Factors Influencing Indonesian Customer Satisfaction and Customer Loyalty in Local Fast-Food Restaurant

Anas Hidayat,Aprilia P Adanti,Arief Darmawan,Alldila N A Setyaning

doi:10.5539/ijms.v11n3p131

Abstract

This paper aims to analyze the influence of customer satisfaction and customer loyalty toward the local fast food restaurant in Indonesia. The variables involved in this study were perceived service quality, perceived product quality, perceived price fairness, customer satisfaction, and customer loyalty. Samples of this study were customers of the local fast food restaurant in Yogyakarta. Quantitative method is used to analyze the relationships within variables. This research examined 200 respondents by spreading the online questionnaires that were analyzed by using Structural Equation Model method. To collect the data, this study used convenience sampling method. The results show that perceived service quality, perceived product quality, and perceived price fairness had a positive and significant influence on customer satisfaction. Also, perceived service quality, perceived product quality, and perceived price fairness had a positive and significant influence on customer loyalty. Finally, customer satisfaction has a positive and significant influence on customer loyalty. Perceived price fairness was the highest influence on Indonesian consumers for being loyal to the local fast food restaurants.

Highlights

Indonesia is the largest market for the Food Service Industry in the ASEAN countries (Agriculture and Agri-Food Canada, 2016)
This paper aims to analyze the influence of customer satisfaction and customer loyalty toward the local fast food restaurant in Indonesia
The variables involved in this study were perceived service quality, perceived product quality, perceived price fairness, customer satisfaction, and customer loyalty

Summary

Introduction

Indonesia is the largest market for the Food Service Industry in the ASEAN countries (Agriculture and Agri-Food Canada, 2016). According to AAFC (2016), fast food is one of the top three growth drivers for foodservice market in Indonesia. This study mentioned that the fast food stores in Indonesia continued to rise by 30% in value sales in 2014. International brands dominated the Indonesian market, such as KFC, McDonald’s, Dunkin’s Donuts and Burger King. These leading fast food brands show a very tight competition among each other’s. To attract consumers’ attention, these brands are offering more innovation into their products and services. This condition leads the businessmen to maximize their restaurants’ performances to compete in the market. The restaurants need to improve the quality of products, quality service, and set the competitive pricing

Objectives

Methods

Results

Conclusion