- The document discusses a study on consumer behavior in restaurants. It analyzes factors like food quality, service, ambience, menu, and price that customers consider important in selecting a restaurant. - Literature review discusses various viewpoints on factors influencing consumer satisfaction and restaurant success/failure. Studies found food quality to be the most important factor for over 50% of customers. - Hypothesis testing was conducted to determine if customer ratings of restaurant attributes were statistically significant or neutral. The null hypothesis that ratings were neutral was rejected for all attributes, indicating significance.

1. 1
School of Management and
Entrepreneurship
INSTITUTE FOR INTERNATIONAL MANAGEMENT
AND TECHNOLOGY
Introduction to Research Methods
Assignment 1
CONSUMER BEHAVIOR IN RESTAURANT
Semester – 2
Academic Year 2011-12
Teaching Team
Dr. Tanuja Kaushik (Module Leader)
Mr. Gaurav Tripathi
Submitted By:
Sachin Kumar (PGDM)
Sgahlaut711@gmail.com
www.sachingahlaut.webs.com

2. 2
 Executive summary
This report is talks about the consumer behavior in restaurants and reason for the failure of
restaurants.
This report talks about the satisfaction and the quality of the food or services providing by the
restaurants and how they can improve their quality to satisfy their customers.
This report starts with introduction and literature review which I did with the help of various
articles.
Literature review discusses the view point of authors regarding restaurants and then later in the
report I have written the complete information of respondents like gender, education,
occupation and etc. Then after I applied hypothesis test which shows my null hypothesis has
been rejected or accepted and my discussion is based on that. This report ends with my
conclusion and recommendations.

3. 3
 Consumer Behavior in Restaurants:
 Objective
To find out the changing taste of the customer with emerging food chains.
To find out the reasons that restaurants fail.
To find out the common denominators of restaurants.
 Research design:
I have chosen descriptive research in which I will do the research on the basic of article and
research paper which I have collected from various sources and I will also do a survey through
questionnaires and will try to find out the changing taste of customer and reasons of restaurant
failure. I will also find out the consumer behavior in restaurant.
 Sampling Design:
1. Target Population:
The target population from which I will collect the sample would be from college students,
people from business as well as service class and from faculty members about their taste.
These people can belong to any income-group, age group, occupation and profession.
i. Elements- both sex unisex (Male/ Female)
ii. Sampling Units- person between the age of 20 to 40
iii. Geographical Region- Gurgaon (IIMT Campus)
iv. Time- January to February 2012
2. Frame of Sampling
The data would be collected from the IIMT students as well as Faculty.
3. Techniques of Sampling
The Stratified Sampling Technique is used to collect the data.
4. Size of Sample
In this research a sample size of 30 respondents is to be taken.

4. 4
 Introduction
Restaurant is a French word which means “to restore”- a place where we are restored to
strength and vigor refueling, as it were, with food.
“A successful restaurant makes everything in it, including the patrons, seem a little better
than they are.” (Cooley, M. 2001). Restaurant is a place where the people is buying their
basic need food and comes for the entertainment, reputation, good atmosphere and the best
quality of food.
The basic need of human is hunger. The human body needs food for energy and sustenance.
So that people is buying food from a fancy restaurant or a normal stall based on their
budget.
Convenience is also a factor that forces people to eat out. Many people, who don‟t have time
to prepare food at home, find restaurant convenient. There are restaurants that cater to all
segments of society.
Social occasions are also a great reason why people eat food in restaurant. Businessman
may want to think of their families to celebrate birthday, anniversaries, religious festivals
etc. in a specialty restaurant.
Entertainment is a great reason to eat out. That is why restaurants go beyond food and
provide costumes, showmanship and music to create an amusing environment. Night club
and some specialty restaurants provide sheer entertainment.

5. 5
 Literature Review-
According to Srinivasan, S., service economy is booming @ 55% in India and more is the
customer demand at economic rates because of changing external environment awareness.
He considered many researchers like Schemenner and verma in this paper. This paper talks
about shift in efficiency and also gives many provisions in this regard. (Srinivasan, S.,
2006)
The research shows that many attempts have been made to examine customer perception
about organic food available at a restaurant. The report also comprises of the factors
responsible for declining preference of the customer for the organic food. The research
concludes that women are more interested in organic food than men and they buy organic
food more frequently than men (Davis et al., 1995). Education also plays an important role
in developing consumer attitudes towards the purchase of organic product (Lea & Worsley,
2005).
Dube et al. are saying that people with higher education have more positive attitude towards
the organic products as they are more aware about the products. The purchase of organic
goods in the restaurant also depends on the income level of the consumers. The people with
higher income are more likely to purchase organic products and they have more positive
attitude. The satisfaction level of the customers also determines their attitude towards the
product. If the consumer is highly satisfied they will buy the product again (Dube et al.
2005). The process of a restaurant starts with the client when he places his order. The
service environment plays an important role in customer satisfaction. Many restaurants play
soothing music for the entertainment of its customers; many restaurants have a great
ambience which attracts the customer. The environment within the restaurant plays a very
important role in attraction and satisfaction of the customers (Yalch & Spangenberg,
1995).
Knutson et al. presents findings from a survey of 85 seniors regarding the important things
that customers consider in selecting a restaurant. He researched that two factors, Experience
and incentives are two attributes that are judges on factor and discriminate analysis. To
conclude, he also gave few implications. (Knutson, B., Beck, J. et al., 2006)

6. 6
In research done by Stevens et al., he mentioned about a reliable questionnaire called
„Dineserv‟ to know the feedback of customers visiting any restaurant. This gives an insight
about what a customer wants and what standards to be maintained and how should a
restaurant operator determine for satisfying the hidden needs of guests. (Stevens, p.,
Knutson, B., et al. 1995)
According to Vanniarajan, T., research done on increasing craze for restaurant services, he
mentions about increasing income, urbanization effect and availability of easy transport and
communication facilities in recent years. But this also creates a competitive market in food
service and forced restaurants to maintain quality and standards for a high-level customer
experience and a continuous quality improvement. This paper therefore discussed the
quality attributes considering the study done by graduate students. He concluded about five
important DINESERV variables that make it possible. (vanniarajan, T., 2009)
According to various studies, aroma helps in changing human‟s behavior and their
emotions. It can change human mood into another mood. It is also help full not making
consumer hyper at a time.(Gue´guen, N., and Petr, C., 2005) Customer satisfaction is
closely related to the customer expectations if the services able to full fill the expectations
that means they have did their job.(Farhana, N. and Islam, S., 2011)
According to Rasli, A. Main work for any restaurants with providing quality food is that
customer satisfaction. Satisfaction leads to success and attracts more and more customers.
Satisfaction is strongly related with quality. If the owner of restraints or any hotel provides
services with quality it automatically satisfied their customers. For that service provider
should check service quality measurement timely to know the level of quality they are
providing and it will also help to do some changes regarding quality improvement and it
also increase the customer‟s level of satisfaction and encourage customers to come again.
(Rasli, A. 2011)
Verma, R., Pullman, E. and Goodale, J. have done extensive literature survey and found that
case analysis of Food – Court operations at Chicago‟s O‟Hare, one of the largest and busiest
international airport terminals. Food services are mostly preference three language groups
which are English, Japanese and Spanish. The discrete choice analysis process is using

7. 7
different hypothetical changes for the four restaurants operating in the terminal‟s food court.
Customer always chose the combinations feature that they want the most and expansions in
the menus, particularly the addition of menu item. Employee is always doing interaction
with customer, reliability and speed of completing transaction. Product is covering tangible
items such as building design, printed materials, employee appearance, cleanliness levels
and branding variety. According to Clark, cross national studies are very important in
international market settings because of national difference exist, difference can be observed
and difference significant bearing on both consumer behavior and strategic decision markets
firms. (Verma, R, Pullman, E and Goodale, J., 1999)
Goyal, A. and Singh, N.P. have done the research and found that the purpose of paper seeks
are to estimating important of various factors which is affecting the choice of fast food by
Indian young customers. Goyel, A. is analysis the consumption patterns like impact of
hygiene, nutritional values and rating of various attributes of McDonald‟s and Nirula‟s. The
Indian young customer are having a passion for visiting fast food for fun and change but
home foods are the first choice. Because they has highest nutritional values followed by
ambience and hygiene. McDonald‟s have the higher score in rating differs significantly on
the seven attributes accepts “variety”. Customer is feeling that fast food is providing
additional information on nutritional values and hygiene conditions inside kitchen but fast
food is mainly focus on quality and variety of food beside the others service. There is a need
to communicate the young consumers about the hygiene and nutrition value of fast food
which is helping trust in the food provided by fast food players.(Goyal, A. and Singh, N.P.,
2007)
Markovic, S., Raspor, S. and segaric, K. have done the study on restaurant service quality.
They have the same aims which are: (a) difference between perceived and expected service
quality, (b) assess customers‟ expectations and perceptions, (c) identify the number of
dimensions for expectations and perceptions scales of modified DineServ model and (d) test
the reliability of the applied DineServ Model.
They are saying after study that perception scores are lower than expectations, its means low
level of service quality. Seven factors are telling about best explain customers‟ expectations
and two factors are telling about best explain customers‟ perceptions regarding restaurant

8. 8
service. This case study is helping to indentify the strengths and weakness of service quality
and implement an effective strategy to meet the customers‟ expectations. The most prospect
items were “accurate bill”, Clean rest rooms”, “clean, neat and dressed staff” and clean
dining areas” which is wrong under the dimensions reliability and tangibles.(Markovic, S.,
Raspor, S. and segaric, K., 2010)
 Data Analysis:
 Respondent Profile:
This survey is showing that there are 57% female respondents and 43% male respondents.
The elements of this survey are both sex unisex male and female. The majority of female
respondents are more than the male respondents and the respondents are not equal.
Female
57%
Male
43%
Gender

9. 9
The survey shows that 53% respondents are at below 30 years age group and 40%
respondents are at 30-40 years age group and 7% respondents are at 40-50 years age group.
Below 30
53%
30-40
40%
40-50
7%
above 50
0%
Age
Graduate
27%
Post Graduate
40%
Professionally
Qualified
33%
Education

10. 10
The survey shows that only 27% respondents are graduate, who 50% graduates are having
the knowledge regarding the specific food and 50% respondents don‟t know. 40%
respondents are post graduate, who 54% respondents are having the knowledge regarding the
specific food and 46% respondents are not having the knowledge regarding the specific food.
33% respondents are professionally qualified, who 43% respondents are having the
knowledge regarding the specific food and 57 % respondents are not having the knowledge
regarding the specific food.
The survey shows that 50 % respondents are know about the traditional cultural- specific
food of the ethnic tribes depicted at IIMT‟s restaurant and 50% respondents are not know
about this. All questionnaires fill up by IIMT students and faculty. The survey has done in
IIMT campus.
Yes
50%
No
50%
Knowledge regarding the specific food

11. 11
The survey shows that 56% respondents are like Food quality in the IIMT Restaurant because
restaurant is providing food, if food quality is not good customer will not go again in the
restaurant. 20% respondents are like service. 7 % respondents are like price of food. 7%
respondents are like menu. Only 10 % respondents are like ambience. The survey is telling
about that more than 50 % customer are going for quality of food.
 Hypothesis:
Null Hypothesis
H0: µi ≤ 4, where “i” is the variable that keeps on changing.
Alternate Hypothesis
H1: µi > 4, it means that scale is statistically significant.
NOTE: Here i= 1 to 22. It is the index no. for the scale items given in the questionnaire.
Service
20%
Food Quality
56%
Ambience
10%
Menu
7%
Price
7%
Factors like more in the Restaurant

12. 12
The questionnaire is based on 7 point scale ranging from
1- Highly disagree
2- Disagree
3- Slightly disagree
4- Indifferent or Neutral
5- Slightly agree
6- Agree
7- Highly Agree
For Hypothesis T-Test has been considered; this is due to the sample size and the sample
size in this paper is 30 and T-test is used, where the sample size is 30 or less than 30.
T-test has been calculated on the basis of:
T-calc. = (Average- neutral value)/ (S.D./sqrt (n))
For calculating T-tabulated we assumed that the value of the level of significance is 0.05 and
the degree of freedom is 29. In this case total respondents are 30 and the calculation of
degree of freedom is (n-1) i.e. (30-1 =29).
 Result:
T-calc.> T-tab
Null hypothesis is rejected
T-calc. < T-tab
Null Hypothesis is accepted

13. 13
S No Null
Hypothesis Alternative
Hypothesis
T-cal. T-tab .Comparison
between T-calc. and
T-Tab.
Decisions
1. µ1<=3 µ1>3 0.8105 0.6830 T-calc.<T-tab Accept
2. µ2<=3 µ2>3 1.2445 0.6830 T-calc.<T-tab Accept
3. µ3<=3 µ3>3 2.4701 0.6830 T-calc.<T-tab Accept
4. µ4<=3 µ4>3 2.9610 0.6830 T-calc.<T-tab Accept
5. µ5<=3 µ5>3 3.3673 0.6830 T-calc.<T-tab Accept
6. µ6<=3 µ6>3 2.7503 0.6830 T-calc.<T-tab Accept
7. µ7<=3 µ7>3 3.6927 0.6830 T-calc.<T-tab Accept
8. µ8<=3 µ8>3 3.2146 0.6830 T-calc.<T-tab Accept
9. µ9<=3 µ9>3 4.0471 0.6830 T-calc.<T-tab Accept
10. µ10<=3 µ10>3 5.0508 0.6830 T-calc.<T-tab Accept
11. µ11<=3 µ11>3 11.1202 0.6830 T-calc.<T-tab Accept
12 µ12<=3 µ12>3 6.5297 0.6830 T-calc.<T-tab Accept
13 µ13<=3 µ13>3 3.7882 0.6830 T-calc.<T-tab Accept
14 µ14<=3 µ14>3 5.9878 0.6830 T-calc.<T-tab Accept
15 µ15<=3 µ15>3 3.8690 0.6830 T-calc.<T-tab Accept
16 µ16<=3 µ16>3 3.9067 0.6830 T-calc.<T-tab Accept
17 µ17<=3 µ17>3 4.1344 0.6830 T-calc.<T-tab Accept

14. 14
18 µ18<=3 µ18>3 3.4148 0.6830 T-calc.<T-tab Accept
19 µ19<=3 µ19>3 4.8631 0.6830 T-calc.<T-tab Accept
20 µ20<=3 µ20>3 4.1675 0.6830 T-calc.<T-tab Accept
21 µ21<=3 µ21>3 4.2276 0.6830 T-calc.<T-tab Accept
22 µ22<=3 µ22>3 2.4145 0.6830 T-calc.<T-tab Accept
The subscript (1-22) is the indicator for statement 1-22 in the questions.
In this tables T-calc. > T-tab. Value is showing that null hypothesis (H0) has been rejected
and T-Calc. < T-tab. Value is showing that alternate hypothesis (H1) is accepted. Five of
statements in the questionnaire are related to menu. Five of statements in the questionnaire
are related to food taste, quality, Temperature. According to this survey all questionnaire are
accepted. Its means respondents are satisfy with the food quality, service, ambience, price
etc.
 Chi Square Test:
H0:- Knowledge regarding the specific food is independent of education
H1:- Knowledge regarding the specific food is not independent of education
I have applied the chi square test on the basic of questionnaire. Chi square test is used for
know the relationship between two factor. The questionnaire has two questions on the
education and Knowledge regarding the specific food. I fill up that question in IIMT campus.
The survey shows that 50% respondents know about the specific food in IIMT restaurant and
50% respondents don‟t know about any specific food. Graduate respondent are 50%, who
have knowledge about specific food. Post graduate are 54%, who have knowledge about
specific food. Professionally Qualified are 43 %, who knowledge about the specific food.

15. 15
X2
Cal > X2
tab
Null hypothesis is rejected
X2
Cal < X2
tab
Null Hypothesis is accepted
X2
Cal = 0.209
α = 0.05
X2
tab = 5.990
Comparison between T-calc. and T-Tab. = X2
Cal < X2
tab
Decision is accept.
Conclusion of Chi Square Test: - there is no relationship between Education and
Knowledge regarding the specific food which means Knowledge regarding the specific food
is independent of education.

16. 16
 Conclusion:
In the restaurant, the most important factor is food quality. The survey shows that mostly
customer are going for food quality in restaurant. Second important factor is service. After
the food quality customer are going for good service. The entire five star hotel restaurants are
giving good service. The most important factor of restaurant failure is food quality and
service. Restaurant is gaining profit which is giving good food quality, service, ambience,
menu item, and price. IIMT restaurant is giving good customer satisfactions.
 Recommendations:
 Limitation:
It is not possible to collect the data from whole region as sample size is small so only
preference to be given to Gurgaon.
Lack of chances of mistakes.
Respondents don‟t have a time to read the full questionnaire as they fill it randomly.

17. 17
 Reference:
Andrews, S. (2009) Food & Beverage Service (2nd
Ed.) New Delhi, Tata McGraw –
Hill Publishing Company Limited.
Caldwell, C., and Hibbert, S. (2002) ‘The influence of music tempo and musical
preference on restaurant patrons' behavior’ Psychology&Marketing, 19:11, pp. 895-
917. (Online) (Cited 8th
march 2012). Accessed from
<URL:http://search.proquest.com/docview/227753574?accountid=32648>
Chatna (2010), „Quotes about Restaurants‟ (Online) (Cited 10th
march 2012). Accessed
from <URL:http://chatna.com/theme/restaurants.htm>
Elsworth, J., Knutson, B., et. Al (2006), „The Two Dimensions of Restaurant Selection
Important to the Mature Market‟ Journal of Hospitality & Leisure Marketing,14:3, pp.
35-47.
Farhana, N. and Islam, S., (2011), „Exploring Consumer Behavior in the Context of
Fast Food Industry in Dhaka City‟ World Journal of Social Sciences 1:1, pp. 107-124.
(Online) (Cited 8th
march 2012). Accessed from <URL:http://wbiaus.org/7.Nadia%20-
FINAL.pdf>
Farhana, N. and Islam, S., (2011), „Consumers‟ Purchase Intentions in Fast Food
Restaurants: An Empirical Study on Undergraduate Students‟ The Special Issue on
Contemporary Issues in Business and Economics 2:5, pp.214-221. (Online) (Cited 13th
march 2012). Accessed from
<URL:http://www.ijbssnet.com/journals/Vol._2_No._5_[Special_Issue_-
_March_2011]/27.pdf>
Gue´guen, N., and Petr, C., (2005), „Odors and consumer behavior in a restaurant‟
Hospitality Management, 25. Pp. 335-339. (Online) (Cited 14th
march 2012). Accessed
from <URL:http://nicolas.gueguen.free.fr/Articles/IJHM2006.pdf>
Goyal, A., Singh, N. (2007), „Consumer perception about fast food in India:an
exploratory study‟ British Food Journal, 109:2, pp. 182-195. (Online) (cited 21th
January 2012). Accessed from <URL: www.emeraldinsight.com/0007-070X.htm>
Kivela, J., Inbakaran, R. et al. (1999), ‘Consumer research in the restaurant
environment, Part 1: A conceptual model of dining satisfaction and return patronage’
International Journal of Contemporary Hospitality Management, (Online) (Cited 19th
march 2012). Accessed from
<URL:http://search.proquest.com/docview/228369769?accountid=32648>

18. 18
KOEPPEL, F., (2010), „What is a Restaurant? A Place „To Restore‟ Patrons with Food‟
The Daily news, London, 29th
November 2010, 125:231, (Online) (Cited 15th
march
2012). Accessed from
<URL:http://www.memphisdailynews.com/editorial/Article.aspx?id=54521>
Peters, T. (2012), ‘Understanding Consumer Involvement Influence on
Consumer Behavior in Fine Restaurants’ The Business Review,3:2, pp. 155-160.
(Online) (Cited 18th
march 2012). Accessed from
<URL:http://search.proquest.com/docview/197303460?accountid=32648>
Markovic, S., Raspor, S. et al (2010), DOES RESTAURANT PERFORMANCE
MEET CUSTOMERS‟ EXPECTATIONS? AN ASSESSMENT OF RESTAURANT
SERVICE QUALITY USING A MODIFIED DINESERV APPROACH‟ Tourism and
Hospitality Management,16:2, pp.181-195. (Online) (cited 9th
march 2012). Accessed
from <URL:hrcak.srce.hr/file/93311>
Mill, R. (2010) Restaurant management customer, operation and employees (3rd
Ed.),
Noida, Dorling Kindersley Pvt. Ltd.
Srinivasan, S. (2010), „A Case Based Study of Shifting of Efficiency Frontier in Indian
Services Industry‟ Indian Institute of Management, 20:438, pp. 1-41.
Stevens, P; Knutson, B. et al. (1995), „Dineserv: A tool for measuring service quality in
restaurant‟ Cornell Hotel and Restaurant Administration Quarterly; 36:2,, pp. 56- 60.
Vanniarajan, T. (2009), ‘Dineserv: A Tool for Measuring Service Quality in
Restaurants‟ Journal of Marketing & Communication, 4:3, pp. 42-52.
Verma, R., Pullman, M. et al (1999), „Designing and positioning food services for
multicultural markets‟ Cornell Hospitality Quarterly, 40:6, pp. 76-87. (Online) (Cited
9th
march 2012). Accessed from
<URL:http://search.proquest.com/business/docview/209699903/1342E162F34433387E
6/37?accountid=32648>

19. 19
 APPENDIX:
Questionnaire: Dear respondent, I, Sachin Kumar, want you to fill this questionnaire on
“Consumer Behavior in IIMT Restaurants”. Please give your valuable time.
Personal Details
Gender: Male Female
Age: Below 30 30-40 40-50 above 50
Education: Graduate Post Graduate Professionally Qualified
Occupation: Business Student Professional Housewife
Government Service Retired
Yearly [family] income: Below 4 lakhs 4 lakhs to 8 lakhs
above 8 lakhs
1. Which of the following factors you like more in this restaurant?
Service Food Quality Ambience Menu Price
Other ………………..
2. Do you have any knowledge regarding the traditional cultural-specific food of the ethnic tribes
depicted at IIMT‟s Restaurant?
Yes No
3. Do you have any knowledge regarding the traditional cultural-specific food of other tribes or
nationalities?
Yes No
If Yes please specify……………………
4. How satisfied are you with the whole meal experience offered at IIMT‟s Restaurant?
Totally dissatisfied dissatisfied neutral
Satisfied totally satisfied

20. 20
The following set of statements relate to your opinions about the Restaurant. Please show
the extent to which you think the Restaurant possess the features described by each statement
by ticking one of the seven numbers next to each statement. If you agree to the maximum,
please tick 7, and if you agree the minimum please tick 1. 1- Highly disagree,
2- Disagree, 3- Slightly disagree, 4- Indifferent or Neutral, 5- Slightly agree
6- Agree, 7- Highly Agree
5. A complete traditional menu 1 2 3 4 5 6 7
6.menu with some traditional dishes 1 2 3 4 5 6 7
7.A menu with traditional ingredients prepared in a western manner 1 2 3 4 5 6 7
8.The current menu 1 2 3 4 5 6 7
9.Presentation or appearance 1 2 3 4 5 6 7
10.Taste of the food 1 2 3 4 5 6 7
11.Temperature of the food 1 2 3 4 5 6 7
12.Menu item variety 1 2 3 4 5 6 7
13.Food quality 1 2 3 4 5 6 7
14.Authenticity of the food 1 2 3 4 5 6 7
15.Friendly, polite and helpful staff 1 2 3 4 5 6 7
16.Attentive staff 1 2 3 4 5 6 7
17.Efficient service 1 2 3 4 5 6 7
18.Staff have food and beverage knowledge 1 2 3 4 5 6 7
19.Staff have culinary heritage knowledge 1 2 3 4 5 6 7
20.Sympathetic handling of complaints 1 2 3 4 5 6 7
21.Restaurant‟s temperature 1 2 3 4 5 6 7
22.Restaurant‟s appearance 1 2 3 4 5 6 7
23.Décor (Table setting, crockery and cutlery) 1 2 3 4 5 6 7
24.Staff appearance 1 2 3 4 5 6 7
25.General excitement a place generates 1 2 3 4 5 6 7
26.Music 1 2 3 4 5 6 7
Thank you very much for your participation and for completing the “dining meal experience”
questionnaire.
Your participation and time are greatly appreciated.