FACTORS AFFECTING CUSTOMER RETENTION IN THE RESTAURANT INDUSTRY: MODERATING ROLE OF RESTAURANT LOCATION
Download| Volume 15 Issue 2 2019 | |
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| Author(s): |
Ammar Ahmed
Sanober Salman Shaikh
Rafat Naseer
Muhammad Asadullah
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| 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 | Short Report |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | IBT Journal of Business Studies | Publisher Name | ILMA University | Jel Classification | D11, D12, DL84, R38 | DOI | http://dx.doi.org/10.46745/ilma.jbs.2019.15.02.07 | ISSN no (E, Electronic) | 2409-6520 | ISSN no (P, Print) | 2416-8393 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Type of Review | Double Blind Peer Reviewed | Format | Paper Link | http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/15.2/7.pdf | Page | 95-108 | References | Ahmed, A., Khuwaja, F. M., Othman, I. B. L., Qureshi, M. A., & Ali, R. A. (2017). Validation of SERVQUAL Model in Relation to Customer Loyalty: Evidence from FMCGs in Pakistan. Sukkur IBA Journal of Management and Business, 4(2), 54-76. Ahmed, A., & bin Lebai Othman, I. (2017). 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