Customer Satisfaction on Products and Services of Fine ...lccbresearch.ph/news/wp-content/uploads/2019/02/... · experiences in the fine dining restaurants in Bacolod City, Philippines

Customer Satisfaction on Products and Services of Fine Dining Restaurants in

Bacolod City, Philippines

Carmen C. Menes*, Ismael A. Haguisan III,Susean R. Castellano [email protected]*

La Consolacion College Bacolod

Abstract

The capacity to satisfy customers is vital for various reasons. The study dwelt with the customer satisfaction on the products and services of fine dining restaurants in Bacolod City, Philippines. The study employed the descriptive quantitative design. The results reveal that customers attained a high level of satisfaction in the aspect of quality food and beverage, the behavior of food and beverage server, environment and ambiance and efficiency of service. Thus, the customer perceived positive experiences in the fine dining restaurants in Bacolod City, Philippines. However, the age of the respondents predicts a difference in the perception of customers in the aspect of the behavior of food and beverage server.

Keywords: restaurant management and business administration, restaurant, level of satisfaction, products and services, descriptive design, Philippines

Customer Satisfaction on Products and Services of Fine Dining Restaurants in Bacolod City, Philippines

Carmen C. Menes, Ismael A. Haguisan III,

Susean R. Castellano

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Development Education Journal of Multidisciplinary Research

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INTRODUCTION

Customer satisfaction has become a popular topic of discussion in business research as it greatly affects companies' prots (Okumu, 2012). Customer value and satisfaction are at the heart of marketing thinking and practice (Kotler & Armstrong, 2013) . Moreover, satisfaction is the customers' evaluation of a product or service in terms of whether that product or service has met their needs and expectations (Awoke & Wollo, 2015). The ability to satisfy customers is important for many various reasons (Saad Andaleeb & Conway, 2006). Customers in the restaurants are the real catalysts for dening or best judging the success of food and beverage product or service (Sabir, Irfan, Akhtar, Pervez, & Rehman, 2014). A customer's satisfaction takes place when, after using the product or services, his experiences are higher than this expectations (Grönroos, 2000; Butt & Murtaza, 2011; Okumu, 2012). Therefore it is important for companies to consider and satisfy the customers' needs and wants to gain a competitive advantage (Singh, 2006; Okumu, 2012).

The restaurant business has become one of the most protable industries in the world. International and local restaurant chains are satisfying the demand of customers in a variety of range of products and services (Sabir, Irfan, Akhtar, Pervez, & Rehman, 2014). In a restaurant business, the food and physical environment of a restaurant are the products, so their quality should be by the name of the restaurant (Butt & Murtaza, 2011). Food quality dimensions which may inuence customer satisfaction are taste and freshness, presentation (Shaharudin, Rizaimy, Mansor, & Elias, 2011), price, and atmosphere quality (Butt & Murtaza, 2011).

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Amidst all the potential determinants of consumer satisfaction in restaurants, research have discovered that food quality is rated as the most dominant predictor of customer intent to return (Ng, 2001). A study on customer satisfaction in fast food restaurants revealed that food quality had the highest mean among all the variables (Pettijohn, Pettijohn, & Luke, 1997). Food represents a pivotal role in the restaurant experience, and restaurant guests recognize its taste, appearance, textures, colors, temperature, freshness, health benet, and aroma as critical quality attributes (Gagić, Tešanović, & Jovičić, 2013). The portion's size and menu variety are considered as determinants in enhancing pleasure in the food experience (Kivela, Reece, & Inbakaran, 1999; Gagić, Tešanović, & Jovičić, 2013).

Aside from food quality, the restaurant's physical setting may also affect customer satisfaction and return visits (Ng, 2001). The dining area (Sulek & Hensley, 2004) proved that the atmosphere of the dining area was a signicant predictor of satisfaction in the overall dining experience. Also, atmosphere, service quality has been found to be a signicant factor in determining customer satisfaction and their return intentions (Ng, 2001). Yüksel & Yüksel, (2003) found that service quality had the most signicant effect on dining satisfaction at the aggregate market level. Qu (1997) also discovered that service quality was signicantly related to the customer's return intention.

Service delivery is of vital importance in the hospitality industry. Operations involved in service delivery process needs to be efcient to fulll customer requirement and satisfy them (Sahoo, 2013). Moreover, service delivery is an integral part of a restaurant product, and employees' performance and attitude play a crucial role in the process (Gagić, Tešanović, & Jovičić, 2013).


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However, service delivery failures can place many restaurants out of business if care is not paid to the problem. In a restaurant, the customer experience process failure if the employee is absent-minded and outcome failure if the preferred menu item is not available (Othman, Zahari, & Radzi, 2013). Employees in the restaurant industry are essential for restaurant organizations, as the organizations depend on their enthusiasm and capability to deliver products and services (Baum & Nickson, 1998; Gagić, Tešanović, & Jovičić, 2013).

An organization must look into the needs and wants of their customers to be successful. Customer satisfaction is a term generally used to measure a customer's perception of a company's products and services (Muhammad, 2013). If one aspect of product and services do not meet the customer's satisfaction, then they can be dissatised with the overall performance (Sabir, Irfan, Akhtar, Pervez, & Rehman, 2014). The food products involve price, quality, and value of money. It is well-established that satised customers are the key to long-term business success (Gilbert & Veloutsou, 2006). Customers also measure whether the product or services' perceived performance matches a buyer's expectations (Shaikh & Khan, 2011). They added that:

“If the product's performance matches expectations, the customer is satised. If performance exceeds expectations, the customer is highly satised or delighted. Satised customers buy a product over and over again, pay less attention to competing brands and are motivated to buy other products from the company.”

The researchers, as food service operation enthusiasts, would like to determine the quantitative results of the customers satisfaction on a restaurant's

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products and services.

Objective

The study determined the customer satisfaction on products and services of ne dining restaurants in Bacolod City, Philippines. The difference in the level of satisfaction of customers according to their age was also determined.

Framework of the Study

The study is guided by the concept of buyers and sellers in business to business (B2B) environment. In a B2B environment, suppliers need to understand the characteristics and conditions of their customers due to their unique attributes (Shaikh & Khan, 2011; Akman & Yörür, 2012). Determining the prole of a customer, recognizing his needs, problems and accordingly acting creates a collaborative relationship between the supplier and customer. Companies tend to apply tools to monitor the entire customer base such as customer relationship management systems to generate a productive and mutually-benecial relationship with the customers (Mackevičiūtė, 2013).

Moreover, B2B client loyalty is associated with relationship quality, trust, involvement, satisfaction, purchase development, organizational change, and switching costs (Rauyruen & Miller, 2007). Three coherent variables namely, satisfaction, trust, and commitment compose relationship quality that reveals the overall essence of relationships between providers and customers (Hennig-Thurau, Gwinner, & Gremler, 2002). The higher the quality of this relationship, the more likely sales, loyalty, and repeated consumption will occur (Bagdoniene & Zilione, 2009).


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Beside commitment and trust, satisfaction is the third component in their model, instead of relationalism (Ulaga & Eggert, 2006). They added that more attention should be on two consequences such as relationship expansion or the propensity to leave the relationship, and as antecedent, they mentioned only relationship value. They found out that relationship value has signicant correlations to trust, commitment and satisfaction, with satisfaction showing the strongest connection to relationship value. In both Hausman (2001) model the antecedents and the consequences from relationship strength are more diversied than in the model of Ulaga & Eggert (2006). Furthermore, satisfaction is seen as a consequence instead of a component of relationship strength or relationship quality itself (Konhauser, 2007).

Customer satisfaction with prior service experiences has a positive effect on the length, breadth, and depth of the customer–company relationship (Bolton, Lemon, & Verhoef, 2008). Considering B2B relationships in the restaurant industry, they added that a decision maker's favorable evaluations of performance within the contract terms lead the rm to increase its commitment to ingredients suppliers. Because the upgrade decision is an increase in the rm's commitment to the existing relationship, more likely, a rm with a decision maker who is highly satised with the supplier will be more likely to upgrade The price perception of customers is the nal expected vital driver of repurchase intentions (Jiang & Rosenbloom, 2005). At the initial purchase decision, value perceptions are crucial in customer decision making (Vargo & Lusch, 2011). Value perceptions involve a trade- off between the price paid and expected benets. Furthermore, if the price is outside a customer's range of acceptability or the price signals that the quality is inferior, the offer may have little overall perceived value (Khan, Naumann, & Williams, 2012).

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Another potential driver of customer satisfaction examined in this study was customer perceptions of products. Many B2B services have a physical product component that inuences customer satisfaction (Vargo & Lusch, 2011). Therefore, the quality of the installed control system contributes to the customer's overall evaluation of the supplier. If product quality is high, the system will work as it should. High product quality also leads to more positive overall evaluations of the supplier (Gill & Ramaseshan, 2007). If the evaluation of product quality is low, the system may require frequent adjustments and maintenance, or the system may fail, resulting in downtime. System failure could result in higher maintenance support and costs or more frequent use of emergency services, leading to lower evaluations of supplier performance and fewer repurchase intentions (Khan, Neumann & Williams, 2012).

In the B2B framework, the customer satisfaction research has mainly emphasized on 'disconrmation of expectations' model, which means customers are satised when they compare their feelings about a product's performance to their expectations (Lankton & Mcknight, 2012; Are, Amini, & Fallahi, 2010). According to the marketing concept, we must think of any product as a total product, which involves the main advantages of the product plus its additional features (Are, Amini, & Fallahi, 2010). The customer will be satised if perceived performance meets or exceeds expectation, if perceived performance is less than expected performance, the consumer will be dissatised (Are, Amini, & Fallahi, 2010; Sattari, 2007).

Alfansi & Sargeant (2000) distinguish quality, on-time delivery, and price as the main dimensions of the base level of the product. Ryu, Lee, & Woo (2012) mentioned that the scope of food quality measures consumer


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Customers in aFine Dining Restaurant

In Bacolod City, Philippines

·Age ·Sex

Products and Services·Quality of Food and Beverage

·Behavior of food and

Beverage Server

·Environment and Ambiance

·Efficiency of Service

Level of Customer

Sa�sfac�on

Figure: 1 Schematic Diagram of the Study

In a B2B context, customer satisfaction consists of various dimensions where each dimension has several features that affect overall satisfaction (Hirsch, 2011). On the other hand, in a B2B services context, the dimensions of service performance are among the drivers of satisfaction (Khan, Naumann, & Williams, 2012). The restaurant has been striving to gain prot and satisfaction of the customer. The customer satisfaction and the experience is the primary key of business service performance towards the business evaluation especially in the culinary eld (Surapranata & Iskandar, 2013). There is a diversity of opinions on how service performance should be operationalized (Winer, 2001; Khan, Naumann, & Williams, 2012). Some have used relationship satisfaction to measure service performance (Crosby, Evans, & Cowles, 1990), others have used perceived service quality (Hennig-Thurau & Klee, 1997; Khan, Naumann, & Williams, 2012), trust (Bejou, Wray, & Ingram, 1996), commitment (Pepur, 2011), and care (Malik, Jaswal, Malik, & Awan, 2013).

satisfaction in a restaurant market and adopted ve dimensions of food quality, namely: the smell of the food is enticing, there is a variety of menu items, the food is nutritious, the food is delicious, and the food is fresh. Moreover, cost and quality are the standard product characteristics. The quality and price are the central core product dimensions (Mackevičiūtė, 2013; Prahalad & Hamel, 1990).

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METHODOLOGY

RESULTS AND DISCUSSION

Basic customer service can be expressed as the synergy of all the determinants affecting the procedures for forming products available to the customer (Brassington & Pettitt, 2006). Some authors emphasize delivery, nancing arrangements, convenient hours of operation as the primary customer service constituents (Pride & Ferrell, 2010). Bitner (1995) emphasizes three most important encounters with customers in delivering service: order taking, delivery, and billing. According to Brassington and Pettitt (2006) the most critical factors in customer service are inventory availability, delivery, and its dependability, ease of order administration, order convenience, invoicing procedure and order cycle time. It is apparent that delivery, order administration and billing or invoicing are seen as the most valuable customer service constituents (Mackevičiūtė, 2013).




The respondents of this descriptive research were the customers who dined in the restaurant. The valid (CVR= 0.99) and reliable (Cronbach's alpha = 0.963) survey questionnaire was administered to a quota sample for a period of two months. Mean, standard deviation and t-test were used to analyze the data.

The presentation of the level of customer satisfaction on the products and services of a ne dining restaurant include the results when the customers are taken collectively and when grouped according to age and sex.

Taken Collectively. Results revealed that the overall level of customer satisfaction on the products and services of the restaurant is very high (x=3.67; sd-=0.335). The result implies that the restaurant either meets or surpasses customer expectations. Consistently,


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Table 1. Level of Customers Satisfaction on Products and Services of a Fine Dining Restaurant when Taken Collectively n= 116

Restaurant for long was not recognized as a service

business but rather related more closely to a

manufacturing industry since it provides food and

beverage products, but with these products, intangible

"product" of cooking procedures, table service, and a clean

and nice table to eat at (Deshwal & Khanna, 2013) are also

provided. Results (quality of food and beverage x =3.67;

sd=0.40; second highest rating) in this investigation

contradict the study of Chow, Dickson-Ong, Tham, and

Wong (2013) where food quality has the lowest rating while

a 'clean, comfortable and inviting restaurant' had the

highest satisfaction ratings but for this study environment

and ambiance is the second lowest (x =3.58; sd=0.39).

They further added that delicious food at an appropriate

cost, a cheerful greeting, and attentive service inuenced

guest intent to return. Also, the intangible factor of food

quality makes it challenging to evaluate before the actual

purchase (Joshi, 2012).

customers receive the product and are provided with the service that they expect. Customer satisfaction is an overall evaluation comparing post-purchase perceived performance with purchase expectations (Fornell, 1992; Yan, Wang, & Chau, 2015). When consumers decide to have a meal in a specic restaurant, they will expect how they will be served. After the meal, they will compare the serving experience with their anticipation (Yan, Wang, & Chau, 2015).

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Similarly, it is also observed that customers return

to a restaurant because of the quality of the food such as

taste, presentation and fresh ingredients which they

consider as the most important reason (Shaharudin,

Ismail, Mansor, Elias, Jalil & Omar, 2011; Reynolds &

Hwang, 2006).

Contrary to the above result, a study conducted in

Spain revealed that quality of food was considered as the

most important attribute, followed by quality of service,

cost/value of the meal, and place/ ambiance of the

restaurant (Soriano, 2002).

The behavior of food and beverage server has the

highest rating (x =3.77; sd=0.39) while the efciency of

service got the lowest rating (x =3.46; sd=0.915). Both

indicate that the customers are very highly satised. The

intangible quality of services is that services constitute

performances and they often cannot be seen, felt, tasted,

or touched like physical goods when making restaurant

choice decisions (Joshi, 2012). He also added that the

intangible factor of service quality makes it challenging to

evaluate before the actual purchase.

Consequently, restaurant patrons often rely on

tangible evidence such as restaurant facilities, décor, and

environment to lead them in developing expectations

about the restaurants (Wall & Berry, 2007; Joshi, 2012)

which is afrmed by this study (environment and

ambiance x =3.58; sd=0.39).

The efciency of service has the lowest rating. This

result implies that it is highly prudent to establish a

service climate and culture that will guide employees to be

efcient and improve performance to meet the





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expectations of current and potential customers

(Gunaratne, Wilson, & San Diego, 2012).

Grouped According to Age. The level of customer

satisfaction on the products and services of ne dining

restaurants when grouped according to age is very high for

both younger (x =3.62; sd=0.36) and older (x =3.72;

sd=0.31) groups. In all four aspects, the older group have

slightly higher ratings compared to the younger group.

Table 2. Level of Customers Satisfaction on Products and Services of a Fine Dining when grouped according to Age n= 116

The above results afrm a result of a study's result

that today's younger restaurant customers are exploring

bolder, more exotic tastes from a variety of cultures and

these customers are leading the revolution in ethnic

cuisine dining (Reynolds & Hwang, 2006). Reynolds and

Hwang (2006) further added that:

Both Generat ion X and Y customers are

adventuresome and not frightened to try something new

and unconventional while dining out and they tend to

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frequent a variety of restaurants on a regular basis. These

younger, upscale customers seem to show the most interest

in cuisines, which are often challenging to prepare at home

and require various, sometimes exotic ingredients.

Contrary to the above, older singles and married

seniors do not visit frequently restaurants, older

customers also tend to shy away from spicy or exotic

cuisine, as well as newer menu trends (Reynolds & Hwang,

2006). Furthermore, the study of Eliwa (2006) signies

that the 34 - 44 age group can be satised with service

quality, timeliness of service at restaurants, facilities,

variations of the menu, and individualized care more

efciently than the younger respondents. Moreover, the

age group between 45 - 54 was signicantly satised with

the convenience of parking, variations of menus, and

cleanliness of the restaurant more than the 23 – 33 age

group (Eliwa, 2006). Also, customer behaviors differ

among people of various age. It further shows that

consumers of different age may have different intention

and behavior according to their desires and favors

(Kristanti, Thio, Jokom, & Kartika, 2012). According to (Knutson & Patton, 1993), older

adults are motivated to dine out for convenience and fellowship. This market segment, particularly older females, indicates that an essential reason for dining out is the escape from the annoyance of creating a meal, from grocery shopping to cooking, to clean up.

With the younger group having a lower level of satisfaction, it signals to the management to explore possibilities of creating strategies to meet the expectations of their customers who belong to generation X, Y or millennial.





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Table 3. Level of Customer Satisfaction on the Products and

Services of a Fine Dining Restaurants when grouped according

to Sex n= 116

The above results are supported by the nding of a

study in Finland where the customers of a restaurant are

satised with the food and services (Adhikari, 2014).

However, some studies revealed satisfaction differences

between male and female. American Customer

Satisfaction Survey Index showed that female customer

had higher satisfaction than the male customer (Kristanti,

Thio, Jokom, & Kartika, 2012). Similarly, a study

conducted in Malaysia revealed that male and female

customers have different levels of satisfaction where male

respondents registered higher mean scores than their

female counterparts (Mokhlis, 2012).

In the aspect of environment and ambiance (third highest; very high satisfaction for both male and female groups), ndings are similar to another study conducted

Grouped According to Sex. Both male (x =3.62; sd=0.39) and female (x =3.69; sd=0.30) groups have a very high level of customer satisfaction on products and services of ne dining restaurants in Bacolod City, Philippines.

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that female hotel guests in the United States were more likely to be delighted by employee friendliness and professionalism (Torres, Fu, & Lehto, 2014). Lastly, the level of satisfaction is affected by the expectation and preferences of customers in general and is less affected by the sex (Adhikari, 2014) which is consistent with the ndings of this study.

However, as to the efciency of service, the result of this study contradicts with the statement that the male guests are delighted when their needs are met, when they receive efcient and timely service and when they receive complimentary amenities or upgrades (Torres, Fu, & Lehto, 2014). Results imply that a slight gender difference in this study may be used by hospitality practitioners in developing a simple, practical guideline for product and service delivery.

Differences in the Level of Customer Satisfaction. Results revealed that a signicant difference exists in the behavior of food and beverage servers as perceived by younger and older customers.

Table 6. Signicant Difference in the Level of Customer Satisfaction on the Products and Services of Fine Dining Restaurants When Grouped According to Age n= 116

A similar nding by Reynolds & Hwang (2006) revealed that respondents who were in the 21-30 age range had signicantly (p<0.05) lower mean scores compared to their older counterpart on the dining experience factor of providing prompt and quick service. They added that the younger customers are often in a





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hurry and are very spontaneous. Also, a study on senior citizen satisfaction on restaurant service revealed that there were signicant differences in perceptions of service quality between older and younger customers (Lee, Cho, & Ahn, 2012). Moreover, consumers' age differences have the highest inuence on their behavior of choosing a restaurant (Rahman, 2012). Results may prompt the restaurant management to explore the possibility of providing continual training to their food servers to address the varying needs and expectations of younger and older customers.

CONCLUSIONS

The customers' level of satisfaction with the products and services of ne dining restaurants in Bacolod City, Philippines were very high. This implies that the quality of the food and beverage offered by the ne dining restaurants meets or even exceeds the expectations of the customers and may signal their intention to revisit or repurchase. Moreover, the behavior and service of food attendants have highly satised the customers. This denotes efcient service, prompt and courteous food and beverage attendants. Lastly, an attractive environment and ambiance is a proof of the commitment of the restaurants to provide the best for their customers. Among the four aspects, attention may be given by the restaurant to raise the bar of their employees' efciency to be at par with their behavior and the quality of food and beverage that their establishment offer.

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