The intricate relationships of consumers’ loyalty and their perceptions of service quality, price and satisfaction in restaurant service

Abstract

PurposeThe purpose of this study is to determine how consumers perceive restaurant service in Bangladesh. The goal of this study is to determine the impact of perceived service quality and price fairness on consumer satisfaction and loyalty toward restaurant services.Design/methodology/approachThe data for this study were collected from 326 respondents who have used restaurant services in Bangladesh. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to evaluate the research data with SmartPLS 3.3.3.FindingsThe current study’s findings indicate that perceived service quality and price fairness both have a direct and significant effect on consumer satisfaction. Additionally, the research findings reveal a considerable association between perceived pricing fairness and consumer pleasure and consumer loyalty. Additionally, findings indicate that perceived service quality and price fairness both have a significant indirect effect on customer loyalty via the mediating effect of consumer satisfaction.Practical implicationsThe current study demonstrates that perceived price fairness has a substantial effect on restaurant consumers’ satisfaction and loyalty; thus, this evidence can assist restaurant owners and managers in developing and implementing their pricing strategy to retain customers. Additionally, the findings have significant implications for restaurant operators, practitioners and policymakers.Originality/valueOnly a few research have been conducted to determine the effect of service quality and pricing fairness on consumer satisfaction and loyalty when it comes to restaurant services. This research conclusion provides guidance to service providers on how to increase customer satisfaction and loyalty through an emphasis on price fairness and service quality.