Comparing the competitive advantages between
Macdonald and KFC, for young consumers in
Hsinchu area.
Professor: Dr. Trappey
Students: 陳嘉麟 9562503
蔡林龍 9562502
吳晉瑋 952028
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1. Introduction
Now if we standing before the train station, or nearby the ramp or exit of highway,
you can always see McDonald or KFC is there.
western fast food chain stores.
In the downtown, you will see more
There used to be many fast food brands in Taiwan:
Wendy’s, Hardy’s, Texas chicken, Burger King…, but now, these brands were only in
memories. We had some discussion with many friends about those fast food chains,
“What’s wrong with those famous brands had been ?”, “Why only McDanold or KFC
were left in Taiwan?”, “What are the factors to their success?”, “What if we compare
McDonald with KFC?” We are curious about who will finally occupy most of Taiwan
fast food market in the future, and by which competitive advantages?
So, our research
purpose is aimed at the comparing competitive advantages between McDonald and KFC.
And we will have some literature review, questionnaire for data collecting, and have
discussion for findings and suggestion.
Problem define
Literature review
Collecting data
Finding & Suggestion
Figure 1.1 Process of research
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2. Literature review
As we mention above, there were several western fast food chains in Taiwan many
years ago, but now we can only see a few of survivors in the market. In some research,
we can find some reasons for their success. For instance, we found McDonald’s is
successful with their flexible marketing strategies and QSC&V (Quality, Service,
Cleanness and Value) (Guang-Shiash Hu, 2000). In terms of the factors which will affect
consumer’s behavior and consuming amount, we can divide these factors in two specific
parts: utilitarian and hecdonics values. Also, it is found the improvement of utilitarian
and hecdonic values will raise consuming amount.(Yi-Wen Wang & Ming-Tsung
Lee,2005) When it comes to pricing , most of time we will use price related strategies to
raise sales volume or amount
However, in research we found consumers who often go
to McDonald will not increase their consuming amount despite McDonald strategy of
cutting price. (Wei-Hua Chen, Chia-Chun Tsai, 2003).
In a word, we choose six major
factors and study what are the McDonald’s competitive advantages.
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Environment
Food Selection
Price
Customers’
Attitude
Brand Image
McDonald’s
or KFC’s
competitive
advantages
Service
Taste of Food
Figure 2.1 Concept of research
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3. Methodology
3.1 Research Hypothesis
When young consumers choose the fast food restaurants, from the literature, we
selected six factors as the major factors, which are price, food selections, taste of food,
environment, service and brand image.
beliefs on the six factors.
Table 3.1
And we consider that everyone has different
Table describes the six hypotheses.
The six hypotheses to be verified in this research
Hypothesis1
Compared with KFC，”Environment” is a
of McDonald
competitive advantage
Hypothesis2
Compared with KFC，” Food Selection.” is a competitive
advantage of McDonald
Hypothesis3
Compared with KFC，”Price” is a competitive advantage of
McDonald
Hypothesis4
Compared with KFC，”Brand Image” is a competitive advantage
of McDonald
Hypothesis5
Compared with KFC，”Service” is a competitive advantage of
McDonald
Hypothesis6
Compared with KFC，”Taste of Food” is a competitive advantage
of Macdonald
3.2 Research Framework:
This research is to understand how young consumers selected the fast food
restaurants.
On the other hand, this can help the two fast food restaurants to know their
drawbacks and edges for improving and maintaining. The respondents have to be under
5
30 years old.
The questionnaire is designed base on six hypotheses.
After statistical
analysis, the result will indicate if the hypotheses are confirmed or rejected, through
which the advantages of two fast food restaurants and consumers’ perception will be
revealed.
Hypotheses
Survey
Statistical Analysis
Research Findings
Conclusions
Suggestions
Figure 3.1 Research Framework
3.3 Sample Frame
A questionnaire was designed and used to verify the six hypotheses and it was
conducted in Hsin-Chu city only.
To aim at the young consumers purchasing behaviors,
all respondents must be under 30 years old.
Seventy questionnaires were planned to do
the analysis.
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3.4 Methodology
This research used Minitab as the statistic software to analyze the data are collected
from the questionnaires. The main statistical method is two sample t test. which is tested
if the mean existed significant difference.
Significant level α=0.05.
.
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4. Results and Findings
Seventy respondents answered the questionnaires in this research.
First, we
discussed the beliefs of young consumers on the six factors we choose, the result was
shown below:
Note that the scores of beliefs is from 0 to 6.
5.04
5.03
4.99
4.81
5.26
5.27
0
Environm e nt
Food
Se le c tion
Pric e
Bra nd
Im a g e
Se rvic e
Ta ste of
Food
Figure 4.1 Histogram of Beliefs in young consumers
What do the young consumers care most?
From the Histogram, it shows that the
young consumers care about the service and taste of food most.
Moreover, the
respondents scored the two fast food restaurants, McDonalds and KFC. Note that the
score of rating is from 0 to 10. The t-test was conducted by “belief times rating” of
McDonald as well as KFC and this would help us to confirm or reject our hypotheses.
Base on the results, we could understand the competitive advantages of each fast food
restaurants.
The t-test result was shown below:
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Table 4.1
Factors
T-test for difference on six factors
Mean
Belief (Belief times Rating)
STDDV
(Belief times Rating)
T-value P-value
McDonald
KFC
McDonald
KFC
Environment 5.04
33.50
33.46
8.05
6.2
0.04
0.486
Food
Selection
5.03
33.74
33.76
7.08
5.59
0
0.5
Price
4.99
34.00
30.87
11.3
8.81
1.81*
0.037*
Brand
Image
4.81
34.40
32.16
9.76
8.91
1.44
0.076
Service
5.26
38.21
35.96
8.82
8.51
1.54
0.063
5.27
37.66
36.79
8.01
7.36
0.74
0.231
Taste of
Food
The statistical results show that there are no significant difference on environment,
food selection, brand image, service and taste of food and that means they are not the
competitive advantages of McDonald.
advantage of McDonald(P=0.037<α).
However, the price of McDonald is a competitive
Young consumers generally considered that
McDonald provides a more reasonable food price of food.
standard deviations of McDonald were greater than KFC.
Moreover, almost all the
One more thing should be
noted is that we got a very marginal P-value on the brand image and service.
Conservatively speaking, brand image and service could be latent competitive advantages
of McDonald.
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5. Conclusions and Suggestions
5.1 Conclusions
This research studies the competitive advantages of two fast food restaurants,
McDonald and KFC, from young consumers’ perspective. Through statistical test, we
got the summary table.:
Table 4.1 Summary of hypotheses test
Hypothesis1
compared with KFC ，”Environment ” is a
advantage of McDonald
competitive
Hypothesis2
Compared with KFC，” Food selection” is a competitive
Rejected
advantage of McDonald
Hypothesis3
Compared with KFC，”Price” is a competitive advantage of
Supported
McDonald
Hypothesis4
Compared with KFC ， ” Brand image ” is a competitive
Rejected
advantage of McDonald
Hypothesis5
Compared with KFC，”Service” is a competitive
advantage of McDonald
Hypothesis6
Compared with KFC，”Taste of Food” is a competitive
Rejected
advantage of MaDonald
Rejected
Rejected
(1) When young consumers selected a fast food restaurant, they care about the
service and taste of food most.
In order to increase the market share of young
consumers, restaurant managers have to put plenty of efforts on the service and
taste of food.
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(2) Young consumers consider that the McDonald provides a more reasonable food
price than KFC.
To McDonald, it’s an advantage against KFC and should be
maintained. On the other hand, KFC should do a detail research about the
reason why young consumers have such perception about the price of two
restaurants.
(3) We found that every factor, the all standard deviation of McDonald were greater
than KFC.
It possibly means that young consumers give the more diverse
rating on McDonald.
(4) We got the marginal p-value on service and taste of food and that could be the
latent competitive advantages of McDonald.
5.2 Suggestion
This is just an explorative research. Seventy questionnaires maybe not sufficient
to get the precise results. Enlarge the number of the respondents is the first suggestion
in future research. Moreover, most our respondents are senior high school students, we
may lack the opinions of college students and others who are under 30 years old.
Why
young consumers think the price of McDonald are more reasonable, a detail research is
needed.
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Appendix—Questionnaire
First of all, thanks for your time to fill this questionnaire which is used to survey
the key factors affecting customers' preference when they choose western fast food
restaurants, like McDonald or KFC. After reading the following questions, please choose the
answers. The importance level of the factors: 1-least important 2-less important
3-unimportant
4-very important
5-more important
6-most important.
Evaluation
points of KFC or McDonald:1-9 points(when one get more points on each item, one
performs better on that item.)
1. When you choose fast food restaurants, is “Clean environment?? the factor that attracts
you to consume? (
)
At McDonald's(KFC), how many points you will give them in terms of clean
environment?
2.
McDonald(
)
KFC(
)
When you choose fast food restaurants, is “multiple choices” of food?? the factor that
attracts you to consume?(
)
At McDonald(KFC), how many points you will give them in terms of multiple choices
of food?
McDonald(
)
KFC(
)
3 When you choose fast food restaurants, is “price” the factor that attracts you to consume?
(
)
At McDonald(KFC), how many points you will give them in terms of price?
McDonald(
)
KFC(
)
4. When you choose fast food restaurants, is “brand” the factor that attracts you to consume?
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At McDonald(KFC), how many points you will give them in terms of brand?(
McDonald(
5.
)
KFC(
)
)
When you choose fast food restaurants, is “service quality” the factor that attracts
you to consume?(
)
At McDonald(KFC), how many points you will give them in terms of service quality?
McDonald(
)
KFC(
)
6 When you choose fast food restaurants, is “food” the factor that attracts you to consume?
(
)
At McDonald(KFC), how many points you will give them in terms of food?
McDonald(
)
KFC(
)
Background information
1.Gender: ___male,___female
2.Education degree: ___junior high school, ___senior high school, ___bachelor's degree,
____master's degree, ___doctor's degree
3.Age:___15~20, ___20~25, ___25~30, ___above 30. We do appreciate for your assistance.
We
benefit a lot from your help.
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