MKT202: Sales Promotion Impact in Fast Food Industry Research Proposal

This research proposal investigates the impact of sales promotion strategies employed by fast food companies on consumer purchasing behavior. The study begins with an introduction highlighting the concerns surrounding obesity and the role of fast food sales promotions. A literature review explores existing research on consumer behavior, brand image, and the effects of sales promotions on demand. The problem statement focuses on how consumers respond to sales promotions in the fast food industry, leading to specific research objectives, including assessing consumer attitudes toward advertisements, the impact of promotions on buying behavior, and their effect on sales. The research methodology outlines a qualitative approach utilizing survey methods, with both open-ended and closed questions, to gather data from participants regarding their perceptions and purchasing decisions. The study aims to uncover factors influencing consumer choices and contribute to a deeper understanding of the effectiveness of sales promotion within the fast food sector.

Introduction
Obesity is a grave problem facing the young population around the world
(Nhlbi.nih.gov, 2019). The fast food companies have to face the ire of the government and
NGOs demanding ban on the sales promotion strategies for increasing the sales volume of
fast food companies. It is a misconception that the sales promotion for fast food industry are
a prime cause for the increase in obesity rates around the world (Luxton, 2001). The
research study intends to study the impact of sales promotion of fast food industry on the
purchasing behaviour of consumer’s.
Literature review
There are numerous literature and study done on the study of the purchasing
behaviour of consumers. The purpose of this research study is to find out the impact of sales
promotion of fast food on the buying decision of consumers. A number of research have
proven that the sales promotion have a positive impact on the consumer purchasing
behaviour. However, it has to be proven the way it influences the purchasing intent in the
fast food industry as the same has been accused of promoting obesity.
The brand image of a company makes an influence on the people and helps to
develop a positive goodwill for the product. As per a study conducted on the purchasing
intent in China, the brand personality and the credibility of a corporation have a positive
effect on the purchasing behaviour of consumers. (Wang & Yang, 2011)
The main purpose of initiating sales promotion activity for any product is to increase
the overall demand for it. However, there is a misconception is that the sales promotion only
cause a shift in the brand’s share in fast food industry and does not contribute in the
increase of the totals sales of the junk food. As per a study done by Timothy Richards and
Luis Padilla, it has been proven that promotion largely enhances the demand for a particular
product. (Richards & Padilla, 2009)
Problem Statement
Fast food companies have great constraint on them from the perspectives of health
watchers and the administration as they are concerned about the health of the public. Sales
promotion activities are conducted to make the public aware about the benefits and
goodness of a product (Jallow and Dastane, 2016). Similarly, the fast food companies can
negate the various false information and rumours about their product and create a positive
image for themselves through the sales promotion activities. In such scenarios, it is
important to know the impact the sales promotion will have on the purchasing behaviour of
consumers.
Research problem
How does customers respond towards sales promotion in the fast food industry?
Research objectives

 Attitude of consumers towards the advertisement of fast food brands.
 Impact of sales promotion of fast food on consumers buying behaviour.
 Impact of sales promotion on the sale or demand of fast food
Research Method
A methodology is a structural and academically inclined process to employ particular
research study (Kothari, 2004). The study aims to research the opinion, and choices of the
customers towards the sales promotion campaign of fast food industry. Alternatively, it also
attempts to find if they contribute towards the increase in the overall sales of fast food or not.
Generally, the research method is categorised in two broad segments - quantitative and
qualitative methods. Qualitative Research is exploratory in nature has is employed to assess
the chief expectations and attitudes of the participants of the study (Rajasekar,
Philominathan, &Chinnathambi, 2006). Thus, the research study will implement the
qualitative research method as it is more appropriate for documenting the real feelings and
deeper understandings of the people taking part in the study about their purchasing
behaviours. By analysing the information gathered from the participants, the factors that
contribute to influencing the buying decisions of the consumers could be explained. The
research study would employ the survey method for collecting the data from the participants
in the form of a questionnaire. The questionnaire would be emailed to the participants who in
turn would record their views, perception and feelings about the research topic. After filling
the questionnaire, the participants would be asked to email it back. The survey would consist
of both open-ended as well closed questions. The survey method is chosen for the research
study as it enables the collection of the plain as well the complex thoughts of the participants
as they are able to explore their deeper views and perspectives, while answering the survey
questions.

References
Jallow, H. and Dastane, O. (2016). Effect of Sales Promotion Schemes on Purchase
Quantity: A Study of Malaysian Consumers. Management & Marketing, XIV(2), pp.299-320.
Kothari, C.R., 2004. Research methodology: Methods and techniques. New Age
International.
Luxton, S. (2001). Sales Promotion in the Australian Food Industry. Journal of Food
Products Marketing, 7(4), pp.37-55.
Nhlbi.nih.gov. (2019). Why Obesity Is a Health Problem. [online] Available at:
https://www.nhlbi.nih.gov/health/educational/wecan/healthy-weight-basics/obesity.htm
[Accessed 15 Apr. 2019].
Rajasekar, S., Philominathan, P. and Chinnathambi, V., 2006. Research methodology. arXiv
preprint physics/0601009.
Richards, T. and Padilla, L. (2009). Promotion and Fast Food Demand. American Journal of
Agricultural Economics, 91(1), pp.168-183.
Wang, X & Yang, Z, (2011), The impact of brand credibility and brand personality on
purchase intention: An empirical study in China, in Shaoming Zou, Huifen Fu (ed.)
International Marketing (Advances in International Marketing, Volume 21) Emerald
Group Publishing Limited, pp.137 - 153