The Three Commitment Components model of Thai Square restaurants - Report Example

Chapter 4: Findings and Discussion 2. 3. 4. 5. Introduction In this chapter of the report, the researcher has presented findings and discussion of the same in light of the research questions and objectives presented earlier in the beginning of this report. The chapter includes findings from analysis survey responses and a qualitative evaluation of interview responses by using thematic analysis approach. 6. Findings from Survey The information obtained from surveying respondents has been analyzed and presented in this section, which include demographic findings, descriptive findings, findings from regression analysis and findings from independent sample t test. 6.1. Demographic Findings The survey was conducted with the help of 40 respondents. All these respondents belonged to various age groups, background, etc. thus have different demographics. The following demographics findings show the personal characteristics of those respondents who were a part of the survey. According to the table that is shown below, it is indicated that all respondents belonged to diverse age groups. The exact figures can be determined from the table below: Age Frequency Percent Valid Percent Cumulative Percent Valid 10 20.0 20.0 20.0 18-25 7 14.0 14.0 34.0 26-35 4 8.0 8.0 42.0 36-45 17 34.0 34.0 76.0 45-60 6 12.0 12.0 88.0 Above 60 6 12.0 12.0 100.0 Total 50 100.0 100.0   Table 1: Demographics - Age It is indicated that seven (7) out of the fifty (50) respondents were aged between 18-25 years. It means that 14% of the total respondents were between 18-25 years of age. Four (4) out of fifty (50) respondents were between 26-35 years of age. This age group shared 8% of the total respondents that took part in the survey. The third age group i.e. 36-45 years old had the most number of respondents. Seventeen (17) out of fifty (50) respondents were from this age group. Whereas, only six respondents each from the age group 45-60 and 60 above took part in the survey. Similarly, the survey was actively responded by both male and female respondents. However, the percentage of male compared to female was greater. There were 50% male respondents, twenty five (25) in numbers and 30% female respondents, fifteen (15) in numbers. The figures of both male and female with their percentage are presented in the following table: Gender Frequency Percent Valid Percent Cumulative Percent Valid 10 20.0 20.0 20.0 Female 15 30.0 30.0 50.0 Male 25 50.0 50.0 100.0 Total 50 100.0 100.0   Table 2: Demographics - Gender All the respondents belonged to different ethnic backgrounds. Out of the fifty (50) respondents, three (3) were African, four (4) American, two (2) Arab, twelve (12) Asian, two (2) Australian, fifteen (15) European, one (1) Hispanic, and one (1) other. This indicates that the largest percentage was of the European respondents which was 30% followed by Asians 24%. The table for the figures is presented below: Ethnic Background Frequency Percent Valid Percent Cumulative Percent Valid 10 20.0 20.0 20.0 African 3 6.0 6.0 26.0 American 4 8.0 8.0 34.0 Arab 2 4.0 4.0 38.0 Asian 12 24.0 24.0 62.0 Australian 2 4.0 4.0 66.0 European 15 30.0 30.0 96.0 Hispanic 1 2.0 2.0 98.0 Other 1 2.0 2.0 100.0 Total 50 100.0 100.0   Table 3: Demographics - Ethnic Background According to the responses indicated in the table below four (4) respondents told that they dine at Thai Square restaurants daily. As many as fifteen (15) respondents told that they visit the restaurant weekly while thirteen (13) respondents said that they dine at Thai Square restaurants monthly and eight (8) respondents visit the restaurants once in every six months. The figures and percentage for the frequency of the visit for Thai Square Restaurant of the respondents is presented in the table below: How frequent do you dine at Thai Square Restaurants? Frequency Percent Valid Percent Cumulative Percent Valid 10 20.0 20.0 20.0 Daily 4 8.0 8.0 28.0 Every 6 Months 8 16.0 16.0 44.0 Monthly 13 26.0 26.0 70.0 Weekly 15 30.0 30.0 100.0 Total 50 100.0 100.0   Table 4: Demographics - Frequency of Dining When asked, all respondents gave various reasons for their dining at Thai Square Restaurants and why do they prefer the restaurants. As many as twenty (21) respondents rated food and mentioned it as a reason for their dining at Thai Square Restaurants. Whereas as nine (9) respondents liked the variety of food, four (4) respondents liked the location of the restaurant, three (3) respondents liked the type of food and that is why they preferred dining at Thai Square Restaurant. Only two (2) respondents said that they liked the customer service of the restaurant while one (1) out of fifty (50) respondents preferred it because of the ambiance of the restaurant. The figures and the reasons are presented in the table below: What is the reason for you to dine at Thai Square Restaurants? (Most Preferred) Frequency Percent Valid Percent Cumulative Percent Valid 10 20.0 20.0 20.0 Ambience of the Restaurant 1 2.0 2.0 22.0 Customer Service of the Restaurant 2 4.0 4.0 26.0 Location of the Restaurant 4 8.0 8.0 34.0 Quality of Food 21 42.0 42.0 76.0 Type of Food 3 6.0 6.0 82.0 Variety of Food 9 18.0 18.0 100.0 Total 50 100.0 100.0   Table 5: Demographics - Reason for Dining 6.2. Descriptive Findings According to the answers provided by the respondents, the following table shows the extent to which they (respondents) agreed or disagreed to the statements / questions that were part of the survey. With the help of descriptive findings, these questions have been analyzed separately on the basis of mean and standard deviation values. The mean of the first statement which has talked about the quality of the food i.e. 4.20, suggests that the respondents showed strong agreement with the quality of the food and were highly satisfied with it. The second statement of the survey that dealt with the variety of food showed that the respondents were in agreement with the variety as the mean of the results were found to be 3.38. The third statement which talked about the location of the restaurant showed that the respondents agreed and were satisfied with it as the mean was 3.40. Another statement in the survey dealt with the type of food. According to the findings it was noticed that the respondents were satisfied with the ambiance of the restaurant as the results showed 3.30 mean which suggests agreement. The next statement dealt with the customer service. According to its findings, it was revealed that the respondents showed agreement and were satisfied with the customer service of the restaurant with a mean of 3.20. The next statement dealt with the commitment of the respondents with the restaurants. According to the mean which was 3.78 it was shown that the respondents agreed and were committed to it. The next statement talked about if the respondents will continue to dine at the restaurant and according to the mean of 3.78 it was shown that the respondents highly agreed to the statement. The next statement dealt with the recommendation of the restaurant to others. The result i.e. the mean of the respondents which was 3.70 suggested that they strongly agreed to the statement and will recommend it to others. In one statement, the respondents were asked if they will visit the restaurant if it will introduce new items. The mean of the responses i.e. 3.23 concludes that the respondents agree to the statement i.e. they will visit it if it will offer new items. The respondents were also asked about the location of the restaurant i.e. if they will move to some place will they look for the restaurant. The mean of the responses i.e. 3.40 indicates that the respondents agreed to the statement and wanted to look for it even if they move out. In one statement the respondents were asked if they will not join the loyalty program of other restaurants because of this one. The mean which was found to be 4.08 indicates that the respondents showed strong agreement to the statement and will not join any loyalty program of any other restaurant. The next statement was again regarding the quality of food. In this statement, the respondents were asked if they believe that the restaurant will continue to maintain the quality of food. According to the findings and the calculated mean i.e. 3.68 it is indicated that the respondents agreed to the statement and believed that the restaurant will continue to deliver quality food. In a similar statement, the respondents were questioned regarding the future customer service of the restaurant and if they will be able to maintain it or not. According to the findings and the mean (3.45) it is indicated that the respondents showed agreement to the statement and believed that the restaurant will continue to provide high quality customer service. The next statement considered the area of hygiene and the respondents were questioned if the restaurant will continue to deliver high quality of hygiene. According to the findings of the survey and the calculated mean i.e. 3.63 it is indicated that the respondents showed agreement with the statement and believed that the restaurant will continue to deliver high quality of hygiene. The last statement of the survey was regarding better Thai flavors in the future. According to the findings of the survey and with a mean of 3.63 it was indicated that the respondents agreed to the statement and believed that the restaurant will continue to introduce better Thai flavors in the future as well. The list of statements (as in the survey) and the mean with standard deviation for each statement is presented in the following table: Descriptive Statistics N Minimum Maximum Mean Std. Deviation You are satisfied with the quality of food 40 3 5 4.20 .723 You are satisfied with the variety of food 40 1 5 3.38 1.353 You are satisfied with the location of restaurant 40 1 5 3.40 1.297 You are satisfied with the type of food 40 1 5 3.30 1.203 You are satisfied with the ambience of restaurant 40 1 5 3.30 1.244 You are satisfied with the customer service of the restaurant 40 1 5 3.20 1.181 You think you are committed to the restaurant 40 1 5 3.78 1.050 You think you will continue dining at the restaurant 40 1 5 3.63 1.005 You will recommend the restaurant to others 40 2 5 3.70 .911 You will visit the restaurant if it offers new menu items 40 1 5 3.23 1.143 You will look for the restaurant if you move to another location 40 1 5 3.40 1.172 You will not join loyalty programmes of other restaurants 40 2 5 4.08 .944 You will join loyalty programmes if offered by the restaurant 40 1 5 3.70 1.091 You believe that the restaurant will continue to deliver high quality of food 40 2 5 3.68 .997 You believe that the restaurant will continue to deliver high level of customer service 40 1 5 3.45 1.011 You believe that the restaurant will continue to deliver high standards of hygiene 40 2 5 3.63 .925 You believe that the restaurant will continue to provide better Thai flavours 40 2 5 3.63 .925 Valid N (list wise) 40         Table 6: Descriptive Findings 6.3. Findings from Regression Analysis A multi-variate regression has been performed in this section. The multi-variate regression is a statistical method for estimating change in the mean value of a dependent variable resulting from changes in the values of independent variables. For the purpose of this study, it aims to evaluate the impact of three factors including customer satisfaction, customer commitment, and customer trust on the frequency of visits by customers for dining at Thai Square Restaurants. This is based on the justification drawn from the literature review included in this report that these factors affect customer loyalty which in turn increases the number of purchases at or visits by customers to the restaurant. Since, the survey conducted only had 40 successful completions of the questionnaire by customers therefore, it could be suggested that the weaknesses in the results of regression analysis carried out in this report is majorly due to small sample for analysis. It is, therefore, highlighted here as a weakness of the results presented in this report and for future studies increasing the sample size and acquiring a larger set of responses from customers could address this weakness. Based on the purpose of the study, the dependent variable for the regression analysis is a set of response values obtained for a closed-ended question, “How frequent do you dine at Thai Square Restaurants?” Respondents were allowed five response options to select from including “daily”, “weekly”, “monthly”, “every 6 months” and “once a year”. The coding involved assigning values of 5,4,3,2, and 1 to these frequency options respective. In this way, the least number of visits by customers to Thai Square Restaurants has the lowest value of 1. On the other hand, the highest frequency level has a value of 5. The results from the regression analysis are provided in the following. Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .881a .776 .757 .456 a. Predictors: (Constant), Customer Trust, Customer Satisfaction, Customer Commitment Table 7: Regression Analysis - Model Summary The table above indicates that R2 is 0.776. The value of R2 implies that the regression analysis only explains 77.6% of total variations observed in 40 completed questionnaires. This is relatively low value of R2, which is justified on the basis of a small sample size of the study. ANOVA b Model Sum of Squares D f Mean Square F Sig. 1 Regression 25.890 3 8.630 41.506 .000a Residual 7.485 36 .208     Total 33.375 39       a. Predictors: (Constant), Customer Trust, Customer Satisfaction, Customer Commitment b. Dependent Variable: How frequent do you dine at Thai Square Restaurants? Table 8: Regression Analysis - ANOVA Model Coefficients a Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) -.187 .418   -.447 .658 Customer Satisfaction .993 .125 .864 7.943 .000 Customer Commitment .048 .287 .034 .168 .868 Customer Trust -.015 .219 -.012 -.067 .947 a. Dependent Variable: How frequent do you dine at Thai Square Restaurants? Table 9: Regression Analysis - Coefficients The regression equation obtained from the analysis is derived as follows: How Frequent do you dine at Thai Square Restaurants = -.187 + .993 x Customer Satisfaction + 0.048 x Customer Commitment - 0.015 Customer Trust The co-efficient of constant, β0 is -.187. The first co-efficient of slope, β1 related to the independent variable – customer satisfaction is .993. The co-efficient value is greater than 0.5 and it can, therefore, indicative of strong correlation between customer satisfaction and frequency of dining by customers. The positive coefficient also indicates that there is a positive relationship between both variables, which implies that the frequency of dining at Thai Square Restaurants increases as the level of customer satisfaction increases. This finding is supported by the literature review that highlights that if customers are satisfied with the level of service delivered by restaurants then they are likely to visit that restaurant more (Mattila, 2006; Sulek & Hensley, 2004). Moreover, by comparing the p-value with the confidence interval of 0.05, it could be highlighted that the p-value (.000) is less than 0.05. This implies that the relationship between both variables is significant. The second co-efficient of slope, β2 derived from the regression analysis has a value of 0.048. The value is less than 0.5 that implies a weak relationship estimated by the regression analysis between the frequency of dining and customer commitment. The positive coefficient, however, suggests there is a positive relationship between both variables, which implies that with an increase in the value of customer commitment the frequency of visits for dining at Thai Square Restaurants increases. This finding is also consistent with the literature included in this report, which suggests that if customers are more committed to the company then they are likely to purchase more from that company (Lee et al., 2005; Chen & Chang, 2006). The p-value obtained for this relationship is more than 0.05, which implies that the relationship between both variables is not significant. The third co-efficient of slope, β3 is -0.015, which indicates a negative relationship between customer trust and frequency of visits by customers. However, the coefficient value is less than 0.5, which implies weak results derived from the regression analysis. If sample size had been bigger than this could have been addressed. The direction of correlation between the two variables is negative, which implies that as the value of customer trust increases the frequency level decreases. This is not consistent with the conceptual framework of this study, which suggests that customer loyalty is based on customer trust that leads to greater buying or increase in frequency of purchases by customers (Verhoef, Franses & Hoekstra, 2001). In addition, the p-value pertaining to this relationship is more than 0.05, which implies it is not a significant relationship. It must be highlighted here that despite weaknesses in the results of the regression analysis, it assists in asserting the impact of three factors including customer satisfaction, customer commitment, and customer trust on customer loyalty that is measured by the frequency of visits by customers to Thai Square Restaurants. If larger samples would have selected and responses of customers from Thai Square restaurants other than its Windsor branch then it is expected that the findings would have been more clear and appropriate. 6.4. Findings from Independent Sample T Test Considering two different groups on the basis of gender differences – male and female respondents, responses related to three factors customer satisfaction, customer commitment, and customer trust are evaluated using independent samples t-test. The mean values of responses and their standard deviations are summarized in the following table. Group Statistics Gender N Mean Std. Deviation Customer Satisfaction 1 25 3.4533 .816 2 15 3.4778 .814 Customer Commitment 1 25 3.6514 .578 2 15 3.6286 .786 Customer Trust 1 25 3.6100 .670 2 15 3.5667 .868 Table 10: Group Statistics - T Test Assuming equal variances in responses collected, the table provided below indicates the mean difference of the three factors contributing to customer loyalty. The results indicate that there is no significant difference between views of male and female respondents based on mean differences and p-values. These findings imply that the customer loyalty for restaurants is found indifferent between gender types. They behave in a similar manner and view three factors leading to customer loyalty in the same way. For restaurants, it can suggest that they must focus on delivery high quality food and customer services to all types of customers who can have effects on buying decisions of their peers, friends, or family members. Independent Samples Test Levenes Test for Equality of Variances t-test for Equality of Means F Sig. t df Sig. (2-tailed) Mean Difference Std. Error Difference 95% Confidence Interval of the Difference Lower Upper Customer Satisfaction Equal variances assumed .01 .93 -.09 38.00 .93 -.02 .27 -.56 .51 Customer Commitment Equal variances assumed 4.07 .05 .11 38.00 .92 .02 .22 -.41 .46 Customer Trust Equal variances assumed 1.88 .18 .18 38.00 .86 .04 .24 -.45 .54 Table 11: Independent Samples - T Test 7. Findings from Interviews As mentioned earlier in the methodology chapter, the researcher has interviewed one manager from Thai Square restaurant in Windsor. The responses obtained by the researcher from interviewing the manager have been analyzed as follows using the thematic analysis approach. The thematic analysis approach enables the identification of themes in the responses from primary research. Following this, the researcher has looked for themes in the responses given by the manager of Thai Square restaurant in Windsor in light of the literature reviewed earlier in this report. As a result following analysis has been carried out: Question Asked Themes from Literature Reviewed Sample Response What kind of marketing strategy does Thai Square restaurants have? Dining atmosphere Quality of food Fairness in allocation of seats Ambiance Decor Thai Square has a very unique style of management, we manage our restaurants like our own house. We treat our staffs the same way as we treat our own family. As well as our guests, every guests is like our friends. When the guests come to our restaurants, I want them to feel like they are having meal at their friends’ house. Since the first Thai Square restaurant opened at Strand, at that time nobody knows that we will come this far. Thai Square now has 15 outlets in London and around. Every outlet has different style of management depend on the manager. As well as food, every outlet cooks and serves differently…. Have Thai Square restaurants ever have any loyalty programme at all? Exceptional treatment … But the way we do is we offer some discount to customers who come regularly to the restaurants and for regularly I mean every week. In Windsor we have couple of customers who come to have their meal every Sunday and every staff remember them. We give them 10 percent discount every time they come…. What do you think about loyalty programme? Do you think it will be benefit to your organisation? Customer spread favorable information I’m sure the loyalty programme would give something benefit to the organisation. Personally, I’m a member of a lot of loyalty programmes and those programmes benefit me as a customer as well. Do you think Thai Square restaurants should have a loyalty programme? No theme Thai Square has a plan to open in many countries including Thailand, loyalty programmes could be one of our strategies to bring new potential customers at the same time as retain our existing customers. We discussed this issue in our meeting once and the general manager said that we don’t have enough marketing team to deal with this project and hiring new staffs is also impossible because of the visa regulations. It’s true that we can hire anybody to plan the marketing strategy for our restaurants but when it comes to communication, it is not easy to talk to someone who doesn’t speak our language. Especially our staffs, we were born and grew up in Thailand, speaking English is our main problem. That means Thai Square are not ready for loyalty scheme? No theme I didn’t say that we are not ready because we already have our own style of loyalty programme but the programme we have is just not a proper one. We recognise our customer well. I work for Thai Square since the first Thai Square opened at Strand and that was more than ten years ago. I’ve moved to Windsor nearly ten years and I can say that I remember every regular guests and I’m sure that they remember me as well. Not only I give them discount, I sometime give them free dessert or drinks and that’s how our loyalty programme works. We’re just not ready for the official programme. If one day Thai Square wants to adopt a loyalty programme, what is it going to be? No theme In my opinion, it’s very hard to have one because of our marketing strategy. We are not like other chain restaurants. We cook and serve differently in each outlet then the cost of every dish would be different as well. We may have lamb dishes in Windsor but we do not serve lamb in St. Alban. If customers spend 500 pounds at Thai Square in Windsor and expecting a free 50 pounds meal at another Thai Square, the cost of food will be different and this will be a problem in terms of budgeting as we have independent budget of each outlet. If we really need to have one loyalty programme for any reason, it will have to be a programme using only in one outlet. For example, if a guest joins loyalty programme of Thai Square Windsor, they can only claim the reward from Thai Square in Windsor only and the reward could be 10 percents discounts as we normally offer to our regular customers. Table 12: Thematic Analysis 8. Discussion The findings obtained from analyzing the survey responses indicate that people belonging to different age groups and gender are the customers of Thai restaurants. As far as their reason to choose Thai restaurants over other restaurants is concerned, majority of respondents in survey noted that the quality of food offered by the restaurant is the primary reason for their regular visits. Researchers like Gupta et al (2007), Tse and Wilton (2001) and Whittaker, Ledden, and Kalafatis (2007) have all stated that price of food plays an important role in attracting customers and retaining them. However, in this study, respondents have given importance to quality of food above every other thing. Apart from this, the analysis has revealed that when customers are satisfied they tend to visit a restaurant more frequently and this impact on their visits due to satisfaction is significant. On the other hand, however, customers’ commitment and trust have not been found to have a significant impact on the visits they have in the restaurants. Therefore, it can be stated that the three component commitment model is applicable to the extent of customer satisfaction only in improving the loyalty of customers in food service sector. On the other hand, the responses given by manager in interview are also worth considering. As far as the marketing strategies of the restaurant is concerned, the manager noted that no particular marketing strategies are being followed by the restaurants; in fact each restaurant is at liberty to do whatever it considers best. In addition to this, as the manager noted in his response, “We give them 10 percent discount every time they come….” This in turn shows that the primary focus is on the price of food, and Thai restaurants are also aware of the impact of providing low cost or discounted food to their customers. These findings are in line with what Tse and Wilton (2001) have noted in their research. According to them, customers consider the cost of food to be more important than quality of service when selecting a restaurant. When inquired about how loyalty programs could affect Thai restaurants, the manager stated that they can bring benefits to the organization. These findings are in line with what has been noted by Kivela, Inbakaran, and Reece (2000), who consider loyal customers to spread favorable information about the restaurant. It is however pertinent to note in the responses given by the manager that the restaurant has shown reluctance in coming up with a full-fledged loyalty program. In fact, as per the views of the manager interviewed, Thai restaurants believe in more of an unconventional way of making customers loyal, i.e. by way of offering free services and products to their customers, which are identified on the basis of number of visits they have at the restaurants. 9. Chapter Summary In this chapter, the researcher has presented findings from the analysis of information obtained through survey of customers of Thai restaurants and manager of Thai restaurant in Windsor. The findings have revealed that customers of Thai restaurants, who are satisfied with the services of the restaurant, are more likely to visit and remain loyal. On the other hand, customers’ commitment and trust have been found to have insignificant impact on their loyalty towards the restaurant. Apart from this, the responses obtained through interview of manager indicate that the Thai restaurants do not have a specific marketing strategy. In addition to this, it has also been found that the restaurants do not consider customer loyalty programs on top of their priority list, and have formulated unconventional ways of making customers loyal. Chapter 5: Conclusion In this chapter, the researcher presents the conclusion of the study while considering findings obtained from survey and interview conducted. Keeping in view the findings obtained and discussion presented in previous chapter, it has been concluded that the customers of Thai restaurants give significant importance to the quality of food served to them and majority of them visit these restaurants due to the quality they offer. Moreover, as far as the role of three component commitment model is concerned in enhancing customers’ loyalty, it has been concluded that with respect to food service industry, only customer satisfaction has a significant impact on customers’ loyalty. Apart from this, the research work also concludes that Thai restaurants do not follow any particular marketing strategy for their food services. In addition, no particular customer loyalty programs have been adopted by the restaurants mainly due to absence of the resources required to implement such programs and the fact that each restaurant has its own style of operating and catering its customers. Read More