marketing.

report

1. INTRODUCTION

In today's competitive environment, branding is an important competitiveness factor that differentiates

similar goods and services which are produced by different firms in the minds of the consumers and
makes them preferable for consumers. The brand, while reflecting an authenticity, value and
commitment to the goods and services which are introduced to consumers for businesses, has a function
ranging from reducing the risks related to goods and services for consumers and establishing social
bonds without expressing their identity. In this regard, businesses that achieved to become a brand have
been differently categorized in terms of goods and services they offer among other businesses. They
have a special position in consumers’ mind and build a business identity. The construction of this identity
is directly proportional to the communication between the brand and the consumer. The greater the the
power of communication between the brand and the consumer, the higher the consumer's brand
preference and brand loyalty. In any case, the crucial thing about branding is that the strong relationship
that established with consumers has the power to direct choice of the consumer and loyalty (Kotler and
Armstrong, 2004: 191). Therefore, businesses are carrying out studies to attract consumers' attention, to
be permanent in their minds, to create a positive brand image and to increase brand loyalty by applying
all the communication channels they have in brand communications in order to create brand value or to
protect brand value.

One of the common channels of communication that companies have recently applied in their marketing
activities is social media. Social media can be defined as an online application program, platform, or
mass media tool that facilitates interaction, collaboration, or content sharing between users in general
(Kim and Ko, 2012). The effect of social media on consumer’s behavior includes a wide spectrum of
activities ranging from informing, sharing ideas and attitudes to acquire awareness and understanding,
and visualize post-purchase behavior without purchasing (Tatar and Erdoğmuş, 2016). This leads
businesses to be more interactive in marketing communications and to find innovative applications to
make products and brands more affordable through online marketing efforts via social media
communication channels. These practices, which express social media marketing activities, include
actions that encourage consumers to choose products and brands and that target marketing messages to
other consumers online.

Thanks to social media marketing activities, businesses can perform activities such as creating their own
personal brand profiles and introducing online customer service, product information and special offers
in a simple, cheap, and continuous way.

Sample, Data Collection and Research Questions

The population used for this research includes all the potential consumers of fast food within the Central
America region with an age of 18 years and above. For this purpose, a survey was promoted among
consumers of malls and retail workers in the Central America region through the Internet, using for such
purpose Facebook ads which targeted users of such platform with a high-school degree, with more than
18 years of age, and working or living among the Central America region. In addition to this, a written
survey was also promoted among mall's visitors, consumers, and retail workers within such region. Last
but not least, secondary data of peer review research papers as well as companies' annual reports were
used as a reference when interpreting the results of such surveys.

The following demographic information was included in all versions of the survey mentioned above:

- Name (optional)

- Phone (optional)

- Email (optional)

- Gender (male, female)

- Marital Status (married, single)

- Age (under 20, 21-30, 31-40, 41-50, above 50)

- Educational level (secondary education, bachelor degree, graduate school)

- Occupation (civil servant, retired, house wife, student, worker, self-employed,

unemployed, private sector employee, other)

A Journal of the Academy of Business and Retail Management (ABRM) 33

Journal of Business and Retail Management Research (JBRMR) Vol. 8 Issue 1 October 2013

- Income level (less than US$500 per month, US$501-US$1000, US$1001-US$2000, US$2001-US$3000,
US$3001-US$5000, above US$5000)

At the end of the survey's collection process, 201 surveys were accumulated during one month between
June and July 2013, and 114 surveys were selected due to its 100% compliance in terms of answers.

The questions included in the survey were as follows:

1) Does a fast food menu or meal with a local recipe and/or flavor included, makes you buy more in a
fast food company in your country of origin where it is offered?

2) If certain fast food company does not offer new meals constantly, do you avoid to go to such company,
and consequently, buy less frequently from such company?

3) Do you prefer to buy more from an international fast food company than from a local fast food
company in your country of origin?

4) Does the fast food company where you buy more frequently offers what you consider is a good
customer service?

The survey was performed in Spanish (see Appendix A for reference) and records have been kept for
future review.

Scales

The survey designed for the research contains two sections. The first section was used to capture the
demographic information related with the sample as described previously. The second section contains 4
questions as mentioned above, and a 5 point Likert scale (1=Strongly Disagree ... 5=Strongly Agree) for
each question, which was used for testing the hypotheses described within this document.

Analysis Method

To achieve the objectives described above, and to analyze their importance among consumers in
emerging markets as explained previously, the used 5 point Likert-scale came to allow the author of this
document to gather the necessary data to calculate the mean and correlations among the questions
described previously, as well as other statistical information that was needed to interpret respondents'
perceptions such as standard deviation for the overall results on each topic.

Results Participant Profile

Demographic results of a total of 114 valid surveys were as follows:

- Gender: Male 50.00%, Female 50.00%

- Marital Status: Married 57.02%, Single 42.98%

- Age: Under 20 0.88%, 21-30 35.96%, 31-40 33.33%, 41-50 26.32%, Above 50 3.51%

- Educational Level: Secondary Education 21.93%, Bachelor Degree 64.04%, Graduate

School 14.04%

- Occupation: Civil Servant 8.77%, Retired 0.88%, House Wife 1.75%, Student 5.26%,

Worker 16.67%, Self-Employed 22.81%, Unemployed 5.26%, Private Sector Employee 35.96%, Other
2.63%

A Journal of the Academy of Business and Retail Management (ABRM) 34

Journal of Business and Retail Management Research (JBRMR) Vol. 8 Issue 1 October 2013
 - Income Level: Less Than US$500 Per Month 33.33%, US$501-US$1000 30.70%, US$1001-US$2000
25.44%, US$2001-US$3000 6.14%, US$3001-US$5000 2.63%, above US$5000 1.75%

Some important facts of the participant profiles are as follows:

- Genders are split 50% each.

- 57.02% are married.

- Most of the participants age is between 21-30 years old (35.96%) and between 31-40

years old (33.33%).

- 78.08% of the participants have an university degree.

- 35.96% of the participants belong to the private sector, and 22.81% are self-employed.

- 64.03% of the participants earn $1000 or less per month, and 33.33% earn $500 or less

per month.

In addition to this, by analyzing the IP address which was requested from all

participants at the time of filling-up the survey, the country of resident was established for the sample of
114 participants and the following results were obtained:

- 5.26% from Costa Rica

- 16.67% from El Salvador

- 38.60% from Guatemala

- 18.42% from Honduras

- 16.67 from Nicaragua

4.39% of respondents didn't have an identifiable IP address.

Correlations, Direct and Indirect Effects

To determine the validity of the hypotheses described above, the correlation between questions one and
four, two and four, and three and four were analyzed, and consequently, the following results and effects
were identified:

For H1, " There is a significant positive relation between the presence or absence of a local flavor in a
fast food menu, and customer satisfaction ", correlation between question one and four was analyzed
and a result of +8.002% was obtained. Therefore, it can be inferred that by having a positive correlation,
when question one is positively answered, question four will be also answered in a positive way, which
means that when there is a local flavor offered as part of the menu, customer satisfaction perception will
also improve among consumers, and vice versa, when there is not offered a local flavor, customer
satisfaction perception may also decrease. Consequently, the hypothesis may be considered as valid.

For H2, "The constant use of new fast food menus helps increase customer satisfaction", correlation
between question two and four was analyzed and a result of -15.176% was obtained. Therefore, it can be
inferred that when no new fast food menus are offered, customer satisfaction will decrease, and vice
versa. Therefore, the hypothesis may also be considered as valid. For this case, is important to notice
that the question was made in a way that "strongly agree" could mean that a customer strongly agrees
with the fact that if a new menu is not offered, such customer will avoid to buy from the fast food
company involved as much as possible. Therefore, such negative correlation comes to verify the
hypothesis mentioned above.

For H3, "The fact that a company may be a recognized as an international fast food company helps
increase the perceived customer satisfaction among consumers", correlation

A Journal of the Academy of Business and Retail Management (ABRM) 35

Journal of Business and Retail Management Research (JBRMR) Vol. 8 Issue 1 October 2013

between question three and four was analyzed and a result of +12.834% was obtained. Therefore, it can
be inferred that customers buying from an international fast food company, perceive such company as a
better customer service, and vice versa. Such correlation means than when question three is answered
as a strongly agree, question four will tend to be answered as an agree or strongly agree too.
Consequently, hypothesis three is considered valid.

In addition to the validation of the hypotheses above, the following means and standard deviations were
obtained from each question described within this document:

- Question one: Mean 3.06, Standard Deviation 1.16.

- Question two: Mean 2.98, Standard Deviation 1.17.

- Question three: Mean 3.05, Standard Deviation 1.25.

- Question four: Mean 3.66, Standard Deviation 1.27.

Conclusions and Discussion

As a result of all what has been described within this document, it can be concluded that when localizing
fast food menus, customer satisfaction's perception tends to grow on the positive side, confirming that a
localized marketing strategy taking into consideration local customs and values, helps increase up to
certain point the attractiveness towards a new product within a new market, and makes valid the fact
than in the Central America region due to the findings in this document, this principle will apply to the
fast food companies and their menus (Kanso & Nelson, 2002; Van Heerden & Barter, 2008; Hofstede &
Bond, 1988; Mooij & Hofstede, 2010; Cleveland, Laroche, Papadopoulos, Berács, Elliott, Hallberg, Rojas-
Mendéz, Solano, Szamosi & Verma, 2009).

Another aspect to consider is the fact that innovation in the fast food menus comes also to affect
customer's satisfaction perception among consumers of a fast food company within Central America. As
stated on H2, if new menus are not offered, customer satisfaction perception will tend to decrease.
Therefore, it is clear that interaction with consumers and the introduction of new products comes to
benefit the perception among them, and consequently, contributes to exceed their expectations to the
point that may contribute to increase their satisfaction. As a result of this, innovation cannot be ignored
since it comes to stimulate the necessary brand differentiation and demand in any marketing strategy
that may involve fast food menus, especially within a global environment. Consequently, the innovation
process should be dynamic and constant, when necessary, to remain competitive and retain actual
customers specially on those areas where the company has developed a competitive advantage
(Bowonder, Dambal, Kumar & Shirodkar, 2010; Francesca, Ciommi, Donatella & Enrico, 2010).

Last but not least, through this document has also been validated the fact that in the Central America
region an international fast food company may have a competitive advantage by using what is
considered a global brand, and consequently, may benefit of being associated with a better service or
quality, thus increasing customer's perception and satisfaction. Therefore, a global brand due to the
prestige developed through its cultural awareness and actions, becomes commonly associated with
status, prestige, and quality, which allows such brand to develop an adequate reputation that
contributes to achieve a better customer service perception, compare to a company not recognizable as
a global brand. Nevertheless, it becomes fundamental to understand that global brands are developed
with time, and that depending on the culture and customs of the market being penetrated, if such
cultural aspects are not handled

A Journal of the Academy of Business and Retail Management (ABRM) 36

Journal of Business and Retail Management Research (JBRMR) Vol. 8 Issue 1 October 2013

correctly they become a disadvantage compared to local options (Akaka & Alden, 2010; Jun, Lee &
Gentry, 2005; Harish, 2008).

Finally, a good customer service brings with it more customer loyalty, and such customer loyalty means
more sales, growth, and even survival within difficult times. Therefore, as stated previously, customer
perception plays a fundamental role within any company since it comes to warrant up to certain point,
the short and long term success of such organization.