CERTIFICATION

The project report entitled The impact of quality of food and price on the Students
satisfaction and repurchase intention via caf environment. An Empirical Study on the
cafeterias of different universities in Lahore, Pakistan at UCP school of business MBA program
program conducted by Zahid Bilal Reg No. L1S14MBAM0013, M. Arslan Reg No
L1S12MBAE0010 and Ayesha Riaz Reg no L1S12MBAM0062 Semester 2 nd has been
completed under my guidance and I am satisfied with the quality of students research work.

------------------------Dr. Azhar Manzoor

Dated:

Table of contents
Abstract -------------------------------------------------------------------------Introduction --------------------------------------------------------------------Purpose of study --------------------------------------------------------------Research Questionnaire -----------------------------------------------------Key words --------------------------------------------------------------------Literature Review -----------------------------------------------------------Research methodology -----------------------------------------------------Data collection process -----------------------------------------------------Data analysis -----------------------------------------------------------------Results ------------------------------------------------------------------------Limitations -------------------------------------------------------------------Future Recommendations --------------------------------------------------References -------------------------------------------------------------------Appendix -----------------------------------------------------------------------

Abstract:
University students' food service needs is an important area that needs more research.
While the importance of offering quality education is paramount, for many colleges that
are embattled in their quest to retain students, attention to food services can be
important. Administrators must therefore, consider the total offering which includes food
services. This study examines university students' satisfaction with their food service
establishments. A model is develop from available information and tested using data from
a survey conducted at three different universities in Lahore. The results suggest that the
three most important variables that explain student satisfaction include caf environment,
food quality, and price. Other significant variables include atmosphere, and cleanliness.
Attention to these variables could enable those in charge of food services to deliver
greater value and satisfaction to enhance students' overall educational experience.
Introduction:
Along with the large-scale enrollment in the universities, the contradiction of more
students, insufficient dining condition appears. In this case, the ministry of education
initiated a logistics socialization reform to ease the contradiction. However, with the
deepening of the reform of university dining room, the disadvantages of socialization
management also became more distinctive (Liang and Wu, 2012). For example, in the
course of reform and development, the problems of the staff's technology, dining
environment, different consumption idea emerge, which make the university cafeteria food
healthy and safety more and more risky (Li and Hu, 2010).
Currently the university students account for 60% of food sold in cafeterias.
Cafeteria students lunches should provide 33% of the students energy intake, however,
according to some research it found that it tends only to provide 19% because of the
sale of competitive foods. Research states that girls ages 18 to 23 eat low amounts of
fruits and vegetables and more than two-thirds of females in this age group exceed the
daily intake amounts of fat and saturated fats (Brodie et al., 2009; Erdem et al., 2006).
From 56% to 85% of teenagers consume soda daily and that percentage seems to be
higher for boys (Ambler and Styles, 1996). By 2006-2007, most of the universities

receiving monies for students who are on free and reduced meals must have a local
wellness plan in place. Its purpose is to promote and implement a feasible plan for
students to be empowered to make appropriate choices for living a healthy lifestyle. In
order to do this, universities must work with all of their stakeholders, including students,
teachers, administrators, food services personnel, and community representatives.
At present, there are more inquires about on the food quality and wellbeing, for
example, the potential hazard in the lounge area (Guan, 2007), to scan for the
components to influence the cafeteria sustenance quality and security (Hua et al., 2011),
the foundation of the bistros' students wellbeing framework (Wang et al., 2008). There
are additionally numerous routes for the examination on the food safety evaluation, for
example, developing nourishment wellbeing far reaching assessment marker framework
with Analytic Hierarchy Process (AHP) (Liu, 2007). The satisfied customers are usually
less price sensitive, less influenced by the competitors attack and loyal to the firm as
compare to the dis satisfied customers (Dimitriades, 2006). Although previous research has
examined the relationship between consumer satisfaction and consumer loyalty, there has been
only limited exploration into the impact of consumer satisfaction on the affiliation quality and
satisfaction. Cronin and Taylor (1992), in their studies, originate that the customers favor the
same brand in their judgments to repurchase it when they are satisfied to that brand or service.
The fulfillment level of the consumers is effective in forming brand loyalty by leading their
decision about repeat purchase. Similarly, Oliver (2003) found that there is a positive link
between the customer gratification and the customer loyalty intention.
Purpose of study:
The study was conducted from the students of three different universities of Lahore
including university of central Punjab, university of management and technology and
university of Lahore as well. This study helps us to find whether the factors food
quality and food price, Use of Information and Analysis have any relation to the
satisfaction of the students and repurchase intention with the mediating role of caf
environment.
The research was conducted for following purpose:

Find the impact of food quality on the students satisfaction and repurchase intention
via caf environment in the universities of Lahore Pakistan.
Explore the relationship between food quality and students satisfaction.
Describe the relationship concerning food price and students satisfaction.
Show the relationship in quality of food and repurchase intention.
Examine the relationship between food prices and repurchase intention.
Describe the relationship between food quality and caf environment.
Explain the relationship between food prices and caf environment.
Research Questionnaire:
Research question empirically investigates that whether the entire elements food quality
and food price are reliable for measure and predict the satisfaction and the repurchase
intention via cafeterias environment. Moreover, it sheds light that which variable is the
best predictor of satisfaction and repurchase intention of the customers.
Responses to these questions will assist the management researchers to develop a
deeper understanding that how each variable plays a vital role in driving the customers.
1.4 Key words:
1.
2.
3.
4.
5.

Food quality
Food price
Cafeterias environment
Students satisfaction
Repurchase intention

Research Questions:
1. What factors explain satisfaction with food services in university cafeterias ?
2. What factors influence students to repurchase food from university cafeterias ?

Literature Review:
Food quality:
The quality and commitment are the first elements of cafeterias that lead to the loyalty
and repurchase intentions. The quality of food strengthens the relationship between buyers
and suppliers (Morgan and Hunt 1994). On clothing brands, the consumer can effect
from brands feature like brand quality, brand trust, brand worth and assimilate with the
brand (Gelliland and Bello 2002). Bowen and Chen, (2001) examined the impact of
customer satisfaction on quality and environment of food in their articles. The findings
of those articles proved that:
1. There is a positive relationship between customer satisfaction and food quality.
Harrison-Walker (2002) researched on commitment and repurchase strategies. He found
that the overall quality and environment of the caf disrupted consumer actions while
consumers who have affective commitment perform as a locus for a brand or
organization and desire to support organization when they have a solid affective
attachment to the firms and firms brand.
Prices of food:
A special segment of food service users involves university students who lead
sufficiently unique lifestyles to warrant looking into their food service preferences
separately. For example, one study indicates that they eat their evening meal between
8:00 PM and 2:00 AM (Hume et al. 2002). Another study (Friedland 2005) indicates
that many students, given their lifestyles, are on the lookout for dependable on-the-go
food that offers value and satisfaction. This is why many of them are brand loyal:
while they may dabble in exotic cuisine occasionally, food chains such as Subway,
Burger King, or Dunkin Donuts still remain standard fare for university students
(Blank 2006), perhaps because of familiarity and because they fit right into students
lifestyles. Yet another study at 19 university (Anonymous 2002) reports an increase in
overall student approval ratings engendered by improvements in menu variety and
food quality. Such improvements may have been brought about by a more
aware cohort of todays students for many of whom a foremost concern is what

they will eat and whether they will experience the dreaded double-digit weigt gain
known as freshman 15 (Singer 2006). Some studies also suggest that young adults
are leading more sedentary lives today and are not meeting physical activity
requirements (Behrens and Dinger (2006). university students needs are particularly
important today because the universities are often embattled in their quest to retain
students who have many choices at their disposal.
Customer satisfaction:
Engel et al., (1990) defined that customer satisfaction is result of personal estimation in
which the alternative brand meet or exceeds the expectations. Literature showed that the
customer satisfaction grounded on the disconfirmation paradigm (Oliver, 1980). The idea
that is used to define the satisfaction is also shows the contrast between expectation and
performance. It can be also stated that a consumer is expected to develop the assessment
of food. In order to do so, the motivation and capacity is necessary to assess the brand
related to the reference point.
Petty et al. (1983) developed likelihood model that shows the elaboration is determine
by the motivation and capacity. Occasionally, it is very difficult for consumers to make
the outlook, performance and to relate two independent elements. For example, it is
unable for a consumer to compute the expectations and performance regarding a product
if he has not enough information about risky brand and about its alternatives. In other
case when the consumer capable and motivated he will be safe from risky situations
(Assael, 1987). It might be very hard to elaborate upon the evaluation of a cafeteria.
Comparison between expectations and performance shows that the customer must be
aware of the outcomes for his/her satisfaction. It is known as manifest satisfaction. When
the outcomes of estimation are well developed, this leads to manifest satisfaction. To
evaluate the brand choice in the presence of motivation and ability, no explicit
comparison is made and this leads to lower level of consumer satisfaction. It is known
as the latent satisfaction (Bloemer and Poiesz, 1989). When an implicit evaluation is not
elaborated, result as latent satisfaction.

1.4 Repurchase Intention:

In Fishbein and Ajzens (1975) construction, behavior is influenced by the attitudes by the
behavioral intentions. Previous literature shows that the relationship between attitude toward the
object and behavior is not always perfect. The individual prefers his or her habits on his or her
intention when they give their opinion about an objective (Warsaw & Davis, 1985). In spite of
issues, in consumer behavior the idea of purchase intention is very important (Kotler &
Armstrong, 2003). Because the study of repurchase intention has a long term effect so it is very
important (Ritti & Silver, 1986). Repurchase intention is similar with purchase intention except
with the element of experience.
At times, intention is also difficult to measure. For instance, Bagozzi, Baumgartner and Yi
(1989) commented that when an individual is unclear about his or her intention in regards to
some action, there is strong tendency for him to react based on their past actions. In some cases,
attitudes have a direct effect on behaviours (Bagozzi & Warshaw 1992) but no effect in Bagozzi
(1992). An intention to buy a brand is based on a consumers attitude towards buying the brand
as well as the influence of social norms about what other people expect. Intentions are different
from attitudes where attitudes are summary evaluations while intentions represent the persons
motivation in the sense of his or her conscious plan to exert effort to carry out a behavior (Eagly
& Chaiken 1993). Therefore, repurchase intention is defined as the likelihood the user will
purchase again of the smartphone in the future. Bolton, Kannan, and Bramlett, (2000) also
mentioned that customers will buy a service again depending on their awareness of value from
their earlier service encounters and expectations of the relationship with a business in the future.
Rising clients repurchase intention can increase firm continuous revenue and increase operating
efficiency over time (McDougall and Levesque, 2000). Ranaweera, Chatura and Prabhu (2003)
supported that repurchase intention is a tendency of customers to be with the same company in
the near future. Repurchase intention involves an individuals judgment about subscribing
service providers again from the same current firm and an evaluation of current service situation
(Hellier et al., 2003).

Repurchase intention is the individuals judgment about repeat purchasing again in the same
firm (Hellier et al., 2003). The reason that makes customers decide to choose the same service
provider and repurchase the same service is on the basis of their past experiences (Wathne et al.,
2001). Chandon et al. (2004) mentioned that repurchase intention is the product or service that is
accessible in memory than it is for a first time purchase.

The above literature leads us to formulate the following hypothesis.

H1: the quality of food has a positive relationship with repurchase intention.
H2: The food quality has a positive relationship with the satisfaction
H3: The price of food has a positive effect on future purchase.
H4: The price has a positive effect on brand satisfaction.
H5: Price of food has a positive effect on brand attachment.
H6: Cafeteria environment plays a mediating role in brand satisfaction and commitment.

Research Methodology:
This chapter describes the methodology that we have used in this research
Research model:
This study includes five variables such as food quality, prices of food, cafeteria environment,
students satisfaction and repurchases intention as well.

Customer
satisfaction

Food Quality

Caf
environment

Prices of food

Repurchase
Intention

Dependent Variable:
There are also two dependent variables are used in this study. The first one is the customer
satisfaction and the second one is the repurchase intention.
Independent Variable:
There are two independent variables in this study whose impact is checked on the Dependent
variables through the mediating variable. In this study food quality and prices of food are the
independent variables.
Mediating Variable:
Caf environment is used as mediating variables that shows the relationship between the
dependent variables and independent variables.
Survey Instrument:
The research instrument for data collection was questionnaire. We develop the questionnaire,
which includes different questions representing the dependent, mediating and independent
variables. The purpose was to examine the relationship between these variables. We developed
this instrument with the help of different studies like; the measurement scale for food quality was
adopted from the study of Bruner and Hensel (1992).
The instrument contained five items. Moreover, the measurement scale for prices of food was
adopted from two different studies of Suranga Silva, Seyed Rajab Nikhashemi, Ahsanul Haque,
Farzana, Yasmin Ali Khatibi (July-Aug. 2012) and Ruchan Kayaman, Huseyin Arasli (2007)
containing five items as well. Measurement scale for Caf environment was also adopted from
two different studies of Shu-pei Tsai (30 December 2010) and Didier Louis, Cindy Lombart,
(2010) and having four items. Similarly, for Students satisfaction five items were selected and
the measurement scale was adopted from the study of Shu-pei Tsai (30 December 2010). Finally,
the measurement scale for repurchase intention was adopted from the study of Won-Moo Hur,
Kwang-Ho Ahn, Minsung Kim (2011). Repurchase intention contained four items.
The five-point likert scale was used, starting from: 1-strongly disagree, 2-disagree, 3-neutral,
4-agree, 5-strongly agree, to measure the items. All the questions are shown to be reliable and
valid in the previous research.

Data Collection process:

The main variables of the study are; food quality prices of food, caf environment, customer
satisfaction and repurchases intention. To measure these variables, standard questions are used
which are adopted from previous studies. Moreover, since students of universities are the major
consumer of food in universities cafeterias of Pakistan, therefore, data for current study were
collected from the students of three universities of Lahore including University of central Punjab,
university of management and technology and university of Lahore. Out of the 260 students
inquired, 230 responded. 30 questionnaires were rejected due to incomplete responses.
Therefore, 250 valid responses were obtained, making a response rate of 88 percent. The portion
of male respondents was 59.4% and the portion of female respondents was 41.6%.
Statistical software SPSS version 20 has been used for validity and reliability analysis. For
validity analysis, principle component analysis with varimax rotation was performed for all the
five measurement scales.
Factor loadings and Chronbachs alpha of elements of food quality, students satisfaction and
repurchase intention have been produced individually. Factors with low factor loading were
dropped out from the analysis. By analyzing the results with the help of SPSS, study found that
food quality (1 item has been excluded out of 5 due to low loading) has chronbachs
alpha=0.808, variance explained 57.450% and Kaiser-Meyer-Olkin (KMO) 0.720. However,
Prices of food have chronbachs alpha=0.577, variance explained 61.050% and KMO 0.791. caf
environment showed significant factor loadings and possess chronbachs alpha=0.729, variance
explained 54.602% and Kaiser-KMO.838. Similarly in students satisfaction all items had
significant factor loadings, having chronbachs alpha of =0.701, variance explained 41.315% and
KMO 0.800. While in repurchase intention has chronbachs alpha of =0.771, variance explained
69.697% and KMO 0.581.

Result and Finding:

Factor analysis:
The items in the questionnaire that did not have good discrimination are eliminated by using
factor analysis. The factor analysis was conducted on the following multi items variables: food
quality, prices of food, caf environment, customer satisfaction and repurchase intention. It is
used to find out the inter correlation between items of the variables.
By analyzing the result with the help of SPSS we found that in food quality (1 item has been
excluded out of 5 due to low loading) explained a total variance of 38.083%. In prices of food
(no item has been excluded and it consist of total 5 items) explained a total variance of 42.146%.
In caf environment all items has been included and it consist of total 5 items, it explained a total
of variance of 46.300%. In strategic planning all items has been included, explained a total of
variance of 54.602%. In students satisfaction all items has been included, explained a total
variance of 41.315%. In repurchase intention all items has been included, explained a total
variance of 69.697%.
Reliability analysis
By using the SPSS 20 version, the reliability test performed for the variables. It is a correlation
based method. The internal consistency of the variables is calculated by using reliability
coefficient. The reliability of multiple-item factors or variables was reviewed by evaluating the
internal stability appreciation to the Cronbachs alpha which is a reliability coefficient. The value
of the coefficient is situated between 0 and 1 and to show a satisfactory reliability this value
should be greater than 0.6.
Regression Analysis:
Multiple linear regression analysis was run to find out whether food quality, prices of food and
caf environment are predictor of customer satisfaction and repurchase intention.
In table 3 Results of regression analysis indicate that independent variables (food quality,prices
of food & caf environment) account for 20.5% significant variance in customer satisfaction (R 2
= .422, F =91.125, p=.000). Standardized coefficient beta values as shown in Table-4 between
food quality, prices of food, caf environment and customer satisfaction are significant (=.146, .
212, .349 p<.001) with significant T value (2.157, 3.204 & 4.942, p<.001). These results showed

that food quality, prices of food, caf environment perception are the predictors of customer
satisfaction.
Moreover as shown in Table-7, results indicate that independent variables (food quality,
prices of food, caf environment) account for 23.5% significant variance in repurchase intention
(R2 = .387, F =78.979, p=.000). Standardized coefficient beta values between food quality, prices
of food, caf environment and repurchase intention are significant (=.036, .020 & .582 p<.001)
with significant T value (.511, .297 & 8.007, p<.001). These results showed that food quality,
prices of food and caf environment are also the main predictors of repurchase intention.

Correlation Analysis:
Results of correlation analysis are shown in Table-4, which indicate the relationships between
food quality, prices of food and caf environment, customer satisfaction and repurchase
intention. As seen in Table 4, the correlation coefficients for the variables under investigation
were ranging from 0.162 to 0.379. Food quality has a positive significant relationship with the
customer satisfaction (r=.575, p<.001). This particular finding supports the claim that food
quality has a positive and significant relationship with the customer satisfaction. Moreover,
results show that food quality is also positively and significantly associated with the repurchase
intention (r=.505 p<.001). The construct prices of food exhibits the positive and significant
relationship with students satisfaction and repurchase intention respectively (r=.587, p<.001;
r=.489, p<.001).

Conclusion:
The purpose of this study was to examine and describe the impact of food quality on the
students satisfaction and the repurchase intention via caf environment. The study was also done
to know that which element food quality or prices of food has a greater influence on the students
satisfaction and repurchase intention with the mediating role of the caf environment. This
research was designed to measure the extent of food quality and its prices in different university
students of Lahore, Pakistan. The finding shows that there is a positive relationship between the
food quality and the students satisfaction of the customers as well as with the repurchase
intention. Moreover, the prices of the food also have a positive impact on the Students
satisfaction and the repurchase intention.
The findings of the study show that overall quality of the food is valid and reliable for
predicting the customer satisfaction and the future purchase. The results also describe that all the
elements are positively and significantly correlated to each other. The results clearly showed that
the impact of quality is highly focused on the satisfaction and as a result it increases the rate of
future purchase. That is why it is important for cafeterias to focus on the taste and quality of food
according to the customer needs and demand in order to remain successful.
The present study also has several implications. First, the findings indicate that the quality of
the cafeteria food revealed a direct effect on students satisfaction and these findings are
supported by the study of (Bowen and Chen, 2001; Darsono and Junaedi, 2006). As they found
that the customer satisfaction had a positive effect on commitment and satisfaction had a positive
relationship with the quality.
The food quality also have a positive relationship with repurchase intention of the customers
and we conclude that the relationship between affective and continuance commitment of the
students related to the satisfaction and customer retention, and it is demonstrated that the positive
and strong influence of commitment on customer retention. The price of food also revealed a
direct effect on satisfaction & repurchase intention and it is supported by Vazquez-Carrasco and
Foxall (2006) social, confident and special Prices of food has positive impact on loyalty
intention/repurchase intention. It illustrates that customers are pleased with service of equity as
well as quality.

5.2 Limitations:
As our study is large and comprehensive study and it suffers from the limitations. Firstly the
method of data collection used in this research is limited because the process occupied a selfreport assessment format. Multiple techniques and several data collection methods would reduce
the technique biasness and improve reliability of result by reducing measurement inaccuracy.
Secondly, the data is collected using questionnaire techniques. Most of the people do not take
it seriously, hence inaccurate information is received. It also suggested and recommended to
collect data public and private universities as well. Since the data was collected from top
managers on the basis of their evaluation indicators, objective performance variables may also
involve in this study. The information related to the customer focus was obtained from the
respondent rather than the customers themselves. Due to this data would not be reliable and
research findings might be biased.
Future recommendations:
Our study has many limitations that why there is number of suggestion for future research. The
validity of our variables is strong but not perfect. The future research can be made perfect by pre
testing the variables that have close relation and impact on the satisfaction and the repurchase
intention. Hopefully this results in achieving higher validity results.
In addition depth studies are needed to give detail information about the study. The study that
gives techniques for the improvement of these factors that will ultimately increase the impact and
relationship between all these factors. Structured interviews should be done for quality of
information to be obtained. This type of interviews would help to find out that which factor
effects and relate to the brand satisfaction and repurchase intention.

References:
Andaleeb, S. S. and Conway C. (2006), Customer Satisfaction in the Restaurant Industry: An
Examination

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the

Transaction-Specific

Model,

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of

Services

Marketing," 20, 1: 3-11.

Anonymous (2002), College FS Programs Rated, Food Management, 37, 8, p.14.
Bearden W.O. and Teel J. E. (1983), Selected Determinants of Consumer Satisfaction
and

Complaints

Reports,

Journal

of

Marketing

Research,

20

(February):

21-28.

Behrens, T. K. and Dinger, M.K. (2003), A Preliminary Investigation of College Students

Physical

Activity

Patterns,

American

Journal

of

Health

Studies,

18,

2/3:

169-172
Hartnell College (2002), 2002 Customer Satisfaction Survey, Institutional Research
& Planning Office, No. 02-01 (June): 1-4.
Meyer M. K. and Conklin M.T. (1998), Variables Affecting High School Students
Perceptions of School Foodservice, Journal of the American Dietectic Association," 98, 12
(pp1424-1429).
National

Restaurant

Association

(2003),

Restaurant

Industry

Forecast,

Executive

Summary, Washington DC.

Richardson N.J., Shepard R., and Elliman N. (1994), Meat Consumption, Definition
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Appendix A

Questioner

Dear Sir/Madam,
We need your kind assistance in completing the following questions, which we are using to
collect data for our MastersResearch.
We are currently working on a project of Business research methods, entitled; The impact of
quality of food and price on the Students satisfaction and repurchase intention via cafs
environment. Your assistance in completing this questionnaire is completely confidential and
will be highly appreciated. We will be highly thankful to you if you show deep concern to this
questionnaire. Our research also be beneficial to you in future.
THANK YOU FOR YOUR ASSISTANCE
If you have any question about this survey please feel free to contact me viamail
zahidbilal@ucp.edu.pk
Dr. Azhar Manzoor
Zahid Bilal
Ayesha Riaz
Muhammad Arsla

University Of Central Punjab (UCP), Lahore.

Section 1:

Basic Information

Gender:
(1) Male
Name:

(2) Female

__________________________________

Age:
(1) 20-25 (2) 26-30 (3) 31-35 (4) 36-40
(2) Marital status:
(1) Single

(2) Married

Highest level of Education:

(1) Under graduate (2) Graduate (3) Master(4) PhD (5) Other

Section 2:
Quality of Food (I.V)
Disagree

Neutral

Agree

Strongly
Agree

Statements

Strongly
Disagree

Sr.
No.

Compared to the price we pay, we get reasonable quality

1
2

Provide best services

The food available in the caf is fully hygienic

The food has consistent quality

Rate these service Low standards-high standards

Price of food (I.V)

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

You always have to pay a bit more for the best.

Increases of price not hinder me to purchase.

The cafeteria provides good value for money

Sr.
No.

Statements

Generally speaking, the higher the price of the product, the higher
the quality.

The price of a product is a good indicator of its quality

Caf Environment (M.V)

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

The staff of the caf provide best and quick services

The sitting area is easily available in rush hours

Sr.
No.

Statements

The sitting area of the cafeteria is good and also available every
time.

The caf is neat and clean

3
4

Customer Satisfaction (D.V)

Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

My utilitarian needs are satisfied by the caf

We are very much satisfied with our cafeteria

The cafeteria takes good care of me

The cafeteria is attentive to my feeling

Sr.
No.

Statements

The cafeteria is responsive to my concerns

Loyalty (D.V)
Strongly
Disagree

Disagree

Neutral

Agree

Strongly
Agree

Feel affection toward my university cafeteria

My cafeteria reflects who am I

3
4

I feel a personal connection with my university cafeteria

I have strong positive feeling about my cafe

Sr.
No.

Statements