JURNAL EKONOMI Consumer Perception towards Localization of MNC Fast Food Chain in Pakistan

The study tests the consumer preferences in Pakistan (a developing economy) to know about the consumer’s choice and localization of MNC to have clear understanding of entering in to the new market following the local culture of the country. Study focuses on the multinational fast food outlets. The research is grounded on both primary & secondary information and primary data is collected randomly from 412 fast food consumers through closed ended questionnaire and analyzed through simple percentage analysis and SPSS to know about the relationship with different factors like, location, Quality, consumer satisfaction and preferences. Findings show that consumer’s choice is influenced by quality, price as well as location. Study also shows that McDonalds is a high quality restaurant according to the consumers perception and more expensive than any other MNC outlet in Pakistan, consumers prefer to visit KFC and McDonalds frequently the consumers in Pakistan prefer food with the price conscious attitude. The main thing for the fast food restaurants is the food which is served quickly and finds it more advantageous. According to this study location accessibility is also a motive for consumers when they choose a particular outlet, closer restaurants are more numerous for easy take away.


Introduction
Restaurants are critical to any country's economic development, and the fast food business has grown to be one of the world's most significant developing industries (Baldwin, 2018;Goyal & Singh, 2007). According to a multidimensional perspective, the restaurant industry is one of the fastest growing sectors in the world (Cravy, 2018). According to a global research, fast food restaurants in the United States generated $799 billion in revenue at the end of 2017, employing over 14.7 million population, or 10% of the overall US population, and the restaurant business is anticipated to create 16.3 million jobs by 2027. The restaurant industry in the United Kingdom generated 73.6 billion euros in earnings, followed by France with 50 billion euros, Germany with 40 billion euros, and the Netherlands with 19 billion euros (Cravy, 2018). Experts estimate that the Asia Pacific market is the fastest growing in the food service industry, with a 10% annual growth rate adding to 1.1 trillion dollars in 2014 and 1.5 trillion dollars in sales predicted between 2015 and 2019. (Cravy, 2018). Pakistan spends more than 11.78 billion dollars yearly on eating out, according to (Islam et al., 2018), keeping it first of all developing countries.They further claim that the State Bank of Pakistan estimates that Pakistanis spend about 40% of their income on ready-to-eat meals. This means that the fastest-growing restaurant industry not only engages millions of people, but it also contribute to the economic engine and has a positive impact on other associated industries, resulting in even more economic growth (Shahzadi et al., 2018). It's also worth noting that, as the number of restaurants has increased at an exponential rate, restaurant competition has intensified. Despite the presence of a large number of dedicated customers, a large share of restaurant clientele is value competitive (Islam et al., 2018). Customers want the most bang for their buck and are continually on the lookout for more cost-effective options. In such a competitive environment, The consumer is said to be the most important aspect of a business that influences and assesses the restaurant's quality and image. The customer is the most significant marketing tool that influences and assesses the quality and image of the restaurant, according with customer is the most important marketing tool that influences and assesses the quality and image of the restaurant (Kukanja, 2014). Customers' restaurant factors are considered to be impacted by a number of things. These include both tangible and intangible aspects of a customer's eating experience, such as service quality, food kind and quality, a restaurant's location, status, and ambiance (Pedraja & Yagüe, 2001). Existing restaurant literature, on either hand, reveals that the significance of many criteria in consumer restaurant selection varies, and it is based on the precise incentives that drive a person to visit a restaurant (Akbar & Alaudeen, 2012;Alonso et al., 2013;Tichaawa & Mhlanga, 2018). VOLUME 21 I NOMOR 1 I DESEMBER 2020 https://ejournal.worldconference.id/index.php/eko eISSN: 2685-3264

Service Quality
According to Kotler & Armstrong (2011), service is a saleable activity, benefit, or satisfaction that is essentially intangible and does not result in ownership of something. Intangibility, heterogeneity, and inseparability-three well-documented properties of services-must be acknowledged for a thorough understanding of services, according to Parasuraman et al. (1985).
Quality of service Because services are performances rather than goods, they fall under the category of intangibility. Objects, precise production standards for consistent quality can be hard to come by Most services cannot be numbered, measured, inventoried, tested, or validated prior to sale to ensure quality. The quality of a service varies a lot from one producer to the next, and from one client to the next. customer, as well as day-today leadership heterogeneity Various authors have defined quality in various ways. In 1979, to Crosby Suarez et al. (1992, Quality is defined as compliance to a set of requirements, and it can be present or absent. Juran in the year 1998 Quality is defined as "fitness for usage" Suarez et al. (1992). He emphasizes the importance of striking a balance between product and service. qualities and items that are devoid of flaws. Parasuraman et al. (1985) proposed three underlying themes on service quality, which is more difficult for consumers to evaluate than goods quality, after reviewing literature on services. Style, hardness, color, label, feel, package, and fit are all tangible cues that buyers use to determine quality when purchasing something. When it comes to purchasing services, there are less clear indicators. In most cases, tangible evidence is limited to the service provider's actual facilities, equipment, and personnel.. 1. Consumer expectations are compared to actual service performance to determine service quality perceptions. 2. Consumer expectations are compared to actual service performance to determine service quality perceptions. 3. Quality assessments are not just based on the outcome of a service; they also include evaluations of the service delivery process.

Customer satisfaction
Other than service quality, there are other factors that influence customer satisfaction in a fast food establishment. Consumers evaluate service value by weighing service quality against cost. The cost of service is essentially what customers must forego or suffer in order to acquire a desired service. It would have a negative influence on consumer perceptions of service value since it has a negative impact on consumer budgets. It can be both monetary and non-monetary in nature, such as location, travel time, and so on (Lee & Ulgado, 1997). Furthermore, Qin & Prybutok (2009) found that meal quality and pricing had an impact on customer satisfaction as per literature.

Over view of MNC in Pakistan
1. McDonald's: One of the most notable inexpensive food chains on the planet and one that is as yet growing is McDonald's. The principal outlet was dispatched in 1988 in Lahore and before long opened in Karachi seven days after. MacDonald's has 71 locations in Pakistan, spread across 24 cities, as of 2020. The outlets for McDonalds are present in more than 120 countries and the financial performance or profit from those regions is up to 20% of total of the growth in revenues Middle East/Africa is 6%and its expansion is still on its way.

KFC (Kentucky Fried Chicken): KFC dispatched its central command in Pakistan It started in
Karachi in 1997 and now has 92 locations around the country by 2020. It is the second most driving cheap food chain in Pakistan as well as in India having opened its entryways everywhere in the nation from a sweeping menu of singed chicken, burgers and flavorful sauces. KFC is and has been serving food with quality and taste all around the globe since the start. It is considered as the oldest and the leading fast-food restaurant in Pakistan like McDonald's it is famous due to its taste and quality and its image in the country its existence is worldwide and having the all its products in reliable quality and considered as the second biggest chain for fast food in Pakistan. Companies decide to set the products according to the customers so, design of the products are influenced by the need of customers, KFC menu is going to be enriched due to the customers from chicken to the beverages. VOLUME 21 I NOMOR 1 I DESEMBER 2020 https://ejournal.worldconference.id/index.php/eko eISSN: 2685-3264

JURNAL EKONOMI
3. Pizza Hut: In 1958, two siblings opened one of the most well-known and famous pizza joints in the city.
and it is having 74 operational outlets in Pakistan countrywide. This was Pizza Hut which is one of the primary famous pizza joints dispatched in Pakistan and stays well known till this day. Pizza Hut currently has a particularly enormous menu being served in Pakistan, beginning from various flavors and fixings, right to various kinds of outsides. 4. Domino's: Dominos Pizza was founded in Michigan, United States, and was previously known as Dominick's Pizza.. Dominos have now taken Pakistan in 2004 with a storm by being one of driving pizza puts here, having different branches everywhere in the nation. Dominos like pizza is a house of pizza or palace for the pizza like pizza hut it is famous for its specialized chain for the pizza in the Pakistan its existence is in the almost all the metropolitan cities of the Pakistan as well as famous worldwide like KFC and McDonald's it is not found in the all-major cities of Pakistan its prices also vary for the different products and sizes of the product. 5. Burger King: Burger King initially opened their entryways in Pakistan in October 2013, and from that point forward have spread all around the nation at a quick movement and Their menu comprises different sorts of burgers, fries and plates of mixed greens. Burger King has everything on their menu to fulfill a cheap food fan. Burger King is very new in Pakistan in comparison with the other fast-food chain in opposite like KFC which is the oldest one in the Pakistan instead it's a very popular and one the leading multinational fast-food chain in the Pakistan as well as in the world. 6. Localization of MNC: The culture is the most fundamental cause of a person's actions and desires (Kotler et al., 1996) -Culture is the most basic cause of a person's interests and behavior,‖ according to Kotler et al. (1996). Herrmann & Datta (2006) also asserted that when a company is doing planning to for the marketing strategies across the borders, culture is the most important thing to consider for MNC because every customer behave according to his culture. Impact of culture on consumer behavior like personal, psychological factors and social factors. So consideration of culture is very much important for the multinationals for doing business cross the border as these factors are influencing markets. By considering all these factors companies will be able to the strong decision making strategy that is the marketing mix. The model is shown below: Kotler et al. 1996) Variables that are used for the decision making in marketing are those variables which are under the control of the companies as being components of the marketing mix through which product demand can be affected. They are somehow different from other variable like competitive and environmental actions variables which cannot be considered as being controlled by the organization itself (Kotler, 1992). Price variables, Promotion variables, Product variables, and Place variables are the four marketing assessment variables described by McCarthy (1975): Price, as well as deals and allowances, retailer mark-ups and distribution, and how the discount is arranged are all factors to consider. When taking the Product: quality, sizes & models, service, packaging & brands. Promotion: sales promotion, advertising, personal selling and publicity. Product or service offering, Place: Distribution channels, retail locations, sales regions, and the warehousing system are all examples of places. However, the 4Ps mix has come under growing fire, resulting in other marketing mixes being proposed for diverse marketing circumstances. VOLUME 21 I NOMOR 1 I DESEMBER 2020 https://ejournal.worldconference.id/index.php/eko eISSN: 2685-3264

Culture
"That complicated whole which encompasses knowledge, belief, art, morals, law, conventions, and other capabilities an individual develops as a member of society," writes (Tylor, 1871). Culture, according to Hofstede & Bond (1984), is "the collective programming of the mind that separates members of one human group from members of another." Culture, according to Namenwirth & Weber (1987), is "a system of ideas" that constitutes "a blueprint for living." According to Hill (2003), culture is a system of shared values and customs among a group of people that, when considered together, represent a design for living. Culture, according to Schaefer & Lamm (1994), is not static, but rather spreads from group to group or society to society, a process sociologists refer to as "diffusion." Cultural meaning passes from the culturally formed environment to consumer goods, and then to the individual consumer, according to Lawson et al. (2003).

Aim Of Study
The aim of this research is to gain a comprehensive understanding of customer perceptions of multinational corporations (MNCs). & consumer preference of fast food outlets in comparison of local fast food restaurants in Pakistan. Individuals are getting more mediocre with changes in unfamiliar thoughts. During the previous not many decades, the assortment in each part of life has been expanding, particularly in the food business. The point of this investigation is to comprehend the significant reasons for value changes for the comparative items in various nations. There are a few characteristics that recognize organizations with quickened worldwide development from nation to nation and to comprehend the components at significance of MNC and local food chain in Pakistan.
This study will bring out the better understanding of perception of consumers towards the MNC and local fast food chain and future growth of MNC in Pakistan.

Methodology
Area of study: study is conducted in Pakistan. Sample Size: sample size for conducting this study is 400+. Research Instrument: Open ended questionnaire Method. Sample Design: convenient for sampling method. Data sources: both primary and secondary data sources are used. Primary data is collected from fast food consumer through questionnaire survey, and secondary data by reviewing article, internet, books and magazines. Statistical tool: percentage analysis & (SPSS) Data is gathered from fast food customers, and information is gathered from a variety of restaurants around the world. In Pakistan, distinct primary communities were chosen. A total of 412 people were picked at random from a pool of internationally varied eateries. Both apparent and likert scale elements play a role in estimating size. Individuals who were frequent fast food customers and visited restaurants on a regular basis were the target population. KFC, Pizza Hut, McDonald's, Burger King, and Domino's Pizza are among the top global diverse MNC restaurants with customers. Simple percentage analysis is used to analyze the data collected. Consumer preferences and levels of satisfaction with MNCs in Pakistan were studied using percentage analysis and descriptive statistics.   9.5 percent are between the ages of 36 and 45, and only 3.4 percent are between the ages of 46 and 55. The majority of those who contributed were between the ages of 16 and 25. Table illustrates the respondents' occupations, which were divided into four categories: 46.1 percent were students, 41.7 percent were professionals in various sectors, 7.8% were unemployed, and 4.4 percent were business owners. The majority of those who responded (46.1%) were students.  Table 4 shows the marital status of the respondents through which we can conclude that the majority of the respondents were students and single out of the 100 percent of the total sample 34% were married. 87% consumers have the frequent visits towards MNC this shows the high popularity of MNC in Pakistan. Majority of the consumers are students between the age group of 16-25 years. 63.6 % of the 412 respondents were men, while 26.4 percent were women. The majority of the respondents (63.6%) were men. The majority of the respondents are single for fast food eaters, with 28 percent of the 412 participants being married and 72 percent being single. It is found that majority of the consumers prefer to go to MNC to local fast food chain. And this due to the quality of food, service quality, brand name, convenient and social enjoyment. 89% of the respondents are interested to have more restaurants in future so, MNC are having a huge potential for the expansion being 2 nd largest industry in Pakistan. Consumers are influenced by the price charged by the fast food restaurants in Pakistan. In comparison to MNC fast food chains, consumers are satisfied with the prices of local fast food establishments. McDonald's is regarded as a high-quality restaurant in Pakistan, whereas KFC is a commonly called restaurant with a budget-conscious mindset. Consumer visits increase when fast food businesses are closer to them, according to this study, demonstrating the impact of location on consumers. The VOLUME 21 I NOMOR 1 I DESEMBER 2020 https://ejournal.worldconference.id/index.php/eko eISSN: 2685-3264 JURNAL EKONOMI location, quality, and level of satisfaction with MNCs' products in Pakistan impact consumer preference based on pricing.

Statistical analysis Reliability of the Data
The data is collected through the structured questionnaire survey whichcomprise of questions of fast food preferences in terms of pricing having dependent and independent variable. According to Lai et al. (2007), Cronbach's Alpha reliability test values that exhibit internal stability between the scale of variables and their range should be 0.70 or above in order to have a reliable scale for research outcomes (Joyo & Lefen, 2019). According to this study, The reliability has been tested through SPSS 20.0 and the value of Cronbach's alpha is 0.813. It shows the data is reliable. The table 6 shows that dependent variable is preference and whereas the independent variable are location, quality and satisfaction with the N=412shows that location, quality and satisfaction the values of these variables leads towards agree side. Table shows that the Pearson correlation between preference and location is 0.590 that shows the positive strong correlation with preference, similarly the correlation between preferences on satisfaction is 0.412 which also shows the correlation between the variables, whereas the preference impact on quality is 0.248 which shows the weak correlation& table 3.2 also shows that correlations between location and a quality is 0.605 demonstrate the strong correlation, whereas the correlation between location and satisfaction is 0.724 which shows that the positive strong correlation. And the correlations between the Quality and Satisfaction is 0.631 which also shows the strong correlation. As per table 8 shows that the Location, Quality and Satisfaction has a positive significant relation that is 0.000, 0.022 and 0.705 respectively, this shows that the all independent variables a significant impact on preference. Autocorrelation should not be present when conducting linear regression.One of the main tests for autocorrelation Durbin-Watson test is one of the most valuable tests. Generally according to the rule, values in the normal range for the Durbin-Watson are between 1.5 and 2.5; the values which are considered to be more dangerous are when set other than this particular set of the values (Hair et al., 2012). Andaccording to this study Durbin Watson for autocorrelation test value is 1.831 which shows the positive autocorrelation. There are many tests available for testing the normality however, in this study normality tests have done through graphical testing with histogram and P-p plot. The figure of histogram shows that the bell shaped pattern of graph is obtained showing good fit of model and the normal distribution of the data, looking at the structure of P-p plot data points in the plot are lying closer to the diagonal line showing normal distribution of data (Pallant, 2001).

Scatter plot
The scatter plot in the regression model represents the values which with random displacement having rectangle shape which shows the presence of homoscedasticity & scatter plot in this study is meeting the assumptions of the homoscedasticity and by meeting the assumptions of the homoscedasticity shows that results of the regression model are valid (Tabachnick & Fidell, 2007).

Results
Pakistan has 1000 such units for fast food, with an approximate 185 million consumers. According to the report, McDonald's is a crucial figure in the fast-food market around the world, with 71 locations servicing millions of consumers in Pakistan's 24 major cities. On the other hand, KFC is running 92 outlets nationwide as VOLUME 21 I NOMOR 1 I DESEMBER 2020 https://ejournal.worldconference.id/index.php/eko eISSN: 2685-3264

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of 2020.This is the second largest sales generating fast food chain in Pakistan. (Eromonitor international, 2015). The pattern of worldwide eateries however began late in Pakistan however has been fruitful due to the taste and culture of the district. The main objective for restaurants is to maintain customer satisfaction, which is mostly determined by the pricing and nature of the food they serve. Territory, cleanliness, marketing, and condition territory all play a role in shopper satisfaction. The survey's main goal is to find out how key customer loyalty is for Pakistan's global diverse eateries, as well as to figure out what customers desire to eat at their favorite multinational cafés in Pakistan. Because low-cost food ties contribute significantly to Pakistan's food sector and are an important feature of their use. An extraordinary showcase of administration quality sets up a positive effect on the customers and customer brand relationship improves which prompts client reliability. After unrivaled quality, respondents give equivalent inclination to different components, esteem for cash what's more, astounding assistance. Multinomial coordination's relapse assessment uncovers that commercial assumes the most significant part in characterizing client fulfillment for individuals living in Islamabad. Khan et al. (2020) Commercial positively affects the consumer loyalty. Focusing on clients through promoting on the online media and TV makes them mindful about the arrangements and offers going on and henceforth prompts their fulfillment. On the other hand, Locality of eateries is moderately more significant for clients in Lahore. Because the more the café is efficiently open, the more customers are pleased and visit the cafés, region has an unique and pleasant relation with client fulfillment. (Khan et al., 2020).This regular trend of fast food in Pakistan is increasing day by day in young generation specially, there many local as well as multinational corporations in Pakistan, local chains are also well known to the consumers in Pakistan including, burger, pizza, sandwiches and so many items and spend 30 to 40% of their income on the different varieties of food making this business the 2 nd largest industry of Pakistan as well as profitable and gives social enjoyment. It is revealed recently that Pakistan fast-food being 2 nd biggest industry in manufacturing sector it is providing around 15% to 18% of employment. Local fast food industry extended their stores being competent to MNC has some weaknesses of being slow in process. Larger families, children, students and youngster are frequently visiting fast food outlets specially KFC and MacDonald's at the top due to the services given in MNC and Quality of food. This study also reveal that the prices of most of local restaurants are equal to the MNC restaurants but the consumers are fond of Pakistani food recipes so usually they prefer to go with the local food being perceived a healthy food.

Suggestions
1. Currently majority of the fast food consumers are students, MNC can improve the standard to attract the crowd 2. Consumers are from all over the Pakistan and this study found that location is the most important factor that affects the consumer frequent visits to MNC, almost all the outlets are running in metro cities of Pakistan, very few or no outlets are available in some rural areas where consumers are also fond of fast food, strategies can done for the different areas where MNC are leaving unreached of fast food to the majority of the customers. 3. Products can be improved according to the traditional taste as to increase the home delivery and to attract the consumers of all ages.

Conclusion
Taking a look at the global challenges of rising food prices, it's clear that they're spreading to every corner of the globe. Almost every country in the globe has at least one drive-through window. McDonald's, Pizza Hut, Burger King, and KFC locations are the most exclusive. Cheap meals appears to be the ideal "all-American" decision, given the productive assistance, low costs, and laid-back atmosphere. McDonald's is always improving their menu items and increasing the loyalty of their customers by growing their customer base. McDonald's must diligently implement an idea related to novel thoughts into all of its activities, particularly in advertising, with the clear objective of monitoring in an extremely competitive market. McDonald's hoped to create something that would benefit them in the long run, such as long-term acceptability and an incomparable position as a "food retailer." McDonald's restricting methodology employs a global system that thinks globally while acts locally to guide its course of events. For McDonald's to attain its core aim in India, the limitation system has been absolutely vital.
For McDonald's to achieve its key vision in India, the limitation system has been absolutely essential. In view of the fact that the more effectively available the café is, the more people are satisfied and visit the cafés in Pakistan, region has a remarkable and positive link with customer satisfaction.