Marketing Research Online Paper - Group 9

EN 107 Group 9

Tentative Market Research Title:

The Comparative Study of Customer’s Satisfaction Between Jollibee and McDonalds’ Self
-Service Ordering Kiosk

Background of the Study:

This chapter covers the background information on the self-ordering kiosk and its effects
on customers` satisfaction focusing on the usability, accuracy and ergonomic design. Self-
service kiosks are one of the most attractive technologies which in this research, the impact
of its use on customer satisfaction especially in two chosen stores was observed.It provides
a real image of what an self-service ordering kiosk is, it’s history in the world, how it works,
showing some problems associated with the use of self-service kiosk in fast food services
between two companies (Jollibee and McDonalds), also research objectives, research
questions, hypothesis, and significance of the study as well as the definition of the key
terms.

The customer is the key to success for any organization and any commercial economic
activity. Believing and practicing the principles of customer orientation, customer satisfaction,
attracting new customers and retaining old customers, are the main issues in organizational
success and in contrast the neglect of the demands of customers, results in an exit from a
competing market. Providing appropriate services is the key factor in gaining customer
satisfaction and loyalty. In today's business environment,providing quality and efficient
services plays a vital role in attracting and retaining customers.

Customer satisfaction is often the effect of sufficient service quality, where service quality is
defined as the customer’s perception of the businesses’ long-term service performance
(Bateson & Hoffman, 2001). In the minds of consumers, service quality often includes the
quality of the product and/or the service itself, the demeanor and behavior of the employees,
and how willing the business is to be flexible and responsive (Sundbo, 2015). Furthermore, it
has long been argued that there is a connection between service quality and customer
retention, and that service quality often has a positive effect on brand loyalty (Bowen &
Chen, 2001; Yang, Yang, Chang & Chien, 2017).

In today’s business world, customer satisfaction is very important and it’s the secret of
survival of a company in the competitive era. Today, customers have a lot of goods and
services to choose from and their expectations about the quality of goods and services is
very different from the past(Mohammad sedighimanesh,et al .,2017). With this, customers
will choose the goods and services that are more consistent with their needs and
expectations. According to IJSTR 2017, customer satisfaction results in an increase in
revenue and profit through repeat purchases, buy new products and buy products by new
customers which tend to that product through satisfied customers. On the other hand,
change and demands for diversity of customers has led to varied customer service tools.
Customer service is the set of tasks that aim for customer satisfaction for the company's
business growth or ensure that customer expectations of product or service sold to them are
met.It is very important for a business to know what their customer thinks about their service.
How satisfied are they with what the company offers, or how loyal are the customers to them
According to Johnson and Gustafsson (2017) customer satisfaction is one of the key issues
being monitored by every service provider.

As defined by Sustainability, 2020, The kiosk in the restaurant is an unmanned payment

system that allows customers to order food directly or participate in its service processes,
rather than experience face-to-face service with employees. Since kiosks in a restaurant not
only build an innovative technology infrastructure, but also provide new value for customers,
it is expected to become a universal and routinized service for customers within a short time.
So, we need to understand the role and importance of kiosks for various marketing activities.
In particular, restaurants, such as QSR, offer lower traditional services by delivering lower
selling prices than other types of restaurants, while services, such as speed and efficiency,
still remain important even with the limited services .The introduction of Kiosk technology
can be an alternative to QSR’s service failure, thereby allowing managers to review its
positive adoption. Additionally, technological innovation can provide a variety of service
experiences to customers while also increasing employee work efficiency . Indeed, building
a system by introducing technology can provide positive benefits to both customers and the
restaurants. As a result, if you do not understand the relationship that arises between
customers and technology in an offline environment, it is difficult to create a specific strategy
method for restaurant management, and management can neither be realized for future
technological innovation nor business performance successfully.

Jollibee Foods Corporation, known distinctively by its red and yellow bumble bee mascot,
operates a number of concept restaurants in the Philippines and beyond. From its core
business, a McDonald's-like restaurant, Jollibee has expanded into a pizza chain, fast food
Chinese restaurants, bakeries, breakfast bars, and a tea house. The company competes
well with multinationals in the Philippines, and has begun a large expansion into the
international market, including China and the United States. Jollibee, the original flagship
brand, together with its additional product concepts, dreams of becoming a global
powerhouse in the restaurant industry. At the core of JFC is Jollibee, the McDonald's-like
hamburger restaurant. The unit sells a standard fare of lunch and breakfast items, but adds
a local touch with products such as the Amazing Aloha Burger (slice of pineapple on top of a
burger), the Jolly Hotdog Taco Style, Chickjoy with Rice, and Palabok (noodles with a spicy
sauce, boiled egg, shrimp, and ground pork). Jollibee competes with McDonald's on the
basis of price, local product offerings, and national identity. JFC also owns Chow King, a
Chinese fast food restaurant chain with operations in a number of countries. The firm has a
pizza restaurant chain called Greenwich. In addition, JFC owns a bakery chain called Red
Ribbon, and a breakfast cafe called Delifrance. (Rarick,Falk& Barczyk,2012)

McDonald's is the world's largest restaurant chain by revenue, serving over 69 million
customers daily in over 100 countries across 37,855 outlets as of 2018.Although McDonald's
is best known for its hamburgers, cheeseburgers and french fries, they also feature chicken
products, breakfast items, soft drinks, milkshakes, wraps, and desserts. In response to
changing consumer tastes and a negative backlash because of the unhealthy of their food,
the company has added to its menu salads, fish, smoothies, and fruit. In 2015, McDonald's
started testing "Create Your Taste" kiosks in US locations, allowing users to create custom
burgers featuring high-end ingredients like guacamole and caramelized onions. The burgers
arrived open-faced with fries served in metal baskets, in an attempt to make the presentation
feel more upscale. McDonald's shut the costly experiment down a year later, after customers
complained the burgers were too expensive and took too long for fast food. But the fast-food
giant didn't give up on that touch screen ordering format instead of limiting the items
consumers can order to custom burgers, McDonald's is letting people order from its entire
menu, pay by debit or credit card, and then get the food brought to their table. The difference
between this new iteration the 2015 effort appears to be an emphasis on convenience rather
than personalization. Now McDonald's adopt the self-service kiosk as improvement besides
to reduce the labour cost. (Jamil et al., 2019)

According to a BusinessMirror report in 2019 - Jollibee, a fast food brand in the Philippines,
has rolled out self-order kiosks in outlets in several cities,. A total of 97 self-order kiosks
have been installed in 37 locations. Customers can pay using credit or debit cards on the
kiosk, or pay with cash at the counter. Members of Happyplüs, Jollibee's customer loyalty
program, can pay using their points by simply scanning their cards at the promo redemption
scanner. After payment, customers receive numbers to claim orders at the counter.

In an article provided by rappler.com, The kiosks are part of McDonald's modernization

program called NXTGEN, and are designed to allow customers "a digitized alternative to
order and pay for their McDonald’s favorites" and "provides a more seamless transaction
process," the company said. Orders are then processed, and are claimed at the counter.The
kiosks accept Mastercard and Visa card payments. Customers can still pay in cash but
they'll have to proceed to the front counter where they'll have to engage in face-to-face
communication with employees. Apart from digital integration, part of the NXTGEN overhaul
as well are new interiors and atmospheric lighting. A McDonald’s NXTGEN store boasts
modern yet inviting interiors, marked by neutral tones and atmospheric lighting, and unique
noticeable features distinguished by digital integration.

Research Problem/Question?

1. What is the level of customer satisfaction of Jollibee in using self ordering kiosk in terms of

A. Ease of use
B. Accuracy and customization.

C. Ergonomic design

2. What is the level of customer satisfaction of MCDonalds in using self service kiosk in
terms of

A. Ease of use
B. Accuracy and customization.

C. Ergonomic design

3. Is there a significant difference in customer satisfaction between Jollibee and Mcdonalds

in using self ordering kiosks?

Research Objective:

1. To assess / examine the customers’ satisfaction in self-service kiosks provided by Jollibee

and McDonalds.

2. To analyze the effectiveness of customer satisfaction in terms of ease of use, accuracy

and ergonomic design in self-service kiosks of Jollibee and McDonalds.

3. To offer valuable suggestions and recommendations to improve or maintain the services

of self-service kiosks of both Jollibee and McDonalds.

Literature Review:

Self-service digital kiosks change the way consumers think and take actions,
thereby having a huge impact on their behavior. Due to societal pressure and fear of
judgement, customers often feel disinclined to initiate their own up- sell like higher calorie
ingredients or adding a dessert. Self-service kiosks eliminate any potential for societal
judgement by a human server or cashier while producing an automated order, which helps
the customers feel more comfortable by allowing them to pick whatever they like (Gavett,
2015).

A recent survey conducted by the National Restaurant Association and Technomic

Inc. revealed that kiosks were the largest customer order technology utilized in the past year.
And further research from Tillster discovered that line length can cause customers to walk
away from their favorite establishment in favor of a faster experience. However, if kiosk
ordering is available, many customers will stick around; more than 65% of customers said
they would visit a restaurant more often if self-service kiosks were offered, and 30% of
customers prefer to order from a kiosk versus a cashier if the lines were of equal length.
While kiosks provide guests with better experiences, restaurant brands also reap the
benefits from self-ordering kiosks. The perception may be that kiosks replace employees,
but the reality is that the addition of self-service technology frees up staff time for higher
value services that matter more to the customer, including the preparation of their food,
targeted attention for customers in need, and keeping the restaurant clean. The integration
of such platforms not only allow employees more valuable opportunities beyond operating
the cash register but also help increase check size and improve service.

In a case study by IQ Interactive in 2020. Today, the idea that good design is on par
with good food and good service is becoming a gospel rule for quick service restaurant
chains. McDonald’s isn’t alone in its remodelling plans. Wendy’s and Burger King are riding
hard on its heels to roll out new looks in the next year as well. The Wendy’s Corporation has
already committed $225 million this year to remodel 50 of its stores. The changing wave of
global markets mean that there is a big shifts in demographics internationally. The
generation that grew up eating fast-food is now middle-aged and prefers higher-quality,
healthier food options and better service. Similarly, the growing Millennial generation that
more or less lives online expects modern vibes and service at the speed of their internet
connection.

In a recent study, the Dodgers Stadium concession stands showed that a shift from
traditional POS systems to new self-service kiosks appeared, average order size increased
by 20%! Aside from making it easier and faster to order, self-ordering also allows restaurants
to better organize their cash flow and ingredient inventories. It’s a simple story of adapt or
go extinct. Ultimately, as time has proven, anything that increases customer satisfaction
along with operational efficiency will witness rapid growth.
 Oracle Food and Beverage defines self-service kiosk acts as a self-order POS
system. Customers place and pay for their own orders at kiosks. This enables totally
contactless and frictionless service. Customers enjoy the opportunity to buy with no waiting
and no delay.

1. Guests order and pay at their convenience building their order the way they want it

2. The system can suggest additional items which the guest may also be interested in

3. The order then automatically flows to the kitchen through KDS integration

4. When complete, the customer is alerted that their order is ready to collect

5. Guests can easily order further items by revisiting the kiosk

What are the benefits of a self-service POS?

The use of self-service kiosks in restaurants is becoming more common across the globe.
As restaurants balance and adapt to the new on and off-premises dining environments
kiosks offer a platform for success.

1. Faster service and reduced customer wait times

2. Increased efficiency and basket size with up sell prompts

3. Improved order accuracy

4. More targeted upselling

5. Easier data capture and loyalty enrollment

6. Operational efficiency redeploying labor to where it is needed.

Using the current self-service kiosk as a basis for the proposed system, the
researchers were able to reduce the average time of transactions the customers have to
spend while ordering. From the current system having an average time of 6.27 minutes per
customer, it went down to just 3.27 minutes. Through the use of ProModel Software, the
researchers discovered that in the current system, 57 customers out of 100 are experiencing
delays and long queues. By creating a simulation for the proposed system, the researchers
were able to improve the customer service of the fast-food by reducing the number of
customers who are experiencing delays and long queues from 57 customers to just 8 out of
100 which provides an 86% improvement.The researchers recommend adding the function
of a reloadable smart card for payment. The customers will have an additional option on how
they want to pay for their orders. It will be a small card that can be tapped onto the system
after ordering and it will process the payment afterward. The researchers also recommend
adding a mobile application or online website for the customers to order in advance and pick
up their orders at the fast-food drive- through. Order customization; discounts for persons
with disabilities (PWD) and senior citizens; and discounts for coupons/vouchers can also be
added to the system. (Castillo et al.,2020)

Jollibee has taken its mission of spreading the joy of eating to a whole new level with
innovations aimed at enhancing total customer experience and convenience. Aside from the
recent opening of its new Level Up Joy Store in Katipunan, Quezon City that boasts of a
modern design concept and interiors, the country’s leading fast food brand has continued to
level up its stores nationwide with the roll out of self-order kiosks in outlets located in key
cities and municipalities. To date, there are a total of 97 self-order kiosks that have been
installed in 37 Jollibee branches all over the country. These include Jollibee branches in
BGC Triangle Drive, Katipunan Quezon City, Bay Laguna, Ayala Center Cebu, and Lagao,
South Cotabato, with more in the pipeline. Designed to make choosing and ordering meals
easier and more convenient, the touch-to-order system was first piloted by Jollibee in 2018.
Apart from providing an elevated customer experience using the latest technology, the self-
order kiosks cater to the so-called time and energy-starved customers who prefer to order at
their own pace, see the available menu selections, and be given the choice to customize
their orders with ease and accuracy. With its user-friendly interface, it only takes 3 simple
steps to complete one’s order in these Self-order kiosks. To begin ordering, customers need
to simply (1) touch the screen to see the menu where they can select their orders for dine-in
or take-out. Whether they want large fries to go with their Yumburger or pair their meal with
iced tea or pineapple juice, customizing orders and choosing from a variety of add-on
choices is a breeze! (2) Once orders are complete, customers can then proceed to pay
using several options: by inserting their credit or debit PayMaya prepaid cards in the
payment terminal, or paying with cash at the counter. Happyplüs members can also redeem
their points and use them to pay by simply scanning their cards at the promo redemption
scanner. (3) After payment, customers are issued queue numbers for claiming of their orders
at the counter. Once they get their order from the friendly Jollibee crew, they can then
proceed to find their seat or head out to enjoy their favorite great tasting Jollibee treats.
(Business Mirror, 2019)
METHODOLOGY AND RESEARCH DESIGN

Research methodology is the specific procedures or techniques used to identify, select,

process, and analyze information about the topic. This section allows the reader to critically
evaluate a study’s overall validity and reliability.

Research designs are plans and the procedures for research to detailed methods of data collection and
analysis (Cresswell,2009:3). The main purpose of this study was to understand the role of technology-
based self-service (TBSS) kiosks within a fast-food chain by empirically identifying the level of
customer satisfaction. To this end, the following research objectives were determined: (1) assess
identify the level of customer satisfaction of Jollibee in using self – service ordering kiosk, (2) asses
identify the level of customer satisfaction of McDonalds in using self – service ordering kiosk, and (3)
examine or identify if there is a significant difference of customer satisfaction of Jollibee and
McDonalds. Specifically, the three causal paths (i.e., perceived ease of use → self-service ordering
kiosk service quality, perceived accuracy→ self-service ordering kiosk service quality and ergonomic
design→ self-service ordering kiosk service quality) were considered to be different.). According to
Best and Kahn (2007), “The term descriptive research has often been used incorrectly to describe
three types of investigation that are different. Descriptive research is a research method that tries to
describe and interpret objects appropriate with the situation (Best, 1982:119).

In this study, the researchers used descriptive quantitative surveys. Creswell (2008:388)
explains that Descriptive research is a research method that tries to describe and interpret
objects appropriate to the situation. Survey research is the most frequently used in all
disciplines that uses observation methods of collecting data. Survey research involves
acquiring information about one or more groups of people – perhaps about their
characteristics, opinions, attitudes, or previous experiences – by asking them questions and
tabulating their answers. This chapter describes the methods employed in this study,
including the research model and design, population and sampling, data collection, measure
development, and data analysis procedures.
Population and Locale of the Study

The researcher focused their study on the customers of Jollibee Harrison and McDonalds
using self-service ordering kiosks. [a]

For the purpose of this study, the researchers gather data from the total of 50 respondents
online. The researchers will send the 50 questionnaires using google sheets survey form
online via messenger and these questionnaires were answered by the respondents.

The criteria of the prospective respondents of the study will be a customer of Jollibee and
McDonalds here in Baguio. The study will focus on the customer satisfaction in using self-
service ordering kiosks.

[a]specify