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Saya, Yeoh Chee Keong mengaku membenarkan tesis Sarjana ini disimpan di Perpustakaan Universiti Malaysia Sabah dengan syarat-syarat kegunaan seperti berikut:

1. Tesis adalah hakmilik U niversiti Malaysia Sabah.

2. Perpustakaan Universiti Malaysia Sabah dibenarkan membuat salin an untuk tujuan pengajian saya.

3. Perpustakaan dibenarkan membuat salinan tesis ini sebagai bahan petukaran antara institusi pengajian tinggi.


(Penuli : YEOH CHEE KEONG) Alamat:

46, Lorong Raja Udang 2, Taman Kingfisher 2, 88400 Kota Kinabalu Sabah

Tarikh: 17 July 2008

Disahkan oleh:


(Penyelia: Dr. Tarikh:

rf!:: I . ,

1"7 (


08 Kim Lian) Sekolah Perniagaan dan Ekonomi

Universiti Malaysia Sabah

CATATAN: Tesis dimaksudkan sebagai tesis Ijazah Doktor Falsafah dan Sarjana secara penyelidikan atau disertassi bagi pengajian secara kerja kursus dan penyelidikan, atau laporan Projek Sarjana Muda (LPSM)







I hereby deClare that the material in this thesis Is my own except for quotations, excerpts/. equations/. summaries and references, which have been duly acknowleclqecl.

1 July 2008 Yeoh Chee Keong










: PE2006-8522



: 24





{pro Jennifer Chan Kim UanJ




I would like to express my deepest gratitude and appreciation to my supervisor, Dr.

Jennifer Chan Kim Uan for all her aclvices, guidance and support in this research work that led to the completion of this dissertation. Her valuable comments and suggestions have made my piece of study to be more complete and practical. I wish to thank all the lecturers In Universlti Malaysia Sabah whom had given me their opinions, comments, suggestions and guidance to make this dissertation a better one.

Nevertheless, I would like to thank the respondents of this study whom were willing to spend their preciOUS time for completing the questionnaires in the data gathering of this study. I would also like to express my token of appreciation and thankfulness to the McDonald's and Burger King Fast Food Restaurant outlets' management which were involved in this study for their cooperation to allow me to carry out my surveys In their premises.

Last but not least, I would like to thank my giri friend, family members and fellow friends for their endless moral support and guidance throughout the dissertation completion process.

Thank you and God bless you all!





This quantitative research was done to Identify the relationship between the fast food restaurant's attributes (variety of food., food taste and Quality., ambience and hygiene., service speed, price and location) and intention to revisit fast food restaurant among the Kota Klnabalu consumers using the model adopted from Goyal & Singh (2007).

thIs study also attempted to find out whether age and monthly Income Significantly influence the relationship between fast food restaurant's attributes and the Intention to revisit fast food restaurant. The research area focused on fast food restaurants which hamburger is their main seiling menu In Kota K1nabalu. Data was collected from 120 respondents whom had experienced dining at the fast food restaurants using the questionnaire survey_ The data was analyzed using the Statistical Package for Social Science (SPSS) software and the result showed that there were significant relationships between variety of food, food taste and quality, service speed and price with Intention to revisit fast food restaurant. However, ambience and hygiene and location were found to have no significant relationships with intention to revisit fast food restaurant. As for the moderating variables, age was found to have no significant moderating influence on the relationship between fast food restaurant's attributes and intention to revisit fast food restaurant. However., monthly income was found to have significant moderating influence on the relationship between fast food restaurant's attributes and Intention to revisit fast food restaurant.





Kelnglnan Nengunjungl RestrHan Nllkllnsn SegI!1l1l SenIUM dl KDIII Klnllbalu

Kajian kuantitatif ini dfjalankan untuk mengenal pasti hubungan antara cirl-drl restoran makanan segera (kepelbagaian makanan,. rasa dan kualiti makanan, sua sana dan kebersihan, kelajuan perkhidmatan, harga dan lokasl) dengan keinginan untuk mengunjungi restoran makanan segera semula di kalangan pelanggan dl Kota Kinabalu dengan menggunakan model yang diaplikasi dartpada Goyal & Singh (2007).

Kajian ini juga berhasrat untuk men genal pasti sama ada umur and gaji bulanan mempengaruhi keinginan untuk mengunjungi restoran makanan segera semula.

Tempat kajian ini tertumpu kepada restoran makanan segera yang menjual berger sebagai menu utama mereka sahaja dl Kota Kinabalu. Data diperolehi darlpada 120 responden yang telah menjamu se/era di restoran makanan segera dengan menggunakan borang kajian soal selidik. lJata yang diperolehi dianalisa dengan menggunakan program StatistiCiJI Package for Social ScIence (SPSS). Keputusan yang diperolehi menunjukkan bahawa terrJapat perhubungan signifikan dl antara kepelbagalan makanan, rasa dan kualiti makanan~ kelajuan perkhidmatan dan harga dengan keinginan untuk mengunjungi restoran makanan segera semula. Namun begitu, sua sana dan kebersihan serta /okasi dldapati tidak mempunyal perhubungan signifikan dengan keinginan untuk mengunjungl restoran makanan segera semula.

Se/ain ilU, umur didapati tidak mempengaruhi perhubungan dl antara drl-drl restoran makanan segera dengan kelnglnan untuk mengunjungi restoran makanan segera semula. Walau bagaimanapun~ gaji bulanan didapati mempengaruhl.perhubungan di antara cirl-cirl restoran makanan segera dengan kelnginan untuk mengunjungl restoran makanan segera semu/a secara slgnifikan.










1.2 Research Problem 1.3 Research Objectives 1.4 Scope of Study 1.5 Significance of Study 1.6 Key Concepts

1.6.1 Fast food

1.6.2 Attributes of Fast Food Restaurants 1.6.3 Age

1.6.4 Monthly Income

1.6.5 Intention to Revisit Fast Food Restaurant 1.7 Summary and Organization of Study


ii Iv

v vi vii xi xli xlii xlv


5 7 7 8 8 8 8 9 9 9



2.1 2.2 2.3 2.4

2.5 2.6






3.2 3.3 3.4 3.5 3.6 3.7



Uterature on Fast Food Fast Food in Malaysia

Fast Food Restaurant's Attributes 2.4.1 Variety of Food

2.4.2 Food Taste and Quality 2.4.3 Ambience and Hygiene 2.4.4 Service Speed

2.4.5 Price 2.4.6 location

Intention to Revisit Fast Food Restaurant

Relationship between Fast Food Restaurant's Attributes and Intention to Revisit Fast Food Restaurant

Effect of Moderator (age) on Relationship between Fast Food Restaurant's Attributes and Intention to Revisit Fast Food Restaurant

Effect of Moderator (monthly Income) on Relationship between Fast Food Restaurant's Attributes and Intention to Revisit Fast Food Restaurant




Research Framework Research Hypotheses Research Design Instrument Sampling Design Data Collection Method

11 11 13 18 19 19 20 20 23 23 24 26




34 34 35 36 36 37


3.8 Data Analysis 3.9 Summary


4.1 Introduction

4.2 Respondents' Profiles DescrIptive Statistics 4.3 Reliability Test - Cronbach's alpha

4.4 Overview of Variables' Statistics 4.5 Hypotheses Testing

4.5.1 Multiple Regression Analysis 4.5.2 Hierarchical Regression Analysis 4.6 Summary of Findings


5.1 Introduction

5.2 Recapitulation of Study

5.3 Discussions and Implication of Study 5.3.1 The Impact of Variety of Food

5.3.2 The Impact of Food Taste and Quality 5.3.3 The Impact of Ambience and Hygiene 5.3.4 The Impact of Service Speed

5.3.5 The Impact of Price 5.3.6 The Impact of Location

5.3.7 The Impact of Age as Moderator

5.3.8 The Impact of Monthly Income as Moderator 5.4 Condusion

5.5 Umltation and Suggestions for Future Studies


37 38



41 42 43 43 46 48



51 51 52 53 53 54

55 55

56 56 58


APPENDIX A: Questionnaire Sample 68 APPENDIX B: Respondents' Profile DescrIptive Statistics 74

APPENDIX C: Reliability Test 77

APPENDIX D: Multiple Regression Analysis 84

APPENDIX E: Hierarchical Regression Analysis 86

APPENDIX F: Universltl Malaysia Sabah OfficIal Letter for Research 92






Figure 1.1:

Fig"ure 1.2:

Figure 2.1:

Figure 3.1:


Asia-Pacific fast food market segmentation by share percentage in 2006

2006 Asia-Pacific fast food market segmentation by country and share

Model of repurchase intent Research framework



4 27 34





Table 1.1: Fast food market segments and its definitions 1 Table 1.2: Asia-Pacific fast food market value (US$ billion) from 2002 2

to 2006

Table 1.3: Asia-Pacific fast food market volume by transactions from 2 2002 to 2006

Table 1.4: Brand shares of chained fast food by value percentage for 4 2003-2006

Table 1.5: Global brand owner shares of chained fast food by value for 4 2002-2006

Table 2.1: Fast food definitions 11

Table 2.2: Previous researches and findings on fast food Industry from 12 various ,perspectives

Table 2.3: Fast food by subsector: units/outlets 2001-2006 14 Table 2.4: Fast food by subsector: transactions 2001-2006 14 Table 2.5: Fast food by subsector: foodservlce value 2001-2006 15 Table 2.6: Fast food by subsector: percentage foodservice value 15

growth 2001-2006

Table 2.7: Summary of fast food restaurant's atbibutes that best fit the 30 Intention to revisit fast food restaurant from past


Table 2.8: Importance of choice variables for restaurant selection by 32 age

Table 3.1: Statistical methods for hypotheses testing 38

Table 4.1: Respondents' ,profiles 40

Table 4.2: Cronbach's alpha for variables 41

Table 4.3: Means and standard deviation of Independent variables 42 Table 4.4: Model summary of multiple regression analysis 44

Table 4.5: Multiple regression analysis result 45

Table 4.6: Hierarchical regression analysis result for age as the 46 moderator

Table 4.7: Hierarchical regression analysis result for monthly income as 48 the moderator

Table 4.8: Summary of hypotheses testing results 49







Inc KFC Mdm.


QSR RM Sdn. Bhd.



compound annual growth rate Corporation

Doctor in example Incorporated

Kentucky Fried Chicken Madam


Quick Service Restaurants Ringgit Malaysia

Sendlrian Berhad United States







percent dollar or and


standard deviation




1.1 Overview

Some underlying consumer trends resulted in the increasing popularity of eating out over the last three decades (Berry, 1990). The absence of free time among the consumers affected their restaurant chotce whereby they were unlikely to spend too much time searching for the highest perceived standards (Sen, 1998). Based on this trend, fast food


chains 'were trying to


their customers' by bui1dlng and operating numerous geographically dispersed small units rather than a few large unIts (Sradath, 1'998).

Globalization has led a common culture worldwide and the fast food testaurant'is one typita1 form of g1oba1 business (fmErSOn, 1990). "The fast food market Is defined as the sale of food and drinks for immediate consumption either on the prem1ses or 1n des1gnated eating areas shared With other foodservlce operators, or for consumption elsewhere" (Datamonltor, 2007:7). The fast food market defirtltion- excluded sa1es through vending machines and is restricted to sa1es in four specffic food service segments as shown In Table 1.1.

Table 1.1: Fast food market segments and Its definitions

'No. fi5t1'oocl martcet Oetiftitioft


1 Quick Service Locations where primary function is to provide full meals Restaurants {QSR) but where table service Is not offered.

2 Takeaways Establishments that provide freshly prepared food for immediate consumption and where typically 80% or more of revenues come from consumers who take the food off the~remises to consume.

3 , Mobile and street 8ther individual mobile stalls or vans that offer a limited vendors range of freshly prepared food as well as beverages.

4 Leisure locations Locations serving food and drinks for Immediate t:QIlSUOlPtion OIl. premises within Jelsure restaurants that the leisure operator owns and operates itself.

Source: Datamomtor (2007)



In 2006, US$18.4 billion in total revenues was generated from Asia-Pacific fast'food market; this represented a compound annua1 growth ran! (CAGR) of 2.7%

from 2002 to 2006. Asia-Pacific fast food market value In 2006 was US$18.4 billion and represented 7.20/0 growth (Oatamonltor, 2007). Asia-Pacific fast food market value growth was shown in Table 1.2. OVer the same period of time, the United States of America and European markets grew with CAGRs of 3.7% and 3.30/0 1n 2006, to reach respective values of US$ss.2 billion and US$19.s billion (Datamonitor, 2007).

Table 1.2: Asia-Pacific fast food market value (US$ billion) from 2002 to 2006

Year US$bmlon % Growth

2002 16.6

2003 16.9 2.20

2004 16.1 -5.10

2005 17.2 7.00

2006 18.4 7.20

CAG~ 2002-2006: 2.70

Source: Datamonltor (2007)

In 2006, market consumption volumes Increased with a CAGR of 2% between 200Z'and' 2006 to reach a total of 26.5 biftiuntransattluns. In 2006, Asia-Pa'dftt'fa-st food market volume was 26.5 billion transactions which represent 1.8% growth (Oatamonltor, 2007). Table 1.3 shows Asia-Paclf1c fast food rnaTketvolume growth


terms of transaction amount for the period of 2002 to 2006. By the end of 2011, the

market'S" volume is

expected to


to 29 bittion transactions, representing


CAGR of 1.8% for the period of 2006-2011 (Data monitor, 2007).

Table 1.3: Asla-Padfic fast food market volume by transactions from 2002 to 2006 Yea,.- Transations {blUion) 1M» Growth

2002 24.5

2003 25.0 2.00

2004 25.5 2.20

2005 26.0 1.80

2006 26.5 1.80

CAG~ 2002-2006: 2.00

Source: Datamonitor (2007)

In 2006, the quick service restaurants segment was the market's most

'Iaefatlve" segment:; genercftinytota1leVenues ofUS$1'O.7 biffioo, equIValent .'9




the market's overall value. The takeaways segment market was 21.1% and mobile and street vendors market segment was 10.1% In 2006.The leisure location segment contributed revenues of 10.9% of the market's overall value in 2006 (Data monitor, 2007). Figure 1.1 shows Asia-Pacific fast food market segmentation by percentage share In 2006.

Figure 1.1: Asia-Pacific fast food market segmentation by share percentage in 2006

Takeaways 21.1%

Source: Datamonitor (2007)

M:lbie & Str~t

Vendors 10.1%

Quick Service Restaurants


As the perfonnance of the market is forecasted to accelerate, an anticipated CAGR of 6.2% is expected for the 2006-2011 period and drive the market value to US$24.9 billion by the end of 2011. Comparatively, United States of America and European markets Is expected to grow with CAGRs of 3.7% and 3.3% respectively over the same period, to reach respective values of $66.2 billion and $22.9 billion in 2011 (Datamonltor, 2007). Asla-Padtlc fast food market segmentation by country and percentage share fOr 2006 is shown in Figure 1.2. China had the biggest Asia Pacific fast food market share with 38.0% In 2006, followed by Japan 29.7%, South Korea 12.9%, India 3.5% and rest of Asia Pacific with 15.9% (Datamonltor, 2(07).

Global chained fast food market value was dominated by KFC brand which was owned by Yums! Brand Inc with 48.5% In 2006. This was followed by McDonald's with 21.2%, Marrybrown with 6.4%, both A&W and Burger King with 2.4% each as shown in Table 1.4. Yums! Brand Inc dominated the global chained fast food shares with 51.0% of brand value in 2006. McDonald's Corp owned 21.2%

of the market value and Burger King Holdings Inc owned 2.4% of the market value as showed in Table 1.5.


Figure 1.2: 2006 Asia-Pacific fast fOOd market segmentation by country and share

Rest of Asia- Pacific 15.9%

Source: Datamonitor (2007)

Mia 3.5%

Japan 29.7%

China 38.0%

Table 1.4: Brand shares of chained fast food by value percentage for 2003-2006

0/0 Value Global Brand Owner Year

Brand 2003 2004 2005 2006


Yum! Brands Inc 45.6 45.8 46.8 48.5

McDonald's McDonald's Corp 23.7 22.6 22.0 21.2

-Marrybrown Marrybrown FrIed Chicken Scln. Bhd. 6.4 6.4 6.4 6.4

A&W Yum! Brands Inc 2.1 2.3 2.4 2.4

Burger King Burger King Holdings Inc 1.5 2.2 2.4 2.4 Source: Euromonitor Intemational (2007)

Table 1.5: Global brand owner shares of chained fast food by value for 2002~2006

CVo value Year

Company 2002 2003 2004 2005 2006

Yum! Brands Inc 50.9 47.7 48.1 49.3 51.0

McDonald's Corp 20.0 23.7 22.6 22.0 21.2

Marrybrown Fried Chicken Sdn. Bhd. 6.7 6.4 6.4 6.4 6.4

Burger King Holdings Inc 1.4 1.5 2.2 2.4 2.4

Source: Euromonltor International (2007)


Intention to revisit fast food restaurant is part of consumer choice making

process. There are two approaches In research on predicting consumer chol


are stochastic approach or attitudinal approach (AI-Weqaiyan, 2005).




choice models explained that next future brand choice is predicted using conditional probability identifying the parameters of prior choice using linear models, while assuming that past inddents of choice to be totally independent. Some researchers challenged this approach and argued that uncovering the underlying motivational and psychological processes that identify explanatory market variables Is more Insightful than modelling the behaviour mathematically (Bums & Krampf, 1992).

Deterministic models, assumed that interdependency and sequential linkages among brand choice decisions and predict the next choice on the basis of prior choice history (Meyer &. Kahn, 1991). This model is also supported by cadotte et a/. (1987), whom stated that probability of repurchasing largely depends on prior experience.

Deterministic models focus on identifying the key determinants of consumer brand choice when the choice has been made under the conditions (A1·Weqaiyan, 2005).

This approach Is consistent with the general view that consumer decision making process vary considerably in terms of task complexity, involvement, cognitive effort and not homogenous in nature. The intention to revisit fast food restaurant in this research was based on the deterministic models which viewed choice more as a deliberate action where some thought, information search and comparisons which had taken place prior to make that choice (A1-Weqaiyan, 2005).

Presently, a major trend in Malaysia is that more people are eating meals outside their homes and fast food restaurants are benefiting from this apparent trend.

However, there are limited attentions or study within the hospitality and food services studies on consumer behaviour in connection to fast food (Gagozzi et aI., 2000; lee&. lee, 2000).

1.2 ResearchProbiem

It Is important for fast food restaurant sectors to know what the customers want and what makes them come back agaJn. Restaurateurs are wonying about customers' expectations (Ner the following years (Dailey, 1998). The high rate of failure in the food·servlce Industry suggests that the management may wish to seek attributes that are responsible for customers' return business because customers have their own reasons to want to retum to any restaurant (Soriano, 2001). ,fast





customers are constantly seeking quality, value and desirable environment away from the pressureS of daily life (SorianO, 2001). In order to gain cOmpetitive advantage in today's market, fast food restaurants are striving to offer good food, good service and gOod value in a favourable ambience. Identifying the key factors affecting consumer choice helps manager to (Bolton et al, 2000):

1. differentiate their brands on customer-valued dimensions,

2. create brand loyalty using a more targeted approach to manage marketing resources,

3. Increase brand equity

Research on understanding the underlying Intentions to revisit fast food restaurant is relativelY limited.




fact that most growth in fast-food market is gained from expansion to International markets, validity and generalizablllty of western Oriented findings are seriously questioned In the abSence of empirical investigation. It could be argued that fast food restaurant operators continued to be hampered by both the lack of appropriate customer feedback and problems related to the content validity of guest comment cards, I.e. they measure post-dlnlng perteptions only (Kivela

et aI.,

1999a). This research was dOne to bridge this research gap to identify the relationship between fast food restaurant's attributes and the intention to reviSit fast foOd restaurant among the Kota Kinabalu consumers.

Probability of repurchasing largely depends on prior experience (Cadotte et al, 1987).

In this researth, the data cOllected was largely based on prior experience Of dining In fast food restaurant. This study also explored how age and monthly income of an individual influenced the customer's intention to revisit fast food restaurant.

This research questions were as follow:

1. Which fast fOOd restaurant's attributes (variety of food, food taste and quality, ambience and hygiene, service speed, price and location) has significant influence on customer's intention to revisit fast food restaurant?

2. How age and monthfy Income can moderately influences the fast food restaurant's attributes with customer's Intention to revisit fast food restaurant.


1.3 Research Objectives

The purpose of this research was to offer knowledge of fast food restaurants attributes in influencing the Intention to revisit fast food restaurant. This research also covered the element of moderating factors which were age and monthly income which impact to influence the customers' intention to revisit fast food restaurant.

The objectives of this study were as follows:

1. To Identify which fast food restaurant's attributes namely variety of food, food taste and quality, ambience and hygiene, service speed, price and location are likely to Influence the intention to revisit fast food restaurant.

2. To determine the moderating Influence of age and monthly Income on the relationship between the fast food restaurant's attributes and customer's intention to revisit fast food restaurant.

1.4 Scope of Study

This study looked into the customers' intention to revisit fast food restaurant within the Kota Kinabalu vicinity. Fast food restaurants with burger as their main selling menu were chosen, which were~

1. 4 branches of McDonald's (Centre Point, Api-Api Plaza, Karamunsing and Shell Jalan Sulaman)

2. 3 branches of Burger King (Centre Point, Damal and Kota Klnabalu).

The customers that were the subject of Interest In this research Included the locals from all types of races and background whom were either existing or walk-In customers of particurar fast food restaurants whom were experiencing the product, Service and fiK:llities provided by the fast: foOd restaurantS.


1.5 Significance of Study

By determining the attributes that influenced the intention to revisit fast food restaurant among the Kota Kinabalu local residents, this study provided:

1. A clear understanding of the relationship between fast food restaurant's attributes and Intention to revisit fast food restaurant, moderated by age and monthly income.

2. Information to the management on the importance of fast food restaurants' attributes which influence their customers' Intention to revisit the fast food restaurant.

3. A guideline and room for Improvement for the fast food restaurants to enhance their attributes offering to create brand loyalty using a more targeted approach to manage marketing resources.

1.6 Key Concepts

The following terms were further clarified to avoid confusion on its meaning in the context of this study.

1.6.1 Fast Food

Fast food is defined as limited menu of foods that lend themselves to production-line techniques; suppliers tend to specialize in products such as burgers, pizzas, chicken or sandwiches (Bender & Bender, 1995).

1.6.2 AtbibutBs of Fast Food Restaurants

As conceptualized by Goyal & Singh (2007), fast food restaurants' attributes were categorized Into six major attribute groups that might Influence the intention to revisit fast food restaurant among the consumers. The definitions of the attributes were as follow:






No. Attributes DefInitions

1 Variety of food - Different types of foods (Woodford & Jackson, 2003).

2 Food taste and - How good or bad is the particular flavour of food and its quality nutritional value (Goyal & Singh, 2007).

3 Ambience and - 'Package environment' that create or reinforce leanings hygiene toward product purchase and the degree to which people keep themselves or their surroundings clean (Kotler


aI., 2006).

4 Service speed - How fast any act or performance that one party can offer to another that is essentially Intangible and does not result in the ownership of anything (Kotler et al, 2006).

S Price - The amount of money for which something is sold (Woodford & Jackson, 2003).

6 Location - The place or position (Woodford & Jackson, 2003).

1.6.3 Age

Age is defined as the period of time someone has been alive (Woodford & Jackson, 2003).

1.6.4 Monthly Income

Amount of money earned from doing work or received from investments every month (Woodford & Jackson, 2003).

1.6.5 Intention to Revisit Fast Food Restaurant

Want and plan to go to fast food restaurant again (Woodford & Jackson, 2003).

1.7 Summary and Organization of Study

The fast food restaurant's atbibutes were adopted from Goyal & Singh (2007) to

Identify the relationship between the attributes and Intentlll ta

reyr 5




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