Final MKT 470 Final MKT 470: Marketing Research (North South University) Marketing Research (North South University)
Final MKT 470 Final MKT 470: Marketing Research (North South University) Marketing Research (North South University)
Final MKT 470 Final MKT 470: Marketing Research (North South University) Marketing Research (North South University)
st
231 August 2018
Mahafuz Mannan,
Dhaka, Bangladesh.
Dear Sir,
This is our report on “Predicting customer satisfaction and Revisit intention in Restaurant
industry”. We have done a lot of work for making this report effective. We have completed the
report by the support of primary and secondary data. After completing the report, we learn how
marketing research should be conducted. So, we are requesting you to accept our report.
Regards,
Executive Summary
Customer satisfaction and behavior intention is important factor in the restaurant industry. Our
purpose of this report is to be forecasting the customer satisfaction and behavior intention in
restaurant industry. In our country there is huge number of restaurant exist. In our country people
visited restaurants very repeatedly. The importance of doing research in this topic has many
aspects. We cannot assume the customer satisfaction of the restaurant industry without having
the empirical or logical evidences. That’s why research for this topic is necessary to know the
almost exact figure of customer satisfaction in the restaurant industry. The research will give us
the information about the topic properly. Moreover, by this research we will able to know about
other point of view in this case. By the analyzing of the topic after the assumption of the research
we will able to concrete a decision about our topic. After-all, it will be helpful for many people
such as business people. So, for doing long term business and give maximum satisfaction to
customer, restaurant authority should be more careful about each of the component in the
hospital.
Table of Content
Introduction……………………………………………………………………….1
Literature review…………………………………………………...………….4-21
Questionnaire…………………………………………………………………22-25
Conclusion………………………………………………………………………..29
List of references…………………………………………………………......30-32
Introduction
Today, eateries are standing up to extending competition from the improvement of different
eateries. Besides, Bangladeshi clients have ended up being further developed, more OK with
ethnic cooking, and logically they lean toward strong or lively sustenance. In this way, eateries
can never again, as it were, rely upon awesome taste or minimal effort alone for their flourishing
(Liu and Jang, 2009). Today, clients are never again prepared to sacrifice poor organization or
eating condition for good taste when they search for a shocking inclusion in ethnic diners. An
extraordinary general eating information through awesome sustenance in conjunction with
incredible condition and first-rate advantage ought to be refined to meet their satisfaction.
Regardless, it is up 'til now not tentatively attempted if clients in this segment are essentially
controlled by sustenance, atmospherics, or agent organization. Organization quality and buyer
reliability have transformed into the most focus exhibiting needs since they are necessities of
client commitment, for instance, go over arrangements and positive casual (Han and Ryu, 2009;
Liu and Jang, 2009).
In the present genuinely engaged market, it is all things considered acknowledged that the best
approach to getting breathing space lies in passing on incredible organization that will, hence,
provoke satisfied customers (Han and Ryu, 2007). In the eatery business, clients generally use
nourishment quality, air, and eatery notoriety as key fragments of diner contribution in surveying
the restaurant advantage quality (Chow et al., 2007; Namkung and Jang, 2008; Ryu and Han,
2010). A suitable mix of these significant attributes ought to realize clients' perspective of high
eatery advantage quality, which therefore ought to enhance purchaser dedication and customer
dependability in the eatery business. Regardless, little research has been directed to investigate
the impudence of different parts of eatery advantage quality on result factors, for instance, eatery
picture and customer saw regard. Some past examinations have found that the clear idea of the
air (Baker et al., 1994; Nguyen and Leblanc, 2002) or the eatery quality (Lai et al., 2009) can
significantly influence eatery picture. This photo can have a subsequent influence on client's
regard and satisfaction, which, along these lines, impacts their dependability and returning to
inclination (Lai et al., 2009; Patterson and Spreng, 1997; Prendergast and Man, 2002; Ryu et al.,
2008).
pioneers in leading the eatery business of Bangladesh. New brands i.e. Swiss, Helvetia et cetera
are to name of some Bangladeshi eatery shops encircled in differentiating system. In mid-2000,
Bangladesh experienced the entry of the principle worldwide brand of the eatery establishment in
the country. Pizza Hut and KFC went into Bangladeshi promote having a foundation with
Transcom Foods Limited (TFL). Both Pizza Hut and KFC are assistants of the world's greatest
diner association Yum! Restaurants Universal. TFL has opened three Pizza Huts and three KFC
outlets in Bangladesh in a scope of five years. Pizza Hut opened its pioneer diner in 2003 in
Dhaka. Following its amazing achievement in Dhaka, the Chittagong outlet was opened in 2005.
The third Pizza Hut diner was impelled in Dhaka in 2008. Meanwhile, Kentucky Fried Chicken
(KFC) saw as an awesome eatery in a common bunch of complete dinners to enhance the buyer's
general everyday presence. TFL viably moved the lead KFC in 2006 and grabbed thought of the
overall public with its taste, a selective desire for neatness, cleanliness, inside appeal, sensible
evaluating et cetera. Following its immense achievement in Dhaka, the second and third outlets
were opened in 2008. There were two genuine shakeups in the eatery business in Bangladesh. In
September 2005, the organization of Bangladesh started an imperative drive against the
associations that were found defiling natural items, using pesticides, unapproved sustenance tints
and sustenance things that fired their date of work et cetera. These drives made a certified impact
on individuals when all is said in done prosperity part of Bangladesh. Various renowned diners
and eateries were found subject and those were significantly advanced in press and media. This
lead towards the uncertainty of the common nationals and realized the short rot of the offer of
fast sustenance things. On account of this shakeup, many focus, and little eateries were closed
moreover, only several diners, generally, the expensive and built up ones, were gotten out. This
caused generous hardships following shock assaults by compact courts. The average murmuring
snack shops at Dhaka never again draw a comparable interest after September 2005. The
adaptable courts struck and accordingly ideal around 60 percent of business was declining. A
noteworthy piece of the customers at these shops were youths and understudies. Countless had
stopped embarking to the nibble shops following the news reports of stale things being old.
(Nazrul, Ullah, and Nasim, 2010) The Top 12 eateries in Bangladesh is Pizza Hut, Kentucky
Fried Chicken (KFC), Best Fried Chicken (BFC), American Fried Chicken (AFC), Domino’s
Pizza, Helvetia, Yummy, Wimpy, Western Grill, Sausly's, Hot Hut! and Shwarma House. This
paper grasps to perceive the components impacting customer sincerity of the snappy sustenance
industry in Bangladesh. In the composition segment, a short talk has been given about the
possibility of customer neighborliness, and elements that may impact the customer agreeableness
of the eatery business in Bangladesh. The accompanying part spreads out the examination
framework, including a talk of test evaluate affirmation, scale change, data assembling, and
associated genuine devices. The accompanying part portrays data examination and show testing.
The last section keeps an eye on the examination results, regulatory implications
Literature Review
Service quality/Customer satisfaction:
Service quality is basically the how strong the delivered service stands on the customers
expectation. In other words, service quality is the features that the business offers and how
satisfactorily it is provided to the consumers. Consumers perception and the value they associate
to the service or product can be the definition of service quality. It’s solely dependent on the
perception rather than the management (Berry et al., 1985).
The definition of quality can be different to different person it has no rigid structure. To some
people quality is reliability, to some it may be the price of the product. But for every consumer
superior service is a must to get satisfied with the service offered by the business. Several
researchers empirically advocated on the side of the impact of service quality on customer
satisfaction based on their researches. The findings expressed that service quality was a pre-
condition to consumer satisfaction.
Spreg and MacKoy (1996) also elaborated the arguments that plays important role behind the
importance and researched out the relationship between quality of and consumer satisfaction by
testing a modified Oliver’s (1993) satisfaction/service quality model (Kisang Ryu and Heesup
Han, 2009). The findings showed that their modified model matched with the data nicely and
perceived quality of service pre-condition to satisfaction.
Administration quality alludes to the distinction between clients' pre-buy conviction and post-
buy assessment (Parasuraman et al. 1988). In the other sense benefit quality means giving
institutionalized support of the clients as indicated by their desire (McAlexander, Kaldenberg,
and Koenig 1994).
Administration quality is an imperative component of an administration. It can have an enormous
effect to fulfill clients. Administration quality is where clients tend to think about their apparent
desire and reality (Churchill et al., 1993). Administration quality needs to coordinate the desire
for the clients, at exactly that point the clients will be fulfilled (Churchill et al., 1993). Hence
eateries should give exceptional accentuation on benefit quality and they ought to likewise plan
about the administration they will offer to the clients (Teas, 1993).
The eateries should endeavor to give the most ideal support of the clients at the principal
endeavor. Yet, they can give high administration quality on the off chance that they comprehend
what to do, how to do and when to do (Hartline and Ferrell 1996). T
he means of offering an administration ought to be obvious to them and all the administration
individuals should attempt to assume their parts appropriately, at exactly that point they can give
a top-notch benefit (Cronin and Taylor, 1992). In this way, Restaurants should center around
their administration quality with the goal that they can face the desires for the clients. On the off
chance that the eatery can't meet the desires for the clients, it will be low administration quality,
and on the off chance that they can meet the desires for the clients it will be high administration
quality (Gotliebe et al., 1994).
There are numerous discussions about if the administration quality influences the clients'
fulfillment, yet one is certain is that if benefit quality expands consumer loyalty will likewise
build (Olshavsky and Miller, 1972).
On the off chance that the pre-buy desires for the clients coordinates the post-buy recognition or
administration quality surpasses the desires for the clients it will most likely increment the
consumer loyalty. (Rust and Oliver, 1994).
Then again if the post buy assessment does not match or remains underneath the desire, it will
diminish the consumer loyalty level (Brook and Oliver 1991). Service quality is one of the core
elements of the service restaurants provide to its customers (Young Namkung and SooCheong
Jang, 2007).
So, it can be said that by providing the right service quality restaurants can make its consumers
satisfied thus. The findings express that service quality has a very positive relation with
consumers satisfaction in restaurant industry.
part a substantial yield which is controlled by the eatery or specific specialist organization who
controls the execution of the nourishment (Lee and Hing, 1995; Namkung and Jang, 2007).
An eatery's experience is for the most part subject to its sustenance quality. Clients must feel that
they got what they were searching for and furthermore should get the nature of sustenance that
they requested (Kivela et al., 1999; Raajpoot, 2002; Sulek and Hensley, 2004).
Food quality is the most fundamental component to fulfill the requirements and needs of a client,
consequently eateries should ensure that they give the most ideal quality nourishment keeping in
mind the end goal to fulfill the clients (Namkung and Jang, 2007; Peri 2006).
Food quality relies upon a few things, for example, introduction, sound, assortment, choices,
temperature taste, freshness and some more. Introduction implies how appealingly the
nourishment has been exhibited, assortment demonstrates that the conceivable accessible things
that can be given to the clients that that is appear on the menu, sound alludes to how clean the
sustenance is with the goal that the clients who are having this nourishment does not have any
inconveniences as a result of it, taste is the most imperative component in a nourishment thing,
numerous clients give most significance to this property of nourishment, freshness alludes to the
how firm or how characteristic the nourishment thing is, numerous clients look for freshness in
their sustenance, temperature of the nourishment additionally a vital component of nourishment
quality. At some point clients need the ideal temperature in their nourishment because often it
makes the clients fulfilled (Namkung and Jang, 2007; Kivela et al. 1999).
Sustenance quality may influence consumer loyalty either decidedly or contrarily (Churchill and
Surprenant, 1982). On the off chance that the sustenance quality is great, it will improve the
consumer loyalty. Or then again if the sustenance quality is awful, it will diminish consumer
loyalty (Cronin and Taylor, 1992).
Consumer loyalty is profoundly reliant on sustenance quality decidedly, implies if any of these
two factor builds the other one will likewise increment and the other way around (Bitner and
Hubbert, 1994) Food quality can be judged on the basis of its appearance, healthiness, variations,
tastiness, and freshness. Presentation of a food refers to how is it served or how it looks like from
the outside (Kisang Ryu and Heesup Han, 2009).
The outlook or the appearance of food is a vital food attribute in customers satisfaction and
return intension (Young Namkung and SooCheong Jang, 2007). Variety refers to how rich the
menu of the restaurant is, how many food items they are serving. Then, healthiness and freshness
are food made under strict quality standards and is safe for human consumption.
Freshness particularly refers to the time duration between the making of the food and its
consumption. Temperature of food also can be a very crucial indicator of foods value and
quality. Consumers often use temperature as the indicator of the overall quality, freshness and
healthiness of the food. So, the findings express that food quality has a very positive relation
with consumers satisfaction in restaurant industry.
According to (Cronin et al. ,2000) reported in a comprehension literature, hedonic value directly
affects customer behavior intention in a wide term (e.g., Sirohi et al., 1998; sweeny et al., 1999).
Moreover, they have proved that, the value across customer satisfaction depends on quality. It
promotes behavioral intention which makes revisit intention.
On the other hand, (Cronin et al.’s,2000) reported that, hedonic value positively affects
behavioral intention in restaurant industry. After all, it is verified by (cf. Ha and Jang, 2010) that,
through customer satisfaction, hedonic value affects restaurant industries by behavioral intention
which is positive.
According to the (Donovan and Rossiter, 1982; Babin and Darden, 1995; Hui; 1997) exemplified
that, consumers emotions are affected by the environments. The combined attainment of goods,
has perceived the hedonic value. In this process, experience is gathered from the total costs and
benefits to determine the hedonic value.
In the recent study, hedonic value can be perceived by service practice. The relation outcomes
with the customers is good. That creates satisfaction. It has also created the relation conclusions.
Thus, the positive word of mouth (WOM) can be spread by the consumers and they will receive
the hedonic value.
According to the (Babin et.al, 1994), for hedonic value two dimension are captured which
reflects two viewpoints. These two capture the emotional qualities. They have examined the
support of similar strength and the mechanism of the framework.
The perceived value of the goods offered by the retailer, distinguish with retail efficient quality.
(Darden and Babin, 1994). It is related positively with the hedonic value as it has service quality
intersections with the CSV concept. They have find it by their assessment.
According to the (Caruana et al. 2000), better service and better performance fulfilled
expectations of the customers which created hedonic value.
From the research of (Babin et al., 1994) PSV scale consists of 15 items which are hedonic
value. By Bilingual speakers the items were translated and back-translated. There is no
comparison between cultures, there was no need to established culture as the development of
CSV scale and some PSV items were not appropriate in the restaurant industry (Griffin et al.,
2000)
The hedonic value that is perceived by the customers is derived from the uniqueness of the
contributions which creates emotional arousal (Holbrook and Hirscman,1982). after all the
hedonic value imitates an experimental trade off elements.
Moreover, (cf Ha and Jang, 2010) are confidential about that, the hedonic value positively affects
the behavioral intention in the restaurant industry. But not directly. It affects via customers.
(Rizer, 2001) argues that, rather than eating in the home is costlier than eating in the fast-food
restaurants. That’s why fast food restaurants got popularity and they have worldwide success.
the reason behind it is, people wants efficiency in their eating. Only coupled want fun and
entertainment for their dinning which creates hedonic value. It’s mainly up to consumers
selection for which they want. Efficiency or entertaining.
Hedonic value is preference oriented which relates to the multisensory. The expectations what
one wants about entertainment is consisted with the hedonic value (Arnold and Reynolds, 2003)
customer satisfaction level. Research suggests that ultimately, customer satisfaction is strongly
influenced by physical surroundings and price perception (Dube, Johnson, & Renaghan, 1999;
Knutson & Patton, 1995; Ryu, 2005; Varki & Colgate, 2001).
Role of price perception influence consumer behavior for the product or service. So, maintaining
the balance the two prices are very important (Nguyen & Leblanc, 2002). Also, customers tend
to use perceived price as a cue of experience of using that product (Bolton &Lemon, 1999;
Varki& Colgate, 2001). So, customer price perception rather than actual price actually tends to
influence customer satisfaction (Zeithaml, 1988).
Customer satisfaction mainly depends on price, quality and environment. Customer satisfaction
basically meeting customer’s expectations through products and services that leads to post
purchase behavior like brand loyalty, repeat purchase, word of mouth and many other actions
taken by the customer for the brand (Churchill Jr. et al., 1982).
So, it is very much important to fulfill customer satisfaction. Because if customer is not satisfied
then it will be impossible to retain customer. So, price is very much important factor for
satisfying the customers.
Though we don’t find any proper evidence which proves the influence of perceived price’s
correlation between satisfaction of customer and quality. Price is also an important variable for
determining the quality of the service
Oliver (1981) introduced the expectancy-disconfirmation model for studies of customer
satisfaction in the retail and service industry. Expectancy-disconfirmation theory posits that
customers form their satisfaction with a target product or service as a result of subjective (or
direct) comparisons between their expectations and perceptions.
When ‘‘confirmation’’ occurs, customers are believed to remain neither satisfied nor dissatisfied.
Both expectations and perceptions also have been found to influence customer satisfaction and
subjective disconfirmation under various circumstances (Churchill and Surprenant, 1982).
A majority of consumer satisfaction studies were based on the expectancy disconfirmation
paradigm (Anderson and Sullivan 1993; Tse and Wilton 1988; Churchill and Surprenant 1982).
According to Oliver (1977), disconfirmation arises from the discrepancy between prior
expectations and perceived performance. It has been suggested to have an independent and
additive effect on satisfaction.
Atmosphere/Customer satisfaction:
Atmosphere is the X factor that differentiates the place from regular home environment or dining
room of the home but gives a cordial feeling for the customers so that they can feel comfortable
(Scott Andrews). Atmosphere is driven by customers, their attitudes, the sound of conversation
and the cutlery. It is a very familiar environment. Customers may have preference of music or
not to have music. We have the capability to adopt what our customer demands (Scott Andrews).
There is so many factors involved in influencing a great restaurant atmosphere. Every detail must
be in the flow with restaurant’s brand image. It will help the overall impression of the restaurant
wanted to create and vibe they want to give to their customer will work together and make the
unique identity. Shortly there are twelve elements comes to mind first, when people plan for an
awesome atmosphere. They are: Restaurant concept, customers, cleanliness, staff, lighting, color,
texture, artwork, menu design, dishes and the other cutlery, furniture and sound. The designer
should keep in mind that, every choice he/she is considering, can impact the mood and the
mental state of the customer (Jocelyn, Nov-13, 2013) No one is interested to eat in a nasty and
bad place. While having dined out together everyone prefers a clean and calm environment
where they can sit peacefully and have their food. Suppose, a restaurant is offering very tasty
foods, but the atmosphere of the restaurant is bland and not comfortable for the customers, this
factor will overshadow the taste of the foods and the other good things of the restaurant. Not only
the customers will be avoiding the restaurant but also, they will spread negative word of mouth.
On the other hand, a good restaurant atmosphere will help the customer to change their
perspective of the restaurant, hold the customer for a longer period and ensure that they’ll return
again and again. The atmosphere is the first thing a visitor notice. When a customer come to a
restaurant for the first time, that individual first focus on the atmosphere of the restaurant. For
example: the location is convenient or not, the environment of the restaurant, they are clean or
not, the lighting, the music creates a value in the consumers mind. Even the interior design of the
restaurant is important. If the tables are designed in a congested manner, customers will not feel
comfortable. Because, restaurant is a place where people go for relaxation or for passing a good
time. If one table is just beside another, one customer can easily hear what the other customers
are talking about.
Sometimes it’s very annoying that someone else’s conversation is interrupting your own
conversation or own concentration. The table setting should be in a manner that attracts the
customers. No matter how much full the restaurant is, customers still don’t get bother with the
crowd of the restaurant (Scott Andrews, operations manager at hotel and restaurant, Gidleigh
Park).
As people went to the restaurants for passing good times or having a quality time, so restaurants
can offer some stuffs that can be an interesting topic. For example: a creative interior design.
After looking at the design, people will feel curiosity in their mind about the interior. Also, they
can provide a story book for all the tables. While waiting for the food, they can read something
and that waiting time not feels boring. Also, they can decorate the walls with art works.
So, customers pay an attention to the mystery of the work. The music of the restaurant should be
mild always. So that customers can listen to one another. They can carry the conversation. Also,
waiters will properly listen to the customer’s orders. If the music is mild, customer can call a
waiter and he will notice that call. But if the sound is heavy, a waiter might fail to notice that call
and customers can be bothered. The manager also includes that, if a restaurant owner focuses on
these kinds of mini factors and try to keep that in mind that these things are important, that
owner will not going to fail. He will always survive the market. The reason is he is thinking from
the consumers mind.
The theme of the restaurant must go with the food menu. For example: if a restaurant is selling
Mughal foods n their decoration is a formally decorated restaurant, it might fail to attract the
customers. That Mughal restaurant should give some traditional look, paintings of some Mughal
families or royals, some antiques pieces of show pieces and the lighting should go with the
decoration.
Again, if there is a Bengali foods restaurant, the decoration can be in a rural manner. With the
mix of nature, the banana tree, some outside structure with straws and soils. They can also use
crock to serve the foods. It will catch the eye of the consumers and they will feel attracted and
more related to their own culture. Suppose you have a fast food restaurant. So, your main target
market is the youths. But you are offering a very dull design in your restaurants, so they will not
go there. They will rather choose a place where they can chill in a cool environment.
No one is attracted with the random things. If anyone wants to survive in the market they must
have to offer something unique. That uniqueness will create the difference. The owner always
must choose the music based on the target market.
If your target market is the youths, you can choose rock, hip hop or soft. If your target market is
the working peoples aged from 25-35. Then you should go for the meaningful romantic or soft
music. Because, they start their corporate life recently. They have some attitudes that are like
students and have some attitudes liked corporate. After office they can look for something
interesting that will attract them. If you target market is from 40-60 or the families basically so
you can provide a soft music or the tunes of some soft music. If your target market is above 45 or
more, you should go for some classic songs. Some 70’s/80’s songs will attract them more. Some
statistics showed that atmosphere can affect the responsiveness and reliability of the customers.
How much time is averagely taken by the customers while finishing the foods and how much
time averagely they are spending on the restaurant?
From that data we can see that if our customers are leaving just after ending the foods that mean
they don’t like our ambience that much. Our customers are not reliable. On the other hand, if the
customers are relaxing after ending the food and having some chitchat about the food and leaves
after that, then they are finding the place as comfortable as they wanted.
The less the time difference between ending the food and leaving the restaurant, the less
convenient the restaurant is. The more the time range, the most comfortable the restaurant is. If
the good experiences are shared, it wills double your revenue. Colors play a big role in the
restaurant decoration. If the place is small and the walls are painted with dark colors people will
find it clumsy. If the space is big enough they can choose a dark color for a wall. Small places
always prefer a light color. It broadens the space and feels quiet and peaceful. Light colors and
the shade colors are very much popular for restaurants. For example: yellow. It creates a
sunshine effect in the whole environment even in the picture you can see the difference in the
white light picture and the yellow light picture.
Another thing to be noticed is the noise of the kitchen. While designing the restaurant, the
designer should keep in mind that, the noise of the kitchen may disturb the customers. Also, the
smells of the ingredients are painful to tolerate. People find it sometimes allergenic. Because,
there are some people who are very sensitive with the smells. Hiring the staffs is very important.
Restaurant industry is a direct communication industry. Here staffs are directly contacting with
the consumers. It is a very sensitive issue as well. If the consumers face any problem, they can
confess that directly and if the staffs are not proper, the restaurant might not survive in the
market for a long-time period. Hosts and the waiters are representing the restaurants. If they
don’t communicate with the consumers, don’t help them with the menu and other related needs,
customer service will go down. The image of the restaurant will go down. If staffs are not
cooperative in the restaurants, consumer might not find it comfortable and they will never return
to that restaurant. So, staffs should greet the restaurants, serve the foods properly, help the
customers with their need and ask them about the food.
Finally, while leaving another greet should be given by the hosts and the smile matters most. If
any disputes happen, they should know how to behave with the customers and effectively solve
the issue with the negotiation of both parties rather than doing arguments with the customers.
In a study by environmental psychologists and other social scientists, we found that the
judgment of understanding the manipulation of a restaurant’s atmosphere can boost profits.
Continuously, a perpetual arms race of restaurant redesign has become a prominent feature of
many American restaurant chains. The scramble has been especially raising in recent years, with
fast food giants KFC, Arby’s, Panera and Subway. All of them are now focusing on the creative
design of the outlets, along with casual dining chains such as Olive Garden and
T.G.I.Friday’s.That is why; the atmosphere of a restaurant is just as important as the food
(Stefanie Tuder, May31, 2016).
So, the findings of the discussion represent that atmosphere affects the customers satisfaction in
a very positive way in restaurant industry thus,
However, as customer become more familiar with the restaurant, they tend to use more core cues
for quality assessment. In term of utilitarian aspects, food quality is a core component of
restaurant services (Namkung and Jang, 2007). That is customers with higher familiarity are
more likely to consider core cues, such as food quality directly relevant to restaurant. Thus, the
emphasis on utilitarian aspects in evaluating restaurants is more behavioral intentions than to
customers who are less familiar.
Now we can say highly familiar customers satisfaction and behavioral intentions would be more
affected by the value of utilitarian aspects than customers who are less familiar.
Based on a comprehensive review of literature, Cronin et al. (2000) reported that utilitarian value
has been shown that it was related with customer behavior intention and contribute with it (e.g.,
Sirohi et al., 1998; Sweeny et al., 1999). After that they proved that utilitarian value along with
customer satisfaction and quality, directly promotes customer behavioral intentions. Behavior
intention is positively impact in a company recommendation the company to others and that also
include customers revisit intention for that company.
The abundant evidence indicates the positive and direct effects of utilitarian value on behavioral
intention even when customer satisfaction and quality are combined in a structural model. Then
we saw the utilitarian value concept in Cronin et. all’s (2000) study did not take combined the
hedonic and utilitarian value dichotomy, but in the recent evidence we saw there a relationship
between them, that has been reported in the restaurant industry (cf. Ha and Jang, 2010).
Ha and Jang (2010) verified that both utilitarian value and hedonic value positively affect the
behavioral intentions of restaurant customers, both directly as well as via customer satisfaction
taken the following hypothesis are convincing:
Theory suggested that, irregularities can be occurred by the people’s response that can be either
positive or negative in events. (Cacioppo and Bernston, 1994 Peeters and Czapinski, 1990;
Taylor, 1991). But the study shows that, behavioral intention leads to the customer satisfaction.
This determines the two gaps between them. The first gap is to assess the customer relationship
with the specific object and the other gap is, between customer satisfaction there are three types
of customer behavior (word of mouth, feedback of the supplier and loyalty). The assement of
these three is very much important.
From (Oh and Parks, 1997) reported that, the only product and services are not enough for the
firms. They do not only serve the products or the services. They serve the high quality of
customer satisfaction with the products or the services most of the time.
According to the consumer satisfaction theories (Oliver, 1997), what consumer wants is
associated with the firm’s high levels of performance.
In the study, the loyalty towards customers measured by the behavioral intention. This measure
was introduced and proven by the research (Zaithaml, Berry and Parasuraman, 1996). The user
level is high when the customer is satisfied. On the other hand, the user level is low when the
customer is not satisfied.
The supplier from which customer received positive or negative feeling has a vast influence.
Net value of services received by the supplier which can be either positive or negative
(Woodruff, 1997)
However, (Woodruff, 1997) argues that, customers thought exchange with their supplier and
imitates the overall feelings derived to the perceived value.
Based on the literature review (c.f. Bitner and Hubbert,1994; Bolton and Drew 1994; Gronroos
1993; Rust and Oliver 1994) reported that, marketing scholars are eluding by continuous
purchase intention which is significant concepts in the purpose of customers. This is evaluating
the relationship between customer satisfaction and the quality of the services by empirical way.
They have discovered that, customer satisfaction labels the service quality that creates further
purchase or revisit intension. The critical role of the service quality and consumer intention are
also described in their reviews.
The specific nature of the relationship between these two are impacted customer satisfaction as
in what manner they combine idea with each other (Gronroos 1993; Rust and Oliver 1994). After
all, the learning objective of that study is to examine the natural relationship between customer
satisfaction and service quality observation to judgement them properly in terms of consumer
substance.
The research objective is very important as they describe the affiliation for real management
which is very much important (Rust and Oliver,1994). On the other hand, how service quality
deceptive worldwide to satisfy customer highly to meet the corporate goal (Binter and
Hubbert,1994).
According to Bolton and Drew (1994), how customer satisfaction and service quality interact
with each other in establishment of consumer purchase is the key challenges of service marketing
as they develop a better considerate
Moreover, based on the literature review (Zeithaml, Berry, and Parasuraman, 1996) reported
that, when the conservancy of customer is increased, or customer defection is dropping than it
generates revenues. In a specific term, Zeithaml, Berry and Parasuraman (1966) suggested that
some points about customer satisfaction. The points are about the behavioral intentions which is
satisfactory related with the service providers capability. 1) be positive about them in term of
saying something, 2) mention them to other customer, 3) be loyal to them. (repurchase from
them), 5) spend extensive time with the company, 5) premium price should be paid. They have
trying to construct which is comparable to the report and marketing literature (cf., Babakus and
Boller, 1992; Cronin and Taylor, 1992). From very low to very high is the ranged for nine-point
Likert-type scale. 0.78 to 0.87 is the parameter of the estimation and from that 68% of variance
has extracted as an average. The other scale range between behavioral intention is 2 and 52% of
common variance.
Trust/Customer Satisfaction:
Trust refers to the customer’s level of confidence in a firm’s integrity and reliability[ CITATION
Jin131 \l 1033 ].Trust is build up by trusting in the reliability and honesty of one side to
other[ CITATION Erc12 \l 1033 ].Trust provides comfort to customers ,which in turn ,enhance the
efficiency and effectiveness of relational exchanges[ CITATION Jin131 \l 1033 ].
If there is any kind of service failure occurs the organization left with two options, either again
get the customer satisfaction, restore the loyalty or just ignore the situation and let the customers
go to the competitors. Satisfaction is the matter which is between the service provider and the
person who is taking the service, how their expectations meet is the most important thing here.
Satisfaction is mainly a positive attitude which develops after a good experience of product
consumption. It is the result of customer’s evaluations regarding the brand or product and the key
factor of their decision to repurchase[ CITATION Erc12 \l 1033 ].
they can create a positive image for sure and this will build the trust.
Relationship quality differs based on trust, satisfaction and commitment, researchers explain
them in a different way individually. Some researchers said that, trust, commitment or weakness
for any service are the main thing to create customer satisfaction. Some said that trust issues are
equally important as customer satisfaction. Customer satisfaction won’t be easy if there is no
trust among the customers. A customer who trust in the service will always be satisfied and keep
the commitment to stay with the service provider always.
On the other hand,[ CITATION Erc12 \l 1033 ] found satisfaction to be an antecedent to trust. Trust
and customer satisfaction are strongly related to each other as without trust customer satisfaction
won’t create in customers’ mind. According to this research it can be said that if the restaurant
can gain the satisfaction of their customers, they can achieve their trust too. So, trust has a
positive relation with customer satisfaction in restaurant industry.
Trust can create by believing in the loyalty and honesty of one party to another. Brand trust will
be established only when the customers express the belief by their consuming behavior. Since
trust establishes an important bond between brand and customers, it is one of the indicator of
brand loyalty.
Although the definition of customer satisfaction differs in the literature part, researchers
basically agree that an important element regarding customer satisfaction is an evaluation
process. Customer satisfaction described as a post choice evaluation judgement about a specific
purchase selection. These things imply that customer satisfaction is an overall judgement process
of the perceived experience of the price expectation and actual consumption experience, process
oriented approach has been widely adopted by numerous researchers and is regarded as an
effective way to measure the customer satisfaction[ CITATION Han09 \l 1033 ].
Customer satisfaction is a vital point in marketing because it is the most important and critical
job to satisfy a customers, meet the needs of them properly [ CITATION Han0914 \l 1033 ].Company
will get greater profit and sales revenue only when the customers keep visiting and purchase the
service from the organization[ CITATION Jar77 \l 1033 ].Studies prove that a good response of
customer satisfaction in a particular service industry always indicates a good relationship
between customer satisfaction and revisit intension[ CITATION Jan11 \l 1033 ].
When there is a high level of customer satisfaction the customers service switching percentage
decreases and satisfaction level increases automatically. Customers always give a positive
response when they are satisfied with the provided service. Their positive behavioral responses
and intensions display that they are satisfied. Customer tend to revisit when they are satisfied
with the environment[ CITATION Jin13 \l 1033 ] t.
However ,when customers experience anger and dissatisfaction, negative behavioral responses
such as switching to another service provider may occur[ CITATION Jin13 \l 1033 ].There are some
emotional attributes which directly or indirectly effect on the relationship between customer
satisfaction and revisit intention always develop an attitude about how a product or service
provider actually fulfilling their needs .For this attitude they will patronize the service ,they will
also use positive words with others about the service .
Early studies considered revisit intension to be the heart of commitment or loyalty[ CITATION
Jar77 \l 1033 ].Revisit intention can be present or absent in the matter of good attitude towards the
provider .The overwhelming number of studies of customer satisfaction outcomes in the service
industry indicates a positive relation between customer satisfaction and revisit intension.
Satisfied customers are more likely to refuse competitive offers and repurchase the product or
service from the current provider[ CITATION Han09 \l 1033 ].
These conceptual ideas all suggest that the main judgement decision of visiting a restaurant for
another time is totally depend on customer satisfaction[ CITATION Han0914 \l 1033 ] and that will
happen only when customers come out of a restaurant after having the food with a satisfied
mind. All these evidences provide a positive relationship between customer satisfaction and
revisit intention in the restaurant industry.
For many years, researchers and have been concerned about customer retention and switching.
Researchers have discovered that the total cost of bringing a new customer sixteen times greater
than retaining an old customer (Lindgreen et al., 2000), and customer switching has adverse
effects on organizations’ market share, profitability etc. in today’s competitive marketplace
(Ganesh et al., 2000; Keaveney, 1995; Reichheld and Sasser, 1990; Rust et al., 1995).
A restaurant is a place where excitement, satisfaction and a feeling of personal satisfaction are
experienced (Finkelstein, 1989). From the hospitality sector’s point of view, customers not only
want a certain quality of food, but alsowant to gain psychological satisfaction by emotional and
social interaction (Lashley, 2008; Levy, 2010).
So, the elements other than food which are important to the guest, and which triggers satisfaction
and revisit intention in restaurants, must be identified.
Though we don’t find any proper evidence which proves the influence of verity seeking tendency
with revisit intention. Because revisit intention is basically related with customer satisfaction and
how well the hospitality the restaurant provided to retain its customers.
QUESTIONAIRE
The following questionnaire asks questions about your experiences and opinions regarding
many aspects of a Restaurant you have visited last. Take your time and answer them truthfully as
per your ability. This survey is completely anonymous, and the data collected will not be shared
with anyone other than the course instructor as the purpose of this study is academic.
Strongly
Code Statement Disagree.......................................................Strongly
Agree
FQ 1 I think the restaurant
offers a variety of 1 2 3 4 5 6 7
menu items
FQ 2 I Think The restaurant
1 2 3 4 5 6 7
serves tasty food
FQ 3 I think the restaurant
offers freshly cooked 1 2 3 4 5 6 7
food.
SQ 1 1 I think food served
by the employees was
1 2 3 4 5 6 7
exactly as it was
ordered
SQ 2 I think the service was
quick provided by the 1 2 3 4 5 6 7
employees.
SQ 3 I think the employees
1 2 3 4 5 6 7
were ever helpful.
HV The experience was
1 pleasurable compare to 1 2 3 4 5 6 7
other things.
HV I feel exciting by trying
1 2 3 4 5 6 7
2 new items.
HV The joy of experience 1 2 3 4 5 6 7
3 is grater for me rather
than I had something to
Strongly
Code Statement Disagree.......................................................Strongly
Agree
eat.
PP 1 I feel I am getting good
food for a reasonable 1 2 3 4 5 6 7
price
PP 2 Food services provided
by this restaurant is
worth for me to 1 2 3 4 5 6 7
sacrifice some time and
efforts.
PP 3 Compared with other
restaurants, it is wise to 1 2 3 4 5 6 7
choose this restaurant
A1 The restaurant had
attractive decoration 1 2 3 4 5 6 7
Strongly
Code Statement Disagree.......................................................Strongly
Agree
best deal.
RI 2 I trust that there is a
bond between the 1 2 3 4 5 6 7
restaurant and me.
RI 3 I trust their food and
1 2 3 4 5 6 7
services.
T1 I will revisit this
restaurant in near 1 2 3 4 5 6 7
future
T2 I can ensure that I will
1 2 3 4 5 6 7
revisit this restaurant
T3 I would love to visit
this restaurant more 1 2 3 4 5 6 7
often.
VS 1 A new restaurant is
something I would be 1 2 3 4 5 6 7
eager to go.
VS 2 When I go to a
restaurant, I feel it is
1 2 3 4 5 6 7
safer to order dishes I
am familiar with.
VS 3 I like trying new
restaurants for getting
1 2 3 4 5 6 7
new experiences.
VS 4 When I eat out, I like
to try the most unusual
items the restaurant 1 2 3 4 5 6 7
serves. [CITATION RAJ80
\l 1033 ]
Hₐ: Service quality is positively related with customer satisfaction in restaurant industry.
Atmosphere/Customer satisfaction
Hₒ: Atmosphere did not affect customer satisfaction in restaurant industry.
Hₐ: Atmosphere affects customer satisfaction in restaurant industry.
Trust/Customer satisfaction
Ho-Trust is not related to customer satisfaction in restaurant industry.
Ha-Trust is positively related with customer satisfaction in restaurant industry.
Here,
Y= Customer satisfaction Bi= coefficients
X1= Service Quality(SQ) A= Constant
X2= Perceived Price(PP)
X3= Atmosphere(A)
X4= Utilitarian Value(UV)
X5= Heading Value(HV)
X6= Food Quality(FQ)
So, the proposed regression will be
Y (customer satisfaction) = A + b1*x1(SQ) + b2*x2(PP)+ b3*x3(A) + b4*x4(UV)+ b5*x5(HV)
+ b6*x6 (FQ)
Conclusion:
As we are working on the proposal for predicting customer satisfaction and revisit intention in
the restaurant industry, we find out that there are several factors that affect the customers revisit
intention and customer satisfaction. They are- Food quality, service quality of the restaurants, the
atmosphere of the restaurant, trust, perceived price, the hedonic value, the physical evidences
and the utilitarian values and so on. If the consumer is not satisfied with any of these factors, the
revisit intention of that consumer rate goes down. Again, the consumer can spread bad word of
mouth. That can affect the restaurant’s image. If the consumer experience a good quality service
that person will also spread word of mouth. But that will be in a positive manner.
Through that customer restaurant will get more customers. Also, that satisfied customer will
revisit that restaurant and became a loyal customer. Here we also proposed a questionnaire
through that we will find out the responses of the customers about their want from a restaurant.
The minor things can impact a lot in the consumers’ mind that is also specified here. Here we
consider customer satisfaction and revisit intention as dependent variable. To support those
variables, we consider both local and international market’s data. After that we took the
secondary support from the research papers and made a draft questionnaire for the survey. We
will use that questionnaire if we conduct any survey based on the topic.
From the discussions we got some hypothesizes. We tried to prove those hypotheses with the
data and finally got a regression equation. Our main purpose of that report was to find out if the
above-mentioned factors are affecting the customer satisfaction and customer revisit intention or
not. We try to figure out that and concluded that yes most of the factors are positively affecting
the customer satisfaction and revisit intention. So before starts a restaurant owner should focus
on those minor but important factors.
LIST OF REFERENCES
Does Food Quality Really Matter in Restaurants? Its Impact on Customer Satisfaction
and Behavioral Intentions - Young Namkung, SooCheong Jang, 2007. (2018). Retrieved
from http://journals.sagepub.com/doi/abs/10.1177/1096348007299924
Ryu, K., Lee, H., & Gon Kim, W. (2012). The influence of the quality of the physical
environment, food, and service on restaurant image, customer perceived value, customer
satisfaction, and behavioral intentions. International Journal of Contemporary Hospitality
Management, 24(2), 200-223. doi: 10.1108/09596111211206141
Ha, J., & Jang, S. (2010). Effects of service quality and food quality: The moderating role
of atmospherics in an ethnic restaurant segment. International Journal of Hospitality
Management, 29(3), 520-529. doi: 10.1016/j.ijhm.2009.12.005
Ha, J., & (Shawn) Jang, S. (2010). Perceived values, satisfaction, and behavioral
intentions: The role of familiarity in Korean restaurants. International Journal of
Hospitality Management, 29(1), 2-13. doi: 10.1016/j.ijhm.2009.03.009
Ercis, A. (2012). The effect of brand satisfaction,trust and brand commitment on loyalty and
repurchase intensions. Elsevier Ltd., 1395-1404.
Han, H. (2009). The Role of the Physical Environment,Price Perception,and Customer Satisfaction
in Determining Customer Loyalty in the Restaurant Industry. Journal of Hospitality & Tourism
Research, 487-510.
Jani, D. (2011). Investing the key factors affecting behavioral intensions. International Journal of
Contemporary Hospitality Management, 1000-1018.
Jarvis, L. (1977). True Vendor Loyality or Simply Repeat Purchase Behavior? Industrial Marketing
Management, 9-14.
Lam, L. (2011). Does the look matter?The impect of casino servicescape on gaming customer
satisfaction,intension to revisite,and desire to stay. International Journal of Hospitality
Management, 558-567.
Ercis, A. (2012). The effect of brand satisfaction,trust and brand commitment on loyalty and
repurchase intensions. Elsevier Ltd., 1395-1404.
Han, H. (2009). The Role of the Physical Environment,Price Perception,and Customer Satisfaction
in Determining Customer Loyalty in the Restaurant Industry. Journal of Hospitality & Tourism
Research, 487-510.
Jani, D. (2011). Investing the key factors affecting behavioral intensions. International Journal of
Contemporary Hospitality Management, 1000-1018.
Jarvis, L. (1977). True Vendor Loyality or Simply Repeat Purchase Behavior? Industrial Marketing
Management, 9-14.
Lam, L. (2011). Does the look matter?The impect of casino servicescape on gaming customer
satisfaction,intension to revisite,and desire to stay. International Journal of Hospitality
Management, 558-567.
BAKER, S. A. (1994). An assesment of the relationship between service quality and customer
satisfaction in the formation of consumers' purchase intentions. Retrieved from
http://files.isec.pt/DOCUMENTOS/SERVICOS/BIBLIO/Documentos%20de%20acesso%20remoto/
An_assessment_of_the_relationship_between_service_quality_and_customer_satisfaction_in_t
he_formation_of_consumer_purchase_intentions.pdf
STEVEN A. TAYLOR & THOMAS L. BAKER. (1994). An assesment of the rekationship between
service quality and customer satisfaction in the formation of consumers' purchase intentions.
Journal of retailing, 70(2).
Wansoo Kim, Myong Jae Lee. (2011). ELSEVIER. Retrieved from International Journal of Hospitality
Management: http://novintarjome.com/wp-content/uploads/2015/01/The-impact-of-
advertising-on-patrons%E2%80%99-emotional.pdf
Wansoo kim, MyongJae Lee. (2011). International Journal of Hospitality Management. The impact of
advertising on patrons’ emotional responses, perceived value, and, 30(689-700).