Antecedents involved in developing fast-food restaurant customer loyalty

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).

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):  
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 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.


2020 ◽  
Vol 122 (7) ◽  
pp. 2253-2271
Author(s):  
Prameswari Purnamadewi Dhisasmito ◽  
Suresh Kumar

PurposeThe purpose of this study is to identify the drivers of loyalty model in the coffee shop industry in Indonesia based on service quality, store atmosphere and price fairness mediated by customer satisfaction.Design/methodology/approachThe sample size used for this study was 384 customers from 16 most comfortable coffee shops in Jakarta based on Nibble's survey. Confirmatory factor analysis was employed to confirm the attributes of each factor and to assess the validity and reliability, average variance extracted and composite reliability was applied. Further hypothesis testing was performed using structural equation modeling.FindingsThe result shows that customer loyalty is affected by service quality – comprising 5 subdimensions: tangible, reliability, responsiveness, assurance and empathy – and price fairness mediated by customer satisfaction. It was found that service quality plays a significant role in the coffee shop industry in Indonesia. However, the store atmosphere was found rejected.Originality/valueThis is the first study integrating service quality, store atmosphere, price fairness and customer satisfaction to study the customer loyalty model in the coffee shop industry in Jakarta.


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.


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 26 (1) ◽  
pp. 114-146 ◽  
Author(s):  
Michael Daniel Clemes ◽  
Xin Shu ◽  
Christopher Gan

Purpose – Global mobile communication is one of the most dynamic and important service markets. Several researchers suggest using a theoretical approach to develop a much deeper insight into key marketing constructs such as service quality, customer perceived value, customer satisfaction, perceived switching costs, corporate image, and customer loyalty is of vital importance to the mobile communications market. This study aims to develop and test a comprehensive hierarchical model of these six important constructs. The model also incorporates the retailing function of a major mobile communication provider. Design/methodology/approach – The research sample of 516 was drawn from customers of one of the largest mobile communications service providers in China. The data were analysed using exploratory factor analysis, confirmatory factor analysis and structural equation modelling. Findings – The results of the study support using a hierarchical and multidimensional approach for conceptualising and measuring customers' perceptions of service quality in the mobile communications market. In addition, the findings illustrate that service quality is an important determinant of customer perceived value, customer satisfaction, corporate image, and perceived switching costs. Customer perceived value is also an antecedent of customer satisfaction. Corporate image, customer satisfaction, and perceived switching costs are three key drivers of customer loyalty. However, the findings also indicate that corporate image is not an important determinant of customer satisfaction and that customer perceived value is not a key driver of customer loyalty. Originality/value – This is the first paper that has developed and tested a comprehensive hierarchical model of the mobile communications market.


Author(s):  
Trinh Kim Hoa ◽  
Luu Thi Bich Ngoc

This study was aimed at investigating three factors (service quality, brand image and price perception) and assessed the degree of the impact of each factor on customer satisfaction, especially the relationship between customer satisfaction and customer loyalty in Vietnamese mobile telecom sector where there have been the existence of the fierce competition, mature market and internationally integrated economy, ultimately struggling for market share and survival. The results indicated that each factor (service quality, brand image, price perception) has a positive impact on customer satisfaction at the different level as well as a significantly positive relationship between customer satisfaction and customer loyalty in mobile telecommunication industry in Vietnam. The results of this study are consistent with the findings and evidence in the extant literature. The study provides the important feedback from customers to mobile telecom suppliers. Research findings are expected to be marketing insights for Vietnamese mobile telecom managers so that they can develop the sound marketing strategies in today’s competitive and costly market.


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