Background and Problem Statement
The customer satisfaction aims to target on researchers and marketing managers as a crucial issue of loyalty of customers. The current studies proposed that delight of customer perhaps generates more customer loyalty than customer satisfaction (Kim, Vogt, & Knutson, 2015).s
The background and problem statement, aims and objectives as well as justification are in the first segment of the report. In the second part, a literature review would provide in-depth information about the topic. The preceding segment would inform about the applied methodology including data collection and data analysis (Sachs, 2015). The research project is accomplished with a conclusion in the last part.
Now days, loyalty has become the major concern to researchers and marketing managers as a multiphase idea and a useful part of customers with accompanying targeted strategies. It is an empirical study on satisfaction of the customers, delight and loyalty. The major aim of this study is to make out how loyalty gets influence from customer satisfaction and customer delight to make out the multiphase framework of loyalty and cognitive loyalties (Bowen and Chen McCain, 2015).
A key driver for loyalty card in retail industry contributes the body of knowledge. Because of rapidly growing globalization, the environment of competition is growing in retail industry that is making more innovations. It ensures a retailing organization to prosper and build a competitive advantage (Maier et al., 2014).
In Middle East countries like Qatar, Saudi Arabia, Jordan and Israel, the analytical study based on primary collected data shows that rapidly growing graph. Tangibles areas have the highest customers’ perception and competence areas have lowest customers’ perception (Hossain and Leo, 2014).
The key objective of this research project is to analyze the association exists between Customer loyalty and customer satisfaction. The aim could be achieved with the help of below mentioned questions of research:
- Are all the other factors associating with frequency level?
- What relationship exists between frequency level and customer trust?
- Is there a linkage between frequency level and commitment?
- Is there an association between service quality and customer trust?
- What relationship exists between Customer loyalty and service quality?
- Is there any association between commitment and customer trust?
- What linkage exists between shopping and customer trust?
In general, the aim of the report is to evaluate the quality of service in retail hospitality sector in the Middle East. This relies on various levels of perceptions of the consumers regarding quality of service. The typical focus is to increase the technological and organizational aspects of e-business (Sayigh, 2014). This is consistent with the resource-based theory to integrate the value creating marketing.
The study focuses to test the impact of dimension of quality of services on customer loyalty. We observe two types of retail analysis such as person-to-person (salesperson level) and person-to-firm (store level). The analysis indicates that service quality is positively linked with loyalty of customers. The strength of loyalty of customers is a significant predictor to grow the company level and reputation. Further discussion about discussion of loyalty card with frequency level and managerial implications on retail trade are given below.
Owing to the growing competition in retail hospitality, the customer service is an important part and hospitality managers should consider how to enhance satisfaction of customers with respect to quality of service (Kim,Vogt and Knutson, 2015).
To achieve higher degrees of services of quality in retail services such as restaurants and accomodation should deliver higher degrees of quality of service. In the present context, perceptions of customers are high in the level of infrastructure and accommodation facilities of the restaurants preceded by return on deposits. This report also includes the international dimension to the retail services literature.
Literature Review
In terms of product innovation, the research on the resource-based approach that argues if loyalty cards are strategically aimed at satisfaction of customers with respect to quality of service. The report relates satisfaction of customer and customer perception in retail industry. The study indicates that shopping, service quality and frequency level are crucial factors that influence customer satisfaction. For achieving radical innovations, flexible working hours are important of the employees of the company.
The Middle East is an emerging and lucrative marketplace that has currently captured the attention of the world-economy for economical reasons. The exploratory study examines the association between small and medium retail enterprises (Wong and shoal 2003). According to the organizational commitment, management and employees’ perception of services on a number of the managers and employees propose the profit-enhancing business (Lee et al., 2014). The behavior is same as western world. However, there are deviations related to the Middle East and Western region in case of cultural and business characteristics. The Middle East is a richly diverse region or more specifically a myriad of unique cultures (Mallakh and Mallakh, 2015). As the market becomes more sophisticated, the value of quality of service enhances. If quality of service increases, then the values of customer satisfaction, customer treat would increase. The loyalty card would be more successful with the improvement of frequency level and commitment level.
The target of this research project is to search if loyalty card could influence performance level of customer satisfaction a company. As the project focuses on the association between loyality of customer and customer satisfaction, we can mark it as a descriptive study. The data analysis is based on collected secondary data.
Data for customer satisfaction in a retail industries such as hospitality, banking and financial farms are collected through publicly available data. It examines the eight retailing areas of eight different cities. The areas of retailing survey are Cairo, Dubai, Mecca, Doha, Jerusalem, Amman, Damascus and Riyadh. The survey organization is eight reputed restaurants. The restaurants are respectively Zitouni, Grossvenor House, Taboula, Choices, Machneyuda, Sufra, Red Roster and Spazio. The types of restaurants are respectively Cafes, hotels, food courts, food stores, accommodation, food markets, retail food strore and wholesale store. The results provide a moderate index for overall customer satisfaction of organisations that is used as data for the analysis.
Loyalty level and customers submit the data that can be found on this website anonymously. The data includes the rating of companies regarding their reputation and popularity. People may rate these restaurants on a scale from one to five assuming five as the best. The cumulative average of all reviews measures the rating of customer quality, service quality and customer trust.
This research project focuses on describing the association among the independent variable of customer satisfaction with the dependent variables such as shopping and frequency count through the mediating variable of customer trust. The bivariate and multivariate regression analyses are applied to study the relationship of factors behind loyalty and factors behind customer satisfaction. The logistic regression was applied to analyze the relationship of quality of service, level of frequency and customer trust (Sekaran and Bougie, 2013).
Methodology
Following hypothesis would be tested (Lee et al., 2014):
H1: All the other factors are linearly associated with frequency level.
H2: The relationship exists between frequency level and customer trust.
H3: There is a linkage between frequency level and commitment.
H4: There is an association between service quality and customer trust.
H5: There is a relationship exists between Customer loyalty and service quality.
H6: There is an association between commitment and customer trust.
H7: A linkage exists between shopping and customer trust.
The first part analysis is to find out the descriptive statistics among the different factors of eight restaurants that are listed to measure customer satisfaction. The variables that are numeric and continuous in nature are respectively customer loyalty, service quality, customer trust, commitment, shopping and frequencies. Therefore, the association could be explained by the bivariate regression analysis. If any functional association would get detected, that would be measured to get information about the strengths of the relationships among different factors. Analysis was conducted with the help of MS excel and Minitab.
We can observe three non-numeric data such as Types, Name of restaurant and Area located. We should ignore these variables in the data, as they are not applicable for descriptive statistics, bivariate regression model and logistic regression model analysis.
The “Sufra” food market in Amman has highest “Customer loyalty” (0.74901) whereas lowest in “Choices” food stores in Doha (0.33631). The “Choices” food store in Doha (3.7854) has highest service quality whereas “Machneyuda” accommodation place in Jerusalem has lowest service quality (1.5739). The “Zitouni” Cafes in Cairo and “Spazio” wholesale store in Riyadh has respectively the highest (98) and lowest (53) customer trust. The same result is observed in case of commitment level where “Zitouni” and “Spazio” have highest (87) and lowest (47) level of commitment. The shopping criterion is also highest in “Zitouni” (0.17845) and lowest in “Spazio” (0.06016). Lastly, the frequency count is highest in “Zitouni” (388) and lowest in “Sufra” (60).
The observed analysis indicates that “Zitouni” Café in Cairo provides best performance and “Spazio” wholesale store provides worst performance in general among all the eight retail stores.
The descriptive statistics shows the mean, standard deviation, sample variance, median, range, minimum, maximum, skewness and kurtosis of different factors of the data. The factors are customer loyalty, service quality, customer trust, commitment, shopping, and frequencies (Beekman, 2017).
The maximum number of customers (measure of customer satisfaction) in terms of frequency is 388 in “Zitouni” and lowest in “Sufra” (60).
Hypotheses H1, H2, H3 and H4 are tested by bivariate regression analysis. Table 3 presents the results of the analysis. Very small R-square value indicates a weak association and the values near to 1 interprets a strong association between hypothesis factors. The p-value is higher than 0.05 that indicates that the analysis is statistically not significant (Haresh et al., 2016). This indicates that a change in customer satisfaction is linearly associated with a change in customer trust (Draper and Smith 2016).
The regression statistics such as multiple R-square (0.951407) indicates that the linear relationship between predictors and response is linear in nature (Darlington and Hayes, 2015). However, no p-value is less than 0.05 (5% confidence interval). Therefore, all the factors have significance with the frequency level. Customer loyalty and commitment shows the high association with frequency level.
Impact of Quality of Services on Customer Loyalty
The bivariate regression relationship gives the value of R-square as 0.0042973. Therefore, these two facors are not linearly related to each other. The p-value is 0.991 that is greater than 0.05, therefore we accept the null hypothesis of association between service quality and consumer trust.
The bivariate regression relationship gives the value of R-square as 0.7413305. Therefore, these two factors are high linearly related to each other. The p-value is 0.0353 that is smaller than 0.05, therefore we cannot accept the null hypothesis of association between consumer trust and shopping index.
The bivariate regression relationship gives the value of R-square as 0.742657. Therefore, these two factors are highly linearly related to each other. The p-value is 0.0348 that is smaller than 0.05, therefore we cannot accept the null hypothesis of association between consumer service and service quality.
The bivariate regression relationship gives the value of R-square as 0.088061. Therefore, these two facors are weakly linearly related to each other. The p-value is 0.835736 that is greater than 0.05; therefore, we accept the null hypothesis of association between commitment and service quality.
H5, H6 are tested with the logistic regression analysis. The dependent variable is level of frequency. Customer loyalty and Customer trust are independent variables (Henkel, 2017). Tables 8 and 9 show the results of logistic regression analysis. Odds 95% Confidence Interval
Predictor Coef SE Coef Z P Ratio Lower Upper
Logit 1: (364/388)
Constant 3003.56 106645 0.03 0.978
Customer loyalty -5150.66 184562 -0.03 0.978 0.00 0.00 *
Logit 2: (356/388)
Constant 3255.10 111784 0.03 0.977
Customer loyalty -5748.63 201026 -0.03 0.977 0.00 0.00 *
Logit 3: (113/388)
Constant -574.699 60577.4 -0.01 0.992
Customer loyalty 934.881 97917.3 0.01 0.992 * 0.00 *
Logit 4: ( 94/388)
Constant 2831.72 101817 0.03 0.978
Customer loyalty -4808.02 173449 -0.03 0.978 0.00 0.00 *
Logit 5: ( 89/388)
Constant 2307.94 89200.2 0.03 0.979
Customer loyalty -3891.32 150393 -0.03 0.979 0.00 0.00 *
Logit 6: ( 73/388)
Constant 3484.39 117376 0.03 0.976
Customer loyalty -6378.47 223933 -0.03 0.977 0.00 0.00 *
Logit 7: ( 60/388)
Constant -793.808 81905.3 -0.01 0.992
Customer loyalty 1251.95 125543 0.01 0.992 * 0.00 *
Log-Likelihood = -0.000
Test that all slopes are zero: G = 33.271, DF = 7, P-Value = 0.000
Goodness-of-Fit Tests
Method Chi-Square DF P
Pearson 0.0000017 42 1.000
Deviance 0.0000033 42 1.000
It is a nomial logistic model between frequency count and commitment of the customers. The p-values are showing that in this model commitment has significant effect and positive association with frequency level (Hasley et al., 2015).
Odds 95% Confidence Interval
Predictor Coef SE Coef Z P-Ratio Lower Upper
Logit 1: (364/388)
Constant 3080.43 18175.4 0.17 0.865
customer trust -39.5985 229.050 -0.17 0.863 0.00 0.00 5.94357E+177
Logit 2: (356/388)
Constant 3363.63 19125.8 0.18 0.860
customer trust -44.6117 252.097 -0.18 0.860 0.00 0.00 1.64059E+195
Logit 3: (113/388)
Constant 312.344 8247.62 0.04 0.970
customer trust -3.37584 88.2917 -0.04 0.970 0.03 0.00 4.89034E+73
Logit 4: ( 94/388)
Constant 1571.69 14132.1 0.11 0.911
customer trust -18.5517 164.030 -0.11 0.910 0.00 0.00 3.69891E+131
Discussion of Loyalty Card
Logit 5: ( 89/388)
Constant 1025.16 11989.4 0.09 0.932
customer trust -11.7620 135.157 -0.09 0.931 0.00 0.00 8.70367E+109
Logit 6: ( 73/388)
Constant 2849.45 17471.8 0.16 0.870
customer trust -36.0437 215.732 -0.17 0.867 0.00 0.00 9.56876E+167
Logit 7: ( 60/388)
Constant 2081.64 15746.4 0.13 0.895
customer trust -25.3053 187.941 -0.13 0.893 0.00 0.00 9.75057E+148
Log-Likelihood = -0.000
Test that all slopes are zero: G = 2483.645, DF = 7, P-Value = 0.000
Goodness-of-Fit Tests
Method Chi-Square DF P
Pearson 0.0000440 42 1.000
Deviance 0.0000879 42 1.000
It is a nomial logistic model between frequency count and Customer Trust of the customers (Henkel et al., 2016). The p-values are showing that in this model Customer Trust has significant effect and positive association with frequency level.
Conclusion
The descriptive, bivariate and logistic regression analyses for both qualitative and quantitative data indicates the popularity of “Zitouni” Café of Cairo and worst performance of “Spazio” in retail marketing of Middle East of the world. The descriptive statistics is also indicating that fact. Next, the bivariate regression analysis shows the strong association between many numeric consecutive factors. The logistic regression models also indicate the positive association between customer trust and customer loyalty with respect to Frequency count on the restaurants. The report interprets that there is a high linkage between factors regarding customer satisfaction levels and royalty influence.
References
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