Comparing Factors Influencing Loyal Consumption Behavior Towards Fast-Food Restaurants

Abstract

The purpose of this paper is to investigate the factors influencing the satisfaction of customer and customer loyalty in the fast food restaurant industry. A theoretical model, including hypotheses, has been proposed in this study. Data were assembled using convenient sampling method. The hypothesized model was verified with the data from 204 respondents. Principal component analysis and structural equation modeling approach were applied to analyze data. The results (significant at po0.01 and po0.05) exhibited that food quality, price and service qualities were positively linked to customer satisfaction. Customer satisfaction was positively associated with customer loyalty. The empirical results found a contrary association between the location and environment of restaurant and customer satisfaction. Customer loyalty studies generally indicate that fast-food customers are not genuinely loyal to brands or products mainly because they function under low-switching cost conditions. The purpose of this research is to empirically study whether fast-food customers genuinely become loyal and, if so, how. The study adopts the theory and method of the satisfaction-trust-commitment-loyalty explanation chain and examines the consumer survey results obtained under conditions of low-switching costs. Analyses of the results indicate that the proposed relationships provide appropriate explanatory power for the phenomenon at hand and that fast- food customers truly become loyal despite conditions of low switching costs. The findings and the research and practical implications are thoroughly discussed.