Chapter 2

Review of Related Literature

This chapter present the related literature and studies conducted locally and

internationally which are relevant to the problem review to provide depth and meaning to

the present study. It discusses significant literature and studies from different books and

researches, which the researchers had gathered.

Related Literature

Consumer behaviour is a process that involves the personal choice of purchasing,

using or abandoning the products, services, ideas, or experiences to meet the needs and

wants itself (Solomon, 1998). Consumers are defined as any individual; of all ages

participate in the process. According to Solomon (1998), buying behaviour of consumers

is the behaviour that occurs when a consumer decides to buy a product. It is an internal

thought process (a process often called buying process) and it starts when consumers

recognize a need or desire to buy something, the study of factors before purchase and

include the following actions when the consumer purchase experience consider before

deciding whether to use products services again in the future (Destiny, Cheuk Man LUI,

2012).

Marketing Mix Theory of McCarthy (1964, In Goi, 2009) which was often

referred to as 4 P’s – Product, Promotion, Place and Price. McCarthy’s model can be

utilized in both long-term strategies and short-term tactics. The marketing mix can be

altered depending on the type or nature of the business and differ from business to

business This theory of McCarthy was further expanded by several theorists adding to its
several elements of the marketing mix: Booms and Bitners’ (1980) 7 P’s which added

people, physical evidence and process; Kotlers’ (1986), which included political power

and public opinion formation to the Ps; 12 P’s and Baumgartner’s (1991) 15 P’s which

was composed of product (or service), price, promotion, place, people, politics, public

relations, probe, partition, priorities, position, profit, plan, performance, and positive

implementation.

Related Studies

The basic needs of individuals will continue to grow in terms of total outlets and a

number of product concepts. Changing food habits among consumers, stimulated by the

massive media advertising and the growing number of working classes, which include

women, both single and married, young and old, have created more demand for food

services away from home at affordable price. Thus, fast food chains have expanded to

cater to the needs of these working classes and their families (M. Flores, 2014).

Based on the study of Asomoah and Chovancova, economists believe that

consumers behave rationally and given the chance they will chose the best alternative

with their level of income and preference. This paper examines the consumer behavior

theory and its relevance in the marketing practices of fast food firms. The aim is to bring

out the interrelationship between the consumer behavior theory as explained by Alfred

Marshall and the marketing aspects of fast food chains. The paper provides a

comprehensive analysis of some conceptual and theoretical tools in consumer behavior

that contributes immensely to the development and implementation of viable marketing

strategies in the fast food industry. Hence, the marketing aspects of fast food firms are

analyzed within the framework of the concept of consumer behavior. the paper concludes

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that although the consumer behavior theory proposes the rationality of consumers and

their desire to optimize utility with their scarce income, given the monopolistic nature of

the fast food industry all over the world, marketing variables like advertising and other

sale promotions (marketing communication) that are adopted by firms tend to affect the

rational proposition of the consumer behavior theory. These variables enable the firm to

maximize their revenue, increase their competitiveness and consequently increase their

share of the market.

In the research of Alimentaria (2014), the effect of gender on fast-food

consumption has been studied to determine fast-food consumption. Also, the relationship

between fast-food consumption and overweight, and whether the students have trust for

hygiene applications of fast food producing and service enterprises has been studied.

According to the results of the survey, a significant relationship between gender and fast-

food choice type, portion size, consumption frequency, trust for complying hygiene rules,

the need of being informed about food security, being affected by commercials, food

poisoning and the reaction to it, and not consuming fast-food has been found. Many

Turkish adolescents are becoming increasingly more westernized and have greater

convenience when they eat out. Fast-food type nutrition which is popular among children

and teenagers contains deficient or excess nutrients. High schools and universities are

appropriate establishments for students to gain correct nutritional habits.

From marketing perspective, location for the fast food service to the potential

customers is most important according to Maritz Marketing Research. The recent study

showed the location has to be convenient. The analysis said that adults under the age of

65 prefer convenient location for their fast food choice. Customers look forward for a

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superior quality. As a matter of fact, pricing also becomes a very significant factor along

with quality. Fast food chains are now highlighting on the value meals. This value meal is

a combined package of different items within a very suitable pricing range, which can be

afforded by mass customers (Bartleby, 2018).

According to Rai (2013), there are several national and international brands which

people recognized and have strong perception in their minds. These perceptions are

pinched in their mind because of their culture, life styles and surroundings. Also

advertisements have very important role in shaping the consumer behavior.

Advertisements are the source of motivation which forces them to buy a particular

product. Advertisements are also a source of building trust. Consumer is induced

significantly if he is looking for the quality and prices of the products. Purchase attitude

can also be build up by product evaluation and brand recognition.

With the purpose of a business to sustain in highly competitive market, customer

satisfaction is one of the elements that need to be taken into consideration. Khan et al.

(2013) defined customer satisfaction as the feeling of pleasure or disappointment, when

the products or services met their expectations levels, therefore, their level of satisfaction

also higher, if not, they will feel disappointed. Sabir, Ghaafoor, Hafeez, Akhtar, and

Rahman (2014) mentioned that customer satisfaction has a very significant effect in

business field today because it will reflect the businesses’ profits. In addition, Lee, Ruby

and Rajdeep (2004) stated that customer satisfaction may represent the firm’s

performance and their long-term commitment.

Another marketing strategy practiced by leading fast food restaurants is attracting

and retaining right customers and developing long term relationships by offering loyalty

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and reward programmers to retain the old customers. Frequency card programs are a

popular type of loyalty programs for fast food restaurants. These programs help in

increasing the revisit incidence of the customers by rewarding their repeat behaviour in

conjugation to their enhanced loyalty towards the organization (S. S. Chib, 2012).

Product differentiation is the process of distinguishing a product or service from

others, to make it more attractive to a particular target market. This involves

differentiating it from competitors' products as well as a firm's own products. The

objective of differentiation is to develop a position that potential customers see as unique.

Differentiation primarily affects performance through reducing directness of competition:

As the product becomes more different, categorization becomes more difficult and hence

draws fewer comparisons with its competition. A successful product differentiation

strategy will move your product from competing based primarily on price to competing

on non-price factors (Stuyck, 2013).

According to Owomoyela, Oyeniy and Ola (2013), marketing strategy is a

strategy that organizations use to provide their target customer with quality products at

affordable price, offer effective promotional strategy and interact with their distribution

outlets. Hence, creating demand for their products and increasing performance.

Marketing mix is a business tool that is used by organizations to achieve a competitive

advantage. Marketing mix refers to 4P’s that organizations use in their marketing process

to achieve organizational goals and meet customers’ needs and wants. It is a set of

tactical marketing tools that includes product, price, place and promotion.

According to Mattson and Helmersson (2007), pointed out that food consumption

patterns are highly related to culture and becomes difficult to change if it was formed in

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early years. In addition young generation have become ‘addicted’ to sugar by the

consumption of sweet drinks that are often served in fast food. The findings of the study,

indicate that high‐school students in Sweden are well aware of the good and bad

attributes of fast food such as fat and sugar. Also clear differences in attitude were found

between male and female students where male students concentrate on fast eating and

satiety while

female students view fast food in a broad food chain context.

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