FACTORS INFLUENCING DINING EXPERIENCE ON
FACTORS INFLUENCING DINING EXPERIENCE ONCUSTOMER SATISFACTION AND REVISITINTENTION AMONG UNDERGRADUATESTOWARDS FAST FOOD RESTAURANTSCHOW KENG YONGDICKSON ONG CHEE SIANGTHAM WAI LOKWONG YIN KUANBACHELOR OF INTERNATIONAL BUSINESS (HONS)UNIVERSITI TUNKU ABDUL RAHMANFACULTY OF ACCOUNTANCY AND MANAGEMENTDEPARTMENT OF INTERNATIONAL BUSINESSAPRIL 2013
FACTORS INFLUENCING DINING EXPERIENCE ONCUSTOMER SATISFACTION AND REVISITINTENTION AMONG UNDERGRADUATESTOWARDS FAST FOOD RESTAURANTSBYCHOW KENG YONGDICKSON ONG CHEE SIANGTHAM WAI LOKWONG YIN KUANA research project submitted in partial fulfillment of therequirement for the degree ofBACHELOR OF INTERNATIONAL BUSINESS(HONS)UNIVERSITI TUNKU ABDUL RAHMANFACULTY OF ACCOUNTANCY ANDMANAGEMENTDEPARTMENT OF INTERNATIONAL BUSINESSAPRIL 2013i
Copyright @ 2013ALL RIGHTS RESERVED. No part of this paper may be reproduced, store in aretrieval system, or transmitted in any form or by any means, graphic, electronic,mechanical, photocopying, recording, scanning, or otherwise, without the priorconsent of the authors.ii
DECLARATIONWe hereby declare that:(1) This UKMZ 3016 undergraduate research project is the end result of our ownwork and due to the acknowledgement has been given in the references. ALLsources of information are in printed, electronic, or personal.(2) No portion of this research project has been submitted in support of anyapplication for any other degree or qualification of this or any other university, orother institutes of learning.(3) Equal contribution has been made by each group members in completing thisresearch project.(4) The word count of this research project is 21,227Student Name:Student ID:Signature:1) Chow Keng Yong10UKB074942) Dickson Ong Chee Siang10UKB074893) Tham Wai Lok09UKB055524) Wong Yin Kuan10UKB07490Date: 18th April 2013iii
ACKNOWLEDGEMENTSIn this section, we would like to take the opportunity to express our gratitude andappreciation to everyone who have contributed their efforts and times in helpingus to complete this research project throughout the duration of time.First and foremost, we would like to express our deepest and sincerestappreciation to Miss Malathi Nair, our supervisor for this research project whosupervised us tolerantly and patiently by providing valuable guidance, advice,support as well as motivation from the very beginning until the completion of thisresearch. Without her insightful suggestions and her dedication in guiding us, thisresearch project would not have come to completion in such a timely andprofessional manner. Her enthusiasm and encouragement for this project hadhelped us to a great extent towards completing our final year project.Secondly, we would like to acknowledge the help of Universiti Tunku AbdulRahman (UTAR) for providing us this opportunity to be involved in the process ofthis research project and to conclude our degree studies. It is important as we hadgain a lot of knowledge that will be useful and beneficial for our future.Thirdly, we would like to extent our earnest gratitude to Miss Fitriya binti AbdulRahim, the research coordinator of UKMZ 3016 Research Project for providing uswith advice and assistant in regard of the guidelines for this research project.Therefore, we able to keep on the right track for this research projects.Other than that, we would like to thank all the respondents who involved in thisresearch project for their willingness to spend their time and effort in participatingin the questionnaire survey.Last but not least, heartfelt appreciation is expressed towards each member of thisgroup as each of us has given all of our efforts and times to complete this researchproject as best as we could. This research project would not completed andfunction well without cooperation and coordination from each member.Thank you.iv
TABLE OF CONTENTSPageCopyright Page iiDeclaration . iiiAcknowledgement .ivTable of Contents . vList of Tables .xList of Figures . xiiList of Abbreviations .xiiiList of Appendices . xivPreface .xvAbstract xviCHAPTER 1 RESEARCH OVERVIEW1.0 Introduction . 11.1 Research Background .11.1.1 Fast Food .11.1.2 Fast Food Industry in Malaysia 31.1.3 Prospective Customers . 51.2 Problem Statement . 81.3 Research Objectives . 131.3.1 General Objectives 131.3.2 Specific Objectives .131.4 Research Questions . 141.5 Hypotheses of the Study .141.6 Significance of the Study . 151.7 Chapter Layout 151.8 Conclusion .16v
CHAPTER 2 LITERATURE REVIEW2.0 Introduction .172.1 Literature Review 172.1.1 Food Quality .172.1.1.1 Food Freshness .202.1.1.2 Food Presentation .202.1.2 Service Quality .212.1.2.1 Service Reliability .222.1.2.2 Service Responsiveness .232.1.3 Restaurant Environment .242.1.3.1 Cleanliness . 262.1.3.2 Ambient Scent 262.1.4 Customer Satisfaction .272.1.5 Revisit Intention 302.2 Review of Relevant Theoretical Models .332.3 Proposed Conceptual Framework 352.4 Hypotheses Development 362.4.1 The Relationship between Food Quality and CustomerSatisfaction . 362.4.2 The Relationship between Service Quality and CustomerSatisfaction . 372.4.3 The Relationship between Restaurant Environment and CustomerSatisfaction . 382.4.4 The Relationship between Customer Satisfaction and RevisitIntention.392.5 Conclusion .41CHAPTER 3 RESEARCH METHODOLOGY3.0 Introduction . 423.1 Research Design .423.1.1 Descriptive Research 423.2 Data Collection Methods .433.2.1 Primary Data . 43vi
3.2.2 Secondary Data . 433.3 Sampling Design . 443.3.1 Target Population .443.3.2 Sampling Frame and Location . 443.3.3 Sampling Elements .443.3.4 Sampling Technique .453.3.5 Sampling Size .453.4 Research Instrument 463.4.1 Questionnaire Design 463.4.2 Pilot Test . 473.5 Construct Measurement .493.5.1 Origin of Constructs .493.5.2 Scale of Measurement . 503.6 Data Processing .523.6.1 Data Checking .523.6.2 Data Editing .523.6.3 Data Coding .523.6.4 Data Transcribing .533.6.5 Data Cleaning .533.7 Data Analysis . 533.7.1 Descriptive Analysis .533.7.2 Scale Measurement . 543.7.2.1 Reliability Test 553.7.3 Inferential Analysis . 553.7.3.1 Pearson Correlation Analysis .553.7.3.2 Multiple Regression Analysis . 553.7.3.3 Linear Regression Analysis 563.8 Conclusion .57vii
CHAPTER 4 DATA ANALYSIS4.0 Introduction . 584.1 Descriptive Analysis 584.1.1 Respondent Demographic Profile . 584.1.1.1 Gender . 594.1.1.2 Age Group .604.1.1.3 Level of Education . 614.1.1.4 Current Year of Study . 624.1.1.5 Monthly Income (Include Pocket Money) . 634.1.2 Respondent General Information . 644.1.2.1 Preferred Chicken based Fast Food Restaurant .644.1.2.2 Preferred Meal Time . 654.1.2.3 Frequency of Visiting Fast Food Restaurant .664.1.2.4 Money Spent for a Meal in the Fast Food Restaurant .674.1.2.5 Reason to Dine in the Fast Food Restaurant . 684.1.3 Descriptive Statistics . .694.2 Scale Measurement . 704.2.1 Internal Reliability Test . .704.3 Inferential Analysis . 714.3.1 Pearson Correlation Analysis . .714.3.2 Multiple Regression Analysis . . 724.3.3 Hypotheses Testing . . 744.3.4 Linear Regression Analysis . .754.3.5 Hypothesis Testing . . .764.4 Conclusion .76CHAPTER 5 DISCUSSION, CONCLUSION AND IMPLICATION5.0 Introduction . 775.1 Summary of Statistical Analyses 775.1.1 Descriptive Analyses . 775.1.2 Scale Measurement . . 785.1.3 Inferential Analysis . .785.1.3.1 Pearson Correlation .78viii
5.1.3.2 Multiple Regression Analysis 795.1.3.3 Linear Regression Analysis .795.2 Discussions of Major Findings .805.2.1 Food Quality . .815.2.2 Service Quality . .825.2.3 Restaurant Environment . .835.2.4 Customer Satisfaction . . 845.3 Implications of the Study 865.3.1 Managerial Implications . .865.3.1.1 Food Quality . .865.3.1.2 Service Quality . .865.3.1.3 Restaurant Environment . .875.3.1.4 Customer Satisfaction . . 875.3.1.5 Revisit Intention . . 885.4 Limitations of the Study .895.5 Recommendations for Future Research .905.6 Conclusion .91REFERENCES 92APPENDICES .112ix
LIST OF TABLESPageTable 1.1: Fast Food Market Segments and Definition 2Table 1.2: Fast Food Restaurant in Malaysia by Total Outlets 4Table 1.3: Lists of Fast Food Chain Brands in Malaysia 7Table 1.4: Research done based on Fast Food Industry in Malaysia .12Table 2.1: Summary of Food Quality Dimensions and Comparison fromthe Past Researches .19Table 2.2: Components of the Physical Environment .25Table 3.1: Acceptable and Unacceptable Level of Cronbach’s AlphaCoefficient 48Table 3.2: Results of Pilot Test 48Table 3.3: Origin of Constructs 49Table 3.4 Sample Items of the Constructs 50Table 4.1: Gender .59Table 4.2: Age Group .60Table 4.3: Level of Education .61Table 4.4: Current Year of Study 62Table 4.5: Monthly Income Level 63Table 4.6: Preferred Chicken based Fast Food Restaurant .64Table 4.7: Preferred Meal Time .65Table 4.8: Frequency of Visiting Fast Food Restaurant .66Table 4.9: Money Spent for a Meal in the Fast Food Restaurant .67Table 4.10: Reason to Dine in the Fast Food Restaurant .68Table 4.11: Descriptive Statistics on Variables 69Table 4.12: Reliability Test .70Table 4.13: Pearson Correlation Analysis 71Table 4.14: Model Summary 72aTable 4.15: ANOVA .72Table 4.16: Coefficienta 73Table 4.17: Model Summary 75Table 4.18: ANOVAa .75x
Table 4.19: Coefficienta 75Table 5.1: Summary of Research Objectives, Hypotheses and Results .xi80
LIST OF FIGURESPageFigure 1.1: Enrolments in Tertiary Education Institution in Malaysia byLevel of Study, 2000-2010 . 5Figure 1.2: The Expenses that the Students Incur Monthly .6Figure 2.1: Influence of Institutional DINESERV on CustomerSatisfaction, Return Intention, and Word-of-Mouth .33Figure 2.2: Factor Influencing Dining Experience on CustomerSatisfaction and Revisit Intention among Undergraduatestowards Fast Food Restaurants 35Figure 4.1: Gender . 59Figure 4.2: Age Group .60Figure 4.3: Level of Education . 61Figure 4.4: Current Year of Study . 62Figure 4.5: Monthly Income Level 63Figure 4.6: Preferred Chicken based Fast Food Restaurant .64Figure 4.7: Preferred Meal Time 65Figure 4.8: Frequency of Visiting Fast Food Restaurant .66Figure 4.9: Money Spent for a Meal in the Fast Food Restaurant 67Figure 4.10: Reason to Dine in the Fast Food Restaurant 68xii
LIST OF ABBREVIATIONSAAgreeBINBachelor of International BusinessDDisagreeNNeutralSAStrongly AgreeSDStrongly DisagreeSigSignificantSPSSStatistical Package for Social ScienceUKMUniversiti Kebangsaan MalaysiaUPMUniversiti Putra MalaysiaUTARUniversiti Tunku Abdul RahmanUTMUniversiti Teknologi Malaysiaxiii
LIST OF APPENDICESPageAppendix 1.1: Major U.S. Franchises in Malaysia 112Appendix 3.1: Questionnaire . 113Appendix 3.2: SPSS Output: Pilot Test .121Appendix 4.1: SPSS Output: Respondent Demographic Profile .124Appendix 4.2: SPSS Output: Respondent General Information 126Appendix 4.3: SPSS Output: Descriptive Statistics .128Appendix 4.4: SPSS Output: Reliability Test 129Appendix 4.5: SPSS Output: Pearson Correlation Analysis .132Appendix 4.6: SPSS Output: Multiple Regressions Analysis 133Appendix 4.7: SPSS Output: Linear Regression Analysis . 135xiv
PREFACEThis research project is conducted as part of the fulfillment of the requirement forthe course of Bachelor of International Business offered by Faculty of Accountantand Management, Universiti Tunku Abdul Rahman.The purpose of conducting this research project is to investigate factors which aresignificantly influence the dining experience on customer satisfaction and revisitintention among undergraduates towards fast food restaurant. The factorsincluding food quality, service quality and restaurant environment which havesignificant influence on customer satisfaction where eventually influencing therevisit intention of consumers.This research project is conducted based upon the research conducted by Kim, Ngand Kim in 2009 where the research done based on the university dining facilitiesin United State. The research title is “Influence of Institutional DINESERV onCustomer Satisfaction, Return Intention, and Word-of-Mouth.” However, certainchanges has made to the original framework due to the adaptation to localcircumstances as well as the appropriate level of study.This research project helps to reveal the factors influencing the dining experienceon customer satisfaction and revisit intention among undergraduates towards fastfood restaurant. Factor that possess the strongest influence in customersatisfaction and revisit intention will be determined which it provide a betterunderstanding for manager of fast food restaurant.xv
ABSTRACTThe purpose of conducting this research project is to examine the factors of foodquality, service quality as well as restaurant environment that influenced customersatisfaction and revisit intention among undergraduates towards fast foodrestaurant in Malaysia. To attain the objectives of this research project, researchquestions and four hypotheses are developed and tested. Furthermore, eachhypothesis is measured accordingly and results obtained are subsequentlyexplained. Other than that, literature reviews are included in this research projectas to provide better understanding towards the influential factors on diningexperience as well as provide justification towards the research questions andresearch problems. Primary data were collected through survey questionnaire forthis research purposes and 200 sets of questionnaire were distributed to the targetrespondents which are undergraduates from several universities in Malaysia. Byusing Statistical Package for Social Science (SPSS) version 20.0, data collectedthrough survey questionnaires are able to be analyzed and results obtained arediscussed in the form of table as well as charts. In addition, major findings of thisresearch project were discussed in order to understand the relationship betweenfood quality, service quality and restaurant environment towards customersatisfaction as well as relationship between customer satisfactions and revisitintention. After this research, we acknowledge that all these factors are importantin influencing customer satisfaction, which later customer satisfaction willinfluence the revisit intention among undergraduates towards fast food restaurants.Lastly, managerial implications have been discussed to provide insight and usefulinformation to the fast food restaurateurs. On the other hand, the limitations facedin this study will be addressed and recommendations will be developed to assistfuture researchers in managing these limitation.xvi
Factors Influencing Dining Experience on Customer Satisfaction andRevisit Intention among Undergraduates towards Fast Food RestaurantsCHAPTER 1: RESEARCH OVERVIEW1.0IntroductionThis chapter will present the overview of the whole research project. The purposeof this research is to understand the dining experience on customer satisfactionand revisit intention among undergraduates towards fast food restaurants. Itconsists eight components of the studies which include the research background,problem statement, research objectives, research questions, hypotheses of thestudy, significant of the study, chapter layout and conclusion. The first part of thestudy will start with research background, problem statement and objectives togive a basic understanding of the overall study. Next, the research questions offerarguments and inquiries which needed to examine for further investigation. Thehypotheses will be developed from proposed conceptual framework. Significanceof the study will explain the importance and contribution of the study. Lastly,chapter layout of the research will be outlined and ended with conclusion.1.1Research Background1.1.1 Fast FoodToday is the era of fast food chains. Fast food restaurants are everywhereand expected to be expanding and growing over the years. Due torelatively inexpensive costs and quick, convenient service, fast-foodrestaurants have become “home away from home” for breakfast, lunch,and dinner (Kim, Hertzman, & Hwang, 2010). In addition, the hecticlifestyle in the modern world result in increasing number of peoplechooses fast food as their regular dining choice.Fast foods are quickly prepared, reasonably priced, and readily available asdiffer to home cooked food (Habib, Dardak, & Zakaria, 2011). “OxfordDictionary” defined fast food as food that can be prepared quickly andeasily and is sold in restaurants and snack bars as a quick meal or to betaken out. In other words, it is the food that requires little preparationPage 1 of 135
Factors Influencing Dining Experience on Customer Satisfaction andRevisit Intention among Undergraduates towards Fast Food Restaurantsbefore being served. Besides, Data Monitor (2005) defined fast food asfood and drinks for immediate consumption either on the premises or forconsumption elsewhere. The concept of fast food is to provide customersportable and instant meals , without spending much time in waiting thefood to be served and consumed (Ali, Aw, & Chuah,
factors influencing dining experience on customer satisfaction and revisit intention among undergraduates towards fast food restaurants chow keng yong dickson ong chee siang tham wai lok wong yin kuan bachelor of international business (hons) universiti tunku abdul rahman faculty of accountancy and management department of international business
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