ABSTRACT

Whether it is for a product or a service, customer satisfaction is essential to the success of any
business organization. Every business must not only keep its current consumers but also considerably
grow its client base. This can only be done when the target customer is completely satisfied with a
firm on a number of different criteria. Due to recent changes in consumer demand and preferences,
the restaurant industry has changed.
Being adaptable and agile as an entrepreneur is essential to meeting and exceeding client de-
mand. The key to keeping customers satisfied and devoted to the restaurant service is to maintain the
quality of the service. The restaurant may struggle to survive in the market and business if it cannot
sustain good service. Consequently, the goal of this study is to look into the fundamental elements of
service quality in a few prominent local eateries that have a bearing on customer satisfaction.
CHAPTER -I
INTRODUCTION

People's free time has been significantly limited by the numerous activities they are involved
in, including employment, study, childcare, religion, sports, and social activities, among others. The
traditional practice of preparing all meals at home for the family has been dwindling as a result of
time constraints. People's eating habits changed as a result of the need for pragmatism, a lack of time,
and the distance between their place of employment and home. Many people started eating at
restaurants as a result. Companies should therefore be concerned with providing services that live up
to customers' needs and expectations.
In marketing, the phrase "customer satisfaction" is commonly used. It evaluates whether a
company's goods and services meet or exceed customers' expectations. "The number of customers, or
proportion of total customers, whose reported experience with a firm, its products, and its services
exceeds established satisfaction targets," is the definition of customer satisfaction. Businesses
typically ask customers if their product or service has met or surpassed expectations while conducting
satisfaction surveys. As a result, pleasure is greatly influenced by expectations. When clients have
high expectations and the experience isn't up to par, they'll be disappointed and probably give it a
"less than satisfactory" rating.
  Every home in this era has seen significant change in terms of eating preferences and habits.
Many trading operations in this regard are developing, including motels, eateries, and business
organizations. These businesses must establish their own reputation and brand in the eyes of the
public and their clients. All these trading activities depend on service quality and customer
satisfaction which are the main themes of this research to elaborate.
From the standpoint of marketing, both customer satisfaction and service quality are crucial for
both vendors and purchasers. Similar to how buyers and sellers are referred to as service providers
and recipients, respectively, both deal with service. Customers are always viewed as the foundation of
the company by givers. The clients also expect great services from the restaurant or company
organization, therefore they endeavor to provide quality service. Therefore, it is the duty of the
company to provide a good service and satisfy the consumer by fulfilling their needs and wants.
Customers want the greatest service possible from the corporate organization. So, business
organizations have to make the customers happy and treat them well equivalent to their paid amounts.
Business organizations and customers have a give-and-take relationship.
Customer satisfaction, or C Sat, is a marketing word that is commonly employed. It evaluates
whether a company's goods and services meet or exceed customers' expectations. The percentage of
all consumers whose reported experiences with a company, its products, or services surpass
predetermined satisfaction targets is known as customer satisfaction. Customer satisfaction is a
crucial performance measure that frequently appears on a balanced scoreboard. Customer happiness is
viewed as a crucial differentiator in a competitive world, the marketplace where businesses compete
for clients, and it has increasingly become a key aspect of corporate strategy. Because consumers who
are merely pleased still easily move when a better deal arises, many restaurants strive for great
customer satisfaction.
Highly pleased people are far less likely to switch. High satisfaction goes beyond just rational
preference to build an emotional bond with the brand. Customer loyalty is very high as a result. In
business-to-business marketplaces, the most popular type of market research is customer satisfaction,
which is frequently linked to quality and production measurement rather than pure marketing-based
research. Consumer satisfaction serves as a forward-looking indicator of customer loyalty and buying
intentions. Perhaps the best measure of how probable it is that a company's consumers will make
more purchases in the future is customer happiness.

Theoretical Background:

Whether a customer is satisfied with an offer after making a purchase relies on how well the
offer meets the customer's expectations. A person's feelings of joy or disappointment as a result of a
product's perceived performance (outcome) in comparison to his or her expectations are generally
referred to as satisfaction. Perceived performance and expectations influence satisfaction. The
customer feels disappointed if the performances don't live up to their expectations. The customer is
satisfied if the performance meets their expectations. When a performance goes above and beyond
expectations, the client is extremely happy or delighted.
Customer pleasure is crucial Because it gives marketers and business owners a statistic to
utilize to manage and enhance their operations, and customer happiness is crucial. The following are
the main justifications for why client pleasure is crucial: It serves as a proactive predictor of client
loyalty and repurchase intent: The most accurate predictor of a customer's propensity to make another
purchase is their level of satisfaction. A smart technique to determine whether customers will
purchase from you again is to ask them to rate their level of satisfaction on a scale.
Customer satisfaction is a point of differentiation: In a cutthroat market where companies
fight for customers, customer contentment is considered as a major differentiator. Businesses that
prioritize customer happiness as a critical component of their business strategy are those that prosper
in this competitive climate. Businesses that provide outstanding customer experiences foster cultures
where customer satisfaction is high and brand evangelists are in abundance. The circle of consumer
happiness is complete in this case. Customer satisfaction can serve as a differentiator for potential
customers as well as a way to monitor the mood of your current clients.
It lowers customer attrition: Bad customer service is more often to blame for client churn than high
prices. The metric you may use to lower client churn is customer satisfaction. You can improve the
overall standard of your customer service by implementing new procedures after measuring and
tracking client satisfaction.
Factors affecting customer satisfaction Quality of product or service:
The quality of the product or service is prioritized by customers. The customers take it into
account first and foremost. If a product or service is of bad quality, no amount of aggressive
marketing will be able to save it. Online commerce Nowadays, it's easy to find goods and services
thanks to the internet. Flipping through a phone book used to take minutes, but using the internet now
takes a few seconds. Companies have spent millions to ensure that access is really simple because
emailing and looking for goods and services online have become such important resources. When
there are two barriers to accessing a service, or at the absolute least, few barriers, customers are
happy.
Service delivered on time: A disappointed customer is one who cannot access a product or service in
a timely manner. When clients depend on service, excuses are not acceptable. A prime illustration is
the dreaded time window. In a culture where consumers expect quick gratification for everything
from food to foreign policy, a smart company must minimize waiting times. Separation from identical
products: There are typically several products, sometimes even dozens, in a market. Certainly, word-
of-mouth influences how satisfied customers are. If a product stands out amid other products that are
otherwise identical, it must be distinguished from the competition through marketing, customer
service, and good old-fashioned product excellence.
Creating a perception of good value: When a good or service is more expensive but still
worthwhile, the customer will accept the price. When a customer purchases expensive goods from
well-known brands, the benefits of the goods or services should outweigh the price, giving the
customer a strong sensation of getting a good deal. Additionally, excellent customer service is
essential. Responsibility: A business owes its customers an obligation to be truthful. When it comes to
client pleasure, hiding facts, figures, and unnecessary print doesn't get you very far. When a customer
requests a refund or an exchange and the business doesn't honor such requests, that will stand.
A pleasant ambiance: The customer would choose to buy at a store that provides a clean, safe, and
well-organized environment when given the same product or service. Every time you require a
product of the same brand and price, the retailer that is psychologically friendlier will prevail.
customer satisfaction as a goal. A company should always be looking for ways to increase client
happiness.
Basic steps in customer satisfaction:-
Ask customers if they like the product or service
Fix it, improve and make changes
Sell the improved products
Assess the progress Customer satisfaction provides a leading indicator of consumer purchase
intention and loyalty.
Data on customer satisfaction are some of the most regularly gathered measures of how the
market is perceived. They adhere to two principles:
1. Internally, the gathering, analysis, and dissemination of these data convey the value of attending to
the needs of the client and ensuring that they are satisfied with the products and services provided by
the business.
2. While sales and market share can provide insight into how well a company is doing, customer
happiness at the moment may be the best predictor of future customer behavior.
Customer happiness and retention are topics of much research, and findings suggest that the
relationship between the two is strongest at the extremes. Although it is measured on an individual
basis, customer happiness is virtually often presented in aggregate form. It can and frequently is
measured in a variety of ways. For instance, a hotel might ask guests to review their interactions with
the front desk and check-in staff, the room, the amenities in the room, restaurants, and other aspects
of the hotel. The hotel may also inquire about your overall satisfaction with your stay as part of a
comprehensive service.

2. SCOPE OF THE STUDY

The scope of this study is t o a better understanding of customer satisfaction in the restau-
rant business in general and t o identify the i m p o r t a n t c r i t e r i a f o r c u s t o m e r s a t -
isfaction.
While the study recognizes that this is important for new restaurants entering the Erode restau-
rant marketplace or existing restaurants.

3. OBJECTIVE OF THE STUDY:

PRIMARY OBJECTIVE:
To determine the factors that explain customer satisfaction in the full-service restaurant industry
The objective of the study is to construct a comprehensive model of customer satisfaction in the
fast-growing restaurant industry
SECONDARY OBJECTIVE:
To determine the customers’ level of satisfaction with restaurant services.
To study the customers’ expectations and preferences towards the restaurant services.
To study various features that restaurants should possess to satisfy the customers

4. STATEMENT OF THE PROBLEM

Restaurants play an important part in our daily lives. An essential component of any successful
restaurant is the level of customer satisfaction. To improve their reputation, restaurants should make
an effort to maintain positive relationships with their customers. However, many restaurants struggle
to please their customers and wind up with high levels of customer dissatisfaction. Thus, by learning
about client wants, this study aids in problem-solving increases customer satisfaction, and helps to
understand how customers react. Therefore, understanding the amount of consumer satisfaction will
aid restaurants in enhancing their offerings.
5. LIMITATION OF THE STUDY

• This study focuses on the city of Erode.

• Data collection in a restaurant might be challenging since occasionally, patrons are intoxicated.
• There can be time and money restrictions during the study.
• Language obstacles arise when surveying restaurant patrons using questionnaires.
• It implies that the majority of the customer is Finish. As a result, they are not entirely motivated to
fill out a questionnaire form with their responses.
• The biggest issue is that each questionnaire sheet contains 17 questions in total, which means that it
takes more than 5 minutes for each consumer to complete it. This means that it would take more
than 3 times as long to gather data from all of the different customers. Thus, it is one of the study's
issues.
CHAPTER-II

REVIEW OF LITERATURE

Service quality in food-service operations has been characterized as individualized, intangible,

and subjective in nature (Johns and Howard, 1998). The customers’ perception of service quality
comes from their evaluation of what they experienced and what they expected. During the last
decade, the conceptualization and measurement of service quality have received a great deal of atten-
tion in the literature. (Parasuraman et al., 1988) has been widely used in research studies across a
range of service industries (Buttle, 1996; Carman, 1990).
According to Correa and Hansen (2014), the services sector occupies a prominent position in
the world economy and for entrepreneurs to survive in the market, they must excel at the quality of
services, as consumers are increasingly demanding and rely on social media and websites. sharing of
opinions to express opinions about services experienced. For Fadel and Regis Filho (2009), the per-
ception of quality is based on objective and subjective criteria, so knowing the expectations of the
customers can be the first step towards the development of actions that will lead to improvements by
the manager of the organization.
According to Pinheiro et al (2008), defining quality in services is based on the expectation of
the customers, which can cause different conceptions, since each customer has their expectations and
perceives the quality according to their needs. In a highly competitive market such as food, managing
quality successfully in all its dimensions becomes a decisive factor to develop a differential that adds
value to the service and, at the same time, loyalty to the customer, through their satisfaction.
The term "satisfaction" can be defined as "the state of being adequately rewarded in a situation
of acquisition by the sacrifices made" (HOWARD; SHETH, 1969). Satisfaction can also be defined
as "the psychological state arising from an emotional state applied amidst an expectation by virtue of
an acquisition that comes to compound with the feelings of the consumer" (OLIVER, 1981) or "a
complete reaction to the act of consumption "(OLIVER, 1993).

11
Customers construct their expectations of pre-consumption, examine the product/services, re-
late expectations to the product/services, and draw conclusions based on acquired knowledge, thereby
forming their satisfaction assessment (OLIVER, 1993).
One attribute relates to another, since, under a managerial view, customer satisfaction has be-
come a goal today, because customers who are satisfied are less prone to change, as they end up cre-
ating an emotional bond with the company, causing positive publicity, bringing more financial return
to the establishment and becoming more faithful (BATESON, 2001).
According to Pinheiro et al. (2008), the services sector has peculiar characteristics that make it
different from the industrial one, because in many cases, an organization is the result of the merger of
a service provider with another one of goods, as is one of the food industry companies that provide
the meal, served in the restaurant, as a tangible product and the provision of intangible services that
are the sensations perceived by customers. Thus, food is as important as the services provided.
It is extremely important to understand what makes up customer satisfaction, and whether the
customer will return to the restaurant or not (DUBE, 1994). For some authors, a person feels pleasure
as he or she feels good, happy, and satisfied interacting with the place (MEHRABIAN et al., 1974).
In the ambiance of the restaurant, there will be arousal of emotions of pleasure and activation at
the moment of consumption, and these emotions will have positive effects on the satisfaction of con-
sumers in the restaurant for the services offered and quality in general. When a customer is satisfied
with the environment, this influences positively, thus demonstrating overall customer satisfaction
with the restaurant (OLIVER, 1993).
According to Bortolotti et al (2012), consumer satisfaction research provides consumers with a
more positive perception of the company; loyalty relationships with consumers; accurate and up-to-
date data on consumer needs; and confidence developed in the face of greater rapprochement with the
consumer. This means that resources intended to increase consumer satisfaction are seen as invest-
ments rather than as expenses.
Mattila (2002) insisted that a major predictor of the loyalty of a customer in casual dining
restaurants is food quality. If compared with food quality, other features of the restaurant like service
12
quality and environment components become secondary. In a recent test conducted by Namkung and
Jang (2007) it was revealed that food quality impacts customer satisfaction. They discovered an opti-
mistic association between the quality of food and satisfaction/behavioral intentions. Out of those
characteristics, appeal comprises various items like presentation, taste, color, temperature, texture,
and portion size. In addition, Namkung and Jang (2007) asses the food quality by the menu item vari -
ety, presentation, healthy options, freshness, taste, and temperature. Thus it is concluded that food
quality is an important aspect to be studied.

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CHAPTER -III

RESEARCH METHODOLOGY

RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a man-
ner aims a combine relevant to the research purpose with economy in procedure”.
Research is to analyze the particular product and to get a good result it is collected research,
under these see details about sampling units and random sampling method above have been given
DATA COLLECTION METHOD:
The method of collecting primary data is through the questionnaire method. The interview
method is adopted by preparing a structured questionnaire

SOURCE OF DATA COLLECTION:

1. PRIMARY DATA COLLECTION:
The primary data has been collected in the questionnaire.
2. SECONDARY DATA COLLECTION:
The data has been collected from various public sources, books, and websites
SAMPLE SIZE:
This refers to the number of items to be selected from the population to constitute a sample. In
this study, the size of the sample is 150.
SAMPLING TECHNIQUE:
➢ In this study, the Random Sampling technique was used.
➢ Random sampling is a part of the sampling technique in which each sample has an
equal probability of being chosen. A sample chosen randomly is meant to be an unbiased repre-
14
sentation of the total population. If for some reason, the sample does not represent the popula-
tion, the variation is called a sampling error.
QUESTIONNAIRE:
The questions are arranged in a logical sequence. Nominal, ordinal, and interval scales were
used to construct the questionnaire. The questionnaire was sent to the persons concerned with a re-
quest to answer the questions.
STATISTICAL TOOLS USED:
The data collected from the primary source were arranged sequentially and tabulated in a sys-
tematic manner. The statistical tools used for analysis include:
• Simple percentage analysis
• Chi-Square Analysis
• Weighted Average score Ranking
SIMPLE PERCENTAGE ANALYSIS
The ratios are very often expressed as percentages. In the calculation of percentage, one figure is
taken as the base and it is represented by 100. The other figures are expressed as the ratio of this base.
The following formula is used for the calculation of the percentage of the respondents.
Simple percentage= No.of respondents / total no.of respondents x100
CHI-SQUARE ANALYSIS
The chi-square is a measure of the actual divergence of the observed and expected frequencies and as
much if there is no difference in observed frequencies the value of the chi-square is zero. The Chi-
square test enables us to find out whether the divergence between expected and actual frequencies is
significant or not. The following formula is used for calculating the chi-square test.

2= (0 − 𝑒)2
X ∑

15
Where

2
χ = Chi-square test,
O= Observed frequency,
E= Expected frequency
2
If distribution (observed and theoretical) are exactly alike, x =o; (Generally, due to sam-
2
pling errors, x is not equal to zero)
WEIGHTED AVERAGE SCORE RANKING
Under this method, the respondents are asked their choices. It includes a ranking of the items
given. Scores are given to each item and the total scores are taken into consideration. The highest
score is ranked first and correspondingly other ranks are assigned. The ranks will be given for each
factor from first to the sixth rank allocated from 6 to 1 respectively based on the total points.

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CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION
SIMPLE PERCENTAGE METHOD
TABLE.NO 4.1.1

NO.OF PERCENTA
S.NO PARTICULARS RESPONDENTS GE
1 Under 18 15 10
2 19-25 35 20
3 26-30 40 25
4 31-40 40 25
5 Above 40 20 20
TOTAL 150 100

17
INTERPRETATION

18
CHARTS.NO.4.1.1

19
TABLE.NO 4.1.2

NO.OF PERCENTA
S.NO PARTICULARS RESPONDENTS GE
1 Male 85 65
2 Female 65 35
TOTAL 150 100

INTERPRETATION

20
CHARTS.NO.4.1.2

21
TABLE.NO 4.1.3

NO.OF PERCENT
S.NO PARTICULARS RESPONDENTS AGE
1 Below 10,000 10 5
2 10,000-20,000 25 20
3 20,000-30,000 45 35
4 30,000-40,000 55 25
5 40,000 and above 15 15
Total 150 100

INTERPRETATION

22
CHARTS.NO.4.1.3

23
TABLE.NO 4.1.4

NO.OF PERCENT
S.NO PARTICULARS RESPONDENTS AGE
1 Rarely, 0 – 1 times 30 25
2 Sometimes, 2 – 4 times 45 25
3 Fairly occasionally, 5-9 times 50 30
4 Very occasionally, 10+ 25 20
Total 150 100

INTERPRETATION

24
CHARTS.NO.4.1.4

TABLE.NO 4.1.5
25
NO.OF PERCENT
S.NO PARTICULARS RESPONDENTS AGE
1 Alone 30 35
2 Family 25 15
3 Friends 50 30
4 Colleagues 45 20
Total 150 100

INTERPRETATION

26
CHARTS.NO.4.1.5

27
TABLE.NO 4.1.6

NO.OF PERCENT
S.NO PARTICULARS RESPONDENTS AGE
1 Less than 2000 25 30
2 2000 – 3000 35 20
3 4000 – 5000 45 20
4 6000 – 9000 30 20
5 Or more than 9000 15 10
Total 150 100

INTERPRETATION

28
CHARTS.NO.4.1.6

29
TABLE.NO 4.1.7

NO.OF PERCENT
S.NO PARTICULARS RESPONDENTS AGE
1 Lack of knowledge 30 10
2 Choosing a meal 25 25
3 Lack of communication 25 15
4 Menu selection 15 20
5 Price 35 20
6 Variety 20 10
Total 150 100

INTERPRETATION

30
CHARTS.NO.4.1.7

TABLE.NO 4.1.8
31
NO.OF PERCENT
S.NO PARTICULARS RESPONDENTS AGE
1 Ambiance 35 25
2 Service 25 15
3 Hygiene 25 20
4 Variety of deals 15 15
5 Price 50 25
Total 150 100

INTERPRETATION

32
CHARTS.NO.4.1.8

33
TABLE.NO 4.1.9

NO.OF PERCENT
S.NO PARTICULARS RESPONDENTS AGE
1 Important 60 55
2 Somewhat important 55 35
3 Not important 35 10
Total 150 100

INTERPRETATION

34
CHARTS.NO.4.1.9

35
TABLE.NO 4.1.10

NO.OF PERCENT
S.NO PARTICULARS RESPONDENTS AGE
1 Take away restaurants 50 35
2 Dine in restaurants 40 35
3 Both 60 30
Total 150 100

INTERPRETATION

36
CHARTS.NO.4.1.10

TABLE.NO 4.1.11
37
NO.OF PERCENT
S.NO PARTICULARS RESPONDENTS AGE
1 Self Service 65 45
2 Waiter/waitress service 85 55
Total 150 100

INTERPRETATION

38
CHARTS.NO.4.1.11

39
TABLE.NO 4.1.12

NO.OF PERCENT
S.NO PARTICULARS RESPONDENTS AGE
1 Yes 65 50
2 No 55 25
3 Sometimes 30 25
Total 150 100

INTERPRETATION

40
CHARTS.NO.4.1.12

CHAPTER-V
41
1. FINDINGS

42
2. SUGGESTIONS

43
3. CONCLUSION

44
BIBLIOGRAPHY

45
APPENDIX
QUESTIONNAIRE

1. Your Age:
• Under 18
• 19-25
• 26-30
• 31-40
• Above 40

2. What is your gender?

• Male
• Female

3. Please indicate your monthly salary.

• Below 10,000.
• 10,000-20,000
• 20,000-30,000
• 30,000-40,000
• 40,000 and above

4. How often do you visit a restaurant each month?

• Rarely, 0 – 1 times
• Sometimes, 2 – 4 times
• Fairly occasionally, 5-9 times
• Very occasionally, 10+
46
5. Who do you usually go with when you dine at a restaurant?
• Alone
• Family
• Friends
• Colleagues

6. How much money do you spend on an average a month dining out?

• Less than 2000
• 2000 – 3000
• 4000 – 5000
• 6000 – 9000
• Or more than 9000

7. Please rank your main reasons for selecting a restaurant in order of importance, as 8 is most
preferred and 1 is least preferred.

S.No Factors Rank

1 Service & employee friendliness
2 Ambiance
3 Accessibility
4 Quality of food
5 Menu variety
6 Food presentation
7 Value added deals
8 Value for the money

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8. What would you say is the biggest challenge of eating in a restaurant?
• Lack of knowledge
• Choosing a meal
• Lack of communication
• Menu selection
• Price
• Variety

9. When you visit a restaurant what is the first thing you look for?
• Ambiance
• Service
• Hygiene
• Variety of deals
• Price

10. How important is the price factor for you?

• Important
• Somewhat important
• Not important

11. Do you prefer restaurants that have the service of Take-away or Dine in?
• Take away restaurants
• Dine in restaurants
• Both

48
12. Do you prefer self-service restaurants (e.g. buffets) or waiter/waitress service restaurants?
• Self Service
• Waiter/waitress service

13. Do special offers on meals and prices attract you to a restaurant?

• Yes
• No
• Sometimes

14. Please rate the following services, from 1 to 5.

• Friendliness of staff
• Staff’s knowledge of the menu
• Attentiveness of staff
• Cleanliness
• Order time.
 
15. Rate the following variables by marking tick according to the satisfaction level (where 4 is
the highest and 1 is the lowest).
Strongly Disagree

Disagree Agree Strongly Agree

Services

Convenience

Quality

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Environment

16. What makes you choose the restaurant or revisit intentions or the best part of your visit?
Online purchase
Hosting events
Extension of the parking area
Children play area
Others

17. What are the problems faced in the restaurant or the worst part of your visit?
• Environment
• Parking facilities
• Waiting time
• High rate
• Non-availability of varieties at times
• Insufficient utensils
• Distance
• Poor service

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