IJRFM Volume 6, Issue 5 (May, 2016) (ISSN 2231-5985)

International Journal of Research in Finance and Marketing (IMPACT FACTOR 5.861)

CUSTOMER SATISFACTION IN FAST FOOD INDUSTRY: A CASE STUDY OF MYSORE

Dr.S.J.MANJUNATH1,
Associate Professor
MBA Department,
B.N. Bahadur Institute of Management Sciences,
Mysore, Karanatka,

SHIREEN REGINALD 2
Research Scholar
MBA Department,
B.N. Bahadur Institute of Management Sciences,
Mysore, Karanatka,

ABSTRACT

This research is focused to find what are the key success factors for fast food industry in region of
Mysore District. Customer satisfaction plays a pivotal role in success of every business organization
whether it is meant for a product or a service. Every business needs not only to retain its current
customers but also to expand customers base significantly and it is possible only when target
customer is fully satisfied from company on some parameters. Fast food concepts developed very
rapidly in last few years in Mysore District. The objective of the study is to find out the essential factors
or determinants of customers satisfaction in the restaurant industry of Mysore District. There are two
variables discussed in this study, i.e. independent and dependent variables. Customer satisfaction in
fast food industry showing dependency on service quality, Product Quality, Physical Design, Price,
Customer satisfaction, Physical Environment, Taste and Promotion. The various statistical tools used
to analyze the primary data were Correlation coefficients, multiple linear regressions. ANOVA, and
Regression Co-efficient. Findings of the study show that service quality and physical design are the key
factors for satisfaction in fast food industry in Mysore District.

Keywords: Customer satisfaction, Fast food, service quality.

INTRODUCTION

Indian consumers lifestyle has immensely helped the fast food industry to mature and expand over
the last few years. Other reasons like rising number of nuclear families, exposure to western cuisine
and global media, growing number of working women - have had a substantial impact on the eating
out trends and growth of the fast food industry. The industry experts consider that the middle class
young population, with high disposable income, will spend more on eating out at chained fast food
outlets. The demand for ready-to-eat packaged food is also expected to record strong growth in the
country. In todays competitive world, Service Quality has become one of the most strategic tools
for measuring customer satisfaction. Customer satisfaction is actually how customer evaluates the
ongoing performance (Gustafsson, Johnson and Roos, 2005). Customer satisfaction is very
important in todays business world as the ability of a service provider to create high degree of

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IJRFM Volume 6, Issue 5 (May, 2016) (ISSN 2231-5985)
International Journal of Research in Finance and Marketing (IMPACT FACTOR 5.861)
satisfaction is crucial for product differentiation and developing a strong relationship with
customers (Deng et al., 2009). Because of the above reasons the companies consider customer
satisfaction as very important element while devising their core strategies. Moreover, the concept
of customer satisfaction gained so much importance that American Customer Satisfaction Index
(ACSI) was developed.
Qualities of brand characteristics that are offered by company determine the level of customer
satisfaction. (Khan & Afsheen, 2012). Customer satisfaction can be defined in terms of meeting the
expectations of the customers in terms of parameters associated with satisfaction (Malik & Ghaffor,
2012).

Thorsten and Alexander (1997) found Customer satisfaction with the product and services of
company as the strategic factor for competitive advantage. In the context of relationship marketing,
customer satisfaction is the way that leads to long term customer retention because un satisfied
customers have very high switching rate (Lin & Wu, 2011).

Satisfaction can be regarded as a broad principle; support good quality is a component of

satisfaction (Zeithaml and Bitner, 2003). Client satisfaction is usually defined through Olivers
(1997) conditions: that it's this consumers fulfilment result. It's a ruling that a products or services
feature, or this products or services per se, comes with a pleasurable level of intake linked
fulfilment. In other words, it does not take total level of well-being that has a service /product
knowledge.

Lim (2010) Customers ultimate satisfaction may have significant affect of atmosphere. Physical
surroundings are helpful to create image in the mind of customer and to influence their behavior.
Physical atmosphere of the restaurants have the significant impacts on the customers satisfaction.

Lightning, furnishing, sent, music and different other atmospheric factors among them influence on
customer satisfaction.

LITERATURE REVIEW

Customer Satisfaction

According to Zairi (2000) the feeling of pleasure and expectation fulfillment is known as
Satisfaction. If the product will not satisfied customer feelings they will be dissatisfied, and if
product satisfied them after the use customer will be satisfied and become loyal to that product or
brand. In other words customer satisfaction is goods or services which fulfill the customer
expectation in terms of quality and service for which he paid. If Customer satisfaction develops they
will become loyal to that product or brand and their loyalty will be good for the company in sense
as a Profit. Customer satisfaction is the part of marketing and play important role in the market. In
any organization satisfaction of customer is more important, because if your customer is satisfied
with your services or products, your position will be good in the market. Oliver (1981) describe in
his study that customer satisfaction is the part of marketing and play important role in the market.
In any organization satisfaction of customer is more important, because if your customer is satisfied
with your services or products, your position will be good in the market. In old times customer
satisfaction was not too much important and people were not focused on quality. But now a day s

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IJRFM Volume 6, Issue 5 (May, 2016) (ISSN 2231-5985)
International Journal of Research in Finance and Marketing (IMPACT FACTOR 5.861)
competition is taught and customer is aware of all the products and companies due to education
and learning environment and this is the reason that every business is concern to fulfill properly
customers need and wants.

Huang (2011) promotions is different form of activities for attracting and getting attention of
customer to purchase the product or service through personal selling, public relations, sales
promotions and advertising. According to Kurniawan (2010) promotion of product or service helps
in the best way to builds relationship with customers, because everyone is looking for the best
suitable deal for them.

Zeithaml (1985) it is a scale with multiple items good validity and reliability, many researchers use
this instrument to understand and find the service expectation and consumers perception for
improving the service quality. The expectation of a customer is an important factor. The more
service quality is near to customer expectation more satisfaction and vise versa Ayse Ozfer Ozcelik
(1988).

Kurniawan (2010) branding is one of the factors which has been identified repeatedly customer
choice in the selected product. Branding has impact on purchase decision of consumers. The more a
brand is succeeded in their earlier period the more value for its brand can be generated.

Lim (2010) Customers ultimate satisfaction may have significant affect of atmosphere. Physical
surroundings are helpful to create image in the mind of customer and to influence their behavior.
Physical atmosphere of the restaurants have the significant impacts on the customers satisfaction.
Lightning, furnishing, sent, music and different other atmospheric factors among them influence on
customer satisfaction.

Lim (2010) for the customer it is not necessary that a better quality can be a better taste, if
customer like the taste of food he/she will be willing to pay for the it. Based on previous researches,
in customer satisfaction and taste, there is a significant correlation found between them.
Researchers found that Good taste of food has positive influence on customers satisfaction and it
also increase the customers retention rate which is also depends upon customers satisfaction.
Therefore, restaurants focus is on taste of the food and services that has influence on customers
satisfaction

OBJECTIVE

The objective of the study is to find out the essential factors or determinants of customers
satisfaction in the restaurant industry of Mysore.

HYPOTHESES OF THE STUDY

H1:Service quality is positively related with customer satisfaction.

H2:Product Quality is positively related with customer satisfaction.

H3:Physical Design is positively related with customer satisfaction.

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IJRFM Volume 6, Issue 5 (May, 2016) (ISSN 2231-5985)
International Journal of Research in Finance and Marketing (IMPACT FACTOR 5.861)

H4: Price is positively related with customer satisfaction.

H5: Physical Environment is positively related with customer satisfaction.

H6:Taste is positively related with customer satisfaction.

H7: Promotion is positively related with customer satisfaction.

METHODOLOGY

The data required for the study was conducted from both primary and secondary source. The
primary data was collected from the respondent using structured questionnaire. The secondary
data was collected from the published journals, books, and various websites. The samples were
selected by administering convenience sampling technique.

There are two variables discussed in this study, i.e. independent and dependent variables.
Customer satisfaction in fast food industry showing dependency on service quality, Product Quality,
Physical Design, Price, Customer satisfaction, Physical Environment, Taste, Promotion

The Likert scale questionnaire was designed for collecting of data from the mention respondents in
above mentioned Fast food restaurants. The number of respondents who were contacted was 100..
The various statistical tools used to analyze the primary data were Correlation coefficients, multiple
linear regressions., ANOVA, and Regression Co-efficient
Table 1: Correlation coefficients

Reliability of Scale
S.No Cronbachs Alpha
1 Responsiveness (service quality) 0.735

2 Reliability (Product Quality) 0.755

3 Physical Design 0.780

4 Price 0.730

5 Customer satisfaction 0.744

6 Physical Environment 0.785

7 Taste 0.750

8 Promotion 0.760

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IJRFM Volume 6, Issue 5 (May, 2016) (ISSN 2231-5985)
International Journal of Research in Finance and Marketing (IMPACT FACTOR 5.861)
The above table shows the reliability of the data collected from respondents. The following scales
show that the data collected from the is reliable and respondents answered accurately. Because the
variables are exceeding from 70% which is the standard of acceptance for reliability.

Table 2: The following results were obtained after fitting the multiple linear regressions.

Model Summary
Model R R Square Adjusted R Std. Error of the Estimate
Square
1 .770 .585 .528 .22587
a
a. Predictors: (Cons tant), service quality, Product Quality, Physical Design, Price, Customer satisfaction,
Physical Environment, Taste, Promotion

The adjusted R-square in the table shows that the dependent variable, (Customer Satisfaction) is
affected by 52.80% by independent variables (service quality, Product Quality, Physical Design,
Price, Customer satisfaction, Physical Environment, Taste, Promotion). It shows that service quality,
Product Quality, Physical Design, Price, Customer satisfaction, Physical Environment, Taste,
Promotion factors are responsible for customers satisfaction. The overall model was also
significant, tested with the help of ANOVA. The results are given in the following table.

Table 3: ANOVA

ANOVAa
Model Sum of Squares Mean F Sig.
Square
1 Regression 9.285 1.330 20.185 .000b

Residual 5.048 0.58

Total 14.333
a. Dependent Variable: Customer satisfaction
b. (Constant), service quality, Product Quality, Physical Design,
Price,Physical,Environment, Taste, Promotion

ANOVA table is showing the level of significance. Through the table it is clear that all sub factors
service quality, Product Quality, Physical Design, Price, Customer satisfaction, Physical
Environment, Taste, Promotion are related to satisfaction and that the relationship between them is
significant as compared to alpha value=0.05.

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IJRFM Volume 6, Issue 5 (May, 2016) (ISSN 2231-5985)
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Table 4 : Regression Co-efficient

Coefficients a
Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 1.128 .272 4.380 .000
service quality .220 .072 .280 2.485 .010
Product Quality .148 .067 .189 2.280 .000
Physical Design .197 .077 .083 1.987 .015
Price, .187 .058 .230 2.484 .007
Physical Environment .178 .078 .266 2.230 .010
Taste .105 .066 .220 1.580 .007
Promotion .147 .056 .180 1.640 .001

a. Dependent Variable: Customer satisfaction

As it clear from the table, each and every factor is significantly related to Customer
satisfaction..Under the standardized coefficients it is evident that the Service Quality and physical
design are the two majors and most important factor causing customer satisfaction in fast food
restaurants customers of Mysore district with a standardize coefficient of 0.280 and second
important variable is Price with a standardize coefficient of 0.230. The third important variable is
Physical environment with a standardize coefficient of 0.266. Hence there are three main factors
that are responsible in order for customer satisfaction in fast food restaurants in region of Mysore
District. Other factors of the study has weak impact on customer satisfaction like promotion (b
=0.147), taste (b = 0.105). As the table shows positive values and sub factors are significant at
value=0.05 it is concluded that the entire list of hypothesis is endorsed.
CONCLUSION

This study tested the model of customer satisfaction in full service restaurant industry. We can
conclude that service quality, Product Quality, Physical Design, Price, Customer satisfaction,
Physical Environment, Taste, and Promotion are the main factors influencing the behavior of
consumers towards condescending the fast food restaurants in Mysore District. Finally we could
conclude that, there is a significant positive relationship between the service quality, Product
Quality, Physical Design, Price, Physical Environment, Taste, and Promotion will lead to customer
satisfaction.

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