Fast Food Industry: Brand Association and Perceived Quality Influence on Purchase Intention of Millennial Consumers

Clarissa Reyes Magbanua, Trixine Marie Gatdula Olfato, Anne Cheri Marie Nocon Redota, Antonio Jr. Etrata

Abstract


Fast food restaurants often attract their target consumers with their taste, price, and level of customer service. Specific dimensions must also be considered when making purchases to attract customers to these restaurants. This study aims to give new entrants in the fast food business a basis for what they should concentrate on to draw in Generation Y customers. 385 participants received an online survey, and descriptive statistics, PLS-SEM, WARP PLS Version 7.0, and SPSS Version 20 were utilized to examine the quantitative data. Results showed that respondents regarded service quality as the most significant factor, meaning it is more important that employees treat them well in a fast food restaurant for them to return from the same restaurant. On the other hand, brand association is not as crucial as the other factors. Nonetheless, it still influences the purchase intention in the industry through the awareness it provides regarding updates on the new entrants to fast food in the Philippines.


Keywords


Fast Food; Brand Association; Perceived Quality; Millennials; Purchase Intention

Full Text:

PDF

References


Philippines. Test: Engineering & Management, 1736–1749. https://www.academia.edu/45716705/Marketing_Strategies_of_Food_Service_Industry_in_the_Province_of_Isabela_Philippines

Aji, P. M., Nadhila, V., & Sanny, L. (2020). Effect of social media marketing on Instagram towards purchase intention: Evidence from Indonesia’s ready-to-drink tea industry. International Journal of Data and Network Science, 4(2), 91–104. https://doi.org/10.5267/j.ijdns.2020.3.002

Amir, A. M. (2021). The Impact Of Food Quality, Service Quality, And Physical Environment Toward Customer Satisfaction On KFC. Jurnal Ilmiah Mahasiswa FEB, 1–17. https://jimfeb.ub.ac.id/index.php/jimfeb/article/view/7369

Amora, J., Ochoco, M., & Anicete, R. (2016). Student engagement and college experience as the mediators of the relationship between institutional support and academic performance. Digital Journal of Lasallian Research, (12), 15–30.

Ariffin, S. K., Ng, F., & Abdul, A. M. (2021). Examining The Influencing Factors Of Consumer Purchase Intention Toward Fast Food With Health Concerns As A Moderator. Journal of Entrepreneurship, Business and Economics, 9(2), 40–71. https://scientificia.com/index.php/JEBE/article/view/154

Awaan, A. G., & Nawaz, M. (2015). Socio - Economic Determinants of Fast Food Industry Growth in Paki. Food Science and Quality Management, 43, 36–47. https://www.iiste.org/Journals/index.php/FSQM/article/view/25570

Banzon, L. (2017, October). Jollibee Foods Corp (Jfc): The Champ Of Fast Food. Cfa Institute Asia-Pacific Research Exchange (ARX). https://www.arx.cfa/~/media/65653A3084484EEF9A9B38396D59A2BC.ashx#:~:text=In%202015%2C%20JFC%20maintains%20its,Red%20Ribbon%20and%20Burger%20King.

Brunjes, K. (2022, April 20). Age Range by Generation. Beresford Research. Retrieved September 7, 2022, from https://www.beresfordresearch.com/age-range-by-generation/

Canny, I. U. (2013). The Role of Food Quality, Service Quality, and Physical Environment on Customer Satisfaction and Future Behavioral Intentions in Casual Dining Restaurant. SSRN Electronic Journal, 1–10. https://doi.org/10.2139/ssrn.2363339

Chen, T. Y., Yeh, T. L., & Jheng, W. S. (2013). Factors influencing brand association. African Journal of Business Management, 7(19), 1915–1926. https://doi.org/10.5897/AJBM11.2462

Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research, 295(2), 295–336.

Choi, J., & Seo, S. (2019). When a stigmatized brand is doing good. International Journal of Contemporary Hospitality Management, 31(9), 3447–3464. https://doi.org/10.1108/ijchm-10-2018-0806

Chiu, W., & Leng, H. K. (2015). Consumers’ intention to purchase counterfeit sporting goods in Singapore and Taiwan. Asia Pacific Journal of Marketing and Logistics, 28(1), 23–36. https://doi.org/10.1108/apjml-02-2015-0031

Chun, S. H., & Nyam-Ochir, A. (2020). The Effects of Fast Food Restaurant Attributes on Customer Satisfaction, Revisit Intention, and Recommendation Using DINESERV Scale. Sustainability, 12(18), 1–19. https://doi.org/10.3390/su12187435

Civelek, M. E., & Ertemel, A. V. (2020, January 30). The Role of Brand Equity and Perceived Value for Stimulating Purchase Intention in B2C e-Commerce Web Sites. Business and Economics Research Journal, 10(1), 233–243. https://doi.org/10.20409/berj.2019.165

Dada, M. H. (2021). Impact of Brand Association, Brand Image & Brand Loyalty on Brand Equity. Journal of Marketing Strategies, 3(1), 29–43. https://doi.org/10.52633/jms.v3i1.33

Decker, A. (2021, December 14). The Ultimate Guide to Customer Acquisition for 2022. HubSpot. Retrieved March 25, 2022, from https://blog.hubspot.com/service/customer-acquisition

Demirović-Bajrami, D., Simat, K., Vuksanović, N., & Cimbaljević, M. (2020). Attitudes and habits of young adults in using the services of fast food restaurants. Marketing, 51(3), 200–209. https://doi.org/10.5937/markt2003200d

Department of Trade and Industry. (2021). Cities and Municipalities Competitiveness Index. CMCI. https://cmci.dti.gov.ph/rankings-data.php?unit=Highly%20Urbanized%20Cities

Dimock, M. (2022, March 7). Defining generations: Where Millennials end and Generation Z begins. Pew Research Center. Retrieved March 25, 2022, from https://www.pewresearch.org/fact-tank/2019/01/17/where-millennials-end-and-generation- z-begins/

Doctora, A. L., Perez, W. D., Sanchez, F. N., Vasquez, A., & Borres, R. (2021). Application of Analytical Hierarchy Process in the Comparison of Jollibee, McDonald’s, and KFC In-House Online Delivery System. Proceedings of the International Conference on Industrial Engineering and Operations Management, 1888–1896. https://research.ebscomedical.com/eds?search=y&query=%22Perez%2C+William+Davin+D%2E%22&type=AR&searchfield=AU

Dharmesti, M., Dharmesti, T. R. S., Kuhne, S., & Thaichon, P. (2021). Understanding online shopping behaviours and purchase intentions amongst millennials. Young Consumers, 22(1), 152–167. https://doi.org/10.1108/YC-12-2018-0922

Fornell C., & Larcker, D. F. (1981). Evaluating structural equation models with unobserved variables and measurement error. Journal of Marketing Research, 18(1), 39–50. http://doi.org/10.2307/3151312

Ghoochani, O. M., Torabi, R., Hojjati, M., Ghanian, M., & Kitterlin, M. (2018). Factors influencing Iranian consumers’ attitudes toward fast-food consumption. British Food Journal, 120(2), 409–423. https://doi.org/10.1108/bfj-12-2016-0612

Hair, J. F., Ringle, C. M. & Sarstedt, M. (2010). PLS-SEM: Indeed, a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139 – 151.

Hanaysha, J. R. (2021). An examination of social media advertising features, brand engagement and purchase intention in the fast food industry. British Food Journal. https://doi.org/10.1108/bfj-08-2021-0907

IBISWorld. (2021a, October 28). Fast Food Restaurants in the US - Market Size 2002–2027. IBISWorld - Industry Market Research, Reports, and Statistics. Retrieved March 25, 2022, from https://www.ibisworld.com/industry-statistics/market-size/fast-food-restaurants-united-states/

IBISWorld. (2021b, October 28). Fast Food Restaurants in the US - Number of Businesses 2002–2027. IBISWorld - Industry Market Research, Reports, and Statistics. Retrieved March 25, 2022, from https://www.ibisworld.com/industry-statistics/number-of-businesses/fast-food-restaurants-united-states/

Jaafar, S. N., Lalp, P. E., & Naba, M. M. (2012). Consumers’ Perceptions, Attitudes and Purchase Intention towards Private Label Food Products in Malaysia. Asian Journal of Business and Management Sciences, 2(8), 73–90. https://www.researchgate.net/profile/Siti-Jaafar 5/publication/312762017_Consumers’_perception_attitudes_and_purchase_intention_towards_private_label_food_products_in_Malaysia/links/5b8b39ac299bf1d5a737f4a6/Consumers-perception-attitudes-and-purchase-intention-towards-private-label-food-products-in-Malaysia.pdf

Janssen, H. G., Davies, I. G., Richardson, L. D., & Stevenson, L. (2017). Determinants of takeaway and fast food consumption: a narrative review. Nutrition Research Reviews, 31(1), 16–34. https://doi.org/10.1017/s0954422417000178

Jollibee Food Corporation. (n.d.). STORE DIRECTORY & AVAILABLE SERVICES. https://stores.jfc.com.ph/jollibee.php

Juneja, P. (n.d.). Customer Acquisition - Meaning and its Process. MSG - Management Study Guide. Retrieved March 25, 2022, from https://www.managementstudyguide.com/customer-acquisition.htm

Khan, A., Mohammad, A. S., & Muhammad, S. (2020). An integrated model of brand experience and brand love for halal brands: survey of halal fast food consumers in Malaysia. Journal of Islamic Marketing, 12(8), 1492–1520. https://doi.org/10.1108/jima-11-2019-0236

Kircova, I., Yaman, Y., & Kose, S. G. (2018). Instagram, Facebook or Twitter: Which Engages Best? A Comparative Study of Consumer Brand Engagement and Social Commerce Purchase Intention. European Journal of Economics and Business Studies, 4(1), 268–278. https://doi.org/10.26417/ejes.v4i1.p268-278

Kock, N. (2017). WarpPLS user manual: Version 6.0. ScriptWarp Systems: Laredo, TX, USA, 141.

Liu, B., Widener, M., Burgoine, T., & Hammond, D. (2020). Association between time-weighted activity space-based exposures to fast food outlets and fast food consumption among young adults in urban Canada. International Journal of Behavioral Nutrition and Physical Activity, 17(1). https://doi.org/10.1186/s12966-020-00967-y

Liu, C. H., & Liao, C. W. (2019). The Impact of Key Factors of the Fast Food Restaurant on Purchase Intention. Global Journal of Business Research, 13(1), 93–107. https://ssrn.com/abstract=3408220

Mackintosh, A. C., & Didia, J. U. D. (2020). Brand Association and Customer Satisfaction of Fast Food Firms in Rivers State. International Academic Journal of Management and Marketing, 6(6), 1–10. http://www.arcnjournals.org/images/NRDA-IAJMM-6-6-1.pdf

Maslikhan, M. I. (2019). The Effect of Negative Publicity on Brand Equity (Image Attitude, and Purchase Intention) in Indonesia: Case of Dolce and Gabbana Racism Scandal. International Journal of Business and Administrative Studies. https://doi.org/10.20469/ijbas.5.10004-3

Mohd Yusof, Y. L., Wan Jusoh, W. J., & Maulan, S. (2020). Perceived quality association as determinant to re-patronise Shariah-compliant brand restaurants. Journal of Islamic Marketing, 12(2), 302–315. https://doi.org/10.1108/jima-10-2018-0190

Namin, A. (2017). Revisiting customers’ perception of service quality in fast food restaurants. Journal of Retailing and Consumer Services, 34, 70–81. https://doi.org/10.1016/j.jretconser.2016.09.008

Ng, S. C., Sweeney, J. C., & Plewa, C. (2020). Customer engagement: A systematic review and future research priorities. Australasian Marketing Journal, 28(4), 235-252. https://doi.org/10.1016/j.ausmj.2020.05.004

Nguyen, Q., Nisar, T. M., Knox, D., & Prabhakar, G. P. (2018). Understanding customer satisfaction in the UK quick service restaurant industry. British Food Journal, 120(6), 1207–1222. https://doi.org/10.1108/bfj-08-2017-0449

Nunnally, J. C. (1978). Psychometric theory. New York, NY: McGraw Hill.

Nunnally, J. C., & Bernstein, I.H. (1994). Psychometric theory. New York, NY: McGraw Hill.

Özkan, A. H. (2016). Weaknesses of Servqual whıch Resources from Cognıtıve Dıfferences. International Journal of Business and Social Research, 6(11), 34. https://doi.org/10.18533/ijbsr.v6i11.1004

Pérez-Villarreal, H. H., Martínez-Ruiz, M. P., & Izquierdo-Yusta, A. (2019). Testing Model of Purchase Intention for Fast Food in Mexico: How do Consumers React to Food Values, Positive Anticipated Emotions, Attitude toward the Brand, and Attitude toward Eating Hamburgers? Foods, 8(9), 369. https://doi.org/10.3390/foods8090369

Prasetyo, Y. T., Castillo, A. M., Salonga, L. J., Sia, J. A., Chuenyindee, T., Young, M. N., Persada, S. F., Miraja, B. A., & Redi, A. A. N. P. (2021). Factors Influencing Repurchase Intention in Drive-Through Fast Food: A Structural Equation Modeling Approach. Foods, 10(6), 1205. https://doi.org/10.3390/foods10061205

Priya, R. D. (2020, April). Philippines Quick Service Restaurants Market. Allied Market Research. Retrieved March 25, 2022, from https://www.alliedmarketresearch.com/philippines-quick-service-restaurants-market-A06122

Rajput, A., & Gahfoor, R. Z. (2020). Satisfaction and revisit intentions at fast food restaurants. Future Business Journal, 6(1). https://doi.org/10.1186/s43093-020-00021-0

Raquel, M., & Alonzo, A. G. (2019). An Inter-correlational Study on Socio-demographic Profile, Customer Satisfaction and Customer Loyalty in a Fast Food Restaurant in the Philippines. The 1st International Conference on Business, Management and Information Systems, 455–485. https://www.icbmis-utb.org/article/1/34/

Rashid, I. M. A., Abdullah, M. F. S., Yusuf, B. N. M., & Shaari, M. S. (2014). Impact of Service and Food Quality on Customer Satisfaction Among Generation Y for the Fast Food Restaurant in Malaysia. Journal of Social Science Research, 5(2), 784–793. https://doi.org/10.24297/jssr.v5i2.3380

Richardson, S., Lefrid, M., Jahani, S., Munyon, M. D., & Rasoolimanesh, S. M. (2019). Effect of dining experience on future intention in quick service restaurants. British Food Journal, 121(11), 2620–2636. https://doi.org/10.1108/bfj-09-2018-0617

Rodríguez-López, M. E., del Barrio-García, S., & Alcántara-Pilar, J. M. (2020). Formation of customer-based brand equity via authenticity. International Journal of Contemporary Hospitality Management, 32(2), 815–834. https://doi.org/10.1108/ijchm-05-2019-0473

Roldán, J. L., & Sánchez-Franco, M. J. (2012). Variance-based structural equation modeling: Guidelines for using partial least squares in information systems research. In Research methodologies, innovations and philosophies in software systems engineering and information systems (pp. 193-221). IGI Global.

Rossolatos, G. (2020). The depth of brand engagement funnel: dimensionalizing interaction in social media brand communities. Qualitative Market Research: An International Journal, 24(2), 200–220. https://doi.org/10.1108/qmr-03-2019-0041

Saidarka, G. A., & Rusfian, E. Z. (2019). Comparative Study on Brand Equity of Fast Food Restaurants in Indonesia. International Journal of Innovation, Creativity and Change, 8(6), 292–302. https://www.ijicc.net/images/vol8iss6/8622_Saidarka_2019_E_R.pdf

Sahak, S. Z., Mohamad, A., Samad, M. A., & Faizul, A. M. A. (2019). Measuring Service Quality of Fast Food Restaurant: What Matters Most to Malaysian Gen-Y Consumers? Malaysian Journal of Consumer and Family Economics, 24–33. https://www.majcafe.com/wp-content/uploads/2019/06/S-1-2019-Paper-3.pdf

Saneva, D., & Chortoseva, S. (2018). Service Quality in Restaurants: Customers’ Expectation and Customers’ Perception. Science And Research Journal, 1(2), 47–52. https://doi.org/10.18421/SAR12-03

Sapic, S., Filipovic, J., & Dlacic, J. (2019). Consumption in fast-food restaurants in Croatia and Serbia. British Food Journal, 121(8), 1715–1729. https://doi.org/10.1108/bfj-04-2018-0264

Sari, A. & Susilowati, E. (2020). The influence of brand awareness, brand association, and perceived quality toward consumers’ purchase intention: a case of richeese factory, Jakarta. Independent Journal of Management & Production, 11(1), 039. https://doi.org/10.14807/ijmp.v11i1.981

Segokgo, K. T. (2016). The Impact of Fast Food Marketing on Millennials. Graduate Theses and Dissertations. https://scholarworks.uark.edu/etd/1731/

Serhan, M., & Serhan, C. (2019). The Impact of Food Service Attributes on Customer Satisfaction in a Rural University Campus Environment. International Journal of Food Science, 2019, 1–12. https://doi.org/10.1155/2019/2154548

Slack, N. J., Singh, G., Ali, J., Lata, R., Mudaliar, K., & Swamy, Y. (2020). Influence of fast-food restaurant service quality and its dimensions on customer perceived value, satisfaction and behavioural intentions. British Food Journal, 123(4), 1324–1344. https://doi.org/10.1108/bfj-09-2020-0771

Susanti, V., Sumarwan, U., Simanjuntak, M., & Yusuf, E. V. (2019). How to Manage Customer Satisfaction through Brand Association and Perceived Value Strategy. Journal of Management and Marketing Review, 4(3), 184–193. https://ssrn.com/abstract=3460999

The Most Popular Fast Food Chains in the Philippines. (n.d.). Maya. https://www.maya.ph/stories/most-popular-fast-food-chains-in-the-philippines

Vashishtha, S., & Sharma, S. (2016). New customer acquisition by a retailer: a conceptual paper. International Journal of Applied Business and Economic Research, 14, 485-497.

Vigilia, A. Y. (2020). Consumers’ Perceived quality of Restaurants in Nueva Ecija. International Journal of Humanities and Education Development (IJHED), 2(6), 543–547. https://doi.org/10.22161/jhed.2.6.19

Xiao, A., Yang, S., & Iqbal, Q. (2018). Factors Affecting Purchase Intentions in Generation Y: An Empirical Evidence from Fast Food Industry in Malaysia. Administrative Sciences, 9(1), 4. https://doi.org/10.3390/admsci9010004

Xue, J., Zhang, W., Rasool, Z., Khan, M. A., Khan, A. I., Khan, A. A., & Abbas, S. A. (2021). Purchasing Intentions toward Fast Food: The Mediating Role of Consumer Attitudes toward Fast Food. Journal of Food Quality, 2021, 1–17. https://doi.org/10.1155/2021/9931083

Yang, W., Xue, H., Wang, H., Su, C., Du, S., & Wang, Y. (2017). The impact of urbanization on the community food environment in China. Asia Pac J Clin Nutr, 23(3), 504–513. https://pubmed.ncbi.nlm.nih.gov/28429917/#:~:text=Urbanicity%20was%20positively%20associated%20with,with%20food%20environment%20in%20China.

Zhong, Y., & Moon, H. C. (2020). What Drives Customer Satisfaction, Loyalty, and Happiness in Fast-Food Restaurants in China? Perceived Price, Service Quality, Food Quality, Physical Environment Quality, and the Moderating Role of Gender. Foods, 9(4), 460. https://doi.org/10.3390/foods9040460




DOI: https://doi.org/10.18860/mec-j.v7i1.19787

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Editorial Office:
Faculty of Economics,
State Islamic University of Maulana Malik Ibrahim Malang
Gajayana Street 50, Malang-East Java, Indonesia 65144
Phone (+62) 341 558881, Facsimile (+62) 341 558881
e-mail: mecjournal@uin-malang.ac.id

 

 

P-ISSN 2599-3402
E-ISSN 2598-9537

Lisensi Creative Commons

MEC-J is licensed under CC-BY-SA
© All rights reserved 2017.

 

MEC-J INDEXED IN:  

                                  

Member of:

 

View My Stats