Question

1. Construct a complete multiattribute model for four local restaurants. Include description of the restaurant.

2. Apply the Fishbein/Theory of Reasoned Action model of attitude formation and change to a prospective student. explain each part of the model.

Answer 1

1. Construct a complete multiattribute model for four local restaurants. Include description of the restaurant.

MULTI-ATTRIBUTE MODEL

Multi-attributes model seeks an understanding of the structure of customer decisions with respect to the market offerings of a firm and its competitors. Through such understanding the firm seeks to evaluate and/or design its offerings for greater customer satisfaction and profitability.

Multiattribute Attitude: The multiattribute attitude models The multiattribute attitude models state that a consumer's attitude towards an attitude object (product/service offering, brand, elements of the marketing mix) is a function of a consumer's perception and belief of the key attributes as well as his assessment of the key attributes.

Multiple Attribute Decision Making (MADM) involves "making preference decisions (such as evaluation, prioritization, selection) over the available alternatives that are characterized by multiple, usually conflicting, attributes".

Multi attribute utility theory: Decisions such as these involve comparing alternatives that have strengths or weaknesses with regard to multiple objectives of interest to the decision maker. Multi-Attribute Utility Theory (MAUT) is a structured methodology designed to handle the tradeoffs among multiple objectives.

FOUR RESTUARENTS AND THEIR MULTIATTRIBUTES

1 Mc Donald's

McDonald's Corporation (McDonald's), incorporated on December 21, 1964, operates and franchises McDonald's restaurants. The Company's restaurants serve a locally relevant menu of food and drinks sold at various price points in over 100 countries. The Company's segments include U.S., International Lead Markets, High Growth Markets and Foundational Markets and Corporate. McDonald's franchised restaurants are owned and operated under various structures, including conventional franchise, developmental license or affiliate. The Company is primarily a franchisor. Under a conventional franchise arrangement, the Company owns the land and building or secures a long-term lease for the restaurant location and the franchisee pays for equipment, signs, seating and decor.

Products: Hamburgers, chicken, french fries, soft drinks, milkshakes, salads, desserts, coffee, breakfast, wraps

Target customer: The main target customer for McDonald's includes parents with young children, young children, business customers, and teenagers. Perhaps the most obvious marketing for McDonald's is its' marketing towards children and the parents of young children.

Competitors: competitors in McDonald's' competitive set are KFC, Burger King, Subway, Starbucks, Dunkin' Brands, Pizza Hut, Wendy's, Domino's Pizza, Jack in the Box and Tim Hortons.

USP: USP of McDonald's is Quality, Service, Cleanliness & Value for money which means we focus on providing our customers high quality products, served quickly with a smile, in a clean and pleasant environment at an affordable price

2. Starbucks

Starbucks Corporation (Starbucks), incorporated on November 4, 1985, is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development. The Company purchases and roasts coffees that it sells, along with handcrafted coffee, tea and other beverages and a range of fresh food items, including snack offerings, through Company-operated stores. The Company also sells a range of coffee and tea products and licenses its trademarks through other channels, such as licensed stores, grocery and foodservice accounts. In addition to its Starbucks Coffee brand, the Company sells goods and services under various brands, including Teavana, Tazo, Seattle's Best Coffee, Evolution Fresh, La Boulange and Ethos.

Products: Coffee beverages, smoothies, tea, baked goods, sandwiches

Starbucks' target market:

• High Income, High Spenders. Starbucks' target market is often described as affluent or high income (around $90,000).
• Urban-ish, On-the-Go.
• Technology Early Adopters.
• Healthy-ish Professionals.
• Socially Conscious Customers.

Competitors: Starbucks top competitors include: Caffè Nero, Costa Coffee, Mc Café, Dunkin Donuts, Cafè Ritazza, Café Coffee Day, Coffee Republic, Dilmah Tea, KFC and Tim Hortons. The company has stores where it sells food to consume on the spot or to take away.

USP: The USP of Starbucks is a relatively simple one: premium coffee. It has never claimed to offer the cheapest coffee in town, but by offering their own style of an enriched upscale coffee experience, they have managed to carve out a large niche of coffee loving people.

3.Pizza Hut

Pizza Hut Inc. is the largest pizza restaurant company in the world in terms of both the number of outlets and the percentage of market share that it holds. A subsidiary of PepsiCo, Inc., the company oversees more than 11,000 pizza restaurants and delivery outlets in 90 countries worldwide. In October 1997, the company expected to become a subsidiary of Tricon Global Restaurants, Inc., formed from the spin-off of PepsiCo's restaurant holdings.

Products: Italian American cuisine pizza, Pasta

competitors: KFC, McDonalds, Dominos, Subway., Papa John's Pizza., Smokin Joes Pizza, Taco Bell.

Customers: Children and youth from middle and upper class

USP: Pizza Hut gives good service, ambience and tasty fresh pizzas at outlets

4.KFC

KFC Corporation is the largest fast-food chicken operator, developer, and franchiser in the world. KFC, a wholly owned subsidiary of PepsiCo, Inc. until late 1997, operates over 5,000 units in the United States, approximately 60 percent of which are franchises. Internationally, KFC has more than 3,700 units, of which two-thirds are also franchised. In addition to direct franchising and wholly owned operations, the company participates in joint ventures, and continues investigating alternative venues to gain market share in the increasingly competitive fast-food market. In late 1997 the company expected to become a wholly owned subsidiary of Tricon Global Restaurants, Inc., to be formed from the spin off of PepsiCo's restaurant holdings.

MULTI-ATTRIBUTES

Products: Fried chicken, Chicken sandwiches, Wraps, French fries, Soft drinks, Salads, Desserts, Breakfast, Krushers (Milkshakes)

Product Benefits • The biggest thing that KFC has going for them and what they need to push the most is the convenience that comes with their offerings. • They have made great strides in trying to diversify and differentiate their brand by hanging onto the trademark recipes that have made them famous, while also catering to a new customer base with their healthier grilled options. • It offers an additional alternative to your standard burger joints which are overly abundant.

Target Audience • Typical customers are adults ages 25-54 who are in occupations ranging from white collar office jobs to blue collar construction jobs. The biggest part of their customer base makes between $50,000 and $60,000 dollars a year and are married with children. • These customers are living fast-paced lives in which they have to balance the heavy demands of work and life. As a result of this, lunch and dinner occasions are becoming shorter and the thing that has the greatest impact on their choice of food and drink purposes is convenience.

Competition • KFC faces competition from a number of fast food companies which include Arby’s, Boston Market, Burger King, Cajun Operating Company, Chick-fil-A, CKE Restaurants, Subway, Dairy Queen, Jack in the Box, McDonald’s, Popeye’s, Quiznos, Sonic Corp. and Wendy’s.

Chicken Competitors: Popeyes, Chik-fil-A, and Church’s Chicken.

Competitive Advertising • Popeye’s has positioned themselves as the Louisiana style chicken which promotes their pride in their Cajun roots. • In addition to Chick-fil-A’s humorous “Eat Mor Chikin” campaign which you frequently see on highway billboards and TV commercials, they have tried to segment themselves from the rest of the fast food chicken restaurants by stressing how important customer service is to them. • Church’s Chicken radio, TV and print ads have made them known as the fast food chicken that ultimately makes your life better with their slogan “Full Flavor. Full Pockets. Full Life.”

2. Apply the Fishbein/Theory of Reasoned Action model of attitude formation and change to a prospective student. explain each part of the model.

Fishbein model of consumer behaviour (also called theory of planned behavior or theory of reasoned action) attempts to explain the rationality of choice of the product by the consumer by using measure of his overall attitude towards object.

Martin Fishbein and his associates have proposed a series of models like

a) The attitude-toward-object model

b) The attitude-toward-behavior model

c) The theory-of-reasoned-action model.

a) The Attitude-towards-Object Model: The attitude-toward-object model states that a consumer’s attitudes towards a product/service offering or a brand, is a function of the presence or absence of certain attributes, and the corresponding evaluation.

b). The Attitude-towards-Behavior Model: The attitude-toward-behavior model focuses on the individual’s acts of behavior towards the attitude object rather than mere affect or feeling towards the object. The premise is that a consumer may have positive feelings towards an attitude object, but he may have a negative attitude regarding his intention for buying such a product/service offering. Thus, a positive attitude towards the offering may not necessarily end up as an act of purchase.

c). The Theory-of-Reasoned-Action Model: The theory of reasoned action model attempts to study the impact of i) instances of behavior, and ii) subjective norms. The model can be explained working backwards from behavior (i.e. act of purchase of a product/service offering). The behavior of a consumer is based on his intention to act, i.e. overall favorability toward the purchase. There are certain factors that lead to an intention to act. These are the consumer's attitude toward behavior and the subjective norm. The consumers’ attitude towards behavior includes the beliefs and attitudes about specific acts of behavior. Factors underlying attitude are i) beliefs that the behavior leads to certain outcomes; and ii) evaluation of the outcome (EFFECT OF WHAT WE BELIEVE OTHER PEOPLE THINK WE SHOULD DO.