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Importance of Service Quality in

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Junaid Aftab, Entrepreneurship and Innovation Management Journal ISSN: 2310-0079

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Entrepreneurship and Innovation Management

Journal
Volume 4, Issue 4 e-ISSN: 2311-1836
p-ISSN: 2310-0079
November, 2016
Pages: 161-171

Importance of Service Quality in Customer Satisfaction

(A Study on Fast Food Restaurants)

Junaid Aftab1*, Huma Sarwar1, Qurrat-ul-ain Sultan1, Maryam Qadeer1

1. COMSATS Institute of Information Technology, Islamabad, Pakistan.

Fast food business has become a highly revenue generated industry in all over the world. Service quality
plays a vital role to make the customers happy and insists them to revisit the restaurant. This research was
carried out to clear the importance of service quality in customer satisfaction in fast food restaurants of
Punjab, Pakistan. To clear this idea, five dimensions (tangibility, reliability, empathy, assurance and
responsiveness) of service quality have been taken as predictor variables while customer satisfaction was
taken as dependent variable. A survey was conducted on customers of fast food restaurants by using cluster
sampling. The collected data was transferred to statistical package of social sciences (SPSS) for data
analysis. The outcomes revealed that service quality is positively influenced on customer satisfaction in fast
food restaurants of Punjab, Pakistan. The results showed how to enhance customer’s satisfaction and make
them loyal and also how to increase their revenue by improving service quality.

Keywords: Service quality, Customer satisfaction, Fast food restaurants, Pakistan

INTRODUCTION
The growth of fast food industry is playing an important purpose, many improved and innovated services are
role in the economy of Pakistan. Fast-food industry has provided by the organizations as a result of
become the fundamental service sector whose globalization, economic and financial deregulation,
internationalization and growth has become significant government policies, and many advanced technologies.
(Woodman, 1980; Chaudhry, 1995). Fast food industry To remain competitive, many organizations have
in Pakistan is interested in global market in order to provided diverse range of services (Hinson et al., 2006).
grow and maintain competitive advantage. Fast food Customer satisfaction is important for every sector.
restaurants such as KFC, McDonald’s, Wendy’s and Customer satisfaction has a significant link with
Domino’s have developed and enlarged their working to profitability and service quality (Cronin & Taylor 1992;
many foreign countries. Restaurants focus on their Anderson, Fornell & Lehman, 1994).The concept of
services which they provide to their customers for customer satisfaction has been evolved over the years. It
growing and sustaining in competitive market. For this is process of satisfaction that allows the firms to enhance

*Corresponding author: Junaid Aftab

COMSATS University, Department of Management Sciences, Pakistan.
E-Mail: Junaidaftab@rocketmail.com
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their reputation effectively and efficiently. So, service to the decisions of the customers either to buy the
quality and customer satisfaction are the key elements of service and product or not. Perceived service quality has
an organization. Organizations that give prevalent become a key construct of customer satisfaction in fast
service quality have satisfied customers more than the food restaurants of Pakistan. It has been observed that
firms who do not provide service quality (Gilbert & service quality is the key determinant component of
Veloutsou, 2006; Gilbert et al., 2004). customer satisfaction (Parasuraman et al. 1988; Spreng
& Mackoy, 1996). Quality of service is not only a key
Customer satisfaction is affecting repurchase goals and component of customer satisfaction in manufacturing
behaviors. In addition to this profit and revenue of the industries but also in today’s emerging service sector
organizations also depend upon customer satisfaction. (Karim & Chowdhury, 2014). Parasuraman et al. (1994)
There is less literature available that address the explained the gap between what customers feel to be
customer satisfaction and quality of the services offered and what is delivered is known as quality. In his
provided by the organizations, in fast-food restaurants model, he measured the gap between expected and
(FFRs) (Gilbert et al., 2004; Qin & Prybutok, 2008). perception of service among the customers (Ghost &
Studies are limited and do not explain the significant Gnanadhas, 2011). High service quality will improve
association between customer satisfaction and service customer satisfaction, give a firm an edge in the market
quality. In creating a repetitive and satisfied customer, share and attract profit (Hossan, 2012). Parasuraman et
service quality plays a vital role. Customer satisfaction is al. (1994) contended that the SERVQUAL scale using
calculated through the productivity and profitability the expectations/performance gaps method is an
level of the organizations, and the organizations should acceptable and richer way of measuring service quality.
focus on the profitability and productivity level It is a model that is often utilized for quantifying
(Anderson & Rust, 1997). This research will help the customer service and perceived satisfaction in industries
management of fast food restaurants to provide best that are more service oriented in their daily tasks
services to their customers by improving service quality (Timothy, 2012). Due to the increasing importance of
dimensions. service sector in the economy, the measurement of
Research Objectives service quality began to be an interest factor for the
individuals of this field (Ghost & Gnanadhas, 2011). The
This research is performed to clarify the importance of SERVQUAL model is used to assess consumers’
service quality in customer satisfaction. It has the perceptions of the identified five dimensions of service
following objectives quality (tangibles, responsiveness, empathy, assurance
1. To determine and evaluate the importance of service and reliability) relative to customers’ satisfaction. Now-
quality dimensions such as tangibility, reliability, a-days, service quality is gradually becoming a big part
empathy, assurance and responsiveness in fast food of many organizations’ regionally, nationally and
restaurants. globally. It is considered the main factor of revenue
2. To analyze the relationship among service quality streams. According to Spohrer and Maglio (2008)
dimensions and customer satisfaction in fast food organizations require reliable techniques of assessment,
restaurants. measurement and improvement.
Service Quality
LITERATURE REVIEW Responsiveness is characterized as the extent to which
Service quality (SQ) is defined as the difference between service providers are willing to accommodate clients and
expectations of customers and perception regarding provide timely service. Eagerness to assist clients and
services provided by the firms. Service quality can be offer quick service is known as responsiveness
clarified as how well the services are provided to the (Armstrong, 2012). Providing service in a timely manner
consumer’s desires. Customer satisfaction and service is highly appreciated by customers. Good service
quality are interconnected (Shi and Su, 2007). providers understand this aspect (Iqbal et al., 2010).
Parasuarman and Berry (1988) stated that SQ is related Customer satisfaction may be achieved in the fast food

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restaurants when employees are willing to assist their found that customer satisfaction relies on how products
customers when required. Responsiveness is positively and services meet or surpass client expectation.
related to customer satisfaction and customers can refer According to Deng et al. (2009), the capability of a
others if satisfied (Akbaba, 2009). Empathy is service provider to create satisfaction of high degree and
characterized as the extent to which the customers are it is significant for product differentiation and setting up
offered caring and individualized consideration. strong relationship with customers. Mohsan et al. (2011)
Armstrong (2012) concluded that individualized demonstrated that customer satisfaction plays a very
attention and caring, offered by a firm to its clients is critical part for their retention but it does not guarantee
known as empathy; moreover employee and customer repeat purchase. One of the crucial components which
interactions are showed through the empathy dimension. influence the customers’ satisfaction is the quality of
When we consider empathy in fast food restaurants the service (Timothy, 2012). At the point when service
following services come in mind. For example quality is raised, it will prompt to customer satisfaction
convenient restaurants location, availability of utensils, that will result in great business outcomes (Nilsson et
completely packaged food and convenient operating al., 2001). According to Hossan (2012) customer
hours etc. Toosi and Kohonali (2011) recommended that satisfaction is a vital component in positioning a firm’s
service provider organizations must try to understand the performance. Hunt (1977) stated that satisfaction is an
situation from customer’s perspective in order to get a assessment that an ‘experience was good as it was
clear picture of what is actually happening. Assurance is perceived to be’. Mittal and Kamakura (2001) found
characterized as the extent to which service providers are customer satisfaction is a vital part in development of
proficient, polite, and able to inspire trust & certainty. customer’s desires for future purchase. Sureshchandar et
Assurance implies in restaurants as very mannered, al. (2002) found that there is a two-way connection
knowledgeable & friendly employees and also feel safe among service quality and satisfaction. Both service
when make financial transactions by customers. quality and product are commonly noticed as a basic
Tangibility is characterized as the extent to which prerequisite for satisfying and retaining esteemed
physical facilities, equipment, and appearance of work customers (Muslim & Zaidi, 2005). Only satisfied
force are adequate. Modern looking equipment, well customers talk about their good experiences in
dressed workers, physical facility and materials are restaurants.
apparently appealing, included in tangibility of fast food
Bloemer (1999) proposed a model to show the
restaurants. According to Narangajavana and Hu (2008)
association among customer satisfaction and service
to acquire improvement in service quality, there is a
quality that significantly affect customer loyalty. He
need to emphasis on tangible and intangible assets.
proved that service quality directly affect the customer
Reliability is characterized as the extent to which a
satisfaction. According to Caruana (2002) customer
guaranteed service is performed reliably and precisely.
satisfaction is a very important factor for purchasing
According to Armstrong (2012) ability to perform the
goods. His finding showed that customer satisfaction has
promised service dependably and precisely is known as
mediating effect on service quality and customer loyalty.
reliability. Reliability shows the service provider’s
Liljander and Strandvik (1993) suggested that
capacity to perform services in a dependable and
experience of the customer is not necessary for service
accurate manner (Safwan et al., 2010). Reliability in
quality. Their studies showed that knowledge is the main
restaurants referred as providing service as promised,
variable and factor for the evaluation of service.
on-schedule food delivery and fair charges for food. It is
However, satisfaction is the inner perception of
noticed that being reliable is an exceptionally vital
customers that is gained by their experience from the
quality to have, particularly in the fast food industry.
service provided by the service provider. Sureshchandar
Customer Satisfaction et al. (2002) also proved two-way and significant
association among satisfaction and service quality. Hanif
Customer satisfaction can be interpreted as the feeling
et al. (2010) proposed in their study that satisfaction and
that an individual experiences, when an offered service
the factors that affect the customer satisfaction has
come across to their expectations. Kotler et al. (2000)

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become the key area of thrust in the world. Customer “not important” (Nimp). Demographic items included
satisfaction is the core component of any organization; gender, age and preferred restaurants etc. The target
they try their best to satisfy the customers using different population was customers of different fast food
means. restaurants of Punjab, Pakistan.
Research Model The restaurant managers were contacted to help us in
completing the survey. After their consent, the
The research model of this research was taken from
questionnaires were distributed among the customers of
previous research of Parasuraman et al. (1985). There -
restaurants. An aggregate of 190 questionnaires were
were five hypotheses suggested for this research and distributed among customers of fast food restaurants in
they are given below major cities of Punjab through cluster sampling. But
H1: There is positive link between tangibility and only 139 were got back. However, 122 were usable with
customer satisfaction in fast food restaurants of Pakistan. response rate of 64.2%.

H2: There is positive link between reliability and

customer satisfaction in fast food restaurants of Pakistan. ANALYSIS AND INTERPRETATION
H3: There is positive link between assurance and Reliability coefficient
customer satisfaction in fast food restaurants of Pakistan.
After data collection, we checked the internal reliability
H4: There is positive link between empathy and of data through cronbachs’ alpha. Previous researches
customer satisfaction in fast food restaurants of Pakistan. concluded that if the value of alpha is equal or greater
H5: There is positive link between responsiveness and than 0.7 than it would be considered good. The results of
customer satisfaction in fast food restaurants of Pakistan. cronbachs’ alpha of this research is shown in table 1

FIGURE 1 HERE TABLE 1 HERE

Here the outcomes showed that tangibility has the
highest value of α=0.935. All the other variables have
METHODOLOGY very good value of cronbachs’ α reliability which is
Self-administered questionnaire was preferred on other greater than 0.850. So, all the six variables have
data collecting techniques. The main reason for carrying excellent internal reliability.
this research was to reveal the importance of service Demographic Profile
quality in customer satisfaction in fast food restaurants.
As the table 2 shows the respondents profile; the
In order to find the linkage between five predictor
outcomes depict that out of 122 respondents 76(62.29%)
variables (tangibility, reliability, empathy, assurance and
were males and 46(37.71%) were females. Age of
responsiveness) and criterion variable customer
respondents divided them into four groups’ i.e.
satisfaction, a survey was conducted in the months of
20(16.4%) respondents were less than 18 years of age
April-May, 2016 by using questionnaire.
category, the highest no of respondents 70(57.4%) were
There were two parts of questionnaire. Part 1 was belonged to 18-35 years of age group, 25(20.25%) were
consisted on items of research instruments while part 2 belonged to 36-50 years of age group and 7(5.7%) were
was consisted on items of demographic information. The existed under 51 and above years of age group.
four items of dependent variable customer satisfaction
were taken from previous research of (Olorunniwo et al., TABLE 2 HERE
2006) and 21 items of predictor variables service quality When we asked to the customers that how frequently
(tangibility, reliability, empathy, assurance and you visit the fast food restaurants than 53(43.4%)
responsiveness) were taken from (Cronin & Taylor, responded once in a month, 18(14.8%) replied once in a
1992). All the items were treated on 5-point likert scale week, 29(23.8%) came to fast food restaurant twice in a
where 1 shows “very important” (Vimp) and 5 shows month and 22(18%) responded more than twice a month.

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The customers preferred restaurants were as follow, The coefficients table showed the following outcome as
26(21.3%) customers preferred KFC, Pizza-Hut was shown in table 6. Here we can see that all the
chosen by 17(13.9%) customers, Burger king was first independent variables have positive influence on
choice of 26(21.3%) customers, McDonalds preferred by dependent variable i.e., customer satisfaction.
25(20.5%) customers, 12(9.8%) customers said that they Tangibility has the strongest influence on customer
love to come subway for meal and 16(13.1%) customers satisfaction as (β=0.690, t-value=9.788 at p-value=0.00).
preferred other local and international fast food It means that customer satisfaction is highly influenced
restaurants. by the sitting environment, seating and parking
availability and well-dressed staff. Management should
give special importance to tangibility when manage their
Correlation restaurants.
Correlation values lie from -1 to 1. Correlation among TABLE 6 HERE
the five predictor variables and customers’ satisfaction
as criterion variable was checked. We concluded that all Responsiveness is one of the main dimension of service
the five independent variables have strong correlation quality as results showed that (β=0.625, t-value=7.419 at
with customer satisfaction. p-value=0.00). It shows customer always need prompt
response and help from restaurant’s employees. Also,
TABLE 3 HERE customers like to know the exact time of food delivery.
As the outcomes showed that tangibility has highest So, if you want to make your customers satisfy than be
level of correlation (r=0.868) and all the other honest to them. Similarly, reliability, assurance and
independent variables have also strong correlation with empathy have values (β=0.230, t-value=2.891 at p-
customer satisfaction like reliability (r=0.586), empathy value<0.05), (β=0.268, t-value=4.238 at p-value=0.00)
(r=0.683), assurance (r=0.499) and responsiveness and (β-0.307, t-value=5.170 at p-value=0.00)
(r=0.738). All are significant at 0.01 respectively. Outcomes depicted that the reliability,
assurance and empathy considerably influence customer
Multiple Regression Analysis satisfaction. Customers of fast food restaurants give
When we applied multiple regression analysis to find out special consideration to location and working hours of
the influence of service quality on customer satisfaction restaurants more concisely if it is easily reachable and
in fast food restaurants of Pakistan, we got the following remain open for desirable working hours. Furthermore,
outcomes as shown in table 4 reliable and friendly employees, assured and on schedule
delivery of services increase satisfaction of customers.
TABLE 4 HERE
These things can never be ignored in fast food
The results of model summary showed that 78.3% restaurants because satisfied customers are real asset of
changes in dependent variable customer satisfaction are any business and we cannot afford to lose our premier
due to these five dimensions of service quality i.e. asset. The outcome of this research matches with the
(Responsiveness, Assurance, Empathy, Tangibility, results of previous researches by Qin and Prybutok,
Reliability) as R-square is equal to 0.783. 2008 and Lee et al., 2005. Hence, from above results and
discussion we can conclude that all hypotheses have
The ANOVA output illustrated in table 5 and we found
been accepted.
that F-value is equal to (23.489/.280=83.892) at (p-value
equals to 0.00). By use of the F-table,
the F (5%, 5, 116) tabulated was 2.918 which was
less than F= ±83.892 which reinforced that fact that
CONCLUSION
the model was statistically significant. So, we can Service quality is considered as dire success factor of
conclude that model is statistically significant. fast food restaurants. The management of restaurants
needs continuous improvements in service quality to get
TABLE 5 HERE
optimum customer satisfaction. The purpose of this

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research is to investigate the importance and relationship results showing tangibility which influence customer
between service quality dimensions and customer satisfaction to a greater extent as compare to other
satisfaction in fast food restaurants of Pakistan. By dimensions of service quality. Customers attract more
viewing results it can be concluded that more the towards restaurant’s ambience, fine dining and location.
services are tangible, greater will be the perceived value The dimension ‘responsiveness’ also holds a significant
resulting in customer satisfaction. ‘First impression is portion in customer satisfaction as every single diner
the last impression’ this statement holds true with the needs prompt response to their order which ultimately
gives ‘assurance’ for future dine-ins. This research also Pakistan, the outcomes are not universal and might not
revealed that customer satisfaction is being influenced be considered as the outcome of all over Pakistan. In
by reliability and empathy from service providers. Fast future, researchers will increase the sample size to make
food restaurants of Pakistan are now in a need to provide the outcomes more universal. Also, researchers will
quality services under the umbrella of identified introduce new variable i.e. customer loyalty and the
dimensions in order to get their customers satisfaction. mediating effect to make it more interesting.

Limitation & Future Plan

As the research was conducted on fast food restaurants
of was conducted on fast food restaurants of Punjab
Deng, Z., Lu, Y., Wei, K. K., & Zhang, J. (2010).
Understanding customer satisfaction and loyalty:
An empirical study of mobile instant messages in
China. International journal of information
management, 30(4), 289-300.
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APPENDIX

Table 1

Cronbachs’ Alpha
Variables No of Items Cronbach’s Alpha
Customer Satisfaction 4 0.899
Tangibility 5 0.935
Reliability 4 0.879
Assurance 4 0.857
Empathy 3 0.886
Responsiveness 5 0.900

Table 2

Demographic Information (N=122)

Demographic Variables Frequency Percentage %
Gender
Male 76 62.29
Female 46 37.71
Age
Less than 18 20 16.4
18-35 70 57.4
36-50 25 20.25
51 and above 7 5.7
Frequency of visit
Once in a week 18 14.8
Once in a month 53 43.4
Twice in a month 29 23.8
More than twice a month 22 18.0
Preferred restaurant
KFC 26 21.3
Pizza Hut 17 13.9
Burger King 26 21.3
McDonalds 25 20.5
Subway 12 9.8
Others 16 13.1

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Table 3
Table 3: Correlations
Variables CS TAN REL ASS EMP RES
Customer Satisfaction 1
Tangibility .868** 1
Reliability .586** .519** 1
Assurance .499** .476** .510** 1
Empathy .683** .717** .411** .528** 1
Responsiveness .738 **
.771 **
.533** .419** .779** 1
**. Correlation is significant at the 0.01 level (2-tailed).

Table 4
Table 4: Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .885a .783 .774 .28915
a. Predictors: (Constant), Assurance, Responsiveness, Empathy, Reliability, Tangibility

Table 5
Table 5: ANOVA
Model Sum of Squares Df Mean Square F Sig.
1 Regression 117.447 5 23.489 83.892 .000
Residual 32.480 116 .280
Total 149.926 121
a. Dependent Variable: Customer Satisfaction
b. Predictors: (Constant), Reliability, Assurance, Responsiveness, Tangibility, Empathy

Table 6
Table 6: Coefficients
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .268 .232 3.368 .000
Tangibility .713 .073 .690 9.788 .000
Reliability .256 .054 .230 2.891 .041
Assurance .331 .057 .268 4.238 .000
Empathy .339 .062 .307 5.170 .000
Responsiveness .657 .611 .625 7.419 .000
a. Dependent Variable: Customer Satisfaction

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p-ISSN: 2310-0079, e-ISSN: 2311-1836
Volume: 4, Issue: 4, Pages: 161-171

Figure 1

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