Service Quality And Customer Satisfaction In Restaurant Industry Using Partial Least Square

Service quality (SERQUAL) theory

Fundamentally Theory of Service Quality (SERQUAL) has been introduced by Parasuraman, Zeithaml, and Berry in 1988. Most of the studied in service quality applied the theory to measure the service quality in various areas included foodservice. There are five elements of services quality consist of reliability, assurance, empathy, responsiveness, and tangible assets. Reliability refers to the dependably and accurately of delivering services to customers. In restaurant practices, the service must deliver accurate information that offers and order by customers. The service and information that share to customers consistent with what the restaurant offer and practice. The second element is responsiveness which refers to the volunteering values to offer assistance to customers. The restaurant commonly is responsible and responsive to the demand of the customer to maintain and sustain customer satisfaction and loyalty ( Chen & Myagmarsuren, 2013). On the other hand, assurance relates to the service and staffs they have high courtesy when they serve customers, competency of employees to influence customers trust and confidence to the service offered. Moreover, empathy is another element that most of the restaurant needed to add in their service quality. Staffs and restaurant well understand the customer needs and demand. Finally, it is tangible that physically appear to the customer when they visit the restaurant. The facilities, furniture, equipment, ambience and personnel of staffs ( Yarimoglu, 2014).

Service quality and restaurant

Empirical studied of service quality, and restaurant highlight discussion of reliability and empathy are the most common elements that highlight in restaurant services studies. Studies conducted by Lee et al. ( 2007) investigated the internal service quality of few restaurants in Jordan found reliability and empathy are significant to increase the restaurant performance and customer satisfaction. Another finding found that reliability and tangibles are also elements to promote more customers to the restaurant ( Chowdhary & Prakash, 2007). Furthermore, Chowdhary and Prakash ( 2007) claimed elements of assurance and empathy are needed to have good communication and interpersonal relationship between staffs and customers. With those elements mentioned strongly convinced the restaurant to deliver high service quality to customers. However, the restaurant service quality is difficult to evaluate as the different assessments made to different service, theme, and operation of the restaurant. Therefore, the elements of service quality might be useful to drive the restaurant owners or managers to upgrade and deliver high service quality to the customers.

Background of respondents

As shown in Table 01 , a total of 235 respondents' shows that 150 customers group as working and 85 of them were non-working. Most of the customers visited and enjoyed the meal were among the working people. Moreover, the result indicated 57.44 per cent, which total of 135 customers was female and 42.55 per cent of 100 customers were male. The finding revealed this study dominantly responded by the female. Next, the highest number of customers which was 120 aged in between 25 to 35 years. The second higher responses were the customers who were aged 35 to 45 years old, with a total of 70 customers fast-food and only 20 of the respondents was aged 15 to 25 years old. The finding revealed that most of the customers who always visit the restaurant categorized as young and adults of this study.

Measurement model assessment

Table 02 revealed the results of the measurement model. The result of factor loading indicates that of 26 indicators was higher than 0.5, which all were loaded highly on the construct. The constructs showed the convergent validity of assurance, empathy, price, reliability, responsiveness, tangible and customer satisfaction exceeded the recommended value 0.7 of composite reliability ( Hair et al., 2010). Meanwhile, the result of the average variance extracted (AVE) is in the range of 0.564 to 0.756 and can explain that all the items tested are relevant and reliable to this study. As shown in Table 03 , Fornell Lacker analysis interpreted the indicators measuring that constructs are adequate discriminant validity. The result assesses as the AVE values of the construct do not higher than the other constructs values. According to Compeau et al. ( 1999) that constructs should load more strongly on their construct while the AVE share between each construct also should be greater than the variance shared. The Figure 01 illustrated the measurement model of this study.

Structural model

In a structural model, Table 04 showed the path coefficient estimates using bootstrapping to assess significance value which is less than 0.05 equal to t-values must greater than 1.96 and confirmed with the confidence intervals assessment. The R ² value is 0.474, suggesting that 47.4 per cent of the variance in an extent of satisfaction can be explained by assurance, empathy, price, reliability, responsiveness and tangible. Result in Table 04 revealed that assurance, empathy, price and reliability are positively related to customer satisfaction. Hence, H1, H2, H3, H4 supported by this study. Besides, explained by Cohen ( 1988) the size of the effect of 0.02, 0.15 and 0.35 are weak, moderate and strong effects. In this study, there is a small effect size of assurance, empathy, price and reliability towards customer satisfaction. While responsiveness and tangible were not statistically significant towards customer satisfaction. Thus, H5 and H6 not supported for this studied. In final, the result revealed the lower limit, and upper limit values of assurance, empathy, price, reliability did not contain zero and explained the direct effects is significantly different from zero with 95 per cent confidence except for responsiveness and tangible.

The possibility of this happens to One Serambi Café highlight the most of the customer expects the employee knowledgeable of the food and attitude of the employees are presentable to the customer. The manager practically trains the employee to prioritise the customer. This possible create customer have appreciated and priority to the restaurant. More than that, this study highlights to understand the customer feeling and emotion are important due to minimising the feeling of dissonance or frustrated. For the price, this study explained that the affordable of the customer to pay the food and service with relevant price offer to them. Customer willing to pay more if the food and services meet their satisfaction. In the final finding, the reliability of the food and service delivery consistently significant to customer satisfaction as less error or mistake able to make the customer feel happy and satisfy. The dimension of responsiveness and tangible possible were not signed with customer satisfaction because the customer perceives and judge in a critical event such as peak hour of dining in, the employee lack of volunteering to assist the customers and provide excellent service. In the final discussion, the dimension of tangible was no significant due to the interior design, layout and physical of the restaurant need some improvement to fulfil the customer demand and satisfaction. The finding of this studied had similar finding with Lee et al. ( 2007) and Munhurrun ( 2012); however, all the dimensions of service quality measured were the strongest direct effects on user satisfaction. Hence, this study explained the different setting might influence the difference finding of this study.

See Full Size >