HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

- INFORMATION TECHNOLOGY

FACULTY OF BUSINESS ADMINISTRATION

---------***--------

BUSINESS RESEARCH

Topic: Customer loyalty in the fast food restaurant

Student’s name:
Nguyen Ngoc Phuong Khanh 21DH123158
Doan Ngoc Kim 21DH123174
Instructor: Tran Thien Phuc

HCM, 12/2022
1. Introduction
Customers' opinions of a brand's worth are crucial to maintaining that brand's loyal following.
Value-based service and food offers are essential to building customer loyalty, which is why
this is so crucial in a service factory like a fast food restaurant (Baker & Wakefield, 2011;
Yusta et al., 2018). Jani and Han (2015) found that consumers are more likely to return to a
business if they are satisfied with the food and service, the price, and the ambience. Managers
and owners of restaurants place a premium on repeat business from satisfied patrons
(Espinosa et al., 2018). Restaurants may enhance their earnings, get new regulars, and cut
down on their promotional and advertising costs if they focus on keeping their current
clientele happy.
According to the World Bank's "Ease of Doing Business" report for 2018, Vietnam placed
69th out of 190 economies. In 2022, Vietnam's big population would bring in VND 4.67
million per person per month at current rates, up 11.1% from 2021. In 2022, the food and
beverage market is expected to generate almost VND 610,000 billion in sales, an increase of
39% from the previous year. Revenue from food and beverage services is highly fragmented
throughout the United States in 2022. In particular, independent eateries like restaurants and
bars account for 95% of revenue, while fast food franchises take up the remaining 5%. After
the Lunar New Year, the food and beverage industry often experiences rapid expansion, with
Q2 and Q3 of 2012 posting growth rates of 120% and 128%, respectively, compared to Q1 of
2012. The fourth quarter, however, expanded at a slower 117% compared to the same time
frame several years earlier. in which the fast food industry is booming and spreading over the
world. iPOS.vn estimates that there will be 338,600 restaurants and cafes in Vietnam by the
end of 2022. Of these, 39.78% will be located in Ho Chi Minh City, making it three times
larger than the second biggest city, Hanoi. In 2022, the food and beverage sector in Vietnam
is projected to bring in VND 610 trillion in revenue. The outdoor eating industry accounts for
VND 333.69 trillion of this total. As the demand for fast food in Vietnam continues to rise, a
number of franchises catering to this sector have opened. KFC, Lotteria, McDonald's, and
Burger King are just few of the international fast food brands that have been operating in
Vietnam since the 1990s. Profitability in the fast food restaurant industry is high in Vietnam.
This company is difficult to understand since it offers both items and services to its clientele.
Restaurant operators now place a premium on client loyalty because of its quantitative effect
on bottom line results. To far, there hasn't been much study done in Vietnam on the topic of
customer loyalty in the fast food restaurant sector. With this research, we want to learn what
influences consumer satisfaction and how that satisfaction acts as a mediator between other
characteristics and customer loyalty. Businesses that use a customer relationship management
strategy value client loyalty highly. According to marketing academics, company managers,
and consultants (Keiningham et al., 2007), customer loyalty is one of the most important and
timely topics of study in the world of business management. Loyal clients are more likely to
buy from a company again. Businesses may gain an important competitive advantage by
establishing and nurturing consumer loyalty. It is significantly more cost-effective for
businesses to focus on keeping their present clientele than on finding new ones to replace the
ones they've lost (Gee et al., 2008). Because of these characteristics, businesses in a
competitive market that values public service tend to concentrate on keeping their current
clientele rather than trying to win over new ones. Knowing what elements clients consider
when making a restaurant choice is essential for success in the restaurant business (El-Adly &

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Eid, 2016). Customers think about things like food and drink variety and service quality
while choosing a restaurant. Because of this need, fast food establishments often provide
combo meals that include with beverages(Shamah et al., 2018). The success of a restaurant
depends on knowing what makes diners happy and keeps them coming back. This study's
overarching goal is to enrich our knowledge of customer loyalty in fast food settings. The
first part of the report will focus on consumer loyalty in the fast food business, providing
insight that will be useful to managers and academics alike. It will explain the meaning of
customer satisfaction and how it might affect repeat business. The theoretical and applied
uses of consumer behaviour evaluation may not be fully realised without a firm
understanding of the components that lead to satisfaction and its function in promoting
loyalty. Finally, it will stress the importance of client loyalty, the ultimate goal of a service-
oriented business like a fast food restaurant. The primary goal of this research was to identify
the elements of the fast food restaurant industry in Vietnam that most strongly correlate with
customer loyalty. The particular goals include looking at how things like fast food quality,
cost, location, and service affect customers' overall experiences.
2. Literature review
Customer loyalty in fast food restaurants. The fast food restaurant industry is a rapidly
growing and complex nature of business in all over the world. Vietnam is a developing and an
overpopulated country where many people go to fast food restaurants regularly and
occasionally. Building a relationship with the customer and providing quality service are
essential in the restaurant industry (Uddin, 2019). Services are intangible, they cannot be
measured and counted. Food is delivered in restaurants. Speed in delivery and reliability in
delivery are related to food services. Customer feelings, perceptions, and expectations are
more important for having loyal customers in the fast food restaurant industry. Tangible and
intangible factors are essential for customer loyalty. Food category or range of food and
quality of service are imperative antecedents for restaurant choice and customer loyalty
(Han et al., 2018; Uddin, 2019)

Loyal customers bring enormous advantages to every firm, such as allowing for a continuous
profit stream and reduction of marketing/promotion costs (Han & Hyun, 2018) . According
to (Meesala & Paul, 2018) , customer loyalty can be measured by using some items, such as
the intention to buy more products, prefers to buy that product compared to the competitor
and the willingness to recommend the product to other potential customers. Customer
satisfaction is the most significant variable than other variables in case of customer loyalty,
especially for service providing factory such as a restaurant. In the restaurant industry,
increasing the perceived value contributes to the customer’s pleasant experience resulting in
an increased level of satisfaction. An increased level of satisfaction, in turn, ensures customer
loyalty. (Ali et al., 2018; Uddin, 2019). Understanding what creates values for the customer in
the restaurant industry is an important research topic to be conducted. Market research should
be undertaken to identify the specific factors that reate benefits and pleasurable environment
for the customer in a restaurant. (Uddin, 2019)
Food quality. When something is suitable for use, we refer to its quality, and if it is suitable
for eating, we can refer to the food as being of a high standard. Food quality is influenced by
menu variety, flavor, freshness, temperature, healthy selections, and nutritional value.
Authenticity and food quality are closely related. Food authenticity is related to the source of

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valuable foods that exhibit unique features, whereas the goal of food quality is able to ensure
the right organoleptic and valued aspects of the product
(Montero & Herrero, 2019; Uddin, 2019)

Price. Price refers to the amount paid by the customer to the seller for a product or service.
Consumer perception of price is influenced by factors like the price level, fairness, value,
perceptibility, advertising, special offers, and promotions, which ultimately affect their
satisfaction levels. The price of a product or service can depend on its production or delivery
costs, as well as on market factors such as supply, demand, and competition. (Uddin, 2019)
Location and Enviroment. Customers' perception of the atmosphere's quality defines the
restaurant's environment. These perceptions can vary based on factors such as age, gender,
and consumption orientation (individual vs. social). Enhanced sales and consumer spending
in restaurants can be attributed to an easily accessible location and an attractive environment.
Service quality. Service quality refers to the level of excellence or superiority of the services
provided to customers by a business or organization. It is typically evaluated based on factors
such as the efficiency, effectiveness, and professionalism of the service provider, as well as
the overall satisfaction of the customer. Service quality can be measured through tools such
as customer surveys, service audits, or performance indicators like response times and error
rates. Providing high service quality is essential for building customer loyalty, increasing
customer satisfaction, and creating a positive brand image for the business.

(Han et al., 2018; Uddin, 2019).

Customer satisfaction. In simple terms, customer satisfaction is the evaluation a customer

makes about the perceived differences between the actual value received and previously
expected value after consuming a product or service. In the restaurant industry, customer
satisfaction can be measured through the evaluation of direct consumption experiences. This
is achieved by comparing the actual performance of the food and beverage to the expectations
a customer had prior to trying them out. Supplementary materials such as research studies
and review websites suggest that factors like menus, marketing and quality of service can
also have an impact on customer satisfaction in restaurants.
(Shamah et al., 2018; Uddin, 2019). Murambi

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Customer loyalty. To put it simply, loyalty means continuously purchasing a product or
service from the same brand despite other options available in the market. It can be seen as a
strong commitment from the customer toward the brand or brand series. Even in a
competitive market or when environmental issues arise, the loyal customer prefers to buy the
same brand or brand series. (Han et al., 2018; Uddin, 2019)
3. Hypotheses development
Relationship between food quality and customer satisfaction. In the context of restaurants,
food quality is considered by customers to be one of the most important factors. According to
(Ramanathan et al., 2016) , the quality of food is the main factor that influences customer
satisfaction, followed by price, ambience, and service in that order. Additionally, food quality
is widely recognized as a major factor that influences customer satisfaction and the likelihood
of repeat business (Shahzadi et al., 2018) . (Njite et al., 2015) found that food quality is
positively related to both customer loyalty and willingness-to-pay in restaurants. Food quality
can be affected by various factors such as physical, compositional and microbial features,
technological processes, storage, nutritional value, and safety (Trimigno et al., 2015) .
Presentation is also an important factor in enhancing customers' dining experience, as the
visual layout of a dish can significantly affect the way customers perceive the taste of the
ingredients (Shahzadi et al., 2018) . The most widely acknowledged measurements of food
quality are food freshness, portion size, food presentation, menu variety, food taste, and food
temperature. Among these attributes, taste, presentation, and temperature are significant
predictors of customer satisfaction, while taste, presentation, and healthy options predict post-
dining behavior (Shahzadi et al., 2018) . Additionally, food safety is an important factor in
evaluating the quality of food, as customers tend to have more positive attitudes and are
willing to pay more for restaurants with higher food safety standards (Lin & Wu, 2016) .
Therefore, we propose the following hypothesis:
H1. Quality of food has a positive impact on customer satisfaction of a fast food restaurant
Relationship between price and customer satisfaction. The price of a product or service can
affect how satisfied or dissatisfied customers are with it (Kotler & Keller, 2016). Factors like
value for money, price fairness, special offers, and discounted prices can impact customer
satisfaction. If a restaurant's prices are high compared to the perceived value, customers may
be dissatisfied. (Konuk, 2015; Uddin, 2019) Many customers are price-sensitive, and various
price levels can influence their satisfaction. In an increasingly competitive online market,
customers often compare prices before making purchases, which can pose challenges for
sellers (Lee & Jeon, 2016; , 2013) . Immediate reactions to pricing changes can have
significant effects on customers' loyalty. While external factors may cause price increases,

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restaurant managers should prioritize customer satisfaction (Uddin, 2019). Thus, the following
hypothesis can be posited:
H2. Price has positive influences on customer satisfaction of fast food restaurant.
Relationship between location and environment and customer satisfaction. The topic of
"customer satisfaction" has received significant attention within the marketing field,
particularly in regards to customer relationship management
(Chebat et al., 2014; Kwon et al., 2015; Sands et al., 2015)
. If a customer is satisfied, there are a variety of benefits that can
positively impact a business, such as repeat purchases, increased profits, and sustained
growth. Customer expectations and perception can be influenced by factors such as a
location's decor, layout, lighting, and color. (Kwon et al., 2015; Uddin, 2019) A favorable
location and pleasant atmosphere can significantly impact a customer's initial impression and
emotions. A restaurant that is easily accessible and creates a pleasant atmosphere is more
likely to satisfy customers and encourage them to spend more time and money at the
establishment. The selection and design of a restaurant's location and environment should be
done in a way that creates a positive impression and increases customer satisfaction.
Therefore, the following can be hypothesized:
H3. Favorable customer perception regarding restaurant location and the environment has a
positive impact on customer satisfaction.
Relationship between service quality and customer satisfaction. One's satisfaction as a
customer typically refers to their subjective feelings and assessment of a product or service
after utilization, whereas service quality is a more holistic evaluation of the quality of the
service along with the satisfaction experienced in the overall interaction
(Cole & Crompton, 2003; Famiyeh
. Positive
evaluations of service quality often result in higher levels of customer
satisfaction (Hutchinson et al., 2009) . In industries that provide services, research has shown
that there is a direct and positive correlation between perceived service quality, consumer
satisfaction, and purchase intentions
(Carranza et al., 2018; Nguyen et al., 2018; Srivastava, 2015)
. Service quality is a crucial factor in determining customer satisfaction. Customers
immediately perceive the quality of the service upon delivery and compare their experiences
to their expectations. The level of satisfaction or dissatisfaction is dependent on the gap
between the expected level of service and the perceived quality of service. Therefore, it is
widely acknowledged that the quality of the product or service offering has a significant
influence on customer satisfaction (Famiyeh et al., 2018). So, the following hypothesis can be
proposed:
H4. Quality of service has a positive impact on customer satisfaction of a fast food
restaurant.
Relationship between customer satisfaction and customer loyalty. Organizations can foster
customer loyalty by offering benefits that incentivize customers to repeatedly engage with
them, thereby increasing business and building long-term relationships
(Anderson & Jacobsen, 2000)
. Providing high-quality services strengthens an organization's reputation,
encourages customer retention, and attracts potential customers through positive word-of-
mouth and loyalty. Satisfied customers tend to maintain long-term relationships with
businesses, spend more money and time, and share positive feedback with others (Carranza et al., 2018; Espi

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 . Numerous studies have demonstrated
the link between customer satisfaction and customer loyalty, highlighting the significance of
satisfaction as a predictor for loyalty
(Ekinci & Whyatt, 2011; Han et al., 2018; ahin et al., 2011)
. Given the inherent complexity and competitiveness of the fast food restaurant industry
in Vietnam, it is worth studying the impact of customer satisfaction on loyalty within this
industry. Therefore, the following hypothesis was formulated (Figure 1):
H5. Customer satisfaction has a positive impact on customer loyalty of fast food restaurant

3.1. Research design

This study has followed the inferential research approach. This approach is crucial because it
tested empirical data, and based on the results, it drew inferences and conclusion as well on
the population of the study. The influencing factors of the loyalty of customer in the context
of the fast food restaurant industry in Bangladesh were tested in this study. The hypotheses
were developed through the review of the existing literature. A questionnaire survey was
conducted to collect data. The close-ended questionnaire was designed reviewing the existing
literature. In total, 26 measurement items (Table AI) were adopted from several studies (e.g.
Ali et al., 2018; Haghighi et al., 2012; Han et al., 2018; Kim and Ham, 2016; Raquel, 2017;
Rozekhi et al., 2016; Shamah et al., 2018). The respondents were confident that there was no
incorrect answer. Their identification would not be disclosed to others. This research might be
most effective for the researcher's academic motivesdeee
Since this research needed to gather concrete statistical results in order to draw meaningful
conclusions, quantitative data analysis was used. Numbers provide a clearer image, making
them ideal for use in crucial business decisions. Quantitative research methods are essential
for organisational improvement. Using data and research, management may make educated
decisions regarding the company's future. This approach was used on purpose in this study to
investigate potential causes and effects.
Primary data refers to information and data that has been gathered specifically for the
purposes of a research (C.R.Katharin, 2004). When using primary sources, researchers have
greater leeway to obtain data that is relevant to their subject. The questions utilised in this
research were formulated with the explicit goal of eliciting data useful for a study of e-
commerce. This will allow the author to collect data and reader opinions through polls and

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surveys on the web. The primary one may be gathered via a variety of channels, including
face-to-face conferences, in-depth phone interviews, telephone polls, and internet surveys.
The author chose to conduct the survey through online questionnaire because of its speed and
convenience for the focus group members.
Additionally, the three major techniques of study are experiments, observations, and surveys.
For primary research, for instance, questionnaires are often used (Kumar Ranjit, 2019). It's a
way to get data on a group of people as opposed to simply one individual. It's simple to fill
out, productive, and generates a lot of data quickly (Kelley et al., 2003). Because of its
relative accuracy and reliability, it may be used for research on mental states and actions.
Keeping these thoughts in mind, it's possible that we'll use the survey to compile information
for our enquiry.
3.2.Sampling method
The study's sample was selected using a non-probabilistic, judgement-based selection
strategy. Researchers choose samples for Task 1 with the goal of ensuring that they are
homogeneous in terms of a set of criteria (Taherdoost, 2016). It's utilised when someone has
been asked about their experience with a given service or product (Alchemer, 2018).
Judgement sampling is applicable for this study since it needs participants to be of the
iGeneration (those born between 1995 and 2010) and to use Internet-enabled mobile devices.
For this reason, a sample based on subjective evaluations rather than statistical likelihood was
chosen.
3.3. Sample size
The "10-times rules" (Rigdon et al., 2017) are one frequent method of sampling among many
others. For PLS-SEM analyses, the sample size should be "equal to the larger often times the
largest number of formative indicators used to measure a single construct, or ten times the
largest number of structural paths directed at a particular construct in the structural model"
(Rigdon et al., 2017). This article proposes a research methodology for boosting fast food
restaurants' recurring customers, predicated on five key assumptions. Therefore, fifty would
be the bare minimum required. This study had a sample size of 125, which is 10 times greater
than a study with a sample size of 50 that looked at the same number of participants' paths to
online purchase intent.
The Daniel Soper method is often used with random sampling. The study's sample size was
calculated with the use of methods presented by Daniel Soper (Westland, 2010), whose
research was also consulted. This method employs a simple, web-based tool supported by
academic research.. It is recommended to use a probability of 0.05 and a statistical power of
0.8, with the default estimated effect size set at 0.30. The minimum number of responses
required for statistical analysis was 92, therefore a total of 125 responses were usable.
3.4.Questionnaire
The questionnaire was divided into two sections: the first dealt with basic information about
the respondent's demographics and interests, while the second focused on the restaurant itself,
including its food quality, prices, location and environment, service quality,customer
satisfaction and customer loyalty. In order to ensure the reliability and validity of the
questionnaire, a pilot test was performed with 125 individuals who had previously eaten at

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the fast food restaurant. The first questionnaire had minor revisions before being made
available to the public. The poll was translated into Vietnamese to make sure that all
respondents understood the questions. Previous studies served as inspiration for the
questionnaire. The study's questionnaire was developed utilising two tried-and-true
instruments culled from the scholarly literature. There was a seven-point Likert scale used to
record the replies, from "strongly disagree" (point 1) to "strongly agree" (point 7).

Constructs Items References

Food quality: When we say that something has quality
because it is fit for its intended purpose,
for example, we imply that it is safe for
human consumption. The freshness,
flavour, warmth, number of calories, and
nutritional worth of a meal are all factors
in how good it is.
Delwiche(2004), Kim and Ham
92016), Kivela et al. (1999),
Mason et al. (2016), Namkung
and Jang(2007), Sulek and
Hensley (2004)

Price: Price: What the buyer hands over to the Kim et al (2006), Kim and Lee
vendor in exchange for the goods or (2010), Kotler and Keller
services is known as the price. Price (2016), Perreault and McCarthy
level, price fairness, price value, price (2000), Zielke (2008)
perceptibility, price advertising, special
offer, promotion, etc. are all aspects that
affect how customers feel about a
product's price.

Location and Customers' impressions of the ambience Baker and Wakefield (2012),
environment: are what make up the environment. Jani and Han (2015), Levy and
Customers of various ages, genders, and Weitz (2012), Ryu and Han.
consumption styles (individual vs. social) (2010), Sands et al. (2015)
form distinct groups with distinct
perspectives on this issue. A convenient
location and pleasant atmosphere both
contribute to increased restaurant
revenue.
Service The quality of a service is a reflection of Cronin and Taylor (1992), e,
quality: the buyer's or consumer's belief in the Han et al. (2018), Parasuraman
superiority of the product or service in et al. (1988), Uddin and Akhter
question. There are two models, (2012), Wu and Liang (2009)
SERVQUAL and SERVPERF, that have
been suggested to measure service
quality.

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 Customer The term "customer satisfaction" is used Caruana et al (2000), al Lin and
satisfaction: to describe a buyer's feelings after they've Wang (2006),Nam et al.
used a product or service and compared (2011). Shamah et al. (2012)
those feelings to their expectations. The
restaurant business uses post-meal
evaluations of direct consuming
experiences to gauge customer
satisfaction by contrasting actual
performance with preconceived notions
of what the dining experience should be
like.

Customer A loyal customer is one who returns to Aaker (1991) Han et al. (2018),
loyalty: buy more of a given product or service. Jacoby (1971), Oliver (1999),
When competitor corporations provide Nawaz and Usman (2011)
something or environmental difficulties
arise, loyal customers are in the position
of continuing to purchase the same brand
or brand series despite the increased
competition.

3.5. Data analysis techniques

The data was processed and analysed using Partial Least Square (PLS). PLS was an excellent
fit for our research since it has few technical requirements in terms of measurement scales,
sample size, and residual distributions (Monecke & Leisch, 2012). As shown by their study,
Hair et al., (2014) demonstrate that PLS-SEM studies have been progressively published by
researchers during the 2000s. PLS-SEM is preferable to CB-SEM when estimating complex
research models with many intermediate variables, underlying and observation variables,
especially structural models, for a number of reasons, including but not limited to the
following: (1) avoiding problems related to small sample size, non-standard non-delivery
data; (2) estimating complex research models with many intermediate variables, underlying
and observation variables, especially structural models; and (3) allowing for more flexible
model specification. This study used PLS-SEM to examine the characteristics that influence
fast food customers' loyalty. On a seven-point Likert scale ranging from "(1) Strongly
Disagree" to "(7) Strongly Agree," we asked respondents to score their degree of agreement
or disagreement with statements concerning their experiences with different kinds of
evaluation instruments.
3.6. Assessing the outer measurement model
The validation of the outer model, also known as the measurement model, should be
conducted prior to testing the hypotheses in the inner model, which focuses on assessing the
reliability (Cronbach's Alpha and composite reliability) and validity (convergent and
discriminant validity) of the measurement model. This evaluation process is an integral part
of the overall assessment.

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The internal consistency reliability of the tool used to measure construct reliability is
demonstrated in Table 3.6.2. According to Hair Jr et al. (2016), all the Cronbach's Alpha
values exceed the recommended threshold of 0.70. In contrast, the findings presented in the
aforementioned table indicate that the composite reliability values surpass the threshold of
0.70, as stipulated by Hair Jr et al. (2016). Hence, the verification of internal consistency
reliability has been conducted using Cronbach's Alpha and composite reliability measures,
demonstrating significant reliability across all constructs.
The concept of "convergent validity" pertains to the evaluation of multiple items that share
similar conceptual characteristics. As per the findings of Hair Jr et al. (2016), it is advisable
to employ the average variance extracted (AVE) as a measure for evaluating convergent
validity. To establish validation, it is generally accepted that the AVE should exceed 0.50.
Table 3.6.2 demonstrates that the average variance extracted (AVE) values are significant and
exceed the threshold of 0.50. Furthermore, (Hair Jr et al., 2016) propose that the confirmation
of convergent validity can be achieved through the examination of outer loadings. If the
magnitude of the outer loadings exceeds 0.70, it can be concluded that the convergent validity
has been established. The findings presented in Table 3.6.3 clearly demonstrate that all
observed values exceed the threshold of 0.70. Therefore, the study's convergent validity has
been verified.

Table 3.6.1 :Overview of measurement model quality

Cronbach's Composite Composite Average
alpha reliability reliability variance
(rho_a) (rho_c) extracted
(AVE)
CL 0.929 0.930 0.949 0.824
CS 0.897 0.902 0.929 0.765
FQ 0.810 0.822 0.887 0.724
LeL 0.796 0.799 0.859 0.550
P 0.830 0.851 0.879 0.592
SQ 0.777 0.782 0.858 0.602

Table 3.6.2: Outer loadins of the measurement model

CL CS FQ LeL P SQ
CL1 0.909
CL2 0.913
CL3 0.910
CL4 0.899
CS1 0.879
CS2 0.819
CS3 0.906

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 CS4 0.893
FQ2 0.858
FQ3 0.820
LeL1 0.768
LeL2 0.716
LeL3 0.756
LeL4 0.756
LeL5 0.709
P1 0.817
P2 0.704
P3 0.840
P4 0.733
P5 0.745
SQ1 0.846
SQ2 0.812
SQ3 0.728
SQ4 0.710
FQ1 0.873

The relevant items must load heavily on the construct under examination while loading
poorly on other constructs, according to discriminant validity. As a result, it is simple to
differentiate these things from those of different constructions. Several methods were
employed to evaluate the discriminant validity, including Fornell-Larcker's criterion (Fornell
& Larcker, 1981), the cross-loadings
The traditional Fornell-Larcker's criterion was applied by the findings in Table 3.6.3, and it
was discovered that the square root of AVE is more significant than the correlation
coefficients. The results of Table 3.6.4, cross-loading analysis show that all loadings have a
significant load to their respective constructs while having a weak burden to irrelevant ones.

Table 3.6.3:Fornell-Lacker’s criterion

CL CS FQ LeL P SQ
CL 0.908
CS 0.856 0.875
FQ 0.705 0.733 0.851
LeL 0.559 0.610 0.669 0.742
P 0.674 0.685 0.539 0.457 0.770
SQ 0.782 0.804 0.654 0.627 0.707 0.776

Table 3.6.4:Cross-loading
CL CS FQ LeL P SQ

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 CL1 0.909 0.810 0.660 0.515 0.678 0.703
CL2 0.913 0.739 0.600 0.517 0.620 0.725
CL3 0.910 0.780 0.623 0.511 0.582 0.714
CL4 0.899 0.777 0.673 0.488 0.564 0.700
CS1 0.680 0.879 0.649 0.540 0.674 0.748
CS2 0.668 0.819 0.602 0.498 0.504 0.640
CS3 0.809 0.906 0.666 0.564 0.607 0.721
CS4 0.827 0.893 0.647 0.533 0.608 0.704
FQ2 0.593 0.588 0.858 0.588 0.455 0.528
FQ3 0.509 0.541 0.820 0.605 0.344 0.501
LeL1 0.434 0.490 0.651 0.768 0.367 0.525
LeL2 0.470 0.444 0.602 0.716 0.341 0.417
LeL3 0.404 0.431 0.430 0.756 0.262 0.426
LeL4 0.344 0.386 0.382 0.756 0.309 0.438
LeL5 0.420 0.498 0.401 0.709 0.400 0.501
P1 0.532 0.556 0.474 0.366 0.817 0.510
P2 0.343 0.367 0.338 0.254 0.704 0.368
P3 0.553 0.527 0.405 0.385 0.840 0.565
P4 0.379 0.400 0.367 0.282 0.733 0.449
P5 0.667 0.678 0.454 0.414 0.745 0.709
SQ1 0.660 0.677 0.490 0.490 0.617 0.846
SQ2 0.515 0.613 0.471 0.517 0.541 0.812
SQ3 0.665 0.606 0.520 0.485 0.594 0.728
SQ4 0.581 0.595 0.555 0.455 0.429 0.710
FQ1 0.680 0.722 0.873 0.527 0.555 0.627

The findings of the structural modelling are shown in Table 3.6.5. According to the numbers,
fast food quality does have an effect on consumer happiness. As was true earlier (H1), fast
food restaurants' pricing are proportional to the level of satisfaction among their clientele.
There is a robust relationship between customer happiness and the quality of service at a
restaurant (H4). The quality of service has a greater impact on customer satisfaction than
factors such as food or price. The third hypothesis (H3) predicted that closer accessibility to
conveniences would lead to happier customers. As a result, this hypothesis failed the test of
logic. Customer satisfaction at fast food restaurants in Bangladesh is positively connected

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with customer loyalty (H5). These results support the study's premise. The research shows
that consumer satisfaction, as gauged by variables like meal quality, price, and service
quality, is highly connected with customer retention. The word "customer satisfaction" refers
to the process of determining whether or not a product is sold to a customer.

Table 3.6.5
Hyphothesis Relationship Path t- Results
Coefficients statistics
H1 Food quality customer 0.316* 2.201 Supported
satisfaction
H2 Price customer satisfaction 0.362** 2.597 Supported

H3 Location and environment -1.635** -5.030 Not

customer satisfaction supported
H4 Service quality customer 0.842** 4.989 Supported
satisfaction
H5 Customer Satisfaction customer 0.818** 4.908 Supported
loyalty

4. Discussion and Recommendation

4.1 Disscussion

4.1.1. Quality of food has a positive impact on customer satisfaction of a fast food
restaurant
The result of this study showed that food quality has a significant impact on customer
satisfaction. According to Mattila (2001), restaurant patronage is influenced by three things:
the quality of the food, the level of service, and the atmosphere. This study discovered that
fast food restaurant patrons were happier when the meal was of a higher quality. According to
this survey, serving high-quality cuisine is the primary sign of success for the restaurant
industry. This finding is consistent with earlier research findings (Bujisic et al., 2014; Ha and
Jang, 2010; Mattila, 2001) that focused on the significance of food quality for restaurant
enterprises. Pricing concerns have been taken into account in this study along with those
three considerations. In a fast food business, pricing fairness and competition are positively
correlated with consumer happiness. This study's conclusion is consistent with that of earlier
studies (Konuk, 2015; Ling and Aun, 2018). Regarding food quality, it is advised that eateries
serve savoury and nourishing fare; various consumer groups have suggested fulfilling the
various levels of clients.
4.1.2.Price has positive influences on customer satisfaction of fast food restaurant

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Due to its highly competitive nature, the restaurant industry needs to be competitive in how
much it charges customers. Customers are particularly sensitive to price, thus pricing
strategies should be based on the pricing strategy of the competition as well as other internal
and external considerations.
4.1.3.Favorable customer perception regarding restaurant location and the environment
has a positive impact on customer satisfaction
From a managerial standpoint, this study acknowledges the importance of a number of
customer satisfaction criteria in predicting customer loyalty in the setting of fast food
restaurants in Bangladesh. In order to increase customer satisfaction, their propensity to
return for more food and to suggest the business to others, fast food restaurant owners and
managers must establish an appealing environment and provide the necessary amenities.
4.1.4.Quality of service has a positive impact on customer satisfaction of a fast food
restaurant
The findings of this study demonstrate that perceived service quality has the greatest impact
on customer satisfaction, with a path coefficient of 0.842. It is advised that restaurant
management pay close attention to the calibre of service provided in their establishments.
Service quality isn't something that can be measured in a direct way; instead, it's what people
think about the service right away. The time it takes to serve food and receive a bill, as well
as the necessary training for front-line staff members, are crucial for enhancing service
quality.
4.1.5.Customer satisfaction has a positive impact on customer loyalty of fast food
restaurant
4.2. Recommendation
Customer loyalty is one of the important factors contributing to the revenue of fast food
restaurants. Loyal customers are not only regular purchases but also brand ambassadors,
recommending restaurants. Therefore, building customer loyalty is important for restaurants,
they should promote strategies to create strong relationships with customers. An approach is
to provide a personalized customer experience. This can be achieved through
recommendation systems that, as mentioned earlier, use data analytics to recommend dishes.
based on a customer's preferences, habits, and past buying behavior. By providing
personalized recommendations, customers feel valued and cared for, which can help increase
loyalty.
Another approach is to offer loyalty programs to encourage returning customers. For
example, a restaurant might offer a loyalty card that rewards customers with points for each
visit. These points can then be redeemed for a free menu or a discount on your next purchase.
Loyalty programs not only encourage customers to return, but also provide an opportunity to
collect data. about customer behavior and preferences. Fast food restaurants can also promote
customer loyalty by providing good customer service. This includes training staff to be
friendly,attentive to customers, resolve issues quickly and politely, and ensure their
satisfaction. When customers feel respected and valued, they are more likely to become loyal

15
Moreover, providing a unique and memorable dining experience, this means offering creative
menus, a clean, comfortable restaurant environment or a unique promotion that sets it apart
from the competition. competition. By providing a unique, memorable dining experience,
restaurants can create a strong emotional bond with customers, which can lead to increased
customer loyalty. Restaurants can use social media to foster loyalty. By posting engaging
content, responding to inquiries quickly, and listening to customer reviews, and running
promotions exclusively for customers following on social networks.
In addition, the restaurant provides good quality products, meets high standards, uses clean,
green ingredients and ensures the product meets all customer needs.
In short, loyalty Customer satisfaction is one of the essential things for the success of fast
food restaurants. By providing a personalized experience, offering loyalty programs,
providing good customer care, delivering a unique and memorable dining experience,
leveraging social media, etc. socializing and offering good products, fast food restaurants can
promote customer loyalty as well as drive revenue, which can bring many advantages to the
restaurant in the future.
5. Conclusion and limitations
This research was conducted in an effort to shed light on what makes diners happy and keeps
them coming back to the same restaurants .According to the results, the level of consumer
happiness acts as a moderator between elements like food quality, pricing, and service
quality, and the level of customer satisfaction also affects customer loyalty. The amount of
consumer satisfaction may be raised by improving the food's perceived quality. Customers'
enjoyment of high-quality food is boosted when they perceive a fair and acceptable pricing.
In addition, a higher degree of customer satisfaction is achieved if clients have a positive
impression and experience of the service's quality. When compared to other criteria like food
quality and pricing, service quality has the most positive effect on customer happiness.
Customers are more likely to provide a positive review of a restaurant if they find it to be in
an appealing location with pleasant decor. However, the actual findings in this research did
not back up this theoretical claim. Location and atmosphere were shown to have a
detrimental impact on customers' overall satisfaction levels. Finally, our empirical findings
provide considerable credence to the idea that there is a positive correlation between satisfied
customers and repeat business at fast food establishments. There are significant caveats to
this research, despite its usefulness in illuminating what influences fast food patrons to return
again and again. The first is that it only applies to a limited range of situations (like
Bangladesh) and types of eateries (like fast food joints). Second, the data were gathered using
an easy sampling strategy, therefore there are limits to extrapolating the study's conclusions.
Third, everyone who ate at a fast food establishment was assumed to be the same. There is a
need for further study of this subset of diners in the future. Fourth, people of various sexes,
marital statuses, ages, etc. may have varied levels of price consciousness. In order to establish
an overall outcome of consumer happiness and loyalty, additional research might explore
demographic aspects related to pricing awareness. Researchers might expand their focus to
include various cuisines and dining establishments. Since consumer happiness is an ever-
evolving concern, monitoring it is essential. To further understand the impact of customer
satisfaction on customer loyalty, a longitudinal study design should be used in future
research. Finally, in order to correctly grasp the link between variables among research

16
 constructs, the function of the restaurant, a brand of the restaurant, brand value, and image
should be included as contributing factors.

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