Service Quality and Customer Loyalty in Fast Food Outlets Literature Review Answer

Introduction to the Research Topic

The fast-food industry across the United Kingdom is attributed with dynamic market catering, through which diverse needs of consumers are satiated. In this realm, the notion of consumer loyalty and service quality are directly proportional to one another and regarded as pivotal drivers for ensuring business sustainability, captivating target market, thereby fostering seamless growth. The following research concentrate upon the quintessential question of the manner in which service quality influences consumer loyalty across fast food outlets in the United Kingdom. Besides extrapolating determinants, the study also inculcates strategies through which service quality can be emboldened, which would eventually contribute to augmenting the growth of business by enhancing consumer retention.

1. Theoretical Framework
2. Theoretical Framework

Service Quality Theories and Models

Service quality theories as well as models furnish a bedrock for gaining cognizance regarding the manner of service excellence assessment. Three prominent models in this context are as follows:

SERVQUAL Model:

According to Pakurár et al., 2019, (https://www.mdpi.com/2071-1050/11/4/1113) established in the 1980s by Parasuraman, Zeithaml, and Berry, the SERVQUAL model revolves around five dimensions representing service quality namely Tangibles, Reliability, Responsiveness, Assurance, and Empathy.

Aside from evaluating the gap between perception of consumer regarding the actual service received and expectation, the model also substantiates pivotal insights regarding scope for amendments.

SERVPERF Model:

In consonance with Raza & Burney, 2020 (https://ceur-ws.org/Vol-2889/PAPER_19.pdf), evolving from the SERVQUAL model, the SERVPERF model, solitarily concentrates upon the facets of performance that can inherently influence service quality.

The model arguably put forwards that customers primarily evaluates service quality on the basis of their preconceived notion regarding the actual service, rather than comparing it to their expectations. The only distinction being that this model simplified the previous approach by omitting the concept of expectation dimension.

Gap Model of Service Quality:

In accordance with Ramya, Kowsalya & Dharanipriya, 2019 (https://www.researchgate.net/profile/Ramya-N/publication/333058377_SERVICE_QUALITY_AND_ITS_DIMENSIONS/links/5cd9afb2a6fdccc9ddaa6156/SERVICE-QUALITY-AND-ITS-DIMENSIONS.pdf), the Gap Model, put forward by Parasuraman, Zeithaml, and Berry, determines diapers scope or gaps present in the conventional service delivery, thereby affecting the overall service quality.

These gaps generally refer to knowledge gap which represents the difference between customer expectations and management perceptions, followed by the policy gap which depicts gap between management perceptions and specifications regarding service quality, and the communication gap, which represents the gap between what is communicated about the service and what is delivered.

Customer Loyalty Theories and Models

Gaining cognizance regarding consumer loyalty is imperative for establishing a sustainable consumer base. In this context, various models and theories of consumer loyalty, are mentioned here in under:

Relationship between Customer Satisfaction and Loyalty:

As pointed out by Thakur 2019 (https://www.emerald.com/insight/content/doi/10.1108/EJM-11-2017-0895/full/html), the Customer Satisfaction-Loyalty Relationship posits that consumers were satisfied has a higher leniency of exhibiting behaviors pertinent with loyalty.

In general, this is elaborated with the help of the "satisfaction-loyalty chain," where satisfied consumer is directly proportional to consumer retention, where repeat purchase would inherently increase as a consequence of positive word-of-mouth.

Customer Loyalty Dimensions and Components:

Loyalty can be referred to as a multidimensional concept, which entails cognitive as well as behavioral facet, which manifest the concept of repeat purchase demeanor, advocating the brand to others, willingness to subscribe to a premium as well as fostering emotional connection with the brand equity. The Loyalty Pyramid Model evinces that progression of a consumer from mere awareness to being a brand advocate occurs through a transition, which is attributed with different stages of satisfaction, preference as well as commitment.

1. Service Quality in Fast Food Outlets

Key Dimensions of Service Quality

Tangibles (Physical Aspects):

In the realm of hospitality management, such as fast-food business, tangibles can be equated with the physical attributes which are inculcated in the outlets for augmenting cleanliness and enhancing overall aesthetics associated within the premises. Consumers are often captivated by the initial impression regarding interior and exterior cleanliness of the dining areas and restrooms. If the facilities are well maintained, then the feasibility of these aspects to positively contribute towards ameliorating consumer experience regarding the brand equity is inevitable in nature.

Reliability (Consistent Performance):

On a similar note, reliability regarding a fast-food outlet revolves around its consistency, which is a multifaceted concept. Since consistency in fast food outlets are measured on the basis of swift delivery, precise order management, all while preparing delectables for consumers seamlessly. As far as reliability dimensions are concerned, the swiftness associated with service in order to reduce wait time essentially sets a successful fast-food outlet apart from the crowd. Since it enhances the trust among the consumer base immensely.

Responsiveness (Timely Service):

Responding within a predefined time frame is a pivotal facet which determines service quality across fast food outlets. In general, the preconceived notion among consumers is fast food outlets, which offer minimal wait time as well as efficiently manage their respective request are exemplary fast-food outlets. Since service delays essentially translate into consumer frustration, thereby leaving a lasting negative impression among the target market.

Assurance (Competence and Courtesy of Employees):

The courtesy as well as competence of workforce plays a quintessential role in shaping perception among the consumer regarding service quality offered by the fast-food outlet. For instance, if the staff members are quite versed in the menu and can substantiate accurate information regarding ingredients incorporated while preparing in a friendly demeanor, the feasibility of consumer experience associated with the fast-food outlet to augment seamlessly is inevitable in nature.

Empathy (Understanding Customer Needs):

Empathy among the workforce in relation to gaining insight regarding consumer preferences, so that their needs can be satiated, can be conducted only by empathetic interaction and discourse where their requests are accommodated flawlessly, and concerns of consumers are addressed immediately. If the customer is satisfied with the service and feels that their concerns are being genuinely acknowledged, then it fosters a sense of loyalty towards the brand equity of the fast-food outlet.

1. Service Quality in Fast Food Outlets

Factors Influencing Service Quality

Service quality, in general, is influenced by a plethora of factors, which are hereby mentioned as follows:

Speed of Service and Efficiency:

As stated by Rajput & Gahfoor, 2020, (https://link.springer.com/article/10.1186/s43093-020-00021-0), the efficiency of fast-food outlets is evaluated on the basis of their speed of service, which in turn is a fundamental determinant representing service quality offered by the first food outlet.

If the waiting time is lengthy, consumers are frustrated and easily dissatisfied, even if the food offered is delicious, the order processing should be efficiently managed in order for the food to be delivered quickly to the consumers, so that customer expectation regarding the establishment is enhanced significantly by the prompt service.

Cleanliness and Hygiene:

As far as managing hospitality business is concerned, the role played by hygiene and cleanliness is undeniable in nature (https://link.springer.com/article/10.1186/s43093-020-00021-0).

A well-maintained physical ambience instills a positive impression among the consumer base, thereby enhancing the integral perception regarding the outlets’ commitment towards professionalism and maintaining exemplary service quality (Rajput & Gahfoor, 2020).

Staff Training and Behavior:

One of the intriguing aspects in terms of augmenting service quality is ensuring that the workforce is educated in terms of providing necessary information to the consumer, regarding the menu, all while capably delivering required assistance in an amicable manner, so that the attentive behavior could captivate the target market in a seamless and swift manner (Zhong & Moon, 2020) (https://www.mdpi.com/2304-8158/9/4/460).

Menu Complexity and Customization:

An important aspect that should be taken into consideration while preparing menu cards for fast food outlet is that complexity should be dedicated under all circumstances and the notion of customization should be inculcated accordingly. It would enhance the varieties of deliverables offered by the first food outlet which can be advocated by the establishment in terms of accommodating special dietary preferences. It demonstrates a commitment towards satiating consumer requirements under all circumstances.

Timeliness and Communication:

Maintaining a precise timetable and open flow of communication channel is quintessential in terms of managing the expectations of the consumer and refraining from participating in certain activities, which would inherently dissatisfy the target market. Consumer base in the United Kingdom heavily inclines towards fast food outlets, where timelines are considered important if the flow of communication is seamless, then feasibility of delivering positive consumer experience to enhance perception of service quality is significantly high.

1. Customer Loyalty in Fast Food Outlets

Factors Contributing to Customer Loyalty

Price and Value Perception:

As per Folkvord et al. 2020, (https://www.mdpi.com/1660-4601/17/19/7139), determining a perfect price by analyzing the value perception among the consumer base would definitely open up new horizon for fast food outlet, so that they can offer reasonable prices with diverse menu option and carry-on promotional campaigns, such as offering loyalty programs and combo deals, so that repeat consumers can be encouraged to foster loyalty.

Quality and Taste of Food:

As opinionated by Gogoi, 2020, (https://www.mdpi.com/1660-4601/17/19/7139), delectable is the quintessential essence of fast-food establishment where offering high quality fresh meals on a consistent basis is solitarily sufficient to captivate consumers from the target market. The delectables offered should be attributed with quality taste, exemplary texture and remarkable presentation, which would enhance the chances of repeat consumer with positive feedback.

Convenience and Accessibility:

The convenience associated with fast food outlet is an instrumental aspect which would ensure that number of foot fall increases. Aside from consumers physically visiting the establishment, online ordering is also possible, provided the fast-food outlet is situated in a location which is in the vicinity of lucrative business position. Nowadays, the majority of consumers in the UK prefer ordering online food services. However, the priority in this instance revolves around the ease of access associated with the establishment, since it would influence whether the consumer experience is going to be positive or negative depending on the time required to deliver the food.

Customer Service and Engagement:

In order to foster exceptional consumer service, it is imperative for the workforce to directly engage in an amicable discourse with the consumer to understand their preferences, so that it can be satiated accordingly. Aside from personalized interaction, feedback mechanisms such as survey with open-ended questionnaires can also be incorporated in order to make necessary amendment in the fast food establishment as per consumer preference (https://www.researchgate.net/profile/Majid-Esmaeilpour/publication/344297155_The_Effect_of_Customer_Experiences_on_Purchase_Intention_Through_Mediator_Variables_of_Mental_Engagement_and_Visual_Perception/links/5f6473c1458515b7cf3c0e72/The-Effect-of-Customer-Experiences-on-Purchase-Intention-Through-Mediator-Variables-of-Mental-Engagement-and-Visual-Perception.pdf?origin=journalDetail&_tp=eyJwYWdlIjoiam91cm5hbERldGFpbCJ9) (Zahra, Majid & Manijeh, 2020).

1. Relationship between Customer Loyalty and Customer Retention

Repeat Purchase Behavior:

Loyal consumers are generally regarded as the lifeblood of any fast-food establishment, since they entail a reliable source of sustained revenue and long-term success from the business point of view. These patrons, when genuinely satisfied with both the service quality and the consistently high quality of the delectable offerings, tend to exhibit a remarkable propensity for repeat purchases. As a result of which, this phenomenon creates a virtuous cycle of patronage, where loyal customers return to the establishment time and again. Their unwavering allegiance is rooted in the confidence that each visit will be met with the same level of exceptional service and the same delicious food they have come to expect. Simply put, from the perspective of the going concern of the fast food establishment, this repeat business is akin to a steady and dependable stream of income. It not only bolsters the financial performance of the establishment but also cultivates a sense of stability. Moreover, these loyal customers often become brand advocates, spreading positive word-of-mouth recommendations and attracting new patrons.

Positive Word-of-Mouth and Referrals:

This is self-explanatory in nature in view of the fact that loyal consumer base often spread the brand of the fast-food outlet with which they have positive experience among their family, friends and peers. This organic growth spontaneously generates new consumers every single day, as time elapses, thereby expanding the consumer base through referrals. Positive recommendation is directly proportional to the increased football as well as revenue generation of the fast-food outlet. Hence, it imperative from the perspective of the fast food business to take necessary measures to ensure that the word pf mouth strategy can be capitalized extensively by the business. (https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6528418/) (Shaban& Alkazemi, 2019).

Relationship between Service Quality and Customer Loyalty

Demonstrating the Link between Service Quality and Loyalty

A plethora of scholarly studies underscore the robust correlation existing across diverse industries, encompassing the realm of fast food, between service quality and customer loyalty. Zeithaml and Bitner's seminal research in 2003 accentuates the conspicuous nexus between augmented perceived service quality and heightened customer contentment, thereby eliciting a favourable impact on customer loyalty. Within the purview of fast-food establishments, Singh et al., 2021, investigation substantiates a direct, tangible affiliation between elevated service quality perception and the inclination of patrons to manifest repeat purchasing patterns, coupled with their inclination to enthusiastically advocate the establishment to their peers (https://www.emerald.com/insight/content/doi/10.1108/TQM-07-2020-0163/full/html).

Mediating Role of Customer Satisfaction

Customer satisfaction stands as an indispensable mediating entity in the intricate interplay linking service quality with loyalty. The scholarly contribution of KIM & PARK, 2019, heralding the conceptualization of the "Satisfaction-Loyalty Chain," posits that patrons endowed with satisfaction are inherently inclined towards behaviour’s emblematic of loyalty (https://www.proquest.com/openview/74f7a6c7d10204c85a394fc2e7e41539/1?pq-origsite=gscholar&cbl=18750&diss=y). In the dynamic sphere of fast food, instances where patrons are immersed in superior service quality foster profound contentment with their holistic encounter. This sentiment of contentment engenders a palpable sense of affinity and buoyant emotional resonance with the brand, thereby fostering an enduring allegiance and proclivity for recurrent engagement.

Moderating Factors Affecting the Relationship

The relationship between service quality and customer loyalty is influenced by several moderating factors:

1. An appreciable brand reputation and solitarily amplify the ramification of service quality on loyalty. To put it in simple perspective, it can be stated that if fast food outlet has a reputable brand equity, then the service quality of that outlet is perceived to be more positive with respect to other rivals, within the vicinity. This can necessarily be translated into the fact that with higher loyalty level among consumer bases. The number of footfalls experienced by the outlet is also going to be enhanced significantly thereby positively influencing the revenue generation as well.
2. The magnitude of competition across fast food industry in the United Kingdom can solitarily influence the strength of the relationship in a competitive landscape service quality which is superior is always distinguished as a determining factor among the loyal consumers.
3. One of the characteristic attributes of the competitive landscape in the fast-food industry across the United Kingdom is that expectation of consumer varies immensely from one person to another. Hence aligning the service quality which can satiate the majority of such consumer preference plays a quintessential role, if adequate actions are necessarily taken into consideration with due diligence by the managerial authority of the fast-food establishment, then the feasibility of experiencing higher revenue generation within a short span of time from inculcating the strategies would necessarily be reflected in exceeding expectation among loyal consumer bases.
4. Personalization should be inculcated under all circumstances across the delectables offered in the menu in order to enhance consumer loyalty and improve service quality, which in turn, would also augment consumer experience associated with the fast-food establishment. Owing to the fact that personal experience assist the fast food outlet to establish emotional connection that propels loyalty among the consumers.
5. Practical Implications and Strategies

Strategies for Enhancing Service Quality

Employee Training and Development:

The imperative to invest in comprehensive training regimens for personnel cannot be overstated. These programs should encompass not only technical competencies but also underscore the cultivation of soft skills, including adept communication and profound empathy. Staff, when well-versed and adeptly trained, are inherently poised to consistently render superlative service experiences characterized by exceptional quality.

Process Optimization and Efficiency:

A veritable cornerstone of the service quality enhancement ethos resides in a perpetual evaluation and refinement of operational paradigms. The periodic scrutiny of workflow intricacies culminates in the minimization of waiting durations and the attenuation of operational bottlenecks. The judicious infusion of lean management principles ensures an unobtrusive and seamless operational ecosystem, from the inception of order requisition to the meticulous orchestration of culinary endeavors.

Strategies for Elevating Customer Loyalty

Loyalty Programs and Incentives:

An efficacious stratagem lies in the judicious deployment of loyalty programs suffused with incentives. By instituting enticements aimed at inducing recurrent patronage, such as concessional pricing, complimentary provisions, or exclusive prerogatives, an augmented spectrum of customer loyalty materializes. This engenders a distinctive proclivity for the designated establishment vis-à-vis its competitors (https://link.springer.com/article/10.1007/s11747-020-00719-1) (Kim et al., 2021).

Exemplary Redressal of Grievances:

The meticulous handling of customer grievances in a judicious and expeditious manner represents an elemental facet. Staff should be adroitly trained in the art of adeptly addressing concerns with a profound spirit of empathy, proffering solutions that underscore the establishment's steadfast dedication to amicable resolution (http://ejournal.aibpmjournals.com/index.php/JCDA/article/view/1385) (Song et al., 2022). This practice resonates unequivocally with the overarching objective of endowing the clientele with an unswerving conviction in the outlet's commitment to fostering satisfaction.

Championing Sustainability Paradigms:

The embrace of sustainability tenets, epitomized by endeavors such as the reduction of plastic consumption and the procurement of sustainable ingredients, constitutes an indelible testament to ethical precepts. This alignment with customer values, coupled with the conspicuous manifestation of social responsibility, espouses a resonance with eco-conscious patrons, thereby engendering a potent nexus between their allegiance and the outlet's ethical initiatives.

Assiduous Integration of Feedback:

The consummate integration of customer feedback stands as a hallmark of sagacious operational oversight (https://academic.oup.com/heapro/article-abstract/34/2/277/4628148) (Vandevijvere et al., 2019). The proactive solicitation and meticulous assimilation of customer insights, in the form of opinions and recommendations, furnish an invaluable compass for pinpointing areas ripe for enhancement. This concerted undertaking conveys an unequivocal commitment to attuning to customer needs and cultivating an ambiance of mutual reciprocity.

Conclusion

In essence, an inference can be drawn that the relationship between consumer loyalty and service quality constitute the cornerstone of success across fast food outlets in the United Kingdom. Besides comprehensively extrapolating dimensions of service quality, this research also intricately analyzes practical strategies through which loyalty can be influenced, so that interdependence of each such elements can be utilized accordingly. It is imperative to state that exemplary quality service not only fosters consumer loyalty, but at the same time, propels consumer retention with the help of positive word of mouth strategy, through which brand equity is advocated. The empirical evidence substantiated throughout the course of the study emphasizes significantly that it is essential for fast food outlets to concentrate upon delivering exemplary service quality, in order to captivate potential consumer base in modern day competitive business landscape.

References:

Folkvord, F., Van Der Zanden, M. and Pabian, S., 2020. Taste and Health Information on fast food Menus to encourage young adults to choose healthy Food Products: an experimental study. International journal of environmental research and public health, 17(19), p.7139.

Gogoi, B.J., 2020. Changing consumer preferences: Factors influencing choice of fast food outlet. Academy of Marketing Studies Journal, 24(1), pp.1-17.

Kim, J.J., Steinhoff, L. and Palmatier, R.W., 2021. An emerging theory of loyalty program dynamics. Journal of the Academy of Marketing Science, 49, pp.71-95.

KIM, M.J. and PARK, C.J., 2019. Does customer delight matter in the customer satisfaction-loyalty linkage?. The Journal of Asian Finance, Economics and Business, 6(3), pp.235-245.

Pakurár, M., Haddad, H., Nagy, J., Popp, J. and Oláh, J., 2019. The service quality dimensions that affect customer satisfaction in the Jordanian banking sector. Sustainability, 11(4), p.1113.

Rajput, A. and Gahfoor, R.Z., 2020. Satisfaction and revisit intentions at fast food restaurants. Future Business Journal, 6, pp.1-12.

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Raza, H. and Burney, A.I., 2020. Impacts of service quality on customer satisfaction: a comparative study on banking sector of pakistan through weighted servperf model. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 11 (2).

Shaban, L. and Alkazemi, D., 2019. Trends in fast-food consumption among Kuwaiti youth. International journal of preventive medicine, 10.

Singh, G., Slack, N., Sharma, S., Mudaliar, K., Narayan, S., Kaur, R. and Sharma, K.U., 2021. Antecedents involved in developing fast-food restaurant customer loyalty. The TQM Journal, 33(8), pp.1753-1769.

Song, N.H., Wuryaningrat, N.F., Kee, D.M.H., San San, A.L. and Kawung, R., 2022. Manpower and Service Quality of Fast-Food Restaurant: KFC Restaurant. Journal of The Community Development in Asia, 5(1), pp.54-66.

Thakur, R., 2019. The moderating role of customer engagement experiences in customer satisfaction–loyalty relationship. European Journal of Marketing, 53(7), pp.1278-1310.

Vandevijvere, S., Williams, R., Tawfiq, E. and Swinburn, B., 2019. A food environments feedback system (FoodBack) for empowering citizens and change agents to create healthier community food places. Health promotion international, 34(2), pp.277-290.

Zahra, M., Majid, E. and Manijeh, B., 2020. THE EFFECT OF CUSTOMER EXPERIENCES ON PURCHASE INTENTION THROUGH MEDIATOR VARIABLES OF MENTAL ENGAGEMENT AND VISUAL PERCEPTION. Studies in Business & Economics, 15(2).

Zhong, Y. and Moon, H.C., 2020. What drives customer satisfaction, loyalty, and happiness in fast-food restaurants in China? Perceived price, service quality, food quality, physical environment quality, and the moderating role of gender. Foods, 9(4), p.460.

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