The impact of customer satisfaction, service quality and brand image on customer loyalty towards the restaurants of the tourist

Researchbackground

Since Vietnam joined the WTO in 2007, it has emerged as a prime destination for tourists, thanks to its stunning natural landscapes and unique cuisine The hotel and restaurant industries are pivotal in enhancing the tourist experience, with hotels providing essential services related to the destination and restaurants showcasing local culinary delights This synergy between hotels and restaurants aims to attract global visitors, leading to the establishment of numerous resorts that offer both accommodations and dining options Typically located near beaches, these resorts cater to tourists seeking to enjoy the beautiful surroundings, with restaurants playing a vital role in delivering authentic cuisine Ultimately, hotels serve as the main profit centers for resorts, as travelers often book overnight stays, contributing significantly to the overall tourism economy.

ButinHoChiMinhCity,resortshaveindividualcharacteristicwhererestaura ntserv icesalsoplaydominantrolenotlessthanhotelservices.Thereasonisduetot h e demandsofcustomers.Intable1.1,thenumberofrespondentwhovisittoHoChiMi nhcitybyattractivesideis43%andis smallerthantherespondent whov i s i t to otherprovince As aplaceinwhichhav e manysmallriversandlackofmount ainorbeach,HoChiMinhCityhasnotadominantpoint about beautifuls i g h t compare tomanyprovincesinw h i c h h a v e beach o r m o u n t a i n butHo ChiMi nhcitycanbethoughtasaplacewheretouristcanenjoydeliciousVietnamesef o o d a n d c u i s i n e s f r o m a r o u n d t h e g l o b e , i n c l u d i n g F r e n c h , I n d i a n ,

M e x i c a n , Italian,Japanese,ThaiandChinese.Forthisreason,touristvillageinHoChi Minhcityhadgrownandcanbeseenasatypeofresorts.Intable1.2,thenumbero fr e s p o n d e n t whovisittothetouristvillagebyattractivesideis36%.Thisisasmall percentagecomparingtotherespondentof whovisit tostarhotelanditimplie sth at touristvillagehasnotattractivelandscapeforvisitors.

Intable1.3,thestructureofaverageexpenditureoutoftourforforeign visitorsint h e to ur is t v i l l a g es h o w s th at ex p e n d i t u r e tof o o d is 4 8 3 % as t h e h i g h e s t va lu e comparedtotheexpendituretofoodofotheraccommodations.Thisme ansthatint o u r i s t v i l l a g e , r e s t a u r a n t w h i c h s u p p l i e s f o o d a n d b e v e r a g e playa n importants o u r c e ofprofitcomparedtootherhotelswhichhaverestaurantcom ponent.

While our tourist village primarily focuses on cuisine services, which significantly contribute to its profits, visitors can enjoy a variety of experiences beyond traditional dining The tourist village features a spacious restaurant, hotel accommodations, yacht services, and fishing excursions Its sophisticated structure enhances the overall customer experience, with the restaurant playing a pivotal role in attracting guests Although the restaurant is part of the tourist village's supply chain, it faces strong competition from numerous establishments in Ho Chi Minh City that offer both Vietnamese and international cuisine To thrive in this competitive landscape, the restaurant within the tourist village must strategically reposition its value along two key dimensions.

Thefirst,therestaurantmanagershoulddefinecustomerdemands.Understandingcust omerdemandsaswellasanalyzingfactorsinfluencingtocustomerloyaltyisak e y tomaker estaurant’ssuccess.

Thesecond,therestaurantmangershoulddefinerestaurantstrengthandcharacteri n arelationshipwithotherservicesofTouristvillage.Definingtheircharacterisve ryimportantanditrequiresdefinetheirbrandimageoncustomerperception.

Numerous studies have examined customer loyalty in the restaurant industry to identify the factors that influence it and provide valuable insights for restaurant managers Previous research has primarily focused on the key elements that impact customer loyalty For instance, Cevded Avcikurt and Murat Dogdubay (2008) highlighted the significance of food quality, service quality, ambiance, and convenience as critical determinants of customer loyalty.

Recent studies have explored customer loyalty in Vietnam's tourist villages, particularly focusing on the tourist village of Da Lat Nguyen Thi Tuyet Loan (2011) examined how service quality and customer satisfaction influence loyalty, identifying key factors such as price and service quality However, there is a lack of research specifically addressing customer loyalty in restaurants within these tourist villages Understanding the determinants of customer loyalty in restaurants may differ from previous studies due to unique characteristics Therefore, it is essential to investigate customer loyalty in restaurants located in tourist villages in Ho Chi Minh City to develop effective marketing strategies, enhance restaurant profitability, and establish competitive advantages for the tourist village.

Problemdefinition

Int a b l e 1 4,t h e n u m b e r o f t o u r i s t f o r e i g n e r r e s p o n d e n t w h o d e c i d e t o v i s i t Vi etn a m byfriends, r e la t i o n s i n t he t o u r i s t v i l l a ge is 1

8 2 % a n d is smallert h a n o t h e r a c c o m m o d a t i o n s T h i s meanst h a t t h e i m p r e s s i o n o f v i s i t o r s t o t h e t o u r i s t village isnothighandtheyarenotwillingtointroduc etotheirrelationsorfriends.Itisasignaltoconsideraboutthecustomerloyaltyforward stothetouristvillageaswellastotherestaurantofthetouristvillage.

Intable1.5,thenumberoftouristforeignerrespondentonbestimpressionf o r w a r d s t othetouristvillageis30.3percentforlandscape,and30.3percentforcheap c o m m o d i t i e s T h e p e r c e n t a g e o f r e s p o n d e n t t o l a n d s c a p e o f t h e t o u r i s t villageissmallerthanotheraccommodationssoitcanbeconsid eredthatlandscapei s n o t a n a d v a n t a g e s i d e o f t o u r i s t v i l l a g e O n t h e o t h e r h a n d , c h e a p valuemakesstrongimpressionforvisitorforwardstothetouristvillagecompared

In the competitive restaurant industry, factors such as beautiful surroundings and affordable pricing significantly influence customer loyalty, particularly in tourist villages For instance, restaurants in Ho Chi Minh City's Tan Cang tourist village are focusing on reducing buffet prices and setting attractive menus to draw in customers Meanwhile, the management at Van Thanh tourist village is enhancing their green area policies to ensure a clean and appealing environment for patrons However, internal statistics from Tan Cang suggest varying levels of effectiveness in these strategies across different tourist villages.

6),duringt hetimeo f p r i c e r e d u c i n g a n d g r ee n a r ea s p o l i c y taken,t h e t o t a l o f r e v e n u e o f r e s t a u r a n t d e c r e a s e d s l i g h t l y b e c a u s e o f t h e amounto f c ustomerr e d u c i n g S o , w h a t arefactorswhichinfluenceincustomerloyaltyintheres taurantofthetouristv i l l a g e inHoChiMinhcity?

Anotherp r o b l e m i s t h a t o n t h e t o u r i s t v i l l a g e , r e s t a u r a n t i s a p a r t a n d w h e n managersneedaninvestment,theyf a c e financialpressure.Besideres tauranti n v e s t m e n t , managermustf i g u r e o u t w h a t i t e m s n e e d i m p r o v i n g a n d s h o u l d b e invested.Asaresult,withthelimitationoffinancialsource,whatshouldma nagersi n v e s t torestauranttobringthemostvaluesforcustomer?

Clearly,keepingcustomer,creatingcustomerimpressionisnoteasyanditmustbec o n s i d e r e d carefully.T h i s t h e s i s i s tos u p p l y b a s i c a n d u s e f u l i n f o r m a t i o n f o r r e s t a u r a n t manageronthetouristvillagefindingoutthebestsolution.

Researchquestions&objectives

Whatare th e d e t e r m i n a n t s o f customerlo ya lt y int h e r est au ran to f t h e to ur ist

Byd e f i n i n g t h e f a c t o r s impactingo n customerloyalty,the r e s t a u r a n t man agerca nmakef u l l sol ut io n strategiestoattract customer.Andwhenconsideringasystematicsolution,itcaneliminatethed i s a d v a n t a g e sideofdecisionsonmarketing.

Whatis t h e modelt os h o w t h e l e v e l o f influencesa f f e c t t o customerl o y a l t y f o r w a r d t o t h e restaurant ofthe touristvillage?Bya d d r e s s i n g t h e modelofcustomerloyalty,therestaurantmanagercandefinewhatshouldinvestinali neofp r i o r levels Itisnecessary inaccordancewith limitingfinancial sourc e.Ontheo t h e r hand,throughthemodelofcustomerloyalty,itcansupplywhatm odelfort h e connectionbetweenrestaurantserviceandotherservicesonthetouristvillage.

Researchdelimitation

Theresearchonlyfocusedonsomefactorsaffectingtocustomerloyalty,includingcustomer satisfaction,servicequalityandbrandimage.Nextstudycanfocusont h e f u l l o f i m a g e c o m p o n e n t a f f e c t i n g t o customerloyalty.Bya d d r e s s i n g t h e e f f e c t oftheimagetocustomerloyalty,restaurantmanagercanbuildanimageoft h e restaurantproperly.

Ther e s e a r c h w a s n a r r o w e d t o t h e a g e l o w e r 1 3 yearso l d T h e r e s e a r c h onlyf o c u s e d onadultswhohadenoughknowledgeandmadedecisiontorevisito rnot.N e x t s t u d y c a n w i d e n t h e frameworko f a g e t o a d d r e s s f a c t o r s i n f l u e n c i n g i n youngcustomerloyalty.Insomecases,childrenhavethepowertoco nvincetheirp a r e n t s choosingasuitablerestaurantofthetouristvillage.

Theresearchdidnotfocusonthevarietyofcustomers,nottoseparatetheresultf o l l o w toage,gender.So,theresultofthisresultonlysuppliestheoverallpictureofcust omerloyaltyintherestaurantofthetouristvillageinHoChiMinhCity.

Researchmethodologyandresearchdesign

Thes t u d y u s e d a s u r v e y t o r e c e i v e i n f o r m a t i o n o f customers.T h i s s u r v e y w a s c o n d u c t e d attwosites: TanCangtouristvillage,andVanThanhto uristvillage.T h e r e weretotalof2 3 0 samplessenttocustomers whovisitin gtores ta ura nt of thesetouristvillage.Thereweretotalof205sampleswhichwerer eceivedtodatacoll ecti on.

Asmentionedabove,theresearchnotonlysuppliedanoverviewpictureofcustomerl o y a l t y i n t h e r e s t a u r a n t o f t h e t o u r i s t v i l l a g e , b u t a l s o f o u n d o u t t h e m odelo f t h e i n f l u e n c e s a f f e c t i n g t o customerl o y a l t y i n a c c o r d a n c e w i t h t h e hierarchy.Throught h e r e s u l t , managersc a n makeac o n c l u s i o n whatshouldc o n s i d e r whenmakingasystematicstrategy.

Chapter1:Introduction.Thischapteristosupplyabriefoverviewoftheresearchback ground,problemsandobjective.Thischapteralsodefinesthelimitation,themeth odandthesignificantvalueoftheresearch.

Chapter2:Literaturereviewandconceptualmodel.Thechaptercomprisesadeeprevi ewo f l i t e r a t u r e asw e l l a s p r e v i o u s r e s e a r c h B a s e d o n l i t e r a t u r e r e v i e w , conceptualmodelwasbuilt.

Chapter3:Researchmethodology.Thischapterfocusesonresearchprocess,d e f i n e me asurements,preliminaryassessmentandmethodstocollectsamplesandt o analyzedat a.

Chapter4 : D a t a a n a l y s i s a n d r e s u l t s T h i s c h a p t e r c o m p r i s e s t h e o f f i c i a l assessmentofmeasure,hypothesistestinginaccordancewiththreere staurantoft h e touristvillage.

Thisc h a p t e r p r o v i d e s a n o v e r v i e w o f a v a i l a b l e r e s e a r c h o n c u s t o m e r l o y a l t y inr e s t a u r a n t industryaswellassuppliestherelevanttheories.Basedonthelitera turer e v i e w , theconceptualframeworkisbuilt.

Customer loyalty is a crucial concept in marketing, referring to the attachment customers have to a company's products, services, and personnel (Jones and Sasser, 1995) It plays a vital role in retaining customers, encouraging repeat purchases, and ultimately increasing revenue and profit As competition intensifies with the emergence of new companies, a firm's survival and growth increasingly rely on fostering customer loyalty Companies strive to retain customers to minimize the likelihood of them switching to rival brands Nguyen and LeBlanc (2001) define loyalty as the customer's ability to resist switching to another brand Depending on the type of product or service, loyalty can be characterized by a customer's willingness to return to a service provider or engage in repeat purchases of a product.

Inthethesis,thedefinitionofloyaltyisregardedtotheattachmentofcustomertoacomp any’sproducts,servicesandpeople.Moreover,itsconceptfocusesonthef o l l o wi ng mainpoints:

Thefirst,loyaltynotonlyfocusesoncustomer’srepurchasingactivitybutalsothei n t e n t i o n t o r e c o m m e n d a n d m a i n t a i n a p o s i t i v e t o w a r d s t h e s e r v i c e p r o v i d e r ((Bloemeratal.,1999,GremlerandBrown1999,ShoemakerandLe wis1999).Ih i g h l y a p p r e c i a t e a c u s t o m e r ’ s p o s i t i v e a t t i t u d e b e c a u s e itl e a d s t o b e h a v i o r a l customer,notonlyrepurchasing,revisitingproduct sorservicebustalsodecidetot h e resistanceofswitchingtoanotherbrand.

Thes e c o n d , b e c a u s e o f m y t h e s i s f o c u s i n g o n s e r v i c e f i e l d , loyaltyi s m oret o concentrateoncustomer’srevisitingtouseservicethancustomer’savailabil ityofp u r c h a s i n g toproducts.Itshowstheeffectivenessofarestaurantnotonlytri estosel l foodsandrelevantservicesbutalsotoattachcustomerforlongtime.A c c or d i n g toDickandBasu(1994)andStanketal.,

Thet h i r d , c u s t o m e r l o y a l t y i s l o n g t e r m c o m m i t m e n t t o r e p u r c h a s e p r o d u c t s , serv ices overtime.Thissidereflectstothemaincharacterof customerloyalty.Itr e q u i r e s thatserviceprovidermustalwaysfocusoncustom erloyaltyandonther e t u rn i n g , possessingcustomerloyaltyalsoistopossessthev alueofcustomerforl o n g time.Whencustomersareloyal, theyaretrusttotheser vicesandtheyarer e ad y torepurchaseeventhoughhavingotherbrandsattractingtothem.

Becausethedefinition ofloyaltynotonlyregardstothecustomer’srepurchasebutal so f o c u s o n t h e p o s i t i v e a t t i t u d e t o s e r v i c e , p r o d u c t s f o r a l o n g time,sot h e s p e c i a l i s t s c o n s i d e r e d l o y a l t y i n c l u d i n g b e h a v i o r a l a n d a t t i t u d i n a l d i m e n s i o n s A c c o r d i n g t o K a n d a m p u l l y a n d S u h a r t a n t o ( 2 0 0 4 ) , l o y a l t y i s a c o n c e p t w h i c h c o v e r s thebehavioralandattitudinaldimensions.Th esedimensionsfocusonhowcustomersr e s p o n d t o p r o d u c t s , s e r v i c e s a s w e l l a s t h e a t t i t u d e t o recommend,i n t r o d u c e p r o d u c t s , s e r v i c e s t o o t h e r s R e s e a r c h e r s f o u n d t h a t t h e s e d i m e n s i o n s show t h e i m p o r t a n c e o f c u s t o m e r l o y a l t y t o r e s t a u r a n t ’ s p r o f i t T h e c u s t o m e r ’ s b ehav io r on r e p e a t d i n i n g f o r a s p e c i f i c r e s t a u r a n t i s t h e b e h a v i o r a l d i m e n s i o n (Bowen &Shoemaker,1998).Attitudinaldimensionreferstoacustomer’si n t e n t i o n onaaspecific restaurantandrecommend(Getty &Thompson, 1

994) Attitudinal andbehavioraldimensionsarelogicallyintegratedandattitudin all o y a l t y playsanimportantroleofgoodindicatorstoaimatexistingofbehaviorall oyalty.T h i s a p p r o a c h impliest h a t r e s t a u r a n t s s h o u l d measuret h e cust omers’ loyaltybya t t i t u d i n a l i n d i c a t o r s t o m a k e s u r e t h a t c u s t o m e r s a r e welcometor e v i s i t

The thesis emphasizes the attitudinal dimension of customer loyalty, highlighting its significance in measuring customer loyalty Research indicates a positive correlation between customer intention, attitudinal dimensions, and behavioral loyalty, suggesting that satisfied customers are more likely to remain loyal and revisit a restaurant Furthermore, loyalty is portrayed as a long-term commitment, with a positive attitude towards a restaurant's services fostering resistance to switching brands As customer satisfaction with a specific restaurant increases, their commitment strengthens, establishing a clear link between loyalty intention and customer satisfaction (Gremler and Gwinner, 2000).

AsImentionedabove,customersatisfactionisaveryimportantfactortoloyaltyi n t e n t i o n , socustomersatisfactionisoneofprerequisitesofloyalty.Beside,servic eq u a l i t y a l s o i n f l u e n c e t o customerloyalty.A c c o r d i n g t o Gremlera n d B r o w n (1997);CroninandTaylor(1992),customersatisfactionandserviceq u a l i t y a r e p r e r e q u i s i t e s o f loyalty.Whilec u s t o m e r s a t i s f a c t i o n i n f l u e n c e s customeri n t e n t i o n , s e r v i c e q u a l i t y h a s ane f f e c t o n c u s t o m e r s a t i s f a c t i o n a n d d i r e c t l y influencescustomerloyalty(Lee,1998).Accor dingtoDanaherandMatt sson ( 1 9 9 8 ) , h i g h customers a t i s f a c t i o n a n d s e r v i c e q u a l i t y result i n h i g h e r customerloyalty.

Besides,h a v i n g m a n y f a c t o r s i n f l u e n c e t o customerl o y a l t y , s u c h a s : cu stomere m o t i o n s , personalrelationshiportheimageofacompany.AccordingtoMag ninian dHoneycutt(2005),customeremotionsdrivecustomersatisfaction,loyaltyand theydiscussedfacerecognitionandnamerecallbeingimportanttocustomersand

( 1 9 9 9 ) a l s o i n d i c a t e d t h a t customerh a v i n g apersonalrelationshipwithaspecif icemployeewhomshowshigherlevelso f service usage.Byt h e wayo f keepingpersonal relationshipto customers,service p r o v i d e r g e t s t h e i r s a t i s f a c t i o n a n d loyalty.Inr e s t a u r a n t industry,t h e imageofarestaurantisveryimportanttocustomerloyalt y.AccordingtoDownsa n d Haynes( 1 9 8 4 ) , i m a g e o f r e s t a u r a n t i s r e l a t e d t o c u s t o m e r loyalty.A g o o d imagecancreategoodfeelingofcustomeraboutthe overviewofservicequalitya n d setupcustomersatisfaction,loyalty.

Althoughhavinglotsoffactorsinfluencingtocustomerloyalty,themainwaytor e ta i n customersistoimprovecustomerservicequalityandsatisfaction(Berry&P a r a s u r aman,1991;Zeithaml&Bitner,1996).

Thefirst, revenueand marketsharegrow bybuildingrepeatsales and referr als Whencustomersareswept, theycontinuetobuyproductsanduseservice s,andt h e more,increasingcustomerloyalty,themore,controllingrepeatsales. Onthisd i men si o n s, customerloyaltyisverysignificantbecauseitplaysakeyfor c o m p a n y tosurvive.

Thes e c o n d , c o s t w i l l b e r e d u c e d b e c a u s e t h e e x p e n s e o f g e t t i n g n e w cus tomero f ten ishigherthantheexpenseofkeepingoldcustomer.So,companyin creasecustomerloyaltyisalsoreducingthetotalofcostbyeventhoughnotfocusingo ne x p e n s e ofnewcustomer,butalsohavingthehighrevenueandprofit.

Thet h i r d , employeer e t e n t i o n improvesb e c a u s e o f t h e l i n k t o customers a t i s f a c t i o n increasingandservicequalityincreasing.Researchershadfou ndthel i n k b e t w e e n c u s t o m e r loyalty,c u s t o m e r s a t i s f a c t i o n a n d s e r

18 v i c e quality.A s a r e s u l t , customerloyaltyimprovesastheconsequenceofbetterservi cequality.The waytoim pr ov e s e r v i c e q ual it y is a lso to b e c o n s i d e r e d a s i n c r e a s i n g em p l oy ee r e t e n t i o n

Inr e s t a u r a n t i n d u s t r y , customersl o y a l t y isveryimportant b e c a u s e o f t h e c o m p e t i t i v e n e s s i s v e r y h i g h a n d t h e a b i l i t y o f l o o s i n g customeri s a c o m m o n t h r e a t tomostofrestaurants.Manyresearcherspointedoutthatloyalt yisaveryimportantkeyforrestaurantmanagerstoimprovethetotalofrevenuean dprofit.Customerloyaltyisanindicatorfor restaurantmanagertocontrolcustomer revisita n d w i n t h e c o m p e t i t o r s byk e e p i n g s t a b l e r e v e n u e f r o m c u s t o m e r l o y a l t y a n d a t t r a c t i n g t o n e w c u s t o m e r s H a v i n g c u s t o m e r l o y a l t y i s a l s o a g o o d s i g n a l f o r restaurantsmanagertomakesurethequalityofser vice.Specialisthadindicatedl o t s offactorstocustomerloyaltytowardsspecificrestau rant:

8 ) Whenc u s t o m e r s a r r i v e t o r e s t a u r a n t , mostly,t h e i r f i r s t deman di s t h e q u a l i t y andrangeortypeoffood.Whenfoodisdelicious,iteffectstoc ustomern o t i c e , pleasure.Tosupplythisdemand,mostofrestaurantshavefoodand beverage m a n g e r a n d c a r r y o u t f o o d i m p r o v e m e n t s t r a t e g y Nowaday s,i f r e s t a u r a n t s possessavarietyoftypeanddeliciousfood,theyseem tobedominantcomparedtoanother.

Thesecond,frontlineemployeeisalsoattractiveandretaincustomer(ChebatandSlusarc zyk,2 0 0 5 ) F r o n t l i n e e m p l o y e e s m o r e o f t e n meetc u s t o m e r f i r s t l y a n d t r a n s f e r thecharacterofrestauranttocustomers.Obviously,frontlineempl oyeesh a v e s t r o n g l y p o s i t i v e i n f l u e n c e t o c u s t o m e r i f theya r e t r a i n e d tod e a l w i t h customersco mplaintsandbeawareofcustomer’semotion.Moreover,frontlineemployee se a s i l y c r e a t e p e r s o n a l r e l a t i o n s h i p t o c u s t o m e r a n d o n t h i s metho d,customerintentiontorevisit torestaurantiftheylikeandneedfrontlineem ployee’sservice.

According to Kandampully and Suhartanto (2000), a restaurant's image significantly influences guests' decisions to visit Restaurants serve not only as places to enjoy delicious food but also as venues for social interactions and relationship-building A strong restaurant image can align with customer preferences, encouraging repeat visits Conversely, if the image fails to resonate, customers may choose to dine elsewhere Recognizing the impact of restaurant imagery on customer preferences, many establishments strive to cultivate a unique identity that appeals to targeted customer groups.

Besides,specialistsalsoindicateotherfactorsinfluencingto customerloyalt yinr e s t a u r a n t , s u c h a s : c o s t / v a l u e , t h e p l a c e , e t c bythe wayoff o r m i n g customer’sexperience anddetermin ewhethertheyrevisitornot.

Inconclusion,althoughhavinglotsoffactorstocustomerloyalty,butthey canbesummarizedintomanymaingroups:Theservicequalityandtheimageofr e s t a u r a n t T h e s e r v i c e q u a l i t y g r o u p i n c l u d i n g q u a l i t y o f f o o d , q u a l i t y o f f r o n t employee’sservice,costandvalueandtheplaceofrestaurantcanbeinflue ncetocustomers a t i s f a c t i o n , customerl o y a l t y T h e imageo f r e s t a u r a n t , i n c l u d i n g t h e a t m o s p h e r e , thestructure,thebrandname,thedecoratingcanb epropertocustomer’spreferencesandinfluencetocustomerloyalty.

Accordingt oB owe n a n d C he n ( 20 01 ), lo ya lt y canbe m e a s u r e d bythreedist inctiveapproaches:1-Behavioralmeasurements,2-Attitudinal measurements,3-Compositemeasurements.

Behavioralmeasurementsrefertoacustomer’srepurchase(BowenandShoemaker ,1998).Basedontheamountofpurchasingtimeorrevisittime,r e s e a r c h e r c a n d e t e r m i n e t h e d e g r e e o f c u s t o m e r l o y a l t y T h i s measurementi s s u i t a b l e t o t h e p r o d u c t f i e l d , w h e n c a n e a s i l y c o u n t t h e n u m b e r oftimew h i c h customerbuysproducts.

Attitudinalm e a s u r e m e n t s r e f e r t o e m o t i o n a l a n d p s y c h o l o g i c a l a t t a c h m e n t (Baloglu2002).Basedonthepositiveornegativeattitude,resear cherscandeterminet h e o v e r a l l o f customerloyalty.T h i s m e a s u r e m e n t i s p r o p e r t o t h e s e r v i c e field,whenemotional,attitudinalsideplayanimpor tantroletocustomerloyalty.

Compositem e a s u r e m e n t s a ret he combination o f b e h a v i o r a l a n d a tt it ud i na l d i m e n s i o n s AccordingtoBowenandChen(2001),inthismeasurement,loyaltyisd eterminedbypreferences,frequencyofpurchaseorvisitandpropensityofbrands w i t c h i n g

Thefirst,companyrelateddeterminantsfocusonthefactorsrefertothesupplieri ts e l f o r t h e g o o d s , s e r v i c e s I t meanst h a t b a s e d o n r e s t a u r a n t r e p u t a t i o n o r i t s productquality,itsservicequality,customerschoosetoattachtocompany.I nthisgroup,r e p u t a t i o n o r b r a n d imageo f t h e r e s t a u r a n t i s veryi m p o r t a n t b e c a u s e i t providesthesymbolforcustomerloyalty.

Thes e c o n d , r e l a t i o n s h i p r e l a t e d d e t e r m i n a n t s f o c u s o n t h e f a c t o r s r e f e r t o t h e relationshipb e t w e e n c u s t o m e r a n d s u p p l i e r Byt h e wayt o p r o v i d e s e r v i c e o r p r o d u c t , thisrelationshipisbuilt andtoinflue nceincustomerloyalty Basedont h e i r e x p e r i e n c e s , t h e i r t r u s t a n d c o m m i t m e n t , c u s t o m e r s c h o o s e r e s t a u r a n t t o attachforlongtime.Thet h i r d , c u s t o m e r r e l a t e d d e t e r m i n a n t s f o c u s o n t h e f a c t o r s r e f e r t o customerc h a r a c t e r i s t i c s Customerstendtochooserestaurantwhichispropertot heirco n d it i on livingandtheirpreferences.Italsoanalyseswhywiththesamer estaurant a n d i t s s e r v i c e , b u t o n e g r o u p o f customersl i k e a n d t o b e loyalb u t anothergroupdoesnotlikeandnottobeloyal.Inthisgroup,affectandi n v o l v e m e n t arethedeterminantsofcustomerloyalty.

The determinants of customer loyalty identified in empirical research include product and service quality, availability of product lines, and accessibility Additionally, a brand's image and reputation play a crucial role, along with effective customer loyalty programs The intensity and quality of business relationships, along with personal experiences and recommendations, significantly influence loyalty Key factors such as trust, commitment, and economic switching barriers, as well as psychological and social barriers to switching, are also important Socio-demographic customer attributes, emotional involvement, and the perceived importance of products to customers further impact loyalty Lastly, understanding customer behavior patterns, expectations, and the utility derived from consumption or business relationships, as well as the attractiveness of competitor offers, are essential in fostering customer loyalty.

I n c e n t i v e s t o c h a n g e ; P r o a c t i v e im p r o v e m en t As aresult,productand servicequality;imageandreputation;trust;c o m m i t m e n t ; p r o a c t i v e i m p r o v e m e n t a r e t h e d e t e r m i n a n t s w h i c h h a d b e e n co n c en t r at ed toreveal.Itimplies theimportantimpactsofservicequality,productquality,imageandreputationas we llastrust,commitment, proactiveimp ro vement oncustomerloyalty.

Onthethesisofcustomerloyalty inthespecialtyrestaurants:Anexamplefro mI s t a n b u l byC e v d e d A v c i k u r t a n d M u r a t D o g d u b a y ( 2 0 0 8 ) , they p r e s e n t e d t h e modeloffiveindependentvariablesaffectingtocustomerloyalt y,includingfoodquality,servicequality,ambiance,convenienceandtheoverall( satisfactionfroma l l thingstogether)

Ther e s u l t o f theresearchwasf o o d quality,s e r v i c e quality,ambiance,c o n v e n i e n c e an dthe ove ra ll (satisfaction fromallthingstogether)positive influencingtocustomerloyalty.Although,thisresearchdefinedfoodqualityasa partdifferentfromservicequalitybuttheconclusionalsofocusonservicequality,s a t i s f a c t i o n asthekeyfactorstocustomerloyalty.

OnthestudyofcustomerloyaltyandtheimageoftheFinediningrestaurantbyR a s h a AlliEliwa(1993)presentedthemodeloftwoindependentvariablesa f f e c t i n g t o customerloyalty,including customersatisfaction andtheimageofther e st au r a n t

In their 2011 study on customer loyalty towards fast food restaurants in Malaysia, Hossein Nezakati, Yen Lee Kuan, and Omid Asgari identified nine key factors influencing loyalty: product quality, product attributes, brand name, store environment, service quality, promotion, price, trust, and satisfaction These factors can be categorized into four main groups: service quality (which encompasses product quality, attributes, service quality, promotion, and price), restaurant image (including store environment and brand name), customer trust, and customer satisfaction.

Ont h e re s ea r c h o f f a c t o r s i n f l u e n c i n g customerl o y a l t y towards f as t f o o d r e s t a u r a n t s byHosseinNezaki,YenLeeKuan andOmidAsgari(2011),the modelofcustomerloyaltywere:

Customerloyalty=constantvalue+0.586*productquality+0.285*promotion +0.219*brandname+0.407*productattribute+0.326*storeenvironment+ 0.3* s e r v i c e q u a l i t y + 0 3 6 1 * p r i c e + 0 4 5 5 * b r a n d t r u s t + 0 3 8 5 * c u s t o m e r s a t i s f a c t i o n Thisresearchimpliedthatinthefastfoodrestaurant,lotsof factorsaffectt o customerl o y a l t y an dt h e b r a n d , c u s t o m e r s a t i s f a c t i o n , p r o d u c t q u a l i t y , s e r v i c e qualityasthemainfactors.

Customer loyalty in the context of tourist village restaurants is influenced by three primary factors: customer satisfaction, service and product quality, and the brand image of the restaurant While these factors have been extensively researched and discussed, exploring their impact specifically on customer loyalty within this unique setting presents a fresh perspective that warrants further examination.

Service is a concept that distinguishes itself from products by being intangible, heterogeneous, and not storable According to Grönroos (1990), a service is defined as a process comprising a series of intangible activities that typically occur through interactions between customers and service providers, which include employees, physical resources, goods, or systems This definition highlights that service represents a relationship between the provider and customer, encompassing various activities across multiple dimensions, ultimately aimed at providing solutions to customer problems.

Service quality refers to the quality of service activities and is distinct from product quality due to the inherent differences between services and products Researchers have approached the concept of service quality from various angles When customers purchase a product, they evaluate its overall quality, with service quality being defined as the customer's judgment of the overall excellence of the service provided According to Zaithaml (1998), service quality encompasses multiple aspects, including employee performance, features, product quality, and conformance, all of which shape customer perceptions of service value Consequently, service quality is closely linked to customer satisfaction.

24 closelyrelated(Lee,1998).Servicequalityhasanimpactoncustomerperceptiona s w ellasinfluenceincustomerpurchasingchoices(Brucketal,2000).

In this thesis, service quality is defined more broadly than product quality, which focuses solely on the attributes of a product While product quality provides information on whether a product is good or not, service quality encompasses additional factors that significantly impact customer experience According to Grönroos (1987), service quality includes eight dimensions: performance, features, reliability, durability, serviceability, aesthetics, and perceived quality Grönroos also emphasizes that managing a few key dimensions can enhance customer perception of quality, leading to increased satisfaction Conversely, Brady and Cronin (2001) identify various dimensions of service quality, such as organizational, technical, and functional quality, as well as service product, delivery, environment, responsiveness, empathy, assurance, and tangibles associated with the service experience.

T h i s a p p r o a c h h e l p e d t o insig ht inservicequalitybyfocusingonmainfacto rswhichstronglyinfluencetocustomerperception.Ingeneral,althoughmanyrese archershadpointeddifferentd i m e n s i o n s buttheyalsoagreedthatservicequalityi saconceptofoverallqualityandbeingrelatedtocustomersatisfaction.

Int h e r e s t a u r a n t i n d u s t r y , s e r v i c e q u a l i t y i s a l s o c o n s i d e r e d a s o v e r a l l q u a l i t y w h i c h r es t a u r a n t b r i n g s v a l ue s t o c us t o m e r s, i n c l u d i n g f o o d , e m p l o y ee ’ s e r v i ce , price, theimageofrestaurant,theenvironment,atmosphere,etc.Moreover,se r v ic e qualityisveryimportantbecauserestaura ntindustryisatypeofs e r v i ce i n d u s t r y andso,allactivitiesofrestaurantwillr esultincustomerperceptionverymuch.Although,foodqualityisconsideredtobean importantpartoftheproductq u a l i t y ( S i g u a w & E n z , 1 9 9 9 )

25 a n d b e i n g a s i g n i f i c a n t d e t e r m i n a n t o f d i n i n g s a t i s f a c t i o n (Yuksel,2002)butwhenthecustomer’livingstandardim prove quickly,moreandmorecustomerspayattentiontotheimageofrestaurantwhich

25 satisfythevalueofcustomer.Customerintendtochooseproperrestauranti n c l u d i n g overallservicequalityinstealofchoosingrestaurantwithdeliciousfood.S o , Hens onandTrail(1993)pointedoutfoodqualityintofourattributesas:foodsafety,nutriti on,valueandpackage.

1 Qualityo f f o o d : m e n u variety,i n n o v a t i v e f o o d , p r e s e n t a t i o n off o o d , freshi n g r e d i e n t s andfoodconsistency.

2 Qualityo f service:e q u i p m e n t , a p p e a r a n c e o f employees,courtesyo f employees,waiting timebefore being seated,waitingtimebefore fo od arriv ing,a n d waitingtimebeforepayingthebill.

4 Place:appearance,ambienceofatmosphereofarestaurant,bathroom,telephones e r v i c e parking

Basedo n S o r i a n o v i e w , t h e measurementofs e r v i c e q u a l i t y is : q u a l i t y of f o o d , q u a l i t y ofservice,cost/valueandplace.

Int h e c o m p e t i t i v e b u s i n e s s , l o t s o f c o m p a n i e s t a k e n o t e t o m a r k e t i n g a c t i v i t i e s with theoutcomeascustomersatisfaction.Fornell(1992)defined satisfactionasanoverall evaluation dependent onthe total purchase and

26 expectationsovertime.Thisdefinitioninsightsoverallevaluationisasubstanceofs a t i s f a c t i o n I n r e s t a u r a n t i n d u s t r y , c u s t o m e r s r e c e i v e l o t s o f v a l u e s fro mr estaur ant ’ s activitiesandthetotalofvalueswillresultcustomersatisfaction.Thisd e f i n it io n a l s o p o i n t e d o u t t h e r e l a t i o n s h i p b e t w e e n c u s t o m e r s a t i s f a c t i o n a n d customer’t o t a l p u r c h a s e O n t h e o t h e r h a n d , O l i v e r ( 1 9 9 7 , 1 9 9 9 ) r e f e r r e d t o s a t i s f a c t i o n aspleasurablefulfillm entwhichissensedbycustomersintheconsumption,includingneed,desire,goa l,etc.Itmeansthatsatisfactionisaresultw h e n customerssatisfytheirneed,desireorgoal. Customers a t i s f a c t i o n is an evaluationb e t w e e n c o s t a n d b e n e f i t a n d p l a y a n importantr o l e i n m a i n t a i n i n g a r e l a t i o n s h i p b e t w e e n s e r v i c e p r o v i d e r a n d customers.C u s t o m e r s a t i s f a c t i o n h e l p s t o i n c r e a s e t h e c u s t o m e r motivationo f c h o o s i n g andcontinuedbuyingproductsorservi ces.

Customerperceptionisusedtomeasurecustomersatisfaction.AccordingtoLe e( 2 0 0 8 ) , fiveemotionsperceivedbycustomerasbelowtoshowsatisfactory:Satisfactio n:Customeracceptproductorservice

Novelty:ProductorservicebringfreshnessorexcitingtocustomerSu rp ri se: Prod uctorservicebringunexpectedlypleasedtocustomer.

Customersatisfactionis akeyfactorfor restaurant’smanagerstoattachcustomersa n d makesurestablerevenueincreasing. McColl-

KennedyandSchneider(2000)a n d Reichheld an d S a s se r (1 99 0) pointed o u

27 t th at customer s a t is f a c t i o n is im p o rt a n t f o r arestaurantsuccess Moreo ver, C a c i p p o ( 2 0 0 0 ) considered t ha ti f customerloyaltyincreaseby5%,itwillres ultinincreasingprofitsby25%.These figuresshowtheimportanceofcustomersatisfactiontorestaurantsuccess.Also,

Customer satisfaction is crucial in the restaurant industry, as it directly influences positive behavioral intentions, including repurchase and loyalty Satisfied customers are nearly six times more likely to remain loyal compared to those who are only moderately satisfied Enhancing customer satisfaction can significantly boost loyalty and revenue for restaurants Key factors impacting customer satisfaction include perceived price fairness, service quality, product quality, and personal interactions According to research, customers assess their dining experiences based on various elements: environment (24%), meal quality (30%), service (26%), and cost (21%) Additionally, expectations regarding service quality, parking availability, food quality, operational hours, helpful staff, reasonable pricing, cleanliness, food safety, and responsiveness to complaints further shape customer satisfaction.

Although,customersatisfactionisdeterminedbylotsoffactorsbutinthecoverofth i s thes is,mainlyfocusontheoverallevaluationofcustomertoshowthedegreeo f customers a t i s f a c t i o n T h e o v e r a l l e v a l u a t i o n c a n b e determinedbycustomer r e s p o n d Customershavetheirprivateperceptionofservicequality andoneofthewaystomeasuretheirsatisfactionistoconsidertheoutcomeoftheirpercepti onasw e l l astheoverallevaluation.

Store image is a crucial factor in shaping customer perceptions and emotions towards a retail environment According to Oh (1995), customers not only form opinions about a store but also develop specific feelings associated with it This underscores the importance of a positive store image in influencing customer sentiment Lindquist (1975) and Oh (1995) identified nine attribute groups that contribute to store image, including merchandise, service, clientele, physical facilities, convenience, promotion, store atmosphere, institutional factors, and post-transaction satisfaction These attributes collectively create an overall impression that affects how customers think and feel about a store, emphasizing the need for retailers to focus on these elements to foster positive customer experiences.

Therestaurantimagealsoinfluencetoomuchincustomerperception.Thisimagen o t onlyc r e a t e s b e a u t i f u l o r p r o f e s s i o n a l materialb u t a l s o t r a n s f e r s i g n a l s t o customerfeeling.Basedonnineattributegroupswhicharementioned above,ther e st a u r a n t imagecanbedescribedasfollows:

Service:refertoallserviceactivities,includingdeliveryservice,waitressservic eo r servicepoliciesofrestaurant.

Physicalf a c i l i t i e s : re fe rt o e l e va t o r , l i g h t i n g , a i r c o n d i t i o n i n g , w a s h r o o m , c a r p e t i n g , etc

Convenience:refertogeneralconvenience,locationconvenience,andparking.P r o m o t i o n : refertoadvertising,display,symbolsandcolors.

Restaurantatmosphere:refertocustomerfeelingofwarmth,acceptance.I n s t i t u t i o n a l fa ctors:refertoreputation,reliability.

&Suhartanto,2000).Theimageofr est au ran t influencesin customerpercept iona n d createcustomersatisfactionaswellascustomerloyalty.Accordingto Normann(1991),theimageinfluencecustomers’mindsthroughthecombination o f a d v e r t i s i n g , p u b l i c r e l a t i o n , p h y s i c a l i m a g e , w o r d o f m o u t h , a n d c u s t o m e r experienceswiththegoodsandservices.

Inthecoverofthisthesis,therestaurantimageisconcentratedtoresearchasthe dimensiono f imagei m p a c t t o c u s t o m e r p e r c e p t i o n F o l l o w i n g t o t h e t h i s way,b r a n d imageco nce pt isco ns ide re dasr ef er to re sta ur an t reputation o n customerp e r c e p t i o n

4 2 ) B a s e d onb r a n d , c u s t o m e r c a n i d e n t i f y t h e c h a r a c t e r i s t i c s o f t h e r e s t a u r a n t a n d b r a n d canbestoredoncustomerperception.Customercanreme mberthenameort h e symboloftherestaurantbeforetheygettheirdecisiontovisit.Brandisveryi mp o rt an t andpossessesstrongpowerbecauseitisthekeytoinflue ncein

30 areuniquelyattributetothebrand”(Keller,1993,p.1).Brandequityimpliesth estrength ofbrandinrelationshipwiththeeffectofmarketing.Brandequityisthe valueofa companyandisanobjectiveofmarketingstrategy.Themore,thebrande q u i t y restauran tisstrong,themorecustomersattendtouseitsservices.So,howt o improvebrandequi tyisakeyquestioninmarketingfield.Brandknowledgecanb e c o n s i d e r e d a s t h e k e y t o c r e a t i n g b r a n d equity.B a s e d o n t h e k n o w l e d g e o f b r a n d , customercan evaluateorcompareamongrestaurantsandchoosetheap pr op ri at e r e s t a u r a n t

K e l l e r ( 1 9 9 3 ) s u g g e s t s t h a t b r a n d k n o w l e d g e c o n s i s t s o f b r a n d awaren essandbrandimage.Brandawarenessisaconceptwhichreflectsthestrengthofabrand’s presenceinthecustomer’smind(Pappu,QuesterandCooksey,2005).Brandimageis animportantpartofbrandknowledgeandcanbec o n cep t u a li z ed asperceptionabo utabrandasreflectedbythebrandassociationst hat linkedtothebrandinacustomers’ memory(Aaker,1991,Keller,1993).

A brand is not simply created and then perceived by customers; rather, every step in the branding process and each brand message contributes to the overall brand image formed in the minds of consumers This brand image reflects the impact of branding efforts on customer perception, emphasizing the importance of a strong reputation that must be cultivated over time A company's actions, particularly its marketing strategies, significantly influence how customers perceive the brand through their attitudes and emotions According to Keller (1993), brand image is shaped by the favorability, strength, and uniqueness of brand associations held by customers, highlighting the complex structure of brand perception.

31 brand.Brandattributesrefertowhatcustomerthinkstheproductisordescriptivef ea tu r e s thatcharacterizetheproduct.Brandattributesincludenonproductrelatedan d pr oductrelated.Productrelatedattributesarethosethat“relatetoaproduct’sphysical composition”(Keller,1993,p.4).Nonproductrelatedattributesdefinesa s

“externalaspectsoftheproductorservicethatrelatetoitspurchaseorc o n su m p t i o n ” (Keller,1993,p.4).Userimageryc a n beconsideredasanonproductrelatedattribu tewhenassociatedwiththecharacteristicsofdemographicso r p s y c h o g r a p h i c s

B r a n d b e n e f i t r e f e r s t o w h a t c u s t o m e r s t h i n k t h e p r o d u c t o r serv icec a n b r i n g v a l u e t o them.B r a n d b e n e f i t i n c l u d e s f u n c t i o n a l , s y m b o l i c , e x p e r i e n t i a l side(JaworskiandMacInnis,1986).Functionalbenefitsar etheeffectivenessofsatisfyingcustomerneedsassociatedwiththeproblemspre ventionorremoval (Kim,Forsythe, GuandMoon, 2002) Symbolicbenefi ts a r e a s s o c i a t e d w i t h u n d e r l y i n g n e e d s o f s o c i a l a p p r o v a l , s e l f e s t e e m a n d s e l f concept( K e l le r , 1 9 9 3 ) E x p e r i e n t i a l b e n e f i t s r e l a t e t o h o w c u s t o m e r f e e l s w h e n usingt h e p r o d u c t , s e r v i c e a n d o f t e n s a t i s f y c o g n i t i v e s t i m u l a t i o n a n d s e n s o r y p l e a s u r e needs(OrthandD eMarch,2007).

Throughthestructureofbrandimage,theimportantpointcanbeconcludedthati tsconceptrelatedtooverallperception,evaluationtosupplierimage.Brandan dimagea r e t h e c o n c e p t s w h i c h a r e c l o s e l y c o n n e c t e d C u s t o m e r s p e r c e i v e t h e imageofasupplierandformtheirperception.Bythisway,bran dimagehasbeens et upandinreturn,itinfluencesincustomerloyalty.

Uniqueness of brand associationsFavorability of brand associationsStrength of brand association

Ther e s t a u r a n t b r a n d imagec a n b e m e a s u r e d bycu st ome r p e r c e p t i o n a n d ev al uatio n ofrestaurantbrand.Basedonthestructureofbrandimage,them e a su r e men t canfocusonbrandattitude,brandbenefitfromcustomerperception.

Serviceq u a l i t y i s a keyf a c t o r f o r r e s t a u r a n t m a n a g e r t o c r e a t e a n d improvecustomerloyalty.Byt h e p e r c e p t i o n o f c u s t o m e r t o s e r v i c e quality,c u s t o m e r d e f i n e w h a t g o o d s ands e r v i c e s a r e g o o d a n d theyc o n t i n u e t o u s e o r p u r c h a s e goodsorserviceslongtime.So,Lee(1998)reasona blyconcludedthatthep erceiv ed productandservicehadaneffectoncustomersa tisfactionanddirectlyi n f l u e n c e d customerloyalty.Nowadays,servicequalit yisdefinedasthemethodf o r mangert o c o n t r o l c u s t o m e r l o y a l t y a n d c r e a t e l o n g timer e l a t i o n s h i p w i t h customer.Lackofservicequalitywillresulti nlackofbasicfoundationofcustomersatisfactionandwillleadtothedecreasingincusto merattention.So,thehypothesisisgiventhatthecomponentofservicequalityhasaposit iveimpactoncustomerintentiontorevisitspecificrestaurant(H2).

Toresearchthisrelationship,Fornell(1992)examined27differentbusinessesands t a t e d t h a t l o y a l c u s t o m e r s a r e n o t n e c e s s a r i l y s a t i s f i e d c u s t o m e r s , b u t s a t i s f i e d customerslikelytendtobeloyalcustomers.Itmeansthatsatisfactioninfluencei nl o y a l t y a n d t h e waytoi n c r e a s e t h e a m o u n t o f loyalcustomerist o i m p r o v e customersatisfaction.Followingtothisview,Jones(1990)alsopoint edoutthat

34 highlysatisfiedcustomersaremuchmoreloyalthansatisfiedcustomersandany dropintotalsatisfactionresultsina majordropinloyalty.So,thehypothesisisg i v e n thatthecustomersatisfactionhasapositiveimpactoncustomerintentiontor ev i si t specificrestaurant(H1)

Lessing(1973)hadex am ine d the r ela ti on sh ip of r e s t a u r a n t imagea n d custo merloyalty.Asaresult,theimageisconsideredasaninfluencetocustomerloyalt y.R e p u t a t i o n isastatementofstrongbrandimage,sobrandimagemayimp actoncustomerloyalty.Ontheotherhand,Tepci(1999)andFassnachtandDaus(2004)a l s o pointedouttheimpactofreputationtocustomerloyalty.So,thehypothesisisg i v e n thatthebrandimageofrestauranthasapositiveimpactoncustomeri n t e n t i o n torevisit specificrestaurant(H3)

Guest awareness plays a crucial role in fostering customer loyalty At the awareness stage, potential customers become informed about a restaurant's existence and the services it offers The more aware customers are of a restaurant's offerings, the higher the likelihood they will visit and utilize its services Building awareness is essential for attracting new customers and enhancing their overall experience.

Reputation:Whenr e s t a u r a n t h a s t h e i r r e p t u t a t i o n , i t c a n e a s i l y a t t r a c t t o morecustomerbywordofmoutha c t i v i t y (Rogerson, 1 9 8 3 ) R e p u t a t i o n a l s o isc o n s i d e r e d t h a t r e s t a u r a n t keeps theirpromiseonservice qualityandcustomercanb e pleasedwiththesatisfactionon theirexpectations

Image:B u i l d i n g a p o s i t i v e imagei s a l s o c o n s i d e r e d t h e s t e p tor e t a i n c u s t o m e r l o y a l t y (Tepeci,19 99 ) T h e imageca ncreate s p e c i a l character t od is t i ng ui sh its servicefromtheircompetitors’service So,itcreatesa keysource o f customerswh o likeitsimageaswellasitscharacters.AccordingtoBerryatal., (1988)theimagenotonlyisthenamebutalsoincludesexcellentservice,atmosphere,col ors,symbols.

Promotion:C u s t o me r s i n t e n t t o c h o o se r e s t a u ra n t w h i c h h as p r o m o t i o n s t r a t e g y s t r o n g l y b e c a u s e theye v a l u a t e p r o f i t w i l l b e moret h a n c o s t S o T e p e c i ( 1 9 9 9 ) statedt h a t p r o m o t i o n i s o n e o f r e a s o n f o r customera t t e n d i n g r e s t a u r a n t Promotioncancreatenewvalueforcustomeraswellascreat easpecialsymbolf o r restaurantcomparedwiththeircompetitiors.

Perceivedq u a l i t y : A c c o r d i n g t o E l l i o t t ( 1 9 9 6 ) , customerf e e l s c o m f o r t a b l e w i t h familiarrestaurantandversusunfamiliarrestaurantandthiscausesbrand- leadingp r o d u c t s whichmakespricepremiumovertheircompetition.Itimpliesth atcustomerst e n d t o c h o o s e f a m i l i a r r e s t a u r a n t b e c a u s e theyu n d e r s t a n d s e r v i c e q u a l i t y fromtheirexperienceandexpectagoodqualityfor thenexttime.Bythisway,customerloyaltyisdeveloped.

Innovation:A c c o r d i n g t o T e p e c i ( 1 9 9 9 ) , managerss h o u l d c o n s i d e r w h i c h innovationisimplemented.Innovationcreatesnewvalueforcustomersanditca nr ef r esh servicequalitytomakecustomerexciting Butinnovationmustbec a ref u ll y consideredbecauseitalsocouldcreatedissatisfiedfactorstocustom er.I n general,innovationisapositiveimpactoncustomerloyalty.Innovationhelptoma intainarestaurantcurrentmarketshare(Victorinoetal,2005).

Servicequality:Asmentionedabove,effectofservicequalitytocustomerloyaltyi s str ong Se rv ice quality includesq u a l i t y off o o d , qua li ty ofs e r v i c e , co st / va lu e a n d place.

Customers a t i s f a c t i o n : A s mentioneda b o v e , s a t i s f a c t i o n d i r e c t l y i n f l u e n c e customerloyaltyandmanyresearchersalsopointedoutthatthem orethes a t i s f a c t i o n develop,themoretheloyaltyincrease.Customersatisfa ctionisc o n s i d e r ed a s a n o v e r a l l e v a l u a t i o n o n f o o d , s e r v i c e , v a l u e w h i c h comparedt o c o s t

Theb r a n d image:A s mentioneda b o v e , b r a n d imagei s a n i m p o r t a n t f a c t o r t o customerloyaltyanditcreatesakeysourceofcustomerswholikeitsbrandimagea s w ellasitscharacters.Thebrandimageofrestaurantwhichismeasuredincludescustomerattitu deforwardtothebrandofrestaurantandthebrandbenefit.

Hypothesis 1:Theoverall customersatisfactionhas apositiveimpacton customeri n te n t io n torevisitspecificrestaurant(H1)

The brand image of the restaurant

(H1) Customer satisfaction The attitudinal dimension of Customer loyalty

Hypothesis 3:The imageofrestauranthas apositiveimpactoncustomerintentiont o revisitspecificrestaurant(H3)

Inc h a p t e r I I , r e v i e w o f l i t e r a t u r e w a s p r e s e n t e d I n c h a p t e r I I I , r e s e a r c h methodologyisp r e s e n t e d andt h i s ch ap ter i n c l u d es f iv e parts:resea rchprocess; t h e measurement;thepreliminaryassessmentofmeasurement;th esamplingmethodandthedataanalysismethod.

The research process comprised a preliminary survey and a main survey The preliminary survey involved distributing questionnaires to 20 customers of Tan Cang restaurants, which informed the adjustment of the questionnaire's mean and ensured the appropriateness of measurement scales based on the restaurants' real situations in the tourist village The main survey was conducted with 230 customers at Tan Cang and Van Thanh restaurants, utilizing a quantitative research approach To test the hypotheses, Cronbach's alpha and exploratory factor analysis were employed.

Themethodof creatingquestionnairewasbasedonthemeasurementof dependenta n d independentvariablesaftercheckedinrealsituationattheT anCangRestaurantofthetouristvillage.

The final questionnaire (Qualitative research) Preliminary survey

Testing of hypotheses (Conbach alpha, EFA, regression)Figure3.1:Themodelofresearchprocess

Eveni f anotherrestaurant’sp r i c e i s l o w e r , I amw i l l i n g t o c o n ti n u e selectingthisrestaurant.

Iamcomfortable withtherelationship withthisre st au ran t

Thisscalefocusedontheoverallcustomersatisfactionbyemphasizingthecustom eremotiononservicequality,performance,employeeandtherelationshipw i t h th e res ta ura nt This sca ler ef le cte d three sid es of t h e customersa t i s f ac t i o n : restaurant activities,restaurantimageandtherelationshipwithitscustomers.

I consider that this restaurant’sreputationishigh

I have a good feeling about therestaurant’s socialresponsibility

Thiss c a l e f o c u s e d ont h e c u s t o m e r p e r c e p t i o n o f b r a n d image.B r a n d ima geisg e n e r a l l y definedasthereputation,andthesymboltranslatingtocustomerfeelin ga n d thinking.

 Thequalityofproductattributesdimensionweremeasuredbasedonthestudyo f Cadotte&Turgeon(1998),Morgan(1993),Rataree(2003).

The staffs have abilityo f problemr eso lu tion

 Valuea n d c o s t a t t r i b u t e s d i m e n s i o n w e r e measuredb a s e d o n t h e studyo f C a d o t t e &Turgeon(1998),Morgan(1993),Rataree(2003).

The preliminary survey aimed to identify mistakes in the draft questionnaire and ensure that all measurements were clearly understood by customers Conducted with the assistance of Tan Cang restaurant's managers, the survey involved sending the draft questionnaire to customers and conducting face-to-face interviews Twenty customers participated, completing the form in 10 minutes and engaging in a 15-minute interview A comparison of the results revealed that certain measurements needed adjustments Specifically, the phrases "the employees are responsive to questions" and "the employees are professional" were removed, as customers equated "employees" with "servers." Customers distinguished only between "staff" and "servers," making it unnecessary to separate them further Additionally, the scale "the servers treat all customers equally" was eliminated because customers felt they should receive preferential treatment based on their social situation Consequently, the preliminary survey led to revised wording for service quality attributes.

Accordingt o H a i r ( 2 0 0 6 ) , i n o t h e r t o e n s u r e t h e r e l i a b i l i t y o f t h e r e s e a r c h , t h e samplesizerequiredisn>0andn>=5k(wherek=numberofvariables ).Int h i s research,thenumberofvariablesis31,sotheminimumsamplesizeis155.

Ont h e o t h e r h a n d , T a b a c h n i c k a n d Fidell( 2 0 0 1 ) a l s o r e c o m m e n d e d t h a t t h e samplesizeneededforrunningmultipleregressionisn>50+8m(mi sequaltot h e n u m b e r o f i n d e p e n d e n t v a r i a b l e s ) So,t h e m i n i m u m samples i z e f o r t h i s r e s e a r c h is82.

Basedontheabovecalculation,thesamplesizesetforthisresearchwas205.Toge tthesamplesizeof205,thetotalofquestionnaireswhichsendtocustomerswas2 3 0 forwho usedserviceatTanCang,andVanThanhrestaurant.Afterreceivingth e customerrepli es,therewere205formswhichwerefilledproperly.

The measurement models were used Cronbach alpha reliabilitya n a l y s i s , e x p l o r a t o r y factoranalysis(EFA)andlinearregressiontoanalyz e.

Thed a t a a n a l y s i s w a s c o n d u c t e d w i t h t h e h e l p o f S P S S s o f t w a r e t o t e s t t h e con cep tu al modelandhypotheses.

Thesisstructure

Chapter1:Introduction.Thischapteristosupplyabriefoverviewoftheresearchback ground,problemsandobjective.Thischapteralsodefinesthelimitation,themeth odandthesignificantvalueoftheresearch.

Chapter2:Literaturereviewandconceptualmodel.Thechaptercomprisesadeeprevi ewo f l i t e r a t u r e asw e l l a s p r e v i o u s r e s e a r c h B a s e d o n l i t e r a t u r e r e v i e w , conceptualmodelwasbuilt.

Chapter3:Researchmethodology.Thischapterfocusesonresearchprocess,d e f i n e me asurements,preliminaryassessmentandmethodstocollectsamplesandt o analyzedat a.

Chapter4 : D a t a a n a l y s i s a n d r e s u l t s T h i s c h a p t e r c o m p r i s e s t h e o f f i c i a l assessmentofmeasure,hypothesistestinginaccordancewiththreere staurantoft h e touristvillage.

Thisc h a p t e r p r o v i d e s a n o v e r v i e w o f a v a i l a b l e r e s e a r c h o n c u s t o m e r l o y a l t y inr e s t a u r a n t industryaswellassuppliestherelevanttheories.Basedonthelitera turer e v i e w , theconceptualframeworkisbuilt.

Loyalty concept

Loyalty is a crucial concept in marketing, referring to the attachment customers have to a company's products, services, and personnel (Jones and Sasser, 1995) It plays a vital role in retaining customers, encouraging repeat purchases, and ultimately boosting revenue and profit As competition among companies increases, customer loyalty becomes essential for survival and growth Businesses strive to foster loyalty to prevent customers from switching to competing brands According to Nguyen and Leblanc (2001), loyalty is defined as a customer's resistance to switching brands Depending on the type of service or product, loyalty can be characterized by customers returning to a service provider or engaging in repeat purchasing behavior.

Inthethesis,thedefinitionofloyaltyisregardedtotheattachmentofcustomertoacomp any’sproducts,servicesandpeople.Moreover,itsconceptfocusesonthef o l l o wi ng mainpoints:

Thefirst,loyaltynotonlyfocusesoncustomer’srepurchasingactivitybutalsothei n t e n t i o n t o r e c o m m e n d a n d m a i n t a i n a p o s i t i v e t o w a r d s t h e s e r v i c e p r o v i d e r ((Bloemeratal.,1999,GremlerandBrown1999,ShoemakerandLe wis1999).Ih i g h l y a p p r e c i a t e a c u s t o m e r ’ s p o s i t i v e a t t i t u d e b e c a u s e itl e a d s t o b e h a v i o r a l customer,notonlyrepurchasing,revisitingproduct sorservicebustalsodecidetot h e resistanceofswitchingtoanotherbrand.

Thes e c o n d , b e c a u s e o f m y t h e s i s f o c u s i n g o n s e r v i c e f i e l d , loyaltyi s m oret o concentrateoncustomer’srevisitingtouseservicethancustomer’savailabil ityofp u r c h a s i n g toproducts.Itshowstheeffectivenessofarestaurantnotonlytri estosel l foodsandrelevantservicesbutalsotoattachcustomerforlongtime.A c c or d i n g toDickandBasu(1994)andStanketal.,

Thet h i r d , c u s t o m e r l o y a l t y i s l o n g t e r m c o m m i t m e n t t o r e p u r c h a s e p r o d u c t s , serv ices overtime.Thissidereflectstothemaincharacterof customerloyalty.Itr e q u i r e s thatserviceprovidermustalwaysfocusoncustom erloyaltyandonther e t u rn i n g , possessingcustomerloyaltyalsoistopossessthev alueofcustomerforl o n g time.Whencustomersareloyal, theyaretrusttotheser vicesandtheyarer e ad y torepurchaseeventhoughhavingotherbrandsattractingtothem.

Becausethedefinition ofloyaltynotonlyregardstothecustomer’srepurchasebutal so f o c u s o n t h e p o s i t i v e a t t i t u d e t o s e r v i c e , p r o d u c t s f o r a l o n g time,sot h e s p e c i a l i s t s c o n s i d e r e d l o y a l t y i n c l u d i n g b e h a v i o r a l a n d a t t i t u d i n a l d i m e n s i o n s A c c o r d i n g t o K a n d a m p u l l y a n d S u h a r t a n t o ( 2 0 0 4 ) , l o y a l t y i s a c o n c e p t w h i c h c o v e r s thebehavioralandattitudinaldimensions.Th esedimensionsfocusonhowcustomersr e s p o n d t o p r o d u c t s , s e r v i c e s a s w e l l a s t h e a t t i t u d e t o recommend,i n t r o d u c e p r o d u c t s , s e r v i c e s t o o t h e r s R e s e a r c h e r s f o u n d t h a t t h e s e d i m e n s i o n s show t h e i m p o r t a n c e o f c u s t o m e r l o y a l t y t o r e s t a u r a n t ’ s p r o f i t T h e c u s t o m e r ’ s b ehav io r on r e p e a t d i n i n g f o r a s p e c i f i c r e s t a u r a n t i s t h e b e h a v i o r a l d i m e n s i o n (Bowen &Shoemaker,1998).Attitudinaldimensionreferstoacustomer’si n t e n t i o n onaaspecific restaurantandrecommend(Getty &Thompson, 1

994) Attitudinal andbehavioraldimensionsarelogicallyintegratedandattitudin all o y a l t y playsanimportantroleofgoodindicatorstoaimatexistingofbehaviorall oyalty.T h i s a p p r o a c h impliest h a t r e s t a u r a n t s s h o u l d measuret h e cust omers’ loyaltybya t t i t u d i n a l i n d i c a t o r s t o m a k e s u r e t h a t c u s t o m e r s a r e welcometor e v i s i t

The thesis emphasizes the attitudinal dimension of customer loyalty, highlighting its significance in measuring customer loyalty effectively Research indicates a positive correlation between customer intention and the attitudinal dimension, which in turn influences overall customer loyalty When customers are satisfied with a restaurant's services, they are more likely to remain loyal and revisit the establishment This loyalty is depicted as a long-term commitment, driven by a positive attitude towards the restaurant Satisfied customers show resistance to switching brands, and as their satisfaction increases, their commitment to the restaurant solidifies Thus, loyalty intentions are positively correlated with customer satisfaction, as noted by Gremler and Gwinner (2000).