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Factors Influencing The Consumer Decision Making Process

Paper Type: Free Essay Subject: Marketing
Wordcount: 1429 words Published: 13th Apr 2017

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INTRODUCTION:

The aim of this dissertation is to investigate the factors that are influencing consumer decision-making process in relation to fast food restaurant industry in the UK. It further aims to examine how McDonalds is responding to changing environment and consumer behaviour.

This is important and at the same time interesting to observe such topic, because of the high-profile political and public debate on obesity and other health issues that is UK currently facing.

A better understanding of the background and problems related to the fast food issue and context of decision-making process is first obtained via literature review, where various academic journals were examined. Afterwards the qualitative focus group was conducted with an aim to explore and gauge consumer attitudes towards fast food and McDonalds. Key themes from focus group formed questions for the questionnaire. This quantitative survey was then used to gauge whether the views of the respondents from focus group were representative of a larger group.

In order to examine the context in which McDonalds is evolving, with addition to identify the key drivers of change that might influence fast food industry in the future, PEST framework was applied. Changing consumer lifestyle and Government interference were highlighted as two potential drivers of change.

Key themes from focus group were quality of fast food, ethical aspects (animal welfare), trust towards McDonalds and impact of media and Government on consumer behaviour. These themes were then tested to a larger group using questionnaires. Respondents associated McDonalds and its products with adjectives such as unhealthy, cheap, tasty and fatty. They ‘ranked’ their food (with exception of salads and fruit) as of the worst quality. 25% of respondents claimed that ethical issue regarding chicken bothers them and that is the reason they don’t eat chicken in McDonalds. Moreover 28% of those who were familiar with current high public obesity debates in the UK issue it affected them in such way that they now eat less fast food as they used to. 35% of respondents claimed that ever since they saw the documentary “Super Size Me” they don’t eat in McDonalds anymore.

Most purchases of fast food occurred as a result of impulse decision-making.

Since consumer’s knowledge/information acquired regarding fast food is mostly negative, as a result their attitudes are also negative. There are also external influences that have negative impact on consumer decision-making process i.e. current high public obesity debates in the UK. McDonalds is responding on changes in environment and consumer behaviour by introducing healthier menus. Consumers do not trust McDonalds, which also negatively impact on their decision-making process. All factors above contribute towards risk perception that consumers have with McDonald’s food. Marketers at McDonalds try to reduce perceived risk by providing consumers with information regarding their food. That is also author’s proposed recommendation- to increase awareness of the quality of McDonalds’ products and hence reduce consumer’s perceived risk and increase their trust with McDonald’s brand.

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Consumer behaviour

Referring to Solomon (2009, p.27) consumer behaviour is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, idea or experiences. Consumer behaviour focuses on how individuals make decisions to spend their available resources on consumption related items. That includes what they buy, why they buy, when they buy, where they buy it, how often they buy it how often they use it, how they evaluate it after they purchase and the impact of such evaluations on future purchases, and how they dispose it. Schiffman and Kanuk (2008, p.8)

1.1.2 Consumer attitudes

According to Ajzen (1998) the attitudes are the first determinant of behaviour intention. In consumer behaviour context attitude is a learned predisposition to behave in a consistently favourable or unfavourable way with respect of a given object. There is a general agreement that attitudes are learned. This means that attitudes relevant to purchase behaviour are formed as a result of direct experience with the product, word-of-mouth information acquired from others, or exposure to mass media advertising. Internet etc. (Schiffman and Kanuk, 2008, p.253) As learned predispositions, attitudes may propel consumer towards particular behaviour or repel the consumer away from particular behaviour. . (Schiffman and Kanuk, 2008, p.253)

1.2. Fast food VS Junk Food

Fast food is regarded as “food, as hamburgers, pizza, or fried chicken that is prepared in quantity by a standardized method and can be dispensed quickly at inexpensive restaurants for eating there or elsewhere”. (dictionary.com, 2009)

Junk food is regarded as “food such as potato chips, sweets and doughnuts, which is mass-produced and is of low nutritional value”. (dictionary.com, 2009)

Often the term junk food is used to describe fast food. Just recently, the debate has been going on whether the term junk food (to describe fast food) is in fact justified. Author of article argues that the “junk food” tag seem to be applied selectively, and often to food outlets in urban and suburban areas but not to those in leafier parts. Hence, he points out that the term “junk” has become a way of disapproving of certain foods. (O’Neill, 2009)

Obesity in the UK

The most recent research has shown that being overweight or obese is now the norm in the UK, with figures released by the government showing that two- thirds of men and almost 60% of women are unhealthily heavy. (Boseley, 2009) Furthermore UK has the highest level of obesity in Europe. (Datamonitor, 2009) According to a report issued by the Department of Health, the findings for ‘Forecasting obesity in 2010’ were grotesque. Within four years, it predicts, a third of all adults in UK (13 million people) will be obese. So will 1million children. (Marrin, 2009)

Fast food industry in the UK

Definition of the fast food industry:

The fast food industry is defined as the sale of food and drinks for immediate consumption either on the premises or in designated eating areas shared with other foodservice operators, or for consumption elsewhere.

Fast food outlets are specialised in burgers, bakery products, chicken, ice cream, fish and pizza. (Datamonitor, 2009)

In spite of consumer concerns of fast food being linked with problems such as obesity, diabetes, heart conditions, food poisoning and scares and unethical advertising, the UK fast food industry has enjoyed remarkable growth in recent years.

In terms of per capita expenditure, between 2000 and 2005, the fast food outlets have been growing at the fastest pace within the consumer food service sector. (Euromonitor, 2009b)

McDonald’s Corporation background

McDonald’s Corporation was the leading fast food outlet in the UK in 2008, with an 18.3% value share and a clear lead over its nearest rivals KFC (owned by Yum Brands) and Burger King. (Euromonitor, 2009b)

McDonald’s is a pioneer in the fast food industry and today world leader in the sector. The company has over 31,000 fast food restaurants in over 120 countries. (MarketLine, 2009)

The company operates primarily in the US and the UK. It is headquartered in Oak Brook, Illinois and employs 447,000 people all over the world. (Datamonitor, 2009)

McDonalds currently operates in more than 1,316 restaurants throughout the UK. Its profits grew by 55% in 2008. (Euromonitor , 2009b)

In 2003 the company was losing money for the first time in its five-decade history, as it was serving mainly greasy food and therefore fuelling obesity epidemic. Moreover the company was losing important consumers trust due to release of the documentary ‘Super size me’ and critical book ‘Fast food nation’. However, McDonalds introduced healthier menus and just recently (October 13th 2009) it has announced that its sales had rocketed, sending its shares soaring to a six year high. British restaurants were singled out among the biggest improvers in performance. (Clark, 2009)

Research question

 

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