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NATIONAL ECONOMICS UNIVERSITY NEU BUSINESS SCHOOL RESEARCH METHODOLOGY RESEARCH PROPOSAL FACTORS INFLUENCING FAST FOOD PURCHASING DECISIONS IN VIETNAMESE MCDONALD’S Group – EBDB Written by: Mai Duy Khánh (group leader), Nguyễn Tiến An, Nguyễn Tiến Dũng Nguyễn Tuấn Hưng, Trần Minh Hiếu, Vũ Thanh Tùng Contents Rationale 1.1 Problem statement 1.2 Research objectives .3 1.3 Research questions 1.4 The relevance of the study .3 Literature review 2.1 What is ‘fast food’? .4 2.2 Purchase decisions 2.3 What are the factors affecting fast food purchase decisions? Theoretical framework and hypothesis 3.1 Variable model 3.2 Hypothesis .6 Hypothesis development Research methodology .10 5.1 Research design 10 5.2 Population and sample 11 5.3 Data collection method 12 Research Report Structure 14 Timeframe 14 References 15 Rationale 1.1 Problem statement In the context of modern society, fast food has increasingly accounted for the most part of the food ration of people all around the world due to its convenience and taste In many Western nations, mainly the US, the consumption of fast food is still extremely high and the revenue of this industry has increased at a fast pace, exceeding hundred billions of dollars However, this fact is not true in Vietnam due to some reasons as many fast food chains from the West have entered the market but almost every one of them hasn’t yielded any noticeable achievements The biggest example of this is McDonald's, which has had many huge successes in many countries around the world and has encountered serious failures in the Vietnamese market ever since it first got introduced into Vietnam in 2014 Although there are multiple investigations into what McDonald’s entry strategies were when they came into the Vietnamese market, but there is almost no research into why it hasn’t taken off in Vietnam unlike other countries 1.2 Research objectives Due to the issues mentioned above, our group has decided to carry out this research with two main purposes: (1) Identify some factors affecting fast food choices of Vietnamese people, and (2) give several effective solutions which can help McDonald’s to improve their revenue 1.3 Research questions This research is designed to answer the following questions: What are the main factors influencing Vietnamese people in choosing fast food? Which solutions can McDonald’s take to improve their service and revenue? 1.4 The relevance of the study This study aims to help McDonald’s to operate more efficiently in Vietnam in order to boost their revenue as well as expanding the overall operating scale of the brand in Vietnam, which can create more jobs for people in this country and therefore tackling some social issues, such as unemployment, the low quality of life of in some regions in Vietnam and so on Furthermore, this research also would provide valuable information about what factors future fast food chains should focus on to brands that want to take a dive into the Vietnamese market in order to avoid facing a similar situation like McDonald’s The format of this research can also be used to develop to test the same hypothesis in other fields as well Literature review 2.1 What is ‘fast food’? Fast food is a type of food that is prepared and served quickly to customers It typically refers to food that is pre-cooked and packaged or cooked to order and served in a take-out container or on disposable plates Fast food is often associated with chain restaurants, such as McDonald's, Burger King, and KFC, but it can also include food from convenience stores, food trucks, and other quick service establishments Fast food is known for being convenient, affordable, and easily accessible, making it a popular choice for people who are on-the-go or looking for a quick meal Common examples of fast food include hamburgers, hot dogs, pizza, fried chicken, french fries, and sandwiches Fast food is often high in calories, fat, sugar, and sodium 2.2 Purchase decisions Consumer purchase decisions have been widely researched in contemporary marketing literature It was expressed by Salem (2018) as the process that starts when a consumer recognizes a need, searches for options, evaluates alternatives, and then selects a certain product and service Therefore, customer purchase decisions can be conceptualized as a series of steps that consumers go through before making the actual purchase The presence of purchase decisions plays a vital role in fostering profitability within the industry, especially when customers are content with the products or services offered Moreover, purchase decisions hold significant importance within the business realm Purchase decision serves as the determining factor in assessing whether a product aligns with customers' expectations and needs, thereby influencing their evaluation of goods and services This concept suggests that customers experience higher levels of satisfaction when the production and services provided meet their expectations Conversely, if the performance of a product falls short of their expectations, customers tend to feel dissatisfied Notably, customer purchase decisions serve as the key driver for achieving long-term business success, as it helps retain customers and accumulate their customer lifetime value (CLV) 2.3 What are the factors affecting fast food purchase decisions? In this modern day, more and more popular fast food chains have been introduced to the Vietnamese market Goyal and Singh (2007) declared that fast food is the fastest emerging food category in the world Taking that into account, businesses must find ways to attract potential customers There have been multiple studies looking at how certain factors affect people’s decision to purchase fast food Ryu and Jang (2007) found that restaurant environment is able to establish brand image and affect customers’ retention level, particularly in the fast food industry While research in Iran has revealed that “health consciousness” and “trust” are the main effective factors on the attitudes of respondents toward fast food consumption (Omit et al, 2018) In addition to that, some studies identified that taste, cost, convenience, and health are key parameters that influence the choice of food (Jilcott, Stephanie B., et al, 2009) While Anderson, Beth, et al (2011) conducted a survey and found that the predominant reason for choosing fast food was convenience In order to contribute further to the overall research, this case study aimed to explore the factors including price, convenience, restaurant environment, brand awareness and health conscious towards fast food purchase decisions in the Hanoi market Theoretical framework and hypothesis 3.1 Variable model The figure represents the theoretical framework We choose the following variables to represent the independent variables: Price (H1), Convenience (H2), Restaurant environment (H3), Brand awareness (H4), Interest in health (H5), and the dependent variable is Fast food purchase decision 3.2 Hypothesis 3.2.1 H1: Price will be negatively associated with fast food purchase decisions Price is one of the most significant factors of purchase decisions in the fast food industry Price promotes the willingness of customers to purchase fast food and provides prompt service in the fast food industry According to the principle of supply and demand, when price increases, the demand will decrease and vice versa And the fast food market is not an exception, when the price of fast food increases to the point that it is too exorbitant, people will not be willing to purchase them (Kim et al 2011), instead they will buy other foods which are cheaper and more suitable for their budget Using this to the brand’s advantage, fast food restaurants utilize price manipulation tactics such as penetration pricing or bundle pricing when selling their menu item to customers Furthermore, the income of Vietnamese people is still relatively low, therefore, the lowered price can attract more customers in fast food restaurants This lead to the hypothesis 1: H1: Price will be negatively associated with fast food purchase decision Document continues below Discover more from:hoạt công dân sinh SHCDk63 Đại học Kinh tế Quốc… 396 documents Go to course Key-shcd - key shcd 14 sinh hoạt công dân 100% (8) KỊCH-BẢN-SINH-HOẠTCHI-ĐỒN-1 sinh hoạt cơng dân 100% (2) Quy che Cong tac 25 104 nguoi hoc sinh hoạt công dân 100% (2) [123doc] - tai-lieu-onthi-hsg-sinh-hoc-8-… sinh hoạt công dân 100% (2) Huongdansudungemailsv sinh hoạt công dân 100% (1) SHCD đầu khóa SHCD đầu khóa sinh hoạt công 100% (1) dân 3.2.2 H2: Convenience will be a key factor stimulating people’s fast food purchase decision In a survey conducted in a group of people who consumed fast food frequently, 92% of them agreed that fast food is quick, 80% supposed that fast food can be easily found anywhere at any time and 69% agreed that fast food is very delicious (Rydell, Sarah A., et al,2008) In this day and age, given that a regular person’s workload is much more hectic and stressful than ever before, people would prioritize having their food easily accessible Rating the level of convenience can be challenging, but typically there are multiple factors that can impact it, which consist of accessible location, parking availability, store hours, proximity to other stores, and telephone and internet access The speed and ease that consumers can make contact with retailers powerfully influences their retail choices (Huang, YingFang and Hoang Sa Dang, 2014) In addition to the fact that fast food is convenient, people will prioritise these foods when choosing which to eat This leads to the hypothesis 2: H2: Convenience will be a key factor stimulating people’s fast food purchase decision 3.3.3 H3: Restaurant environment will be positively associated with Fast food purchase decisions Literature has proved that store atmosphere and purchase decisions have a positive relationship; the physical attractiveness of a store has a bearing on the customer’s willingness to spend time there and shopping This is especially true with gen Z as the majority of this generation have a pretty low attention span and therefore would be more prone to being drawn into something beautiful or aesthetically pleasing The store atmosphere consists of lighting, music, layout, furnishing, colors and scents, and these serve as a stimulus which can aid the customers’ behavioral response in a positive or negative manner If the fast food stores are beautifully decorated, clean as well as create a sense of welcoming, they will be able to encourage more customers to come directly and use their services By contrast, if fast food restaurants not pay attention to improving their environment and facilities, they not only cannot retain customers, but they will also receive negative feedback and hamper their overall profit This leads to hypothesis 3: H3: Restaurant environment will be positively associated with Fast food purchase decision 3.3.4 H4: Brand awareness will be positively associated with fast food purchase decision There is no doubt that “The brand awareness has turned into an important variable that impacts customer's perceptions of a brand Achievement in brand management arises from understanding and overseeing brand image and loyalty correctly to create strong characteristics that will impact consumers when making their decisions” (Karam, A A., & Saydam S, 2015) Therefore, the importance of brand awareness needs to be highly focused In order to build your brand, using advertising to promote a product is a very popular marketing strategy In our daily lives, we often encounter advertising through television, newspapers, magazines, and direct mail The purpose is to display your product in a positive manner, convince your customers about the quality of your product and instill consumer trust in its reliability An advertisement can catch consumers’ attention and increase brand awareness and transfer consumers’ feelings onto the product and produce a good impression (Biswas et al., 2006) For example, when fast food brands make attempts to create advertisements on a variety of platforms, such as TVC or making banners, they will make more and more people know about their brands and thus encourage people to come and enjoy their services Not focusing on advertising and branding is a serious failure and needs to be avoided This leads to hypothesis 4: H4: Brand awareness will be positively associated with Fast food purchase decision 3.3.5 H5: Interest in health will be negatively associated with Fast food purchase decision “We analyse the characteristics of fast food, including high-energy density, high fat, high fructose, low fiber, and low dairy intake, which favor the development of CNS insulin resistance and obesity.” (Elvira and Robert, 2005) One of the most crucial elements related to the loss of income and sales is that customer behavior is shifting toward fast food Although fast food is relatively convenient and fast, it may cause some serious health problems, such as obesity or heart attack According to the CDC, in the USA, where the quantity of fast food consumed is extremely huge, the obese rate among adults is 41.9% in 2017 – March 2020, which is a very high number Moreover, data taken from Bernhardt et al (2012)’s research also mentioned that the average UK individual is now four times more attentive to what they consume in terms of health The rising trend of people seeking healthier meal options is a clear indication of a significant shift in consumer preferences and habits As individuals become more conscious of their dietary choices and prioritize their well-being, they are actively seeking alternatives that align with their health goals As a result, the importance of consumer perception toward fast food cannot be overstated Another critical factor associated with a lack of sales is the firm's inability to innovate and diversify As customers increasingly prioritize health-conscious options, fast food chains must adapt their menus and offerings to cater to these changing demands Failure to so could result in a decline in sales and revenue, ultimately jeopardizing their market position and competitiveness This could be seen in McDonald's' menu in Vietnam as it has been inflexible ever since the first McDonald’s restaurant was introduced in Ho Chi Minh City, which has a direct influence on purchasers' decisions of a company's innovation and progress The consequences of this is the inability to collect any meaningful profit throughout its time in Vietnam If people are more health conscious, they will be unlikely to consume fast food Instead, they will choose other healthy food which can help them to keep fit and prevent serious health issues This leads to hypothesis 5: H5: Interest in health will be negatively associated with fast food purchase decision Hypothesis development Hypothesis 1: H1: Price will be negatively associated with Fast food purchase decisions Hypothesis 2: H2: Convenience will be a key factor stimulating people’s fast food purchase decisions Hypothesis 3: H3: Restaurant environment will be positively associated with Fast food purchase decisions Hypothesis 4: H4: Brand awareness will be positively associated with Fast food purchase decisions Hypothesis 5: H5: Interest in health will be negatively associated with Fast food purchase decisions Research methodology 5.1 Research design The purpose of the study This research is a descriptive study In this research, our objective is to figure out how different aspects can influence consumers’ fast food buying decisions in chain restaurants in Vietnam, or more specifically toward McDonald’s given the context of our research Our study and findings can be beneficial to the McDonald’s higher-ups who can manifest suitable tactics that can boost their brand revenue and build a strong brand image in Vietnam Extent of researcher interference The extent of researcher interference is minimal in this study, due to the fact that our study investigates the impact of certain aspects to the consumers’ decision to purchase fast food based on existing facts, recorded statistics and recorded studies on the subject Study setting The study is non-contrived The study can be done in a natural environment without any artificial interference Research strategy In this specific study we believe that the descriptive design and quantitative research method would be suitable to our objectives The reason why is because by using this method, we would be able to collect much more in-depth data about our topics from many demographics in order to generalize results from a larger sample population, which we could use to test our aforementioned hypotheses Unit of analysis Due to the fact that we want to analyze responses from different people having different variables, we selected the cross-sectional study for our research 5.2 Population and sample Participants In the West, McDonald’s demographics particularly focus on multi-generational families, who enjoy a range of products and experiences However, in the East, McDonald’s food is usually catered to the younger generation, more specifically children, teenagers and young adults because they are more likely to try and taste different cuisines, although the brand has made some efforts in terms of enlarging its demographic by introducing ‘healthy’ alternatives such as rice, noodles or Eastern style meals to varying degrees of success But in this study, our group has decided that we would be predominantly focused on the youth group of customers aged 18-24 These are the type of people who normally would be pretty busy with their study or jobs so they would probably not have enough time or put enough effort just to cook for themselves, thus they would quickly develop a habit of eating out at a restaurant because they don’t have to anything that requires effort to get their food So, in short, our target population of this research is 18-24 yearold Vietnamese citizens regardless of their gender and occupation The sample The data we collected is from a survey we conducted during November to December 2022 We were given permission from McDonald’s to allow us to use its database as well as ask them to send an email with our questionnaire inside to customers aged 18 to 24 We also took the required actions to ensure the person taking part of this survey remained anonymous The questionnaire is sent twice and is followed up with phone calls to respondents who had not responded during the initial messaging 5.3 Data collection method The research data was collected from an Internet survey with a sample of 400 people aged 18 to 24 who dined in McDonald’s at least once throughout the survey period The questionnaire design for the study would include parts Demographic questions asking the respondents to give the general information of their genders, ages, occupations and marital status (4 questions) Questions about the location of the McDonald’s restaurants that the respondents usually visited or ordered from (2 questions) Questions about the relationship between customers and McDonald’s restaurant, more specifically the level of satisfaction, recommendation, frequency and the likelihood of them coming back (4 questions) The last part and also the most important of the survey is the questions about the different variables that we mentioned in this study that have a noticeable effect on the fast food purchase behaviors in McDonald’s (3 questions each for every variables) Numbers Variables Price Convenience Items Sources The price of McDonald’s fast Chang et al food is perfectly fine (1994) I only purchase fast food when there are discounts on the dish that I want Price of McDonald’s fast food is competitive compared to other fast food chains or other restaurant I have visited I am satisfied with McDonald’s restaurant’s opening hours Anderson, Beth, et al (2011) I have no problem about the service speed of the McDonald’s restaurant that I have visited I tend to consume McDonald’s because of I can obtain it near my workplace Restaurant environment I like coming to a McDonald’s Ryu and Jang restaurant because of its (2007) atmosphere I like the facility aesthetics of the McDonald’s that I have come to I think the restaurant is clean Brand awareness I like the promotions published by McDonald’s on social media Influencers promoting the brand make me want to purchase McDonald’s food The brand “McDonald’s” is familiar to people around me Karam, A A., & Saydam S, (2015) Health conscious I would come to McDonald’s more if there were more healthy options on the menu I not want to eat at McDonald’s as its consumption causes an imbalance in weight I not want to eat fast food because it has a lot of preservatives Omit et al (2018) Research Report Structure Title Table of contents Abstract Background & Objectives Research methods Results Conclusions Introduction Research background Problem statement Research objectives Aim of the study Research question Literature review Literature review Proposed theoretical framework Hypothesis Research Methods Research design Sampling methods Instrumentation Data analysis & Interpretation Result & Discussion Timeframe Timeline 10/11/2022 - Activity Review literature and develop 10/1/2023 instrumentation 11/1/2023 13/03/2023 Finalize the instrumentation Collect primary data 14/03/2023 15/04/2023 Processed collected data 16/04/2023 17/05/2023 Writing report References Salem, Mohammed Z "Effects of perfume packaging on Basque female consumers purchase decision in Spain." 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Women & health 49.2-3: 164-180 Anderson, Beth, et al "Peer reviewed: Fast-food consumption and obesity among Michigan adults." Preventing chronic disease 8.4 (2011) Kim, Hee-Woong, Yunjie Xu, and Sumeet Gupta "Which is more important in Internet shopping, perceived price or trust?" Electronic commerce research and applications 11.3 (2012): 241-252 Huang, Ying-Fang, and Hoang Sa Dang "An empirical analysis on purchase intention on coffee beverage in Taiwan." European Journal of Business and Management 6.36 (2014): 182-196 Karam, Asaad Ali, and Serdar Saydam "An analysis study of improving brand awareness and its impact on consumer behaviour via media in North Cyprus (A case study of fast food restaurants)." International Journal of Business and Social Science 6.1 (2015): 66-80 Isganaitis, Elvira, and Robert H Lustig "Fast food, central nervous system insulin resistance, and obesity." 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