Factors Influencing Customer Satisfaction and Its Contribution on Customer Loyalty:Case of Restaurant Industry in Turkish Republic of North Cyprus

Abstract

Purpose – The purpose of our study is to analyze the customer satisfaction and loyalty in restaurantindustry in Turkish Republic of Northern Cyprus. Considering the restaurant industry, the literature revealsthat food quality, service quality, price, location and restaurant atmosphere are the key determinants ofcustomer satisfaction. Although positive relationships were reported in many studies between thetraditional determinants and customer satisfaction, it is important to investigate these factors in TRNC sincethe dynamics and culture of each country can be different. Design/methodology/approach – In this study, 7-point Likert scale survey instrument was constructed andonline questionnaire distributed to survey 356 customers through convenience sampling method.Classification and Regression Tree (CART) Analysis was used to test the hypotheses. Findings – Our findings indicate that service quality and food quality make significant contribution oncustomer satisfaction and there is a positive relationship between customer satisfaction and customerloyalty. In addition, food quality is the most important factor influencing the customer satisfaction inrestaurant industry. Discussion – In addition to traditional determinants, usage of mobile application and presentation showsin restaurants were incorporated into the proposed research model to examine the relationship withcustomer satisfaction. Mobile application and presentation shows were rarely investigated in restaurantindustry and since there is a hyper-competition in restaurant industry, it is important to find new ways thatcan promote to customer satisfaction. Furthermore, the relationships between customer satisfaction andloyalty is investigated.