mac donalds emotions effect

8/14/2019 mac donalds emotions effect

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TOPIC Page no.

CHAPTER - 1

INTRODUCTION... 2

CHAPTER - 2

LITERATURE REVIEW 3

CHAPTER - 3

INTRODUCTION TO MCDONALDS.. 7

ORGANIZATIONAL STRUCTURE. 9

COMPANY POLICY. 12

OBJECTIVE 13

CHAPTER - 4

HYPOTHESIS 14

RESEARCH DESIGN 15

SAMPLING 20

CHAPTER - 5

LIMITATIONS OF STUDY... 22

DATA ANALYSIS AND INTERPRETATION 23

CHAPTER - 6

FINDINGS.. 28

RECOMMENDATION.. 29

CONCLUSION... 30

BIBLIOGRAPHY 31


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to understand the emotions that their customers experience, and to manage the service in such a

way that positive emotions are promoted and negative emotions reduced. In order to better

understand the role of emotions in services, research is needed on different types of service

encounters. The present study seeks to increase our understanding of how experienced emotions

affect consumer satisfaction with a McDonalds product.

The main aim of this study was to investigate the structure of emotions as experienced by

consumers for McDonalds products

LITERATURE REVEIW

The word "emotion" dates back to 1579, when it was adapted from the French word

mouvoir, which means "to stir up". However, the earliest precursor of the word likely dates back

to the very origins of language.

Emotions have been described as discrete and consistent responses to internal or external

events which have a particular significance for the organism. Emotions are brief in duration and

consist of a coordinated set of responses, which may include verbal, physiological, behavioral, and

neural mechanisms. Emotions have also been described as biologically given and a result of

evolution because they provided good solutions to ancient and recurring problems that faced our

ancestors.


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Emotion can be differentiated from a number of similar constructs within the field of

affective neuroscience.

Feelingsare best understood as a subjective representation of emotions, private to the individual

experiencing them.

Moodsare diffuse affective states that generally last for much longer durations than emotions andare also usually less intense than emotions.

Affect is an encompassing term, used to describe the topics of emotion, feelings, and moodstogether, even though it is commonly used interchangeably with emotion.

Customer satisfaction, a term frequently used in marketing, is a measure of how products

and services supplied by a company meet or surpass customer expectation. Customer satisfaction

is defined as "the number of customers, or percentage of total customers, whose reported

experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals."[1]

In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a

customer satisfaction metric very useful in managing and monitoring their businesses.

It is seen as a key performance indicator within business and is often part of a Balanced Scorecard.

In a competitive marketplace where businesses compete for customers, customer satisfaction is

seen as a key differentiator and increasingly has become a key element of business strategy.

"Within organizations, customer satisfaction ratings can have powerful effects. They focus

employees on the importance of fulfilling customers expectations. Furthermore, when these

ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify


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an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth

marketing, which is both free and highly effective."

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be

able do this, firms need reliable and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or service

has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When

customers have high expectations and the reality falls short, they will be disappointed and will

likely rate their experience as less than satisfying. For this reason, a luxury resort, for example,

might receive a lower satisfaction rating than a budget moteleven though its facilities and service

would be deemed superior in 'absolute' terms."

The importance of customer satisfaction diminishes when a firm has increased bargaining

power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an

industry that is an oligopoly, where only a few suppliers of a certain product or service exist. As

such, many cell phone plan contracts have a lot of fine print with provisions that they would never

get away if there were, say, a hundred cell phone plan providers, because customer satisfaction

would be way too low, and customers would easily have the option of leaving for a better contract

offer.

There is a substantial body of empirical literature that establishes the benefits of customer

Sandra Kiffin-Petersen, and Geoffrey Soutar from University of Western Australia and

Steven Murphy from Carlton University, Canada used a qualitative diary study with 276 sales

employees to shed light on the sales experience from the employees perspective. In psychology,


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INTRODUCTION TO MCDONALDS

McDonald is the world famous fast food restaurant. The idea of McDonalds was

introduced by two brothers Mac (Maurice) and Dick (Richard) McDonald in California. Their

father Patrick McDonald in 1937 was having a hot dog cottage called as Airdrome restaurant near

the airport. In 1940 the restaurant was renamed as McDonalds Famous Barbeque. In 1940 both

brothers came to a conclusion that most of their profit comes from selling hamburger so they made

their menu very simple by selling only Hamburger, cheeseburger, soft drinks French fries and

apple pie. In 1954 a turning point came in McDonalds brother history. Ray Kroc a seller of

Multimixer milkshake visited McDonald and he liked the idea of McDonald. McDonalds

corporation was built in those times and as a result Kroc started expanding their business by

opening franchises for mcdonalds.1960 McDonalds advertising campaign look for the golden

arches gave McDonalds sale a big boost.1965 McDonald corporation went public. In 1968

McDonald open its 1000threstaurant.1974 McDonalds started their business in UK and

Newzealand. In 1980 McDonalds was facing very big competition from its rival Burger King and

Wendy but McDonald with its innovation was experiencing boost in its sales. In early and mid

nineties McDonalds was having decline in their sales and as a result they start improving their

business. Taste was improved and some new menu items were introduced. McDonald introduced

first Kosher McDonald in Jerusalem and Halal McDonalds in India(1995 and 1996

respectively).McDonald start creating healthy image and invested heavily on refurbishment in

2000s.today McDonalds has more than 33000 outlets and is operating in 125 countries. It is the

world leading brand in fast food.

McDonald started their business in India in 1996.they start their business in Indias capital

New Delhi. They choose a busy residential area Vasant Vihar.McDonald India is 50-50 partnership


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between McDonald USA corporation and Two Indians (Amit Jatia Hard castle Restaurant ltd

Mumbai and Vikram Bakshi Cannaught plaza restaurant Delhi).McDonald as of now has 210

stores in India. Majority of Indians are Hindu and cows are sacred to them. For McDonalds to sell

beef was almost impossible. The second majority population is Muslim and they eat Halal food. It

was a big challenge for McDonalds as there were many protest against McDonaldss .So

McDonalds changed their menu according to local community for example they introduce

Maharaja Mac instead of Big Mac. Their menu is full of some spicy products as we know that

Indians use spice in their dishes in abundance. About 75 % of the menu of McDonalds has been

indianised and specially designed to woo Indians. McDonalds passed through some tough times

but eventually managed to survive in that different culture and different religious belief. McDonald

by now has a big presence in India and are trying to extend this ahead. Over all McDonalds serve

more than 47 million customers every day.


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ORGANIZATIONAL STRUCTURE OF McDonalds

A company is usually divided into parts in which it receives revenue. Some

companies are divided by operations, geographies or product lines. The focus of this article is the

organizational structure of McDonalds and ways to visualize this information through the use of

info graphics. McDonalds is organized geographically earning revenues through the United

States, Europe, Asia Pacific and Other & Corporate. To help understand the organization of

McDonalds, I have created an organizational chart to help you visualize the structure.

By looking at this organizational chart, first look at the top box with the C.E.O. Notice

the current C.E.O of McDonalds Corporation is Donald Thompson. The next box just underneath

the C.E.O gives the key financials of McDonalds for the fiscal year ending in 2011. This box


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gives you the total assets, sales and net income in billions of dollars. McDonalds total assets in

2011 were 32.4 billion, its sales were 27 billion and its net income was 5.5 billion.

Underneath the key financials box are four sub-divisions of McDonalds operating income, sales

and assets. As stated previously, McDonalds is structured geographically, therefore the

subdivision reports statistics from the United States, Europe, Asia Pacific and Other & Corporate.

Each of these boxes presents information for that geographic division. For example, the operating

income for McDonalds in the United States alone excluding other locations was $3.7 billion. The

sales for McDonalds in the United States were $8.5 billion and the assets for McDonalds in the

United States were $10.9 billion. The same concept and information provided is respective to the

geography listed in the chart.

Another way to visualize the information is to create a pie chart. Creating a pie chart lets

you easily understand complex information. For example, take a look at the Sales for McDonalds

for each of its four divisions. It will be much easier to compare the Sales by looking at a pie chart.


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The pie chart shown above is representative of the information pulled the organizational

chart. This pie chart is focusing on the sales for McDonalds in each of its 4 geographical divisions.

As you can see, Europe, denoted by the pink color in the legend, has the biggest slice earning $10.9

billion in sales for the fiscal year ending in 2011.

To restate the purpose of this article, McDonalds is organized by geography. McDonalds

has four major areas in which they record their revenue. The info graphics in this article allow for

easy comprehension of McDonalds key financials. All of the information in this article was pulled

from the income statement and balance sheet for the fiscal year ending in 2011 for McDonalds

Corporation. With the use of info graphics, it is much easier to compare numbers to previous years

or amongst competitors.


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COMPANY POLICY

Types of Information they collect and How It Is Used

They only gather personal information, such as first and last names, addresses and email

addresses, Facebook profile name and Google user name, when voluntarily submitted by the

customers. For example, personal information may be collected from customers when they register

on any of the companys web sites, give feedback on their web sites and on products or to enter in

one of their online prize promotions.

Sharing of Personal Information

They may share personal information within the McDonald's Family ie McDonald's

Corporation and each of its subsidiaries, together with their respective franchisees and certain

selected companies.

Privacy Policy Regarding Children

They are very careful in any communications with one of their most treasured customers -

children.


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On their web sites, they offer many features, like games and colouring books, which do not require

a child to provide any personal information. Their policy is not to collect personal information

from any child under 12 unless for a specific activity where the child's parent or guardian has first

written to them with that parent's or guardian's consent to that specific activity. They collect only

limited personal information from children under 16 (like their email addresses) to respond to their

online communications.

Changes to their Privacy Policy

From time to time, it may be necessary for them to change this privacy policy, so they

suggest that the customers check their websites periodically. Company assures that any changes

will not be retrospectively applied and will not alter how they handle previously collected

information.

OBJECTIVE

1. To review statistics on peoples emotions eating at an establishment.2. Studying customer preferences under different emotions.3. Studying the impact of emotions on customer satisfaction.


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HYPOTHESIS

Hypothesis 1

Customers happy emotion will decide about the positive level of satisfaction

Hypothesis 2

Customers sad emotions will adverse effect to satisfaction level.

Hypothesis 3

Customer satisfaction changes with the different emotions.

Hypothesis 4

Customer satisfaction does not change with different emotions.

Hypothesis 5

Customer will have different emotion after having meal in McDonald.


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RESEARCH DESIGN

This chapter gives us an overview of the methodology, which describes how the research

will be carried out. Methodology refers to how a research should be undertaken. In order to

conduct a successful research, it is essential to collect relevant data from various sources and

analyze it.

The study sets out to expand upon work on the topic of

The effect of emotions on the Customer Satisfaction with special Reference for

MCDONALDS Product.

Considering the nature of our research, we intend to use a questionnaire approach as

research methods. This study further defines and discusses the following: the research design, the

research approach, the research methods, the sample design and data collection and analysis of the

research.

There are a number of different types of method available for the collecting research data,

for example:

questionnaire observations


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The Research Process

The first step of any research is to identify a subject area of research and design a clear

objective within it to do further study on that particular research. Secondly, after getting secondary

data from different sources on a similar subject has to be critically reviewed. To carry McDonalds

Customer Satisfaction with their emotion out proper research an ideal person has to be defined,

out of which, a sample has to be dispatched for survey by different sources.

However, to make the research more authentic, qualitative research has to be carried out in

the former of descriptive questionnaire. Lastly, before completing the report, the descriptive data

thus collected has to be analyzed properly and then drive final conclusion.

Following charts will show a brief summary of the research process.

Formulating and clarifying Research Topic

Critically Reviewing Literature

Choosing Research Approach

Constructing Instrument for Data Collection

Selecting a Sample for Survey

Analysis Qualitative Data

Writing the Research Report


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Research Approach

An effective strategy will be used to collect most of the information and data from various

sources. The research will contain two parts, firstly secondary Research in which the researcher

will go through various research papers, electronic journals and database. Whereas for primary

Research, different methods that will be used to collect information from outlets of McDonald.

.

Sources of Data Collection

Data for the research project is usually either by using primary data, secondary data or a

combination of both.

Secondary Data

Secondary Research will be aimed at focusing on existing sources of information such as

an internal document, journal, magazines, internet etc. Research got permission from management

to use internal material Data.

McDonald's Customer Satisfaction with the emotions. Collection from secondary

research will be routinely evaluated to eliminate bias, check the accuracy of data, make sure it is

current and not obsolete, fit the purpose for what it is collected , examine the content of the data

and to make sure it is dependable.


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Different statistical tools such as bar charts will be used to analysis data and to draw

conclusions and recommendations. In order to make it more comprehensive, Ms Word document

will be used. This research methodology is carefully selected after considering factors such as the

purpose of the research, accessibility and the amount of the time available.

The secondary research does not provide statistical information about the subject and is

purely based on qualitative analysis. It triggers generalized results not representing the actual

picture of the research. For this reason, we cannot rely much on qualitative research.

Primary Data

Primary data can be defined as the new data collected for the specific purpose of the

research. This usually includes the use for various forms of interviews and questionnaire. The main

medium to obtain the primary data is through a questionnaire. A questionnaire is a written list of

questions, the answer to which is recorded by respondents. The questionnaire will consist of ten

questions for which descriptive answer have to be provided by the customers, to support my

research.

Questionnaires

Questionnaires will be a mix of structure and unstructured questions. Structure questions

will be used to find out the percentage of similar answer to a given condition while unstructured

question will be use whenever there is a necessity for a wider view on the part of the respondent.

Other forms of interview method such as postal email interview will be not used as the response

rate is likely to low, additional time be needed to get a response and the lack of motivation/initiative

on the part of the respondent will make the process frustrating. Further, it will not be possible for


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the research to read between lines of the response, due to the absence of observation of body

language.

Questionnaire Survey

Any person to person interview between two or more individuals with a specific purpose

in mind is called an interview. Research will collect primary data through the questionnaire duly

filled in by the sample companies will be briefly informed about the research by the researcher

before they will be given the questionnaire to be filled. The questionnaire will be mainly targeted

to the customers who provide the most detailed information about the emotion which effect their

satisfaction. All the respondents agreements will be taken before using the provided data for

research.


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SAMPLING

McDonalds Customer Satisfaction with the effect of their emotions.

Questionnaire Frame Work

To conduct research in the form of a questionnaire, a sample will be chosen. A sample is

a set of elements selected in some way from a population. It is, therefore essential to choose a

proper sample for any research. The quality of the sample has a significant impact on the overall

quality of research but designing an appropriate sample is seldom easy.It is also important to

choose a sample of respondents. To select sample, questioner will be distributed to the customers

of McDonalds.

Information will be gathered on the basis of it; however, it will be kept in mind that a more

varied the sample would lead to better accuracy to the finding to the research. Therefore, maximum

number of questioners will be distributed, In order to come out with accurate outcome for the

research.

Questionnaire Design

While designing the questionnaire, the main object will be that how customer addresses

the effect of emotion . Also, what are the parameter how they decide their preference.

The researcher will utilize sampling methods in designing the research sample. Initially the

unit analysis will be identified their preference and with that their emotions.


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Furthermore, several sampling methods as appropriate and listed below will be considered

bearing in mind the time and cost constraints at the time of study, accessibility of information, the

scope of the inquiry and the desired accuracy. The researcher will take every precaution to make

sure a credible scale has been developed for the study.

Data Collection

Questioners will be used as collection methods. The time will be managed.

Questionnaires will be distributed to the customers of McDonald products will be held. The

respond will vary with the different questions of which adequate research analysis will be done.

We took 30 random samples from three different locations, CBD VASHI- KHARGHAR outlets.


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LIMITATIONS OF STUDY

The probable limitations of this study are as under:

1. The first and foremost limitations was time constraint which was only three months, but still effortshave been made to put the picture as clear and candid as possible.

2. Samples were randomly selected as per convenience so error is bound to creep in the observation.3. The conservative attitude of the respondents was a limiting factor in gaining information.4. The finding and conclusions are based on knowledge and experience of the respondents sometimes

may subject to bias.


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DATA ANALYSIS AND INTERPRETATION

The emphasis is on the effect of emotions on the customer satisfaction with special

reference to McDonalds products. From those who filled interview questionnaires, 53% of them

were between the age group of 21-30, 27% between the age group of 10-20, and 20% between the

age group of 31 and above. This indicates that majority of the customers at McDonalds are below

the age of 30. This might be the reason why most of their products burgers and fast foods as they

appeal more to the younger people as they opposed to the possibly health conscious older people.

Fig no: 1-Age groups of the respondents.

27%

53%

20%

Age Group

11_20

21-30

31 & above


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63% of the respondents were male and while 37% were female. 70%of them use to visit

McDonalds when they are happy like to celebrate, hangout, get together etc. 13% of them use to

visit McDonalds when they are sad or bored and only 4% of them had other emotion when they

have visited McDonalds. Most of them pick Happy Meal, CokeFloat, Coke, French Fries etc, under

their emotions.

Out of 30 respondents 20 of them i.e. 67% of the respondents feels that their emotions changes

after eating what they have picked. While rest 10 of the respondents i.e. 33% of them felt that their

emotions remains the same even after eating what they have picked of their choice.

0

5

10

15

20

25

Happy Sad Bored Others


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Figure 1 : Response on whether their emotions changes after eating what they have picked.

87% i.e. 26 respondents felt that they will be satisfied with the customer services under their

current mood. While 13% i.e. 4 respondents felt that they wont be satisfied with the services under

their current mood.

Figure 2 : Response on whether they feel satisfied with customer services under their current mood

Respondents

Yes

No

0

5

10

15

20

25

30

Yes No

Respondents

Respondents


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60% i.e.18 respondents felt that different emotions would change their customer satisfaction.

While 40% i.e. 12 respondents felt that their emotions remains the same in respect to customer

satisfaction.

Figure 3 : Response on whether different emotions would change their customer satisfaction.

73% i.e.22 of the respondents felt that complementary gifts will change their level of customer

satisfaction. While 27% i.e. 8 respondents felt that complementary gifts cannot change their level

of customer satisfaction.

0

2

4

6

8

10

12

14

16

18

20

Yes No

Respondents

Respondents


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Figure 4 : Response on whether a complementary gift changes the level of customer satisfaction.

0

5

10

15

20

25

Yes No

Respondents

Respondents


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FINDINGS

As per our research, wherein we had 30 random samples at different outlets of McDonalds.

The respondents were 11 females and 19 males. Out of which 21 were in a happy mood when they

visited the outlet, and 4 were sad and 4 were bored.

As per these responses we found out that 70% were in a happy mood and at the same time

were satisfied with the service provided.

As per our findings, different emotions did not affect the customer satisfaction. We found

that irrespective of the mood of the customer they were either satisfied with the service or not

depending upon the service provided.

We also found out that after meals there was a definite change in the moods of the customer

thereby changing the emotions.


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RECOMMENDATION

Since we found out that the customers moods did not affect their level of satisfaction, we

hereby suggest that the companys need to concentrate on the services they provide. Good response

and service from the employees towards the customers do change the mood of the customers,

hence it is extremely important for the company to concentrate on providing a good and efficient

service.

This will ensure the company to have higher rate of customer retention.


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CONCLUSION

Concerning all types of business organization customer satisfaction is the most important

issue, and considered as most reliable feedback, for the excellence of any business organization.

Customer satisfaction is the part of marketing and play important role in the market. And for

measuring the customer satisfaction and emotion effect on the level of satisfaction this study was

conducted. Service quality, physical environment and emotion are the key determinant of customer

satisfaction in the purchase of fast food industry. At the end it could be concluded that, there is a

significant positive effect to customer satisfaction with the respect to their different emotions for

McDonalds product. As per our research proved that customers mood did not dictate their

opinion about the service provided. Moreover it was clearly seen that they left with a positive

feeling after a meal at McDonalds, in addition to it a good customer service provided left the

customers with an overall good experience irrespective of the mood with which they walked in.

According to our research our only suggestion would be for the companies to satisfy their

customers with quality products that were promised to them and in return the companies can earn

the loyalty of the customers, thus irrespective of the customers mood the company retains them

for long.


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BIBLIOGRAPHY

http://www.mcdonalds.com/us/en/privacy.html/

http://www.kristinroti.com/2012/10/08/organizational-structure-of-mcdonalds/

http://www.uk.sagepub.com/aboutus/press/2012/aug/31_aug.htm/

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mac donalds emotions effect