Fair Trade Products as a Mean of Increasing Consumer Confidence in the Contract Catering Sector - Research Proposal Example

Introduction: This dissertation is fundamentally concerned about the methodology used in conducting the research as to how the use of fair trade products in the hospitality industry can lead to customer satisfaction. The main area of research in the hospitality management is the Contract Catering sector. Therefore, this dissertation deals with the Quantitative and Qualitative methodologies to understand the use of fair trade products as a means of increasing customer confidence in the Contract Catering sector. Proper research design must be carried out to understand the consumer’s behavior towards the use of fair trade products in the Contract Catering sector. A research design may be either qualitative or quantitative. The methodology is an explanatory of the procedure connect in the field of the consumer behaviour with respect to fair trade products in the contract catering sector of the hospitality industry. This methodology is the way to analytically solve the troubles that are in involved in the research. The methodology is evaluated by the analyst and the outsiders are not involved in the assortment of the methodology. For the outstanding research the methodology should be systematic, logical, empirical and replicable. Methodology: The role of fair trade products in securing customer confidence in the contract catering sector is very high. Quantitative and qualitative methods were adopted in conducting the research process. The contextual background was identified and the priority areas were discussed. Research was conducted in schools, universities and offices to understand the customer’s confidence in the use of fair trade products. “The consumers are critics are proposing several schemes which, includes "fair trade" coffee, using of fresh quality standards in restricting imports.” (Kelly 2010). The research methods included both quantitative and qualitative methods. “Inductive reasoning and deductive reasoning are both subsumed under scientific inquiry, yet they characterize a distinction between purely qualitative and purely quantitative methods.” (Newman & Benz 1998, p.17). Research shows that “Everyone in the “value chain” benefits from fair trade.” (Who benefits from fair trade? 2010) from the producers to the consumers. “Products certified with the fair trade logo guarantee strict standards worldwide on certain environmental, labor and remuneration aspects.” (Chen et al., 2009, p. 67). Research Methodology is “the section of a research proposal in which the methods to be used are described. The research design, the population to be studied, and the research instruments, or tools, to be used are discussed in the methodology” (Methodology, 2010). Qualitative Research: The Qualitative Research methodology is based on speculations or on the results of case study. While a Quantitative Research methodology is objective; the qualitative research methodology is subjective.” Instead of attending to the social construction of meaning, quantitative research, it is claimed, uses a set of ad hoc procedures to define, count and analyze its variables.” (Miller & Dingwall 1997, p. 13). Qualitative Research is more preferred because of the deep study that is involved, instead of just depending on the survey research in Quantitative Research methodology. “Fair trade contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers.” (Davies et al., 2009). The critique of Qualitative Research is “how should qualitative research be validated and evaluated?” (Marschan-Piekkari & Welch 2004, p.19). Qualitative Research is very valuable in the analysis of fair trade products leading to customer confidence in the hospitality industry. “Qualitative research provides definitive market information regarding the opinions and behaviours of the subjects in the market research study.” (Nykiel 2007, p.55). Qualitative Research leads to the development of Quantitative Research designs. Qualitative Research leads to the detection of multifaceted issues on a research and this type of research requires a lot of time in reaching analysis and conclusions and therefore it is time consuming. Qualitative Research is less structured compared to Quantitative Research. Qualitative Research is done by conducting interviews and reviewing case studies. The deficiencies of qualitative research are not having accurate data. The research for fair trade products can be more successfully done through Qualitative Research as contract catering is more of a service sector and the judgment of the attitudes of customers is very much necessary. Some Qualitative Research methods used are: Comprehensive Interviews: interviewing techniques like questioning of the hidden issue and representative analysis technique were used in interviews to understand the customer confidence in fair trade products in the contract catering sector “We have seen a fall in sales of organic foods, for example, though sales of ethical brands such as Fairtrade have held up better.” (Deloitte: United Kingdom: food and beverage 2012- ingredients for success in volatile markets, 2010). The personal interviews were mainly conducted on the parents of school going children because schools mostly use contract catering in their canteens, the suppliers etc.The customers interviews were conducted in order to understand what are the products that they wanted to be fair trade in catering and the interviews revealed that they need fair trade certified products to be incorporated from all the sides like “distributors, wholesalers and vending machine operators providing a range of products from espresso beans to fruit juice.” (Catering products, 2010). Interviews were conducted in the form of questionnaires like Yes No A) Will they be using products from a company registered under the Fair trade foundation B) Do they consider fair trade products expensive especially the Chocolates and the coffee C) Do they feel that their supplier stocks in enough fair trade products? Focal Point Groups – these are the discussion groups in which opinion is found about the subject through discussions. The discussion groups were fair trade products was mainly done by forming a sample of 12 men and 13 women which included people from various sectors like the business group, the nutritionists and the health care sector people, a group of suppliers and consumers. Since the participants in the discussion were from different working lines therefore “the use of focus groups is both flexible and diverse.” (Crabtree, & Miller 1999, p.112). Observations: Observation and then understanding and analyzing information is another Qualitative Research technique. Observation notes were made in the research dairy to analyze the importance of fair trade products in customer satisfaction. Observations revealed that while most of the customers were satisfied of the fair trade products but still the young people who were more indulged in chocolates were considering the use of fair trade products as expensive. Observation was analysed mainly by observing in people the different trends. “Practically all the senses – seeing, hearing, feeling and smelling – are integrated into observations.” (Flick 2009, p. 222). Electronic Surveys: Electronic Surveys conducted through e-mails or phones are less time consuming and lead to the formation of sample sizes which can be used in the Quantitative Research. The electronic surveys can be done in the form of internet. But the response through internet surveys was not appealing because people quickly neglected mails because of lack of time. “web surveys have notoriously low response rates.” ( Lee 2009, p.1034). The qualitative methodology used in the Research process reveals that “consumers buy fair trade products because they believe that their purchase means an improvement in the lives of third world producers.” (Nicholls & Opal 2005, p.201). The comprehensive methods and the focal group discussions and the observations revealed the importance of fair trade products on customer satisfaction but the electronic surveys were less useful in analysing the research. Synopsis of the Research Design: The formidable problem that follows the task of defining the research problem is the preparation of the design of the research project, which is known as the Research Design. The Research Design constitute of the what, where, when and how of the research study. A Research Design is the conceptual structure, within which the research is conducted and it consists of the blue print for collection. A research design is” A plan for collecting and utilizing data so that desired information can be obtained with sufficient precision or so that an hypothesis can be tested properly.” (Research design, n.d). The Research Design here is related to the inquiry of the effect of customer’s confidence in the long term contract in the catering sector. Explicitly the Research Design carried out should be in the regard to about the study, why the study is being made, where the study will be carried out ,the type data used and the collection of the same, the time duration for the study and the style with which the report is prepared. Research design provides the glue that holds the research project together. A design is used to structure the research, to show how all of the major parts of the research project -- the samples or groups, measures, treatments or programs, and methods of assignment -- work together to try to address the central research questions“ (Design, 2006). The Research Design is very specific in the hospitality industry as they facilitate the smooth functioning of the research operations. Need for Sampling: “A sample is a finite part of a statistical population whose properties are studied to gain information about the whole, When dealing with people, it can be defined as a set of respondents(people) selected from a larger population for the purpose of a survey” (Fridah n.d.). Sampling is used in practice for numerous reasons. Sampling can save time and money. A sampling study is less expensive than the survey study that is conducted and they are relatively faster. Sampling can evolve into more accurate measures and they are for the sample study and this is usually conducted by trained analysts. The sampling is the only way which can contain infinitely many members or the size in the population.. “Sampling is the best way to place an order. Though it is a difficult and time ending process it will help the exporter to get the order from the buyer. The purpose of sampling is not only to get bulk order and also it gives some additional benefits to the exporters. By doing sampling the exporter can estimate the consumption and the developments of the firm.” (Dr. Karthikeyan 2008). Sample Size: A sample is a predetermined fraction of the statistics research where different parts of the sample are analyzed in retrieving the information. Sample Size is the size of the sample we use to collect the information from the target audiences. To measure the customer satisfaction level the Sample Size colleted for the research is 150 that is collected from the customer from various levels. Sample Size helps to increase the truth information but at same time it increase the cost associated with it. “The use of appropriate sampling methods and an adequate response rate are necessary for a representative sample, but not sufficient. In addition, the sample size must be evaluated” (Sample size and sampling error, 2009). The cost and the budget of study are to be analyzed: the budget amount and allocation of the budget, by considering the sample designs. “The research and development (R&D) budgeting decision is crucial for at least two reasons: if too much is spent, short-term financial stability is at risk, while, if the budget is too small, long-term competitiveness is threatened. Nevertheless, many enterprises simply extrapolate the past without further reflection.” (Heidenberger et al., 2003). Limitations: The main limitations of this study could be seen in terms of the concept and trend in the hospitality that is fast evolving. Newer paradigm shifts are taking place; often offsetting established patterns and trends over time. In the years to come, there are reasons to believe that this industry may witness more dramatic changes, including being more technologically and market driven. This would not only change the perceptions of people, but would also influence the modus operandi of catering sector with special reference to its management and nature of operations, being more cost and efficiency driven, with highest priority being afforded to the quality and benchmarked indices of service that would need to imbibe and enforce global standards. The survival of the fittest theory would become a buzzword in such circles and as the hospitality would need to girdle them up for meeting fresh challenges that could readily unseat low deck efficiency but however could offer a wide berth to high performing and serving firms in this industry. “Lack of resources is the second common research limitation. Most studies that include a large number of newspapers require funding, one limitation found with industry-level practical research involves the lack of research skills.” (Stephen 1994). Conclusion: The research methodology has been discussed. 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