Background of the study The increase of market service among the restaurants industry is getting more Hellenizing and competitive nowadays. The reasons why is the increase of good quality demand from customers, and industries to overcome that have to be competitive in others to increase profitability, by ensuring customers satisfaction. The business dictionary defines customer satisfaction as the level of satisfaction that a company provides in goods or services which are measured by how many time the customer comeback. (Objectifications. Com, 2014).
Satisfaction from a customer comes from a past experience, it is the judgment that the customers see from what is provided and what is the pleasure after consumption. Many research has found that the verification or non-validation of consumer before consumption, expectation can affect their satisfaction. After the customer have experienced the product performance they will compare it to their past expectation, so their satisfaction depend on their weighting, customer are unhappy when their experience is worse than their expectation and happy when their experience is better than their expectations.
Lexicon. Ft. Com, 2014). Business in other to be successful say the customers are always right, it seems easy but it takes companies more than just doing discount, coupons, marketing o succeed in securing its loyal customer. It take many steps to fulfill customers satisfaction, but it is all start from us especially the employee. Howard J. Ross, said, the employee who feel good and happy with their work and usually happy to serve their customers and be more helpful towards them.
That is a simple logic if u like your company and job you will definitely communicate the goodness of your products. (N.B., 2014) The purpose of this to investigate and look into the different factors which affect the customer’s satisfaction in restaurants in Malaysia or which can improve the customer satisfaction in assistants. Problem statement Recently in the context of Malaysia food consumption, the food and restaurant industry is increasing due to the increase of the population and the willingness of the populations to consume variety of food.
Foods being a basic human need, during the many festivity of the variety of religions in Malaysia, the number of participants are many therefore the food demand is high. Hence it is in Malaysian culture to eat outside in restaurants. Therefore the food industry is increasing in a high rate. (All & Abdullah, 2012) Malaysia is a country where you an find restaurants in every corner of the road, but the competition is high. The most successful among the restaurant are those ones which can satisfy the need and wants of their customers.
Increasing those factors is not easy and foods services are suffering in other to retain their customers. Restaurants are having trouble in retaining and making customers loyal to them, the competition is getting tougher, and customers are having more choices therefore the best in strategies will come out as the winner. In others for restaurants to satisfy the need and want of the customers, some factors must be taken into consideration, actors such as quality service, quickness of service, prices fairness, atmosphere and son on are what is most valuable for customers.
Restaurants have to come up with strategies, and programs on how to improve the different elements cited above in others to retain their consumers. Good quality must also be put in the bottom line as sales and profit, in the overall of service industry service quality is one of the keys elements that push the performance of the business and compete with the rivals. A huge level of consumer consideration creates a huge amount of satisfaction from customers, a satisfaction that can help in the nominative advantage. (Fastidiousness’s. Co. K, 2014) The different variables which directly and indirectly affect the customer satisfaction in Services, such like the independent variables are services quality, price, atmosphere and quick responsiveness. Satisfaction is the dependent variable which change due to these independent variables because the customer satisfaction rely on these variables. There is the link between the service quality and the customer’s satisfaction. Besides that Most research long-established that customer satisfaction is openly related to a success of a business (Lou, Homburg, 2007; Belles, Attestation, Seedpods, 2011; Martinez-turn, et al. 2011) so it is important to identify all factors which affect it. In other to solves this problem we going to go through the different variables, and the relationship between the factors that affects customer’s satisfaction and restaurants industry Objectives of the study The first objective is to determine the factors which affect the customer satisfaction. To examine how the respondent are influenced by the factors. To determine whether service quality is a determinant of customer’s satisfaction towards preferred restaurant. To determine whether price fairness is a determinant of customer’s satisfaction towards preferred restaurant.
To determine whether environment is a determinant of customer’s satisfaction towards preferred restaurant. Research question What is the relationship between service quality and customer satisfaction? What is the relationship between environment and customer satisfaction? What is the relationship between price fairness and customer satisfaction? What is the relationship between and customer satisfaction? Significant of the study Customer’s satisfaction and retention is crucial for restaurant industry in other to maintain market position and profitability.
Therefore this study will provide important information, to Malaysian restaurant in other for them to develop a good and appropriate strategy that will help them to face the completion. After this research, the outcome will also help marketer to have a good strategic plan in other to gain and maintain customers. It will also well tem to identify all factors that influence or affect customers satisfaction toward their businesses, from that they will be more innovative and will add value in to their businesses.
Furthermore this research will determine whether customer’s satisfaction or orientation toward their preferred restaurants will depend on quality service, price fairness, atmosphere and quickness of the service. Scope of study In other to achieve this research and to get lucrative information from the respondents, a quantitative type of data collections will be used. The research will be focus on the Malaysia specifically in the SERVING (south city) area because of it great number of diverse restaurant (Malay, Chinese, Indian, Arabic, and international).
Respondent will be taken among the numerous customers and owner of restaurant around the place. Another limitation will the focus of only the SERVING area. Limitation What will make the research limited is the language barrier, most of the customers are Malaysian and some don’t understand English. For me to do the research I will need a Malay questionnaires and Malaysian translator that will be assisting me. Feasibility The research will be feasible because of the divers and great number of restaurant around the place, and they access of great number of respondent.
If the time and fund are allocated the research will lucrative. Chapter 2: literature reviews This chapter will focus on identifying customer’s satisfaction in Malaysian coal food restaurant, which will include service quality, price fairness, and environment This section of the research will also include a comprehensive review of the literature in the area of customer satisfaction, by examining what the previous research have revealed about the factors affecting the customers satisfaction in fast food restaurant.
In another hand, this chapter will be focusing on existing knowledge between the independent and dependent variables. Service quality effect (Chatham et al 2006), stated that “service quality is a focused evaluation that reflects the customer’s perception of reliability, assurance, responsiveness, empathy, and tangibles” They added that among these dimensions, “reliability’ has been shown consistently to be the most important dimension in service quality. (Bitter, Booms and Mohr 1994) define service quality as the total impression of the customer’s relative weakness, power of the organization and its services.
The SURVIVAL scale which is also known as the gap model by (Pursuant,teal. 1988) is consider as one of the best system of measure the quality of services provided to customers. It a system that has been verified to be reliable by others authors (Brown et al. , 1993). The assume that, while a customer receive or experience a service which is less than what he or she expected it indicates less agreeable service quality. And when a service is perceived by a customer’s more than expected what he expected it obvious that the service quality is more than agreeable. Taylor and Crooning, 1994) reasoned that service Quality is a process of attitude that is measured in the long term ran. According to (Brady & et al. 2001 ) which were employed by LISPER to analyze and study the American and Latin America fast food restaurant. The result showed that the relationship between service quality and customer satisfaction exist. The relationship was built on the diverse cultural background, furthermore he said that the service quality had a powerful impact on customer’s satisfaction.
The intangible nature of the service industry make it very difficult in other to provide a top quality, that is why service industries are in need of consistent, organized and quantitative way of assessment of it performance. Therefore a service quality should be set and asses in other to help workers and leader to understand the need of its customers, organizing trainings platforms, setting rules and regulations for employees will help to control performances. If and Parks, 2001) Price fairness effect Price fairness was define as the consumer’s evaluation of whether the price set by a seller is realistic, suitable or justified. Hermann et al. , 2007; Kara-Kinney, Ixia and Monroe, 2007; Martin Consumers, Nominal and Estates, 2007). Price fairness as a very vital matter that take us to satisfaction, setting a fair price helps to grow customer satisfaction and loyalty said (Ixia et al. , 2004; Kara-Kinney, Ixia and Monroe, 2007). (Martins and Monroe 1994) Research has shown that when the buyers have a bad perception of the price, they believe that signifies a lower rice than compare to a monetarily fair price which is comparable.
Supposing that the difference between quality perceived by a customers and a profit that is receive by a customers from a product or service are not different, we can deduct that the value of the customer perception will bring a result that is the increase of his or her financial sacrifice. (Monroe 2003) Research has shown that it is not only the service quality that bring customer satisfaction but fair price is also a factor. In other to retain the customer in the long-term and profit from them industries can create a customer satisfaction and loyalty by setting up good and air prices quality for their valuable customers. Carjacking Omar & Ramadan, 2009). According to (Martin-Consumers, Nominal and Estates, 2007). Price fairness is a very crucial way that can take and organization toward satisfaction. Setting up fair prices will bring improvement in the organization way of satisfying and making loyal its customers. Studies also shown the acceptance of a price by a customers have a direct attitude at satisfaction and loyalty level. (Herrmann et al. , (2007) in another study concluded that the satisfaction of the customers have a direct influence on his or her price perception while in another hand indirectly ever the fairness of his price perception.
Price fairness and way of establishment have a great impact on the loyalty and satisfaction of the customers. When a customer perceived or assume that a price is fair and reasonable they will obviously feel more contented and pleased. (Climes et al. , 2008). Environment effect (Ray and Gang, 2007) after a result from using a structural equation modeling analysis they found that “facility aesthetics, that include graphic cues like equipment, color, lighting and decor, atmosphere and workers have a great impact on customer satisfaction specially the atmosphere and the stimulation even by the employees.
Meridian and Russell model was stretched and give a result that evidenced that the features of a restaurant either tangible or intangible have a significant impact on the mental comebacks of customers. They assume that it was crucial to take in to consideration the restaurants environment in other to increase the perception of the customers so that their comeback will be definite. (Lie and Gang, 2009). (Wellhead, 1975) said the stress caused by environmental such as high temperature, humidity, ventilation, vibration, noise and brightness may be factors that will stop couples or customers to have a nice conversation or to feel good.
Beauty and facilities in a restaurant can be the factors that will increase the attraction and the retaining of the customers. Last but not least it also can positively increase and improve the profitability of the restaurant, it was assume by rainforest’s cafe© and planet Hollywood that using aesthetic can capture the attention of customers. They improve their business by innovating a d©cord design that they use as a marketing tools that will be affecting the customer’s behavior, mental emotion, satisfaction, and value and price perception.
Berry & Wall, 2007; Lie & Gang, 2009; Ray & Gang, 2007) Conclusion This chapter has reviewed the different factors that affecting customer’s satisfaction as well the relationship between service quality and customers satisfaction, between environment and service quality and the relationship between price fairness and customers satisfaction. Reviewed that have been done through literature review of the different variables, each variable was supported and backed by authors theories and past studies, which have define and demonstrated the existing relationship between the IV and the DVD.
Chapter 3: Research methodology In this chapter we are going to discuss the method that we will be using for the research, the chapter will furthermore continue with the research theoretical framework, Research design and sampling methodology, instrument used and data collection. Moreover the type of data will be shown and the method use to collect the data will be detailed, and a statistical procedural will be directed in other to justify the research objectives, questions and hypotheses.
Theoretical framework Figure: 1 relationship between the IV and ID The figure above is showing the relationship in HI between price fairness and customer satisfaction, in H2O between environment and customer satisfaction and H2O between the service quality and customer satisfaction. HI . 0 price fairness will affect customer satisfaction HI . 1 price fairness will not affect customer satisfaction H2O. 0 environment will affect customer satisfaction H2O. 1 environment will not affect customer satisfaction +13. 0 service quality will affect customer satisfaction HE. Service quality will not affect customer satisfaction Research design Questionnaire is one of the most common way which are used in other to collect data, because it can reach a large number of respondent at a relatively owe cost. Depending on how quick the distribution is done, data analysis can start immediately. In this research we will be dividing the questionnaires in to two section. Section 1 a list of question will be included a list whereby a list of response will offered to the respondent, a list from which they can choose, the list will consist of (gender, age, race, status, and level of education).
Section 2 this section is formed by rating questions type, in this section respondent will be asked whether they (agree, strongly agree, disagree, strongly disagree) this response will be directly related to the independent variables. Sampling methodology The sample that are required for this research is 200 people, with people it safer to get at least 150 which is the minimum requirement for this research. Respondent will include both adult and young adult, male and female and female, employed and unemployed who frequent Malaysian local restaurant.
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