Analyzing Factors Impacting Customer Loyalty in Tashkent Restaurants

This project, conducted for a 6BABM course, investigates the factors impacting customer satisfaction and loyalty within the restaurant industry in Tashkent. The study addresses the need for strategic initiatives and customer analysis in a competitive market, particularly in the face of the COVID-19 pandemic. The research explores the influence of restaurant location, price, brand image, food quality, and service quality on customer loyalty. The methodology employs a positivism research philosophy and a deductive approach, utilizing a quantitative research method with descriptive research and a survey strategy. The research aims to identify key service quality factors, evaluate their importance, determine their impact on customer satisfaction and loyalty, and provide suggestions to restaurant management for service improvement. The project includes a literature review supporting the hypotheses and outlines the research approach, data collection methods, and time horizon.

Course: 6BABM
Project title: What kind of factors impact on customer satisfaction and loyalty in restaurant
industry in Tashkent?
Name:
Student email address:
Supervisor:

Introduction
Today, in the face of the COVID-19 epidemic, the country's and the world's severe
financial situations, and intense competition in all markets and industries, the food
business is becoming one of the most susceptible, necessitating the proper strategic
initiatives and customer analysis. The truth is that most consumers can easily refuse
food from cafes and restaurants because it is always cheaper to prepare food at
home. The restaurateur environment is a worldwide competitive economy that forces
food and beverage establishments to provide high-quality products or services,
maintain productivity and consistency, and provide customer loyalty in order to stay
in business and thrive. Furthermore, throughout the pandemic, it is worth noting that
between April 1 and June 19, 37 cafes and pubs in Tashkent city were closed
(Sorochin,2020). As a result, there is a need to build and retain client loyalty, which
has been identified as the most crucial criteria for an organization's success in this
competitive market because it provides a competitive edge, which is confirmed by
Nasir (2017). For stronger support, it is worth considering the viewpoint of Jacobsen,
Olsson and Sjovall (2004), who claims that customer loyalty is defined by customers'
strong desire to acquire items or services from the same company on a regular
basis. Regular consumers not only purchase products or services on a regular basis,
but also refer others to visit and purchase the same or similar items. So, customer
loyalty must be built and maintained in order for sales and organizational growth to
be successful (Roghanian and Gheysari, 2013). As a result, the sector is faced with
a challenging task: identifying the characteristics that influence customer loyalty so
that customers return to the restaurant walls time and time again. Building loyal client
relationships and addressing customer wants can simply assist restaurant firms to

gain more marketing share once they are able to match the expectations of local and
international customers. Several studies have been conducted on the elements that
influence customer loyalty and satisfaction in numerous industries, including aspects
such as ease of getting items, supplementary services, product or service cost,
quality, brand, and customer value. However, no empirical research on the Tashkent
restaurant business has been undertaken to determine what characteristics influence
consumer loyalty. This paucity of information on the factors that influence customer
loyalty in the Tashkent restaurant industry motivates us to conduct this research,
which will look at several specific factors such as restaurant brand, service quality,
location and delectable cuisine, price and interior that influence customer loyalty to
Tashkent restaurants.
Literature review
Location of the restaurant
A restaurant's location is also a significant component that influences customer
loyalty and retention. According to studies, restaurants that are located in prominent
locations, have ample parking, and a ventilated and clean physical environment
attract guests and have a good impact on their intent to return (Minai and Lucky,
2011). According to a study conducted by Boo (2017), these characteristics
contribute to customer retention because a fair price cannot attract customers if the
restaurant's physical surroundings are poor. Zhong and Moon (2020) looked into the
factors that influence customer loyalty in fast food restaurants. According to the
findings, a restaurant's accessibility and exposure are critical factors in maintaining
customers and achieving strategic success. As a result, it is acceptable to assume:

H1: Restaurant location influences consumer loyalty positively.
Price
Price has long been regarded as a critical component in determining customer
behavior. It can be defined as "the amount paid by the customer for the goods or
service" (Andriyani and Hidayat, 2021). The pricing of menu items varies from
restaurant to restaurant in the restaurant sector. Empirical research looked into the
link between price and consumer happiness. Customers' pleasure is influenced by
pricing, according to Campbell and Fairhurst (2016). They also discovered that the
client compares his or her current payment to the expected compensation,
determining whether the actual compensation is higher or lower than what he or she
believes is necessary. If he or she notices a pricing balance, he or she is likely to be
pleased with the restaurant's amenities. According to a survey conducted by Javed
et al. (2021), ⅙ of students say that pricing is the most important factor in deciding
whether or not to dine out at a particular restaurant. Furthermore, Aldaihani and Ali
(2018) discovered a direct link between price and consumer happiness. Customers
who are confident that they are receiving superior quality products or services are
more likely to remain loyal in the long run. As a result, we propose the following
hypothesis:
Hypothesis 2: Price influences consumer happiness.

Brand image
Because it represents an organizational exceptionality in terms of products and
services, brand image plays a key part in forming an image about a firm and its
products and services (Aldaihani and Ali, 2018). Additionally in the research of
Touzani and Temessek (2009) it was discovered that brand image has an impact on
behavioural elements, particularly customer loyalty. Some businesses have seen
significant sales declines as a result of a negative brand image. For instance, Tesco
in the United Kingdom saw significant sales declines as a result of the horsemeat
incident, which severely harmed its brand image (Rather and Hallebeek, 2019). Plus
based on the opinion of Ergun and Kitapci (2018) customers remain loyal to a brand
because it transmits a positive organizational image to customers, particularly in the
case of physical products and service exchanges. As a result, we can speculate that:
Hypothesis 3: There is a positive correlation between a restaurant's brand image
and customer loyalty.
Food Quality
When it comes to the dining experience in a restaurant, food quality is a
distinguishing aspect (Majid et al, 2018). It refers to the factors that have a significant
impact on consumers' intentions when dining in a restaurant. Furthermore, when it
comes to pleasing the target market, delivering high-quality cuisine is critical. As a
result, it makes it easier for the company to grow its market share (Haghighi et al.,
2012). Furthermore, according to Gagic et al. (2013) research, food quality is seen
as a critical factor in determining the restaurant industry's success. According to
Truong et al. (2017), the most important attribute among all restaurant dimensions
supplied to clients is food quality, which has a pragmatic relationship with customer

satisfaction and brand loyalty. Furthermore, in a restaurant, food quality is
determined by its freshness, temperature, and the ability to serve flawless cuisine on
any given occasion. As a result, we propose the following hypothesis:
Hypothesis 4: Food quality has a positive correlation on customer loyalty.
Service Quality
Service quality is recognized as a global concept for all industries and an essential
necessity for all customers, regardless of the products and services they provide
(Javed et al., 2021). Moreover it is suggested that the profitability of a company and
its potential to continue growing were primarily driven by the quality of its
services.Additionally, numerous studies have found substantial links between
product service quality and customer happiness, readiness, and intention to buy
again, as well as their verbalization and ongoing allegiance to a certain organization.
For example, according to Bujisic, Hutchinson, and Parsa (2014), service quality is
just as significant as food quality and plays a critical impact on customer retention.
Moreover, service quality is an important factor of consumer happiness in the
restaurant business. Based on the opinion of Weiss, Feinstein, and Dalbor (2005)
service quality is regarded as a critical element for the performance of restaurants in
uncertain market conditions, because it has a significant impact on consumers'
behavior because it produces either contentment or discontent. As a result, it may be
concluded from past studies that improved service quality leads to a satisfied
consumer, who then becomes loyal to the business. As a result, the following
hypothesis is proposed:
Hypothesis 5: Customer loyalty is influenced by the level of service provided.

Research question and objectives
Research question:
To achieve the goal of the study, the following research question was formulated:
What kind of factors impact on customer satisfaction and loyalty in restaurant
industry in Tashkent?
Research objectives:
The following objectives were identified, which will serve as a guide in the research
process to achieve the desired result:
1. To identify main service quality factors and attributes for restaurant industry
2. To evaluate the importance of service quality factors and attributes in terms of
customers’ perception.
3. To determine the level of impact of the quality of service on the level of customer
satisfaction and loyalty in restaurants.
4. Give suggestions to the restaurant management to improve the quality of service
to customers.
Methodology
Research philosophy
Research philosophy is a researcher's view of the methods by which data about a
phenomenon should be collected, interpreted and used. According to Mark
Saunders, there are four major type of philosophies: positivism, realism
interpretivism and pragmatism (2009). The goal of this study is to apply positivism as
a research philosophy, which allows for a more qualitative research technique. Gill
and Johnson highlighted that positivism research philosophy is a highly structured

methodology that is utilized to facilitate replication. In addition, positivism research
philosophy emphasizes quantifiable observations that lend themselves to statistical
analysis (2010). Mark Saunders mentioned that the positivism research philosophy is
used in most studies that assess the relationship of independent and dependent
variables and methods, such as large samples, measurements, and usually
quantitative methods of analysis (2009).
Research approach and data collection
Choosing the right research approach is like choosing the right key to unlock a door.
Only after choosing suitable research approach, it will be possible to apply the
appropriate methods, and then the results will be reliable and valid (Vijay Grover,
2015). A research approach is a design and procedure that includes steps from
general assumptions to detailed methods for collecting, analyzing, and interpreting
the data. As Soiferman stated research approach is divided in two types: deductive
and inductive approaches. The major distinction between deductive and inductive
approaches is that deductive approaches test existing theories, whilst inductive
approaches build theories (2010). As the hypotheses of the study will be tested by
using quantitative data collection, deductive approach is considered as the most
appropriate for this study. In addition, it helps to identify specific restaurant attributes
that restaurant management should primarily focus on.
Methods
All in all, there are two qualitative and quantitative types of research. Qualitative
research is concerned with understanding important traits in small data sets,
whereas quantitative research is concerned with testing hypotheses or identifying
patterns in huge volumes of data. For the current study it is aimed to use quantitative

research method in order to collect data. So, descriptive research is the most
suitable method for present paper. As data will be conducted by formulated
questionnaire. Descriptive research is quantitative in nature since it aims to collect
data and evaluate it statistically. Descriptive research is a useful research method
that allows researchers to gather data and use statistical analysis to characterize the
demographics of that data.
Research strategy
The research strategy defines the general direction of the research, including the
process of its implementation. The research strategy has diverse like grounded
theory, experimental, survey, case study, action research and ethnography research
designs. In present study survey research will be used as it is the most common type
of quantitative research method. The term “survey research” refers to the practice of
collecting data from a group of individuals by asking them questions (Ponto, 2015).
Time Horizon
The choice of a suitable time horizon is very important when developing a research
project methodology. There are longitudinal and crosssectional types of time horizon.
This study will be longitudinal as it will be conducted during the academic year 2021-
2022.
Sampling Techniques
A sample is a subset of a bigger group of individuals. The selection of a group from
whom the researcher will gather data for the study is referred to as sampling.
Probability sampling method and non-probability sampling method are considered as
a type of sampling. Probability sampling is a low-cost method that may even be

carried out by non-technical people. Probabilities can be objectively attributed to
each unit of the population. This method requires a very precise population
definition. Meanwhile, under non-probability sampling method every unit of
population does not have an equal chance of participating in the research. There is
no selection at random. The sample is chosen by the researcher based on his
subjective evaluation (Sanjoy Datta, 2018). According quantitative research method,
in present research probability sampling technique will be used.
Data Collection Method
Data collection is the systematic process of gathering and measuring information on
variables of interest in order to answer research questions, test hypotheses, and
assess results. Data collection has two types of data as primary and secondary.
Primary data is data that has been gathered through first-hand experience. Primary
data is data that has not been published, which makes it more objective and reliable.
Primary data has a higher level of validity than secondary data. Therefore,
secondary data is information collected from a source that has previously been
published in some form. Any study's evaluation of the literature is dependent on
secondary data (Syed Muhammad Sajjad Kabir, 2016). Moreover, data of this paper
will be conducted by primary data.
Assessing the quality of research:
The current study will be done by using quantitative research method that based on
two major factors: validity and reliability. The degree to which a concept is accurately
quantified in quantitative research is defined as validity. Reliability is the degree to
which a research tool consistently produces the same results when used over and
over in the same situation.

Ethics, resource and access
It is planned to visit restaurants in Tashkent, which are being studied in order to
obtain the necessary information. Furthermore, it is intended to get acquainted and
understand the restaurants, use the existing contacts, determine the benefits for
access to restaurants. Moreover, suitable language will be used while making survey
questions. In addition, obtaining access that is congruent with the study topic,
associated objectives, and strategy is critical to data collection. The first level of
access is physical access. Physical access is always a challenge since
organizations and individuals may not be prepared to participate in additional
volunteer activities.
Timetable for completion
Tasks Time
Proposal 2nd of December
Questionnaire for collecting data 10th of December
Meeting with supervisor for feedback 17th of December
Pilot 20th -25th of December
Data Collection 5th-20th of January
Data Analysing 1st-15th of February
Results 16th -28th of February
Summary 1st-10th of March
Completion of the research 15th of March-1st of April

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