The Influence of Service Quality, Price, and Environment on Customer Loyalty in the Restaurant's Industry: The Mediating Role of Customer Satisfaction

Abstract

The purpose of this research is to examine the influence of service quality (SQ), Price (P) and Restaurant Environment (RE) on customer loyalty (LOY), via the mediating role of customer satisfaction (SAT) in the context of the restaurant industry in the capital city of Pakistan (Islamabad). Five hundred questionnaires were distributed at various restaurants in a different location at Islamabad, and 385 were returned. Multiple Regression Analysis was used to test hypothesis relationships. The outcome of this research shows that SQ, Pand RE have a positive association with the SAT. In contrast, customer satisfaction also leads to customer loyalty. Moreover, customer satisfaction significantly mediates the association among SQ, P, RE, and customer loyalty. The restaurant operators need to consider that good quality of service, fairness in price, pleasant and attractive restaurant the environment can increase customer satisfaction, which often contributes to customer loyalty.