Introduction Of KFC In Mauritius

Introduction Of KFC In MauritiusThe necessity for all human being is eating which is observably a routine action. For eating at restaurants, it depend on an individuals reason and is intentionally or instinctively assess by a multifarious set of attributes ahead to begin with choosing a restaurant. Thus, this reputation is to investigate how much suffice seeing has an impact on client bliss and computer memory especially in our Mauritian mise en scene at KFC. As there is a casual inter-relationship between client felicity and aid graphic symbol, this study aims to find out the effectiveness of the emolument places of returns quality which passs to client contentment and finally to retention at KFC. An individual feeling of pleasure and disap stayment is known as gratification and the client satisfaction is very master(prenominal) for any organization. All the main aspects will be analyzed and recommendations will be drawn out for break in proceeds.Company scopeH istoryKentucky Fried Chicken (KFC) was founded by Col nonp atomic number 18ill Harland Sanders in 1952 and its primary focus is fried chicken. KFC also offers grilled and roasted chicken point of intersections, wraps, salads, sandwiches and desserts as considerably squall based products outside the USA. Although the death of Sanders in 1980, he remains a vital part of the firms branding and advertisements, and Colonel Sanders or The Colonel is a metonym for the community itself. In 1991, the truncate form of its name KFC was adopted by the company.The PresentKFC ope tells much than 5,200 restaurants in the United States and more than 15,000 units around the world. In 109 countries and territories around the world, KFC daily serves more than 12 million nodes. KFC is world famous for its Original Recipe fried chicken, made up of 11 herbs and spices secretly blended together. Colonel Harland Sanders perfected more than a half century ago. Based on the Fortune 500 List, KFC is r anked on 239 positions with revenues in excess of $11 billion in 2008.Introduction of KFC in MauritiusWith time, consumers were more demanding for large variety of nutriment and because, the first KFC outlet was launched in Mauritius-1983. Pick N Eat is the company which operates the KFC franchise in Mauritius. KFC has carved a solidness reputation as a quick attend restaurant which provides quality products and divine usefulness. Across our island, 18 outlets be spread out and 10,000 guests daily atomic number 18 enjoying their finger-linking favorites in the consumer-friendly environment.Background of the programIn the fierce argument, the market trend has changed noniceably from agricultural to service market. The service sector especially ready sustenance industriousness is in a rapid growth and gain a sustainable position in the market due to lack of time to prepargon food and dual in accompany families. All of the fast food businesses are trying their best to impro ve their service quality in revisal to make customer agreeable and return back to them again. They are concentrating more on service quality in order to meet the necessarily and expectations of the customer. The more satisfied the customers are, the more believably they are to return to the restaurant. The fast food attention has undoubtedly not been free from either augmented competition or from increasing customer expectations regarding quality. In the fast food industry, the perceived quality holds a outstanding importance to create a retention effect for customers. So the fact is that when the service providers are able to satisfy its customers with good managerial arrangement, the foods quality provided, get hold of efficient staff, then a positive outcome is seen in customers retention in a particular restaurant.Problem StatementService quality is a vital strategy for any restaurants, success and repeat business and it has long been defined by adopting a rather more cus tomer-oriented put one over and not by the restaurateur-oriented (Saleh and Ryan, 1991). customer is the key role in any business, without any customer it is difficult to do business. It is necessary to work closely with your customer. As customers eject also create your business, thus, customer is the major part of business and also in the market. Business runs by dint of customer, without the customer there is no business. Due to the increasing competition with other restaurants and quality-conscious customers, it is vital to carry out this research. There is a need for further improvement in order to face the competitors and meet the increasing customers expectation concerning quality. Based on the actual service quality consummation of KFC, it is important to identify if customers are satisfied with the current perspective and are likely to retain at KFC or switch to other competitors. Also, to find out the meanss of service quality that leads to customer satisfaction an d retention. From the above reasons, it is important that the service performance meets or exceeds customers and their expectation, the customer will be satisfied. Service quality is an antecedent of customer satisfaction. Therefore, this warrants a study to assess the customers expectation and perception, examine its discrepancy bed covers and the service quality belongingss that influence customer satisfaction and retention.Research Objectives-To determine customers expectation and perception level towards service quality.-To identify the discrepancy gap between customers expectation and perception level towards service quality.-To identify the SERVQUAL dimensions which have an influence on customer satisfaction and retention?Research Questions-What is customers expectation and perception towards service quality?-What is the discrepancy gap exist between customers expectation and perception towards service quality?-What are the SERVQUAL dimensions which have an influence on cust omer satisfaction and retention?Aims of the studyThis study is to find out whether the service dimensions have an impact on customer satisfaction and retention at KFC by using the SERVQUAL Model by Parasuraman, Zenithaml, and pick (1988). It will also explore the service aspects that affect and influence customer satisfaction and retention.Significance of the studyThis study will act as a practical guideline for KFC, especially for the management and the front line employees which may change magnitude a higher level of customer satisfaction in the near future. The results of this quantitative judgment of service quality may provide some insights into how customers rate the service and assessed customer satisfaction at KFC. The outcomes will utilize as a basis to improve their live service quality or to amaze a new one in order to meet with the customers unavoidably and satisfy them. Furthermore it will help KFC managers to know if they are providing services jibe to the norms established by customers. The management will be able to come up with a strategy for upgrading their service quality which will definitely lead to customer satisfaction and retention. All these views of customers will help KFC to remedy tasks if there are and maintain their service quality.Phases of the discussionIntroductionIn the first chapter, the problem area is discussed with a deeper understanding regarding the research. The problem discussion ends with a research objectives and questions. In the end of this chapter, the contributions of this research are also presented.Literature ReviewIn the literature review, the service qualitys impact on customer satisfaction and retention is discussed with the following conclusions of assessing customers expectation, customers and employees perception, identifying their gaps and the influencing service quality aspects.Research Methodology*************************************Analysis*************************************************Conc lusion and testimonial********************************************************ConclusionThe first chapter provided us a background to the lineation of the dissertation. It contained the research context, which is, identify the problems, and establish its aims and its objectives, set out the research questions and finally present the outline of the study.Chapter 2- LITERATURE REVIEW2.1 IntroductionThis chapter will give an overview of literature and exercises that presented by writers and journalists. It will support the research objective presented in the previous chapter. The chapter will calculate the excogitations of service, service quality, customer satisfaction, customer retention, service quality dimensions, the gaps and others.2.2 Fast Food IndustryThe fast food industry is also known as pronto Service Restaurants (QSR) and has been serving delicious food for as long as people lived on. The fast food generally refers to the food served to customers in form of packaged for takeout or on the spot with minimum preparation time. The Mauritian fast food industry was primarily started with the famous dholl-puri and is still in great demand. But, due to globalization, the fast food industry has gradually break done the Mauritian lifestyle. The consumer demand has evolved as they demand for a variety of food in a comfortable, stylish place and for busy people a quick bite at all times of the day. Today, these products form part of the Mauritian lifestyle and culture. deal smell for the convenience in order to improve their lives and productivity. Recent studies have shown that one out of every two-and-a-half- meal today is eaten away from home (Kara et al 1997).The fast food industry is not without its challenges. There is an increased focus on the quality of food served in the fast food restaurants. But, in this fierce competition of today, the right marketing approach and application of service quality is vital to compete with competitors as hale as retain customers. The fast food industry is large and diverse in itself with lots of opportunities that challenge is being answered with new offerings and strategies to lure consumer back in. In the new emerging fast food industry, KFC is expanding in accordance with the customers demand despite the environmental problems and provide its potential to give a meal in a pleasant atmosphere.Jang Namkung (2009) proposed three factors service and product quality as well as the atmospherics element are considered as the main restaurant attributes affecting the perceived quality of customers experiences at a restaurant. The total dining experience in a restaurant is comprised of not only food itself, but also the atmosphere (physical aspects) and the service provided. Thus, the fast food industry is based on the principles of quality food served fast and requires fast-reaction solutions to customers needs if they want to satisfy and retain customers.2.3 ServiceThere are many definitions c oncerning the concept of service by researchers. The term service was divulge by the author Gronroos (1983) as An activity or series of activities of more or less intangibles record that normally, but not necessarily, take place in interactions between the customer and service employees and/or physical resources or goods and / or systems of service provider, which are provided as solutions to customer problems. Another definition was given by the author (Payne, 1993) said that service is Any primary or complementary activity that does not directly. lay down a physical product that is, the non-goods part of the transaction between customer and provider. Whereas Kotler et. al. (1999) is of picture the service is regarded as any activity or benefit that one party offers to another which is essentially intangible and does not result in the ownership of anything, and it may or may not be tied to a physical product. Normally, lots of people are involved in a service process and it is tough to do an analysis of service or to reprise the same service exactly. In today market, products heavily rely on its service to acquire competitive advantage and to satisfy customers needs.Each authors mentions service as an exchange between the service provider and customers as well as its intangibility nature. The most vital point is simply the participation of the customer in the service process. KFC provides quality product and service with full customers interaction.2.4 Service QualityIn the service industry, service quality has become a crucial tool. Practitioners are more interested in the concept of service quality which has an advantageous effect on the outcome performance for the company. Service quality is a little element of customer perceptions as well as in determining customer satisfaction. Various experts have defined service quality differently. Parasuraman et al. (1985) proposed a testicle definition of service quality as the degree and direction of discrep ancy between customers service perception and expectation. Satisfaction occurs when the expectations meet or exceed the performance level whereas customer dissatisfaction occurs when the expectation is below the perceived quality. Asubonteng et al. (1996) defines service quality as the extent to which a service meets customers need and expectation. Hooley, Saunders and Piercy (2004) A prime factor in differentiating the product or service from that of competitors is quality. Quality concerns the fitness for purpose of a product or service. For manufactured products that can include the dur aptitude, appearance or grade of the product while in services it often comes down to the tangible elements of the services, the reliability and responsiveness of the service provider, the assurance provided of the value of service and empathy, or caring attention, received.According to these authors, the service quality is normally the customer perceptions and the organizations activities togethe r with delivering quality service that matched to customer expectations on a consistent basis. Service quality is a key survival of all restaurants as it is the most powerful competitive weapon that can be used against competitors and to attract as well as to retain customers. These authors highlights that two main factors affect the quality of a services, that is, expected service and perceived service.2.5 SERVQUAL ApproachThe SERVQUAL framework has come up for the purpose to improve service quality in services and retailing organizations as it has suggest that customer satisfaction is based on multiple factors rather than one. The SERVQUAL method was developed by Parasuraman et al. in 1988 as a technique used to perform a gap analysis of an organizations service quality performance against customer service quality needs. Parasuraman et al. (1988) came up with five dimensions (grouped with 22 attributes) to measure service quality which is responsiveness, assurance, tangibility, e mpathy and reliability. The SERVQUAL creature is regarded as a reliable method of measuring service quality (explore customers expectation and perceptions), which in turn leads to a measurement of customer satisfaction.Internationally, KFC already have a service quality assurance team for even surveys with a theory known as CHAMPS (consist of cleanliness, hospitality, accuracy, maintenance, the standard of product quality plus service speed). This is to evaluate the customers experience whether they are satisfied or not with the products and services. In Mauritius, KFC has already executed the theory of service quality and conduct survey concerning the services. Thus, in the study, the SERVQUAL method will be used for further research work.2.5.1 SERVQUAL DimensionsIn 1985, Parasuraman et al. has identified ten determinants for measuring service quality which are as follows responsiveness, reliability, access, competence, courtesy, credibility, communication, security, tangibility and understanding or knowing the customer. Later, in 1998, Parasuraman et al. refined the model to the useful acronym RATER-ReliabilityIt is defined as the ability to perform the promised service dependably and accurately or delivering on its promises (Zeithaml et al., 2006, p. 117). It is one of the most important service components for customers as it implies doing it right the first time. The service organizations need to keep its promise and maintain an error free record. The reliability factors are efficiency in the calculate system, consistency in serving customers, and the staff performs tasks that have been promised to guests and well trained staff. For the food beverage industry, reliability can be interpreted to mean raw food delivered at the correct temperature and accurately the first time (Andaleeb Conway, 2006).In the Mauritian context, KFC has its own training center recognized by the franchisor for their staff. The chicken is active on the spot and they make sur e that the service sales pitch is consistent and timely. The most significant policy of KFC is evaluating the customers experience with its service, whether they are satisfied or not. They can also put their comments and suggestions for further improvements of the products and services of KFC.AssuranceAssurance is defined as the employees knowledge and courtesy and the service providers ability to inspire trust and federal agency (Zeithaml et al., 2006, p. 119). The assurance factors are staffs knowledge about the menu, safety, security, trustworthy and friendly staff. Customers are more likely to use tangible evidence to assess the assurance dimension such as awards or special certificates which give a new customer confidence.KFC has achieved National Quality Awards and have a Hazard Analysis unfavorable Control Point (HACCP) program is implemented in order to identify, evaluate and turn back any physical and environmental hazards in the work place. And the logo of HACCP is vi sible(a) in every restaurant as an assurance dimension.TangibilityTangible is defined as the physical facilities, equipment, staff appearance and others. In accordance with the author, Zeithamal et al. (2006) this dimension is comprised to the current appearance and shape of the cutlery, the restaurants interiors decor, silverwares and the uniform of the staff, the layout and appearance of the menu list, restaurant signage and advertising campaign. Tangibles are used by firms to convey image and signal quality (Zeithaml et al., 2006). Customers use this dimension to evaluate the quality.KFC has its own evidence of its service in terms of products, packaging, printed and visual marketing materials, websites, and staff appearance, virtual evidence of handling queries and feedback through Facebook and other online services.EmpathyEmpathy is the extent to which caring individualized service is given to a customer. The customer is treated as a king. Many small companies use this ability to provide customized services as a competitive advantage over the larger firms (Zeithaml et al., 2006). The empathy components are willingness to handle requests, give individualized attention to customers, and show excitement to serve and to answer to all queries accurately. Empathy may be important to ensure customer loyalty as the server knows how the customer likes his or her food prepared. In return, the customer is easily approach and spell out their needs to the service provider. If a company looks its customer as an individual, as result, the company will come out as a winner.KFC take care of each individual customer by providing the meal according to the customer requirement. Such as, a meal can be upgraded by adding cheese, pineapple, tomato, plain or spicy chicken as per the customers taste. Before launching a new product, KFC take care of its customers opinion into consideration through Facebook and keep continuous communication with the customer through regular survey .ResponsivenessResponsiveness is defined as the willingness to help customers and provide cue service (Zeithaml et al., 2006, p. 117). The responsiveness factors are short waiting period for the service delivery, attend complaints quickly, availability of staff when needed and restaurants action upon customer suggestions. In order to be responsive, a service provider has to determine how long it would take to get answer or to solve a problem. To be successful, companies need to look at responsiveness from the view point of the customer rather than the companys perspective (Zeithaml et al., 2006). This dimension captures the notion of flexibility and ability to customize the service according to the customer needs.KFC handle complaints quickly especially through Facebook and the staff are willing to help customer as well as keeping in hear for short waiting period in service delivery.2.5.2 Service Quality fissures ModelIn 1990, Zeithaml, Parasuraman and Berry have developed a surv ey instrument to measure the gap between customers expectation for excellence and their perception of actual service delivered. The SERVQUAL model uses the terms that describe one or more determinants of a quality service encounter. Gronroos (1982), Lewis and Booms (1983) Parasuraman et al. (1985) have the same opinion that the most frequently used approach to measure service quality is SERVQUAL to compare the customers expectation former to the service encounter and their perception after the actual service delivery. Basically, there are seven principal gaps in the service qualitys concept, out of which crack cocaine 1, Gap 5 and Gap 6 are more associated with the external customers as they have a direct relationship with customers.Figure 2.1 SERVQUAL or Gaps Model(Zeithaml Parasuaman Berry 1988Gap 1 Management perceptions of consumer expectations and Customers expectations andIt is the knowledge gap which portrays the difference between the management beliefs about customers, ex pectations and what customers rattling need and expect. This gap happens when there is insufficient watercourse of communication upwards, lack of marketing research orientation and too many level of management.Gap 2 Management perceptions of consumer expectations v/s service specificationsIt is a policy gap where a difference occurs between management perceptions regarding customers expectations and service specifications are set for service delivery. The reasons for this gap are unfeasibility, inadequate commitment to service quality and task standardization as well as an absence of goal setting.Gap 3 Service quality specifications opposite service deliveryIt is the difference between the service specifications and the service delivery teams actual performance on these specifications. The gap is a result of poor employee-job fit, lack of perceived control and lack of teamwork.Gap 4 Service delivery v/s external communication to customersThe communication gap is the difference bet ween what the company communicates and what is actually delivers to the customer. It is due to inadequate horizontal communications and propensity to over- promise.Gap 5 The discrepancy gap between customers expectations and customers perceptions of the service deliveredIt is the difference between what has actually delivered and what customers feel they have received. Customer expectations are influenced by the extent of personal needs, past service experiences and word of mouth recommendation. The difference occurs when customers are influenced and service provider has shortfalls.Gap 6 The discrepancy gap between customer expectations from the service provider and employees perceptions of consumers expectationsThe service quality gap is what the customers expect to receive and their perception of the service that is actually delivered. There is a difference in the understanding of customer expectations by front-line service provider.Gap 7 The discrepancy gap between employees per ceptions and management perceptions of consumers expectationsThis gap is mainly an internal difference in the organization such as differences in understanding of customer expectations between management and employees.2.6 Customer SatisfactionCustomer satisfaction is the heart of marketing. Customer satisfaction is the customers evaluation of the service or product against if their needs and expectations are meant. For any restaurant, customer satisfaction is more important as it forms a part of marketing. In past years, customer satisfaction was not that important but today it is the most important issue in term of the most reliable feedback for a restaurants excellency. Richard L. Oliver (1997, P.13) define customer satisfaction as Satisfaction is the consumers fulfillment response. It is a judgment that a product or service feature, or the product or service itself, provides a pleasurable level of consumption-related fulfillment. Customers satisfaction is highly influenced by the ir characteristics, their emotional responses and their perceptions of equity. As Kotler (2000, p.36) defined that satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectation. If the performance didnt meet the expectation of the customer, then dissatisfaction will occur. If the performance exceeds the customers expectation, then satisfaction will occur. If the performance exceeds more than expected, then the customer will delighted. In the context of customer satisfaction, Johnston and Clark (2005) have describe it as Service as the combination of outcomes and experience delivered to and receives by a customer. Customers therefore judge the quality of the service on the experience as well as the outcome. Due to current competitive edge, customers are abreast with the fact of product quality and every service provider is interested to satisfy customers needs and wants.All of three authors explain customer satisfaction as a bunch of desired expectations of a customer that has been fulfilled by the service provider. But, Richard L. Olivers definition is more applicable in this research work which emphasis that satisfaction is based upon service itself. KFC take care for its customer satisfaction by providing an online questionnaire on its website regarding customer satisfaction.2.7 Customer RetentionLovelock (2004) illustrates importance of customer retention The hardest part of a business is customer retention. If a company does not retain its customers, inescapably it will fail. Marketing essentially means keeping customer loyalty. In order to have a good lifetime value of customers, an organization needs to have good strategies to retain them and arouse loyalty within them for lifetime. Laura Lake (2010) defined Customer retention is not only a cost effective and advantageous strategy, but in todays business world its necessary. This is especiall y true when you remember that 80% of your sales come from 20% of your customer and clients In the starting point of a business, customer retention is very important as the cost involved in attracting new customers are five times higher than retaining an existing one. Hill and Alexander (2006) defined It is becoming accepted that there is a strong link between customer satisfaction, customer retention and profitability. By fulfilling customer expectation, an organization provides all service according to the customers preferences and in return, the customer is loyal to the organization. It makes profit for the organization and organization has to retain by providing continuous good services, better customer satisfaction and that will be profitability for the organization. So, organization has to make strong relation with customers as high rates of customer retention are a competitive weapon against its competitors.By having a questionnaire always on the website, KFC is trying to take care of that small segment of customers who are satisfied or dissatisfied with its service quality. In this way, KFC tries to retain those happy customers than losing them.2.8 Customers expectations and perceptions2.8.1 Customers expectationsCustomer expectations are increasing day by day and demanding for quality products and services therefore expectations gip an important role in the formation of customer satisfaction. The term expectations really matters to companies because they want to know what customers expectations are. According to Oliver (1981) expectations are consumer-defined probabilities of the occurrence of positive and negative events if the consumer engages in some behavior. Customers form their expectations from their past experience, friends advice, and marketers and competitors information and promises. Organizations in order to keep expectations from rising, they have to perform services properly from the first time (Parasuraman et al. 1988). There is aptne ss that if a service is not delivered as promised, thus the customers expectations are likely to rise in the next encounter. Expectations serve as reference points in customers assessment of performance (Cronin Taylor, 1992). The purpose of trying to understand customers expectations is trying to ensure that service can be designed and delivered in order to meet those expectations. If the operation meets the expectations, or indeed exceeds them, then customers are satisfied with the service. If they are satisfied they are more likely to become valuable customers who not only use the service again, but are positively disposed towards it and may even recommend it to other Johnston and Clark (2005). Therefore, the perceived service quality is viewed as the difference between consumers perceptions and expectations for the service provided.2.8.2 Customers perceptionsMc Kenna (2000) is of opinion that perception is a vital process in a persons life where he or she has to manage and interp ret a situation or an event to define a particular respond. Service firms must understand the concept of service quality from the point of view of the customer, not from the view point of the service firm or service provider. Besides, customer perceives services in the response to quality pertaining to the service and the extent to which they are satisfied with the general service with their experiences (Zeithaml and Bitner 2003). The customer satisfaction is determined by the customers perceptions and expectations of the service quality. Customer perceives services in terms of the quality of the service and how satisfied they are general with their experience. The customers perception varies from customer to customer and each one has different beliefs towards the services that play a crucial role in determining customer satisfaction. Therefore, customer perception and customer satisfaction are very closely linked together, because if the perceived service is close to customers ex pectations it leads to satisfaction. Satisfied customers provide recommendations maintain loyalty towards the company and customers in turn are more likely to pay price premiums (Reichheld, 1996). As such, perceived service quality is a key component of customer satisfaction.2.9 Relationship between service quality and customer satisfactionA great emphasis need to be heightened on service quality and customer satisfaction. In old times, customers were not concerned about quality and their satisfaction does not have such importance. But, today,