How Service Quality Impacts Customer Loyalty: McDonald's Analysis

This project investigates the relationship between service quality and customer loyalty within the restaurant industry, focusing on McDonald's as a case study. The research includes an introduction defining service quality and its importance in achieving customer loyalty, especially in a competitive market. The project sets out research aims and objectives, including improving service quality, measuring its effectiveness, and identifying strategies to increase customer loyalty. The literature review explores various methods McDonald's uses to improve service quality, such as marketing mix, Six Sigma, and lean production, along with operational management practices. The research methodology outlines qualitative and quantitative methods, with a justification for choosing the qualitative method, and details the data collection process using secondary data. The findings are structured around themes, including ways McDonald's improves service quality and effective methods to achieve customer loyalty, such as post-service ratings and mystery shopping. The project also discusses ways to enhance customer loyalty, such as prioritizing customer service, offering rewards, and seeking customer feedback. The report provides a comprehensive analysis of the factors that contribute to customer loyalty in the restaurant industry.

Project

Contents
TITLE: How does Service quality help to achieve customer loyalty in the restaurant industry. A
study on McDonald's........................................................................................................................3
INTRODUCTION...........................................................................................................................3
Research objectives................................................................................................................3
Research question:..................................................................................................................3
LITERATURE REVIEW................................................................................................................4
Various ways used by McDonald’s in improving service quality for attaining customer loyalty
within 3 months......................................................................................................................4
Effective methods of service quality that help in attaining customer loyalty at marketplace 4
Ways for increasing customer loyalty towards McDonald’s in the period of 1 month..........4
RESEARCH METHODS................................................................................................................4
FINDINGS.......................................................................................................................................4
Conclusion, Evaluation and Recommendations..............................................................................4
REFERENCES................................................................................................................................5

TITLE: How does Service quality help to achieve customer loyalty in the
restaurant industry. A study on McDonald's
INTRODUCTION
Service quantity is defined as a comparison of perceived expectations with the perceived
performance. In addition to this, an organization with high service quality exceed customer
expectation and remain competitive at marketplace. The service quality measures how well a
service is resolved. It is important for an organization to ensure that high quality service and
experience is provided to customers as it help in retaining them for longer time period and attain
customer loyalty as well (Cheng and et. al., 2019). There are various dimensions of service
quality that is reliability, responsiveness, tangibles, safety and many more. For the present study,
McDonald’s is taken into consideration. It is an American fast food company that was
established in year 1940. The company headquartered in California, United States and at present
it has more than 39,000 restaurants worldwide. The report will cover about how service quality
help an organazation to achieve customer loyalty which is important in order to retain this
competitive business environment for longer timeframe.
Research aim: “To identify how service quality help an organisation to achieve customer
loyalty in the restaurant industry”. A study on McDonald's
Research objectives
 To improve service quality within 3 months with the purpose of achieving customer
loyalty.
 To measure service quality through effective 2 methods that help in attaining customer
loyalty at marketplace.
 To identify the 3 ways for increasing customer loyalty towards McDonald’s in the period
of 1 month.
Research question:
 What are the various ways used by McDonald’s in improving service quality for attaining
customer loyalty within 3 months?
 What are the 2 effective methods of service quality that help in attaining customer loyalty
at marketplace?

 What are the 3 ways for increasing customer loyalty towards McDonald’s in the period of
1 month?
LITERATURE REVIEW
Various ways used by McDonald’s in improving service quality for attaining customer loyalty
within 3 months
According to the Aymar Raduzzi and Joseph Eric Massey (2019), customers satisfaction is
the key step to reach success in the business industry, which can be achieve by the various
factors such as product, quality, variety, quality etc. On the basis of their research marketing mix
is the very important influencer of customers satisfaction. It provide the framework to briefly
assess the customers needs and plan the product development and promotion strategies. Another
important methods which use to make the proper analysis of customers quality issues related to
products, is six Sigma and lean production tools. These tools provide the framework to analyze
the errors, statics of the errors and root causes of the problems which can be further improved
with the best solutions and control with proper regulation and risk management. Then lean
production implement those improvement in the production methods to regulate the wastage and
maximize the productivity with good quality and relevant resources consumption. It can help to
offer the products in the market with best cost effective strategy (Raduzzi and Massey, 2019).
Along with the quality management business in tools and models there some important
operational management practises done by the McDonald’s. Such as Hazard analysis critical
control point plan, safe and healthy manufacturing practices. Including food security and crises
management programs.
Effective methods of service quality that help in attaining customer loyalty at marketplace
According to Pascal, 2016, there are various methods which will help the organisation in
measuring their customer’s quality. This is because it will assist them in better attaining their
customer’s loyalty which will help in the growth and development of company. Various methods
used by company is mention below:
Post service rating- As per this this method the organisation will ask their customers to
rate their service just after they will receive the delivery of their product. For taking their
feedback company will use various tools such as their customers will response from their email
inbox and also done in phone support. In this method the customer will require to provide rating

between the numbers of 1 to 10 as per their satisfaction level. Other than this they can also use 5
star system in their live chat rating. This will help company to effectively measure the quality of
their services (Measuring service quality- Your guide to customer service metrics, 2020).
Mystery shopping- This is another technique which is used by most of the hotels and
restaurants but work for any other service also. As per this method it will consist the hiring of
some undercover customers for taste the service quality. These undercover agents will assesses
the service based on a number of criteria. This method will help company to better analysis how
their employees will work and provide services to their customers. It was consider as the best
tool as it will also help company to check the efficiency of their employees along with measure
the quality of service.
Ways for increasing customer loyalty towards McDonald’s in the period of 1 month
As per the view point of Lisa, (2020), Customer loyalty is basically the measure of
consumer willingness who spent or repeat business with the brand. In addition to this, customer
loyalty is the key step that help an organization to gain higher growth and success. It is analyzed
that respective organization make use of several strategies for enhancing and improving
customer loyalty. One of the strategy is make customer service a priority. It is determined that
customer evaluate every interaction with the employees and then make judgements to repeat
purchases therefore it is vital to focus on customer orders and queries first. In addition to this,
provide rewards to customer and set up loyalty programs which give them discounts, exclusive
offers and gifts help McDonald’s to increase customer loyalty in an effective manner (Khan,
Zubair and Malik, 2019). It is analyze that all the customers want to feel appreciated and choose
to spend their money where they feel satisfied. Apart from this, taking feedback and ask for
advice to customers towards their offerings is one of the effective strategy for increasing
customer loyalty. It is determined that taking feedback is the great manner to show customers
that they are important and valued within the organization. Apart from this, offer convenience
and providing easy checkout procedure to customers assist company to attract them towards the
brand. Apart from this, there are also other ways by which McDonald’s can improve customer
loyalty such as personalize customer loyalty, implement a VIP program, communicate with
customers, ask for feedback and act on it. All this will help respective organization to gain
customer loyalty towards the brand within the period of one month.

RESEARCH METHODS
Research methodology is the process which is used by investigator for collecting as well as
analyzing information and data in an effective manner. It help researcher to analyze the validity
and reliability of investigation. The research methodology assist to collect data and convert them
into meaningful conclusion. The different types of research methodology used in the present
study is given below:
Qualitative method: It is considered as an important method of research which help to
collect detail information about participants. The various methods of collecting qualitative
information are focus group, interview and many more. The data gathered in this method is non
numeric which help to reach appropriate conclusion.
Quantitative method: In this, statistical techniques and methods are used in order to reach
towards appropriate conclusion (Lee, Kang and Kang, 2019). Herein, information is measured in
numerical manner that assist to get desired result within predefined time period.
For the present study, qualitative method is used by researcher as it help to reach appropriate
conclusion with the assistance of detailed information. In addition to this, it also help in gaining
in-depth knowledge about topic due to which valid and reliable conclusion can be drawn by
researcher in an effective manner.
Data collection: In order to gather knowledge about research topic, it is important to collect
valid and reliable information. There are mainly two types of data collection techniques that is
primary and secondary which are as follows:
Primary data: It is defined as the data which is collected for the first time and is original
in nature. There are various methods of collecting primary data that is interview, observation,
Saturday and many more. It is determined that there is high relevancy as well as authentication
within the primary research as data is collected by researchers from the respondents.
Secondary data: it is an important method of data collection which is used widely by
researchers. Herein, data is collected from journals from articles, websites and so on. This data
help in gaining authentic information as it is already collected from the professionals and
experts.
For the present study, secondary data collection method is used by researcher as it help in
gathering data within minimum possible time period which leads towards meaningful conclusion

(Luo and et. al., 2019). In addition to this, it will also help researcher to gain detailed information
in a cost effective and timely manner.
FINDINGS
Theme 1: Various ways used by McDonald’s in improving service quality for attaining
customer loyalty within 3 months
From the above discussion it has been analysed that, for the management of project
qualities and its improvement there are the various business tools and frameworks which helps to
make proper analysis of the errors and improve it with the proper planning. But along with the
business tools and frameworks in context to the food industry another important methods and
practices for quality improvement is Different safety and risk management practices, explaining
below in context to MacDonald.
 Marketing mix- That is very important business operation planning tool which helps to
make the proper description of products, quality, variety, design along with consideration
of price , place, promotion. McDonald’s tools in order to manager quality issues within 3
months.
 Six Sigma- this is another very essential way of managing customers quality issues
related to product, because it helps to make the step by analysis problems along with the
development of new solution and control strategy. Datas involving 5 steps define,
measurement, analysis, improve and control (Rosa, 2019). So that is use by the
McDonald’s to make proper understanding of issues and improvement of that.
 Lean production- this helps to reduce unwanted use of resources and maximize the
productivity along with the consideration of best quality.
 Food security program – this facility proper understanding of food safety standards and
it’s implementation within the food processing and storage operations.
 HACCP -This is a hazard analysis and Critical control point plan- which helps to conduct
the proper risk assessment and management of processing area of the organisation. In
order to prevent the any risk related to food and health safety (Zhang and Patrick, 2021).
Theme 2: Effective methods of service quality that help in attaining customer loyalty at
marketplace

From the above discussion it was analysis that a both the methods used by company will
help them in effectively analyzing the quality of their service. This is because better quality of
service means company will provide higher satisfaction level to their customers. Which will
assist them to achieve the long term loyalty of their customers which make company to achieve
higher growth and profitably. It was find from the above two methods that with the help of these
methods company will effectively analysis its quality of service. Such as with the help of post
service rating Technique Company will take direct feedback from their customers related to the
product and service they will consume. This method will help company in timely analyzing the
problem faced by their customers in the problem. It will provide the correct value or satisfaction
that their customers will achieve from their service. It was analysis that with the help of this
rating company will easily find out the level of their service and also able to take correct steps if
require. On the other hand it was analysis that Mystery shopping method is also an effective
technique which is used by an organisation (Slack, Singh and Sharma, 2020). This technique will
not only help company to analysis the quality of their service but also with the help of this
service the employer is able to analysis the efficiency of their employees. In last it was find out
that with the help of these measures an organisation will take effective steps for achieving their
customers loyalty.
Theme 3: Ways for increasing customer loyalty towards McDonald’s in the period of 1 month
It is analyzed from the above discussion that customer loyalty is one of the important
factor which assist an organization to retain at marketplace for longer time. It develop positive
brand image in an effective manner. In addition to this, it is analyzed that it is important for a
business entity to ensure customer satisfaction as it help in retaining them for longer time period.
It is determined that there are various ways by which McDonald’s can improve its customer
loyalty such as the loyalty program, communicate with customers, take feedback, prioritize
customer service, using new technologies, offer convenience and so on. All this will help
organization to not only attract customers but also develop high customer base at marketplace
(Wang, 2019). All this will help organization in making customer feel valued and important for
company. Moreover, it also help respective business to increase customer loyalty within the
period of one month. This impact positively on the profitability and growth of company in an
appropriate manner.

Conclusion, Evaluation and Recommendations
From the above discussion, it has been concluded that service quality is one of the essential
factor which help an organization to retain its customers and develop loyalty towards the brand.
In addition to this, it help company to maintain its performance level and attain competitive
advantage at marketplace. It is important for an organization to focus on providing high customer
service quality and experience as ii develop positive mindset towards the brand due to which
customers did not shift to any other brand which is offering the same product and services. It is
determined that there are various methods of service quality such as post service rating, mystery
shopping and many more which help in gaining customer loyalty. It is determined that it is vital
for business entity to analyze the requirements of customers and then provide them offerings so
that they feel satisfied and stay with the organization for longer time. All this will help respective
organization to maintain its performance level, develop brand image, gain profits and attain
higher growth within the market.
Recommendations:
 It is recommended to the higher authorities of McDonald’s to develop customer loyalty
programs and schemes as it help in retaining them for longer time frame and maintain
performance as well.
 In addition to this, it is suggested to respective organisation to take continuous reviews
from customer and make improvements as it make customer feel valued and important
for organisation and develop positive mind-set towards the brand. All this will lead to
increase in loyal customer base of McDonald’s that impact positively on its growth and
success.

REFERENCES
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