CUSTOMER SATISFACTION OF MCDONALD

PROJECT REPORT ON

CUSTOMER SATISFACTION AT McDONALD

SUBMITTED TO Mr. MOHNISH KUMAR ( FACULTY MBA )

SUBMITTED BY PRIYANKA SAXENA 1105270040 PUSHPENDRA SINGH 1105270041 SUNIL KHARE 1105270051

INSTITUTE OF ENGINEERING AND TECHNOLOGY

ACKNOWLEDGEMENT
Apart from the efforts of our group, the success of the project depends largely on the encouragement and guidelines of many others. We take this opportunity to express our gratitude to the people who have been guiding in the successful completion of this project.

First of all we would like to thank our honourable HOD Prof. Dr.D.N.Kakkar Sir for his valuable guidance. We would like to show our greatest appreciation to and our faculty members and our seniors. We thank for their tremendous support and help. we feel motivated and encouraged every time. Without their encouragement and guidance this project would not have materialized. This guidance and support received from all the people, who contributed their knowledge to this project, was vital for the success of the project. We are grateful for their constant support and help.
.

PREFACE

This project contains information regarding the customer behavior McDonalds productsThe project covers theory as well as practical aspects of consumer satisfaction in McDonalds.Our primary focus is on understanding the satisfaction of the consumers and also the consumption pattern and the behavior while purchasing the McDonalds products. There is a learning objective towards the topic. It is followed by scope which tells what we are covering in our research Then comes the research methodology telling us about the research design ,data collection methods,sample size,sampling technique used in this research,analysis tool.For getting the practical information we have collected secondary data and shown it as review of literature.For collecting the primary data we have personally met the customers through questionnaires, and have thorough analysis of data.In theory we have covered topics like introduction of McDonalds and also the introduction of consumer satisfaction. This project has find out the conclusion in the last and has provided various recommendations for further improvements.

INTRODUCTION

1) Statement of the problem:This topic is selected to analyze the satisfaction level of the consumers towards McDonalds products . The project is aimed at understanding the consumers satisfaction.

2) Introduction to McDonalds Corporation :McDonalds Corporation is the worlds largest chain of FAST FOOD RESTAURANTS, Serving nearly 58 million customer dalily. It was started by two brother Dick and Mac Donald in San Bernardino, California in 1940. McDonalds Restaurants are found in more than 119 countries and territories around the world and serve nearly 47Million customers each day. McDonalds operates over 31,000 restaurants worldwide, employing more than 1.5 million people. The company also operates other restaurant brands, such as Piles Caf and has a minority stake in prt a Manger. McDonald is one of the worlds chain of hamburger fast food restaurants, serving nearly 47 million customers daily. A McDonalds restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations revenue comes from the rent, royalties and fees paid by the franchisees as well as sales in company-operated restaurants. McDonalds in India : McDonalds has continually adapted to the customers tastes, value system, lifestyle, language and perception. Globally McDonald was known for its hamburgers, beef and pork burgers. Most Indians are barred by religion not to consume beef or pork. To survive, the company had to be responsive to the Indian sensitivities so McDonald came up with chicken lamb and fish burger to suite the Indian palate. Indian has a huge population of Vegetarians. To cater to this customer segment, the company came up with a completely new line of Vegetarian items like Mc veggie burger and Aloo Tikki.

3) Introduction of customer satisfaction: Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business 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. However, the importance of customer satisfaction diminishes when a firm has increased bargaining power.

4) Objective:To study the problems faced by the customers in variety in product. To analyze the self service. To study the expectation of consumer in McDonalds To measure quantities offered in the product To obtain suggestions for improvements in the product. To study the customer affordability in McDonald

5) Scope of the study:

With the help of this project, we can come to know the psychology of consumers staying in the urban areas of LUCKNOW

The study also gives a wide scope for analysis regarding the consumers need, consumption habits and purchase behavior. The study provides the facts and figures and also reliable information regarding the satisfaction level of the consumers. The study also helps to obtain suggestions regarding improvement in product and service.

6) Review of the literature:-

Concept for this survey have been developed after studying previous surveys on consumer satisfaction at different sectors such as Banking sector,online share trading. Following websites can be referred:
Research conducted by Bain & Company found that an increase of 5% in customer retention can increase profits by 25% to 95%. The same study found that it costs six to seven times more to gain a new customer than to keep an existing one. Additional researches has shown that:-

"US companies lose 50% of their customers every 5 years." Source: Bain & Company "Happy customers tell 4 to 5 others of their positive experience. Dissatisfied customers tell 9 to 12 how bad it was." Source Mark Stevens, Author "Companies that make customer service a high priority see twelve times the return on sales than those companies with a low emphasis on service." Source: International Customer Service Association

"Only 1 out of 25 dissatisfied customers will express dissatisfaction." "68% of customers stop doing business with a company because of poor service. Yet 95% of dissatisfied customers would continue to do business with a company if their problem was solved quickly and satisfactorily." Source - Mark Stevens, Author Two-thirds (or 66%) of customers do not feel valued by those serving them. Source - Mark Stevens, Author International Customer Service Association Customer Satisfaction in the Indian Banking Sector conducted at IIM Bangalore:-

This study, conducted among five Indian banks, aimed at identifying customer satisfaction variables which lead to relationship building, and developing a conceptual framework of relationship marketing practices in Indian banks by capturing the perspectives of customers with respect to their satisfaction with various services. It also sought to identify whether demographics have a role to play in customer satisfaction. A questionnaire designed from a literature review and in-depth interviews were utilised to arrive at the 16 variables which determined the satisfaction of 555 customers of the five banks..
Conclusion

Reporting on the different satisfaction levels of the customers, the findings suggest that while private banks have been able to attract the younger customers with higher educational levels, who are comfortable with multi channel banking, the customers of the national bank are older and more satisfied with the traditional facilities. The results from this study could provide managerial lessons on assessment of strengths and improvement of services and in evolving a research strategy that will benefit the management of banks.

The study revealed that levels of customer satisfaction were on average 20 per cent higher in restaurants that employ staff aged 60 and over. Widely recognised as one the largest providers of first time jobs in the UK, McDonald's also has a strong core of older workers, with around two-fifths of restaurants employing staff aged 60 and over.

A study on customer satisfaction towards online share trading with special reference to Coimbatore city.

The study has revealed the nature of the share investors, share brokingfirms and investment atmosphere in Coimbatore.Its good to note that the younger generation is more involved in on-lineshare trading.* Men are more into this investment mode.* Post graduate investors are found to be more in this study.* People in the beginning of their earning life seem to be more involved inon-line share trading.* Married men and women have found online share trading as a sourcefor extra income.* Friends have been the major inducing factor towards on-line sharetrading. Most of the respondents access the internet at the stock brokers officeand they access it on all business days. Only less than 1/3rd of the investors are professionals Coimbatoreans show equal consideration towards the trading sites.The investors of the Manchester of South India are interested in gettingmore information about the stock prices etc.50% of the on-line share trading respondents here rate the infrastructurefacility in this town as average. Majority of the respondents grade the bank associated activities of their on-line trading site as Good

American customer satisfaction index shows drop in customer satisfaction at Mcdonalds,a study conucted in 2010

According to the latest ACSI, which was founded at the University of Michigans Ross School of Business and is produced by ACSI LLC, McDonalds satisfaction score fell from 70 out of 100 in 2009, to 67 in 2010. Despite posting industry-beating same-store sales for years, McDonald's saw a 4.3-percent drop in its customer satisfaction score in 2010, as measured by the American Customer Satisfaction Index.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY:-

1.Research design Research Design is a systematic planning, organizing & executing a research project within specified time limit & resource allocation. After deciding the basic aspects of research project, example- formulating research problem,objectives of research, data requirement, sample design & before the commencement of work of research project, the researcher has to prepare research design. The research work will be conducted as per the research design prepared. It is logical & systematic outline of research project prepared for directing, guiding & controlling a research work. This research is EXPLORATORY in nature as it deals in exploring customer satisfaction.
2. Data collection method:Data is collected mainly through two methods. They are as follows:i. Primary Data ii. Secondary Data

a) Primary data: Primary data constitute first hand information which is collected for the first time in order to solve research problem. It is the data collected from primary sources which are original sources. It is fresh data collected for the first time directly from the respondents. Primary data is important as it gives reliable, factual first hand information for information purpose. Researcher collects primary data as per the need of his research project and from the source or the source collected from internet It is a created data. It is also time consuming and costly data. Primary different methods such as mail survey, personal interviews, observation or experimentation Data collection instruments are to be designed according to the needs of investigation. Primary data is the original data collected by the researcher from respondents through Primary data are collected for detailed information on certain aspects of research project.

Data collection was done through customer survey.

b) Secondary data: Secondary data are next to primary data. This data is already collected and complied for someone other than the researcher himself. It is readily available in complied form. Such data may be in the form of statistical statements or tables or reports and so on. Such data is available in published or unpublished form. A researcher may use secondary data as the sole source of information for his research study. Secondary data are available easily, quickly and economically.

3. Sampling technique:The technique used for sampling is the random or probability sampling Probability sampling is a process of sample selection in which elements are chosen by chance methods as flipping coins, drawing number of balls from an urn or through tables of random numbers. such

4. Place of research:The universe taken for the research is LUCKNOWEAST END MALL(WAVES), SAHARA GANJ, FUN REPUBLIC

5. Analysis tool :-

The statistical tools for analysis used in this report are bar graphs,pie charts etc. The tools used for conducting consumers survey Questionnaire survey.

The whole report has been prepared by using Microsoft office 2007

6. Sample size:-

We have taken the sample size as 100

C. SURVEY OF CONSUMERS:SURVEY WAS CONDUCTED WITH THE HELP OF A QUESTIONNAIRE

QUESTIONNAIRE
A survey conducted through questionnaire for the purpose of research on customer satisfaction at McDonalds which includes the following questions. Please fill the questions precisely and help us in achieving the desired objective. NAME: _____________________________________________________ AGE GROUP: (a) Under 16 (b) 16-25 (c) 25-35 (d) Above 35 GENDER: (a) Male (b) Female Occupation: __________________________________________________ Address: _____________________________________________________ _____________________________________________________ 1) Have you ever visited McDonalds? (a) Yes (b) No 2) What makes you patronize McDonalds? (a) Brand name (b) Word of mouth communication (c) Electronic Media Advertisement (d) Print Media Advertisement 3) How often do you visit McDonalds? (a) Once in a week (b) Once in a month (c) Few days /month (d) Few days/week 4) What is your main of purpose of visiting Mc Donalds? (a) Eating (b) Chatting (c) Waiting (d) Doing some work 5) Why do you prefer visiting Mc Donalds? (a) Good service (b) good quality (c) reasonable price (d) good taste 6) You like visiting Mc Donalds alongwith (a)Girlfriend/boyfriend (b) Friends (c) Family (d) Alone 7) McDonalds should improve its (a)Food (b) Service (c) Price (d) Location 1) Very dissatisfied S.no 8 9 10 11 12 13 14 15 16 Statements Are you satisfied with the variety of the meals served? Are you satisfied with the price of meals served? Are you satisfied with the service at McDonalds? Are you satisfied with the quality of meals served? Are you satisfied with the cleanliness of the restaurant Are you satisfied with the self service at the restaurant? Are you satisfied with the ambience of the restaurant? Are you satisfied with the friendliness of the employees? Are you satisfied with the products of McDonalds in comparison to other food players in the market? 2) Dissatisfied 3) Neutral 4)Satisfied 5)Verysatisfied 1 2 3 4 5

17

In all are you satisfied with McDonalds performance?

Date:

Signature

D. DATA ANALYSIS :-

GENDER:MALES FEMALES 47 53

AGE GROUP:UNDER 16 16 25 25-35 ABOVE 35 1 18 72 9

1) HAVE YOU EVER VISITED McDONALDS?

4%

visitors non visitors 96%

4% - non visitors 96% -visitors

ANALYSIS :- majority of the sample segment visit McDonalds because it is the only brand avialable in market

2) WHAT MAKES YOU PATRONIZE McDONALDS?

60 40 20 0

0% - print media advertisements 20% - electronic media 40% - word of mouth communication

60% - brand name

ANALYSIS :- majority of visitors follow brand name as they feel that quality is mentained and it also serves as status symbol

3) HOW OFTEN DO YOU VISIT McDONALDS?

24%

26%

once a week few days a week once a month few days a month

11%

39%

26% - once in a week 11% -few days a week 39% - once in a month 24% - few days a month

ANALYSIS :- data analysis shows that majority of visitors visit on monthly basis. Major visitors are from middle class society and so it is difficult to sustain more frequent visits

4) WHAT IS YOUR MAIN PURPOSE OF VISITING McDONALDS?

do some work waiting chatting eating 0

1% -doing some work 2% - waiting 19%- chatting 74% - eating

20

40

60

80

ANALYSIS :- the data shows that major purpose of visitors is eating

5) WHY DO YOU PREFER VISITING McDONALDS?

50 40 30 20

10
0 good service good quality reasonable price
18% - good service 39% - good quality 23% - reasonale price 16% - good taste

good taste

ANALYSIS :- data shows people prefer McDonalds due to good quality. Since consumers want maximum return for their money, quality is most promising domain were maximum return can be reeped

6)

YOU LIKE VISITING McDONALDS ALONGWITH-

60 40 20 0

17%-GIRL /BOY FRIEND 54%-FRIENDS 22%- FAMILY 2%- ALONE

ANALYSIS :- MAJORITY PEOPLE VISIT WITH FRIENDS. In Indian society, one has to mentain the decorum of social behaviour when with family while among friends one is free of constrains, thus major people prefer company of friends.

7) McDONALDS SHOULD IMPROVE ITS-

LOCA PRICE SERV FOOD 0 20

40

21% - FOOD 18% - SERVICE 21% - PRICE 36% - LOCATION

ANALYSIS :- MAJORITY OF VISITORS THINK THAT MCDONALDS SHOULD IMPROVE THEIR LOCATIONS. This because in lucknow, outlets are opened at central points which may be far of from many places. 8) HOW MUCH SATISFIED ARE YOU WITH THE VAREITY OF MEALS SERVED?

Sales
10% 3% 6%

VERY DISSATISFIED DISSATISFIED

NEUTRAL SATISFIED VERY SATISFIED

30% 51%

3% - VERY DISSATISFIED 6% - DISSATISFIED 30% - NEUTRAL 51%- SATISFIED 10 % - VERY SATISFIED

ANALYSIS :- major segment of people appear satisfied with variety of meal served. This is because the consumers feel that their money is effeciantly valued in terms of services provided 9) HOW MUCH SATISFIED ARE YOU WITH THE PRICE OF THE MEALS SERVED?

50 40 30 20 10 0

ANALYSIS MAJOR SEGMENT OF THE PEOPLE APPEAR TO BE SATISFIED WITH THE PRICES OF THE MEALS SERVED. Items like MAC ALLU TIKKI, MACPUFFS etc are quite economical and good enough to satisfy hunger pangs

10)

HOW MUCH SATISFIED ARE YOU WITH THE SERVICE OF McDONALDS?

Sales
7% 13% 27% 48% 5%

VERY DISSATISFIED DISSATISFIED NEUTRAL SATISFIED VERY SATISFIED

7%- VERY DISSATISFIED 5% - DISSATISFIED 27% - NEUTRAL 48% - SATISFIED 13% - VERY SATISFIED

ANALYSIS: MAJOR SEGMENT APPEARED TO BE SATISFIED WITH THE SERVICE.

11)

HOW MUCH SATISFIED ARE YOU WITH THE QUALITY OF THE MEALS SERVED?

60 50 40 30 20 10 0

51 5 4 14 22

5%- VERY DISSATISFIED 4% - DISSATISFIED 14% - NEUTRAL 51% - SATISFIED 22% - VERY SATISFIED

ANALYSIS: MAJOR SEGMENT APPEARS TO BE SATISFIED WITH THE QUALITY OF THE MEALS SERVED.

12)

HOW MUCH SATISFIED ARE YOU WITH THE CLEANLINESS OF THE RESTRAUNT?

VERY DISSATISFIED DISSATISFIED NEUTRAL SATISFIED VERY SATISFIED

5%- VERY DISSATISFIED 4% - DISSATISFIED 14% - NEUTRAL 51% - SATISFIED 22% - VERY SATISFIED

ANALYSIS : MAJOR SEGMENT APPEARS TO BE SATISFIED WITH CLEANLINESS OF THE RESTRAUNT.

13)

HOW MUCH SATISFIED ARE YOU WITH THE SELF SERVICE AT THE RESTRAUNT?

VERY DISSATISFIED
DISSATISFIED NEUTRAL SATISFIED VERY SATISFIED

5%- VERY DISSATISFIED 4% - DISSATISFIED 14% - NEUTRAL 51% - SATISFIED 22% - VERY SATISFIED

ANALYSIS : MAJOR SEGMENT APPEARS TO BE SATISFIED WITH THE SELF SERVICE AT THE RESTRAUNT.This is because younger generation prefer more informal ambiance rather than a sophisticated environment. 14) HOW MUCH SATISFIED ARE YOU WITH THE AMBIENCE OF McDONALDS?

Chart Title
VERY SATISFIED Axis Title NEUTRAL VERY DISSATISFIED 0 20 40

60

Axis Title
1%- VERY DISSATISFIED 8% - DISSATISFIED 30% - NEUTRAL 47% - SATISFIEd 10% - VERY SATISFIED

ANALYSIS: MAJOR SEGMENT APPEARS TO BE SATISFIED WITH THE AMBIENCE OF THE RESTRAUNT because it entertains the liveliness of youth 15) HOW MUCH SATISFIED ARE YOU WITH THE FREINDLINESS OF THE EMPLOYEES?

2% 14% 10% VERY SATISFIED DISSATISFIED 27% 47% NEUTRAL SATISFIED VERY SATISFIED

2%- VERY DISSATISFIED 10% - DISSATISFIED 27% - NEUTRAL 47% - SATISFIED 14% - VERY SATISFIED

ANALYSIS- MAJOR SEGMENT APPEARS TO BE SATISFIED WITH THE FREINDLINESS OF THE EMPLOYEES 16) ARE YOU SATISFIED WITH THE PRODUCTS SERVED AT McDONALDS IN COMPARISON TO OTHER ?

Chart Title
VERY SATISFIED
NEUTRAL VERY SATISFIED 0 20 40 Axis Title
1%- VERY DISSATISFIED 9% - DISSATISFIED 19%- NEUTRAL 50% - SATISFIED 17% - VERY SATISFIED

60

ANALYSIS:- MAJOR SEGMENT APPEARS TO BE SATISFIED WITH THE THE PRODUCTS SERVED AT MCDONALDS. This is because the easely satisfy the need of snacks at economical prices

17)

HOW MUCH SATISFIED ARE YOU WITH THE OVERALL PERFORMANCE OF McDONALDS?

VERY SATISFIED
SATISFIED NEUTRAL DISSATISFIED VERY SATISFIED 1 0
1%- VERY DISSATISFIED 6% - DISSATISFIED 13%- NEUTRAL 57% - SATISFIED 19% - VERY SATISFIED

19 57 13 6

10

20

30

40

50

60

ANALYSIS:- MAJOR SEGMENT OF THE PEOPLE APPERARS TO BE SATISFIED WITH THE OVERALL PERFORMANCE OF McDONALDS.

E. INTERPRETATION:Customers patronize Mcdonalds because of its brandname.Most of the customers prefer to visit once in a month rather visiting quarterly or weekly. Most of the respondent visit due to the quality of the products. Most of the people find ampleamount of variety of products and also they satisfy their hunger. Most of the respondents are satisfied with the self servicing in McDonalds.Most of the people prefer visiting McDonalds along with their friends. Most of the customers appears to be satisfied with the friendliness of the employees. Most of them have cherished the cleanliness of the restraint.Most of the segment is satisfied with the overall performance of McDonalds.

F. CONCLUSION:A consumer is satisfied in a restaurant only when he receives the products within these three aspects and they are quality, price and healthy product. From this project we would like to conclude that most of the customers are satisfied with the products offered and also with the quality of the products and also with prices of the products. The customers also want McDonalds to improve its locations.

G. RECOMMENDATIONS AND SUGGESTIONS:McDonalds must provide waiter service instead of self service. McDonalds must bring in variety of products in their menu. McDonalds should reduce the prices of their products. McDonalds should improve its locations.

H.LIMITATION:

The sample size of 50 is too small to understand the consumer satisfaction in McDonald product.

Consumer satisfaction needs specialized knowledge of area so there is a chance of interpretation error. There is a possibility that respondents might have filtered their response under testing condition.

I.

BIBLIOGRAPHY & WEBLIOGRAPHY:-

BIBLIOGRAPHY:-

WEBLIOGRAPHY:-

http://www.ehow.com/facts_7200417_consumer-satisfaction_.html http://managementhelp.org/customer/satisfy.htm l

http://managementhelp.org/customer/satisfy.htm l http://www.ehow.com/facts_7200417_consumer-satisfaction_.html

http://www.scribd.com/doc/12020770/A-STUDY-ON-CUSTOMER-SATISFACTION-TOWARDS-ONLINE-SHARE-TRADING-WITH-SPECIALREFERENCE-TO-COIhttp://www.greenbook.org/market-research-firms.cfm/customer-satisfaction

http://www.greenbook.org/market-research-firms.cfm/customer-satisfaction

www.iresearch.com/Customer-Satisfaction-Surveys.html - United States

http://www.efa.org.uk/pages/mcdonalds-research.html

http://nrn.com/article/mcdonalds-sees-drop-customer-satisfaction

http://www.iimb.ernet.in/publications/review/march2008/customer-satisfaction