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Table of Contents

Intoduction ..................................................................... 3
Article One ..................................................................... 3
Comparison of Article One and Two ..........................14
Analysis of a Service in the Hospitality Industry........ 16
Findings Part One ± Potential Customers .................18
Findings part Two ± Current Customers ....................19
Linking to Concepts..... ë


 

 

Recommendations ......................................................22
Conclusions ................................................................. 22
Reference List .............................................................22
Appendix ...................................................................... 22
Appendix One: Questionnaire .................................... 22
Appendix Two: Results From Potential Customers... 25
Appendix Three: Results From Current Customers .. 26
28

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INTRODUCTION:

This Essay explores a fast growing segment in the Hospotality industry known as

quick-casual restaurants. Two studies have been examined in order to ascertain

how to provide the best service quality to the Hospotality industry.These studies

are focused on resteraunt service quality and introduce theorys and concepts on

how to measure service quality and customers Behavioural Intentions

Primary Research has also been conducted to evaluate these studies and

provide an analysis of how the concepts and theories of the studies hold up in

real life senarios.

Article One

Article One was found in the Journal of Hospitality and Research and is based

around findings (both primary and secondary) researchedby KisangRu and

Heesup Han. The study examines three main dimensions of servicequality in

quick-casual restraunts.

Before going any further I feel it is important to address the definition of a ³quick

casual restertaunt´ as this is a new and fast growing category in the current food

industry.

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KisangRu and Heesup define a quick casual restaurant as being

³a category that fills a restaurant niche between fast -food and full service´

People are beginning to eat out more and more and are looking for something

healthier then the main chain takeaways. Quick -Casual Restaurantsprovide two

options either healthy takeaway options or a full service sit down menu. Quick-

Sale restaurants generally havea high sales volume and target adult customers

with a middle to high income.

The three main dimensions studied in article include Price, Satisfaction and

Behavioral Intention

The specific objectives of the study were to:

(a) Investigate the combined influences of Perceived Quality of food, service,

and physical environment on customer satisfaction

(b) To examine the impact on customer satisfaction and behavioral intention

(c) To explore the moderating role of perceived price in relations hips between

three dimensions of quality (quality of food, service and physical

environment) and customer satisfaction.

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Kisang and Heesup conducted focus groups, pilot tests and a questionnaire to

asses the associations with food, service, price, physical environment and

customer satisfaction with quick casual restaurants. All items were assessed on a

7-pointLikert scale and data quality testing and regression models were used

thoroughlyin order to provide true quality results.

Results of the study indicted that customers of quick -service restaurants are most

influenced by quality of food followed by quality of physical environment and

quality of service.

This indicates that the taste and quality of foo d should be highly monitored in

order to provide the best customer satisfaction.

Therefore customer feedback is very important and quick-casual restaurants

should direct their focus to feedback about the food. This will also enable waiters

to develop relationships with the customers. Un-happy customers could be given

vouchers to the restaurant if they were not happy with their meals. This enables

the restaurant to get a second chance as the customer (depending on the amount

of dissatisfaction) will return t o your restaurant to spend their voucher, where you

get a chance to persuade there thoughts of the restaurant and decline negative

word-of mouth.

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·hen evaluating restaurants to eat for lunch or breakfast new customers

evaluate a restaurant on its tangible benefits, such as lighting, aroma,

atmosphere, and layout to analyze what they think the restaurant will deliver as

they are not able to actually taste the food until they decide to become a

customer.

Intangible benefits are difficult to monitor however Physical Environment is the

second most important factor contributing to customer satisfaction in a quick -

casual restaurant. For that reason quick-casual restaurant managers should

ensure that their décor reflects what the restaurant offers and has an inviti ng feel

to it. Clark and ·ood argue, ³tangible rather then intangible elements are of

greater importance in gaining customer loyalty and continued restaurant

patronage.

Although this conflicts with the results from the study (that quality of food is

considered more important then quality of physical environment) it is important to

note that results from the study were based on current customers rather then

potential new customers. I think it would be interesting to compare the two results

to see the difference in opinions, which can then be related to what the physical

environment is saying to both potential customers and current customers.

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This study begins to understand the fundamental rules around quick -casual

restaurants. The way to satisfy customers is to provide a pleasant Physical

Environment (e.g., attractive interior design and décor, comfortable seats, high

quality of furniture, professional appearance of employee, and pleasant music,

lighting, color) It is important to remember that people don¶t nessacerily want to

go somewhere that feels like home. For this reason, National Restaurant

Association¶s (2001) restaurant industry forecast, showed restaurant operators

are investing more than ever before in restaurant design and décor as they strive

to create a setting that will set them apart from the competition.

From this standpoint quick-casual restaurants are then able to (with little cost)

create ambience though music, scent, lighting, and layout to create a

personalized competitive ad vantage. According to this study, by providing this

kind of Physical and Ambient environment and teaming it with high quality food

and service will equate in the highest level of customer satisfaction. Therefore

customers will be loyal and provide healthy word -of- mouth.

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http://web.ebscohost.com.ezproxy.aut.ac.nz/ehost/pdfviewer/pdfviewer?sid

=9f88c892-294c-49a0-a3df-e669c296c511%40sessionmgr11&vid=4&hid=14

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Dineserv: A Tool for Measuring Service Quality in Restaurants 6


Article two looks at how current restau rants are offering high service quality to

ensure they have a competitive edge. ³·ith increased disposable income,

growing urbanization and the impact of transport and communication have fuelled

a strong demand for restaurant services´´. In a bid to provid e customers with the

high level of service quality restaurants are looking for any way to be noticed by

the crowd. ·ait staff are also highly trained in there bid to receive repeat

customers.

This study focuses on one of the main concepts used today in ser vice quality in

retseraunts. DINESEV. http://cqx.sagepub.com/content/36/2/56.abstract

DINSERV is considered one of the most reliable, relatively simple tool for

determining how customers view a restaurant quality. DINSERV is a concept

derived from the SERVQUAL model which is designed to measure service quality

in specifically ³restaurants´.http://books.google.co.nz/books?id=qBXliZ6 -

CBcC&pg=PA39&lpg=PA39&dq=servqual+vs+DINESERV&source=bl&ots=AfLqg

zP9Dr&sig=TOyyG8TTzwy92Be7raVuGHRfDrg&hl=en&ei= -

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f7STZy2Io7ksQOStLCUCQ&sa=X&oi=book_result&ct=result&resnum=4&ved=0C

CwQ6AEwAw#v=onepage&q=servqual%20vs%20DINESERV&f=false

DINSERV is a 29 item questionnaire. It con tains 5 categories. The 5 variables of

the DINSERV model are:

1.Reliability: ability to perform the promised service dependably and accurately

2.Employee attitude: Knowledge and courtesy of employees and their abilty to

convey trust and confidence

3.Responsiveness: willingness to help customers and prvide a prompt service

4.Empathy: Caring individualized attention

5.Physical attributes of the facility : Physical facilities, equipment and appearance

of personnel.

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By having customersawnser these questionnaires allows a manager to look at

how their customers view the restaurants service quality and allow them to make

changes to parts which need to improved.

Although, have you ever been to a café or restaurant and had to fill out a

questionnaire? This is because measuring Service Quality in restaurants is a

fairly new subject in the service quality sector. Many developments in Service

Quality in restaurants has been derived or can be compared to results from

Service Quality in Hotels.

This studyalso provides insight into how important Relationship Qual ity is to a

restaurant and (see figure one shown below)

Figure One was created by Kin et al. (2006) and examines the predictors and

outcomes of relationship quality with reference to the luxury restaurant industry.

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 Figure One:

Physical Environment Communications

Food Quality Relationship Benefits

Customer Orientation Price Fairness

i) Physical Environment: This demonstrates the importance of physical

facilities for achieving the perceived level of service quality provided b y

restaurants. (Stevens et al., 1995). Tangibles such as décor, dinning

area comfort, and cleanliness, furnitures and fixtures, rest rooms and

parking areas were all shown to have impact on perceived service

quality (Garbarino and Johnson, 1999).

ii) Food Quality

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This is indicative of the taste and freshness of the food supplied and the standard

of hygiene maintained in preparing the same by the restaurants (Mattila, 2001).

Mac Laurin and Mac Laurin (2000) concluded that food quality was one of nine

important elements for theme restaurants in Singapore. It is an important factor

for developing customer satisfaction and loyalty within the restaurant industry.

iii) Customer Orientation

This component represents the knowledge about customers, courtesy and

empathy

January - April 2009 Vol. 4 Issue 3

(Fornell et al., 1996) among the dining staff and customers loyalty (Gustafsson et

al., 2005). A customer oriented dining staff will have a positive influence on

customers trust and commitment (Bore and Johnson, 2000).

iv) Communication Level

It reveals the interaction and conversation with familiar receptionists (Scanlan and

McPhail, 2000). Jeyacharan et al., (2005) suggest that relational information

processes which enable customers to communicate easily with the organization

are likely to enhance customer satisfaction. The ability of customers to

communicate with a service provider enhances co- operation and trust between

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them during the relationship building process (Pa rsons, 2002).

v) Relationship Benefits

This refers to the benefits that customers are likely to receive as a result of having

a long term relationship with a service provider (Reynolds and Beatty, 1999).

Gwrinner et al. (1998) revealed that risk reduction , friendship, personal

recognition, rapport and special treatment were all benefits of maintaining a long -

term relationship with an organization.

vi) Price Fairness

Price fairness indicates reasonable prices of the food items served in a restaurant

compared to those charged by the competitive firms which maintain the same

qualitative standards. Notably, it is the psychological factor that plays an

important role in determining consumers¶ reactions to the prevailing price (Kim et

al., 2006). Oh (2000) sugge sted that price fairness has a positive impact on a

customer¶s purchase intention. Ramaweera and Neely (2003) observed that

µperceived reasonable price¶ has a positive influence on customer retention.

You may notice that these 5 factors are very similar t o those in the DINESERV

model, this is because Relationship Quality heavily relates to DINESERV. The

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relationship the restaurant has with the customer is very important in providing a

high-level of service quality.

·hen entering a new restaurant a customer will already have a perceived quality

in what they expect the restaurant can offer. By making the customer feel

comfortable, welcome, and by providing a price they feel comfortable with is a

great way to entice new customers to your store. Staff should also be trained in

giving the same service quality to EVERY customer. New customers are just as

important (if not more important) then current customers, they are the people who

are going to spread ·ord of Mouth nearly immediately after dining.

Comparison of Article One and Two

Article One focuses on the quality of food, quality of physical environment and

quality of service in a quick casual restaurant environment. This Article mainly

focuses on new customers and how to entice and keep them.

The study compares to Article Two by providing more information some of the

main variable in the DINESERV model in realation to new customers.

The results from Article One infur how important each factor if the DINESERV

model is. Quality of food being top of th e list closely followed by physical

environment and quality of service.

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However Article One did not look into the Relationship benefits that highly effect

service quality. This may be because the relationship with the customer is hard to

keep consistent, as there are many different cultures and such a variety of people

that one kind of service may not fit the next person in line.

I feel it important for the front of house staff to be able to distinguish the difference

between customers and try to meet there expectations as best possible.

For example, a family of four who arrive for lunch should be treated differently

then a person who comes in for a takeaway coffee. This does not mean that

because the family will spend more money that they should have priority of

service. Instead its about analyzing which type of service they expect.

For the takeaway coffee customer this may be a fast service, with quality coffee

at a good price, with a barista that they can trust every morning to make quality

coffee.

For the family of four they would most likely be expecting table service, a smiling

informative waiter, something to entertain the kids and a fair priced menu.

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In conclusion both Article One and Two show similar concepts and Theories and

together show a good understanding of how to measure service quality in a

restaurant. By increasing effectiveness in the 5 variables of the DINESERV model

should allow both new and current customers to be continually happy ad for the

business owner gain a better competiti ve advantage.

Analysis of a Service in the Hospitality Industry

From the findings above I have decided to take the DINSERV concept to the

Sitting Duck Café located in the ·est Haven Marina , Auckland. The Sitting Duck

café is a quick ± casual restaurant, they sell pies, sandwiches, Panini¶s, slices

and biscuits all to eat in or takeaway. They also offer a full sit down service and

which offers a range of delicious seafood chowders, venison sausage spaghetti

and ceaser salads to name a few which may be served with wine beer or fresh

juices.

This quick-casual restaurant is open from 7am till 4pm weekdays and 4.30 on the

weekends. This allows for the resteraunt to catch the early morning workers

around the westhaven marina to come in including suitable lunc hes for people to

take out on their yaughts.

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I devised a DINSERV model to analyze The Sitting Duck café, I also am going to

include a pre purchase evaluation questionnaire to asses what new customers

pre expectations are to the café and continue to recomm endations on what I think

would make improvements.

The DINSERV Questionnaire I have formulated is a 5 point Likert Scale. It used

the same 5 variables as shown previously (Reliability, Employee attitude,

Responsiveness, Empathy, Physical attributes of th e facility)

There will be 3 questions per variable.

The Questionnaire can be found in Appendix One. The Questionnaire was tested

on 20 people. Ten of which were new customers , 10 who had been there before.

The Likert scale was used to be able to analyze customer¶s feelings about certain

areas. The scale used in a Likert model is a bipolar scale respondents are asked

to rate the level at which they agree or disagree with a given statement. A Likert

scale is used to measure attitudes, preferences, and subje ctive reactions.

I chose The Sitting Duck Café as my establishment to do this assignment as I

regularly go there for coffee on a Sunday morning. I chose to evaluate the

business in 5 different encounters using the DINESERV model. In conjunction

with this I asked 10 current customers and 10 potential customers. I noticed that a

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lot of people walk dogs, job and cycle around this area so potential customers

were easy to find. To define a potential customer, this is; a person who has a

similar need or want and who might be willing and able to in exchange satisfy that

need or want. http://www.usingenglish.com/forum/ask-teacher/34042-who-

potential-customer.html

Also potential customers are people who have not already been a custom er so it

was interesting to analyze the difference between customer expectations and

Current Customer Evaluations. I decided to make two questinaares to cater to the

different respondents; current customers will be surveyed using the variables of

the DINESERV model, and potential customers will be evaluated using the

concepts focused towards customer pre perceptions and expectations.

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A second questionnaire was made to analyse the pre purchase expectations and
analysis of the physical environment at The Sitting Duck Café. The physical
environment is an important indicator when selecting a new resteraunt.
The questionaare and its results can be found in Appendix 3.The questionaare
was tested on 10 potentail customers who had not eaten at the Sitting Duck Café.
The Questionaare was tested using a 5 pointLikert Scale . This questionaare was
based around three concepts presented in Article one, customers are most
effected by the quality of food followed by quality of physical environment and
quality of service. This will be measured in terms of pre expectations. Find
results below:

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Results from these finding shows that customers pre perceptations and
expextations are very low. ·hen looking at the resteraunt potential customers
thought it had poor food quality, cheap prices, poor furniture quality and would¶nt
show the place off to friends. This is a big worry for the sitting duck. If current
customers feel the same they are more likely to get small individua l meals for
people who cant afford much, rather then big tables of people who like to take
there time and in term end up spending more money. ·hen relating this to the
reults from current customers you can see that the Physical Quality Attributes are
very low on both scales. This is a cause for concern and is developed more in
depth in the recommendations section of this assignment.

By linking these results to a customer value model may help The Sitting Duck
Management to work towards better results in po tential customers.
The framework below shows how to develop and deliver customer value

Choose the Value:

 Segments, positioning, marketing focus, unique value proposition
Creating the Value
 Service Quality, price, Customer Service, ·ebsite, Channel Strategy
Communicate Value
 Advertising, P.R, Selling, ·ebsite Service Encounters

Service estabishments are all about value creation, they work to provide a
specific value which is also known as a compeditive advantage, this can be
persued through many channels such as quality of food, quality of service,
physical attributes. Although, I do advise that alll

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The Findings of current customers can be viewed in Appendix 3. From these

results I have developed a table to show the major trends that the results have
shown. Results have been divided into 3 categories:
 Poor
 Average

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  Excellent

This reflects the general outcome of each variable in the DINESERV model.
Please find the table below:

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Although this is a very general reading (there would have been time and quality
constraints if a proper sized survey was developed) however, it is obvious to see
some problem areas at The Sitting Duck Café .
The one major issue this survey returned was the Physical Attributes of the café,
where presentation,layout, aroma, music and quality of equipment all had poor
results. I agree with the feedback from this. According to Article One Physical
Attributes are one of the most important factors in gaining the best customer
satisfaction. So why is The Sitting Duck still running?
You may also note that The Sitting Duck has excellent foo d quality. This is the
most important factor in creating custo mer satisfaction, therefore fight food
qualityalong with the great location , helpful and welcoming waiters provide The
Sitting Duck with a good overall service quality.

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Another main indicator of service quality is the Price. For me as a student price is
the main indicator on whether I will be a repeat customer or not . ·hether my
expectations of the overall service is high enough to feel that is it worthy to spend
my money on. Obviously everybody is not in my financial situation and therefore
my opinion maybe varied then people who are in the yaughting and boating
industry. Although after doing the DINESERV survey it seems other customers
feel the same way. It is important to note that Price was only just qualified as
poor. This may be caused from the lack of perceived quality.
This links to the concept of disconfirmation of expectations. Current customers
feel that there expectations don¶t meet what they actually received, Therefore
there maybe maybe dissatisfied customers.
Expectations represent what the customers realistically believe they will receive.
The resteraunt industry is fierce and many establishments seem to over promise
and under deliver. The Expectations -confirmation theory posits that expectations,
coupled with perceived performance, lead to post -purchase satisfaction. This
effect is mediated through positive or negative disconfirmation between
expectations and performance. If a product outperforms expectations (positive
disconfirmation) post-purchase satisfaction will result. If a product falls short of
expectations (negative disconfirmation) the consumer is likely to be dissatisfied
(Oliver, 1980; Spreng et al. 1996).
The four main constructs in the model are: expectations, perform ance,
disconfirmation, and satisfaction. Expectations reflect anticipated behavior
(Churchill and Suprenant, 1982). They are predictive, indicating expected product
attributes at some point in the future (Spreng et al. 1996). Expectations serve as
the comparison standard in ECT ± what consumers use to evaluate performance
and form a disconfirmation judgment (Halstead, 1999). Disconfirmation is
hypothesized to affect satisfaction, with positive disconfirmation leading to
satisfaction and negative disconfirma tion leading to dissatisfaction.

A major debate within the marketing literature concerns the nature of the effect of
disconfirmation on satisfaction. The root of the problem lies in the definition of
predictive expectations as the comparison standard for perceived performance. In
such case, the confirmation of negative expectations is not likely to lead to
satisfaction (Santos and Boote 2003). To overcome this problem, researchers
have proposed other comparison standards such as desires, ideals, equity, or
past product and brand experience (see reviews by Halstead, 1999; Yi 1990 and
analysis by Tse and ·ilton, 1988. Also see Spreng et al. 1996; ·oodruff et al.,
1983).
The model of the concept is presented
below:http://www.istheory.yorku.ca/ect.htm

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In Conclusion I feel that t he

   

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Q1) I get the same quality of food/beverage every time I come

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

Q2) The Sitting Duck Café is open when it is convenient for me

Strongly Agree
Agree
Neither Agree nor Disagree

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 Disagree
Strongly Disagree

Q3) The Quality of food and beverage is reasonably priced

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

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Q4) The employee was helpful

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

Q5) The employee has extensive knowledge on the menu and can provide
explanations

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

Q6) The employees are trained to a high level in their respective areas

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

 

Q7) The Employee uses incitive e.g. dog bowls, high chairs, clearing tables
Strongly Agree

Agree
Neither Agree nor Disagree

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 Disagree
Strongly Disagree

Q8) The Restaurant can cater to individual needs e.g. gluten free, dairy free,
meat free

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

Q9) The Employee completes your required service in satisfactory time

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

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Q10) I feel welcome when walking into the Resteraunt

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

Q11) I have Employees full attention when ordering

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

Q12) I trust that I will receive my correct order

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

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Q13) The Restaurant is well presented and layed out with pleasant aroma and
music

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

Q14) The Restaurant is has comfortable and quality equipment e.g. tables,
chairs, lighting, floor.

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

Q15) The Employees are well presented

Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree

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Q1) I get the same quality of food/beverage every time I come

Strongly Agree 8
Agree 2
Neither Agree nor Disagree
Disagree
Strongly Disagree

Q2) The Sitting Duck Café is open when it is convenient for me

Strongly Agree 9
Agree 1
Neither Agree nor Disagree
Disagree
Strongly Disagree

Q3) The Quality of food and beverage is reasonably priced

Strongly Agree
Agree 3
Neither Agree nor Disagree 2
Disagree 5
Strongly Disagree

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Q4) The employee was helpful

Strongly Agree 2
Agree 8
Neither Agree nor Disagree
Disagree
Strongly Disagree

Q5) The employee has extensive knowledge on the menu and can provide
explanations

Strongly Agree
Agree 3
Neither Agree nor Disagree 7
Disagree

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 Strongly Disagree

Q6) The employees are trained to a high level in their respective areas

Strongly Agree
Agree 10
Neither Agree nor Disagree
Disagree
Strongly Disagree

 

Q7) The Employee uses incitive e.g. dog bowls, high chairs, clearing tables

Strongly Agree 2
Agree 3
Neither Agree nor Disagree 5
Disagree
Strongly Disagree

Q8) The Restaurant can cater to individual needs e.g. gluten free, dairy free,
meat free

Strongly Agree
Agree 3
Neither Agree nor Disagree 4
Disagree 3
Strongly Disagree

Q9) The Employee completes your required service in satisfactory time

Strongly Agree
Agree 6
Neither Agree nor Disagree 2
Disagree 2
Strongly Disagree

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Q10) I feel welcome when walking into the Restaurant

Strongly Agree 8
Agree 2
Neither Agree nor Disagree

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 Disagree
Strongly Disagree

Q11) I have Employees full attention when ordering

Strongly Agree 6
Agree 4
Neither Agree nor Disagree
Disagree
Strongly Disagree

Q12) I trust that I will receive my correct order

Strongly Agree 2
Agree8
Neither Agree nor Disagree
Disagree
Strongly Disagree

   
    

Q13) The Restaurant is well presented and layed out with pleasant aroma and
music

Strongly Agree
Agree
Neither Agree nor Disagree 2
Disagree 2
Strongly Disagree 6

Q14) The Restaurant has comfortable and quality equipment e.g. tables, chairs,
lighting, floor.

Strongly Agree
Agree
Neither Agree nor Disagree 1
Disagree 4
Strongly Disagree 5

Q15) The Employees are well presented

Strongly Agree 1
Agree 8
Neither Agree nor Disagree 1
Disagree

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 Strongly Disagree
Y

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