary data through the questionnaire duly filled in by the sample companies will be briefly informed about the research by the researcher before they will be given the questionnaire to be filled. The questionnaire will be mainly targeted to the customers who provide the most detailed information about the emotion which effect their satisfaction. All the respondents? agreements will be taken before using the provided data for research.
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SAMPLING McDonald‘s Customer Satisfaction with the effect of their emotions.
Questionnaire Frame Work
To conduct research in the form of a questionnaire, a sample will be chosen. ?A sample is a set of elements selected in some way from a population?. It is, therefore essential to choose a proper sample for any research. ?The quality of the sample has a significant impact on the overall quality of research but designing an appropriate sample is seldom easy.?It is also important to choose a sample of respondents. To select sample, questioner will be distributed to the customers of McDonalds. Information will be gathered on the basis of it; however, it will be kept in mind that a more varied the sample would lead to better accuracy to the finding to the research. Therefore, maximum number of questioners will be distributed, In order to come out with accurate outcome for the research.
Questionnaire Design
While designing the questionnaire, the main object will be that how customer addresses the effect of emotion . Also, what are the parameter how they decide their preference. The researcher will utilize sampling methods in designing the research sample. Initially the unit analysis will be identified their preference and with that their emotions.
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Furthermore, several sampling methods as appropriate and listed below will be considered bearing in mind the time and cost constraints at the time of study, accessibility of information, the scope of the inquiry and the desired accuracy. The researcher will take every precaution to make sure a credible scale has been developed for the study.
Data Collection
Questioners will be used as collection methods. The time will be managed. Questionnaires will be distributed to the customers of McDonald products will be held. The respond will vary with the different questions of which adequate research analysis will be done.
We took 30 random samples from three different locations, CBD –VASHI- KHARGHAR outlets.
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LIMITATIONS OF STUDY
The probable limitations of this study are as under: 1. The first and foremost limitations was time constraint which was only three months, but still efforts have been made to put the picture as clear and candid as possible. 2. Samples were randomly selected as per convenience so error is bound to creep in the observation. 3. The conservative attitude of the respondents was a limiting factor in gaining information. 4. The finding and conclusions are based on knowledge and experience of the respondents sometimes may subject to bias.
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DATA ANALYSIS AND INTERPRETATION
The emphasis is on the effect of emotions on the customer satisfaction with special reference to McDonald‘s products. From those who filled interview questionnaires, 53% of them were between the age group of 21-30 , 27% between the age group of 10-20 , and 20% between the age group of 31 and above. This indicates that majority of the customers at McDonalds are below the age of 30. This might be the reason why most of their products burgers and fast foods as they appeal more to the younger people as they opposed to the possibly health conscious older people.
Age Group
20%
27% 11_20 21-30 31 & above
53%
Fig no: 1-Age groups of the respondents.
63% of the respondents were male and while 37% were female. 70%of them use to visit McDonalds when they are
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happy like to celebrate, hangout, get together etc. 13% of them use to visit McDonalds when they are sad or bored and only 4% of them had other emotion when they have visited McDonalds. Most of them pick Happy Meal, CokeFloat, Coke, French Fries etc, under their emotions.
25 20 15 10 5 0 Happy Sad Bored Others
Out of 30 respondents 20 of them i.e. 67% of the respondents feels that their emotions changes after eating what they have picked. While rest 10 of the respondents i.e. 33% of them felt that their emotions remains the same even after eating what they have picked of their choice.
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Respondents
Yes No
Figure 1 : Response on whether their emotions changes after eating what they have picked.
87% i.e. 26 respondents felt that they will be satisfied with the customer services under their current mood. While 13% i.e. 4 respondents felt that they won‘t be satisfied with the services under their current mood.
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Respondents
30 25 20 15 10 5 0 Yes No Respondents
Figure 2 : Response on whether they feel satisfied with customer services under their current mood 60% i.e.18 respondents felt that different emotions would change their customer satisfaction. While 40% i.e. 12 respondents felt that their emotions remains the same in respect to customer satisfaction.
Respondents
20 18 16 14 12 10 8 6 4 2 0 Yes No
Respondents
Figure 3 : Response on whether different emotions would change their customer satisfaction.
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73% i.e.22 of the respondents felt that complementary gifts will change their level of customer satisfaction. While 27% i.e. 8 respondents felt that complementary gifts cannot change their level of customer satisfaction.
Respondents
25 20 15 10 5 0 Yes No Respondents
Figure 4 : Response on whether a complementary gift changes the level of customer satisfaction.
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FINDINGS
As per our research, wherein we had 30 random samples at different outlets of McDonald‘s. The respondents were 11 females and 19 males. Out of which 21 were in a happy mood when they visited the outlet, and 4 were sad and 4 were bored. As per these responses we found out that 70% were in a happy mood and at the same time were satisfied with the service provided. As per our findings, different emotions did not affect the customer satisfaction. We found that irrespective of the mood of the customer they were either satisfied with the service or not depending upon the service provided. We also found out that after meals there was a definite change in the moods of the customer thereby changing the emotions.
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SUGGESTIONS
Since we found out that the customers moods did not affect their level of satisfaction, we hereby suggest that the company‘s need to concentrate on the services they provide. Good response and service from the employees towards the customers do change the mood of the customers, hence its extremely important for the company to concentrate on providing a good and efficient service. This will ensure the company to have higher rate of customer retention.
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Conclusion
Concerning all types of business organization customer satisfaction is the most important issue, and considered as most reliable feedback, for the excellence of any business organization. Customer satisfaction is the part of marketing and play important role in the market. And for measuring the customer satisfaction and emotion effect on the level of satisfaction this study was conducted. Service quality, physical environment and emotion are the key determinant of customer satisfaction in the purchase of fast food industry. At the end it could be concluded that, there is a significant positive effect to customer satisfaction with the respect to their different emotions for McDonald‘s product. As per our research proved that customer‘s mood did not dictate their opinion about the service provided. Moreover it was clearly seen that they left with a positive feeling after a meal at McDonalds, in addition to it a good customer service provided left the customers with an overall good experience irrespective of the mood with which they walked in. According to our research our only suggestion would be for the companies to satisfy their customers with quality products that were promised to them and in return the companies can earn the loyalty of the customers, thus irrespective of the customers mood the company retains them for long.
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REFERENCE
http://www.mcdonalds.com/us/en/privacy.html/ 21/4/2013 & 22/4/2013
http://www.kristinroti.com/2012/10/08/organizationalstructure-of-mcdonalds/ 19/4/21013
http://www.uk.sagepub.com/aboutus/press/2012/aug/31_au g.htm/ 23/4/2013 & 24/4/2013
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Organizational Structure of McDonald’s
A company is usually divided into parts in which it receives revenue. Some companies are divided by operations, geographies or product lines. The focus of this article is the organizational structure of McDonald‘s and ways to visualize this information through the use of info graphics. McDonald‘s is organized geographically earning revenues through the United States, Europe, Asia Pacific and Other & Corporate. To help understand the organization of McDonald‘s, I have created an organizational chart to help you visualize the structure.
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By looking at this organizational chart, first look at the top box with the C.E.O. Notice the current C.E.O of McDonald‘s Corporation is Donald Thompson. The next box just underneath the C.E.O gives the key financials of McDonald‘s for the fiscal year ending in 2011. This box gives you the total assets, sales and net income in billions of dollars. McDonald‘s total assets in 2011 were 32.4 billion, its sales were 27 billion and its net income was 5.5 billion. Underneath the key financials box are four sub-divisions of McDonald‘s operating income, sales and assets. As stated previously, McDonald‘s is structured geographically, therefore the subdivision reports statistics from the United States, Europe, Asia Pacific and Other & Corporate. Each of these boxes presents information for that geographic division. For example, the operating income for McDonald‘s in the United States alone excluding other locations was $3.7 billion. The sales for McDonald‘s in the United States were $8.5 billion and the assets for McDonald‘s in the United States were $10.9 billion. The same concept and information provided is respective to the geography listed in the chart. Another way to visualize the information is to create a pie chart. Creating a pie chart let‘s you easily understand complex information. For example, take a look at the Sales for McDonald‘s for each of its four divisions. It will be much easier to compare the Sales by looking at a pie chart.
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The pie chart shown above is representative of the information pulled the organizational chart. This pie chart is focusing on the sales for McDonald‘s in each of its 4 geographical divisions. As you can see, Europe, denoted by the pink color in the legend, has the biggest slice earning $10.9 billion in sales for the fiscal year ending in 2011. To restate the purpose of this article, McDonald‘s is organized by geography. McDonald‘s has four major areas in which they record their revenue. The info graphics in this article allow for easy comprehension of McDonald‘s key financials. All of the information in this article was pulled from the income statement and balance sheet for the fiscal year ending in 2011 for McDonald‘s Corporation. With the use of info graphics, it is much easier to compare numbers to previous years or amongst competitors.
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Company policy
Types of Information they Collect and How It Is Used
They only gather personal information, such as first and last names, addresses and email addresses, Facebook profile name and Google user name, when voluntarily submitted by the customers. For example, personal information may be collected from customers when they register on any of the company‘s web sites, give feedback on their web sites and on products or to enter in one of their online prize promotions.
Sharing of Personal Information
They may share personal information within the
McDonald's Family ie McDonald's Corporation and each of its subsidiaries, together with their respective franchisees and certain selected companies.
Privacy Policy Regarding Children
They are very careful in any communications with one of their most treasured customers children.
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On their web sites, they offer many features, like games and colouring books, which do not require a child to provide any personal information. Their policy is not to collect personal information from any child under 12 unless for a specific activity where the child's parent or guardian has first written to them with that parent's or guardian's consent to that specific activity. They collect only limited personal information from children under 16 (like their email addresses) to respond to their online
communications.
Changes to their Privacy Policy
From time to time, it may be necessary for them to change this privacy policy, so they suggest that the customers check their websites periodically. Company assures that any changes will not be retrospectively applied and will not alter how they handle previously collected information.
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