Aiming at understanding consumers´ behavior in fast food restaurants: a food values approach

AIMING AT UNDERSTANDING CONSUMERS´ BEHAVIOR IN FAST FOOD RESTAURANTS: A FOOD VALUES APPROACH Izquierdo-Yusta, Alicia; Martínez-Ruiz, María Pilar; Pelegrín-Borodón, Jorge; Jiménez-Zarco, Ana Isabel Universidad de Burgos; Universidad de Castilla la Mancha; Universidad de la Rioja; Universitat Oberta de Catalunya RESUMEN A partir de la clasificación de los valores alimenticios propuesta pertinente por Lusk y Briggeman (2009), este trabajo buscaba comprender el comportamiento de los consumidores en los restaurantes de comida rápida. Con este objetivo, se analiza una muestra de 400 consumidores de dos cadenas de comida rápida líderes en España. El análisis empírico de estos datos nos permitió observar no sólo la presencia de tres grupos de consumidores distintos de acuerdo con sus evaluaciones de los valores alimentarios, sino también varias diferencias entre estos grupos con respecto a hábitos diversos, así como resultados de satisfacción, confianza y lealtad. A partir de estos resultados, se proponen diversas recomendaciones estratégicas para mejorar el diseño y desarrollo de estrategias diferenciadas en la industria. Palabras clave: Valores alimenticios, cluster, frecuencia, satisfacción, lealtad. ABSTRACT Beginning with the classification of food values proposed in the relevant literature by Lusk and Briggeman (2009), this paper aimed at understanding consumers´ behaviour at fast-food restaurants. With this research goal in mind, a sample of 400 consumers was gathered in two different leading fast-food chains operating in Spain. The empirical analysis of these data enabled us to observe not only the presence of three different consumers’ clusters in accordance with their food values ‘assessments, but also several differences between these groups with regard to diverse habits as well as satisfaction, trust and loyalty outcomes. From these results, several managerial recommendations have been proposed in order to improve the design and development of differentiated strategies in the industry. Keywords: Food values, cluster, frequency, satisfaction, loyalty. XXIX CONGRESO DE MARKETING AEMARK 2017 821 de 1617 ÍNDICE TRABAJOS PONENCIAS MM 1. Introduction Consumers have today growing concerns regarding the food they eat. These concerns range a wide variety of topics, from the dangers of food poisoning and other food safety issues (such as chemical additives, high fat content and related chronic diseases), for instance, to environmental and regulatory issues (Worsley and Lea, 2008). Derived from the acknowledgement of how diverse segments of consumers appear to evaluate differently these concerns, several research lines in the areas of consumer behaviour and food marketing have emerged. Trienekens et al. (2005) suggested that the changing lifestyles of Western(ised) consumers led to greater demand for certain convenience healthy food, such as pre-cut fruit and pre-packaged salads. Moreover, there is growing household concern regarding the purchase of healthy, nutritious foods, and numerous studies have highlighted how people are increasingly interested in purchasing food that has not been directly linked to obesity and excessive weight gain (Bharath and Foster, 2009; Chou et al., 2012; Korzen et al., 2011; Rozin, 2005). Relatedly, extensive research has been done on sustainable food choices (Boert et al., 2007) and organic food consumption, trying to understand the underlying motivations of the consumers who buy these products, the personal value dimensions embedded in their motivations, and their attitudes and intentions towards such products. Some attempts have been made to observe how food attributes, values and aspects related to sustainable production might influence consumers’ food-related decision-making processes. As a matter of this fact, Lusk (2011) examined household scanner data and found that demand for certain organic food products (milk and eggs) depended significantly on respondents’ food values: people who were relatively more concerned about the environment and tradition exhibited a higher demand for organic milk and eggs than for non-organic milk and eggs, suggesting a belief that organic offerings are more traditional and environmentally friendly. In addition, an increased household interest in purchasing products that comply with basic ethical and sustainable development standards is currently observed (Bilharz and Schmitt, 2011; Chou et al., 2012; French and Rogers, 2010; Mankato et al., 2007; and McMahon et al., 2010); that is to say, many consumers around the world are worried about issues such as the environmental impact of food production or social aspects, such as salary or working conditions. However, there are also other consumer groups, whose primary concern continues to be cost either cost –that is, they look for the cheapest food possible (Abdullah, 2011; Iglesias and Guillen, 2004; Kara, Kaynak and Kucukemiroglu, 1995; Park, 2004; and Tse, 2001) –, either social issues, such as the gradually increasing number of twoincome families, leading to changes in social habits – families have less time to cook and eat at home – together with other changes, such as fewer children or higher household income (as both spouses are working). Moreover, people today feel the need to socialise – whether with colleagues, friends or neighbours – more than they used to for business or social purposes, so that they are less inclined to cook at home (Islam and Ullah, 2010) and eat more meals outside (Kara et al., 1995). These tendencies represent several challenges for operators in the restaurant industry, which evidences the need to design and develop strategies tailored to specific market segments. On the supply side, the restaurant sector is highly atomised, with companies catering to very specific consumer segments (vegetarian, organic, etc.) or adapting their XXIX CONGRESO DE MARKETING AEMARK 2017 822 de 1617 ÍNDICE TRABAJOS offer to segments with specific needs (e.g. gluten intolerance). Producers and manufacturers likewise offer products aimed at more specific segments to better meet consumers’ needs. On the demand side, consumers are increasingly seeking products that not only meet their immediate needs for nutrition, but are also environmentally friendly and socially responsible, and whose consumption evokes sensations and provides experiences. Hence, it is therefore necessary for restaurants to develop strategies to differentiate themselves from their competitors and gain thorough knowledge of their customers. Within the restaurant industry, is worth to mention a global phenomenon such as the rapid expansion of fast food restaurants in major cities all over the world, accommodating the changing consumers habits of urban populations (Schroeder and McEachern, 2005; Xu, 2014; Tong and Wong, 2016). This phenomenon evidences the need to assess the relevance of the previously mentioned tendencies in this type of restaurants in particular, especially taking into account how some relationships between fast-food consumption and declining food prices and weight gain and/or obesity have been previously outlined (c.f. Currie et al., 2010). Based on these ideas, the goal of this paper is to understand the current consumers´ behaviour of fast-food restaurants. With this intention in mind, we use the classification of food values presented by Lusk and Briggeman (2009), which relates to many of the previously mentioned tendencies, to classify consumers of fast-food restaurants into different clusters, and to investigate significant differences between those clusters with regard to diverse habits as well as diverse non-financial key results –in particular, satisfaction, trust and loyalty. The results of this study are used to propose a series of recommendations for the management of fast food restaurants. 2. Literature Review 2.1. Food values and the fast food context As previously pointed out, along the past few decades several modifications in the traditional buying and consumption patterns and behaviors have been observed when purchasing and consuming food products. For fast-food business managers it is essential to understand which are the aspects that guide consumer preferences for certain foods – this will enable to emphasize those aspects in their marketing strategies and to get a better competitive positioning. With this regard, it is interesting to highlight the work of Lusk and Briggeman (2009), who went beyond the food attributes traditionally considered to offer a classification of food values as a set of beliefs regarding the relative importance of the meta-attributes, consequences, and desired end states associated with purchasing and consuming food. The values were proposed upon a deep literature review on food preferences and human values, and outline the convenience to take care of customers not as simple consumers but as complex and multi-dimensional human beings (Martínez-Ruiz and Gómez-Cantó, 2009). These values face most of the aspects and tendencies previously depicted, such as the growing concern for nutrition (nutrition, safety), the natural environment (environmental impact), social justice (fairness, origin, tradition, naturalness) and whose consumption evokes feelings and provides experiences (appearance, taste, convenience). Hence, it seems advisable for managers of fast food restaurants to assess those values among their customers in order to develop a better knowledge to develop XXIX CONGRESO DE MARKETING AEMARK 2017 823 de 1617 ÍNDICE TRABAJOS differentiated strategies and achieve a better competitive positioning. Moreover, in today’s ever-changing and highly competitive market environment, food-service operators must prioritise understanding the market to retain and sustain a strategic advantage (Abdullah et al., 2011). This is especially relevant taking into account how the restaurant industry has certain characteristics that clearly differentiate it from other sectors, in terms of the service it provides. On the one hand, its products must be good quality; on the other, the act of consuming them must offer customers ‘sensations’ and ‘an experience’, amongst many other things. It is flexible, somewhat traditionalist, and dependent on context to offer a high degree of customisation. It thus provides an ultimately short-lived, fashionable product in a highly simulated environment. At the same time, it is the industry to see the most blatant operationalisation of service, the ‘McDonaldisation’ that Ritzer (1996) called the other face of postmodern consumer society. In short, it is an industry in which companies must differentiate to compete. Several works in the relevant literature offer interesting related findings. For example, Kara et al. (1995) looked at consumers’ perceptions of and preferences for fast food restaurants in the US and Canada. According to their study, consumers between the ages of 12 and 24 look for variety, price, delivery service, and location in America and for price and novelties in Canada. Amongst customers age 46 and older, Americans prioritised cleanliness, nutritional value, quality and taste when choosing a fast food restaurant, whilst Canadians gave preference to nutritional value and seating capacity. In the middle group of customers between the ages of 25 and 45, Americans valued speed and friendly wait staff, whereas Canadians looked for speed, quality and service. Also, Brown et al. (2000) emphasised the need for nutritional awareness in their exploration of fast-food preferences amongst teenagers. Becker-Suttle et al. (1994) examined age (seniors vs non-seniors) and the benefits sought by customers of fullservice restaurants, whilst Shank and Nahhas (1994) compared the dining preferences and behaviours of mature and younger customers of a family restaurant. Williams et al. (1997) took a slightly different approach and attempted to determine both the physiological and psychological challenges faced by older restaurant customers. Islam and Ullah (2010) found that, for fast-food consumers in Bangladesh, especially university students, brand reputation was the most important factor when choosing an establishment, followed by proximity and accessibility, similarity in taste, cost, value for money, discounts and taste. Trailing these factors were cleanliness and hygiene, salesmanship and décor, fat and cholesterol, and self-service. Bowman et al. (2004) reported that consumption of fast food amongst children in the US seems to have an adverse effect on dietary quality in ways that could plausibly increase the risk of obesity. However, that study suggested that a more detailed experimental analysis would help to determine the effect of perceptual attributes on consumer demand as well. Specific qualities of taste, consumer self-esteem, restaurant reputation, and other non-measurables may be relevant to a comprehensive treatment of an attribute-based fast-food model. Comparing survey data of college students in Spain and the US, Bryant and Dundes (2008) offered insight into how perceptions about fast food are culture- and genderspecific. More American college males (61%) prioritised value (amount of food provided for the money paid) than did any other group of respondents (35%), and relatively few American college males (29%) cited nutritional status as important (versus 60% of other college respondents). The convenience of fast food is more XXIX CONGRESO DE MARKETING AEMARK 2017 824 de 1617 ÍNDICE TRABAJOS important to Americans (69%) than Spaniards (48%), whilst more Spanish college students (49%) than Americans (18%) objected to the proliferation of fast-food establishments in their own country. 2.2. The relevance of the customer-business relationship Anderson and Fornell (2000) assume businesses exist and compete to create satisfied customers. Investors are attracted to companies that excel at satisfying their customers. It is not possible to increase business prosperity without increasing customer satisfaction. It is not the amount of goods and services a company can produce that leads to its success so much as how well it satisfies its customers, convincing them to return and keep the business growing. Providing a variety of fresh, healthy food remains an important criterion for satisfying customers (Qin et al., 2010). This also applies for the fast food industry, since the success of any food and beverage establishment lies in its ability to satisfy customers by providing a dining experience that comprises both tangible and intangible elements and is able to meet or exceed their expectations (Parasuraman et al., 1988). In the past, if the food – the tangible aspect of the experience – was good, then customer satisfaction was ensured. As people have become more gastronomically sophisticated, however, they have likewise become more demanding in terms of their dining expectations. Newer generations are shifting away from the traditional towards the new, the innovative and the exciting, all of which are qualities that are primarily determined by the intangible aspects of the dining experience. Whilst many traditionalists might believe that innovation can only be achieved through tangible elements, such as the introduction of a new food item, intangible aspects have the power to evoke deep, long-term emotions and memories (Zopiatis and Pribic, 2007). In this regard, Ryu et al. (2010) divided fast-food customers into those who patronise fast food restaurants for hedonic reasons and those who do so for utilitarian ones. The findings indicated that both hedonic and utilitarian values significantly influenced customer satisfaction and behavioural intentions and that customer satisfaction played a significant role in changing behavioural intentions. Thus, restaurateurs should acknowledge and seek to improve customers’ perceptions of both hedonic and utilitarian values to ensure satisfaction and, in so doing, encourage positive behaviour and emotions, such as returning to the restaurant or talking positively about their dining experience there. Thus, managing customer satisfaction levels is a critical strategy for fast food restaurants to retain current customers and attract new business via word of mouth (Qin and Prybutok, 2008). Trust built between consumers and a company significantly contributes to positive outcomes for the company with regard to factors such as customer loyalty, customer retention, product choices, purchase intention, willingness to act, and overall market performance (Erdem and Swait, 2004). It is thus more critical than ever for companies to be considered trustworthy by consumers, and companies should focus on what it takes to build such trust with their customers. Despite extensive research on brand trust, most of which has focused more on the results of trust (e.g., loyalty and repeat business) than its predictors, the question of what builds trust in consumers remains largely unanswered. Parasuraman et al. (1985) introduced the notion of trust as a critical factor for successful relationships in the service sector, suggesting that clients should be able to trust service providers, feel secure with how they are treated, and trust that any information they might provide will be kept confidential. All these considerations are XXIX CONGRESO DE MARKETING AEMARK 2017 825 de 1617 ÍNDICE TRABAJOS crucial for companies trying to gain customer loyalty and expand their stable customer base. Many researchers have provided empirical evidence for a positive relationship between customer satisfaction and behavioural intentions, such as the intention to return to an establishment or engage in word of mouth. The obvious reason to satisfy customers is to acquire such repeat business and positive word-of-mouth, thereby improving the chances of achieving profitability (Ryu et al., 2010). Anderson and Sullivan (1993) found that a high level of customer satisfaction decreases the perceived benefits of switching service providers, which, in turn, increases customers’ repurchasing intentions and loyalty. Jacoby and Chestnut (1978) found that loyalty is a behavioural result of consumers’ preferences for one brand over a selection of similar brands over a given period of time, which influences the evaluative process involved in decision-making. As a result, they suggested analysing loyalty from a twofold perspective: behavioural and attitudinal. From a behavioural perspective, Dick and Basu (1994) define loyalty as the relationship between the ‘relative attitude’ towards an entity (brand/store/vendor) and ‘patronage behaviour’. According to De Ruyter et al. (1998), early studies of customer loyalty focused on behavioural aspects; however, more recently they have been conducted using an attitudinal approach. Oliver (1997) defined loyalty as a deeply held commitment to consistent repeat purchases of a preferred product or service in future, despite situational influence and marketing efforts. According to Kumar and Shah (2004), customer loyalty is an important construct for all marketers in defining the means to develop relationships with customers and, hence, increase business and customer retention. Several studies have determined that high customer satisfaction and service quality result in higher customer loyalty and willingness to recommend a firm to another person (Bolton and Drew, 1991; Boulding et al., 1993; Rust and Oliver, 1994). In contrast, Kendrick (1998) proposed a definition of loyalty including the variables of purchase frequency and amount spent per order or visit. In their study of the relationship between customer loyalty and customer satisfaction, Bowen & Chen (2001) indicated that there is a positive correlation between loyal customers and profitability. Therefore, for customers to become loyal to and profitable for a company, they must be highly satisfied. Such high levels of satisfaction moreover have the added benefit of reducing the amount of money that needs to be invested in attracting new customers, as highly satisfied customers spread positive word of mouth and recommend the service to others (Lovelock and Wright, 2002). In the fast-food industry, several authors have studied the impact of perceived service quality on customer satisfaction and loyalty (Qin and Prybutok, 2009; Qin et al., 2010). Factors such as food taste, establishment cleanliness, service speed, and staff friendliness seem to play a major role. Two additional values that are gaining importance are price and nutritional value (Kara et al., 1995). Convenient operating hours are another significant factor for consumers. In the context of food products, trust is closely linked to other basic marketing concepts, such as safety and perceived risk, as well as nutrition and health. Trust is also a potentially important factor in consumers’ purchasing behaviour with regard to food products (Bredahl, 2001). Consumers sometimes lose their trust in the food production chain and fear that their health could be seriously compromised. It has thus been necessary to restore trust in the safety of food (Grunert, 2001). XXIX CONGRESO DE MARKETING AEMARK 2017 826 de 1617 ÍNDICE TRABAJOS 3. Methodology 3.1. Data collection A structured questionnaire was developed to collect the data. The questionnaire contained all the necessary information for the research. 400 personal surveys were conducted at the exit of different McDonalds and Telepizza establishments located in the city of Burgos. The restaurants were visited at different times of day and over the course of several months, so as to ensure that the data would not be seasonal. TABLE 1: TECHNICAL DETAILS 3.2. Analysis and results Most marketers understand that mass marketing is an ineffective approach to meeting diverse customer needs. Grouping customers with similar requirements and buying behaviour into segments is one way to address this diversity. In so doing, marketing managers are likely to reach their target market(s) far more effectively and efficiently and, thus, to better satisfy their customers’ needs. The practical importance of segmentation is reflected in the growing number of segmentation studies. A sequential process was followed (as shown in the flow diagram in Figure 1) to meet the objectives of determining, analysing and characterising consumer groupings at FAST FOOD RESTAURANTs. First, user groups were formed through hierarchical cluster analysis and K-measures, considering the variables that Lusk and Briggeman (2009) identified as important when establishing consumer preferences for a given type of food. In a second phase, these clusters were validated by means of ANOVA and discriminant analysis. Finally, in a third phase, through parametric and non-parametric tests, the existence of inter-group differences in the variables related to satisfaction, trust, loyalty and consumer habits was confirmed. Universe Consumers of fast-food restaurants (over the age of 18) Sample unit Consumer of fast-food restaurants (over the age of 18) Data collection method Personal questionnaire Sample error 4.92% Level of trust 95%; Z = 2; P = Q = 0.50 Sample procedure Probabilistic method Number of surveys 400 valid surveys XXIX CONGRESO DE MARKETING AEMARK 2017 827 de 1617 ÍNDICE TRABAJOS Figure 1 Statistical methodology 3.3. 1. Cluster determination In the hierarchical cluster analysis, squared Euclidean distance was used as the measure of proximity and the Ward method as the classification algorithm. A dendrogram was thus obtained, making it possible to determine the number of clusters and the centroids so as subsequently to apply the K-means method. A total of three clusters were obtained, which were validated both by ANOVA and discriminant analysis. The ANOVA results reflect the existence of inequality of means between the groups (see Table 2). The multiple discriminant analysis revealed the existence of differences in means between the groups of users in the test or equality of means (see Table 3). In addition, low Wilks’ Lambda values were observed. The chi-square associated with the Wilks’ Lambda means that the hypothesis of differences in the scores given to the independent variables between the consumer groups (see Table 4) can be accepted. Box’s M test showed that the F statistic was 2.85, with a significance level of 0.0001. The null hypothesis that the variance-covariance matrices present no statistically significant differences between the groups of clients can thus be rejected and the existence of differences between groups, accepted. Finally, the confusion matrix shows that 96.8% of the originally grouped cases were correctly classified. All of the above confirms that the three clusters obtained were different and correctly identified. Table 2 Mean values of the variables between groups and the ANOVA Group 1 Group 2 Group 3 ANOVA Appearance 3.94 4.33 3.30 39.75a Taste 4.37 4.60 3.59 56.74a Price 3.99 3.75 3.14 24.96a Naturalness 2.04 3.95 2.61 121.74a Convenience 2.17 4.11 3.17 101.92a Nutrition 1.87 3.75 3.20 102.22a Origin 2.00 3.68 2.51 74.13a Tradition 1.85 3.94 3.39 139.84a Environmental impact 2.75 4.15 3.38 40.64a Safety 2.28 3.97 3.04 68.32a Fairness 1.91 4.08 2.71 73.48a NOTE: a = level of significance < 0.001; METHODOLOGY Hierarchical cluster analysis and K - averages Formation of user groups Phase 1 METHODOLOGY ANOVA and multiple discriminant analysis Cluster validation Phase 2 METHODOLOGY Parametric & non-parametric tests Differentiated cluster analysis Phase 3 XXIX CONGRESO DE MARKETING AEMARK 2017 828 de 1617 ÍNDICE TRABAJOS Table 3 Tests of equality of means of the groups Variables Wilks’ Lambda F Significance Appearance 0.833 39.75 0.000 Taste 0.778 56.74 0.000 Price 0.888 24.96 0.000 Naturalness 0.620 121.74 0.000 Convenience 0.661 101.92 0.000 Nutrition 0.660 102.22 0.000 Origin 0.728 74.13 0.000 Tradition 0.587 139.84 0.000 Environmental impact 0.830 40.64 0.000 Safety 0.744 68.32 0.000 Fairness 0.730 73.48 0.000 Table 4 Wilks’ Lambda Contrast of the function Wilks’ Lambda Chi-squared Degrees of freedom Significance 1 to 2 0.131 798.26 22 0.000 2 0.600 200.28 10 0.000 The following paragraphs offer a brief description of the groups. The clusters were formed taking the average values of the variables (Table 2):  GROUP 1. Utilitarian: People in this group place importance on price paid for food. They also attach considerable value to appearance and taste (they are one of the two groups to value this more than the other two aspects). They gave the remaining attributes lower scores than the other clients. A total of 34.5% of the sample belonged to this group.  GROUP 2. Convenience: This group comprises those consumers who value all aspects highly except for price. A total of 24% of the sample belonged to this group.  GROUP 3. Values (the people in this group identify with a range of values related to health, the environment and social responsibility; for simplicity’s sake, they will be referred to jointly here as ‘values’): The members of this group are the least concerned about the price, taste and presentation of the food. They primarily value aspects related to health, the environment, and social responsibility. They attach a high value to aspects such as the use of natural products, nutrition, origin, tradition associated with the use of a product, environmental impact, the healthiness of the food, and how equitably the benefits it generates are distributed. This group accounted for the largest share of users (41.5%). Determination of the clusters Table 5 shows the differences in the three clusters’ consumer habits. In general, the customers from the sample were heavy FAST FOOD RESTAURANT users: 73.5% ate at restaurants one or more times a week. However, profound differences can be seen between the groups. The utilitarian consumers were the least likely to patronise this type XXIX CONGRESO DE MARKETING AEMARK 2017 829 de 1617 ÍNDICE TRABAJOS Qin, H. and Prybutok, V.P. 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