THE PROBLEM AND ITS BACKGROUND
Electronic marketing refers to the form of product promotion and customer relation conducted through the use of electronic media. It highly flexible and allows companies to create targeted campaigns with broad reach. This form of marketing is very cost effective because it makes possible for companies to reach lots of consumers at a fraction of the cost for other types of advertising.
Internet marketing in particular is rich ground for marketers. This form of electronic marketing can be generic, as in the case of banner ads placed on websites. It can also be remarkably specific, tailored to internet use habits with the goal; of reaching out to specific consumers. Marketers can serve different kinds of ads, customized email marketing campaigns and use other techniques to reach potential consumer on the internet.
In nineteenth century, electronic buying and selling started by telegraph. With the advent and mass acceptance of the telephone, radio, TV, and then cables, electronic media have become the dominant marketing force. New permutations of these four electronic methods as well as the microcomputer explosion-continue to create many new forms of electronic media.
In addition to media like television, radio and the internet, electronic marketers can use media such as phones for conveying advertisements. Talking ads mounted on bus stations and other public installations are another example. Electronic kiosks in location like malls can be used for marketing purposes. Marketers can create video brochures, internet ads in front of featured films, and find a number of other ways to reach an audience via electronic means.
Marketing of products using electronic technology is used to determine the consumer market. Electronic marketing is the type of micromarketing in which the retail tracks consumer purchases using bar code scanner technology such as that found in many supermarkets. When making purchases, consumers fill out the computer readable cards with demographic and other pertinent information. This information is logged into the database by the retailer who then uses it for: mailings of special promotions; direct mailing coupon for product in which the consumer has demonstrated interests; other special sales and promotions of products already purchased by the consumer; or product that are complementary to those the consumer has already purchased.
Customer satisfaction can help your business to achieve a sustainable competitive advantage. It is about understand the way a customer feels after purchasing a product or service and, in particular, whether or not that product or service met the customer’s expectations. Customers primarily form their expectations through past purchasing experiences, word-of-mouth from family, friends and colleagues and information delivered through marketing activities, such as advertising or public relations.
Monitoring customer satisfactions is important because we are much more likely to tell our friends and family about a bad experience with a product or service to thousands of people. And there’s always the threat of negative publicity generated from current affairs programs or other media outlets. Satisfaction surveys are an important method for collecting information about how your customers think and feel about your brand, product or service. (http://anthillonline.com/marketing-customer-satisfaction)
The researchers make this study to identify and describe factors of customer satisfaction for Kentucky Fried Chicken. Comparatively analyze customer satisfaction for the electronic marketing of Kentucky Fried Chicken.
Statement of the Problem
The study assessed the electronic marketing of Kentucky Fried Chicken towards customer satisfaction.
Specifically, the study sought answers the following:
What is the profile of the respondents in terms of:
educational attainment; and
What is the effect of applied electronic marketing of KFC in terms of:
Is there a significant relationship on the responses of the respondents when group according to profile variables?
Based on the findings, what suggestions can be proposed to electronic marketing of Kentucky Fried Chicken towards customer satisfaction?
Background of the Study
Together with Pizza Hut and Taco Bell, Kentucky Fried Chicken belong to Yum! Brands Inc. Yum! Company is the world’s largest restaurant company in terms of system units. It is the world’s largest fried chicken chain restaurant, measured by sales. More than 11,000 Yum restaurant having opened in about 80 countries. One of these is located in first and second floor Llana Bldg. P. Burgos Street Brgy.5 Batangas City. It started on May 3, 2011. Colonel Harland Sanders founded it in 1952 by selling fried chicken. His kindly grandpa face also became Kentucky Fried Chicken Logo. Today Kentucky Fried Chicken mainly sell fried chicken, hamburgers, french fries, soft drinks and other western styles fast food.
By this time, the Kentucky Fried Chicken Company uses manual system in forming those people in their particular product they were looking for. This problem delays the customer in their transaction. In the harmony with this problem, we need to improve and develop a solution that will help their company. In the certain institution, we often hear the term electronic marketing and for individuals involved in this kind of advertising, they already had a mindset of what is taking place in the said system.
The researchers believe that our study should outcome in a better advertising system. The researchers also hope that the proposed system will be effective and useful to Kentucky Fried Chicken Company in pursuing the success of their institution.
The conceptual framework includes input process and output and is manifested in Figure 1. The input contains the demographic profiles of the respondent’s determined included gender, age, civil status, educational attainment and family income. The status of Kentucky Fried Chicken was determined in terms of place, people, promotion, price and products. The process contains documentary analysis, questionnaire and interview. The output would be the electronic marketing of Kentucky Fried Chicken focusing on customer satisfaction.
Profile of the Respondents:
Electronic Marketing of KFC in terms of:
Electronic Marketing of Kentucky Fried Chicken Towards Customer Satisfaction
Conceptual Framework of Electronic Marketing of Kentucky Fried Chicken
Hypothesis of the Study
There is no significant relationship between the responses of the respondents and when group according to profile variables.
Scope and Limitation
The study determined the Electronic marketing of Kentucky Fried chicken Focusing on Customer’s Satisfaction towards development of marketing management. The study focuses on the status of Kentucky Fried Chicken in application of electronic in terms of place, people, promotion, price and product.
The study will be limited to Kentucky Fried Chicken Company’s management and employees in Batangas City.
Significance of the Study
This study will be beneficial to the following:
For the top management, this will help to have an easy way of promoting a desired products and services using electronic marketing practices. It will introduce to the top management the useful utilization of electronic marketing to develop their proper altitude in manipulating sophisticated machines and help them become aware of its use to the modern world.
For the managers, this will help improve their operation since it will reduce the time consuming process. This will also provide a way for a change in their manual transaction system to a new one that will make a system fast and accurate.
For the employees, this will serve a guide to move upward with a new idea or partial changes to improve their work in KFC Company. They can also create a new strategy to help company achieve their goal.
For private business sectors, this will help them realize that the knowledge gained in this research can be a great help to the different business infrastructure and they will be equipped to solve the problems on it.
For the future marketing managers, this will assist them to understand the impact of using electronic marketing practices in developing their marketing management
For the academe, this will greatly help them since the study will be a useful reference material for students, teachers and other researchers who are undertaking similar or related study.
For the future researchers, this will serve as a learning experience for them and an opportunity to apply the knowledge and skills they acquired from the Marketing Management program. It will also develop their skills in data gathering and analysis.
Definition of Terms
Customer. This refers to the people who purchase goods and service from another. (Webster dictionary, 2007). In this study, it refers to individuals who are eating in fast food chains.
Customer service. This refers to the series of act. Design to enhance the level of satisfaction that is the feeling that a product or service has met the customer expectation (http://en.wikipidia.org/wiki/Customer_service). In this study, it refers to how the fast food chain satisfies needs and expectation of customers by using the electronic media.
Customer Satisfaction. It refers to the feeling that a product has met or exceeded that customers expectation (Lamb,Hair and Daniel 2011). In this study, the term refers to the customer perception on the service provided to them by the electronic marketing.
Electronic marketing. It refers to marketing of products using electronic technology to determine the consumer market. This information is logged into a database by the retailer who then uses it for: mailings of special promotions; direct mailing coupons for products in which the consumer has demonstrated interest; other special sales promotions of products already purchased by the consumer; or products that are complementary to those the consumer has already purchased. (http://www.allbusiness.com/glossaries/electronic-marketing/4966288-1.html). In this study, this refers to the marketing technique used by Kentucky Fried Chicken to their customers.
Promotion. This refers to act of communicating the benefits and value of your product to consumer. It then involves persuading general consumers to become customers of the business by using methods such as advertising, direct marketing, personal selling and sales promotion (http://toolkit.smallbiz.nsw.gov.au/part/3/12/56). In this study, these are the efforts put up by the business so that customers would avail of the goods offered by the electronic marketing.
REVIEW OF LITERATURE
This chapter presents conceptual literature and studies that have a bearing in the present study, the researchers gathered these relevant details from the book, unpublished theses and other printed materials.
Despite many attempts to measure and explain consumer satisfaction, there is still does not appear to be consensus regarding its definition or determinants. Consumer satisfaction is typically defined as being the results of an evaluative process that contrasts repurchase expectations with perceptions of performance during and after the consumption has been experience. That is also the view taken by this paper, although it is recognized that such definition may not fully explicate the satisfaction construct (Anderson, 2000).
Several alternative explanations of consumer satisfaction have been advanced, but the expectations-disconfirmations paradigm has been the most popular. This accounts predicts that expectations and disconfirmation are the two variables that the best consumer satisfaction. Disconfirmation can be defined as the difference between expected and perceived product performance, and expectations of future performance. The inclusions of expectations suggest that the product fulfilling high expectations are predicted to generate greater consumer satisfaction than products that meet low expectations. Some researchers employ perceived performance as an additional explanatory of satisfaction. (http://www.amazon.com/s/ref=nb_sb_noss/183-3802948-1974520?url=search-alias%3Daps&field-keywords=customer+satisfaction)
After purchase, the consumer can compare expectations with perceptions of product performance, a process that confirms or disconfirms the earlier expectations. Disconfirmation can be used in two ways as it: First is provides information for future purchases; and second is serves as a major determinant of overall satisfaction with the purchased product. In the next purchased cycle the consumer has experience with the previously chosen product, and if disconfirmation that may alter expectations for the second purchase cycle. Any other new data can also be used to revise expectations. And eventually another purchase will be made. However, this second purchase and all future purchases will also be influenced by the intention to repurchase created by switching arising from earlier purchases. These two factors provide a strong rationale for repeat purchase behavior, and could be employed to asses a consumer’s likelihood of repurchasing of a given product, his or her intention to repurchase. (Applegate, 2000)
Consumers buy products or services to satisfy their needs and wants. Consumers make decision first before buying products or rendering services. Each consumer considered purchase decision process when it comes to buying or repurchasing products and services. In purchasing decision, the initial step is by recognizing problem, to be able to perceive the differences between person’s ideal and actual situations which is big enough to trigger the decision. (Bacos, 2001)
In general almost all company managers utilize computers or a high technology machines to improve manpower efficiency and at the same time produce quality products. These systems answer the customer’s needs and expectations on the product being processed or sold. Damodaran illustrates the functions of the managers at the tactical strategic planning levels in a computer-based system. These include (1) transaction processing which involves in wages payment, preparation of invoices, calculating the raw material , (2) operational control which consists of determining the need for overtime working, credit control and determining reorder levels, (3) managerial control involved in training and recruitment of staff, determining for pricing structure and deciding on a change supplier and (4) planning which includes manpower planning forecasting market changes and predicting long-term availability of raw materials.
On Computer Application System penetrates the business world since more powerful computers are available at substantially lower cost than the products they replace. A larger department store, computers often appeared first in accounting department. Therefore, it was not surprising that accounting and finance people retained control not only of the money related functions of their company but also of the computer itself (Calem, 2000).
Advertising positions are available in three kinds of organizations: advertisers, media companies, and agencies. Advertisers include manufacturers, retail stores, service firms and many other types of companies. Often they have and advertising and placing their own ads. Advertising careers are also possible with the media, television, radio stations, magazines and newspaper. Finally, advertising agencies often job opportunities through their use of account management research, media and creative services. Starting position with advertiser and advertising agencies are often as assistants to employees with several years of experience. An assistant copywriter facilitates the development of the message, or copy, in an advertisement. Assistant art director participants in the design or visual components or advertisement entry level media positions involve buying the media that will copy the ads or selling on radio or television, page space in print media (Eaton, 2000).
In business, managers at all the levels make decision. Each level has its own needs for specific types of information. Managers are responsible for planning, staffing, organizing, defining and controlling. The success of every company lies on good management coupled with efficient employees. Good managers play vital roles in the acquisition of prestige and name in the business area (Gurbaxabi,V. and S. Whang, 2001).
In purchasing decision the initial step is by recognizing problem, to be able to perceive the differences between person’s ideal and actual situations which is big enough to trigger the decision. After recognizing the problem, the consumers begin to search information. This is especially needed with past experience or knowledge is insufficient. The risk of making a wrong purchase of decision is high and the cost of gathering information is low. Consumer evaluates alternatives before buying products or rendering services. Having examined the alternatives, consumer makes purchase decision that is often impulsive not following directly from alternatives evaluation (Goodman, 2001).
Satisfaction has been linked to firm profitability and repurchasing probability. Demonstrating such a relationship is valuable, for explaining why consumer behavior and consumer psychology. This aspect is being considered by so many researchers to analyze and interpret data given the respondents’ profile. Demographic variable are easier to measure than most other variables. Even the market segments are defined their demographic characteristics must know order to assess the size of the target market and to reach it efficiently. The single most important demographic trend is the changing age structure of the populations will results in different growth rates for used groups over the decade, and those differences will strongly affect marketers targeting strategies (Jarvenpaa, S and P.A. Todd, 2001).
Computer is a major tool in the products and use of information, the use of computer is important to the operations and management of the business firm, government agencies and the rest of the society due to the rapidly growing use of micro-computer. People must learn to use such tool properly in order to harness the information resource in today’s dynamic information. Thus information system which transform data information for users represent a major part of cost doing business, a major factor in employee morale and customer satisfaction, a major source of information needed for effective decision-making by the manager of an organization and vital dynamics and expanding career opportunity for millions of men and women. Therefore, opportunities can be increased for employment and advancement by becoming knowledgeable users of computers and information technology. Business firms and organization need people who can help them manage their resources (Kalakota, R. and A.B. Whinston, 2001).
They often engaged the visitors in an interactive experience involving games, contest and quizzes with electronic coupon and other gifts as prices. Procter and Gamble has separate websites for dozens of its leading brands, including Vidal Sassoon hair products (www.vidalsassoon.com). Scope mouthwash (www.getclose.com) and pampers diaper (www.papers.com). Promotional sites are effective in generating interest in and trial a company’s products. General Motors reports that 80 percent of the people visiting a Saturn lead come from its websites.
Promotional websites also can be used to support a company’s traditional marketing channel and build customers relationships. This is the objective of the Clinique Division of Estee’s Lauder.Inc., which markets cosmetics though departments stores. Clinique reports that 80 percents of current customers who visits its website (www.clinique.com).
There six several products and services categories that dominate online consumer buying today and for the foreseeable future. One category consists of items for which product information is an important part of the purchase decision, but repurchases trial is not necessarily critical. Items such as computer, computer accessories and consumer electronic sold by Dell.com fall into this category. So do books which accounts for the sales growth of Amazon.com and Barnes and Noble (www.barnesandnoble.com). Both sellers publish short reviews of new books that visitors to their websites can read before making a purchase decision.
A second category includes items for which audio and video demonstration is important. This category consists of CD’s, videos, and DVDs sold by Columbia House.com. The third category contains items that can be delivered digitally, including reservations and confirmations, financial brokerage services and electronic ticketing. Popular websites for these items include Travelocity.com, Schwab.com and Ticketmaster.com.
As a group, online consumer are more likely to be women that man in tend to be better educated, younger, and more affluent than the general U.S. population, which makes the man attractive market. Even though online shopping and buying is growing in popularity, a small percentage of online consumers is still account for a disproportionate share of online retail sales in the United States. It is estimated that 20 percent of online consumer who spent $1,000 plus per year online account for 87 percent of total consumers online sales. Also, women tend to purchase more goods and services online than man.
Numerous marketing research firms studied the lifestyles and shopping hobbits of online consumers. A recurrent insight is that online consumers are diverse and represent different kinds of people seeking different kinds of online experiences. Promotional websites have a very different purpose than transactional sites. They advertise and promote a company’s products and services and provide information on how items can be purchased (Malone, 2000).
The literature on service quality has followed a similar disconfirmation approach with Parasuraman, Zeithami, and Berry’s original “gaps” model. However, there is a debate in marketing regarding the differences and similarities between the consumer satisfaction and service quality constructs. The debate will not be joined here except to state that desire any conceptual differences between the two way that they are typically measured is quite comparable. This is because measures of service quality usually represent customer perceptions rather than objective indicators of quality, and how service quality and customer satisfaction therefore tends to be highly correlated.
There have been many refinements and extensions to the gas models, but the essential ingredients have hardly changed. For example, despite the discussion in the marketing literature regarding what forms of expectations are most appropriate for measuring consumer satisfaction and service quality, there is a comparison between some form of expectations and perceived performance.
According to Oliver, satisfaction is defined as the consequence of comparing expectations with perceptions of performance, and therefore appears the result from a dynamic process. However, expectations, perceptions of performance, and difference between the two typically measured simultaneously despite evolving at different points in the time. Such an approach may be appropriated because some researchers believe that consumer satisfaction is limited to individual transactions. On the other hand, satisfaction is affected by prior experiences than conditions expectations (http://techweb.cmp.com/iw/583/csc.htm).
According to Mcdonough (DATE), movie media reaches up to 75 million viewers each month, and theater advertising recalls are four times higher than ads placed on television. Cinema advertising reaches targeted consumers with innovative messages that engage moviegoers in a highly effective manner. It will help customer choose the right cinema ad strategy for their campaign whether it's Static Slides, Digital Ads or Rolling Stock. Effective cinema advertising can also include one-to-one promotions, partnering with events or sponsorships and can be conducted at the venues themselves, with marketing teams promoting a variety of products to consumers as they are waiting in line or approaching the theater. (http://billboardconnection.com/products/cinema-advertising)
Promotions is different form of activities for attracting and getting attention of customer to purchase the product or service through personal selling, public relations, sales promotions and advertising. According to Khatibi, promotion of product or service helps in the best way to builds relationship with customers, because everyone is looking for the best suitable deal for them. Website is the advanced ways use for the promotion, to aware the consumer and to satisfy them with offering vast array of function and features. Before making choice of product offering, potential customer has an opportunity through website to make a detailed comparison Khatibi (2007).
Customer satisfaction can change over the period of time, it is a dynamic process. Customer satisfaction is reflected when he recognized the quality. While using the web, the (user interface) web is a service and customer is user. They surf the internet retrieve the information and share the information when interact over the internet with others. The quality of internet service plays a greater role than the service quality providing to the customers in other sectors, like hotels and hospital. He describe in his study that in the new millennium providing customers a unique experience is the major key to capture the market and wining their hearts and mind. Satisfaction or dissatisfaction is the consequences of customer’s consumption or experiences of services or expectation.
Branding is one of the factors which has been identified repeatedly customer choice in the selected product. Branding has impact on purchase decision of consumers. The more a brand is succeeded in their earlier period the more value for its brand can be generated. Company formal introduction today is branding. Brand is a set of guidelines or a promise in customer’s mind. Brand is a product which adds other dimensions some way to differentiate it from other products. Brand helps the customer the product and how he describes the company to others, opportunities can avail by branding. Brand is described by the American marketing association as a “name, sign, symbol or combination of them to identify and to differentiate the goods and service, or sellers from their competitors” (Skindaras, 2007).
In what maybe the only example of empirical research investigating satisfaction change within a purchase cycle, Mazurky and Geva (2000) find that the effect of satisfaction on intentions to repurchase decreases over time, which “emphasizes the need for considering timing of measurement as a relevant factor in predicting purchase and choice behavior.” In contrast, several studies have evaluated satisfaction across purchased periods.
According to Dr. Jordan Sparks (DATE), he has done most of the programming. He has done the many thousands of hours of programming in his spare time over the last few years. But since the software is now beginning popular, he is beginning to cut back on dentistry to devote more of his time in programming. His goal on his project was to make his software the world standard software to make it easy to access and shared data. With the use of his dental directory, the patients can now easily know the prescribed medicines for their toothache.
Hussnain (DATE) said the Wi-Fi service has enabled KFC Australia to promote targeted offers to customers while they browse the Internet. "We sometimes promote coupons using the free Wi-Fi home page. Sales uplift for those coupons has been higher than stores that don't have Wi-Fi," he said. When customers access free Wi-Fi and complete a verification process for a specific device, they get sent an email confirming that they can use the service for an extended period of time. Because the Wi-Fi platform links to a CRM system, Hussnain said marketing messages can be personalized.
According to Crell Brown (DATE), an interior kiosk with a touch screen in Vienna Austria is a computer terminal that provides information access via electronic methods. Interactive kiosks sometimes resemble telephone booths, but can also be used while sitting on a bench or chair: Interactive kiosks are typically place in high foot traffic settings such as hotel, lobbies and airport. Integration of technology allows kiosks to perform a wide range of functions.
For example, kiosks may enable user to enter a public utility bill account number in order to perform an online transactions, or collect cash in exchange for merchandise. Customized components such as coin hoppers, bill acceptors, card readers and thermal printers enable kiosks to meet the owners specialized needs (Booch, 2001).
According to J2 Retail System (DATE), a leading manufacturer of the state of the touch screen technology used within the retail, hospitality, finance, healthcare and industrial marks and was one of the leaders of the retail IT revolution when it was founded 20 years ago.
Similarity Moster.com and carrier builders.com are online databases of employments ads, candidate, resumes, and other career related information. Some of the information resources include career guidance, a cover letter library, occupational profiles, resumes templates, and networking services. Employers may contact students directly when the candidate’s qualifications meet their specific job requirements. Much still needs to be learned about online purchase behavior. Although research has documented the most frequently purchased products and services bought online, marketers also need to know why these items are popular in the digital marketplace. (http://www.monster.builders.com.ph)
Many companies are aiming for high satisfaction because customers who are justified still find it easy to switch when a better offer comes along. Those who are emotionally bond with the brand, not just rational preference. The result is high customer loyalty. Xerox senior management, believes that a very satisfied or delighted customer is worth 10x as much to the company as a satisfied customer. A very satisfied customer is likely to stay with Xerox many more years and buy more than a satisfied customer will.
From past buying experience, friends and associates advice, and the marketers and competitors’ information and promises, if marketers raise expectations too high, the buyer is likely to be disappointed. For example, Holiday Inn ran a campaign a few years ago called “No Surprise “. Yet hotel guests still encountered a host of problem, and holiday Inn had to withdraw the campaign. However, if the company sets expectations too low, it won’t attract enough buyers. (National Association of Realtors, “Realtors Information Network and Corporation, http://www.realtor.com/.)
Lim (2010) Customer’s ultimate satisfaction may have significant affect of atmosphere. Physical surroundings are helpful to create image in the mind of customer and to influence their behavior. Physical atmosphere of the restaurants have the significant impacts on the customers satisfaction. Lightning, furnishing, sent, music and different other atmospheric factors among them influence on customer satisfaction. There are millions of products in this world having different prices. Pricing a product is difficult thing to do. Prices are set according to the value of the product. Price from marketing mix state that one of the most flexible element that changed quickly. The most important factor indicated for customer satisfaction is price, because most of the customers estimate the value of the product or obtained service through price. Lim, for the customer it is not necessary that a better quality can be a better taste, if customer like the taste of food he/she will be willing to pay for the it. Based on previous researches, in customer satisfaction and taste, there is a significant correlation found between them. Researchers found that good taste of food has positive influence on customer’s satisfaction and it also increase the customer’s retention rate which is also depends upon customer’s satisfaction. Therefore, restaurants focus is on taste of the food and services that has influence on customer’s satisfaction (http://www.facultyjournal.com/, 2012).
The computer should preserve more in their endeavor to obtain minor details of customer’s demand through customer feedback system. The researchers found this study relevant to their present work since both the studies are concerned with customer satisfaction and efficient customer relations. However, the present study does not conduct a customer feedback system to rate customer satisfaction. Satisfaction is a person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance and expectations. If the performance falls short of expectations, the customers dissatisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted (http://www.yahoo.com/Business and Economy).
According to Ricky Deez (DATE) just about every successful marketer acknowledges that in order to produce visitors to discover you, you have to deliver respectable advertising. Retail sales outlets assign large amounts of money into sales fliers, radio advertising's, TV commercial messages, and regular billboards. A few even have got free items that they give away with their logo or company slogan or name mentioned with them. Those things generally do not function as well when you're attempting to gain clients online through your website, and nearly every online business can not afford to promote on television when they would like to capture and gain visitors and people to their site. As an alternative, they have to rely on promoting with the Internet.
As with anything, determining the correct space to promote equals the direction to be sure your effort is thriving. If you're starting to sell household items, advertising where for the most part young teens hang out isn't really going to do your business much good. You have to localize your publicizing wherever the correct audience will examine it. Possibly advertising on a internet site that has real estate listings could make up a more effective selection (http://www.rickydeez.com/marketing/promoting-on-the-internet/).