CHAPTER 1

INTRODUCTION

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 INTRODUCTION OF THE TOPIC

In today’s world of intense competition and rapid dynamism, all the companies worldwide
are tuning their focuses on the customer. Suddenly, the customer had succeeded in capturing
all the attention of the companies towards him, so much so, that the once famous maxim,
“customer is the god” has become so true and relevant today. There has been a “paradigm
shift” in the thinking of these companies and none other than the customer has brought this
about.

Pizza Hut entered India in June 1996 with its first outlet in Bangalore. Initially, the company
operated company owned outlets. However, keeping in line with its worldwide policy where
Pizza Hut was gradually making a shift from company- owned restaurants to franchisees,
Pizza Hut made the shift in India too

For the services and quality of the food served at Pizza Hut people are highly satisfied with
Pizza Hut . People were satisfied with Pizza Hut and give it 7.4 / 10

overall . I also come to know that most of the people visiting Pizza Hut are between 19 to 25
years of age

The project on “CUSTOMER SATISFACTION FOR PIZZA HUT PRODUCTS AND

SERVICES” at “PIZZA HUT” will help in exploring those dimensions which were not
known to many but with the help of the following project those areas will be highlighted. It
would also help in knowing the various competitors of the industry and exploring the areas
through which competitive advantage could be obtained. This study is primarily intended to
oversee and evaluate the customer satisfaction level of Pizza Hut as a brand of new
generation food item.

In competitive scenario it becomes very necessary for the manufacturers to woo the
prospective customer by offering the desired features in the product and more value for
money so as to “delight them”

The people of all cities have been known for their taste for food like the ‘ Rajma Thalis ‘,
‘Punjabi’ , ‘ South Indian’ , ‘Chinese’ and even , ‘ Bhaaji Pav ’ etc. Pizza is very different

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variety both in taste and structure , my study is aimed at finding out the market response to
this item as well as analysing the customer satisfaction level of Pizza Hut in relation to this.

The reason for choosing Pizza Hut is that , here we will be able to meet & communicate with
all age groups & can share their perception about Pizza Hut and can identify their level of
customer satisfaction from Pizza Hut .

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 STATEMENT OF PROBLEM

The study has been conducted in order to understand the Customers opinion and Satisfaction
level of various products and services research titled “A STUDY ON CUSTOMER
SATISFACTION FOR PIZZA HUT PRODUCTS AND SERVICES” has been
conducted.

Pizza hut is located almost everywhere in the country, even though as a giant food chain
company it is not easy to handle and know the customers mind and perception about
the company. As different people from different places have different tastes, preferences and
outlook about the food, price, locality and services. The research is conducted to know the
overall wants, need, choice and wish of the valuable Customer so that Pizza Hut can create
uniqueness and create value to their product and service from other competitors like Dominos
and Uncle Sam Pizza, dominos and your’s pizza.

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 PROFILE OF PIZZA HUT

It is the largest pizza restaurant company in the world in terms of both the number of outlets
and the percentage of market share that it holds. A subsidiary of PepsiCo, Inc., the company
oversees more than 11,000 pizza restaurants and delivery outlets in 90 countries worldwide.
In October 1997, the company expected to become a subsidiary of Tricon Global Restaurants,
Inc., formed from the spin-off of PepsiCo’s restaurant holdings.

The legacy of Pizza Hut began in 1958, when two college students from Wichita, Kansas,
Frank and Dan Carney, were approached by a family friend with the idea of opening a pizza
parlour. Although the concept was relatively new to many Americans at that time, the
brothers quickly saw the potential of this new enterprise. After borrowing $600 from their
mother, they purchased some second-hand equipment and rented a small building on a busy
intersection in their home- town. The result of their entrepreneurial efforts was the first Pizza
Hut restaurant, and the foundation for what would become the largest and most successful
pizza restaurant company in the world. Over the past four decades we've built a reputation for
excellence that has earned us the respect of consumers and industry experts alike.
Our products have been voted Number One in countless consumer surveys nationwide. And
our accomplishments as an innovative business leader have been cited by such respected
publications as Restaurant Business, Fortune and The Wall Street Journal. Pizza Hut, Inc., a
division of Tricon Global Restaurants, Inc., has more than 7,200 units in the U.S. and 3,000
units in more than 86 other Countries. What did it take to build a successful business of that
magnitude? It took hard work, to be sure. And it took a commitment to quality and a
dedication to service and value. But perhaps as much as anything, it took the qualities of
entrepreneurship, growth and leadership which have characterized our business through
nearly four decades of success. Pizza Hut franchisees, for example, exemplify the
entrepreneurial spirit which launched the system back in 1958. Through their interest and
initiative, the Pizza Hut system was able to develop new territories both in the United States
and overseas.

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Tricon is the parent company to two other segment leaders, Taco Bell and KFC. When
combined with Pizza Hut, these organizations make up the world's largest restaurant group,
with almost twice as many units as McDonald's. When it comes to leadership our proactive
approach to product development and marketing provides ample evidence of our abilities.
Beginning with the original thin crust pizza first served in 1958, Pizza Hut has made
continuing efforts to refine our products, and to develop new products suited to every
consumer taste.

Today, our five major products, Pan Pizza, Thin 'N Crispy pizza, Hand-Tossed Style pizza,
Stuffed Crust Pizza and The Big New Yorker Pizza are loved by millions around the world
and have become the standard by which all others are judged. We are working together to run
great restaurants in order to be the best at making and serving the best pizza in America. That
means we're willing and able to go to any lengths to make our customer's experience with
Pizza Hut an enjoyable one. And it means we strive to present the finest products the industry
has to offer, and to provide those products wherever and whenever people want them. Yes,
we've come a long way since that opening night back in 1958 when pizzas were given away
to generate interest in the fledgling business. And through the strength of our heritage, our

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culture and our people, we look forward to even more success in the years ahead.

1 1958 to 1980
2 1982 to 2005
3 2008 to 2019

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FROM 1958 TO 1980

1958 :

The first Pizza Hut restaurant opens in Wichita , Kansas, started by two college –aged
brothers who borrowed $600 from their mother.

1959:

Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka, Kansas.

1965:

"Putt-Putt to Pizza Hut" musical jingle developed for Pizza Hut's first television commercial.

1967:

World's largest pizza (six feet in diameter) is baked and served at the grand opening of a Fort

Worth, Texas Pizza Hut restaurant.

1968 :

International market entered with opening of Pizza Hut restaurant in Canada. Pizza Hut

serves a million people a week at its 310 locations.

1971:

Pizza Hut becomes the number one pizza restaurant chain in the world in both sales and

number of restaurants.

1972:

Pizza Hut, Inc. listed on New York Stock Exchange under the symbol PIZ.

1976:

The 100th international Pizza Hut restaurant is opened in Australia, while entire system

reaches 2,000.

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1979:

Pizza Hut raises $342,000 for Easter Seals from national promotion.

1980:
Pan Pizza is introduced throughout the system. Restaurant numbers 4,000 opens.

FROM 1982 TO 2005

1982:
Pizza Hut serves one and a half million pounds of pasta annually.

1983:
Personal Pan Pizza, with a five-minute guarantee, is introduced throughout the system. Pizza
Hut celebrates 25th anniversary. Pizza Hut employs 10,000 teenagers from 16 to 19 years
old.

1984:
BOOK IT! National reading incentive program is launched with 200,000 elementary students

enrolled. Pizzerias account for 9.9% of all restaurants in the U.S.

1986:

Delivery service, as a new concept, is initiated.

1988:

Hand-Tossed Traditional Pizza is introduced throughout the system. Pizza Hut celebrates its

30th anniversary with a total of more than 6,000 restaurants and delivery units worldwide.

President Ronald Reagan awards Private Initiative Citation to Pizza Hut President Art

Gunther for the creation of BOOK IT! program.

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1989:
The Pizza Hut Jobs Plus program expands nationwide to employ more than 10,000
individuals with physical and developmental disabilities. The Jobs Plus program is
recognized as the largest corporate initiative of its kind in the food service industry. For the
first time in history, Pizza Hut pizza is delivered to the White House. First Lady Barbara
Bush throws a party for 200 Washington, D.C. children during a "Reading is Fundamental"
reception.

1990:
Pizza Hut system sales reach $4 billion. Pizza Hut delivers more than 1,340,000 pizzas on
Super Bowl Sunday, about 7,000 pies a minute. More than 4,000 Jobs Plus employees work
for Pizza Hut. Personal Pan Pizza becomes available at 1,000 Stop 'N Go convenience stores.

1992:
Pizza boxes redesigned to save 275,000 trees a year.

1993 :
Pizza Hut introduces BIGFOOT Pizza -- two square feet of pizza cut into 21 slices. Pizza Hut

leads the entire restaurant industry in growth and sets new company records for sales and

profits.

1995:

Two Customer Satisfaction programs initiated: a 1-800 Customer Satisfaction Hotline and a

Customer Call Back Program, which takes the pulse of 50,000 customers per week. Pizza Hut

launches Pizzeria Stuffed Crust Pizza, which immediately sets company sales records. Pizza

Hut wins the 1995 "Choice of Chains" award for Best Pizza Chain sponsored annually by

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Restaurants & Institutions magazine, making Pizza Hut the "Best Pizza Chain" ten of the last

eleven years.

1996:
Pizza hut comes to India with a dine in restaurant Bangalore that has special vegetarian
pizzas. In additional to traditional Italian toppings, it incorporates Indian favorites such as
Chicken tikkas, Lamb korma etc. in its list of innovative toppings. Along with pizzas, the
menu features appetizers like garlic bread and soups, fresh salads; oven bakes pastas and
choice of ice-cream sundaes. Pizza Hut airs its first ever ad during the Super Bowl. Pizza Hut
delivers 30% of the 12 million pizzas delivered on Super Bowl Sunday. This is the biggest
pizza delivery day of the year.

1997:
Pizza hut opens a restaurant in the capital's building bustling M-block market in Greater
Kailash-I, Unlike the existing Pizza Hut at Shanti Niketan which is delivery counter for just
pizzas, this is dine-in where the entire menu (salads, appetizers, pastas, deserts and of course
pizzas) is available. Letting Delhiites get a taste of Pizza hut and getting them to 'Get real!'.

1998:
Pizza Hut celebrates 40 years of making and serving great pizza.

1999:

New branch has been launched at Navarangpura, Ahmedabad which is

pure veg.

2004:

Second branch has been launched at S.G. highway in Ahmedabad.

2005:

One new types of Pizza has been introduced named “ FRESHIZZA”.

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FROM 2008 TO 2019

2008:

Pizza Hut created the “THE NATURAL” PIZZA, which featured natural ingredients and was
sold in Seattle, Denver, and Dallas.

2009:

It was discontinued in Dallas market.

2015:

The franchise stated it would be pumping more capital into its London branches. Pizza Hut is
installing cocktail bars in its London branches as part of a £60 million bid to win back
"the Nando's generation"

 2019:

In January, Pizza Hut announced it had expanded beer delivery to 300 locations across the
U.S., with plans to expand to 1,000 locations by the summer.

In March, Pizza Hut announced the return of the P'zone after a hiatus of several years.

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PIZZA HUT MOTTO

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In India, Pizza Hut started in 1996 and opened its first restaurant was in Bangalore. Since
then it has obtained a dominant and vital share of the pizza market and has maintained an
engaging growth rate of over 40 per cent per annum.

INVESTMENT DETAILS

The initial franchise fee would be 25 thousand USD or nearly 14 lakh rupees as per the
present conversion rates. Additionally, you will have to pay an annual 6.5% royalty on your
profit.

 Initial Franchise Fee = $25,000

 (Royalties) Monthly Service Fee = 6% of Gross Sales
 National Advertising = 4.25% Gross Sales

Note: The above amounts do not include the initial investment required to construct the
restaurant, grand opening expenses or opening inventory.

WHY PIZZA HUT FRANCHISE?

Starting Pizza Hut franchise in India can be an attractive business plan because of the
international reputation of all Yum! Brands Incorporation , ever-increasing popularity among
consumers, and steadily growing asset.

Pizza Hut serving its speciality pizzas and has locations throughout the world more than 50
years later. Pizza Hut presently located over 40 cities in India.

LOCALES OF OPERATION

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Pizza Hut has enlisted the following locations for the franchise:

 North Zone – Delhi, Haryana, Himachal Pradesh, Jammu And Kashmir, Punjab,
Uttaranchal, Lucknow, Noida
 South Zone – Kerala, Karnataka, Tamil Nadu
 West Zone – Gujarat, Rajasthan, Maharashtra, Goa, Mumbai, Pune, Jodhpur
 Central Zone – Chhattisgarh, Madhya Pradesh, Bihar, Jharkhand
 Union Territories – Andaman and Nicobar, Pondicherry, Chandigarh, Lakshadweep,
Daman and Diu

SPACE REQUIREMENT DETAILS

According to the market standards, they would indicate at least a 1000 Sq Ft. to 1500 Sq Ft.
as the reasonable space requirement for a brand like Pizza Hut.

COMPETITORS OF PIZZA HUT

Below are the 7 main Pizza Hut competitors :

 KFC

 .McDonalds

 .Dominos

 Subway

 .Papa John's Pizza

 Smokin Joes Pizza

 Taco Bell

PARENT COMPANY
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Yum Brands

CATEGORY
Fast food joints

SECTORS
Food & Beverages

TAGLINE/SLOGAN
Your favourite your Pizza Hut

USP
Pizza Hut gives good service, ambience and tasty fresh pizza at outlets.

PIZZA HUT STP

SEGMENTATION:
The segmentation of pizza hut is in B2C & B2B i.e business to customer and business to
business. Under business to customer, pizza hut provides segmentation in respect to different
size of the pizza available, they also provide bundling offers like pizza with coke along with
supplements.

TARGETING:
Middle level and upper level people based upon lifestyle, social life and spending behaviour.

POSITIONING:
Pizza hut has done their positioning in the target market by keeping in view two basic factors
these are as follows:

 Quality
 Frequency

MISSION OF PIZZA HUT

“To be the world’s favourite restaurant brands”

THEIR VALUE
 Making great Pizza
 Making great service
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  Making it a great place
WHAT PIZZA HUT IS ALL ABOUT
 It’s about you!
 It’s about customers!
 It’s about team!
Their jobs will be the best in the world for people who are committed to qualities foods and
satisfying customers better than any one will.

SERVICE PRINCIPLE
1 Employees are our secret ingredients.
2 Say ‘YES’ to customers.
3 Satisfy, capable teams create satisfied customers.
4 Satisfied customers create profits and growth.

PROBLEM SOLVING PRINCIPES

1 Never argue with the customers.
2 Never blame other team members.
3 Solve the problem before it becomes a complaint.
Never let the customers leave unhappy.

COMPANY RULES & REGULATIONS

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 Any violation of following rules will be considered by the company, as act of
misconduct and will be dealt accordingly.

 Reputing for work in a state of intoxication or under the influence of narcotics.

 Violating any safety rules or practices.

 Gambling or beating within the company premises at any time or use of vulgar and
abusing language.

 While feel disobedience of any problem from a supervisor accepting the alternative
way or given matter form a notice board of the company premises.

 Vending, soliciting or collecting contribution for a purpose what- so- ever at any time
in the company premises except when authorized by the management.

 Deliberating working slowly, suspended work and/or restricting output while as on

duty without justified case.

 Provoking, installing or getting involved in a high inside the company premises.

 Utilizing and working equipment for purpose of not other than the work.

 Engaging and political activity distributing and printing matter of any description of
the company premises unless approved by the management.

 Late attendance for not more than 3 days in a month.

 Participating in illegal and unjustified strikes or investing any other employee to

participate in the same.

 Engaging in rights disorderly or indecent behaviour within or in the victny of the

company.

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  Behaving indecently with fellow employees and guests.

 Spreading false rumours and giving false information which put a company and its
employees to disrepute.

 Refusal by an employee to work in another department, beyond normal working hour.

 Refusing to accept the charge sheet and ordered any other official communication.

 If an employee refuse the such as a communication will be put on the notice board
and shall be deemed as served/ send by restricted AD to present /or permanent
addressed.

 Preparing false bills for statement of expenditures.

 Entering the restaurant earlier than half & hours from the state of duty, except when
ask by manger or immediate super wiser.

 Taking notes, drawing, sketching or taking photo graph of any plant work process
accept with specific permission of the management.

 Drinking and smoking within the premises of the establishment.

“Employees are obliged to work honestly and continuously in the company & failed to do
will to the manger to take the appropriate action.”

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 SOME FACTS ABOUT PIZZA HUT

 Pizza Hut serves more than 1.7 million pizzas every day, to approximately 4 million
customers worldwide.

 Pizza Hut is the world's largest pizza restaurant chain, with nearly 12,000 restaurants,
delivery-carry out units and kiosks in more than 86 countries. It employs more than
240,000 people worldwide.

 Pizza Hut uses 2.5 percent of all the milk (over 3.2 billion pounds) produced in the
U.S. every year for cheese. That cheese production requires a herd of 250,000 dairy
cows producing at full capacity 365 days a year. Pizza Hut uses more than 360 million
pounds of REAL cheese per year; of that, 335 million pounds is mozzarella cheese.
Stuffed Crust Pizza used approximately 50% of the 35 million pounds of string cheese
produced in the U.S. in 1995.

 The highest volume Pizza Hut restaurant in the world is in Paris, followed by stores
located in Moscow, Hong Kong and the U.K. Outside the U.S., the country with the
most Pizza Hut units is Australia, followed by Canada and the U.K.

 In 1991, Pizza Hut made one of its most historic deliveries - - to Russian President
Boris Yeltsin and his supporters, who prevailed over an attempted political coup.
When food supplies dwindled in the Russian Parliament Building, Yeltsin called
Pizza Hut delivery.

 Pizza Hut uses more than 700 million pounds of pepperoni per year. If you lay those
pepperoni slices side by side, they would create a paths that would stretch around the
world twice and go to the moon!

 There are 4.2 billion pizza purchases made every year, which equates to 11.5 million
purchases every day. Half of these purchases are done on Friday and Saturday.

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 A national survey commissioned by Pizza Hut revealed that 18-29 year old males
preferred pizza to ice cream, cookies and candy when indulging their palates and
nearly one-third of those surveyed rank pizzas as their favourite indulgence food over
cookie, cake and candy.

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 SCOPE OF THE STUDY

 This research is useful for PIZZA HUT to understand the expectations and

requirements of customers and can serve them in a better way.

 This research was conducted from March to April .

 This study targets all income and all age group peoples.

 The respondents have been taken from all Delhi NCR for this study.

 The satisfaction level was measured through some statistical methods and charts.

 The respondents from Delhi have been taken for this study.

IMPORTANCE OF STUDY

In this competitive arena FOOD INDUSTRY is facing a tough competition. PIZZA HUT,

being a player obviously have to compete with various players like DOMINOS, YOUR’S

PIZZA, MC DONALD, etc., with their stringent rules and regulations guided by

GOVERNMENT. Hence in order to understand about the customers requirements their likes

and dislikes preference is sine-qua-non for PIZZA HUT.

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 LITERATURE REVIEW

Satisfaction is a critical measure of a firm’s success and has been shown to influence attitude,

repurchase, and work-of-mouth communication (Sivadas and Baker-Prewitt, 2000); to be a

good predictor of future purchase behaviour (Kasper, 1988); to influence profit (Anderson et

al., 1994); and, in the long run, to lead to customer loyalty (Oliver, 1997). Additionally, Day

(1994) found that customer satisfaction led to greater customer retention, while Huber et al.

(2001) found satisfied customers were willing to pay higher prices.

Despite the abundance of literature on customer satisfaction (Cardozo, 1965; Oliver, 1997),

Giese and Cote (2000) acknowledge that a generally accepted definition of customer

satisfaction has not been established .Giese and Cote’s (2000) multi-method study elicited the

following definition: customer satisfaction is identified by a response (cognitive or affective)

that pertains to a particular focus (i.e. a purchase experience and/or the associated product)

and occurs at a certain time (i.e. post-purchase, post-consumption).

Given this definition, a customer’s satisfaction with his/her experience may be an outcome of

the value provided by the consuming experience. Carpenter and Fairhurst (2005) showed that

utilitarian purchasing benefits and hedonic purchasing benefits had a positive impact on

satisfaction. Eroglu et al. (2005) looked at the relationship between perceived retail crowding,

purchasing value and satisfaction and found that perceived retail crowding had a negative

effect on purchasing value and, in turn, satisfaction. If the purchasing experience provides

qualities that are valued by the customer, satisfaction with the food store is likely to result.

Customer satisfaction in food retailing ,65 Individual customers have different motivations

for purchasing that food stuff. These include diversion from daily routine, learning about new

products or trends, or enjoyment of bargaining (Tauber, 1972). Some customers are more

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task-oriented while others are more activity-oriented (Babin et al., 1994). These differences

mean that they will find value in and also gain satisfaction from diverse aspects of the

purchasing experience.

All fast food outlets must understand these differences in order to create store formats and

offer-related attributes that meet the needs of their target segment(s). Among apparel food

outlets, for example, food outlets have different target markets, and, thus, different market

strategies (product assortment, quality, price and services) than specialty apparel retailers

(Ma and Niehm, 2006).

As such, customer expectations surrounding the outlet experience may vary across food

outlets and products which can, in turn, mean that satisfaction will also vary by the type of

seller and/or type of product offered at outlet. While numerous studies on grocery/food

retailers have been conducted (Brown, 2001; Doyle and Fenwick, 1974-1975; Hare, 2003),

there is a scarcity of research which draws comparisons between specialty and conventional

stores and food shopping behaviour.

Additionally, there is a lack of food industry research examining satisfaction and store

attributes (Carpenter and Moore, 2006). Thus, we use department and specialty outlet

literature focused on apparel where research on specific grocery format shopping behaviours

is scant. We posit that the attitudes of conventional grocery shoppers will be comparable to

those of department store shoppers, while specialty grocery store shoppers will share many of

the same characteristics as specialty apparel shoppers.

In both the apparel and food industry, customers often shop in conventional store settings for

the products they need and expect to find (e.g. national brand products and staple food items).

Specialty outlets can be categorized as offering customers something different (e.g. organic

foods, unique brands and personalized service) and may differentiate themselves via product

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assortment or through customer relationship management (Hansen and Solgaard, 2004).

Conventional food stores and department stores offer a broad merchandise selection and

appeal to a wide range of customers.

Specialty outlets focus often more on personalized service or unique product offerings. “In

effect, specialty shopping is a reaction against the impersonal coldness of supermarket

shopping-it is an attempt to impart colour and fun into an everyday activity” (Milligan, 1987,

p. 66). Specialty outlets offer merchandise targeted at specific customer segments, create

niche market opportunities, and focus on providing outstanding service (Gagliano and

Hathcote, 1994).

While we did not identify studies which directly compared overall satisfaction between

specialty and conventional outlets, Anderson et al. (1994) posit that stores following “niche”

or differentiated strategies are likely to be more successful at satisfying customers than stores

pursuing other strategies.

A differentiated approach is likely to lead to higher levels of satisfaction with specialty

grocery outlets compared to conventional outlets.

Building on this logic, we propose: H1. Store satisfaction will be stronger for specialty outlets

than for conventional outlets. Research has historically shown a relationship between outltets

attributes and retail format choice.

Food outlets choice is influenced by a customer’s individual values and their outlet image

which, in turn, is based on perceived outlet attributes (Newman and Cullen, 2001). IJRDM

37,1 66 Outlet attributes, such as quality, price, and variety, affect shopping habits in grocery

chains (Doyle and Fenwick, 1974-1975). We focus on four store attributes: price, product

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assortment, quality and service and compare those attributes by outlet format (conventional

and specialty outlet).

These attributes were selected because retailers can adjust strategies related to these attributes

relatively easily, compared to other attributes, such as outlet location. Specific discussion of

each follows.

Price

Empirical studies suggest that price, as a determinant of satisfaction, varies by outlet format.

For example, overall price image of a outlet affects its choice (Cox and Cox, 1990). Price

image has implications for outlet patronage, and strategic decisions related to selecting a

target customer base and creating in-outlet environments (Desai and Talukdar, 2003).

Food pricing strategy, for example high-low (HILO) pricing, has a direct effect on customer

purchase behaviour in conventional food outlets: large basket customers prefer a outlet which

offers an EDLP ( Every Day Low Pricing) format, while small basket shoppers prefer a outlet

that offers a HILO (High low Pricing) format (Bell and Lattin, 1998). People who shop for

economical brands also tend to select “economical” outlet formats (Baltas and

Papastathopoulou, 2003).

Arnold et al. (1983) found low prices to be the second most important food outlet

characteristic for fooder ;outlet location was first. Price is a significant predictor of outlet

satisfaction for Australian fooders (Miranda et al., 2005).

Based on the premise that all food outlet attributes are not equally important in affecting

food outlet choice, Paulins and Geistfeld (2003) investigated customer perceptions of outlet

attributes across women’s apparel outlets, and found that a larger portion of respondents

perceived discount outlets and food outlets to have reasonable prices while only a moderate

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portion of respondents perceived specialty outlets to have reasonable prices. In contrast,

specialty outlets customers may be less price sensitive. For example, midrange and high-

fashion specialty store customers placed the lowest importance on low price as a patronage

determinant (Lumpkin and McConkey, 1984).

Price was ranked least important for specialty store customer groups, while it ranked much

higher in importance for food outlets customers and discounter/mass merchandiser customers

(King and Ring, 1980). Thus, specialty grocery store customers may be more willing to pay

higher prices for their groceries than conventional shoppers.

Thus, we propose: . Price is positively related to store satisfaction for both specialty and

conventional outlets. The relationship between price and satisfaction is stronger for

conventional stores than for specialty stores.

Product

Product variety influences a customer’s perception of a store (van Herpen and Pieters,

2002). In turn, perceptions concerning product variety influence both satisfaction and store

choice (Hoch et al., 1999). The availability of a wide variety of products is ranked higher as a

store patronage attribute among department and discount store shoppers than specialty store

shoppers (Lumpkin and McConkey, 1984), indicating expectations surrounding product

assortment vary by store type.

Customer satisfaction in food retailing 67 Conventional grocery stores tend to be larger than

specialty food stores and are likely to carry a wider variety of products in its assortment than

a specialty store. Supermarket shoppers ranked product variety third behind location and

price as determinants of store patronage (Arnold et al., 1983).

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Specialty stores focus on “a specific category or group of related merchandise categories, for

relatively narrow target markets” (Ma and Niehm, 2006, p. 623). Gagliano and Hathcote

(1994) indicated that specialty stores are able to tailor merchandise to specific customers in

niche markets.

Paulins and Geistfeld (2003) found that when a store had an appealing merchandise

selection, it became a key reason why that store was considered desirable. As such, it is

hypothesized that: Product assortment is positively related to store satisfaction for both

specialty and conventional stores. The relationship between product assortment and

satisfaction is stronger for specialty stores than for conventional stores.

Quality

Product quality and product features were considered the most important product choice

criteria in a study of Greek food customers (Baltas and Papastathopoulou, 2003). Quality is

seen as “a satisfaction-maintaining factor in the supermarket sector” in that improvements in

quality have a small positive impact on satisfaction while reductions in quality of the same

magnitude have a significantly greater chance of reducing satisfaction (Gomez et al., 2004, p.

273).

For specialty store customers, merchandise quality is an important differentiating factor. In

one study (Lumpkin and McConkey, 1984), specialty store customers scored product quality

higher in comparison to other store formats, demonstrating the importance of product quality

for these customers.

A similar study also found product quality to rank considerably higher for specialty

customers when compared to mass merchandiser and department store customers (King and

Ring, 1980). We expect similar high ratings for product quality for specialty grocery store

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customers. Thus, we propose: Product quality is positively related to store satisfaction for

both specialty and conventional stores. The relationship between product quality and

satisfaction is stronger for specialty stores than for conventional stores.

Service

While the literature on customer perceptions of service and its impact on food store shopping

experiences is sparse, empirical work drawing comparisons between specialty and

department store customers provides guidance on the strength and direction of these

characteristics to store patronage.

Specialty store shoppers view service (via store associates) to be one of the most important

determinants of store patronage. Sales associates play a pivotal role in a customer service

situation, with the most important attributes being store clerk attitude and treatment of

customers (Gagliano and Hathcote, 1994).

At the same time, for department and discount store shoppers, sales associate service ranks

much lower on the list of important shopping determinants (Lumpkin and McConkey, 1984).

Knowledgeable and helpful salesclerks are viewed as the strongest determinant of store

patronage among specialty store shoppers, considerably higher than department store and

mass merchandiser shoppers (King and Ring, 1980). In one study of customer service in

specialty and conventional grocery stores, customer perceptions of service were found to vary

greatly (Kirkup et al., 2004). Brown (2001) found that customers who shop small grocery

chains placed greater importance on service quality than patrons of large grocery store chains.

Thus, we propose:. Store service is positively related to store satisfaction for both specialty

and conventional stores. The relationship between store service and satisfaction is stronger

for specialty stores than for conventional stores.

29
 SUMMARY

Basically all these factors i.e. PRODUCT , PRICE , QUALITY & SERVICE affects the

demand and supply of the various food products. Every consumer have different perception

related to the product. It is so because of their taste & preferences. We can take an example of

lower , middle & upper class peoples.

So lower class people prefer to consume that food item whose price is low which means

quality of that particular product is also low but he may not be interested in the services

,which is provided by that particular food outlet.

Now , middle class people have different perception for purchasing the food stuff. He wants

good quality product in less price along with good services. That’s why these factors make

different choices for different type of peoples which is directly related to their needs , likes as

well as dislikes.

Upper class peoples think that if the price of the product is high then the quality of the

product is also good. According to them high price tends to high and good quality and vice

versa.

30
 CHAPTER 2
RESEARCH METHODOLOGY

31
A survey was developed based on an extensive literature review of well-established

constructs used in customer behaviour studies. The survey was pretested among graduate

students and academicians familiar with food store retailing.. Survey respondents were first

asked if they purchased at convenient food stores, and, if so, they were asked to provide the

relevant store from the choices given in the relevant questionnaire.

Sample names of conventional food stores were provided. Respondents were then asked

specific purchasing behaviour questions with respect to that food outlet (e.g. purchasing

frequency and which income and age group is spending more comparatively).

Questions relating to the food store satisfaction, price, product assortment, quality and store

service were included in subsequent sections. Participants were asked to indicate their

agreement with 15 questions on a choice of 4 to 5 options , some of the questions have

scaling from ( 1 to 5 and 1 to 10)

Each respondent had the opportunity to record his/her responses for a conventional store (if

they indicated in the first section that they only purchase from that conventional outlet)

Then they choose their permanent food outlet from which they regularly or often consume

food item. Questionnaires were sent to 200 peoples . from those 200 peoples , 20

questionnaire were not filled by the peoples because of some issues like attitude , ego , time

consuming process or etc. Out of these 200 , 180 respondents completed the survey in a

perfect manner.

This survey is totally unbiased . Practically every company use market research to measure

market potential , characteristics of their share of market and to make short –range and long

range forecasts.

32
Similarly , I have done the market research for the customer satisfaction on the product and

services provided by the Pizza Hut.

Before going to the research process let’s have a view on objective of the study and research

design.

33
 OBJECTIVES OF THE STUDY

 To know the actual competitors of the Pizza Hut.

 To know which income group spends more money for consuming fast food.

 To analyse which age group is more interested in having fast food items.

 To check which mode of order is used by the customers for ordering their food

product.

 To know about the customer preferences of pizza hut products.

 To ascertain customer satisfaction level for products and services provided by pizza

hut .

 To suggest some guidelines to pizza hut in order to provide better and focused

services.

34
 RESEARCH DESIGN

In my research, descriptive research design was used which enable researchers to describe

picture of a phenomenon under research. The strategy of pizza hut were easily understood

due to research done by the researchers. Design involves solving problems, creating

something new, or transforming less desirable situations to preferred situations. To do this,

designers must know how things work and why. Understanding how things work and why

requires us to analyse and explain. This is the purpose of theory. The article outlines a

framework for theory construction in design.

This framework will clarify the meaning of theory and theorizing. It will explain the nature

and uses of theory as a general concept. It will propose necessary and sufficient conditions

for theory construction in design. Finally, it will outline potential areas for future inquiry in

design theory.

This provides the first benefit of research training for the professional designer. Design

practice is inevitably located in a specific, clinical situation. A broad understanding of

general principles based on research gives the practicing designer a background stock of

knowledge on which to draw.

This stock of knowledge includes principles, facts, and theories. No single individual can

master this comprehensive background stock of knowledge. Rather, this constitutes the

knowledge of the field. This knowledge is embodied in the minds and working practices of

millions of people. These people, their minds, and their practices, are distributed in the social

and organizational memory of tens of thousands of organizations.

35
 SAMPLING DESIGN

Sampling method:

In this research I used simple random sampling method . In this simple random sampling

method every element of the population has a known chance of being selected.

Sample size: Sample size is 180

Sample unit: All the consumers of Delhi NCR.

Sample Area: Delhi NCR

36
 DATA COLLECTION

Two ways are introduced for collecting data:-

 Primary Data
 Secondary Data

Primary Data:-
Primary data is one which is collected by the investigator himself for the purpose of a specific
inquiry or study. These data are collected first time as original data.

Method used for collecting data was Survey Method. I had done survey through
“QUESTIONNAIRES”.

Primary objectives:-
1. To identify performance of pizza hut operations.
2. To understand the taste & preferences of the customer.
3. To understand how the marketing mix influence consumer satisfaction level.
4. To analyse how active pizza hut services attract customers.

Secondary Data:-
when an investigator uses the data which has already been collected by other researcher ,
such data is called secondary data.

Sources of secondary data are as follows:-

1. Text books like marketing management, research methodology.

2. Internet is also considered as secondary source for data collection.
3. Magazines are also referred as a secondary data source.

Secondary Objective:-

1. To understand the quality of service maintained in pizza hut.

2. To find out the reason for less demand
3. To find which means of communication plays a vital role to persuade customer.

37
 DURATION OF THE STUDY

The study on customer satisfaction on Pizza hut products and services done in a duration of 2
months i.e March to April.

38
 CHAPTER 3
ANALYSIS AND FINDINGS

39
 PERSONAL INFORMATION

Age

Less than 10 years

10 to 20 years
20 to 30 years
30 to 40 years
40 to 50 years
Above 50 years

INTERPRETATION:-
According to this survey 2% people come in the category of less than 10 years
even 33%, 50%, 9%, 4%& 2% in case of 10-20 years, 20-30 years, 30-40
years,40-50 years and above 50 years.

40
 Gender

Male
Female
Others

INTERPRETATION:-
In this survey it seems that 46% male purchase pizza from pizza hut and 54%
are females.

41
 Occupation

Student
House wife
Business
Service
Senior citizen
Others

INTERPRETATION:-
According to a survey large percentage is of students i.e. 53%. Even the
percentage of house wife are11% and 14% of business, 20% is of service, 1% in
case of senior citizen and 2% are of others.

42
 Income

Below 2,50,000
2,50,000 to 5,00,000
5,00,000 to 10,00,000
Above 10,00,000
Pocket money

INTERPRETATION:-
In accordance with survey the ratio of pocket money is more than
slabs of income i.e. 57% and the percentage of slabs are 17%, 17%,
7%& 2% in case of below 2.5lakh, between 2.5lakh to 5 lakh, 5 lakh
to 10 lakh and above 10 lakh .

43
 Social media

Whatsapp
Facebook
Twitter
Instagram
others

INTERPRETATION:-
According to a survey , twitter seems to be less used social media by respondent
i.e.12% even whatsapp, facebook , instagram and other social media are used by
34%, 26%, 25% & 3%.

44
How many times you go for fast food?

Times you go for fast food

Once in a month
Twice in a month
Once in a week
Twice in a week
Others

INTERPRETATION:-
In this survey only 26% people go for fast food once in a month and18%, 28%,
23%, 6% go for twice in a month, once in a week, twice in a week and in other
cases.

45
 Which place you regularly visit for having fast food?

Visit for having fast food

Hotels & Restaurants

Fast food junctions
Local dhabas & Food vendors
others

INTERPRETATION:-
According to a survey , the percentage people go for hotels and restaurants are
34% whereas 42% go for fast food junctions, 22% go for local dhabas & food
vendors and 2% in case of others.

46
Have you ever tried Pizza?

Tried Pizza

Yes
No

INTERPRETATION:-
In this survey 84% people tried pizza and16% people have no interest in pizza .

47
According to above question if your answer is NO, then what is the
reason?

Reason for saying No

I haven't ever tried Pizza Hut

I have tried other brands

INTERPRETATION:-
According to a last survey 16% people said that they don’t tried pizza, so in this
survey we are able to know the reason behind this and the reason is they haven’t
ever tried pizza hut which is said by 51% people and 49% people said that they
have tried other brands.

48
Which other brands you know?

Other Brands

Dominos
Your's Pizza
Papa John's
Others

INTERPRETATION:-
According to this survey mostly known brand is Dominos ,47% people know
this brand. Your’s pizza, Papa john’s and others are known by 28%, 15% & 9%.

How many times you come at Pizza Hut?

49
 Visit to pizza hut

This is my first time

Twice in a month
Once in a month
Twice in a week
others

INTERPRETATION:-
In this survey we came to know that 15% people tried pizza hut first time
whereas 21% people visit twice in a month, 41%, 8%, 16% visits once in a
month, twice in a week and others.

Where you consume the Pizza?

50
 Place to consume pizza

Home
Office
Social gathering
Malls
Others

INTERPRETATION:-
According to a survey, 39% people like to consume pizza at home, even 13%
like to consume in office and 19% in social gathering, 27% in malls and 2% in
other places.

Which delivery channel you use to purchase Pizza?

51
 Delivery Channel

Application
Drive through
Phone call
Websites
SMS
Others

INTERPRETATION:-
According to this survey 20% peoples used application to purchase pizza.
whereas 19%, 37%, 16%, 4%, 5% in case of drive through, phone call,
websites, sms and through others options as well.

52
How much time Pizza Hut generally takes for Serving Pizza?

Time taken by Pizza Hut to serve Pizza

15 minutes to 20 minutes
20 minutes to 30 minutes
More than 30 minutes

INTERPRETATION:-
In this survey 32% respondent says pizza hut takes 15 -20 minutes to serve
pizza and 41% respondent said it takes generally 20-30 minutes but some
respondent are disagree with serving time of pizza hut and percentage of
respondent is 27%.

At which time you like to consume Pizza?

53
 Time to consume Pizza

Early morning
Morning
Afternoon
Evening
Night
Mid Night

INTERPRETATION:-
According to the survey 2% peoples like to consume pizza at early
morning. whereas 9% in morning, 26% in afternoon, 44% in evening
and 17%&2% in night and mid night.

Which is your minimum order size of Pizza?

54
 50%
45%
40%
35%
30%
25%
20%
15% 12 Inches in diameter or 113
square inches
10% 14 inches in diameter or 154
5% square inches
0% 8.5*12 inches in diameter or
102 square inches
zz
a
izz
a a)
Pi P P izz
e
iu
m rg lar
ed La u
M ang
t
ec
us(r
io
alic
P an

INTERPRETATION:-
According to the survey, the demand of medium size pizza of 12 inches in
diameter or 113 square inches is almost equal to 14 inches in diameter or 154
square inches i.e. 46% and 47% and the demand of the 8.5*12 inches in
diameter or 102 square inches is only 16%. The demand of large size pizza of
12 inches, 14 inches and 8.5*12 inches is 23%, 34%, 20% and the demand of
12 inches, 14 inches and 8.5*12 inches of rectangular pizza is 29%, 22%, 20%.

55
Which type of Pizza you are regularly eating at Pizza Hut?

90%

80%

70%

60%

50%
Veg
40% Non veg

30%

20%

10%

0%
Supreme Signature Favourite Classic

INTERPRETATION:-
According to a survey veg of supreme, signature, favourite and classic are
regularly eating by 77%, 63%, 59% and 65%. The demand of Non veg of
supreme, signature, favourite and classic is 22%, 11%, 12% and 10%.

Are you satisfied with taste, quality and price of the pizza served at
Pizza Hut? Scale them accordingly.

56
 30%

25%

1
20% 2
3
4
15% 5
6
7
10% 8
9
10
5%

0%
Taste of Pizza Quality of Pizza Price of the Pizza

INTERPRETATION:-
According to the current survey scaling of taste of pizza, Quality of pizza and
Price of pizza are as follows:

Taste of pizza: 1-28%, 2-29%, 3-22%, 4-8%, 5-7%, 6-4%, 7-3%, 8&9-10%, 10-
8%

Quality of pizza: 1-22%, 2-11%, 3-28%, 4-13%, 5-5%, 6-7%,7-4%, 8-9%, 9-

7%, 10-10%.

Price of pizza: 1-19%, 2-28%, 3-15%, 4-14%, 5-8%, 6-4%, 7&8-10%, 9-4%,
10-5%.

Would you like to try again pizza at Pizza Hut?

57
 Come again at pizza hut

Yes
No
May be

INTERPRETATION:-
According to a survey 63% peoples agree to try pizza again in pizza hut and 9%
peoples are saying no to try pizza again but 28% peoples are confused they
may try pizza in pizza hut.

With respect to your experience at Pizza Hut Rank these items.

58
 40%
35%
30%
25%
20%
1
15% 2
3
10%
4
5% 5

0%
on m
e
izz
a rts in
gs
rt iti y ti
f p sse er
nu er yo de off
h le iv la it s& ed
alt D ge dd
He Qu r a a
ve e
Be lu
Va

INTERPRETATION:-
In this survey , people rank their experience in pizza hut and do ranking
according to their satisfaction level. So in case of Health nutrition 37% people
give 1 rank, 2 rank by 36% , 3 rank by 29%, 4 rank by 17% and 5 rank by 8%.
Now in case of Delivery time 1 is given by only 22% people , 2 by 38%, 3 by
32%, 4 by 16% and 5 by only 8%. Quality of pizza get rank 1 by 29%
respondent , 2 by 23% , 3 by 30% , 4 by 22% , 5 by 11%. Beverages get rank
almost by same percentage of respondents like 2,3,4 are given 25% for each
and 1 and 5 given by23% and 10%.

SUMMARY OF FINDINGS

59
 Mostly 20 to 30 years of age people are interested in eating pizza at pizza hut.
basically the reason is youth is more connected with fast food.
 The ratio of female over male is comparatively more. It seems that females are
more interested.
 Students are likely to purchase pizza as compare to business , services and
other occupations.
 Whereas those people who get pocket money spend more income on pizza as
compare to other income slabs.
 Fast food junctions got highest percentage where people like to go for fast
food.
 Out of 200 people only 84.4 % people tried pizza.
 The reason for not trying pizza is that they have tried other brands instead of
pizza hut.
 Mostly known brand among people is Dominos.
 41% people go pizza hut ,once in a month .they spend their income only once
in a month on fast food items.
 In this survey, mostly people like to consume pizza at home instead of going
outside.
 Through phone calls , mostly people purchase pizza.
 Basically, it came to know that 28% people are saying pizza hut takes more
than 30 minutes to serve pizza.
 Evening is the most likely time among peoples which means in evening they
like to consume pizza.
 63% people are saying that they want to try pizza at pizza hut.

60
 CHAPTER 4

SUMMARY & CONCLUSION

CONCLUSION & RECOMMENDATION

61
CONCLUSION

o Pizza Hut is a complete family restaurant in a real sense. It tries to provide

customers with full satisfaction. Pizza Hut offers its service in many countries
offering wide range of Pizzas and other food items by trying to fit in the
market of that particular country.

o Pizza Hut being a private sector, in order to thrive and excel, have to
understand about the expectations of customers.

o They also have to understand about their competitors and their nuances in
understanding their Customers.

Since Food Industry is a very competitive one it is high time for Pizza Hut to
understand about their Customers in pizzas and other products with good services.

RECOMMENDATION

o Pizza Hut should increase their advertisements in all media.

o Parking facilities must be improved.

o Pizza Hut should open more branches in Delhi particularly near by Business
areas and students residential areas.

o Pizza Hut has no. of customer using take away services therefore they
should increase the sitting arrangement for them.

o Pizza Hut should try to reduce the price with the same quality & quantity.

62
o Pizza Hut should try to include low calorie Pizzas in the menu.

o Try to improve decorations and interiors of the Dining room.

o Try to include students menu which starts with affordable price.

o Do some social welfare for society.

o It should provide more varieties also.

LIMITATIONS OF THE STUDY

63
 This study although creditable suffers from some limitations which are as follows:-
 To find out the exact satisfaction level of the customers in respect of pizza hut it is so
because sample size may be a little less representative of the universe.
 All questions in the questionnaire were objective type and there were no extra choice
to the respondent.
 The survey might not be able to cover various issues raised by the consumers as the
views are fragmented and a small sample is not enough at all.
 Time and resources were major constraints which limiting the scale of the survey.
 Because of time constraint sample size was restricted to 200.
 Some respondents didn’t respond due to lack of time and other personal issues.
 Some were biased towards their brand, which might not be giving them good
services.
 Personality and conceptual differences were one of the part of limitation of the study.
It may be possible that the results from different researchers are different as they think
differently as they think differently and it may possible that they have different
perception about the research.

64
ANNEXURE

QUESTIONNAIRE

65
NAME ________________

ADDRESS __________________

AGE [] Less than 10 years [] 10 to 20 years [] 20 to 30 years [] 30 to 40 years

[] 40 to 50 years [] Above 50 years

GENDER [] Male [] Female [] Others

OCCUPATION [] Student [] House wife [] Business [] Services

[] Senior citizen [] others

INCOME [] Below ₹2,50,000 [] Between ₹2,50,000 to ₹5,00,000

[] Between ₹5,00,000 to ₹10,00,000 [] Above ₹10,00,000

[] Pocket money

SOCIAL MEDIA [] Facebook [] Whatsapp [] Instagram [] Twitter [] Others

E-MAIL ID _____________________

1. How many times you go for fast food?

[] Once in a month [] Twice in a month [] Once in a week
[] Twice in a week [] others

2. Which places you regularly visit for having fast food ?

[] Hotels & Restaurants [] Fast food junctions
[] Local dhabas & food vendors [] Others

3. Have you ever tried Pizza ?

[] Yes [] No

4. According to the above question if your answer is No , then what is the

reason?

[] haven’t ever tried Pizza Hut [] But I have tried other Brands

5. Which other brands you know?

66
 [] Dominos [] Your’s Pizza [] Papa John’s [] Others

6. How many times you come at Pizza Hut ?

[] This is my first time [] Twice in a month [] Once in a month
[] Twice in a week [] Others

7. Where do you consume the pizza ?

[] Home [] Office [] Social gathering [] Malls [] Others

8. Which delivery channel do you use to purchase Pizza ?

[]Through Applications [] Drive through [] Through Phone calls
[] Websites [] SMS [] Others

9. How much time Pizza Hut generally takes for serving pizza ?
[] 15 minutes - 20 minutes [] 20 minutes – 30 minutes
[] More than 30 minutes

10. At which time you like to consuming Pizza ?

[] Early morning [] Morning [] Afternoon [] Evening [] Night [] Mid night

11. Which is your minimum order size of Pizza ?

12 Inches in 14 Inches in 8.5 * 12

diameter OR diameter OR inches in
113 square 154 square diameter OR
inches inches 102 square
inches
MEDIUM PIZZA

LARGE PIZZA

PANALICIOUS(rectangular)
PIZZA

67
 12. Which type of Pizza you are regularly eating at Pizza Hut ?

YES NO
Supreme
Signature
Favourite
Classic

13.Are you satisfied with taste , quality and price of the Pizza served at
Pizza Hut ? Scale them accordingly.

1 2 3 4 5 6 7 8 9 10

Taste
of the
Pizza
Qualit
y of
the
Pizza
Price
of the
Pizza

14. Would you like to try again Pizza at Pizza Hut ?

[] Yes [] No [] Maybe

68
15.Respect to your experience at Pizza Hut Rank these items :

1 2 3 4 5
Health ,
Nutrition*
Delivery
time
Quality of
Pizza
Beverages
&
desserts
Value
added
offerings

69
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70
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72
BIBLIOGRAPHY

1. BOOKS

 Philip Kotler, Marketing Management, Prentice Hall of India Private Limited,

Eleventh Edition
 Malhotra Naresh k “Marketing Management”5th edition.

2. WEBSITES

 www.pizzahut.com
 www.pizzahut.co.in
 www.about.com
 www.fastfood.com
 Scholar.google.com

73