scholarly journals Antecedents and consequences of fast-food restaurant customers' perception of price fairness

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gurmeet Singh ◽  
Neale J. Slack ◽  
Shavneet Sharma ◽  
Asheefa Shaheen Aiyub ◽  
Alberto Ferraris

PurposeThis study examines the influence of service quality dimensions (food quality, physical environment quality and employee service quality) and brand image of fast-food restaurants on price fairness and its consequence on customer retention.Design/methodology/approachThis survey collected 331 responses using the public intercept method. Data analysis involved performing confirmatory factor analysis (CFA) on the measurement model, followed by structural equation modeling. Moderation analysis was performed using SPSS (model1 in process macro), while mediation was performed using model 4 in process macro.FindingsEmpirical results of this study revealed the positive effect of restaurant service quality dimensions on price fairness and price fairness on customer retention. It also revealed that brand image strengthened the restaurant service-quality/price fairness interrelationship, and that customer satisfaction partially mediated the price fairness/customer retention interrelationship.Research limitations/implicationsFindings of this study are useful to marketers and fast-food restaurateurs in establishing the right combination of service quality dimensions and brand image that increase perceptions of price fairness and increase customer satisfaction and retention.Originality/valueThis study contributes to advancing the theoretical foundations of customers' perceived price fairness and retention research, specifically in the understudied fast-food sector of emerging economies. It extends the application of the equity theory to expose the direct and indirect influences on customer perceived price fairness and customer retention. The findings provide a better understanding of price fairness perceptions.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Neale J. Slack ◽  
Gurmeet Singh ◽  
Jazbeen Ali ◽  
Reshma Lata ◽  
Karishma Mudaliar ◽  
...  

PurposeThe purpose of this study is to investigate the effect of fast-food restaurant service quality (compound effect of food quality, physical environment quality and employee service quality) and its dimensions (when acting independently) on customer perceived value, satisfaction and behavioural intentions.Design/methodology/approachData was collected from 400 fast-food restaurant customers in Fiji using a public-intercept survey. The study used descriptive and inferential analysis. This research also used backward elimination multiple regressions to test the hypotheses of this study.FindingsThe compound effect of fast-food restaurant service quality dimensions on customer perceived value revealed food quality and physical environment quality are significant determinants of customer perceived value, however employee service quality is not. In contrast, the effect of the fast-food service quality dimensions acting independently on customer perceived value revealed the three dimensions are significant determinants of customer perceived value. Results also confirmed that customer perceived value is a significant determinant of customer satisfaction and customer satisfaction is a significant determinant of behavioural intentions.Research limitations/implicationsThis study highlights to fast-food restaurateurs and marketers the importance of determining the compound effect of fast-food restaurant service quality dimensions, delivering the right combination of fast-food restaurant service quality dimensions to customers and not singling out dimensions in an attempt to enhance restaurant service quality.Originality/valueThis study makes important contributions towards understanding the compound effect of fast-food restaurant service quality dimensions and the independent effect of these dimensions on the formation of customer perceived value, customer satisfaction and behavioural intentions.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gurmeet Singh ◽  
Neale Slack ◽  
Shavneet Sharma ◽  
Karishma Mudaliar ◽  
Suman Narayan ◽  
...  

PurposeThis study aims to simultaneously examine the interrelated influence of antecedents involved in developing fast-food restaurant customer loyalty. A conceptual model which incorporates service quality attributes, price fairness, customer satisfaction, brand image and trust and the resultant effect on customer loyalty is proposed to better understand how fast-food restaurant customer loyalty can be optimized.Design/methodology/approachA quantitative research methodology adopting structural equation modelling was used to understand the interrelatedness and influence of antecedents involved in optimizing fast-food restaurant customer loyalty.FindingsThe findings indicate that service quality attributes (food quality and employee service quality) and price fairness significantly influence customer satisfaction and brand image, while physical environment quality has no significant influence. Additionally, customer satisfaction was found to influence brand trust and customer loyalty, while the brand image does not influence customer satisfaction but does influence brand trust and customer loyalty.Practical implicationsUnderstanding the interrelatedness and influence of antecedents involved in developing fast-food restaurant customer loyalty would enable academics and practitioners to formulate honed marketing and operational strategies to optimize customer loyalty and fast-food restaurant profitability.Originality/valueThis research addresses the paucity of research and marketing gaps regarding the interrelatedness and influence of antecedents involved in optimizing fast-food restaurant customer loyalty in Small Island Developing States (SIDS).


2020 ◽  
Vol 14 (3) ◽  
pp. 317-328
Author(s):  
Zoya Wajid Satti ◽  
Samreen Fahim Babar ◽  
Shagufta Parveen ◽  
Kashif Abrar ◽  
Asma Shabbir

Purpose This study aims to investigate the role of moderated mediation between innovation in service quality and customer loyalty in the hospitality industry for potential entrepreneurs in the hospitality industry. Design/methodology/approach The authors have collected data from customers of the hospitality industry of significant cities of Pakistan using 362 structured questionnaires. Structural equation modelling was used to find out moderated mediation between innovation in service quality and customer loyalty in the hospitality industry for potential entrepreneurs in the hospitality industry. Findings The results showed that the role of customer satisfaction as a mediator and the role of perceived price fairness as a moderator between service quality and customer loyalty is statistically significant. Customers are influenced by price, and it leads to their satisfaction in the hospitality industry. Research limitations/implications The results of this study can be used by managers of the restaurant industry to enhance customer loyalty by focusing on customer satisfaction and perceived price. Originality/value The evidence documented in this paper is first known to measure the role of a mediator and moderator between service quality and customer loyalty for potential entrepreneurs. This paper will add to the literature of service quality in the hospitality industry concerning the role of customer satisfaction and perceived price fairness for future and potential entrepreneurs.


2019 ◽  
Vol 11 (3) ◽  
pp. 131
Author(s):  
Anas Hidayat ◽  
Aprilia P. Adanti ◽  
Arief Darmawan ◽  
Alldila N. A. Setyaning

This paper aims to analyze the influence of customer satisfaction and customer loyalty toward the local fast food restaurant in Indonesia. The variables involved in this study were perceived service quality, perceived product quality, perceived price fairness, customer satisfaction, and customer loyalty. Samples of this study were customers of the local fast food restaurant in Yogyakarta. Quantitative method is used to analyze the relationships within variables. This research examined 200 respondents by spreading the online questionnaires that were analyzed by using Structural Equation Model method. To collect the data, this study used convenience sampling method. The results show that perceived service quality, perceived product quality, and perceived price fairness had a positive and significant influence on customer satisfaction. Also, perceived service quality, perceived product quality, and perceived price fairness had a positive and significant influence on customer loyalty. Finally, customer satisfaction has a positive and significant influence on customer loyalty. Perceived price fairness was the highest influence on Indonesian consumers for being loyal to the local fast food restaurants.


2015 ◽  
Vol 33 (4) ◽  
pp. 404-422 ◽  
Author(s):  
Vinita Kaura ◽  
Ch. S. Durga Prasad ◽  
Sourabh Sharma

Purpose – The purpose of this paper is to examine the extent to which service quality, perceived price and fairness and service convenience influence customer satisfaction and customer loyalty for Indian retail banking sector. It further explores the role of customer satisfaction as mediating variable between service quality dimensions, perceived price and fairness, service convenience dimensions and customer loyalty. Design/methodology/approach – A cross-sectional research on 445 retail banking customers through questionnaire is conducted. Population of study is valued retail urban customers of banks in Rajasthan, India, who frequently visit bank premises for transactions, have accounts in at least two banks and have availed of at least one information technology-based services. Responses are analyzed using factor analyses and regression analyses. Findings – Results reveal that service quality dimensions, perceived price and fairness and service convenience dimensions have positive impact on customer satisfaction and customer loyalty. Moreover, customer satisfaction acts as mediating variable between its antecedents and customer loyalty. Research limitations/implications – This study has taken into account a specific category of retail banking customers. Thus, it limits generalization of results to other banking population. Practical implications – This study explains the importance of customer satisfaction for achieving customer loyalty for Indian retail banking sector. Originality/value – The paper underlines the importance of customer satisfaction for achieving customer loyalty. Impact of SERVCON dimensions on customer loyalty is found rare in literature.


2014 ◽  
Vol 29 (3/4) ◽  
pp. 237-260 ◽  
Author(s):  
Ashutosh Dixit ◽  
Kenneth D. Hall ◽  
Sujay Dutta

Purpose – The purpose of this paper is to investigate the influence of price attribute framing and factors such as urgency and perceived price fairness on customer willingness to pay (WTP) in automated retail settings. Design/methodology/approach – The authors conducted two sets of quasi-experimental scenarios surrounding vending-machine purchase decisions. The first set was analyzed with MANOVA, the second set with choice-based conjoint (CBC) analysis. Findings – When prices are framed positively (as a discount), customer WTP is higher at high published price levels than it is for unframed or negatively framed prices. The effect on WTP holds whether the reference price range is broad (few large increments) or narrow (numerous small increments). In the CBC scenarios, immediate availability of the product was most influential on choice, followed by price and brand effects. These findings held under conditions invoking both urgency and price fairness. Providing an explanation for higher prices increases perceived price fairness. Research limitations/implications – Further study might assess the presence or absence of interaction effects in the conjoint scenarios. Practical implications – Managers should consider transparency in dynamic pricing, particularly when the price change is outside the control of the firm. The conjoint scenario results also offer evidence that dynamic pricing will not impact other marketing-mix decisions for fast-moving consumer goods (FMCG) dramatically (availability at point of purchase and presence in the consumer consideration set remain strong influences on choice). Social implications – Understanding these effects on WTP could help managers manage perceptions of unfairness and optimize WTP. Originality/value – A theoretical contribution from this study is that the immediate loss/gain consideration under theories of decision making under uncertainty outweigh considerations such as scarcity urgency or perceived unfairness. Use of conjoint analysis in WTP research, study of dynamic pricing in FMCG setting.


2015 ◽  
Vol 7 (2/3) ◽  
pp. 152-169 ◽  
Author(s):  
Gerson Tontini ◽  
Júlio Cesar da Silva ◽  
Eliane Fátima Strapazzon Beduschi ◽  
Elis Regina Mulinari Zanin ◽  
Margarete de Fátima Marcon

Purpose – The purpose of this paper is to consider the nonlinear impact of online retail stores’ quality dimensions on general customer satisfaction and loyalty. Design/methodology/approach – Using a quantitative approach, 429 online users answered a closed questionnaire regarding their present satisfaction with 26 service attributes, their general satisfaction and loyalty. Using factorial analysis with Varimax rotation, five service-quality dimensions are studied: service accessibility/speed, fault recovery, buying reliability, service and site flexibility and site interaction/feedback. Penalty and reward contrast analysis identifies the Kano model classification of the service-quality dimensions, and the nonlinear impact of these dimensions, and customer satisfaction, on customer loyalty. Findings – The results show that there is a nonlinearity between quality dimensions, customer satisfaction and loyalty. The dimension “service accessibility/speed” has a one-dimensional impact on customer satisfaction, but with higher reward impact than penalty impact. “Fault recovery” is a “must-be”, “buying reliability” and “service flexibility” are “attractive” and “site interaction/feedback” is one-dimensional. Besides, the dimension “service accessibility/speed” has also a direct impact on loyalty if achieving above-average performance, thus reinforcing general customer satisfaction. Originality/value – Few previous papers explore this nonlinearity in online retail services. So, future studies should lead to a theoretical and practical understanding of managing these services. Understanding this nonlinearity may help companies to better identify what improve or offer to customers.


2017 ◽  
Vol 35 (3) ◽  
pp. 411-430 ◽  
Author(s):  
Rishi Kant ◽  
Deepak Jaiswal

Purpose In the present competitive scenario in the Indian banking industry, service quality has become one of the most important facets of interest to academic researchers. The purpose of this paper is to determine the dimensions of perceived service quality and investigate their impact on customer satisfaction in the Indian banking context, with special reference to selected public sector banks in India. Design/methodology/approach On the basis of the empirical study, the authors validate a measurement model using structural equation modeling for investigating the impact of perceived service quality dimensions on customer satisfaction. The study sample consists of 480 respondents in the National Capital Region (NCR) of India; the data were collected through a structured questionnaire utilizing a seven-point Likert scale while implementing a purposive sampling technique. Findings The perceived service quality dimensions identified were tangibility, reliability, assurance, responsiveness, empathy, and image. The empirical findings revealed that “responsiveness” was found to be the most significant predictor of customer satisfaction. On the other hand, “image” (corporate image) has a positive but the least significant relationship with customer satisfaction followed by all other constructs. The exception is “reliability,” which is insignificantly related to customer satisfaction in Indian public sector banks. Research limitations/implications The study cannot be generalized in the context of Indian banking sectors, as it only focused on the public sector. The findings of this study suggest that the six dimensions of perceived service quality model are a suitable instrument for evaluating bank service quality for public banks in India. Therefore, bank managers can use this model to assess the bank service quality in the context of Indian public sector banks. Originality/value There is dearth of research focusing on corporate image as a dimension of perceived service quality and its effect on customer satisfaction in the Indian banking context. Furthermore, similar studies were rarely found in the Indian context, especially within the public banking sector. Hence, this paper attempts to accomplish the research gap by empirically testing the satisfaction level of a large sample of the population in NCR toward six dimensions of perceived service quality rendered by selected public sector banks in India.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marie Schill ◽  
Delphine Godefroit-Winkel

Purpose Drawing on the stimulus–organism–response (S-O-R) framework, this study presents an original model examining the influence of environmental corporate social responsibility (CSR), luxury and service quality dimensions on consumer emotions that in turn influence consumer attitudes towards the shopping mall. Design/methodology/approach Structural equation modeling is applied to data from a sample of 706 French consumers to test the hypotheses. Findings The results highlight the importance of environmental CSR, luxury and service quality dimensions as stimuli influencing positively consumer emotions, which in turn positively influence consumer attitudes. Research limitations/implications This study extends prior work in the field of services marketing and the S-O-R framework while considering environmental CSR, luxury and service quality dimensions as relevant stimuli. It further contributes to the literature of the shopping mall while examining relevant and unexplored antecedents to consumer emotions. Practical implications This paper provides tailored recommendations for shopping mall managers. It details how managers can use environmental CSR and luxury dimensions besides service quality as relevant stimuli in their positioning strategies to enhance consumer emotions and attitudes. Originality/value This study provides novel insights into shopping mall dimensions, i.e. environmental CSR, luxury and service quality, influencing consumer responses.


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