Consumer Behavior at McDonalds - Essay Example

?Consumer Behavior at McDonalds Executive Summary This paper analyses the external influences on consumer behavior at McDonalds within the context offast food industry. The paper analyses how Macdonald has been affected by external consumer influences as well as consumer views concerning health effects of fast foods. The paper analyses the cultural influences of consumer behavior towards fast food. In India, the culture of the population demands that beef and mutton should be prepared based on cultural beliefs and norms. In addition, beef and mutton offered to Muslim customer should be prepared based on religious laws. Fast food products not prepared based on cultural norms cannot receive attention in the market. The paper also analyses the influence of stiff competition in the behavior of customers towards McDonald’s products. In the current food industry, multiplicity of competitors determines how consumers purchase McDonald’s products. Further, the paper discusses the health influences that affect the consumption fast food products in the global market. Fast foods rich in high sugar content and calories have been blamed for increased cases of diabetes and obesity. Table of Contents 1.0 Introduction…………………………………………………………………………………3 1.1 Cultural influences…………………………………………………………………………...3 1.2 Social influences……………………………………………………………………………..4 1.3 Personal and economic influences……………………………………………………………5 1.4 Health Influences……………………………………………………………………………..5 1.5 Group Behavior……………………………………………………………………………….6 1.6 Competition…………………………………………………………………………………...7 1.7 Conclusion ……………………………………………………………………………………8 References ……………………………………………………………………………………......9 1.0 Introduction McDonalds is a fast food company with branches in all continents. Several restaurants operate under McDonald’s chain of restaurants. McDonald’s major target consumers include children, adults and teenagers in all their markets. Major markets for McDonald include the United States, Europe, India, and South America. In the fast food industry, competition continues to affects several companies. Macdonald continues to improve their business strategies so that they can attract millions of customers into their business. Consumers continue to face new trends because competitors continue to be innovative in providing healthy food choices for customers. This report analyses consumerism at McDonalds. The report determines factors that motivate consumers to purchase fast food products from McDonalds. In addition, the Report analyses factors that may affect consumer’s ability to purchase fast food products from MacDonald. McDonald’s products include burgers, chicken, fish, deserts, and pork. These foods are classified as fast food products. McDonald’s prepares these foods because of their demand in the market. The society continues to demand ready-made food they can consume without preparing their own in the kitchen. McDonald’s also offers breakfast foods such as McMuffins, breakfast sandwiches, fried egg, bacon and many more. Beverages are also offered in different varieties 1.1 Cultural influences According to Ramanuj (2010), external influences on consumer behavior involve cultural influences. McDonald’ provides fast food choices to consumers in various cultural backgrounds. In India, consumer buying behavior has been affected by the culture of customers. McDonalds provides beef and mutton burgers in India. However, according to Indian culture, consumers do not like food items made of beef and mutton from outside the country. The culture of consumers’ states that; burgers and other meals should be prepared based on religious laws in India. Culture also affects how different religions purchase products from Macdonald. For example, Muslim customers do not purchase beef and mutton burgers prepared without adherence to Sharia laws. Culture, therefore, influences consumer behavior in several countries and markets of McDonalds. In essence, consumer tastes and preferences determine their preferred choices of fast food. Meals prepared without adherence to cultural rules cannot be sold in certain markets. 1.2 Social influences Schlosser, 2012) writes that buying behavior of other customers continues to be affected by other members of the society. In all markets, most people easily influence the buying behavior of their colleagues. Several customers have complained of weight gain after consuming fast food from McDonald’s for several years. Fast food contains fats and excess sugars. The buying behavior of consumers towards foods with high levels of fats and sugars continues to limit McDonald’s business in all markets. In particular, consumers have become aware that fast foods contain high levels of calories and fats that cause obesity and accumulation of fats around the waistline. Fanning, Marsh, and Stiegert (2010) argue that the society continues to be informed on the need to consume healthy food choices that cannot cause health risks such as obesity, diabetes, and cardiovascular diseases. The increasing number of obese children in the United States continues to cause challenges in the production of fast food at McDonald. Parents no longer want their children to purchase fast foods because of health risks. In the United States, obesity is the cause of preventable diseases such as diabetes, high blood pressure, malnutrition, depression, loss of muscle mass and cardiovascular disease. In the process of eliminating lifestyle diseases associated with fast food, McDonald’s continues to introduce healthy food choices such as fruits and vegetable salads to customers. McDonald is also committed towards the health of consumers in all markets. Fruit and vegetable servings have been introduced to attract consumers who have been influenced by the social effects of fast foods. The need for healthy food choices continues to be a priority in the life of several customers; McDonald’s has no choice but give the best product and service to customers (Fanning, Marsh, and Stiegert, 2010). According to Schlosser (2012), consumer behavior towards McDonalds depends on the customer and the environment. Income, perceptions, fads and fancies, social status, and culture are some of the factors that influence consumer behavior towards fast foods produced at McDonalds. The decision to purchase fast food begins with an internal decision or intention. However, children may not make their decisions based on their understanding of the social effects associated with the consumption of fast food. According to Bastra, Kazmi, and Satish (2009), most adults gather information and searches for the available food choices as well as alternatives before making decisions on the final solution, based on various factors. McDonald’s understands that psychological condition of consumers and their decision processes. Restaurants in all parts of the world acknowledge that friends, family and the environment play an important role in making decisions on food choices. McDonald’s offers fast food choices based on nutritional needs of customers. However, majority of customers such as children and teenagers have no knowledge of fast food items that can cause obesity, diabetes, and heart diseases. 1.3 Personal and economic influences Hyaden (2009) writes that McDonald’s major customers include teenagers or the young. The young depend on their parents economically to purchase fast food products. As a result, McDonald cannot achieve the desired profits because teenagers cannot purchase products on a continuous basis based on their economic resources. Fast food choices appeal to teenagers more than adults. McDonalds provides fast food based on tastes and preferences of the youth. According to Fanning, Marsh, and Stiegert (2010), high inflation rates and the rise of food prices have also forced millions of people to depend on fast food products. Fast food products are the cheapest compared to other foods choices in the market. The rising cost of living as well as the economic crisis influences the society to look for cheap alternatives to expensive food items. McDonald’s offers fast food products at cheap prices so that they can appeal to teenagers, children and adults who are not economically sufficient. 1.4 Health Influences Schlosser (2012) argues that fast food items such as meats contain nitrates and monosodium glutamate. The society continues to be aware of their health and the food choices that can cause health complications. External influences on consumer behavior are also based on nitrates and monosodium glutamate contained in meats. These chemicals are used as preservatives of meat products from McDonald’s. Nitrates and monosodium glutamate increased blood flow and can cause a migraine attack. Additives such as nitrates cause headaches and feelings of hangover after consuming fast food. Customers are influenced to purchase McDonald’s products after experiencing health effects. In particular, headaches and feelings of hangover from other customers can influence the behavior of other potential customers towards fast food products. According to Schlosser (2012), fast food consumption has become a social problem. High carbohydrate content in fast food items is responsible for increased prevalence of obesity and diabetes in the United States and other markets. In addition, recurrent consumption of fast food is changing the food habits of teenagers and children. Nutritional transition has been initiated in all fast food markets. As a result, consumers continue to search for healthy alternatives. Consumers also investigate the Caloric value of these fast foods. However, there is health unconscious customer such as teenagers and children who should be assisted in making decisions on healthy fast food items. 1.5 Group Behavior Bastra, Kazmi, and Satish (2009) argue that the socialization process determines external influences on consumer behavior. Each person likes to be in a social group. In social groups, a set of norms, values, or beliefs may affect a person’s taste and preferences to fast food products. Among teenagers, influences are based on the consumption behavior of their peers and parents. When peers prefer McDonald’s fries and burgers, other members of the group has no choice but to adopt the norms, values and beliefs of the group. In societies where fast food is not tolerated because of health risks, teenagers and children cannot consume McDonald products. A reference group may also influence the consumer behavior of customers. Purchase of McDonald’s products by parents and other role models in the society determines consumer behavior. Parents and celebrities may be part of reference groups that influence the consumption of fast foods in a society. For instance, children consume fast food from McDonalds based on their parent’s taste and preferences. In addition, advertisements of celebrities and other public figures consuming McDonald products influences consumer behavior (Bastra, Kazmi, and Satish, 2009). 1.6 Competition According to Thomadsen (2007), Marketing of fast food depends, on consumer behavior and the marketer’s aim, to create higher customer value than the competitors. McDonald’s continues to experience completion from new fast food restaurants and companies in all markets. Consumers make buying decisions based on food alternatives offered by competitors. Price and taste of fast food items has become an important aspect of attracting customers. Bashor (2007) argues that competition continues to increase ion the provision of cheap and tasty food that can attract consumers. In addition, competition has shifted towards inclusion of healthy food choices. Vegetables and fruits have become part of fast food items such as burgers because of the need to guarantee healthy living. Consumers cannot purchase products when they realize that they pose health risks. McDonald’s continues to be innovative in providing healthy food choices concerning beverages, drinks, and meals. Burgers and other fast food items are served based on consumer tastes and preferences. According to Schroder, and McEachern (2005), Consumer value can be described as the total benefit that consumers achieve from the product and the sum of all costs incurred by the consumer, to obtain the food item. In a market environment with several competitors offering substitutes, pricing, promotional strategies, new innovative products or services influence decision making from consumers. In addition, packaging of fast food items also influences the level of competition. In particular, consistent packaging with buying intentions and behavior consumers improves the level of competition at McDonalds. Thomadsen (2007) also argues that consumption of fast food products from McDonalds and other fast food companies gain prominence because of tough competition among several fast food producers in the market. In addition, buying decisions of consumers towards McDonald’s products is also influenced by the multiplicity of players within the markets. Macdonald’s marketing strategies have been designed to capture the economic conditions, health related resistance to fast food, taste and preferences, as well as changing lifestyle. In the current fast food industry, the multiplicity of fast food producers ensures that fast foods are available near the residential area. Competitions also ensure that fast food items are readily accessible in supermarkets and shopping malls and other public places. As a result, the time spent by customers on covering distances in search for fast food has been reduced (Seung, and Vanhonacker, 2007). Competition has shifted towards the provision of healthy choices as well as the ability to locate customers in their residential areas. In addition, price of fast food items has become important in influencing the behavior of consumers. According to Turner (2003), Competitors continue to provide fast food items at affordable process so that they avoid losing customers. Most customers of fast food include children and teenagers. Prices set for teenagers and children must be cheap so that they avoid using product substitutes. Price alone does not influence consumer behavior; in the fast food industry, consumers continue to be aware of the need to live a healthy life. Parents continue to be aware of health risks associated with junk food/fast food. 1.7 Conclusion Culture influences consumer behavior towards consumption of fast food products. For instance, consumer buying behavior, in India has been affected by the culture of customers. McDonald’s provides beef and mutton burgers in India. However, according to Indian culture, consumers do not like food items made of beef and mutton from outside the country. The culture of consumers states those burgers and other meals should be prepared based on religious laws in India. Buying behavior of other customers continues to be affected by other members of the society. In all markets, most people easily influence the buying behavior of their colleagues. Health influences involves the need to provide healthy choices with fruit and vegetable servings. Consumer behavior is also influenced by competition, group behavior, and Personal and economic influences. References Bashor, T. (2007). Future of McDonalds: effects of contemporary marketing strategies in response to changing consumer behavior towards fast food consumption. Manchester: University of Manchester. Bastra, S., Kazmi, S., and Satish, B. (2009). Consumer behavior. Mumbai: Excell Books India. Fanning, J., Marsh, T., and Stiegert, K. (2010). Determinants of US fast food consumption 1994-1998. British Food Journal112. 1 (2010): 5-20. Accessed from: http://search.proquest.com/business/docview/225132843/13D5D52204BC6C756D/8?accountid=45049 Hyaden, N. (2009). Basics Marketing: Consumer behavior. New York: AVA Publishing. Ramanuj, M. (2010). Consumer behavior: insights from Indian market. London: PHI Learning. Schlosser, E. (2012). Fast food Nation: the dark side of the All-American Meal. New York: Houghton Mifflin Hracourt. Schroder, M.; McEachern, M. G. (2005). Fast foods and ethical consumer value: a focus on McDonald's and KFC. British Food Journal107.4/5 (2005): 212-22. Seung H. P., and Vanhonacker, W. R. (2007). The Challenge for Multinational Corporations in China: Think Local, Act Global. MIT Sloan Management Review, vol.48, no.4. Thomadsen, R.  (2007).Product Positioning and Competition: The Role of Location in the Fast Food Industry. Marketing Science, vol.26, no.6: pp: 792-804.  Turner, B. S. (2003). McDonaldization: Linearity and liquidity in consumer cultures. The American Behavioral Scientist47.2 (Oct 2003): 137-153. Read More