Consumer Behavior and Restaurant Branch Characteristics

Abstract:

The purpose of this study is to identify the consumer’s behavior pattern regarding the Restaurant Branch Characteristic of Pizza Hut in Pakistan. This research has brought out how the branch location, branch ambience, branch crowd, branch service and branch size have an effect on consumer behavior and attracts and motivate the customers to visit any specific branch restaurant. For this study sample size of 100 consumers from different branches has been taken randomly on the basis of convenience sampling. Results obtained from the analysis showed that there is a positive relationship between the branch characteristics and the consumer behavior.

Keywords: Branch location, Branch ambience, Branch crowd, Branch service, Branch Size, Consumer Behavior, Consumer satisfaction

1. Introduction

In human life, Food is the most important element and it constantly plays an elementary role whether we live to eat or eat to live. Right from the start of this world, the food considered as the vital part for the necessity of the human body. The importance of food cannot be ostentatious from the physiological perspective only but at the same time food provides human being nourishment and also classified as a basic need of life. Food can also be differentiated as an item for consumption used to explain self actualization. Thus, an individual can argue that the food plays a multiplicity of roles mutually at individual and group level.

1.1 Overview:

The dining practice is the part of hospitality industry which is very complex as in term of customer satisfaction and expectation meet. This difficulty is due to the level of customer participation in the service process. Companies are paying consideration in evaluating, studying, and implementing the marketing policy with the aim of gaining utmost market share of consumers and improving consumer maintenance in investigation of the beneficial effects on the financial performance for the business. In this study, our outline of this study to evaluate the consumer behavior while selecting any specific branch of Pizza hut. There are approximately 40 branches of Pizza hut in all over Pakistan. During the past four decades Pizza Hut has built a reputation for excellence that has earned the respect of consumers and industry experts alike. Building a leading pizza company has required relentless innovation, commitment to quality and dedication to customer service and value. The qualities of entrepreneurship, growth and leadership have characterized Pizza Hut’s business through more than four decades of success. Through the strength of its heritage, its culture and its people and franchisees, Pizza Hut looks forward to more success in future.

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Consumer behavior is a blend of perceptions, values and preferences. Beliefs are more susceptible to marketing than values for the reason that beliefs are subject matter to emotion and knowledge. An attitude and a behavior is an evaluation whether it’s negative or positive of a social action. An attitude toward something must not to be taken to involve that attitude constant behavior will automatically follow. The main focus of this study is to discover the consumer behavior according to the branch ambiance of Pizza Hut by focusing the factors of consumer preferences of choosing a branch of Pizza Hut restaurant that attract and motivate the customers to visit any specific branch. This is important to know that role of customer behavior because by this way the customer intentions can be determined and also give the better idea that the customer would visit to those restaurant branches again or not.

1.2 Outline of the Study:

In order to study the behavior of the people to visit the branches of Pizza Hut restaurant is conducted. There are various numbers of factors that contributes towards the selection of the branch of any restaurant in the mind that has the impact in the consumer mind. This research focus on the factors those are important in the mind of the customers or on top on their preference to visit any branch of Pizza Hut. The factors that are selected for the said study are branch location, branch ambience, branch crowd, branch service and branch size. These branch characteristics have been used to analyze the reason of consumer’s behavior to visit to any branch of Pizza Hut restaurant. Basically the restaurants industry based on valuing to customer and their wants should be met. The general concept of dining experience is most critical while considering influential factor cause it’s not necessary the review research focused on all factors which are treated as dining factors.

1.3 Statement of the problem:

To study the consumer behavior regarding the selection of any specific branch of Pizza Hut due to the branch characteristics that attracts and motivate the customers to visit any specific branch restaurant.

Branch Characteristics includes the following:

Branch location refers to the place where in actual the branch is situated. It comprises of the place or area the way towards it and the surroundings of that branch. Branch Ambiance is associated with a feeling mood or state with a particular environment. The surroundings lightings of the branch it colors the dressing of the staff all contributes towards the development of the ambience in any branch. In servicing industry like the restaurant business ambience is of the prime importance in order to attract, retain and entertain their respective customers. Branch crowd includes the type of customers visited to the particular branch of Pizza Hut. It includes type of people visited to the specific branch. A Branch service means the service quality given by the management to the customers at the particular branch of the customer. Branch Size is the occupied space by the branch that mainly includes the dining place, space and seating arrangement.

2. Literature Review

Eating is a daily act and need for all human beings. Depending on individual’s reason for eating at restaurants, person intentionally calculates a diverse set of features in front of choosing a restaurant. The implication involved to the restaurant attributes is eventually appraised in the consumer’s mind, leading to a decision of choosing a restaurant (Wakefield, 1996).

The food industry is highly aggressive and patrons have also become more demanding due to sufficient knowledge and information they have about the different trends in restaurant industry which causes increase the significance of effective marketing strategies to get the competitive advantage in order to understand the wants and needs of the customers (David, 2005). Nowadays, it is fairly clear that restaurants must not be designed just in order to meet up the functional needs of the customers but at the same time it must be attractive and eye catching as well. That is the main reason design; location and size are accentuated as key marketing elements by studying the customer preferences (Kuo, 1999)

The significance of elevated quality service given to business success, there are various prospective benefits for the management of restaurants from performing a customer-based assessment of the service quality veteran at their organization. In restaurant industry, the intangible nature of services means that particular specifications for the homogeneous quality of service are complicated if at all probable to set. This sometimes put together it difficult for restaurant managers, workforce and consumers to calculate, measure, assessment or confirm service productivity and service quality (Cullen, 2004)

Restaurant service engages a performance in which consumers are concerned in the whole service procedure. This is due to the interaction of the clients with the service ambiance and employees throughout the consumption experience, considerate consumers’ sentimental reaction turn out to be vital in replicating contentment in a service ambiance. Restaurant Services has the affective processes all through the utilization stage play an instantly, unmediated role in influential customer satisfaction (Rossiter, 1978).

In restaurant services, consumers habitually act like detectives as they examine for information and normalize their opinions into a set of mindset about the resultant service. The intact obsession in association to the dining features of a restaurant initiates from the dining table communicate to the consumers, with the table top used, if realistic sign apprehension the procedural excellence of the service, mostly relating to the service is bringing out competently (Radocy, 1997).

The dining attributes includes the range, quality of the menu and presentation of food offerings. By means of this information, restaurant must focus their hard work on ensuring an attractive collection of drink offerings offered in alluring and unique ways. Foodstuff and drink quality is an essential dining attributes for diners representing restaurant should verify an insistent quality control schedule to make sure foodstuff and drink quality should sustain (Kuo, 1999).

Understanding consumer behavior to get Customer satisfy is vital to the restaurant management for the reason that it is normally assumed to be a noteworthy determinant of replicate sales, customer loyalty and affirmative word of mouth. The more pleased the customers, the larger are their retention. The impacts of customer behavior on customer retention are bringing into being to be momentous and positive. Specially, the customer behavior will influence the intentions of consumers (Grimes, 1992).

Service quality is defined as a nil defects doing it right for the first time. Information and knowledge about goods quality is inadequate to recognize service quality. In customer’s mind when there is no defect in the overall dining service, then they consider the quality of the food and services is good enough for them. Understanding of consumer perception of service quality and value is especially important to international service firms because such perceptions are susceptible to cultural differences (Johnson, 2004). The research shows that the effect of physical appearance on behavioral purposes for restaurant customer and finds that influence as a stronger mediator between behavioral intentions and tangible quality constructs when cognition influence actions standard is applied to the location of restaurant (Bitner, 1992).

The majority of the preceding customer satisfaction researches have paid attention on recognizing the resource of customer contentment such as characteristic and attributes and on determining useful ways to establish consumer’s desires, wants and needs. On the other hand, significant dissimilarity comes out in the level of specify of the characteristic investigated. It was found that substantial quality has a better indirect effect than the directly affect signify facilitating the relationship among concrete quality and behavior. The significance of the apparent excellence to get the loyalty effect in restaurant industry is considered as a chief element to keep in the consumers and the business (JaksÏa, 1999).

Figure 2.1

Schematic review of the concept of acceptance placed in the context of consumer preferences and satisfaction

The peculiarity between preferences and expectations is regularly indistinct even if the concepts are discrete. Expectation is used to some extent contradictory senses. The act of expecting is a faith concerning what will take place in the prospect. These definitions are able to be eminent from preference that pass on to several preferred state and imply to more than a single state is probable and so as to there are various options. Unfortunately expectation is furthermore used limply to imply a demand for something plus in this sagacity is a sort of strong preference (Flynn, 1994).

Branch communications engage a variety of verbal, aural and non verbal descriptions, used together to detain and grasp customers’ interest and to serve up as reclamation indications for later evoke. These mentioned elements can narrate to the branch identity in a significant way. Considerably, the most broadly examined elements are pricing and quality of the food (Rossiter, 1978).

The main cause in this industry are the entry barriers that are generally low and any one can by far enter due to low investment required. Whenever consumer is satisfy from the arrangement by the management, the food quality give by the restaurant employee with the affirmative approach than this may increase the constancy towards the particular restaurant increases in the business revenue the word of mouth publicity of the particular restaurant (Cullen, 2004).

It has been studied that a consumer gets effortlessly fascinated by more novel and complex exterior feature of restaurants. Likewise, this also leads customers to an encouraging buying feeling and leads them to visit this eye-catching restaurant. Considerate how the branch attracts the attention of the consumer’s from the other different restaurants, exterior looks is the initial step that show the way to success and if this can additional direct the consumer to a affirmative mood and feelings (Milliman, 1986).

The restaurant’s entire setting, the atmospherics and the ambience are constantly very important in determining both consumers and front line employees’ approach about the procedures and service delivery result. This necessitates that; it was exceptionally significant that the understanding of the tangible force on service quality, like generous and physical facilities, along with the appearance of personnel. Play areas are the additional facility provided by some of the branches in order to attract small kids and the crowd are also the indicator for attracting the customers depending on the nature of the restaurants (Bitner, 1992).

Customer behavior is a key element for the planning of the marketing in view of the fact that satisfaction does sway customer’s intention to loyalty of a consumer to the branch. Therefore, marketers are supposed to look into the issues that would have an effect on customer preferences intensity. Besides, as customer prospect are altering over time and it is advised to determine the customer satisfaction, preferences and expectation on regular basis and grip complaints timely and effectively.

3. Research Methods

The food industry is highly aggressive and patrons have also become more demanding due to sufficient knowledge and information they have about the different trends in restaurant industry which causes increase the significance of effective marketing strategies to get the competitive advantage in order to understand the wants and needs of the customers with the purpose of securing long term loyalty of the customer to their brand. A description of the approach used to develop the questionnaire for consumer testing Pizza Hut in a commercial environment.

Sampling technique and Sample size:

Sample size used for this study was 100 respondents. The sampling technique used in this study was convenience sampling method.

Respondents:

The data used in this research was collected from the customers including both male and female having the age from 14 and onwards from different branches of pizza hut restaurants. Mostly respondents gave us the positive feedback.

Procedure of data collection:

Data would be collected through survey by visiting at several branches of pizza hut which is a personal way of collecting data.

Customer’s waiting time when they were waiting for their turn to get seated in peak times

While customers are selecting the salads from the salad corner.

4. Research Results

The restaurant industry has undoubtedly not been free from either augmented competition or from increasing customer expectations regarding quality. In the greatly competitive food industry, large operators chain have a propensity to gain competitive gain in the course of cost leadership, likely only due to standardization and economies of scale beginning from large market shares, while smaller, independent restaurants on the other hand endeavor to gain benefit through differentiation. The food industry is greatly aggressive and customers have also grown to be more demanding due to adequate awareness and information they have about the diverse styles in restaurant industry which increase the consequence of successful marketing strategies to obtain the competitive advantage to understand the requirements and desires of the customers

Table 3.1

The above table divides the data in terms of gender. Gender is one of the most important demographic factors when it comes to the behavioural studies. In order to get the equal and variety of responses, the selection of the respondents was taken up with great care of so, that different aspect would be covered and highlighted. In the above data set the no of mail respondents were 44 and the total no of female respondents were 56. The male represents the 44% of our data set while the female is on majority and represents 56% of the total data set.

Table 3.2

Customer behavior and preferences are the key element for the planning of the marketing in view of the fact that satisfaction does sway customer’s intention to loyalty of a consumer to the branch. Therefore, marketers are supposed to look into the issues that would have an effect on customer preferences intensity. Besides, as customer prospect are altering over time and it is advised to determine the customer satisfaction, preferences and expectation on regular basis and grip complaints timely and effectively.

The above table displays the rating of factors with respect to the importance in the perception of the customers that affects the consumer behavior while selecting the branch. The total sample size for the analysis was equal to 100 (N=100).

If we analyze the above table the mean value of the branch service among all of the variables is on the higher side its value is equal to 3.52 approximately 4 conveys an idea that the service provided by any branch is the most important factor among the all that have been studied for the said study. Branch service includes the welcome given by the staff of the branch to its customers, the time they took to book the order of their customers, the way staff members respond to the order of the customers and in the time of need help their customers to get things finalize for the final order placement. The second most important part of the branch service is the serving time (time they take to serve the order) a more delayed serving of the order develops the bad impression about the branch and there would be a less likelihood of the customers to visit the particular branch again. If we study in too deep the branch service also incorporates the attention of the staff after the placement of the order it doesn’t mean that one staff member should always be standing on the head of customer but, to make sure that if people would be required with any other thing during their meal time it should be provided on time. Branch service is the most important factor in the mind of the customer and the branch managers should take care that their service quality is on higher side and doesn’t ever compromise on it which helps them to get the customer satisfaction which is defined as the consumer’s fulfillment response. It is a judgment that the service or product features, its attributes provided a delightful level of consumption associated achievement including levels of under fulfillment or over fulfillment. This definition of satisfaction proposes that the assessment method covers the whole utilization experience and this creates the preferences for a particular branch by a consumer. This feature is essential in the learning of consumer satisfaction and preferences in services, given the empirical, interactive character of service encounter. It facilitates in creating feelings and develops sense of affection towards the particular branch restaurant resulting in a stronger influence on consumer behavior towards the branch. Restaurant strives for instructive affirmative feelings to their brand name by stage management tangible attributes. Consumers compare service quality with cost to determine service value with one branch to another. Service cost is basically what consumers have to give up or sacrifice to obtain a desired service. Since it has a negative impact on consumers’ budgets, it would have a negative influence on their perceptions of service value. The concept of cost can be extended to include nonmonetary cost such a service time. Service time is the amount of time during which a service is provided. Since most customers would like to have faster services, service time would affect perceived service value in the same way monetary cost would

After the Branch service the second most important factor in our study is the branch location the place where the branch is situated. The mean value of the branch location is 3.25 approximately 4 means customer also think of this factor while deciding which branch to opt for their meal time. Branch Location includes the availability of the parking, reputation of the area, past record of criminal activities and lot more. Branch location is also one of the most important factors while visiting any branch for the meal. The convenience of location is very important that includes the parking space, seating availability in the restaurant; the nearness to roof-tops like people’s residence, hotels, and motels is significant for the accomplishment of restaurants all through the dinner mealtime duration. The cost of attaining parking near to a restaurant is sighted as a non-revenue generating expenditure. The impact of location of branches and food service has a positive association with the consumer behavior due to the reason of busy schedule of the people nowadays. Some customer prefers buying the food or dining in the restaurant located nearer to their offices and/or home.

The third most important factor is the branch crowd, if we look at its mean values it is around 2.35. On the basis of our analysis scale, it is rated as some way in between unimportant and neutral means that in the selection of the branch outlet is also considered after the above two that we discussed earlier. Usually the people belong to the upper class visit the selected restaurant outlets, the crowd factor is of least important but, it is important as it has been observed in the restaurant industry that people from the upper class opt those branches that have a high number of visiting people belong to the upper end class. Factors like branch size and ambience are of not that much important comparing to other factors in our results this is due to the fact that the selected outlet is on the higher side in these terms. In restaurants tangibles are appropriate to the restaurants physical facilities, paraphernalia and manifestation of personnel. While restaurant consumers do not take delivery of only serving of food, but also a huge component of service, they undeniably depend on earlier indication in the deficiency of tangible verification by which to measure service quality. In restaurant branches ambiance fundamentals are surface and texture, smell, color, sound, and texture inducing intuitive reactions in restaurant atmosphere that persuades purchase likelihood known as the mechanical clues. For paradigm, the aroma of chocolate chip cookies baking generates affectionate feelings, and stimulates their enthusiasm for a treat. The restaurant’s entire setting, the atmospherics and the ambience are important in determining both consumers and front line employees’ approach about the procedures and service delivery result. This necessitates that; it was exceptionally significant that the understanding of the tangible force on service quality, like generous and physical facilities, along with the appearance of personnel. In our result, ambiance might not be the most important factor due to not having any Play areas that considered additional facility provided by some of the branches of differences food chains in order to attract small kids also the indicator for attracting the customers depending on the nature of the restaurants

The selected outlet branches are already known for their ambience and size; they have adopted a theme for their restaurant that has been practice in each of their branch so, when customer visits any of their branches they find out the same theme therefore, in the selected retail outlet its importance is on very lower side.

Below are the pie charts representing the two most important factors of the study branch location and branch service. The other factors are not significant as these two are their pie chart are as follows

3.3 Branch Service Statistics

The above pie chart represents the most important factor in our study that is Branch Service if we study the above pie chart the responses were constant in the three categories means that people have mix responses with respect to the branch service of the selected outlets. The 52% of the respondents were considered the Brach service is the important factor when it comes to select ion any outlet. Mangers do focus and make corrective action in their services of the respective branch.

3.4 Branch Location Statistics

The above pie chart represents the second most important factor in our study that is Branch Location if we study the above pie chart the responses were mixed in the selected categories means that people have mix responses with respect to the branch location. The 38 respondents were considered the Brach Location is the Highly Important factor when it comes to selection any outlet. Top Management does focus and should perform the background study before choosing any location for the opening of their branch.

4. Conclusion

In today’s promptness and increasingly more competitive market, the bottom line of a company’s strategies is to make income and add to the development of the company. Customer gratification, superiority of the service, satisfaction, quality and retention are the matters that persuade all organizations including profit or non-profit large or small and multinational or national.

Customer behavior for restaurant branch is regularly used as a sign of whether consumer will come back to a restaurant. Whereas there is no agreement of a satisfied customer’s repeat visit, it is nearly certain that a not satisfied consumer will not return. A study of the basics or attributes of consumer preference be supposed to give indication concerning what action a restaurant service manager must take to raise the probability that consumers will appear back. It appears that study is not often concluded that the remarkable rate of malfunction in the restaurant service industry advices that the management can find the targets of converting consumer preference into financial achievement a vague one. We accept as true that restaurant failures are partially a consequence of management’s lack of strategic direction in determining and focusing on customer contentment and preference.

Research has shown that Consumers consider branch service, Branch Location and Branch Crowd as the most important element while choosing any Pizza Hut branch. Achieving the customer satisfactions leads towards market share as well as loyalty towards restaurants and to maintain the progress which is necessary to keep the effective measure in terms of customer demands and fulfillments. Though, it is understood that restaurant possessor would like to identify the strongest influence on re-patronage intentions. A study divulges that customer behavior is the better predictor of intention comparing to service quality to repurchase. Increasing trend in re-patronage is always due to service quality which is provided by the management to the consumers and at the same time customer should be satisfied. Any of the factor missing may cause the decrease in loyalty of the customer towards that particular branch and customers would be unwilling to re-visit for dining to the same restaurant.