iimt-sq fast food - 4 -article - feb 28 -05
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SEARCHING FOR CRITICAL SUCCESS FACTORS: A DIMENSION-SPECIFIC ASSESSMENTOF SERVICE QUALITY AND ITS RELATIONSHIP WITH CUSTOMER SATISFACTION AND
BEHAVIOURAL INTENTIONS IN FAST FOOD RESTAURANTS
Service quality has come to be recognized as a strategic tool for surviving and thriving in the
present day fiercely competitive markets. Higher quality leads to higher customer satisfaction and
also results in higher repeat purchases, cross-selling and positive word of mouth communications -all of which help the business firms achieving higher sales revenues, profits and market shares (e.g.,
aker and !acobson, "##$% nderson and Sullivan, "##&% 'olton, "## % 'oulding, et al., "##&%
)anaher, "##*% Headley and +iller, "##&% ilbert, et al ., $% !ones and Sasser, "##/% +agi and
!ulander, "##0% +c1oll-2ennedy and Schneider, % 3ucci et al ., "## % 4avas et al., "%
5eithaml et al ., "##0 6. 7n the hyper competitive markets, service firms can use superior quality even
as a positioning plank for differentiating their service products from other look-alike competitive
offers (8arasuraman et al ., "##"6. 7n view of its strategic importance, little wonder that service
quality has drawn considerable attention of the researchers in the past. Several studies have beenconducted to develop and validate the scales to measure service quality and establish its linkage with
customer satisfaction and purchase intentions.
Such studies, however, conspicuously lack in 7ndia, especially in the conte9t of fast food
restaurants which have undergone a significant metamorphosis during the last decade or so. :ast
food restaurant services sector has grown rapidly in the past and is fast catching up the fancy of
customers in the metropolitan cities and towns. 1ompetition in the market has considerably hot up
in the recent years and customers today have a variety of fast food restaurants to choose from.
;ntry of multinational fast food restaurant chains like +c)onald and 8izza Hut has changed thewhole scenario. 1oupled with increased sophistication and a rise in e9pectations, customers in
future are likely to become more selective in their patronization of fast food restaurants. favorites. 7n such a changed market place, it is but natural for the
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management of the fast food restaurants to feel concerned about consolidating their market
position and doing something to increase their market shares.
+anagement of the fast food restaurants do recognize importance of delivery of high
quality services, but they are seldom aware of the attributes which constitute core components of
customer service quality perceptions. ?nless the management know as to which of the several
service attributes are important and influence customer satisfaction and future intentions, they can
do pretty little to achieve success at this front. :indings of the studies undertaken in other
countries are likely to be of little help as the food business is largely region and culture specific
and does not permit any direct transference of knowledge from operations in one country to
another ( ilbert et al ., $% 5hou, $6. 3ecognition of service quality importance
notwithstanding, the service firms are unlikely to do more than a lip service to the cause of quality
improvement efforts unless and until the empirical evidences build up to show linkages between
service quality and customer satisfaction, and the consequent pay offs to the firms in terms of
greater customer franchise and positive word of mouth communications (for a similar emphasis, see
5eithaml et al ., "##06.
@he present study aims at filling this void in literature. @he study primarily aims at
measuring service quality and establishing its linkage with customer satisfaction and behavioural
intentions in the conte9t of fast food restaurant services in 7ndia. 7n the process, the study also
evaluates the validity and reliability of the S;3A8;3: instrument which is one of the two most
widely used and recommended scale in the service literature. @he study makes use of the data that
were collected in connection with consumer survey of fast food restaurants in )elhi " . 'esides
e9ploring service quality linkages with customer satisfaction and behavioural intentions at the
aggregative level as has mostly been done in the past researches, the present study also delves into
a dimension-specific analysis of the impact of service quality on such consequences. )imension-
specific analysis of service quality impact is a relatively a new phenomenon in the service quality
research stream (e.g., 5hou, $6 and is likely to gain the status of thrust research area in the
coming years.
@he paper is organized into five sections. Bith an introduction to the study provided in thissection, the ne9t section delves into a discussion of service quality concept and its measurement.
3elationship of service quality with customer satisfaction and behavioural intentions is attempted
in the succeeding section. 3esearch methodology used in the study and the results are discussed
ne9t. @he final section sums up the discussion and provides managerial implications and
directions for future research.
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Service Qu !i"#$ Cu%"&'er S "i%( c"i&) )* Be+ vi&ur ! C&)%e,ue)ce%: T+e C&)ce "u !Fr 'e.&r/
Concept of Service Quality and Its Operationalisation
Cotwithstanding considerable work done in the area, there e9ists no clear meaning of the
term service quality. arvin ("# *6 rightly observes in this connection that quality is a slipperyconcept which is easy to visualize but difficult to define. @he service quality literature is replete
with a diverse set of quality concepts ranging Dinnate e9cellence>, Dquantity of some ingredient or
attribute possessed by a product>, DconsumerEs preferences>, Dconformance to specifications> to
Dperformance or conformance at an acceptable price or cost> ( arvin, "# *6. ma=or reason
responsible for the lack of conceptual clarity is that the term service quality has been defined and
e9amined in the past researches from different perspectives.
ttempts made by 8arasuraman et al . ("# /, "# 6 constitute a pioneering effort in the
direction of conceptualizing and operationalising the service quality concept. n e9tensive review
of literature and focus group discussions led them to define perceived service quality as Fa global
=udgment, or attitude, relating to the superiority of the serviceG (8arasuraman et al ., "# 6. nd
based on this conceptualisation, they operationalised service quality as a difference between
consumer e9pectations of Dwhat they want> and their perceptions of Dwhat they get> (i.e., a
performance-minus-e9pectation score6. n empirically validated S;3A ? < scale was put
forward by them for measuring service quality (8arasuraman et al., "# /, "# 6 which has since
then been e9tensively applied in different service settings.
7n view of certain conceptual and methodological flaws with S;3A ? < scale, 1ronin
and @aylor ("## 6 proposed an alternate scale - referred to as S;3A8;3: scale . +ore
specifically, 1ronin and @aylor ("## 6 opined that e9pectation (;6 component of S;3A ? < be
discarded and instead performance (86 component alone be used. S;3A8;3: scale has also been
applied in a number of past studies. Bhich one of these two scales is a superior measure of service
quality has for long been a matter of debate. @he ma=ority opinion, however, now seems to be in
favour of S;3A8;3: scale ('abakus and 'oller, "## % 'oulding et al ., "##&% 'rady et al ., %
'rown et al. , "##&% 'uttle, "##0%
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would also be able to throw some light on the ongoing contentious issue whether this scale in its
present form can be applied to different service industries across countries (:urrer et al,. %
Smith and 3eynolds, "% Binsted, "##*% 5hou, $6.
Service Quality: Functional vs. Outcome Quality
7rrespective of which of the two scales is used, a problem common to both these scales is
their preoccupation with functional aspect of service quality. Outcome (i.e., technical6 quality as
emphasized in the ;uropean school of thought is altogether missing from these scales. Bhile the
functional quality is related to process or Dhow> part of the service delivery, outcome quality refers
to the result of service transaction and is concerned with what is delivered to the customer
( ronroos, "# , "## % as one of the components of customer service quality evaluations. 7ncorporation of
outcome component in the service quality framework is in line with the recommendations made by
several researchers for using industry or conte9t specific rather than a generic scale across various
service industries and conte9ts (e.g., 'abakus and 'oller, "## % 'uttle, "##0% 1arman, "## % 1ronin
and @aylor, "## % )abholkar et al ., % "# "%
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and Cguyen, "# 6. considerable body of research has emerged to suggest that customer>s
assessment of quality includes perceptions of multiple factors and it is not a unidimensional
phenomenon. @hough the ma=ority opinion now seems to be that the customer perceptions of
service quality are based on multiple dimensions, there is no agreement on the nature or number of
such dimensions. @wo to ten dimensions have been proposed and used in the past studies ( arvin,
"# *% ronroos, "# %
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7n view of the strategic relevance of such an analysis in managing service quality, the
present study too attempts a dimension-specific analysis of service quality linkage with customer
satisfaction and behavioural intentions.
Service Quality, Customer Satisfaction and e!avioural Intentions: "!e #in$a%e@hough most researchers subscribe to the view that customer satisfaction is Jan evaluative,
affective or emotional responseG (Iliver "# 6, the debate continues as to what it e9actly is and how
it differs from service quality. +easurement of customer satisfaction has also been an equally
debatable issue and remains mired with divergence of approaches ( ilbert et al ., $6. Bhile some
researchers in the past have been of the opinion that service quality and satisfaction are similar terms
(e.g., )abholkar "##&% Spreng and Singh "##&6, others have held the view that these two are distinct
constructs ('itner and Hubbert, "##$% 7acobucci et al., "##$% Iliver, "##&% @aylor and 'aker, "##$%
5eithaml et al ., "##&6. ;specially the service quality researchers have argued that the two concepts
differ according to the level at which they are measuredK customer satisfaction is a transaction
specific assessment whereas service quality is comprised of global assessment (e.g., 1arman "## %
8arasuraman et al., "# 6. If late, however, a few researchers have started opining that both the
service quality and customer satisfaction can be e9amined meaningfully from the transaction specific
as well as global perspectives (e.g., @eas "##&% )abholkar, "##&% 1ronin and @aylor, "## %
8arasuraman et al ., "##$6.
@hose who subscribe to the school that customer satisfaction and service quality are different
constructs point out a few more distinctions. Iliver ("##&6, for instance, opined that the dimensionsunderlying quality =udgments are rather specific, whether they are cues or attributes. Satisfaction
=udgment, however, can result from any dimensions which may or may not be quality related. @here
is also a belief among the researchers that while quality e9pectations are based on FidealsG or
Je9cellenceJ perceptions, satisfaction =udgement is formed by a large number of non-quality issues
including needs and equity or JfairnessJ perceptions (Iliver and Swan, "# #6. :urthermore, it has
been held that consumers can form quality perceptions without having any actual e9perience with
the service or its provider. Satisfaction, on the other hand, is purely e9perimental in nature. @hough
the efforts have been made to conceptually differentiate the two terms, empirically the researchershave not always been able to separate service quality form satisfaction ('ansal and @aylor, "##*%
)abholkar, "##/6. Cotwithstanding different view points held in the past, consensus now seems to be
emerging that the two constructs are different. Bhile service quality is considered primarily a
cognitive construct, satisfaction is viewed more as a comple9 concept comprising of both the
cognitive and affective components ()habolkar, "##/% 4avas, "6.
0
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@here has also been a considerable debate over the issue of causal relationship between
customer satisfaction and service quality, and the consequent linkages of these two constructs with
behavioural outcomes. Bhile some researchers in the past have held the view that service quality
results from customer satisfaction ('itner "## % 'olton and )rew, "##"% Iliver, "# % +ohr and
'itner, "##/6, others have opined that service quality is an antecedent of customer satisfaction (e.g.,
nderson and Sullivan, "##&% 1ronin and @aylor, "## % otlieb et al ., "##$% 8arasuraman et. al.,
"# /, "# % 3ust and Iliver, "##$6. However, there now seems to be a convergence of views that
favourable service quality perceptions lead to improved satisfaction (e.g., 1ronin et al ., % 2ang
and !ames, $% @ing, $% 4avas, "% 5hou, $6 and satisfaction has a significant effect on
behavioural intentions (@aylor and 'aker, "##$% :ullerton and @aylor, % 5hou, $6. So far as
the linkage between service quality and behaviour is concerned, though some researchers have tried
to relate service quality to behavioural intentions directly (e.g., 4avas et al. , "% 5eithaml, et al .,
"##06% others have e9amined the relationship between the two indirectly through the mediating effectof customer satisfaction (e.g., 5hou, $6 or even directly as well as interactively along with
customer satisfaction (e.g., @aylor, "##*% Bang et al ., $ &6.
2eeping in view the current thinking and emerging evidence, the present study too
endeavours to e9amine the relationship of service quality with customer satisfaction and behavioural
intentions in a two phased processK firstly, service quality affects customer satisfaction, and secondly
service quality impacts behavioural consequences both directly and interactively with customer
satisfaction. :igure " provides a diagrammatic view of the two phased process through which service
quality affects customer satisfaction and behavioural outcomes.
Me"+&*&!&0#
"!e Sample
@he present study makes use of the data that were collected in connection with a survey of
fast food restaurants in )elhi. pilot study was conducted to identify fast food restaurants that are
:igure "K 3esearch model used in the study for e9amining relationship between servicequality, customer satisfaction and behavioural intentions
Service quality(:unctional andoutcome d imensions6
1ustomersatisfaction
'ehaviouralintentions
*
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more popular and patronized by the people living in )elhi. total of eight fast food restaurants,
viz., Cirula>s, Bimpy, )ominos, +c)onald, 8izza Hut, Haldiram, 'ikanervala, and 3ameshwar,
were identified and these were used as the focal restaurants for undertaking empirical analysis in
the study. Students and lecturers of different colleges and departments of the ?niversity of )elhi
constituted the sampling frame used in the study. @he reasons underlying the selection of these two
types of respondents were their high familiarity and patronization of fast food restaurants, and also
an easy access to them. ?sing convenience sampling, respondents from these two sub-sets of the
populations were personally approached and requested to fill-in a non-disguised questionnaire
prepared for this purpose. total of duly filled-in questionnaires were received. Since each
respondent was asked to provide information about two restaurants - one the most frequently
visited and the other the least frequently visited, a pooling of their responses at the data analysis
stage resulted in a total of $ sample observations.
ma=ority of the respondents were in the age group " - $ (/ per cent6. ender and
occupation wise (i.e., students vs. lecturers6, the respondents were almost in same proportion. Inly
about "$ percent of the respondents had monthly family income below 3s. "/, . @he rest of the
respondents in equal proportion had monthly income either between 3s. "/, - /, or 3s.
/, and above. Co doubt the sample is comprised of relatively more educated, higher income
and younger people, but from the marketing point of view this should not be much of a problem as
it is rather the younger, more educated and high income people who constitute a promising market
segment for the fast food restaurants.
&esearc! Instrument
@he data on service quality perceptions were obtained using -item S;3A8;3: scale as
developed by 1ronin and @aylor ("## 6. @hese items are same as used in the S;3A ? < scale
developed by 8arasuraman et al . ("# 6. @he only difference between the two scales is that while
S;3A ? < scale requires data on both the customers> e9pectations and perceptions of services,
the S;3A8;3: scale entails measurement of only the perception data. n e9ploratory factor
analysis of these items (discussed in detail in the succeeding section6 resulted in four factors.
@hese four factors were used as the four distinct dimensions of S : construct. @able " lists the
four factors and their constituent items along with their reliability coefficients. Bhile the first two
factors have non-standardised 1ronbach alpha values of more than .0/% the reliability of the latter
two factors is quite low being only marginally above the ./ threshold level as suggested by
Cunnally ("#* 6 for use in the e9ploratory analysis.
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T 1!e 2: Sc !e%$ Sc !e-i"e'% U%e* i) S"u*# )* Re!i 1i!i"# C&e((icie)"%
Scale and scale 7tems
3eliability(1ronbach alpha6
Service Quality ' Functional (SQF)*+
A. "an%i,ility ("AN+ .*0
". Aisually appealing physical facilities. ?p-to-date equipment and technology&. Bell dressed and neat employees$. ppearance of physical facilities as per the type of service provided
. -mpat!y &esponsiveness (-/0+ .0*". ;mployees not giving personal attention (reverse coded6
. iving individual attention (reverse coded6&. ;mployees knowing customer needs (reverse coded6$. ;mployees too busy to respond to customer needs promptly (reverse coded6
C. Dependa,ility Assurance (D-0+ ./*". )ependable restaurant
. Sympathetic and reassuring restaurant in case customers have problems&. Cot getting prompt service from employees (reverse coded6
D. Support (S10+ ./"". ;mployees getting support from restaurant to do their =obs well. 2eeping records accurately
Service Quality ' Outcome (SQO ) .0$". uality of food
. :resh and delicious food&. 8resentation of food$.:lavour, topping, spiciness of food not being as per individual customer taste
(reverse coded6/. 1hoice and range of food
Overall Service Quality (OSQ+ -". 3estaurant>s overall service quality e9cellence
Customer Satisfaction (CS+ .*#
". ;n=oyable e9perience with the restaurant. Services better than e9pected&. Iverall satisfaction with the services at the restaurant
0rice -2uity (0-+ -". 3easonableness of the price charged at the restaurant
e!avioural Intentions A. 0atronisation Intentions (0I+ . /". 8robability of using their facilities again
. 1hance of making the same choice again
&ecommendation Intentions (&I+".
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customers at the time of questionnaire preparation stage. @he e9ercise resulted in generation of
five items. 7n view of their high face validity, all the five items were retained as constituting the
outcome quality scale (S I6. 3esponses to these items were obtained on a five-point
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U%e(u!)e%% &( SERVPERF i) Me %uri)0 Cu%"&'er%3 Service Qu !i"# Perce "i&)% i) F %" F&&*Re%" ur )"% i) I)*i : Di'e)%i&) !i"#$ V !i*i"# )* Re!i 1i!i"# A) !#%e%
;9ploratory factor analysis using principal component method with varima9 rotation was
employed to assess the dimensionality of the twenty-two item S;3A8;3: scale. ll the factors
having eigen value more than one were retained. Cine items that were found to be loading either lowly (less than ./ 6 or loading simultaneously on other factors were deleted, and the factor
analysis was re-run. @he process continued till all the items were found loading appropriately on a
single factor. 7n total, three rounds of factor analysis were performed and the final round produced
four factors which together e9plained / ./# per cent of the variance present in the data (see @able
6. 'ased on the item configurations, the four factors were named as Dtangibility>, Dempathy>
DdependabilityLassurance and Dsupport and accounting accuracy> dimensions. Since both the
twenty-two items S;3A8;3: scale and its thirteen-item counterpart focus only on functional
service aspect, these have been coded as S : and S :"& respectively, with the letter D:>signifying their functional focus.
@he factor analysis results suggested retention of only "& out of a total of items
contained in the S;38;3: scale. @he nine items not found appropriate in the study includeK not
telling customers when services will be performed, not getting prompt service, restaurant
providing service by the promised time, restaurants providing service by the time they promise,
restaurants not having convenient operating hours, employees being polite, employees not always
willing to help (emphasis added6, unrealistic to e9pect employees of these restaurants to have
customers> best interest in mind (emphasis added6 and feeling safe in transactions with employees
(emphasis added6. closer look at these e9cluded items reveals that most of these items do not
seem either relevant to the fast food restaurant service conte9t or are poorly worded. @he first five
e9cluded items, for instance, relate to the timeliness aspect of service. @imeliness may be a more
relevant issue in services like banking, travel or conventional restaurants, but this seems to be of
little relevance in the fast food restaurant business which by nature is built around the core theme
of providing speedy services. 7t is not clear as to why the item Dpoliteness> has not got properly
loaded in the factor analysis, and hence it has to be dropped from the scale. So far as the last three
items are concerned, they have got e9cluded perhaps due to their poor wordings marked in italics.
@he phrases like always willing to help , Dbest interest and safe are quite ambiguous and lack
specificity. @hese items, moreover, do not appear much relevant in the conte9t of fast food
restaurant business having no or little scope for service customization. ;ven in a few past studies,
""
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some of these items have got dropped at the analysis stage (e.g., 2ang and !ames, $% 5hou,
$6.
T 1!e 4: Service Qu !i"# 5Fu)c"i&) !6: F c"&r A) !#%i% Re%u!"% )* Re!i 1i!i"# C&e((icie)"%
Scale and scale 7tems
:actor loadings
Aariancee9plained
3eliability(1ronbach alpha6
Service Quality ' Functional (SQF)*+
A. "an%i,ility ("AN+ "#. * .*0
". Aisually appealing physical facilities . &. ?p-to-date equipment and technology .*/&
&. Bell dressed and neat employees .*$$. ppearance of physical facilities as per the type of service provided .0$$
. -mpat!y &esponsiveness (-/0+ "0.$0 .0*
". ;mployees not giving personal attention (reverse coded6 .*#. iving individual attention (reverse coded6 .0 "
&. ;mployees knowing customer needs (reverse coded6 .0$$. ;mployees too busy to respond to customer needs promptly (reverse
coded6
.0 "
C. Dependa,ility Assurance (D-0+ "". ./*
". )ependable restaurant " .*#. Sympathetic and reassuring restaurant in case customers have problems
.0 *
&. Cot getting prompt service from employees (reverse coded6 ./*
D. Support (S10+ ""." ./"
". ;mployees getting support from restaurant to do their =obs well .. 2eeping records accurately .*&
T&" ! v ri )ce e7 ! i)e* 89 8;
comparison of the retained items and their factor structure with the one proposed by
8arasuraman et al. ("# 6 in respect of their S;3A ? < scale reveals a close similarity between
the two. @he item composition of the tangibility dimension in the present study is e9actly the same
as the one postulated in the S;3A ? < scale. @he items belonging to reliability, responsiveness
and empathy dimensions of S;3A ? < scale, however, have got merged into one single
dimension, christened as empathyLresponsiveness dimension in the present study. 7n previous
studies too, items belonging to these three dimensions have been found converging into one or two
dimensions (e.g., 5hou, $6. @he dependabilityLassurance dimension in the present study
closely corresponds to 8arasuraman et al.s ("# 6 reliability dimension. SupportLaccuracy is the
only dimension in the present study which is a problematic one for the reason that it contains items
belonging to two different dimensions (i.e., reliability and assurance6 of S;3A ? < scale. )ue to
meaningless item composition, little wonder that this dimension is having a very low 1ronbach
alpha value (see @able "6.
"
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7n order to assess the convergent validity of the thirteen-item scale, the summed mean
S :"& scores were computed and correlated with overall service quality (IS 6 perception scores
measured directly with a single-item scale. 2arl 8earson coefficient of .$ (pM . 6 shows
convergent validity of the thirteen-item service quality scale (i.e., S :"&6 derived at our end.
@hough the thirteen-item scale is little less convergent valid than the twenty-two item S;3A8;3:
scale (the correlation coefficient between S;3A8;3: and IS being r N ./$, pM . 6, the
thirteen-tem scale appears a better measure of service quality perceptions for being more
parsimonious (requiring collection of data for only for thirteen rather than twenty-two items6 and
also having a relatively better factor structure.
:or assessing the predictive ability of thirteen-item scale (S :"&6, customers> overall
service quality perceptions (IS 6 were regressed on the former. @he results are presented in @able
&. rather low ad=usted 3 value of . & implies that the thirteen-item service quality scale
(S :"&6 is able to e9plain only & per cent of variations present in the customers> overall service
quality perceptions (IS 6. @his lower e9planatory power of S :"&, however, has not resulted due
to e9clusion of nine items from the S;3A8;3: scale in our study. rather modest and similar
ad=usted 3 value of . # obtained in respect of regression of IS on S;3A8;3: scale (i.e.,
S : 6 points to the fact that even S;3A8;3: scale in its original form is only partly able to
capture the customers> overall service quality perceptions.
T 1!e
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conformity with the results obtained by several other researchers in the past (e.g., 'abakus and
'oller, "## % 1arman "## % 5hou, $6. @he obvious inference is that the dimensionality of
service quality scale is both conte9t and country specific% and, hence, is not directly transferable
across industries and countries. Secondly, the thirteen items retained in the present study for
measuring service quality (functional aspect6 are not adequate enough to capture customers>
overall service quality perceptions. @his finding points to a pressing need for adding additional
itemsLdimensions to 1ronin and @aylor>s ("## 6 S;3A8;3: scale.
R&!e &( >Ou"c&'e3 C&' &)e)" )* Di'e)%i&)-% eci(ic A) !#%i% i) Pre*ic"i)0 Cu%"&'er%3Over !! Service Qu !i"# Perce "i&)%
Since the literature suggests that outcome quality (S I6 is an important determinant of
perceived service quality, it was included as another independent variable in the regression equation.
@he results presented in @ables & and $ show an improvement in the ad=usted 3 value from . &
(when S :"& alone is used as independent variable6 to . * when both S :"& and S I are used
as independent variables. 'oth the predictor variables are statistically significant, with outcome
component emerging as an equally important determinant. lmost similar standardised regression
coefficients of .& and . bear a testimony to the equal importance of this variable. significant
improvement in ad=usted 3 value with the addition of IS variable suggests that the outcome
component is an important determinant of service quality and needs to be taken into account while
measuring consumer perceptions of service quality in the case of fast food restaurants.
Cotwithstanding improvements in the results, the fact remains that even these two factors taken
together are not able to adequately e9plain variations present in the customers> overall service
quality perceptions - ad=usted 3 value being =ust . * . @his once again implies that efforts be made
in future to identify additional itemsLdimensions in respect of both the functional and outcome
service quality components so as to be able to improve the predictive capabilities of two multi-item
service quality scales.
s suggested in the literature, a dimension-specific analysis of service quality scale (S :"&6
was undertaken along with the outcome service quality component as another e9planatory variable.
3esults corresponding to equation & are quite revealing (see @able $6. If the four functional service
quality dimensions, empathy and support are not significant e9planatory variables. 7n terms of
standardized beta coefficients, outcome quality (S I6 emerges as the most important determinant of
service quality, closely followed by tangibility (@ C6. @he variable dependence ();86 is also a
significant variable, but it trails far behind the tangibility and outcome components. @he two
collinearity statistics - @I7 and A7: - being greater than ." and less than " respectively imply an
"$
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absence of multicollinearity among the independent variables (Hair at al ., "##/6, thus adding to our
confidence in the results.
T 1!e ?: Over !! Service Qu !i"# OSQ6 )* I"% Re! "i&)%+i .i"+ Fu)c"i&) ! 5SQF2
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variables (equation $6 produced results which are more or less similar to those obtained in regard to
equation &.
Service Qu !i"# % ) A)"ece*e)" &( Cu%"&'er S "i%( c"i&): A00re0 "ive )* Di'e)%i&)-% eci(ic A) !#%i%
1ustomer satisfaction (1S6 was regressed on various variants of service quality measure to
assess the role of service quality as an antecedent of customer satisfaction perceptions. @he results
reported in @able / shows that overall service quality (IS 6 is a ma=or and significant determinant
of customer satisfaction in the fast food restaurants. n ad=usted 3 value of .//" shows that the
overall service quality perceptions are able to e9plain //." per cent of the variations present in the
customer satisfaction. Since the customers form their satisfaction =udgments on the basis of service
quality and price perceptions, the variable price equity (8;6 was also introduced in the regression
equation. @he results reveal a marginal but significant rise in the ad=usted 3 value. 'oth the
e9planatory variables are statistically significant, with IS remaining as the ma=or determinant.
8rice turns out to be as a considerably less important factor.
7n order to assess the usefulness of using multi-item service quality scales in place of IS
scale, customer satisfaction was regressed on S : and S :"& alternately along with service
outcome (S I6 component. 3esults corresponding to equation in @able / show a rather poor fit of
S : to customer satisfaction perceptions. ;ven the use of variable S :"& causes a further
(though marginal6 decline in ad=usted 3 value. 8rice equity in both the equations remains a
significant but marginal determinant. @he lower ad=usted 3 values in respect of both the S :"& andS : scales imply need for improving these two scales in future.
dimension-specific analysis (substituting S :"& by its two ma=or dimensions, viz., @ C
and );86 does help improving the ad=usted 3 value to a level that was attained earlier (equation &6.
@aken together, the four antecedents, viz., @ C, );8, S I and 8;, are able to e9plain $ .$ per cent
of variations present in the customer satisfaction perceptions. :urthermore, all the antecedents are
significant. Service outcome quality (S I6 turns out to the most important determinant, closely
followed by tangibility dimension (@ C6. @he other two variables, viz., );8 and 8;, are
individually about half as strong as the other two variables (i.e., S I and @ C6 individually are in
their impact on customer satisfaction.
@he above analysis thus shows that service quality does affect customer satisfaction, with
service outcome playing a ma=or role in the case of fast food restaurants. :urther the results show
that a dimension-specific analysis is a better alternative to link service quality to customer
"0
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satisfaction by pointing out as to which of the several service quality dimensions have stronger
impact on customer satisfaction than the aggregative analysis using only the summed service quality
(S :"&6 score is able to do. @he variable price equity, however, is found to be playing a significant
but marginal role in influencing the customer satisfaction with fast food restaurants.
T 1!e 8: Service Qu !i"# % A)"ece*e)" &( Cu%"&'er S "i%( c"i&) 5CS6 - Re0re%%i&) Re%u!"%
E,N& V ri 1!e
C&e((icie)"%A*=
R 4F
v !ue @R 4
Fv !ue&( @R 4 TOI 1 VIF c B
Stand-ardised B
". )ependent variable N 1S1onstant .#* -Iverall S (IS 6 .0*P .*$P .// P $ 0.&* - - - -
. )ependent variable N 1S1onstant .**Iverall S (IS 6 .0$P .*"P .#$ ". 08rice equity (8;6 . #P ."&P ./0*P / .0 . "*P "/. & .#$ ". 0
&. )ependent variable N 1S1onstant - .$# -:unctional quality (S : ,i.e., S;3A8;3:6
.* P .$ P .// ".
Iutcome quality (S I6 .&"P . /P .0 ".08rice equity (8;6 . /P . *P .$ $P # .&* - - . / "."
$. )ependent variable N 1S1onstant - ."0 -:unctional quality (S :"&6 ./#P .&&P .0 ".0*Iutcome quality (S I6 .P .&"P .0$ "./*8rice equity (8;6 . *PP . #PP .&*0P * . * . / "."*
/. )ependent variable N 1S
1onstant - . $P -@angibility (@ C6 .&/P . 0P . ". /)ependence ();86 ." P ."$P .0# ".$$Iutcome quality S I6 .$$P .&/P .*0 ".&8rice equity (8;6 . *PP ." PP .$ $P 00. - - . $ "."#
CotesK a. Significance levels areK P pQ . " and PP 8Q . /. b. @I7 refers to tolerance score for the independent variable.c. A7: refers to variance inflated factor.
Service Qu !i"# )* Cu%"&'er S "i%( c"i&) % Pre*ic"&r% &( Be+ vi&ur ! I)"e)"i&)%:A00re0 "ive )* Di'e)%i&) S eci(ic A) !#%e%
Higher service quality has been empirically linked to higher satisfaction and favourable
behavioural intentions both directly as well as interactively with customer satisfaction in the paststudies reviewed earlier. @wo sub-constructs used for tapping the behavioural intentions in the
present study includeK restaurant patronisation intentions (876 and recommendation intentions (376.
7n order to assess whether service quality and customer satisfaction affect behavioural intentions in a
curvilinear and interactive manner, higher order regression equations with provision for interactions
between service quality and customer satisfaction were run. However, all the quadratic regression
"*
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equations as well as those with interaction terms did not turn out to be producing satisfactory fits due
to high collinearity present among the higher order and cross products of direct measures of
independent variables. Hence, it was decided to use only the first order basic regression equations.
@he results corresponding to equation " in @able 0 show a significant and strong influence of
customers> overall service quality (IS 6 perceptions on their restaurant patronization intentions. 'ut
with the inclusion of customer satisfaction as another independent variable, ad=usted 3 value gets
significantly increased to .&& , and both the IS and 1S emerge as significant predictors.
However, when IS is replaced by S : - its twenty-two multi-item counterpart% the results turn
out to be poorer. Cot only there is a fall in the value of ad=usted 3 , the variable S : also becomes
insignificant suggesting albeit erroneously that functional service quality (i.e., S;3A8;3:6 is not a
determinant of customers> patronization intentions. @his probably is occurring due to poor validity of
the scale pointed out earlier in connection with the factor analysis undertaken in the study. @he
results, however, show an improvement when the variable S :"& is used instead of S : .
dimension-specific analysis of functional service quality as undertaken in equation /
brings the results closer to the ones obtained earlier in equation & where IS has been used as a
measure of functional service quality. value of .&$ of ad=usted 3 suggests that the four variables
taken together (viz., @ C, );8, S I and 1S6 are able to e9plain &$. per cent of variations in
customer patronization intentions, with customer satisfaction being the most important and
significant determinant. @he three service quality related variables O @ C, );8 and S I - are also
significant, but these are individually almost half as important as the customer satisfaction variable
alone is (see @able 06. lack of multicollinearity among the independent variables as evident from
@I7 value being higher than ." and A7: value being less than " further add to the reliability of
regression results arrived at our end.
3esults relating to customer restaurant recommendation intentions appear almost similar to
those obtained in regard to customer patronization intentions patter (see @able *6. Iverall service
quality perceptions constitute an important determinant of the recommendation intentions, but the fit
gets significantly improved with the inclusion of customer satisfaction as another independent
variable. 'etween the two multi-item functional service quality scales, S :"& is providing better results than S : . Iutcome service quality is a significant and ma=or determinant of the
recommendation intentions. dimension-specific analysis of functional service quality shows that
that all the four variables present in equation / are significant, with 1S being the most important
determinant, followed by S I and @ C in that order. );8, i.e., dependence, turns out to be the least
important determinant.
"
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T 1!e : Service Qu !i"# )* Cu%"&'er S "i%( c"i&) 5CS6 % Pre*ic"&r% &( Re%" ur )"P "r&)i% "i&) I)"e)"i&)% 5PI6 - Re0re%%i&) Re%u!"%
E,N& V ri 1!e
C&e((icie)"%
A*=R 4
Fv !ue @R 4
F
v !ue&( @R 4 TOI 1 VIF c
S" )*-
r*i%e*
". )ependent variable N 871onstant .*Iverall service quality(IS 6
.00P .//P .& P "0#.$# - - - -
. )ependent variable N 871onstant .$$IS .$ P .&0P .$/ . &1S .&/P . *P .&& P #*.$* . &"P #*.$* .$/ . &
&. )ependent variable N 871onstant - .&&
:unctional quality (S : ,i.e., S;3A8;3:6 ."# . ./ ".##
Iutcome quality (S I6 .&$P . "P ./" "./*1S .$#P .&*P .&"#P 0 .$ - - .0 "./*
$. )ependent variable N 871onstant - .$0:unctional quality (S :"&6 . /PPP .""PPP ./* ".*/S I .& P . P ./ ".*"1S .$#P .&*P .& P 0&.$" - - .0& "./
/. )ependent variable N 871onstant - . *@angibility (@ C6 . $P ."$P .*& ".&*)ependence ();86 ."*PP .""PP .* ".
Iutcome quality ( S I6 .& P ."#P .00 "./"1S .$ P .& P .&$ P / . & - - .0" ".0/
CotesK a. Significance levels areK P pQ . ", PP 8Q . / and PPP pQ ." . b. @I7 refers to tolerance score for the independent variable.c. A7: refers to variance inflated factor.
T 1!e : Service Qu !i"# )* Cu%"&'er S "i%( c"i&) 5CS6 % Pre*ic"&r% &( Re%" ur )"Rec&''e)* "i&) I)"e)"i&)% 5RI6 - Re0re%%i&) Re%u!"%
"#
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CotesK a. Significance levels areK P pQ . " and PP pQ . /. b. @I7 refers to tolerance score for the independent variable.
c. A7: refers to variance inflated factor.
SQ$ CS )* BI S&re%: A Re%" ur )".i%e A) !#%i%
Having identified the determinants of customers> restaurant patronization and
recommendation intentions, let us have a look at the performance scoreboard of each of the eight
fast food restaurants under investigation. @able contains the results relating to various service
quality, customer satisfaction and behavioural intention measures as well as those relating to
customers> preference ranking for the restaurants and their perceptions about the price equity of
the services provided by these restaurants. :or the sake of better diagnosis, even the resultsrelating to service quality dimensions that were not found significant in the earlier analysis are
reported in @able . correspondence between mean scores of service quality, customer
satisfaction and behavioural intentions reinforces the earlier findings of the study that the former is
positively related to the latter.
E,N& V ri 1!e
C&e((icie)"%
A*=R 4
Fv !ue @R 4
Fv !ue
&( @R 4 TOI 1 VIF c
S" )*-r*i%e*
". )ependent variable N 371onstant .0"Iverall service quality(IS 6
.*"P .//P . #/P "0$. - - -
. )ependent variable N 371onstant . #IS .$#P .& P .$/ . &1S .&&P . &P .&"0P #".// . &P "&."0 .$/ . &
&. )ependent variable N 371onstant - .&0:unctional quality (S : ,i.e., S;3A8;3:6
. . ./ ".##
Iutcome quality (S I6 .& P ."*P ./0 ".**1S ./$P .&*P . $P /&. - .0 "./
$. )ependent variable N 371onstant - .&&:unctional quality (S :"&6 ." . * ./* ".*/S I .& P ."*P ./ ".*"1S .//P .& P . $P /&."* - .0& "./
/. )ependent variable N 371onstant - .*"@angibility (@ C6 . &PP ." PP .*& ".&*)ependence ();86 . # . / .* ".Iutcome quality S I6 .& PP ."*PP .00 "./"1S .$#P .&$P . #0P $ .&* - .0" ".0/
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'ased on both the overall service quality perceptions (IS 6 and the thirteen-item summed
functional service quality scores (S :"&6, +c)onald emerges as a real winner, with Cirula>s and
8izza Hut being close challengers. Haldiram, 'ikanerwala, )ominos and Bimpy constitute the
ne9t rung of players and in that order. 3ameshwar is the laggard and trails far behind all other
competitors on the fast food track.
)imension-specific analysis brings to the fore interesting insights. So far as the
empathy responsiveness and support Laccuracy of records dimensions are concerned, the
restaurants under investigations do not significantly differ form one another. s. However, when asked about
the reasonableness of price charged at these two restaurants, customers opine +c)onald to be
stealing the show. s in future, we find that the two leaders are quite ahead of their
counterparts. 'e it customer satisfaction levels or patronization and recommendation inclinations,
other players in the market are yet to substantially improve their performance before they can
think of seeing eye to eye to their market leaders.
"
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T 1!e 9: Service Qu !i"#$ Cu%"&'er S "i%( c"i&)$ Pre(ere)ce Perce "i&)% )* Be+ vi&ur !I)"e)"i&)%: Re%" ur )".i%e A) !#%i% )* ANOVA Re%u!"%
Re%" ur )"
Over !!%ervice,u !i"#
erce "i&)%5OSQ6
ServiceQu !i"#
(u)c"i&) !5SQF2
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MANAGERIAL IMPLICATIONS$ STUDY LIMITATIONS AND DIRECTIONS FOR FUTURE RESEARCHES
Service quality has been posited in the literature as a key determinant of a firm>s
success in the market place. @hough a number of studies have been undertaken in other
countries to establish an empirical link between service quality, customer satisfaction and
behavioural intentions% hardly any published academic study e9ists in respect of fast food
restaurants in the 7ndian conte9t to show that it does pay investing service quality improvement
efforts. @he present study has been an attempt in this direction. @he data used in the study have
come from a consumer survey of eight fast food restaurants in )elhi during )ecember " O
+arch . 7n view of the alleged superiority of the twenty-two item S;3A8;3: over
S;3A ? < scale, the former was employed to measure customer perceptions of service
quality. @he following paragraphs summarise findings of the study and discuss alongside their managerial and research implications.
@he analysis in the present study fails to find all the twenty-two items being relevant to
measurement of service quality in the conte9t of fast food restaurants in 7ndia. Inly thirteen
items are found pertinent. 7n particular, items relating to empathy and timeliness aspects of
service quality are found having no significant relationship with customers> service quality
perceptions in the fast food business. ;ven the factor structure as proposed by the developers
of S;3A ? < scale on which the S;3A8;3: is based does not get supported. @he factor
analysis in the present study rather produces a four-factor structure with tangibility,
dependabilityLassurance, empathyLresponsiveness and supportLaccuracy of records as being the
four service quality dimensions. Bhile the tangibility items have a clear loading on the
postulated factor, the other items due to their overlapping nature have got messed up and have
resulted in somewhat a hybrid factor-item structure. ;ven several past several studies
replicating and testing S;3A ? < have not found the scale to be converging to the proposed
five-factor structure (e.g., 'abakus and +angold, "# #% Spreng and Singh, "##&6.
In regressing overall service quality perceptions (IS 6 on the twenty-two itemS;3A8;3: (i.e., S : 6 scale and the thirteen-item (S :"&6 scale derived at our end, we find
both the scales are being powerful enough to capture variations present in the customer overall
service quality perceptions. However, till the time a better measure of service quality develops
the fast food restaurants can rely on the thirteen-item S :"& rather than S;3A8;3: scale. @he
reason underlying this recommendation is that S :"& is a more parsimonious scale and lacks
only slightly in terms its predictive power.
Since the S;3A8;3: scale and its pruned version (i.e., S :"&6 focus only on the
functional aspect of service quality, a service outcome component (S I6 was added to the
&
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analysis and it did lead to some improvement in the predictive ability of service quality scales.
@he results imply that especially in the case of services such as fast food restaurants outcome
quality is an important ingredient and needs be included in future analyses. Similar views have
been echoed even in the past works ( ronroos, "# , "## % 2ang and !ames, $%
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its physical facilities, layout and dRcor to come at par with +c)onald. @he other restaurants
are quite far behind their leaders and need to initiate measures to revamp quality in respect of
tangibility as well as dependability and outcome dimensions. 3ameshwar is truly a laggard in
respect of all the dimensions and needs to go all the way both at the functional and outcome
quality fronts to improve its quality perceptions.
;very study has its own limitations and this paper is no e9ception. @he present study has
been based on a survey of students and lecturers of ?niversity of )elhi. Co doubt it is relatively
the younger and more educated people from the higher income groups who constitute a prime
market segment of the fast food restaurant services, they by no means e9haust the list. 8eople
owning their own business, professionals and those working in private and public sector
organizations are equally important fast food restaurant customers and as such need be surveyed
in future. Since the food habits and preferences generally tend to be region and culture specific,findings of the study do not seem directly applicable to customers from other regions and
cultures. s restaurant
going population.
Since the thirteen-item service equality scale is not found capable of sufficiently
e9plaining variations in customers> overall service quality perceptions and some of the service
quality dimensions have been found less valid and reliable, attempt should be made by the
researchers in future to develop psychometrically more valid and reliable scales in future. s
found by 'onner and Celson ("# /6 in connection with their research on food products, aspects
such as rich flavour, natural taste, fresh taste, good aroma and appetizing looks can serve as
potential scale items in future studies.
@he present study has made use of only two behavioural dimensions. 7t will be desirable
if the researchers in future attempt to study additional behavioural consequences such as those
relating to customers> complaining and switching intentions. 3ecent use of structural equation
method (S;+6 in some studies (e.g., 2ang and !ames, $% 5hou, $6 can also be of greathelp in fully capturing the intricate relationships present among the three variables.
@here is also a growing realization among the service quality theoreticians and
researchers that corporate image be considered as an important determinant of service quality
perceptions ( roonroos, "# , "## %
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impact of any mistake will often be magnified in the customer>s mind. 7n a word, image can be
viewed as a filter in terms of a consumer>s perception of quality.G 7t would be a worthwhile
endeavour on the part of the researches in future to delve into this aspect and assess the e9tent
to which inclusion of image component in service quality analysis is conceptually tenable and
can add to the predictive ability of service quality scale.
Cotwithstanding these limitations and need for further researches in the area, findings of
the present study do suggest that service quality is an important determinant of customer
satisfaction and behavioural intentions. 7t is therefore, worth investing in quality improvement
efforts to win customer applaud and their patronage. @he study, furthermore, demonstrates that
not all the all the service quality dimensions are equally important to customers. @he
management of the fast food restaurants can immensely gain by taking up such studies from time
to time in future for identifying and priotising the areas which from customers> perceptions pointof view deserve utmost attention. focussed quality building approach can go a long way in
enabling the management of fast food restaurants to make an optimal use of their resources and
building side by side ma9imum possible customer satisfaction and franchise.
N&"e%
". @he author is grateful to +s. arima upta for carrying out the field work and help provided in preparation of this paper.
. Bhile S;3A ? < was posited as multidimensional scale by 8arasuraman et al. ("# 6, 1ronin and@aylor ("## 6 operationalised S;3A8;3: as a unidimensional scale and accordingly used it as a
summed inde9 derived by averaging the distinctive dimension of service quality. ;ven in areplication study later, 'rady et al. ( 6 used S;3A8;3: as a unidimensional summed inde9.
&. lthough the study by Bang et al. ( $6 did not e9plicitly e9amine the impact of service quality on behavioural intentions in an e9plicit manner, these two constructs got indirectly tested by way of being part of functional value and customer-relationship-management performance measures Ine of the components of value used in the study was functional value which to a great e9tent is a measureof perceived quality. Similarly, though they preferred to call their outcome variable as customer-relationship-management performance, it was nothing but three item customer behaviouralintentions scale.
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