Employing multidimensional scaling to figure out the position of fast food brand in Can Tho

ABSTRACT:

As the trend of globalization, fast food is becoming popular in Can Tho city. However, there are not many prior studies identified perceptual consumers towards fast food stores. This study was conducted by using Multidimensional scaling(MDS) approach to describe consumers perceive among four typical fast food brands such as KFC, Pizza Hut, Jollibee and Lotteria. For this purpose, primary data was collected at these fast food stores. Eight attributes related customers choice and preferences in case of fast food were implied to achieve the objective of the study. The questionnaire was conducted by five point scale. A result of conceptual map indicates the positioning of each fast food brand based on the consumers point of view.

Key words: Perceptual map, brand preference, fast food, MDS.

1. Introduction

The fast food industry is now more global and continuous to increase in popularity (SMEDA, 2006). The fact supports that understanding of consumer perceptions, preferences and relevant multi-attribute criteria which used for customers decision is extremely vital for both marketers and researchers as well in fast food section. Although a numerous research focused on consumer perception, some remarkable papers were studied towards fast food industry, particularly the studies of Jones et al. (2002), Aziz and Bukari (2009) and Qin and Prybutok (2009). The purpose of these was able to know consumers priorities when they chose a fast food outlet in a comparison to others. Gilbert et al. in his research in 2004 claimed that it is worth to attend to the satisfaction of customers both domestic and abroad market while transcending cultural differences in globalization. Consumer satisfaction is measured in both perspectives and preferences, in turn, satisfaction become an element to make customers decision. Goyal and Singh (2007) measured customer satisfaction of various countries show that cultural differences lead to discriminate decisions. Therefore, what make they choose a brand in a lot of brands in the market is still need to clarify in each culture such as Viet Nam and each sub-culture like Can Tho city – known as one of new market of fast food industry. More specifically, in different market, each brand stands in divergent position depending on how customers satisfy and which attribute that brand is positioned. It is the reason that researching perceptual map to describe where each fast food brand stands in Can Tho market is necessary. Therefore the objectives of this study are to compare the brands in the perspective of customers and clarify what positioning attributes of each brand.

Can Tho city obtains now four reputational brands of fast food services including Pizza Hut, Kentucky Fried Chicken, Jollibee and Lotteria. Kentucky Fried Chicken (KFC) that the first fast food store at Can Tho city was established in 2006 was known as one of the famous brand in the world. Since KFC appeared, Can Thos consumers have experienced a new kind of food. As a fast-food worldwide brand reputation and their experience of Vietnam market, KFC occupied steady and monopoly position in Can Tho market until 2009. However, KFC's monopoly position lost when Jollibee joined at the end of that year. It can be said that the Jollibees appearance made fast food market became more intense competition because Jollibees target customers are students - with average incomes. The competition was not to stop at two brands as KFC and Jollibee. Following that trend, Lotteria, a fast food brand from Korea, set up their stores and serves the same dishes with KFC and Jollibee as hamburgers, fried chicken, fries, ice cream, etc. In 2012, Pizza Hut also joined Can Tho market to take the market share with a special product - pizza - an advantage competition in comparison to others.

Based on four fast food brands with many outlets in Can Tho market, this study will construct the perceptual map of consumers preference for fast food brands on eight specific attributes. The findings are expected to have relevance to both fast food franchisors and franchisees by helping them to prepare consumer oriented marketing strategies.

2. Literature reviews

In the 1980s, the concept of positioning was publicized and changed the way products and services are marketed in which focusing on the consumers mind instead of concentrating on products attributes. In the mind of consumers, a brand name represents what offered from products or services in their experience. In other word, consumers mind can define a brand as high quality and value or a contrary. In fast food industry, it can also match with reasonable prices or continence meals. In short, the attribute of different fast food brands such as meal variety, cozy atmosphere evoke their positioning in the market. Drawing a picture to show what customers keep in their mind for fast food brands based on these featured attributes is the effective way to have a comprehensive evaluation about the market.

According to Ehsan (2012), customers relied on price, variety of food, promotional deals and timely service as the significant factors for their decision making. This study also looked for differences among cities. The result was the same to a study of Liu et al. (2007) in which the different perceptions could be observed between the consumers in the different cities of a country. It can be known that most previous researchers focusing on customers behavior rather than how customers evoke each brand in their mind. Accompanying this trend, a remarkable research from FTA in 2012 was manipulated in Viet Nam. This study was obvious that food safety, store atmosphere, good state and fast services are consumers motivation towards fast food choices. The study also indicated that consumers are more favorite, regular consuming and pay more their loyalty on KFC than other remaining brands. However, the limitation of this research was not to expose what factors make Vietnamese customers prefer KFC than others.

An exploratory research in India of Goyal and Singh (2007) used six properties to evaluate two fast food outlets of McDonald's and Nirula's - a local brand name in India. The purpose of this study was to identify what factors effecting on fast food brands selection. The finding emphasized that food quality and store environment are key attributes. Furthermore, critical components like food quality and variety for the selection or even rejection of vendors were proved in the research of Srivastava (2015). However, customers also prefer a quick-service delivery (Islam and Ullah, 2010). Surprisingly, the finding of Aziz and Bukharis research (2009) informed that gentlemen were seduced by the cooperation of staff, taste of food and price whereas that was personal preference of brand and quality of food for ladies. The research of Zopiatis (2007) disclosed that the reliability and responsiveness were appreciated as the most crucial elements of fast food consuming expectations. These factors can be belong to reputational brand ones. Also in 2007, Goyal and Singh studied to identify pivotal attributes for eating store choices. That attributes include variety of food, food taste and quality, ambience and hygiene, service speed, price and location.

3. Methodology and data collection

3.1. Methodology

MDS offers a visual representation of the objects in a common space where the brand of products or services are displayed as points on a map (Hair et al., 2010). MDS will describe brands in the relationship to attributes which depend on the respondents perceptions. MDS typically uses a data based on the similarities or preference ratings of the brands. In this paper, the measure is used to obtain respondents preference data to indicate which brand is preferable for each attribute. The MDS result used eight service attributes based on previous research to interpret the perceptual map (table 1). A perceptual map must meet three characteristics: (1) the distance between objects shown the same position of them as perceived by customers. The smaller gap demonstrates the more similarity. (2) A vector on the map indicates the magnitude and direction of the Euclid space of attributes. When projecting from a position of object on the vector attributes, we would be seen the distance from that point to the origin projector. This gap shows what the object clearly performs. The longer distance from the origin, the stronger that object is indicated about that attribute. (3) The axis (direction) of the map is a set of vectors that can elicit important factor describes.

                                                     Table 1. Positioning Attributes

3.2. Data collection

Empirical data was collected 150 consumers in fast food stores at Can Tho city at the last months of 2014. In fact, we obtained data through an accessible non-probability sampling approach that answerers were willing to join. Also, respondents had to be used the services and clearly know all four fast food brands including KFC, Jollibee, Pizza Hut and Lotteria as a stipulation of collecting data. With a view to identifying the major attributes for choosing eating outlets, eight attributes of fast food outlets (table 1) were studied using a five-point Likert-type scale (1: strongly disagree; 5: strongly agree).

There are 52 percent of female clients in totally. Most customers of fast food outlets at Can Tho City is young people, focusing on the ages 16 to 25, in which the group aged 16 to 20 accounted to 29 percent, and the group of 21 - 25 year old are at 30.7 percent. As a result of the majority of young respondents, the collection represents up to 74 percent are single customers. In spite of that, up to 18.7 percent are consumers who are married and have children. This index is remarkable and explains for the situation that many customers consume fast food due to their children needs.

4. Empirical results and discussions

4.1. Analysis and Result

As Figure 1 indicates a two-dimensional perceptual map which identifies the relative positions of four brands and key differentiating attributes. It is important to notice that the four fast food brands in Can Tho market is KFC, Jollibee, Lotteria, Pizza Hut is located very close to each other on the right side, near the center of the chart. This shows that there is a close resemblance between positioning stores in the competition for market share in Can Tho.

However each store, represented each brand, also features more prominently than the opponents remaining in the attitude of consumers. Pizza Hut, KFC and Lotteria are positioned in the lower-right quadrant that occupied by PEP and VOF vector. That means these brands are close competition by two key components such as personal preferences and the variety of food. Jollibee seems to stand out these brands since it owns the upper-right ones of the map in which the attribute of REB- reputation brand is appeared.

4.2. Findings and Discussions

For more details of each brand position in case of fast food industry, we interpret each brand with its positioning in consumers perception. For Jollibee stores, important features that customers consider when choosing Jollibee are the reasonable price, good taste of food, well-known brand and personal preferences. Due to identifying target customers with average income such as students and pupils, the price Jollibees meals are quite lower than other brands. As the result, customers pay more attention to Jollibee for the reasonable price. Besides, Jollibee is derived from Philippines - also a Southeast Asian flavor - it easily captures the flavor of the Vietnamese, and quickly to adjust the suitable taste for Vietnamese customers. With the construction of the image is a cute and friendly bee, Jollibee brand quickly positions in consumers heart and creates customers personal preference. However, considering the distance from the reference point on the vector to the origin, the most striking feature that customers choose Jollibee is a famous brand. Although all of fast food brands presented at Can Thos market are well known brand, Jollibee with a unique identity and bee-friendly image which attached to brand names is the highlights that other brands do not have.

                                               Figure 1. Conceptual Map of fast food brands

REB: Reputation Brand

VOF: Variety of food

TOF: Taste of food

EOS: Environment of store

PRI: Price

PRD: Promotional deals

CTS: Cooperation of staff and timely services

PEP: Personal Preferences

In contract to Jollibee, KFC has an opposite position in the conceptual map. KFC stands for the style of service and attractive promotions regularly. This intimates that customers believe KFC always serves them by the best of staff and service. They can also get more attractive promotional deals from KFC stores. In addition, extensive menu, beautiful and comfortable space are also help KFC to attract customers. Although these two factors are also important to customers evaluation when choosing Lotteria stores, the distance calculated from the reference point of origin on the vector is the largest. It is worth noting that KFC is rated higher than Lotteria on both two attributes. Besides, since having attendance at Can Thos market during10 years, KFC created a lot of impressions and consumers reliance which builds the personal preferences of customers to its brand. In particular, the largest distance from the point on the vector projection of variety menu factor to the origin ones reveals that it is the most characteristic features of KFC in the perception of consumers.

In case of Lotteria, customers evaluate the features of Lotteria is a personal preference for the brand, store environment and the variety of food. By directly competitive strategy with the leading position of KFC in Can Tho city, Lotteria is known by consumers with the quite similar attribute to KFC. In addition, the distance from the projection point on personal preference vector to the origin proves that the most important characteristic when customers choose Lotteria is personal preferences. This is one of the factors that can help Lotteria create customers loyalty.

Features that customers care about Pizza Hut are personal preference, famous brands and an extensive menu. By the strategy to adapt the taste of Vietnamese, excluding to the scrumptious pizza, Pizza Hut also added to their menu many Vietnamese dishes like rice flavor, noodles, soup, etc. That is the reason why extensive menu element is appreciated for Pizza Hut in mind of consumers. In addition, a brand Pizza Hut is quite new in Can Thos market but this brand is very famous all over the world, so the majority of customers choose that fast food outlet due to they are attracted by the well-known brand or customers want to enjoy the view of the world famous pizza taste. In the above mentioned features, basing on the distance on the vector of attributes, personal preferences is shown the most striking feature of the Pizza Hut. It can be seen that although penetrating too late in comparison to other fast food brand, Pizza Hut still offers customers confidence and interesting to shop around.

5. Conclusion

Perceptual map offers a general picture about brand positioning in Can Tho market about fast food industry. That shows the fundamental references for marketers to adjust brand positioning strategy. Jollibee shows a quite different position to others because it pursues the reputation of brand while three other brands stand close together focusing on personal preferences. Separately, important factors affecting consumers choose KFC is the serve of staff, attractive promotions, space, extensive menu and personal preference. Based on the identification, KFC stores need to address these factors to set appropriate strategies, to maintain its leading position in the fast food market at Can Tho city. Besides, consumers think Jollibee owned features such as tasty food, reasonable prices, well-known brand and personal preferences. Discriminating to leader KFC, Jollibee is appreciated remarkable with the price and the taste of product elements. Lotteria is preferred since the significant attributes such as personal preferences for the brand, beauty space, and an extensive menu. These factors are similar to KFC and Pizza Hut as well. To create a separated point in the customer's mind, Lotteria need to refresh themselves in other characteristics. In turn of Pizza Hut, consumers also see its brand through three main attributes like personal preference, famous brands and extensive menu.

REFERENCES:

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      XÁC ĐỊNH THỊ PHẦN CỦA CÁC HÃNG THỨC ĂN NHANH TRÊN ĐỊA BÀN     TP. CẦN THƠ THÔNG QUA PHƯƠNG PHÁP PHÂN TÍCH ĐO LƯỜNG ĐA HƯỚNG

ThS. HUỲNH NHỰT PHƯƠNG

Khoa Kinh tế, Trường Đại học Cần Thơ

TÓM TẮT:

Trong bối cảnh toàn cầu hóa, thức ăn nhanh đang ngày càng trở nên quen thuộc hơn với người tiêu dùng tại TP. Cần Thơ. Tuy nhiên, hiện vẫn chưa có nhiều nghiên cứu đánh giá cảm nhận của người tiêu dùng đối với các thương hiệu thức ăn nhanh. Nghiên cứu này được tiến hành dựa trên phương pháp phân tích đo lường đa hướng (MDS) nhằm xác định cảm nhận của người tiêu dùng đối với 04 thương hiệu thức ăn nhanh phổ biến, gồm: KFC, Pizza Hut, Jollibee và Lotteria. Dữ liệu nghiên cứu được thu thập từ các cửa hàng thuộc các thương hiệu thức ăn nhanh nêu trên. Tám thuộc tính liên quan đến sự lựa chọn sản phẩm của người tiêu dùng trong trường hợp lựa chọn các sản phẩm thức ăn nhanh cũng đã được bao hàm trong nghiên cứu. Các bảng khảo sát ý kiến của nghiên cứu này được thực hiện theo thang điểm năm. Kết quả khảo sát cho thấy bản đồ khái niệm của mỗi người tiêu dùng đối với từng thương hiệu thức ăn nhanh. 

Từ khóa: Bản đồ nhận thức, sự ưa thích thương hiệu, thức ăn nhanh, đo lường đa hướng (MDS).