International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Issue 2, February 2014)
A Study of Investigating the Relationship between Consumer
Satisfaction and Operations Strategies of Campus Restaurants
by Using Dynamic Simulation
Pin-Chang Chen1
1
Assistant Professor, Department of Information Management, Yu Da University of Science and Technology, Maioli, Taiwan
Abstract— This study conducts dynamic simulation by
using System Dynamics Theory and Vensim software which
investigates the relationship between consumer satisfaction
and operations strategies of campus restaurants. This study
simulates the effects of four priorities including service
quality, profits of restaurants, turnover rate of restaurant
stands and consumer satisfaction which affect the operations
strategies of campus restaurants. The results of strategic
situational simulation proposed by this study demonstrate
that good operations strategies of campus restaurants along
with employees’ educational training, consumers’ dining
needs and word-of-mouth communications should be properly
adjusted in order to increase service quality, future profits of
restaurants, lower turnover rate of restaurant stands as well
as increase consumer satisfaction.
Keywords— Campus Restaurant, Consumer Satisfaction,
Dynamic Simulation, Operations Strategy, System Dynamics.
I. INTRODUCTION
Nowadays, profit or non-profit business should pay
attention to consumer satisfaction with the rise of
consumption consciousness [1]. Campus restaurants are
important dining places for schools’ faculty and students.
With the concern of dining convenience for the faculty and
students, schools used to select excellent suppliers to
construct restaurant stands on campus by bidding and
outsourcing. However, according to the related researches
and studies, it is usual to find that turnover rate of school
restaurant stands is high and the consumption is low.
Schools should maintain the service quality with the
concern of health and food safety for teachers and students
[2]. Therefore, campus restaurants encounter severe
operational conditions and limitations different from off-
campus commercial restaurants and their operations are
challenging. How to solve the problems of operations and
management of campus restaurants in order to increase
consumer satisfaction is the motivation of this study [3].
By using System Dynamics Theory and Vensim
software, this study conducts dynamic simulation which
investigates the relationship between consumer satisfaction
and operations strategies of campus restaurants.
24
This study simulates the effects of four priorities
including service quality, profits of restaurants, turnover
rate of restaurant stands and consumer satisfaction which
affect the operations strategies of campus restaurants. It is
intended to provide effective and feasible suggestions for
future operations and management of campus restaurants.
II. LITERATURE REVIEW
A. Consumer Satisfaction
In the field of operations management, Drucker was the
first scholar who proposed the concept of consumer
satisfaction in 1954. He suggested that the most important
purpose is to create consumers instead of totally pursue
profits in economy and operation beliefs. Enterprises are
part of society and they should contribute to society after
acquiring social resources. They will be eliminated by
society if they only focus on profits [4].
Huang et al. suggested that consumer satisfaction is
reduced by dissatisfying consumption experience [5].
Ferguson and Johnston indicated that customers’
dissatisfied consumption behaviour will result in the firms’
enormous loss of profits. Consumers will no longer
purchase their goods [6]. Fisher et al. and Lee et al.
confirmed the positive correlation between high consumer
satisfaction and positive operational performance [7]. In
summary, these literatures demonstrate the importance of
consumer satisfaction for operational performance of
enterprises.
B. System Dynamics
System Dynamics is the research method to study and
manage complicated feedback system. The research
method emphasizes the concern on total situation. It
thoroughly analyses interaction among all variables in the
system. By computer simulation, it shows how system
structure, variables, policy and time delay influence system
development [8]. System Dynamics does not simply predict
and analyse trend. It profoundly considers the structure of
complicated problems, recognizes the essence of change
and basic mechanism of the whole system in dynamic
operation [9].
 International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Issue 2, February 2014)
System Dynamics is a computer simulation model
proposed by Forrester in 1956. Forrester suggested that
System Dynamics is not only the science to establish model,
but also the method to view the world. It is the tool to
observe dynamic structure with change of time [10]. Coyle
suggested that positive and negative causal chains among
factors in the system are the most important. By positive
and negative feedback circuit, it develops endogenous and
extraneous variables in the system. They are shown by
simple diagram and it helps comprehend dynamic
complicated phenomenon [11]. Sterman emphasized that
System Dynamics modelling is a kind of iterative process.
It constructs dynamic hypothesis by selection of system
boundary to establish System Dynamics simulation model,
validation, policy design and evaluation [12].
Based on the literatures, System Dynamics has
advantage in dynamic simulation. It is widely applied in
different fields and the conclusions match the reality. This
study adopts System Dynamics to conduct dynamic
simulation on consumer satisfaction, operations strategies
of campus restaurants, and interaction among the
conditions. Simulation results shall serve as references and
suggestions for campus restaurant managers in order to
lower turnover rate of restaurant stands, enhance
customers’ consumption intention and increase the
suppliers’ profits.
III. METHODOLOGY
By using Vensim software, this study conducts dynamic
simulation on consumer satisfaction, operations strategies
of campus restaurants, and interaction among the
conditions. This study treats related variables as Causal
Feedback Loop Diagram and then includes related causal
variables in Stock-Flow Diagram to establish system
dynamic model.
Causal Feedback Loop Diagram is shown in Figure 1.
Figure 1 Causal Feedback Loop Diagram
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When restaurants have good operations strategies, they
particularly concern about employees’ educational training.
By providing professional employees’ educational training,
they shall enhance overall service quality. Through high-
quality service quality, they would enhance consumer
satisfaction to increase the average amounts of
consumptions and comeback frequency. However, it means
that service manpower should be increased and operational
cost will be higher at the same time.
Based on Causal Feedback Loop Diagram mentioned
above, this study develops Stock-Flow Diagram as shown
in Figure 2.
Figure 2 Stock-Flow Diagram
Good operations strategies should satisfy consumers’
dining needs in order to avoid consumer dissatisfaction. In
addition, when consumer dissatisfaction is lowered, it
means that consumer satisfaction increases. Restaurants
increase business incomes and profits by word-of-mouth
communications through increase of consumer satisfaction.
Rich profits will reduce turnover rate of restaurant stands.
That it, rich profits can be referred to good operations
strategies.
IV. SIMULATION RESULTS
This study launches the different operations strategies
for dynamic simulation. According to the dynamic model
proposed by this study, it observes the effects of four
priorities including service quality, profits of restaurants,
turnover rate of restaurant stands and consumer satisfaction
which affect the operations strategies of campus restaurants.
By setting campus restaurants’ operations strategies as
good (90%), normal (60%) and bad (30%), this study
conducts dynamic simulation for a period of 36 months. It
adjusts operations strategies and compares the priorities of
operations in campus restaurants, such as service quality,
profits of restaurants, turnover rate of restaurant stands and
consumer satisfaction, to prove that operations strategies
and consumer satisfaction are closely associated with future
operational development of campus restaurants.
 International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Issue 2, February 2014)
In Strategic Situation 1, this study sets good operations %
strategies (90%), employees’ educational training (80%),
consumers’ dining needs (80%) and word-of-mouth
communications (80%) for dynamic simulation, as shown
in Figure 3.
%

Month
Service Quality
Profits of Restaurants
Turnover Rate of Restaurant Stands
Operations Strategies
Consumer Satisfaction
Figure 4 Effect of Normal Operations Strategies on Future
Month Operations of Campus Restaurants
Service Quality
Profits of Restaurants As shown in Figure 4, if campus restaurants do not apply
Turnover Rate of Restaurant Stands
Operations Strategies the operations strategies as Strategic Situation 1, service
Consumer Satisfaction quality will only increase up to 60% in 36 months.
Consumer satisfaction slowly grows to 50% and profits of
Figure 3 Effect of Good Operations Strategies on Future Operations
of Campus Restaurants
restaurants are only 38% at top. Besides, turnover rate of
restaurant stands reach 20% in the 14th month by the effect
As shown in Figure 3, at the early implementation of of low profits. Therefore, the Strategic Situation 2 is
operations strategies, consumer satisfaction is only 50%. negative for sustainable operations of campus restaurants.
However, with the increase of operational time and strict In Strategic Situation 3, this study sets bad operations
educational training, service quality and consumer strategies (30%), employees’ educational training (80%),
satisfaction increases to at least 95%. In addition, profits of consumers’ dining needs (80%) and word-of-mouth
restaurants upgrade from 10% at the beginning to 60% in communications (80%) for dynamic simulation, as shown
the 36th month. It is increased by six times. Nevertheless, in Figure 5.
effectiveness of operations strategies will appear after a
period of time. Some restaurants are forced to close the %
business due to lack of funds. The turnover rate of
restaurant stands is 11% in the 12th month. Restaurants
with sufficient funds and well educational training are able
to continue the operations and the turnover rate is almost
0%. Therefore, campus restaurants should not only have
good operations strategies, but also prepare sufficient funds
and pay attention to consumer satisfaction for sustainable
operations in the Strategic Situation 1.
In Strategic Situation 2, this study sets normal operations
strategies (60%), employees’ educational training (80%),
Month
consumers’ dining needs (80%) and word-of-mouth Service Quality
communications (80%) for dynamic simulation, as shown Profits of Restaurants
in Figure 4. Turnover Rate of Restaurant Stands
Operations Strategies
Consumer Satisfaction
Figure 5 Effect of Bad Operations Strategies on Future Operations of
Campus Restaurants

26
 International Journal of Emerging Technology and Advanced Engineering
Website: www.ijetae.com (ISSN 2250-2459, ISO 9001:2008 Certified Journal, Volume 4, Issue 2, February 2014)
As shown in Figure 5, employees are active with
positive enthusiasm at the early implementation of
operations strategies. Service quality and consumer
satisfaction grow slightly in the beginning. However, after
a period of time, consumer satisfaction is significantly
reduced in the 6th month since the operations strategies are
not properly modified and executed. Profits of restaurants
considerably drop in the 10th month. The turnover rate of
restaurant stands keeps increasing month by month. Hence,
if operations strategies are not properly modified according
to consumer satisfaction, the restaurants might even go out
of business. That is, the operations strategies are not
feasible in the Strategic Situation 3.
Based on the strategic simulation results, good
operations strategies of campus restaurants should be
applied along with employees’ educational training,
consumers’ dining needs and word-of-mouth
communications. They are able to increase service quality,
future profits of restaurants, lower turnover rate of
restaurant stands as well as increase consumer satisfaction.
V. CONCLUSION
Students are important group among out-dining
population. They concern about diversity of meals although
dining options are few on campus. In recent years, number
of students in universities and colleges is lowered
considerably due to the low birth rate and low attendance
rate. It means that campus restaurants will encounter more
severe challenge in operations and management.
According to the findings of this study, campus
restaurants should satisfy consumers’ dining needs by
providing quality service and increasing consumer
satisfaction for the concern of sustainable operations. In
addition, campus restaurants are able to increase consumer
satisfaction and brand loyalty through consumers’ word-of-
mouth communications. As a result, this study
demonstrates that operations strategies are the key factors
of successful operations of campus restaurants. It should be
reviewed all the times and properly adjusted according to
consumer satisfaction.
27
This study conducts dynamic simulation by using
System Dynamics Theory and Vensim software which
investigates the relationship between consumer satisfaction
and operations strategies of campus restaurants. It is
expected to serve as references and suggestions for future
researchers’ studies on practical operations strategies of
campus restaurants.
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