The Importance of Customer Experience in the Fast Food Sector

It is true that in the recent time due to this modern era of technology, businesses have found new ways to grow and sustain. The launch of digital technology has facilitated the ways of reaching customers and leveraging this opportunity even the small businesses like the fast sector is also adapting to digital technology such as social media to reach customers and shape their businesses. As digital technology provides a wide market coverage, brands in the fast food sector can target and penetrate the wide market (Kane et al. 2015). On the other side, business also faces the challenge of enhancing or creating “good” customer experience. In the early days, customers could make a purchase irrespective of how experience made them feel. This means most of the buying decisions are made out of a product meeting their needs but not customers’ experience with business.

 This trend has completely changed now; due to advancement of technology, customers have started placing their experience above many other factors like brand reputation, price of items and many more. However, although adoption of digital technology has been a trend in business but it is yet not clear how digital technology is helping businesses to develop customer relationship or what impact digital technology creates on customers; so that consumers create bonds with the brands. Therefore, the selected research title is appropriate to investigate the impact of digital technology in customer relationship development in UK Fast Food sector.

The purpose of the study is to examine the impact of digital technology on customer relationship development. It will also attempt to investigate the role of social media plays in developing customer relationship. The following are the key objectives to meet the stated aims.

H₀-Digital technology has no impact on customer relationship development

H₁– Digital technology has impact on customer relationship development

• To review the importance of digital technology in customer relationship development within fast food industry
• To investigate the extent to which digital technology may gain influence customer relation development and how it can be effectively deployed within UK fast food sector
• To analyse the impact of digital technology and current application used in UK fast food sector for managing customer relationship

As people are always attacked and accustomed to the use of technology and business often treat this as opportunity. However, Fitzgerald et al. (2014) commented that many business owners often overlook technology and how it could affect; how they operate the business in the long future. When it comes to ways that technology influences consumers, Matt, Hess and Benlian (2015, p.341) mentioned that few years back, consumers made purchasing decisions on the basis of news, advertisements, existing experience and the referral from other people. So, technology has changed it to a great extent as author found that almost 61% of customers use search engine to aid them in product research before making the final decision. In response to this statement, Gaber and Wright (2014, p.55) mentioned that larger amount of relevant information about products a visitor could find online, the likelihood of purchasing products also remain high. Fitzgerald et al. (2014) arguably stated that instead of completely relying on consumer digital activities, businesses should rather invest time focussing on increasing online presence through content marketing but enhancing reputation by asking for reviews and rating.

Impact of Digital Technology on Customer Behaviour

 Nonetheless, besides all these critics and suggestions, Pappas et al. (2014, p.189) performed a study and emphasized on brand trust and likeability, which are affected due to customers’ perspectives. According to this author, technological advances made certainly made it easier for the people to introduce online businesses. Consequently, when making a buying decision, several consumers could rely on their level of trust of a brand, how much they prefer or not they will purchase it. So the study suggest that in order to influence consumer behaviour as well as make more sales, business should start by finding ways to become more trustworthy, which can be performed by content marketing. However, Kane et al. (2015) mentioned that instead of waiting for the ways or findings it for being trustworthy, business can enhance trustworthiness and likability by getting past customers to post reviews, rating as well as testimonials. Conversely, Zarantonello and Schmitt (2013, p.263) emphasized on the fact that customer expectation have increased due to this growing development of technology but multiple choices could probably hinder consumers from making a buying decision or purchase

In spite of the fact that digital markets have existed for almost as long as internet services have been available to businesses, studies specific to consumer behaviour in digital markets have been relatively scattered. It is found that while during the first millennium the studies on the areas was comparatively crucial, it is difficult to deal with the research findings. Nonetheless, Gawer (2014, p.1240) argued that mainstream of studies during the period 2000-2010 is not able to reflect the rapid changes in consumer behaviour with respect to digital channels. Generally, studies on digital markets has been particularly centred on e-commerce as well as diffusion. Notwithstanding, it is worth mentioning that theories and frameworks that could integrate the scattered scientific outcome into a big format. According to Shank and Lyberger, (2014) performed a study on general aspects on adoption as well as diffusion of e-commerce as well as digital business solutions and commented that a mainstream of study on diffusion as well as adoption for e-commerce and the consumer behaviour in digital market environment is particularly based on theory of plan of action or intention- behaviour relations. Conversely, Cook (2014, p.265) stated that over the past few decades, habits of shopping or consumers have changed and there is a complete change from segment specific in terms of use of digital technology to studies, browse and purchase products. Consequently, an undeniable as well as non-reversible shift has been found in the field in retail and fast food businesses.

The Role of Social Media in Customer Relationship Development

Nicholas and Steyn (2017) performed a study and commented that right from the product survey till the product delivery, technology plays a great role in developing technologically equipped information hub. Consumers’ choice, surveyed products as well as visited links each information is customized and personalized to remind in the near future. When it comes to digital technology, the most significant part of e-retailing or the technology is, providing update to consumers about what happening about the order or the product item and this is possible because each information is linked information hub and co summers can check the information any time such as status of th4e product, delivery, etc.

To remain at the cutting edge of digital revolution which often drives cost, efficiency and engagement of customers, three major indicators such as digital strategy, digital capabilities as well as digital culture should be in place. When it comes to customer relationship development Nasermoadeli, Ling and Maghnati (2013, p.123) emphasized on CRM in their digital technology and customer development study, and mentioned that CRM could entail acquisition, analysis and use of knowledge regarding consumers to sell goods and do it more effectively. Nonetheless, most of the studies, in the field of CRM and technology, prioritize digital platform. For example, Labrecque et al. (2013) mentioned that digital acumen understand the significance of aligning people, process as well as culture to be potent enough to accomplish long[-term digital success. Nonetheless, Lin et al. (2014) commented that it is not easy to develop business process and transformed them into digital success in which, people, culture and capabilities are synchronized towards achieving overall organizational strategy. Therefore, it is highly significant not to disregard opportunity of knowing why a business should be digitalized. In this context, Garud et al. (2013) commented that a digitally transformed business is the one that generates values and revenue from digital assets. According to the author, instead of depending on the collection of process automation to transform business models, customer experience by capitalising on digital collection between system people, place and new digital paradigm should be created.

The proposed study is limited to primary data analysis only which means no secondary or comparative data analysis will be conducted. The proposed study lacks a comparative analysis. In addition, the survey method does not include managers or any organizational members to learn how digital technology is implemented in the business. Moreover, time and budget are two constraints of the study.

Theoretical Framework

Existing studies delivered a significant insight about how technology has helped businesses to develop effective customer relationship. The contemporary studies have demonstrated that there are several ways that technology can influence customer thinking. Findings of the studies indicate a similar and known fact that due to development of technology, such as the arrival of social media, digital network, people have become more engaged in technology. Particularly, the digital platforms enhances communication among people, which is also a significant opportunity for business to learn about tastes, preferences, life style of people. Findings of the literature also reveal the fact that advancement of technology has made it possible for the marketers to learn how customers perceive a brand or a product from their own perspective. In addition, objective one is about the importance of digital technology and the literature clarify the fact that digital technology provides a large platform of communication based upon both business and customer relationship can be developed. This is because unlike traditional approaches of knowing a market or customer, platform under digital technology is wide; thus, it is easy to learn about customers in detail and target the wide market.

There are three different types of research philosophies namely positivism, interpretivism and pragmatism. Positivism research philosophy usually includes the quantitative method such as social survey, structured questionnaire and official statistics as these methods effective reliability (Bowling, 2014). On the other side, interpretivism research philosophy is more of qualitative as it uses the methods such as unstructured interview and participants observations. In the proposed, positivism research philosophy will be used because in order to learn about impact of digital technology on consumers such as frequency of using social media platforms, watching advertisement on the channel, frequency of placing online delivery, numerical findings are required and here quantitative method under positivism philosophy will provide accurate findings.

There are two different types of research methods namely deductive and inductive research approaches. Deductive research approach widely depends on the hypothesis; this means the approach verifies the hypothesis by rejecting or accepting, while inductive research approach is more reliant towards the emergence of new theories and generalization (O’Gorman, and MacIntosh, 2014). However, in the proposed study, deductive research approach will be selected because deductive research approach holds the possibility to explain causal relationship between the variables and concepts and the topic of the proposed study holds two variables –digital technology and customer relationship. So, by using deductive approach the link and impact of two variables can be measured.

Research Methodology and Design

There are two different two different types of researches such as primary and secondary research. The proposed study is a primary research which will be performed through quantitative research technique.

According to Taylor, Bogdan and DeVault (2015), research methods can be broadly divided into two categories namely quantitative and qualitative. Hence, quantitative mainly explains and address the problems by using numbers and focus is mainly on the numerical data. Qualitative study is on the other side is based on words, feelings, emotions, etc. Proposed study uses the quantitative method as through quantitative method numerical findings can be derived. The proposed study will require numerical findings as it is determined to identity how technology is influencing customers; so that they end up making being loyal to their brands in a long-term relationship. Now, it is certain that customers do not provide descriptive responses and views regarding the brand as they will rather prefer close ended questions. So, quantitative method best fit the research criteria.

As the proposed study includes primary research; thereby, primary data collection methods will be performed by categorizing them into qualitative and quantitative method (Taylor, Bogdan and DeVault, 2015). So, quantitative method will include a close-ended questionnaire format, which will be used for the survey. The survey will be performed among the customers of McDonald’s UK- a fast food chain restaurant.

When performing an interview method for collecting qualitative method, generally two available methods such as structured and semi-structured interview are followed. However, the proposed study does not include interview method. As it is uses quantitative data collection method, only the survey method will be used to collect data from the customers of McDonalds, UK.

There are two different types of sampling met hid namely probability sampling and non-probability sampling method (Robinson, 2014). The proposed study will include random sampling method because this method helps to choose respondents or the customers on a random order instead of being specific as all customers are treated equally. Hence, the population members include the customers of McDonald’s in UK and the size of sampling frame is 60; however, the sample size is limited to 50 members only.

The collected data will be analysed by performing suitable data analysis tools such as SPSS, regression and correlation. These methods will help to link the data with the findings found in the existing study.

The collected primary data will be first converted to meaningful numerical format and then they will be presented with graphs and tables. Presentation includes tabular and pictorial formats which will help to interpret accordingly.

Limitations

Ethical consideration is a major aspect of the study. The major ethical issue that usually occurs in academic study is the consent and acknowledgment of respondents. So, to avoid this issue, ethical check list form will be prepared to ensure organization’s authorized permission and respondents’ acknowledgment.

The major resources required to perform the proposed study are a laptop as the storage devices, an audio recording device, white papers for documentation and internet connectivity. 

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