BITS PILANI

DEPARTMENT OF MANAGEMENT

Marketing Research (MBA G583)

Preliminary Project Outline

Submitted by:
GROUP 8
• A A Navaneethakrishnan (2019H1490848P)
• Satyarth Kumar (2019H1490856P)
• Rajdeep Basu (2019H1490838P)

Submitted to: Prof. Anil Bhat

Submission Date: 13th February, 2020

Abstract
Food is one of the basic human needs. The importance and value of food becomes absolute if people
want to remain able to maintain the continuity of their life. The food market has always played a
central role in a human being’s life, communities, communication, and culture. Restaurant is a
business which prepares and serves food and drinks to customers in exchange for money, either
paid before the meal or after the meal. They vary greatly in appearance and offerings, including a
wide variety of cuisines and service models starting from inexpensive fast food chains to high-priced
fine dining posh establishments. This research is aimed to know the influence of restaurant
ambience, food quality and service quality on customer satisfaction.

Research Background
The fundamental purpose of any business is to create value for customers and then extract some of
that value for the company in the form of profit. The restaurant business is no exception and the
extent to which the eateries succeed in creating high value for its customers leads to loyalty,
satisfaction and profitability.

This research is aimed at studying the significant influence of restaurant ambience, service quality
and food quality on customers’ satisfaction. For our study we have selected a restaurant called
GREENFIELD in the locality of CP (C’Not) in the university campus of BITS PILANI, Pilani Campus,
India. Greenfield serves a variety of cuisine and has both vegetarian and non-vegetarian options to
choose from. It is located in close proximity to other eateries such as Kamal’s, Sharma and Nobles
etc. We will study the ambiance, food quality and service quality at Greenfield and try to know the
relationship between the aforementioned factors with customer satisfaction.

Management Decision Problem

Greenfield a restaurant located inside the BITS Pilani campus in Pilani is facing multiple problems like
low footfall and a heavy decline in sales. It is located in close proximity to other competitors, and
serves a wide variety of food dishing out both vegetarian and non-vegetarian fare. What are the
factors that have so significantly contributed towards such decline in sales and revenue? Why is the
footfall reducing day by day? Is there any relation between the quality of food and services provided
by Greenfield and the customer satisfaction? Does the ambiance of Greenfield play a key role in
customer satisfaction?

Market Research Questions

1. Who are the customers at Greenfield? What is the extent of their loyalty?
2. Does the quality of food offered at Greenfield increase the extent of loyalty of the
customers?
3. Does the quality of service offered at Greenfield increase the extent of loyalty of the
customers?
4. What role does Greenfield’s ambiance play in attracting consumers and thus extend their
loyalty?
Marketing Research Problem
1. To know the significant influence of restaurant ambience, service quality and food quality on
customers’ satisfaction and thus their loyalty towards Greenfield restaurant simultaneously.
2. To understand which of the above factors contribute maximum towards perceptions of
value, across multiple dimensions such as economic, functional, emotional, and symbolic,
from the customer’s side.

Hypothesis
H1. There is a significant and direct relationship between customer satisfaction and their
behavioural intentions at Greenfield restaurant.
H2. There is a significant and direct relationship between restaurant ambience and customer
satisfaction level at Greenfield restaurant.
H3. There is a significant and direct relationship between restaurant ambience and customer
behavioural intentions at Greenfield restaurant.
H4. There is a significant and direct relationship between service quality and customer
satisfaction level at Greenfield restaurant.
H5. There is a significant and direct relationship between service quality and customer
behavioural intentions at Greenfield restaurant.
H6. There is a significant and direct relationship between food quality and customer satisfaction
level at Greenfield restaurant.
H7. There is a significant and direct relationship between price-value ratio (economic value) and
customer satisfaction level at Greenfield restaurant.

Research approach
A quantitative survey will be conducted. Sampling will be done with the aim of collecting
representative sample of 12-30 years of customers from different ethnic backgrounds.

The traditional approach of modelling the restaurant experience measures in terms of product
attributes such as quality of food, quality of service, the restaurant ambience. Customer value
dimensions are measured by how customers perceive the experience in terms of functional value
and economic value. This perception is based on the basis of benefits and costs i.e. the perceived
value.

This will further help us to understand which restaurant factors act as points of parity or points of
difference. Thus, we can have a better understanding of the behavioural intentions of the customers
i.e. loyalty and satisfaction.
Research Model