Proposal on Customer Satisfaction Strategies of Subway Submitted By: ID- Table of Contents 1Topic3 2Introduction3 2. 1Research background3 2. 2Aim and Objectives of the Study4 2.
3Research Questions4 3Literature Review5 3. 1Service Quality and Customer Satisfaction5 3. 2Areas of Setting Strategies5 3. 3Relationship and Loyalty6 4Research Methodology7 4. 1Research Method: Qualitative and Quantitative7 4.
2Data Collection7 4. 3Sample8 4. 4Research Instruments8 4. 5Data Analysis8 5Time Structure of the Study9 6Ethical Considerations10 7Conclusion10 8References11 Topic Customer Satisfaction Strategies of SubwayIntroduction Research background Customers are heart of an organization. They are considered good for any sort of organization. Business success mostly depends on the satisfaction of the customers.
Customer satisfaction depends on the perceived value from the provided services or products. In fast food and hospitality organizations customer satisfaction is most important (Voon et al. 2009). Ismail et al. (2009) stated that, higher customer satisfaction is considered as the key to competitive advantage. Satisfied customers of an organization can be considered as the asset of the organization.
Thus customer satisfaction has great influence on the profitability of the organization. For this reason organizations set up various strategies to satisfy their customers and gain competitive advantage (Voon et al. 2009). In many countries of the world fast food industry is very booming and it is very extensive in UK. This is due to convenience of purchasing and consuming, cheaper price and lack of time of people for proper dining. In UK fast food culture is well embraced by the population. According to Brown (2005), UK fast food industry has annual turnover of ? 7. 2 billion which is earned by serving 1.
billion meals a year in 20000 outlets. Fast food industry of UK employs more than 200,000 staff. UK is the country with the largest number of fast foods per person, where Australia is in second position and USA in the third position. In the year 2008 25% of all fast food restaurants were situated in England alone.
Fast food business is very competitive in UK. To sustain in this competitive market fast food companies set various strategies to satisfy its customers (Source: Subway. com). This study aims to analyze the strategies of food restaurants to satisfy the needs of the customers and remain competitive.For this subway has been selected. Subway is an American based organization which sells submarine sandwiches and salads. Being one of the fasted growing franchises in the world, it has been operating more than in 100 countries and territories with 37,000 restaurants. In the year 1965 the first store was opened in Bridgeport, Connecticut.
Their goal was having 32 stores within 10 years. At present it is one of the leading brands in the world that offer submarine sandwich in more than 37,000 locations around the world. People consider this as leading choice for seeking nutritious and quick meals where they can enjoy with whole family.Depending upon the overall discussion about customer satisfaction, fast food business in UK and Subway this study has been framed. This study will be trying to evaluate strategies which Subway uses to ensure the customers are satisfied. This study will also evaluate the effectiveness of the strategies, the quality ensuring management in all restaurants of Subway and the problems in quality management. Aim and Objectives of the Study Aim Aim of the study is to analyze the strategies of food restaurants to satisfy the needs of the customers and remain competitive.
Here strategies of Subway that make it competitive in the fast food restaurant business in the UK will be analyzed. Objectives of the Study * To investigate the strategies which Subway use to ensure the customers are satisfied * To investigate the effectiveness of the strategies * To assess the Strategies which Subway performs to ensure quality is managed in all stores * To identify the problems in quality management of Subway Research Questions * What strategies is Subway using to ensure that their customers are satisfied? * How effective are these strategies? How does subway ensure that quality is managed in all stores? * What are the problems of managing quality in subway restaurants? Literature Review Literature review indicates all empirical researches related to a study. Literature review helps to understand the findings and discussions related to the subject area. Literature review for the study has been developed as follows. Service Quality and Customer Satisfaction In modern hospitality, restaurant and fast food business success of the organization mostly drive by the ability of the organizations to satisfy their customers.Service quality is important in fast food business and customers value the money in terms of perceived actually and price to quality ratio (O’Neill, 2001).
When organization provides proper service with quality then customers become satisfied. As hospitality, restaurant and fast food business are becoming competitive day by day now these must consider themselves with satisfying customers and increasing market share (Tam 2004). Various empirical researchers stated that, quality services provided to the customers will help to achieve the goals of the organization.In restaurant business service quality and satisfaction level of the customers have great impact on the profitability, loyal, market share, growth, retention ratio and revenue of the organization (Akbaba 2006). Areas of Setting Strategies Service quality provided by a restaurant depends on several factors. Organizations also consider their strategies regarding these factors.
A restaurant organization may consider service cape, food quality and pricing ;amp; perceived value for setting strategies to increase service quality and satisfaction (Qin and Prybutok, 2008).Services Cape: Service caps in restaurants affect the evaluation of service quality and post-purchase behavior of the customers (Kim and Moon, 2009). Service cap dimension includes scent, music, lighting, noise, temperature and internal environment which are normally tangible. This service cape has impact on the perceived service quality of the customers.
Fast food organizations set strategies mainly regarding service cap of the organization. They try to develop unique service cape to attract customers. Food Quality: Food quality is the most important factor in evaluating the service quality of the restaurant.
Quality of the food is considered in relation to pay for that particular food. Food of good quality and beverages maintaining superior quality can be viewed as main instrumental in satisfying the customers and retaining the customers (Soriano, 2002). Selection of menu, variation in food items and quality of foods in relation to price is considered in service quality measurement.
While setting strategies to improve customer’s service and gaining customer satisfaction organizations consider food quality at first. There is no doubt that, people choose a fast food organization depending upon the food provided by that.Pricing and Perceived Value: Pricing is another factor which determines the service quality provided in restaurants. Customers value the provided services in relation to price paid by them. Depending upon the piece and perceived value retention ration and loyalty f the customers differ (Tam, 2004). When a fast food organization set strategies to attain competitive advantage through superior service quality and customer satisfaction they consider price and perceive value fo the product (Qin and Prybutok 2008). Relationship and LoyaltyQuality perceived from a service provided by an organization can change the behavioral intentions of the customers and increase the loyalty of the customers. Fast food industry is dependent on the behavioral intention of the customers.
When customers get good service and behavior from an organization, they can good relationship with that organization and become loyal. This loyalty increases the revenue of the organization (Tam, 2004). So, service quality and customer satisfaction in restaurant must be considered in the context of relationship marketing and behavioral loyalty.Relationship with the customers drives the further buying decision of the customers (Venetis and Ghauri 2004). When service quality is acceptable to the customers and they get it repeatedly then it motives them to make long time relation with the organization.
Research Methodology Research methodology indicates the process of carrying out the research to meet research objectives. This section of the report will discuss about research method, research philosophy, data collection, and data analysis to carry out the research. Research Method: Qualitative and QuantitativeQualitative: Qualitative research method is considered as varied and multi faced research method by Holloway and Todres (2003). It has been stated that, qualitative research method involves analysis of close observations, behaviors of human, surveys, ethnographic studies and non statistical data.
This research method is applicable where data cannot be interpreted with the help of statistical tools (White 2002). Quantitative: Another research method is quantitative research method which is opposite to qualitative. In this type of research, researcher can use statistical tools and data can be measured concretely and precisely.This study is dependent on collected data (Saunders et al. , 2007). This study is strategies which Subway uses to ensure the customers are satisfied, the effectiveness of the strategies, and the quality ensuring management in all restaurants of Subway and the problems in quality management. Here close observation in the data is most important and statistical tools cannot be used.
So, the study is qualitative research method. Data Collection Data can be collected from two main sources: Primary data and secondary data. Here these two are described to select appropriate one.Primary Data: Primary data is first time used data. Researcher collects this data by his own effort and this data is not previous none. This data collection is requires comparatively higher cost and time (Boslaugh 2010). This study will collect primary data to conduct the study. Secondary Data: Secondary is another data source that indicates the use of second hand data.
Secondary data is not the data set collected by the present researcher. Sample This study will be evaluating strategies regarding customer satisfaction and competitive advantage by fast food restaurants.To conduct the research study Subway has been selected. Again Subway has more than 37,000 branches around the world. But it is not possible to collect data from whole population. So, the study will be collecting data from a sample. Size of Sample: As strategies in Subway mainly from center point and branches shape their own strategies to some extent, the study will be collecting data from 15 samples.
These all will be selected from UK. Selecting Sample: Number of participants is 15 in the study. These participants will be selected from the top management of the company.Here strategies of Subway to gain customer satisfaction and competitive advantage will be analyzed. So, top management will helpt to understand this in better way and also help to collect data.
Advantages of Selecting Sample: Subway has more than 37,000 branches around the world and it has thousand of branches in UK so researcher will be able to collect data easily. Researcher got permission from my Subway at Stevenage to carry the research from there. So, data collection will be easy. Sampling Strategies: Here non probabilistic and selective sampling technique will be used.
Depending upon the customer size and importance of place, sample will be selected. Research Instruments To collect data in depth-interview will be used as research instruments. This will help to collect data from close observation.
Again in- depth interview helps to collect wide range of data. Depending upon the objectives of the study, this research instrument has been selected. Data Analysis This research study is accepting qualitative research method. Qualitative research method does not accept statistical tools application.For this reason this study cannot interpret data from statistical tools application.
This study is mainly investigating the strategies of food restaurants to satisfy the needs of the customers and remain competitive. So, considering the context of the study this study will follow thematic research analysis as data analysis tool. Thematic analysis tool helps to analyze the qualitative data depending upon the primary and secondary data. Thematic data analysis tools help to research objective by following ways. * Use of focal point to arrange data * Analysis of data pattern Development of coding system * Interpretation of the theme within theoretical context Here collected data from in depth interview will be analyzed through thematic analysis.
First of all thematic analysis will be used to have pattern in the data from the answer of the respondents. Then through close observation of the pattern conclusion about data will be made. Time Structure of the Study Conducting A research study requires long time to be completed.
This research study involves evaluation of each ad very segment critically. For this reason study will take longer period to be completed.It is expected that, the study will be completed within one and half month after approval of the proposal. It may take one or two more weeks considering difficulties in data collection.
Here detailed time structure is given below. Phase in the Study| P-I(1-10)| P-II(10-20)| P-IIII(20-30)| P-IV(30-45)| Required Days in the task| | | | | Development of research aims and objectives| | | | | Development of literature review| | | | | Data collection | | | | | Recording, sorting and arrangement of data| | | | | Data analysis | | | | | Findings, Conclusion and Recommendation| | | | |Ethical Considerations In qualitative research study major ethical consideration includes protection of the participants from physical injury and psychological injury, fraud prevention, consent of the information and confidentiality. These all aspects will be considered very carefully while conducting the research. Research will be conducted maintaining rules and policies of the university. Again confidentiality of the information will be kept after collection information.
Researcher will collect information from the respondents after getting their consent and permission.It is necessary to mention that, data will be used only for research purpose. Conclusion Customer satisfaction has great influence on the profitability of the organization.
In many countries of the world fast food industry is very booming and it is very extensive in UK. Being one of the fasted growing franchises in the world, Subway has been operating more than in 100 countries and territories with 37,000 restaurants. This study will be trying to evaluate strategies which Subway uses to ensure the customers are satisfied. To conduct the study is qualitative research method is selected.
Considering the context of the study this study will follow thematic research analysis as data analysis tool. It is expected that, this study will help to have some new ideas about customer service in restaurants. References * Brown, S, 2005, “Strategic Operations Management”, Butterworth-Heinemann * Crossan, F. , 2003. Research philosophy Towards an understanding. Nurse Researcher. Vol.
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