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to eat segment (fast Food) has given a new 1.2 Research questions
dimension to the industry so that Fast food Reference to the research objective following
restaurants like Pizza Hut, KFC, AFC are research questions are to be addressed by this
taking very good business in most of the part study;
of world as well as in many cities of Pakistan 1- What are the determinants of
and they are spreading their branches very customer satisfaction in full service restaurant
successfully. Basically this is the era of industry?
globalization and due to advancement of 2- What is impact of service quality,
media world is shrinking in terms of culture product reliability, price and physical design
and habits so the fashions as well as eating on customer satisfaction in restaurant
patterns are also being opted among all over industry?
the world and this the reason for such a huge
spread of restaurant industry in the world. 1.3 Significance of study
Customer satisfaction is very important for A thorough understanding and knowledge of
every organization; either they are service the factors that have impact on customer
sector or the privet sector. Customers are the satisfaction are very useful in guiding
actual agents or stakeholders for determining restaurant owners and managers to design and
or best judging the success of any product or deliver the right offering and strategies. Also
service. research has many future implications. It has
potential to check the moderating effect of
The purpose of this study is to investigate the culture sensitivity and also it can determine
factors or determinants which are making the mediating role of customer satisfaction
significant impact on customer satisfaction in and its impact on brand or customer loyalty in
this industry in reference to our focus area of further. This will be of unique in terms of
Pakistan. For this we studied the behaviour of local environment and will have many
customers of some big Restaurant outlets in implications for restaurant owners, managers
Okara city. The methodology used was data and researchers of particular community.
collection through structured questionnaire
from sample of target population and then this 2. LITERATURE REVIEW
data was statistically analyzed via SPSS
version 16. 2.1 Customer satisfaction
Qualities of brand characteristics that are
1.1 Objective of the study offered by company determine the level of
The objective of the study is to find out the customer satisfaction. (Khan & Afsheen,
essential factors or determinants of customers’ 2012).
satisfaction in the restaurant industry of
Pakistan. Customer satisfaction can be defined in terms
of meeting the expectations of the customers
in terms of parameters associated with
satisfaction (Malik & Ghaffor, 2012).
According to Johan; the customer mind is a
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Journal of Asian Business Strategy, 4(1)2014: 18-31
complex set of thoughts and ideas and cannot components included in this effect in
be fully predictable by human being. customer satisfaction. Complete support
dining places ought to give attention to 3
Thorsten and Alexander (1997) found elements – support good quality
Customer satisfaction with the product and (responsiveness), cost, along with meals good
services of company as the strategic factor for quality (reliability) in the event customer
competitive advantage. In the context of satisfaction will be dealt with like a
relationship marketing, customer satisfaction organizing variable. Oliver (1981) expressed
is the way that leads to long term customer in which pleasure shortly decays directly into
retention because un satisfied customers have one’s total mindset
very high switching rate (Lin & Wu, 2011).
“Satisfaction can be regarded as a broad
According to Zairi (2000) the feeling of principle; support good quality is a component
accomplishment of inner desires is called of satisfaction” (Zeithaml & Bitner, 2003).
satisfaction. Customer satisfaction has direct Client satisfaction is usually defined through
effect on customer loyalty (Mittal & Lassar, Oliver’s (1997) conditions: that it's this
1998). If product or service fulfils the needs consumer’s fulfilment result. It's a ruling that
and demand of customer he will become a products or services feature, or this products
satisfied and will be converted to loyal or services per se, comes with a pleasurable
customer and thus will add in customer equity level of intake linked fulfilment. In other
of company. Company profitability is not only words, it does not take total level of well-
depicted in its balance sheet but it is also being that has a service /product knowledge.
measured on basis of its sound customer base
and life time value that customers deliver to Full satisfaction is usually ordinarily deemed
company. Oliver (1993) suggest in his study as a general affective result resulting from the
customer satisfaction is the core philosophy of application of some sort of products or
marketing strategy of any organization and services (Oliver, 1981).
plays a key role in an organization success. In
fact customer satisfaction is the core principle There is positive romantic relationship
of the modern tool of CRM being used by between fulfilment and also devotion.
marketers to attract and retain customers. Szymanski and Henard (2001), inside their
meta-analysis, reveal 15 positive and also
Lim (2010) Customers final pleasure may major correlations between 2 constructs.
have significant affect connected with Bearden and Teel (1983) in addition have
atmosphere. Bodily environment are useful to granted a new romantic relationship between
produce graphic within the mind connected fulfilment and also devotion.
with customer in order to affect their own
behavior. Bodily atmosphere with the dining We employed transaction-specific model
places have the significant has an effect on for within advised because suggested through
the clients pleasure. Super, providing, routed, function ended up being accomplished on
tunes and different various other atmospheric there through Teas (1993) and Cronin et al.,
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Journal of Asian Business Strategy, 4(1)2014: 18-31
(1994). In this way research question or even The researcher found that greater you give
target is usually interested mainly because service as per customer requirement or need,
much like this product customer satisfaction greater will be the level of satisfaction and
within all round is usually dependent upon vice versa. Analysts described the direct
judging the feeling or even final results along positive relationship of service quality with
with number of measurements just like customer satisfaction (Parasuraman et al.,
program excellent, merchandise excellent and 1988). Athanassopoulos (2000) identified
price (Parasuraman et al., 1994). development, responsiveness, price, and
program excellence as centre measurement
In addition, using the transaction-specific associated with customers’ satisfaction.
product, most of us reveal which the
merchandise providing for your complete Service quality is not an easy task to quantify
program restaurant industry should be known and being evaluated, because it is not a
as a mix of program and also merchandise product to quantify but it is customer’s
functions. Therefore, clients will take into evaluation and subjective perception about
account these issues with deal for example something (George & Jones, 1991). Takeuchi
merchandise characteristics (e. g. food (1983) quality is such an important
excellent and also restaurant ambience), characteristic or feature of something that
program attributes (e. g. responsiveness of the make some differentiation in your product and
representative), and also price so you can get stands you remarkable in terms of
an overall fulfilment from restaurant. The competitative advantage. Service quality is
Theoretical frame function as well as the evaluated when the user of service compare
worried ideas are shown yearly part, and also his perception with actual experience.
chapters upon research process, your analyses, Gronroos (1984) Satisfaction is wide concept
final results, and also conversation can also be and is impacted by many factors and service
incorporated. quality is one of the major determinants of
customer satisfaction (Zeithaml & Bitner,
2.2 Service quality 2003). Bitner and Hubbert (1994) give two
Ayse (2007) Top quality includes 2 main options of explaining the phenomena:
factors: (1) the merchandise fulfils wants or satisfaction as result of some particular
even (2) around that levels it truly is free from experience or event combined effect of
insufficiencies (Juran, 1988). Service is kind satisfaction.
of performance that's proposed by 1 get
together to an alternative and also within SERVQUAL product supplies a beneficial
corporeality can be a ought to part of it way to be associated with computing
(Kotler & Keller, 2006). Through program excellent produced by PZB within
acknowledged the necessity associated with 1988, as outlined by this product customers’
methods associated with program excellent awareness and also anticipations starting upon
quite a few scientists most often make use of all 5 measurements: tangibles (Actual
program excellent in order to measure environment or even design), reliability
customer satisfaction Zeithaml (1985). (Product quality), responsiveness (Service
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Journal of Asian Business Strategy, 4(1)2014: 18-31
quality), assurance and also sympathy. them in a timely manner. SO, the quality of
Determined by aspects associated with service includes many factors and
SERVQUAL product exact same final results responsiveness is among one of those factors
are already put on restaurant industry through which satisfy the customer on dimension of
Stevens (1995) and also he or she created service quality
DINESERV from SERVQUAL. Inside the
restaurant industry, only an element of 2.4 Product quality or reliability
providing can be a program and it's also Product quality has same importance in full
intangible and also generation and also service restaurant industry as like service
utilization of merchandise have become quality. More you are reliable in terms of your
significantly within close up affiliation. product quality more customers will be
Furthermore customer wish wide variety and satisfies with your product. It is the part of
also self assortment plus they evaluate one’s Customer relationship management (CRM)
providing along with some others when they that how much your customer depends upon
have got clusters associated with eating places reliability of your core product. Once
inside their thoughts because of reference customer is satisfied on reliability of full
point teams (Neal, 1999). service restaurant, he would not only become
loyal customer but also will become brand
Authentic measurements associated with ambassador and will add in customer equity
SERVQUAL don't need to be incorporated. of the restaurant.
Inside the restaurant industry, customer’s
chance just isn't a lot of large because of the In different organization business we will
purchase price, the results of the program, as discover all 5 most critical measurements
well as the alternatives available. Hence which make a very good organization and also
assurance just isn't because significant within these are generally program excellent,
this industry. In the same manner, sympathy is perceptible, trustworthiness, responsiveness
outlined within the SERVQUAL materials assurance and etc. (Azadavar et al., 2011).
because particular person consideration and Satya (2011) identified it is compulsory for
also attention that's inclined to each customer. corporations to maintain their own excellence
This sizing is a lot more applicable in order to in quality mainly because everyone is a lot
companies where “relationship marketing” more attentive to quality excellence as
instead of “transaction marketing” is vital on compared to price. The consumers someday
the business. However trustworthiness and buy better brand in terms of quality instead of
also responsiveness operating industry just thinking about of the price issue (Rajput et al.,
like restaurant can be a lot more much better. 2012). Tsiaotso (2006) identified a good
Responsiveness, as defined by the primary influence associated with perceived
SERVQUAL literature, is identified as the quality upon acquire intentions.
willingness of the staff to be helpful and to
provide prompt service to the customer. In full 2.5 Physical design
service restaurants, customers expect the On the view associated with actual physical
servers to understand their needs and address layout, environment psychologists declare that
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Journal of Asian Business Strategy, 4(1)2014: 18-31
people answer areas along with two general, competition within of the restaurant industry,
and also opposite, types of actions: strategy or clients will be able to identify interior
even prevention (Mehrabian & Russell, 1974). reference point price ranges inside their head
It is advised of which besides the actual plus they constantly evaluate and also analyze
physical measurements of the organization the values in terms of many characteristics
attracting or even deterring assortment, actual associated with restaurant upon every acquire,
physical layout of the organization can also an inside reference point price is understood
influence the amount associated with to be an expense within potential buyers
accomplishment consumers attain after within ‘memory of which acts as a criteria intended
(Darley & also Gilbert, 1985). This involves for contrasting precise price ranges (Grewal et
research about the “ambiance” (Bitner, 1992) al., 1998).
which is “artificial environment” and also
how it influences both clients and also Besides previously mentioned variables
workers within the program process. preference associated with merchandise,
campaign, within aspect actual physical
2.6 Price environment and also program excellent also
Price has a significant role in selecting a have major romantic relationship toward
product. For company point of view price is customer satisfaction within fast food industry
reward or value given in return of need associated with chosen human population.
fulfilment to company. Perceived customer Andaleeb and Conway (2006) researched of
expectations and price should be in which price or cost associated with restaurant
accordance with each other. furthermore varies as outlined by style of
restaurant. Shoppers may very well
Skindaras (2009) we can discover a lot of understand price associated with restaurant in
merchandise on this planet possessing terms of its merchandise and also program
different price ranges. excellent. In accordance with Chang & Wildt
(1998) the value provides its major influence
Price is one of the four P’s of Marketing Mix upon customer perception about quality if it's
that has significant role in implementation of really the only details indicated available. In
marketing strategy. (Kottler & Armstrong respect the study associated with buyer want
2012). Han (2009) claim that one of the most to undertake a price and also quality instead of
adaptable factors which improved quickly is complex elements within sturdy items (Chui
the pricing (Andaleeb & Conway, 2006) the et al., 2006).
costs associated with restaurant merchandise
furthermore vary according to style of 2.7 Theoretical frame work and hypothesis
restaurant. If your price is large, clients may Research has found that there are a no of
very well expect premium quality. ” Also, in factors which are contributing towards
the event the price is minimal, clients may customer satisfaction in restaurant industry.
perhaps believe that restaurant is poor in Many researchers have done lot of work on
terms of merchandise and also program the concept and many elaborated it in
excellent. Furthermore, because of the different dimensions like taste of product,
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Journal of Asian Business Strategy, 4(1)2014: 18-31
Responsiveness
Product Quality
Customer
Satisfactio
Physical design n
Price
Hypothesis
H1a. The more reliable the service provided 3. METHODOLOGY
by the restaurant, the greater the level of
customer satisfaction. 3.1 Sampling and data collection
Convenience sampling technique was used to
Within Responsiveness (service quality) we collect the data from a sample of 130
can also propose below mentioned hypothesis; customers on same point of purchase and
H2. The responsiveness is positively related consumption inside the restaurant. A
with customer satisfaction. structured questionnaire on Five point Licker
H3: The food quality is positively related with scale was used to collect the data.
customer satisfaction.
3.2 Development of instrument
H4. The physical design and appearance of The survey questionnaire measured four
the restaurant, is positively related with dimensions or determinants and their effect on
customer satisfaction. central concept customer satisfaction. The
H5: The negative deviation in price, is reliability of instrument was checked first
negatively related with customer satisfaction through pilot testing by using chron bach
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Journal of Asian Business Strategy, 4(1)2014: 18-31
alpha. The data was collected on five point 3.3.1 Demographic summary
licker scale. To check the reliability of instrument I made
reliability analysis and find out the value of
3.3 Data analysis section chron bach alpha for each individual variable
in SPSS.
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Journal of Asian Business Strategy, 4(1)2014: 18-31
3.5 Interpretation
Correlation is a technique which measure the When we find the relationship between one
strength of association between two variables dependent variable and one or more
the results show there is positive correlation independent variables we go for regression
among the variables of study but price has analysis. Correlations only find association
negative correlation with customer between variables but regression measures
satisfaction and physical design. As, how much there are variation in dependent
Correlation is significant at 0.01 level(2- variable due to change in one or more
tailed), here result shows there is low independent variables. When there are two or
significance b/w price and other variables like more independent variables in study we go for
customer satisfaction and physical design and multiple regressions.
strong level of significance exists among all
other variables of study.
Model summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 0.523a 0.274 0.25 0.76936
a. Predictors: (Constant), Design, PRICE, PQ, SQ
3.6 Interpretation of adjusted r square 75% is due to other factors that are being held
The value of adjusted R square shows that constant in this study but they have their
customer satisfaction is affected by 25% due impact on the concept. Goodness of fit is also
to price, product quality, service quality and checked in Anova table. The value of F
physical design as a whole and remaining statistic shows the overall Fitness in model.
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Journal of Asian Business Strategy, 4(1)2014: 18-31
customer satisfaction. Now in this age only The value of adjusted R square indicates that
atmosphere is not the criteria of satisfaction there is limitation and need of more in depth
but it should be blended with other factors like study in this field. As, apart from these four
service quality also. variables discussed in this study there are
some other variables also which affects
4.1 Future research customer satisfaction.
– To explain customer satisfaction in a better
way, it is important to look at additional Second assumption to be studied is what the
factors or seek better measures of the primary reason customer is going to
constructs (Divide the dimension or variables restaurants either for meal or for social
of construct into all possible elements). gatherings and as symbol of their prestige and
social status.
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Journal of Asian Business Strategy, 4(1)2014: 18-31
price as a quality cue. Psychology & Khan, & Afsheen, (2012). Determinants of
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