More Related Content Similar to 1_Dissertation_Rossios_WorkingDocument.doc.docx Similar to 1_Dissertation_Rossios_WorkingDocument.doc.docx (20) 3. This study explores the relationship between, customer satisfaction and customer loyalty in
the Hospitality and Tourism Industry and more specifically investigates how customer
satisfaction and loyalty can be obtained within the restaurant context operating as under the
umbrella of a luxury resort. More specifically the current research will examine if we can
create satisfied and loyal customers for an eating establishment within a luxury resort.
The main purpose of this study is to identify not only how customer satisfaction and customer
loyalty can be achieved but how we can create loyal customers for a restaurant establishment,
within a luxury resort, providing that they are all completely satisfied with our products and
services.
A mixed research method was used, thus qualitative and quantitative research.
In the qualitative research, a sample of 6 hospitality managers were selected, all with
tremendous work experience in the industry and beyond. More specifically three food and
beverage managers, two restaurant managers and one hospitality consultant were selected.
The aforementioned professionals possessed significant experience in the hospitality and
tourism industry and they were selected and worked for several years in Mykonos Island.
The qualitative research revealed that customer satisfaction and customer loyalty are
interrelated concepts. The dyadic relationship was admitted by the majority of the
sample if certain prerequisites are such as quality service, quality of gastronomical
creations, employee attitude and personality, restaurant ambience, tailored made
waiting service over the table and relationship development prior, during and after
diners visit to insure repeated visits.
. In the quantitative research a sample of 236 diners were randomly selected to answer what
they think, perceive and interpret the issue of customer satisfaction and loyalty related to their
dining habits, desires, preferences and experiences.
The Results derived from the quantitative study detected a moderate relationship between
customer satisfaction and customer loyalty as far as the dining aspect of the
hospitality industry. Of course this conclusion applies only to restaurant establishment
located within luxury resorts in the island of Mykonos.
3
5. Table of Contents
1 Overview of the research
1.1 Introduction
1.2 Rationale of the study
1.3 Aim of the research
1.4 Overview of the methodology
1.5 Overview of research Findings
1.6 Definition of Terms
1.7 Organization of the thesis
2 Literature Review
2.1 Introduction
2.2 Features of service products
2.3 Guests satisfaction and loyalty
3 Research questions and Hypothesis statement
4 Research Design/Research Methodology
4.1 Research Philosophy
4.2 Research Approach and Strategy
4.3 Research Method
4.4 Overview of Qualitative Research
4.4.1 Population and Sample
4.4.2 Method of contact and Research Instrument/ Topic Guide
4.4.3 Collection of data Coding Reliability
4.4.4 Content Analysis
4.5 Qualitative Research – Results and Analysis
4.5.1 Objective of the Qualitative Research
4.5.2 Qualitative Data Analysis
4.5. 3 Conclusions of the Qualitative Research
5
7. 1 Overview of the research
1.1 Introduction
The last decade foodservice industry has been examined from many scholars and attracted the
interest of many entrepreneurs on how quality of service and products has influenced
customer satisfaction. Customer satisfaction is important concept evolving around the
fulfillment of customer expectation. If expectations are fulfilled exceeded the expected level,
positive confirmation is awarded, while a negative disconfirmation results when customer
experience is poorer than expected (Shemwell et al., 1998).
In the hospitality industry, different service organizations must design effective marketing
strategies to improve their competitiveness, to gain new clients and making them happy and
loyal.
Loyalty refers to commitment to purchase a product or service consistently, thus, causing
repetitive purchasing, despite situational influences and other marketing and communication
efforts to alter behavior” (Oliver 1999). Rewarding loyal customers contributes to customer
satisfaction thus, creating the best impression about a product or as service. It is very
important for a company to recognize customer’s loyalty and to offer them in return rewards.
Therefore, gaining customers in the hospitality industry can have a positive impact on
organization’s business profitability and business sustainability, improving its image within
the sector and creating loyal and steady customers.
Therefore, it is of great importance for the lodging industry to foster quality restaurant
services which count value and competitive advantage to the business by creating loyal
customers. This research effort will attempt an examination of the different elements that are
playing a major role on improving customers experience and meeting customer needs. A
literature review will be conducted to identify the nature of the two different variables and the
features that contribute to create loyal customers. Outcomes can be used from professionals in
order to upgrade the providing services within their business environment.
The present study investigates “if customer's satisfaction can attain loyalty in foodservice
industry. The case of restaurants in the luxury resorts”.
7
8. This research effort will begin stating the aim, rationale and objectives of the study, the
literature review will be developed thereafter. Research questions will be developed along
with the research hypothesis. The research methodology will precede data collection methods.
Analysis of findings and conclusions will be presented, described and analyzed.
Recommendations will be offered. A number of limitations will be discussed while the
concluding statement of this dissertation will end this specific research effort.
1.2 Rationale of the study
The increased competition urged most of the hospitality organizations to put enormous efforts
to capitalize in the hospitality and tourism market in order to attain more and more market
share. This practice became an ongoing activity since the involvement of new variables in the
industry can alter the market status of the principal players thus, creating new market leaders.
On another note, clients’ behavior analysis, organizations’ marketing strategies and tactics,
along with communication / promotional strategies are devised to target different market
segments in order to achieve business sustainability and profitability by satisfying and
creating loyal customers.
The present study will attempt to identify if there is relationship between customer
satisfaction and loyalty in the hospitality industry and more specifically will investigate if the
concepts can be applied within the restaurant environment of a luxury resort. More
specifically, this research attempt will investigate if holistic and acceptable dining services
can create steady and ‘regular’ clientele for a restaurant establishment within a luxury resort.
The overall related research questions of the study will assist us to investigate how quality of
customer service and maintenance of a steady flow of delighted and happy clients can set the
foundations for customer loyalty.
It is almost an axiom that “creating customer satisfaction and loyalty remain the primary
objective of any hospitality organization. This study will try to face this challenging
relationship and will investigate the existence of the relationship between customer
satisfaction and customer loyalty within the limits of a dining establishment within a luxury
resort.
In order to complete the study various primary and secondary sources will be used.
8
12. 2 Literature Review
2.1 Introduction
If 19th century was the one that boosted the industrial revolution and made different products
and goods more approachable to a bigger percentage of people throughout the world, 20th
century had the same impact on all kind of services, especially after the two worldwars era.
The 21th century is going to be dominated mostly by service products. The same applies for
foodservice industry. Restaurants have experienced a tremendous growth during the last few
decades. “Also, the rise in disposable income and a growing appetite for Western food has
stimulated the performance of international restaurants in developing countries” (Zhang et al.
2013, p.717).
The topic of our literature background is guest satisfactions and loyalty, and the implications
that arise for restaurant managers. A lot of researches in the past have proved that there is a
direct link between customer loyalty and profitability, since loyalty comes from customer
satisfaction (Lee et al., 2009). This had as a result a considerable interest on behalf of
marketers towards that direction. Oliver (1997, p.392) defined customer loyalty as “a
deeply held commitment to re buy or repatronize a preferred product or service consistently
in the future, thereby causing repetitive samebrand or same brandset purchasing, despite
situational influences and marketing efforts having the potential to cause switching
behaviour”. As Reichheld (2002) noted, loyal customers tend to provide honest and
constructive feedback for the goodness of the company and do not switch to competitors
because of small variations in price or service. In this context, the consumer is the most
limited resource for the company and their loyalty directly affects its profits (Edvardsson et
al., 2000). Zeithaml et al. (1996, p. 34) as well described loyalty as “expressing a preference
for a company over others, by continuing to purchase from it, or by increasing business with it
in the future”. As Prus and Brandt (1995, p.10) stated “Loyal customers repeatedly purchase
products or services. They recommend a company to others. And they stick with a business
over time”. Nevertheless, if loyalty is something that all corporates are striving for, which are
the strategies to succeed? A great deal of previous research has shown empirical evidence of a
positive relationship between customer satisfaction and loyalty (Alegre and Cladera, 2009;
Bolton and Lemon 1999; Bolton et al. 2000; Burke 1999; Chi and Qu, 2008; Chiou and Shen
2006; Cronin et al., 2000; Cronin and Taylor, 1992; Dick and Basu, 1994; Fornell et al., 1996;
Han and Ryu, 2009; Jung and Yoon, 2012; Oh, 1999; Sui and Baloglu, 2003. Oliver (1981,
p.27) defined satisfaction as: “the summary psychological state resulting when the emotion
12
13. surrounding disconfirmed expectations is coupled with the consumer’s prior feelings about the
consumption experience”. Customer satisfaction, according to Kotler (2003, p. 61), is defined
as “a person’s feelings of pleasure or disappointment resulting from comparing a product’s
perceived performance in relation to his or her expectations.” Customer satisfaction is an
index of a company’s performance and has therefore been researched a lot by marketing
practitioners and scholars (Oliver, 1999). Additionally, as Kotler et al. (2006, p.17) support
“highly satisfied customers make repeat business, are less price sensitive, remain customers
longer, and talk favorably to others about the company and its products”.
2.2 Features of service products
Customer satisfaction in general relates to the evaluation of a product or its features (Hunt,
1977). As such, customer satisfaction is usually described in the following way: “the
individual’s perception of the performance of the product or service in relation to his or her
expectations” (Schiffman and Kanuk, 2004, p.9). Kotler (2003, p. 61) defines customer
satisfaction as “a person’s feelings of pleasure or disappointment resulting from comparing a
product’s perceived
performance in relation to his or her expectations.”Nevertheless, core products in tourism
industry are directed linked with services. Lovelock (1991) defines services as “a process or
performance rather than a thing”.Kotler et al. (2010) describes that there are four main
characteristics which differentiate services from other tangible products and goods. These
four main characteristics are intangibility, inseparability, variability and perishability. These
four specific characteristics set the service product apart from the more general goods sold in
the marketplace. Each one of these characteristics, affects the tourism service in many and
different ways.
In the first place, is the intangibility of the tourism service. Experience products or services
are those that customers cannot evaluate before the purchase or consumption (Hsieh et al.,
2005). This means for our study that a restaurant cannot be easily evaluated or demonstrated
in advance of visiting it. Chang (2013, p. 536) describes that “restaurants do not sell merely
food; they sell an experience.” Much of the selling of a dinning experience is related to the
promise of quality of food and good service. According to Pantelidis (2010), the top three
factors explaining customer satisfaction are food quality, service, and atmosphere. Courtesy,
service speed, and service level of employees are as important as material product in
13
14. restaurant selection and return patronage (Qu, 1997; Sulek and Hensley, 2004). Nevertheless,
first time guests cannot be sure of what they are going to face, even if the restaurant is rated as
an upscale or if the pictures on the Internet depict such a thing. Kisang and Han (2011, p599)
suggest that .”various marketing researchers suggested that understanding the differentiation
between firsttime and repeat visitors can provide a good basis for market segmentation.”On
the other side, new media have given a lot of evaluation channels for guests as well. As
Kotler et al. (2010, p.166) supports “By gathering information, consumers increase their
awareness and knowledge of available choices and product features”.
After that, is the inseparability of the tourism service. According to Kotler et al. (2006, p.356)
“employees deliver the product of hospitality organizations, and through their delivery they
become part of the product.” This means that both the guests and the representatives of the
service providers must be present and interact when the service delivery takes place.
Kotler’s (1973, p 48) supports that “people, in their purchase decisionmaking, respond to
more than simply the tangible product or service being offered”. Since personality reflects an
individual’s psychological characteristics, it has been described as playing a tremendous role
in consumer purchase behavior ( Mowen,2000). “During the consumption experience,
various types of emotions can be elicited, and these customer emotions convey important
information on how the customer will ultimately assess the service encounter and
subsequently, the overall relationship quality” (Wong 2004, p. 369). Havlena and Holbrook,
(1986, p. 394) argue that “emotional benefits may also affect choices between alternatives
that are functionally equivalent in other aspects” In other words, we would say that
delivering a service product is an interactive process. Thus, different personalities can have a
significant effect on guests' experience. Lin and Worthley (2012) noted that personality’s
influence on guests’ emotions and impact on satisfaction consequently influenced their
postpurchase behavior. Oliver (1977, p. 319) suggests that emotion “coexists along various
cognitive judgments”. Taking into consideration this fact we can easily understand how
directly is the staff related to the satisfaction and overall experience of the guest. There are a
lot of studies indicating that employees’ satisfaction have a significant, positive effect on
customer satisfaction (Bernhardt et al., 2000; Spinelli and Canavos, 2000; Wangenheim et
al., 2007; Chi and Gursoy,2009). Furthermore, Leonard (2009) argued that satisfied
employees work more productively and creatively, positively affecting customer satisfaction
and customer loyalty. Going a bit further in bibliography, Frederick Herzberg’s (1966)
argues that to satisfy guests, employees should be satisfied within their working environment.
Thus, 'hygiene' factors must be in place. A clean working environment, fair pay, and good
relationships with ones supervisors and fellow employees are examples of 'hygiene' factors in
14
15. the work place. Contemporary hospitality management, should pay a lot of attention on such
'hygiene' factors, since they contribute significantly both on employees and guests
satisfaction.
Variability is the third characteristic that distinguishes hospitality services. Variability once
again has to do mostly with the lack of consistency on behalf of the service provider. Having
to deal with a service product, there is always a perceived risk for consumers. This perceived
risk indicates “the consumer’s perception of the uncertainty and adverse consequences in
buying a product/service from a new brand” (Dowling and Staelin, 1994, p. 119). Within the
same operation there can be many employees that deliver the same service product. Each one
of them is different with different personality, background and skills. Few studies have
focused on the impact of personal variables such as personality on customer satisfaction
(Gountas and Gountas, 2007). The personal characteristics of service providers are a key
aspect in the provision of quality service (Nickson et al., 2005). Since personality reflects an
individual’s psychological characteristics, it has been cited as having a significant role in
consumer behavior (Mowen,2000). No matter how well trained a staff is to deliver a service
product there are always going to be slight or bigger differences in the quality, the speed and
the efficiency. Even the same person can provide different kind of service from one day to
another. This is why it is said that employees are a very valuable asset in hospitality industry.
Papasolomou (2006, p.195) suggests that “people are critical to the success of organizations.
Companies that select, develop, manage and motivate their workforce to produce outstanding
business results have an extraordinary competitive advantage that others cannot copy”.
Towards the same direction Nickson (2007, p.7) suggests that “hospitality industry, is service
intensive, and consequentially depends heavily on its human resources. In each subsector, the
most highest investments, the most modern equipment and luxurious buildings will fail if the
human/personnel aspect of the organization is not carefully taken care of ”. Moreover,
Richard and Johnson (2001) argued that “human resource management strategies impact on
an organization's overall effectiveness, and that the effective utilization of human resources
can give an organization a competitive advantage.” Reading between the lines, human
resources are playing a vital role in business sustainability, since hospitality industry is mainly
service customer oriented. In that sense, strategic human resources “perceives people as
critical organizational investments, strategic resources and competitive advantages that
determine the success and failure of an organization” (Beckler et al , 2001).
Last but not least is the perishability characteristic. The characteristic of perishability means
that service products cannot be stored for sale on a future occasion. For restaurants, 20 empty
15
16. seats are lost revenues for the company that can never be recouped (Kotler, 2010). A lot of
studies supported that is the nature of tourism products that usually do not allow a built up of
inventory (Zeithaml et al, 1985; Onkvisit and Shaw, 1991). Additionally, wasted labour hours
because of poor planning, can affect organizations expenses drastically. As Nicolaud (1986,
p.57) suggested “services cannot be saved if not consumed when offered. They cannot be
stocked or held over, so that service firms find it difficult to synchronize supply and demand”.
“From the viewpoint of service providers, this means that they are not able to produce
services in advance, but have to be ready at all times to render the service” “Biege et al (2012,
p. 379). On the other hand, revenues are also lost when demand exceeds supply in service
products. Rodie and Martin (2001, p. 8) suggest that “ Because of the perishability factor,
service businesses may have no buffer inventories of service to smooth imbalances between
capacity (supply) and demand”.
The restaurant industry is mainly a service industry with the main characteristics of
intangibility,perishability, variability and inseparability. Taking into consideration all these
characteristics, restaurant managers should try to balance between complex decisions related
to higher profit margins and the expectation of high service standards. Given the fact that the
nature of tourism is a peoplebased industry with staff performance and interaction with
guests being of great importance, then we have to deal with a human medium where errors are
inevitable. Edvardsson (2005, p.128) describes “Services are produced, delivered and
consumed during – in time and space – overlapping processes in which customers have a role
as coproducers carrying out activities and deeds as well as being part of interactions which
will influence or decide both process quality and outcome quality. Therefore, service quality
perceptions are formed during the production, delivery and consumption processes”.
Grönroos (1984, p.36) suggests that “Typically, services are products which require high
consumer involvement in the consumption process. In the buyerseller interactions, during
the simultaneous parts of production and consumption, the consumer usually will find a lot of
resources and activities to notice, and evaluate”. Moreover, Gremler et al. (1994. p.34) claims
that “successful service organizations understand well the importance of carefully monitoring
and managing customer satisfaction”. The continuous improvement of the service product is a
necessity and an investment at the same time in a customer who will return more profit in the
long term.
16
17. 2.3 Guests satisfaction and loyalty
As mentioned above there has been a very long literature linking guests satisfaction with
loyalty. However, some research has suggested that the link between customer satisfaction
and future purchase intentions is weak ( Kivela et al.1999 ;Chow et al.2007; Kotler et al.
2010). Nevertheless, in order for a satisfied guest to become loyal to a company there is
usually a long way. Reichheld and Schefter (2000,p.107) suggest that “to gain the loyalty of
customers, you must first gain their trust”. Trust is a prerequisite for any successful
relationship. Moorman et al. (1992, p. 315) have defined trust as “a willingness to rely on an
exchange partner in whom one has confidence.” Gaining trust takes time, and demands the
experience of a product repeatedly. Usually, a customer’s trust in a firm has both cognitive
and affective elements (Chang and Chen, 2008). in other words, customers should experience
the same consistent quality a lot of times before becoming loyal. Torres and Kline (2013,
p.656) suggest ,“It is the customer experience that will create the feeling of delight;
experiences take place not only on a physical location but in the minds of guests. Thus, hotels
need to pay close attention to guest emotions and motivational needs.” Of course for
restaurants the core product is food and its quality. On the other hand, quality of service plays
a significant role in guest satisfaction. Andaleeb and Conway (2006) suggest that service
quality is the most important factor of customer satisfaction, and is more important than food
quality/reliability, physical design, and price. Torres and Kline (2013) show that the most
frequently mentioned attributes appreciated by diners are taking care of the guest’s needs,
friendliness, professionalism of staff, problem solving skills, followed by exceptional food
and beverage . The less frequently mentioned attributes included great facilities and
employee use of the guest name. Paradoxically, in foodservice industry the core product
which is food and beverage are not the premium satisfaction index for diners. Wu and Liang
(2009, p591) indicate that “the restaurant environment and the interaction between staff and
customers both affect the customer service encounter.” Physical environment and aesthetics
play a major role as well. Kisang and Han (2011, p.600) suggest that “ Since physical
environments are particularly influential factors towards customer reactions in hedonic
services, there is a need to understand how customer satisfaction and behavior change
depending upon customers’ perception of physical environmental elements”. Hospitality
service providers strive to ensure that every single detail of the physical atmosphere
contributes to customers’ overall satisfaction.(Heung and Gu, 2012). Blodgett (1994) argues
that crowding in leisure service environments is related to customer satisfaction. Indeed, one
of the most unpleasant experiences for dinners is overcrowded restaurants, that have a
17
18. significantly negative effect for the quality and speed of service as well. As a result, this is a
great determinant for guests satisfaction. In addition to physical environment, behavior of
employees when providing a service has a powerful influence on customers’ perceptions of
their meal experiences (Chow et al., 2007; Ladhari et al., 2008). Accordingly, service
encounter performance refers to “service delivery skills and competencies as reveled in the
service encounter” (Price et al., 1995, p. 84). The last decade there has been given a lot of
emphasis on staff skills and competencies to maximize guests satisfaction. As Torres and
Kline (2013, p.646) stated “Some researchers may suggest that in today’s dynamic business
world, employees must possess a skill set that previously was required of managers.”
A few studies suggests that guest satisfaction does not make a guest necessarily loyal
(Zeithaml et al., 1996; Hoare and Butcher, 2008). Measuring loyalty is also difficult and
complex (S.Shoemaker&Lewis,1999). Managers should be aware of this and try to improve
the quality of the services they offer continuously. There is a certain need for quality service
performance. This is why it is very important to standardize the service performance levels
that are adhered to guests. Service performances can be defined as “the perceived amount of
service attributes outcomes received” (Oliver, 1997, p. 28).Torres and Kline (2013, p.556)
suggest for managers to pay attention on service performance. “When managers spend more
time at planning for exceptional service, this action can create service quality and in term
reduce complaints in addition to their time and cost.” These programs consist mainly of
training the staff on a regular basis in order to achieve the key factor, consistency in
delivering services. According to Voss (2003, p.2) “In today’s environment,
of ever more sophisticated consumers, those who deliver memorable customer
experiences consistently create superior value and competitive advantage”. A well trained
staff is the best way to assure consistency. Consistency creates satisfied guests and enables
restaurant operations to build a solid base of repeat business. Bansal et al. (2001, p. 61)
indicate that “an increasingly serviceoriented economy asks companies to attract and retain
customers to ensure a sustainable competitive advantage”. It is also said that preventing is
much better than healing. In today' s increasingly competitive lodging environment, it is
necessary to maximize the use of people. Staff at all organizational levels must be effectively
recruited and selected, appropriately oriented and properly trained to consistently produce
results that meet established standards. Torres and Kline (2013, p. 656) stated that “when we
fulfill the esteem needs of our guests and make them feel special, when our people become
special to them, when we strive for excellence in what we do and go above expectations in
solving problems; nothing less than delight will occur.” Customer delight is when the
18
19. experience goes way beyond satisfaction (Patterson, 1997). Nevertheless, regardless of how
much a company prepares to deliver quality service, service failures are inevitable due to the
nature of the foodservice industry (Choi and Mattila, 2008). Namkung et al. (2011, p.500)
argue that “restaurant consumers are inclined to react in response to a service failure at any
service stage. Thus, managers should consider each service mistake from greeting to leaving
as equally important and should develop effective recovery strategies for all service stages”.
Failure in delivering quality service in a restaurant is one of the most significant factors
contributing to guests' dinning experience. However, customers may be staying silent about
certain problems that are crucial in their decision to exit a firm, although most defecting
customers do voice problems to the firms (Colgate and Hedge, 2001), Namkung et al. (2011.
p.501) indicates that “a restaurant customer who does not report their dissatisfaction to
management does not imply that he or she perceived the restaurant services as satisfactory.”
Kotler et al. (2006) as well supports that when customers are not satisfied with a product or
service they have to options: They can say something or just walk away. Customers that do
not say anything about their poor service experience, they give companies virtually no chance
to resolve their problem. On the other hand, customers that complain are still in
communication with the company, giving thus the chance to bring them back to a satisfied
condition. This makes the need for guests feedback very important for restaurant managers.
As suggested by Bodey and Grace (2006), it is advisable that management reward customers
for providing constructive feedback, which reinforces their complaint behavior.
Consumer complaining behavior is defined as “an action or set of actions arising out of
customer dissatisfaction” (Rogers et al., 1992, p. 81). Torres and Kline (2013, p. 645) suggest
that “ A failure to meet or exceed guest expectations is actually an opportunity to create,
delight, and convert complaining guests to delighted ones. In fact those guests who have had a
problem corrected, may be more engaged than those who have never experienced a problem.”
Foodservice industry is by its nature inclined to service failures. High volume and human
factors are very important determinants of service failure. “Service recovery is an important
means of satisfying customers after a failure has occurred” ( Johnston and Fern, 1999).
Keaveney (1995) described the failures of core service performance as “all critical incidents
that were due to mistakes or other technical problems with the service itself” (p. 76). Cranage
(2004, p. 211) suggest that: “The most obvious strategy in dealing with service failure is to
get it right the first time”.Paying attention to complaints and giving options to guests are the
first drastical steps that should be taken after a service failure. Customers should be
encouraged to bring up any minor or major problem they face during their dinning experience.
Following and recording guests complaints can serve as a data base for restaurant managers,
19
20. that could assist them improve the service provided. Wu and Liang (2009, p.586) stated that
“Customer service encounters can also provide basic information about customer preference,
and businesses can use this information to improve their service.”
Dealing promptly and properly with complaints contributes significantly to the reputation of a
company. Chang (2012, p. 537) supports that “it is worth the effort to build a strong
reputation because it will allow the restaurant to be competitive in the market”. In other
words, a good reputation makes it psychologically easier for a customer either to choose a
company or to bring to their mind positive associations (Dowling, 2006). Furthermore,
corporate reputation serves as a form of marketvalidated information (Hansen et al., 2008).
Chang (2012, p.550) stated that “Accordingly, one implication for restaurant marketers is that
while reputation might not be a “panacea” that can determine customers’ perceptions of
services or products, it is necessary to have an understanding of some important evaluative
criteria that are used by customers to assess the offerings.” As Wang et al. (2003, p. 76) argue,
“reputation plays an especially important strategic role in service markets because the
repurchase evaluation of service quality is necessarily vague and incomplete.” From a
managerial perspective, rather than focusing on competitor prices, firms should focus more on
delivering a fair or superior service at the right price and on treating their customers fairly
(MartinConsuegra et al., 2007). The best way to increase reputation of a service product like
a restaurant is an “intangible medium”. According to Kotler (1996, p. 363) “the organisation
which has a good image can count on positive word of mouth reactions and repeat customers
to bring in new business, whereby the organisation with a poor reputation will not get its fair
share of repeat customers and will receive more negative word of mouth than positive”. The
wordofmouth is the best way to make sure that a restaurant is going to provide you all that is
promising. According to the review of loyalty measurements undertaken by RundleThiele
(2005), wordofmouth is the most commonly used indicator, followed by repeat purchase
intentions. However the reputation of a restaurant is not increased only by providing quality
service, food and environment. Chang (2012, p.538) argues that “corporate reputation is not
limited to customer service but is affected by a variety of factors including financial
performance, innovativeness, treatment of employees, handling of ethical issues, and
commitment to the environment.”
Another factor that contributes significantly for customers to become loyal to an organization
is Perceived Value of a product or service. Zeithaml (1988, p. 14) defines perceived value as
“the overall assessment of the utility of a product based on the perceptions of what is received
and what is given”. Woodall, (2003:21) defines value as the ‘‘personal perception of
20
21. advantage arising out of customer association with the offerings of the organization’’. As
stated by Kotler (2003, p. 60), customer value is the “perceived monetary value of the bundle
of economic, functional, and psychological benefits customers expect from a given market
offering.” Roig et al. (2006, p. 269) built on previous research and concluded that perceived
value can generally be defined as “a judgment or a valuation by the customers of the
comparison between the benefits or utility obtained from a product, service or relationship,
and the perceived sacrifices or costs.” It is very vital for restaurant operations to monitor very
carefully the perceived value of guests. Kotler et al. (2006, p.6) suggest that “creating
customer value and satisfaction are at the heart of hospitality and travel industry marketing”.
Customer satisfaction, according to Kotler (2003, p. 61), is defined as “a person’s feelings of
pleasure or disappointment resulting from comparing a product’s perceived performance in
relation to his or her expectations.” The fact that there are loyal customers for an operation
does not necessarily mean that it corresponds to a high perceived value. For instance,
although customers feel that the performance of their current service provider is less than
optimal and not fully satisfactory, they may remain because their provider is still better than
the alternatives (Bejou and Palmer, 1998). As such, lower satisfaction is most likely a
consequence of having a higher standard for goods or services by customers (Anderson et al.,
2008). Within a global environment that is changing constantly and rapidly and everything is
interrelated, it is very vital to be aware of all the trends, challenges, innovations and
opportunities that may arise. As Chang (2012,p552) describes “the innovation of
products/services becomes a restaurant’s 'competitive weapon' with respect to exceeding
expectations” . Following contemporary trends and innovations is a very challenging and
time consuming task that requires very skilled and experienced managers. What makes this
process harder is that there are so many factors in the foodservice industry that are in constant
change, which require to be monitored, evaluated, and at the same time adjusted to the needs
and the strategy of a company. This fact, along with the fact that we experience a highly
interrelated and volatile global market, should make organizations more alert and focused on
all of the changes in global and local business environment. This means that no matter how
successful and effective an organization is, there is always space for improvement, especially
in the highly volatile and competitive global market that we are experiencing.
3 Research questions and Hypothesis statement
The following research questions were extracted from the literature review. Answers will be
provided to generic questions first, while specific research questions will follow:
21
24. 4 Research Design/Research Methodology
4.1 Research Philosophy
The current research effort focused on the positivism school of thought “ which is sometimes
called the scientific method or doing science research” (Creswell, 2009, p.14), along with
that a real world exists and operates in a logical and reasonable manner and phenomena can
be explained by general causeeffect laws. Positivism represents a worldview of an objective
reality which can be systematically and rationally investigated through empirical
investigation, and is driven by general causal laws that apply to social behavior (Guba and
Lincoln 1994). Positivism adopts the stance “that the scientific research is the only way to
discover the truth and it must be conducted in an objective manner, deterministic in purpose (
to determine cause – effect relationships), mechanistic in process and use well established
and validated methods” (Brotherton, 2008).
4.2 Research Approach and Strategy
A deductive approach was applied because “it takes the existing body of theoretical and
empirical knowledge as its primary starting point. It is embodied in the literature existing on
the issues being researched and is accessed by conducting a review of this literature to
determine the theory that will be tested” (Brotherton, 2008, p.18). Moreover, in deductive
approach by collecting the appropriate data, causal relationships between variables are
measured and explained (Saunders et al, 2012). This approach also includes the
generalisability that interprets it as “generalizing from the general to the specific” (Saunders
et al 2012, p. 144) and “appears very linear – one step follows the other in a clear, logical
sequence” . In addition, in this research the theories “need to be tested before they can be
considered valid or useful (Bryman, 2012, p.25).
As a research strategy, survey research was adopted since it “provides a quantitative or
numeric description of trends, attitudes or opinions of a population by studying a sample of
that population. It includes cross sectional and longitudinal studies using questionnaires or
structured interviews for data collection, with the intent of generalizing from a sample to a
population” (Babbie, 1990 in Creswell, 2009, p.12)
In addition, it is a procedure that communicates with and collect information from a
'representative sample' of individuals by using verbal or written questioning (Lucas, 1999)
Furthermore, “ data collected using a survey strategy can be used to suggest possible reasons
24
25. for particular relationships between variables and to produce models of this relationship”
(Saunders et al 2012, p. 177). In our case the Likert scale questionnaire attempted an
investigation of the relationship between the variables of customers satisfaction and loyalty,
which already have been tested from many researchers, in order to extract validate results .
Brotherton, (2008:114) argued that “Where previous studies have used survey methods to
obtain data and you intend to repeat or replicate one of them in your study ,there are often
good reasons to choose the same method” because “it is easier to do this when the two studies
are either identical or very similar”.
4.3 Research Method
“Mixed methods research is the type of research in which a researcher combines elements of
qualitative and quantitative research approaches for the broad purposes of breadth and depth
of understanding and corroboration” (Johnson et al, 2007, p.123) and “it is likely to overcome
weaknesses associated with using only one method as well as providing scope for a richer
approach to data collection, analysis and interpretation” (Saunders et al, 2012).
In this research, it is attempted the implementation of sequential mixed method because it “
may involve beginning with a qualitative interview for exploratory purposes and following up
with a quantitative, survey method with a larger sample so that the researcher can generalize
results to a population” (Creswell, 2009, p.14).
4.4 Overview of Qualitative Research
The qualitative research deals with meanings, perceptions and opinions of individuals besides
the engagement of small samples and nonnumerical data (words, images etc.) “Qualitative
research is a situated activity that locates the observer in the world. It consists of a set of
interpretive, material practices that make the world visible. These practices transform the
world. They turn the world into a series of representations, including field notes, interviews,
conversations, photographs, recordings, and memos to the self ” (Denzin and Lincoln 2000:
45). Furthermore, “the stress is on the understanding of the social world through an
examination of the interpretation of that world by its participants” Bryman (2012, p.380).
25
27. A topic guide was formulated, which is comprised of a list of pre set questions based on the
literature review. “A topic guide usually contains a list of the key questions which the
interviewer would like to cover, using some useful prompts to encourage the interviewee to
talk about specific issues if they do not come up spontaneously” (Quin and Cochran, 2002).
4.4.3 Collection of data Coding Reliability
In this research, qualitative data obtained through face to face in depth semistructured
interviews. All interviews were recorded and verbatim transcript prepared, in order to be as
accurate as possible.
Interviews had an open time limit and took place in the setting of the participant, in order to
feel close and within their professional environment. During the process of the interviews,
participants were asked to answer openended questions in order to investigate the research
questions. Data collected by interviews was analyzed to categorize the findings of the
research. All results were classified and labeled, with margins for notes and key words. The
entire research took place between May and July 2014, in the Mykonos island.
Emerging coding was applied as a tool to extricate and categorize the data which has been
collected through interview transcripts. According to Williams, (2008) emergent themes are a
basic building block of inductive approaches to qualitative social science research and they
are derived from the life worlds of research participants through the process of coding. In this
research, the main sources to derive names for codes were based on terms used in existing
theory and the literature (Charmaz, 2006 in Saunders et al 2012, p.569).
Inter coders reliability was achieved since data coded by at least two researchers and there
is consensus in terms of identification similar data. “Intercoder’s agreement is based on
whether two or more coders agree on codes used for the same passages in the text” (Creswell,
2009, p. 191). Additionally, Krippendorff (2004) states that analysts can check the reliability
by duplicating their research efforts under various conditions, check the similarities and
differences in readings, interpretations, responses to, or uses of given texts or data.
4.4.4 Content Analysis
27
30. The food and beverage manager A stated that “Customer satisfaction is the end
result of a combination of aspects related to the dining activity. More specifically, a
tasteful dinner, a unique restaurant atmosphere, the politeness of the waiting staff, and
the sequence of events during the dining process contribute to customer satisfaction”.
A restaurant manager A of a well known restaurant reported that “From my
experience, customer satisfaction is achieved and attained through some very
important elements such as a discipline exhibited by the entire team in the hospitality
unit which provides a high quality service, use of excellent fresh ingredients,
cleanliness of the unit, and the most significant from my point of view is the positive
and friendly attitude by the staff which makes the guest feels important”.
Fulfillment of needs and expectations
The food and beverage manager B stated that “Customer satisfaction is derived
through a series of actions. Therefore, when a guest profile is carefully evaluated and
individual needs are identified, and then service should be adjusted to meet and
exceed those needs and expectations. Actions to create positive surprise towards the
customers can occasionally be used to produce possible vociferation, “wow”, by the
guest’s side. Also, a call to offer a free bottle of wine for an upcoming guest birthday,
a red rose offered to every female guest upon entering the restaurant are all adding
positive contribution to the upcoming dining experience”.
The Hospitality consultant stated that “By providing products and services that
exceed customers’ expectations in a consistent manner in order to maintain high
standard service and always up grating the product is the main challenge and the key
to success for customer satisfaction”.
Holistic evaluative process
A restaurant manager B of famous chain of restaurants declared that “Dining
experience in food industry and especially in upscale restaurants is a holistic
evaluative experience which involves characteristics such as food quality, service
quality, ambience, music, interaction between employees and customers, just to
mention a few. Therefore, attaining customer satisfaction in food industry is a process
which requires a very carefully synchronized effort including many different factors
in order to fulfill and meet customers’ expectations”.
Another food and beverage manager C considered that “Customer satisfaction in
the restaurant business is attained only when the customer obtains whatever includes a
successful dining experience such as, delicious food served properly, distinct service
provided by the waiting personnel, appropriate ambience and exceptional overall
treatment”.
30
31. 2. How customer loyalty is created and maintained in the food industry and
especially in the various eating establishments?
The objective also of this thematic axis is to identify how customer loyalty is created
and maintained in the food industry and especially in the various eating
establishments by interviewing experts and professionals of the same industry. The
members of the sample proceeded with a number of different observations stating that
loyalty is being created after the verification of consistency, consideration of
number of factors primarily, loyalty is of temporal nature and Loyalty is the end
result of relationship development
More specifically the sample commented as follows:
Verification of consistency
The food and beverage manager A argued that “Customer loyalty in the food
industry is attained after customers’ expectations are fulfilled and upon the
completion of repeated visits. Actually, consistency in the quality of food, careful
preparation and creative presentation of the food, continuously excellent service by
the waiting staff, delicate communication by the attendant and generally friendly
environment are the elements which contribute to customers’ loyalty. Loyalty is
produced after consistency has been identified and evaluated”.
Consideration of number of factors
A restaurant manager A believes that “There should be a system in place by which
guest profiles are evaluated and recorded (names, special requirements, favorite tastes
and service styles preferred) in order to examine information that could be used by the
service personnel in order to customize individual service management. This is an
internal way of creating a guest satisfaction that lead to loyalty in the long run.
Technology or more informal ways (briefing instructions) can be used to recognize
repeaters. Other external incentive tools like loyalty cards (10th
meal or coffee is free)
could supplement the existing guest recognition system that is in place”.
The food and beverage manager C stated that “I have been working in several
luxury resorts in the Aegean, which is the center place of the Greek tourism industry
which with no doubt is the most highly competitive environment in the hospitality
context and loyalty is a major factor that always been under consideration. I have
realized that only by providing high quality services in combination with other aspect
and most importantly the aspect of value for money, only then you would be able to
fulfill the guests needs, tastes and desires. By doing so, it's on your hand to create a
link between the company and the guest, which will lead to loyalty”.
31
32. The Hospitality Consultant declared that “To gain guest loyalty in food industry
you must be the best in most of your operation (back of the house front of the house)
but still to retain loyal guests you need to follow the trends and be on the wave of
change constantly.
Loyalty and its temporal nature
A restaurant manager B believes that “Taking into consideration all these
mentioned in the first question, I would like to say that creating and maintaining
customer loyalty in food industry is rather temporal. Even if you meet or exceed most
of the factors that could lead to guests loyalty, the food trends that change rapidly in
field, along with the fierce competition, could lead customers to other options within
the industry. Let's not forget, that food is mostly part of leisure industry, where people
are in constant chase of new experiences and tastes. Nevertheless, I would like to
emphasize that there are always favorite “places” for customers but this could by
mostly for special occasions (anniversaries, birthdays etc.)”
Loyalty is the end result of relationship development
The food and beverage manager C argues that “Customer loyalty is totally relied
on trust and relationship. A customer becomes loyal when he identifies that needs,
wants, desires and expectations are fulfilled to a great extent and only then the
exhibition of trust on behalf of the customer initiates the process of formation of
customer loyalty. The process of formation should be based on the development of
long lasting relationship”.
3. How quality of food, customer service and restaurant facilities influence
customer’s holistic assessment of a restaurant establishment within a luxury
resort?
The objective of this question is to identify how quality of food, customer service and
restaurant facilities influence customer’s holistic assessment of a restaurant
establishment within a luxury resort. The respondents of the sample took several
stances and they offered different views, opinions and interpretations. They stated that
quality of food, customer service and restaurant facilities constitute “The proven
triplet to customer satisfaction and loyalty” they are “Indisputable factors to
attain customer satisfaction and loyalty and both should be developed as
branded services.
More specifically the selected sample stated the following:
The proven triplet to customer satisfaction and loyalty
32
33. The food and beverage manager A stated that “A customer selecting a high rated
restaurant within a luxury resort hotel expects that not only branded services will be
offered to him but the quality of food is not negotiable and doubtful in any case. It is
also considered given that restaurant facilities will be indicative to favorably ratings
not only operationally but decoratively as well. Summarizing, quality of food,
customer service and restaurant facilities are three of the main elements which are
considered in assessing a restaurant establishment holistically not only within a luxury
resort but generally in the restaurant business”.
A restaurant manager A reveals that “All mentioned factors are part of the dining
experience of the guests. Depending on the category (classification) of the
establishment these factors are more or less of a priority for the guests. At a high end
establishment, food quality, customer service and facilities are of top elements
considered in order to dine out. An F&B establishment that is located in a luxury
resort should focus on these 3 factors if it is to succeed. Otherwise the brand image of
luxury hotel guests will lead them to the local dining options that are outside the
resort”.
The hospitality consultant stated that “By its nature restaurant is a holistic
experience that includes a lot of attributes such as accessibility, location, service, food
and beverage, aesthetics, atmosphere, music, lighting, etc. Facilities as so are playing
a significant role in the overall dining experience of a customer and that needs to be
very carefully managed in order to influence customers positively.
Indisputable factors to attain customer satisfaction and loyalty
The food and beverage manager B believes that “These three characteristics
mentioned above, should be a “must” for each restaurant if it wants to remain viable
in such fierce competitive environment that we currently experience. As mentioned
before, there are so many other factors that should be taken into consideration,
especially with dealing with upscale eating establishments. Customers of such
restaurants have experienced plenty of other places in an international and
interconnected environment, and make no mistakes in selecting an establishment!
Unfortunately, many food industry operations underestimate the experiences and
judgment of their customers, ending up out of the “game” very fast. The
aforementioned are indisputable factors to create and maintain customer satisfaction
and loyalty”.
A restaurant manager B reports that “It’s true that there are some factors which are
playing a vital role and influence customer's perspective of a restaurant establishment.
Firstly, since we operate in the tourism industry that it is mainly serviceintensive
business, the most important aspect is the consistency in quality service which in 9
out of 10 times is always being appreciated and evaluated positively by the customers.
Definitely, the quality of food it is another aspect that contributes a lot to the guests'
33
34. positive opinion. The use of fresh ingredients vegetables, fishes, meat, poultry, fruits,
wines that the Greek nature provides us in abundance, in combination with the
contemporary Greek cuisine make the guests very pleased in dining and enjoy they
fully enjoy themselves. Another aspect is to engage each guest in the dining
experience asking him for suggestions and recommendation and provide him with
complimentary offers to enrich its dining experience. All of the above play a
significant role in influencing customer mind and constitute irreplaceable factors in
selecting an eating establishment within a luxury resort or a single restaurant
independently owned”.
Development of branded services
The food and beverage manager C considers that “Quality of food, customer
service and restaurant facilities definitely influence customer’s holistic assessment of
a restaurant establishment especially within a luxury resort simply because the
expectations of the customer are quite high. Selecting a restaurant within a luxury
resort it is similar to select a brand or branded service or close to that. Providing the
fact that a customer is expecting to receive all the promised attributes communicated
by establishment despite the additional cost, the aforementioned factors are very
important. Also, it is widely accepted that luxury establishment tend to offer the
ultimate service experience in the food industry. Finally, it should be noted that
branding restaurant services in combination with distinct “restaurant ambience” can
offer a competitive advantage”.
4. What are the contributing factors that might attract repeat diners in the
restaurants within the luxury resorts?
The aforementioned question aims to identify what are the contributing factors that
might attract repeat diners in the restaurants within the luxury resorts. The
respondents proceeded with their own views and they introduced different
argumentations reporting that the contributing factors that might attract repeat diners
are “The identity and image of the establishment and Combination of traditional
factor related to acceptable dining.
More specifically the sample participants observed the following:
The identity and image of the establishment
The food and beverage manager A supports that “The contributing factors that
might attract diners in the restaurants within a luxury hotel is the perception that a
luxury resort will have under its umbrella an excellent restaurant facility,
34
35. appropriately decorative, with a delicious menu, prepared by an experienced chef, the
waiting staff will provide high quality service always under the direct and close
supervision of the experience personnel and quality objectives of the luxury resort.
It’s common that a luxury hospitality organization has stringent rules and rigid
policies to maintain quality at any level in order to satisfy its customers and create
loyal or new customers”.
A restaurant manager B supports that “A repeat diner in the restaurants within the
luxury resorts exhibits confidence in returning to the same establishment simply
because he is convinced that quality, superb service, customer value and
gastronomically prepared food will be dominant in every visit. One more significant
factor to secure “return” to the same restaurant establishment is the image of the
luxury resort. Positive resort image will stipulate customer demand of affluent
clientele while weak resort image will discourage customers”.
Combination of traditional factor related to acceptable dining
A restaurant manager A considers that “Quality, innovation, value for money,
cleanliness, attention in details, excellent staff, and continuous improvement are the
contributing factors that might attract repeat diners in the restaurants within the luxury
resorts”.
A restaurant manager B considers that “The contributing factors in order to attract
repeat diners is the quality of the service, value for money, friendliness of the
personnel, the location of the restaurant, the ambience and of course the variety and
the quality of the food and beverages”.
The Hospitality Consultant observed that “There are some combining factors that
are of great importance in order to attract repetitive diners such as the location of the
outlet, the authentic hospitality, the friendly and unpretentious personnel, quality and
smart service, creative dishes with attention in flavor and the natural ingredients and
last but not least value for money”.
5. What is the ultimate philosophy that a dining establishment can adopt in
order to satisfy diners and make them loyal customers?
The rationale of this thematic axis is to identify what is the ultimate philosophy that a
dining establishment can adopt in order to satisfy diners and make them loyal
customers. The responses of the sample revealed a number of different views and
every member of the sample supported own argumentation and introduced their
philosophical views according to their experience arguing that the ultimate philosophy
that a dining establishment can adopt should focus on “Quality consistency since it is
35
37. The food and beverage manager C supports that “The ultimate philosophy that a
dining establishment should adopt is to design the ultimate dining mix focusing, in
nutritional quality, unique service, tasty food, polite behavior, appropriate
communication, ideal environment, proper pricing and continuous quality service
from the beginning to the end. Loyalty is a continuous effort on the behalf of
employees to secure multiple visits and to express their satisfaction by convincing
other clients to visit the restaurant establishment”.
6. How do you perceive the role of the human capital in the food industry?
The purpose of this thematic axis is to identify how the role of the human capital in
the food industry is perceived. The responses of the sample revealed the diversity of
their views and stated that Human capital is an irreplaceable factor and indeed,
the experienced personnel can create a competitive advantage
More specifically the participants of the sample responded as follows:
Human capital, an irreplaceable factor
The food and beverage manager A supports that In any business entity the
presence and the role of human capital is significant. Mostly all business activities are
initiated and operated with the contribution of human capital and only few are
conducted with the contribution of technology. In the food industry the role of the
human element plays a catalytic role not only to operate the hospitality unit but to set
the foundation for business sustainability. The cooking crew, the waiting staff, the
dining supervisors have a direct contact with the diners. The cooking crew, firstly
with an indirect contact and secondly with a direct contact since their gastronomical
creations will be served to the customers, the waiting staff and the rest of the
supervisory team have a direct contact with the customer where their behavior,
attitude and service approach will be exhibited during the dining process. If behavior,
attitude and service approach is valuated positively by the diner, the mutual
interaction will create ‘relationships’, customer satisfaction, loyal customers and long
lasting relationships with diners. Human factor is irreplaceable in any type of business
and more specifically in the hospitality industry.
A restaurant manager A states that “The role of the human capital plays a very
significant role in food industry. Let's not forget that it is an industry where customers
deal with employees throughout their whole experience. On top of that food industry
products are prepared and consumed almost simultaneously making the contribution
of human capital even more important. We could say that in food industry there is
37
38. almost no space for mistakes. I would dare to say that food industry is a human
oriented industry by every aspect”.
The food and beverage manager B supports that The human capital is the
cornerstone in building successful business in general. In the food industry and
especially in the restaurant business every activity related to the hospitality industry is
initiated and operated by the employees. Committed employees will exhibit devotion
and will guarantee high performance. Employees secure the smooth operation of any
hospitality entity, initiating and participating in various activities such as operations,
production, customer service, communication, total quality management, and holistic
quality assurance approach. In the restaurant business the presence of the employees
are prevalent, dominating and irreplaceable. Well trained and committed employees
are the conduit to present a unique quality service always with the presence of quality
food.
The Hospitality consultant declared that “Human capital is the most critical value in
food industry for the very simple reason that hospitality industry mainly provides
services and these are being delivered by human beings. There is no question that
professional and educated staff always adds a competitive advantage in our product”.
Experienced personnel can create a competitive advantage
A restaurant manager B believes that “A competitor could copy your facilities
design, concept; service styles menu offerings etc. with great success. Trying to copy
a well trained employee is very hard to do. Investing in the human capital is therefore
a strong step towards competitive advantage.
The food and beverage manager C supports that The Human capital is playing a
vital role in business sustainability, since hospitality industry is mainly
servicecustomer oriented. The key factor which shapes and identifies an organization
apart from equipment and technology is the uniqueness of skillful human resources.
7. What is the impact of restaurant employee personality towards customer
satisfaction and customer loyalty?
The purpose of this thematic axis is to solicit responses of the sample regarding the
role of employee personality and specifically what is the impact of restaurant
employee personality towards customer satisfaction and customer loyalty. The sample
argued that “employee personality is to element build customer satisfaction and
loyalty, employee personality should pursue to relationship development and
38
39. emphasized that employee personality plays an important role and indeed, is a
significant factor towards customer satisfaction and loyalty.
More specifically the participants of the sample responded as follows:
Personality as an element building customer satisfaction and loyalty
The food and beverage manager A argues that “The behavior of the restaurant
employee plays an important role in the customer satisfaction and loyalty formation
process. In any restaurant establishment the interaction between the diner and the
waiting staff has been considered a dominant factor in creating and maintain clients.
The dining process involves continuous communication and specific skills to secure
an acceptable service. The behavior, mood, politeness, discourse can have either a
positive or negative impact during a dining experience. All of the above are part of
personality traits. These personality traits define the contribution of the restaurant
employees in the customer satisfaction and loyalty formation process. Based on this
predicament any restaurant employee should exhibit a personality pattern which
advance, warmth, trust, sincerity, commitment and friendliness to the diner. Only then
the restaurant employees can contribute positively to customer satisfaction and
creation customer loyalty. Personality can be an element of building customer
satisfaction and loyalty”.
A restaurant manager A argues that “Employee personality plays an important in
the food service industry. The dining experience starts with good communication with
a purpose to create a temporary but essential ad hoc relationship which subsequently
can lead to a continuous dining acquaintance. Apathetic and indifferent behavior
contributes negatively to customer’s dining experience while a friendly and
approachable behavior facilitates to better customer service, solidifies customer
satisfaction and ignites the formation of customer loyalty. Generally, pleasant
employee personality can build relationships which consequently lead to customer
satisfaction and loyalty in the food industry”.
Employee personality should pursue relationship development
The food and beverage manager B states that “When restaurant employees take the
role of an order taker and / or food runner, guests that leave the establishment, take
with them the memory of the restaurant ambience and the taste of the food and drink,
they had. This memory will consciously or sub consciously be compared with
previous and future experiences (in terms of value for money). Once the role of the
restaurant employee becomes such that his or her personality becomes part of the
meal experience of the guest, then the guest will be attached emotionally to the
establishment and competition with equal or better food and ambience might not stand
39
