ARE YOU LOYAL IF SATISFIED WITH MEAL OUTSIDE ? : A RELATION BETWEEN CUSTOMER SATISFACTION AND LOYALTY IN RESTAURANTS.

Abstract

The restaurants business is growing at it's own pace in the world as well as in India. This paper examines the relationship of customer satisfaction and customer loyalty among customers of restaurants in Gujarat state of India. Various factors are used to measured customer satisfaction and customer loyalty among customers of restaurants via a structured questionnaire. A sample of 381 respondents using convenience sampling was surveyed. The analysis is done using descriptive analysis, pearson correlation coefficient, linear regression analysis, t test and ANOVA test. The positive correlation is found between customer satisfaction and customer loyalty and thus, coefficients of regression and adjusted R2 are calculated. Among demongraphics, gender, age and income groups have shown a significant difference of customer satisfaction and customer loyalty while education groups didn't show a significant difference of customer satisfaction and customer loyalty. Females are more satisfied and loyal compared to males while less than 25 years of age group is the most satisfied and loyal among all age groups. As income increases the satisfaction and loyalty decreases upto the yearly income of rs. 12,00,000. For formulating marketing strategies, further research is required but, the research has thrown light on relationship and demographic group comparisons and may be helpful for marketers and further researchers.