CHAPTER I

The History of Food Service Industry in Western Countries

In 17th Century coffee houses were popular place to gather and to share beverages. While in
18th Century, the idea of eating out for fun comes into the mind of people in western society. A
restaurant named White Castle founded in 1921 in Wichita, Konsa. At that time, people think
that burgers sold in cart are low quality and they think that it is made up of spoiled meat. To
change the perception of public about burger, White Castle built a physical store to show
consumer how they prepare burger. They painted the store white to look neat and they
implemented cleanliness. The perception of customer about burger changed. White Castle
played a major role in the development of fast food. McDonald brothers open their redesigned
restaurant and after that several fast food chain existed. 1950 Burger King and Taco Bell enter
the food service industry, while in 1969 Wendy’s open their store. Some chains like Carl’s Jr.,
KFC and Jack in Box existed before the speedy service system.

History of KFC

In 1930, Harland Sanders open a restaurant on the front room of gas station in Corbin
Kentucky. He serves as cook and cashier in his restaurant named “Sanders Court and Café”. The
governor of Kentucky honored Sander as a Colonel, the reason for the said recognition is
because of the contribution of Harland Sander to the state’s cuisine. 1940 is the birthdate of
the original chicken recipe. 12 years after, the colonel actively franchising his chicken recipe by
cooking on different restaurant a bunches of chicken. Colonel awards Pete Harman with the
first franchise. The handshake agreement stipulates that for each chicken that it sold, Colonel
will get a nickel. First bucket of Kentucky fried chicken was sold in 1957. In 1964 KFC has more
than 600 franchised outlets in United States, Canada and England. A company in the United
States headed by John Y. Brown Jr. buys the interest of Colonel Sanders for 2 million dollars and
the colonel remain the spokesman for the company. 1996 Kentucky Fried Chicken goes in
public. 1971 more than 3,500 franchised and company-owned restaurants are in worldwide
operation when Heublein Incorporation acquires KFC corporation. There are approximately
6000 KFC restaurants worldwide with sales of more than 2 billion dollars. In 1980 Colonel
Sanders dies because of Leukemia. KFC steps foot in Philippines in 1967 managed by different
franchisees. 1994 Manuel U. Agustine obtained sole franchise over the sale distribution of KFC
products in the Philippines under the corporate KFC Quick Service Restaurant (QCR).

1. The Problem and It’s Background

Nowadays, food service industry grows faster. And it is unquestionable, because food is a
basic necessity of human. In theory of Maslow Hierarchy of Needs, it stated that food is part of
the physiological needs or basic need and it is for physical survival, this will be the initial thing
that will motivate the behavior of a person. Owing to the fact that many person have a creative
mind, different kind of foods are existing in the market now. However, many individuals always
want a specific type of food that can satisfy their hunger. Burgers, fries, pizza, chicken, pasta
and etc. are always on demand. These days, people become busy as they engage their self in
work, school and other businesses. Many people don’t have time to cook or they are away from
home for some reason and they just preferred to buy a prepared meal in order to save time.
That’s why it’s undisputable that food service industry has become bigger and bigger as the
time passes by. Food service industry will never be antiquated because food will always be on
trend. The food service industry includes fast food chain, restaurant, food carts, food trucks,
cafeterias and etc. The said services invaded the business world. Lot of food parks, restaurants,
fast food chains are emerge in the Philippines. The competition becomes intense on the players
of food service industry as the number of them increases.

Fast food chain is a type of food service industry which offer a fast service since the food that
they offer is usually pre-cooked meals or easy to cook meals. It is convenient to buy in fast food
especially when you’re a busy person and if you are in hurry. The well-known fast food chain in
Philippines are Jollibee, McDo, KFC, Chowking, Greenwich, Mang-inasal and etc. Because lots of
food chains are arising, the competition becomes fierce. Players are engaging their self in
different strategy to promote their brand. Everyday, consumer encounter different promotional
strategies on social media, tv, radio, newspaper, magazine and etc.

Like for example, February 2017 the trilogy advertisement of Jollibee for Valentine’s Day special
becomes viral with thousands of likes, comments and shares on facebook. Netizen are amazed
on how Jollibee come up with that kind of story which target the emotion of the viewers. The
ad captures the heart of the consumer which made them love the brand more. The brand
marks in the mind of consumer as a result for the promotion strategy, which can affect their
behavior that can change consumer buying decision.

This study will revolve on the colonel campaign of KFC (Kentucky Fried Chicken). On May 22,
2017 the video of the three veteran Filipino actors becomes viral on facebook as they audition
for the role of the first Filipino KFC colonel. Many netizen find it cute and funny as the veteran
actors show their trademark style in portraying Colonel Sander as they endorse KFC. Ronaldo
Valdez known for his kindly and fatherly manner, Leo Martinez known for his Batangeño humor
and Pen Medina known for his tough and intimidating prescence are the participant of the said
audition. One viewers commented that Valdez is the Filipino version of Harland Sanders, but
then he remember Martinez who is the embodiment of traditional Filipino culture and Medina
that for him would perfectly describe the current generation, unusual but cute. Weeks after the
audition they posted an advertisement showing Ronaldo Valdez with the signature white suit
and glass, as he upholds the Kentucky Fried Chicken. This TV commercial and campaign drew
thousands of reaction and comments which make the ad viral since it is the first time to have a
Filipino KFC colonel. The public got engage with the said campaign that will affect the consumer
behavior. This can change the consumer buying decision. The researcher wants to be informed
on how the campaign affects the decision of consumer and what are the effects of having a first
Filipino KFC colonel in the consumer.

THEORITICAL FRAMEWORK

I. MEANING AND DEFINITION OF CONSUMER BEHAVIOR

Key differences dictionary defines consumer as the one who consumes goods and, customers
are the person who buys the goods or commodity. In business world, these two words are used
conversely. There are cases where customer and consumer becomes one person, when the
person buys products for his/her personal use.

There are many definitions of consumer behavior stated by famous authors, these are the
followings;

 “Consumer behavior reflects the totality of consumer’s decision with respect to the
acquisition, consumption, and disposition of good, services, times, and ideas by decision
making” (Jacoby 1976).
 For Faison and Edmund (1977) “consumer behavior is the assumption that people have
series of needs which lead to drive state”.
 According to Solomon et al. (1995) it is “the study of the processes involved when
individual or groups select, purchase, use, dispose of products, services, ideas or
experiences to satisfy needs and desires”.

II. BUYING DECISION PROCESS

Link:https://www.google.com.ph/search?q=BUYING+DECISION+PROCESS&rlz=1C1CYCH
_enPH676PH676&source=lnms&tbm=isch&sa=X&ved=0ahUKEwia3qTW273WAhXFLpQK
HVFrBqQQ_AUICigB&biw=1366&bih=662#imgrc=cZgLvErB9VvEvM:
To support this study the researcher shows the process of consumer buying decision. This
theory demonstrate the reason why consumer buys product, what motivates them and their
behavior after purchasing the said product.

Step 1. Need Recognition- consumer buying decision process start with need recognition.
Problem identification is the perceive difference between an ideal and actual stage. This stage
is very important because it motivates the consumer action. The ideal state is the way
consumers would like a situation to be. The actual state is the real situation as we perceived it
now. A discrepancy between the actual state and the ideal state activates problem recognition.
Problem recognition relates not only to acquisition but also the consumption and disposition.
(Salvador, Fua-Geronimo, Molano 2015) Because problem recognition stimulates many types of
consumer decision making, we need now to examine the factors that contribute the differences
between the actual and ideal state as stated by Norihito Shirouzo (1997).

Step 2. Information Search- in this stage consumer searches the information about the product,
either from family, friends, neighborhoods, advertisements, wholesalers, retailers, dealers or by
examining or using the product. (Shma 2012)

Step 3. Evaluation of Alternatives- after getting the required knowledge about the product the
consumer evaluate the various alternatives on the basis of it’s want satisfying power, quality
and it’s features. (Shma 2012)

Step 4. Purchase Decision- after evaluating the alternatives the buyer buys the suitable product.
But there are also chances to postpone the purchase decision due to some reason. In that case
the marketer must try to find out the reasons and try to remove them either by providing
sufficient information to the consumer or by giving them guarantee regarding the product to
the consumers. (Shma 2012)

Step 5. Post-purchase Behavior- after buying the product consumers will either be satisfy or
dissatisfy. If the consumer is not satisfy in that case he will be disappointed other if he is satisfy
then he will be delighter. It is usually said that a satisfy consumer tell about the product to
three people and a dissatisfy consumer tell about the product to eleven people. Therefore, it is
the duty of the marketer to satisy the consumer. (Shma 2012)

III. Advertising

There are lot of models that try to explain on how advertising works. From these models, they
often try to pick meaningful communication objectives (Bovee et al., 1995). These models show
several phases of communication, progressing from initial awareness up to the decision to
make a purchase (Jones 1986). This research will analyze the consumer buying decision and to
know if advertising campaign is a determining factor. In order to determine the factors that
influence the preferences of the consumer in District V Quezon City, an understanding of how
consumer’s generally think and behave in buying situations is vital. It is not easy to understand
consumer behavior and to know consumers. Consumers may say one thing but do another
(Engel et al., 1979). Because of these issues few theories to understand consumer buying
decision process have been developed. In other words, marketers can apply various stimuli and
observe the conduct of consumers but they cannot observe the consumers’ actual thought
processes (Bonney 2014). This hidden information is considered to the black box. In an attempt
to obtain some understanding, marketers study consumer behaviour (Futrell, 1999). Many
researchers describe consumer behaviour as the study of individuals or groups and the mental,
emotional and physical processes they use to select, obtain, consume and dispose of products
and services, to satisfy needs and wants and the impact that these processes have on consumer
and society (Krugman, 2013).

There are numbers of models that try to explain the consumer behavior. The models usually
deal with different stimuli, influential factors, the decision-making process and outcomes. This
research will be based on AIDA model, the hierarchy effect model and the magic bullet theory
(hypodermic needle).

AIDA model

This model was propounded by Elmo Lewis. This is an approach used by many advertisers to
describe the different phases of consumer engagement with an advertisement. It basically
explains the way a consumer process information they are exposed to in the media (Colley,
1984). In order for advertising communication to be successful, prospective buyers become a
target for advertising messages (Rossitor and Percy, 1985). The individual must process the
elements in an intended manner so that the advertising results in communication effects. This
communication effect must be connected to the brand which in appropriate circumstances will
produce action (Purchase of the product or service). Actions can also include a variety of
desired target behaviour on the part of distributors or consumers. This behaviour can be in the
form of sales enquiries, or visit to retail outlets. It identifies the stages which describe the
processes a consumer goes through to become a potential customer. The stages identified by
this model are; Awareness; Interest; Desire; and Action (Glowa, 2002). The model depicts that;
awareness will cause or attract the attention of the consumer to the product. This will further
arouse the interest and possibly lead to the consumer’s desire for the product.

Advertisers believe that when the consumer gets to the stage of “desire formation” for the
product; he or she is likely to take an action which the advertiser see will be purchasing the
product (Lavidge and Steiner, 1961).
Different advertisers publicize advertising information differently and try to make consumers
aware by getting their attention through modern communication methods. Advertisers use
appealing information and images to convince consumers about the benefit they’ll get from a
product and services, and how that product can help solve their problems. Therefore it is very
necessary for the information to spark the consumer’s interest with a concise, brief and
accurate explanation of features and benefits of the products that are being promoted
(Hansen, 1972: 8-15).

The desire is created, by the use of keywords to convince the consumer that the product is
what they really need. Advertisers propagate their offers and the value of their product and
people are moved because of the action it projects (Jones, 1986).

This demonstrates that consumers must be aware of a product’s existence, be interested

enough to pay attention to the product’s features, benefits, and develop a strong desire to have
benefits from the products offerings. Thus the fourth stage (action) would come as a result of
the individual’s movement through the three stages of awareness, interest and desire. Bovee et
al. (1995) indicates that whatever the variety, these models are based on the assumption that
people first learn something from advertising, then form feelings about the product in question.
Finally, they take action (purchasing a product). This order of stages is often called the “learn-
feel-do sequence” (Bovee et al., 1995). In reference to the AIDA model, advertising is aimed at
generating a strong desire which can stimulate or trigger an audience to take action about a
product. This clearly shows that the level of impact an advert may have on a consumer depends
on the interest and desire created in the ad. This may or may not lead to an action (purchasing)
towards the product being advertised.

Frequency of exposure can be a contributing factor to gradually generate consumer interest,

desire and lead to action that contributes to patronage. In an effort to improve messaging and
to gain the audience’s attention, advertisers create branding and moments that will resonate
with target markets and motivate the audience to purchase the advertised product or service

(Abiodum, 2011). The model is shown in Figure 2 – (i).

Figure 2- (i). AIDA model

(Source; http://www.guerrillaonline.com/date/up-editor_1254654669976.jpg)

The Hierarchy of Effect Model

According to Barry (1987), the review of the advertising and marketing literature leads to the
conclusion that there is not one but many hierarchy of effects (Barry, 1987: 253). William J.

McGuire (1969) is one of the proponents identified with the hierarchy of effects model.
McGuire presented a paper on the topic “An information-processing Model of Advertising
Effectiveness” to symposium on Behavioural and Management Science in Marketing, at the
University of Chicago. He identifies the fact that it is necessary for an advertiser to place their
advertising in the appropriate media. This is very important to achieve message exposure.
McGuire also believes that this will give the consumer the opportunity to process the message
effectively by using this theory (McGuire, 1969).

In the hierarchy of effect model, the consumer goes through a number of processes after being
exposed to an advert. McGuire identifies the processes to be;
 • Consumer attention (Awareness)

• Message comprehension (Knowledge)

• Message acceptance (Liking)

• Selective perception (Preference)

• Selective retention (Conviction)

• Action (Purchase)

(McGuire, 1969).

Every advertiser is keen to consumer attention. Advertising must therefore be placed

strategically to stimulate the mental efforts of a consumer. The theory depicts that, the physical
properties of an advert is the primary requirement to get the consumer’s attention. For
broadcast-adverts, the motion and picture quality are essential. The size, columns, visibility and
brightness are keen for billboards and print advertising (Sandage and Fryburger, 1967).

The time of exposure to adverts, and the consumer’s prior product knowledge is a key factor
for consumer motivation and comprehension. Here the adverts enable the consumer to be able
to grasp the meaning of the advertising content. Usually, adverts that have catchy phrases, and
words repeated at the end frequently become easy to store in the memory (Vaughn, 1980).

If the advertising message is easy to comprehend by the consumer, message acceptance is

likely to occur (Roland, 1986). The consumer will begin to develop a favourable attitude
towards the product. This usually occurs when the consumer believes the information
propagated in the advertisement is true and helpful to satisfying their need. There is a cognitive
and physical response towards the advert. It is presumed that the achievement of this stage is
positive and could lead to an action (purchasing) (Robertson, 1971). Ideally, a consumer may
choose to buy Milo over Bournvita due to his or her acceptance of the products. Even though
Milo and Bournvita serve the same purpose, comprehension and message acceptance in their
advertisement may influence the consumer’s choice. The stages

of this model are shown in figure 2 –(ii).

Figure 2- (ii). Hierarchy of effect model

(Source; http://www.marketingsavant.com/wp-content/upload/2009/06/think-feel-
do_1300x207.jpg)

After getting the public’s attention, it is necessary for the consumer to understand and
interpret the advertising message as intended by the advertiser. Acceptances of Advertising
messages tend to create consumer selective perception, at this stage, the consumer is likely to
notice certain ads over others (Robertson, 1971). Selective retention will occur for a product
design because they convince the public to pay attention to the advert. Advertisers and
Advertising agencies must consider appropriate messages that can be easily comprehended,
accepted and retained by their target audience. This will create, improve or maximize the
impact expected on viewers (consumers) of these advertisements to relate themselves to the
product being advertised.

Magic Bullet Theory (Hypodermic needle)

This theory was propounded by Harold Laswell (1948). The theory propagates the media as a
force that has direct, immediate and powerful effects on its audience. This theory depicts that
the mass media are directly responsible for controlling what people think and in many ways
how they behave (Defleur,2009). The metaphorical words “bullet” or “needle” used shows a
literary influence of how the media directly shoots or injects information into the heads of its
audience. This information are designed to trigger a desired response (Harris, 1969).

There is a powerful connection between the sender (media) and the receiver (audience).
Laswell believed that the receiver at the other end of the chain is powerless to resist the power
“impact” of messages sent from the media (Faris, 1952).

Defleur, with reference to the magic bullet theory describes the mass media as directly
responsible for controlling what people think, and how they behave. He states that the media
sway their audiences almost at will, bringing them to believe and behave in ways dictated by
those who controlled their content (Defleur, 2009).

This describes the audiences’ inability to escape from messages injected or shot at them
through the various media outlets. Immediate influence of the messages transmitted might not
force the audience (consumer) to respond or purchase. Rather, the aim of creating awareness
of the product or service in the minds of the consumers will be achieved. This can affect the
individuals purchasing decision in the long run (Defleur & Dennis, 1991).

CONCEPTUAL FRAMEWORK
 STATEMENT OF THE PROBLEM

EFFECTS OF HAVING A FIRST FILIPINO KFC COLONEL

IN THE CONSUMER BUYING DECISION IN DISTRICT V QUEZON CITY

The objective of the study is to determine the effects of having a first Filipino KFC colonel in the
consumer buying decision in District V Quezon City.

Problem 1: What is the profile of the respondents in terms of the following aspects ?

 Age:
 Sex:
 Occupation:
 Income Level:

Problem 2: How will the respondents evaluate the effects of having a first Filipino KFC colonel in
the consumer buying decision in terms of the following aspects.

 Motivation
 Involvement with the Advertisement
 Product/Brand Awareness
 Attractiveness of the Product
 Brand Loyalty

Problem 3: Is there a significance difference in the respondents assessment in the study of the
effects of having a first Filipino KFC colonel in the consumer buying decision in District V
Quezon City when they are group according to profile.

HYPOTHESIS

ALTERNATIVE HYPOTHESIS

There is a significance difference in the study of the effects of having a first Filipino KFC colonel
in the consumer buying decision in District V Quezon City when they are group according to
profile.

NULL HYPOTHESIS

There is no significance difference in the study of the effects of having a first Filipino KFC
colonel in the consumer buying decision in District V Quezon City when they are group
according to profile.
 SCOPE AND LIMITATIONS OF THE STUDY

This research was conducted to determine the effects of having a first Filipino KFC
colonel in the consumer buying decision. The researcher will focus on the effects of the
campaign on the consumer behavior and it will tackle some factors that affects the person to
buy the product, but to be clear not all the elements that influence consumer to buy KFC
products will be discuss in this study. This tackles the consumer involvement with the
advertisement and how it affects their buying pattern and consumer loyalty on the brand.
However, the study includes only the consumer in district V Quezon City, it doesn’t involve
customer in other area in the Philippines. The respondents are limited only to one-hundred
twenty (120) persons. The respondent must be 16 years old and above, to be sure that they can
answer the questionnaire properly. The answerer can be male or female. People working, not
working, self-employed or student can answer the survey questionnaire as long as they
purchase food in any fast food chains. The study is conduct on school year 2017-2018.

SIGNIFICANCE OF THE STUDY

This study aims to know on how advertising agency affects the consumer buying decision, if the
advertisement has an impact on consumer that can perceived and attract them to buy product
and it can be beneficial to students, school and universities, advertisers, marketers and
business organization. It can be useful for students because this study can serve as an example
or guide for them in writing their thesis paper specifically to business administration students
and marketing students, the theories that is written on this paper can be relevant to their
future study especially if their topic is about consumer buying decision. It can also be beneficial
to school and universities because this study can be put in the school library and it will increase
the number of the references for thesis. This research can inform marketers and business
organization about whether their strategies are effective, especially the strategy of KFC which is
the topic of this research. Advertisers can also be inform about their level of impact on the
buying power of the consumer. Lastly, customers can be a beneficiaries of the study, the
research will inform them on how advertisers try to persuade them to buy the products and
help them to understand the certain misleading messages in adverts.