CHAPTER 1: INTRODUCTION 1. 0 THE INTRODUCTION OF THE STUDY The topic of the research is ‘Customer Loyalty towards Fast Food Industry’. The introduction will discuss the background of study that is planned by researcher. This includes problem statement, objective of study, research question, research hypothesis, the theoretical framework and also scope of the study. This proposal consist the introduction part, the literature review and research methodology. Each of these chapters is explained in detail with the sub topic that discusses the essential procedures and steps in completing this study.
Customers are the purpose of what marketers. We very much depend on them. That is the main reason why organizations today are focusing on customer loyalty. Customer loyalty is actually the result of an organization creating a benefit for a customer so that they will maintain or increase their purchase from the organization. Loyalty has become important over the past few years because of increased competition within respective industries. To be successful, organization must look into the needs and wants of their customers.
That is the reason why many researchers and academicians have continuously emphasizes on the importance of customer loyalty and retention. Building customer loyalty towards fast food industry or other business of four factors that is product quality, the important of relation between people that involve in management of the store and lastly are brand image of the product itself. (Kumar, Batista and Maull, 2011) 2. 1 BACKGROUND OF FASTFOOD INDUSTRY Fast food restaurants or outlets today are either kiosks or elaborate quick service restaurants.
The franchise operations have generated restaurant chains that offer standardized meals across the globe. On account of a low capital requirement and popularity of fast food, fast food restaurants and drive-through outlets are common throughout the world. Also known as sit-ins and upscale kiosks, these restaurants cater to the dry food demands of the younger generation, extremely tight adult work schedule and distinct ambiance preferences across the globe. An overview of the fast food industry highlights the availability of meals that suffice the need to eat amidst tight work schedule.
This has offered great respite to parents who shuttle between work and home for major part of the day. Delicacies like fish and fries, vegetarian and non-vegetarian burgers and pizzas are washed down with great relish, with ales and aerated drinks served complimentary at many of these fast food restaurants. Though accompaniments like coleslaw, baked potatoes and mushy peas satisfy the established and widely accepted compulsion for vegetable-intake, the fried foods are becoming addictive, depriving the modern child of a balanced diet.
There is no dearth with regards to the variety available at these outlets. Fast food franchise chains such as Subway, Burger King, McDonald’s, Kentucky Fried Chicken and Pizza Hut cater to demands for seafood, lean meat, special diet meal components, and other considerable regional variations. Snacks such as sandwiches and baguettes are the result of experiments within the fast food industry. Most clientele indulge in the semi-dry and dry meals, to avoid interruption while working or to fulfill a family commitment that otherwise requires a considerable amount of time to be spent in the kitchen . 1. 1Fast food industry in Malaysia In recent years, the major food consumption trend in urban parts of developing countries is that more consumers are eating increasingly more meals outside of their homes and most of growth in away from home eating has been in the fast food sector (Kaynak et al, 2006). The interest shown at the national and international levels concerning the fast food is derived from the scarcity of time in the competitive, dynamic and urban fast life (Platania and Donatella, 2003).
According to Arkins and Bowler (2001), emphasis is increasingly being placed in quick meals solution due to the busier consumer life style and dual working families with children. Consumer lead increasingly busy life meaning that the time available to cook meal is being squeezed between works and leisure commitment. Cooking for many has ceased to be a leisure activity and instead is a core. Consequently, this has placed more emphasis on fast food items. Fast food is rapidly growing industry in the world as well as in Malaysia, especially in the urban areas.
Moreover, the food diversity in Malaysia is an implicit characteristic of the diversified culture of the country amongst the different region within the state. 1. 1. 2Background of KFC KFC, founded and also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky, United States. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952. KFC is present in 110 countries and territories around the world. It has in excess of 5,200 outlets in the United States and more than 15,000 units in other parts of the world.
KFC prides itself as a fast-food restaurant that give customers great tasting chicken with a selection of home-styled side dishes and desserts to make a wholesome, complete and satisfying meal. Kentucky Fried Chicken Corporation (KFC) was the world’s largest chicken restaurant chain and third largest fast-food chain in 2000. KFC had a 55 percent share of the U. S. chicken restaurant market in terms of sales and operated more than 10,800 restaurants in 85 countries. KFC was one of the first fast-food chains to go international in the late 1950s and was one of the world’s most recognizable brands.
KFC’s early international strategy was to grow its company and franchise restaurant base throughout the world. By early 2000, however, KFC had refocused its international strategy on several high-growth markets, including Canada, Australia, the United Kingdom, China, Korea, Thailand, Puerto Rico, and Mexico. 1. 1. 3Background of KFC in Malaysia The first KFC restaurant in Malaysia was opened in 1973 on JalanTunku Abdul Rahman. Today there are more than 390 KFC Restaurants nationwide and still counting. Great tasting chicken has become synonymous with KFC; and has been enjoyed by Malaysians ever since.
In fact, KFC Malaysia has developed a distinctive Malaysian personality of its own. The reason KFC is run by Malaysians and managed by Malaysians; they took it upon themselves to create a selection of food that would make Malaysia proud on the international scene. 1. 2PROBLEM STATEMENT Nowadays, it would be challenging to retain customers and maintaining customers as loyal customer. It would give paramount of challenges to researcher to ensure customers are loyal to them. This is because customer nowadays are have knowledge to choose the best for them and what will make customer become a loyal customer to certain product.
It is important for researcher to know how attract customer to become loyal customer. Customer tends to change product if the product can’t give them satisfaction. The right foundation for maintaining a long-standing relationship with customers will increase the chance to the customer loyalty. In this recent economy, put strong pressure on customer loyalty. According to Leon. G Shiffman (2010), company might have big disadvantage when not having loyal customer, because need more marketing efforts aimed at attracting new customers are expensive; indeed, in saturated markets, it may be impossible to find new customers.
For example, not popular bookstore might find problem in having new customer because it will cost them a lot. Generally, customer because loyal to companies when they’re reach higher level of satisfaction in their selves after using products or services that offered to them. It is because reach customer has different level of satisfaction that will bring them to become loyal to companies and the unique relationship between customer and company may be a viable contact point for firms to build loyalty. 1. 3THEORETICAL FRAMEWORK
CUSTOMER LOYALTY | PRICE| SERVICE| PRODUCT| BRAND IMAGE| 1. 4PURPOSE OF STUDY 1. 4. 1 To determine whether price affect customers loyalty 1. 4. 2To examine relationship between service to customer loyalty 1. 4. 3 To measure whether brand image are important in customer loyalty 1. 4. 4 To investigate the product role in the customer loyalty 1. 5RESEARCH QUESTION 1. 5. 1Does price contribute to customer loyalty? 1. 5. 2Does service give impact to customer loyalty? 1. 5. 3Does brand image influencing customer loyalty? 1. 5. Does product affecting the customer loyalty? 1. 6HYPOTHESIS 1. 6. 1Hypothesis 1 Ho: Price does not contribute to the customer loyalty H1: Price does give high contribute to customer loyalty 1. 6. 2Hypothesis 2 Ho: Service not gives impact to customer loyalty H1: Service gives impact to customer loyalty 1. 6. 3Hypothesis 3 Ho: Brand image does not influencing the customer loyalty H1: Brand image is a big influencer the customer loyalty 1. 6. 4Hypothesis 4 Ho: Product does not affecting customer loyalty H1: Product gives effect to the customer loyalty . 7SIGNIFICANT TO STUDY Businessman One of the alternatives to the businessman to find a way to improve the response from the customers. Besides that, they also will know the weaknesses from all aspects such as services, preparation of the menu, personnel, and others. By knowing all this weaknesses, the management can find the best way to overcome these weaknesses as well as can enhance the image of KFC. Researcher This study also important to the researcher in getting more information besides can gain more knowledge from the study that has done.
These findings can be made as references to the people that responsible in promoting this fast food restaurant as well as can improve the economy of the country. Customers Findings from the study that has done can give opportunity to the customers in expressing their satisfaction to the service that was provided by this fast food restaurant. 1. 8LIMITATION OF THE STUDY Time constraints Researchers really affected with the time period to finish this study because researcher need some time to get accurate info and study the info.
However, researcher able to produce this research report with guidelines. Budget Researcher also facing budget constraint because researcher only student and yet not gain sufficient money pocket. Respondents Researcher focus to distributed question at UiTM Kota Bharu because researcher not able to distribute at other site. CHAPTER 2: LITERATURE REVIEW 2. 0INTRODUCTION This chapter focuses on issues related to the customer loyalty in the fast food industry. The literature review in this chapter will present understanding of factors influencing the customer loyalty in the fast food industry.
Customer loyalty can be defines as “customer behavior characterized by a positive buying pattern during an extended period (measured by means of repeat purchase, frequency of purchase, wallet share or other indicators) and driven by a positive attitude towards the company and its products or services” (Looy, Gemmel & Dierdonck, 2003). Dimitriades (2006), define a loyal customer as one who holds a favorable attitude toward the service provider, recommends the service provider to other consumer and exhibits repurchase behavior.
In fact that loyal customers buy more products, loyal customers are less price sensitive and pay less attention to competitors’ advertising, servicing loyal customers is cheaper and last is loyal customer will spread positive word of mouth and refer other customers. Loyalty and experience gained over the relationship are positively related (Wang, Liang and Wu, 2006) Price is the amount of money charged for a product or service, or the sum of all the values that customers give up in order to gain the benefits of having or using a product or service.
The firm can choose between two broad strategies, market-skimming pricing and market-penetration pricing. Market-skimming pricing is setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price, the company makes fewer but profitable sales. Market-penetration pricing is setting a low price for a new product in order to attract a large number of buyers and a large market share. (Philip Kotler, Gary Armstrong). There are several measurement variables to qualify a person’s product-price knowledge.
Price mechanisms, price consciousness, the use of a shopping list, and shopping frequency, as determinants of the accuracy and size of, and confidence in, one’s product-price knowledge, even though the impact structure is not uniform. There are some indications that formerly encountered price stimuli represent a relatively obsolete part of a consumer’s product-price knowledge. (Hans Pechtl). Product is the key element in the overall market offering. According to Clayton Brown, Contributor, the product definition should be dynamic and reflect the needs of the company and the customer.
A product definition at least includes the elements of product positioning, product differentiation and product life cycle. (Brown, C. (2012). Product also can be defined as anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need (Philip Kotler, Gary Armstrong). Brand image can be defined as “set of perceptions about a brand as reflected by the brand associations held in consumers’ memory” (Philip Kotler, 2006). Jeffrey E. Danes and Jeffrey S.
Hess and York (2010) most agree that brand image is a mental constructs that customers form based on their connections and associations with the brand. Services are form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything (Philip Kotler, Gary Armstrong). CHAPTER 3: RESEARCH METHODOLOGY 3. 0INTRODUCTION Research methodology includes all the data and analysis phases for the research paper. It includes the data collection method from primary data like questionnaire and the secondary data which is from internet or website.
On the other hand, the other data collection methods are from observation and sampling. In order to analyze the data, the methods are frequency analysis, reliability test, regression analysis, and Pearson correlation analysis 3. 1 RESEARCH DESIGN Methodology can be defined as an approach used in the research process to assess the data. Methods are also such things as study design, population and sample, the study procedures and analysis methods data. Its aims to ensure data collection methods used in research studies is compatible with the objectives of the research objectives to be achieved.
According to Malhotra (2007) research design is a frame work or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problem. The researcher is the type of conclusive research that has as its major objective the description of something, usually the market characteristics or functions. 3. 2DATA COLLECTING METHOD Collection is the process of gathering, assembling and accumulation of information. There are two methods of data collection generating has been implemented, that is the primary data and secondary data.
For the purpose of this study, the researcher will gather the data from both primary and secondary data to complete this study. 3. 2. 1Primary Data The primary data sources are from the distribution of questionnaire. Researcher will build a set questionnaire that is related to the study and distribute to the respondent a) Questionnaire Researcher will use questionnaire method in order to gather the information. The questions contain the independent variables and dependent variable. A set questionnaire will be distributed to the respondent which is the customer of KFC KBMall. The respondent consists of 50 customers.
There are three sections in the questionnaire, which include personal detail of respondent. Section B will be including the question about independent variables that are, price, product, service and brand image. The last section is regarding the dependent variable which is customer loyalty. i. Nominal Question The questionnaire is based on the independent variable that researcher found through literature review and other information. In section A, the respondents need to answer nominal question. The respondents need to choose only one answer because in section A is about respondents’ profile such as gender, marital status or age. i. Likert Scale Question Other than that, researcher use Likert Scale in the section B and C where the respondents need to circle the answer which include the degree acceptance with factors that lead to customer loyalty. 3. 2. 2Secondary Data In this research, the data of secondary sources were obtained from both internal and external secondary data such as books, company’s reports, journals and also through selected websites. 3. 3SAMPLING METHOD 3. 3. 1Collecting the Sample of Respondents For this study, the researcher has selected 50 respondents who come to KFC KBMall by using the simple random method. 3. 4METHOD OF DATA ANALYSIS
In conducting the research, after respondents were determined, the researcher has analyzed the data using the Statistical Packages for Social Science (SPSS) version 17. 0. SPSS is also used to identify the relationship between two or more variables. Meaning that, it involves the process of hypothesis testing. By using the SPSS, ordinary simple linear regression model and multiple regression model analysis are selected in order to analyze and the test hypothesis. This technique is commonly used in business and economics for estimating the relationship between two or more values of dependent and independent variable.
CHAPTER 4: FINDING AND DATA ANALYSIS 4. 0INTRODUCTION This chapter will discuss the results and findings of this study by using frequency distribution, reliability, Pearson correlation, and multiple regression analysis. Before the analyses were thoroughly done, all data were edited and passes through the reliability analysis. At the end of the chapter, discussions about decision on hypothesis were reported. 4. 1 FREQUENCIES In the Section A, demographic session in questionnaire, the data will be calculated in the frequency distribution. 4. 1. 1Frequency Distribution Analysis by Gender
Responds to Gender| | | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Male| 14| 28. 0| 28. 0| 28. 0| | Female| 36| 72. 0| 72. 0| 100. 0| | Total| 50| 100. 0| 100. 0| | Table 4. 1 : Table of frequency analysis gender Figure 4. 1: Pie chart of frequency by gender Based on the table above, shows that 50 respondents that give feedback through questionnaire, there are 35 were female and the remaining 14 were male. From the frequency analysis result, the majority of respondent who dealing with KFC KB Mall were female rather than male. 4. 1. 2Frequency Analysis by Age Responds to Age| | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| 18-24 years| 22| 44. 0| 44. 0| 44. 0| | 25-29 years| 5| 10. 0| 10. 0| 54. 0| | 30-35 years| 8| 16. 0| 16. 0| 70. 0| | 36-41 years| 4| 8. 0| 8. 0| 78. 0| | 42 years and above| 11| 22. 0| 22. 0| 100. 0| | Total| 50| 100. 0| 100. 0| | Table 4. 2: Frequency analysis by age Figure 4. 2: Bar chart of frequency analysis by age Meanwhile, the result of the frequency analysis of 18 – 24 years is 44. 0% or 22 respondents. Furthermore, about 5 respondents are 25 – 25 years and the percentage of it is 10. 0%. For 30 – 35 years old respondents are about 8 respondents which are about 16. % And for 36 – 41 years old, by which the lowest frequency analysis of age used KFC services at KB Mall, about 4 respondents of it is 8%. The second higher percentage followed by respondent’s age 42 years and above or about 11 respondents which are about 22%. 4. 1. 3Frequency Analysis by Race Responds to Race| | | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Malay| 40| 80. 0| 80. 0| 80. 0| | Chinese| 9| 18. 0| 18. 0| 98. 0| | Indian| 1| 2. 0| 2. 0| 100. 0| | Total| 50| 100. 0| 100. 0| | Table 4. 3: Frequency analysis by race Figure 4. 3 : Pie chart of frequency analysis by race
The result from Figure 4. 3 shows the customers of KFC KB Mall is multiple races, which the rrespondents were Malay, Chinese, Indian and others. Malay’s respondents are the biggest percentage among the others which take 40 respondents or 80. 0%. Therefore, most of KFC KB Mall customer is Malay meanwhile Chinese respondent is the highest, which takes 10 of respondents or 20. 0%. Indian show the respondent is only 1 respondent or 2. 0% that used KFC KB Mall. 4. 1. 4Frequency Analysis by Marital Status Responds to Status| | | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Single| 27| 54. 0| 54. | 54. 0| | Married| 23| 46. 0| 46. 0| 100. 0| | Total| 50| 100. 0| 100. 0| | Table 4. 4 : Frequency analysis by marital status Figure 4. 4 : Pie chart of frequency analysis by marital status Table 4. 4 shows frequency analysis of marital status for 50 respondents. From 50 respondents, there are 27 of respondents or 54. 0% were single and about 23 of respondents or 46. 0% are married. Therefore, the researcher concluded that the customer of KFC KB Mall is single person because have higher percentage in the frequency distribution analysis. 4. 1. 5Frequency analysis by Education Level Responds to Education| | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| SPM/SPV/MCE| 5| 10. 0| 10. 0| 10. 0| | Diploma/STP/STPM/HSE| 4| 8. 0| 8. 0| 18. 0| | Bachelor Degree| 37| 74. 0| 74. 0| 92. 0| | Master Degree and above| 4| 8. 0| 8. 0| 100. 0| | Total| 50| 100. 0| 100. 0| | Table 4. 5 : Frequency analysis by education level Figure 4. 5 : Pie chart of frequency analysis by education level Table 4. 5 indicates that most of customer is at Bachelor Degree of education, which’s covered 37 respondents or 74. 0% of respondents. It is followed by customer from SPM/SPVM/MCE level with 5 respondents or 10. 0% respondents.
On the other hand, there are about 4 respondents or 8. 0% respondents who are having the qualification of from Diploma/STP/STPM/HSE and 4 other respondents from Master Degree and above Responds to Income| | | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Below RM1,000| 17| 34. 0| 34. 0| 34. 0| | RM 1,000 – RM 1,499| 6| 12. 0| 12. 0| 46. 0| | RM 1,500 – RM 1,999| 5| 10. 0| 10. 0| 56. 0| | RM 2,000 – RM 2,499| 1| 2. 0| 2. 0| 58. 0| | RM 2,500 – RM 2,999| 4| 8. 0| 8. 0| 66. 0| | RM 3,000 and above| 17| 34. 0| 34. 0| 100. 0| | Total| 50| 100. 0| 100. 0| | Table 4. 6 : Frequency analysis by income level
Figure 4. 6 : Bar chart of frequency analysis by income level Table 4. 6 indicates that 34% of the respondents have the personal income ranging below RM1,000. While, the next 34% of respondents have an income from RM3,000 and above. There are 12% of respondents have income ranging from RM1,000 to RM1,499, 10% of respondents have income from RM1,500 to RM1,999, 8% respondents from RM2,500 to RM2,999 and the last is 2% of the respondents’ income level is RM2,000 to RM2,499. 4. 1. 7Frequency Analysis by Occupation Responds to Occupation| | | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Government| 22| 44. | 44. 0| 44. 0| | Private| 3| 6. 0| 6. 0| 50. 0| | Business| 2| 4. 0| 4. 0| 54. 0| | Retired| 1| 2. 0| 2. 0| 56. 0| | Housewives| 1| 2. 0| 2. 0| 58. 0| | Student| 21| 42. 0| 42. 0| 100. 0| | Total| 50| 100. 0| 100. 0| | Table 4. 7 : Frequency analysis by occupation Figure 4. 7: Pie chart of frequency analysis by occupation Table 4. 7 indicates that most of respondents are working at a government sector with 44% or 22 respondents. It is follow by respondents who are students with 42% or 21 respondents. And for private sector, it contribute respondents at 6% or 3 respondents, follow by 4% from business.
Lastly is follow by retired and housewives which are each of them with 2% each. 4. 1. 8Frequency Analysis by frequency goes to KFC KB Mall per month Responds to Frequency| | | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Once per month| 26| 52. 0| 52. 0| 52. 0| | Two times per month| 8| 16. 0| 16. 0| 68. 0| | Three times per month| 10| 20. 0| 20. 0| 88. 0| | Four times per month| 3| 6. 0| 6. 0| 94. 0| | Five times per month| 1| 2. 0| 2. 0| 96. 0| | More than above| 2| 4. 0| 4. 0| 100. 0| | Total| 50| 100. 0| 100. 0| | Table 4. 8 : Frequency Analysis by frequency goes to KFC KBMall per month Figure 4. : Pie chart of Frequency Analysis by frequency goes to KFC KBMall per month Table 4. 8 shows that respondents who goes once per month to KFC KB Mall is the highest contribution to respondents which covered 52% or 26 of respondents. It is followed by three times per month which covered 20% or 10 of respondents. In the other hand, there are about 16% or 8 of respondents who goes to KFC KB Mall two times per month. Next is followed with more than above which 4% or 2 of respondents and the last is five timer per month which is 2% or 1 of respondents. 4. 1. 9Frequency Analysis by spending at KFC KB Mall Responds to Spent| | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Below RM15| 11| 22. 0| 22. 0| 22. 0| | RM16 – RM30| 14| 28. 0| 28. 0| 50. 0| | RM31 and above| 25| 50. 0| 50. 0| 100. 0| | Total| 50| 100. 0| 100. 0| | Table 4. 9 : Frequency Analysis by spending at KFC KBMall Figure 4. 9 : Bar chart of Frequency Analysis by spending at KFC KB Mall Table 4. 9 indicate that the highest spending by respondents are RM31 and above which 50% or 25 of respondents. The second is from RM16 to RM30 which 28% or 14 of the respondents and lastly is the lowest, spending below RM15 which is 22% or 11 of the respondents. . 1. 10Frequency Analysis by Types of Products at KFC KB Mall Responds to Products| | | Frequency| Percent| Valid Percent| Cumulative Percent| Valid| Kids meal| 4| 8. 0| 8. 0| 8. 0| | Family meal| 15| 30. 0| 30. 0| 38. 0| | Individual meal| 19| 38. 0| 38. 0| 76. 0| | Burger| 7| 14. 0| 14. 0| 90. 0| | Snacks and desserts| 5| 10. 0| 10. 0| 100. 0| | Total| 50| 100. 0| 100. 0| | Table 4. 10 : Frequency Analysis by Types of Products at KFC KBMall Figure 4. 10 : Pie chart of Frequency Analysis by Types of Products at KFC KB Mall Table 5. indicates that most of respondents are enjoy to choose individual meals where 19 respondents which are 38% of respondents. It was follow by family meals of 15 respondents where 30% of respondents. Meanwhile, the result for snack and dessert are 5 respondents where 10%. Furthermore about 7 respondents or 14% would buy burger. And lastly is follow by kids’ meal with 4 respondents or 8% respondents. 4. 2RELIABILITY ANALYSIS Reliability analysis is a measure of the internal consistency of a set of scale items. The more reliable a set of scale items, the more confidence score the researcher obtained.
According the Rules of Thumb about Cronbach’s Alpha Coefficient Size, there is value between 0 until 1. The closer result to 1, the more reliable the scale of variable. When the result is below than 0. 5, the reliability is not effective. Alpha Coefficient Range| Strength of Association| ; . 6| Poor| .6 to ; . 7| Moderate| .7 ; . 8| Good| .8 to ; . 9| Very Good| .9| Excellent| Table 4. 11 Rules of Thumb about Cronbach’s Alpha Coefficient Size Based on Hair et al (2003), the reliability test can be interpreted according to the strength using Rules of Thumb. 4. 2. 1Reliability Analysis for Customer Loyalty Reliability Statistics|
Cronbach’s Alpha| N of Items| .774| 5| Table 4. 12 Reliability analysis for customer loyalty This is the reliability test for customer loyalty, which the Cronbach’s Alpha value is 0. 774. It means that the questions are good to be asked to the respondents. 4. 2. 2Reliability Analysis for Price Reliability Statistics| Cronbach’s Alpha| N of Items| .796| 5| Table 4. 13 Reliability analysis for price This is the reliability test for price, which the Cronbach’s Alpha value is 0. 796. It means that the questions are good and reliable to be asked to the respondents. 4. 2. 3Reliability Analysis for Service Reliability Statistics|
Cronbach’s Alpha| N of Items| .990| 4| Table 4. 14 Reliability analysis for service This is the reliability test for service, which the Cronbach’s Alpha value is 0. 990. It means that the questions are excellent and reliable to be asked to the respondents 4. 2. 4Reliability Analysis for Brand Image Reliability Statistics| Cronbach’s Alpha| N of Items| .685| 3| Table 4. 15 Reliability analysis for brand image This is the reliability test for brand image, which the Cronbach’s Alpha value is 0. 685. It is means that the questions are moderate and reliable to be asked to the respondents. 4. 2. 5Reliability Analysis for Product
Reliability Statistics| Cronbach’s Alpha| N of Items| .721| 5| Table 4. 16 Reliability analysis for product This is the reliability test for product, which the Cronbach’s alpha value is 0. 892. It is means that the questions are very good and reliable to be asked to the respondents. The finding result for reliability analysis Variable| Cronbach’s Alpha| Strength of Association| Customer Loyalty| 0. 856| Very good| Price| 0. 916| Excellent| Service| 0. 720| Good| Brand Image| 0. 930| Excellent| Product| 0. 892| Very good| Table 4. 17 The finding result for reliability analysis 4. 3PEARSON’S CORRELATION OF COEFFICIENT
The researcher used this method to analyze if there is a measure relationship between two variables. The researcher used Pearson Correlation Matrix to test hypothesis because the questionnaire is an interval measurement of scale. Correlations| | | Price| Service| Image| Product| Response of customer| Price| Pearson Correlation| 1| . 938**| . 972**| . 986**| . 969**| | Sig. (2-tailed)| | . 000| . 000| . 000| . 000| | N| 50| 50| 50| 50| 50| Service| Pearson Correlation| . 938**| 1| . 949**| . 951**| . 926**| | Sig. (2-tailed)| . 000| | . 000| . 000| . 000| | N| 50| 50| 50| 50| 50| Image| Pearson Correlation| . 972**| . 49**| 1| . 984**| . 967**| | Sig. (2-tailed)| . 000| . 000| | . 000| . 000| | N| 50| 50| 50| 50| 50| Product| Pearson Correlation| . 986**| . 951**| . 984**| 1| . 979**| | Sig. (2-tailed)| . 000| . 000| . 000| | . 000| | N| 50| 50| 50| 50| 50| Response of customer| Pearson Correlation| . 969**| . 926**| . 967**| . 979**| 1| | Sig. (2-tailed)| . 000| . 000| . 000| . 000| | | N| 50| 50| 50| 50| 50| **. Correlation is significant at the 0. 01 level (2-tailed). | Table 4. 18 Summary of correlation data Correlations| | | Price| Response of customer| Price| Pearson Correlation| 1| . 969**| | Sig. (2-tailed)| | . 000| | N| 50| 50|
Response of customer| Pearson Correlation| . 969**| 1| | Sig. (2-tailed)| . 000| | | N| 50| 50| **. Correlation is significant at the 0. 01 level (2-tailed). | Table 4. 19 Correlation between price and customer loyalty Hypothesis 1 Ho: Price does not contribute to the customer loyalty H1: Price does give high contribute to customer loyalty The finding from the data released that customer loyalty and price value is 0. Even the result shows that the value is significant and high relationship between two variables. Correlations| | | Response of customer| Service| Response of customer| Pearson Correlation| 1| . 926**| | Sig. (2-tailed)| | . 00| | N| 50| 50| Service| Pearson Correlation| . 926**| 1| | Sig. (2-tailed)| . 000| | | N| 50| 50| **. Correlation is significant at the 0. 01 level (2-tailed). | Table 4. 20 Correlation between service and customer loyalty Hypothesis 2 Ho: Service not gives impact to customer loyalty H1: Service gives impact to customer loyalty The finding from the data released that customer loyalty and service value is 0. Even the result shows that the value is significant and high relationship between two variables. Therefore the H1 will be accepted and H0 will be rejected. Correlations| | | Service| Image| Service| Pearson Correlation| 1| . 49**| | Sig. (2-tailed)| | . 000| | N| 50| 50| Image| Pearson Correlation| . 949**| 1| | Sig. (2-tailed)| . 000| | | N| 50| 50| **. Correlation is significant at the 0. 01 level (2-tailed). | Table 4. 21 Correlation between Brand image and customer loyalty Hypothesis 3 Ho: Brand image does not influencing the customer loyalty H1: Brand image is a big influencer the customer loyalty The finding from the data released that customer loyalty and brand image value is 0. Even the result shows that the value is significant and high relationship between two variables. Therefore the H1 will be accepted and H0 will be rejected. Correlations| | Product| Response of customer| Product| Pearson Correlation| 1| . 979**| | Sig. (2-tailed)| | . 000| | N| 50| 50| Response of customer| Pearson Correlation| . 979**| 1| | Sig. (2-tailed)| . 000| | | N| 50| 50| **. Correlation is significant at the 0. 01 level (2-tailed). | Table 4. 22 Correlation between product and customer loyalty Hypothesis 4 Ho: Product does not affecting customer loyalty H1: Product gives effect to the customer loyalty The finding from the data released that customer loyalty and product value is 0. Even the result shows that the value is significant and high relationship between two variables.
Therefore the H1 will be accepted and H0 will be rejected. 4. 3REGRESSION ANALYSIS Model Summary| Model| R| R Square| Adjusted R Square| Std. Error of the Estimate| 1| . 980a| . 960| . 956| . 459| a. Predictors: (Constant), Product, Service, Image, Price| Table 4. 18 Model Summary From the table of model summary above, the value of r square 0. 980. This means that 0. 980 of dependent variable are explain by independent variable that has been use in the research. This indicates the high percentage which means that almost all of the independent variables can be used in this research. ANOVAb| Model| Sum of Squares| df| Mean Square| F| Sig. | | Regression| 225. 636| 4| 56. 409| 267. 647| . 000a| | Residual| 9. 484| 45| . 211| | | | Total| 235. 120| 49| | | | a. Predictors: (Constant), Product, Service, Image, Price| b. Dependent Variable: Response of customer| Table 4. 18 ANOVA Regarding to the above table, the F-test is significant which is P value 0. 00 < 0. 05. It means that all the variables validated and accepted since the p-value less than 0. 05. Therefore the model is significant to other words at least one of independent variable is significant to predict the dependent variable. Coefficientsa| Model| Unstandardized Coefficients| Standardized Coefficients| t| Sig. | B| Std. Error| Beta| | | 1| (Constant)| . 015| . 266| | . 057| . 955| | Price| . 104| . 180| . 105| . 580| . 565| | Service| -. 057| . 080| -. 072| -. 718| . 476| | Image| . 146| . 159| . 158| . 917| . 364| | Product| . 727| . 225| . 788| 3. 232| . 002| a. Dependent Variable: Response of customer| Table 4. 19 Standard Coefficients The t-test shows the significant result for the dependent variable which is 0. 047 < 0. 05. Besides that, for the other variable which are corporate reputation and service quality where p value is < 0. 05 and it means there is significant relationship. CHAPTER 5: CONCLUSION AND RECOMMENDATIONS 5. INTRODUCTION For this chapter, the researchers will concludes all the information that had been mention from chapter one until chapter four. The researchers also included the suggestion and recommendation for KFC at KB Mall based on the finding in chapter four for future research in order to help other researchers make improvement and thus provide useful information. 5. 1 CONCLUSION This research had been conduct to identify customer loyalty at KFC KB Mall. Customer is the most important asset for every business in the world. All the companies do not want to lose their own customer especially if customers turn away to the competitors.
The researchers had found that the factors of customer loyalty based on price, service, brand image and product. Besides that, there have four hypotheses for this study, which can be prove. The result for hypotheses shows that all the independent variables that are price, service, brand image and product have significant relationship with customer loyalty but the most significant variable is product. In terms of the independent variables, the researchers found that product plays important factor that affecting to the customer loyalty because it has strong correlation which is, 0. 79. 5. 2 RECOMMENDATION Nowadays, there are many fast food restaurant have been built in Malaysia. So existence of the new fast food restaurants such as RasaMas, Chicken Rice Shop, and McDonald exist and they are really make good competition among them. Therefore, to reduce customer loyalty, it is important to KFC to be maintained as a number one in the fast food industry. Thus, through this study researchers willing to make some suggestions for KFC KB Mall and hope it can help in the future. 5. 2. 1 Training the Staff
Staff at KFC KB Mall is very important to create long term relationship because they are person who meet customers and treats the order from customers. Therefore, KFC at KB Mall branch’s staff should be giving training maybe twice a year on how to overcome and how to communicate with the customers. Although it takes high cost for the company, KFC need to scarify to create high customer satisfaction. Through training, KFC’s staff can control their emotion when faces different customers who are uncontrollable and have different characteristics.
Furthermore, the staff also should have basic knowledge that can help customers to solved problems. 5. 2. 2 Faster counter services Counter service is important to increase customer loyalty. This is because customer always rushes for their time. Therefore, KFC KB Malls’ staffs need to limit time serving one customer. It can be done if KFC KB Malls’ staff can serve the customers’ immediately and not waste time. Besides that, KFC also need to improve in term of time taken order for one customer. This is because from the researcher observation, customer always complaint that they need to wait until 6 until 10 minutes for taken an order.
Sometimes, customers urgently want to order the menu. So, KFC need to improve their process and use another way when make the serving menu. 5. 2. 3 Change the location Location also plays the important factors in giving the best service to the customer. Basically location at KB Mall is crowded because in front of KFC is Mc Donald, RasaMas, Chicken Rice Shop. So, there are many competitors there and customers hard to make choice to go to the fast food restaurant. KFC should find the places that surrounding the building do not have too many competitors that will affected their business.
REFERENCES Kotler, P. , & Armstrong, G. (2012). Principles of Marketing. (14th ed. ). England: Pearson Education Limited. (n. d. ). Retrieved from http://www. kfc. com. my/about-kfc-malaysia. php (n. d. ). Retrieved from http://www. fastfoodmarketing. org/fast_food_facts_in_brief. aspx freedownload. is. (2011). Retrieved from http://freedownload. is/pdf/consumers-preference-and-consumption-13515192. html Jeffrey A. Krug. (2001). KFC and Global Fast Food Industry. Retrieved from http://www. oppapers. com/essays/Kfc-Global-Fast-Food-Industry/168890
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