Marketing Strategies Restaurant Leaders Use To
Develop Their Customer Base
Section 1: Foundation of the Study
The purpose of this research study was to explore the marketing
strategies restaurant leaders use to develop their customer base. The goal of
this study was to offer independent family-oriented, full-service restaurant
leaders marketing strategies to develop a customer base. Establishing best
practices may ensure that independent restaurants can attract customers and
maintain market share within their local area. I used a qualitative case study
design to explore marketing strategies restaurant leaders used in their
independent family-oriented, full-service restaurants to develop a customer
base to survive their first year of operation.
Background of the Problem
Survival is an issue with full-service restaurants with fewer than 100
employees because they are failing almost as rapidly as they are opening
with an average of 24,000 opening and 22,000 closing each year over the
past 5 years (U.S. Census Bureau, 2012). Parsa, Self, Syndor-Busso, and
Yoon (2011) found that independent restaurants are 59% more likely to close
than chain restaurants, with 25% expected to close within the first year.
There is a gap in research as researchers disagree on the exact reason
independent restaurants fail and attribute failure rates to many internal and
external factors. Independent restaurant owners identified customers as the
top external factor to success over location, the economy, and the
competition (Mandabach, Siddiqui, Blanch, & Vanleeuwen, 2011).
Despite researchers’ agreement that digital marketing communications
have become critical to customer relationship management, many small
restaurants are overwhelmed with the choices and lack the resources to
implement new marketing strategies (Perry, 2014). Electronic word of mouth
(e-wom) is more pertinent regarding intangible services like restaurants
because customers tend to share evaluations after visiting; however, little
research has been conducted on the significance of e-wom in the restaurant
industry (Jeong & Jang, 2011). The purpose of this study was to provide
independent family-oriented, full-service restaurants with marketing
strategies to develop a customer base during the first year of operation.
Understanding how to communicate and attract new customers through
marketing can increase the ability of restaurants to survive during the first
year and beyond.
Problem Statement
Researchers have found that marketing is a principal factor in the
success or failure of small independent restaurants (Perry, 2014). The
Bureau of Labor Statistics (2015) indicated that independent full-service
restaurants have a median lifespan of 4.5 years, and 17% fail in the first year
(Luo & Stark, 2015). The general business problem is that some restaurant
leaders in independent family-oriented, full-service restaurants fail to
develop a customer base during their first year of operation, which results in
loss of profitability for the restaurant. The specific business problem is that
some restaurant leaders in independent family-oriented, full-service
restaurants lack marketing strategies to develop a customer base to survive
their first year of operation.
Purpose Statement
The purpose of this qualitative multiple case study was to explore
marketing strategies restaurant leaders used in their independent family-
oriented, full-service restaurants to develop a customer base during their first
year of operation. The targeted population composed of restaurant leaders of
three independent family-oriented, fullservice restaurants located in the
Pittsburgh, PA, metro area. The implication for positive social change
includes the potential to provide independent family-oriented, full-service
restaurants information to develop marketing strategies that will assist in
developing a customer base, creating profitability, and overall business
success. The success of independent restaurants may contribute to social
change through promoting the development of other independent restaurants
and local small businesses, as well as increasing the viability of their local
communities through cause-related marketing efforts.
Nature of the Study
I used a qualitative method for this study to explore what marketing
strategies independent family-oriented, full-service restaurants use to
develop a customer base to survive the first year of operation. Qualitative
researchers learn about participants’ thoughts, feelings, and emotions on the
topic through open-ended questions, which the quantitative approach does
not (Ilkay, 2013). Qualitative researchers gather in-depth data and analyze
participants’ answers (Mancuso & Stuth, 2011). The qualitative method
allowed me to obtain valuable information in establishing best practices for
independent family-oriented, full-service restaurants’ marketing strategies to
develop a customer base during the first year of operation.
I used a multiple case study design to understand how successful
independent family-oriented, full-service restaurants used marketing
strategies to develop a customer base to survive the first year of operation.
The case study design is used to explore a phenomenon or case in a
comprehensive and practical environment (Yin, 2013). A multiple case study
design is preferred over a single case study when the study involves a
comparison of subjects’ practices to gain an enhanced comprehension of
those practices (Wahyuni, 2012). Other qualitative designs, including
phenomenological and narrative, were not the most appropriate choice
because these methods do not enable researchers to probe the complex
phenomenon through in-depth interviews and review of secondary data such
as the restaurants’ marketing and business strategies documentation,
customer base information, and profitability records during the first year of
operation. A multiple case study design allows researchers to use multiple
subjects and data sources to analyze a phenomenon in its natural setting
(Wahyuni, 2012).
Research Question
The primary research question was the following: What marketing
strategies do independent family-oriented, full-service restaurant leaders use
to develop a customer base to survive the first year? There were 11 interview
questions used in the study:
Interview Questions
1. What marketing strategies do you use to develop a customer base
during the first year?
2. What marketing strategies are most important when developing a
customer base during the first year?
3. What types of marketing strategies do you find are the most
successful during the first year?
4. How do you evaluate marketing strategies’ success when
developing a customer base during the first year?
5. What experiences do you have utilizing traditional marketing
strategies to develop a customer base during the first year?
6. What experiences do you have utilizing emerging marketing
strategies to develop a customer base during the first year?
7. What are your experiences with push versus pull marketing when
developing a customer base during the first year?
8. How does customer word of mouth influence the marketing
strategies you use to develop a customer base during the first year?
9. How does consumer-driven marketing influence the strategies you
use to develop a customer base during the first year?
10. How does innovation influence the marketing strategies you use to
develop a customer base during the first year?
11. What additional information you would like to provide that I did
not already ask?
Conceptual Framework
The conceptual framework selected for this qualitative study was the
extended marketing mix theory. Booms and Bitner’s (1981) marketing
management theory emphasizes how three additional factors (people,
process, and physical evidence) can influence the marketing process. The
extended marketing mix theory expands on the original 4Ps of marketing:
product, place, price, and promotion (Jain, 2013). Gordon (2012) argued that
the 4Ps alone were not adequate given recent advances in technology such as
the movement to focus on the consumer in marketing plans and social
media. People represent personnel or customers who interact with one
another, process includes procedures and policies such as handling customer
interaction, and physical evidence refers to the environment in which
customers may interact or purchase services (Anitsal, Girard, & Anitsal,
2012). The extended marketing mix theory related to the study with the
inclusion of people as an essential component of the marketing mix.
In this case study, the additional P translated into the customers of
independent family-oriented, full-service restaurants. The most significant
business variable, especially for restaurants, is the customer. I evaluated
what marketing strategies independent restaurants used to develop a
customer base during their first year of operation. The extended marketing
mix theory reinforced the modification of traditional marketing knowledge
and supported the need for research on what marketing strategies
independent restaurants use to develop a customer base during their first year
of operation. I applied the extended marketing mix theory by exploring how
the additional P or people influenced best practices for independent family-
oriented, full-service restaurants that used marketing strategies to develop a
customer base during their first year of operation.
Definition of Terms
4Ps of marketing: The four components of the traditional marketing
mix are product, price, place, and promotion (Gordon, 2012).
Cause-related marketing: A corporate social responsibility program in
which a company donates to a nonprofit cause when a customer purchases
from the company or also donates to the cause (Hanks, Line, & Mattila,
2015).
Consumer-driven marketing: Consumers contribute to the marketing
process by coproducing information they consider valuable through a pull-
like process (Bacile, Ye, & Swilley, 2014).
Extended marketing mix theory: Management theory by Booms and
Bitner that expands on the traditional 4Ps of marketing by adding people,
process, and physical evidence, creating the 7Ps of marketing (Anitsal et al.,
2012).
Family-oriented, full-service restaurants: Establishments that fall
under NAICS Code 722511 (family restaurants, full service) provide food
services to customers who sit and order from a server and pay after eating.
NAICS code 722511 may include establishments that also provide takeout
services and sell alcoholic beverages (U.S.
Census Bureau, 2012).
Social media: Internet-based applications like Facebook, Twitter, and
LinkedIn that build on Web 2.0 foundations by allowing the development
and exchange of usergenerated content (Kaplan & Haenlein, 2010).
Assumptions, Limitations, and Delimitations
Assumptions
When researchers take certain observations or experiences for granted
and accept them to be true, they are making assumptions about their study
(Nenty, 2009). There were several assumptions included in this study. First,
I assumed that all participants provided truthful responses, and no bias
existed from either the participants or me that would influence the responses
or interpretation of data. A second assumption was that independent family-
oriented, full-service restaurants wanted to use marketing strategies to
develop a customer base during the first year of operation.
Using a qualitative multiple case study research method, I assumed
that data from in-depth interviews with independent family-oriented, full-
service restaurant leaders who use marketing strategies to develop a
customer base could be translated into best practices for the business world.
I purposely selected all participants and asked them to volunteer their time
for the study by sending an emailed letter to each participant indicating the
purpose of the study. Purposely selecting participants ensured all restaurants
leaders interviewed were appropriate for this study.
Limitations
Nenty (2009) stated that a study’s limitations include inevitable
circumstances that are not within the researcher’s control. One of the study’s
limitations was the experience level of the participants. Marketing strategies
are evolving, and participants may have limited experience or lack in-depth
knowledge about which marketing strategies are the most effective to
develop a customer base during the first year of operation.
Delimitations
When researchers narrow the scope of a study and impose limitations
on the study, they are creating delimitations (Nenty, 2009). This study’s
delimitations included the lack of consideration of how marketing strategies
of independent restaurants were different from chain restaurants. Another
delimitation was the small geographical segment used in this study. I did not
research restaurants outside of the Pittsburgh metro area or franchised
restaurants.
Significance of the Study
Value of Study
The results of this study could bring value to the business environment
by allowing restaurants to explore customer needs using marketing
strategies. Restaurant leaders could understand the best practices for utilizing
marketing strategies to reach local customers and increase market share.
Independent restaurants could benefit from this study in three ways:
developing a customer base during the first year of operation, increasing
profitability, and surviving past the first year of operation.
Contribution to Business Practice
This study could assist independent restaurant leaders in
understanding the concept of utilizing marketing strategies and creating best
practices for developing a customer base, increasing profitability, and
surviving past the first year of operation. Independent restaurants rely on
local customers to increase profitability and survive past the first year. These
restaurants must continue to implement marketing strategies to reach
customers and develop a customer base during the first year of operation.
The goal of this study was to offer independent family-oriented, full-
service restaurant leaders marketing strategies to develop a customer base.
Establishing best practices may ensure that independent restaurants can
attract customers and maintain market share within their local area. Owning
a small business can be a challenge with almost 50% of all small businesses
failing within 5 years (Small Business Administration, 2014). This study
could assist independent restaurant leaders in developing their customer base
during the first year of operation through use of marketing strategies.
Implications for Social Change
This study may promote positive social change by presenting
marketing strategies that can increase a restaurant’s ability to implement
cause-related marketing campaigns. Cause-related marketing is a corporate
social responsibility program in which a company donates to a nonprofit
cause when a customer purchases from the company or also donates to the
cause (Hanks et al., 2015). A restaurant can increase brand loyalty with
customers while implementing positive social change through cause-related
marketing.
Another way to promote positive social change is to allow restaurants
to create social responsibility by addressing consumer needs via marketing
strategies. Despite a desire to be socially responsible, restaurants are
concerned with getting customers to restaurants before customer food
selection. Lee, Conklin, Cranage, and Lee (2014) determined that by
addressing the consumer need for healthier food, the brand image of the
restaurant also increased. A business can create campaigns through
marketing to promote their efforts to remain sustainable and elicit requests
from customers.
A Review of the Professional and Academic Literature
Survival is an issue with full-service restaurants with fewer than 100
employees because restaurants are failing almost as rapidly as they are
opening with an average of
24,000 opening and 22,000 closing each year over the past 5 years (U.S.
Census Bureau, 2012). Parsa et al. (2011) found that independent restaurants
are 59% more likely to close than chain restaurants, with 25% expected to
close within the first year. Researchers disagree on the exact reason
independent restaurants fail and attribute failure rates to many internal and
external factors (Mandabach et al., 2011). Further research could establish
best practices for independent family-oriented, full-service restaurant leaders
to implement marketing strategies when developing a customer base during
the first year of operation.
I used a variety of scholarly search engines and key word searches to
identify 116 sources for this study. Key word search phrases included
independent restaurants and survival, social media and restaurants,
restaurants and marketing, and e-wom. Of the 116 sources, 86% were
published within the past 5 years, and 93% were from peerreviewed journals.
The literature review included 85 of the 116 sources, and 92% were from
peer-reviewed journals. The literature review highlights several recurring
themes discovered when reviewing scholarly literature: conceptual
framework, independent restaurant size and survival, independent restaurants
and consumer-driven marketing, need for customer base, push versus pull
marketing, consumer-driven marketing, marketing innovation, developing a
customer base and word of mouth, e-wom and social media, consumer
reviews, developing a customer base and emerging marketing strategies,
traditional versus emerging media, marketing innovation history, small
business marketing, marketing strategy, innovative marketing, marketing
strategies and social change, consumer research and marketing innovation,
and future research. All of these themes apply to the study topic exploring
what marketing strategies independent family-oriented, full-service
restaurants used to develop a customer base during the first year of
operation.
Marketing Theory
Marketing theory has evolved over time, especially with the addition
of innovative technologies. Although the original 4Ps developed in 1960
focused strictly on product, price, place, and promotion, social media has
presented challenges to the 4Ps of marketing (Fitzgerald, Cavanaugh, &
Bhiro, 2014). Scholarly analysis of this topic indicated that this method of
creating a marketing mix was missing critical components, but there has not
been widespread agreement on how to modify the marketing mix (Fitzgerald
et al., 2014). Gordon et al. (2013) agreed the 4Ps of marketing have been in
need of refinement since the inception of social marketing.
Various scholars have presented alternative theories to enhance or
replace the traditional 4Ps of marketing. Some of those include the
associative network theory that consumers can establish pathways in their
minds leading to networks of connections in consumer memory (Koll, Von
Wallpach, & Kreuzer, 2010). The theory indicates that a consumer can
influence a brand without realizing it through techniques like free
association influencing their buying behavior and other consumers (Koll et
al., 2010). Previous marketing studies address Roger’s theory of diffusion
concerning the implementation of new technologies (Barnes & Jacobsen,
2013). Gordon et al. (2013) explored the confusion surrounding the 4Ps and
presented a new model: capability opportunity motivation social marketing
(COM-SM). The COM-SM model provides a broad scope for quick and
effective implementation. Focusing on the scope and scale of social
marketing within the marketing mix can help link consumer behaviors to
social media marketing efforts (Gordon et al., 2013). All of these conceptual
frameworks focus on marketing innovations rather than people, and an
additional P may enhance the marketing theory for companies of all sizes
and industries.
Anitsal et al. (2012) agreed that the traditional 4Ps marketing mix
does not account for important components of people, process, and physical
evidence that are unique to service marketing. People represent personnel or
customers who interact with one another, process include procedures and
policies such as handling customer interaction, and physical evidence refers
to the environment in which customers may interact or purchase services.
Applying these new components to the marketing mix provides stronger
relationships between consumers and businesses, which can lead to
increased brand loyalty (Anitsal et al., 2012). Yip and Chan (2012) also used
the conceptual framework of Booms and Bitner’s 7Ps of marketing for its
widespread, accessible, and comprehensive application ability.
Jain (2013) suggested the current marketing mix containing only 4Ps
lacks a customer-oriented focus that is necessary in the current business
world. The marketing mix requires realignment with emphasis on
relationships and consumer-focused marketing messages, especially for
services marketing. Jain recommended a new emarketing mix that integrates
additional Ps into marketing tactics using Booms and Bitner’s 7Ps theory
and supporting the use of the extended marketing mix theory as a conceptual
framework for further investigation into marketing strategies.
Madiba (2009) studied the effect the extended marketing mix had on
consumers’ purchasing behaviors in the restaurant industry due to a lack of
understanding among marketers regarding the influence of this theory in the
fast-food environment. The theory is widely applicable in the restaurant
realm because the three additional components (people, process, and
physical evidence) can help restaurants gain the advantage in a highly
competitive industry (Madiba, 2009). Madiba emphasized the overwhelming
influence of the extended marketing mix components on customer
purchasing behaviors.
Madiba found that the personnel of the restaurant had a 62% influence
on customers, the physical evidence had a 68% impact, and processes
directly influenced 58% of on what customers ordered at the restaurant.
Several recommendations based on the study included the focus restaurant
leaders must have on these elements when creating a marketing mix.
Applying the extended marketing mix includes the service side that other
theories overlook (Madiba 2009).
Shah (2012) explored how the extended marketing mix differs from
the traditional marketing mix. Shah analyzed each component’s influence
within the restaurant industry and discussed the growing significance of the
7Ps in the service industry. There was an emphasis on the importance of
service people in a restaurant and the impression staff can make on
customers (Shah, 2012). However, Shah’s 2012 study lacked specific data
for each component as compared to Madiba’s (2009) study on the restaurant
industry.
Singh and Kumar (2015) explored the influence marketing strategies,
including the extended marketing mix, had on customer satisfaction within
the hospitality industry.
Due to the distinctiveness of restaurants offering a tangible product like food
and intangible services, hospitality marketing is challenging (Singh &
Kumar, 2015). Renaghan (as cited in Singh & Kumar, 2015) created a
hospitality marketing mix focused on product/service, presentation, and
communication aspects but did not include vital components of service
marketing like variability, intangibility, inseparability, and perishability
accounted for in the extended marketing mix.
Additional theories addressed in hospitality marketing include
Hughe’s 1997 identification of distinctiveness as a necessary component,
Xuing’s 2007 discussion of tangible versus intangible marketing, and
Tsang’s 1998 focus on service quality and the marketing mix (as cited in
Singh & Kumar, 2015). All of these theories build on the traditional
marketing mix, but only the extended marketing mix includes components
that focus on customer satisfaction, service quality, and effective service
distribution (Singh & Kumar, 2015). Marketers in the hospitality industry
must focus on all of the 7Ps to find the balance that provides the most
effective marketing strategy for their customers (Singh & Kumar, 2015).
Bangre, Ghangale, and Ghaisas (2015) agreed that the extended
marketing mix included the intangible aspect of the service industry and how
people can influence the process involved in offering services. Customers in
the IT industry completed questionnaires to describe their satisfaction
regarding each of the seven elements of the extended marketing mix. An
analysis of data revealed there was a relationship between the use of the
extended marketing mix and an increase in customers within the IT industry
(Bangre, Ghangale, & Ghaisas, 2015).
Bangre, Ghangale, and Ghaisas (2015) concluded that each element of
the extended marketing mix did not have equal influence on customers and
therefore should not get equal attention when developing a marketing
strategy. The service, price, and people involved in the process were the
most vital aspects to customers in the IT industry. The place component of
the marketing mix did not have as much influence on customers primarily
because IT firms usually operate from a single location (Bangre, Ghangale,
&
Ghaisas, 2015).
Kuria (2015) studied how the extended marketing mix affected
customers’ selection of a vacation or holiday camp. Interviews of customers
indicated that a variety of elements played a role in their purchasing
decisions, and all seven elements of the marketing mix were important in the
decision-making process. Specifically, place and people were major
influencers in the selection of a particular holiday camp while price and
promotion were important components of the decision-making process
(Kuria, 2015).
Independent Restaurant Size and Survival
According to the U.S. Census Bureau (2012), almost all full-service
restaurants are small, independent businesses with 98% having fewer than
100 employees. The majority of restaurants operate independently, and
seven out of 10 restaurants are singleunit operations (National Restaurant
Association, 2015). According to the Small Business Administration (2014),
nine out of 10 restaurants are small businesses, and 50% of small businesses
fail within the first 5 years. Restaurant survival is an issue with full-service
restaurants with fewer than 100 employees because they are failing almost as
rapidly as they are opening with an average of 24,000 opening and 22,000
closing each year over the past 5 years (U.S. Census Bureau, 2012).
Parsa et al. (2011) found that independent restaurants are 59% more
likely to close than chain restaurants, with 25% expected to close within the
first year. In challenging economic times, full-service restaurants are the
most significantly impacted segment within the restaurant industry, and
owners must be proactive in understanding business cycles and strategic
plans (Lee & Ha, 2012). Researchers disagree on the exact reason
independent restaurants fail and attribute failure rates to many internal and
external factors, indicating a need for additional research (Mandabach et al.,
2011). Frazer (2012) agreed with the need for research because some
restaurant owners do not consider how internal factors correlate with profit,
costs, and overall survival. Similarly, Hua, Xiao, and Yost (2012) discussed
how factors like poor quality products, organizational culture, and marketing
contribute to restaurant success. There is a need for further research
considering the link between effective allocation and utilization of marketing
funds and restaurant outperformance of competition in troubled economic
times (Hua et al., 2012).
Independent Restaurants and Consumer-driven Marketing
Need for customer base. Independent restaurant owners have
identified customers as the top external factor to success over location,
economy, and competition (Mandabach et al., 2011). Similarly, Perry (2014)
found that most small restaurants recognized how vital understanding and
communicating with customers was to their success. Full-service restaurants
have outgrown quick-service restaurants over the past decade, indicating that
customers are still visiting full-service restaurants during down economic
times (Reynolds et al., 2013).
A customer base is vital to the success of a restaurant within the first
year because repeat customers account for 63% of sales at family dining
restaurants (National Restaurant Association, 2012). Ma, Qu, and Eliwa
(2014) found that loyal customers were integral to the success of restaurants
and cited a need to understand their customers needs to build loyalty.
Customers who express loyalty to a restaurant are one of the strategic
competitive advantages leading to referrals, higher market share, and overall
survival (Ma et al., 2014).
Push versus pull marketing. Traditional media allowed marketers to
determine the messages and push them toward consumers with little
feedback or input from the customers. A pull strategy considers consumer
input when developing marketing messages and aligns with emerging
technologies (Hargittai, Neuman, & Curry, 2012). It is essential for
businesses in all industries to understand how to develop a marketing
strategy that incorporates a pull strategy. Understanding the influence
personal media (such as accessing social networking on a mobile phone) has
on consumers is necessary when developing an effective marketing strategy.
Bacile et al. (2014) learned that the firm-consumer relationship must elicit a
more pull-like participation process. Businesses must provide consumers
with a more active role after opting in to develop a mutually valuable
relationship and allow consumers to coproduce marketing communication
efforts (Bacile et al., 2014). Hargittai et al. (2012) agreed that new online
media forums have created an undeniable shift from push marketing to pull
marketing. Using focus groups, Hargittai et al. investigated this change
discovering the two-way communication of social media was empowering
and made consumers confident in expressing their opinions.
Bacile, Hoffacker, and White (2014) concurred marketers used to be
the sole producer of marketing material and had control over the sharing of
product and brand information. However, with the surge of social media
sites and mobile technology, consumers now play a coproducer role in
sharing information with other consumers. Social media is modifying the
way companies handle service requests and complaints by turning the
conversation from face-to-face to electronic word of mouth. Companies
must consider moving towards integrated marketing communications plans
that interact with consumers and allow them to be active in building
marketing messages (Bacile et al., 2014).
Consumer-driven marketing. The restaurant industry is very
competitive, and owners must focus on consumer needs by establishing a
consumer-driven process; however, research indicates there is a lack of
understanding about the most effective method (Harrington, Ottenbacher, &
Way, 2013). In a consumer-driven market, customers are selecting
restaurants primarily by promotional advertisements, restaurant reputations,
reviews, and food ratings (Harrington et al. 2013). Consumers are taking a
more active approach in decision-making driven mostly by consumer use of
social media to research and share information (Kwok & Yu, 2012).
Consumers are actively sharing information on social media platforms
requiring restaurants to determine the most effective way to manage
consumer-driven marketing via social media (Kwok & Yu, 2012).
Researchers suggested a need for further marketing research to consider the
emotional side of customers who share on social media and their influence
on other consumers (Smith, 2013). The main characteristic of contributing
on social media is the ease of communicating with friends, colleagues, and
strangers. People want to be able to provide information they feel is valuable
to others and in turn want to have access to information from like-minded
people (DeAndrea, 2012).
In establishing a link between consumer behavior and social media,
one must understand the impact on the marketplace and bottom-line for a
corporation. Corstjens and Umbligs (2012) developed a process to analyze
the effect of social media indicators on a brand’s market performance but
restriction of a specific industry limited the study. Corstjens and Umbligs
analyzed two real-world examples linking the amount of social media
coverage to market performance and discovered negative social media had a
more powerful impact on a brand in the marketplace. Bronner and DeHoog
(2014) focused on how social media is influencing consumer decisions,
examining the relationship between factors like e-wom, consumer
experience, site relevance, and accessibility. Findings indicated higher ticket
items require more in-depth searches on domain specific sites like
Tripadvisor and open opinion sites like Facebook (Bronner & DeHoog,
2014).
There is little question companies use social media to promote
products and support brand image; however there is a question as to how
social media affects consumer purchases. Powers, Advincula, Austin,
Graiko, and Snyder (2013) concluded the digital world has better-connected
companies with consumers, as well as consumers with other consumers.
Powers et al. analyzed a variety of variables such as consumer emotion, time
spent online, and influence of other consumers’ opinions online. Luo and
Zhang (2013) agreed consumer-created buzz does have a relationship with
the overall value of a firm and managers should consider establishing more
positive social media buzz. Smith (2013) used a quantitative study to
determine consumer social media experiences emit strong feelings and can
impact future consumer behavior. Additional research could help understand
how business owners are addressing this element of consumer marketing and
establish best practices for implementing social media within a marketing
plan (Smith, 2013).
Marketing innovation. The wide variety of Internet sources now
available to consumers has increased the ability of companies to reach a
larger group of consumers and create better-segmented messages (Vinerean,
Cetina, Dumirescu, & Tichindelean, 2013). Companies must focus on
creating a holistic approach to marketing and engage consumers in creating
marketing messages because social media provides an innovative outlet that
impacts an organization’s brand image and future purchasing behavior of
consumers (Naylor, Lamberton, & West, 2012). The concept of marketing
innovation requires further research into how much information companies
should share with consumers such as, user demographics of social media
platforms, and how that could help or harm brand image (Naylor et al.
2012).
Vinerean et al. (2013) concluded old traditional marketing methods
are not a sustainable option for corporations in this new age of technology
and suggested creating relationships with consumers through engagement,
building brand advocates, and utilizing large-scale marketing strategies.
Rather than focusing on traditional features and benefits, companies must
develop experiential marketing efforts that emphasize customer experiences
(Nigam, 2012). If a customer has a pleasant dining experience, they are more
likely to make additional purchases, whereas if a customer has a negative
experience they are less likely to return (Nigam, 2012). Restaurant owners
must create marketing strategies that emphasize the wants of customers and
bring innovation and positive experiences that create a desire for the
customer to return (Nigam, 2012).
Developing a Customer Base and Word of Mouth
Restaurant customers are using word of mouth to share positive and
negative reviews with others. Han and Ryu (2012) found that when
restaurants focused on improving service interactions, there was an increase
in customer trust and desire to share positive word of mouth. When
restaurants attempted to target customer preferences and develop promotions
or events that customers found satisfying, positive word of mouth increased
(Han & Ryu, 2012). Electronic word of mouth is more pertinent regarding
intangible services like restaurants; however little research has been
conducted into the significance of e-wom on the restaurant industry (Jeong
& Jang, 2011). E-wom platforms can provide restaurants with an opportunity
to follow the conversations of customers unlike traditional word of mouth
(Parikh, Behnke, Vorvoreanu, Almanza, & Nelson, 2013). Ong (2012)
agreed that restaurant customers now use social media sites, as part of the
decision-making process, with 80% of consumers primarily concerned with
customer service ratings of online reviews.
User-generated review sites, such as yelp.com, provide restaurant
consumers with a platform to connect with other consumers and voice
opinions, complaints, and reviews of restaurants, the impact of which can
drastically affect a restaurant’s reputation (Parikh, Behnke, Vorvoreanu,
Almanza, & Nelson, 2013). Jeong and Jang (2011) found that restaurant
customers used e-wom to share experiences regarding food quality, service
quality, and atmosphere to other potential customers. Restaurant consumers
are using social media tools, with 60% trying new menu items based on
online reviews (Jeong & Jang, 2011). Additional research would contribute
to understanding how negative or positive e-wom impacts consumer
decision-making about choosing a restaurant and why consumers post e-
wom about their experiences.
Likewise, Berger and Iyengar (2013) discovered word of mouth
heavily influenced consumers’ purchasing behaviors and e-wom
disseminated reviews on an unparalleled level. Cheung and Thadani’s (2012)
literature review also indicated that consumer-generated online reviews are
trusted more than traditional media sources like radio, print, and television
advertisements. E-wom readily allows businesses to gain a customer
perspective on their brand, as well as view, analyze, and compare social
media posts, online reviews, and other e-wom messages to understand
themes among customers’ needs and wants (Cheung & Thadani, 2012).
Researchers have proven that when consumers have the opportunity to think
about what they want to post via asynchronous online forums, they are more
likely to be honest and provide more in-depth posts and reviews about
brands (Berger & Iyengar, 2013). Cheung and Lee (2012) agreed the
advancement in Internet technology has increased the amount consumers
rely on online reviews when making purchasing decisions.
Consumers continue to engage each other by posting online reviews,
but the question remains – what motivates consumers to post online, how
credible are the reviews, and do these reviews impact other consumers’
purchasing behaviors. Mengze and Wojniki (2014) examined the
motivations of consumers who posted online reviews concluding that
offering an extrinsic reward resulted in higher referral rates than an intrinsic
motivated post. Moe and Schweidel (2013) also supported a need to
understand why consumers post reviews online and began to look at the
validity of online reviews. Moe and Schweidel studied the effect bandwagon
behavior had on motivations of online reviewers and concluded reviewers
were more encouraged to post when existing reviews were either extremely
high or extremely low. Consumer-driven marketing will only increase with
the introduction of new social media tools, and organizations must take a
collaborative approach to this new pull marketing method (Vinerean et al.,
2013).
Developing a Customer Base and Emerging Marketing Strategies
Perry (2014) discovered that small restaurants were shifting marketing
from traditional offline to innovative online channels such as social media,
email, and websites. Independent restaurants maintained a social media
presence with 98 % having a Facebook page (Perry, 2014). There is
widespread concern among foodservice operators about how to integrate
social networking site trends into successful strategies (DiPietro, Crews,
Gustafson, & Strick, 2012). Only 28% of restaurant owners stated their
social media efforts “definitely increased” attracting new customers
(Needles & Thompson,
2013).
He, Zha, and Li (2013) found pizza restaurants used various aspects of
social media, but additional research could help understand how to convert
social media users into customers. Needles and Thompson (2013) found that
72% of independent and franchise restaurant owners were uncertain if their
social media efforts were effective in attracting and maintaining customers.
The majority of restaurant owners are attempting to measure social media
usage, with 38.4% citing a need for tangible metrics, 12.8% citing a need for
measuring revenues, and another 12.8% citing a need for multiple metrics
(Needles & Thompson, 2013).
Researchers have cited that marketing is a principal factor in the
success or failure of small, independent restaurants (Perry, 2014).
Restaurants that targeted married couples and families between the ages of
30-49 were the heaviest users of social media, an emerging marketing
approach (Needles & Thompson, 2013). Despite researcher agreement that
digital marketing communications have become critical to customer
relationship management, many small restaurants are overwhelmed with the
choices and lack the resources to implement new marketing strategies (Perry,
2014).
Kowk and Yu (2012) studied the effectiveness of restaurants’ social
media messages and suggested that restaurants use eye-catching keywords
and photos of menu items or special events in status updates. Restaurants
can gain an advantage by establishing a friendship type relationship with
customers via social media rather than pushing marketing messages. After
engaging customers through sharing recipes, asking for feedback on menu
items, or discussing community involvement restaurants can balance
additional posts with promotions or marketing materials (Kowk & Yu,
2012).
DiPietro et al. (2012) found that restaurants could use social
networking to reduce costs and maintain a competitive advantage. Despite
an inconsistent trend among which social media platform restaurants used
most, restaurant managers did report that social networking was beneficial as
a low-cost advertising and marketing tactic (DiPietro et al., 2012). Potential
advantages of social networking included finding employees, menu
feedback, promotion, and maintaining direct feedback with customers
(DiPietro et al., 2012).
Traditional versus emerging media. The Internet has been around
for over 25 years, and the recent surge of social media sites has contributed
to the evolution of consumer and company interaction (Fry, 2014). Katona
and Sarvary (2014) defined social media as “the way in which people
interact to create, share, and/or exchange information and ideas in virtual
communications and networks”. Consumers are looking for a personal touch
when companies use social media to communicate with them. Katona and
Savary found traditional and emerging media differed mainly due to social
media’s ability to lower cost, develop higher quantity and quality of
messages, provide a real-time response, and reach a larger target base.
Previous researchers agreed that companies who used e-marketing
(social media, emails, web sites) were able to reach consumers quicker, but
questions still linger regarding effectiveness and profitability of such
methods. Companies must understand how to reach consumers in the most
effective and efficient manners because customers are more business savvy.
Danaher and Dagger (2013) found that businesses want to use the marketing
strategy that will allow them to reach more consumers, increase sales, and
reduce costs.
Danaher and Dagger (2013) used a case study to examine a multi-
media campaign regarding data from a company’s loyalty program.
Although Danaher and Dagger found targeted email effective, they
concluded more traditional media such as direct mail, television, and radio
were the most useful types of media. Their study only examined one
company with limited online shopping options for consumers and only
researched a one month-long promotional campaign. Other studies are
contradictory, indicating social media is more effective for the majority of
retailers.
Marketing innovation history. Simple terms like advertising or
publicity can no longer identify brand communication in the digital age. The
innovation of social media and the Internet have modified how consumers
and companies communicate about brands and products (Campbell, Cohen,
& Junzhao, 2014). Companies can more effectively reach millions of
customers with little to no cost using digital tools. One example, social
media, creates an electronic word of mouth platform that does not exist in
traditional media outlets (Campbell et al., 2014). Previous scholars debated
the concept of social media and understood the main theme was the ability
of multiple users to continuously update content (Kaplan & Haenlein, 2010).
For example, Facebook allows a person to like a brand’s page, which
creates a free source of advertising each time the user log-ins and sees a post
by that brand. Social media began as a personal platform and grew into a
daily marketing activity for businesses to connect with their customers.
Otherwise known as Web 2.0, these new technologies allowed consumers to
become engaged in the marketing process by posting opinions, sharing
product information, and shaping other consumers future purchasing
decisions via social media (Tuten & Marks, 2012).
A Forrester Research study (as cited in Kaplan & Haenlein, 2010)
indicated Internet users reliance on social media increased almost 20% from
2007-2008. Kaplan and Haenlein (2010) found that companies understood
the opportunity to increase profit by utilizing this new technology but did not
know what social media means or how to integrate it properly into their
business plans. Social media created a new platform for consumer activists,
an active form of consumer movements, due to a number of time people
spend in cyberspace (social media). Most researchers have little knowledge
of how effective cyber activism can influence others and bring attention to
their cause (Scaraboto & Nunes, 2013). One individual, who was upset with
Whole Foods’ stance on an environmental issue, began a 2009 boycott via
cyberactivism on a Facebook page, possibly contributing to the 2.3% sales
decrease that year (Kang, 2012). Social media is playing a role in cyber
activism and consumer-driven movements are changing how companies
market.
Restaurants, Social Media, and Return on Investment
Businesses are constantly trying to determine the most effective way
to engage with consumers and increase market share. Social media plays an
integral role in the marketing ecosystem and is at the forefront of most
scholarly and professional debates. Kim, Koh, Cha, and Lee (2015) studied
the impact of social media on a restaurant’s value within the restaurant
industry and found a positive linear relationship between a restaurant’s
social media activity and firm value. Increased positive customer
engagement via social media can influence a restaurant’s value within
financial markets (Kim et al., 2015).
Despite the consumer-generated social networking site era, questions
remain as to how these sites generate revenue and if that same business
model could reach customers (Dasgupta, 2013). Most SNS sites use either
site advertising or a subscription fee to generate revenue, which leads to
sustainability issues and concerns in identifying customers on sites that
require subscriptions. Dasgupta (2013) analyzed various factors to determine
if a profitable revenue stream could be attributed to SNS and determined the
costs of using social media are low, but there is still a lack of tangible
metrics.
One of the primary concerns is the value of social media like
Facebook, and most business owners have a difficult time measuring the
ROI of social media efforts. Companies are skeptical due to lack of
knowledge, inability to measure, and cost of technology-related resources
associated with social media (Agnihotri, Kothandaraman, Kashyap, & Singh,
2012). There is a lack of scholarly information regarding how social media
can influence overall sales strategies. Social media continues to influence
consumer purchasing decisions, and sales firms realize the benefit of having
a social media presence. Organizations must put effort into social media to
ensure prompt responses to customers, accurate information, and positive
feedback (Agnihotri et al., 2012).
Wang and Zhang (2012) revealed social media users can influence others’
purchasing decisions, and a new link exists between consumer shopping and
social media referrals via posts, tweets, or blogs. Mobile phones have added
another dimension to social commerce push marketing concepts like group
buying and co-creation of usergenerated material. All of these innovative
technologies and marketing methods require companies to develop multi-
channel messages to use social media tools effectively and reach target
audiences (Wang & Zhang, 2012).
It has been difficult to measure social media efforts, but Wilcox and
Kim (2013) created the Social Media Performance Model (SMPM) to
analyze social media efforts of organizations. Metrics included daily activity
like Facebook likes, posts, tweets, retweets, along with factors including
website views and new visitors to pages to determine engagement, reach,
and frequency. Companies must understand that social media usage is
dynamic, and the monitoring and evaluating of activity must be continuous
to create the most appropriate messages for the audience (Wilcox & Kim,
2013).
Small Business Marketing
Marketing strategy. Cronin-Gilmore (2012) used a qualitative study
to analyze small businesses marketing methods and what influences small
business owners to pursue other marketing tactics. Small businesses owners
realize their lack of marketing skills but do not know how to use current
marketing tactics and are afraid to try new ventures without experience or
resources. Cronin-Gilmore’s in-depth analysis provides support for the need
to further understand small business marketing and social media. Marketing
researchers want to understand how attitudes impact consumer purchasing
decisions, and the real influence customer satisfaction has on future
purchasing decisions (Qi,
Chandrashekaran, & Yu, 2015). Qi et al. (2015) studied restaurant customer
satisfaction and determined that consumers expressed uncertain satisfaction
if they had prior expectations about promotions.
Innovative marketing. Barnes and Jacobsen (2013) conducted a 4-
year-long study of marketing executives to evaluate the usage of social
media tools by small businesses. The response indicated that 83% of
marketing professionals were using social media, with the most popular
being Facebook and Twitter. Small businesses owners felt that social media
was a critical component to the success of companies and extremely
valuable to marketing and business plans (Barnes & Jacobsen, 2013).
Small businesses can reach a larger market and create more brand
awareness by spreading marketing messages via social media. This
inexpensive marketing tactic can assist small restaurants through boosting
sales and reaching new customers (Needles & Thompson, 2013). Winterberg
(2013) agreed small businesses lag behind when competing with larger
corporations’ marketing budgets. The progression of social media and
mobile marketing reduces that financial advantage, offering a level playing
field to reach and engage target segments (Winterberg, 2013).
Traditional advertising methods are simply not as pertinent in today’s
market because customers can fast-forward through television ads, block
Internet pop-ups, and subscribe to ad-free radio. Companies must integrate
pull marketing methods like opting in for blogs and providing useful content
on social media sites to engage customers (Winterberg, 2013). The use of
online videos and QR codes became a marketing staple with the rise in
consumer use of mobile devices. Social media and mobile marketing are an
integral part of a company’s marketing plan, especially for those firms that
cannot afford strategies that are more elaborate (Winterberg, 2013).
Schaupp and Belanger (2014) found that small businesses lack the
resources or time to establish a traditional marketing plan. Social media can
assist small business owners gain business leads, awareness, and build traffic
at a significantly lower cost than traditional marketing (Schaupp & Belanger,
2014). Sixty-six percent of small business owners realize that social media is
vital to their business success but struggle to measure the value of social
media with only 37% of small business owners feeling proficient in social
media (Schaupp & Belanger, 2014).
Witzig, Spencer, and Galvin (2012) found that small businesses use
LinkedIn more frequently than corporations or nonprofits because of the
ability to create word of mouth messages and referrals at an economical cost.
These findings were contrary to previous studies and presented a new notion
that smaller companies have fewer resources, leading to management’s
involvement in social media decisions (Witzig et al., 2012). Researchers
indicated that when business owners understand the power of social media,
both from a cost and customer interaction perspective, adoption rates of
social networking tools are higher (Witzig et al., 2012). The low cost, ease of
use, and application in marketing, employee retention, human resources, and
other business facets makes social media an appealing choice for all types of
organizations (Witzig et al.,
2012).
B2C Versus B2B Integration
Despite the widespread use of social media in consumer marketing,
there is a lack of research regarding social media use in B2B marketing.
Brennan and Croft (2012) examined social media use of 10 large B2B
companies within the technology industry and found US-companies used
social media the most. Although marketing professionals in consumer
marketing have been using social media tactics, B2B marketers are more
skeptical about how to implement such strategies. The supplier-customer
relationship could be enhanced using social media for real-time
communication, and to build trust with “soft marketing” strategies that
focus on branding, relationship building, lead generation, networking, and
research rather than hard selling (Brennan & Croft, 2012).
Järvinen, Tollinen, Karjaluoto, and Jayawardhena (2012) agreed the
ability to measure and track customer feedback via social media can assist
B2B marketers in branding and building marketing strategies. Although the
most probable reasons B2B companies are slower than B2C companies to
implement social media is a lack of knowledge, management support, and
clear expectations. Järvinen et al. (2012) found that although 75% of B2B
companies thought social media was important in creating brand awareness,
the lack of resources was a barrier to entering the field.
Moore, Hopkins, and Raymond (2013) examined specific relationship-
oriented tools including blogs, instant messaging, RSS feeds, and
social/professional networking sites, and discovered a 50% increase in
mobile use of social media attributed to the overall ease of use for all types
of consumers. B2B companies can create long-term relationships with
customers using these tools. Moore et al. (2013) concluded that B2B and
B2C salespeople differed in the use of social media in several ways. B2B
sales forces rely on professional networking sites rather than social sites to
provide customer service, generates leads, and handle negative feedback.
The B2B community preferred to use relationship and professional
networking tools to maintain a reputable brand and awareness to customers
(Moore et al., 2013).
Marketing Strategies and Social Change
Organizations can use social media to access consumer needs and
requests, as well as communicate sustainability and business plans to
customers. Cause-related marketing is a corporate social responsibility
program where a company donates to a nonprofit cause when a customer
purchases from the company or donates to the cause (Hanks et al., 2015).
Independent restaurants can create social change by implementing cause-
related marketing strategies within their local markets. When restaurants
participate in cause-related marketing, it helps to build a positive brand
image and increase engagement with customers (Hanks et al., 2015).
Many companies consider cause-related marketing a necessary step in
achieving social responsibility and maintaining an ethical appearance. One
method of cause-related marketing occurs when a business donates to a
specific charity when consumers make purchases at their organization
(Vanhamme, Lindgreen, Reast, & Popering, 2012). Hanks et al. 2015 found
that consumers were more likely to donate if the restaurant offered to match
the donation. Vanhamme et al. (2012) indicated there are benefits linked to
causerelated marketing including sales increase, brand loyalty, and employee
motivation. The study supports the need for organizations to research target
markets and determine the most effective tactics to use in cause-related
marketing (Vanhamme et al., 2012).
Corporate social responsibility (CSR) continues to gain traction in
being beneficial to organizations, but there is a lack of research regarding
how CSR motivates consumers’ future behaviors. Öberseder, Schlegelmilch,
and Gruber (2011) examined how CSR influences purchasing behaviors
while taking into account social desirability basis. Despite consumers’
positive attitudes toward socially responsible companies, this did not
translate into buying from that company (Öberseder et al., 2011).
Consumer Research and Marketing Innovation
Customer sentiment can be a difficult concept to measure, but the
advent of social media has created such a large pool of public opinion.
Gunter, Koteyko, and Atanasova (2014) examined potential marketing
research benefits to identify, track, and respond to thoughts about brands and
products via social media. The online era gave power to consumers and
could lead to a deeper knowledge source for market research and a substitute
for traditional market research methods. Concerns over the reliability of
online posts do exist, but Gunter et al. concluded that most users’ express
honest opinions and any overly extreme thoughts are self-corrected by a
higher quantity of genuine posts.
In 2011, social media surpassed email as a communication tool and
began to surface as a marketing research tool (Henderson, 2011). Despite
potential drawbacks, such as the validity of participant information and
control of a moderator, Rolland and Parmentier (2013) found valuable data
could come from actual consumers who want to share information about
their experiences and products. Social media research avoids some costly
expenses of traditional focus groups like travel costs, paper surveys, and
venue rentals; however online users may request additional validation from
researchers as to how their information will be used and protected (Rolland
& Parmentier, 2013).
Caste, Egleston, and Marx (2013) expanded social media’s influence
by analyzing the impact LinkedIn can have from a research perspective.
Caste et al. collected survey data from 714 willing LinkedIn participants via
Survey Monkey and results demonstrated that social media could be a useful
research tool in many ways. First, most scholarly research uses college
students as the population, and social media networks allow researchers to
gain knowledge from subject matter experts from a global arena. Social
media can also decrease the response time, which is an advantage to
researchers (Caste et al., 2013).
Bertrand (2013) examined the level of influence of three brands’
social media mentions and concluded that a social media dataset could
benefit research and should be a tool used to increase trust in brands. Social
media allows researchers to gain a different perspective from consumers and
is easily measured over a period, increasing the validity of the approach.
Another benefit of using social media as a research tool is the ability to gain
retrospective insight from users, which increases the reliability of data
provided by participants (Bertrand, 2013).
Henderson (2011) suggested that social media tools like online focus
groups could enhance but not replace traditional research tools and it is up to
the researcher to know how to use all of the tools available to them. The
concept of gaining insight from the voice of the consumer (voc) has been
around for decades with customer service representatives logging and
recording phone conversations and using that feedback in marketing and
business decision-making process. Henderson agreed with Gunter et al.
(2014) that social media does have challenges ensuring the reliability of
selecting the most appropriate participants. Henderson noted this challenge
has plagued traditional research in the past, but is overcome through
additional validation tools. In research situations where time is vital,
traditional focus groups and phone surveys would take too long, considering
that 500,000 tweets in six hours can provide immediate data to researchers
(Henderson, 2011).
Mancuso and Stuth (2011) concurred that qualitative research focuses
on the how and why aiming to dig deeper into participants’ experiences,
which social media cannot replicate. However, there is potential to merge
social media and traditional knowledge together to gain a deeper insight in a
real-time environment. Benefits include the ability to gather and analyze data
fast, a larger participant pool, ability to track and count brand mentions,
engage in real-time conversations, and analyze competitors; which can
provide more depth to research discussion and create awareness of future
research needs (Mancuso & Stuth, 2011).
Social media is becoming a must-have research tool for marketing
research; however there are many concerns regarding how social media
obtains permission for participants and adheres to ethical guidelines (Nunan
& Yenicioglu, 2013). Most types of traditional research require informed
consent and social media methods pose ethical concerns about participant
guidelines. Nunan and Yenicioglu (2013) examined what private
information means in the social media world and if privacy terms applied to
users’ families or others, they interact with on social media. Once a person
gives consent (as determined by the platform) is that all encompassing or
would it only apply to that one instance? Further, Nunan and Yenicioglu
suggested a type of consent known as participative consent that would
indicate several stipulations where the user knows the consent is ongoing.
Participative consent would include an agreement between multiple users of
the same social media network based on data gathered during social media
research to ensure value and ethically inform users, so they are making
conscious decisions about sharing information and their privacy.
Fry (2014) agreed privacy and consent concerns distort social media
as a research tool. Most users are not aware who can access and use their
personal data for research purposes. The credibility of social media research,
including valid sample groups and purpose of research, plays a role in the
overall value of using social media (Fry, 2014). Fry placed responsibility on
the researcher to build a credible research method by gaining user consent
when possible and being clear about the parameters of the study.
Some scholars believe social media attempts to place a numerical
value on qualitative research by asserting such opinions as the larger the
number (such as Facebook likes or tweets), the better a brand/product is for
consumers (Price, 2013). The number may suggest success but it does not
tell the entire story of a brand, mainly the how or why that qualitative
research aims to provide. Price (2013) suggested that although social media
has value for research, it is important to remember the nature of qualitative
research and not rely solely on social media numbers.
Transition and Summary
Section 1 included a background of the problem, the problem and
purpose statement, nature of the study, research questions, and conceptual
framework. I provided operational definitions, assumptions, limitations, and
significance of the study in Section 1. A review of the scholarly literature
was included to ensure the reader had a basis of the purpose of the study.
The next section will include an in-depth analysis of the methodology
chosen for the study. Section 2 will address aspects of the research study
such as role of the researcher, participants, research method and design,
population and sampling, ethical research, data collection, data organization,
data analysis, and reliability and validity. Section 3 will include the study’s
presentation of findings, application to professional practice, implications for
social change, and recommendations for future action and further research.
Section 2: The Project
Section 2 provides details regarding the purpose statement, role of the
researcher, participants, research method and design, and population and
sampling. I describe ethical research, data collection, data organization, and
data analysis to support the multiple case study design. Section 2 includes an
explanation of the reliability and validity of the study.
Purpose Statement
The purpose of this qualitative multiple case study was to explore
marketing strategies restaurant leaders used in their independent family-
oriented, full-service restaurants to develop a customer base during their first
year of operation. The targeted population comprised restaurant leaders of
three independent family-oriented, full-service restaurants located in the
Pittsburgh, PA, metro area. The implications for positive social change
include providing independent family-oriented, full-service restaurants
information to develop marketing strategies that will assist them in
developing a customer base, creating profitability, and enhancing business
success. The success of independent restaurants can contribute to social
change through promoting the development of other independent restaurants
and local small businesses, as well as increasing the viability of local
communities through cause-related marketing efforts.
Role of the Researcher
Researchers should conduct work in an ethical and reliable setting
while providing value to the field (Fry, 2014). I was the primary data
instrument in the data collection process of this study by conducting each of
the interviews face-to-face with the participants. My qualifications to collect
data include previous business experience with developing marketing
strategies and establishing a customer base, as well as living in the same
geographic region as the participants of the study. Researchers should accept
the responsibility of conducting ethical research including respecting
participants’ privacy, ensuring full disclosure, and minimizing potential bias
(Lunnay, Borlagdan,
McNaughton, & Ward, 2015).
I adhered to the Belmont Report by taking steps to ensure respect,
beneficence, and justice for all human participants involved in the study
(U.S. Department of Health and Human Services, 1979). The Belmont
Report assists researchers in the application of basic ethical principles
through informed consent, risks and benefits assessment, and selection of
participants (U.S. Department of Health and Human Services, 1979). I
applied the Belmont Report principles through a consent form that
highlighted risks and benefits.
I ensured the study adhered to ethical data collection guidelines by
removing potential bias. Each participant received a consent form outlining
the parameters of the study to mitigate bias and keep all participant
information confidential. It is the researcher’s responsibility to develop a
credible and valid research method by gaining user consent when possible
and being clear about the parameters of the study (Fry, 2014). I remained
open minded and objective when interviewing participants to remove any
bias.
This qualitative study included interviews with participants to gather
an in-depth understanding of independent family-oriented, full-service
restaurant leaders’ experiences using marketing strategies to develop a
customer base within the first year of operation. I used purposive sampling
to select participants. In semistructured interviews, the researcher should
have an open mind to expand the discussion if new topics emerge and should
remain flexible to ensure a productive experience for interviewees (Qu &
Dumay, 2011). The in-depth interview protocol promoted participants’
freedom in answering questions honestly without input from the interviewer,
minimizing researcher bias
(Cronin-Gilmore, 2012). The interview questions and protocol appear in
Appendix A.
Participants
Qualitative researchers focus on a smaller number of participants with
a deeper exploration of their experience to gain in-depth understanding
missed by quantitative research (Thomas & Magilvy, 2011). Värlander
(2008) screened study participants for experience, current role, and
knowledge of research topic and acquired prior consent of each participant. I
used similar eligibility criteria. Prospective participants for this study met
the following criteria: had experience with marketing strategies to develop a
customer base; was a restaurant leader in an independent full-service,
family-oriented restaurant; and had been in business for at least 2 years.
Screening of restaurant leaders ensures alignment between the participants
and the overall research question (Asioli, 2011).
Similar to Cronin-Gilmore’s (2012) study, access to a purposive
sample of three successful independent family-oriented, full-service
restaurant leaders occurred through personal research and using local
business directories. I fostered a working relationship with potential
participants through personal communication at the onset of the study via
email, Facebook, phone, and in-person visits. Appendix B includes the
invitational email sent to potential participants. Other working relationship
strategies included screening participants’ eligibility, explaining the study’s
intent, and asking them to sign a consent form at the beginning of the
relationship. Hannabuss (1996) suggested that interviewers consider creating
a relationship with participants, ask open-ended questions, understand how
to keep interviewees focused, and limit bias during the interview (Qu &
Dumay, 2011). Allowing research subjects to participate at a convenient
location and time can promote a positive outlook regarding the study
(Lunnay et al. 2015). Interviews of participants took place at their restaurants
during a time when the business was not open or at a time when the
participant was not distracted, which encouraged willingness and full
disclosure.
The participants of this study were independent family-oriented, full-
service restaurant leaders who used marketing experiences to develop a
customer base to survive the first year of operation. Similar to Cronin-
Gilmore (2012), I used a small participant base to explore strategies
independent restaurant leaders use to develop a customer base during the
first year of operation. The chosen participant group for this study aligned
with the overall research focus of determining what marketing strategies
independent familyoriented, full-service restaurants use to develop a
customer base within the first year of operation.
Research Method and Design
Method
Qualitative research aims to dig deeper into participant’s experiences
by focusing on the how (Mancuso & Stuth, 2011). A qualitative method
allowed me to explore what marketing strategies independent restaurant
leaders used to develop a customer base. Asioli et al. (2011) used a
qualitative method to explore the perceptions and experiences of consumers,
and I employed the same method when exploring the perceptions and
experiences of restaurant leaders. Using a qualitative approach allowed me
to gather open-ended information and analyze participants’ answers. This
method provided valuable information in establishing best practices for
independent family-oriented, fullservice restaurant leaders.
Qualitative researchers gain in-depth knowledge by focusing on a
smaller number of participants with a deeper exploration of their
experiences, which quantitative research would miss (Thomas & Magilvy,
2011). A quantitative approach would not allow me to frame questions in an
open-ended manner and would not permit flexibility like the qualitative
approach (Ilkay, 2013). A quantitative approach would have limited the
indepth responses from participants, which were necessary to gain an
understanding of how and why independent family-oriented, full-service
restaurant leaders use marketing strategies to develop a customer base.
Bailey (2014) suggested a qualitative approach in marketing and
consumer research, including interviews to gain expert insight into the how
questions about consumer motivation, developing new services, testing
advertising, and exploring the meaning behind these concepts. Qualitative
researchers also aim to provide a deeper understanding of the meaning
behind participants’ responses that data from a quantitative study cannot
provide. Quantitative or mixed methods studies may indicate success
through collected data numbers, but they do not tell the how or why story
that qualitative research aims to provide (Price, 2013). I wanted to gain a
deeper understanding of participants’ experiences; a quantitative or mixed
methods approach would not have yielded the desired data. Naidu and Patel
(2013) suggested the most appropriate research method depends on the
research question and goals. I wanted to obtain a deep understanding of
marketing strategies independent restaurant leaders used to develop a
customer base, and the best research design was a qualitative multiple case
study.
Research Design
I used a multiple case study design to explore marketing strategies that
independent family-oriented, full-service restaurant leaders used to develop a
customer base during their first year of operation. A multiple case study
approach is preferred over a single case study when comparing subjects’
practices to gain an enhanced understanding of those practices (Wahyuni,
2012). A multiple case study design allowed me to gather in-depth responses
via open-ended interviews with independent familyoriented, full-service
restaurant leaders who used marketing strategies to develop a customer base.
Case studies are the most appropriate research design when the goal is
to explore a complex concept via an intensive real-world analysis (DeMassis
& Kotlar, 2014). El Haddad (2015) agreed that a case study design is most
appropriate when there is a lack of research on a problem within a specific
sector. I intended to explore the marketing strategies of independent family-
oriented, full-service restaurant leaders, which had not been addressed in
previous studies. A multiple case study approach also allows researchers to
use multiple subjects and data sources to analyze a phenomenon in its
natural setting (Wahyuni, 2012).
Similar to Cox (2012), I triangulated the interview data by reviewing
participants’ secondary data including marketing and business strategy
documentation, customer base information, and profitability records during
the first year of operation. Wahyni (2012) suggested the use of secondary
documentation for triangulation to answer the research questions. Case study
researchers use triangulation to enhance validity by using multiple data
collection methods with different strengths that support the weaknesses of
each other (Wynn & Williams, 2012). The exploration of secondary data
balanced any weaknesses found when conducting in-depth interviews.
Other qualitative designs, including phenomenological and narrative,
would not have been appropriate because they would not have included
analysis of secondary data. The phenomenological design includes in-depth
interviews so researchers can understand the lived experiences of
participants (Bowers & Green, 2013). A narrative or phenomenological
design would not have permitted a substantial contribution to the business
environment, given the lack of analysis of secondary data such as marketing
and business strategy documentation, customer base information, and
profitability records during the first year of operation.
O’Reilly and Parker (2012) suggested that selecting a sample size
assists researchers in achieving data saturation. I used a purposive sampling
method to ensure data saturation. To achieve data saturation, a researcher
must conduct interviews until new information ceases and participants are
providing recurring responses and data (Marshall, Cardon, Poddar, &
Fontenot, 2013). I followed the data saturation protocol by interviewing
multiple restaurant leaders until new information was not provided. I also
ensured data saturation by reviewing transcripts to establish recurring
themes. The use of triangulation ensures data saturation by exploring
different perspectives of the research topic (Fusch & Ness, 2015).
Population and Sampling
Öberseder et al. (2011) developed a sample population of
knowledgeable participants through purposive sampling to ensure an
appropriate and effective sample size. I used purposive sampling to select
the population for this study to gain insight from a specific subset of
independent family-oriented, full-service restaurant leaders in the Pittsburgh
metro area. Tkacyk and Kryzanowska (2014) used a purposive sampling
method to conduct their study on word of mouth marketing through
interviews of a specific population. The sample size included one leader
from three different independent family-oriented, full-service restaurants in
the Pittsburgh metro area. The study also included the experiences and
nonverbal behaviors of participants regarding the use marketing strategies.
Qualitative researchers ensure data saturation by choosing the most
appropriate sample size for the study (Marshall et al., 2013). The quality and
number of interviews, along with the researcher’s experience and sampling
method, can affect saturation. I used a purposive sampling selection method,
transcript review, and data triangulation to ensure data saturation in my
study. Marshall et al.’s (2013) suggestion of conducting interviews until new
data was no longer emerging supports my purposive sampling method for
establishing a population of three restaurant leaders to gain proper data
saturation from a suitable population. Similar to Marshall et al., I would
have interviewed additional restaurant leaders to achieve data saturation if
new data continued to develop after interviews with three restaurant leaders.
Screening participants ensures alignment between the study sample
and the overall research question (Asioli, 2011). Similar to Jeong and Jang
(2011), I screened participants to determine whether they met the criteria of
being independent familyoriented, full-service independent leaders who used
marketing strategies to develop a customer base during the first year of
operation. Lunnay et al. (2015) suggested allowing research subjects to
participate at a convenient location and time to promote a positive outlook
regarding the study. I conducted interviews at the restaurants when they
were not operating, or when the participant was not distracted to promote
willingness and full disclosure.
Ethical Research
It is the researchers’ responsibility to build a credible and valid
research method by gaining user consent and being clear about the
parameters of the study. Researchers’ must aim to create work that is ethical
and in a reliable setting while providing value to the field (Fry, 2014). I
ensured ethical research throughout the doctoral study process via several
methods, including completion of the National Institutes of Health’s
Protecting Human Research Participants training course. The training course
certificate of completion is located in Appendix C.
Appendix D includes the consent form given to each participant. The
form detailed that at any time, before or during the interview process,
participants could elect to withdraw from the study by contacting me via
phone or email. The consent form indicated to participants that participation
in the study was voluntary and participants would not receive any
compensation. I shared the study results with the participants and
community stakeholders via a 1-2 page summary.
Lunnay et al. (2015) concluded that researchers must ensure that
questions are ethical in nature, and participant solicitation is in-depth and
respectful of participants. Each participant was required to sign a consent
form that provided ethical protection of the study, researcher, and
participants. I will save data both electronically on a portable hard drive and
on hard copies in a fireproof safe for 5 years to protect the confidential
nature of the interviews.
I went through the Institutional Review Board (IRB) approval process
before the study began to ensure the adequate ethical protection of
participants (Walden IRB approval number 03-31-16-0433628). It is vital to
remain ethical during research, which can be accomplished by adhering to a
governing body, attaining informed consent, informing participants about the
role of the researcher, intention for the interview data, and ensuring the
privacy of the participants (Qu & Dumay, 2011). I ensured the adequate
ethical protection of participants by keeping all participants’ responses
confidential via assigned numbers to each interviewee to mitigate bias,
respect participants’ privacy, and protect their interests. Using only the
assigned interview numbers throughout the study removed any confidential
or personal information about the interviewee or organization, and provided
confidentiality and security for participants.
Data Collection Instruments
I served as the primary data collection instrument for this multiple
case study by conducting semistructured interviews with three successful
independent family-oriented, full-service restaurant leaders who used
marketing strategies to develop a customer base in the Pittsburgh, PA, metro
area. In-depth interviews, a popular qualitative method tactic, can gain
expert insight into the why and how questions about consumer motivation,
developing new services, testing advertising, and exploring the meaning
behind these concepts (Bailey, 2014). The semistructured interviews
contained 11 openended questions to determine how each restaurant leader
used marketing strategies to develop a customer base, how much experience
restaurant leaders had integrating marketing into business plans, and the
impact marketing use had on profitability during the first year of operation.
Interviews are an efficient way to gather rich data from participants
with different perspectives on the same concept (DeMassis & Kotlar, 2014).
I aimed to explore what marketing strategies each independent restaurant
leader used to develop a customer base and required a rich understanding of
business practices. Previous restaurant marketing research such as Perry
(2014) used semistructured interviews to gain in-depth responses from
participants about the usage of marketing tactics.
Öberseder et al. (2011) employed a qualitative in-depth interview
method to understand the perception consumers have of CSR and actual
purchasing behaviors versus agreeing with others that CSR could be an
influence. The qualitative method explored the meanings of consumers’
actions, perceptions, and values rather than predict future behaviors
(Öberseder et al., 2011). Similarly, I used semistructured interviews to
explore the meanings of independent family-oriented, full-service restaurant
leaders’ experiences and gain an in-depth understanding of the marketing
strategies used to develop a customer base during the first year of operation.
I built validity by conducting interviews with open-ended questions to
encourage participants to include in-depth responses and true feelings
regarding the research topic. Open-ended questions create validity and
identify gaps in the current understanding of the subject (Ilkay, 2013).
Transcript review and audio comparison of each interview transcript and my
notes ensured reliability of the study. A semistructured interview format
with an outline allows researchers to divide questions into themes under
examination (Asioli, 2011). An interview guide (Appendix A) with research
questions assisted in the flow and flexibility of the interviews.
Collecting secondary data allows the triangulation of data collected
from interviews and enhances the findings and credibility of a study
(Wahyuni, 2012). I collected secondary data from the restaurants including
marketing and business strategy documentation, customer base information,
and profitability records during the first year of operation. Documents
collected from restaurant leaders included formal reports, publications,
meeting minutes, social media usage, and other relevant marketing and
business materials. This type of secondary document collection can add
value to case studies as they provide historical data (El Haddad, 2015).
Conducting in-depth interviews and collecting secondary data created a
robust probe into the complex phenomena of what marketing strategies
independent family-oriented, full-service restaurants use to develop a
customer base during the first year of operation.
Data Collection Technique
Asioli et al. (2011) conducted one-hour interview sessions recorded
via video and audio, with the audio transcribed. I recorded my 30 minutes to
1 hour, face-to-face interviews via Livescribe and then transcribed and
analyzed the interviews. Livescribe is a voice-recorder and note taking
smartpen that allows a researcher to record interviews efficiently while
taking corresponding notes. The advantage of Livescribe is the audio and
written data transfers to your computer as one document for further analysis.
A recording device that does not function properly is a disadvantage to this
type of data collection technique. I took detailed notes in case the software
does not operate.
Interviews are a vital component of all research approaches and used
as a primary method in qualitative research (Qu & Dumay, 2011).
Researchers use focus groups in qualitative research, but focus groups are
not a recommended method when exploring topics that participants may be
hesitant to discuss publicly (Qu & Dumay, 2011). Conducting in-depth
interviews encourage participants to divulge real-world experiences and
provide intricate responses (Öberseder et al., 2011). Semistructured
interviews elicit in-depth responses from participants using their verbal and
nonverbal communication to the interviewer, which fosters a deeper
understanding of the research topics (Qu & Dumay, 2011).
Alvesson’s localist framework suggested that interviews are a tool
permitting researchers to explore the account of a situated perspective of a
phenomenon, and thus considered interviews as conversations that promote
the exchange of knowledge between two people rather than a simple
research tool (Qu & Dumay, 2011). A successful interview requires pre-
planning, listening ability, and extensive note taking while allowing the most
in-depth exposure to participants’ experiences (Qu & Dumay, 2011). I took
notes via Livescribe, which transcribed notes, along with the participant’s
interview answers. This method includes the ability to analyze the transcripts
through review of the audio recordings and notes.
I also collected secondary data from the restaurants including
marketing and business strategy documentation, customer base information,
and profitability records during the first year of operation. Collecting
secondary data allowed the triangulation of data collected from interviews
and enhanced the findings and credibility of a study (Wahyuni, 2012).
Documents collected from restaurant leaders included formal reports,
publications, meeting minutes, social media usage, and other relevant
marketing and business materials. This type of secondary document
collection can add value to case studies as they provide historical data (El
Haddad, 2015).
Potential disadvantages of secondary data collection would be missing
or incorrect documents and lack of participant willingness to provide
documentation. All potential participants knew which documentation I was
going to ask them for before the interview. In-depth interviews and
collection of secondary data created a robust probe into the complex
phenomena of exploring what marketing strategies restaurant leaders of
independent restaurants use to develop a customer base during the first year
of operation.
Data Organization Techniques
Livescribe recorded, transcribed, and digitally saved each of the
interviews. Bowers and Green (2013) audio recorded and then transcribed
each interview before applying Ajjawi and Higgs (2007) data analysis
approach which validated the credibility of the findings. The stages include
immersion of the data by text organization, understanding through NVivo 11
software coding of the transcriptions, abstracting the data into recurring
themes, synthesizing themes into broader concepts that can be generalized,
illustrating how the data related to prior literature, and integration of the data
themes into current practice (Bowers & Green, 2013). I integrated steps like
NVivo coding software and synthesizing themes to organize both the
interview transcripts and secondary data better.
Koll et al. (2010) conducted an exploratory study asking 61
participants to complete three tasks and then coding the information into
themes. Using this coding method can allow researchers to organize and
compare themes with the frequency of codes (Koll et al., 2010). I organized
collected data by establishing themes through the coding software to create
codes and understand emerging themes of the data.
Ritch (2014) examined transcripts utilizing double hermeneutics to
understand the participants’ application and meaning by developing themes
and grouping data into relationships with other broader themes. Organizing
the interview data into emerging themes will benefit further data analysis
(Rich, 2014). I numbered all electronic records, saved, and backed-up data
on an external hard drive to maintain an organized and secure environment
for 5 years.
Data Analysis
To establish themes within the data, I used transcript review to
analyze interview transcripts and methodological triangulation to analyze
secondary documentation. Methodological triangulation is a popular method
used in qualitative research to collect, store, transcribe, clean, and analyze
raw data (Wahyuni, 2012). Triangulation added to the validity and reliability
of the study by requiring multiple sources of data (Wahyni, 2012). Case
study researchers use triangulation to create validity by using multiple data
collection methods with different strengths that support the weaknesses of
each other (Wynn & Williams, 2012). Fusch and Ness (2015) agreed that
triangulation increases the depth of research and assists in exploring
different perspectives.
Asioli et al. (2011) classified interview data into corresponding
themes, concepts, and meanings before using content analysis. I used NVivo,
qualitative analysis software, to establish themes in the data. Öberseder et al.
(2011) analyzed data through code creation and establishing patterns of the
interview responses. Koll et al. (2010) conducted an exploratory study
asking 61 participants to complete three tasks and then coding the
information into themes, which allows researchers to explore themes with
the frequency of codes. Using this coding method can allow researchers to
compare themes with the frequency of codes (Koll et al., 2010).
Yip and Chan (2012) used a qualitative method to study how the hard
and soft components of marketing within the retail industry impacted young
consumers. The researchers coded the interview data and established
recurring themes from the interviews (Yip & Chan, 2012). Coding based on
Marshall and Rossman’s comparison analysis method can link data by
comparison and contrast (Yip & Chan, 2012).
I also performed content analysis on the secondary data collected from
restaurants until there was no new information and to organize emerged
themes found within the restaurants marketing and business strategy
documentation, customer base information, and profitability records.
Performing content analysis in qualitative research assists in interpreting the
meaning from textual data (Wahyuni, 2012). I applied coding to the themes
found during content analysis of the secondary data that aligned with themes
found in the interview transcripts. Coding themes assigns labels to each
recurring topic or theme during the analysis of data and assists in
establishing core categories found within the research (Wahyuni, 2012).
Reliability and Validity
To establish rigor within the qualitative field, researchers must create
trust. Credibility, transferability, dependability, and confirmability all
contribute to trust in a study (Houghton, Casey, Shaw, & Murphy, 2013).
Reliability
Dependability. Dependability of a study considers how repeatable a
study is, based on changes in settings (Wahyuni, 2012). Houghton et al.
(2013) suggested researchers increase dependability by maintaining records
about research decisions made during the entire study process. I was
transparent in describing how I chose participants for the study, the
interview methods, analysis software and coding theories, and how the study
maintained ethical and unbiased throughout the process. Researchers can
increase a study’s dependability by being clear in describing the steps taken
within the study and specifying the research methods (Thomas & Magilvy,
2011). I maintained participant confidentiality throughout the data collection
process via a signed consent form from each participant that included the
steps of the study.
Validity
Credibility. One method of ensuring credibility is careful selection of
the study’s population (Wahyuni, 2012). The purposive sampling method
added to the study’s credibility because the participants were in charge of
marketing efforts. Bowers and
Green (2013) audio recorded and transcribed each interview before applying
Ajjawi and Higgs (2007) data analysis approach to maintain validity and
credibility. Transcript review also increased this study’s credibility by giving
participants an opportunity to confirm data. I used Livescribe to record my
notes and indicated the time taken within the interview’s transcript to add to
the validity of the study. Similar to Houghton et al. (2013) I was persistent in
my observations to demonstrate credibility in research. The data reliability
increases through recording data and saving digitally for 5 years.
Transferability. Thomas and Magilvy (2011) deemed a study valid if
the findings applied to other situations, additional research studies, or fields.
Wahyuni (2012) agreed that with modifications to settings a study could
transfer to other industries. I included transferability of the study results in
the findings section and detailed how medium and large businesses,
nonprofit organizations, and various industries could apply the results.
Increased transferability will occur by providing detailed descriptions so a
reader can apply findings to other situations (Houghton et al., 2013).
Previous literature also contributed to the transferability of the study and led
to inclusions for future research.
Confirmability. A study’s confirmability takes place after
establishing dependability, credibility, and transferability and expands on the
holistic view of the phenomenon (Thomas & Magilvy, 2011). A well-
detailed record of the study process and findings can increase others
conformability of the study’s findings of participant data (Wayhuni, 2012).
Saving all procedures, data, and results on a portable hard drive and hard
copy in a fireproof safe for 5 years adds to confirmability. Thomas and
Magilvy (2011) suggest that others conducting qualitative studies attempt to
remove bias by focusing on participant’s experiences and their meanings
rather than inserting personal insights on a topic. I developed confirmability
in the study by asking open-ended questions and recording all interviews to
establish validity in the participants’ responses. Similar to Houghton et al.
(2013) the use of NVivo software to compare and match across interviews
and secondary data increased the confirmability of the study’s data.
Conducting in-depth interviews and collecting secondary documentation
from multiple restaurant leaders achieved data saturation in the study.
Transition and Summary
Section 2 expanded on the chosen qualitative research method and the
multiple case study design. I explored marketing strategies that independent
family-oriented, fullservice restaurant leaders use to develop a customer
base. Section 2 also detailed utilizing purposive sampling and reaching data
saturation with three semistructured interviews and document collection to
gain an in-depth understanding of establishing best practices for independent
family-oriented, full-service restaurant leaders. Section 2 explained and
supported every procedure used in this study by previous research. Section 3
will include the study’s presentation of findings, application to professional
practice, implications for social change, recommendations for future action
and further research, reflections, and a concluding statement to summarize
the study.
Section 3: Application to Professional Practice and Implications for
Change This section provides a comprehensive summary of my research
findings and recommendations. This section includes an introduction,
presentation of findings, application to professional practice, implications
for social change, recommendations for action and future research,
reflections, and conclusions of the study.
Introduction
The purpose of this qualitative multiple case study was to explore the
marketing strategies used by independent family-oriented full-service
restaurant leaders to develop a customer base to survive the first year. The
study included semistructured interviews with leaders from three
independent family-oriented full-service restaurants and a review of
secondary documentation including marketing and business strategies,
customer base data, and profitability records during the first year of
operation from each restaurant. The findings of this study revealed three
themes regarding marketing strategies used by independent, full-service,
family-oriented restaurant leaders to develop a customer base in the first year
of operation.
The first theme that emerged from data analysis was word of mouth
had an immediate influence on attracting customers. The second theme was
the influence consumer-driven marketing and social media had on
developing and maintaining a loyal customer base. The third theme was the
need for restaurant leaders to implement an integrated marketing mix to
develop a customer base and create overall business success.
Presentation of the Findings
The research question for this study was the following: What
marketing strategies do independent family-oriented, full-service restaurant
leaders use to develop a customer base to survive the first year? I used a
multiple case study approach to interview three leaders of independent full-
service, family-oriented restaurants. Analyzing secondary documentation
from each restaurant assisted in triangulating the data. Three themes that
emerged from the study included immediate influence of word of mouth,
power of consumer-driven marketing and social media, and need for an
integrated marketing mix.
Immediate Influence of Word of Mouth
When restaurants target customer preferences and develop promotions
or events that customers find satisfying, positive word of mouth increases
(Han & Ryu, 2012). All of the participants in my study stated that word of
mouth is the number one driver to attract customers during the first year of
business. There was a consensus that print advertising is something leaders
have to do, but product and what people say about it to others is what
matters. None of the participants had money to advertise and instead hoped
that customers would love what they were doing and use word of mouth to
promote the restaurant. This strategy was very successful for two of the
participants and somewhat successful for the third participant during that
first year.
Berger and Iyengar (2013) discovered that word of mouth heavily
influenced consumers’ purchasing behaviors and e-wom disseminated
reviews. All of the participants in my study indicated that word of mouth
played an integral role in the marketing efforts of independent full-service,
family-oriented restaurants. Electronic word of mouth is more effective with
intangible services like restaurants because customers tend to share
evaluations after visiting; however, little research has been conducted on the
significance of e-wom on the restaurant industry (Jeong & Jang, 2011).
Electronic word of mouth through Yelp, Facebook, and other social
media sites can influence customers, and one of my participants tried to
respond to e-wom as soon as possible to resolve any issues. E-wom
platforms can provide restaurants with an opportunity to follow the
conversations of customers, unlike traditional word of mouth (Parikh et al.,
2013). One of my participants stated that although it is true that the customer
is always right, there comes a point when one can no longer appease certain
people. This participant cited an incident in which customers used the power
of e-wom as a threat to post a negative review if they were not happy.
All participants agreed that word of mouth through social media has
an immediate influence on marketing, which aligns with the study’s
conceptual framework of the extended marketing mix. Booms and Bitner’s
(1981) marketing management theory emphasizes how three additional
factors (people, process, and physical evidence) can influence the marketing
process. The extended marketing mix theory relates to the study with the
inclusion of people as an essential component of the marketing mix. This
theory was evident in the finding that customer and employees influence the
marketing process of independent restaurants through employee-customer
interactions and customer word of mouth, e-wom on social media, and
online reviews. One of the participants tried to be onsite during business
hours and create a family atmosphere to build customer loyalty. This
participant tries to visit each table and ensure all customers are enjoying
their food and service to promote positive word of mouth and repeat
customers.
None of the participants had a formal marketing plan that they
followed, and none posted any profitability the first year of business. The
drive to live their dream drove all of the participants to continue after an
unsuccessful first year of business. All participants realized the need for
marketing but could not afford expensive print media during the first year
and relied on word of mouth to attract customers. There was also a lack of
time to dedicate to marketing during the first year of business. According to
independent restaurant leaders and the findings in this study, word of mouth
strategies have an immediate influence that enhances the development of a
customer base in their restaurants during their first year of operation.
Power of Consumer-driven Marketing and Social Media
Consumers are taking a more active approach in decision-making
driven mostly by consumer use of social media to research and share
information (Kwok & Yu, 2012). One of the participants agreed that
consumer-driven marketing is valuable to get the customer base involved
and get them to hash-tag and post; that is the most effective marketing
strategy today. Two of the participants stated that it seemed like location did
not matter and agreed that consumer-driven pull marketing made more sense
than push marketing. Although one participant was not familiar with the
term pull marketing, the participant felt like if you do something well,
location does not matter; it is more word of mouth, and social media allows
100 people to hear about a special in 5 minutes if one person likes it.
Ong (2012) agreed that restaurant customers now use social media
sites as part of their decision-making process, with 80% of consumers
primarily concerned with customer service ratings of online reviews.
Restaurant consumers are using social media tools, with 60% trying new
menu items based on online reviews (Jeong & Jang, 2011). One restaurant
leader stated that around nine months after opening, a food writer in the local
metro area published a very positive review, and that helped the business
take off. The weekend after the review the restaurant had their best day in
sales ever.
Independent restaurant owners identified customers as the top external
factor to success over location, economy, and competition (Mandabach et
al., 2011). A customer base is vital to the success of a restaurant within the
first year because repeat customers account for 63% of sales at family dining
restaurants (National Restaurant Association, 2012). Two of the participants
aligned with focusing more on a consumer-driven pull marketing strategy,
and one participant felt a consumer-driven method could have been valuable
during the first year of operation. None of the participants scheduled time for
marketing, and all relied on others to implement social media strategies.
Ma et al. (2014) found that loyal customers were integral to the
success of restaurants and cited a need to understand their customers to build
loyalty. Customers who express loyalty to a restaurant are one of the
strategic competitive advantages leading to referrals, higher market share,
and overall survival (Ma et al., 2014). Two of the participants agreed 100%
with pull marketing and said it has worked for them. One participant thought
that customers knew the restaurant’s reputation in the industry, and it was
not something that needed to be pushed on customers. All of the participants
indicated that loyal customers provide valuable feedback to the owners and
spread the word about the restaurant to their friends.
Small business leaders must understand the value of marketing.
Independent restaurants can benefit from focusing on customer relationships
and understanding competitor knowledge to increase business success
(Brown, Spillman, Min-Young, & Lu, 2014). All participants seemed to
understand the importance of customer relationships for the overall success
of their restaurants and the need to create marketing strategies to engage
customers. Bae and Kim (2014) recommended that restaurant managers
focus on customer waiting time as a marketing opportunity with tools like
tablets, electronic devices, interactive menus, and detailed printed menus to
improve customer satisfaction and function as a recommendation tool.
Moriuchi and Takahaski (2016) applied the extended marketing mix
framework to incorporate consumers’ shopping experiences when
developing a more consumercentered business model. The extended
marketing mix theory applies to this study as well in understanding how
people influence marketing in independent restaurants. All of my
participants agreed that consumer-driven marketing through word of mouth
influences other customers and overall restaurant success. Two of the
participants felt that marketing should be continued even during profitable
times to keep the name in customers’ minds for when times change, and
social media could help with that effort. Service marketing managers should
understand how consumer experiences integrated into the marketing mix can
lead to customer satisfaction, loyalty, and positive brand image (Moriuchi &
Takahaski, 2016).
Several recommendations based on my study results included the
crucial focus restaurant leaders must have on people when creating a
marketing mix. The people or personnel of the restaurant have a 62%
influence on customers (Madiba, 2009). All of my participants relied on
employees to provide excellent customer service, listen to customer
feedback, and implement changes to meet customer needs. This finding
aligns with the conceptual framework that service-oriented businesses must
consider people, both customers and employees, when developing marketing
plans. Applying the extended marketing mix covers the service side that
other theories do not (Madiba, 2009).
Small businesses lack the resources or time to establish a traditional
marketing plan. Social media can assist small business owners in gaining
business leads, increasing awareness, and building traffic at a significantly
lower cost than traditional marketing (Schaupp & Belanger, 2014). All of
my participants agreed that social media use could be one of the most
successful strategies to reach customers during the first year. Even though
social media was not the main marketing method used by all participants,
they agreed that social media use could be the most important aspect when
attracting customers during the first year. Somera (2014) found that 54.8%
of restaurants did not have any posts on their Facebook pages, and for those
that did have posts, 64.2% did not respond to user posts on their pages. Two
of my participants stated they do not usually solicit customer posts about the
restaurant on social media but could recall at least one event that did increase
word of mouth and consumer engagement through social media.
Restaurant leaders who want to attract new customers and build
customer relationships use their Facebook pages to engage customers and
respond very quickly to customer posts on their pages (Somera, 2014).
Restaurants with active Facebook pages are using visual elements and daily
promotions to engage with customers. All of my participants were active in
social media through Facebook. Perry (2014) found that 98% of independent
restaurants maintain a social media presence by having a Facebook page. All
of my participants agreed on the value of social media. One of my
participants stated that word of mouth and social media allows 100 people to
hear about a special in 5 minutes if one person likes it.
Lee (2015) studied the impact of social media on a restaurant’s value
within the restaurant industry and found a positive linear relationship
between a restaurant’s social media activity and firm value. Increased
positive customer engagement via social media can influence a restaurant’s
value within financial markets (Kim et al., 2015). Independent restaurants
could build their social media presence to engage customers, promote
positive word of mouth, and develop a customer base. All of my participants
want to increase their social media presence and have employees grow their
Facebook page by posting events and specials and offering free appetizers
and desserts to those who post on Facebook.
Flash sale sites. Flash sales, also known as the deal of the day or daily
deal, offer consumers a service at a discount for a limited time. Often the
sale is while supplies last or for one day or less. The most popular flash sale
site is Groupon, which offers various products and service to consumers and
had revenue of $2.23 billion in 2012 (Shi & Chen, 2013). All participants
had used a flash sale site during the first year and had success, but had mixed
feelings on the effectiveness now. One participant was the highest seller on
Living Social that year and also had 96% positive feedback when using
Groupon, and another participant sold the most Groupons for the entire
metro market during that time, close to 3,000 in 3 days.
Two participants stated that those types of flash sale sites only
increase brand loyalty to the flash sale sites and not to the restaurants,
especially in a smaller city. Shi and Chen (2013) also found that consumers
in smaller cities are more likely to purchase from local flash site deals.
Conversely, another participant stated that flash sale sites continue to be
beneficial, and was the only participant who negotiated between Groupon
and Living Social to find the most beneficial deal.
Social media challenges. All of the participants noted that they would
like to drive their social media efforts with increased activity and encourage
patrons to post on social media. However, the available time of the
restaurant leaders limits their social media activity. DiPietro et al. (2012)
found that restaurants could use social networking to reduce costs and
provide a competitive advantage. Restaurant managers reported that social
networking was beneficial as a low-cost advertising and marketing strategy
(DiPietro et al., 2012). One of the participants agreed that social media is
beneficial in reaching more customers and spreading word of mouth but has
not been successful in establishing a social media plan in 5 years. The main
reasons were lack of time and knowledge to implement a social media plan
on a regular basis.
Yelp, the most widely used customer review website, accounts for
over 70 million reviews on restaurants and other service related businesses
(Luca & Zervas, 2015). There are concerns over review credibility on sites
like Yelp, and Luca and Zervas (2015) found that according to Yelp’s
algorithm, almost one out of five reviews is fake, is more extreme, and
written by newer Yelp users. All of the participants strongly disliked Yelp
stating the reviews were highly skewed, falsely posted by competitors or
disgruntled exemployees, and were a major misrepresentation of the
restaurant and customer service. One of the participants stated that as a small
restaurant, one bad review can hurt business, and people tend to be very
negative and vindictive when posting on Yelp. While it is important for
small independent restaurant owners to address customer concerns, getting
into a Yelp battle with a disgruntled customer is not a good use of time or
resources. Instead, focusing on promoting positive word of mouth and
providing good customer service while customers are at the restaurant are
strategies that are more successful.
Need for Integrated Marketing Mix
All of the participants were the restaurant owners and handled the
majority of the marketing decisions for the restaurants, while none had
marketing expertise in their background. All three independent restaurant
leaders indicated a lack of time, resources, and marketing knowledge to
develop a formal marketing plan and could benefit from establishing best
marketing practices. Two of the participants stated that they do not have a
formal social media plan, but have family members that usually handle
social media tools like Facebook, Twitter, and their website.
Danaher and Dagger (2013) found that despite the effectiveness of email
marketing more traditional media such as direct mail, television, and radio
were the most useful types of media. All of the participants used coupons or
promotions during the first year of business. One of the participants said that
coupons were great during the first year to build a lunch crowd. Another
participant stated that one particular print coupon does unbelievable in this
demographic, and that after stopping the placement of the coupon
advertisement for two months, the restaurant had a 5% decline in sales.
All participants realized the importance of print media and coupons to
develop a customer base, but were very selective about which print media
outlets they would advertise in and evaluated the coupon results to make
future marketing decisions. Katona and Savary (2014) found traditional and
emerging media differed mainly due to social media’s ability to lower cost,
develop higher quantity and quality of messages, provide a real-time
response, and reach a larger target base. All of the restaurant leaders only
used one or two local print media sources to increase positive brand image
and to keep their restaurant on top of customers’ minds. All participants
indicated that evaluation of print media was difficult in the beginning but are
able to track coupons and develop a more comprehensive customer database
with the implementation of new point of sale (POS) systems.
Utilizing multiple marketing methods like social media, word of
mouth, causerelated marketing, and limited print media is the most
successful strategy for small independent restaurant leaders. Companies
must consider moving towards integrated marketing communications plans
that interact with consumers allowing them to be active in building
marketing messages (Bacile et al., 2014). All participants desired to increase
social media usage, develop a more robust customer database, and evaluate
print media efforts to remain successful after the first year.
One participant has used free appetizer cards since opening to spread
word of mouth of the restaurant, and continues to use the cards today at
events to solicit new customers. All of the participants stated that various
marketing methods could be beneficial in building a customer database. The
participants all admitted that time constraints, lack of knowledge, and small
budgets influenced the use of formal marketing strategies in the first year of
business. All three small independent restaurant leaders agreed that
developing an integrated marketing plan is a beneficial idea that could help
in reaching customers, building loyalty, and surviving the first year of
business.
Applications to Professional Practice
The findings of this study indicate that word of mouth is the number
one driver for independent restaurants, and leaders must incorporate social
media and limited print advertisements into marketing strategies to develop a
customer base during the first year. The innovations of social media and the
Internet have modified how consumers and companies communicate about
brands and products (Campbell et al., 2014). Leaders of independent, full-
service, family-oriented restaurants could apply the study findings to create
effective marketing plans, as well as develop and maintain a customer base.
All participants indicated that social media and word of mouth, with limited
print media, are the most successful marketing methods to develop a
customer base.
This study could assist independent restaurant leaders in
understanding the concept of utilizing word of mouth and social media
marketing strategies to create best practices for developing a customer base,
increase profitability, and survive past the first year of operation.
Independent restaurant owners have identified customers as the top external
factor to success over location choice, the economy, and the competition
(Mandabach et al., 2011). Independent restaurants rely on local customers to
increase profitability and survive past the first year. These restaurants must
continue to implement integrated marketing strategies through social media
to reach customers and develop a customer base during the first year of
operation.
Independent restaurant owners can engage customers and promote
positive word of mouth through social media tools but must spend the time
to create a social media element to their marketing strategy. Companies must
consider moving towards integrated marketing communications plans that
interact with consumers allowing them to be active in building marketing
messages (Bacile et al., 2014). It is important to overall business success to
integrate select print media options into an independent restaurant’s
marketing plans, ensuring that print media evaluation methods are in place to
determine the best use of advertising funds.
Word of mouth and social media are vital for independent restaurants
when developing a customer base and surviving past the first year of
business. Companies must integrate pull marketing methods like opting in
for newsletters and blogs and providing useful content on social media sites
to engage customers (Winterberg, 2013). The advent of consumer-driven
marketing requires independent restaurant leaders to move beyond
traditional push marketing strategies and respond to customer requests via
online reviews, social media posts, and other online forums.
The goal of this study is to offer independent family-oriented, full-
service restaurant leaders marketing strategies to develop a customer base.
Establishing best practices may ensure that independent restaurants can
attract customers and maintain market share within their local area. Owning
a small business can be a challenge with almost 50% of all small businesses
failing within 5 years (Small Business Administration, 2014). This study
could assist independent restaurant leaders in developing their customer base
during the first year of operation through use of marketing strategies,
including social media and limited printed media.
Implications for Social Change
This study may promote positive social change by presenting
marketing strategies that can increase a restaurant’s ability to implement
cause-related marketing campaigns. Cause-related marketing benefits both
the for-profit business implementing the campaign and the featured nonprofit
organization (Furlow, 2011). Consumers are more likely to stay loyal to
brands that support cause-related marketing (Furlow, 2011). All participants
were involved in cause-related marketing through local community projects
and charitable giving of gift cards, gift baskets, scholarships, and
sponsorships of local events and charitable organizations.
A restaurant can increase brand loyalty with customers while
implementing positive social change through cause-related marketing.
Independent restaurants can create social change by implementing cause-
related marketing strategies within their local markets. When restaurants
participate in cause-related marketing, it helps to build a positive brand
image and increase engagement with customers (Hanks et al. 2015). All of
the participants stated that participation in these charitable efforts were not to
attract customers but to remain a good corporate citizen.
Another way this study may contribute to social change is by creating
social responsibility through understanding consumer needs via marketing
strategies. Consumers are reaching out to companies on social media and
demanding that they are meeting social responsibility to society (Kotler,
2011). A business can create campaigns through marketing to promote their
efforts to remain sustainable and elicit requests from customers. Given the
results of this study, I hope to contribute to social change by providing
independent family-oriented, full-service restaurants information to develop
marketing strategies that will assist in developing a customer base, creating
profitability, and overall business success. The success of independent
restaurants can contribute to social change through promoting the
development of other local small businesses and the overall viability of their
local communities. Small business success can stimulate economic growth
and promote sustainability beyond their local community.
Recommendations for Action
I have three recommendations for action based on the findings that
emerged from this study. To improve the overall profitability and market
share of independent, familyoriented, full-service restaurants, the restaurant
leaders would be responsible for implementing marketing strategies to
enhance the development of a loyal customer base. I recommend that
restaurant leaders: (a) create an integrated marketing strategy that focuses on
social media, word of mouth, and limited print media to develop a customer
base; (b) incorporate evaluation methods of marketing strategies into
existing POS systems; and (c) increase employee participation and
knowledge of social media and word of mouth through staff meetings and
sharing customer posts, reviews, and feedback.
If independent restaurant leaders create an integrated marketing
strategy using pull marketing tactics and promote word of mouth via social
media, they could develop a loyal customer base during the first year of
operation. Encouraging positive word of mouth and promoting customer
engagement through social media may allow independent restaurant leaders
to implement cost effective marketing strategies that can increase customer
engagement, build brand loyalty, and support overall business success
during the first year of operation and beyond.
Evaluating and incorporating limited print media options into a
marketing plan may assist independent restaurant leaders in effectively
utilizing a small budget with selecting only the print options that have a
proven return for the restaurant. Independent restaurants do not have a large
marketing budget and understanding the most effective print media
strategies can promote overall profitability and business success during the
first year of operation.
To implement new marketing strategies that will help develop a
customer base, independent restaurant leaders must share knowledge with
employees through regular meetings. Employees must be encouraged to
engage with customers through positive word of mouth and the use of social
media tools to promote the restaurant. One method of sharing knowledge
with employees is developing a written marketing strategy as a guide for
employees. Independent restaurants have family members helping with
marketing activities and use employees to carry out marketing initiatives.
Educating employees by sharing marketing strategies, customer reviews, and
social media usage can assist in the overall success of pull marketing and
lead to profitability and overall business success.
Recommendations for Further Research
I conducted this study to explore the marketing strategies used by
some independent family-oriented full-service restaurants to develop a
customer base to survive their first year of operation. Limitations of the
study included the experience level of participants, industry, and location.
Future studies could explore participants’ expertise level of specific
marketing tools to improve the marketing practice of restaurants.
Additional research recommendations include an expanded study
population to include a cross-section of types and sizes of restaurants such as
different cuisines, chain restaurants, and different target markets. Additional
research opportunities exist regarding the influence of marketing innovation
on how restaurants develop a customer base. I used a qualitative multiple
case study to explore marketing strategies used by independent restaurant
owners. Future research opportunities include using a quantitative method to
survey restaurant owners about specific marketing methods to expand on the
findings of this study.
The findings of this study may apply to small business sectors outside
of the restaurant industry and future studies could focus on the use of
marketing strategies in other service sectors and small businesses.
Understanding the value cause-related marketing has on small business
profitability could be an additional research topic. Cause-related marketing
could increase the social impact of future studies and assist small businesses,
including restaurants, to give back to their local communities and build
customer loyalty.
Reflections
I began this journey with high expectations of myself to conduct a
beneficial study for businesses that need to use marketing strategies to
survive and stay competitive. My experience throughout the doctoral study
process has been humbling and I have a better understanding of the in-depth
requirement of understanding previous research to develop a successful
study. There are many perspectives to consider when conducting research
and it is vital to have an in-depth understanding of your support matter and
stay confident in your ability to defend your research. I encountered different
perspectives along the way and learned how to build upon my skills and
knowledge to be comfortable defending my research and decisions I made
along the way.
I also have a better appreciation for the need for peer-reviewed
research regarding marketing and small businesses, especially independent
restaurants. I was surprised by the lack of peer-reviewed research regarding
independent restaurants and in particular their use of marketing strategies.
When I started my doctoral study proposal, I thought that I would be able to
find previous studies on this topic and create a strong problem statement to
support the need for additional research. After exhausting all potential
research alternatives, I found that not only was there a lack of peer-reviewed
literature and previous studies on independent restaurants and their use of
marketing strategies; there was also a gap in the literature regarding all small
businesses use of marketing strategies. The lack of relevant previous
research was not something I expected and changed my view on the need for
additional research regarding various facets of marketing in the small
business sector.
Summary and Study Conclusions
This qualitative, multiple case study included an exploration of what
marketing strategies independent family-oriented full-service restaurants
used to develop a customer base and survive their first year of operation. The
study’s findings indicated that independent restaurant leaders believe
creating an integrated marketing mix, including social media, word of
mouth, and limited print media, is the most successful marketing strategy to
develop a customer base. Independent restaurant leaders understand the
power consumer-driven marketing, and the immediate influence word of
mouth can have on developing a customer base. To survive the first year of
operation and maintain profitability, independent restaurant leaders must
create an integrated marketing strategy that focuses on word of mouth and
consumer-driven marketing methods.
