Академический Документы
Профессиональный Документы
Культура Документы
By: Chin Jin Wen, Lim You Sheng, Oon Sze Yee and Teh Li Xing
1.0 INTRODUCTION
In general, consumer satisfaction indicates how far the output of a company meets or exceeds
customer’s expectation (Doyle, 2016). Patrons are often satisfied if the merchandise and services
successfully achieve or surpass their anticipation. Consumer satisfaction has been a primary concern
to restaurant owners due to its remarkable influence in customers’ retention, commendable reviews
and customers’ devotion (Ryu and Han, 2010, p.311). In order to survive aggressive competition
among restaurants, it is crucial for restaurateurs to attain consumer satisfaction. Hence, a clear
comprehension on the factors affecting consumer satisfaction is imperative (Iglesias and Guillén,
2004, p.377).
Customers are often pleased with their purchases when they are impressed by the goods or services.
Consumer perception is not only affected by the product itself, but also the process of obtaining or
purchasing it and the interactions that happen during the process. Thus, firms must be ready to study
the complete procedure of interaction from customers’ point of view from time to time as consumer
perception is constantly changing. For instance, when customers are constantly exposed to certain
products and they become more experienced, they will start revising the quality, value and price
fairness of those products. This is due to the fact that they incorporate practical knowledge gained
through personal involvement instead of initial judgement in their assessment of the products
(themanager.org, 2015). To further examine the relationship between consumer perception and
Page |1
consumer satisfaction, this paper provides an insight into the effect of consumer perception of quality,
Consumer perception of quality is closely related to consumer satisfaction. In several studies, the
authors examine the effect of customers’ perceived quality on their satisfaction level. Research
affirms that customer satisfaction is predominantly determined by customers’ perceived food, service
and environment quality (Djekic, et al., 2016, p.837; Aidin Namin, 2017, p.78; Ryu and Jang, 2007,
p.69).
Food quality can be defined as the level of greatness which comprises nutritional content, taste and
appearance (Potter and Hotchkiss, 1995, p.90). Firstly, there are evidences of connection between
food quality and customer satisfaction, showing that freshly served food are favoured by customers
because it is perceived to be healthy (Intan Maizura Abd Rashid, et al., 2016, p.792; Mohd Rizaimy
Shaharudin, Suhardi Wan Mansor and Shamsul Jamel Elias, 2011, p.205). According to Namkung
and Jang (2007), customers often demand for healthy and nutritious food which meet their health
requirements. Therefore, healthy food options significantly rises consumer satisfaction. This is
supported by the findings of Aidin Namin (2017, p.78) which state that nutritious and diversified
Furthermore, Djekic, et al. (2016, p.829), Namkung and Jang (2007, p.402) attest that customer
satisfaction is largely affected by the presentation and taste of food. It is found that many customers
consider the flavour and appearance of food before making purchases (Mohd Rizaimy Shaharudin,
2|Page
Suhardi Wan Mansor and Shamsul Jamel Elias, 2011). When the food looks appealing and tastes
good, customers are prone to perceive a better food quality. In addition, the significance of food
quality may differ across segments. For example, posh dining restaurants might pay higher attention
to attractive appearance and taste of food compared to fast food restaurants (Namkung and Jang, 2007,
p.404).
The way waiters or waitresses interact with customers affects the customer judgement on service
quality (Tucci and Talaga, 2008, p.10). Babakus, Bienstock and Scotter (2004, p.727) affirm that
customer satisfaction is primarily affected by perceived service quality. In this section, the researchers
focus on how consumers perceive service quality in terms of reliability, responsiveness, empathy and
consumers perceived service quality may improve. Oxford University Press (2017) defines the term
‘reliability’ as the characteristic or reality of being trustworthy. Reliability can be enhanced when
restaurant employees are able to notice every detail and attend to consumers’ requests. By fulfilling
their demand accurately, customers will be delighted and satisfied with the services provided (Aidin
Namin, 2017; Liu and Jang, 2009a, p.346). Next, responsiveness measures how fast and how accurate
the staffs are when providing services (Aidin Namin, 2017, p.79). Customers’ perceived service
quality may be improved if their demand for quick service is fulfilled, and thus leads to satisfaction.
This is discovered in a study conducted by Djekic, et al. (2016, p.837) which demonstrates that
respondents from UK pay close attention to prompt service in restaurants. Moving on to the next
determinant, empathy requires restaurant staffs to provide individualised attention to customers and
cater to their needs from time to time. By ensuring that restaurant staffs reflect on customers’
Page |3
feedbacks, consumers’ demands can be identified and this may strengthen perceived service quality
(Aidin Namin, 2017, p.79). Assurance follows as the next determinant of perceived service quality,
trust establishment between staffs and customers enable customers to feel comfortable and safe (Lee,
Although food and service quality are significant criteria in determining customer satisfaction, they
are not evaluated until customers experience them. On the contrary, environmental factors like
atmosphere and aesthetics provide obvious indications to customer and directly affect their first
impression. Thus, environment quality cannot be neglected (Ryu and Han, 2010, p.324). Greater
backing was revealed in Jalal Hanaysya’s (2016a, p.37) study which asserts that favourable
perceptions towards the physical environment of a restaurant will lead to greater customer satisfaction.
When investigating the ways customers perceive physical environment, Ryu and Jang (2007, p.69)
found that atmosphere of a restaurant is the most noteworthy aspect. The atmosphere of a restaurant
is crucial to induce positive feelings among customers and encourage consumer retention (Liu and
Jang, 2009b, p.502). Besides, attractive decorations in a restaurant is also regarded as a benchmark
of quality. For instance, the theme and decor of some theme restaurants have became their main
attribute to attract customers (Tucci and Talaga, 2008, p.9). On top of that, aesthetics also play an
important role to set apart a restaurant from its rivals. Different types of visual components such as
colour, paintings and greeneries will generate a pleasant dining environment and maximize customers’
4|Page
3.0 Consumer Perception of Value
A research by Ok, Choi and Hyum (2011, p.7) proclaims that perceived value is a crucial determinant
of customer satisfaction. Customers do not only observe the food, service and environmental qualities,
but also notice the benefits a brand can bring to the society. Consumers generally perceive the value
of goods or services through hedonic and utilitarian values as well as corporate social responsibility
(CSR).
According to Ryu, Han and Jang (2010, p.417), the emotional states of restaurant customers are
affected by two different aspects which are pleasure-oriented hedonic value and goal-oriented
utilitarian value. Utilitarian values reflect fulfillment achieved through accomplishment of functional
tasks and are emphasised during important purchases. On the other hand, hedonic values reflect the
gratification obtained from sensory pleasure and are emphasised during trivial purchases (Ryu, Han
Perceived value of customers can be improved by high hedonic and utilitarian values, thereby leading
to higher degree of consumer satisfaction. Hence, restaurant owners have to understand customers’
perceived hedonic and utilitarian values in order to take relevant actions to enhance customer
fulfillment. For instance, when hedonic and utilitarian advantages are incorporated in restaurants’
advertisements, customers’ desire to frequent a restaurant increases (Mehran Nejati and Parnia
Furthermore, there is relative difference between hedonic and utilitarian values across various
circumstances (Ryu, Han and Jang, 2010, p.417). For example, a study by Basaran and Buyukyilmaz
Page |5
(2015) found that hedonic aspects are more influential in fast casual restaurants whereas utilitarian
aspects play a more important role in fast food restaurants. This is because fast-casual restaurant
customers not only desire to satiate their appetites, but also seek pleasure during dining experience
while fast food restaurant customers usually wish to obtain their food in an efficient and time saving
Law (2016) defines Corporate Social Responsibility (CSR) as a concept regarding a company’s role
in preserving the environment, being ethical in trades and ensuring unbiased treatment of staffs, rather
than just adhering the law. Consumer perceived value can be generated through CSR activities as
they place a higher value on firms practising CSR activities. Lee and Shin (2010, p.194) also reported
that consumers’ consciousness on CSR activities and the objective of their purchase are
interdependent. Consumers tend to buy from well-behaved companies with considerable amount of
CSR activities. This is reinforced by a study which demonstrates that through CSR activities such as
offering safe and environmental-friendly products, customers’ demands can be fulfilled (Xie, et al.,
2017, p.37). For instance, consumers favour products that are produced based on approaches which
preserves the environment, as they feel better when purchasing eco-friendly products (Pickett-Baker
A considerable amount of studies by Pelsmacker, Driesen and Rayp (2005) displayed that consumers
take moral issues into account when evaluating goods or services. The article “Valuing the Customer”
in Corporate Social Responsibility Magazine (cited in Singh, Iglesias and Batista-Foguet, 2012, p.541)
provided a statistic which shows that 7 out of 10 consumers emphasize on CSR when making the
choice to purchase, and 37 percent of them has purchased ethical product during the past 3 years.
Another evidence is illustrated by certified organic restaurants which are recognised to have a higher
6|Page
level of CSR. When organic options are provided by a restaurant, the customers will perceive the
restaurant to be socially responsible and will visit the restaurant more often (Hanks and Mattila, 2016,
p.116).
Researchers have verified that price transparency and price-value-ratio are the two main determinants
in forming the perception of price fairness, which is an important measure to determine consumer
satisfaction (Ferguson and Ellen, 2013, p.409; Aidin Namin, 2017, p.78; Jalal Hanaysha, 2016a, p.37).
As price essentially affects consumers’ decisions when making purchases, it gives a huge impact on
consumer satisfaction (Herrmann, et al., 2007). In fact, several studies conclude that perceived price
fairness directly and positively impact consumer satisfaction (Jalal Hanaysha, 2016b, p.318). When
they perceive the price as sensible, they are likely to acquire the products or services repetitively (Li
Price transparency is defined as a case where both buyers and sellers are able to see the whole picture
and are fully aware of all aspects of price for any goods or services purchased or provided (Doyle,
2016). In general, consumers are not informed of the costs or other related particulars firms used to
set the price (Carter and Curry, 2010, p.762). Nevertheless, Ferguson and Ellen (2013, p.409)
proclaim that transparent pricing should be adopted to allow consumers to be aware of the change in
price.
A research by Ferguson and Ellen (2013, p.409) shows that price transparency is one of the factors
affecting the customers’ perceived price fairness. Consumers view the price as fair when the prices
Page |7
are genuinely transparent and this will stimulate an increase in their preference for one product. Carter
and Curry (2010, p.771) reported that consumers are willing to purchase a product which is price-
transparent despite the fact that its price is higher, because they acquire benefit from the information
whether the sellers notify the customers about the increase in price and the reasons behind it. There
is a positive impact on perceived price fairness when declaration of price increase is made by the
firms instead of third party. An announcement of a change in price, even if the price increase is minor,
followed by at least a minimal explanation will lead to a rise in perceived price fairness (Ferguson
and Ellen, 2013, p.409). It is also found that how consumers act in making choices as well as the
measurement of their welfare and satisfaction are adjusted consistently by transparent prices (Carter
As price-value ratio is one of the indicators to judge the consumers’ perceived price fairness, it
obliquely affects the level of consumer satisfaction to a certain extent. When it comes to selecting
their preferred brand, restaurant customers have an inclination to compare price and quality between
products of different brands so they can evaluate the perceived value and deduce how satisfied they
are (Jalal Hanaysha, 2016b, p.318; Jalal Hanaysha, 2016a, p.37). According to Hermann, et al. (2007,
p.55), customers usually regard the price offer as equitable when they view the price offer as meeting
or going beyond their expected gain from the purchases. For example, if higher price is incurred on
larger portion of food whereas lower price is offered for bulk purchase or set menus, customers will
feel that the price is fair because they pay less but obtain more (Aidin Namin, 2017, p.78). Thus,
restaurants which provide competitive goods and services at a price that matches the value it offers
are able to meet customer satisfaction as consumers favour brands which deliver greater benefits to
8|Page
them (Jalal Hanaysha, 2016b, p.318). These studies indirectly affirmed the notable relationship
5.0 CONCLUSION
In conclusion, the researchers found that consumers’ perceived quality, value and price fairness have
had a positive influence on the degree of satisfaction among restaurant customers. Consumer
satisfaction is inevitably the most fundamental underpinning for good performances of restaurants.
Hence, it is crucial for restaurant owners to devise pragmatic solutions to stimulate positive consumer
perceptions in order to have an ever-growing restaurant business. When examining how consumer
satisfaction is affected by consumer perceptions, a more thorough exploration is not feasible due to
time constraint. For example, this research primarily focused on the restaurant industry. Therefore,
advanced investigations should be carried out to provide an in-depth analysis on different sectors of
the industry such as fast-food, fine-dining and quick-casual restaurants. It is also important to take
hospitality industries into account in the future research. Moreover, this study merely looked into
factors influencing consumer satisfaction in terms of consumer perception. In order to broaden the
generalizability and assumptions, future research to provide an extensive insight into socio-cultural
aspects is suggested. On top of that, this paper investigated the effect of consumer perception in
general without taking into account the cultural difference across regions. Since consumers from
different backgrounds may focus on different criteria of a restaurant, future studies are recommended
to concentrate on the analysis of consumer perception in a specific region. To summarise, this study
concludes that consumer perception plays an important role in assessing consumer satisfaction. Thus,
restaurant owners should take consumer perception into consideration to render a satisfactory
Page |9
References
Aidin Namin, 2017. Revisiting customers' perception of service quality in fast food restaurants.
https://doi.org/10.1016/j.jretconser.2016.09.008.
Babakus, E., Bienstock, C.C. and Scotter, J.R.V., 2004. Linking perceived quality and customer
satisfaction to store traffic and revenue growth. Decision Sciences, [e-journal] 35(4), pp.713-737.
https://doi.org/10.1111/j.1540-5915.2004.02671.x.
Basaran, U. and Buyukyilmaz O., 2015. The effects of utilitarian and hedonic values on young
consumers’ satisfaction and behavioral intentions. Eurasian Journal of Business and Economics,
Carter, R.E. and Curry, D.J., 2010. Transparent pricing: Theory, tests, and implications for marketing
https://doi.org/10.1007/s11747-010-0189-2.
Djekic, I., Kane, K., Tomic, N., Kalogianni, E., Rocha, A., Zamioudi, L. and Pacheco, R., 2016.
Cross-cultural consumer perceptions of service quality in restaurants. Nutrition & Food Science,
Doyle, C., 2016. A Dictionary of Marketing. [online] Oxford: Oxford University Press. Available
through:
<http://www.oxfordreference.com/view/10.1093/acref/9780198736424.001.0001/acref-
https://doi.org/10.1108/JPBM-06-2013-0323.
Hanks, L. and Mattila A. S., 2016. Consumer response to organic food in restaurants: A serial
http://dx.doi.org/10.1080/15378020.2016.1129228.
Herrmann A., Xia L., Monroe K.B. and Huber F., 2007. The influence of price fairness on customer
satisfaction: An empirical test in the context of automobile purchases. Journal of Product &
Iglesias, M.P. and Guillén, M.J.Y., 2004. Perceived quality and price: Their impact on the satisfaction
Intan Maizura Abd Rashid, Mohd Juraij Abd Rani, Bibi Noraini Mohd Yusuf and Mohd Shahidan
Shaari, 2015. Impact of service and food quality on customer satisfaction among generation Y
for the fast food restaurant in Malaysia. Journal of Social Sciences Research, [online] Available
Jalal Hanaysha, 2016a. Testing the effects of food quality, price fairness, and physical environment
on customer satisfaction in fast food restaurant industry. Journal of Asian Business Strategy,
P a g e | 11
Jalal Hanaysha, 2016b. Restaurant location and price fairness as key determinants of brand equity: A
study on fast food restaurant industry. Business and Economic Research, [e-journal] 6(1),
pp.310-323. https://doi.org/10.5296/ber.v6i1.9352.
Law, J., 2016. A Dictionary of Business and Management. [online] Oxford: Oxford University Press.
Available through:
<http://www.oxfordreference.com/view/10.1093/acref/9780199684984.001.0001/acref-
Lee, K.H. and Shin, D., 2010. Research in brief: Consumers’ responses to CSR activities: The linkage
between increased awareness and purchase intention. Public Relations Review, [e-journal] 36(2),
pp.193-195. https://doi.org/10.1016/j.pubrev.2009.10.014.
Lee, Y.K., Park, K.H., Park, D.H., Lee, K.A. and Kwon, Y.J., 2005. The relative impact of service
quality on service value, customer satisfaction, and customer loyalty in Korean family restaurant
context. International Journal of Hospitality & Tourism Administration, [e-journal] 6(1), pp.27-
51. http://dx.doi.org/10.1300/J149v06n01_03.
Li, Z. and Chaipoopirutana S., 2014. The important factors that influence on building brand loyalty
towards Chang’ An car brand in Xi’ An City, Shaanxi, China. International Journal of Business
Liu, Y. and Jang, S.C., 2009a. Perceptions of Chinese restaurants in the U.S.: What affects customer
https://doi.org/10.1016/j.ijhm.2009.01.002.
Mehran Nejati and Parnia Parakhodi Moghaddam, 2013. The effect of hedonic and utilitarian values
on satisfaction and behavioural intentions for dining in fast-casual restaurants in Iran. British
Mohd Rizaimy Shaharudin, Suhardi Wan Mansor and Shamsul Jamel Elias, 2011. Food quality
attributes among Malaysia’s fast food customer. International Business and Management, [e-
Namkung, Y. and Jang, S.C., 2007. Does food quality really matter in restaurant? Its impact on
customer satisfaction and behavioral intentions. Journal of Hospitality & Tourism Research, [e-
Ok, C., Choi, Y.G. and Hyun, S.S., 2011. Roles of brand value perception in the development of brand
credibility and brand prestige. In: ICHRIE (International Council on Hotel, Restaurant, and
Institutional Education), ICHRIE Conference Refereed Track 2011. Colorado, USA, 27-30 July
Oxford University Press, 2017. OED Online. [online] Oxford: Oxford University Press (UK).
P a g e | 13
Pelsmacker, Driesen and Rayp, 2005. Do consumers care about ethics? Willingness to pay for fair-
https://doi.org/10.1111/j.1745-6606.2005.00019.x.
Pickett-Baker, J. and Ozaki, R., 2008. Pro-environmental products: Marketing influence on consumer
https://doi.org/10.1108/07363760810890516.
Potter, N.N. and Hotchkiss, J.H., 1995. Food Science. 5th ed. Boston: Springer US.
Ryu, K. and Han, H., 2010. Influence of the quality of food, service, and physical environment on
perceived price. Journal of Hospitality & Tourism Research, [e-journal] 34(3), pp.310-329.
https://doi.org/10.1177/1096348009350624.
Ryu, K. and Jang, S.C., 2007. The effect of environmental perceptions on behavioral intentions
through emotions: The case of upscale restaurants. Journal of Hospitality & Tourism Research,
Ryu, K., Han, H. and Jang, S.C., 2010. Relationships among hedonic and utilitarian values,
satisfaction and behavioral intentions in the fast-casual restaurant industry. International Journal
https://doi.org/10.1108/09596111011035981.
14 | P a g e
Singh, J.J., Iglesias, O. and Batista-Foguet, J.M., 2012. Does having an ethical brand matter? The
influence of consumer perceived ethicality on trust, affect and loyalty. Journal of Business Ethics,
themanager.org, 2015. Understanding and Managing Customer Perception. [online] Available at:
Tucci, L.A. and Talaga, J.A., 2008. Determinants of consumer perceptions of service quality in
http://dx.doi.org/10.1300/J038v06n02_02.
Xie, X., Jia, Y., Meng, X. and Li, C., 2017. Corporate social responsibility, customer satisfaction, and
financial performance: The moderating effect of the institutional environment in two transition
https://doi.org/10.1016/j.jclepro.2017.02.192.
P a g e | 15