Managing Service Quality, Food Quality, Price Fairness and Customer Retention: A Holistic Perspective

Abstract

In this competitive environment, organizations strive to satisfy their customer by providing best quality service at affordable and fair prices with a view to enhance their revenues. To achieve the objective of revenue maximization, organizations strive to identify the factors that help them in retaining their customers. Drawing from the signalling theory of marketing, the current study proposes a novel conceptual model representing the impact of service quality with food quality and price fairness on customer retention in restaurant sector of Pakistan. The paper underlines an important arena of knowledge for academicians as well as organizational scientists on the subject. On the basis of literature available on the variables understudy, the present study forwards eight research propositions worthy of urgent scholarly attention. The conceptualized model of the present article can also be viewed significant in unleashing further avenues for the restaurant management entities, policy makers and future researchers in the domain of managing in the service sector businesses.

The Effect of Perceived Price and Service Quality on Consumer Satisfaction of Healthy Baby Food Counters

“…In this era of globalization, companies make efforts to remain competitive and maximize profits by satisfying and retaining their customers [1]. Factors that influence customer satisfaction are service quality, safety, price, and facilities provided by consumers.…”

Role of Consumer Psychological Studies in Fast Food Industry

“…While customers are involving in buying decision then Price does an important role to select favorable products then it meets customer's expectation and satisfies those (Qalati et al, 2019;Ahmed, Naseer, Asadullah, & Khan, 2020). In fast food the industry has high appeal to form price in the light of customers expectation for getting satisfaction because customers are steadily turning from traditional food towards fast food in this situation, if the price does not meet customers expectation, then customers will turn back (Souiden, Chaouali, & Baccouche, 2019).…”

“…Dekker (2018) concludes, that some restaurants in Europe allow customers to eat meals and enjoy their services after finish it, they gives a right to customers, which they own to decide what should be paid for them. Price should be set on that level, where customers deserve it, in this situation, other customers review's also very important (Ahmed, Naseer, Asadullah, & Khan, 2020). For this purpose, the company charges low prices with new customers in order to retain it and also check the purchase history of existing customers to change their pricing strategy accordingly, to get higher satisfaction of customers (Lee & Fay, 2017).…”

“…They are creating fierce competition in the fast-food industry. People have a lot of choices in fast food and they choose those foods that are comparatively low cost and other customers also appraising it (Ahmed, Naseer, Asadullah, & Khan, 2020). There are a number of items in the fast-food industry and those items will become more popular, whose cost is low (Lastner et al, 2019), and existing customers provides favorable reviews for these items.…”

“…They found positive result after a thorough study on the behavior of Italian students concerning quality and buying decision of fast food. That's why, the fast-food industry is becoming a trend in present era due to its fair price and quality (Ahmed, Naseer, Asadullah, & Khan, 2020) hereby customers initially observe the price and quality of fast food, if it is fair, then they make their behavior regarding the purchase it (Trafialek et al 2019) otherwise, they turn back toward traditional food. The customer's experience and review's regarding company operations are very important source for new customer during purchase decision and company's also to form pricing and servicing policies (Van, 2016;Watkinson, 2013).…”