Factors Influencing Customer Satisfaction and Its Contribution on Customer Loyalty: Case of Restaurant Industry in Turkish Republic of North Cyprus

Abstract

The purpose of our study is to analyze the customer satisfaction and loyalty in restaurant industry in Turkish Republic of Northern Cyprus. Considering the restaurant industry, the literature reveals that food quality, service quality, price, location and restaurant atmosphere are the key determinants of customer satisfaction. Although positive relationships were reported in many studies between the traditional determinants and customer satisfaction, it is important to investigate these factors in TRNC since the dynamics and culture of each country can be different.Design/methodology/approach -In this study, 7-point Likert scale survey instrument was constructed and online questionnaire distributed to survey 356 customers through convenience sampling method. Classification and Regression Tree (CART) Analysis was used to test the hypotheses.Findings -Our findings indicate that service quality and food quality make significant contribution on customer satisfaction and there is a positive relationship between customer satisfaction and customer loyalty. In addition, food quality is the most important factor influencing the customer satisfaction in restaurant industry.Discussion -In addition to traditional determinants, usage of mobile application and presentation shows in restaurants were incorporated into the proposed research model to examine the relationship with customer satisfaction. Mobile application and presentation shows were rarely investigated in restaurant industry and since there is a hyper-competition in restaurant industry, it is important to find new ways that can promote to customer satisfaction. Furthermore, the relationships between customer satisfaction and loyalty is investigated.