Proposal: Consumer Loyalty and Smart Retailing in Philippine Fast Food

University Asia Pacific University (APU)
Subject AIX2001: Research Methodology

Section B :

QUESTION 1

You have been approached by the marketing director of “Tech Connect Monthly,” a leading technology magazine, to conduct a research study. The magazine has failed to gain traction among young professionals working in the technology sector. As a research consultant, you need to understand and gain insight on the problem of the study. You believe that an exploratory design will help them to uncover insights into why young tech professionals are not engaging with the magazine. You are also required to prepare a research proposal for the marketing director.

a) Discuss the steps in preparing the research proposal.
(15 Marks)

b) Describe the exploratory technique that you would use in defining the problem of the study and explain how it is done. Is it appropriate for you to proceed using the descriptive design? Why?
(6 Marks)

c) Develop two research questions that could help you to identify and solve the marketing director’s problem. (4 Marks)

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QUESTION 2

A prominent bank located in Kuala Lumpur has some 400,000 users of its credit cards scattered throughout Malaysia. The application forms for the credit card asked for the usual information about name, address, income, level of education and so on that is typical of such applications. The bank is currently interested in determining if there is any directional relationship between the frequency of card usage and the amount of credit charged on the card for various purchases made within a month, i.e. the more frequent the card is used, the higher is the credit amount charged on the card.

a) Identify the sampling frame that would be used by the bank to conduct the investigation. How is the sampling frame acquired? (5 Marks)

b) Choose a suitable sampling technique and indicate how you would draw a sample from the target population using the sampling technique chosen.
(5 Marks)

c) Determine and describe the appropriate data collection method for the study. State TWO (2) advantages and disadvantages for choosing the method.
(10 Marks)

d) What is a suitable instrument used to collect the data in this study? Describe the purpose of the instrument.
(5 Marks)

Section C :

In today’s fast-paced world, people prefer ready-to-eat food to save time, especially those working long hours. Fast food is a popular choice because it quickly satisfies hunger. Over time, eating out has become a routine for many—whether for convenience, special celebrations, or simply enjoying a snack. This trend has led to rapid growth in the fast-food industry.

At the same time, advancements in technology have transformed how businesses operate. Many companies are adopting Smart Retailing Technology (SRT) to improve customer experiences and stay competitive. For example, self-ordering kiosks in fast-food restaurants reduce waiting times, making the process quicker and more convenient for customers. This has been popularized by global brands like McDonald’s, which introduced self-ordering kiosks as early as 2003, leading to faster service and better customer satisfaction.

Studies show that SRT enhances the perceived value, enjoyment, and novelty of shopping experiences, which in turn builds customer loyalty. For instance, customers find using these technologies useful and enjoyable, influencing their attitudes and even spreading positive wordof-mouth about the brand..

Despite the clear benefits, the adoption of SRT in the Philippines has been slower compared to other countries. Reasons include a preference for cash payments, limited use of credit/debit cards, and distrust of online or cashless systems. Jollibee, the Philippines’ leading fast-food chain, only introduced self-ordering kiosks in 2019, and these are mostly found in big cities.

Interestingly, the Philippines has a young, tech-savvy population, with 53% are Millennials and Gen Z-people who are comfortable with technology. This presents an opportunity for fast-food businesses to increase SRT adoption by addressing customer concerns and promoting its benefits.

Thus, the present study aims to fill the gaps – utilization of a psychology-human behaviour-based theory such as stimuli-organism-response (SOR) model instead of technology acceptance model (TAM), dearth of studies on SRT in the Philippine context and the slow SRT adoption among fast-food companies despite that half of the population of the Philippines is digital natives. Thus, the research aims to investigate how stimuli (perceived value, perceived enjoyment and perceived novelty) influence loyalty (response) of fast-food restaurant consumers as mediated by consumers’ attitude (organism).

 

Question 1 (30 marks)

Based on the above article, determine the following:

a) Three (3) possible research objectives and three (3) hypotheses for each objective. (12 Marks)

b) Develop a conceptual framework that includes independent variables, dependent variables, and mediating variables. (10 Marks)

c) Considering that 53% of the Philippines’ population consists of Millennials and Gen Z, what sampling method would you recommend for this study? Justify your answer. (8 Marks)

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