AbstractsBusiness Management & Administration

The customer re-purchasing model of chinese-style fast food chain in Hong Kong

by Kam Ming Lau

Institution: University of Newcastle
Year: 2014
Keywords: Chinese-style fast food restaurants; Hong Kong; coupons; promotion devices; re-purchasing
Record ID: 1051721
Full text PDF: http://hdl.handle.net/1959.13/1043937


Professional Doctorate - Doctor of Business Administration (DBA) Hong Kong is a food paradise. There are many different types of restaurants in this city. Chinese-style fast food restaurants play an important role in the market. The top three brands of Chinese-style fast food restaurants share around 5% of all restaurant sales in Hong Kong. At the same time, the competition in this market is keen. Fast food providers need to consider different marketing and operations strategies to maintain or gain market share. Coupons are the most popular sales promotion tool in Hong Kong’s fast food industry. However, this promotion device has not attracted much academic attention in Hong Kong. Apart from promotion tools, gaining customer satisfaction is also vitally important. Identifying the key service attributes that lead to customer loyalty is essential for any organisation to gain competitive advantage. Thus, the main purpose of this study was to develop a marketing and operations model for the local Chinese-style fast food restaurants. To address the research aim, a questionnaire survey was conducted in the largest district by population in Hong Kong. Fast food customers from the general public were invited to complete a structured questionnaire. Two hundred and fifty-two valid questionnaires were collected. The results of the data analysis revealed that coupons could significantly increase the purchase frequency. Six service attributes were identified that could significantly impact the customer purchasing intention. The empirical results also showed that coupons could strengthen the relationship between two key service attributes (location and taste of food) and customer loyalty. Two regression models were developed to depict the relationship among coupon effect, two key service attributes and customer purchases under different scenarios. From the results, fast food providers can forecast the sales change before and during a coupon promotion campaign.