scholarly journals EFFECTS OF FOOD QUALITY, SERVICE QUALITY, PRICE, ENVIRONMENT, AND LOCATION TOWARDS CUSTOMER LOYALTY OF INDONESIA’S LOCAL FAST FOOD INDUSTRY

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 ◽  
pp. 163-183
Author(s):  
Siti Aminah Hasbullah ◽  
Umme Umaimah Amin ◽  
Norhafizi Nordin ◽  
Nurul Asmida Abd Razak

The high demand from customers for quality services and competitive environment in the fast food industry give rise to the need to improve customers’ satisfaction that will increase the restaurant’s revenue. The objective of this study is to investigate the factors effecting customers’ satisfaction in fast food restaurants namely the price, service quality, and food quality of fast food restaurants in Arau, Perlis. The fast food restaurants selected for this study are Marry Brown, KFC, Pizza Hut and Domino's Pizza. A quantitative method was applied using online questionnaire to collect data from customers. The respondents consisted of customers who had experienced purchasing at these fast food restaurants. The findings of the study revealed that there is a significant relationship between customers’ satisfaction and the price of the foods. However, the study indicated insignificant relationships between food quality, service quality of fast food businesses and customers’ satisfaction. For future studies, it is recommended that the study area is expanded to involve various samples of the population, for broader results. To obtain more precise and reliable results, a similar study considering other factors that influence customer satisfaction in fast food restaurants could be added as variables.


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 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.


2019 ◽  
Vol 2 (2) ◽  
pp. p1
Author(s):  
Cuong Nguyen ◽  
Duy Nguyen ◽  
Toan Do

This primary objective of this study is to identify the determinants of customer satisfaction for KFC in Vietnam. Fast food industry developed rapidly in an emerging economy like Viet Nam. Current competition in Vietnamese fast food has required companies to pay more attention to customer satisfaction. Data is collected from KFC's customers in Ho Chi Minh City, Viet Nam. The research model is adopted from the SERVQUAL model (Parasuraman et al., 1988). The findings show that the main determinants of customer satisfaction of KFC Vietnam are Food Quality, Ambience, Price, Service Quality. Among these determinants, ambiance causes the most impact on customer satisfaction, following up by food quality and price. Managerial implications for KFC and other fast-food companies are discussed to improve customer satisfaction.


2018 ◽  
Vol 9 (3) ◽  
pp. 380-396 ◽  
Author(s):  
Rocío Carranza ◽  
Estrella Díaz ◽  
David Martín-Consuegra

Purpose The purpose of this study is to verify the existence of loyalty among fast-food customers and its dependence on fast-food service quality, comprising service quality, food quality and store atmosphere. This study also examines the direct and mediating role of constructs such as satisfaction and trust in creating loyalty in fast-food restaurants (FFRs). Design/methodology/approach A sample of 456 fast-food customers was collected using a structured questionnaire. This paper uses partial least squares path modeling to test and validate the study’s research model and hypotheses. Findings The results suggest that fast-food service quality has a positive influence on satisfaction, trust and loyalty among fast-food customers. The findings also reveal a mediating effect of trust (partial mediation), increasing the effect of satisfaction on loyalty. Practical implications This study reinforces the importance of considering the attributes that influence customer loyalty. Specifically, food quality is considered key to increasing loyalty among FFR customers. Originality/value This study proposes an integrated model influenced by three factors that contribute to fast-food service quality (i.e. food quality, service quality, atmosphere) along with classical variables used in the marketing literature (i.e. satisfaction, trust) in the creation of FFR loyalty. This study also follows modern procedures in PLS-SEM by challenging conventional methods.


2004 ◽  
Vol 4 (2) ◽  
pp. 75-84 ◽  
Author(s):  
Seok-hoon Lee ◽  
Yong-pil Kim ◽  
Nigel Hemmington ◽  
Deok-kyun Yun

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