CHAPTER TWO

REVIEW LITERATURE

This chapter reviews the literature in five main areas with a summary: (1)
Definition of Customer Satisfaction, (2) Concept of Service (3) Four Ps Concepts:
Marketing Mix (4) Success Factors in Restaurant Management (5) The Physical
Facility and (6) Relevant Research

2.1

DEFINITION OF CUSTOMER SATISFACTION

In the hospitality industry, customers satisfaction is a significant key which is

attributed to the success of the organization. To understand the satisfaction of

customers, we need to know the definition of satisfaction.
McCormick and Tiffin (1974) pointed out that satisfaction is the part of human
motivation that is based on their basic needs and they try to avoid those they dislike.
Liu (2000) stated that satisfaction is a function of performance relative to the
customers expectations. When a lot has been promised and more is being delivered,
this will always create satisfied customers.
Kotler (2003) mentioned that satisfaction is a persons feeling of pleasure or
disappointment resulting from comparing a products perceived performance (or
outcome) in relation to his or her expectations. It can be inferred that the customer will
be satisfied if the service or products exceed their expectations.

2.2

CONCEPT OF SERVICE
Kotler (1994) refers to as service being separated into four fundamental

characteristics as follows:1.

Intangibility: Service is an abstract which cannot be seen, tasted, felt,

heard and smelled before they are bought. Therefore, the customers will access the
service quality from staff, place, ambience, equipment, material, symbols and price.
2. Inseparability: Services are produced and consumed at the same time. It
cannot be separated from their providers which are people and machines.
3. Variability: Service will be classified in various ways depending on who
provides them and when they are provided.

4. Perishability: The service that cannot be produced and inventoried before

consumption. They exist only at the production time.

2.3

FOUR Ps CONCEPTS: MARKETING MIX

According to Kotler (1994), there are 4 concepts of marketing plan product,

price, promotion and place. This concept is called the Four Ps Concept.
1.Product: The first marketing mix, can be both tangible and intangibles
(service). If it is tangible, it includes quality, design, feature, name and others. If it is
intangible, it includes delivery, repair and others.
2.Price: Price is the amount of money which consumers or customers are
willing to pay for a product or service. The price should be reasonable and go well
with the value of the product or service; otherwise, the consumer or customers will not
pay for that thing.
3.Promotion: Promotion is the communication process persuading customers to
buy the product or service. The form of promotion varies, for example advertising,
sales promotion, sales service, direct marketing and others.
4.Place: Place refers to the accessibility and availability of consumers to
receive the product or service. It includes channel of distribution, location and others.

2.4

SUCCESS FACTORS IN RESTAURANT MANAGEMENT

Robert, Berry and Roberta (1990) mentioned that service is a major concern

for both the customers and operations. There are five elements that are important to
the service which are providing timely service, answering customer questions,
handling complaints, delivery of accurately totaled guest check and recommending
appropriate menu items. Customers seem most satisfied with the accuracy of the
check, staffs ability to answer the questions and recommending appropriate menu
items. Moreover, the two most common complaints are speed of service and
inattentive staff. The customers will feel that the received service is too slow or being
rushed so it is important to tailor the speed of service to the individual and the
occasion. In the latter case, customers are upset if the staff waits too long before taking
an order or retrieving the bill. The customers think that the waiting seems longest after
the meal is over while delayed services during a meal seem shorter than waiting either

before or after the meal. Customers are dissatisfied with complaints if they could not
be handled.

2.5

THE PHYSICAL FACILITY

According to Mill (2001), the physical facility also relates to the success of the

restaurant as follows:1. Layout: The size of an operation will vary depending on the type of
provided service and the extent of menu offered. The more extensive menu, the larger
the operation tends to be.
2. Atmosphere: It is a general mood that is set by the restaurant which may
differentiate any restaurant concepts. Although excellent food and beverage items are
influential to the success of any operation, the surrounding atmosphere can also
significantly attract or detract from the diners experience for each meal. The
atmosphere includes table arrangement, furniture, entertainment, space, seating
arrangement, lighting level and colors used.
2.1 Table arrangement: The first impression of the customer is the table
setting. It is important to set the table according to the restaurants mood: formal and
informal, expensive or economical. The table arrangement should be an attractive with
a mixture of dinnerware, glassware, flatware, linens and accessories.
2.2 Furniture: The selection and placement of chairs, tables and banquettes has
a physical and psychological dimension. The physical dimension involves having
enough room to be comfortable and the psychological dimension involves the feeling
that the furniture gives the customers.
2.3 Entertainment: In dining the entertainment should complement the overall
atmosphere in the operation. It must create an atmosphere that can encourage
customers to enjoy their dining experience. The operators must select the
entertainment that matches the menu, decoration, lighting and all of the marketing
elements.
2.4 Space: The space allocated for diners may range from 8-12 square feet
which influences peoples behavior.

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2.5 Lighting: There are four purposes for lighting-helping the restaurants
mood, making both food and customers look good, providing security and safety to
customers and being bright enough for customers to complete their work.
2.6 Color: The color will affect the room, food and customers. Color can give
the feeling of spacious or intimate space. Light colors can make small rooms seem
larger while dark colors can make a large room seem smaller. Food looks better under
warm colors such as red, yellow, brown, gold and orange. Green and grey tend to
make people look pale.

2.6

RELEVANT RESEARCH
Customers satisfaction in restaurants has been widely studied; however, hotel

management is required to keep the results confidential since negative results will
affect the hotel image. Therefore, the following related research studies are used as a
model.
Orawan Sombatpaiboonchai (2003) studied Staff satisfaction of the staff
canteen: A case study at Shangri-la Hotel, Bangkok. The study was aimed to measure
the staff satisfaction levels in terms of quality of food and beverages, service, utensils
and facilities of the staff canteen at Shangri-La. The results found that most staff were
satisfies. Nevertheless, for food and beverages, customer satisfaction towards the taste
of food was rated at a moderate level. Moreover, the cleanliness and sanitation of the
utensil was given the lowest ranking by staff.
Hathairat Ongthanawat (2008) studied A Survey of Foreign Customer
Satisfaction with Tip Top Restaurant at Patpong The study aimed to measure the
level of foreign customers satisfaction towards restaurant appearance, staff, food and
special promotions. The results found that the customers satisfaction was at the
highest level in terms of good restaurant appearance and service minded staff.
However, it was recommended that the restaurant improve the food portion despite the
reasonable price.
Pornsak Ubolpoolpol (2004) revealed in Fast Food Consumption Behavior
Among People of Different Genders and Ages : A Case Study of McDonalds that
there was a difference in the frequency of consumption at McDonalds, the time to go
McDonalds, and the money spent on McDonalds between males and females. For

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the attitude result, the majority of the respondents were satisfied with McDonalds in
terms of food, service and location.
(2545) mentioned in the
that most foreign tourists were
somewhat satisfied with the restaurants. The variety of food & ingredients, taste,
politeness, a pleasant smile, well groomed, friendliness, convenience and fast services,
sufficient waiters & waitresses and quality of service was rated at the completely
satisfied level. Besides, advertising and discount had the satisfaction at the dissatisfied
level