How differing demographic factors impact consumers’ loyalty towards national or international fast food chains

2015 ◽  
Vol 117 (4) ◽  
pp. 1354-1376 ◽  
Author(s):  
R.K. Srivastava

Purpose – The purpose of this paper is to study differing demographic factors affecting fast-food customers loyalty towards national or international fast food chains. It also compares the variation between global and local fast food chains as the products offered are culturally different. Design/methodology/approach – A variety of variables used to gain a holistic view, which includes factors such as quality, price, food and demographic profile of consumers affecting loyalty of fast food chains. The study adopts the theory and method of the trust-commitment-loyalty explanation chain and examines the consumer survey adapted from Fast food by Sahagun et al. (2014). The present analyses 542 filled questionnaires in which systematic sampling is used. Systematic sampling procedure is adopted. Findings – Indians prefer global fast food chains compared to Indian fast food chains. Loyalty towards global brands is higher than that for Indian brands because they are found to be of better quality which leads to higher frequency of visit and recommendation of the brands to their friends and colleagues. There are ethnic variations towards global and Indian fast food chains. Global brand of food chains generated more good word of mouth publicity compared to Indian food chains. Demographic factors play a role in the patronage of fast food chains. Research limitations/implications – One of the limitations of this research is the study adapts the theory and method of the trust-commitment-loyalty explanation chain and examines the consumer survey adapted from a study of Sahagun et al. (2014) on fast food for emerging markets. Only India is studied, but the addition of other countries like Brazil, China, Russia and South Africa can add value. Practical implications – Fast food managers had to illustrate the satisfaction on affective response, such as quality of food, convenient location, variety, service and value for money. Demographic variables like gender, age, education, income and ethnicity, global and local Brand will affect the perceptions. Originality/value – This is the first attempt to study the loyalty of consumers in emerging markets, which is witnessing the entry of many fast food global chains. It studies the demographic variables effect on the loyalty and the behaviour of consumers and compares to local and global brand fast food chains. The research will be use to global managers who are planning to expand in emerging markets like India.

2018 ◽  
Vol 23 (1) ◽  
pp. 117-138 ◽  
Author(s):  
Yeonsoo Kim ◽  
Mari Luz Zapata Ramos

Purpose The purpose of this paper is to examine how stakeholders perceive the motives behind fast food companies’ public health-related corporate social responsibility (CSR) and general social issue-related CSR initiatives, and their responses toward CSR in terms of supportive communication intent, investment intent, and purchase intent. The authors further examine the impact of perceived CSR motives on intent and whether a healthier chain image has an effect on stakeholder responses. Design/methodology/approach An online experiment was conducted. This study employed a randomized 2 (CSR type: health-related CSR vs generic social issue-related CSR)×2 (chain image: healthier chain vs general fast-food chain) full factorial design using general stakeholder samples. Findings For an ordinary fast food restaurant, generic social issue-related CSR programs elicited significantly more positive perceptions of CSR motives, supportive communication intent and investment intent, than public-health related CSR. When a company has a healthier image, stakeholders do not distinguish between CSR types. Stakeholders perceive both CSR types as stemming from mutually beneficial motives and show neutral to slightly positive reactions to both CSR. A positively perceived CSR motive plays a determinant role in anticipating communication, investment, and purchase intents. Originality/value This is the first study that examines stakeholder perception of motives behind and responses toward fast food chains’ health-related vs generic social issue-related CSR initiatives, in light of corporate image. The study findings help public relations practitioners, public health professionals, parent groups, and legislators understand stakeholders’ reactions toward CSR initiatives in the fast food industry and help them monitor practices for improvements.


2016 ◽  
Vol 10 (1) ◽  
pp. 53-71
Author(s):  
Pramila Rao

Purpose This empirical research was conducted in a medium-sized private university located in the north-eastern region of the USA. The purpose of this paper was to understand whether demographic attributes (age, gender, country of origin and years of stay in the USA) of international students will predict any preferences for specific teaching methods. This study was conducted with international students from October 2012 through May 2013 (fall and spring semesters). Design/methodology/approach This research paper provides hypotheses to explore whether there is any relationship between demographic factors and preferences for various teaching methods. This study analyzes the results using both Pearson’s correlations and one-way ANOVA to reject or accept the hypotheses. Findings The results demonstrated that there were no significant correlations between the demographic variables of international students and teaching methods. However, the one-way ANOVA analyses suggested that there are differences among age groups and their preferences for group projects, years of studying in the USA and their preferences for classroom discussions, and gender and their preferences for textbook assignments. Practical implications This study suggests that scholars provide orientation or training on the host country’s pedagogies so that international students can assimilate better into their academic communities. Originality/value This pioneering paper examines the role between demographic variables of international students and teaching pedagogies. This specific concept has not been examined in this literature before. This understanding could contribute to a richer understanding of this population of students.


2019 ◽  
Vol 37 (3) ◽  
pp. 418-431
Author(s):  
Samson Oluseun Ojekalu ◽  
Olatoye Ojo ◽  
Timothy Tunde Oladokun ◽  
Sumoila Aremu Olabisi

Purpose Although a substantial amount of research on the effect of demographics on service quality perception can be found in the extant literature, practitioners and researchers in the built environment, especially property managers, know little or nothing about the influence of demographic characteristics on service quality in Nigeria. Hence, the purpose of this paper is to examine the effect of demographic variables of the occupiers of shopping complexes on the perception of service quality of property managers. Design/methodology/approach Primary data were used for the study through questionnaire administration. Ibadan was stratified into five axes using existing major roads where shopping complexes were highly concentrated. Based on the Oyo State Ministry of Land, Housing and Survey (2017) database, there were 33, 65, 48, 64 and 66 shopping complexes on each identified major road. A systematic sampling technique was adopted to select 57 (20 per cent) out of 276 shopping complexes and 192 (10 per cent) out of 1,919 occupiers of the shopping complexes in the study area. In total, 157 occupiers responded to the questionnaire, and data were analysed using mean, independent t-test, and one-way ANOVA. Findings The study found that the gender and education of the occupiers significantly influenced service quality perception, whereas the age of the respondents was insignificant. Specifically, female occupiers rated the service quality of property managers better than their male counterparts. Through η2, the effect size of gender on service quality perception was small (17 per cent) and effect size on the level education of the occupiers was also small (13 per cent). The age of occupiers did not significantly influence service quality perception. It is expected that the findings of this study will help property managers to understand the effect of various demographic variables on service quality perception for enhanced property management practice. Practical implications The findings suggested that the property managers of shopping complex should structure their services to best accommodate occupiers’ demographics. Moreover, property managers can use the findings to guide demographic-driven marketing strategy to target and attract more tenants efficiently. Originality/value The study is one of the few studies that examined the effect of the demographic characteristics of occupiers on service quality perception that could enhance given individualised attention to occupiers.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mehmet Emin Yildiz ◽  
Yaman Omer Erzurumlu ◽  
Bora Kurtulus

PurposeThe beta coefficient used for the cost of equity calculation is at the heart of the valuation process. This study conducts comparative analyses of the classical capital asset pricing model (CAPM) and downside CAPM risk parameters to gain further insight into which risk parameter leads to better performing risk measures at explaining stock returns.Design/methodology/approachThe study conducts a comparative analysis of 16 risk measures at explaining the stock returns of 4531 companies of 20 developed and 25 emerging market index for 2000–2018. The analyses are conducted using both the global and local indices and both USD and local currency returns. Calculated risk measures are analyzed in a panel data setup using a univariate model. Results are investigated in country-specific and model-specific subsets.FindingsThe results show that (1) downside betas are better than CAPM betas at explaining the stock returns, (2) both risk measure groups perform better for emerging markets, (3) global downside beta model performs better than global beta model, implying the existence of the contagion effect, (4) high significance levels of total risk and unsystematic risk measures further support the shortfall of CAPM betas and (5) higher correlation of markets after negative shocks such as pandemics puts global CAPM based downside beta to a more reliable position.Research limitations/implicationsThe data are limited to the index securities as beta could be time varying.Practical implicationsResults overall provide insight into the cost of equity calculation and emerging market assets valuation.Originality/valueThe framework and methodology enable us to compare and contrast CAPM and downside-CAPM risk measures at the firm level, at the global/local level and in terms of the level of market development.


Author(s):  
Adriana Beatriz Madeira ◽  
Viviana Giampaoli

Purpose This study aims to understand how the institutional and populational characteristics of a Brazilian city, that is, size, gross domestic product (GDP), life expectancy, education, violence and amount of workers benefiting from PAT (Workers’ Food Program) bias the agglomeration of fast-food companies. Design/methodology/approach The research involved 7,653 units distributed among 270 brands of fast-food chains (9 foreign and 261 Brazilian) operating in 542 Brazilian cities in 2015 and institutional and populational characteristics information about them. It calculated the Herfindahl index and implemented mixed inflated beta models. Findings The study found out that the agglomeration of establishments is mainly associated with the city’s income per capita, education, GDP and with some differences regarding the origin of the company, Brazilian or foreign. Research limitations/implications The limitations of the study are the availability of Brazilian cities' data and information about the fast-food companies, such as governance-related information and general infrastructure. The study was cross-sectional, which does not analyze the business installation speed. Practical implications This work provides data collection and analyzes which factors may contribute to the knowledge of the Brazilian fast-food market. It stands out that foreign companies do not seem to contemplate city violence. The proposed models can serve as an investors’ foundation to start, expand business and predict the number of establishments in a city. Originality/value The study highlights the relation between the cities’ institutional and populational characteristics and the aggregation of fast-food chains in Brazilian cities, using index commonly applied in industrial agglomeration.


Author(s):  
Nila Wiese

Purpose The purpose of this paper is to explore the interplay of institutional quality and market potential factors on the agglomeration of foreign fast-food franchises in major cities in Central America. Design/methodology/approach The authors approached the research question through a regression analysis of the main fast-food chains operating in the 41 largest cities in Central America. The exploratory analysis in this paper attempted to discover the statistical relationship between institutional quality and market potential factors on the agglomeration of fast-food chains in specific cities. The paper also examined the spatial distribution of fast-food units in selected cities to try to discover specific patterns on the selection of specific locations within each city. Findings The findings of this paper suggest that population size and institutional quality in terms of regulatory efficiency were the two most significant predictors of fast-food chains agglomerations in selected Central American cities. The authors also found a negative interaction between market potential and institutional quality on agglomeration of fast-food restaurants, whereby a relatively weak institutional environment might deter investors, even if initially a market offers moderate potential. Finally, they found specific geographic patterns for the chosen locations of fast-food places that signal to a preference for urban locations with easy access to main thoroughfares, high commercial traffic and more affluence. Research limitations/implications The small sample size was a major constraint. Moreover, population size as a measure of market potential was available for all cities, but other city-level indicators were only available for a small number of cities. The preliminary results aligned with the predictions in this paper, yet the generalizability of the findings of this paper is limited by the sampling and measurement issues noted above. Finally, the paper did not include all fast-food chains in the cities examined, and inclusion of more foreign and domestic chains should be considered in future studies. Practical implications Local governments should consider the factors that impact franchise chains’ decisions to enter a market and the specific locations in which they choose to locate their units. Improving the quality of local institutions could be instrumental in attracting investment. Originality/value Very few studies have focused on Central America as a recipient of investment by fast-food chains. The region is less than attractive in terms of both market potential and risk. Yet fast-food franchises have continued to grow over the past two decades, making the examination of their investment decisions worth studying. The inclusion of institutional quality at the city level is an additional contribution of this paper. This paper furthers our understanding of the factors that drive investment decisions of global franchisors in regions with low to medium market potential and medium to high levels of institutional risk.


2012 ◽  
Vol 2 (8) ◽  
pp. 1-14
Author(s):  
Reshma Nasreen ◽  
Sadaf Siraj ◽  
Sana Beg

Subject area Services marketing and marketing strategy. Study level/applicability The case is basically aimed at post-graduate management students; it can be used in strategic management courses. Students can understand McKinsey's 7S model with the help of this case as well as the seven Ps of service industry. Students can also gain an insight into the hub and spoke model. The case can also be used in courses of entrepreneurship. Case overview The case is primarily the entrepreneurial journey of Mr Samar Qureshi in a quick service restaurant business. The entrepreneur Mr Samar Qureshi at a very young age dreamt of opening up an Indian fast food chain. He worked hard to make his dream a reality. In a brief period of five years Qureshi's Fast Trax has reached the level of world-renowned fast food chains like McDonald's and KFC in terms of quality and ambience. Overcoming the hurdles and the challenges Fast Trax has 22 outlets in Delhi NCR. Samar has also introduced the fast food culture in a small town, Aligarh, and wishes to expand it further to other B class towns of India where people desire to go to fast food chains and to enjoy the high standards of food and service as are enjoyed by people living in metros. He has also been instrumental in changing the concept of canteen to restaurant in schools and colleges. The case discusses the challenges facing Fast Trax in the cut-throat environment of the fast food industry. Expected learning outcomes These include: highlighting the 7Ps of services in the context of a retail chain and establishing interlinkages between the seven Ss identified by McKinsey. Supplementary materials Teaching notes are available. Please consult your librarian for access.


2019 ◽  
Vol 31 (3) ◽  
pp. 317-336 ◽  
Author(s):  
James Lappeman ◽  
Kristin Ransome ◽  
Zach Louw

Purpose This paper aims to show that a generic bottom-of-the-pyramid (BoP) segmentation strategy does not represent a multi-country BoP consumer profile. A series of multinational entry failures has clearly shown that a one-size-fits-all strategy is inappropriate for emerging markets, especially in Africa. Design/methodology/approach The study analysed literature defining and profiling BoP consumers at both a global and local level using South Africa as a case study. Being Africa’s largest economy, South Africa was an ideal subject. The findings were then independently triangulated with seven experts for validation. Findings The results show that the South African BoP has eight characteristics that align with definitions in global BoP consumer literature. An additional five characteristics were identified that were not general BoP characteristics, and that applied specifically to South Africa. Practical implications The findings add to the growing evidence that BoP markets are complex and heterogeneous, and they make a case to consider each BoP market individually. As there is yet to be a model to define BoP market differences systematically, this study provides a foundation for new developments in BoP segmentation in Africa and in other emerging markets. Originality/value While there is evidence that BoP markets are complex and heterogeneous, there is yet to be a model to begin the process of defining these differences systematically to improve strategic direction for multinational companies and regional decision makers. This study, therefore, provides a foundation for new developments in this field of segmentation in Africa and in other emerging markets globally.


2018 ◽  
Vol 8 (4) ◽  
pp. 1-22
Author(s):  
Praveen Gupta ◽  
Ankita Nagpal ◽  
Diksha Malik

Learning outcomes Students after reading the case will learn about the issues and challenges of expansion in emerging markets. Global expansion versus multinational expansion. Stardardization versus localization. Socio-cultural aspects in international marketing. Leadership succession in multinational companies. Case overview/synopsis The case is about Starbucks’ journey of global expansion. It focuses on challenges in emerging markets. It also talks about the challenges to new CEO Kevin Johnson post stepping down of iconic leader Howard Schultz. Complexity academic level MBA Executive MBA Specialisation in Strategy, International Marketing. Supplementary materials Teaching Note are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 5: International Business.


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