The purpose of this paper is to investigate the factors influencing the satisfaction of customer and customer loyalty in the fast food restaurant industry. A theoretical model, including hypotheses, has been proposed in this study.
Data were assembled using convenient sampling method. The hypothesized model was verified with the data from 204 respondents. Principal component analysis and structural equation modeling approach were applied to analyze data.
The results (significant at p<0.01 and p<0.05) exhibited that food quality, price and service quality were positively linked to customer satisfaction. Customer satisfaction was positively associated with customer loyalty. The empirical results found a contrary association between the location and environment of restaurant and customer satisfaction.
The managers and owners of fast food restaurants may use the results of this study to confirm customer satisfaction and loyalty of the customer. With loyal customer groups, their businesses can be sustained and gradually grown up.
This study will provide guidelines for the management of fast food restaurants to formulate their business strategies in the competitive market. It will give a signal to the managers to stay focused on customer relationship management as the ultimate goal of the business.
