Impact of promotion on customer’s brand loyalty

The research investigates the impact of promotion on customer brand loyalty for McDonald’s of Highbury Islington branch, London. The study provides an in-depth analysis of the existing research and studies related to the impact of promotion on customer brand loyalty. The research methodology, findings and recommendations are also discussed in detail.

Running head: DISSERTATION
Impact of promotion on customer’s brand loyalty
Name of the student
Name of the university
Author Note:

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Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

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Abstract
The following research is based on the impact of promotion on the brand loyalty of the
customers. The research has provided the different perspectives based on the loyalty of the
customers. Customer loyalty has been said to be the key objective that helps the business
enterprises to retain customers and stay loyal. The presence of a loyal customer is essential for
the business as because it helps to ensure the sustainability and effectiveness of the business. The
first chapter introduces the readers with the topic in a broad and detailed manner. The
introductory chapter provides the overview of customer loyalty and its importance in the
organization. The problem statement has defined the major problems with the following
research. The main problems defined in the following sector are the problem with the absence of
proper promotions in McDonalds High Bury Branch. The aim, objectives of the research along
with the research question provides the readers with an idea on what the research will be
discussing and the different perspectives of the investigation. The hypothesis and the rationale of
the research are equally important to proceed with the research and complete it in an effective
manner. Lastly the structure of the research is one of the most important areas that will help
determine the contents of the research in a short yet descriptive and compact manner.
The literature review comes in the second part of the research where the different kinds of
secondary sources related to the brand loyalty and the retention of the customers by means of
brand loyalty has been provided. The providence of the importance of customer loyalty, the
major factors related to brand loyalty has been essential for the completion of the review. The
research methodology has been structured and provided in the third chapter of the review. The
research Methodology chapter is essential for the particular research to determine the methods
and tools used in the research to verify the results of the research. The philosophical stance,

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research design and approach combined together along with the justification for the selection of
each and every such research methodology perspectives has been essential for the completion of
the research in a proper manner. The fourth chapter is the data analysis chapter where a statistical
based research approach has been provided. A survey was done on 50 people and the results of
the responses were analyzed by means of bar graphs, charts and statistical calculations. The
statistical analysis of the following chapter has been essential for the scientific based research
calculation. The results clearly indicated that customer loyalty and satisfaction is a key factor to
the success of the business enterprise. The last chapter provided a conclusion to the research
where a summary of the entire work was provided. The summary has been essential to end the
dissertation on a positive note.

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Table of Contents
Chapter 1: Introduction....................................................................................................................8
Overview......................................................................................................................................8
1.1 Problem statement.................................................................................................................9
1.2 Research aim........................................................................................................................10
1.3 Research objectives.............................................................................................................10
1.4 Research questions...............................................................................................................10
1.5 Research hypothesis.............................................................................................................11
1.6 Research rationale................................................................................................................11
1.7 Structure of the dissertation.................................................................................................12
Chapter 1: Introduction..............................................................................................................12
Chapter 2: Literature review......................................................................................................12
Chapter 3: Research methods....................................................................................................13
Chapter 4: Findings and discussion...........................................................................................13
Chapter 5: Conclusion...............................................................................................................13
1.8 Summary..............................................................................................................................13
Chapter 2........................................................................................................................................14
2.0 Literature Review....................................................................................................................14
2.1 Introduction..............................................................................................................................14

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2.2 Factors influencing customer satisfaction and loyalty.............................................................17
2.3 Factors influences customer satisfaction.................................................................................18
Comparative Analysis of two different McDonald’s Stores......................................................34
Chapter 3: Research Methodology................................................................................................35
3.1 Introduction..............................................................................................................................35
3.2 Research Philosophy and Justification for choice of philosophy............................................35
3.3 Research Approach and Justification for the choice of the Research Approach.....................36
3.4 Research Design and Justification for selecting the particular Research Design....................37
3.5 Research Strategy and the Justification for the choice of the strategy....................................38
3.6 Sample and Sampling Techniques...........................................................................................38
3.7 Data Collection and Analysis..................................................................................................38
Chapter 4........................................................................................................................................39
Figure No 1: Pie-Chart Showing Gender...................................................................................40
Figure No 2: Bar Graph Showing Gender.................................................................................40
Table No 1: Table of Gender.....................................................................................................40
Figure No 3: Pie chart showing age group................................................................................41
Table No 2: Table of Age Group...............................................................................................41
Figure No 4: Bar Graph showing income demographics..........................................................42
Table No 3: Table of Income.....................................................................................................42
Figure No 5: Bar Graph showing responses on independent variables.....................................43

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Table No 4: Table of Independent responses............................................................................44
Figure No 6: Bar Graph showing responses on independent variables.....................................45
Table No 5: Table of Independent responses............................................................................45
Figure No 7: Bar Graph showing responses on independent variables.....................................46
Table No 6: Table of Independent responses............................................................................46
Figure No 8: Pie chart showing responses on accessibility of stores........................................47
Figure No 9: Bar Graph showing responses on accessibility of stores......................................48
Table No 7: Table of major impact on brand loyalty................................................................48
Figure No 10: Bar Graph showing responses on value creation...............................................49
Table No 7: Table of value creation responses..........................................................................49
Figure No 11: Bar Graph showing proper communication results............................................50
Table No 8: Table of communication responses.......................................................................50
Figure No 12: Bar Graph showing promotion influencing brand loyalty.................................51
Table No 9: Table of promotion influencing brand loyalty responses......................................51
References......................................................................................................................................56
Appendices....................................................................................................................................63
Appendix 1.................................................................................................................................63
Survey Questionnaire.................................................................................................................63

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Chapter 1: Introduction
Overview
Customer loyalty is the key objective that ensures customer relationship management by the
business organizations. According to Kandampully, Zhang and Bilgihan (2015), having a loyal
customer base is necessary for the business organizations to sustain in the competitive market. It
has been seen that the business organizations earn more profit and revenue from the existing and
the loyal customers compared to the newly attracted customers. The business organizations can
always count on the return on investment on the loyal customers, as the business organizations
rely on the loyal customers for sustaining the competitive market. The success of the business
organizations is determined by the existing number of loyal customers.
Adequate and increased sales determine the success of the business organizations. As
mentioned by Westberg and Pope (2014), having an effective and efficient sales promotion
strategy is a technique undertaken by the business organizations for retaining the customers.
Sales promotion helps in creating an element of surprise among the existing customers with the
hope of something new at regular interval. Additionally, effective sales promotion provides an
opportunity for the business organizations to enjoy the products and services offered at decreased
rate for a limited period.
The UK market is selected for this study that is saturated with a variety of fast food chains
offering similar food and beverage items that has led to tough and intense competition. Apart
from McDonald’s, other fast food chains in the UK are Burger King, KFC and Pizza hut. Intra-
organization competition is highly prevalent in the UK, as the market is crowded with increased
number of McDonald’s outlets. This has led to customer’s brand loyalty issues for McDonald’s
of Highbury Islington branch, London because other branches in the area are successful in

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ensuring effective sales promotion. The issue identified in the branch has led to the selection of
the research topic for the study (Xu 2014).
1.1 Problem statement
Having an effective and successful promotion is necessary for the business organizations
for creating a unique image in the eye of the customers and developing a loyal customer base.
McDonald’s is a well-known fast food chain with its outlets around the world. However, the
McDonald’s of Highbury Islington branch, London is facing sales promotion problems that are
affecting the loyalty of the customers towards the brand. The selected branch in this study has
been offering products to the customers at a fairly lower price over a certain period of time that
has spoiled the existing customers. Initially, the sow price strategy helped in building loyal
customer base but later when the price was increased the customer’s brand loyalty is occurred.
As a result, the loyal customers are facing a problem in accepting the price changes of the
products of the branch (Jin, Wang and Hu 2015).
Apart from the aforementioned problem, another problem faced by the McDonald’s of
Highbury Islington branch, London is moving the purchase ahead. The sales of the branch
generally reach the peak only during promotional offers and once the price offers and discounts
are over, the sales drops. This signifies that the customers were attracted to the price discounts
and offers and not the brand. Thus, McDonald’s of Highbury Islington branch, London
misinterpreted promotion attraction as customer loyalty that has hampered the overall sales of
the branch (Pettigrew et al. 2015). Providing prolonged sales promotions results in misleading
feelings, as the customers feel that McDonald’s have high profit margin thereby, having a
negative impact on the customer’s brand loyalty.

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1.2 Research aim
The aim of the research is to investigate the impact of promotion on customer brand
loyalty for McDonald’s of Highbury Islington branch, London.
1.3 Research objectives
The objectives of the research are:
 To understand the main idea of promotion and customer loyalty for McDonalds
 To critically analyze the impact of promotion on customer brand loyalty for McDonald’s
of Highbury Islington branch, London
 To assess the relationship between sales promotion and customer brand loyalty for
McDonald’s of Highbury Islington branch, London
1.4 Research questions
The questions of the research are:
 What do you mean by sales promotion and customer loyalty?
 What is the impact of promotion on customer brand loyalty for McDonald’s of Highbury
Islington branch, London?
 What is the relationship between sales promotion and customer brand loyalty for
McDonald’s of Highbury Islington branch, London?

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1.5 Research hypothesis
The hypotheses of the research are:
H0: Sales promotion has no impact on the customer’s brand loyalty for McDonald’s of Highbury
Islington branch, London
H1: Sales promotion has an impact on the customer’s brand loyalty for McDonald’s of Highbury
Islington branch, London
1.6 Research rationale
Investigating the impact of sales promotion on customer’s brand loyalty for McDonald’s
of Highbury Islington branch, London is necessary because this will allow the analyze the impact
of the gap of effective sales promotion for customer brand loyalty for the selected McDonalds’s
branch in London. The topic selected for study is important, as this will provide an opportunity
to address the probable reasons that has led to ineffective sales promotion in the Highbury
Islington branch, London by evaluating the loyalty of the customers towards McDonald’s.
Addressing the probable reasons of ineffective sales promotions for McDonald’s of Highbury
Islington branch, London offers the provision for assessing the relationship between effective
sales promotion and brand loyalty of the customers. As a result, comparing and contrasting the
impact of sales promotion on customer’s brand loyalty in the absence and presence effective
sales promotion will be easier (Trapero, Kourentzes and Flides 2015).
The research is also essential because this will help in identifying the principle factors
that has resulted in ineffective sales promotion for McDonald’s of Highbury Islington branch,
London out of different existing factors. This will provide an opportunity to understand the
potential reasons of why the McDonald’s of Highbury Islington branch, London is failing to

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ensure customer brand loyalty (Foster et al. 2014). After identifying the gaps, the study proposes
methods that can be used for ensuring effective sales promotion for the selected McDonald’s
branch and ensuring customer’s loyalty towards the brand.
1.7 Structure of the dissertation
Five major chapters comprise the entire structure of the dissertation. Each of the chapters
has distinctive characteristics that make it highly significant.
Chapter 1: Introduction
The first chapter is said to be the introductory chapter that provides a background and an
overview of the topic selected for study. Based on the background, problem statement is
identified that helps in developing the research aim, objectives and hypothesis that is studied.
Alongside, the research rationale is also mentioned thereby, justifying the significance and scope
of the study.
Chapter 2: Literature review
This is said to be the second chapter that primarily identifies the independent and the
dependent variable based on which the entire chapter is developed. The chapter defines the
concepts and critically analyzes the factors along with referring to relevant theories. This chapter
helps in identifying the potential gaps of the selected factors that hampers the functioning of the
dependent variable.
Chapter 3: Research methods
This chapter highlights the definitions of all the known methodological tools that can be
used for carrying on a research. Apart from definitions, the characteristics are also discussed

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followed by justifying the reasons of selecting particular research methods. Appropriate selection
of research methods ensures completion of the studies successfully.
Chapter 4: Findings and discussion
According to the methods selected in the previous chapter, data is analyzed in this
chapter using them for obtaining authentic and relevant information that help in achieving
research aim and objectives successfully. The obtained data is interpreted by referring to
information mentioned in the previous section of the study.
Chapter 5: Conclusion
The last chapter deduces appropriate and suitable conclusion of the overall study by
explaining the topic and its significance in general followed by highlighting the gap for this
study and discussing the impact by considering the data obtained and the information provided.
The chapter also provides recommendations for improving or mitigating the gaps as well as
proposing the future scope of the study.
1.8 Summary
Thus, from the above information, it can be summarized that effective and efficient
promotion has a major impact on customer loyalty. Market saturation is a major issue that has
been formed due to the increased number of business organizations offering similar products and
services thereby, making it tough to survive in the competitive market. McDonald’s is a well-
established fast-food chain with a reputation in the market. However, similar fast-food joints in
the UK make it essential for the effective sales promotion for surviving the competitive market.
Successful sales promotion for McDonald’s ensures that the customers are continuously engaged
with the expectation of getting values, incentives and discounts thereby, maintaining a loyal

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customer base. For this study, it can be seen that McDonald’s of Highbury Islington branch,
London is facing customer loyalty issues that is affecting their sales negatively.
Chapter 2
2.0 Literature Review
2.1 Introduction
Customer Satisfaction is one of the major tools that is used for the conduction of a
successful business. The satisfaction of the customers comes from the use of the products and
services of the company and then by evaluating the quality and performance of these products
and services. The management of the business organizations thus tend to focus more strongly on
the different types of the customer satisfaction measures in order to gain a competitive advantage
in the market. The time when the customer experience essential flats with customer expectation,
the customer satisfaction becomes higher. On the contrary, compared with the expectations, the
worse customer experience brings lower customer satisfaction. There are two ways to improve
customer satisfaction for companies. The very first being the service improvement, to enhance
the customer experience and second to try and effectively manage customer expectations by
reducing the desired level. However, the first approach is widely used in the organization and
achieved great success. In the future, companies will need to still make some adjustment for
continuous improvement. Loyalty is defined as "one of the most deep commitments that helps in
the rebuilding process of a particular product and service. This product and service can be both
in the present times and also in the future. Customer Loyalty is viewed as one of the most
important strength that build a strong relationship in between an individual’s relative attitude.

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Though customer satisfaction is one of the most important part of the business it is not able to
single handedly take forward the business to the next level. Customer satisfaction can lead to
good reputation and financial gains for the business organization. However, the management of
the companies has to be on their toes as the market nowadays can be unforgiving and is more
complex than the past times. The adaption of different kinds of technologies and their
implementation in the business is the main reason behind such a situation in the market. The
management of the company has to work tirelessly to bring a new customer under their grip than
to retain the old customers. Loyalty among the customers is something that the company can
proudly boast of. The presence of the behavior loyalty, intentional loyalty and emotional loyalty
is important for the success of the business in the market.
2.2 Factors influencing customer satisfaction and loyalty
The start of the new millennium along with customer satisfaction is seen to be present at
every vital intersections of the business. The satisfaction of the customer’s needs and wants is
thus one of the major needs of the business organization. Customers turn out to be loyal once
they feel that the company has been meeting all their demands and needs accordingly. There are
lots of differences that exist in between factors which influence loyalty among the customers of
the business. This includes the likes of the price, quality, reliability and empathy. All of these are
discussed below.
2.3 Customer Loyalty at McDonalds
The management of McDonalds Corporation puts great importance on the QSC&V
statement which represents quality, service, cleanliness and the value of the products served. The
following statement is considered as the standard or benchmark that is used by the company to

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maintain and access the different factors in its own stores that are run by the franchise. The
success of the company is generally based on the potential professional integrity of the business
organization.
2.4 Products
The management of McDonalds is committed towards providing high quality food
product like muffins, burgers, different fries and drinks. These foods are generally reliable and
safe in nature and are provided to the customers after thorough inspection. However the quality
of the products is not the only thing that is to be considered, people also considers the value of
the products. The good value of products is essential for the business to ensure the success of the
organization. The management of McDonald’s includes different types of offer on some special
days like offering a free meal voucher for buying a special meal from the food. The globalization
of the market and the change in the minds of the modern customers have focused the
management of the company to provide extra focus to each and every details of the products and
the service offered by them. The customers compare and verify each of the products and the
services with that of the Other Kinds of organization like KFC, Burger King and many more as
such. As the management of the company provides special care to the quality of the foods
service and quality.
2.5 Value and Service
Value of the products and the services is one of the most important considerations for the
research. Most of the customers consume the products of McDonalds just because of its high
value in the market. The great value for the money thus helps the organization to ensure the

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success of the market accordingly. The consumers generally prefer the McDonalds stores just
because of the brand value of the company and the ability of the company to be one of the best
food companies of the world.
The presence of quality service in the organization and the training provided by the
management to the workers, makes Mc Donald’s one of the most visited stores. The high
standard and services attracts people which in turn increase the rating of the company. The
efficient and effective customer care and service makes the organization one of the best in
nature.
2.6 Cleanliness
Cleanliness is one of the basic services of the organization and the more a store is clean,
the more is the chance of the organization to attain success in the market. The presence of a neat
and tidy atmosphere in the stores helps McDonald’s to attain a large footfall.
2.7 Branding
There are a certain portion of the customers, who judge products and services by
assessing the branding of the organization, the better the capability of the organization to brand
the services and products, the better the chance for the company to attain success in the market.
2.8 Factors of Customer Retention at McDonalds stores
The most important factor that must be considered by the company to retain the
customers is to satisfy the customers and expand the business. The customers play the most
pivotal role in the success of the organization and thus it is vital for the organization to

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understand the needs and the wants of the customers of the organization. Some of the major
reasons to retain the customers in the business organization are as follows;
2.9 Value for Money
It has been seen that almost 35% of the different people visit McDonalds because of the
high value it promotes. The company is one of the most economical organizations that present
good value to the customers. The food offered is affordable and easily available to the customers
of the organization. Student favorite Menus like ice Creams, French Fries, Mayo chicken are
offered by the management of the company at one of the most cheap prices.
2.10 Customer Service and Satisfaction
The researcher found that more than 25% of the research participant’s visit McDonald’s
stores because of their high standards of Customer Service and Satisfaction The providence of
high customer satisfaction value is important for the organization that attracts customer to the
stores.
2.14 Brand loyalty
Brand loyalty is one of the most important elements of the business. As the brand loyalty
of McDonalds is directly linked to its success in the business market. McDonalds is one of the
most leading brands of the fast food industry and the customers are loyal towards the Company
for the products and services they offer.
2.15 Pleasant friendly environment

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The friendly environment of the stores of McDonald is one of the major reasons for the
success of the brand in the market. The customer friendly stores, presence of well behaved staff,
additional discounts, well decorated interiors and free internet services are among many of the
different services offered by the company.
2.16 High quality standards
The maintenance of high quality standards for food makes McDonalds one of the most
sought after brands by the fast food enthusiasts. The promotion and the presentation of healthy
yet tasty foods attracted the customers to McDonalds stores.
2.17 New products, Offers and Discount vouchers
McDonald’s is reportedly committed towards the development of a rewards program that
hinges on targeted offers for driving frequency and discounts based on previous purchases
instead of relying on broad-appeal coupons, as the chain has done in the past.
McDonald’s U.S. president revealed the news during the UBS Global Consumer
Conference this week, indicating that the implementation of a national rewards program could
result in a big uptick in sales for the marketer, who has suffered from fledgling sales. However,
McDonald’s will need to rise to the level of other competitors in its industry, such as Taco Bell,
who have incorporated interactive and Gamification-heavy elements into their rewards platform
as a way of bolstering customer engagement. “There are a few elements to this question: clearly
McDonald’s is making a concerted push right now to revitalize the mobile channel (into the kind
of meaningful engagement and transactional tool that it should be for a brand like McDonald’s).
“However, this isn’t the brand’s first foray in mobile loyalty – loyalty was purportedly a goal of

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the relatively underwhelming McD app, released in 2013,” he said. “The loyalty component of
that earlier mobile ordering app was essentially a coupon on a phone – which unsurprisingly was
not a runaway success. McDonald’s claims the loyalty program, which will be implemented
within the brand’s mobile application, could see a national introduction later this year or in early
2017. The platform will be a customer-designed loyalty program, suggesting that it will leverage
individual consumer data to present more targeted offers.
For example, the program will likely be linked to app users’ previous purchases, or the
number of visits consumers make to McDonald’s locations every month. Customers will have a
limited window to take advantage of available deals, which may prompt them to make
unscheduled visits and impromptu purchases at the chain’s restaurants. The new platform will
build upon the Big Mac marketer’s existing mobile app. Last September, McDonald’s previewed
the app’s U.S. version with consumers in the Philadelphia region by tacking on a complimentary
item for each download. In several markets, app users are able to earn a free McCafé drink after
purchasing five beverages. No overarching rewards system has been put into place thus far. The
app has seen considerable download numbers, but McDonald’s is still searching for ways to
foster long-term usage. During its January earnings call, McDonald’s revealed it has seen more
than seven million downloads of its mobile app since the fall 2015 launch, proving that welcome
offers are directly correlated to high registration rates. “McDonald’s has a few basic levers it can
pull to drive downloads, and rewarding good customers is one of the most powerful,” Mr.
McNally said. “If this loyalty program shows real value for customers, and is implemented and
promoted well, then [there is] no reason it wouldn’t drive more downloads.” McDonald’s is also
hoping to use the U.S.-based loyalty program to win back absent customers. If individuals have
not shown activity for a while, the chain can lure them back with an exclusive in-store discount

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for their favorite menu item. The fast-food brand has been focusing on driving customer
retention with a slew of other tactics as well, including developing digital menu boards, and
offering all-day breakfast options. However, one surefire way of boosting in-app engagement
would be to follow in Taco Bell’s footsteps by employing Gamification aspects – something
likely to resonate well with millennial. Last December, Taco Bell introduced an in-app loyalty
program with a Gamification-heavy focus on rewarding customers for repeat ordering and
engaging on social media. “Taco Bell has been a sector leader in mobile, and as a general rule,
McDonald’s should study its competitors’ mobile efforts,” Mr. McNally said. “One reason
mobile loyalty efforts don’t take off is lack of engagement, touch points, and immersion –
McDonald’s previous efforts were essentially a coupon on a phone. “In order to foster repetitive
use, apps require a bit more strategy around engagement and a multi-touch user experience – not
just a coupon,” he said. “Gamification needs to be used judiciously though – some light/easy
interaction is great (especially if there is a social tie-in), but no one is looking to weave
McDonald’s game play throughout their everyday lives just for a free Big Mac.
2.18 Recommendations for Mc Donalds
Here are some thoughts for McDonald’s to consider:
1. Recognize that people matter
Match your investments in products and processes to your investments in your people. At the
time of designing new customer experiences, place a greater emphasis on designing your
people’s performance and developing tools that enable them to deliver it. The recognition of the
people matter is important for the success of the organization as because the time when the

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management recognizes the performance of the employees, the employees feels dedicated and
more motivated and therefore performs in a much better manner. The recognition of the
employees therefore is essential for the Mc Donald store as because such a step will help
increase the satisfaction of the customers and make the most of the organization.
2. Shifting the paradigm.
“Flipping Burgers” at McDonald’s is often considered a bad gig. It’s time to rebuild the
reputation of working for you. As long as you are considered to offer one of the least-desirable
jobs in the marketplace, you will continue to employ people who simply do not care. The
management of Mc Donalds must look into the following matter and bring some kind of
innovation in the menu and in the workplace. The changes can be from both the end of the
recruitment and also changes from the end of the menu served to the customers of the
organization. The more the innovation, the better will be the chances to attract customers as well
as create an interest among the job aspirants to apply for the job in McDonalds.
3. Rethink your definition of service.
No one wants to wait in a drive through for 10 minutes or sit in a dirty restaurant. Speed
of service and cleanliness, however, isn’t the only components of customer experience. In fact,
they’re just the tip of the iceberg. Create a true vision of exceptional service; show your
employees how you want them to perform and interact with your customers. As said earlier
service needs to be given a second thought as service does not only renders to taking orders from
the customers and then providing the orders like a well oiled machine. The service in this case
needs to be changed to more of a personal and caring service rather than the services provided by

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the restaurants. It is important for the business organization to change the meaning of services.
This can include providing special care for the customers, recognizing loyal customers, sending
gifts and food packs for loyal customers on special occasions and many most importantly the
employees of the restaurant have to behave in a friendly and efficient manner to improve the
experience of the customers.
4. Training the employees.
Training is key to the success of the business. Skimping on franchisee and employee
training is ignoring the most difficult element in your formula for success. The argument many
executives make for not investing in training programs, high attrition rates, is weak. It is
important to consider what comes first, whether it is the lack of training or the high attrition rate.
A centralized training is provided to the employees of McDonalds at the beginning of the
service. However, the Highbury Islington Branch of McDonalds has its own personalized
training center to train the individuals in order to make them compatible according to the
regulations and environment of the particular branch of the food chain.
5. Put the money at the right place.
If one is serious about customer service, payment should be made for it. Creation of
specific incentives to recognize top performers and penalize poor performing franchises.
PowerPoint presentations and webcasts are a good start but far from the end of the journey. The
investment of the restaurant must be directed towards the development of customer satisfaction.
Therefore the management has to invest in providing key customer amenities like good and

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comfortable seating arrangements, recruiting experienced and smart waiters, providing the best
quality food and most importantly flawless and timely service.
6. Establish daily rituals.
Customer service doesn’t improve by hanging a poster or holding a quarterly webcast.
Customer service improvements happen over time via multiple activities and behaviors. Make
sure to repeat and reinforce daily to ensure your employees stay sharp and committed. The
change in daily services can have a positive influence on customer satisfaction. The more the
innovation in daily rituals, the better will be the chance of satisfying the customers.
Customer service is a product of company culture. To improve customer service quality,
McDonald’s needs to decide that people are the true key to its success and start investing in
creating a culture that supports its goals.
Comparative Analysis of two different McDonald’s Stores
FACTORS/
VARIABLES
Highbury Islington branch,
London
Cardiff Road | Ty Verlon
Industrial Estate, Barry CF63
2BE, Wales Location  Located at a posh London
locality
 Located at a nice place
 Food  Serves fries, coffee,
burgers, chicken fries and
many more
 Almost the same menu

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 Quality of Food  Not good enough as there
are people who
complains about the
quality of the food as
most of them are served
cold
 There are few complaints
of food especially fries
being served cold.
however, overall quality
of foods is good enough
 Servicing Time  At least 10 minutes  At least 7-10 minutes
 Service of the
Stores
 Moderate rated service  Moderate rated service
 Customer
Satisfaction
 Not good enough  Quite good
Chapter 3: Research Methodology
3.1 Introduction
Research Methodology comprises of different types of the methodological tools that are
used to conduct the research. It provides a systematic approach which helps in the description of
the research topic. However, the main task of the research methodology is to identify the
different tools that have been used to complete the dissertation. The following also helps to
predict a particular phenomenon of the research by the use of the different kinds of the research

26
DISSERTATION
tools. The following research evaluates the philosophy, design, approach and also evaluates the
data collection and sampling process for the research.
3.2 Research Philosophy and Justification for choice of philosophy
The three most widely used research philosophies are the positivism, pragmatism and
interpretivism. The three philosophies are different from each other and each of them has their
own special approach. The use of the positivism philosophy is mostly dependent on the
quantifiable study or observation of the research topic by means of a numerical perspective. The
positivism philosophy can be said to be a scientific and organized approach. On the other hand
the use of the positivism philosophy has some of the major difficulties in a research. The use of
the positivism philosophy limits the researcher while the collection and the interpretation of the
data based on the objectives of the research. The interpretivism research philosophy allows the
research to consider different perspectives based on the research. The pragmatism research
philosophy on the other hand is a combination of both the positivism and the interpretivism
research philosophy.
The following research has considered the use of the positivism research philosophy to
conduct the research. The conduction of the positivism research philosophy is essential for the
research as because it allows the research to use the factual knowledge and test the hypothesis of
the research. The data collected from the survey can also be analyzed in a scientific manner. The
analysis of the data in a scientific manner is helpful for the research to establish trustworthiness.
The use of the positivism philosophy allows the research to consider both the statistical and
scientific approach to the research. Thus such a consideration is essential for the success of the
research. The choice of interpretivism and the pragmatism has been avoided in this case as

27
DISSERTATION
because it could have restricted the research to collect and analyze the updated information based
on the brand loyalty and customer satisfaction.
3.3 Research Approach and Justification for the choice of the Research Approach
The two different kinds of research approaches are namely inductive and deductive. The
inductive research approach is based on finding new approaches and patterns. The research must
develop new theories and concepts in order to complete the research in the following case. The
research has to focus more on the observation to successfully complete the following research.
On the other hand, the use of inductive research approach relates to the formulation of a
hypothesis based on the data of the literature or the data collected from survey. In the following
case the secondary research helps to gather and discuss on the existing literature and theories of
the research. The general data is transformed to a kind of specific data in the following research.
The following research has selected the deductive research approach. The first and
foremost reason for the selection of this particular approach is that deductive research approach
goes well with the positivism research philosophy. The selection of the deductive research
approach helps to test the formulated hypothesis and allows the research to test the reliability and
validity of the research questions deduced from the research. The other benefit of using the
deductive research approach is the ability of the research to relate and gather data based on the
previously existing theories and concepts of research. The statistical edge of the research is also
another of the many benefits of using the deductive research approach. On the other hand, the
use of the inductive research approach has been avoided in the following case as such a use
could have led to the consideration of new models and theories that could have led to wastage of
time and resources and also a rise in the budget of the research.

28
DISSERTATION
3.4 Research Design and Justification for selecting the particular Research Design
Exploratory, explanatory and descriptive research designs are the three different kinds of
research designs that are generally used in the researches. The explanatory research design is the
providence of an opportunity to explain the factors, perspectives and the different elements of a
research in a proper and efficient manner. The following design can also predict future
occurrences. On the other hand the exploratory design used in research can test the hypothesis
and the questions as well as the objectives of the research. The clarification of the various topics
related to the research is an additional gain while using the following research. Lastly the
descriptive research design can be described as a combination of both the research designs. The
dual characteristics of the following research design are essential for the research to be
conduction of the research.
The descriptive research design has been selected in this following case as because the
descriptive research design has been dimmed as the only design to successfully determine the
results of the research by analyzing the different kinds of the questions of the research and the
hypothesis of the research. The cause and effect of the research on the related elements has also
been determined in the following case. The use of the following design is quite justified just
because of the capability of the research to analyze the reliability of the hypothesis.
3.5 Research Strategy and the Justification for the choice of the strategy
There are a number of different research strategies namely Action research, case study,
interview and survey. The survey research and the interview method is done by means of
considering a number of sample in the form of the people. The sample population is provided
with some questions and the responses of the sample are analyzed either by theoretical or

29
DISSERTATION
statistical and scientific means. In the case of the case study, the research is based on the
consideration of secondary research data.
The following research has used the survey research strategy as it provides the
opportunity to collect and gather data based on the perspectives of the organization. The
organizational perspective helps the data collected to be valid and reliable in nature.
3.6 Sample and Sampling Techniques
A sample is defined as the number of respondents who have been selected to provide the
responses for a particular research. The following research has selected 50 participants to
complete the research. The random sampling method has been selected to complete the following
research. The research will be based on the customers of the McDonald’s Highs bury branch.
3.7 Data Collection and Analysis
The data will be collected by means of providing a questionnaire. The questionnaire had
been provided to the research participants on their visit to the store. A time of 5 minutes was
provided to them to fill up the responses of the questions. The responses were then collected and
analyzed by means of preparing charts and tables. The statistical analysis of the responses helped
the research to be accurate and successful in nature.
3.8 Ethical Considerations
Ethics is considered to be one of the most important elements of any kind of research.
The absence of ethics in a research is not acceptable. First and foremost the researcher must
ensure the safety of the subjects who have been considered for the research. The researcher must
ensure that the participants of the research are not harmed in any manner during the conduction

30
DISSERTATION
of the research. Apart from this, the researcher must also ensure the secrecy of the identity of the
participants as well as the data or responses shared by them. The data must be protected
according to the guidelines of the Data Protection Act. Thus ethics stands out to be one of the
most important elements of the research.
Chapter 4
4.1 Data Analysis
27
23
Number of people
Male
Female
Figure No 1: Pie-Chart Showing Gender
Source: (As created by the author)

31
DISSERTATION
Male Female
21
22
23
24
25
26
27
28
27
23
Number of people
Figure No 2: Bar Graph Showing Gender
Source: (As created by the author)
Number of people
Male 27
Female 23
Table No 1: Table of Gender
Source: (As created by the author)
The above shown pie chart and the table have represented the gender of the people who
participated in the following research. There were a total of 50 people in the research and among
them 27 people were male whereas 23 of them were females.

32
DISSERTATION
Figu
r e No
3:
Pie
chart showing age group
Source: (As created by the author)
Age Group
Average age of customers buying food from McDonalds High bury
Islington Branch
18-25 years 18
26-35 years 20
36-45 years 8
45 years and above 4
Table No 2: Table of Age Group
Source: (As created by the author)
The above bar graph and the table has presented the age of the customers who
participated in the research. Most of the participants belonged in the age category between 18 to
18
20
8 4
Average age of customers buying food
from McDonalds Highbury Islington Branch
18-25 years
26-35 years
36-45 years
45 years and above

33
DISSERTATION
35 years which proved that the branch attracts a large number of teenagers and young persons
who are addicted towards the different food products produced by the Company.
15000-$20,000 $21000-$30,000 $31,000-$40,000 More than
$40,000
0
5
10
15
20
25
30
10
25
10
5
Number of people
Figure No 4: Bar Graph showing income demographics
Source: (As created by the author)
Monthly Income of the customers buying food from Mc Donald’s High bury
Islington Branch
Number of
people
$15000-$20,000 10
$21000-$30,000 25
$31,000-$40,000 10
More than $40,000 5
Table No 3: Table of Income
Source: (As created by the author)

34
DISSERTATION
The above graph and table has provided the responses on the income demographics of the
respondents of the following research. A thorough analysis on the income category of the
responses has provided a clear view of the income category of the respondents. Most of the
participants belonged to the income category of $15,000-$30,000. While there were 10 of them
who earned more than $30,000 and among them there were only 5 of the participants who earned
more than $40,000.
Strongly
Agree Agree Disagree Strongly
Disagree
0
5
10
15
20
25
30
10
26
7 7
22
10 8 10
20
15
10
5
Presence of a large fund is
necessary for promotional
success
a stable economic environment
is necessary for promotional
success
the absence of fund can hamper
the promotion
Figure No 5: Bar Graph showing responses on independent variables
Source: (As created by the author)
Factors Presence of a large fund is necessary for
promotional success
a stable economic environment is necessary for
promotional success
the absence of fund can hamper
the promotion
Strongly
Agree
10 22 20
Agree 26 10 15
Disagree 7 8 10
Strongly 7 10 5

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DISSERTATION
Disagree
Table No 4: Table of Independent responses
Source: (As created by the author)
The following table has provided analysis on the independent variable of the research.
The different questions that were asked in the questionnaire related directly to impact of the
different factors on the promotional success of the business organization. The presence of a large
fund is necessary for the funding of the business was strongly agreed and agreed by at least 36
people who participated in the business research. On the other hand 32 people agreed to the fact
that a stable economic environment is necessary for the promotional success. Lastly most of the
people as guessed agreed to the fact that the absence of adequate funds can lead to the hamper of
the business. There were a few people who disagreed to the facts about the following factors.
Strongly Agree
Agree
Disagree
Strongly Disagree
0 2 4 6 8 10 12 14 16 18
14
16
10
10
10
16
10
14
15
15
12
8
Figure No 6: Bar Graph showing responses on independent variables
Source: (As created by the author)

36
DISSERTATION
Factors The quality of the product
offered by Mc Donalds
Highbury Islington branch can
have an impact on the
promotion
revenue of the
Highbury Islington
branch of Mc Donalds
have an impact on the
quality of the products
Market of the
branch of Mc
Donald have an
impact on the
promotion
Strongl
y Agree
14 10 15
Agree 16 16 15
Disagre
e
10 10 12
Strongl
y
Disagre
e
10 14 8
Table No 5: Table of Independent responses
Source: (As created by the author)
The above table and bar graph have provided the results of the responses like the impact
of quality on the promotion, the impact of revenue on the branch and the impact related to the
marketing of the branch. The responses clearly show that the majority of the people have either
agreed or strongly agreed to the factors. The highest number of positive responses totaling 30 in
number were received on the response of whether quality of products and marketing of the
branch in an effective manner can have an impact on the promotion or not. There were also a
certain number of people who either strongly disagreed or disagreed to the factors. However, the
negative responses never over exceeded the positive responses and thus the factors related to the
independent variable were positively responded by the majority of the people.

37
DISSERTATION
Strongly
Agree Agree Disagree Strongly
Disagree
0
2
4
6
8
10
12
14
16
18
20
12
18
12
8
16
20
8
6
20
12
10
8
brand name have an impact on
the promotion of the branch
Social Network can have an
impact on the promotion of the
brand name
consumers can have an effective
role in the promotion of the
brand
Figure No 7: Bar Graph showing responses on independent variables
Source: (As created by the author)
Factors brand name have an
impact on the promotion of
the branch
Social Network can have an
impact on the promotion of the
brand name
consumers can have an
effective role in the promotion
of the brand
Strongly
Agree
12 16 20
Agree 18 20 12
Disagree 12 8 10
Strongly
Disagree
8 6 8
Table No 6: Table of Independent responses
Source: (As created by the author)

38
DISSERTATION
The above table has provided the result of the responses on the questions related to the
brand name. Brand name as mentioned earlier is one of the most important considerations for the
research and thus the questions on brand name related to the impact of the promotion on the
branch, impact of the promotion on brand name and finally on how the consumers can have an
effective role in the promotion of the brand. There were more than 30 people who provided
positive responses on all the different questions. This clearly indicates that the majority of the
people believed that brand name has a major role in the success of the organization and its
promotion. The small number of people provided negative responses. the negative responses
were however not considered as because a small percentage of people provided negative
answers.
15
22
3
10
Strongly Agree
Agree
Disagree
Strongly Disagree
Figure No 8: Pie chart showing responses on accessibility of stores
Source: (As created by the author)

39
DISSERTATION
Strongly Agree Agree Disagree Strongly
Disagree
0
5
10
15
20
25
15
22
3
10 Accessibility of the store has a
major impact on the brand
loyalty of the customers
Figure No 9: Bar Graph showing responses on accessibility of stores
Source: (As created by the author)
Factors Accessibility of the store has a major impact on the brand loyalty of the
customers
Strongly Agree 15
Agree 22
Disagree 3
Strongly Disagree 10
Table No 7: Table of major impact on brand loyalty
Source: (As created by the author)
The above shown tables have provided the responses that are based on the impact of the
accessibility of the store on the brand loyalty of the customers. 37 of the participants have
provided positive responses which indicate that majority of the people are of the belief that the
accessibility of the store has an impact upon the customer’s brand loyalty.

40
DISSERTATION
Strongly
Agree Agree Disagree Strongly
Disagree
0
2
4
6
8
10
12
14
16
12
14
8
16
The value creation can be
helpful to the Mc Donald
store to ensure brand loyalty
of the customers
Figure No 10: Bar Graph showing responses on value creation
Source: (As created by the author)
Factors The value creation can be helpful to the Mc Donald store to ensure
brand loyalty of the customers
Strongly Agree 12
Agree 14
Disagree 8
Strongly
Disagree
16
Table No 7: Table of value creation responses
Source: (As created by the author)
The above table has shown on how value creation can be helpful for the McDonald’s
store in order to ensure the brand loyalty of the customers. 26 of the people agrees to the fact that
value creation is helpful to enhance brand loyalty among the customers. However, there were 24

41
DISSERTATION
people who disagreed with the fact that value creation is helpful for enhancement of loyalty
among the customers. Therefore the results stand a bit confusing.
Strongly
Agree Agree Disagree Strongly
Disagree
0
5
10
15
20
25
30
30
10
6
4
Proper communication is
essential for brand loyalty of
the customers
Figure No 11: Bar Graph showing proper communication results
Source: (As created by the author)
Factors Proper communication is essential for brand loyalty of the customers
Strongly Agree 30
Agree 10
Disagree 6
Strongly Disagree 4
Table No 8: Table of communication responses
Source: (As created by the author)
The above shown table has provided the responses on whether effective communication
is essential for gaining loyalty of customers. The responses of the individuals clearly points out

42
DISSERTATION
to the positive answer as a whooping majority of 40 people in total provided positive responses
among which 30 of them strongly agreed to the fact.
Strongly
Agree Agree Disagree Strongly
Disagree
0
2
4
6
8
10
12
14
16
18 15
17
8
10
Promotion influences the brand
loyalty of the customers
Figure No 12: Bar Graph showing promotion influencing brand loyalty
Source: (As created by the author)
Factors Promotion influences the brand loyalty of the customers
Strongly Agree 15
Agree 17
Disagree 8
Strongly Disagree 10
Table No 9: Table of promotion influencing brand loyalty responses
Source: (As created by the author)
The above tables and bar graphs have provided the result of the responses on one of the
factors related to the dependent variable. The result has been positive as 32 of the respondents
among the 50 people agreed or strongly agreed to the fact that promotion has a great influence on
the loyalty of the customers.

43
DISSERTATION
The above provided quantitative analysis has been completed by the use of the different kind of
tables, bar graphs and pie charts. All of the pie charts have been instrumental in providing a proper
analysis based on the results of the survey. The factors related to both the dependent as well as the
independent survey have been analyzed in the most positive and appropriate manner that has helped the
research to achieve the best results. The respondents who were selected are all the customers of the
particular branch of Mc Donald’s. The majority of them belonged to the age group range of 18 to 35
years. This age group range clearly suggests that the High bury store of McDonald’s is frequented by
most of the people belonging to the younger age. On the other hand considering the income demographics
of the respondents, it has been seen that most of the respondents have a stable income in between $15000
to $40,000. Thus this suggests that most of the people visiting the store have a high income monthly.
The research has considered a number of different questions based on different factors related to
the independent variable of promotion. All the different factors were mostly answered positively. The
presence of a large fund and the presence of a stable economic environment have been answered
positively by a large percentage of the respondents. This clearly suggests that the people agree with the
views of the research and believe the presence of adequate financial capabilities and a stable and effective
economic environment can be helpful for the McDonald’s branch to ensure success. Thus similarly the
participants have supported the idea that absence of finance can hamper the cause of the promotion of the
McDonald’s branch. On the other hand, the primary analysis of the research clearly suggests that the food
offered by the High Bury Islington branch and the quality of the food can have a large impact on the
promotion of the branch. Therefore it can be widely said that quality of the food is one of the major
determinants to promote a service or a product. Secondly the results also suggest that revenue of a branch
and the marketing capabilities of the branch have a large impact on the promotional capabilities of the
branch. Apart from this brand name have an impact on the promotion of the branch. Social network also
plays a major role in the promotion of the branch. The presence of the branch in social media has helped
the management to communicate with different other users who are the customers of the branch.

44
DISSERTATION
The dependent variables on the other hand have provided positive results as well. The majority of
people who participated in the research clearly agreed to the fact that the more a store is accessible to the
customers, the more is the chances for the store to increase brand loyalty. As seen in the review, brand
loyalty has a major impact upon the customers of the brand as because brand loyalty helps the customer
to ensure success as well as retain customers for the future. The retaining of the customers helps the
business to attain sustainability. Similarly promotion and presence of effective and proper communication
is highly recommended for the creation of brand loyalty. A large percentage of the participants have
agreed to the factors of brand in a positive manner. However, the factor of value creation in the market
have received mixed responses as 26 of the people have responded positively against the 24 who have
provided negative answers. The presence of 50 participants in this particular case seems to be inadequate
as the result of the analysis cannot be suggested with a strong hand. The result could have been
appropriate and accurate in the presence of a large number of participants. Therefore the above results
clearly suggest that a lot is dependent on both the dependent as well as the independent variables of the
research. It can be suggested that the McDonald’s Branch of Highs bury must promote efficient
communication and create value for its products to ensure success and brand loyalty in the market.
Chapter 5
5.1 Conclusion
The following research on customer loyalty and customer satisfaction has provided a
detailed analysis on the different kinds of the factors related to the enhancement of the brand
loyalty and the customer behavior on the same factor. Evaluating the results of the data analysis,
it can be said that the sales promotions generally depends on the resources of the company that
promotes the brand. This kind of resources and tools are required to speed up the sales of the
company. Though a large percentage of customers are attracted towards McDonalds, the inability
of the management of the company to enhance the promotion of the brand has led to the decline
of sales along with low promotional scopes for the organization. A number of recommendations

45
DISSERTATION
for the organization based on the following fact have been equally essential in the research. 50
different people were considered to provide their responses on the following matter. The analysis
of the research determined that most of the people came from the age group of 18 to 35 years
which proved that the products of the store mostly attracted the young age group. A large
proportion of the sample population believed in the facts that large funding; stable economic
environment and marketing were an essential factor to the success of the business. Based on the
above mentioned analysis it can be said that the research has quite well proved about the
importance of proper promotion to enable the success of a business in the modern competitive
world.
5.2 Recommendations
The research has been one of the most efficient and important in the recent times just
because it has dealt with brand loyalty in the business. It has been proved that proper and
efficient promotion has a large role in the success of the business organization. The better the
promotional activities, the better will be the success of the organization. Therefore the research
has provided some important recommendations in order to enhance a strong and healthy
promotion. First of all the management of different organizations needs to be super effective in
order to ensure success. The management needs to be providing a stable and sound economic and
financial planning to help them make a sound promotion. Apart from this the management of the
organization needs to establish a sound communication system that will be essential for the
success of the organization. On the other hand the management of the business also needs to
open their stores and other facilities in close proximity to the location of the customers. A close
and proper accessibility of the stores can lead to the success of the business organization. Lastly

46
DISSERTATION
the analysis of the results has provided a clear link to the success of the business by increasing
value for its customers. The more will be the value, the more will be the success of the research.
5.3 Reflection of the Dissertation
The dissertation has been a great source of study for readers like me to get an
understanding of the different perspectives of brand and brand loyalty. It has also provided a
clear and transparent element to the success of the business. The impact of brand loyalty on the
management of the business organizations have been another important source of learning from
the research. The research has helped me to identify the benefits of brand and what are the main
sources or factors that have an influence on the growth of the brand loyalty. After analyzing the
total study it has been seen that promotion plays a crucial role in the success of the organization.
To me the success of the business is thus dependent on the capability of the business to complete
promotional activities.

47
DISSERTATION
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Appendices
Appendix 1
Survey Questionnaire
a. What is the Average age of the customers buying food from Mc Donalds Highbury
Islington branch?
1. 18-25 Years
2. 26-35 Years
3. 36-45 Years
4. 45 years and above
b. What is the Gender of the customers buying food from Mc Donalds Highbury
Islington branch?
1. Male
2. Female
c. What is the Monthly Income of the customers buying food from Mc Donalds
Highbury Islington branch?
1. $15000-$20,000
2. $21000-$30,000
3. $31,000-$40,000
4. More than $40,000
Independent Variable

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Objective Questions on Factors of Promotion
Fund Questions SA A N D SD
P1 Do you think presence of a large
fund is necessary for promotional
success of Mc Donalds Highbury
Islington branch?
P2 Do you think a stable economic
environment is necessary for
promotional; success?
P3 Do you think that the absence of
fund can hamper the promotion of
the business enterprise?
Product
Quality
Questions SA A N D SD

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P1 Do you think the quality of the
product offered by Mc Donalds
Highbury Islington branch can
have an impact on the promotion
of the organization?
P2 Do you think revenue of the
Highbury Islington branch of
Mc Donalds have an impact on
the quality of the products being
offered to the customers?
P3 Do you think market of the
branch of Mc Donald have an
impact on the promotion of the
branch?
Brand Questions SA A N D SD
P1 Do you think brand name have
an impact on the promotion of

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the branch?
P2 Do you think Social Network
can have an impact on the
promotion of the brand name?
P3 Do you think consumers can
have an effective role in the
promotion of the brand?
Dependent Variable
Objective Questions on Factors of Customer Brand Loyalty
Accessibility Questions SA A N D SD
P1 Do you think accessibility of
the store has a major impact
on the brand loyalty of the
customers?
Personalization/ Questions SA A N D SD

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Value
P1 Do you think the value creation
can be helpful to the Mc Donald
store to ensure brand loyalty of
the customers?
Communicatio
n
Questions SA A N D SD
P1 Do you think that proper
communication is essential for
brand loyalty of the customers?
Brand Loyalty Questions SA A N D SD
P1 Do you think that promotion
influences the brand loyalty of the

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customers?