Order and Delivery System at Pizza Hut - Case Study Example

The ment of the Problem In London, there are 63% of locales utilizing the internet to purchase online, particularly, Pizza Hut onlinedelivery sales account for only about 6% of the total delivery order as compared to the implementation rates of up to 25% for online banking. Purpose and Objectives of the Study Investigate the order and delivery system at Pizza Hut and examine what role the adoption of technology has played on production capacity, speed of service, communication ,smoothing demand, quality and therefore the impact on customer satisfaction Examine the factors that both influence and prohibit Pizza Hut customers to adopt online ordering technology. To provide Pizza Hut with recommendations for improvement, to increase the adoption of online ordering. Research Implications and Limitations The study is a case study evidence on which the conceptual framework of house of quality model and bidirectional optimization were used, in the studying the online system of Pizza Hut delivery and customer satisfaction. The proposed researches are according to empirical evidences and were formally tested. Practical Implications Collaboration, sharing of data and combined planning is critical in examining the customer satisfaction of online Pizza Hut Delivery system. Overview of the Methodology The study utilized primary and secondary data. The primary data will come from the interviews of Pizza Hut Manager and customers, while the secondary data will come journal articles, internet websites, newspapers, textbooks and academic and industry professionals. Introduction and Literature Review Introduction Although there has been a lot of research on customer behavior and customer dissatisfaction, there is less study on customer satisfaction, this according to Shultz and Bailey in 2000. What are the reasons behind gambling on a study regarding simple satisfaction Loyal consumers do not leave a store or a restaurant for better services in another place (Anderson and Fornell, 1994). At the very minimal effort the other companies will just beat services offered. The main key component that a company should implement is to maintain their loyal customers. In order to maintain and gain loyal consumers is through providing high quality standards of products and services so that there will be a very minimal chance that the customer needs will not be fulfilled. Indeed, it is a common knowledge that there are difficulties in understanding the truth behind consumer needs, even if these requirements in advance the consumer can and will alter them without any reason at all. Customer Satisfaction According to the study of Kekre, Mayuram and Srinivasan in 1995, a successful company utilizes market analysis in order to understand the needs of their clients and provide satisfaction to them. This company should not just value profit and gains but also the satisfaction of their clients through this they can make the performance of their company strong and will implicate success. If a business organization desires to examine it themselves, they should observe the particular aspects like business contacts, reputation, advertising and their brand name, these aspects can help identify consumer satisfaction (Barbeschi, 2002). After identifying these aspects, the quantity of customer satisfaction a firm has and in which venues, strategic approaches can be formulated to guide the company to be more competitive. In the study of Carol and Reichheld in 1992, relationship marketing should be implemented. This type of marketing can establish in creating a long-term connection with customers instead of individual business deals. A firm having a full grasp of the consumer's needs as they go through their life phases. Its emphasis is a wide variety of products or services to their present clients, as it is necessary to them (Berry et al., 1988). At the same time Berry in 1983 acknowledges that relationship marketing can be implemented when there are options to select from, when the consumer makes their choice and when there is an ongoing and periodic want for products and services. Linking Service Quality to Customer Behavior Most companies allocate more than 50% of their finances for quality in order to learn to improve the quality of their services connected to the appraisals of their performance like investments, revenues, customer expansion and sales, this is based on the study of Sousa and Voss in 2002. Also according to the study of some academicians on customer satisfaction and services quality, financial profits and its consumer perception on quality as the " the challenges of highest precedence and the quality of goods and services, consumer satisfaction have come to dwell in an important position in the research field (Zeithaml, Berry, & Parasuraman, 1996). The enhancement of the quality of products and services will raise consumers satisfaction and loyalty, lessen costs and eventually will result to better financial gain. The connection between consumer views of quality and financial profits are still being debated (Das, Handfield, Calantone, & Ghosh, 2000). Eventhough, there are many studies on the consistencies of a company's profit, the presupposition with enhancing quality and consumer satisfaction may result to a better performance profit for the company (Samli, 1993; Fornell, 1992) On ther other hand, researchers have proved that service quality and customer satisfaction may not always result to improved performance of the firm (Grandzol & Gershon, 1997) In achieving customer satisfaction a company should define the orientation of their clients and must focus on giving the needs of clients', internal or external orientation. This service creates particular consumer satisfaction typical standards and actively observes customer satisfaction, taking in considerations the clarification and provides customer requirements and expectations (Geletkanycz and Black, 2001). At lower stages, the service engages well-mannered and appropriate responsiveness to the need of their consumers, at the same time, at the higher levels, it deals with the increasing connection between the company and the consumers. The Paradox of Customer Loyalty Customer satisfaction has been one of the most examined and most misinterpreted concept of marketing.(Lowenstein:1997) Marketing experts have rushed to enhance the customer loyalty designs however, not always appear to have considered the major elements of why customers continue loyal to the brand. Some approaches have been slumped and new techniques were formed because consumers use their credit cards nowadays. It is apparent that a perfect time to re-examine the concept of customer satisfaction and loyalty is now. Mainly because customer satisfaction and loyalty are not essentially similar (Lowenstein:1997:245) Customers may stay loyal for different factors and may not even be contented with the product or service. A deficiency of customer defections does not automatically specify pleased consumers (Lowenstein:1997:247). The price of levering to a substitute supplier may be excessive or there may be a consequence clause. Levering supplier may be not convenient. The options may not be striking. Secondly, there are many motives why a customer may be dependable to a merchandise, service or brand. (Maile and Bialik, 1984) These can comprise of expediency (effortless entre in the case of a seller) or price. The main reason for being loyal is authentic satisfaction of the consumers. It is not about the marketer in commission a described loyalty system even though this does have the possible to present advantages in the locale of progressed consumer perception and the data mining or merchandising chances that stream from this. Numerous marketing experts and statistic professionals have beaten the data that it costs more to gain a new client than to maintain a present client (Samli:1993) Firms require plans to acquire and preserve loyalty of customers in the countenance of growing creation equivalence and increasing rivalry (Micheli et al, 2005). However, the issues do not only stop to loyalty programs but also it is about the form and objectives of such programs Customer satisfaction also comprises on the inclination of a consumer to decide to choose a product over another to satisfy a specific need (Neely:2002). In the food industry, consumers may be characterized as being brand dedicated because it is possible for them to choose a particular brand of burger or pizza more often than others (Lovelock and Young, 1999). The used of the term "choose" may implicate that customer satisfaction becomes apparent when options are made and actions are done by the consumers. Clients may show high level of satisfaction with a firm in a survey however, it does not mean loyalty can be achieved. Loyalty is proven by the actions of the client; clients can be highly satisfied and still not be loyal. Consumer loyalty has turned out to be a catch-all expression for the gain of numerous marketing strategies where client statistics is utilized.(Proctor:2000) In this case Customer Relationship Management can be implemented in increasing customer loyalty, gaining consumers to select to purchase or visit the company often. Gaining a lifetime consumer is the main goal of a company and it is brought by improving client loyalty through customer satisfaction (Kane and Freeman, 1997). At the same time, in the study of Varey and Lewis in 2000, well-organized consumer retention plan gives way to customer loyalty. All the consumers' retention plans are based on the company's communication with consumers, providing them support to stay vigorous and opting to do dealing with a firm. Methodology Particularly, in this part of the study, will discuss the following, the participants of the study, data collection instrument and data analysis. Data Collection Instrument The study focuses on the primary perceptions of the views, principles and opinions of the respondents of the research, the researcher chose to utilize the questionnaire as an instrument since it is simple to create while having the rules and policy of creating a survey questionnaire. Additionally, duplications of the survey questionnaires could arrive at a significant figure of respondents throughout the well-organized individual circulation. The researcher utilized graph and charts for statistics management. The survey questionnaires were formed in order to draw out and exhaust the data that the participants recognize about the issues dealt with by topic of the study at hand. The questions comprised in the questionnaire are compiled mostly of close-ended inquiries for easy treatment of the statistics which the participants replied employing the Likert scale (Barnett, V. 1991) form of assessment. Data Analysis Method In analyzing the data collected for this study the researcher used the table format wherein general clarification was given for each of the variable of the research. There were also discussions and explanation of concepts using the house quality model in assessing the satisfaction of Pizza Hut Delivery consumers. The notions and assembles that materialized in the response of the respondents were coherently and rationally presented for the easy comprehension of the results of the study. These were evaluated and compared to the results gathered by other studies which similarly examined into the topic of concern of this study. The quantitative data were analyzed using the composed characterization of the variables by formulating the frequencies and mean average of each point. Relationships among the variables were evaluated and identifies. While the secondary information gathered were utilized to find the similarities and differences for consistencies among all the relevant sources that were used references which likewise dealt with the subject matter and interest of this specific research study. Valuable results were evaluated and dissected to form a consistent presentation of all the gathered data. Findings and Discussion This chapter of the study will explain and analyze the gathered data from the primary research and survey. The analysis wills the house of quality model in discussing the respondents' views on the use of online technology in the delivery system of Pizza Hut. The House of Quality Model Translates Customers Requirements Pizza Hut have been doing some translation of their customers' requirements that will help them to define new market prospects and drive technology and profit expansion in every factor of their business through their new online delivery system. In the fast changing industry like the food industry, forecasting consumers' needs is already been set aside because the client might needed more or wanted more (Brady, 2001). If Pizza Hut offers low prices, consumers want those prices cut down further. If Pizza Hut offers more tasting pizzas, their consumers would want something new. In beating the ever-growing demand of the consumers for lower, quick, better and newer products, Pizza Hut are forcing themselves and their opponents to the edge. They can as well forecast the future by creating efficient change management principles. The Continuous Customer Research of Pizza Hut If Pizza Hut wants to enhance a new Pizza product and their service, they continuously explore the market and consumer research should be a necessity and permanent aspect of the process (Buchanan and Gilles, 1990). They offer the foundation and platform for essential concept generation and the management of their creativity. This can be characterized by the consumer needs, desires, complaints, grievances and issues that each consumer can perform a certain activity, purpose, progress, life event or product. This study, examined the idea generation of Pizza Hut, the company offers the basis of solving the problems related to consumer needs and satisfaction. In order for Pizza Hut examine the consumer needs and wants, investigating external and competitive patterns, determine prospective needs and wants of each consumer segment and character form, identification issues that consumer identify, people observation to discover their unrealized requirements. Pizza Hut customers by their pizzas and other products and seek for their services. What their customers perceptions were most valued and feel about their company and their products is a main factor of business success (Cohen and Moore, 2002). The behaviors of Pizza Hut consumers are molded by their nice experiences of the products and services, the perceptions of friends, direct business with the company and the restaurant's advertising and other demonstrations of the firm. It is the job of the marketing department of Pizza Hut to examine the needs of their consumers. In doing so they are able to develop and innovates products and services which fulfill the requirements of their consumers and at the same time beat their competitors (Coulson-Thomas and Brown, 1990). The only issue here is that purchasing a product is more complicated than it might seem at first sight. It is a common knowledge already in the marketing field that consumers always think thoroughly before purchasing a product. Wherever there is a lot of option, decisions come in, these may be greatly impacted by stable changing objectives (Czepiel, 1990). Pizza Hut understands this aspect, the reasons behind the decisions of the consumers who purchase their products through furnishing more closely for consumer satisfaction and needs, become possibly more successful. In the food industry where Pizza Hut is major player, is a good example of the approach in which different consumers have diverse anticipations. Some consumers just want to purchase typical products at the cheapest possible prices. Therefore they will to the pizza parlor that offers the cheapest prices and offers reasonable variety of products. On the other hand, these consumers are seeking for quality and service quality. Apparently, Pizza Hut is successful because they have a clear knowledge of their target market and their needs. Pizza Hut's Marketing Research The target consumers of Pizza Hut is compared to : quantity of population 14+ and total acquisition from Fast Food restaurants in the previous month (Ghobadian et al., 2007). This target market gives Pizza Hut the concept of the immediate entrance to some of the international perception, healthy consumer research, with unparallel accurateness, veracity and absolute power. Geared with a concise picture of their consumers and their competitors' consumers, Pizza Hut is in the best position to fine harmony of their product strategy, focus on their communication and bidirectional optimized communication. Benchmarking Pizza Hut's experience in performing customer service assessments in order to improve the quality of service that they give their customer, as a result they put all their efforts to make everything accurate. Sadly this can signify some wasted endeavor. Realistically, there are constantly just some factors that a consumer must have precise; while for their competitors they will be a fragment more easily. If these competitors could recognize which is the critical part and make sure they are correct, Pizza Hut could spend fewer attempt on the items that matter less. Benchmarking helps Pizza Hut in the aspect of their customer service (Ghobadian et al, 2007): Which characteristic of customer service each client thinks is most significant What each consumer supposes on each purchase providing an achievement to work in opposition to if the score is low Pizza Hut's consumers think of the company's performance against these features of consumer service and purchase. An assessment of Pizza Hut with their major opponents may have some work to do but maybe they do too. Benchmarking can accurately measure the employees' and management understands of customers' expectations. Most of the clients of Pizza Hut audits the same market research. This is a very functional method of putting all their efforts to their employees' performance and consumers. Critical Success Factors The central part distinctiveness of a victorious organization like Pizza Hut is focus. Since the fast food industry is rapidly becoming more and more complicated added to the reality that it alters fast and enthusiastically, Pizza Hut needs to contemplate on a small number of details components that are most significant to their company's survival (Johnston, 2005). Consequently, it is not astonishing the critical success factors keep the associations from go astray too far with peripheral issues not pertinent to their company's success. Customer Satisfaction Consumers change along with the dynamic business world, they become more demanding and intelligent than before. In lieu with this, the management of Pizza Hut had altered their focus on their clients or consumers so as to maintain their success in the fast food industry (Groth, 1999). They did this through making a closer bridge to their relationship with their consumers through the use of technology called Internet. Their new online delivery system gained more profit to Pizza Hut delivery and profit. This transformation means that Pizza Hut had reformed the entire traditional delivery system in the fast food services delivery in U.K. The main key component in innovating is rethinking and reformulating the company and their service delivery, the several aspects that Pizza Hut considered are developments, technology and innovation, the market environment as well as the success factors of the consumers (Cohen and Moore, 2000). Therefore, in order to convey the outstanding customer services within Pizza Hut's operations, the management of the restaurant implemented the fine-tuned company reorganization. Furthermore, using practical customer obligation engages the contemplation on society and communications (Lowenstein, 1997). Online delivery The incredible increase of technological progress has become the powerful strength of modern industries. The dispersion of the internet has transformed the fast food industry. The utilization of the Internet is shifting high-tech marketing immediately while diverse industries have been putting all the efforts to employ it as element of their marketing strategy. It has not only reconfigured the means Pizza Hut do business and the way the consumers purchase their goods and services, but it has also become a successful mechanism in changing the value chain from retailers like Pizza Hut to consumers, establishing a new retail allocating channel (Appelbaum et sl, 1998). Online delivery is a powerful instrument implemented by Pizza Hut in U.K. It is described as the procedure of achieving marketing objectives in the course of the utilization of electronic communications technology. Smith and Chaffey (2001) have given a 5Ss' mnemonic for how the internet was implemented by Pizza Hut for their different online delivery tactics. These 5S's are sell, serving, speaking, save and sizzle. The Online Customer Survey Table 1 The above table shows the result of the survey questionnaires distributed to 15 respondents of the online delivery of Pizza Hut. The percentage of the measurement of customer satisfaction in these surveys is as high as 53%. This indicates that the online delivery system of Pizza Hut is very effective. The customers somewhat agreed (40%) that ordering pizza online gives them control while in the statement Pizza been delivered on time 475 agreed and 33% strongly agreed which is not bad for newly implemented pizza delivery system. Conclusions The main objective of this study is to investigate the order and delivery system at Pizza Hut and examine what role the adoption of technology has played on production capacity, speed of service, communication, smoothing demand, quality and therefore the impact on customer satisfaction The study utilized primary and secondary data. The primary data came from the interviews of Pizza Hut Manager and customers, while the secondary data came from journal articles, internet websites, newspapers, textbooks and academic and industry professionals. The implementation of online delivery system of Pizza Hut created relationships between the wanted outcomes and client satisfaction, consumer loyalty and consumer retention. This may go by other labels like clients and purchasers, etc. Pizza Hut had bridged the gap between them and their consumers. They had gained their wanted results that are mainly to maintain the current consumer and attract new consumers through online delivery. Pizza Hut's focal point is consumer satisfaction and their compassion of the market. Through gaining the loyalty of their clientele ultimately a player will satisfy those wants and the consumer preservation rate will lessen. Recommendations After all the data collection, analysis and presentation of the data the researcher had arrived to a conclusion that the online delivery system of Pizza Hut had satisfied their existing consumers and will continuously attract new consumers. However, Pizza Hut should not be relaxed and complacent, because the wants and needs of their clients and their future clients are as dynamic as the fast food industry. Pizza Hut should continue to research the different influences to the internal and external environment that affects the purchasing behavior of their consumers. Second, Pizza Hut must continuously monitor the competition within the fast food industry, they should not forget that Shakey's , Dominoes Pizza and all other key players are also using the online delivery system. Therefore, Pizza Hut should continue to innovate their online delivery system. References References Anderson, E. W. and C. 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