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Exploring Customer Satisfaction with the Healthier Food Options Available at Fast-Food Outlets in South Africa

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Exploring Customer Satisfaction with the Healthier Food Options Available at Fast-Food Outlets in South Africa Exploring customer satisfaction with the healthier food options available at fast-food outlets in South Africa by Melanie Gopaul submitted in accordance with the requirements for the degree of Master of Commerce in the subject of Business Management at the University of South Africa Supervisor: Prof. M.C. Cant Co-supervisor: Mr R. Machado December 2013 Student Number: 45366128 DECLARATION I declare that “Exploring customer satisfaction with the healthier food options available at fast-food outlets in South Africa”, submitted in fulfilment of the requirements for the degree of Master of Commerce in the subject of Business Management with specialisation in Marketing at the University of South Africa (UNISA), is my own work and that all sources utilised within this research study have been acknowledged by means of complete references. ........................................................ Melanie Gopaul December 2013 - ii - DEDICATION To my parents, Sharen and Christopher Gopaul, who have always inspired and encouraged me to pursue my dreams – thank you for all the unconditional love, guidance and support that you have given me throughout my studies. - iii - ACKNOWLEDGEMENTS I would like to take this opportunity to express my sincere appreciation and gratitude to the following individuals who have been instrumental in the completion of this study: My supervisors, Prof. M.C. Cant and Mr R. Machado, for all their support, patience and excellent guidance. They have continuously encouraged and motivated me throughout this research study. Without them, this dissertation would not have been completed. I simply could not have wished for better supervisors. To my family, for always supporting and encouraging me with their best wishes. The University of South Africa (UNISA) for the financial assistance. Mr A. Masenge from the Bureau of Market Research (BMR) for his guidance and expertise in the statistical field. My friends and colleagues for their motivation and inspiration. Hennie Gerber for conducting my statistical analysis. Glenda Buncombe for editing this dissertation. Jenny Seagreen for the layout and technical editing of this dissertation. The research respondents for their willing participation and cooperation. “Challenges are what make life interesting; overcoming them is what makes life meaningful.” – Joshua J. Marine – - iv - ABSTRACT The South African fast-food industry is growing steadily, and so is the trend towards healthy eating. South Africans are becoming more aware of what they put into their bodies and not only do they want to consume meals that are quick and convenient, but they also want to ensure that what they are eating offers nutritional benefits. Although fast-food outlets have responded to customer demand by adding healthier food options to their menus, customer satisfaction regarding these options has not been investigated sufficiently in South Africa. The purpose of this study was to explore customer satisfaction with the healthier food options available at fast-food outlets in South Africa. An extensive literature review was conducted on the South African fast-food industry (the link between fast-food and obesity was noted, followed by a discussion on the trend towards healthy eating) and customer satisfaction. An empirical study was conducted, in which data was collected from students studying at the University of Pretoria by means of self-administered questionnaires. The study followed a mixed method approach, incorporating both qualitative and quantitative research in order to satisfy the research objectives. The results of this research study indicate that there is a high level of satisfaction amongst South African customers with the healthier food options available at fast-food outlets. Key terms Fast-food, fast-food outlets, fast-food industry, customer satisfaction, obesity, healthy eating, healthier food options, marketing, marketing research - v - CONTENTS CHAPTER 1: INTRODUCTION TO THE STUDY .......................................... 1 1.1 INTRODUCTION ................................................................................ 1 1.2 PURPOSE OF THE STUDY ................................................................ 1 1.3 BACKGROUND SKETCH ................................................................... 1 1.3.1 The South African fast-food industry ........................................ 3 1.3.2 The importance of customer satisfaction ................................. 4 1.4 THE RESEARCH QUESTION ............................................................. 5 1.4.1 Primary objective .................................................................... 5 1.4.2 Secondary objectives .............................................................. 5 1.5 RESEARCH METHODOLOGY ............................................................ 6 1.5.1 Research design ..................................................................... 6 1.5.2 Population of the study ............................................................ 6 1.5.3 Sampling ................................................................................ 7 1.5.4 Data collection ........................................................................ 7 1.5.5 Data analysis .......................................................................... 8 1.6 ORIENTATION TO THE STUDY ......................................................... 8 1.7 SUMMARY ......................................................................................... 9 CHAPTER 2: THE SOUTH AFRICAN FAST-FOOD INDUSTRY ................ 10 2.1 INTRODUCTION .............................................................................. 10 2.2 THE HISTORY OF FAST-FOOD ....................................................... 10 2.2.1 The fast-food concept ........................................................... 10 2.2.2 The beginning: how it all started ............................................ 11 2.2.3 The start of fast-food outlets .................................................. 15 2.3 THE SOUTH AFRICAN FAST-FOOD INDUSTRY ............................. 19 2.3.1 Fast-food consumption in South Africa .................................. 19 2.3.2 Top fast-food brands in South Africa ..................................... 23 2.4 THE LINK BETWEEN FAST-FOOD AND OBESITY .......................... 24 2.5 THE TREND TOWARDS HEALTHY EATING .................................... 27 2.5.1 Fast-food outlets and their healthier options .......................... 27 2.6 SUMMARY ....................................................................................... 31 CHAPTER 3: CUSTOMER SATISFACTION .............................................. 32 3.1 INTRODUCTION .............................................................................. 32 3.2 CUSTOMER SATISFACTION ........................................................... 32 3.2.1 Customer satisfaction defined ............................................... 33 3.2.2 The importance of customer satisfaction ............................... 38 3.2.2.1 The benefits of satisfying customers ..................... 38 3.2.2.2 The consequences of not satisfying customers ..... 39 3.2.3 Factors influencing customer satisfaction .............................. 42 - vi - 3.2.3.1 Product and service features ................................ 42 3.2.3.2 Customer emotions .............................................. 43 3.2.3.3 Perceived cause of events .................................... 43 3.2.3.4 Perception of fairness ........................................... 43 3.2.3.5 Family, colleagues and other customers ............... 44 3.3 MEASURING CUSTOMER SATISFACTION ..................................... 44 3.3.1 Service quality models .......................................................... 45 3.3.1.1 SERVQUAL .......................................................... 45 3.3.1.2 SERVPERF .......................................................... 46 3.3.1.3 DINESERV ........................................................... 46 3.3.2 Institutional DINESERV Model .............................................. 47 3.3.2.1 Food quality .......................................................... 47 3.3.2.2 Atmosphere .......................................................... 51 3.3.2.3 Service quality ...................................................... 52 3.3.2.4 Convenience ........................................................ 55 3.3.2.5 Price and value ..................................................... 56 3.4 SUMMARY ....................................................................................... 57 CHAPTER 4: RESEARCH METHODOLOGY ............................................. 59 4.1 INTRODUCTION .............................................................................. 59 4.2 THE RESEARCH PROCESS ............................................................ 59 4.2.1 Step 1: Define the research problem .................................... 61 4.2.2 Step 2: Establish the research objectives ............................. 62 4.2.3 Step 3: Determine the research design ................................. 63 4.2.3.1 Exploratory research design ................................. 63 4.2.3.2 Descriptive research design .................................. 64 4.2.3.3 Causal research design ........................................ 64 4.2.4 Step 4: Identify information types and sources ...................... 64 4.2.4.1 Secondary data .................................................... 65 4.2.4.2 Primary data ........................................................
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