Driving customer loyalty in the Malaysian fast food industry

2019 ◽  
Vol 11 (6) ◽  
pp. 1367-1387 ◽  
Author(s):  
Farzana Quoquab ◽  
Nur Zulaikha Mohamed Sadom ◽  
Jihad Mohammad

Purpose Although the importance of halal logo in determining purchase intention has been recognized in the marketing literature, there is a dearth of study that has examined the impact of halal logo toward customer loyalty. To fulfill this gap, this study aims to shed some light on the impact of halal logo toward achieving customer loyalty in the context of fast food industry in Malaysia. More specifically, the objectives of this study are: to examine the direct and indirect effect of halal logo on customer loyalty; to examine the effect of halal logo on trust and perceived reputation; to examine the effect of halal logo and perceived reputation on customer loyalty; and to examine the mediating effect of trust and perceived reputation in the relationship between halal logo and customer loyalty among the fast food industry consumers in Malaysia. Design/methodology/approach This study used stimulus-organism-response (S-O-R) theory as the theoretical basis. The data were collected via self-administered survey questionnaire consisting 117 Muslim fast food consumers. Partial least square (SmartPLS, version 3) was used to test the study hypotheses. Findings Results of this study revealed that halal logo, directly and indirectly affect customer loyalty. Moreover, perceived reputation and trust also found to be positively related to customer loyalty. Research limitations/implications The data were collected from Malaysian Muslim consumers. Future studies can consider non-Muslim consumers to compare the loyalty pattern among Muslim and non-Muslim consumers. Practical implications The findings from this study will benefit fast food industry marketers who are targeting Muslim consumer segment and also those marketers who are operating their franchise business in Muslim majority countries. The findings suggest that halal logo helps service providers to create positive perceived reputation and to build trust among consumers, which eventually lead customer loyalty. It is expected that the findings of this study will assist the halal fast food industry marketers to better strategize their marketing efforts in retaining the Muslim customer base. Originality/value Using S-O-R theory, this study examines halal logo as the key driver of customer loyalty, which is comparatively a new link. Moreover, this study examines the mediating effects of perceived reputation and trust in the relationship between halal logo and customer loyalty, which are not tested in previous literature in the field.

2022 ◽  
Vol 18 (1) ◽  
pp. 0-0

This study examined the impact of E-CRM on customer loyalty with the mediating effect of customer satisfaction in the banking industry. Customer satisfaction is important for loyalty because when the customers are satisfied with the services offered by their service providers, the relationship gets stronger which further leads to positive word-of-mouth. The data was collected using purposive sampling from 836 banks’ customers who were using E-CRM services and the data was analyzed using structural equation model (SEM) through AMOS. The results revealed that E-CRM and customer satisfaction had a significant positive impact on customer loyalty and also customer satisfaction partially mediated the relationship between E-CRM and customer loyalty. This study would offer useful acumen to both academicians and marketers and would help the bank managers to improve the quality of the services provided to their customers.


2019 ◽  
Vol 14 (3) ◽  
pp. 119
Author(s):  
Indryati Sunaryo

This study aims to measure and analyze the effect of several restaurant-related quality attributes toward customer loyalty with a mediating effect from customer satisfaction in the local fast-food industry in Indonesia. The nature of local fast-food industry is different compared to its global counterpart, so a new perspective has to be taken into account. Based on literature review of previous studies, the quality attributes that are selected for this study are food quality, service quality, environment, price, and location. Data in this study were collected from the responses of 461 participants and analyzed using Structural Equation Model (SEM). The SEM result shows that only price and location significantly affect customer loyalty through customer satisfaction. When customer satisfaction is removed and restaurant-related quality attributes is directly tested towards customer loyalty, only price and food quality significantly affect customer loyalty. Both with and without mediating effect from customer satisfaction, price keeps influencing customer loyalty. This result is against the majority of fast-food customer loyalty studies which usually emphasize on food or service quality as the main factor that influences customer loyalty and customer satisfaction.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jalal Rajeh Hanaysha

PurposeThis study aimed to investigate the impact of social media advertising features (interactivity, perceived relevance, informativeness and entertainment) on brand engagement in the fast food industry. It was also designed to identify the effect of brand engagement on purchase intention.Design/methodology/approachThe data was gathered from 258 customers of fast food restaurants in United Arab Emirates using an online survey. The collected data was analyzed via the partial least square approach (PLS-SEM) to verify the hypotheses and reach at conclusions.FindingsThe findings indicated that social media advertising features have positive effects on brand engagement. In particular, it was found that interactivity, perceived relevance, informativeness and entertainment are positively associated with brand engagement. The results also confirmed that brand engagement has a positive effect on purchase intention.Originality/valueThis study provides a noteworthy contribution to the literature by examining the effect of four unique social media advertising features on consumer engagement. By looking at previous studies, it can also be observed there is a limited empirical research on the effect of perceived relevance and informativeness on brand engagement. It further focuses on covering existing gaps in the literature concerning the effect of brand engagement on purchase intention in the fast food industry setting. This is one of the earlier studies that collectively examined these factors in model; particularly, in fast food industry setting with empirical data from a Middle East country.


2018 ◽  
Vol 13 (6) ◽  
pp. 1948-1968 ◽  
Author(s):  
Sherif El-Halaby ◽  
Khaled Hussainey ◽  
Heba Abou-El-Sood

Purpose The purpose of this paper is to examine the effect of sharia, social and financial disclosure on stakeholders’ loyalty towards Islamic banks (IBs). The paper also aims to examine the extent to which trust and satisfaction mediate this effect. Design/methodology/approach It uses data collected from 600 respondents to survey questionnaires disseminated to stakeholders from 15 countries dealing with IBs. Structural equation modelling is adopted with a partial least square approach. Findings The results indicate that there is a significant impact of disclosure on stakeholders’ trust, satisfaction, and loyalty. The results also indicate that there is a partial mediating effect of trust and satisfaction in the relationship between disclosure and loyalty. This paper is one of the first studies examining the effect of disclosure on stakeholders’ loyalty. The authors provide novel findings, which have theoretical and practical implications for disclosure in IBs and their relationship with stakeholders. Originality/value The analysis offers a novel contribution to the Islamic banking literature by offering the first evidence on the impact of disclosure on stakeholders’ trust, satisfaction, and loyalty.


2014 ◽  
Vol 26 (7) ◽  
pp. 1024-1045 ◽  
Author(s):  
Matthew Tingchi Liu ◽  
Ipkin Anthony Wong ◽  
Chu Rongwei ◽  
Ting-Hsiang Tseng

Purpose – This study aims to investigate how perceptions associated with corporate social responsibility (CSR) initiatives influence customers’ preference and loyalty in a controversial consumer market. The mediating effect of brand preference between perceived CSR initiatives and customer loyalty is also examined. Design/methodology/approach – The methodology in the current study involves the use of questionnaire surveys delivered to a convenience sample in the city of Macau in 2012. A total of 616 valid samples were collected among casino players in a high bet limit area in six major casinos. Regression analysis was used to test the hypotheses formulated for carrying the study forward. Findings – The findings indicated that customers’ brand preference can be enhanced by their perceptions on CSR. Two CSR initiatives (stakeholders and society) significantly increase loyalty intention, although to varying degrees. The impact of CSR on stakeholders has a stronger influence on customers’ brand preference. Another important finding of the current study is the fact that brand preference is a partial mediator of perceived CSR initiatives and customer loyalty. Research limitations/implications – This study verified the relationship among CSR initiatives perception, brand preference and loyalty intention in the context of the Macau gaming industry. Perceived CSR initiatives enhance customer loyalty. Additionally, this study found a partial mediating effect of brand preference between CSR perception and customer loyalty. Practical implications – Customer loyalty can be enhanced with companies’ appropriate investments in social responsibilities. Although a socially responsible brand image of a company is not guaranteed to be a competitive advantage that attracts more premium customers, there is a general consensus that it may result in the latter with appropriate CSR strategies involving the greatest attention directed toward improving stakeholders’ interests. From the marketing perspective, retaining premium customers with a higher brand preference level is a key to both long-term competitiveness and profitability. Originality/value – This study investigates how premium customers’ perceived CSR initiatives of a casino influence their loyalty intention, and also examines how brand preference, as a mediator, influences the relationship between perceived CSR and loyalty intention. Extending the realm of CSR study to understand the linkage between CSR and customer behaviors is also important because multiple theories predict different benefits, and assessing the value of CSR, therefore, requires multiple approaches. Finally, evidence from the research is significant for researchers and practitioners, especially when working on conflicting issues.


2019 ◽  
Vol 31 (4) ◽  
pp. 532-554 ◽  
Author(s):  
Tommy Lau ◽  
Man Lai Cheung ◽  
Guilherme D. Pires ◽  
Carol Chan

Purpose The abolishment of the wine tax in Hong Kong has led to increased wine consumption and increased demand for wine-related professionals, such as sommeliers. Yet the importance of sommeliers’ value-adding performance in the context of upscale Chinese restaurants has not been examined. To address this gap, the SERVQUAL framework is adopted to examine the influence of sommeliers’ service quality (SQ) on customer satisfaction (CS) and loyalty in the context of upscale Chinese restaurants in Hong Kong. Design/methodology/approach The survey method is used to collect data from 302 units of the population of interest, partial least square-structural equation modelling (PLS-SEM) is used to test the links between constructs. Findings Four of the seven dimensions of sommeliers’ service quality, namely, empathy, tangibles, credibility and assurance, have a significant positive impact on customer satisfaction and customer loyalty, whereas the impact of perceived value and responsiveness on customer satisfaction and customer loyalty is positive but only marginally significant. Reliability has a weak and non-significant impact on customer satisfaction and customer loyalty. Research limitations/implications Examining a small number of upscale Chinese restaurants in Hong Kong limits generalisation of the findings to other contexts. Replication of the research in different contexts will enhance generalizability. In terms of implications, the discussion highlights the importance of sommeliers’ service performance on customers’ SQ perceptions SQ, CS and loyalty, all of which are important variables for restaurateurs. Originality/value To the best of the authors’ knowledge, this is the first study of the influence of the quality of sommelier’s SQ on CS and loyalty in upscale Chinese restaurants in Hong Kong. Given the lack of attention to this service role in the literature, the study contributes theory from which further understanding can develop.


2014 ◽  
Vol 35 (4) ◽  
pp. 305-315 ◽  
Author(s):  
Panagiotis Gkorezis ◽  
Eugenia Petridou ◽  
Panteleimon Xanthiakos

Purpose – Leader-member exchange (LMX) has been proposed as a core mechanism which accounts for the impact of various antecedents on employee outcomes. As such, the purpose of this paper is to examine the mediating effect of LMX regarding the relationship between leader positive humor and employees’ perceptions of organizational cynicism. Design/methodology/approach – Data were collected from 114 public employees. In order to examine the authors’ hypotheses hierarchical regression analysis was conducted. Findings – As hypothesized, results demonstrated that LMX mediates the relationship between leader positive humor and organizational cynicism. Research limitations/implications – Data were drawn from public employees and, therefore, this may constrain the generalizability of the results. Also, the cross-sectional analysis of the data cannot directly assess causality. Originality/value – This is the first empirical study to examine the mediating effect of LMX in the relationship between leader humor and employees’ perceptions of organizational cynicism.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fenika Wulani ◽  
Tarsisius Hani Handoko ◽  
Bernardinus Maria Purwanto

PurposeThis study investigates the effect of supervisor-directed organizational citizenship behavior (OCB) on leader–member exchange (LMX), the moderating role of impression management motives on this relationship, the effect of LMX on organizational and interpersonal deviance and the mediating effect of LMX on the relationship between supervisor-directed OCB and deviant behaviors.Design/methodology/approachThis study uses a survey questionnaire to collect data. Respondents were 342 nonmanagerial employees working in Surabaya Raya, Indonesia. Hypothesis testing is done using Partial least squares structural equation modeling (PLS-SEM).FindingsThe results show that supervisor-directed OCB is positively related to LMX, and LMX is negatively related to organizational deviance but not significantly related to interpersonal deviance. The study also finds that impression management motives moderate the positive relationship between supervisor-directed OCB and LMX. Furthermore, LMX mediates the relationship between supervisor-directed OCB and organizational deviance, but not interpersonal deviance.Practical implicationsThis study suggests the importance of human resource management (HRM) activities and managers being aware of subordinate OCB motives and the impact of LMX on interpersonal and organizational deviance, as well as what supervisors need to do to reduce these negative effects.Originality/valueFew studies examined the relationship between supervisor-directed OCB and workplace deviance behaviors (WDBs). This study provides a mechanism of their relationship by considering LMX as a mediator. Also, heretofore the existing studies tend to focus more on LMX as an antecedent of OCB. This study provides an understanding of OCB as an antecedent of LMX with the moderating effect of impression management motives.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abir Hichri ◽  
Moez Ltifi

Purpose The study is based on a hybrid model composed of accounting and business data and is amongst the first to test the impact of corporate social responsibility (CSR) performance on the financial performance of the company, as well as the impact of financial performance on CSR performance. The bidirectional logic chosen by the study is rarely adopted in the global context and has never been tested in the Swedish context. Moreover, the purpose of this paper is to test the mediating effect of customer loyalty on the company’s CSR performance-financial performance relationship to assess this effect over the long term. This design has been neglected in previous studies. Design/methodology/approach Data was collected from a sample of 110 Swedish companies during the period 2009–2019. This study collects the data from the Thomson Reuters Eikon database. A multiple regression analysis was performed to test the hypotheses. Findings The results confirmed the bidirectional relationship between CSR performance and company financial performance. This means that CSR performance positively influences the company’s financial performance. Similarly, financial performance positively influences the company’s CSR performance. Moreover, customer loyalty has a positive and significant mediating effect on the company’s CSR performance-financial performance relationship. Originality/value This study adds several inputs. The first contribution of the research is to test a hybrid model composed of accounting and commercial data. This model is amongst the first to test the impact of CSR performance on the financial performance of the company and the impact of financial performance on CSR performance. The second contribution is the bidirectional logic chosen by the study which is rarely adopted in the global context and has never been tested in the Swedish context. The third contribution is to test the mediating effect of customer loyalty on the company’s CSR performance-financial performance relationship to assess this effect over the long term. This design has been neglected in previous studies. The fourth contribution is the choice of the field of investigation for the reliability of the data used and the generalisation of the results obtained.


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