Consumer Loyalty in Fast-Food Restaurants in Saudi Arabia By Sulafah Bukhari Thesis Supervisor: Professor Sadrudin Ahmed A Thesis Submitted to the Faculty of Graduate and Postdoctoral Studies in Partial Fulfillment of the Requirements for the Degree Master of Science in Electronic Business Technologies Electronic Business Technologies Faculty of Engineering University of Ottawa © Sulafah Bukhari, Ottawa, Canada, 2015 Table of Contents LIST OF TABLES ............................................................................................................................................................... IV LIST OF FIGURES .............................................................................................................................................................. VI LIST OF APPENDICES ...................................................................................................................................................... VII ABSTRACT ....................................................................................................................................................................... VIII ACKNOWLEDGMENTS ...................................................................................................................................................... IX CHAPTER 1: INTRODUCTION ................................................................................................................ 1 1.1 RESEARCH PROBLEM ........................................................................................................................................... 3 CHAPTER 2: LITERATURE REVIEW .................................................................................................... 6 2.1 MAJOR CONCEPTS OF THE RESEARCH .............................................................................................................. 6 2.1.2 Consumer loyalty in fast-food restaurants ........................................................................................ 8 2.1.3 Consumer loyalty in fast-food restaurants in developing countries .................................... 10 2.1.4 Background of the Kingdom of Saudi Arabia ................................................................................. 11 2.1.5 Customer loyalty in Saudi Arabia ........................................................................................................ 11 2.1.6 Restaurant settings in Saudi Arabia .................................................................................................. 12 2.1.7 Fast-food restaurants in Saudi Arabia .............................................................................................. 13 2.2 CONCEPTS AND TERMS RELATED TO THE RESEARCH PROBLEM .............................................................. 14 2.2.1 Satisfaction with restaurant attributes ............................................................................................ 14 2.2.2 Satisfaction with restaurant attributes in developing countries .......................................... 15 2.2.3 Achievement motivation ......................................................................................................................... 16 2.2.4 Rokeach values ............................................................................................................................................ 17 CHAPTER 3: AL-BAIK RESTAURANT ................................................................................................ 20 CHAPTER 4: OBJECTIVES AND RESEARCH QUESTIONS AND HYPOTHESES ........................ 22 4.1 RESEARCH OBJECTIVES ..................................................................................................................................... 22 4.2 RESEARCH QUESTIONS (Q) AND HYPOTHESES DEVELOPMENT (H): ....................................................... 22 4.2.1 Hypotheses development ......................................................................................................................... 23 4.2.2 Research questions .................................................................................................................................... 35 4.3 CONCEPTUAL FRAMEWORK .............................................................................................................................. 38 CHAPTER 5: METHODOLOGY .............................................................................................................. 40 5.1 QUESTIONNAIRE ................................................................................................................................................. 40 5.2 CONSTRUCT OF MEASURES ............................................................................................................................... 42 5.3 DATA COLLECTION ............................................................................................................................................. 47 5.4 PREPARING THE DATA FOR THE ANALYSIS .................................................................................................... 48 CHAPTER 6: RESULTS ............................................................................................................................ 49 6.1 RESPONDENTS’ GENERAL PROFILES ............................................................................................................... 49 6.2 DESCRIPTION OF RESPONDENTS’ BEHAVIOR TOWARDS FAST-FOOD RESTAURANTS ........................... 52 CHAPTER 7: DATA ANALYSIS AND RESULTS ................................................................................. 55 7.1 FACTOR ANALYSIS .............................................................................................................................................. 55 7.1.1 Summary of factor analysis ................................................................................................................... 59 7.2 CORRELATION ANALYSIS ................................................................................................................................... 59 7.2.1 Summary of correlation analysis of antecedents of loyalty behavior of consumers ..... 65 7.3 REGRESSION ANALYSIS ...................................................................................................................................... 65 7.3.1 Summary of regression analysis of antecedents of loyalty behavior of consumers ...... 72 7.4 HYPOTHESIS TESTING OF ANTECEDENTS AND CONSEQUENCES OF LOYALTY BEHAVIOR OF CONSUMERS ..................................................................................................................................................................... 72 ii 7.4.1 Restaurant atmosphere (H1a) ............................................................................................................... 73 7.4.2 Price consciousness (H1b) ........................................................................................................................ 74 7.4.3 Service quality (H1c) .................................................................................................................................. 74 7.4.4 Restaurant facilities (H1d) ....................................................................................................................... 75 7.4.5 Food quality (H1e) ....................................................................................................................................... 75 7.4.6 Menu variety (H1f) ...................................................................................................................................... 76 7.4.7 Speed of food delivery (H1g) ................................................................................................................... 77 7.4.8 Location (H1h) .............................................................................................................................................. 77 7.4.9 Age (H2a) ......................................................................................................................................................... 78 7.4.10 Gender (H2b) ............................................................................................................................................... 79 7.4.11 Level of education (H2c) ........................................................................................................................ 80 7.4.12 Nationality (H2d) ...................................................................................................................................... 81 7.4.13 Income (H2e) ............................................................................................................................................... 82 7.4.14 Attitude towards Al-Baik with behavior intention (H3) .......................................................... 83 7.4.15 Behavior intention with behavioral loyalty (H4a) ...................................................................... 83 7.4.16 Behavior intention with attitudinal loyalty (H4b) ...................................................................... 83 7.4.17 Achievement motivation with loyalty behavior of consumers (Q1) .................................. 84 7.4.18 Terminal values with loyalty behavior of consumers (Q2) .................................................... 86 7.4.19 Instrumental values with loyalty behavior of consumers (Q3) ........................................... 88 7.4.20 Summary