A Research Project on Service Quality for Tim Horton

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Course:Marketing Management

TABLE OF CONTENTS
1.0Introduction2
2.0Exploratory Research2
2.1Trade and Industry Review2
2.2Academic Literature Review2
3.0Market Survey2
3.1Methodology2
3.2Research Sample2
3.3Survey Results2
3.4Data Analysis2
4.0Conclusion2

Introduction
This paper discusses the results of a research project on service quality for Tim Hortons. The purpose of the report is to measure: * Expectations in a service environment
* Perceptions of the quality of the service delivery
* Correlation between service quality and brand loyalty * The difference between expectations of service for a given organization and perceived quality of delivery by the service provider (Gap 5 See Figure 1-0)

Figure 1-0
Value Chain Position
There are many facets to the macro environment for the coffee market as a whole; this paper focuses on the customer expectations relative to the service component associated with the purchase of Tim Hortons coffee and other hot beverages. The questions for the market research have been formulated to better understand the relationship between Service Quality taking into consideration the following marketing data: * Buyer decision process including:

* Need recognition
* Information search
* Alternative evaluation
* Purchase decision
* Post- purchase behavior
* Perceptual Mapping
* The key to effective product positioning is understanding perceptions of consumers. To determine a brand’s position and consumer preferences, companies obtain three types of data from consumers: * Evaluations of the important attributes for a product class * Judgments of the existing brands with the important attributes * Ratings of an “ideal” brand’s attributes

* Service
* Tim Hortons position in the Product / Service Continuum

* Expectancy Disconfirmation
* Performance expectations are compared to actual product performance. * Outcomes below expectations, Negative disconfirmation – emotional dissatisfaction * Outcomes above expectations, Positive disconfirmation – emotional satisfaction * Outcomes not different from expectations, Expectancy confirmation – emotional dispassion * Brand Loyalty

* The degree to which a customer holds a positive attitude towards a brand, has a commitment to it, and intends to continue purchasing it in the future

This report excludes the following marketing mix variables:
* Product Positioning
* Price
* Distribution
* Packaging and labeling
* Branding

Exploratory Research
Trade and Industry Review
Industry Overview
The market sector that Tim Hortons competes in is the Quick Service Restaurant (QSR) business. According to the NPD Group, the Canadian food service sector is a $45 billion industry and $164 USD billion industry. QSR represents 62% of the Canadian Sector of which Tim Hortons has a 39.7% market share. (See Figure 3-1)

Figure 3-1
Industry Outlook
The following information has been collected from the Canadian Restaurant and Food Services Association. See Appendix 3B for the complete outlook survey. “Restaurant sales were mixed in the second quarter of 2011. While 34% of respondents reported higher same-store sales in the second quarter compared to a year ago, another 34% said sales were lower. The remaining 32% posted flat sales.” (Elliott 2011) There is guarded optimism as 82% of respondents expect their sales will continue to grow at the same or greater pace over the next six months. Three in 10 operators believe their sales in the next six months will grow at a greater rate than the previous six months while 18% believe they will slow down. (Elliott 2011) The outlook of restaurant owners aligns with current economic forecasts. According to the latest forecast by TD Economics, Canada’s economy...
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