Satisfaction Research for Pizza Pronto The Problem:

Pizza Pronto is a regional chain of pizza restau- rants operating in seven states in the Midwest. Pizza Pronto has adopted a total quality management (or TQM) orientation.28 As part of this orientation, the firm is committed to the idea of market-driven quality. That is, it intends to conduct a research project to address the issue of how its customers define quality and to learn directly from customers what they are looking for in regard to quality. Research Objectives: The objectives of the proposed research are: • To identify the key determinants of customer satisfaction. • To measure current customer satisfaction levels on those key satisfaction determinants. To determine the relative importance of each key satisfac- ton determinant in deriving overall satisfaction. • To provide recommendations to management regarding where to direct the company’s efforts. Methodology: The first objective was met by means of qual- itative research. A series of focus groups were conducted with cus- tomers to determine which attributes of Pizza Pronto’s product and service are most important to them. Based on this analysis, the fol- owing attributes were identified: • Overall quality of food • Variety of menu items • Friendliness of Pizza Pronto’s employees • Provision of good value for the money • Speed of service In the second stage of the research, central-location telephone interviews were conducted with 1,200 randomly selected individu- als who had purchased or eaten at a Pizza Pronto restaurant (in the restaurant or take-out) in the past 30 days. Key information gar- nered in the survey included: • Overall rating of satisfaction with Pizza Pronto on a 10-point scale (1 = poor and 10 = excellent). • Rating of Pizza Pronto on the five key satisfaction attrib- utes identified in the qualitative research, using the same 10-point scale as for overall satisfaction. • Demographic characteristics. Results and Analysis: Extensive cross tabulations and other traditional statistical analyses were conducted. A key part of the analysis was to estimate a regression model with overall satisfac- tion as the dependent variable and satisfaction with key prod- uct and service attributes as the predictors. The results of this analysis were: S=0.48X1+0.13X2+0.27Xg +0.42X4+0.57X where S= overall satisfation rating X,= rating of food quality X2= rating of variety of menu *g= rating of friendliness of employees ×4=rating of value Xy =rating of speed of service Average ratings on the 10-point scale for overall satisfaction and the five key attributes were: S=7.3 X=6.8 x2=7.7 *3=8.4 X4=6.9 X5=8.2 The regression coefficients provide estimates of the relative importance of the different attributes in determining overall satis- faction. The results show that X, (rating of speed of service) is the most important driver of overall satisfaction. The results also indi- cate that a one-unit increase in average rating on speed of service Will produce an increase of 0.57 in average satisfaction rating. For example, tie current average rating on speed of service is 8.2. If, by providing faster service, Pizza Pronto could increase this rating to 9,2, then it would expect the average satisfaction rating to increase to 7.87. 4, (rating of food quality) and X, (rating of value) are not far behind speed of service in their effect on overall satisfaction accord- ing to the regression estimates. At the other extreme, X, (rating of variety of menu) is least important in determining overall satisfac- tion, and X, (rating of friendliness of employees) is in between in importance. The performance ratings provide a different picture. According to the average ratings, customers believe Pizza Pronto is doing the best job on X, (friendliness of employees) and the worst job on X, (food quality).

Question 1. Plot the importance and performance scores in a matrix. One axis would be importance from low to high and the other would be performance from low to high.

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