CHAPTER ONE INTRODUCTION 1.1 INTRODUCTION This study has been conducted at three Malay restaurants in Malaysia to investigate how restaurant customers experienced the factors that influence satisfaction in order to propose a conceptual framework of the customer satisfaction dining experience. The participants involved in the study were mainly restaurant customers to three Malay restaurants. Through the qualitative research method, comprising inductive analysis and multiple data collection techniques (i.e. in-depth interviews, observations and document) with a broad range of customers and insiders (restaurant manager and staff of restaurant front house department), a conceptual framework of the customer satisfaction dining experience was generated. The focus of discussion (Chapter 6) highlights the process and practices of customer dining experience, which in turns provides implications for restaurant management. This chapter contains of the academic context, overview of the study and outline of the thesis. 1.2 THE ACADEMIC CONTEXT The early 1970s saw the emergence of customer satisfaction as a legitimate field of inquiry (Barsky, 1992) and the volume of consumer satisfaction research had increased significantly during the previous four decades (Pettijohn et al., 1997). The issue of customer satisfaction has received great attention in consumer behaviour studies (Tam, 2000) and is one of the most valuable assets of a company (Gundersen et al., 1996). With regard to the food service industry, success in the industry depends on the delivery of superior quality, as well as the value and satisfaction of customers 1 (Oh, 2000). Most restaurateurs have realised the effect of customer satisfaction on customer loyalty for long-term business survival (Cho and Park, 2001), and have chosen to improve customer satisfaction in an attempt to achieve business goals (Sundaram et al., 1997). Although there has been some debate about satisfaction and loyalty, where the satisfaction does not always result in repeat customers, a wide variety of studies have been done to support the link between the impacts of customer satisfaction on behavioural intentions and these have been discussed in the academic literature (Patterson and Sperg, 1997). A customer being satisfied usually leads to an intention to return (Susskind, 2001). Increasing the percentage of customers who plan to return from 79% to 81% will double a company’s profit (Naumann, 1995). A customer being satisfied also increases customer loyalty (Tam, 2000). Pong and Yee (2001) have found that it costs three to five times as much to attract a new customer as it does to retain the existing customers. Customer loyalty and the retention of business are ways of safeguarding long-term business survival (Donovan and Smaler, 1994) because they will encourage repeat purchase (Wan Halim and Hamed, 2005). Customer satisfaction involves attitudinal, behavioural and emotional commitment to the restaurant. Thus, the impact of satisfied customers goes beyond repeat purchasing and loyalty. They occasionally express their satisfaction to others through positive behaviour, especially positive, word-of-mouth recommendation (Wan Halim and Hamed, 2005). A study conducted by Baloglu (2002) on the behaviour of loyal customers visiting a casino found loyal customers not only spend more in restaurants, coffee shops and gift shops, but also make positive statements, recommendations and referrals, i.e. word-of-mouth promotion that is a critical and powerful part of any marketing strategy (Kessler, 1996), particularly for new businesses and independent restaurants with limited marketing budgets (Susskind, 2002). Most of the available global research on customer satisfaction with restaurants focuses more on the factors of dining satisfaction from the customers’ side, and the impact of customer satisfaction to the restaurant. Those studies focused on nutrition and weight control in dining (Glanz et al., 1998), determinants of dining satisfaction and 2 return patronage (Kivela et al., 1999), fine cuisine and good company (Andersson & Mossberg, 2004), word-of-mouth (Barry et al., 2005), high satisfaction (Namkung & Jang, 2008), and ultra-fine dining (Basil & Basil, 2009). By contrast, utilitarian aspects have been widely investigated using certain mechanistic scales, such as SERVQUAL or DINESERV, over-focusing on just service quality. In total, these studies seek to clarify a particular aspect of the dining experience, which contributes to the literature in the field. There is a limited number of studies into the processes involved in dining experience despite the fact that dining is one of the most important expenditure of daily life. The latest by Distefano (2007) claimed the dining experience consumption includes all aspects from the moment customers first make contact with the dining room's to the moment they exit after paying their bill. Also, there is lack of consensus amongst the research community on how best to manage the influence of satisfaction within restaurant. Yuksel and Yuksel (2002) agreed that the development of a conceptual model that helps restaurateurs to understand what customers need in terms of a process of satisfactory dining experience and how the factors influencing satisfaction can be better managed to improve satisfaction has not yet received enough attention. The lack of research into the management of customer dining experience process means the nature of customers and their subjective interactions with the restaurant are not fully understood. The research into the on-site experience will provide a deeper understanding of the interaction between customers and factors influencing satisfaction and the management of those satisfaction influences in terms of how the restaurateurs run their businesses that contribute to the process of customer satisfaction dining experience. These are amongst the research areas that are left without attention and this study will explore. This knowledge could, in turn, lead to the development and application of sustainable restaurant management practices at the restaurants. Consequently, this study seeks to understand customers’ satisfaction dining experience in their own terms. 3 1.3 OVERVIEW OF THE STUDY 1.3.1 Research Questions The research questions of the study were: a) What are the factors that influence dining experience satisfaction in Malaysian Malay restaurants and how do these factors affect the experience and satisfaction of customers? b) How are the factors and processes that influence customer dining experience satisfaction in Malaysian Malay restaurants are best managed? c) What is the conceptual framework for customer dining experience satisfaction in Malaysian Malay restaurants? 1.3.2 The Study Content To answer these research questions this study focused mainly on the factors influencing customer satisfaction with the dining experience in three Malay restaurants. A qualitative research method was adopted for this study to provide in- depth data. An overview if the study as shown in Figure 1.1 4 Figure 1.1: Overview of Study Qualitative research method Transformation of customer satisfaction dining Inputs of customer experience inputs Outcome of customer satisfaction dining (Visiting the restaurants/ satisfaction dining experience experience dining experience) Malaysian Malay Proposed conceptual restaurants framework of satisfaction dining experience Interaction with the restaurant, customer dining experience Implication for customer/ restaurant management 1.3.3 Research Locations The restaurants that were involved in this study are Malay restaurants located in the capital city of Johor state, Johor Baharu. These restaurants have Halal Certification in selling Halal products and services under the mid-market family restaurants of the type 1 Food Store Category and adopt Malay race concept in terms of menu, service and ambience (Malay décoration and background music). These criteria are quite similar to criteria in other Malay family restaurants of the world. The criteria are explained in Chapter 2: The explanations of the reasons for the choice of these restaurants are set out below. In relation to the contribution to the understanding of restaurants in Malaysia, the three Malay restaurants were chosen because they are the most established and well known Malay restaurants in Johor Bahru city centre that adopting Malay traditional 5 concept, patronized by a lot of customers that signed satisfaction to the researcher and willing to participate in the study. In relation to the wider transferability of the results, and the contribution to our knowledge of customer satisfaction with the dining experience in general, the three Malay family restaurants were chosen because they are owned and managed by Malays that offered factors that might influence dining satisfaction such as big number of restaurant capacity, various type of service (self service, table service and take away) and food quality particularly menu variety. a) SBR SBR is situated at a corner of shop lot in Larkin Perdana. It opens six days a week at 7.00 o’clock in the morning until 4.00 o’clock in the afternoon. The SBR is owned and managed by a Malay family. It can occupy up to 200 customers and adopted modern Malay concept for interior design and service style while Malay traditional concept for staff uniform and food/ drink. The SBR offers various type of noodle, Malay local kuih, Roti Jala, Roti Canai and Nasi Lemak for breakfast and more than 60 Malay traditional dishes for