<<

Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

Service Triangle Performance of Fast Foods Firms in Zimbabwe: The Employee-Customer Perspective

Vutete Clever Senior Lecturer, Zimbabwe Open University ZOU-Harare Campus.

Abstract: Services marketing requires a balanced promotional offers being made in response. The position and performance of internal marketing, above competitors’ major products were the chips, external marketing and interactive marketing as fish, meat pies, pizza, soft drinks, ice creams and they help to create a strong fit among employees, coffee among other food stuffs. The survival of management and customers in a triangular such companies might be due to their ability to (people) relationship. The mixed feelings of society defend their markets through meeting the service on the treatment of employees by fast food firms in needs of numerous customers across many towns the background of intensifying competitive pressure and cities. among players made this study critical and urgent. The study on the service triangle performance of The competition in the industry has seen TN Grill fast food firms was carried out using a positivist closing some of its branches in Harare. While cross sectional survey that comprised 104 competitors were planning to expand branches to customers and 61 employees. The study indicated other areas, and at the same time customers were that internal marketing and external marketing finding it difficult to part with their hard earned activities done by managers were generally cash and hence becoming sensitive to both quality ineffective, while the interactive processes between and quantity of service delivery variables, survival employees and customers were rated as effective of these firms became a major objective. The fast and well done. The study recommends the fast food food industry has also seen competition from firms to improve their employee related issues and supermarkets which have offered substitutes at a link the communicated service and the delivered cheaper price, supermarkets such as Pick n Pay, Ok service. Supermarket and Spar have made a significant impact in the industry’s sales and profitability. Key Words: service triangle, fast food firms, These supermarkets were also offering similar external marketing, internal marketing, interactive products such as chips, fish, chick, burgers, coffee, marketing and management. soft drinks and pies. Customers seek out for the best service quality (Lovelock and Wirtz, 2007). It follows that surviving in this increasingly 1.0 Introduction competitive industry require a deeper understanding of the competition territories in the As people become more and more pressed for time form of customer expectations and perceptions, and due to various lifestyle and work demands, fast how management and employees create and offer food markets are likely to continue seeing growth their service package. The question which every in customers as they offer convenience and ‘food business in the service sector should ask itself is on the go’. In the Zimbabwean environment, the whether management, employees or customers are companies in the fast food sector include Chicken important for achieving profitability. The current Inn, Chicken Slice, KFC, Pablo’s, Wimpy, African challenges that the industry is facing is on failure to Fried Chicken (AFC), TN Grill, Kelly’s, Papa understand customer needs and expectations of Chinos and Food Express. Initially, Innscor their services and products, and in keeping and Zimbabwe, through its brands, Chicken Inn, Pizza dealing with promises made to the customers Inn, Fish Inn and Nandos dominated the market (Zeithaml and Bitner,1996: 14). The analysis of before the arrival of TN Grill, and Chicken Slice the service triangle dimensions, namely; interactive with its brands; Chicken Slice, Cream Slice and marketing, external marketing and internal Pizza Slice. This industry phenomenon also saw marketing, will help eliminate such challenges the sprouting of other formal and informal since the industry might close if the respective unbranded small companies serving some firms do not perform well on those service triangle neglected segments in the fast food sector and also elements. the potential entry new strong competitors. This had resulted in competition escalating, prices coming down, service quality falling and many

Imperial Journal of Interdisciplinary Research (IJIR) Page 408

Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

2.0 Statement Of The Problem Service marketing in many Zimbabwean firms is failing to meet the basic grade and more worse on The study aimed at analysing the customers’ and the expectations of the customers. The popularly employees’ views and perceptions on how all these applied model is the RATER/ServQual model with firms are implementing elements of the service its tailor made questionnaire versions highly triangle model so as to recommend ways of applied in the measurement and monitoring of satisfying both employees’ and customers’ needs service quality of consumer services firms. Other common service delivery and service quality 3.0 Hypothesis models include the Gap Model developed by Parasuraman, Zeithaml and Berry, the Kano Model H1: Fast food firms are effective in their internal by Professor Noriak Kano (1984), the Nordic marketing processes School by Gummersson (2012) and Gronroos(1984,1990), the Servicescape by Booms H2: Fast food firms are effective in terms of their and Bitner (1981), the Servuction model by Eiglier interactive marketing systems approaches. and Langeard (1987) and the Service Triangle. It appeared these models were not fully applied in the H : Fast food firms are effective in their external 3 Zimbabwean services marketing environment as marketing operations seen by ever increasing customer complains. This 4.0 Literature Review situation becomes a matter of concern, especially when no industry had been known for excelling in It must be appreciated that many writers have its service provision. Among these models and for written on customer service and service quality in this study, the service triangle was chosen for this many industries (Hoffman and Bateson, 2010). study with its focus on internal marketing, However, there seems to be fewer studies on the interactive marketing and external marketing was service aspects of fast food sector in Zimbabwe. chosen for appreciation in the fast food firms in Lovelock (1996) argued that in trying to deal with Zimbabwe. this characteristic of services, a fast food company can institute the following solutions, take The Service Triangle advantage of the variations inherent to the service encounter, as a platform for customization of the This model shows the three marketing functions product which will result in a competitive important for service firm and they are divided advantage. The marketers also interact with between the different actors (Gummerson and customers through researches and surveys. The Gronroos, 2012). These three marketing functions marketer and service employees will have to look are internal marketing, interactive marketing and at ways of tangibilising the intangibles and this can external marketing. be achieved by way of the marketing emphasis being directed to the tangible aspects of the service (Perenault et al, 2000).

Source: Zeithaml and Bitner (1996) The three major participants and points in the customers. According to Palmer (2001) the internal service triangle model are represented by the marketing has to be managed by the company’s organisation’s management, employees and leadership, the interactive marketing happens

Imperial Journal of Interdisciplinary Research (IJIR) Page 409

Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in between the employees and the clients and external have a huge service component, to the extent that marketing is what takes place between the the whole marketing efforts might be viewed as company’s management and clients (Lovelock et services marketing. The study wants to collect data al, 1998; Zeithmal and Bitner, 2004). The firm is on the employee and customer perceptions of the the management including full time marketers and service triangle performance of fast food firms. sales people who give promises to the customers and have to enable the promise through customer 3.0 Research Methodology developments and internal marketing with their employees (Gronroos, 2004). This internal In this study the research philosophy used was the marketing is a prerequisite for external and quantitative approach based on the positivism interactive marketing and can be reached through paradigm. Positivists believe that reality is stable attractive and stimulating places of work together and can be observed and described from an with internal communication (Quinn, James Brian objective point (Creswell 2009:8). The research in Zeithamal and Bitner,1996). The employee and results will basically be in numbers and those working in close contact to customers, also percentages. Positivistic approaches are founded on called part time marketers are critical for service a belief that the study of human behaviour should excellence in any organisation(Browning,1988). be conducted in the same way as studies conducted They are the ones who conduct the interactive in the natural sciences (DeVaus, 2002). It assumes marketing. The impact of technology on all the that predictions can be made on the basis of the dimensions of service industry has brought about previously observed and explained realities and the expansion of service triangle to include their inter-relationships. This is developed under technology. As such “technology can be used to quantitative research design. The positivism create new services, which enable organisation to approach made use of the cross-sectional survey, service customers better and distinguish themselves using a questionnaire made up of mainly close from their competitors” (Zeithmal and Bitner, ended questions that yielded numeric data for 2000:13). testing hypotheses and answering research questions (Creswell, 2009). The major strengths are The ability of the service delivery system to that they use statistical procedures in the whole connect the management, employees and customers research, make use of standards like that of validity is a unique source of competitive advantage in the and reliability, and clearly identify variables for the service industry (Lovelock and Wirtz, 2011). With study. A sample is a small part of a whole customers expressing some dissatisfaction with fast (population) selected to show what the whole is foods firms, both large and small, there is need to like (Flick, 2009). A sample should represent the test the position of the service triangle dimensions whole population and not reflect bias toward a in these firms(Zeithmal, Berry and Parasuraman, specific attribute. A quota sample of 104 customers 1993). The issue of service triangle variables could and 61 employees was achieved in the study. The be understood from both employee and customer sample adequacy of key respondents was 0.584 as perspectives. The products sold at fast food outlets shown below: Table 1 Overall KMO Value

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .584 Bartlett's Test of Sphericity Approx. Chi-Square 1596.730 Df 378 Sig. .000

The combined KMO of the elements of the service defined reliability as a measure of whether triangle model are shown in Table I above. The to items on an instrument are internally consistent, value was found to be greater than 0.5( a value of stable over time and whether there was consistency 0.584) and this was acceptable for quantitative in test administration and scoring. Internal data analysis done in this study. consistency is measured by Cronbach (1951)’s alpha coefficient. Cronbach’s Alpha values are Reliability and validity of the questionnaire was derived from the research results processed by the also measured by the study. Creswell (2009:233) SPSS software.

Imperial Journal of Interdisciplinary Research (IJIR) Page 410

Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

Table 2.

Factor of the service triangle model Crobach’s Alpha INTERNAL MARKETING 0.517 INTERACTIVE MARKETING 0.406 EXTERNAL MARKETING 0.601

The table above shows that the reliability of each instrument. The three categories were developed question of the models was acceptable with from the service triangle model to facilitate data internal marketing (alpha=0.517), interactive analysis and these served as the main guideline for marketing (alpha= 0.406) an external marketing analysis of findings. Data analysis was done using (alpha = 0.601). Validity refers to the the Statistical Package for Social Scientists and appropriateness, meaningfulness, and usefulness of produced the summary values that were linked to the specific inferences made from a test score. The previous studies(Field, 2009). The analysis questionnaires were directly crafted from the produced mean values and T-test statistics. Tables research objectives and revised to ensure that it were used for presenting data in this study. measures the consumer perceptions. Each variable Interpretation of the results involved the researcher had sub-items that ranged from 7-9 that were ticked drawing conclusions from the results for the by both employee and customer respondents. The research questions, hypotheses, and the larger use of relevant sub- factors for each dimension, meaning of the results (Creswell 2009:152) that derived from empirical research recorded in provided some broad generalisations. journals, had improved the validity of the questionnaire. Construct validity was generally 4.0 Results and Discussion of Findings good since concepts in the literature review of fast food success variables were those maintained in The research results were first discussed under the survey questionnaire of this study. The study mean values and followed by hypotheses testing. collected data using drop and pick method and face to face interviews. These were carried out with 4.1 The Service Triangle Elements: Mean Value customers and employees at fast food firms such as Analysis Chicken Inn, Chicken Slice, KFC, AFC, ChesaNyama, Chicken Express, Nandos. A A mean value higher than 3.00 shows a positive framework was developed to analyse the responses perception of the variable. on related questions on the data collection Table III: Overall Mean Values

Employees Customers Overall Mean Internal marketing 3.097 3.116 3.107 Interactive marketing 3.296 3.333 3.315 External marketing 3.086 3.040 3.063 OVERALL MEAN 3.160 3.163 3.162

Working on the vertical analysis of the whole customers(m=3.040). The study indicate that the service triangle, employees had an overall mean respondents directly associated with a variable value of 3.160 which is slightly lower than the perceived it to be poorly done by the fast food 3.163 of customers. This showed that customers firms. For instance employees were slightly were slightly more satisfied with service triangle unhappy with internal marketing while customers performance of fast food firms than employees. were slightly unhappy with external marketing at The horizontal analysis indicate that employees comparative levels. Of the three variables, the had a lower satisfaction with internal respondents ranked interactive marketing(m=3.097) than that of customers who marketing(m=3.315) as first, interactive marketing had a mean value of 3.116. Employees had also (m=3.107) as second and external some lower satisfaction with interactive marketing marketing(m=3.063) as the third in terms of performance(m=3.296) than that of performance. This shows that customers were customers(m=3.333). On external marketing, generally more appreciative of services offered by employees had a slightly higher employees than what the management offers to satisfaction(m=3.086) than that of employees and to customers. This was also

Imperial Journal of Interdisciplinary Research (IJIR) Page 411

Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in confirmed by the service triangle model presented A t-test was carried out at 5% level of significance after carrying out the statistical tests( See Fig II). to test whether internal marketing performance of fast food firms was acceptable by employees.

H : Fast food firms are effective in their internal 4.2 Analysis of Internal Marketing Processes of 1 marketing processes Fast Food Firms Table IV: One-Sample Statistics

N Mean Std. Deviation Std. Error Mean Einternal 10 3.1180 .54121 .17115

Table V: One-Sample Test

Test Value = 3.00 T Sig. (2-tailed) Mean 95% Confidence Interval of df Difference the Difference Lower Upper Einternal .689 9 .508 .11800 -.2692 .5052

The test used the perceptions of employees as they management of fast foods firms need to be are the ones with more information about internal upgraded to improve the service quality offered to processes of the firms. From the above statistics, customers. the p-value of 0.508 which is larger than 0.05 threshold was established. 4.3 Analysis of Interactive Marketing Processes of Fast Food Firms Conclusion: Since the p-value of 0.508 is larger than 0.05, we reject H1 and conclude that there is A t-test was carried out at 5% level of significance no evidence at 5% significance level to support that to test whether interactive marketing performance the internal marketing processes in fast foods firms of fast food firms was acceptable by employees. are effective. This shows that the firms have some service gaps to close using the internal marketing H2: Fast food firms are effective in terms of their elements. The leadership and human resource interactive marketing systems approaches Table VI: One-Sample Statistics

N Mean Std. Deviation Std. Error Mean CERactive 9 3.3317 .35656 .11885

Table VII: One-Sample Test Test Value = 3.00 Mean 95% Confidence Interval of T df Sig. (2-tailed) Difference the Difference Lower Upper CERactive 2.791 8 .024 .33167 .0576 .6057

Conclusion: Since the p-value of 0.024 is lower service gap between customers and employees is than 0.05, we fail to reject H2 at 5% level and partly closed in fast food firms in Zimbabwe. This conclude that there is agreement between shows that the service delivery gap is generally employees and customers at fast foods firms. This manageable in the Harare fast foods firms. This means that interactive marketing is being done could explain why such firms remain popular very well, only that there is no support from top among customers and employees. level management. Coordination between customers and employees is good. The agreement on this service triangle variable indicated that the

Imperial Journal of Interdisciplinary Research (IJIR) Page 412

Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in

4.4 Analysis of External Marketing Processes of H3: Fast food firms are effective in their external Fast Food Firms marketing operations

A t-test was carried out at 5% level of significance to test whether external marketing performance of fast food firms was acceptable by employees.

Table VIII: One-Sample Statistics

N Mean Std. Deviation Std. Error Mean CExternal 9 3.0400 .65875 .21958

Table IX: One-Sample Test Test Value = 3.00 95% Confidence Interval of T df Sig. (2-tailed) Mean Difference the Difference Lower Upper CExternal .182 8 .860 .04000 -.4664 .5464

On the significance of external marketing elements, managers who fail to understand the needs of the p-value obtained was as 0.860. Conclusion: customers and also failure to prescribe the correct Since the p-value (0.860) is larger than 0.05, we strategies and policies for satisfying customers. reject H3 at 5% level of significance, and conclude Service quality Gap 1 and Gap 2 need to be closed that the fast foods firms are not doing well in if this service triangle dimension is to be improved. external marketing. This could be caused by 4.5 Service Triangle Variable Summary

Fig 2: Service Triangle Performance Source: Researcher’s Construction 2016

The overall perceptions of the employees and marketing in fast food firms were generally viewed customers are summarised in the diagram as ineffective. This model point to the need for above(Figure II). From the research findings, the p- service firms to focus their efforts on improving the value for interactive marketing was 0.024, showing internal marketing and external marketing that the both employees and customer agreed that activities. most service aspects were satisfactory. This was different from internal marketing where the p-value 5.0 Conclusions was 0.508 and from external marketing where the p-value was 0.860. From the service triangle above, The study concludes that fast food firms performed the performance of internal marketing and external at average levels on all the dimensions of the

Imperial Journal of Interdisciplinary Research (IJIR) Page 413

Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-7, 2016 ISSN: 2454-1362, http://www.onlinejournal.in service triangle. Though they are in the same range, [9 ] Grönroos C, (2004),"The relationship interactive marketing was found to be above both marketing process: communication, interaction, external marketing and internal marketing in the dialogue, value", Journal of Business & Industrial industry in terms of customer and employee Marketing, Vol. 19 Iss 2 pp. 99 – 113 acceptability. It can also be concluded that management effort was perceived to be lacking by both employees and customers. Further research is [10] Gummesson, E. and Gronroos, C. (2012). The encouraged to focus on comparing and contrasting Emergence of New Service Marketing: Nordic the employee and customer perceptions and School Perspectives. Journal of Service Marketing evaluations of the fast food firms on the service Management. Vol. 23 Issues: 4 pp 479-497 triangle marketing variables.

REFERENCES [11] Hoffman K.D and Bateson J.E (2010). Services Marketing, Concepts, Strategies and [1]Booms, B. H., and Bitner, M. J. (1981). Cases .4th Edition; USA: South –Western Marketing strategies and organization CENGAGE Learning. structures for service firms. Marketing of services, 25(3), 47-52. [12] Lovelock C. (1996). A Service Quality [2] Browning, V. (1988) Creating Service Model and its Marketing implications European Excellence Through Human Resources Management Practices. South African Journal of [13]. Lovelock C. and Wirtz J. (2007, 2011), Business Management.. Services Marketing: People Technology, Strategy, 6th Edition, Pearson Education Ltd, [3] Creswell J. W. (2009), Research Design, Singapore Qualitative, Quantitative, and Mixed Methods Approaches, 3rd Edition, SAGE Publications, [14] Lovelock, C.H., Patterson, P.G. and Walker, Singapore. R.H. (1998). Service Marketing. Prentice Hall, Syndey. [4] De Vaus, D. (2002). Analysing Social Science Data. 50 Key Problems in Data Analysis. Sage. [15] Palmer, A. (2001). Principles of Service London. Marketing, 3rd Edition; UK: McGraw-Hill

[5]. Eiglier . P and Langeard E(1977),"Services as [16] Perrenault, W., D.Jr., and McCarthy, E. J. Systems: Marketing Implications," in P. (2000). Basic Marketing- A Global Managerial Eiglier, E. Langeard, C. H. Lovelock, J.E.G. Approach 15th Edition Tata McGraw Hill, New Bateson, and R. F. Young, Marketing Consumer Delhi Services: New Insights (Cambridge, MA: Marketing Science Institute, 1977), 83-103. [17] Zeithaml, V.A. and Bitner, M.J. (1996)

Services Marketing, McGraw-Hill, New York. [6] Field, A.(2009). Discovering Statistics Using [18] Zeithaml, V.A., Berry, L.L. and Parasuraman, SPSS, 3rd Edition, Washington DC; SAGE A. (1993) “The nature and determinants of Publications Ltd. customer expectations of service”, Journal of the [7] Flick, U.(2009). An Introduction to Academy of Marketing Science, Vol.21 No. 1, Qualitative Research, SAGE Publications, pp.1-12. Singapore. [19] Zeithmal A. V. and Bitner, M.J. (2004) [8] Gronroos, C. (1990). Service Management Services Marketing: Integrated Customer Focus rd and Marketing: Managing the Moments of Across the Firm, 3 Edition, Tata McGraw-Hill. Truth in Service Competition. Massachusetts: Lexington Books.

Imperial Journal of Interdisciplinary Research (IJIR) Page 414