Marketing mix (7P) and performance assessment of western fast food industry in Taiwan: An application by associating DEMATEL and ANP Su-Mei Lin
Department of Marketing and Logistics, China University of Technology No.530 Chung-San Rd, Sec.3, Hu-Ko Township, China. E-mail: firstname.lastname@example.org.
Accepted 17 May, 2011
To cope with consumer’s behavioral change, the number of fast food has increased year by years, from 260 stores in 1995 to more than 700 stores today, the growth is more than three times. There are even four or five fast food stores in one kilometer, which shows its severe competition state. In such severe competition environment, some fast food stores might stand out but some fast food stores have to withdraw from the market due to bad business operation. When the supplier has to think how to enhance the business operation performance continuously, how to, aiming at core issues, perform the most effective improvement, thus becomes so important. However, in Taiwan’s fast food industry, what is the key successful marketing mix (7P) is the focus to be investigated by this research. Therefore, in this study, through Decision Making Trial and Evaluation Laboratory (DEMATEL) and through expert’s view point, the mutual relationship among marketing mix (7P) perspectives in the fast food industry is found out. Then, through Analytic Network Process (ANP), expert’s view of important rankings of marketing mix (7P) in fast food industry is thus investigated so as to perform the most effective improvement. Finally, Simple Additive Weighting (SAW) method is used to evaluate the performance of the western chain store fast food industry and to analyze the current status of each fast food industry and to provide suggestions for them. Key words: Fast food, marketing mix, Decision Making Trial and Evaluation Laboratory (DEMATEL), Analytic Network Process (ANP), Simple Additive Weighting (SAW).
In a small Taiwan with population of only 23 million, there are as many as 714 fast food stores, and such high density is really unbelievable. The importance of fast food to the general public is so clear. Thus, it can be seen that lots of fast food suppliers withdrew from Taiwan market in the period 1995 to 2010, some fast food suppliers even show negative growth, and some show stable growth, that is, the development result shows two extreme cases. In such competitive environment, each fast food supplier has its marketing way, some succeed and some fail. The research motivation of this article is that under fast food industry of severe competition, it is interesting to know what kind of marketing mix can be proved to be outstanding in this battle. In this research, by using DEMATEL (Decision Making Trial and Evaluation Laboratory) method, the mutual influence of marketing mix (7P) in fast food industry is going to be investigated. From questionnaire survey performed on experts, we try to use ANP (Analytic Network Process) to understand the importance ranking of marketing mix (7P) in fast food industry, and SAW (Simple Additive Weighting) helps to do performance evaluation of five Taiwan’s western chain store fast food suppliers. LITERATURE REVIEW
The marketing mix
McCarthy's 4Ps mix has increasingly come under attack with the result that different marketing mixes have been put forward for different marketing contexts. It contends that the numerous and ad hoc conceptualizations under-mine the concept of the marketing mix and proposes that Booms and Bitner's (1981) 7Ps mix for services be extended to other areas of marketing. Mohammed and Pervaiz (1995) show how the 7Ps framework can be applied to consumer goods and reports the results of a survey of UK and European marketing academics which suggest that there is a high degree of dissatisfaction with 4Ps. It also suggests that the 7Ps framework has already achieved a high degree of acceptance as a generic marketing mix among both groups of respondents....
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