Return to site

THE EFFECTS OF CUSTOMER LOYALTY: AN EMPIRICAL STUDY OF  QUICK SERVICE

RESTAURANT IN SOUTHERN PHILIPPINES

JOVERT J. DELEGENCIA, MBA

RALPH VENDEL E. MUSNI, PhD(c), RGC

· Volume III Issue IV

ABSTRACT

Customer loyalty is an important factor in the customer strategy of any organization. Organizations and institutions that are successful in gaining customer loyalty have a major competitive advantage. For the restaurant industry, it is important to understand the attributes that influence customers'' decisions to return to a restaurant for another meal. The objective of the study was to examine and evaluate the effect of customer loyalty in the restaurant. Data for this study was gathered using a questionnaire with a 5-point style scale. 30 questionnaires were pre-tested in quick service restaurants to evaluate the reliability and validity of the questionnaire. Fifty questionnaires were used for data collection. The response rate for the questionnaires was 30/50, or 0.60. The data was analyzed using data envelopment analysis (DEA) methodology. Some questions that had few common responses were removed from the final analysis, which was performed using structural equation modeling. Distribution according to the gender of the respondents: Among the 30 respondents, fifty percent (50%) were male and fifty percent (50%) were female. Distribution based on respondents' civil status: forty percent (40%) were single, fifty percent (50%) were married, and ten percent (10%) were others. Among the 30 respondents, zero percent (0%) were aged below sixteen years old, seventeen percent (17%) were aged sixteen to nineteen years old, thirty percent (30%) were aged twenty to twenty-nine years old, seventeen percent (17%) were aged thirty to thirty-nine years old, seventeen percent (17%) were aged forty to forty-nine years old, seventeen percent (17%) were aged fifty to fifty-nine years old, and three percent (3%) were aged sixty and above. Among the 30 respondents, fifty percent (50%) have no companion, thirteen percent (13%) have a companion, ten percent (10%) have a companion, seven percent (7%) have a companion, and twenty percent (20%) have a companion aged four and up .Among the 30 respondents, 17 percent (17%) visited 5:00am–9:59am, 50 percent (50%) visited 10:00am–12:59pm, ten percent (10%) visited 1:00pm–4:59pm, ten percent (10%) visited 5:00pm–8:59pm, seven percent (7%) visited 9:00pm–11:59pm, and seven percent (7%) visited 12:00am–4:59am.Sixty percent (60%) of the 30 respondents were employed, twenty-seven percent (27%) were unemployed, and thirteen percent (13%) were students. Twenty-seven percent (27%) said every day, twenty percent (20%) said 1-2x a week, seventeen percent (17%) said 3-6x a week, thirteen percent (13%) said once a month, thirteen percent (13%) said less than once a month, and ten percent (10%) said first-timers. A Distribution Based on the Purpose of the Visit: Among the 30 respondents, three percent (3%) said it was for family bonding, seven percent (7%) said it was for business meetings, ten percent (10%) said it was to meet friends, forty-seven percent (47%) said it was for a break from work/school, seven percent (7%) said it was to celebrate an occasion, and eight percent (8%) said it was for others. Customer satisfaction has a positive effect on loyalty, however the effect of customer trust on loyalty has not been shown. It is probable that the rejection of this idea was due to widespread skepticism of the quick service restaurant industry in Cagayan de Oro City. This should be considered by the quick service restaurant's management. According to the findings of this survey, the most significant element influencing customer pleasure and loyalty is food quality. It is suggested that the quick restaurant create an appealing environment by using creative design, appropriate colors, and even a correct tables and chairs layout and arrangement. Marketing managers may investigate competing restaurants' rates and use them into their pricing strategies.

Keywords: Customer Loyalty, Customer Experience, Customer Satisfaction, Customer, Loyalty, Experience, Satisfaction, Quick Service Restaurants, QSR

see PDF attachment for more information