An Inter-correlational Study on Socio-demographic Profile, Customer Satisfaction and Customer Loyalty in a Fast Food Restaurant in the Philippines

Abstract

The entry of new players in the fast food industry in the Philippines, both local and foreign companies, has paved for a more competitive business environment. Thus, the need to attend to the satisfaction of their customers has become their main objective. The main purpose of this study is to assess the relationships among socio-demographic characteristics, customer satisfaction, and customer loyalty in a fast food restaurant. Survey questionnaires were distributed to respondents who dined in at the fast food store during the data gathering. Weighted means, standard deviations, verbal interpretations and rankings were determined to measure the level of customer satisfaction and customer loyalty. Spearman's rho correlation coefficients were identified to assess the relationships. Respondents were satisfied in terms of food quality, service quality and price but were dissatisfied with the physical environment. Customer loyalty in terms of first-in-mind, word-of-mouth and repurchase intentions were high. Customer satisfaction indicators are significantly correlated with customer loyalty indicators at p-value .01. Food quality, service quality, physical environment, and price/perceived value for money are significantly correlated with repurchase intention, word-of-mouth, and first-in-mind-indicators of customer loyalty. Significant positive relationship between customer satisfaction and customer loyalty is established. Relationships between socio-demographic variables and customer satisfaction and loyalty vary. Fast food restaurants have to ensure that customers' needs and expectations are met to increase their levels of satisfaction and customer loyalty. Recommendations, particularly on maintaining cleanliness of the physical environment inside and outside of the store at all times, and suggestions for future research are provided.