Service Quality and Branding Strategies at McDonalds
Added on 2022-09-14
23 Pages8982 Words22 Views
Leadership ManagementMarketing
|
|
|
Electronic copy available at: https://ssrn.com/abstract=2984100Service Quality and Branding
Strategies at McDonalds
By: Chenoy Ceil
Strategies at McDonalds
By: Chenoy Ceil
Electronic copy available at: https://ssrn.com/abstract=2984100Service Quality and Service Efficiency at McDonalds
2
Table of Contents
1. Report Summary................................................................................................................3
2. Introduction........................................................................................................................3
3. Characteristics of Service Structure at McDonald’s......................................................4
4. Market Segmentation at McDonald’s..............................................................................6
5. Service Blueprint at McDonald’s...................................................................................10
6. Service Recovery Recommendations..............................................................................13
7. SERVQUAL Recommendations.....................................................................................14
8. Brand Strategy Recommendations for McDonald’s.....................................................16
9. Conclusion........................................................................................................................18
10. References.........................................................................................................................20
2
Table of Contents
1. Report Summary................................................................................................................3
2. Introduction........................................................................................................................3
3. Characteristics of Service Structure at McDonald’s......................................................4
4. Market Segmentation at McDonald’s..............................................................................6
5. Service Blueprint at McDonald’s...................................................................................10
6. Service Recovery Recommendations..............................................................................13
7. SERVQUAL Recommendations.....................................................................................14
8. Brand Strategy Recommendations for McDonald’s.....................................................16
9. Conclusion........................................................................................................................18
10. References.........................................................................................................................20
Service Quality and Service Efficiency at McDonalds
3
Report Summary
This report looks at the service quality and service efficiency delivered at the restaurant
chain of McDonald’s. McDonald’s was first opened in USA over 50 years ago and the first
McDonald’s in UK was opened at Woolwich in 1974 (Crosby, 1979). Today, McDonald has
opened over 1000 branches in UK. This report looks at the existing service structure at
McDonalds and provides certain recommendations in the field of SERVQUAL and brand
strategy that the company might incorporate to improve their service efficiency. This report takes
into account the service characteristics such as intangibility, heterogeneity that are relevant to the
fast-food chain restaurants such as McDonald’s. Further, this report also studies the service
blueprint and servicescape that has been adopted at various outlets of the company.
From the findings of this report it can be suggested that there is scope for improvement of
McDonald’s stores in their design layout for faster delivery of food and better service delivery to
consumers. Branding strategies of the company such as co-branding and individual branding can
be adopted to improve the perception of the service quality amongst consumers. This report
proves that SERVQUAL can be utilized to understand the gaps creates in service delivery and
consumer perception (Carman, 1990). This report helps in understanding how McDonald’s can
improve their service qualities to improve customer perception (Bolton and Drew, 1991).
Introduction
Service marketing is very different from product marketing and the field of services
marketing was first developed in late 1970s. Since then, there has been huge progress in
developing service quality and service efficiency to improve consumer retention. Service
industry is generally developed in advanced economies and branding service providing
companies can be very difficult to maintain.
In 1985, Zeithmal et al. were the first researchers to suggest that services are different
from tangible goods and service industry generally composes of four unique characteristics such
as intangibility, heterogeneity (variability), perishability and inseparability (Brown et al., 1991).
Another fifth quality of services is the lack of ownership. Services can only be experienced but
never owned.
3
Report Summary
This report looks at the service quality and service efficiency delivered at the restaurant
chain of McDonald’s. McDonald’s was first opened in USA over 50 years ago and the first
McDonald’s in UK was opened at Woolwich in 1974 (Crosby, 1979). Today, McDonald has
opened over 1000 branches in UK. This report looks at the existing service structure at
McDonalds and provides certain recommendations in the field of SERVQUAL and brand
strategy that the company might incorporate to improve their service efficiency. This report takes
into account the service characteristics such as intangibility, heterogeneity that are relevant to the
fast-food chain restaurants such as McDonald’s. Further, this report also studies the service
blueprint and servicescape that has been adopted at various outlets of the company.
From the findings of this report it can be suggested that there is scope for improvement of
McDonald’s stores in their design layout for faster delivery of food and better service delivery to
consumers. Branding strategies of the company such as co-branding and individual branding can
be adopted to improve the perception of the service quality amongst consumers. This report
proves that SERVQUAL can be utilized to understand the gaps creates in service delivery and
consumer perception (Carman, 1990). This report helps in understanding how McDonald’s can
improve their service qualities to improve customer perception (Bolton and Drew, 1991).
Introduction
Service marketing is very different from product marketing and the field of services
marketing was first developed in late 1970s. Since then, there has been huge progress in
developing service quality and service efficiency to improve consumer retention. Service
industry is generally developed in advanced economies and branding service providing
companies can be very difficult to maintain.
In 1985, Zeithmal et al. were the first researchers to suggest that services are different
from tangible goods and service industry generally composes of four unique characteristics such
as intangibility, heterogeneity (variability), perishability and inseparability (Brown et al., 1991).
Another fifth quality of services is the lack of ownership. Services can only be experienced but
never owned.
Service Quality and Service Efficiency at McDonalds
4
These qualities are unique to the service sector. However, some of these qualities are
directly expressed by some consumer products. This paper looks into the different service quality
factors as well as servicescape model and functions evident at McDonald’s fast-food restaurants
around the world. The characteristics of services, the SERVQUAL gap are studied and thereafter
service quality recommendations are suggested that will help to improve the service quality at
McDonald’s outlets.
Characteristics of Service Structure at McDonalds
McDonalds is all about quality food, excellent service and cleanliness. McDonalds is
world known for their food chains and they are known as one of the world’s biggest food retail
chain. However, McDonald’s services are wide in variety and the range of products served in
their menu also varies widely ranging from hamburgers, sandwiches and French fries to salads,
milk shakes and sundaes (Yunus, Razak and Ilias, 2013). True to the service industry,
McDonald’s services are variable in nature and they provide wide range of services to their
customers. Heterogeneity or variability can be of particular risk in the service sector if different
customers are provided different services (Zeithmal et al., 1985). Heterogeneity leads to lack of
standardization of services and can lead to negative consumer perception. It is true that
McDonald’s tries to maintain homogeneity in its products line throughout the world but the same
cannot be said about the services provided by the outlet managers and staff. However with the
retail format, training and staff management, McDonald’s continuously tries to maintain some
form of homogeneity in its services. McDonald’s greatest strength is its consistency in services
through its products (Lamb, Hair and McDaniel, 2012). Services are difficult to be made similar
or standardized and most often services might vary (Lewis, 1993). However, at McDonald’s, the
services are uniform because whether customer’s are buying a Big Mac at India or UK, they will
get the same quality of the product and same sort of service (Lamb, Hair and McDaniel, 2012).
However, maintaining the same form of quality in service is indeed difficult and heterogeneity is
a part of the service industry because production and consumption is inseparable when a service
is generated (Lamb, Hair and McDaniel, 2012). Although, at McDonald’s training is imparted to
the employees to increase consistency and reliability of the services but it cannot be guaranteed
4
These qualities are unique to the service sector. However, some of these qualities are
directly expressed by some consumer products. This paper looks into the different service quality
factors as well as servicescape model and functions evident at McDonald’s fast-food restaurants
around the world. The characteristics of services, the SERVQUAL gap are studied and thereafter
service quality recommendations are suggested that will help to improve the service quality at
McDonald’s outlets.
Characteristics of Service Structure at McDonalds
McDonalds is all about quality food, excellent service and cleanliness. McDonalds is
world known for their food chains and they are known as one of the world’s biggest food retail
chain. However, McDonald’s services are wide in variety and the range of products served in
their menu also varies widely ranging from hamburgers, sandwiches and French fries to salads,
milk shakes and sundaes (Yunus, Razak and Ilias, 2013). True to the service industry,
McDonald’s services are variable in nature and they provide wide range of services to their
customers. Heterogeneity or variability can be of particular risk in the service sector if different
customers are provided different services (Zeithmal et al., 1985). Heterogeneity leads to lack of
standardization of services and can lead to negative consumer perception. It is true that
McDonald’s tries to maintain homogeneity in its products line throughout the world but the same
cannot be said about the services provided by the outlet managers and staff. However with the
retail format, training and staff management, McDonald’s continuously tries to maintain some
form of homogeneity in its services. McDonald’s greatest strength is its consistency in services
through its products (Lamb, Hair and McDaniel, 2012). Services are difficult to be made similar
or standardized and most often services might vary (Lewis, 1993). However, at McDonald’s, the
services are uniform because whether customer’s are buying a Big Mac at India or UK, they will
get the same quality of the product and same sort of service (Lamb, Hair and McDaniel, 2012).
However, maintaining the same form of quality in service is indeed difficult and heterogeneity is
a part of the service industry because production and consumption is inseparable when a service
is generated (Lamb, Hair and McDaniel, 2012). Although, at McDonald’s training is imparted to
the employees to increase consistency and reliability of the services but it cannot be guaranteed
Service Quality and Service Efficiency at McDonalds
5
that the services will be similar always at all stores throughout the world. This why heterogeneity
is a part of the services offered at McDonalds.
Another important quality of services at McDonald’s is that they provide excellent
seating and décor. Physical facilities and equipment at McDonald’s forms the tangible part of the
business that can be seen. Tangibles are often employed in the service industry to make an
impression. Services generally tend to be intangible as the service cannot be caught or touched.
However, the service can always be felt. Services are intangible and at McDonald’s both
intangible and tangibles are utilized in the marketing mix. McDonald’s utilizes world class
standardized features for their internal décor and organization of the outlets (Yunus, Razak and
Ilias, 2013). However, in spite of the tangibles, inherent services at McDonald’s remains
intangible in nature. McDonald’s also faces the challenges that any service industry faces related
with the intangibility of the services offered.
Services at McDonald’s are intangible in nature and this implies that they cannot be
touched. This creates difficulty in developing concrete, tangible service offerings for the
consumers (Gronroos, 1978). Quality of services are difficult to assess because they lack search
quality (Lamb, Hair and McDaniel, 2012). Similarly, due to the intangible nature of the services
offered at McDonald’s, most of the services are difficult to assess and understand by the
consumers. Consumers only have experience quality and it is through their feedback that the
service providers understand the quality perception of the service.
Behind the décor at McDonald’s lies the amount of services that the employees invest in
keeping the consumers happy. The entire process from making of the product till the delivery of
the food item to the consumer is the service process (Yunus, Razak and Ilias, 2013). Service
quality is measured not by the quality of the end product served at McDonald’s but by the quality
of the service that creates perception within the mind of the consumer (Douglas and Connor,
2003). Quality is an important service process that is of utmost importance at McDonalds.
Quality depends a lot on customer perception and McDonalds has been able to generate positive
consumer behaviour with its various outlets and excellent services.
Perceived service quality is very important for success of any business and McDonald’s
has been able to concentrate on providing the right services to their consumers with the help of
various services. Another important characteristic of the services offered at McDonald’s is the
5
that the services will be similar always at all stores throughout the world. This why heterogeneity
is a part of the services offered at McDonalds.
Another important quality of services at McDonald’s is that they provide excellent
seating and décor. Physical facilities and equipment at McDonald’s forms the tangible part of the
business that can be seen. Tangibles are often employed in the service industry to make an
impression. Services generally tend to be intangible as the service cannot be caught or touched.
However, the service can always be felt. Services are intangible and at McDonald’s both
intangible and tangibles are utilized in the marketing mix. McDonald’s utilizes world class
standardized features for their internal décor and organization of the outlets (Yunus, Razak and
Ilias, 2013). However, in spite of the tangibles, inherent services at McDonald’s remains
intangible in nature. McDonald’s also faces the challenges that any service industry faces related
with the intangibility of the services offered.
Services at McDonald’s are intangible in nature and this implies that they cannot be
touched. This creates difficulty in developing concrete, tangible service offerings for the
consumers (Gronroos, 1978). Quality of services are difficult to assess because they lack search
quality (Lamb, Hair and McDaniel, 2012). Similarly, due to the intangible nature of the services
offered at McDonald’s, most of the services are difficult to assess and understand by the
consumers. Consumers only have experience quality and it is through their feedback that the
service providers understand the quality perception of the service.
Behind the décor at McDonald’s lies the amount of services that the employees invest in
keeping the consumers happy. The entire process from making of the product till the delivery of
the food item to the consumer is the service process (Yunus, Razak and Ilias, 2013). Service
quality is measured not by the quality of the end product served at McDonald’s but by the quality
of the service that creates perception within the mind of the consumer (Douglas and Connor,
2003). Quality is an important service process that is of utmost importance at McDonalds.
Quality depends a lot on customer perception and McDonalds has been able to generate positive
consumer behaviour with its various outlets and excellent services.
Perceived service quality is very important for success of any business and McDonald’s
has been able to concentrate on providing the right services to their consumers with the help of
various services. Another important characteristic of the services offered at McDonald’s is the
Service Quality and Service Efficiency at McDonalds
6
inseparable nature of the services. Inseparability implies that production of goods and their sale
occurs simultaneously giving little time to separate the impact of the two. At McDonald’s,
burgers and French fries are produced within the store and served fresh, giving very little time to
differentiate between the quality of the good and the quality of the service. This is relevant with
the idea presented by Shostack (1977) that when the mix of services and goods are closely
related, then there might be problems with defining the market as service or goods industry.
Another characteristic of the service industry is perishability of services. Perishability
implies the inability of services to last long without ending (Lamb, Hair and McDaniel, 2012).
Services cannot be stored or warehoused and this creates tremendous financial difficulty in the
service sector. However, perishability of services does not imply that goods cannot be
imperishable. At McDonald’s, the services provided by the employees are uniform but they can
end with end of day’s service.
Lack of ownership is another important feature of the service sector. Each service offered
at McDonald’s provide a unique experience. However, this experience cannot be bought and
hence it has to end (Edgett and Parkinson, 1993). Ownership
Market Segmentation at McDonald’s
Consumer behaviour is largely dictated by perception, which in turn is reliant upon
lifestyle, status, beliefs, attitude, motivation and experience. Consumer perception can be altered
by building trust and motivating consumers to buy specific products and services (Schiffman et
al., 2014). Understanding consumer behaviour helps the company to understand purchase
decisions. This in turn will help the company to make the right changes in their marketing mix to
draw a lot more consumers to their products and services. Factors that affect purchase decision
and product use are also important to understand how consumer behaviour is regulated (Lamb,
Hair and McDaniel, 2012).
Consumer behaviour depends on various factors and it is impossible to have same service
blueprint for different restaurant outlets located in different parts of the world. Customer
satisfaction plays an important role in developing consumer behaviour (Churchill and
Surprenant, 1982). McDonald’s outlets comes under the restaurant business and they have to
take into consideration the unique consumer behaviour while working in any market. For
6
inseparable nature of the services. Inseparability implies that production of goods and their sale
occurs simultaneously giving little time to separate the impact of the two. At McDonald’s,
burgers and French fries are produced within the store and served fresh, giving very little time to
differentiate between the quality of the good and the quality of the service. This is relevant with
the idea presented by Shostack (1977) that when the mix of services and goods are closely
related, then there might be problems with defining the market as service or goods industry.
Another characteristic of the service industry is perishability of services. Perishability
implies the inability of services to last long without ending (Lamb, Hair and McDaniel, 2012).
Services cannot be stored or warehoused and this creates tremendous financial difficulty in the
service sector. However, perishability of services does not imply that goods cannot be
imperishable. At McDonald’s, the services provided by the employees are uniform but they can
end with end of day’s service.
Lack of ownership is another important feature of the service sector. Each service offered
at McDonald’s provide a unique experience. However, this experience cannot be bought and
hence it has to end (Edgett and Parkinson, 1993). Ownership
Market Segmentation at McDonald’s
Consumer behaviour is largely dictated by perception, which in turn is reliant upon
lifestyle, status, beliefs, attitude, motivation and experience. Consumer perception can be altered
by building trust and motivating consumers to buy specific products and services (Schiffman et
al., 2014). Understanding consumer behaviour helps the company to understand purchase
decisions. This in turn will help the company to make the right changes in their marketing mix to
draw a lot more consumers to their products and services. Factors that affect purchase decision
and product use are also important to understand how consumer behaviour is regulated (Lamb,
Hair and McDaniel, 2012).
Consumer behaviour depends on various factors and it is impossible to have same service
blueprint for different restaurant outlets located in different parts of the world. Customer
satisfaction plays an important role in developing consumer behaviour (Churchill and
Surprenant, 1982). McDonald’s outlets comes under the restaurant business and they have to
take into consideration the unique consumer behaviour while working in any market. For
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
MKTG30003 - Service And Relationship Marketinglg...
|12
|3066
|43
Report on Consumer Service Policies of UK Wasabi Restaurantlg...
|16
|4385
|53
Case Study: Fine Dining Restaurant Frog by Adam Handlinglg...
|12
|3882
|246
Customer Journey Mapping and Service Blueprint for Fine Dining Restaurant Frog by Adam Handlinglg...
|13
|3966
|362
Marketing Analysis for Taco Time Restaurantlg...
|10
|2044
|347
Deconstruction of Business Modellg...
|10
|2006
|13