CUSTOMER SATISFACTION ON KFC COMPANY IN CAMBODIA Mr. PHARATT RUN ID: 5817192038 SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION GRADUATE SCHOOL SIAM UNIVERSITY BANGKOK, THAILAND 2017 iv ACKNOWLEDGEMENT First of all, I would like to express my gratitude to Dr. Vijit Dupinij, Dean, Graduate School of Business, Siam University, Bangkok, Thailand who has devoted a lot of valuable time, shared his experience, knowledge, gave suggestion and guidance me to wrote my Independent Study. Second, I would like to say thanks to my parents, brothers and my sister especially my mother Mrs. Bou Ngo who supported me for study in Thailand. She always say to me do not give up when you face with the problem. Finally, I would like to say thanks to all lecturer and friends in Siam University who provided me the knowledge and help me in during of study. v TABLE OF CONTENTS ABSTRACT iii ACKNOWLEDGEMENT iv TABLE OF CONTENTS v Chapter I : Introduction Page 1. 1 Background 1 1.2 Objective Of Study 2 1.3 Conceptual Framework 3 1.4 Hypothesis 3 1.5 The limitations of this study 3 Chapter Ⅱ: Literature Review 4 1. The Related Theories 5 1.1 Consumer Behaviors Definition 5 1.2 Consumer Perception 19 1.3 Segmenting Consumer Markets 22 1.4 Marketing Positioning 22 1.5 Marketing Strategy 23 1.6 Customer Behavior 27 1.7 Customer Expectations and Satisfactions 31 2. Related Research 31 Chapter Ⅲ 32 3.1 Research Methology 32 3.2 Population and Sample 32 3.3 Research Instrument 32 3.4 Statistic Analysis 33 Chapter Ⅳ: Research Findings 34 4.1 Demographic Profile 34 vi 4.2 The Perceptions of the Patrons toward the Selected KFC Food 37 4.3 The Three most Important Factors that Influence Repeat Customers 44 Chapter Ⅴ: Conclusions and Recommendations 46 5.1 Conclusions 46 5.2 Recommendations for Further Study 46 REFFERENCES 48 APPENDIX 49 1 CHAPTER I INTRODUCTION 1.1 Background Globally, fast food make money of over $570 billion - that is much more than the economic value of most countries. Only in the United States the fast food can make the revenue $200 billion in 2015 – it is growth a lot since the 1970 revenue of $6 billion. The fast food industry hope that annual will growth of 2.5% for the next several years. The KFC (Kentucky Fried Chicken) is the one of fast food company that was founded by Colonel Harland Sanders. In during the depression, Colonel Harland Sanders start doing the business by sell the fried chicken on the roadside outlet in Carbin, Kentucky. Colonel Harland Sanders start to noticed about the powerful of franchising of his restaurant then in 1952, Colonel Harland Sanders has started to open the first franchise of KFC (Kentucky Fried Chicken) in Salt Lake City, Uth. Chicken has been used as the main raw material of KFC food. The KFC company try to satisfy their customers by made the dominance of humburger. Branding himself "Colonel Sanders", the founder became a prominent figure of American cultural history, and KFC advertising always use his image. For manage the rapid expand of company it is difficult for him to control so he sold the KFC company to the group of investors that manage by John Y. Brown, Jr. and Jack C. Massey in 1964. KFC (Kentucky Fried Chicken) was the first fast food chain. It is expanded internationally. KFC started open the franchise outside the USA in middle 1960 that countries are Jamaica, Mexico and England. During the 1970s to 80s, KFC experienced mixed success domestically, as we know KFC company allow the people can be the owner of KFC restaurant even they have a little or no experience in the restaurant business. KFC was sold the spirits distributor Heublein to the R.J. Reynolds food and tobacco conglomerate in the early 1970s, which later sold the chain to PepsiCo. The chain is growing the expansion in around the world. In 1987 KFC started to open their franchise in China, so KFC became the first Western restaurant chain that open in China. PepsiCo spun off its restaurants division in 1997, as Tricon Global Restaurants has been changed the name to Yum! Brands in 2002. Yum has proved a more focused owner than Pepsi, and in US there are so many outlets of KFC have declined, but company is growing in Asia, South America and Africa. The KFC company have 18,875 restaurants in 118 countries and territories, only in China it have 4,563 outlets that is KFC's largest market. For growth market strategy of KFC company to the world in March 2008, KFC stablished in Cambodia.in Monivong Boulevard, Phnom Penh is the first KFC restaurant in Cambodia. Royal Group of Campanies Ltd (The Royal Group) has a lot of company,.the KFC is one of them, It has the partnership with the Malaysian QSR brands and Rightlink Corporation. In Cambodia the Royal Group is so famous and it is also the largest conglomerates in Cambodia. The media, telecommunications, banking, education, property development and trading in Cambodia have been invested by The Royal Group. 2 In Cambodia KFC have 13 franchise 1). KFC Monivong Boulevard (Open hour 10:30am to 9:30pm) 2). KFC Sovanna (Open hour 10:00am to 9:00pm) 3). KFC Norodom Boulevard (Open hour 9:00am to 10:00pm) 4). KFC Ratana Plaza(Open hour 10:00am to 9:00pm) 5). KFC Kampuchea Krom (Open hour 10:00am to 10:00pm) 6). KFC Riverside(Open hour 10:00am to 10:00pm) 7). KFC Chbar Ampov(Open hour 11:00am to 9:00pm) 8). KFC Attwood business Center(Open hour 9:00am to 9:00pm) 9). KFC Toul Tompoung (Russian Market) (Open hour 9:00am to 9:00pm) 10). KFC Siem Reap(Open hour 10:00am to 10:00pm) 11). KFC AEON Mall (Open 10:00am to 10:00pm) 12). KFC BKK (Open 09:00am to 10:00pm) 13). KFC KPS (Shihanuvill ) (Open 09:00am to 10:00pm) Economically, Cambodia is a country in ASEAN that its GDP has high growth rates during the past decade. During in 2000 to 2010 Cambodia economic performance had positive statistics the average of GDP growth of 8.2% , and 2011 to 2013 its GDP had average growth 7.4%. By [MEF's statement on 22 July 2013] GDP per capita of Cambodian is US$1,036 if we compared to the year 1992 is US$200. As we see now, Cambodia's economic status has became a low Middle Income Country. When Cambodian have more money in their hands they want try taste of western fast food one of fast food they like is KFC fast food company. All I mention in above that why I want to study about customers satisfaction on KFC company in Cambodia for to know how much level that Cambodian satisfaction on KFC company on product, service. 1.2 Objective Of Study In conducting this research, the researcher had the follow objectives: 1. To determine a demographic profile of the selected KFC Food customers in Cambodia. 2. To identify perceptions among customers toward the selected KFC Food. 3. To determine factors that influence repeat customers. 3 1.3 Conceptual Framework The follow diagram presents the relationship between independent variables and dependent variables. Independent Variables Dependent Variables Age Product Sex Service Income Cleanliness level of education Dining Environment 1.4 Hypothesis The difference in sex, age, Income, level of education affect the difference in customer’s satisfaction on KFC product in Cambodia. The difference in sex, age, Income, level of education affect the difference in customer’s satisfaction on KFC service in Cambodia. The difference in sex, age, Income, level of education affect the difference in customer’s satisfaction on KFC Cleanliness in Cambodia. The difference in sex, age, Income, level of education affect the difference in customer’s satisfaction on KFC Dining Environment in Cambodia. 1.5 The limitations of this study We have a few of limitations to this study The survey was limited to the customers who live in Phnom Penh, Cambodia during a specific time period. The survey was conducted in only a few selection location in Phnom Penh, Cambodia that were selected based on people who bought KFC Food . This study was conducted by selecting a sample population randomly. This provided a clustered sample. The data was collected during the month of September 2016 to October over the period of four weeks. 4 CHAPTER Ⅱ LITERATURE REVIEW In this chapter reviews the concepts and theories for major constructs of the study. The chapter have 2 sections with are the related theories, literature to support of this study, and related research. 1. The Related Theories 1.1 Consumer Behaviors 1.1.1 Definition and important 1.1.2 Model of nature of consumer behavior 1.1.3 Consumer behaviors in service firm 1.1.3.1 Model of Stages of Consumer Decision Making and Evaluation of service 1.1.3.2 Demographics Segmentation 1.1.3.3 Social Stratification 1.2 Consumer Perception 1.2.1 Definition and Important 1.2.2 Model of nature of consumer perception 1.3 Segmenting Consumer Marketing 1.4 Marketing Positioning 1.5 Service Marketing Strategy 1.5.1 Marketing Strategy for service firm 1.5.2 Understand pricing in service firm 1.6 Motivation in consumer behavior 1.7 Phnom Penh 1.8 Customer tendencies 2. Related research 5 1. The Related Theories 1.1 Consumer Behaviors Definition The consumer Behaviors means the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society (Hawkins, Best, Convey, and Koch 2004).