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6 Impact of service quality, customer satisfaction, restaurant image on customer loyalty

6 Impact of service quality, customer satisfaction, restaurant image on customer loyalty

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drop in total satisfaction results in a major drop in loyalty. So, the hypothesis is
given that the customer satisfaction has a positive impact on customer intention to
revisit specific restaurant (H1)

2.6.3 Impact of the brand mage of restaurant on customer loyalty:

Lessing (1973) had examined the relationship of restaurant image and customer
loyalty. As a result, the image is considered as an influence to customer loyalty.
Reputation is a statement of strong brand image, so brand image may impact on
customer loyalty. On the other hand, Tepci (1999) and Fassnacht and Daus (2004)
also pointed out the impact of reputation to customer loyalty. So, the hypothesis is
given that the brand image of restaurant has a positive impact on customer
intention to revisit specific restaurant (H3)

2.7 Factor contributing to customer loyalty:

According to Tepeci (1999), customer loyalty can be created by many factors, as
bellows:
Awareness: Guest awareness can result in their loyalty. At the awareness stage,
people who are potential customer know that restaurant exists and also during this
stage, the restaurant provide information to create customer awareness about its
service (Aaker, 1991; Tepeci, 1999). The more the customer is aware of the
restaurant service, the more the posibility that potential customer visit and use
restaurant service (Tepeci, 1999).
Reputation: When restaurant has their reptutation, it can easily attract to more
customer by word of mouth activity (Rogerson, 1983). Reputation also is
considered that restaurant keeps their promise on service quality and customer can
be pleased with the satisfaction on their expectations. In maintaining reputation,
the promised quality of service must be delivered (Tepeci, 1999).
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Image: Building a positive image is also considered the step to retain customer
loyalty (Tepeci, 1999). The image can create special character to distinguish its
service from their competitors’ service. So, it creates a key source of customers
who like its image as well as its characters. According to Berry at al., (1988) the
image not only is the name but also includes excellent service, atmosphere, colors,
symbols.
Promotion: Customers intent to choose restaurant which has promotion strategy
strongly because they evaluate profit will be more than cost. So Tepeci (1999)
stated that promotion is one of reason for customer attending restaurant.
Promotion can create new value for customer as well as create a special symbol
for restaurant compared with their competitiors.
Perceived quality: According to Elliott (1996), customer feels comfortable with
familiar restaurant and versus unfamiliar restaurant and this causes brand-leading
products which makes price premium over their competition. It implies that
customers tend to choose familiar restaurant because they understand service
quality from their experience and expect a good quality for the next time. By this
way, customer loyalty is developed.
Innovation: According to Tepeci (1999), managers should consider which
innovation is implemented. Innovation creates new value for customers and it can
refresh service quality to make customer exciting. But innovation must be
carefully considered because it also could create dissatisfied factors to customer.
In general, innovation is a positive impact on customer loyalty. Innovation help to
maintain a restaurant current market share (Victorino et al, 2005).

2.8 The conceptual framework:

In the cover of this thesis, the impacts on customer loyalty are, as bellows:
Service quality: As mentioned above, effect of service quality to customer loyalty
is strong. Service quality includes quality of food, quality of service, cost/value
and place.
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Customer satisfaction: As mentioned above, satisfaction directly influence
customer loyalty and many researchers also pointed out that the more the
satisfaction develop, the more the loyalty increase. Customer satisfaction is
considered as an overall evaluation on food, service, value which compared to
cost.
The brand image: As mentioned above, brand image is an important factor to
customer loyalty and it creates a key source of customers who like its brand image
as well as its characters. The brand image of restaurant which is measured includes
customer attitude forward to the brand of restaurant and the brand benefit.

2.9 Theoretical model and hypotheses

Return to research questions, theoretical model attempt to define the main factors
impacting on customer loyalty in the restaurant of The Tourist Village in Ho Chi
Minh city. Because of the conceptual framwork, I only focus on the influence to
attitudinal dimension of customer loyalty.

Through review of above literature, I assume the hypothesises, as bellows:

Hypothesis 1: The overall customer satisfaction has a positive impact on customer
intention to revisit specific restaurant (H1)
Hypothesis 2: The service quality has a positive impact on customer intention to
revisit specific restaurant (H2)
H2a: The quality of product has a positive impact on customer intention to revisit
specific restaurant.
H2b: The quality of service has a positive impact on customer intention to revisit
specific restaurant.
H2c: Cost and value of service has a positive impact on customer intention to
revisit specific restaurant.
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H2d: Place and atmosphere has a positive impact on customer intention to revisit
specific restaurant.

Hypothesis 3: The image of restaurant has a positive impact on customer intention
to revisit specific restaurant (H3)

So, the research model is:

The brand image
of the restaurant

(H3)

(H1)
Customer
satisfaction

The attitudinal
dimension of
Customer loyalty
(H2)

Service quality
- The quality of product
- The quality of service
- Cost and value
- Place and atmosphere

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CHAPTER III: RESEARCH METHODOLOGY

In chapter II, review of literature was presented. In chapter III, research
methodology is presented and this chapter includes five parts: research process;
the measurement; the preliminary assessment of measurement; the sampling
method and the data analysis method.
3.1 Research process
The research process included a preliminary survey and a main survey. The
preliminary survey was conducted by means of questionnaires sent to 20
customers who used services at Tan Cang restaurants. Based on the outcome of
this survey, the mean of questionnaire was checked. This survey also checked the
appropriate measurement scales which was made with the real situation of the
restaurants on the Tourist village. The main survey was undertaken by means of
questionnaires sent to 230 customers at Tan Cang and Van Thanh restaurants. The
survey was a quantitative research. Cronbach alpha and exploratory factor analysis
was used to test the hypotheses.
The method of creating questionnaire was based on the measurement of dependent
and independent variables after checked in real situation at the Tan Cang
Restaurant of the tourist village.

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Figure 3.1: The model of research process

Research model

The draft
questionnaire

Preliminary
survey

The final questionnaire
(Qualitative research)

Main survey
Quantitative research
(n=205)

Testing of hypotheses
(Conbach alpha, EFA,
regression)

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3.2 Measurement
3.2.1 Measurement of customer loyalty
Four items were taken to measure customer loyalty based on Aydin and Ozer
(2005); Wulf et at.(2001) and Morgan and Hunt (1994).
Scale of customer loyalty
Item wording

Item code

I intend to continue to arrive and use services at this restaurant LOY1
for a long time.
Even if another restaurant’s price is lower, I am willing to LOY2
continue selecting this restaurant.
I am willing to say positive things about this restaurant.

LOY3

I will encourage friend and relative to arrive and use services at LOY4
this restaurant.

3.2.2 Measurement of customer satisfaction
Four items were taken to measure customer satisfaction based on Mouri (2005);
Oliver (1997) and Fornel (1992).
Scale of customer satisfaction:
Item wording

Item code

I am satisfied with the overall services quality of this CS1
restaurant
I am satisfied with the professional competence of CS2
this restaurant.
I am satisfied with the performance of the front line
employees of this restaurant.

CS3

I am comfortable with the relationship with this CS4
restaurant.
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This scale focused on the overall customer satisfaction by emphasizing the
customer emotion on service quality, performance, employee and the relationship
with the restaurant. This scale reflected three sides of the customer satisfaction:
restaurant activities, restaurant image and the relationship with its customers.

3.2.3 Measurement of the brand image of the restaurants

Based on Aydin and Ozer (2005); Gronroos (2000); Ravald and Gronroos (1996),
the scale of the brand image of the restaurant was below:

Item wording
I

consider

Item code
that

this

restaurant’s BI1

reputation is high
I have a good feeling about the BI2
restaurant’s social responsibility
The restaurant delivered a good brand BI3
image to customers

This scale focused on the customer perception of brand image. Brand image is
generally defined as the reputation, and the symbol translating to customer feeling
and thinking.

3.2.4 Measurement of service quality

To measure of service quality, there were four dimensions:
 The quality of product attributes dimension were measured based on the study
of Cadotte & Turgeon (1998), Morgan (1993), Rataree (2003).
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Item wording

Item code

Food portion size is enough

PQ1

Temperature of food is enough

PQ2

Taste of food is enough

PQ3

Variety of beverages is enough

PQ4

 The quality of service attributes dimension were measured based on the study of
Cadotte & Turgeon (1998), Morgan (1993), Rataree (2003).

Item wording

Item code

The staff are professional

SQ1

The staffs have communication skills

SQ2

The staff is helpful

SQ3

The staffs have ability of problem SQ4
resolution
The staff is available and accessible

SQ5

The employees are responsive to

SQ6

questions
The employees are professional

SQ7

The servers are knowledge

SQ8

The servers have ability of empathy

SQ9

towards customers
The servers have ability to anticipate

SQ10

guest needs
The servers have ability of personal

SQ11

attention
The servers treat of all customers

SQ12

equally
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 Value and cost attributes dimension were measured based on the study of
Cadotte & Turgeon (1998), Morgan (1993), Rataree (2003).

Item wording

Item code

I receive the service values more than VC1
the cost which I pay to use services
The oder taking is accurate and is worth VC2
with paying
The oder cooked is accurate and is VC3
worth with paying
 Place and atmosphere dimension were measured based on the study of Cadotte
& Turgeon (1998), Morgan (1993), Rataree (2003).

Item wording

Item code

The dining area is clean

PA1

The bathroom is clean

PA2

The parking is convenience

PA3

Noise level is acceptable.

PA4

3.3 Preliminary survey

The purpose of preliminary survey on this research was to find the mistake of draft
questionnaire and make sure all measurements were understood clearly by
customers. The preliminary survey was conducted by the help of Tan Cang
restaurant’s managers whom send draft questionnaire to customers and face to
face interview. As the result, all of twenty customers fill in form quickly for 10
minutes and face to face interview for 15 minutes. Through the comparison
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between the result of filling to form and customer understanding questionnaire by
face to face interview, some measurements were fixed to be proper in the real
survey. Item wording “the employees are responsive to questions”, “the employees
are professional” were deleted because the concept “employees” are the same to
“server” in customer minds. In reality, customers only differentiate “staff” and
“server” easily and not to separate into staff, server, employees. It was logical and
there was no need of separating into staff, server, employee while staff and server
are enough to illustrate all of peoples who worked for the restaurant. On the other
hand, the scale “the servers treat of all customer equally” was removed because
customer did not consider this scale can express good service quality. They
thought that in accordance with their social situation, they must be treated better
than another. So, the result of preliminary survey was to change the item wordings
of service quality attributes, as bellow:
 The quality of service attributes dimension were measured based on the study of
Cadotte & Turgeon (1998), Morgan (1993), Rataree (2003).
Item wording

Item code

The staff are professional

SQ1

The staffs have communication skills

SQ2

The staff is helpful

SQ3

The staffs have ability of problem SQ4
resolution
The staff is available and accessible

SQ5

The servers are knowledge

SQ6

The servers have ability of empathy

SQ7

towards customers
The servers have ability to anticipate

SQ8

guest needs
The servers have ability of personal

SQ9

attention
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