African Journal of Business Management Vol. 5(26), pp. 10634-10644, 28 October, 2011Available online at http://www.academicjournals.org/AJBMDOI: 10.5897/AJBM11.894ISSN 1993-8233 2011 Academic JournalsFull Length Research PaperMarketing mix (7P) and performance assessment ofwestern fast food industry in Taiwan: An application byassociating DEMATEL and ANPSu-Mei LinDepartment 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, 2011To cope with consumer’s behavioral change, the number of fast food has increased year by years, from260 stores in 1995 to more than 700 stores today, the growth is more than three times. There are evenfour or five fast food stores in one kilometer, which shows its severe competition state. In such severecompetition environment, some fast food stores might stand out but some fast food stores have towithdraw from the market due to bad business operation. When the supplier has to think how toenhance the business operation performance continuously, how to, aiming at core issues, perform themost effective improvement, thus becomes so important. However, in Taiwan’s fast food industry, whatis the key successful marketing mix (7P) is the focus to be investigated by this research. Therefore, inthis study, through Decision Making Trial and Evaluation Laboratory (DEMATEL) and through expert’sview point, the mutual relationship among marketing mix (7P) perspectives in the fast food industry isfound out. Then, through Analytic Network Process (ANP), expert’s view of important rankings ofmarketing mix (7P) in fast food industry is thus investigated so as to perform the most effectiveimprovement. Finally, Simple Additive Weighting (SAW) method is used to evaluate the performance ofthe western chain store fast food industry and to analyze the current status of each fast food industryand to provide suggestions for them.Key words: Fast food, marketing mix, Decision Making Trial and Evaluation Laboratory (DEMATEL), AnalyticNetwork Process (ANP), Simple Additive Weighting (SAW).INTRODUCTIONIn a small Taiwan with population of only 23 million, thereare as many as 714 fast food stores, and such highdensity is really unbelievable. The importance of fast foodto the general public is so clear. Thus, it can be seen thatlots of fast food suppliers withdrew from Taiwan market inthe period 1995 to 2010, some fast food suppliers evenshow negative growth, and some show stable growth,that is, the development result shows two extreme cases.In such competitive environment, each fast food supplierhas its marketing way, some succeed and some fail. Theresearch motivation of this article is that under fast foodindustry of severe competition, it is interesting to knowwhat kind of marketing mix can be proved to beoutstanding in this battle. In this research, by usingDEMATEL (Decision Making Trial and EvaluationLaboratory) method, the mutual influence of marketingmix (7P) in fast food industry is going to be investigated.From questionnaire survey performed on experts, we tryto use ANP (Analytic Network Process) to understand theimportance ranking of marketing mix (7P) in fast foodindustry, and SAW (Simple Additive Weighting) helps todo performance evaluation of five Taiwan’s western chainstore fast food suppliers.LITERATURE REVIEWThe marketing mixMcCarthy's 4Ps mix has increasingly come under attackwith the result that different marketing mixes have beenput forward for different marketing contexts. It contends
Linthat the numerous and ad hoc conceptualizations undermine the concept of the marketing mix and proposes thatBooms and Bitner's (1981) 7Ps mix for services beextended to other areas of marketing. Mohammed andPervaiz (1995) show how the 7Ps framework can beapplied to consumer goods and reports the results of asurvey of UK and European marketing academics whichsuggest that there is a high degree of dissatisfaction with4Ps. It also suggests that the 7Ps framework has alreadyachieved a high degree of acceptance as a genericmarketing mix among both groups of respondents.Overall, it provides a fairly strong support for the view thatBooms and Bitner's 7Ps framework should replaceMcCarthy's 4Ps framework.Therefore, services marketing theorists have takengreat pains to distinguish services marketing from product marketing. A major portion of this effort has focusedon rethinking the marketing mix and showing how it isdifferent for services. By demonstrating that the marketing of services requires different decisions than goodsmarketing requires, these thinkers present servicesmarketing as a unique and distinct type of marketing. Theservices marketing mix differs chiefly from the 4Ps by theaddition of three new decision responsibilities that mustbe integrated to form a coherent and effective servicesmarketing mix. By adding people, physical assets, andprocess to the marketing mix forming the 7Ps, servicesmarketing theorists staked out a new field of management theory and practice separate from the marketing oftangible goods (Lovelock, 1996; Goldsmith, 1999). Thisconceptual advance has, in turn, caused a re-evaluationof traditional marketing management thought byobscuring the boundary between goods and services,forcing the realization that many products consist ofelements of both tangible goods and intangible services(Goldsmith, 1999).The definition of marketing mix 7PsAccording to Booms and Bitner (1981) describe thatmarketing management is the concept of the marketingmix (Figure 1). The marketing mix is not a theory ofmanagement that has been derived from scientificanalysis, but a conceptual framework which highlights theprincipal decisions that marketing manager’s make inconfiguring their offerings to suit customers’ needs. Thetools can be used to develop both long term strategiesand short term tactical programs (Palmer, 2004). Boomsand Bitner (1981) defined 7Ps of the marketing mix asfollows:i. Product - It must provide value to a customer but doesnot have to be tangible at the same time. Basically, itinvolves introducing new products or improving theexisting products.ii. Price - Pricing must be competitive and must entail profit. The pricing strategy can comprise discounts, offers,10635and the like.iii. Place - It refers to the place where the customers canbuy the product and how the product reaches out to thatplace.This is done through different channels, like internet,wholesalers and retailers.iv. Promotion - It includes the various ways of communicating to the customers of what the company has tooffer.It is about communicating about the benefits of using aparticular product or service rather than just talking aboutits features.v. People -This refers to the customers, employees,management and everybody else involved in it. It isessential for everyone to realize that the reputation of thebrand that you are involved with is in the people's hands.vi. Process - It refers to the methods and process ofproviding a service and is hence essential to have athorough knowledge on whether the services are helpfulto the customers, if they are provided in time, if thecustomers are informed in hand about the services andmany such things.vii. Physical (evidence) - It refers to the experience ofusing a product or service.When a service goes out to the customer, it is essentialthat you help them see what they are buying or not. Forexample- brochures, pamphlets, etc., serve this purpose.Therefore, in this study, through Decision Making Trialand Evaluation Laboratory (DEMATEL) and throughexpert’s view point, the mutual relationship amongmarketing mix (7P) perspectives in the fast food industryis found out.Then through Analytic Network Process (ANP), expert’sview of important rankings of marketing mix (7P) in fastfood industry is thus investigated so as to perform themost effective improvement.The current situation in Taiwan fast food industryIn this study, through Decision Making Trial andEvaluation Laboratory (DEMATEL) and through expert’sview point, the mutual relationship among marketing mix(7P) perspectives in the fast food industry is found out.The most famous western chain store fast food brands inTaiwan is basically categorize in Table1.The applications of the DEMATEL modelTseng (2008) applies an effective solution based on acombined ANP and DEMATEL method to assist theexpert group evaluating different MSW (municipal solidwaste) management solutions. Some scholars (Ou et al.,2009) provide applications for a novel model using theVIKOR technique based on DEMATEL and the ANP tosolve the problem of conflicting criteria with dependenceand feedback. The result show the proposed method is
10636Afr. J. Bus. Manage.Table 1. Taiwan’s Western chain store fast food suppliers.CategoryBurger supplierFried Chicken supplierBrand name( McDonald, Burger King, MOS Burger)( Kentucky Fried Chicken, TKK Inc.,)suitable and effective in real-world application. TheDecision Making Trial and Evaluation Laboratory(DEMATEL) can not only convert the relations betweencause and effect of criteria into a structural model, butalso can be used as a way to handle the innerdependences within a set of criteria.Step 3 - Normalize the initial matrix: Normalization will have directinfluence on the matrix, and Equations (2) and (3) can be used, letall of the values are smaller than 1, and let the principle can bemutually compared:AsX(2)RESEARCH METHODSnIn this research, 30 questionnaires were sent to the experts of fastfood industry (including top managers in fast food firms andscholars) and 21 questionnaires were returned. Through expert’squestionnaire survey of fast food industry and through the use ofDecision Making Trial and Evaluation Laboratory (DEMATEL),Analytic Network Process (ANP) and Simple Additive Weighting(SAW), we have investigated the mutual influence among marketingmix (7P) and the important rankings of marketing mix (7P) in thefast food industry. Then empirical way is used to evaluate theperformances of five fast food suppliers in Taiwan (Appendix 1).s1 i nTzeng et al. (2007) pointed out that decision making test andexperimental assessment method can effectively solve complicatedand entangled social issues and understand complicated cause andeffect relational structure, then, through the observation of pairedinfluence between the principles and through the use of matrix andrelated mathematical theory, the structural relationship andinfluential strength between principles is then calculated.j factor:Aa11 a1 j ai1 aij an1 anj a1n ain anni factor on, thenT X ( I - X )-1andTrTd . Suppose Tr means the sum of each row of total influencematrix T , that is, the total influence of that principle on otherTd meansT,the sum of each column of total influencethat is, the total influence of that principle by otherprinciple. The variableTr ofthat affects other factors,factors,Tr Td meansdeterminant operation means factorTd meansfactor affected by otherthe relational strength among factors,Tr Td means factor influential or be-influenced strength, that is,Tr Td and Tr Td is respectively Prominence and Relation:C11T(1)(4)(6), we can then obtain the sum of each row and each columnmatrixa(3)T as in Equation (5), sum up each row and column as in EquationStep 1 - Setup of assessment scale: Through the use of mutualcomparison among principles, each expert’s recognition on theinfluence of principle is evaluated. Meanwhile, the assessmentscale 0, 1, 2, 3 and 4 is used as assessment standard, whichrepresents respectively no influence (0), low influence (1), mediuminfluence (2), high influence (3) and extremely high influence (4).Step 2 - Calculation of initial matrix: The calculation equation is asin Equation (1). Through the mutual comparison of level of influenceamong principles, we are going to obtain n n original and direct, and ij means the level of influence ofaiji 1Step 5 - To get Prominence and Relation: For total influence matrixprinciple,A1 j nj 1T X X 2 X 3 X mFive steps of DEMATEL operation processinfluential matrixaij , maxStep 4 - To get the total influence relational matrix T : T is the totalinfluence matrix, which represents the direct influence and indirectinfluence. The influence after mth order is as in Equation (4), whenm approaches infinity, it means the influence after infinite order:When mDEMATEL method and operation stepsnmax maxC11 t11 Ci1 ti1 Cn1 tn1 C1 j t1 j tij tnj C1n t1n tin tnn(5)
Lin10637Table 2. The Profile of Taiwan’s Western Chain store fast food suppliers.Brand nameMcDonaldKentucky Fried ChickenMOS BurgerBurger KingTKK Inc.,Year of establishment19841984199019911974CompanyMcDonald (USA)Jardine restaurant group(HK)TECO corp. (Taiwan)Greatwall group.(HK)TKK Inc.,(Taiwan)CapitalNT 200 (M)NT 190 (M)NT 120 (M)NT 200 (M)NT 200 (M)Number of stores (2010)3481301513847Source: 2010 fast food special report.Table 3. Total influence relational table.Total influence relational matrix 2People0.932Physical evidence0.951Process0.86L6.831nTr[Price 8450.9040.8740.8950.7650.8156.2596.5251, Tdj 1[t ij ]ni 1People Physical evidence Process 7845.90.720.770.6155.35.516.0895.654EMPIRICAL ANALYSISnt ij ]nPlace1.0440.9370.9930.7990.8620.870.7966.3The verification of DEMATEL relational influence1(6)ANP method and operation stepsANP method can be divided into five steps. Step 1 is to ensure decision making question and set up question structure. After questionis clearly described, it is decomposed into network hierarchystructure; step 2 is the paired comparison between perspective andprinciple; step 3 is to use ANP method to set up the non-weightedaverage matrix of super matrix; step 4 is to set up weightedaverage matrix and to normalize the non-weighted average matrix;and step 5 is limiting super matrix, that is, weighted average supermatrix is performed with anti-duplication to get the weightingaverage. In order to simplify the paired comparison of each principle in the questionnaire survey, this research is going to use theANP method, that is, the result obtained by DEMATEL is applied inANP method so as to obtain important factor of store managerfunction of chain store retail supplier. The operation steps aredescribed as in the followings.Simple additive weighting methodUsing ANP method, we can obtain the weighting average of eachprinciple, then using Simple Additive Weighting; we can calculatethe total score of each western fast food enterprise.Meanwhile, based on the level of this score, we can make therankings so as to judge the performance of each fast food supplierin marketing mix (7P). The calculation formula is as follows: S (Si * Wi) Si: The score of its assessment principle of the fast foodenterprise; Wi: The weighting of its assessment principle.In this research, (Table 2) illustrates the profiles of top 5of Taiwan’s western chain store fast food suppliers. AndDEMATEL is used to confirm decision making questionstructure and to analyze the mutual influential relation ofseven perspectives of those five companies. Through theacquired total influential relational matrix, the totalinfluence relational table (Table 3) can be obtained. It canbe seen that in expert’s recognition, the most influentialperspective is People, and the least influential perspective is Process. For Prominence, the maximum is Productand the minimum is Process, for Relation, the maximumis People and the minimum is Process. After the surveyquestionnaire summarization, we have used MicrosoftOffice Excel software to do initialization, matrix normalization, and to find out total influence relational matrix(Table 3) of chain store western fast food marketing mix(7P). Later on, we will calculate L value (level of beinginfluenced), R value (level of influence), L R value(Prominence) and L-R value (Relation). Finally, empiricalanalysis will be done according to the results. Accordingto Table 4, we sum up the row and column of influentialrelational matrix to get L R (Prominence) and L-R(Relation).When L R (Prominence) gets larger, it means theimportance that this principle occupies to the entireassessment factor becomes larger. When L-R (Relation)becomes larger, it means that this principle will havehigher influence to the entire assessment factor.
10638Afr. J. Bus. Manage.Table 4. Level of influence, level of being influenced, prominence and relation of marketing al evidenceProcessLevel of influence (L)7.0446.2816.5956.2235.8115.8755.340Level of being influenced (R)6.8316.2596.5256.3005.5106.0895.654Prominence(L R)13.87612.54013.12012.52311.32111.96410.994X 0.314Y axisProductPromotionPriceFocus on satisfyingcustomers’ needsprofitablyPeopleProcessesPlacePhysical evidenceFigure 1. Adapted from Palmer (2004).Through the numerical data of row and column sum(L R) and row and column difference (L-R) of Table 4,we can plot the perspective cause and effect chart(Figure 2). In perspective cause-and-effect chart, X axisis L R, which is (Table 4) Prominence, Y axis is L-R,which is (Table 4) Relation, finally, each perspective’sintersection at L R and L-R is pointed out, then based onthe influential relation, the relational connection line isthen drawn.Summarized from the mentioned cause-and-effectchart (Figure 2), it can be seen that experts and scholarsthought that ”People”, “Product” and ”Promotion” are themost important key decision making assessment factorsof marketing mix assessment, because the rankings ofL R (Prominence), L-R (Relation) are in the first threeplaces. Moreover, ”Place”, “Physical evidence” and”Process” stand at the last three rankings of L R(Prominence) and L-R (Relation), which show that thesethree assessment factors and other factors haverelatively smaller influence, hence, more remedies needto be found from individual problem or other factors.Through DEMATEL, we can understand the influence ofthe assessment factor in fast food industry, then, we canprovide the fast food enterprise with good improvementcutting points.ANP importance and rankingBased on DEMATEL method, we can perform ANP
Lin10639Figure 2. Cause-and-effect chart of seven perspectives.Table 5. Importance ranking table of perspective and principle (ANP).ProductPromotionPlacePricePhysical evidenceProcessPeopleoperation. Performing transform using total influencematrix T of DEMATEL method, we can get the nonweighting matrix of ANP method, then we perform on itwith actual influential value weighting to get the weightingmatrix of ANP, then, through the limiting super matrix ofANP method, we can obtain the Global Weight of eachprinciple, then we sum up the importance of principleunder the same perspective to get the Local Weight ofthat perspective, then we divide both of them to get theLocal Weight of each principle, then we rank the table(Table 5).From the weighting, it can be seen that three majorperspectives are in the order of “Product” (0.158),“Promotion” (0.151), “Place” (0.146). Therefore, amongthe seven principles, the experts and scholars think that”Product” is the most important one, “Promotion” is thenext important one, and “Price” (0.145) is also one of theimportant principles as seen by the experts and scholars.Therefore, the fast food enterprise can use this result asan important iating DEMATEL (Figure 2) and ANP (Table 5)research,From the association of DEMATEL and ANP, we find thefollowing points:(1) Although experts think ”Product” is important perspective, but Figure 1 shows that “People” affects”Product”, “Promotion”, “Price”, “Place”, “Physicalevidence” and ”Process”, hence, it can be seen that if thesupplier imp
marketing management is the concept of the marketing mix (Figure 1). The marketing mix is not a theory of management that has been derived from scientific analysis, but a conceptual framework which highlights the principal decisions that marketing manager’s make in configuring their offerings to suit customers’ needs. .
Figure 1. Model of the Customer Market offering dimensions of the Marketing Mix (Lipson, et al.) Marketing mix development for target market process involves four important steps: 1. Division of the marketing mix into four component-mixes: the product mix, the terms of sale mix, distribution mix and communications mix. 2.
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