Analysis of Restaurant Factors Relating to Consumer Repurchase

This report examines the factors influencing customer repurchase in the restaurant industry, focusing on the United Kingdom, specifically London. The research aims to identify methods restaurants use to encourage repeat business and customer loyalty, as well as the impact of ethical business practices. The study employs a qualitative approach, collecting data through questionnaires administered to a sample of 150 customers. The findings suggest that customer loyalty is a challenge for restaurants in the UK, prompting a need for restaurateurs to actively engage in strategies to retain customers. The report explores various factors affecting repurchase, including purchasing power, marketing campaigns, brand reputation, and convenience. It also investigates methods to resolve issues and regain customers who do not make repeat purchases, offering insights into the importance of customer satisfaction and the role of ethical practices in fostering loyalty. The report's structure includes an introduction, literature review, methodology, data analysis, and conclusion with recommendations for restaurant owners to enhance customer retention.

RESTAURANT FACTORS
RELATING TO
CONSUMER
REPURCHASING TENSION

ABSTRACT
This present dissertation is about the Restaurant, Factors relating to consumer repurchase. The
aim of the study is To identify the factors affects the consumers in order to repurchase from the
same restaurant they usually use”. A study on restaurants of United Kingdom (London). The
objectives of this research are To identify the methods that restaurant use in order to make their
customer to repurchase from them again and stay loyal to the business, to determine the positive
or negative impact of operating ethical business practice on consumer repurchasing from the
same businesses, to identify the way to resolve the issues to bring the customer back when
customer do no make repurchase from the same restaurant and to provide ways to the restaurant
business owners that helps to make loyal customers.
Customers are the heart of the businesses either it is small or big enterprises. Restaurant
employs high efforts to make their customers highly satisfied. It is very important for the
restaurants or businesses because of high competition in the market and it becomes highly
challenging for firms to retain their customers for longer period. Further, this present study was
based on qualitative methods and data was collected from primary methods through survey via
questionnaire. The sample selected was 150 customers as they were the best and most suitable
subset to solve the issues and research questions. Moreover, the research comes to the conclusion
that customers were not loyal to the restaurants as they explore new restaurants as UK
restaurants are not able to keep their customers loyal to the company. Restaurateurs have to put
efforts to keep the customers attached towards the company.

TABLE OF CONTENTS
ABSTRACT ....................................................................................................................................2
TOPIC..............................................................................................................................................1
CHAPTER 1: INTRODUCTION....................................................................................................1
Research Background..................................................................................................................1
Aims and Objectives...................................................................................................................2
Rationale.....................................................................................................................................2
Significance of the Research.......................................................................................................3
Problem Statement......................................................................................................................3
Chapter Structure........................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
Introduction.................................................................................................................................4
Theme 1: Methods that restaurant use in order to make their customer to repurchase from
them again and stay loyal to the business...................................................................................5
Theme 2: Positive or negative impact of operating ethical business practice on consumer
repurchasing from the same businesses......................................................................................6
Theme 3: Way to resolve the issues to bring the customer back when customer do no make
repurchase from the same restaurant...........................................................................................9
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10
Introduction...............................................................................................................................10
Research Type...........................................................................................................................11
Research Philosophy.................................................................................................................11
Research Approach...................................................................................................................12
Research Design........................................................................................................................12
Sampling...................................................................................................................................13
Data Collection..........................................................................................................................13
Data Analysis............................................................................................................................14
Ethical Consideration................................................................................................................14
Research Limitations.................................................................................................................15
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION....................................................15

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................35
Conclusion.................................................................................................................................35
Recommendation.......................................................................................................................36
REFERENCES..............................................................................................................................38
Books and Journals:..................................................................................................................38
Online:.......................................................................................................................................41
APPENDIX....................................................................................................................................42
Questionnaire............................................................................................................................42

TOPIC
“Restaurant, Factors relating to consumer repurchase”.
CHAPTER 1: INTRODUCTION
Research Background
Customers are the heart of the businesses either it is small or big enterprises. Customers
are the individual or business that purchases the goods and services of the company. Customers
are the foundation of the business as no other business could achieve success without satisfying
there customers. Organisations put efforts to make the customers highly satisfied and happy with
the products and services of the company (Khalilzadeh, Ozturk and Bilgihan, 2017). Loyal
customers acts as an ambassadors of the company. It is true that satisfaction of customers does
not impact on the bottom line of the business but it also influences the moral e of ream and
retention rate. For survival, business requires money and to make money firm requires
customers. It is very important that businesses should understand the customers so that customer
visit again and again to the purchase the goods and services of the company. The most valuable
and worthy asserts are customers. Organisation put efforts to make the customer satisfied and
loyal towards the company. Companies put efforts to the highest extent so that they could make
the customer to repurchase from the same products of the firm. There are various factors that
affects the customers in order to repurchase from the same firm are purchasing power, group
influence, personal preference, economic conditions, marketing campaign, product placement,
brand name or reputation, pricing, packaging, convenience and many other factors. Thus, these
are all factors that are related to the repurchase of product and services of the same company.
These factors influence the customers repurchase especially in services sectors because in
services sectors customers are majorly influence through services and less from the products.
This present research is based on the restaurants in united Kingdom. The main purpose of
this research of the factors relating to customer repurchase tension for restaurant is to find our
ways customer would repurchase from the same place and what makes them to stay loyal to a
specific restaurant and why they would or would not go and provide customer somewhere else.
In addition to this, another intention of conducting this research is to study the ways that
restaurants could bring back their customers which are not satisfied with the services. IN
addition to this, restaurant do not only provides views of the business's bit it will also give a deep
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information from customer point of view that why they use different restaurants or why they
remain loyal (Kim, Youn and Rao, 2017).
Aims and Objectives
Aim:
“To identify the factors affects the consumers in order to repurchase from the same
restaurant they usually use”. A study on restaurants of United Kingdom (London).
Objectives:
 To identify the methods that restaurant use in order to make their customer to repurchase
from them again and stay loyal to the business.
 To determine the positive or negative impact of operating ethical business practice on
consumer repurchasing from the same businesses.
 To identify the way to resolve the issues to bring the customer back when customer do no
make repurchase from the same restaurant.
 To provide ways to the restaurant business owners that helps to make loyal customers.
Research Questions:
1. What are the methods that restaurant use in order to make their customer to repurchase
from them again and stay loyal to the business?
2. What are the positive or negative impact of operating ethical business practice on
consumer repurchasing from the same businesses?
3. What are the way to resolve the issues to bring the customer back when customer do no
make repurchase from the same restaurant?
4. What are the ways to the restaurant business owners that helps to make loyal customers?
Rationale
Customer Satisfaction or Loyal customers are the most important part of the company as
they are the heart of the business. It is very important for all the business's to retain their
customers. The reason for conducting this research is to identify the factors which are associated
with the customer repurchase as restaurants were tensed to retain their customers. It is not so
easy to retain the customers for longer time period so firms put efforts to make the customer
loyal. Organisation organise marketing campaign and employ various other marketing strategies
to attract the customers. This topic is the current issues in United kingdom because of high
competition as the concern of restaurants is increasing to retain the customers as well as to make
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to them loyal to the services and products. Organisations are building on the other hand, another
reason for choosing this topic is the academic interest of researcher. By conducting this research,
researcher will gain the understanding and knowledge of this topic along with research
methodologies, data collection, survey and all other important section of research. Researcher
gains the proper understanding of the research methodologies which is very important for the
career of the scholar. Further, this research study was also conducted for the users or readers as
this investigation will help business owners to retain there customers for longer period as well as
gain understanding of those factors which are quite important for repurchase of customers.
Significance of the Research
The significance of the research is outstanding for the users or readers as well as for
researcher. This investigation will outline the importance of customers for the survival and
profitability of the business. So, through this investigation, researcher will identify those factors
that influences the customer for repurchase of the same products of the restaurant. Organisation
will start putting efforts which positively influence the customer behaviour as well as their
purchasing decision (Kang, Lee and Namkung, 2018). So, this study is very useful for the
business owners and other readers who want to understand the factors. In addition to this, this
research is also very important for the scholar as in future if scholar would open up any business
like restaurant or any other, the knowledge gain from this study will be very helpful
Problem Statement
This present research is based on the factors affecting the customers in order to
repurchase from the same restaurant they usually use. Restaurant employs high efforts to make
their customers highly satisfied. It is very important for the restaurants or businesses because of
high competition in the market and it becomes highly challenging for firms to retain their
customers for longer period. There are various issues faced by the organisation in understanding
the behaviours and expectations of customers due to highly advancement in the variety of foods
available in the market. Thus, it is very problematic situation for the organisations to build loyal
customers and repurchase of customers. On the other hand, there are some problems faced by
researcher in conducting this investigation too like unavailability of data, risk of theft and loss of
data, issues faced by the researcher.
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Chapter Structure
CHAPTER 1. INTRODUCTION: This is the first chapter of dissertation that outlines the
overview of the topic i.e. factors affects the consumers in order to repurchase from the same
restaurant they usually use. This chapter provide the aims, objective and research questions.
Further, it also explains the reason for choosing the topic, significance of this topic and problem
statements.
CHAPTER 2. LITERATURE REVIEW: This is the second chapter of dissertation.
Literature review is the like article to review and it is a scholarly paper that includes the current
knowledge inducing substantive findings to a particular topic. This present literature review will
provide the clear understand of the topic and it is based on themes which is formulated with the
research objectives.
CHAPTER 3. RESEARCH METHODOLOGY: This chapter is based on the
implication of research methods. With the help of research tools, researcher collect, analyse and
interpret the data. It is not possible to reach the aim and objectives without using tools and
techniques.
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION: This chapter is said to
be the most important chapter of the investigation as all the data related to the topic is collected
and analysed to determine the meaningful information.
CHAPTER 5: CONCLUSION AND RECOMMENDATION: This chapter is last
chapter that provide entire summary study that help in valuing data which are collected by
scholar. Various recommendations are provided by researcher to private business owners of the
restaurant in UK. Further, conclusion provides the gist of entire chapters discussed in the report.
CHAPTER 2: LITERATURE REVIEW
Introduction
Literature review is one of the crucial part of the study as it provide deep insight
information of the research and it also helps readers and users to understand the topic. It is a
descriptive, analytic summary of the existing material relating to a particular topic or area of
study. In this present literature review, researcher will formulate themes on the basis of research
objectives and use various authors to critic the views and opinions of the researcher.
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Theme 1: Methods that restaurant use in order to make their customer to repurchase from them
again and stay loyal to the business.
As per the Hair and et.al., (2015) the foundation of the company or businesses are
customers as without customers firm cannot survive in the market. Loyal customers are the
backbone of the business and it not only provide a regular stream of revenue as well as generally
out-spend newer customers, they also return more often and serve as word of mouth marketers
helping to build the reputation of the restaurant in the society or community. There are 86627
restaurants as well as mobile food service firm in United Kingdom. So, the level of competition
is very high in the food market. Restaurant have to put efforts to make their customers to
repurchase from them again and stay loyal to the business. Hyun and Perdue, (2017) argued that
competition does not influence the repurchase of customers as the important thing is to provide
the products as per the needs and expectations of customers. If the food offered by the customers
is according to the requirements of consumes than it will easily build up loyal customers. But,
consistency is very important to maintain for making repurchase of the customers.
As per the views of Hill and Alexander, (2017) marketing campaign of the products and
services are the fundamental methods that restaurant and other businesses use in order to make
their customer to repurchase from them and stay loyal to the businesses. The restaurant industry
is one of the most competitive sector in existence and making the search for new way to draw in
business a constant priority. It is true that regular focus on advertisement plays an effective role
in influencing the purchasing decision of the customers. Through marketing campaigns,
restaurants owners used to display discount offers for regulars customers. For example, combo
offers, vouchers, discounts offers like 15 percent, free deliveries etc. Through this strategy,
restaurant owners make the customers to repurchase again and again. This strategy also allows
staying customer loyal to the firm. Sekaran and Bougie, (2016) argued that, marketing campaign
is effective but it requires on regular basis in terms of repurchase because attractive new
customers and retaining existing customers are somewhat different from each others. So, for
influencing the repurchase of customers marketing campaigns needs to be ion regular basis.
According to the Heo, (2016) customer service is also another method that need to
consider in raising the repurchase of the services of same restaurant. It is not only enough to raise
the quality of food and services but for building loyal customers, it is very important to have
personal interaction of customers. For example, McDonald's used to send text messages to their
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customers informing the orders, discounts and others. However, Lee, Back and Park, (2017) said
that, restaurants are now using advance technologies in building the customer's satisfaction,
staying loyal customers and attracting the potential customer's too. Advance technology include
robotic waiters, kitchen display screen system, self order kiosk at table and many other machines
that raises the customer satisfaction. Restaurants are installing these machines inside the
premises so that customer feel special and stay loyal to the firm. Quirke, (2017) argues that, for
retaining customers or to make customer for repurchase, It is very important to have personal
interaction because machines like robotic waiters, kitchen display screen system leads the
customer away from the restaurants. Technology can only work after the input but humans have
power to understand the customer more preciously. For example, the Chinese banquet service,
these are the type of restaurant having waiter services like each waiter take care of a table of
group of table of 10 to 12 guest and in this type of service guest feel more relaxed because of
communal sharing dishes. However, food serve is basically pre-ordered so waiters don't have
worry about taking orders.
Holloway, (2017) articulated that, special treat to regular customers is another methods
for making customer repurchase social media tool. This is also one of the method for building
loyal customers. Restaurant have their website and pages on Instagram, Facebook, Twitter etc. so
that they can remain updated with the needs and wants of customer's. Restaurant used to post
pictures of new dishes, furniture, interior designing, customers, staff members and other
information like offer, discounts etc. to the regular customers. Limited Time Offers (LTOs) are
the common tactic's in order to attract the regular customers as in this type of offer, time is
limited so customers feel curious to take advantage of this as well as they also feel worthy and
valuable for the firm. Social media is one of the best way to lead the customer as well as to raise
the customer base. However, Han and Hyun, (2017) said that, providing extra services to regular
customers like recharge coupons, petrol and diesel coupons, or any other shopping card to the
customers so restaurant can keep their customers close and happy with them.
Theme 2: Positive or negative impact of operating ethical business practice on consumer
repurchasing from the same businesses.
According to the Grayson and Hodges, (2017) ethics are very important part for all types
of the businesses but especially in food industry. Ethics are very important to consider because it
makes it clear difference in between what is right and what is wrong. Sustainability and ethical
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practices has becomes the essence in all types of business but especially in food sector. It is true
that, trends in restaurants are changing with the passage of time and increasing customer
expectations. Initially, the owners of restaurants were satisfied by just serving delicious dishes
and quality of food to the customers. But the things are not more the same as restaurants now
have much more on their plated than preparing as well as catering effective quality of food.
However, Crane and Matten, (2016) said that, the owners of restaurants now have realized the
significance of social responsibility towards doing the right thing for society, employees,
community as well as and even towards Mother Nature. It has become an essential aspect for the
food business. Now, restaurants are showing their concern as well as care for the society and
their customers in various ways. Beside from serving quality of food to the customers, eating
houses are caring for their customers by contributing to charitable reason following some
sustainable practices and regarding charity. As per the report published by Framsmart.com 45 %
of customers prefer to eat in those restaurants who are socially responsible. Thus, it shows that,
operating ethical business practice on consumer repurchasing from the same businesses leads to
positive impact on them.
As per the views of Epstein, (2018) In past times, there have been seen many occasions
where restaurants had contributed many donations and charitable fund in the welfare for the
society. Restaurants were highly concerned about the betterment of the society. For example,
there were chain of restaurants in China who had came up and helps many people from suffering
disasters in 2005 Flood in India. The international pizza brand, Papa John's had announced their
union donation towards creating monitory helps for the victims and the CEO of this restaurant
had given their statement that they will help and save the society in every possible manner. This
case is the example of ethical practices and its positive impact on the customer purchasing
decision as is contribution had written in history. Trevino and Nelson, (2016) stated that,
corporate social responsibility and sustainable practices is not mandatory but it is very important
for the business. It is about valuing and respecting the environment and workplace without
harming anything near the surrounding. Building a good reputation and image is very important
for making customer loyal towards the organisation as it adds positive atmosphere at workplace
that favour the best image of the restaurant.
Romani, Grappi and Bagozzi, (2016) argued that, it is good to have sense of
responsibility towards the society but it seems like owners of restaurants are overburdened by the
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sustainable practices policies or corporate social responsibility. It is very difficult for the owners
like paying the employees fair wage followed by purchasing raw material from the local market
comes under the honourable point. Further, restaurant with bars in the society is also not
acceptable by some people which is also a difficult thing for the restaurateur. It also creates a
sense of relations that aids in running as well as sustaining the business. The owner of restaurants
must have an altruistic nature towards the community that also aids in exchanging the messages.
In addition to this, it is quite confusing for the restaurateurs either to practices fully of partially
regarding sustainability because ignorance leads to negative impact on the business reputation
and it also affects the purchasing decision of loyal and potential customers too. It is fact that CSR
practices and policies is crucial factors in minimising the negative reaction of customers towards
the firm as it words a shied in saving the image of the company as well as manage the customers
effectively. However, Vitell, (2015) said that, sustainable and ethical practices of the restaurateur
also saves them from any negative publicity in the market place as well as in the mind of loyal
customers. Strategic sustainable practices is always an element into financial plan by the amount
of money saved during the restaurant business. For example, there are many restaurants in UK
which are showing their great concern towards public issues like obesity and other chronic
diseases, so they have decided to come up with new menu of Gluten-free dishes to the customers.
This is another step in providing welfare to the society as well as community with dietary food
that creates additional profit stream for the firm.
Bowie, Buttle, Brookes and Mariussen, (2016) stressed that, sustainable and ethical
practices are heart of food and beverage industry as everything counts directly from treating
customer and employees that give shape to the entire business food houses. Restaurants
proposing green practices, dietary food, recyclable items, etc. it will keep the customers attached
towards the company and make them allows using same services and products of the industry. In
addition to this, it is also very important that public should know the contribution made by the
company on the staff members as well as entire customers because if they will not know than it
is not possible to make the customer repurchase. However, Grayson and Hodges, (2017) said
that, it is very essential to create a culture of emotions and respects full of dignity carrying
forwards ethical standards throughout the entire restaurant business. It is because it matters more
in today's era because if organisation ignores the social responsibility, it influenced the customer
decision for purchasing from the same restaurant.
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