FACTORS AFFECTING CUSTOMER RETENTION IN THE RESTAURANT INDUSTRY: MODERATING ROLE OF RESTAURANT LOCATION

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Volume 15 Issue 2 2019

Author(s):

Ammar Ahmed
Assistant Professor, Department of Management Sciences, MNS-UET, Multan
ammar.malik419@gmail.com

Sanober Salman Shaikh
Institute of Business Administration, University of Sindh Jamshoro, Pakistan
sanobershaikh25@yahoo.com

Rafat Naseer
MSBA, Institute of Southern Punjab Multan
rafat.naseer@hotmail.com

Muhammad Asadullah
Assistant Education Officer, School Education Department Punjab
4asadmpa@gmail.com

Abstract This study investigated the main effects of service quality and price fairness on customer retention. The study also investigated the moderating role of restaurant location in service quality, price fairness-customer retention relationships. Data collected from 182 customers visiting selected restaurants located in Multan city of Pakistan. The collected data relates to the chosen variables i.e. service quality, price fairness, restaurant location, and customer retention. The significant positive results of linear regression analysis revealed that service quality, price fairness and restaurant location predicted the customer retention. The results of step-wise multiple regression analysis revealed that restaurant location positively moderated the relationship of service quality and customer retention. It also revealed that restaurant location positively moderated the relationship of price fairness and customer retention. This study may have practical implications for human resource managers regarding recruitment decisions. It may have importance for restaurant managers or owners regarding quality of service and pricing plans which are true reflection of the services provided. Similarly, they may give due consideration to the location factor while launching a food service business. On the basis of the findings of the study, conclusions have been made and recommendations and directions for further research have been offered.
Keywords Service Quality, Price Fairness, Restaurant Location, Customer Retention
Year 2019
Volume 15
Issue 2
Type Research paper, manuscript, article
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification -
DOI https://doi.org/10.46745/ilma.ibtjbs.2019.152.07
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2415-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Manuscript Processing Blind Peer Reviewed
Format PDF
Paper Link http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/15.2/7.pdf