Volume 22, Number 4 (2022): 327-331 E-ISSN: 2252-6757
CITATION: Hendra, A. C., Setiawan, B., Wahyuningtyas, A. S. H., (2022). DIFFERENCES INDUSTRY PATTERNS BASED ON MILLENNIAL CUSTOMER PATH AT FAST FOOD RESTAURANTS, Agricultural Socio-Economics Journal,
DIFFERENCES INDUSTRY PATTERNS BASED ON MILLENNIAL CUSTOMER PATH AT FAST FOOD
RESTAURANTS
Archippus Christopher Hendra
1*, Budi Setiawan
2, Agustina Shinta Hartati Wahyuningtyas
21Post Graduate Program, Faculty of Agriculture, University of Brawijaya, Indonesia
2Faculty of Agriculture, University of Brawijaya, Indonesia
*corresponding author: [email protected]
AbstractMarketing 4.0 forms a new customer path, which was previously 4A (aware, attitude, act, act again) to 5A (aware, appeal, ask, act, advocate). The main goal of the 4A is for customers to become loyal to a brand.
However, in the 5A customer path, loyalty to a brand is not the primary goal but instead advertising or promoting the brand. This study aims to analyze industrial patterns formed based on customer lines at fast food restaurants in Malang City. This research approach uses a quantitative descriptive approach, which is carried out by collecting information about the picture of consumers in the research area. The results of the chi square H1 test were received, namely advocacy carried out by respondents aged 30-39 years not higher than respondents aged 20-29. The fast food restaurant industry pattern formed in the three restaurants in each age group (McDonald's, KFC, and Burger King) has the same shape: door knobs.
Keywords: Maketing 4.0, Milenials, Purchase Action Ratio, Brand Advocacy Ratio, Customer Path
http://dx.doi.org/10.21776/ub.agrise.2022.022.4.11 Received 15 June 2022 Accepted 24 October 2022 Available online 31 October 2022
INTRODUCTION
At the era of digitalization is not only changing the way marketing is viewed in the context of communication lines, but the digital era is changing the character and behavior of consumers who were born and grew in this era (Suryani, 2013) Millennial consumers are the generation that spends time in a digital environment. Information technology greatly influences how different tastes, behaviors and ways of working in purchasing and how they consume available products or services especially since entering the digital age.
Along with technology development, marketing has also developed, namely the emergence of marketing strategy 4.0. Marketing 4.0 is a marketing approach that combines online and offline interactions between producers and consumers.
Such conditions change the customer path pattern to 5A, including Aware, Appeal, Ask, Act, and Advocate (Philip Kotler, Hermawan Kartajaya,
2017). The 5A concept, replaces the 4A consumer stage (Aware, Attitude, Act, and Act Again) which is generally used by almost all industrial sectors.
Fast food is a food that is in great demand by many people, especially the millennial generation, because of the fast and practical way of serving (Almatsier, 2009). Obtaining ready-to-eat food in the market makes it easier to provide a variety of food according to taste and purchasing power. It follows the millennial generation's behavior, who like something instant, fast, and love freedom.
Consumer behavior is a dynamic interaction process that includes individuals, groups, or organizations constantly changing to the actions taken to obtain information, consume goods or services by consumer desires (Sumarwan, 2003).
The era of digitalization provides many conveniences in communicating so that it can change consumer behavior and consumer decisions.
The increased consumption of fast food products is also in line with the development of
marketing 4.0 or digitalization. In this digital era, consumers can easily buy the products they need easily and quickly. In addition, consumers can freely access various information related to a product using digital technology.
Marketing 4.0 forms a new customer path pattern, which was previously 4A (aware, attitude, act, act again) to 5A (aware, appeal, ask, act, advocate). The main goal of the 4A line is for customers to become loyal to a brand. Nevertheless, in the 5A customer path, loyalty to a brand is not the primary goal but instead advertising or promoting the brand. Kartajaya & Setiawan, 2014, stated that the digital era of consumer loyalty is not only measured by repurchase of a product or brand but coupled with the desire of consumers to advocate or provide brand or product recommendations to others Consumer behavior that changes according to the times makes companies have to follow existing trends. In the era of marketing 4.0, many conveniences can be done in communicating so that it can change consumer behavior, especially millennial generation consumers. The millennial generation is susceptible to technological developments. In addition, millennials like something instant, fast, and tend to use shortcuts and it is easy to get what they want (W et al., 2019). In addition, the age difference within the millennial generation itself makes it a challenge for the company. According to, consumers who are 30 years old and above are adult consumers who are more loyal to a brand. Generally, consumers aged 30 years and over have deeper considerations before deciding.Young consumers aged 20 years and over are generally easily tempted or instigated by attractive offers when they are not necessarily beneficial (Tjiptono, 2000). It causes teenage or young consumers to prefer to change brands according to their wishes. In market conditions with a very extreme level of competition, the presence of consumers who are loyal to the brand is needed so that the company can survive. Therefore, companies need to be able to understand every existing consumer behavior so that the marketing strategy carried out can run effectively and efficiently.
RESEARCH METHODS
The type of research used is explanatory, exploring the customer paths of fast food restaurants based on consumer characteristics. This research approach uses a quantitative descriptive approach, which is carried out by collecting information regarding the description of consumers in the
research area to describe and interpret the research object according to what it is. According to Singarimbun & Effendi, 1991, descriptive research is intended for careful measurement of certain social phenomena, for example divorce, unemployment, nutritional circumstances, preferences towards particular politics and others
The location of this study is fast food restaurants including McDonald's, KFC, and Burger King in Malang City. Data collection technique with purposive sampling is a sample determination technique with specific considerations. The sample taken as the subject of the study is a sample that meets the predetermined criteria: millennial generation respondents with an age range of 20 to 39 years.
The collected data was tabulated and analyzed quantitatively using Microsoft Excel Program. PAR and BAR analysis to measure how well the company's strategy is doing., there are two metrics measured: Purchase Action Ratio (PAR) and Brand Advocacy Ratio (BAR). PAR measures how well a company converts a Aware (awareness) of a product brand into an Act (purchase). BAR measures how a good company converts a product's brand awareness into brand Advocacy. Par and BAR analysis was performed on each age group of the millennial generation in each restaurant. Hypothesis testing was carried out using chi square analysis. Chi square or chi square (χ2) analysis is a statistical test technique used in hypothesis testing if the population class consists of two or more classes, where the data type is nominal and the sample size is used in large quantities (Heryana, 2017). Par (Purchase Action Ratio) analysis can be calculated by dividing the act by knowing. The BAR (Brand Advocacy Ratio) analysis can be calculated by dividing the advocate by being aware.
From the framework of though, theGfollowing hypothesis can be formulated:
H0: Advocacy of consumers aged 30-39 years is higher than that of consumers aged 20-29 years
H1: The advocacy of consumers aged 30-39 years is similar to that of consumers aged 20-29.
RESULTS AND DISCUSSION
Result
The results of the customer path mapping research as in table 1. The results of PAR (Purchase Action Ratio) analysis and BAR (Brand Advocacy Ratio) analysis in table 2.
Table 1. Customer Path Mapping
No Variabel
Number of People
McDonald’s KFC Burger King
20-29 years old
30-39 years old
20-29 years old
30-39 years old
20-29 years old
30-39 years old
1 Aware 38 40 36 38 35 34
2 Appeal 33 36 31 34 24 29
3 Ask 9 12 17 18 21 23
4 Act 31 30 31 27 27 25
5 Advocate 29 27 28 25 26 23
Source: Primary data analyzed, 2021 Table 2. PAR and BAR
Age PAR (Purchase Action Ratio) BAR (Brand Advocacy Ratio
McDonald’s KFC Burger King McDonald’s KFC Burger King
20-29 years
old 0.81 0.86 0.77 0.76 0.77 0.71
30-39 years
old 0.75 0.71 0.73 0.67 0.65 0.61
Source: Primary data analyzed, 2021
Based on the results of the PAR (Purchase Action Ratio) analysis of each restaurant, which is close to the number 1, it has succeeded in converting brand awareness into purchases. The BAR (Brand
Advocacy Ratio) analysis of each restaurant is close to number 1, which means it has successfully built consumer loyalty. blend marketing channels offline and online so they can always connect with customers (Maulina, Erna; Hendryani, 2018) . Table 3. Hypothesis Test
Significant at the 5% level (0.05)
The analysis showed that the p-value of > α and nilau X2 < CV so that the hypothesis received was H1, namely advocacy carried out by respondents aged 30-39 years was not higher than
respondents aged 20-29 years. The results of chi square test are per the results of this study because the difference in the number of advocacy of respondents aged 20-29 years is higher than that of
f0 20-29 30-39 Grand Total fe 20-29 30-
39
Grand Total
McDonald’s 29 27 56 McDOnald’s 29.61 26.39 56.00
KFC 28 24 52 KFC 27.49 24.51 52.00
Burger
King 26 23 49 Burger King 25.90 23.10 49.00
Grand
Total 83 74 157 Grand Total 83.00 74.00 157.00
Chi Square 20-29 30-39 Grand Total α 0,05
McDonald’s 0.01237 0.01387 0.02624 CV 3,8415
KFC 0.00944 0.01059 0.02004 p-value 0,2982
Burger
King 0.00035 0.00040 0.00075 Grand
Total 0.04703
the age of 30-39 years. It is also under the consumer theory of the millennial generation in general has the same character, namely being responsive to technology, namely spending much time in the digital environment so that information technology is very influential on how the millennial generation lives and works (Anantatmula & Shrivastav, 2012).
With digital technology, millennials are also very active in using social media and online media to interact with the brand of their choice. Respondents,
aged 20-29 years and 30-39 years, also think massive promotion is standard. Even consumers think that competing brands have better quality so that respondents do not do much advocacy.
The study results are also by research from (Hwang & Kim, 2019) where Generation Y is more active in seeking information and at the advocacy stage generation Y actively provides more advocacy than Generation X.
Table 4. Industry Pattren
McDonald’s KFC Burger King
Door Knob Door Knob Door Knob
Door Knob Door Knob Door Knob
Source: Primary data analyzed,2021
Industry Patterns in Fast Food Restaurant The industry pattern formed in each age group in fast food restaurants is door knobs, which show that customers have a solid commitment to each restaurant so that customers do not spend much time figuring out products and evaluating products further. Customers already have great expectations and trust in the brand and its products. Purchases by customers often happen instantly and are driven by
tempting promotions. Many customers already buy fast food products at these three restaurants, both in the 20-29 year old age group and the 30–39 year old age group. However, customers are still reluctant to advocate for the product to others, namely there is a decrease from act to advocate.
Increasing the industry pattern in the form of door knobs is by increasing customer affinity such as loyalty programs and customer service programs.
In today's era of digitization, companies must determine the balance and involvement of technological developments according to the characteristics of their customers. 3 popular techniques can increase engagement in the digital age. The first technique uses mobile phone applications to improve the digital customer experience. The second technique is with a social customer relationship management (CRM) application to engage customers in conversations and provide solutions. The third technique is gamification that helps improve customer engagement (Philip Kotler, Hermawan Kartajaya, 2017).
CONCLUSION
The fast food restaurant industry pattern formed in the three restaurants in each age group (McDonald's, KFC, and Burger King) has the same shape: door knobs. Consumers have a solid commitment to each restaurant so that consumers spend less time figuring out the product and evaluating the product further. Consumer purchases often occur instantly and are driven by tempting promotions, so customer affinity needs to be increased. The strategy of the success of these three fast food resorts is channel management, which combines omnichannel channels, namely making online and offline as communication channels and sales channels.
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