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Factors Affecting Customer Retention In The Restaurant Industry: Moderating Role Of Restaurant Location

Author

Listed:
  • Ammar Ahmed

    (Assistant Professor, Department of Management Sciences, MNS-UET, Multan)

  • Sanober Salman Shaikh

    (Institute of Business Administration, University of Sindh Jamshoro, Pakistan)

  • Rafat Naseer

    (MSBA, Institute of Southern Punjab Multan)

  • Muhammad Asadullah

    (Assistant Education Officer, School Education Department Punjab)

Abstract

This study investigated the main effects of service quality and price fairness on customer retention.The study also investigated the moderating role of restaurant location in service quality, price fairnesscustomer retention relationships.Data collected from 182 customers visiting selected restaurants located in Multan city of Pakistan.The collected data relates to the chosen variables i.e.service quality, price fairness, restaurant location, and customer retention.The significant positive results of linear regression analysis revealed that service quality, price fairness and restaurant location predicted the customer retention.The results of stepwise multiple regression analysis revealed that restaurant location positively moderated the relationship of service quality and customer retention.It also revealed that restaurant location positively moderated the relationship of price fairness and customer retention.This study may have practical implications for human resource managers regarding recruitment decisions.It may have importance for restaurant managers or owners regarding quality of service and pricing plans which are true reflection of the services provided.Similarly, they may give due consideration to the location factor while launching a food service business.On the basis of the findings of the study, conclusions have been made and recommendations and directions for further research have been offered.

Suggested Citation

  • Ammar Ahmed & Sanober Salman Shaikh & Rafat Naseer & Muhammad Asadullah, 2019. "Factors Affecting Customer Retention In The Restaurant Industry: Moderating Role Of Restaurant Location," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(2), pages 95-108.
    • Handle: RePEc:aib:ibtjbs:v:15:y:2019:i:2:p:95-108
    DOI: https://doi.org/10.46745/ilma.ibtjbs.2019.152.7
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    References listed on IDEAS

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    1. repec:sol:wpaper:2013/196094 is not listed on IDEAS
    2. Bahri-Ammari, Nedra & Bilgihan, Anil, 2017. "The effects of distributive, procedural, and interactional justice on customer retention: An empirical investigation in the mobile telecom industry in Tunisia," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 89-100.
    3. Sandra Rothenberger, 2015. "Fairness through Transparency: The Influence of Price Transparency on Consumer Perceptions of Price Fairness," Working Papers CEB 15-008, ULB -- Universite Libre de Bruxelles.
    4. Ammar Ahmed & Ismail bin Lebai Othman, 2017. "The Impact of Strategic Attributes on Organizational Performance in Pakistan Banking Sector: A Review and Suggestions for Future Research," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(8), pages 371-387, August.
    5. Ahmed, Ammar & Khuwaja, Faiz Muhammad & Othman, Ismail Bin Lebai & Qureshi, Muhammad Asif & Ali, Rao Akmal, 2017. "Validation of SERVQUAL Model in Relation to Customer Loyalty: Evidence from FMCGs in Pakistan," Sukkur IBA Journal of Management and Business, Sukkur IBA University, vol. 4(2), pages 54-74, July - De.
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    Cited by:

    1. Lima Nasrin Eni, 2022. "Determinants of Customer Satisfaction at Fast Food Restaurants Located in Kishoreganj District of Bangladesh," International Journal of Science and Business, IJSAB International, vol. 7(1), pages 1-12.

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