Comparing the competitive advantages between McDonald and KFC, for young consumers in Hsinchu area. Professor: Dr. Trappey Students: 陳嘉麟 蔡林龍 吳晉瑋

Introduction

Literature review In Taiwan, McDonald grew up fast and successfully with flexible marketing strategies and QSC&V (Guang-Shiash Hu, 2000), Although McDonald adopted the marketing strategy of cutting prices, the consumers will not increase their consuming amount. (Wei-Hua Chen, Chia-Chun Tsai, 2003) Only the improvement of utility and enjoyment will raise up consuming amount (Yi-Wen Wang & Ming-Tsung Lee,2005). Define the problem and market research questions. Comparing the competitive advantages between McDonald and KFC. The target population is the young consumers (under 30) in Hsinchu City.

Methodology

Hypotheses Survey Statistical Analysis Research Finding Conclusionssuggestions Research Framework:

We will use the approach of setting up a questionnaire concerning customers’ preference. and collect results from young consumers in Hsinchu area, to compare the advantages between Macdonald and KFC when customers choose western fast food chains. The Hypothesis were shown below Hypothesis1 To compare with KFC ， ”Environment” is a competitive advantage of McDonald Hypothesis2 To compare with KFC ， ” Food selection” is a competitive advantage of McDonald Hypothesis3 To compare with KFC ， ”Price” is a competitive advantage of McDonald Hypothesis4 To compare with KFC ， ”Brand image” is a competitive advantage of McDonald Hypothesis5 To compare with KFC ， ”Service” is a competitive advantage of McDonald Hypothesis6 To compare with KFC ， ”Taste of Food” is a competitive advantage of Macdonald

Data Collection Plan: What: to compare with the advantages of Macdonald and KFC in young consumers in Hsin-Chu Where: Macdonald and FKC in kung-Fu Rd. Who: Young Consumers (under 30 years old) When: 23 May How: Adopting questionnaires How many: 70 valid questionnaires

Results and Finding

Beliefs of Young Consumers: When young consumers selected a fast food restaurant, they care about the service and taste of food most.

Hypothesis 1 : To compare with KFC ， ”Environment” is a competitive advantage of McDonald Hypothesis: H a : μ M >μ KFC Two-sample T for Mac. vs KFC N Mean StDev SE Mean Mac KFC Difference = mu (Mac.) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 0.04 P-Value = DF = 13 P-value>0.05, Do not Reject H 0, Environment is not a competitive advantage of McDonald

Two-sample T for Mac vs KFC N Mean StDev SE Mean Mac KFC Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = P-Value = DF = 138 Hypothesis: H a : μ M >μ KFC P-value>0.05, Do not Reject H 0, Food selection is not a competitive advantage of McDonald Hypothesis 2 : To compare with KFC ， ”Food selection” is a competitive advantage of McDonald

Two-sample T for Mac vs KFC N Mean StDev SE Mean Mac KFC Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 1.81 P-Value = DF = 130 Hypothesis 3 : To compare with KFC ， ”Price” is a competitive advantage of McDonald Hypothesis: H a : μ M >μ KFC P-value<0.05, Do not Reject H 0, Price is a competitive advantage of McDonald

Hypothesis 4: To compare with KFC ， ”Brand image” is a \ competitive advantage of McDonald Two-sample T for Mac vs KFC N Mean StDev SE Mean Mac KFC Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 1.44 P-Value = DF = 138 Hypothesis: H a : μ M >μ KFC P-value>0.05, Do not Reject H 0, Brand image is not a competitive advantage of McDonald

Two-sample T for Mac vs KFC N Mean StDev SE Mean Mac KFC Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 1.54 P-Value = DF = 138 Hypothesis 5: To compare with KFC ， ”Service” is a competitive advantage of McDonald Hypothesis: H a : μ M >μ KFC P-value>0.05, Do not Reject H 0, Service is not a competitive advantage of McDonald

Hypothesis 6: To compare with KFC ， ”Taste of Food” is a competitive advantage of Macdonald Two-sample T for Mac vs KFC N Mean StDev SE Mean Mac KFC Difference = mu (Mac) - mu (KFC) T-Test of difference = 0 (vs >): T-Value = 0.74 P-Value = DF = 138 Hypothesis: H a : μ M >μ KFC P-value>0.05, Do not Reject H 0, Food is not a competitive advantage of McDonald

FactorsBlief Mean (Belief times Rating) STDDV (Belief times Rating) T- value P- value McDonaldKFCMcDonaldKFC Environme nt Food Selection Price *0.037* Brand Image Service Taste of Food Summary Table of Test:

Conclusions & Suggestions

Conclusions: (1) When young consumers selected a fast food restaurant, they care about the service and taste of food most. In order to increase the market share of young consumers, restaurants have to put most effort on the service and taste of food. (2) Young consumers consider that the McDonald provided a more reasonable price than KFC. To McDonald, it’s a advantage to KFC and should be maintained. On the other hand, KFC should make a detail research about the reason why young consumers have such recognition about the price of two restaurants. (3) We found that every factor, the all standard deviation of McDonald were greater than KFC. It possibly means that young consumers give the more diverse rating on McDonald. (4) We got the marginal p-value on service and taste of food and that could be the latent competitive advantages of McDonald.

Suggestions: This is just an explorative research. Seventy questionnaires maybe not sufficient to get the precise results. Enlarge the number of the respondents is the first suggestion in future research. Moreover, most our respondents are senior high school students, we may lack the opinions of college students and others who are under 30 years old. Why young consumers think the price of McDonald are more reasonable, a detail research is needed.

Thanks for your Attention Professor: Dr. Trappey Students: 陳嘉麟 蔡林龍 吳晉瑋