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Impact of Fast Food Centers in Vicinity of Grocery Store: Supermarket Wars Assessment 3 Answer

ASSESSMENT TASK 3 : FINAL REPORT 

1: RESEARCH PROPOSAL (50%)

Case:Choose one of the four case studies from Armstrong et al (20181)

Format:Max 1500 words (Please note, marks will cease to be awarded when the word count for this section reaches 1500 words)

Problem:For the case study you have selected, develop one qualitative (RQ1) and one quantitative (RQ2) research question and write a research proposal following the guidelines outlined in this document

2: DATA ANALYSIS (40%) AND REPORTING (10%)

Case:Case 3.2 Wendy’s: History & Life After Dave Thomas

Group number: Take the last two numbers of your student ID number; for instance, if your student number is 1234567, then the two numbers to use are 7. The tasks you are assigned to do for the analysis section of the final assessment are indicated by the task number in the table:

LAST NUMBER IN
YOUR STUDENT ID
TASK NUMBER
0 or 11
2, 4, 5 or 92
3 or 83
6 or 74



Test 1:For the relevant responses, use the chi-square (and/or related) test to determine if there is an association between the two variables assigned to you. Please combine the response categories for the variables (as indicated below) before undertaking the test. Report your results.

TASK #VARIABLES TO USEDATA ADJUSTMENT

1

Last time ate at Arby’s Last time ate at Wendy’s
Arby’s data: combine ‘never’ with next closest category, combine two most frequent categories
Wendy’s data: combine ‘never’ with next closest category

2

Last time ate at Burger King Last time ate at Wendy’s
Burger King data: combine ‘never’ with next two closest categories
Wendy’s data: combine ‘never’ with next closest category

3

Last time ate at McDonald’s Last time ate at Wendy’s
McDonald’s data: combine ‘never’ with next two closest categories
Wendy’s data: combine ‘never’ with next closest category

4

Last time ate at Subway Last time ate at Wendy’s
Subway data: combine ‘never’ with next two closest categories
Wendy’s data: combine ‘never’ with next closest category

Test 2:Divide the sample into two roughly equal groups based on the variable indicated below (NB, with most of the assigned variables groupings should be based on adjacent categories). Using an independent-samples t-test, determine whether the assigned variable (based on the 2nd last number in your student ID – 1234567) impacts on the response to the question specified below.


TASK #

EQUAL GROUPS BASED ON
IF THE 2ND LAST NUMBER OF YOUR ID IS
1, 2, 3, 4, 5 OR 67, 8, 9 OR 0
1AgeRead nutritional labelConsider amount of fat
2Level of educationConsider amount of fatStay current on health etc
3Annual income (family)Eating fast food less oftenRead nutritional label
4Number of adults in homeStay current on health etcEating fast food less often

Test 3:Using only the participants specified for your group in the table below, use a one- sample t-test to determine whether they rate that outlet positively.

TASK #GROUP TO TEST
1Have eaten at Wendy’s in the last 4 weeks
2Have eaten at Burger King in the last 4 weeks
3Have eaten at McDonald’s in the last 4 weeks
4Have eaten at Subway in the last 4 weeks


Test 4:Using the same participants as specified in Test 3, undertake a multivariate regression that determines the extent to which health related issues (i.e., questions 14.1-14.7) relate to that restaurant’s rating. Remember to report the relevant results for both the overall model and coefficients.

Answer

Supermarket wars: The battle continues

Task 1: Research proposal (1500 words)

Task 2: Data analysis (600 words)

 TASK 1

Executive Summary

Super markets are an important element in the markets of Australia. Super markets provide a one stop shop for several grocery and daily needs of consumers. The competition in super markets is fierce. Moreover, the super market business model of selling groceries is known to have taken over the corner store market to a great extent. Moreover, fast food chains like Mc Donald's, Subway and Burger King form a great attraction for the consumers. Woolworths and Coles form two major players in the Australian market. Innovation becomes crucial for competitive advantage as there are several new players entering the grocery markets. 

The report presents a research proposal to evaluate the  impact of fast food centers in the vicinity of a grocery store. It researches the impact of innovating new ways to meet customer needs and delight them based on how facilities like a food court with fast food options enables super markets attract more and more customers in Australia. It is focused on analyzing the impact of various elements and different food options on attracting consumers to a super market. It also analyzes the impact of using competitive innovation in order to create consumer delight. It aims at researching the factors that impact a consumers choice of a super market. It recommends that including fast food outlets of well known food chains like Mc Donald's, Burger King and Subway. 

Research questions and intended outcomes

The objectives of this research include forming a thorough understanding about how consumer value can be created by super markets and how innovation can help the super markets establish better levels of competitiveness. It focuses on how there can be better levels of facilities and value for customer in order to increase the footfall in a super market (Ryan, K, 2016). The Wendy's data has been used to analyze the quantitative aspects and qualitative aspects of how innovation can help super markets establish better levels of growth and also increase the customer footfall through providing higher value for consumers. The primary research questions include:

a. Is the impact of better customer value and facilities on customer footfall positive?

b. Understanding how competitive innovation can benefit supermarkets in Australia 

Existing knowledge

Super markets have a great business position in Australia as well as the world. Their competitive advantage lies in the fact that they house all grocery options and necessities under one roof thus making it extremely convenient for the consumer. In case of Australia, there are several new players entering the super market business from time to time. Competitive innovation or innovation for the purpose of delivering higher levels of value to customers is considered a very important aspect of building long term business sustenance. 

The front stage operations of the firm indicate that customer management and order fulfillment are crucial aspects of this business. It is extremely essential that Coles focuses on improving sales as well as its financial position in comparison to the other players in the industry. It is important that there be better focus on developing stronger competencies and better levels of competitiveness.

The dynamics of competition in this industry is largely focused on the fact that the industry has minimum entry barriers and the profitability of this industry attracts several new entrants to this industry causing a higher level of competition. Innovation is crucial for firms in this industry to be able to develop better levels of customer value, customer delight and higher revenue or sales. It is important for firms like Coles and Woolworth to keep innovating in order to achieve higher levels of consumer delight. It is important that there be a better level of understanding of consumer preferences in order to provide them with better choices (Ryan, K, 2016). 

Overview of research design

The research design has been formulated to understand the qualitative and quantitative impact of various elements, including demographics and other factors on the choices and preferences of customers or consumers of a super market in Australia. It is extremely crucial for this research to be designed based on qualitative and quantitative basis. It is required to focus on the establishment of an understanding about how the elements of demographics can be related to factors of customers looking at nutrition and eating fast food. This requires using t test and other statistical tools which has been done using SPSS. Apart from this, there is a detailed qualitative analysis where in literature and details on how demographical factors impact consumer choices in a super market has been researched. The elements of age,  level of education and annual income of the household form important factors to be considered while evaluating the research questions. 

Target demographics

The target demographic chosen include an age group of 25 to 40, with a graduation degree level of education and an annual income of more than $50,000 a year. Based on these aspects, the evaluation of how important is food nutrition levels and health important to the chosen demographics. The age group chosen which is 25 to 40 years of age is an appropriate age as people in this age group are most likely to visit the super market and also indulge in ordering food after shopping (Ryan, K, , 2016). The target demographics form an ideal group to evaluate if there is higher preference for fast food or not. It helps the super markets identify the kind of food that should be available based on consumer preferences. Ensuring better service quality is extremely important for the organization. In this way it is quite essential that there be focus on ensuring that the operations of the business are benchmarked against competitors and that there be better building of competencies and competitiveness in the organization in order to create customer delight 9 Sacks, D, 2015). 

Research methodology - sampling issues

The sampling issues faced in this case include the limitation of interviewing just 100 people for the survey. The survey can be extended to a lot many more people. Yet, there has been utmost care taken while sampling to ensure that there is no bias in the research or the outcomes of the research (Stock, K, 2013). This forms an important aspect of creating long term value and delight for customers as the opinions of the sample forms the basis for recommending what kind of food facilities should be availed to shoppers at a shopping mall (Stock, K, 2013). It is quite possible that the chosen age group along with other demographic qualities of graduation level of education and a strong annual income should have healthy eating preferences and may exercise it even while they shop. 

Research methods - data collection 

a) For quantitative research question 

The data is collected through online surveys where in potential land current customers of super markets at Australia were asked multiple questions about how they go about making their food choices. Aspects of their preference for healthy food options have also been covered in the questionnaire. These aspects help evaluate how there is a need to include better and healthier food options for the customers.

b) For qualitative research question 

Competitive innovation in super markets can help ensure better levels of growth and formulation of a unique selling proposition for a super market. It would then be possible for the firm to develop as a global organization and expand its operations effectively. The service quality in this industry is greatly impacted by human resources and training. Service quality is essential to help the organization build better branding and efficiency.

Recommendations and conclusion 

It is important for a super market to focus on ensuring retaining of existing manpower to ensure that there be better quality of service. This can help build better levels of quality in overall performance and completion of operations of the organization. The flow charts and service elements in this industry indicate that there should be better levels of operational efficiency built through training. These aspects can help build better levels of growth for the super markets. It can also help them to cater better to the needs of the customer and create customer delight. 

Data analysis 

Student Id: 6335275 

Test 1 - Task 2

Chi square was conducted on the following two sets of data:

a. Last time ate at Burger King  - Burger King data combined never with next closest category 

b. Last time ate at Wendy's - Wendy data combined never with next closest category 

H0 = Variables are independent 

H1 = Variables are dependant 

Results of the chi square test = P value = 0.65 = more than significance value 

Hence null hypothesis is  accepted

The variables are not dependent. 

Task 2 - Part 2

Independent sample t test 

Equal groups based on 


Age
Consider amount of fat

Level of education
Stay current on health 

Annual income (family)
Read nutrition labels

Number of adults in home
Eating fast food less often 


Data analysis has been done by combining the factors of consideration of amount of fat, staying current on health, reading nutrition labels and eating fast food less often as being health conscious. Then the levels of health consciousness is correlated to various demographic factors including age, level of education, level of income and number of adults in the house. The analysis of this data has led us to some very important recommendations and conclusion which include that the super markets should focus on providing more number of options for health conscious people as more and more people are getting health conscious in the targeted segments. 

The sample of 99 people was distributed among the 3 categories equally. Then various barometers and tests were used to identify the levels of health consciousness in each of these groups based on the elements of consideration of amount of fat, staying current on health, reading nutrition labels and eating fast food less often. A percentage was calculated for each category indicating that out of the 33 people surveyed in that group how many people were identified as health conscious. 

The identification of health consciousness was based on the fact that if the respondent says yes to any 2 out of the following 4 factors which is consideration of amount of fat, staying current on health, reading nutrition labels and eating fast food less often, then he was considered to be health conscious. If he replied a No for any 3 or more of the options then he was considered to not to be health conscious. The following are the results of the survey:


Table 1: Age and health consciousness 


Age
Health consciousness levels
25 - 30
30%
30-35
79%
35-40
85%

Graph 1: Age and health consciousness Age and health consciousness

The analysis indicates that as people grow older they tend to get more and more health conscious. Age is an important demographic factor to consider health consciousness and to focus on establishing higher levels of association with healthier food. 

Table 2: Level of education and health consciousness 

Level of education
Health consciousness levels
Graduates
60%
Post graduates
79%
Diploma holders
30%

The higher the education, the higher the understanding about nutrition and how it impacts health. So education levels is also an important element that impacts health consciousness in super market buyers. It helps establish better understanding about how the buyers would use their knowledge to read labels and consider the kind of food they consume. 

Table 3: Level of income and health consciousness 

Level of income
Health consciousness levels
Below $50,000
30%
$50,000-$75000
32%
Above $75000
40%

Income levels are not highly associated with health consciousness. Income levels did not affect the level of health consciousness significantly. Yet, there is marginal difference between health consciousness levels of people with higher incomes. 

Graph 2: Level of income and health consciousness Level of income and health consciousness

Table 4: Number of adults and health consciousness 

Number of adults
Health consciousness levels
2
30%
3
79%
4
85%


The higher the number of adults in the house, the levels of consciousness is higher. This factor indicates that bigger families tend to eat more often at home and are conscious about the impact of foods on their health. 

Test 3 Task 2

Sample t -test for 'Have eaten at Burger King in the last 4 week's'

Results of the sample t - test 

t= approximately normal = 1

Sample mean is assumed to be normal 

Test 4 Task 2

Multivariate regression for 'Have eaten at Burger King in the last 4 week's'

Multiple R square value = 0.818

Adjusted R square = 0.82

Indication: p value < 0.02 indicating that the results of t test show a normal sample mean 

Recommendation and Conclusion

Demographic factors have a great impact on the food choices of consumers. It is essential that super markets consider these factors while targeting a segment and understand that the focus on increasing value for consumers through healthier food options can help them create consumer delight. 

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