“CUSTOMER SERVICE OF JOLLIBEE, MCDO, AND CHOWKING BASIS FOR

MANAGEMENT DEVELOPMENT OF 24/7 FASTFOOD CHAIN IN TORIL

POBLACION”

In Partial Fulfillment of the Requirements

For the Practical Research II

Submitted by:

COMPAS, SHALMAHANIE O.

VALDEZ, RENZ HERICHO O.

LEE, HANNAH ALJEAH D.

OLBINAR, JEMAR JR. C.

SUNICO, JOANILOU T.

SAMUEL, DIOSSEL A.

SARAEL, RAJA

SEPTEMBER 2019

PROBLEM AND ITS SETTING

In our ever-increasingly globalised world, the fast food

industry represents billions of dollars yearly and is still

growing, specifically in Asia (Data Monitor, 2005). AC Nielsen

Online Consumer Survey (ACNielsen, 2005) reveals that Asians are

the world’s greatest fast food fans. A total of 30 percent of

Asia Pacific consumers eat at take-away restaurants at least

once a week and 35 percent of the population of Asia Pacific

eats at take-away restaurants three times a week and some even

more than once a day.

As a consequence, studies relating to fast food, specifically of

service quality, have also grown over the decades. However, most

studies have focused on the western countries (Bougoure and Neu,

2010) compared to the limited literature on service quality in

eastern countries. This is problematic because consumers’

perception of service quality can vary across countries due to

cultural and environmental differences (Qin, Prybutok and Zhao,

2010).

Among all the fast food studies undertaken, most of the studies

have aimed at investigating the relationship between service

quality and customer satisfaction in FFRs (Brady et al., 2001;

Gilbert et al., 2004; Kara et al., 1995; Lee and Ulgado, 1997).

Other potential antecedents of customer satisfaction namely food

quality and perceived value have not received attention (Qin and

Prybutok, 2009). In addition, many researchers believe that food

quality greatly influences customer satisfaction in the context

of FFRs (Kivela et al., 1999; Johns and Howard, 1998) and

perceived value is seen as a determinant of customer

satisfaction because of its ability to retain.

Philippines has one of the most developed fast food restaurant

segments in Asia. Nearly all Filipinos (99 percent) are fast

food patrons, and the Philippines are third in the world in

terms of the frequency of fast food restaurant visits. Business

Asia (2000), estimated that there are a total of 2000 fast food

restaurant outlets in the Philippines, and contributing to 2

percent of total food service outlets in the country, Nielsen

(2005),

Here in Phillipines, people love to eat in different fast

food chains because of it's affordability. Jollibee is the

country's largest and well known fast food chain here in

Philippines. Some fast food chains that are people love going to

are McDo, and Chowking. Lots of customers prefer to eat in fast

food chain because of the service and food they provide.

 Customer satisfaction measures the product and service

effectiveness of the business on meeting the expectations of the

customers. This is an indicator to measure customer loyalty,

identify unhappy customers, reduce churn and increase revenue.

Knowing how the business satisfies the customers help the

business to know what to do in order to improve the product or

the service. Customer's satisfaction has an important role

within the business in terms of gaining or earning profit from

the customers. If the customer was satisfy with the product or

service, revenue will increase knowing that the customer will

keep on coming back and spend more money for the product or

services offered by the business.

Recently, customers have been progressively aware about

quality of service (Soriano, 2002). Service quality is often

viewed from two perspectives that are from the customer’s

cognitive evaluation of the service provided (Taylor and Baker,

1994) and a multidimensional construct created by an evaluation

of attribute performance (Parasuraman et al., 1988). Service

quality is usually defined as the customer’s judgment of the

overall excellence or superiority of the service (Zeithaml,

1988). Thus, it is the customer’s subjective evaluation formed

by comparingexpectations and perceived performance (Bolton and

Drew, 1991; Parasuraman et al., 1985,1988).

Service Quality and satisfaction are very often inter-related.

As said earlier, the term “customer satisfaction” became

popularized in the 1980’s with the total quality movement.

Customer Driven Excellence and Customer Focused Results remain

important aspects of the Baldrige National Quality Programme.

However, it is a fact that there exists a gap between these two

concepts. According to Cronin and Taylor (1992), this

distinction is important to both managers and researchers alike,

since service providers need to know whether their objective

should be to have consumers which are satisfied with their

performance or to offer the reinforce customer service

excellence.
Objective of the study

The main objective of this study is to extends the applicability

of customer experience quality scale in fast food chain

(Jollibee, McDo, and Chowking0, which makes marketers to think

about the different touch points during customer interaction

with the fast food chain.

Therefore, the present study examined the direct influence

of customer experience quality dimensions on customer

satisfaction, brand loyalty and word-of-mouth, and also measures

indirect influence of customer satisfaction on word-of-mouth

through brand loyalty.

Hypothesis:

H1: Peace of mind positively influences customer

satisfaction.
 H2: Moments-of-truth positively influence customer

satisfaction.

H3: Outcome focus positively influences customer

satisfaction.

H4: Product experience positively influences customer

satisfaction.

H5: Customer satisfaction positively influences brand

loyalty.

H6: Customer satisfaction positively influences

word-of-mouth.

H7: Brand loyalty positively influences word-of-mouth.

Significance of the study

The study is beneficial to the students taking up the

strand Accountancy Business and Management (ABM) and other

business management courses since it covers the topics customer

servive and customer satisfaction . It would give the students

additional information on how do fast food chains serve

customers in order to achieve customer satisfaction. Also, this

would be beneficial to the Research Division of the Marketing

Team of selected fast food chains since this study shows the
reflection of their service based on the findings of the study.

The data that will be gathered might be an additional basis for

them in order to innovate ways on how they would satisfy

customers.

CONCEPTUAL FRAMEWORK
Figure 1. ​Klaus and Maklan’s (2012) scale of customer experience

quality (EXQ)

In the present study, we examine the Klaus and Maklan’s (2012)

scale of customer experience quality (EXQ) (Peace-of-mind,

moments-of-truth, outcome focus and word-of-mouth) to validate

our hypothesis in food industry.

THEORITICAL BACKROUND

Service quality measures received global attention (Zeithaml,

1988), but recent service quality researches has shown criticism

due to its large focus on transaction specific assessment (Voss

et al., 2008). Customer experience incorporates service quality

definition along with the objective to refine static measurement

of service quality (Berry et al., 2002). Customer experience is

an observation of a journey that precedes service encounters,

passes through service deliver and continues even after delivery

of services (Berry et al., 2002). Before service delivery or

purchase, customer experiences direct or indirect communications

made by a firm (Brakus et al., 2009) and receives word-of-mouth

from other customers (Kwortnik& Ross 2007). Customer experiences

the context of approaching the organization, like the journey to

a retailer (Gilmore & Pine, 2002) or the contact through website

medium (Sautter et al., 2004). Physical environment contacts

also offer experiences to the customer (Pullman & Gross 2004).

After delivery of services, customer consumes the

product/service that constitutes consumption experiences

(Woodruff, 1997). Studies argued the conceptual difference

between customer experience and service quality (Klaus &Maklan,

2007), and developed new measurement for it (Klaus &Maklan,

2012).

According to Klaus and Maklan (2013), measure of experience

incorporates feelings and emotions that bring its scope broader

than that of service quality measures. Literature provides

better understanding of customer experience through some

definitions. As, Meyer and Schwager (2007) define customer

experience as “customers’ internal and subjective response to

any direct or indirect contact with the company across multiple

touch points”. Gentile et al. (2007, p. 397) stated that

“customer experience originates from a set of interactions

between a customer and a product, a company, or part of its

organization, which provoke a reaction. This experience is

strictly personal and implies the customer’s involvement at

different levels (rational, emotional, sensorial, physical, and

spiritual)”. Klaus and Maklan (2013) viewed customer experience

as “the customer’s cognitive and affective assessment of all

direct and indirect encounters with the firm relating to their

purchasing behaviour”. In the words of Lemke et al. (2011),

customer experience is conceptualized as “the customer’s

subjective response to the holistic direct and indirect

encounter with the firm, and customer experience quality as its

perceived excellence or superiority”.

LEGEND: SA- STRONGLY AGREE

A- AGREE
M- MODERATE
SD- STRONGLY DISAGREE
D- DISAGREE
PEACE OF MIND SA A M SD D
1. ​I am confident in their expertise; they know
what they are doing.
2. ​The whole process was so easy; they took care
of everything
3. ​It is not just about the now; this company is
looking after me.
4.​ I am already a customer; they know me and take
good care of me, so why should I go elsewhere?
5.​ I have dealt with them before, so getting a
mortgage was really easy.
6.​ I choose them because they give independent
advice.
OUTCOME FOCUS
1. ​Yes, there are other companies, but I would
rather stay with mine; it makes the process much
easier.
2.​ It was more important to get the mortgage than
to shop around for a better rate
3.​ I stay with my company because I am not
confident about using an alternative provider.
4.​ It was important that the advisor had a
mortgage too; he/she knew what I was going
through.
MOMENTS OF TRUTH
1.It was important that the company was flexible
in dealing with me and looking out for my needs.
2. It is important that they keep me up to date
and inform me about new options.
3. I want to deal with a safe company, because a
mortgage is a lot of money
4. It is important that the people I am dealing
with are good people; they listen, are polite and
make me feel comfortable
5.The way they deal(t) with me when things go
(went) wrong will decide if I stay with them.
PRODUCT EXPERIENCE
1. I want to choose between different options to
make certain I get the best offer
2. It is important to me to receive mortgage
offers from different companies.
3. Unless I can compare different options, I will
not know which one is the best for me
4. It would be great if I could deal with one
designated contact through the entire process of
getting my mortgage.

CUSTOMER SATISFACTION SA A M SD D
My feelings towards hotel are very positive
I feel good about coming to hotel for the
offerings I am looking for
Overall I am satisfied with hotel and the service
they provide.
I feel satisfied that hotel produce the best
results that can be achieved for me
The extent to which hotel has produced the best
possible outcome for me is satisfying
BRAND LOYALTY

I will be loyal to “ Brand ” in the future.

I will keep on being a customer of “Brand” for the
next 5 years
I will recommend “ Brand ” to others
WORD-OF-MOUTH
Mentioned to others that you do business with fast
food restaurant.
Made sure that others knew that you do business
with fast food reataurant.
Spoke positively about hotel employee(s) to
others.
Recommended hotel to family members.
Spoke positively of hotel to others.
Recommended hotel to acquaintances.
Recommended hotel to close personal friends.
REFERENCE

(Brady et al., 2001; Gilbert et al., 2004; Kara et al., 1995;

Lee and Ulgado, 1997).

(Qin and Prybutok, 2009)

(Kivela et al., 1999; Johns and Howard, 1998)

Klaus and Maklan’s (2012) scale of customer experience quality

(EXQ)

(Data Monitor, 2005).

(ACNielsen, 2005)

(Bougoure and Neu, 2010)

(Qin, Prybutok and Zhao, 2010)