Factors Affecting Customer Switching Behavior in Resturant Industry in Pakistan

Factors Affecting Customer Switching Behavior in Restaurant Industry
Factors affecting Customer Switching Behavior in

Restaurant Industry
A thesis Submitted in a partial fulfillment Of the Requirements for the Degree
Of
Bachelor of Business Administration (Hons)
Dadabhoy Institute of Higher Education DIHE
By
Qurban Ali Odhano
To
Honorable Assistant Professor Ms Anum Shaikh
Year of Submission
2016
1
Acknowledgement
First of all, I pay my gratitude to Almighty God without whom there is none who
can really Understand and help us when we are in the deep troubles and sorrows.
Almighty! Thanks for Your kindness and graciousness to endow me the strength
to complete this humble piece of Research.
Then thanks to my beloved and kind teacher who taught me and make me able to
Accomplish this task, some time being somewhat strict but I must say madam you
have made my Life, your supervision is just like a blessing for me, profound
gratitude goes to:
My mentor, Madam Anum Shaikh who taught me by hook and by crook made me
able to burn mid night oil to be a scholar, sometimes also befitted as a workmate
in the Process of research, Thank you Madam Anum Shaikh with the core of heart
and forever.
Thanks to my loving class for cherish and guiding us. I must say thanks to my
father being a Van driver and my mother a tailor for being supportive in every
instance and remove hurdles to make me able, my loving mother you have made
me able every time leaving home with full preparation.
In the end I must say research is only possible when people are there to support
you, being so lucky I am able to write my BBA (Hons) thesis.
2
Chapter 1
1. Introduction
Restaurant is a French word which means “to restore”- a place where
peoples are restored to strength and vigor refueling, as it were, with food.
Restaurant is a place where the people are buying their food and comes for the
entertainment, reputation, good atmosphere and the best quality of food[ CITATION
And06 \l 1033 ]. The basic need of human is hunger. The human body needs food
for energy and sustenance. So that people is buying food from a fancy restaurant
or a normal stall based on their budget.
There are more researches conducted on Airline, Banking and Hotel
industries as compared to restaurant industry. Now a day’s numbers of firms are
establishing restaurants and targeting booming market to acquire competitive
advantage. According to the need and income level of customers, different
restaurants are offering variety of food along with distinct services which increase
the customer switching intention. Firms have their hidden motive to increase
customer bank in order to acquire fair part of market share which will leads to
higher profits[ CITATION Cho04 \l 1033 ]. All firms are trying to match their
performance with the expectations of customers in the market. Successful firms
are identifying customer need and wants and accordingly forming their strategies.
Restaurant managers should also know that why customers visit their restaurants.
Some customers visit restaurants for enjoyment rather than simply eating
meal[ CITATION And06 \l 1033 ].
Service firms especially restaurants are facing the problem of increasing
customer switching behavior. Switching behavior can vary from culture to culture.
Different countries are facing different switching behaviors of customers.
Restaurant customers are abandoning their services for other restaurants. It is a
hazard for a service provider. If a restaurant is not making their customers
satisfied then they may switch to its competitors. Building profitable customer
relationships can be a way to reduce the switching problem. Customer loyalty is
very necessary for earning long-term profits in restaurants[ CITATION Cho04 \l
1033 ]. Service firms understand the increasing importance of retaining their
profitable customers for long term benefits[ CITATION Nim12 \l 1033 ]. Increasing
3
customer switching behavior is a big hurdle for service providers in retaining their
customers and capturing their life time value. Variety seeking customers are also
switching towards different restaurants instead of having loyalty with the
firm[ CITATION Placeholder1 \l 1033 ]. Living standard of peoples differs from
person to person. In restaurant chain, variety seeking behavior, convenience,
service quality and competitive attraction are key factors in attaining and retaining
target population, because each and every customer has different level of income,
preferences and social status [ CITATION And06 \l 1033 ].
1.1Background of Problem
Switching behavior is a consumer behavior where the behavior of
consumer differs based on the satisfactory level of the consumer with product or
service. Switching behavior can be taken as process of being loyal to one
company and to switching to another company because of competitor
attraction[ CITATION Cen07 \l 1033 ] , variety seeking behavior (Beldona, Moreo,
& Mundhra, 2010), convenience[ CITATION Sei \l 1033 ] and service quality.
Customer switching behavior is process of when a customer looks for alternative
and switches one product or service to another. There are a number of reasons
behind. The decision of customer that whether to remain loyal with the purchase
or switch to another is very crucial. It depends upon the customer own perception
that why to switch. One can say that switching behavior is the customer internal
perception. Customer switching sometimes also known as customer jumping,
switching behavior is choosing different from routine use of services to switch
towards another similar or new services. Now a day’s companies are mostly trying
that customer switch to their brand, they are enforcing customers to switch by
providing different offers and different value added services.
1.2 Identification of gap
Study on customer switching behavior in banking industry indicates some
important limitations and also gap for future studies.[ CITATION Vya14 \l 1033 ]
suggests that future research can cater some other important drivers of customer
switching behavior like variety seeking behavior and convenience. [ CITATION
Vya14 \l 1033 ] also suggests that future studies can be conducted in other service
domain like restaurant, air transportation, medical etc. [ CITATION Vya14 \l 1033 ]
further suggests analyzing the impact of moderating variable like customer
4
relationship in the relationships of customer switching behavior and its factors.

Service quality is also adapted from this study.
Research based on brand switching in high technology capital products
suggests that similar study can be conducted in other industries to enhance the
understanding of brand switching[ CITATION AlK14 \l 1033 ]. Researchers have
also taken some important variables like competitor attraction and customers’
perceived value from a conceptual paper model on brand switching behavior
[ CITATION Che14 \l 1033 ].
On the basis of these research gaps researchers have developed a model and
theoretical framework of the study. This study includes five important variables
identified from other studies gaps. Variety seeking behavior, convenience, service
quality and competitor attraction are independent variables, where as customer
switching behavior is dependent variable. Customer relationship and customers’
perceived value are moderators for this study.
1.3 Contextual Analysis
Restaurant industry of Pakistan is rapidly growing and customers’
preferences about restaurants services are changing. Due to which, customers
switching behavior is also increasing in restaurant industry. [ CITATION Azi14 \l
1033 ] indicates that it is pivotal to explore customer switching behavior and
factors behind customer switching. This study assists management of restaurants
to make changes according to the changing preferences of customers to achieve
high profits and acquire customer life time value[ CITATION Azi14 \l 1033 ]. This
study aims to focus on the restaurant industry of Pakistan because of its high
consumption and increasing customer switching behavior [ CITATION Sab14 \l
1033 ].
1.4 Problem Statement
Restaurants of Pakistan are increasingly facing the problem of customer
switching behavior, which is highly affected by a number of factors. These may
include, competitive attraction, variety seeking behavior, convenience, service
quality, customers’ perceived value and customer relationship[ CITATION Che14 \l
1033 ] [ CITATION Vya14 \l 1033 ].
5
1.5 Research Questions

Following are the research questions,
Q1. What is the effect of competitor attraction, variety seeking behavior,
convenience and service quality on switching behavior of customers?
Q2. How does customers’ perceived value and customer relationship
moderates the relationship of competitor attraction, variety seeking behavior,
convenience and service quality with switching behavior of customers?
1.6 Objective of Study
Following is the research objective,
To determine the effect of competitor attraction, variety seeking behavior,
convenience and service quality on customer switching behavior and to analyze
the moderating affect of customer relationship and customers’ perceived value on
the relationship between competitor attraction, variety seeking behavior,
convenience, service quality and customer switching behavior.
1.7 Rationale of Study
Restaurant industry is rapidly changing because of the rapid change in
customers’ preferences. It is pivotal to understand customers’ preferences about
restaurants and their switching intention [ CITATION Azi14 \l 1033 ]. According to
the need and income level of customers, different restaurants are offering variety
of food along with distinct services which increase the customer switching
behavior. This research study is conducted to identify the impact of competitive
attraction, variety seeking behavior, service quality and convenience with the
moderating effect of customer relationship and customers’ perceived value on the
switching behavior of customers in restaurant industry of Pakistan.
1.8 Significance of Study
This study will assist the management of restaurants to meet the
customers’ expectations by understanding the impact of a number of factors on
customer switching and increase the customer loyalty. Management of restaurants
can make certain changes to retain their customers. Furthermore, this study also
identified the effect of competitive attraction, variety seeking behavior,
convenience and service quality with moderating role of customer relationship and
customer perceived value on customer switch behavior, after analyzing the
gathered data. Results of this study add knowledge to academic studies.
6
1.9 Delimitations of Study
1. The study only covers the geographical boundaries of Islamabad and

Rawalpindi, Pakistan.
2. This research considers these factors competitive attraction, variety
seeking behavior, convenience, service quality, customer relationship and
customers’ perceived value but some other factors are still remaining for
study like price, reputation and other external factors.
7
1.10 Operational Definitions

Sr.no Variable Operational Definition Source
Competitor attraction is a strategy to

[ CITATION
Competitor attract competitor’s potential
01 Lia13 \l 1033
attraction customers to increase their customer
].
pool.
Variety seeking is tendency to seek [ CITATION
Variety seeking
02 different consumption situation and Ber01 \l
behavior
also considered consumer behavior. 1033 ].
Convenience is defined as the
consumer’s perceived degree of (Farquhar
03 Convenience avoidance of time and effort and Rowly,
associated with the entire service 2009).
process.
Service quality is defined as an [ CITATION
04 Service quality overall assessment of service by the All00 \l 1033
customers ].
It can be defined as the ratio of [ CITATION
Customers’
05 perceived benefits relative to And06 \l
perceived value
perceived sacrifice. 1033 ]
[ CITATION
Customer Any kind of emotional attachment
06 Bar03 \l
relationship to or connection with the firm.
1033 ]
Customer Switching behavior refers to [ CITATION
07 switching customers leaving one product or Gar02 \l
behavior service in favor of another. 1033 ].
8
Chapter 2
2. Literature Review
In restaurants, customer service is very crucial, especially when customers
have a number of choices to switch. Restaurants are growing in developing
countries. Switching behavior of consumers harms market share and declines the
profitability of organization. Customers are daily presented with a number of
choices. It is also difficult for customers to make the right choice[ CITATION
Hua10 \l 1033 ][ CITATION Hen11 \l 1033 ].
2.1.1 Customers Switching Behavior
Switching Behavior refers to customers leaving one product or service in
favor of another[ CITATION Gar02 \l 1033 ]. Customer switching behavior
represents a dynamic process that develops over a particular period of time and
results in relationship ending[ CITATION Nim12 \l 1033 ]. Switching behavior
reflects the direction that a customer makes to stop purchasing a particular service
or patronizing service firm completely[ CITATION Vya14 \l 1033 ].
Customer switching is a position in which customer stop business
transaction with a specific firm and start with another similar firm. Switching
behavior is a consumer behavior where perception of consumer changes based on
satisfaction provides by service provider[ CITATION Ger04 \l 1033 ]. Customer
switching occurs by buyers for stop transaction relationship and initiating a new
relation with some other business[ CITATION Akw14 \l 1033 ]. Customer switching
behavior is very harmful for service firms because it damages their market share.
Practitioners and researchers are still exploring the switching intentions of
customers, in order to reduce the number of customers who are switching.
Managers should increase the switching barriers to retain switching customers
[ CITATION Cle10 \l 1033 ]. Customer unhappiness is the key factor which results
in customer switching to another service provider[ CITATION Naw11 \l 1033 ].
Most of the customers switch from one service provider to another because of low
quality service.[ CITATION All00 \l 1033 ].
Attitude of customer have also a significant role as some customer leave a
firm in case of service failure and some other consider the service provider and do
not switch [ CITATION Ant01 \l 1033 ]. Customer satisfaction decreases the
9
chances of customer switching and also increase the number of customer visits
which result in business profitability [ CITATION Bow01 \l 1033 ]. It is not
essential that unhappy customer change service provider but in some industries
approximately 70% happy customer also switch from one service to another
service[ CITATION Naw11 \l 1033 ].
Customer switching behavior is a critical problem for business
firms[ CITATION Ran06 \l 1033 ]. Increasing number of service offerings gives an
opportunity to customer to change its current service provider [ CITATION Jar05 \l
1033 ]. Customer switching intention is high when perception of customer is very
high about service provider services[ CITATION Han11 \l 1033 ]. Service quality,
service performance and price are the main determinants through which customer
analyze the services and switch to other service provider [ CITATION Col01 \l 1033
]. Poor service quality lead to customer switching but some customer want to
change their service provider but they do not change because of switching cost,
because of limited resources some customers are unable to change service
provider [ CITATION Jon07 \l 1033 ].
Customer switching behavior is threat for all businesses. Customer
switching is level of propensity to switch from one product to another. Switching
behavior is seriously threat for companies to achieve their long term relationship it
damages the customer’s trust[ CITATION Akw14 \l 1033 ]. Companies must focus
on customer switching decisions process which is helpful to manage the
customers. Understanding the switching and its reasons which help to control cost
of acquiring and regaining the customers. It is necessary for managers to
understand the switching behavior of customers, in order to build strong
relationships with them[ CITATION Lin10 \l 1033 ]. Academics and practitioners
have increased their attention towards customer switching behavior because of its
destructive effects on the firm. It is pivotal to understand customer switching
decision which is an important step of developing, maintaining and retaining
successful relationships. Research suggests that relationships help in determining
customer switching behavior. Study conducted by [ CITATION Ger04 \l 1033 ]
reveals that inconvenience is one of the factors which strongly influence customer
switching. Study on mobile service users explains that competitor attraction and
10
inconvenience are among the significant factors that affect the customer switching
behavior[ CITATION Placeholder3 \l 1033 ].
11
2.1.2 Competitor Attraction

Competitor attraction is a strategy to attract competitor’s potential
customers to increase their customer pool [ CITATION Lia13 \l 1033 ]. Competition
adds value and also captures the attraction of potential customers. The strength of
competitive attraction today depends on the future position of market share.
Researcher [ CITATION Mur09 \l 1033 ] stated that competitive attraction means
firm determined independently for buyers' support to increase its business profits.
Competitive attraction means implementing set of laws to assure that firms can
battle with each other and with regard to sell their goods and services to
customers[ CITATION Cas09 \l 1033 ].
As competition goes up the level of business transparency is increase to
attract customers. Increasing level of competition gives a way toward good market
regulation[ CITATION Jin14 \l 1033 ]. Use of competitive attraction enhances
business benefit. When a firm increase use of competitive attraction in market the
firm focus on its own profits. Firm try to achieve its goals through competitive
strategy [ CITATION Kim13 \l 1033 ]. Competitive attraction is strongly allied to
how market position varies and develops. Competition is usually more energetic
in shifting established markets, a concept supported by the empirical findings
[ CITATION Peh11 \l 1033 ]. Competitive attraction is widely measured a positive
strength in many sectors, it is believed to have a good effect on an industry’s
performance, newness and worldwide competition. Competitive attraction is not a
usual fact it is created by the firms to acquire more customers by snatching from
other firms [ CITATION Kor10 \l 1033 ]. Competition is mainly significant in
market to save money of the customers. Competitive attraction is a way to
eliminate price unfairness and therefore offer customer savings and support in
market development. Competitive attraction pushes firms to decrease its price and
provide timely services. Competitive attraction increase customer service to retain
customers [ CITATION Arr15 \l 1033 ].
Competitive strategy is superior because it decreases the cost of production
and also increases quality of service. Competitive attraction could force firms to
provide effective service in order to survive in the market. Customer’s gains can
be saved through facing competition and attracting customers[ CITATION Mok08 \l
1033 ]. Competitive dynamics of the market place change, organizations must
12
change the way they compete, Firms have to modify their way of competition in
order remain in market and fight against market competition[ CITATION Tam13 \l
1033 ]. Value-creating services and customer attraction towards a firm sustained
more market share. Global competition is an evaluation of a firm’s strength and
weaknesses in offering its services and products to the international Market. Many
countries are trying to improve their service to attract customers and to defend
competition [ CITATION Cha \l 1033 ].
Competition gives a method to establish a new business and attract buyers.
Customer attraction through competition develops an opportunity to increase
revenues. The competition performs a major role in development of market
[ CITATION Jon11 \l 1033 ]. Companies have to increase competition to attract
consumer and to secure best position in the market[ CITATION Placeholder4 \l
1033 ]. Attraction of competitor in market competition provide oblivious benefits
to customers as well firms and firm also use new technology and efficient service
in order to attract more customers in market. Competition is a track of fighting
with competitors which affects firms and to attract customers by reducing prices
and efficient services. Competition give pressure on firm to effectively meets
customer requirement. Competitor attraction provides high variety of improved
services and products. Number of firm enters in the competition to attract
customer and make profits. Presence of competition in market results in customer
cost saving [ CITATION Maj10 \l 1033 ]. Most successful firm is one which have
expertise that can provide customize services to attract customer and to face
market changing’s. Before attracting customers firm have to build skills and core
competencies to attract customers[ CITATION Gor11 \l 1033 ].
In some cases firm’s effort to build customer relation and loyalty and also
keep them satisfied but due to competitor attraction they think for switching.
Competitor attraction is among the factors that may affects switching behavior of
customers in service firms[ CITATION Lia13 \l 1033 ].
2.1.3 Variety seeking Behavior
Variety seeking behavior is tendency to seek different consumption
situation and also considered consumer behavior [ CITATION Ber01 \l 1033 ].
Variety seeking happens when there is small difference between brand attributes
and also consumer brand loyalties are low. Least preference occurs when
13
customers move for variety seeking[ CITATION KaJ14 \l 1033 ]. Important pattern
of explanation for brand switching is variety seeking. Variety seeking behavior
increases when customer moves for number of items[ CITATION Mei13 \l 1033 ].
Actually variety seeking behavior is generated through intrinsic and also extrinsic
motivation.
Variety seeking behavior is essential aspect among consumers in
restaurant industry. Variety seeking behavior is consumer propensity in order to
change the items or to seek the diversity in purchase choice of goods and services.
Most of consumers sacrifice real time enjoyment for the sake of variety
seeking[ CITATION JOO13 \l 1033 ]. Variety seeking consumers are highly
involved with product category. Variety seeking consumers are looking for brand
alternatives. Due to variety seeking behavior brand loyalty decreases, sometimes
happen consumers move away from their favorite products due to variety seeking
[ CITATION Ber01 \l 1033 ]. Variety seeking is reflected switching to another
choice. Consumers seek variety in product category for the purpose to change
itself. Most of consumers seek variety in content of food consumption. Variety
seeking also effects in eating it is also further challenge for restaurants to establish
sustainable competitive advantage[ CITATION JOO13 \l 1033 ].
Restaurant industry focuses on variety seeking which effects on customer
loyalty, retention and switching habits. Restaurants also can make greater variety
in their menus [ CITATION Ber01 \l 1033 ]. Variety seeking behavior is considered
important component of restaurants choice. On basis of experience consumers
decide for variety seeking that which restaurant should be visit. Consumption
situation leads to more variety and novelty in their daily life. Variety seeking
varies according to personality and characteristics of different people [ CITATION
HaJ \l 1033 ].
Companies should not only focus on improving satisfaction level but also
designing strategies to reduce negative impact of variety seeking. Sometimes
variety seeking is high when product has more pleasant attributes. Consumers
either need variety through purchase of new options or alternating among familiar
brands[ CITATION Big08 \l 1033 ]. Satisfied customers decide to switch product or
service provider because of variety seeking tendency. Variety seekers prefer
novelty in their destination choice. Variety seeking is not associated with low
14
involvement purchase. Product variety has influence on variety seeking. Effect of

variety seeking in restaurant industry found that negatively effects on customer
intention to turn the company [ CITATION ere \l 1033 ].
Variety seeking is also behavior that customers get change over time and
also seek various varieties [ CITATION Siv10 \l 1033 ]. In variety seeking product
category includes characteristics and also features in product choice. While in
variety seeking consumers get experience of different products or brands due to
that consumers change their service provider [ CITATION ere \l 1033 ]. In variety
seeking sales promotions motivates for switching and customers get different
options in product category. Actually customers are also motivated due to their
need so that they search variety [ CITATION Gro08 \l 1033 ]. Variety seeking is
also increase in choices that customers have large set of goods. Infect choices also
increase variety seeking those customers are willing to try new goods and services
and also seeking new product categories [ CITATION Ver05 \l 1033 ].
Variety seeking takes place within product or across the product categories
it depends on customers what choice they make [ CITATION Sha10 \l 1033 ]. Some
time customers have high involvement in variety seeking so that it is always
considered that customers switch when they move for variety seeking [ CITATION
Mic03 \l 1033 ]. Mostly customers change their items which they consume or
seek assortment in purchase choice of goods and services (Lin & Mattila, 2006).
In restaurants repeat visit intentions decreases when customers interested to seek
variety in their choice [ CITATION Kim10 \l 1033 ]. Variety seeking consumers
mostly look for brand alternatives they seek various options in their choice and
also accomplish their need [ CITATION Roe04 \l 1033 ]. While in food category
variety seeking has important role that consumers get experience in food selection
(Liu & Murphy, 2007). In customer retention variety seeking has negative impact
due to that loyalty also declines that are bad sign for any company [ CITATION
Yag01 \l 1033 ]. Variety seeking customers decide for switching because they seek
choices or alternative which give them satisfaction and complete their required
need [ CITATION Sha10 \l 1033 ].
2.1.4 Convenience
Convenience is defined as the consumer’s perceived degree of avoidance
of time and effort associated with the entire shopping process. Availability and
15
quality of information about the product and its competitors as well as their
convenience is also motivates the customers towards switching [ CITATION
Sei00 \l 1033 ]. Working Women and more two income households demand more
convenient food because of their busy schedule. Changing lifestyles and social
values increases demand for more convenience food. Limited time and changing
consumer lives forms the bases of growing convenient food market [ CITATION
Lee13 \l 1033 ].
Convenience is a factor which is very important for the consumer
[ CITATION Buc05 \l 1033 ]. Lack of convenience can be reason for confining
relationship with one service provider where as convenience can discourage this
[ CITATION Pan06 \l 1033 ]. Convenience is influenced by various factors in
relation to its firm like company’s brand name. Service provider remains
conscious for implication of convenience for customer value and loyalty (Berry,
Seiders, & Grewal, 2002). Convenience may make bond or tie with service
provider even though satisfaction with service is not high. Most of customers are
frequent purchaser due to convenience which may determine their purchasing
habits and loyalty.
Convenience performs an important task in the connection among
customers and firm[ CITATION YPa06 \l 1033 ]. Inconvenience is determined as a
reason of customer switching exit a relationship and convenience is determined as
strength of customer and seller relationship [ CITATION Kenm \l 1033 ].
Convenience was defined as consumer method of saving time and
effort[ CITATION Placeholder7 \l 1033 ]. Convenience has an impact on customer
purchase behavior[ CITATION Sei07 \l 1033 ]. Convenience is the main component
for competing in retail business. Convenience can be service provider location,
time of service delivery, hours of operations and other facilities like car parking;
credit card etc. service convenience is the ease of speed [ CITATION Moe09 \l 1033
].
Convenience is a key feature to attract customer for food choice
[ CITATION Ahl06 \l 1033 ]. Convenience products are those which take less time
and less physical action [ CITATION Placeholder7 \l 1033 ]. Convenience has
multiple dimensions according to social society [ CITATION Car06 \l 1033 ]. and
convenience is very complex perception as compared to anticipated [ CITATION
16
Sch05 \l 1033 ]. Limited time, work pressure, less time for food preparation and
status in society are elements which increase convenience restaurant
demand[ CITATION Can01 \l 1033 ]. Consumers judge their previous experience
when they want to purchase convenience food [ CITATION Ols12 \l 1033 ].
Inconvenience is a competitive disadvantage and a way towards losing your
customer and barrier to acquire new customers[ CITATION Rei14 \l 1033 ]. Service
convenience is conceptualized as customer’s access and service delivery time
perception related to consumer buying behavior[ CITATION Placeholder7 \l 1033 ].
Increasing cost of time maximize the demand of service [ CITATION Ahl06 \l
1033 ]. Access of service convenience includes speed and facility of services
which are offered to customers [ CITATION Sei00 \l 1033 ]. Convenient location of
restaurant is determined as an important factor of visiting frequency of customers
[ CITATION Sev01 \l 1033 ]. Convenience counted as an important element for
making purchase decision[ CITATION Ans07 \l 1033 ]. Convenience services are
became part of customer life [ CITATION Hei08 \l 1033 ].
2.1.5 Service Quality
Service quality is defined as an overall assessment of service by the
customers[ CITATION All00 \l 1033 ]. It is also one of the important factors that
customers consider while measuring the service quality. Service quality is also
defined as a customer’s perception of difference between the expected service and
the perceived service[ CITATION Akk06 \l 1033 ]. Service quality is a judgment of
expectations with performance. Bo Edvardsson (1998) explained Service quality
corresponds to the expectations of customers and satisfies their needs and
requirements. Firms with high service quality can meet customer needs in
competitive environment.
Service quality is basically a measurement of how well a service is
fulfilling the expectations of customers. Customers switch to that service provider
whose services are matching to the perception of customers. Research refers that
best service quality leads towards customer switching [ CITATION Sha06 \l 1033 ].
Service quality is one of the most critical factor and important for the profitability
of the service firms. It is nearly impossible to survive in competitive market
without focusing on service quality. Service firm can differentiate itself from its
competitors by providing high service quality. It is very difficult for the service
17
firms to frame and completely understand the perception of service quality

[ CITATION Pry09 \l 1033 ]. Researcher and practitioners are exploring the concept
of service quality. Service quality can be an important weapon for service firms
for gaining competitive advantage over competitors. Service quality can also
retain customers’ trust and it is necessary for sustaining competitive advantage.
Service quality can leads towards customers retention which can results in high
revenues. Poor service quality can results in unfavorable customer
intention[ CITATION Bak11 \l 1033 ]. Studies relate switching behavior with
quality of services. Customers compare their prior expectations with service
performances because of that switching occur. A research conducted on service
quality defines it as the customer’s feeling of the relative superiority or inferiority
of a service provider and its services.
Researchers conceptualize service quality and explain its relation to the
performance of companies. It is sometimes taken as an overall attitude of
customers towards a service provider[ CITATION All00 \l 1033 ]. Service quality
can make high revenues and growth when done well. High service quality can
produce high customer satisfaction that can retain customers or influence
customers to switch[ CITATION Akk06 \l 1033 ]. Through best service quality
companies can gain competitive advantage and can capture customer’s lifetime
value. It is a challenge for firm’s managers to manage this asset (service quality)
and after this, another challengeable task is to offer service better than your
competitors otherwise company may face customer switching behavior. Some
researchers like [ CITATION Joh00 \l 1033 ] avoid in addressing the differences
between customer satisfaction and service quality. They used both terms
interchangeably. On the other hands, some researchers argued that customer
satisfaction and service quality are two different constructs.
High service quality results in customer’s satisfaction which can decrease
customer switching behavior. Service quality can also lead towards repurchase
intention[ CITATION Sri13 \l 1033 ]. Service quality has an impact over customer
loyalty which can reduce the customer switching behavior[ CITATION Kur10 \l
1033 ]. Service quality including quality of food is main determinant of customer
satisfaction[ CITATION Pry09 \l 1033 ]. The role of service quality in restaurant
industry cannot be ignored. It is necessary for restaurant managers to clearly
18
understand the increasing importance of service quality and also its relative
importance for customers, it surely assist managers to improve service
quality[ CITATION Akk06 \l 1033 ].
Service quality and customer switching behavior are two most key factors
that influence service firms' market share and success. Researchers are studying
their effects and relationships over time[ CITATION Lia13 \l 1033 ].
2.1.6 Customer perceived Value
It can be defined as the ratio of perceived benefits relative to perceived
sacrifice[ CITATION And06 \l 1033 ]. Research defines perceived value as
exchange between money and service means what customer is sacrificing and
what is receiving [ CITATION Bus05 \l 1033 ]. Customers’ perceived value is the
major element to retain customers and also loose customer. As compared to
product service, it is the major element to consider [ CITATION MIL11 \l 1033 ].
Customer’s perceived value is an important factor which affect on
selection of service experience and a major element to determine customer
purchase behavior. Perceived value has a vital role in identifying customer
purchase decision. Perceived value influence on the customer purchase decision
[ CITATION Chi13 \l 1033 ]. According to [ CITATION DEN11 \l 1033 ] there is a
significant affect of perceived value on buying decision of consumer. Perceived
value is overall assessment of a service in customer mind that what is given and
what is received. Customer perceived value is of alarm for visitor to create bulk
purchase. Customer perceived value is of concern for consumers wishing to make
sound purchase choices.
Consumer attraction towards a service or product is result that what he
sacrifice and how much value consumer gain in shape of product or service.
Customer perceived value is highly linked with price, quality and happiness and
more dimly linked to individual standards[ CITATION Mat02 \l 1033 ].
Customer perceived value is the interchangeability between consumer and
seller. Perceived value is commonly define the principles of right and wrong
accepted by the consumer thinking. Perceived value requires satisfaction
otherwise your customer can leave you[ CITATION Lap00 \l 1033 ]. Customer
perceived value vary from one customer to another because all each and every
customer perceived value is different. Customer analyze perceived value by
19
quality and price, are also customer perceived value change according to type of
product and service purchased and its consequence to the customer. Customer
perceived value also varies over the time because of situation[ CITATION Tea00 \l
1033 ].
Customer perceived value can be derived from interaction of customer
with product or service. A product and service perceived value in mind of is
measured by the circumstances that where it make a customer happy. Customer
switching is the result of difference between customer perceived performance and
service performance. Perceived value is linked with customer past experience
which influence customer internal perceived values[ CITATION And06 \l 1033 ].
Customer perceived value can be making a customer loyal. Customer-perceived is
part of building relationship to bond your customer with your business, customer
perceived value provide benefit to firm and establish a faith for firm in mind of
customer. customer-perceived value is customer mentality to judge soled benefit
of service which a customer gain, a consumer’s perception of the net benefits gain
compare to cost which a customer pay [ CITATION Cha12 \l 1033 ].
Perceived value is the major component for top management to retain
customer. Customer perceived value is a pillar of getting competitive advantage.
Customer perceived value is the evaluation of a firm that how much firm satisfy a
customer. Perceived service quality is a measuring component which has a
positive impact. Value is the more than the essential than superiority of service
and it is mainly judged by the customers[ CITATION Ant01 \l 1033 ]. Firm image
and reputation influence customer perceived value. Perceived value in the mind of
customer can be analyzed through the customer purchase behavior. Service and
quality are the basics of customer perceived value. Some customer perceived
value as a price and other as service quality. Customer perceived value is the two
way process of getting and giving [ CITATION Fer07 \l 1033 ].
2.1.7 Customer relationship
Customer relationship is defined as any kind of emotional attachment to or
connection with the firm[ CITATION Bar03 \l 1033 ]. It is also an important
condition for building customer relationship. It is not about repurchasing only, it is
the emotional attachment that customer mostly feels about their family or friends.
A customer also aims to build strong relationships with service firms. These close
20
relationships consist of a number of customer’s perceptions about the company.

These perceptions can be about the service quality and value. Customer decides
that on which company or brand he will rely or trust in his life[ CITATION Jag02 \l
1033 ].
Customer relationships are generally ranging from fake or artificial
relationship to strong relationship, which is the result of trust and commitment.
Customer relationships works as bonds[ CITATION Akw14 \l 1033 ]. It is so
important to maximize the relationship with customers. Firms should also focus
on relationships benefits. Relationship benefits are those that customer gain above
its services. These benefits can tie customers to the company. Customer can
switch service provider if relationship benefits are unappealing to them. Customer
relationship efforts can improve the profitability of company [ CITATION Lil02 \l
1033 ]. Service industries are increasingly unstable. Customer relationships are
unpredictable and also dynamic in service industries. Companies are acquiring
potential customers and creating long term relationships with them[ CITATION
Hei14 \l 1033 ]. Understanding customer relationships can also helps in
understanding customers switching behavior. Customer develops his relationship
when he receives benefits from a new or existing service provider [ CITATION
Akw14 \l 1033 ]. Today service firms are worried about retaining customers.
Because of fierce and intense competition customers are switching their service
providers; service firms are trying to establish meaningful relationships with
customers in order to capture their life time value and reduce switching behavior
of customers. Companies are also trying to focus on customer satisfaction which
leads towards customer’s long term relationships[ CITATION Roo99 \l 1033 ].
The main objective of the managing customer relationship is to increase
number of visits and maximize the profit of the business. Maintaining relationship
with customer give a way to bond customer with your business[ CITATION
Hua05 \l 1033 ]. Customer relation with the business in not only aims to make
customer loyal but it also motivates customer to give suggestions for improving
services[ CITATION Ram08 \l 1033 ]. Good customer relationship is essential to the
business. Understanding customer need and wants build a strong relationship with
the firm[ CITATION Kum14 \l 1033 ].
21
Customer relationship is a competitive tool therefore researchers are

paying more attention to understand customer relationships. Customer
relationships have a role in customer decision making process. Repeat purchase
takes place because of customer relationships which contributes to firms revenues.
For this purpose, the professionals of restaurant industry and academia are putting
their efforts to understand customer relationships[ CITATION Kim08 \l 1033 ].
Firms are focusing on maintaining customer relationships not in customer
acquisition. In today’s competitive environment customer relationship
management is a way to overcome customer switching behavior. Companies may
not earn high profits by misperceiving or not clearly understanding customer
relationships[ CITATION Akw14 \l 1033 ].
22
2.2 Theoretical Framework:

The designed model is showing that variables are affecting customer
switching behavior in restaurants. The arrows are showing the effect of
independent variables (competitive attraction, variety seeking behavior, service
quality and convenience) over dependent variable (customer switching behavior)
and also show the effect of moderating variables (customer relationship and
customers’ perceived value).
Customers’
perceived value
Competitor H5 H6 H7 H8
attraction H1
+
Variety
seeking H2
behavior
+ Customer switching
behavior
H3
-
Convenience
-
H4
Service quality
H9 H10 H11 H12
Customer
relationship
23
2.3 Description of Variables

Variable description Type of Variable Reference
[ CITATION Che14 \l
Competitor attraction Independent Variable
1033 ]
Variety seeking [ CITATION Vya14 \l
Independent Variable
behavior 1033 ]
[ CITATION Vya14 \l
Convenience Independent Variable
1033 ]
[ CITATION Vya14 \l
Service quality Independent Variable
1033 ]
Customers’ perceived [ CITATION Che14 \l
Moderating Variable
value 1033 ]
[ CITATION Vya14 \l
Customer relationship Moderating Variable
1033 ]
Customer switching [ CITATION Vya14 \l
Dependent Variable
behavior 1033 ]
2.4 Formulation of Hypotheses:

H1: Competitive attraction has positive impact on the switching behavior
of customer.
H2: Variety seeking behavior has positive impact on customer switching
behavior.
H3: Convenience has negative impact on customer switching behavior.
H4: Service quality has negative impact on customer switching behavior.
H5: The effect of competitive attraction on customer switching behavior is
moderated by customer’s perceived value.
H6: The effect of variety seeking behavior on customer switching behavior
is moderated by customer’s perceived value.
H7: The effect of convenience on customer switching behavior is
H8: The effect of service quality on customer switching behavior is
H9: The effect of competitive attraction on customer switching behavior is
moderated by customer relationship.
24
H10: The effect of variety seeking behavior on customer switching

behavior is moderated by customer relationship.
H11: The effect of convenience on customer switching behavior is
H12: The effect of service quality on customer switching behavior is
25
Chapter 3
3. Research Methodology:
3.1 Research Approach:
Explanatory approach was used for this research and researchers also
tested the hypothesis. Explanatory research approach focuses on why questions. It
involves developing casual explanations. It is defined as a research approach used
to identify casual relations between variables that relate to the research
problem[ CITATION DeV01 \l 1033 ]. Very few researches were conducted in the
past associated to this study and these variables, researchers had to explore,
investigate and figure out the way variables behaved. For the understanding of the
problem, questionnaire method is the most feasible option.
Hypothesis testing is also known as significance testing, which is defined
as a method for testing hypothesis or a claim about a factor in a population, using
gathered data measured in a sample[ CITATION Leh08 \l 1033 ]. Hypothesis testing
was used in order to find out the relationship among variables. This approaches
led the researcher towards better understanding of the problem and the nature of
the research as well. This also led towards better understanding of the complex
relationship.
3.2 Study Population:
Data was collected from the restaurant industry of Pakistan through online
and manual questionnaires.
3.3 Study Organization:
Restaurants of Islamabad and Rawalpindi were taken as the sample of this
study. Restaurants included for data collection are Habibi, Darbbaar, Margalla,
Des Pardes, China Town, 1969 Restaurant, BBQ Tonight and Shehenshah
restaurant.
For data gathering, a formal request was made through telephone in the above
mentioned restaurants of Islamabad and Rawalpindi. This request led the
researchers to visit the restaurant. The process led towards an agreement of
providing the data via questionnaires.
26
3.4 Sampling:
Sampling involves taking a representative selection of the population and
using the data gathered as research information[ CITATION Tho12 \l 1033 ].
For this research non probability convenience sampling method was used.
Non-probability sampling is defined as a sampling technique in which the samples
are gathered in a process that does not give all individuals in equal chances of
being selected, in the population [ CITATION Tho12 \l 1033 ].
The researchers had distributed 250 questionnaires in restaurants of
Rawalpindi and Islamabad out of 250 researchers received back 246 filled
questionnaires. The questionnaires were filled by customers of all levels and, of
different age groups and gender.
3.5 Study Setting:
Non-contrived setting is actually the natural environment in which events
normally happen[ CITATION Kot04 \l 1033 ].The relationship of variables with
each other also makes it a non-contrived study. The variables were not tested with
an assumed sample data, to find out accurate results. To see desired results,
correct data has been collected through questionnaires to see desired results.
3.6 Unit of Analysis:
It is defined as entity that is being analyzed in a research study[ CITATION
Kot04 \l 1033 ]. The unit of analysis of this research is individual.
3.7 Time Horizon:
Cross-sectional study is also known as cross-sectional analysis. It is a type
of study that involves the analysis of gathered data from a population at one
specific point in time [ CITATION Kot04 \l 1033 ].
This is a cross-sectional study because data has been collected in one
single turn. The repeat visit to one restaurant is not a possibility for the researchers
and also for the respondents. It would also have proved costly, to collect data
again; this is another reason for using a single turn data collection method. Time
constraint is another important reason for using a single shot data collection
method.
27
3.8 Instrumentation:
Questionnaire is used as the instrument for data collection. Questionnaires
were developed to get as much data in the less possible time. A likert scale of five
steps is used in the questionnaire, in which 5; Strongly Agree, 4; Agree, 3;
Neutral, 2; Disagree and 1; Strongly Disagree. For finding out the data related to
research problem, a questionnaire was adapted. Questionnaire in this research
starts up with the demographics that include gender, age, qualification and work
experience. It comprises of 35 items divided into different parts as per variable.
These items were kept as simple and short so that they are easily understood.
3.8.1 Primary Data:
Primary data collection was done by spreading questionnaire by the
researchers in the restaurant industry of Pakistan. The information which was
collected is the result of the response made by restaurant customers through the
questionnaire.
3.8.2 Content Validity:
After adapting the instrument, content validity is done by four industry experts
and also having strong research background.
Changes Suggested Changes Made
Change item C5 Item changed
Change item E5 Item changed
Replace word “Friends” with “Social Word replaced
circle” in item G4
Change item G5 Item changed
28
3.9 Total Number of Variables: 07 Total items: 35

Type of
Sr.No Variable Items no Adapted from
variable
Competitor [ CITATION Lia13 \l
01 Independent 05
attraction 1033 ].
Variety seeking [ CITATION Bel10 \l 1033
02 Independent 05
behavior ]
[ CITATION Aag11 \l
03 Convenience Independent 05
1033 ]
[ CITATION Tan14 \l 1033
04 Service quality Independent 05
]
[ CITATION Ish12 \l
1033 ] [ CITATION
Customers’
05 Moderator 05 Yan04 \l 1033 ]
perceived value
[ CITATION Kum04 \l
1033 ].
Customer [ CITATION Koc12 \l 1033
06 Moderator 05
relationship ]
Customer
[ CITATION Mal13 \l
07 switching Dependent 05
1033 ]
behavior
3.10 Data Analysis Techniques:

In order to make sure that correct data entry and results appear an output,
SPSS 20 is statistical tool used in this research.
3.10.1 Regression:
Regression is used to identify that what or how much changes come in
dependent variable as well as variation in any independent variable, while others
stay same. It is also helpful that dependent variable belongs to which of
independent variables and type of relationship is identified among the variables
through this [ CITATION Kot04 \l 1033 ]. Mostly it is used when two or more
variables are considered to be systematically with each other. While four
independent, two moderators and one dependent variable makes possible in this
research that sufficient for researchers to use regression analysis and also form
relationship among the variables. The power of variable’s relationship with each
29
other is defined by regression analysis. While relationship is positive, negative or

moderate. Results also direct the researcher towards predication of research.
3.10.2 Correlation:
It is helpful to identify that how much the variables are associated with
each other. It also brings relationship power dependent and independent variables.
Correlation is also helpful that how much strongly paired are the variables with
each other [ CITATION Kot04 \l 1033 ]. Another Pearson is good and most familiar
used for correlation techniques, which is used in this research. It is also factor that
correlation is helpful only on quantifiable data. Conditions like gender, color etc
these are not only in which correlation works as well as on meaningful data.
3.10.3 Baron and Kenny 1986:
This method used to measure moderation between variables. There are
many schools of thoughts to measuring the moderator. Steps are followed to
measure this approach in this research and also analyzed later on.
3.11 Researcher’s Interference:
In this research results have been minimal. Researcher must make sure that
they should not make any changes while in collected data for getting desired
results. Overall collected data must remain same or unchanged in order to get fair
results.
3.12 Protection of Privacy:
Use of manual and online questionnaire is helpful for the respondents in sharing
their opinion about the questions. Data collected through this technique helping
towards recording the data. It is the responsibility of researcher that the collected
data has been used only for research project.
30
Chapter 4
4. Data analysis and Results
4.1 Demographical Statistics
Table 1
Demographic analysis
Frequency Percentage
Male 190 77.2
Gender
Female 56 22.8
Below 30 201 81.7
30-40 34 13.8
Age
41-50 10 4.1
Above 50 1 .4
Intermediate 14 5.7
Graduation 84 34.1
Education
Post Graduation 147 59.8
Professional 1 .4
Below 5 years 226 91.9
5-10 16 6.5
Experience
11-15 4 1.6
This table 1 shows the percentage and frequencies of respondents’

demographics in this study. Above table 1 shows that there are 77.2% male and
22.8% female respondents participated in this study, respondent have different
age, education and experience. Table 1 also shows that 81.7% respondents are
below 30 age, 13.8% are 30-40 age, 4.1% are 41-50 age and .4% are above 50
age. Table 1 further shows that 5.7% respondents are intermediate, 34.1% are
graduate, 59.8% are post-graduate and .4% are professional having different
experience.
31
4.2 Descriptive Analysis

Table 2
Descriptive statistics
Minimu Maximu Skewnes Kurtosi
Mean S.D.
m m s s
Customer
2.840
Switching 1.20 4.20 85713 -.374 -.957
7
Behavior
3.397
Competitor 2.00 4.60 .77859 -.305 -.952
6
Attraction
Variety 3.248
1.60 4.60 .84475 -.450 -.602
Seeking 0
Behavior
Convenienc 3.253
e 1.60 5.00 7 .91252 -.253 -.615
Service 3.320
Quality 1.60 4.60 3 .85227 -.493 -.401
Customer
3.235
Perceived 1.40 4.60 .85315 -.723 .145
8
Value
Customer 3.291
1.80 4.60 .90378 -.379 -1.090
Relationship 1
In table 2 of descriptive analysis, mean shows the average distribution.

Standard deviation shows the data spread from the mean. Skewness shows the
normality of data which ranges from (-1+1)[ CITATION Sau \l 1033 ]. Skewness
values in this table for all variables lies in between the range so data is normal for
these variables and correctly entered.
4.3 Reliability Analysis
32
4.3.1 Reliability Analysis of Pilot Study

Number of pilot study respondents (N=30)
Table 3
Reliability Analysis of Pilot Study
Variable Type Cronbach α value
Customer Switching
DV 0.755
Behavior
Competitor Attraction IV 0.791
Variety Seeking Behavior IV 0.798
Convenience IV 0.859
Service Quality IV 0.871
Customer Perceived Value MV 0.856
Customer Relationship MV 0.876
Total 0.937
In above mention table 3 of pilot study, the value of crookback α of each

variable is above 0.7 (Nunnaly, 1978) which means the data is reliable. The
acceptable result of reliability analysis allows researchers to continue research
study for further procedure.
4.3.2 Reliability Analysis of Final Study
Number of final study respondents (N=246)
Table 4
Reliability Analysis of Final Study
Variable Type Cronbach α value
Customer Switching
DV 0.760
Behavior
Competitor Attraction IV 0.783
Variety Seeking Behavior IV 0.777
Convenience IV 0.853
Service Quality IV 0.861
Customer Perceived Value MV 0.867
Customer Relationship MV 0.862
Total 0.940
This table 4 of reliability analysis shows the Cronbach α value of each

variable. The acceptable Cronbach α value is above 0.7. In this study Cronbach α
value of each variable is above 0.7 which means data is reliable as shown in table
4.
33
4.4 Correlation
Table 5
Correlation
Customer Competitor Variety Convenience Service Customer Customer
Switching Attraction Seeking Quality Perceived Relationship
Behavior Behavior Value
Customer Switching Behavior 1
Competitor Attraction .779** 1

Variety Seeking Behavior � .502** .493** 1
Convenience -.168** -.140* .518** 1
Service Quality -.249** -.494** -.666** -.470** 1
Customer Perceived Value -.417** -.583** -.762** .644** .568** 1
Customer Relationship -.284** -.329** -.464** .595** .234** .820** 1
** . Correlation is significant at the 0.01 level (2-tailed).
* . Correlation is significant at the 0.05 level (2-tailed).
This table 5 shows the level of correlation among variables, if value is

between 0 to 0.3 relationship is weak, 0.3 to 0.7 shows moderate relationship and
0.7 to 1 shows strong relationship. Negative and positive signs show the nature of
correlation between variables.
34
4.5 Regression
Table 6
Step 1: IV-DV
t-
IV DV R2 F Stat B Beta Sig:
value
Customer
Competitor 18.91 .
switching .707 145.572 .884 .803
attraction 6 000
behavior
Customer
Variety seeking .
switching .347 .342 6.621
behavior 000
behavior
Customer
-.06 .
Convenience switching -.069 -1.631
5 104
behavior
Customer
-.41 .
Service quality switching -.408 -8.182
0 000
behavior
The value of R square show that the variability in the dependent variable,
customer switching behavior is explained 70.7% by the variability in independent
variables.
The value of beta show the nature of relationship that either it is positive or
negative. Table 6 shows that the relationship of competitor attraction and variety
seeking behavior with customer switching behavior is positive while the
relationship of service quality and convenience is negative with customer
switching behavior.
t-value shows the strength of relationship. Table 6 shows that the
relationship of competitor attraction, variety seeking behavior and service quality
is strong with customer switching behavior while the relationship of convenience
is weak with customer switching behavior.
Actual significant value is .05 and this table 6 shows the model
significance value of .000 so according to its significance value is .000<.05 which
shows the model fitness. It means at one independent variable is affecting the
dependent variable. The significance value of convenience is >.05 which indicates
that effect of convenience on customer switching behavior is not significant.
Table 7
35
Step 2: IV-MV
IV DV R2 F Stat B Beta t-value Sig:
Customer
Competitor 125.40 -.63 .
perceived .339 -.583 -11.199
attraction 8 8 000
value
Customer
Variety seeking 338.69 -.77 .
perceived .581 -.762 -18.404
behavior 4 0 000
value
Customer
116.33 .
Service quality perceived .323 .569 .568 10.786
8 000
value
Customer
Competitor -.38 .
relationshi .108 29.634 -.329 -5.444
attraction 2 000
p
Customer
Variety seeking -.49 .
relationshi .215 66.816 -.464 -8.174
behavior 6 000
p
Customer
.
Service quality relationshi .055 14.098 .248 .234 10.909
000
p
The value of R square show the variability in the dependent variable,

customer perceived value is explained 33.9% by the variability in competitor
attraction, 58.1% by the variability in variety seeking behavior and 32.3% by the
variability in service quality, that the variability in the dependent variable,
customer relationship is explained 10.8% by the variability in competitor
attraction, 21.5% by the variability in variety seeking behavior and 5.5% by the
variability in service quality.
negative. Table 7 shows that the relationship of competitor attraction and variety
seeking behavior with customer relationship and customer perceived value is
negative. Table 7 further shows that the relationship of service quality with
customer perceived value and customer relationship is positive.
relationship of competitor attraction, variety seeking behavior and service quality
is strong with customer relationship and customer perceived value.
36
shows the model fitness. It means competitor attraction, variety seeking behavior
and service quality are affecting the customer relationship and customer perceived
value.
Table 8
Step 3: MV-DV
t-
value
Customer
Customer -.41 .
switching .174 51.383 -.417 -7.168
perceived value 9 000
behavior
Customer
Customer -.26 .
switching .080 21.328 -.284 -4.618
relationship 9 000
behavior
customer switching behavior is explained 17.4% by the variability in customer
perceived value and 8% by the variability in customer relationship and.
negative. Table 8 shows that the relationship of customer relationship and
customer perceived value with customer switching behavior is positive.
relationship of customer relationship and customer perceived value is strong with
customer switching behavior.
shows the model fitness. It means customer relationship and customer perceived
value are affecting the customer switching behavior.
37
Table 9
Step 4 IV*MV-DV
t-
value
Competitor
Customer
attraction * 13.59
switching .431 184.695 .126 .656 .000
Customer 0
behavior
perceived value
Variety seeking Customer

behavior * switching .198 60.347 .081 .445 7.768 .000
Customer behavior
perceived value
Customer
Service quality *
switching .091 25.345 -.060 -.301 -4.934 .000
Customer
behavior
perceived value
Customer Customer
11.84
attraction * switching .365 140.225 .117 .604 .000
2
Customer behavior
Relationship
Variety seeking Customer

6.93
behavior * switching .165 48.098 .076 .406 .000
5
Customer behavior
Relationship
Customer
Service quality *
switching .066 17.188 -.655 -.257 -4.146 .000
Customer
behavior
Relationship
customer switching behavior is explained 43.1% by the variability in competitor
attraction*customer perceived value, 19.8% by the variability in variety seeking
behavior*customer perceived value and .9.1% by the variability in service quality
38
*customer perceived value, 36.5% by the variability in customer attraction*

customer relationship, 16.5% by the variability in variety seeking behavior*
customer relationship and 6.6% by the variability in service quality*customer
relationship.
negative. Table shows that the relationship of all independent variables is positive
with dependent variable.
relationship of all independent variables is strong with customer switching
behavior.
shows the model fitness. It means independent variables are affecting the
dependent variable.
39
4.6 Discussions
Accepted/Rejecte
Hypotheses
d
H1: Competitive attraction has positive impact on the
Accepted
switching behavior of customer.
H2: Variety seeking behavior has positive impact on
Accepted
customer switching behavior.
H3: Convenience has negative impact on customer
Rejected
switching behavior.
H4: Service quality has negative impact on customer
Accepted
switching behavior.
H5: The effect of competitive attraction on customer
switching behavior is moderated by customer’s perceived Accepted
value.
H6: The effect of variety seeking behavior on customer
switching behavior is moderated by customer’s perceived Accepted
value.
H7: The effect of convenience on customer switching
Rejected
behavior is moderated by customer’s perceived value.
H8: The effect of service quality on customer switching
Accepted
behavior is moderated by customer’s perceived value.
H9: The effect of competitive attraction on customer
Accepted
switching behavior is moderated by customer relationship.
H10: The effect of variety seeking behavior on customer
Accepted
switching behavior is moderated by customer relationship.
H11: The effect of convenience on customer switching
Rejected
. H12: The effect of service quality on customer switching
Accepted
4.6.1 Research findings

H1 Competitor attraction has positive impact on customer switching
behavior with the significance of .000 and the coefficient (β) is .803. So according
40
to this study and competitor attraction affects positively on customer switching

behavior. It means our first hypothesis is accepted.
H2 Variety seeking behavior has positive impact on customer switching
behavior with the significance of .000 and the coefficient (β) is .342. So according
to this study variety seeking behavior affects positively on customer switching
behavior. Our second hypothesis is accepted.
H3 Convenience has negative impact on customer switching behavior with
the significance of .104 and the coefficient (β) is -.069. So according to this study
convenience is not affecting customer switching behavior. It means our fourth
hypothesis is rejected.
H4 Service quality has negative impact on customer switching behavior
with the significance of .000 and the coefficient (β) is -.408. So according to this
study and [ CITATION Kur10 \l 1033 ] service quality affects negatively on
customer switching behavior. It means our fourth hypothesis is accepted.
H5 The effect of competitive attraction on customer switching behavior is
moderated by customer’s perceived value with the significance of .000 and the
coefficient (β) is .656. So according to this study the effect of competitive
attraction on customer switching behavior is positively moderated by customer’s
perceived value. It means our fifth hypothesis is accepted.
H6 The effect of variety seeking behavior on customer switching behavior
is moderated by customer’s perceived value with the significance of .000 and the
coefficient (β) is .445. So according to this study the effect of variety seeking
behavior on customer switching behavior is positively moderated by customer’s
perceived value. It means our sixth hypothesis is accepted.
H7 This hypothesis is not tested because the effect of convenience on
customer switching behavior is insignificant.
H8 The effect of service quality on customer switching behavior is
moderated by customer’s perceived value with the significance of .000 and the
coefficient (β) is .301. So according to this study the effect of service quality on
customer switching behavior is positively moderated by customer’s perceived
value. It means our eighth hypothesis is accepted.
H9 The effect of competitor attraction on customer switching behavior is
moderated by customer relationship with the significance of .000 and the
coefficient (β) is .604. So according to this study the effect of competitor
41
attraction on customer switching behavior is positively moderated by customer

relationship it means our ninth hypothesis is accepted.
H10 The effect of variety seeking behavior on customer switching
behavior is moderated by customer relationship with the significance of .000 and
the coefficient (β) is .406. So according to this study the effect of variety seeking
behavior on customer switching behavior is positively moderated by customer
relationship it means our tenth hypothesis is accepted.
H11 This hypothesis is not tested because the effect of convenience on
customer switching behavior is insignificant.
H12 The effect of service quality on customer switching behavior is
moderated by customer relationship with the significance of .000 and the
coefficient (β) is .257. So according to this study the effect of service quality on
customer switching behavior is positively moderated by customer relationship It
means our hypothesis is accepted.
Conclusion
Results showed that competitor attraction [ CITATION Lia13 \l 1033 ] and
variety seeking behavior affects positively on customer switching behavior while
service quality affects negatively on customer switching behavior [ CITATION
Kur10 \l 1033 ]. Furthermore, the effect of convenience on customer switching
behavior is insignificant.
Research findings also indicates that customer perceived value and
customer relationship has the moderation effect on the relationship of competitor
attraction (IV), variety seeking behavior (IV), service quality (IV) and customer
switching behavior (DV).
The results will help managers of different service firms especially
restaurants in making different strategies related to customer switching behavior
which will reduce switching behavior of customers.
42
Managerial Implications
Findings of this study indentified that customer switching behavior in
restaurant industry of Pakistan is influenced by a number of significant factors
including competitor attraction, variety seeking behavior, service quality,
customers’ perceived value and customer relationship. This study presents a
useful framework that shows how these factors affect the switching behavior of
customers which is useful for the decision makers of restaurant industry of
Pakistan.
Academic Implications
This study also contributes to the literature and provides a valuable
framework for the researchers to study the customer switching behavior in
restaurant industry.
References
43
Ahlgren, Gustafsson, & Hall. (2006). Buyers’ demands for ready meals –
influenced by gender and who will eat them. Journal of Foodservice , 17,
205-211.
Akinboade, O. A., Kinfack, E. C., & Mokwena, M. P. (2012). An Analysis of

Citizen Satisfaction with Public Service Delivery in the Sedibeng District
Municipality of South Africa. International Journal of Social Economics ,
39 (3), 182-199.
Akkaba, A. (2006). Measuring Service Quality In The Hotel Industry: A Study In

A Business Hotel In Turkey. International Journal of Hospitality
Managment , 25 (2), 170-192.
Akwensivie, D. D. (2014). Switching Behavior & Customer Relationship

Management- The Iceland Experience. British Journal of Marketing
Studies , 2 (1), 89-100.
Al-kwifi, S. O., & McNaughton, R. B. (2013). The Influence of Product Feautures

on brand Switching: The Case of Magnetic Resonance Imaging
Equipment. Journal of Business and Industrial Marketing , 25 (5), 421-31.
Al-Kwifi, S., Ahmad, Z. U., & Yammout, D. (2014). Brand Switching of High
Technology Capital Products: How Products Features Dictate The
Switching Decision. Journal of Product and Brand Management , 322-332.
Allred., & Addams. (2000). Service quality at banks and credit unions: What do
their customers say. Manage. Serv. Quality , 10 (1), 52-60.
Andaleeb, S. S., & Conway, C. (2006). Customer Satisfaction in Restaurant

Industry. Journal of Service Marketing , 20 (1), 3-11.
Andrews, R., & T.C, S. (2011). Studying Consideration Effects in Empirical

Choice Models Using Scanner Panel Data. Journal of Marketing Research
, 41, 32-40.
Anselmsson, J. (2007). Sources of Customer Satisfaction with Shopping Malls: A

Comparative Study of Different Customer Segments. The International
Review of Retail, Distribution and Consumer Research , 16 (1), 115-138.
44
Anthanassopoulos,, Gounaris, & Sathakopoulo. (2001). Behavioral responses to

customer satisfaction: an empirical study. European. J. Mark. , 687-707.
Arrawatia, R., Misra, A., & Dawar, V. (2015). Bank competition and efficiency:
empirical evidence from Indian market. International Journal of Law and
Management , 57 (3).
Aurier, J. P., & Zaichkowsky, J. (2000). . Consideration set size and familiarity
with usage contex. Advances in Consumer Research , 27, 307-313.
Awwad, M. S., & Neimat, B. A. (2010). Factors Affecting Switching Behavior of

Mobile Service Users: The Case of Jordan. Journal of Economic and
Administrative Sciences , 26 (1), 27-51.
Azim, A., Shah, N. A., Mehmood, Z., Mehmood, S., & Bagram, M. M. (2014).
Factors Affecting the Customers Selection of Restaurants in Pakistan.
International Review of Management and Business Research , 3 (2), 1003-
1005.
Baksia, A. K., & Paridab, B. B. (2011). Service Quality & Switching Behavior of
Customers. Management Science Letters , 405-414.
Bansal, H. S., Taylor, S. F., & Jame, Y. S. unifying framework of consumers’

switching behaviors“Migrating to new service providers: toward a. journal
of academy of marketing science , 3 (1), 96-115.
Barnes, J. G. (2003). Establishing Meaning Customer Relationships: Why Some

Companies & Brands Mean More To Their Customers. Managing Service
Quality , 13 (3), 178-186.
Beldona, S. (2010). The role of involvement and variety-seeking in eating out

behaviors. International Journal of Contemporary Hospitality Management
, 22 (3), pp. 433-444.
Beldona, S., P. Moreo, A., & Mundhra, G. D. (2010). The Role of Involvement
And Variety-Seeking In Eating Out Behaviors. International Journal of
Contemporary Hospitality Mnagement , 22 (3), 433-444.
45
Berne, C., Mugica, J. M., & Yague, M. J. (2001). The effectof variety seeking on
customer retention in services. journal of retailing and consumer services ,
8 (6), 335-45.
Berry, Seiders, & Grewal. (2002). Understanding service convenience. Journal of

Maketing , 66, 1-17.
Berry., Seiders, & Grewal. (2002). Understanding service convenience. Journal of

Marketing , 1-17.
Bigne, J. E., nchez, I. S., & Andreu, L. (2008). The role of variety seeking in short
and long run revisit intentions in holiday destinations. International Journal
of Culture, Tourism and Hospitality Research , 3 (2), 103 - 115.
Bitner, M. J., & Hubbert, A. R. (1994). Encounter satisfaction versus overall

satisfaction versus service quality. Service quality: new directions in
theory and practice , 72-94.
Bowen, & Chen. (2001). The Relationship between Customer Loyalty and
Customer Satisfaction. International Journal of Contemporary Hospitality
Management , 213-217.
Buckley, M., Cowan, C., McCarthy, M., & Sullivan, C. (2005). The Convenience
Consumer. Journal of Food Products Marketin , 11 (3 ).
Bujisic, M., & Hutchinson, J. (2014). The effects of restaurant quality attributes
on customer behavioral intentions. International Journal of Contemporary
Hospitality Management , 26 (8), 1270-1291.
Candel. (2001). Consumers’ convenience orientation towards meal preparation

conceptualization and measurement. Appetite , 36, 15-28.
Carrigan, Szmigin, & Leek. (2006). Managing routine food choices in UK

families:the role of convenience consumption. Appetite , 47, 372-383.
Casu, B., & Girardone, C. (2009). Competition issues in European banking.

Journal of Financial Regulation and Compliance , 17 (2), 119-133.
46
Cengiz, E., Ayyildiz, H., & Er, B. (2007). “Effects of image and adverting
efficiency on customerloyalty and antecedents of loyalty. bank and bank
system , 2 (1), 56-80.
Chailan, C., & Ille, F. (2001). Branding from emerging countries: how to compete
internationally? critical perspectives on international business , 11 (1), 54-
71.
Chang, C., & Dibb, S. (2012). Reviewing and Conceptualising Customer-

Perceived Value. The Open University’s repository of research
publications , 12 (3), 253–274.
Cheng, Q., Du, R., & Ma, Y. (2014). Factors Influencing Theme Park Visitors
Brand Switching Behavior As Based On Visitor Perception. Current Issues
in Tourism .
Chiang, C.-C., Shiu, C., & Lee, L. Y. (2013). An examantion of percieved value
dimensions of Hotel Visitors: Using Exploratory and confirmatory factor
analyses. The Journal of International Management Studies , 8 (1), 167-
174.
Chih, W.-H., Wang, K.-Y., Hsu, L.-C., & Cheng, I.-S. (2012). From
Disconfirmation to Switching: an Empirical Investigation of Switching
Intentions after Service Failure and Recovery. The Service Industries
Journal , 32 (8), 1305-1321.
Choi, Y. J., & Kim, Y. K. (2004). A Study on the Relationship Marketing of

Family Restaurant Toward Customers' Satisfaction, Switching Behavior
and Store Loyalty. Journal of the Korean Society of Food Culture , 19 (5).
Clemes, M. D., Gan, C., & Zhang, D. (2010). Customer Switching Behaviour in
the Chinese Retail Banking Industry. International Journal of Bank , 28
(7), 519-546.
Colgate, & Lang. (2001). Switching barriers in consumer markets: an

investigation tion of the financial services industry. Journal of Consumer
Marketing , 18 (4), 332-347.
47
Danes, J. E., & Mullikin, J. L. (2012). Expected Product Price as a Function of

Factors of Price Sensitivity. Journal of Product & Brand Management , 21 (4),
293-300.
De Vaus, D. A. (2001). Research Design in Social Research. London: SAGE

Publications.
Deng, J., & Pierskalla, C. (2011). Impact of past experience on perceived value,
overall satisfaction, and destination loyalty: a comparison between visitor
and resident attendees of a festival. Event Management , 15, 163-177.
Diamantopoulos, A., Schlegelmilch, B., & Palihawadana, D. (2011). The

Relationship Between Country-of-Origin Image and Brand Image as
Drivers of Purchase Intentions: A Test of Alternative Perspectives.
International Marketing Review , 28 (5), 508-524.
Feinberg, F., Krishna, A., & Zhang., Z. (2002). Do wecare what others get? A
behaviorist approach to targeted promotions. journal of marketing research
, 39 (3), 277-91.
Fergusan, J. L., & Ellen, P. c. (2013). Transparency in Pricing And Its Effect on
Percieved Price Fairness. Journal of Product & Brand Management , 22
(5/6), 404-412.
Fernández, R. S., & Bonillo, M. Á. (2007). The concept of perceived value: a

systematic review of the research. Marketing Theory , 427-451.
Garbarino, E., & Maxwell, S. (2010). Consumer Response to Norm-Breaking

Pricing Events in E-commerce. Journal of Business Research , 63 (9/10),
1066-1072.
Garland, R. (2002). Estimating Customer Defection in Personal Retail Banking.

The International Journal of Bank Marketing, , 20 (7), 317-325.
Gerrard, P., & Cunningham, J. B. (2004). Customer Switching Behavior in Asian

Banking Market. Journal of Service Marketing , 18 (3), 215-223.
48
Gordon, C. (2011). Competing in global niche markets: the case of Macquarie

Bank. International Journal of Bank Marketing , 29 (4), 293-307.
Gronau, R. (2008). The DemandforVariety:AHousehold Produc Production.

Review of Economics and , 72, 90:562.
Gronroos, C. (1982). An Applied Service Marketing Theory. European Journal of

Marketing , 16 (7), 30-41.
Han, H., Kim, W., & Hyun, S. S. (2011). Switching intention model development:
Role of service performances, customer satisfaction, and switching barriers
in the hotel industry. International Journal of Hospitality Management , 30,
619-629.
Heijes, C. (2008). Culture, convenience or efficiency: Customer behaviour in

choosing local or foreign banks in China. Chinese Management Studies ,
183 - 202.
Heinonen, K. (2014). Multiple Perspectives of Customer Relationships.

International Journal of Bank Marketing , 32 (6), 450-456.
Hennessy, H., & Tol, R. S. (2011). The Impact of Tax Reform on New Car
Purchase in Ireland. Energy Policy , 37 (12), 5184-91.
Hsih, Y., & Yuan, S. (2010). Modelling Service Experience Design Processes
With Customer Expectation Management. Journal of Service Marketing ,
39 (7), 1128-1144.
Hsu, C. H., & Erel, P. L. (2009). Divergence in Variety Seeking: An Exploratory

Study Among International Travelers in Asia. Journal of Global Marketing
, 25 (4), 213–225.
Huang, & Lin. (2005). Customer-oriented financial service personalization.

Industrial Management & Data systems , 105 (1), 26-44.
Huang, Y.-A., Phau, L., & Lin, C. (2010). Consumer Animosity, Economic
Hardship, and Normative Influence: How do they Affect Consumers
Purchase Intention. European Journal of Marketing , 44 (7/8), 909-937.
49
Jagadish, S. N. (2002). The Future of Relationship Marketing. Journal of Services

Marketing , 16 (7), 590-592.
Jarvenpaa, & Lang. (2005). Managing the paradoxes of mobile technology.

Information Systems Management , 22 (4), 7-23.
Jennifer, R. (2005). The four Cs of customer loyalty. Marketing Intelligence &

Planning , 23 (6), 574-81.
Jin, D., Liu, J., Liu, L., & Yin, D. (2014). Competition and profit hiding: evidence
from banks in China. Managerial Finance , 40 (10), 1040-1051.
Johnson, M. D., & Gustafssm, A. (2000). Improving customer satisfaction,

loyalty, and profit.
Jones, A., & Jones, P. (2011). “Making an impact”: a profile of a business

planning competition in a university. Education + Training , 53 (8/9), 704-
721.
Jones, M. A., Mothersbaugh, D. L., & Beatty, S. E. (2003). The effects of

locational convenience on customer repurchase intentions across service
types. journal o fservice marketing , 17 (7), 701-12.
Jones, Reynolds, & Mothersgbaugh. (2007). The positive and negative effects of
switching costs on relational outcomes. Journal of Service Research , 9 (4),
335–355.
Joon, D., & Kwun, W. (2013). Eating-Out Motivations and Variety-Seeking

Behavior: An Exploratory Approach on Loyalty Behavior. Journal of
Hospitality Marketing & Management, , 22 (3), 289–312.
Kamakura, W. A., Wedel, M., Rosa, F. d., & Mazzon, J. A. (2003). “Cross-selling
through databasemarketing: a mixed data factor analyzed for data
augmentation and prediction. international journal marketing in research ,
20, 45-65.
Keaveney, S. M. (1995). Customer Switching Behavior in Service Industries.

Journal of Marketing , 59, 71-82.
50
Kim, S., Kim, N., Pae, J. H., & Yip, L. (2013). Cooperate “and” compete:
coopetition strategy in retailer-supplier relationships. Journal of Business
& Industrial Marketing, , 28 (4), 263 - 275.
Kim, W., & Canter. (2010). Contingency variables for customer share of visits to
full-service restaurant. International Journal of Hospitality management ,
29, 136–147.
Kim, W., & Han, H. (2008). Determinants of Restaurant Customers’ Loyalty

Intentions: A Mediating Effect of Relationship Quality. Journal of Quality
Assurance Hospitality & Tourism , 9 (3).
Kornberger, M., & Carter, C. (2010). Manufacturing competition: how accounting

practices shape strategy making in cities. Accounting, Auditing &
Accountability Journal , 23 (3), 325-349.
Kothari, C. R. (2004). Research Methodology . Delhi: New Age International

Publishers.
Kumaraswamy, & Jayaprasad. (2014). Customer Relationship Management in

Kaveri Grameena Bank. GJRA Global Journal for Research Analysis , 3
(2), 29-34.
Kuruuzum, A., & Koksal, C. D. (2010). The Impact Of Service Quality On

Behavorial Intention In Hospitality Industry. International Journal of
Business and Management Studies , 2 (1).
Kwifi, O. (2013). The Influence of Product Features on Brand switching: The

Case of Magnetic Sesonance Imaging Equipment. Journal of Business &
Industrial Marketing , 28 (5), 421-431.
Lee. (2013). Innovation and Imitation Effects Dynamics in Technology

Adoptation. Industrial Management and Data Systems , 113 (6), 772-799.
Lee, J. Y., & Lin, B. H. (2013). A Study of the Demand for Convenience Food.
Journal of Food Products Marketing .
51
Lee, J.-W., & Tai, S. W. (2009). Determinants of Product Quality Perceptions and
Their Application to Marketing Standardization. International Journal of
Emerging markets , 4 (2), 119-136.
Lehmann, E. L., & Romano, J. P. (2008). Testing Statistical Hypothesis.

Berkeley,Stanford: Springer.
Liang, D., Ma, Z., & Qi, L. (2013). Service Quality and Customer Switching
Behavior In China's Mobile Phone Service Sector. Journal of Business
Research , 66 (8), 1161-1167.
Liljander, V., & Roos, I. (2002). Customer-Relationship Levels- From Spurious to

True Relationships. Journal of Services Marketing , 16 (7), 593-614.
Lin, I. Y.-H., & Mattila, A. S. (2006). Understanding Restaurant Switching

Behavior from a Cultural Perspective. Journal of Hospitality & Tourism
Research , 30 (1), 3-15.
Lin, W.-B. (2010). Service Failure and Consumer Switching Behaviors: Evidence
from the Insurance. Expert Systems with Applications , 37 (4), 3209-3218.
Liu, F., & Murphy, J. (2007). The Role of Consumer Ethnocentrism and Country
of Origin in Chinese Attitudes Towards Store Signs. Australian Marketing
Journal , 14, 5–16.
Lopez, J. P., Redondo, Y. P., & Olivan, F. J. (2006). The Impact of Customer
Relationship Characteristics on Customer Switching Behavior. Managing
Service Quality , 16 (6), 556-574.
Lopez, J. P., Redondo, Y. P., & Olivan, F. J. (2006). The Impact of Customer
Relationship Characteristics On Customer Switching Behavior. Managing
Service Quality , 16 (6), 556-574.
Lymperopoulus, c., chaniotakis, I. E., & Soureli, M. (2013). The Role of Price
Satisfaction in Managing Customer Relationships:the Case of Financial
Services. Marketing Intelligence & Planning , 31 (3), 216-228.
52
Majumdar, S. K. (2010). Does competition enhance performance? Entry policy

and efficiency patterns in telecommunications markets. Info , 12 (4), 25-
38.
Malhotra, A., & Malhotra, C. K. (2013). Exploring Switching Behavior of US

Mobile Service Customers. Journal of Services Marketing , 27 (1), 13-24.
Meixne, O., & Knoll, V. (2013). Integrating price promotions into the switch of
brands model for approximating variety-seeking behavior. British Food
Journal , 117 (2), . 588-603.
Meixner, O., & Knoll, V. (2012). Variety-Seeking Behaviour In Food Product

Choices. British Food Journal , 114 (11), 1571-1586.
Michael, J., & Kristy, R. (2003). The product specific nature of impulse buying
tendency. 11, 56-505.
Milfener, B., Snoj, B., & Korda, A. P. (2011). Measurement of perceived quality
perceived value, image, and satisfaction interrelations of hotel services:
comparison of tourists from slovenia and italy. University of Maribor,
Faculty of Economics and Business, Razlagova 14, 2000 Maribor,
Slovenia. , 605-624.
Moeller, S., Fassnacht, M., & Ettinger, A. (2009). Retaining Customers With
Shopping conveniece. Journal of Relationship Marketing , 8 (4), 313-329.
Mokhtar, H. S., Abdullah, N., & Alhabshi, S. M. (2008). Efficiency and

competition of Islamic banking in Malaysia. Humanomics , 24 (1), 28-48.
Murthy, K. V., & Deb, A. T. (2009). Competition in Deregulated Markets.

Economic and Political Weekly , 44 (2), 60-61.
Nara, E. O., Kipper, L. M., Benitez, L. B., Forgiarini, G., & Mazzini, E. (2013).
Strategies used by a meatpacking company for market competition.
Business Strategy Series , 14 (2/3), 72-79.
Narteh. (2013). Key Determinant Factors for Retail Bank Switching in Ghana.
International Journal of Emerging Markets , 8 (4), 409-427.
53
Narteh, B., Odoom, R., Braimah, M., & Buame, S. (2012). Key Drivers of
Automobile Brand Choice in Sub-Saharan Africa. Journal of Product &
Brand Management , 21 (7), 516-528.
Nawaz, M. M., Khan, M. S., Shaukat, Z., & Aslam, N. (2011). Impact of
Customer Satisfaction on Customer Loyalty and Intentions to Switch:
Evidence from Banking Sector of Pakistan. International Journal of
Business and Social Science , 2 (16), 263-270.
Nayeem, T., & Casidy, R. (2013). The Role of External Influences in High
Involvement Purchase Behavior. Marketing Intelligence & Planning , 31
(7), 732-745.
Nimako, S. G. (2012). Customer Switching Behavior: A theoratical Review and

Research. Research Journal of Social Science and Management , 2 (3), 74-
82.
Nunnally. (1978). Psychometric Theory (2nd ed.). New York: McGraw-Hill.
Olsen, N. V. (2012). The convenience consumer's dilemma. British Food Journal ,

114 (11), 1613 - 1625.
Palazón, M., & Delgado, E. (2009). The moderating role of price consciousness
on theeffectiveness of price discounts and premium promotions. journal of
product and brand management , 18 (4), 306-312.
Pan, Y., & Zinkhan, G. M. (2006). Determinants of retail patronage: A meta-

analytical perspective. Journal of the Academy of Marketing Science , 82
(3), 229–243.
Pehrsson, A. (2011). Product/customer scope: Competition antecedents,

performance effects and market context moderations. European Business
Review , 23 (5), 418-433.
Prybutok, V. R., & Qin, H. (2009). Service Quality, Customer Satisfaction, and
Behavioral Intentions in Fast‐Food Restaurants. International Journal of
Quality and Service Sciences , 1 (1), 78-95.
54
Ramani, & Kumar. (2008). Interaction orientation and firm performance. Journal
of Marketing , 72 (1), 27-45.
Ranganathan, D. S., & Babad, Y. (2006). Switching behavior of mobile users: do

users’ relational investments and demographics matter? European Journal
of Information Systems , 15, 269-276.
Reimers, V., & Chao, F. (2014). The role of convenience in a recreational

shopping trip. European Journal of Marketing , 48 (11/12), 2213 - 2236.
Roehm, A. (2004). Variety-seeking and time of day: why leader brands hope
young adults shop in the afternoon, but follower brands hope for
morning”,. Marketing Letters , 15 (4), 213-21.
Sabir, R. I., Ghafoor, U., Hafeez, I., Akhtar, N., & Rehman, A. U. (2014). Factors
Affecting Customer Satisfaction in Restaurants Industry in Pakistan.
International Review of Management and Business Research , 3 (2), 869-
1011.
Sambandan, R., & Lord, K. R. (1995). Switching Behavior in Automobile

Markets: A Consideration-Sets Model. Journal of the Academy of
Marketing Science , 23 (1), 57-65.
Santos, C. P., & Basso, K. (2012). Price Unfairness: The Indirect Effect on
Switching and Negative Word-of-mouth. Journal of Product & Brand
Management , 21 (7), 547-557.
Saunders, M., Lewis, P., & Thomhill, A. (2011). Advance Research Methods for
Business Students. (Vth, Ed.)
Scholdere, & Grunert. (2005). Consumers, food and convenience: the long way
from resource constraints to actual consumption patterns. Journal of
Economic Psychology , 26 (1), 105-128.
Seiders, Berry, & Gresham. (2000). Attention retailers: How convenient is your
convenience strategy?. Sloan Management Review , 49 (3), 79-90.
55
Seiders, K., voss, G. .., & Godfrey, a. L. (2007). Development and validation of a
multidimensional service convenience scale. Journal of the , 35 (1), 144–
156.
Severin, Louviere, & Finn. (2001). The stability of retail shopping choices over
time and across countries. Journal of Retailing , 77 (2), 185-202.
Shah, A., & Schaefer, A. D. (2006). Switching Service Providers. Services

Marketing Quarterly , 27 (1), 73-91.
Sharma, P., & Bharadhwaj, S. (2010). Impulse buying and variety seeking: A
trait-correlates perspective. Journal of Business Research , 63 (3), 276–83.
Siguaw, J. A., & Enz, C. A. (1999). Best practices in marketing. Cornell Hotel &
Restaurant Administration Quarterly (Vol. 40).
Sivakumaran, S. P., & R., B. M. (2010). Exploring impulse buying and variety
seeking by retai lshoppers:towards a commoncon ceptual framework.
Journal of Marketing Management , 5 (6), 473–494.
Srivastava, K., & Sharma, N. K. (2013). Service Quality, Corporate Brand Image,
& Switching Behavior: The Mediating Role of Customer Satisfaction &
Repurchase Intention. Service Marketing Quarterly , 274-294.
Tammela, I., Canen, A. G., & Helo, P. (2013). Time-based competition: Relation
to multiculturalism and logistics in international furniture companies.
Benchmarking: An International Journal , 20 (5), 588-606.
Tarus, D. K., & Rabach, N. (2013). Determinants of Customer Loyalty in Kenya:

Does Corporate Image Play a Moderating Role? The TQM Journal , 25
(5), 473-491.
Thapa, A. (2012). Consumer Switching Behavior: A Study of Shampoo Brands.

Journal of Research in Commerce & Management , 1 (9), 98-106.
Thompson, S. K. (2012). Sampling. New Jersey: A John Wiley & Sons.Inc

Publication.
56
Verplanken, B. (2005). The Measurement of Habit. In T. Betsch and S.

Haberstroh, eds. The Routines of Decision Making. Mahwah, NJ:
Lawrence Erlbaum Associates , 47-231.
Vyas, V., & Raitani, S. (2014). Drivers of Customers' Switching Behavior in

Indian Banking Industry. International Journal of Bank Marketing , 32 (4),
321-342.
Yague, M. J., & Mugica, J. (2001). The effect of variety-seeking on customer

retention in services. Journal of Retailing and consumer services , 8 (6),
335-345.
57

Factors Affecting Customer Switching Behavior in Resturant Industry in Pakistan

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Factors Affecting Customer Switching Behavior in Resturant Industry in Pakistan

Uploaded by

Copyright:

Available Formats

Factors Affecting Customer Switching Behavior in Restaurant Industry

Factors affecting Customer Switching Behavior in

A thesis Submitted in a partial fulfillment Of the Requirements for the Degree

Bachelor of Business Administration (Hons)

Dadabhoy Institute of Higher Education DIHE

Qurban Ali Odhano

Honorable Assistant Professor Ms Anum Shaikh

relationship in the relationships of customer switching behavior and its factors.

1.5 Research Questions

1.9 Delimitations of Study

1. The study only covers the geographical boundaries of Islamabad and

1.10 Operational Definitions

Competitor attraction is a strategy to

2.1.2 Competitor Attraction

involvement purchase. Product variety has influence on variety seeking. Effect of

firms to frame and completely understand the perception of service quality

relationships consist of a number of customer’s perceptions about the company.

Customer relationship is a competitive tool therefore researchers are

2.2 Theoretical Framework:

2.3 Description of Variables

2.4 Formulation of Hypotheses:

H10: The effect of variety seeking behavior on customer switching

3.9 Total Number of Variables: 07 Total items: 35

3.10 Data Analysis Techniques:

other is defined by regression analysis. While relationship is positive, negative or

This table 1 shows the percentage and frequencies of respondents’

4.2 Descriptive Analysis

In table 2 of descriptive analysis, mean shows the average distribution.

4.3.1 Reliability Analysis of Pilot Study

In above mention table 3 of pilot study, the value of crookback α of each

This table 4 of reliability analysis shows the Cronbach α value of each

Customer Switching Behavior 1

Competitor Attraction .779** 1

This table 5 shows the level of correlation among variables, if value is

The value of R square show the variability in the dependent variable,

Variety seeking Customer

Variety seeking Customer

*customer perceived value, 36.5% by the variability in customer attraction*

4.6.1 Research findings

to this study and competitor attraction affects positively on customer switching

attraction on customer switching behavior is positively moderated by customer

Akinboade, O. A., Kinfack, E. C., & Mokwena, M. P. (2012). An Analysis of

Akkaba, A. (2006). Measuring Service Quality In The Hotel Industry: A Study In

Akwensivie, D. D. (2014). Switching Behavior & Customer Relationship

Al-kwifi, S. O., & McNaughton, R. B. (2013). The Influence of Product Feautures

Andaleeb, S. S., & Conway, C. (2006). Customer Satisfaction in Restaurant

Andrews, R., & T.C, S. (2011). Studying Consideration Effects in Empirical

Anselmsson, J. (2007). Sources of Customer Satisfaction with Shopping Malls: A

Anthanassopoulos,, Gounaris, & Sathakopoulo. (2001). Behavioral responses to

Awwad, M. S., & Neimat, B. A. (2010). Factors Affecting Switching Behavior of

Bansal, H. S., Taylor, S. F., & Jame, Y. S. unifying framework of consumers’

Barnes, J. G. (2003). Establishing Meaning Customer Relationships: Why Some

Beldona, S. (2010). The role of involvement and variety-seeking in eating out

Berry, Seiders, & Grewal. (2002). Understanding service convenience. Journal of

Berry., Seiders, & Grewal. (2002). Understanding service convenience. Journal of

Bitner, M. J., & Hubbert, A. R. (1994). Encounter satisfaction versus overall

Candel. (2001). Consumers’ convenience orientation towards meal preparation

Carrigan, Szmigin, & Leek. (2006). Managing routine food choices in UK

Casu, B., & Girardone, C. (2009). Competition issues in European banking.

Chang, C., & Dibb, S. (2012). Reviewing and Conceptualising Customer-

Choi, Y. J., & Kim, Y. K. (2004). A Study on the Relationship Marketing of

Colgate, & Lang. (2001). Switching barriers in consumer markets: an

Danes, J. E., & Mullikin, J. L. (2012). Expected Product Price as a Function of

De Vaus, D. A. (2001). Research Design in Social Research. London: SAGE

customer perceived value, 36.5% by the variability in customer attraction