FACTORS INFLUENCING CUSTOMER REVISIT INTENTION IN

NEPALESE RESTAURANT AROUND JHAMSIKHEL AREA.

A Graduate Research Project

Submitted To:

SAIM College

Pokhara University

Submitted By:

Bilop Dev Karki

Exam Roll No: 18620010

P.U. Registration No: 2018-2-62-0010

In the Partial Fulfilment of the Requirement for the Degree of

Master’s in Business Administration (MBA)

Kathmandu, Nepal

March, 2021
APPROVAL LETTER

i
 CERTIFICATE OF AUTHORSHIP

I hereby declare that this submission is my own work and that, to the best of my
knowledge and belief, it contains no material previously published or written by another
person nor material which to a substantial extent has been accepted for the award of any
other degree of a university or other institution of higher learning, expect where due
acknowledgements.

I also declare that the thesis has been written by me. Any help that I have received in my
research work and the preparation of the thesis itself has been acknowledged. In addition,
I certify that all information sources and literature used are indicated in the thesis.

Bilop Dev Karki

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 ACKNOWLEDGEMENT

This research is done with the view to accomplish the criteria of the course curriculum, as
a part of the Master of Business Administration under Pokhara University. This research
has helped me to gain practical knowledge of research theory and an opportunity to
understand and gain proficiency in Revisit intention and factor influencing the customer
revisit intention.

I extend my sincere appreciation to Mr. Bishnu Dev Panta who supervised this work and
guided me through every single step of this paper. He provided timely feedback, read it
with care, and discussed it thoroughly to encourage deeper thoughts and analysis. I would
like to express my gratitude towards him for the useful comments, remarks and
engagement through the learning process of this master thesis.

I express my genuine gratitude to my highly respected and esteemed faculty of SAIM

College for their invaluable support. They have been instrumental in helping me to stay
focused and determined towards my project. Also, I like to thank the participants in my
survey, who have willingly shared their precious time to respond to my research
questionnaire.

Nevertheless, I am thankful to my parents who have always been supportive. Lastly, my

appreciation to my friends especially Ms. Puja Subedi for her constant help and
suggestion that help me complete this thesis, and all other those who have assisted me
directly or indirectly for their wholehearted support, guidance, comments, inspiration and
their valuable suggestions. I am also highly obliged to many other people whose names
are not mentioned in this page, but their constant support and references have made it
possible to complete this study.

With Regards,

Bilop Dev Karki

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TABLE OF CONTENTS
APPROVAL LETTER .................................................................................................... i
CERTIFICATE OF AUTHORSHIP ............................................................................... ii
ACKNOWLEDGEMENT ............................................................................................. iii
TABLE OF CONTENTS............................................................................................... iv
LIST OF TABLES ........................................................................................................ vi
LIST OF FIGURES ...................................................................................................... vii
LIST OF ABBREVIATION ........................................................................................ viii
EXECUTIVE SUMMARY............................................................................................ ix
CHAPTER I ....................................................................................................................1
INTRODUCTION ...........................................................................................................1
1.1. Background of the Study ...................................................................................1
1.1.1 Brief history of restaurants .........................................................................2
1.2. Statement of Problem ........................................................................................5
1.3. Objectives of the Study......................................................................................6
1.4. Research Questions ...........................................................................................6
1.5. Significance of the Study ...................................................................................6
1.6. Limitation of the study ......................................................................................8
1.7. Organization of the study...................................................................................8
CHAPTER II ................................................................................................................. 10
LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK ................................. 10
1.1. Literature Review ............................................................................................ 10
1.2. Research Gap .................................................................................................. 16
1.3. Conceptual Framework .................................................................................... 16
1.4. Specification of Variables ................................................................................ 17
1.4.1. Dependent Variables ....................................................................................... 17
1.4.2. Independent Variables ..................................................................................... 17
1.4.3. Moderating Variable ........................................................................................ 19
CHAPTER III................................................................................................................ 21
RESEARCH METHODOLOGY ................................................................................... 21
3.1. Research Design and Plan ................................................................................ 21
3.2. Population and Sample Size ............................................................................. 21
3.3. Source of Data ................................................................................................. 22

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 3.4. Data Collection................................................................................................ 23
3.5. Instrument of data............................................................................................ 23
3.6. Data Analysis .................................................................................................. 24
3.7. Reliability Tests............................................................................................... 24
CHAPTER IV ............................................................................................................... 26
RESULT AND DISCUSSION ...................................................................................... 26
4.1. Analysis of data................................................................................................... 26
4.1.1. Respondent Profile ........................................................................................ 26
4.1.2. Analysis of Visiting Frequency ..................................................................... 32
4.1.3. Analysis of Restaurant visited ....................................................................... 33
4.1.4. Analysis of Revisiting Pattern ....................................................................... 35
4.1.5 Analysis of purpose of visit ............................................................................ 36
4.1.6. Analysis of Factors considered most while revisiting .................................... 38
4.1.6. Analysis of Dependent and Independent Variable. ........................................ 40
4.1.6.1. Analysis of Customer Revisit intention ...................................................... 40
4.2 Descriptive Analysis ............................................................................................ 51
4.3 Statistical Test (s) Performed ................................................................................ 52
4.3.1 Pearson’s Correlation ..................................................................................... 52
CHAPTER V................................................................................................................. 55
SUMMARY AND CONCLUSION ............................................................................... 55
5.1 Summary of Findings ...................................................................................... 55
5.2 Conclusions ..................................................................................................... 58
5.3 Recommendations ........................................................................................... 59
REFERENCES .............................................................................................................. 61
APPENDIX A ............................................................................................................... 64

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 LIST OF TABLES

Table 3-1: Reliability Test Finding ................................................................................ 25

Table 4-1: Profile of respondents ................................................................................... 26
Table 4-2: Frequency of visit to restaurants ................................................................... 32
Table 4-3: Restaurants visited by customers................................................................... 34
Table 4-4: Number of customer who have visited the restaurant before. ........................ 35
Table 4-5: Purpose of visiting restaurants ...................................................................... 36
Table 4-6: Factors considered before revisiting .............................................................. 38
Table 4-7: Analysis Revisit intention in Nepalese Restaurants. ...................................... 40
Table 4-8: Analysis of Menu ......................................................................................... 41
Table 4-9: Analysis of Price........................................................................................... 43
Table 4-10: Analysis of Food Taste ............................................................................... 44
Table 4-11: Analysis of Online Food Ordering System .................................................. 46
Table 4-12: Analysis of Ambience ................................................................................. 48
Table 4-13: Analysis of Location ................................................................................... 49
Table 4-14: Descriptive Statistics................................................................................... 51
Table 4-15: Correlation coefficient of customer revisit intention in restarant. ................. 53

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 LIST OF FIGURES

Figure 2-1: Conceptual Framework................................................................................ 17

Figure 4-1: Age wise classification of respondents. ........................................................ 29
Figure 4-2: Gender wise classification of respondents. ................................................... 29
Figure 4-3: Education wise classification of respondents. .............................................. 30
Figure 4-4: Marital status wise classification of respondents. ......................................... 31
Figure 4-5: Profession wise classification of respondents. .............................................. 31
Figure 4-6: Income wise classification of respondents.................................................... 32
Figure 4-7: Frequency of visit ........................................................................................ 33
Figure 4-8: Restaurants visited by customers ................................................................. 35
Figure 4-9: Visiting Pattern of customers ....................................................................... 36
Figure 4-10: Purpose of visiting restaurants ................................................................... 38
Figure 4-11: Factors considered before revisiting ........................................................... 39

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 LIST OF ABBREVIATION

COVID-19: Corona Virus Disease of 2019

SPSS: Statistical Package for the Social Sciences

MS: Microsoft

SAIM: South Asian Institute of Management

VAT: Value Added Tax

SEE: Secondary Education Examination

S.D: Standard Deviation

U.S: United States

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 EXECUTIVE SUMMARY

Retaining customers and attracting them to revisit the restaurant is recognized to be more
profitable than finding a prospective customer. The competition in the restaurant industry
in Nepal can be seen to be neck to neck, so knowing how to retain the existing customers
and improve their repeat purchases is an important consideration for practitioners to gain
profit. Predicting or assessing the customers’ behavior and purchasing decision are a
difficult task, but it needs to be done to sustain in the market. Revisit intention can be
closely linked to the food and services factors provided by the restaurants. As the market
of restaurants has increasingly become more competitive, the revisit intention topic has
progressively become prominent to emphasize on. The intensely competitive
environment existing in the restaurant sector makes it vital for firms to make customer
revisit the restaurant in order to survive in the long term. In the hospitality industry of
Nepal we are witnessing a shifting trend in eating habits of Nepali people. Nepalese
people are now eating out more often; this might be due to the increase in the disposable
income of the people.

The purpose of this study is to investigate factors influencing customer revisit intention to
Nepalese restaurants in Jhamsikhel area. For the study of this research firstly five
Nepalese restaurants located around Jhamsikhel area were selected randomly. And then
15 customers each were selected as the respondents for the study. A total of 75 customers
were selected for this survey. In order to accomplish the objectives of the study, both
primary and secondary data were explored. The factors influencing the customers revisit
intention was identified from literature review and with the discussion with expert.The
primary data was collected through survey questionnaire, response were collected by
interviewing the customers present in the restaurant while visiting the selected Nepalese
restaurants. The research used a questionnaire with a 5-point Likert scale for data
collection. 75 college students were selected to this survey. The analysis is carried out
through SPSS software and results were determined through correlation. The study’s
reliability was measured using Cronbach’s Co-efficient Alpha test.

From the literature review and considering the present situation of COVID-19, this study
has identified six factors that influence customer revisit intention; Menu, Food taste,

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Price, Online Food ordering system, Ambience and Location. Some of these factors
influence the revisit intention of customer in Nepalese restaurants highly, while others
have comparatively low impact on revisit intention.

The most important factors influencing the customer revisit intention in Nepalese
restaurants is ‘price’ followed by ‘food taste’, ‘menu’, ‘ambience’, ‘location’ and ‘Online
Food ordering system’. We find evidence that results all independent variables impact the
customer revisit intention, but price and food taste has stronger influence as compared to
other factors. On the other hand, Online Food ordering system has the least impact as
compared to other variables.

This study result shows that maximum numbers of customers have visited Jimbu Thakali,
followed by Mustang Thakali kitchen. Lowest numbers of customers have visited Sana
Restaurant and Achar Ghar. The customer is found to visit the restaurant mostly to enjoy
the cuisine served by the restaurant and then for hangouts with friends and family. Most
of the respondents have stated that they visit the restaurants at least once in one month.
Most of the customers are of age group 26-35 and most of them are male. It can also be
seen that unmarried individuals visit the restaurants more in compared to married ones.
Student and self employed customers are the highest visitors with the income level of less
than Rs 40,000. The discounts offers provided by the restaurants attract them to revisit
the restaurants. As the research was done with the objective to find out the factors
influencing the revisit intention in Nepalese restaurant, the result and conclusion are
derived by analyzing the data collected from primary and secondary sources through
SPSS. Recommendation for the further research is also provided being based on the
findings of the study. The limitations about the study are also presented which states the
exceptions and weakness of the results obtained from the study.

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 CHAPTER I

INTRODUCTION

1.1.Background of the Study

Customer revisit intention refers to the likelihood of visiting a service provider again in
the future. Revisit of any customer in a restaurant is influenced by various determinants,
and finding the determinants that address individuals revisit intention is challenging.
Various factors affect the choice of customer while choosing a restaurant and the
favorable, satisfactory services encourages them to revisit the restaurants. Repeat visit is
kind of lifeblood for hospitality businesses from economic value generation point of view
for the destination in consideration. Consistent with popular belief in marketing,
motivation pervious customers is way less effortless cost-wise compare to acquiring new
ones (Shoemaker & Lewis, 1999). Repurchase intention is defined as the individual’s
judgment about buying again a specific service from the same company while
considering his likely circumstances or current needs and wants (Lacey, Suh & Morgan,
2007). Revisit intention refers to the same meaning with repurchase intention which
revisit intention is mostly adapted in the hospitality and tourism industry.

In today’s economy, companies have become competitive in acquiring and retaining

customers as they are turning to be customer-centric. One of the generally recognized
marketing principles is that retaining customers is more profitable than winning
prospective customers (Bitran and Mondschein, 1997). Knowing the customer
preferences is vital in a competitive environment, it helps to know what needs to be done
to meet the requirements of the customers, attract and retain them. Study of the repeat
visitation is helpful for restaurant business from economic perspective as attracting new
customer is more costly in comparison to attracting the previous customers. Preserving
and retaining loyal customers is a major contributor to the profitability of the
organization. Frequently visiting customers are significant in increasing the profit and
helps to save the expenses of marketing and promotion of the restaurants. Previous
research has shown that the cost of attracting a new customer is about five times that of
keeping an old customer and the value of winning ten new customers is less than that of

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keeping an old customer (Verhoef and Donkers, 2001). Therefore, how to retain existing
customers and improve their repeat purchases is an important consideration for
practitioners and has also attracted researchers’ attention.

The restaurant business consists of different buyer and they may differ in many different
way and aspects. The differences may be in their preferences, test, needs, resources,
locations, living standard and purchasing behavior. A restaurant is not just composed of
the food or menu it is offering, it is a combination of many factors which in turns paves a
way for satisfaction of the customers who visit these restaurants. If even of the factor is
not adequately met, or poorly implemented, the customers would visit once, but will not
refer it to others and themselves will not visit again. (Karki and Panthi, 2018)

Restaurants are an institution present in every country and every culture throughout the
world. Restaurant is a business establishment where meals or refreshment can be
purchased. Since the 20th Century, restaurants have undergone significant changes, in
part to technological advancements in food productions. The tendency of visiting
restaurant for meals or for refreshment is growing rapidly in our county. In a fast paced
and affluent society, eating out in restaurants has also become an important social and
business occasion. The consumers usually have a wide range of options to choose from.
There are restaurants by the thousands offering a full range of food varieties and services.
(Yong and Muharratul, 2012)

In the modern era, the survival of a restaurant business depends on its ability to attract the
consumer to revisit the restaurant. The restaurant business in the 21st century faces
healthy competitiveness in the market and stakeholder of the restaurant business is
required to interpret the factors that drive the customer to revisit the restaurant. (Akbar
and Singh, 2019)

1.1.1 Brief history of restaurants

An establishment where refreshments or meals are consumed by the public is a
restaurant. The public dining room that came ultimately to be known as the restaurant
originated in France, and the French have continued to make major contributions to the
restaurant’s development. The first restaurant proprietor is believed to have been one A.
Boulanger, a soup vendor, who opened his business in Paris in 1765. The history of the

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restaurant’s development dates back to eighteenth century and into the nineteenth century
it became the institution that we would recognize today. (Lang, 2020) The idea of selling
food for profit existed during the earliest civilizations. The growth of restaurants in large
cities can be seen. In the ancient time the need for public eateries can be seen in the
Roman Empire and Ancient China. The concept of restaurant started when the travelers
and farmers transferred their livestock and other good to urban areas, this transfer of
goods required travel of several days at a time and places to eat and rest along the
roadside were hence established. The business of offering food in exchange for money
dates back at least to medieval times. Travelers in need of food could grab something to
eat at a roadside inn, and street vendors offered quick and simple fare in public
marketplaces. Medieval inns differed from modern restaurants in that they tended to offer
very limited eating options. Everyone ate the same thing, and they often ate it at the same
time, whenever the cook was ready to serve it.

After the French Revolution at the end of the 18th Century, displaced chefs from
aristocratic households made the way for the modern restaurant dining experiences we
enjoy today. Creating à la carte menus featuring gourmet food, the chefs focused on fine
dining experiences by cooking private dinners for people. In the 20th century the
restaurant industry saw a revolution as the restaurant started going global. The restaurants
started evolving to fit the demands of changing consumers. By the end of that century,
restaurants in the U.S evolved further, introducing the world to restaurant chains, fast
food, and an eventual return to farm-to-table dining. (Mealey, 2019)

The major recent trend in restaurant industry are local food, fast food restaurants, green
and eco-friendly options, innovative food, innovation with digital services and online
ordering are observed widely. The customers nowadays are spending consciously; they
prefer restaurants following health and sanitization practices, caring about the
environmental impact, diversity and welfare of the environment and society. Another
modern trend is local foods, with special emphasis on sustainability. Today, people are
more aware than ever of the link between health and nutrition and are more cognizant of
what foods they are eating when they dine at restaurants.

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The modern restaurant industry comprises of wide variety of places or layouts with wide
ranges and varieties, ranging from high end eateries to chain and franchises that have
hundreds of branches in different location around the globe. There are fine dine
restaurant where food is prepared by chef with skills and knowledge that pay great
attention to the ingredients, preparation procedure and presentation with great passion,
also there are many restaurants with multiple location that buy pre made menu from and
specialize and mass production in short period of time serving a low price to large
number of customers.

The history of hospitality in Nepal dates back several hundred years and several hundred
people, to a time when there were no international visitors and certainly no need for any
hotels. The first hotel of Nepal “Nepal Hotel” was established in 1951 in Jawalakhel,
Patan. Royal Hotel, Paras Hotel, Snow View Hotel and Hotel Coronation are the few
hotels that were establishes in 1950s in Nepal. The hospitality industry didn’t have a high
growth during the 90s but the industry began to show a sign of positive changes when
there was the peace process that was taken in 2008 in Nepal.

Looking at the trend of the hotels in Nepal it can be observed that the restaurant industry
also was established during the late 90s and the early 2000s. The Bakery café that was
established in 1991 is one of the first eatery in Nepal. Bhojan Griha established in 1998 is
also another oldest eatery in Nepal. It can be observed that 1980s and the early 90s were
the period when tourism and hospitality industry was growing tin Nepal. During that
period many hotels, eateries, cafe were established not only within the confines of
Kathmandu but also outside the valley such as Pokhara and Chitwan. With the growth of
this industry, it also contributed to the growth of other segments of tourism industry.

The food of Nepal is as diverse as the country itself. The Nepalese food is famous for its
nutrition and appetizing taste. Nepalese culture is also a mixture of Indo Aryan and Tibet
Mongolian influences where Nepalese cultures are mostly influenced by Indian,
Mongolian and Tibetans. Dal-Bhat-Tarkari-Achar (Lentils soup-rice-curry-pickle) is the
main and standard food which is rich in flavor and makes comprehensive use of spices
and seasoning such as ginger garlic coriander and many more. Hence, Nepal with ethnic

4
diversity also has diversity in eating behaviors along with varieties of food in different
region (Thapa and Thapa, 2018)

The trend of visiting restaurant by individuals, households, friends and families are
increasing in Nepal. Currently, there are more than 400 restaurants and cafes serving
different cuisines in Kathmandu itself. With the increase in trend the competition as well
as consciousness of individuals toward quality foods, and more health consciousness
have made the customer choosy in the restaurant food quality, environment and the
services. Rather than cooking food at home and staying in, people like going out and
spend money to try new things. The food craze among the Nepali people has increased,
which can be seen with the popularity of different food blogs, food related Instagram
pages and Facebook pages in Nepal. Recently many new restaurants serving wide
varieties of food have started to open in Kathmandu. The restaurant industry has been
growing rapidly the restaurants are being more customers focused.

1.2. Statement of Problem

The restaurant industry is growing rapidly facing many changes. The changes can be seen
in menu, atmosphere, cuisines, restaurant designs, take away services and many other
factors. Not only the restaurant has changed but the taste and preference of the customer
are also changing. Restaurants providing different types and varieties of foods are being
established around the Kathmandu valley. And why do the customers revisit the
restaurant despite of having plenty of options. Brand, prices, location, etc. could be the
several determinants that influence the revisit intention of customer, the aim of this
research is to find out the different determinants that plays important role in the customer
decision when revisiting a restaurant.

Different factors like food quality, service quality, price and value, cultural factor, image
of the restaurants, take away service, online order and delivery services are the
determinants factors. Since many customers have various preferences and large number
of options but certain factors and determinants influences them to revisit the restaurant
and through this research, we will find out the impact of the different factors in the revisit
intention of customer.

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The business in this sector is customer oriented and are evolving themselves with the
needs and wants of the consumers and making them satisfied as much as they can. The
competition in this sector is intense especially in Nepalese restaurant where the customer
base is already selected so they cannot take the risk of dissatisfying their customers. This
makes customer retention much important for the restaurant owners. This study will
identify the factors that influence to revisit the chosen restaurant which are: Sana
Restaurant, Achaar Ghar, Mustang Thakali Kitchen, The Village Café and Jimbu Thakali.

1.3.Objectives of the Study

The general objective of the research is to find out the different determinants that affect
the customer revisit intention in Nepalese restaurant around Jhamsikhel area. The specific
objectives of the study are;

i. To examine the various determinants that affects the customer revisit in a restaurant.

ii. To examine the extent to which different factors affect the revisit intention of the
customers.

iii. To examine the relationship between independent variables (Menu, Food taste, Price,
Online Food ordering system, Ambience, Location), and Dependent Variable (Revisit
intention)?

1.4.Research Questions

The research questions that guide the research are:

What are the determinants that influence customer revisit to the restaurant?

Which factor influences the customer most to revisit a restaurant?

Is there significant relationship between Independent variables (Menu, Food taste, Price,
Online Food Ordering system, Ambience, Location) and Dependent Variable (Revisit
intention)?

1.5.Significance of the Study

Research has proved that 83% of consumers want quick service eateries and healthier
eating options. Thus, if these concerns are maintained, then the opportunity to start up a

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restaurant business can be a remarkable opportunity for the entrepreneurs. It can be
considered as a never-ending, fast growing and moneymaking industry. (Thapa and
Thapa, 2018)

This study will be helpful for the restaurant owners to know about the determinants that
influences the customer most to revisit the restaurant. It will help the restaurants
managers to realize more appropriate strategies and options that will attract and retain
more customers. As the number of restaurants and cafes are increasing and the services
and quality provided by that restaurant also varies and certain factors attract the customer
and influence them to revisit the restaurant and through this research, we will be able to
find out the different determinants that influences the revisit intention of the customer in
a restaurant.

It has been stated that growing guest repeating intentions to visit by improving guest
satisfaction is important in the hotel industry because obtaining the new guest is more
difficult rather than maintaining a current guest a. Despite maintaining current guest,
dissatisfied guest outcome has the capacity and inspiration to act about changing to
another product, whining or triggering negative word of mouth (Han and Back, 2007).
The study can also be useful to the restaurant owners to have knowledge on the major
important factors that are responsible for the customer retention and attraction. This can
help them to develop strategies and plans to grow the sales. Jhamsikhel area is very
popular for restaurant business; there are many famous restaurants around this place. This
study aims to determine the customer’s preference and perception which will be useful
for new investors in restaurant business. The study will also be useful for people who are
planning to open restaurants. It will help them know about various aspects that attracts
customer including interior, food variety, take away services and other.

The numbers of restaurants, café, eateries are increasing rapidly in city areas on Nepal,
with this trend we can predict that food craze and culture will increase in coming days.
Considering this, opening a restaurant or a cafe is seen as a good business opportunity for
entrepreneurs to explore. So this study will help the entrepreneurs who are searching for
opportunity in this sector.

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1.6.Limitation of the study

The limitations of the study are:

 The study focused only on the selected five Nepalese restaurants around
Jhamsikhel area, and the results may not give a true reflection of the broader
restaurant industry of Nepal.
 The research mainly focused on the customers who reside in Kathmandu Valley,
so the findings may not be applicable for customer living outside Kathmandu
Valley.
 Data are collected through self administered questionnaire. The response provided
by the respondent may be wrong.
 The research is limited to available literature review and observation for
theoretical part.
 The study was conducted on a small sample size the results of the study might
differ from the results of large sample size.

1.7.Organization of the study

This dissertation contains five chapters, with a brief outline of each chapter below:

Chapter 1: Introduction

This chapter gives a brief outline of the topic of the study. It serves as an introduction to
the research study. It covers the background to the research, statement of the problems,
objectives of the study, research questions, research hypothesis, significance of the study,
limitations of study and organization of the study.

Chapter 2: Literature Review and Conceptual Framework

This chapter presents reviews of previous writings, studies and related literature. The
literature relevant to the study is reviewed in this chapter, investigating factors that
influence the customers to revisit the restaurants. It also provides the conceptual
framework for the study. The selected variables and proposed conceptual framework are
also presented and discussed in this chapter.

Chapter 3: Research Methodology

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This chapter focuses on the research methodology, including research design, source of
data collection, sampling methods, research instrument, and the procedures used to
analyze the study’s results. This chapter discusses the research design used, methods and
tools used to gather data from respondent and the data processing and analysis procedure
and methodology used for the study.

Chapter 4: Result and Discussion

This chapter presets the analysis of the data collected from the field which is used to
identify and present the research findings. The study results are presented in this chapter
using graphs, tables, and charts. It also uses statistics to analyses the data collected during
the study.

Chapter 5: Summary and Conclusions

The chapter puts forward conclusions based on the findings for the study given in
Chapter 4. Recommendations are also provided based on the study findings.

9
 CHAPTER II

LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK

A literature review is an objective through summary and critical analysis of the relevant
available research and non-research literature on the topic being studied. The form of
literature review may vary with different studies, the basic purposes remain constant:
provide a context for the research, justify the research, ensure the research hasn’t been
done before, show where the research fits into the existing body of knowledge, enable
researcher to learn from previous theory on the subject, illustrate how the subject has
been studied previously, highlights flaws in previous research, outline gaps in previous
research, show that the work is adding to the understanding and knowledge of the field,
help refine, refocus or even change the topic.

1.1. Literature Review

Revisit intention is found out to have positive correlation with customer satisfaction
which is based on the quality of service and physical evidence. Physical evidence and
service quality when evaluated and enhanced might increase the customer satisfaction to
induce their intention to revisit a café. (Cibro and Herry, 2017)

Rai and Rawal (2019) on “Consumers' Preference of Fast-Food Items in Kathmandu

Valley” found that there is significant relationships between independent variables (taste,
price, ambience and location) and dependent variable (brand preference). It has also been
found that taste, ambience and location have significant and positive impact on consumer
preference for fast food items. It means consumers are much more concerned and aware
about these factors while consuming the fast food. Similarly, price has less or no effect
on consumer preference for fast food items for the respondents taken under the study.
Sample size of 226 was taken for the study. Response was collected using structured
questionnaire from fast food consumer within Kathmandu Valley of University students.
The objective of the study was to examine relationship between price, taste, ambience
and location and consumer preference. The recommendation made by research is that
taste is the most important factor to influence the customer preference of fast-food items,
so it informs the fast-food restaurant business people and distributors to focus more on

10
taste of the fast food, ambience and accessible location of the food in Nepal. The study
has also suggested the owners of fast-food restaurants to carefully design their strategy
and focus more on taste of the fast food, proper ambience and accessible location to
consume the fast food.

Understanding the factors influencing the revisit intention of visitors allows managers or
authorities to know better on how to develop effective marketing and management
strategies and build up visitors’ flow. Also, the study of repeat visitation is crucial for
businesses to operate effectively and efficiently as attracting the previous visitors is more
cost effective than gaining the new ones as the promotional costs in attracting the
repeated visitors are certainly less than attracting new visitors. So, the in-depth study on
the factors influencing the repeat visitors definitely provides a strong foundation to
enhance the business in the tourism and hospitality sector. (Thiumsak and
Ruangkanjanases 2016)

Suhud and Wibowo (2016) studied the impact of perceived value, restaurant atmosphere
on satisfaction and revisit intention. The major findings were that the perceived value and
vintage atmosphere were not found significant to affect revisit intention, however it was
found that vintage atmosphere influenced the customer satisfaction and it was also found
that customer satisfaction toward the restaurant was directly linked to revisit. The
recommendation made by the research was that the vintage restaurant owners could
benefit by improving the atmosphere to increase visitor satisfaction. The strength of the
study is that proper and practice recommendation was made; analysis was done with the
help of statistical tools. The weakness of the study was that only few factors were taken
into consideration while conduction research and the data collected were not reliable as
data were generated through distribution of questionnaire to personally know people by
emails.

Yusof, Ibrahim, Muhammad and Ismail (2015) examined the factors that influence the
students revisit intention to visit kopitiam. The result revealed quality of food found as
the main factor that contributes the student’s intention revisit Kopitian restaurant as
compared to service quality and good ambiance of the food service organization. The sub
objectives were; to examine ambiance factor that influence the student revisit intention to

11
visit the Kopitiam and to determine the service quality factors that influence student
revisit intention. The data were collected through self- reported survey. The population
was the undergraduate students at the UniversitiTeknologi Mara, Pulau Pinang.
Questionnaires were distributed to 150 students. The major recommendation was the
manager can enhance their service quality with their customer in a friendlier manner and
polite way, and try to meet their needs and wants in order to improve the customer
satisfaction. It has also made recommendation that the restaurant owner should study the
price to attract the customer and also accommodate the spending power of different target
group of customers. The strength of the study is that proper analysis and recommendation
are being made. The weakness is that it only focused on the limited internal factors and
ignored the external factors and limited sample size was used.

Awi and Chaipoopiratuna (2014) identified the different factors affecting repurchase
intention of customer in Yangon toward xyz restaurant. For the study data were collected
from 400 respondents who had experienced with the xyz restaurant. Descriptive analysis
was used to describe the general information by using percentage and frequency analysis.
The major finding of the research was that the customer revisit had a strong positive
relation with the customer satisfaction. It was also found that quality of physical
evidence, food quality, service quality, and brand preference customer satisfaction had
positive significant relationship toward repurchase intention. The major recommendation
made by the research was in order to increase the level of customer revisit intention
quality of physical environment, food quality, service quality, perceived value and brand
should be focused by the restaurant to develop more benefit in future. The major strength
of the research was that high number of responses were collected which makes the result
more valid. The weakness of the research is that the variables that affected the consumer
repurchase intention were not ranked as per their importance.

The study on Factors Influence Customer Satisfaction Leading to Revisiting Intention:

Case Study Of The café Kabul Restaurant (Akbar and Singh, 2019) identified that fair
price, service quality, ambience and taste of food have positive correlation with customer
satisfaction leading to revisit intention. The study however has shown that there is a weak
correlation between fair price and the customer satisfaction. The study also showed that

12
the revisiting intention and customer satisfaction share a significant relationship. Among
the total population of customer of the café Kabul Restaurant a sample size of 399 was
chosen that represents the population.

Yan, Wang and Chau (2013) identified the influencing factors on restaurant customers’
revisit intention by analyzing the online review. The data was collected from the Koubie
website (largest online life communities in china). The major findings of the research
were the food quality, price and value, service quality and atmosphere were the
antecedent of restaurant customer revisit intention, and the restaurant type moderates the
effect of customer satisfaction with the food quality, price and value, service quality and
atmosphere. It was also found that satisfaction with the service quality was the strongest
influencing factors. The major recommendation of the study was the restaurant manager
should improve the quality of the restaurant in those four dimensions and pay more
attention to service quality. The results are useful for restaurant operators to take effective
actions to attract customer.

Kim, Lee, Kim and Ryu (2011) explained how healthy food quality attributes are related
to revisit intention and to examine whether green customer moderate the proposed
relationship in the study. The major finding of the research was that the research
indicated the perceived value mediates the positive relationship between the restaurant
healthy food and revisit intention. The study also found that green customers are more
sensitive to restaurant healthy food quality attributes and shows restaurant healthy food
quality has a strong, positive relationship with repeat patronage intention than for low
green customer. It also made recommendation to communicate nutritional information
with their customer more actively. The strength of the study is that focused on the green
customer.

Han, Back and Barret (2009) addressed the impact of consumption emotions on customer
satisfaction and revisit intention, to investigate the mediating role of customer satisfaction
in the relationship between consumption emotions and revisit intention, to identify
switching barrier that restaurant customer perceived and to examine the moderating effect
of the identified switching barrier on the relationship between customer satisfaction and
revisit intention. The research finding indicated that multiple components of consumption

13
emotions significantly affected customer satisfaction and satisfaction mediated the effect
of emotion factors on revisit intention. The findings from the test of metric in variances
also indicated that the strength of the relationship between satisfaction and revisit
intention was different across high and low switching barrier group. The satisfaction
revisit intention relationship was stronger in each low switching barrier group than in
high switching barrier group. The major recommendation from the research was
managers should focus on boosting customer satisfaction level, thereby magnifying the
impact of consumption emotion factor on the revisit intention; another recommendation
is that restaurant customer in actual consumption situation should be used for accurate
results in the future; more comprehensive model should be developed by considering the
other factors. The weakness of the study is that it has several limitations; the research was
based on survey participants’ description of their experience at full-service restaurant
only, web-based survey was only used ignoring other data collection aspects, and the
major weakness is that the emotions cannot be always recalled perfectly. The strength of
this research is; it was presented through strong recommendations; the findings of this
thesis are generally applied and there were presentation of strong points and those points
were justified.

“Study of revisit intention to boutique hotels in MELAKA in Malaysia (Boon, Fern and
Siang 2018), concluded that tangibility, reliability and responsiveness have relationship
towards revisit intention to boutique hotels in Melaka. It also has been found that a
combination of good service quality and unique theme can be a very strong competitive
advantage that helps boutique hotel have a sustainable business in this stiff competition
market in Melaka. The sample size of this study was 200 respondents including both
males and females and they were either local tourists or foreign tourists. The study also
found that there was no significant relationship between empathy and revisit intention. It
has been concluded that boutique hotels in Melaka should have pay more attention to
their service quality in order to better satisfied the needs and wants of the customers and
make them more likely to revisit the hotels in the future. By improving service quality,
customers will have better service experience and feel like they are being cared which
they will more likely to recommend this hotel to their family members and friends.

14
Widyawati and Berlianto (2018) identified the Influencing Factors on Coffee Shop
Customers' Revisit Intention. The target population for this study were the consumer of
Coffee Shop X in Jakarta and the number of samples used was of 330 selected from is
judgmental sampling with the criteria of people who ever shop at coffee shop X. five
variables in this research, i.e., satisfaction, trust, commitment, revisit intention, and
service marketing mix was selected. Service Marketing Mix consists of 7 dimensions,
namely product dimension, price, place, promotion, people, process, and physical
evidence. The study concluded that price, place, promotion, people, and process have a
positive effect on satisfaction. Then satisfaction has a positive impact on trust and revisit
intention. Besides, trust has a positive impact on commitment. In contrast the study
suggested that the product and physical evidence do not affect satisfaction, and
commitment does not change to revisit intention. It has also identified Satisfaction as an
essential factor that impacts customer trust and revisit intention. As an ending to the
study the authors have also suggested Coffee shop retailer to increase customer trust
through a variety of ways, such as keeping their promises in advertising, providing
quality products at a price paid by customers, having ethical integrity, responsive with
complaints and feedback from customers, solving customer problems in full attention and
others.

Furthermore, it is also identified that a well-designed menu attracts and satisfies

customers as well as positively impact the performance of the restaurants. Previous
literature has examined the topic of the menu and its related aspects including menu
planning, menu pricing, menu designing, and menu analysis. Restaurant menus are
planned to offer items in a way that attracts customers to increase sales (Murphy and
Smith, 2009). Service quality and food quality have a significant relationship towards
revisit intention which signifies that the customers that were satisfied with the restaurant
were willing to revisit the restaurant and recommend it to their friends and family.
Variables such as service, food, atmosphere or environment and price fairness were
significantly related with customer satisfaction and revisit intention. The service and food
factor emerged as the most important attribute in inducing the revisit intention (Shariff,
Omar, Sulong, Majid, Ibrahim, Jaafar, & Muhamad 2015).

15
1.2.Research Gap

Despite the growing restaurant industry in Nepal, there is very little research done to
evaluate the customer’s choice, preferences and revisit intentions. This makes it difficult
for the restaurant owners to determine the factors that most attract the customers. The
variables used in the previous research are food quality, price and value, service quality
and atmosphere, healthy food quality and are not relatable to Nepalese market. The result
from the research has found out the factors determining the revisit intention in fast food
chain, college canteens and in resorts but there is no any single research being carried to
study the Nepalese restaurants. We can see the different theories are beyond the scope of
the Nepalese restaurant industry doesn’t provide in-depth knowledge about the
determinants of revisit intention of customer in a restaurant. This kind of research has not
been conducted till now by any restaurants or the customers in Nepal prior to this topic,
so it will help to identify and analyze the factors related to customer revisit intention in
Nepalese restaurant in Nepal. This study tries to fulfill this weakness. Thus, studies
related to these factors need to be carried out related to Nepalese scenario.

1.3.Conceptual Framework

By identification of the various determinants for the in above literature and identifying
the related factor following conceptual framework has been developed. Due to limitations
of time and expertise the following dependent, independent and moderating variables are
identified. The dependent, moderating and the independent variables identified for the
study are:

16
 Independent Variable Dependent Variable
Customer Revisit
 Menu
 Price
 Food Taste
 Online Food Moderating Variables

Ordering system  Age

 Ambience  Gender
 Location  Education
 Income
 Marital Status
 Occupation

Figure 2-1: Conceptual Framework

1.4.Specification of Variables

1.4.1. Dependent Variables

Revisit Intention

Revisit intention is defined as the stated likelihood of repurchasing a product/service that

the consumer has once used/received. (Widyawat and Berlianto, 2019).Repurchase
intention is defined as the individual’s judgment about buying again a specific service
from the same company while considering his likely circumstances or current needs and
wants. Revisit intention refers to the same meaning with repurchase intention which
revisit intention is mostly adapted in the lodging industry. (Boon, Fern and Siang, 2018)

1.4.2. Independent Variables

I. Menu: Menu is a list of food and beverages offered by a restaurant to customers

and the prices. A menu presents a list of options from which customers choose the
food or beverages that they want to consume. The menu is usually printed on

17
 paper sheets provided to the diners, put on a large poster or display board inside
the establishment, displayed outside the restaurant, or put on a digital screen.
Nowadays the menu of the restaurant is available online also. The primary
purpose of creating a menu is communication. Sensibly selected words in a
speech can make it fascinating and unforgettable. A well-designed menu is a
map the navigate the customer to reach their satisfaction and exceed their
expectation. Menus are also a reflection of the restaurant’s image. There are
different aspects of the well-designed menu. Studies have found that menus that
demonstrate incorrect information can lead to customers’ dissatisfaction, a
financial loss and could influence the ultimate failure of a restaurant operation (
Jawabreh, Jaffal, Abdelrazaq and Mahmoud,2018). This menu factor will be
measured by using a Likert scale.
II. Food Taste: Food taste is the sensation produces when food is consumed. Food
taste includes the flavors, texture, smell and the shape and size. Taste includes
freshness, temperature, hygiene and presentation may also somehow influence
taste of the food. Good food taste is a factor that consumer expects while visiting
a restaurant. . The food taste affects the consumer revisiting decision process.
This food taste factor will be measured by using a Likert scale.
III. Price: Price refers to the monetary valuation needed for exchange of service or
product. It is the quantity of payment given by one party to another in retur4n of
goods or services. The level of quantity to be expected is dependent to the price
they pay to the food. As the customer compares the price and value with the
quality and quantity of a food product it must be considered. Service fees,
justified price for food, VAT, discounts and offers are the elements under price.
In the selection of a product, price plays an important role. Price is a value or
reward provided in exchange for need satisfaction to the organization. Price and
perceived consumer want should be compatible. (Karki and Panthi, 2018) The
price of the product affects the consumer purchasing decision process. This price
factor will be measured by using a Likert scale.
IV. Online Food ordering system: With the increase in dependency on ordering of
goods and other products through online web portals, apps and other ways, the

18
 online food ordering system has come to rise recently. People have started to
order foods from the place they like just staying inside their homes. The impact of
factor on revisit intention will be measured by using a Likert scale.
Technological dependency, convenience and less time taken for the food to be
delivered aids as a good reason for the consumers to choose the services offered
by the online food ordering and delivery service portals. The popularity of online
food ordering and delivering services is steadily growing; expectations of the
users are also increasing. (Das, 2018)
V. Ambience: According to Ryu(2007), ambience does create an image, the created
image can influence the customer’s satisfaction level, and this is true for
restaurant, café and food industry. Ambience is literally the atmosphere of a
place. It can also be feelings, likelihood related to a certain place. Ambience is the
quality of the surrounding space that perceived by customers. Ambience is made
up of a set of elements, such as lighting, music, scent and color. Research in
environmental psychology has suggested that ambience have a powerful impact
on customer’s attitudes, emotions and behavior. (Omar, Ariffin and Ahmad, 2015)
This factor will also be measured by using a Likert scale.
The increasing demands of restaurants have led restaurant owners to believe that
the environment and ambiance of their restaurant have to be compelling enough in
order to retain customers for more visits (Xu 2007).
VI. Location: Location is the place where something is situated. The location of the
restaurant has directly influenced the number of customers. If the location of the
restaurant is not in right place it will be difficult for the customers to visit even if
they like the food or other factors. If the location is easy to access, has parking
facility and only few competitors, then it can be helpful for the customers to
revisit again. The impact of this factor will be measured by using a Likert scale.

1.4.3. Moderating Variable

A variable that affects the strength of relationship between dependent and independent
variable is moderating variable. The moderating variable alters the effect that an
independent variable has on a dependent variable. These variables might strengthen,

19
weaken or alter the relationship between the dependent and independent variable. The
moderating variables that are taken into consideration and might influence customer
revisit intention are:

 Age
 Gender
 Education
 Income
 Marital Status
 Occupation

20
 CHAPTER III

RESEARCH METHODOLOGY

In the previous chapter, the literature concerning revisit intention of customers in

restaurant was discussed. This chapter outlines an important methodological approach
used to gather data and research design and techniques implemented for conducting this
research. Research Methodology is a way to systematically solve the research problem. It
may be understood as a science of studying how research is done scientifically. This
research methodology explores the research process regarding factors involved in
customer revisit intention among the customers around Jhamsikhel area. In this study, a
survey was conducted by distributing self-administered questionnaires among the
respondents who are the customers of the selected restaurants. This chapter focuses on
the research methodology, including methods of data collection, sampling methods,
research instruments, and the procedures used to analyze the study's results.

3.1. Research Design and Plan

Research design and plans are the strategy, structure and framework for the research to be
carried out. It serves as a framework for the study, guiding the collection and analysis of
the data, the research instruments to be utilized, and the sampling plan to be followed.
There are many methods of research design and this study has been based primary and
secondary data. To achieve the objective of this study journal, articles relevant with the
study and other related materials are collected and studied. The research will be
descriptive in nature. It focuses on describing the determinants that affect the customer
revisit intention. The research describes relevant factors from the view point of the
customer of the restaurants. The research design shall be quantitative for the study.

3.2.Population and Sample Size

Population

The first step in developing any sampling design is to clearly define the aggregate of
sampling units in the population. Populations include all units or elements of interest that
are relevant to research studies. The target population for this study comprised of the

21
customers visiting the selected five Nepalese restaurants. All the customers who visited
the selected restaurants once or more were the population. Convenience sampling was
used to carry out this research.

Sample Size

The study population for this research was the customers of typical Nepalese restaurants
around Jhamsikhel area. Among all the people who visited the five selected restaurants,
70 sample sizes as respondents was selected purposefully. For the survey the first fifteen
customers based on convenience from each particular restaurant was asked to fill up the
questionnaire. Under convenience sampling sample are selected not only by judgment
because elements in fraction of population can be reached conveniently on the basis of
proximity, ease of access and the willingness of the respondent to participate

3.3.Source of Data

Primary data was collected for the analysis. Self-administered questionnaire was used to
collect the information related to the determinants of the revisit intention from the
customer of the different Nepalese restaurant around Jhamshikel Area. The population for
the study is the customers who frequently visit the selected five typical Nepalese
restaurants at Jhamsikhel area.

A sample of 70 that represent the population considering time and resource constraint
was taken. 15 responses from each five restaurants will be taken on first come first
response basis. Due to COVID-19 the numbers of customers visiting the restaurants were
low therefore total sample size of 70 that represent the whole population was taken. The
questionnaire consists of various different questions regarding the determinants and their
influence in the revisit intention of the customer. The data was collected by visiting and
surveying the customers of the selected restaurants.

Secondary data for this study was collected from articles, journals, and the internet and
various articles, papers, and thesis related to the topic. The secondary data, personal
observation and experience, also helped to construct research questions, which are tested
in the following sections

22
3.4.Data Collection

For this study I have purposively selected five Nepalese restaurants operating around
Jhamsikhel area as it isn’t feasible to study many restaurants due to time and resources
constraint. I have concentrated on Jhamsikhel area for this study and the restaurants that
have been selected are;

 Sana Restaurant
 Achaar Ghar - House of Pickles
 Mustang Thakali Kitchen
 The Village Café
 Jimbu Thakali by Capital Grill

Different types of questions were designed for the collection of the data, so that it will
help eliminate the error and gain accurate information. Questionnaire consisting Likert
scale, open ended and close ended will be made to collect information.

The study has been accomplished by using a survey method. First, the survey questions
were designed. Single response and multiple response questions were prepared. Also, the
Likert scale was applied to understand the various revisit intention preferences on a five-
point scale. These questionnaires were self-administered. Next, the questionnaires were
distributed to the customers present in the restaurant by visiting the restaurants and the
response required for the study was generated.

3.5.Instrument of data

The study made use of a self-administered survey for gathering information on the
visiting intention of customers towards Nepalese restaurants. The initial part of the
questionnaire posed respondents’ demographic profiles included age, gender, education,
marital status, occupation, income, and their frequency of visit. In the mid part,
respondents were asked about the restaurant they had visited, whether they visited those
restaurants more than once or not and the question about the factors was also listed. And
lastly the respondent was asked to express their agreement with statements about
restaurant attributes and its influence on the intention to revisit the restaurants.
Respondents were asked to indicate their agreement with statements describing the

23
factors that determine them revisiting a restaurant. The revisit intentions were assessed,
using a 5-point Likert scale from 1= strongly disagree to 5= strongly agree.

3.6.Data Analysis

After collecting all the response from the respondents, SPSS and MS. Excel were used to
analyze the data. All the response collected from the respondent were coded and
tabulated in the SPSS worksheet. The coding of data was done on the basis of the
question such as Likert scale, multiple options. After the coding and tabulation of the
data, firstly the findings were profiled by demographic and visiting characteristics.
Second, a scale reliability analysis using Chornbach alpha was run to identify underlying
internal consistency among the statement of constructs as they were borrowed from other
studies. Thirdly, correlation analysis was carried out to investigate the relationship
between dependent and independent variables of the study. Cronbach’s alpha was used to
assess the reliability of each scale. Parametric tests Pearson’s correlation is used in the
study. For the presentation and explanation of the data table, pie charts and frequency
tables are used.

3.7.Reliability Tests

Reliability concerns the extent to which a measurement of a phenomenon provides stable

and consist result (Carmines and Zeller, 1979). The Cronbach Alpha coefficient is viewed
as the most appropriate measure of reliability when making use of Likert scales
(Robinson, 2009). For an exploratory or pilot study, it is suggested that reliability should
be equal to or above 0.60 (Straub, 2004). Experts have suggested four cut-off points for
reliability, which includes excellent reliability (0.90 and above), high reliability
(0.70-0.90), moderate reliability (0.50-0.70) and low reliability (0.50 and below)
(Hinton, 2004)

Reliability analysis was used to measure the consistency and stability of a scale. In this
study, Cronbach’s alpha value was used to measure the reliability statistics.
Cronbach’s alpha coefficient for the study is 0.680 which is above 0.5 and it is
considered at an acceptable level. So it can be said that the data of the study are
moderately reliable. This result shows that the alpha value obtained is within the

24
acceptable range, thus showing a suitable reliability estimate for the test scale adopted.
Reliability Test of the study is shown in the table below.

Table 3-1: Reliability Test Finding

Cronbach's Alpha N of Items

.680 21

Source: SPSS result based on responses on the survey questionnaire in appendix A

25
 CHAPTER IV

RESULT AND DISCUSSION

This chapter deals with the presentation, interpretation, and analysis of primary data
collected for the study of revisit intention of customers among customers of Nepalese
restaurant. In order to obtain the results the data have been analyzed according to the
research methodology mention in chapter three. The first section covers the analysis of
primary data and presents the result of the questionnaire. Descriptive analysis and
ranking have been conducted to find the relationship between different variables.
Similarly the Second section includes the correlation and linear regression analysis.
Finally, third section discuss on the concluding remarks associated with the findings from
primary data analysis.

4.1. Analysis of data

4.1.1. Respondent Profile

As the study focuses on determining the revisit intention of customers towards Nepalese
restaurants, the research data were collected from the customers visiting the restaurants
selected. The questionnaire was the primary tool used to collect data and was distributed
to customers of the five selected restaurants operating around Jhamsikhel area.75 sample
was used from the collected questionnaire based on the gender, age, education level,
income and marital status. The respondent profile is presented in the following table:

Table 4-1: Profile of respondents

No. of
Respondents Character Respondents Percentage
Age
16-25 32 43%
26-35 27 36%
36-45 10 13%
46 and above 6 8%
Total 75 100%

26
Gender
Male 38 51%
Female 37 49%
Total 75 100%
Education
Up to SEE 3 4%
+2 9 12%
Bachelors 35 47%
Masters & above 28 37%
Total 75 100%
Marital Status
Unmarried 38 51%
Married 37 49%
Total 75 100%
Occupation
Student 18 24%
Business Professional 17 23%
Self-Employed 19 25%
Unemployed 9 12%
Others 12 16%
Total 75 100%
Income
Below Rs.40,000 41 55%
Rs 40,000-Rs 80,000 5 7%
Rs 80,000- Rs 120,000 8 11%
Rs 120,000 and above 7 9%
Not Mentioned 14 19%
Total 75 100%
Source: Questionnaire Survey

27
The table above shows the respondent’s profile regarding the age, gender, education
level, marital status, occupation and income. These demographic characteristics play a
significant role in finding the factors influencing the customer revisit intention in
restaurants, as these factor influences the dependent variable (revisit intention) positively
or negatively.

Out of the total 75 respondents 43 percent of the respondents are of age group 16-25.
This age group has the largest number of respondents. Similarly 36 percent are from the
age group 26-35, 13 percent are from 36-45 age group and 8 percent of the respondents
are from the age group 46 and above. The table also shows that 38 respondents are male
(51%) and 37 are female (49%).

Among all the respondents most of them had formal education of Bachelors degree (47
percent), followed by masters and above with 37%, +2 with 12 percent and the lowest
were of up to SEE with 4 percent. The numbers of unmarried respondents are higher than
the married ones, as 49 percent are married and remaining 51 percent are unmarried.

Based on occupation, customers were categorized into five groups; student, business
professional, self-employed, unemployed and others. 25 percent respondent were self
employed which is highest among all, followed by student being 24 percent, business
professional 23 percent , others 16 percent and unemployed was lowest with 12 percent.

Based on the income, the customers of were categorized into five groups and among
them 55 percent have income of “below Rs 40000”, 19 percent of the respondent didn’t
mentioned their income, similarly 11 percent of them have income of Rs 80,000- Rs
120,000, 9 percent of the customers have income of Rs 120,000 and above and about 7
percent of the customers have the income of Rs 40,000-Rs 80,000.

4.1.1.1 Demographic characteristics

There were six questions about the demographic categories that the respondents were
asked to answer to find out their demographic profile. Age, gender, education, marital
status, occupation and income were the demographic categories. The distribution of
collected sample based on these demographic profiles is presented as below.

28
The classification of respondents by gender category is presented in figure 4.1.

Age

8%
Age
13%
43% 16-25
26-35
36-45
36% 46 and above

Figure 4-1: Age wise classification of respondents.

The figure above shows that among the 75 respondents, 43 percent of them fall under the
age group of 16-25. Likewise 36 percent of them fall under the age group of 26-35, 13
percent falls under 36-45 age group and the age group of ’46 and above’ has 8 percent
which is the lowest of all.

The classification of respondents by gender category is presented in figure 4.2

Gender

49% Male
51% Female

Figure 4-2: Gender wise classification of respondents.

The Figure 4.2 shows that 51 percent of the respondents are male, while the remaining of
49 percent is female.

29
The classification of respondents by Education category is presented in figure 4.3

Education
4%

12% Upto SEE

37%
+2
Bachelors
47% Masters & above

Figure 4-3: Education wise classification of respondents.

The figure 4.3 above shows that 47 percent among the 75 respondents have education
level of bachelor’s degree. Similarly 37 percent have education level of Masters & above,
followed by 12 percent having education level of plus 2 and remaining 4 percent have
education level up to SEE.

The classification of respondents by marital status category is presented in figure 4.4

30
 Marital Status

49% Unmarried
51% Married

Figure 4-4: Marital status wise classification of respondents.

The Figure 4.4 shows that 51 percent of the respondents are unmarried, while the
remaining of 49 percent is married.

The profession was divided into five categories for the study to be easier and represent
most of the customers. The classification of respondents by Profession category is
presented in figure 4.5

Occupation
18 19
17

12
9

Student Business Self-employed Unemployed Others

professional

Figure 4-5: Profession wise classification of respondents.

The figure 4.5 shows that 25 percent respondent are self employed, 24 percent of them
are students, 23 percent of them are business professional, 16 of the respondents fall
under other category and remaining 12 percent of the respondents are unemployed.

31
The classification of respondents by Income category is presented in figure 4.6

Income
41

14
8 7
5

Below Rs 40,000-Rs Rs 80,000- Rs Rs 120,000 and Not Mentioned

Rs.40,000 80,000 120,000 above

Figure 4-6: Income wise classification of respondents.

The figure 4.6 shows that 55 percent of the respondent have income of “below Rs
40000”, 19 percent of the respondent didn’t mentioned their income, similarly 11 percent
of them have income of Rs 80,000- Rs 120,000, 9 percent of the customers have income
of Rs 120,000 and above and about 7 percent of the customers have income of Rs 40,000-
Rs 80,000.

4.1.2. Analysis of Visiting Frequency

In this section the respondents visiting pattern and restaurants most visited are presented.
Similarly the numbers of respondents who have revisited the selected restaurants are also
discussed below. Frequency of visit to restaurants

Table 4-2: Frequency of visit to restaurants

No. of
Frequency of Visit respondents Percentage
Once or twice every week 7 9%
Once or twice every two
weeks 4 5%

32
 At least once in a month 27 36%
Once in six months 18 24%
Once in a year 19 25%
Total 75 100%
Source: Questionnaire Survey

The table above shows the respondent’s frequency of visiting Nepalese restaurants. The
frequency of visit was categorized into five groups. It is found that among the 75
respondents, 36 percent of them visit restaurants at least once in a month, likewise 25
percent of them visit restaurant once in a year, 24 percent of them visit the restaurant at
least once in six months, 9 percent of the respondent visit the restaurant once or twice
every week and only 5 percent of them visit the restaurants once or twice every two
weeks. The data related to frequency of visit is represented in the bar graph below.

Frequency of Visit
27

18 19

7
4

Once or twice Once or twice At lease once in Once in six Once in a year
every week every two weeks a month months

Figure 4-7: Frequency of visit

4.1.3. Analysis of Restaurant visited

The customers have different preferences regarding the restaurant they like to visit. Their
preferences lead them to visit many restaurant and they also choose not to visit many
restaurants. In this subtopic, we can see which restaurant is preferred most by the
customers among the five selected restaurants.

33
Table 4-3: Restaurants visited by customers

Restaurant Visited
Sana Restaurant 15
Achaar Ghar 20
Mustang Thakali Kitchen 24
The Village Café 23
Jimbu Thakali by Capital Grill 42

Source: Questionnaire Survey

Among the five selected Nepalese restaurants, the most visited restaurant is Jimbu
Thakali by Capital Grill. 42 respondents have said that they have visited Jimbu Thakali
restaurant at least once. Similarly 24 respondents stated that they have visited Mustang
Thakali Kitchen, 23 respondents stated that they have visited The Village Café, 20
respondents have also visited Achaar Ghar - House of Pickles and only 15 respondents
stated that they have visited Sana Restaurant.

It can be concluded that among these five Nepalese restaurant the most popular one is
Jimbu Thakali by Capital Grill as it has highest number of visitors and the least popular
among the selected restaurant is Sana Restaurant as only 15 respondents have visited this
restaurant. The data related to restaurant visited by the customers is represented in the bar
graph below.

34
 Restaurant Visited
42

24 23
20
15

Sana Achaar Ghar Mustang The Village Jimbu

Restaurant Thakali Café Thakali
Kitchen

Figure 4-8: Restaurants visited by customers

4.1.4. Analysis of Revisiting Pattern

Among the 75 respondents from five selected restaurant 53 percent of them have
revisited any of the five restaurants whereas 47 percent of them haven’t visited these
restaurant before. It can also be said that 35 of the respondent are the first time visitors,
while 40 of them have visited these restaurant before.

Table 4-4: Number of customer who have visited the restaurant before.

Revisiting Pattern
Repeat Visitors 40 53%
First time Visitors 35 47%
Total 75 100%
Source: Questionnaire Survey

The number of first time visitors and repeat visitors in the selected Nepalese restaurants is
presented in the pie chart below;

35
 Revisit Pattern
Repeat visitors First time visitors

47%
53%

Figure 4-9: Visiting Pattern of customers

4.1.5 Analysis of purpose of visit

Visiting restaurants is one of the most loved activities worldwide. Most of us love to visit
our favourite restaurants every now and then. Food lovers enjoy exploring and visiting
new restaurants to enjoy the variety of foods offered by the eatery. People in Kathmandu
visit restaurant for outings to spend quality time with their friends and family. Generally,
people love to go back to a restaurant again and again because of the food, the service,
the ambiance. Sometimes people visit restaurants to escape the burden of cooking at
home. We have studied various different purpose people visit a restaurant and the
purposes are explained below:

Table 4-5: Purpose of visiting restaurants

No of
Purpose of Visit respondents Percentage
To enjoy the cuisine 21 28%
To celebrate life events 14 19%
For formal and informal meetings 15 20%
For hangouts with friends and family 16 21%
To avoid cooking 9 12%
Total 75 100%
Source: Questionnaire Survey
36
The table above shows the respondent’s purpose of visiting Nepalese restaurants. It can
be seen that the majority of respondents visit restaurant to enjoy the cuisine served by the
restaurant. 28% of the respondents have stated that they visit restaurant to enjoy the
cuisine.The most common reason why people love to go to restaurants even though it
involves spending money is food. As the dished in a restaurant are prepared by expert
chef who have been trained to master these dishes and get good taste. For this reason
people like to visit restaurant.

The second most popular reason for visiting the restaurant is to hangouts with friends and
family. 21% of the respondents have stated that they visit restaurant to catch-up with their
family and friends and spend quality time with them. In city like Kathmandu people are
extremely busy with their professional life due to which they aren’t able to give time to
their family and friends, so they prefer to go out to dine and spend time in the restaurant
with their friends and family.

Next reason for people visiting restaurant is for formal and informal meetings. 20% of the
respondents have stated that they visit restaurant for formal and informal meetings.
Restaurants are great settings for business meetings and informal meetings or for
socializing with friends. Studies have found that restaurants get 70% of its business by
people who have business meetings there. People love to meet their friends, lovers,
business partners, co-workers friends here simply because they would love to chill out
here and enjoy great food.

The fourth most popular reason for people visiting the restaurants is to celebrate life
events. 19% of the respondents have stated that they visit restaurants to celebrate life
events like birthdays, anniversary, promotions, etc. Restaurants are the most favorite
destination for when people to celebrate a special event. Restaurants are known to
provide excellent social settings and you could enjoy a wonderful meal amidst friends,
family, and great ambiance.

The next reason for people visiting the restaurants is to avoid cooking. 12% of the
respondents have stated that they visit restaurants to avoid cooking at home. Many people
wish to escape the ordeal of cooking food at home and entertaining people. Moreover,
going to a restaurant could mean a respite from cooking that meal. People often include a

37
restaurant trip when they are planning shopping, or movie or an excursion. This is simply
because they do not wish to worry about coming back early to cook.

The data related to the purpose of visiting restaurants is presented in the chart below:

Purpose of Visit

21

15 16
14

To enjoy the To celebrate life For formal and To hangout with To avoid
cuisine events informal friends and cooking
meetings family

Figure 4-10: Purpose of visiting restaurants

4.1.6. Analysis of Factors considered most while revisiting

In the questionnaire the respondents were asked to select one factor among the six
independent variables which they would consider before deciding to revisit the five
selected restaurant.

The factors chosen by the respondents are listed in the table 4-6 below.

Table 4-6: Factors considered before revisiting

No. of
Factors considered before revisiting Respondents Percentage
Menu 13 17%
Price 21 28%
Food Taste 18 24%
Online Food Ordering System 5 7%
Ambience 11 15%

38
 Location 7 9%
Total 75 100%
Source: Questionnaire Survey

From the table above it can be seen that among the75 respondents, 21 respondents (28
percent) stated that the most important factor that they consider is the price. The highest
number of the respondent revisit intention is influenced by price factor. Similarly 18
respondents (24%) have considered food taste to be the factor that they will consider
before revisiting the restaurant.

It is also found that 13 respondents (17%) stated that menu of the restaurant is important
factor that they consider before revisiting. The fourth most important factor according to
the respondent is ambience as 11 respondents (15%) have stated that they prefer to revisit
the restaurant that has a good and attractive ambience. Likewise only 9% respondent
each, have stated that location of the restaurant also affected their decision to revisit a
particular restaurants. And the least affecting factor for deciding to revisit a restaurant is
the online food ordering system, as only 7% have stated it to be important.

The data related to factors considered before revisiting by customers is represented in the
bar graph below.

Factors considered before revisiting

21
18

13
11
7
5

Menu Price Food Taste Online Food Ambience Location

Ordering
System

Figure 4-11: Factors considered before revisiting

39
4.1.6. Analysis of Dependent and Independent Variable.
4.1.6.1. Analysis of Customer Revisit intention
In this section discussion regarding the revisit intention in Nepalese restaurants is made.
The information regarding the revisit intention is presented here. Revisit intention is
important for the service sector but a fixed tool to analyze it hasn’t been yet quantified.
The information regarding the revisit intention is presented in the table below:

Table 4-7: Analysis Revisit intention in Nepalese Restaurants.

Statement Strongly Agree Neutral Disagree Strongly N Mean

Agree disagree
I revisit the F 29 33 7 5 1 75 4.12
restaurant % 38.7 44 9.3 6.7 1.3 100
that suits my
food
preference.
I revisit the F 30 26 15 4 0 75 4.09
restaurant % 40 34.7 20 5.3 0 100
that satisfies
my need.
I prefer not F 15 26 14 15 5 75 3.41
to revisit a % 20 34.7 18.7 20 6.7 100
restaurant
that I wasn’t
satisfied
with before.
Weighted average mean 3.87
Source: Questionnaire survey

The above table shows the analysis of customer revisit intention in Nepalese restaurants.
It can be seen that most of the respondents (44%) agree with the statement “I revisit the
restaurant that suits my food preference.” While 38.7% of the respondents strongly agree

40
with that statement, 9.3% of the respondents are neutral towards the statement, 6.7% of
then disagree with the statement and remaining 1.3% strongly disagree to the statement.

The next statement regarding the revisit intention is “I revisit the restaurant that satisfies
my need.” 40% of the respondents have strongly agreed towards this statement, similarly
34.7% of the respondents have also agreed to the statement. While 20% of the
respondents are neutral and 5.3% of them disagree with this statement. For this statement
no one has strongly disagreed.

The final statement related to revisit intention is “I prefer not to revisit a restaurant that I
wasn’t satisfied with before.” Most of the respondents (34.7%) agree with this statement,
20% of the respondents have strongly agreed with this statement, followed by 20%
respondents disagreeing with the statement, like wise 18.7% of them have remained
neutral towards the statement while only 6.7% of them have strongly disagreed with the
statement.
4.1.6.2. Analysis of Menu
A well-designed menu is a map the navigate the customer to reach their satisfaction
and exceed their expectation. Menus are also a reflection of the restaurant’s image. The
menu of the restaurant is said to have a significant role in attracting the customers, so the
menu design, colors applied in menus, the type of paper, illustrations should reinforce the
restaurant image. The menu has relation with the customers revisit as it is one of the main
things that they observe. The information regarding the menu is presented in the table
below:
Table 4-8: Analysis of Menu

Statement Strongly Agree Neutral Disagree Strongly N Mean

Agree disagree
I like to visit the F 35 32 7 1 0 75 4.35
restaurant that % 46.7 42.7 9.3 1.3 0 100
provides
different variety
of foods.
I decide not to F 21 26 26 2 0 75 3.88

41
 visit the % 28 34.7 34.7 2.7 0 100
restaurant if
there
is lack of food
alternative.
The design and F 0 9 15 31 20 75 2.17
sequence of % 0 12 20 41.3 26.7 100
items in the
menu influences
my visit.
Weighted average mean 3.47
Source: Questionnaire survey

The table above shows the analysis of three statements related to menu variable of the
study. It is seen that among the 75 respondents, most of them (46.7%) strongly agree with
the statement “I like to visit the restaurant that provides different variety of foods.” While
42.7% of the respondents have agreed to the statement, 9.3% of the respondents have
chosen to remain neutral towards this statement and only 1.3% of them have disagreed to
the statement. No respondent have strongly disagreed to this statement.

The second statement related to the menu variable is “I decide not to visit the restaurant if
there is lack of food alternative.” For this statement 34.7% of the respondents have
agreed, while the same numbers of customers have also remained neutral towards the
statement. So no strong agreement for this particular statement can be seen. Likewise
28% of the respondents have strongly agreed to the statement, while only 2.7% of the
respondents have disagreed. No respondent have strongly disagreed to this statement.

Most of the respondents (41.3%) have disagreed with the third statement of the menu
variable that states “The design and sequence of items in the menu influences my visit.”
26.7% of the respondents have strongly disagreed to this statement while 20% of the
respondents have remained neutral towards this statement and only 12% from the total of
75 respondents have agreed to this statement. For this statement there are no respondent
that have strongly agreed.

42
4.1.6.3. Analysis of Price
Price of the food is an influence on customer revisit intention especially when it is the
only information available. Different restaurants charge different price for the similar
kind of food and services and this pricing creates a perception about whether to visit the
restaurant again or not. It is very important that restaurants explore as many food pricing
strategies as it can and to choose the most effective strategies. If it fails to do so, then it
won’t stay in business very long. The information regarding the price is presented in the
table below:

Table 4-9: Analysis of Price

Statement Strongly Agree Neutral Disagree Strongly N Mean

Agree disagree
I revisit the F 28 38 5 4 0 75 4.20
restaurant % 37.7 50.7 6.7 5.3 0 100
because it
charges a
fair price.
Extra F 7 22 27 15 4 75 3.17
service % 9.3 29.3 36 20 5.3 100
charge/VAT
discourages
me to revisit
the
restaurant.
Discount/ F 6 23 18 18 10 75 2.96
offers % 8 30.7 24 24 13.3 100
influence
me to revisit
the place.
Weighted average mean 3.44
Source: Questionnaire survey

43
The above table shows the analysis of price variable. For this variable there are three
statements. Most of the respondents (50.7%) have agreed to the statement “I revisit the
restaurant because it charges a fair price.” 37.7% of the respondents have strongly agreed
to this statement and only 5.3% of the respondents have disagreed to the statement, while
6.7% of the respondents have remained neutral to the statement. No respondent have
strongly disagreed to this statement.

Majority of the respondents (36%) remained neutral with the statement “Extra service
charge/VAT discourages me to visit the restaurant.” 29.3% of the respondents have
agreed to this statement, 20% of the respondents have disagreed to this statement, 9.3%
have strongly agreed and 5.3% of the respondents have strongly disagreed towards this
statement.

The third statement for the price variable is “Discount/offers influence me to revisit
the place.” For this statement the majority of the respondents (30.7%) have agreed to this
statement. While equal number of respondents (24%) have remained neutral and
disagreed to this statement. 13.3% of total respondent have strongly disagreed to the
statement and only 8% of the respondents have strongly agreed to this statement.

4.1.6.4. Analysis of Food Taste

Taste of the food has direct linkage with customer satisfaction, which in turn influences
customers to revisit the restaurant time and again. Taste of the food is influenced by
temperature, ingredients, aroma, etc. The information regarding the Food taste generated
from the survey is presented in the table below:

Table 4-10: Analysis of Food Taste

Statement Strongly Agree Neutral Disagree Strongly N Mean

Agree disagree
Taste of the F 27 40 5 1 2 75 4.19
food influence % 36 53.3 6.7 1.3 2.7 100
my visit.
Fresh, F 18 33 17 5 2 75 3.8

44
hygienic and % 24 44 22.7 6.7 2.7 100
aromatic food
is
what I prefer
while
choosing a
restaurant.

The F 4 20 29 13 9 75 2.96
presentation % 5.3 26.7 38.7 17.3 12 100
and
temperature of
the
food also
affects my
preferences.
Weighted average mean 3.65
Source: Questionnaire survey

The table above shows the analysis of three statements related to food taste variable of
the study. It is seen that among the 75 respondents, majority of them (53.3%) agree with
the statement “Taste of the food influence my visit.” While 36% of the respondents have
strongly agreed to the statement, 6.7% of the respondents have chosen to remain neutral
towards this statement, 2.7% respondent have strongly disagreed to this statement and
only 1.3% of them have disagreed to the statement.

The second statement related to the food taste variable is “Fresh, hygienic and aromatic
food is what I prefer while choosing a restaurant.” It is seen that among the 75
respondents, majority of them (44%) have agreed with this statement, 24% of the
respondents have strongly agreed to the statement, similarly 22.7% of the respondents
have chosen to remain neutral towards this statement, 6.7%% of them have disagreed to
the statement and only 2.7 % respondent have strongly disagreed to this statement.

45
Most of the respondents (38.7%) have remained neutral to the third statement of the food
taste variable that states “The presentation and temperature of the food also affects my
preferences.” 26.7% of the respondents have agreed to this statement while 17.3 % of the
respondents have disagreed to this statement, 12% from the total of 75 respondents have
strongly disagreed to this statement and only 5.3% of the respondents have strongly
agreed to this statement.

4.1.6.5. Analysis of Online Food Ordering System

Online food ordering is the process of ordering food from a website or other application.
The product can be either ready-to-eat food or food that has not been specially prepared
for direction consumption. It includes food riders and drivers, online food ordering
websites, etc. the tendency of this kind of facility is growing in Kathmandu. These
services also influence the customer choice towards the restaurant. The information
regarding the Online Food Ordering System taste generated from the survey is presented
in the table below:

Table 4-11: Analysis of Online Food Ordering System

Statement Strongly Agree Neutral Disagree Strongly N Mean

Agree disagree
I visit a F 7 20 33 9 6 75 3.17
restaurant % 9.3 26.7 44 12 8 100
because it
delivers
food at my place
whenever
required.
I prefer the F 8 18 41 7 1 75 3.33
restaurant that % 10.7 24 54.7 9.3 1.3 100
has online
menu and online
reservation

46
 system.
Presence of F 13 24 28 8 2 75 3.51
restaurants on % 17.3 32 37.3 10.7 2.7 100
online food
delivery
websites and e-
payment system
motivated me to
revisit the
restaurant.
Weighted average mean 3.34
Source: Questionnaire survey

The above table shows the analysis of Online Food Ordering System. It can be seen that
most of the respondents (44%) are neutral with the statement “I visit a restaurant because
it delivers
food at my place whenever required.” While 26.7% of the respondents agree with that
statement, 12% of the respondents disagree with the statement, 9.3% of them strongly
agree with the statement and remaining 8% strongly disagree to the statement.

The next statement regarding the Online Food Ordering System is “I prefer the restaurant
that has online menu and online reservation system”, 54.7% of the respondents are
neutral towards this statement, 24% of the respondents agree with that statement, 10.7%
of them strongly agree with the statement, 9.3% of the respondents disagree with the
statement and remaining 1.3% strongly disagree to the statement.

The final statement related to Online Food Ordering System is “Presence of restaurants
on online food delivery websites and e-payment system motivated me to revisit the
restaurant.” 37.3 % of the respondents are neutral towards this statement, 32% of the
respondents agree with that statement, 17.3 % of them strongly agree with the statement,
10.7% of the respondents disagree with the statement and remaining 2.7% of the
respondents strongly disagree to the statement.

47
4.1.6.6. Analysis of Ambience

Ambience is the atmosphere of a place. Ambience is the quality of the surrounding space
that is perceived by customers, it is made up of a set of elements, such as lighting, music,
scent and color. This factor is also important for our study. The information regarding the
ambience taste generated from the survey is presented in the table below:

Table 4-12: Analysis of Ambience

Statement Strongly Agree Neutral Disagree Strongly N Mean

Agree disagree
I tend to visit F 6 43 15 8 3 75 3.55
restaurant that % 8 57.3 20 10.7 4 100
has
beautiful
decoration and
layout.
I choose to visit F 3 35 23 11 3 75 3.32
the place with % 4 46.7 30.7 14.7 4 100
proper
lighting and
good music.
I consider F 33 34 4 2 2 75 4.25
Cleanliness of % 44 45.3 5.3 2.7 2.7 100
the place as an
important factor
while visiting a
restaurant
Weighted average mean 3.71
Source: Questionnaire survey

The table above shows the analysis of three statements related to ambience variable of the
study. It is seen that among the 75 respondents, most of them (57.3%) agree with the
statement “I intend to visit restaurant that has beautiful decoration and layout.” While
48
20% of the respondents have remained neutral to this statement, 10.7% of the
respondents have disagreed with the given statement, 8% of the respondents have
strongly agreed to the statement and only 4% of them have strongly disagreed to the
statement.

The second statement related to the ambience variable is “I choose to visit the place with
proper lighting and good music.” For this statement out of 75 respondent 46.7% of them
have agreed to it, 30.7% of the respondents have remained neutral towards the statement,
14.7% of the respondents have disagreed to the statement, while only 4% of the
respondents have strongly agreed and 4% of the respondents have strongly disagreed to
the statement.

Most of the respondents (45.3%) have agreed with the third statement of the ambience
variable that states “I consider cleanliness of the place as an important factor while
visiting a restaurant”. 44% of the respondents have strongly agreed to this statement
while 5.3% of the respondents have remained neutral towards this statement, 2.7% from
the total of 75 respondents have disagreed to this statement and 2.7% respondent have
strongly disagreed.

4.1.6.7. Analysis of Location

Location of the restaurant has linkage with higher number of visitors. And higher number
of visitors increases the number of customers revisiting the restaurant time and again. The
information regarding the location generated from the survey is presented in the table
below:

Table 4-13: Analysis of Location

Statement Strongly Agree Neutral Disagree Strongly N Mean

Agree disagree
I prefer to F 31 29 12 3 0 75 4.17
revisit the % 41.3 38.7 16 4 0 100
restaurant that
is
easily

49
 assessable.
I choose to go F 32 20 18 4 1 75 4.04
to the % 42.7 26.7 24 5.3 1.3 100
restaurant that
has
enough parking
spaces.
I prefer to visit F 13 11 34 14 3 75 3.23
a restaurant % 17.3 14.7 45.3 18.7 4 100
where there
are many other
restaurants
nearby.
Weighted average mean 3.81
Source: Questionnaire survey

The table above shows the analysis of three statements related to location variable of the
study. It is seen that among the 75 respondents, majority of them (41.3%) strongly agreed
with the statement “I prefer to revisit the restaurant that is easily assessable.” While
38.7% of the respondents have agreed to the statement, 16% of the respondents have
chosen to remain neutral towards this statement and 4% of the respondents have
disagreed to this statement. No respondent have strongly disagreed to this statement.

The second statement related to the location variable is “I choose to go to the restaurant
that has enough parking spaces.” It is seen that among the 75 respondents, majority of
them (42.7%) have strongly agreed with this statement, 26.7% of the respondents have
agreed to the statement, similarly 24% of the respondents have chosen to remain neutral
towards this statement, 5.3%% of them have disagreed to the statement and only 1.3%
respondent have strongly disagreed to this statement.

Most of the respondents (45.3%) have remained neutral to the third statement of the
location variable that states “I prefer to visit a restaurant where there are many other
restaurants nearby.” 18.7% of the respondents have disagreed to this statement while 17.3

50
% of the respondents have strongly agreed to this statement, 14.7% from the total of 75
respondents have agreed to this statement whereas only 4% of the respondents have
strongly agreed to this statement.

4.2 Descriptive Analysis

For this study descriptive statistics have been used to describe the factor influencing
customer revisit intention in Nepalese restaurants. The descriptive statistics used in this
study comprise of mean, standard deviation, minimum and maximum values associate
with variables under consideration. The revisit intention variables are menu, price, food
taste, online food ordering system, ambience and location. The descriptive statistics are
summarized on following table 4.14

Table 4-14: Descriptive Statistics

N Minimum Maximum Mean S.D

Revisit Intention 75 2.33 5.00 3.8756 .55554

Menu 75 2.00 4.67 3.4667 .52847

Price 75 1.67 4.67 3.4444 .56242

Food taste 75 2.33 4.67 3.6489 .56657

Online food ordering 75 1.00 5.00 3.3378 .75236

system

Ambience 75 2.33 5.00 3.7067 .53681

Location 75 1.67 5.00 3.8133 .72543

Valid N (list wise) 75

Source: SPSS results based on responses on survey.

The above table 4.13 shows the number of observations, minimum, maximum, mean, and
standard deviation of the variables. The sample comprises of customers from five
selected Nepalese restaurants around Jhamsikhel area. The sample ranges from 1 to 5,

51
leading average revisit intention of 3.8756, the descriptive statistics for the independent
variable, Menu ranges from 2 to 4.67 with the average of 3.4667. while Price ranges from
1.67 to 4.67 leading the average of 3.4444, food taste ranges from 2.33 to 4.67 leading
the average of 3.6489, online food ordering system ranges from 1 to 5 leading the
average of 3.3378 likewise ambience ranges from 2.33 to 5 with leading the average of
3.7067 and location ranges from 1.67 to 5 leading the average of 3.8133. The highest
standard deviation out of the six variables is of online food ordering system (0.75236),
followed by location with standard deviation of 0.72543. Food taste, price, revisit
intention, ambience and menu have the standard deviation of 0.56657, 0.56242, 0.55554,
0.53681 and 0.52847 respectively.

As per respondents views presented in the table-4.14 location, ambience and food taste
influences the customer most to revisit the restaurant as the means are 3.8133, 3.7067 and
3.6489 respectively. The revisit intention of the customers is moderately influenced by
price and menu as their means are 3.4667 and 3.4444 accordingly. Online food ordering
system has the least influence on the revisit intention of customers as the mean is 3.3378.
So the restaurant owners need to consider location, ambience and food taste most in order
to retain more customers, price and menu should be moderately considered while making
strategies to attract the customers.

4.3 Statistical Test (s) Performed

4.3.1 Pearson’s Correlation

Pearson’s correlation coefficient is the test statistics that measures the statistical
relationship, or association, between two continuous variables. It is known as the best
method of measuring the association between variables of interest because it is based on
the method of covariance. It gives information about the magnitude of the association, or
correlation, as well as the direction of the relationship.

The Pearson’s correlation analysis between revisit intention and other independent
variables is summarized on the following table 4-15

52
Table 4-15: Correlation coefficient of customer revisit intention in restarant.

Online
food
Revisit Food ordering
Intention Menu Price taste system Ambience Location

Revisit Pearson 1 .371* .535** .408** .252* .264* .258*

Intention Correlation

Sig. (2- .013 .000 .000 .027 .022 .025

tailed)

N 75 75 75 75 75 75 75

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

Above table shows that there is a positive correlation between revisit intention and price.
The Pearson correlation value is 0.535 and is significant at 0.01 level. Therefore, price
has 53.2% relationship with revisit intention. Price has the highest Pearson correlation in
comparison to others variables. It is seen that more the customers find the price of the
food and service appropriate more will be the chances of them visiting again.

Food taste has a positive correlation with revisit intention showing that better food taste
would increase the number of customer revisiting a restaurant. The Pearson correlation
value is 0.408 and is significant at 0.01 level. Therefore, food taste has 40.08%
relationship with revisit intention.

There is a positive correlation between menu and customer revisit intention. It means
higher the customers are satisfied with the menu of the restaurant higher would be the
number of customers revisiting the restaurant. The Pearson correlation value is 0.371 and
is significant at 0.05 level. Therefore ambience has 26.5% relationship with revisit
intention.

53
There is a positive correlation between ambience and customer revisit intention. It means
higher the customers prefer the ambience higher would be the number of customers
revisiting the restaurant. The Pearson correlation value is 0.265 and is significant at 0.05
level. Therefore ambience has 26.5% relationship with revisit intention.

The table also shows that there is a positive relationship between location and revisit
intention. It means higher the preference towards a particular location higher would be
the customer revisit in restaurants situated at that location. The Pearson correlation value
is 0.258 and is significant at 0.05 level. Therefore, location has 25.8% relationship with
revisit intention.

Menu also has a positive correlation with the revisit intention, however it is found to have
less significance relation in comparison to other factors. The Pearson correlation value
for menu and revisit intention is 0.195. Therefore menu has only 19.5% relation with
revisit intention of the customers.

Similarly online food ordering system has a positive correlation with revisit intention as
the Pearson correlation value is .252. It means that even though having a proper online
food ordering system might ensure higher of customers visiting the restaurant time and
again. It can be clearly seen that online food ordering system has only 25.2% relationship
with the revisit intention. Among all the six variables this one has the lowest correlation
with the dependent variable.

54
 CHAPTER V

SUMMARY AND CONCLUSION

The final part of this report is divided into three distinct sections. In the initial part of the
report, the overall summary and the findings of the study are discussed based on the
results obtained in the previous chapter. Second section of the chapter comprises the
conclusion of the study, and finally in third section the recommendation being made
based on the judgments and study is discussed. The aim of this chapter is to present the
conclusions drawn from the results of the analysis of the questionnaires, interviews and
focus group discussions and then make recommendations for further research.

5.1 Summary of Findings

This study is conducted to find out the factors influencing the customer revisit intention
in Nepalese restaurants around Jhamsikhel area. For this research to be more reliable and
executed quantitative method of data collection is used to collect the data, where the
researcher was firmly based on descriptive and causal research design. The respondents
for the study were the customers who visited the selected five Nepalese restaurants. Five
Nepalese restaurants situated at Jhamsikhel area were selected randomly for the study.
The restaurants selected are; Sana Restaurant, Achaar Ghar - House of Pickles, Mustang
Thakali Kitchen, The Village Café, Jimbu Thakali by Capital Grill. A total of 75 samples
were taken from the customers of these restaurants, and to make the data more reliable 15
responses from each of these five restaurants were taken for the study. The present
research was conducted in descriptive way with casual comparative research design and
the data was collected by survey through visiting the restaurants where a set of
questionnaires was prepared. In the first section of the questionnaire, question related to
the demographic information and personal information was included while in the second
section of the questionnaire statements to find out the behavioral aspects of respondents
were included. Likert scale questionnaire were used in the second section of the
questionnaire. All the data generated through survey were arranged and recorded in excel
sheet to make the analysis easier and more reliable. The data collected from the survey

55
was later coded, analyzed, presented, and integrated in order to produce the result or of
the research study.

The study revealed that 43% percent of the respondents are of age group 16-25, 36
percent are from the age group 26-35, 13 percent are from 36-45 age group and 8 percent
of the respondents are from the age group 46 and above. The study revealed that about
that 37% of the respondents are females, while the 51% are males. Most of the students
47% have formal education of bachelors’ degree, followed by masters and above with
37%, +2 with 12 percent and the lowest were of up to SEE with 4 percent. 51% of the
respondents are unmarried and 49%of them are married. 25 percent respondent ware self
employed, followed by student being 24 percent, business professional 23 percent , others
16 percent and unemployed was lowest with 12 percent. Among all the respondents 55
percent have income of “below Rs 40000”, 19 percent of the respondent didn’t mentioned
their income, similarly 11 percent of them have income of Rs 80,000- Rs 120,000, 9
percent of the customers have income of Rs 120,000 and above and about 7 percent of
the customers have the income of Rs 40,000-Rs 80,000.In our finding we also came to
know that 36% of the respondents visit restaurants at least once in a month, likewise 25%
of them visit restaurant once in a year, 24 percent of them visit the restaurant at least once
in six months, 9 percent of the respondent visit the restaurant once or twice every week
and only 5 percent of them visit the restaurants once or twice every two weeks.

Among the five selected Nepalese restaurants, 42 respondents have visited Jimbu Thakali
by Capital Grill, 24 have visited Mustang Thakali Kitchen, 23 have visited The Village
Café, 20 have visited Achaar Ghar - House of Pickles and 15 respondents have visited
Sana Restaurant. It is found that 53 percent of respondents have revisited any of the five
restaurants before whereas 47 percent of them are first time visitors. From the study it is
seen that 28% of the respondents visit restaurant to enjoy the cuisine, 21% visit for
hangouts with friends and family, 20% visit for formal and informal meetings, 19% visit
to celebrate life events, and 12% visit to avoid cooking at home. It is also observed that
price, food taste, menu, ambience, location and online food ordering system are the
factors that customer consider before revisiting the restaurant in cumulative order.

56
The result of the study shows that various factors influence customers to revisit a
Nepalese restaurant. Customers consider these various factors in many aspects before
whether to visit the restaurant or not. Among the six variables selected some of the
factors influence customer to revisit greatly while others factors have lower influence on
the decision to revisit the restaurants. The most important factor influencing customers
revisit intention is “price” followed by “Food Taste”, “menu”, “ambience”, “location”
and “online food ordering system”. With the results obtained from correlation analysis it
was concluded that all the factors influence the customer revisit intention, among these
factor price has stronger impact as compared to others factors. While online food
ordering system has the least influence in the revisit decision of the customer.

The correlation between price and revisit intention is the highest among all, which tells
that the more customer are satisfied with the priced charged by the restaurant for the food
and services higher will be the chances of them revisiting that particular restaurants. So if
the customer are charged reasonable price by the restaurants, it is more likely that they
revisit that restaurant. There is positive correlation between food taste and revisit
intention. It means that higher if the customers like the food taste, it influences them to
revisit the restaurant time and again. There is a positive correlation between revisit
intention and menu. Menu has a positive correlation with revisit intention showing that
higher the variety, availability of food options in the restaurant higher would be revisit
intention. There is a positive correlation between revisit intention and ambience. It means
better the ambience; cleanliness of the restaurant higher would be the chances of
customers revisiting the restaurant time and again. There is a positive relationship
between location and revisit intention. It means good location helps the restaurant owners
to attract more customers to revisit a particular restaurant. There is a positive correlation
between online food ordering system and revisit intention. It means that better the online
food ordering system greater would be the likelihood of customer revisiting. So the most
important finding from this research is that; price and food taste influences revisit
intention most followed by menu, ambience and location. While online food ordering
system has least influence in the revisit intention of customers.

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5.2 Conclusions

In today’s competitive era, the restaurant business success depends on its ability to satisfy
the customer and retain them. The main factors price, food taste, menu, ambience,
location and online food ordering system are used in this research to measure main
factors influencing customer revisit intention. This research intends to describe and
analyze the factors that influence the revisit intention of customers in Nepalese
restaurants. The purpose of this research report is to make analysis on customer revisit
intention towards Nepalese restaurant considering age, marital status, income, education
and occupation. The results of the report clearly states how the customers’ intention is
influenced for revisiting a particular restaurant.

The finding of the study presents that price, food taste, menu, ambience, location and
online food ordering system influences the revisit intention of customers towards
Nepalese restaurant. Among these variable price and food taste has a significant impact
on the revisit intention of the customers. Menu, ambience, location and online food
ordering system also impact the revisit intention. But online food ordering system has the
least impact as compared to other variables. Among the age group of 26-35 are most
influenced by the food taste and price to revisit the restaurant. The revisit intention of the
customer is influenced by fresh, hygienic and aromatic food, and the presentation,
temperature of the food also needs to be perfect to make the customers revisit the
restaurant. As food taste is found to have highest influence in the revisit intention the
restaurants should focus on these factor most. The price factors that included service
charge, VAT, discount and promotion also attracts more number of customer to revisit ,
so if the Nepalese restaurants focus on this factor they will be able to attract more
customers. The customers are less likely to be influenced by the delivery services
provided by the restaurant, reservation system and presence of e-payment system. These
factors should be considered by the restaurant owners but less in comparison to food taste
and price.

It is observed that unmarried male who are self employed are more influenced by price
and food taste to revisit the restaurant. The customers that have income level less than Rs
40,000 and have completed bachelors degree find price, food taste, menu to influence

58
their revisit most. Similarly among all the respondents most of them visit restaurant to
enjoy the cuisine, for hangouts with friends and family and for formal and informal
meetings. So it can be concluded that in order to attract and retain more customers the
Nepalese restaurant should focus on price and food taste most followed by menu,
ambience, location and online food ordering system.

5.3 Recommendations

During this research several factors influencing customer revisit intention has been
discussed and identified. On the basis of the study made certain recommendation can be
made about the study to the studies to be carried out in future , recommendation can be
made to the restaurant owners about their services, foods and other factors that will help
them to increase the number of new customer and help to retain the existing customers.
The recommendation for this research is highlighted below:

As per this research individual who has income less than Rs 40,000 are the ones who visit
these kinds of restaurant more therefore appropriate strategies to meet their requirements
should be made. Economic menu, with appropriate price should be set so that larger
number of customer will be influenced to revisit the restaurant more often. According to
the study price and food taste influence most to increase the repeat visiting so the
restaurant should firstly focus on these factors. As male populations who are unmarried
mostly visit these restaurants, the restaurant should make schemes to retain more of these
people. Similarly the restaurant layout should be made appropriate for enjoying the
cuisine, hangouts and also for the formal and informal meetings as more people have
stated it to be the reason for revisiting the restaurant.

The price of the food and services should be set considering the service charge, VAT so
that it will be appropriate towards the target customers. Similarly the restaurant if provide
scheme of discounts and offers for their regular customers it will highly influence their
decision to revisit the restaurant. The taste related factor like freshness, hygiene,
temperature and presentation of the food should be given special focus as it is seen to
influence the customer revisit most. Food taste needs to be in such state that it encourages
the customer to recommend it to their friends, family and visit the restaurant again. The

59
restaurant owner should have clear idea about the target group they are serving and make
strategies appropriate to attract and retain them.

This study concentrated on only six factors that influence the customer revisit intention,
studies considering other factors triggering the revisit intention can be done. This study
only focused on the Nepalese restaurants operating around Jhamsikhel area, further
studies can be done in restaurant serving various cuisines like Chinese, Korean, Indian,
etc. wider area of study also can be taken into consideration for other studies. Although
this data collection method is budget friendly, detailed comments from the respondents
could be hardly obtained. Future study is recommended to co-operate with revisit
intention to directly approach the respondents during data collection. Future research is
encouraged to test the conceptual model developed in this study across the different
restaurants in the other areas or countries. More variables like such as brand image,
satisfaction, involvement, and customer loyalty can be included in other study. This study
is conducted at any Nepalese restaurants and the researchers did not have any specific
requirements whether the restaurants are from the high end or from the lower end groups.
Hence, future study may focus on specific criteria and preferably among restaurants in
the high end category. These limitations are being identified, but they do not diminish the
significance of the findings obtained from the study.

60
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 APPENDIX A

Questionnaire--- Factors influencing customer revisit intention

Dear Respondents,

I am Bilop Dev Karki, an MBA student of South Asian Institute of Management, Pokhara
University. As part of the academic requirement of the University, I am conducting the
research entitled “Factors Influencing Customer Revisit Intention in Nepalese Restaurant
Around Jhamsikhel Area” which is purely an academic research. Information provided by
you will be kept confidential and would be used purely for academic purpose only. I
request for your support by responding the given questions fairly. Thank you!

1. Age*

☐16-25 ☐26-35 ☐36-45 ☐46 and above

2. Gender*
☐Male ☐Female

3. Education *
☐SEE ☐+2 ☐ Bachelor ☐Master and above

4. Marital Status *
☐ Married ☐ Single

5. Occupation *
☐ Student
☐ Self-employed/ business owner

☐ Unemployed

☐ Business Professional

☐ Others

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6. Income
☐ Below Rs. 40,000 ☐ Rs.40, 000 to Rs. 80,000

☐ Rs.80, 000 to Rs. 120,000 ☐ Rs. 120,000 and above

7. How often do you visit Nepalese Restaurant around Jhamsikhel?*

☐One or two times every week

☐ One or two times every two weeks

☐ At least once in a month

☐Once in a six month

☐Once in a year

8. Which of the following restaurant have you visited? (can select multiple)*

☐Sana Restaurant,

☐Achaar Ghar,- House of pickles

☐Mustang Thakali Kitchen,

☐The Village Café,

☐ Jimbu Thakali by Capital Grill

9. Have you visited these restaurants more than once?*

☐ Yes ☐No

10. For what purpose do you visit the restaurant mostly? *

☐ To enjoy the cuisine
☐ To celebrate life events

☐ For formal and informal meetings

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☐ For hangouts with friends and family

☐ To avoid cooking

11. Would you consider these factors before revisiting the restaurant?*

Factors influencing revisit intention Yes No

Menu
Price
Food Taste
Online Food Ordering system
Ambience
Location

15. How far do you agree/disagree with the following statements related to customer
revisit intention? (Please make a tick mark at the appropriate number as per following
scheme) *

Reasons for revisiting the restaurant

Strongly agree Neutral disagree Strongly
agree disagree
Revisit Intention
I revisit the restaurant that suits my
food preference.
I revisit the restaurant that satisfies my
need.
I prefer not to revisit a restaurant that I
wasn’t satisfied with before.
Menu
I like to visit the restaurant that

66
provides different variety of foods.
I decide not to visit the restaurant if
there is lack of food alternative.
The design and sequence of items in
the menu influences my visit.
Price
I revisit the restaurant because it
charges a fair price.
Extra service charge/VAT discourages
me to revisit the restaurant.
Discount/ offers offered influence me
to revisit the place.
Strongly agree Neutral disagree Strongly
agree disagree
Food Taste
Taste of the food influence my visit.
Fresh, hygienic and aromatic food is
what I prefer while choosing a
restaurant.
The presentation and temperature of
the food also affects my preferences.
Online Food Ordering System
I visit a restaurant because it delivers
food at my place if required.
I prefer the restaurant that has online
menu, online reservation system.
Presence on online food delivery
websites and e-payment system
influence my visit to a restaurant.
Ambience

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I tend to visit restaurant that has
beautiful decoration and layout
I choose to visit the place with proper
lighting and good music.
I consider Cleanliness of the place as
an
important factor while visiting a
restaurant
Location
I prefer to visit the place that is easily
assessable.
I choose to go to the restaurant that
has enough parking spaces.
I prefer to visit a place where there are
many other restaurants nearby.

Thank you for your time and participation.

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