2nd World Conference on Islamic Thought and Civilization

18 - 19th August 2014, Casuarina@Meru, Ipoh, Perak, Malaysia

Printed ISBN: 879-967-5480-10-2
th

Factors Affecting Customers Experience in Local Fast Food Restaurant

Azila, J. (Corresponding author) 1
Suraya, M. and Siti Zamanira, M.Z. 1
1
Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan
Karung Berkunci 36,Pengkalan Chepa
16100 kota Bharu Kelantan
Tel: +6010-3667172 E-mail: azila.j@umk.edu.my;
Tel: +6019-3576065 E-mail: suraya.m@umk.edu.my;
Tel: +6014-8443018 E-mail: zamanira@umk.edu.my
M. N. Ikhsan, M. Sefian 2
Faculty of Management and Information Technology,
Sultan Azlan Shah Islamic University College (KUISAS),
Bukit Chandan, 33000 Kuala Kangsar, Perak, Malaysia
Tel No.: +6017-2352963 Email: nurikhsan2002@yahoo.com
2

Abstract
Fastest growing number of fast food franchises in Malaysia become major threat for local fast
food to sustain in their business. A case study was conducted to explored factors affecting
customers experience towards local fast food restaurant in Malaysia. The purpose is to
investigate the most important factors that could create positive experience and to identify the
elements that influence the customers to go to the restaurant. In this paper, data was collected
quantitatively where convenience sampling method was specifically obtained through
questionnaires on 364 respondents who dine in at two restaurant outlets. Multiple Regression and
Pearson Correlation was applied to analyze four factors, which are food quality, service quality,
atmospheric quality, and perceived value that may influence the positive customers experience.
The results identify that the customers have passion to revisiting these two outlets due to the food
quality, service quality and perceived value offered by them. Perceived value shows the highest
standardized coefficient level of 0.550 becomes a key driver for creating positive experience
toward this restaurant. This study offers the restaurant to increase the understanding on consumer
values among their actual and potential customers. All result of this paper was used Predictive
Analytics Software PASW version 18.0.
Keywords: Fast Food Restaurant, Customers Experience, Perceived Value
Introduction
Fast food is one of the worlds fastest emergent food categories (Anita and Singh, 2007). The
acceptance of fast food is growing rapidly in the world as well as in Malaysia. This growing
phenomenon arises due to the changing of Malaysians lifestyle where we become busier and
have limited time at home. Atkins and Bowler (2001) indicate that busier consumer lifestyle and
dual-working families with children cause the main reason of people choose quick meal rather
than cook at home. Farzana et al. (2011) also agree with the statement where they specify that
the time constraints is the major factor of fast food consumptions which result from busy

2nd World Conference on Islamic Thought and Civilization

18 - 19th August 2014, Casuarina@Meru, Ipoh, Perak, Malaysia
Printed ISBN: 879-967-5480-10-2
th

lifestyle, longer working hours, beanpole family and career women. Therefore, fast food is the
perfect choice for them since it is instantly prepared and ready to eat in a limited time.
Due to this changing lifestyle, it gives an opportunity to the fast food providers to expand their
businesses. The changing patterns of Malaysians lifestyle towards fast food give diverse impact
to our healthy life. At a moment, Malaysia facing with serious obesity problems where heavy
fast food consumptions cause serious health problems.
The introduction of organic chicken by local fast food provider offers healthy menus where the
chickens raised without using chemicals substance. The concept of Halal present by this
restaurant increase confident level of Muslim customers to dine-in at this restaurant. However,
high competition among existing and well known rivals such as Kentucky Fried Chicken (KFC)
and Mc Donald cause this restaurant are struggling to sustain their business. Due to this
competition, this restaurant realizes that to attract new customers is more costly rather than to
retain the existing one.
Therefore this study was conducted to investigate the most important factors that could create
positive experience in the restaurant and identify the elements that influence the customers to go
to the restaurant. One of local fast food chain restaurant in Malaysia was selected as a place
where this study will be conducted. This paper was organized from reviewing some previous
literatures, methodology, and result interpretations. The final part will be conclusion, limitations,
and some recommendations for future research.
Literature Review
Total Customers Experience
Customers total experience can be defined as a totally positive, engaging, enduring, and
socially fulfilling physical and emotional customer experience across all major levels of ones
consumption chain and one that is brought about by a distinct market offering that calls for active
interaction between consumers and providers. Delivering customers total experience (CTE)
goes beyond mere customer satisfaction and is a relatively new concept since satisfied customers
could still defect (Jones and Sasser, 1995). The ability to satisfy customers is energetic for a
number of reasons and avoids dissatisfied customers (Syed and Conway, 2006). In the past,
companies have primarily focused on the physical aspects of the product, while totally neglecting
the emotional and value aspects and hence, losing many customers in the long run (Nunes and
Cespedes, 2003). According to Bojanic (2007), most of the research concerning selection of a
restaurant usually is based on identification of determinant attributes. The attributes are taste
of food, competitive price, service response time, cleanliness of the fast-food restaurant, fastfood restaurant location, amenity, safety, employee courtesy, restaurant operating hours, and the
availability of healthy menus (Min and Galle, 1996; Kara et al., 1997; Tsai et al., 2007, Min and
Min, 2011).
Food Quality
Food quality is one of the most critical components of a dining experience (Namkung and Jang,
2007; Sulek and Hensley, 2004). Clark and Wood (1999) confirmed that food quality is a
primary factor influencing customer loyalty in restaurant choice. While, Susskind and Chan
(2000) persisted that from the customers perspective, food quality is a key determinant for

2nd World Conference on Islamic Thought and Civilization

18 - 19th August 2014, Casuarina@Meru, Ipoh, Perak, Malaysia
Printed ISBN: 879-967-5480-10-2
th

visiting a restaurant. Mattila (2001) considered food quality as a key predictor of customer
loyalty in casual-dining restaurants and Sulek and Hensley (2004) found that when compared
with other aspects of the restaurant, such as environmental components and service quality, food
quality is the most important element of customer satisfaction. Namkung and Jang (2007) tested
the impact of food quality on customer satisfaction and behavioral intentions and found a
positive relation between food quality and satisfaction or behavioral intentions. Kivela et al.
(2000) considered several aspects of food quality such as tastiness of food, menu variety, and
nutrition to examine the effect of excellent food on customer satisfaction and return patronage.
Darian and Tucci (2011) added that nutrition food making consumers more health over time. For
Raajpoot (2002), he used food presentation, serving size, menu design, and variety of food to
measure product quality (food quality) in the food service industry.
Service Quality
Recently, customers have been progressively aware about quality of service (Soriano, 2002).
Service quality is often viewed from two perspectives that are from the customers cognitive
evaluation of the service provided (Taylor and Baker, 1994) and a multidimensional construct
created by an evaluation of attribute performance (Parasuraman et al., 1988). Service quality is
usually defined as the customers judgment of the overall excellence or superiority of the service
(Zeithaml, 1988). Thus, it is the customers subjective evaluation formed by comparing
expectations and perceived performance (Bolton and Drew, 1991; Parasuraman et al., 1985,
1988). Based on this gap theory, Parasuraman et al. (1988) developed SERVQUAL as a
mechanism to measure service quality. SERVQUAL consists of five dimensions that are
reliability, responsiveness, empathy, assurance, and tangibles. In addition, since perceived levels
of service in restaurants are based on the relationship between customers and service providers
(Nikolich and Sparks, 1995), customers perceptions and evaluation of service quality may be
highly dependent upon the service providers performance during service delivery.
Atmospheric Quality
Previous studies have identified atmospherics as another important element of the dining
experience and reported that atmospherics influence customers emotions and expectations
regarding service and food quality (Baker et al., 1994; Reimer and Kuehn, 2005; Wall and Berry,
2007). Usually, a customer first perceives the atmospherics when he or she enters a restaurant,
which occurs before any actual services or foods are delivered. Thus, the emotions created by the
perception of the atmospherics may affect the customers reaction to the actual services and
foods in restaurants (Bitner, 1990; Zeithaml et al., 1993). In addition, Ryu et al, (2012) point out
that consumers perception of a restaurants image will return customers cumulative
consumption such as food, atmospherics, and service. That is, if a customer has a high perception
of the atmospherics, then customers expectations for service and food quality could also be
higher.
Perceived Value
The first definition indicates that perceived value is derived from a comparison between the
expected benefits of a product and the sacrifices that a consumer would have to make in order to
guarantee those benefits (Monroe and Krishnan, 1985). The results of this comparison should
affect the level of customer satisfaction. However, even though individuals in both cases make a
comparison between rewards and costs, the concepts of perceived value and satisfaction are not

2nd World Conference on Islamic Thought and Civilization

18 - 19th August 2014, Casuarina@Meru, Ipoh, Perak, Malaysia
Printed ISBN: 879-967-5480-10-2
th

synonyms. Previous studies also have concluded that brand perception can provide
understanding for food firm to enhance perceived value (Wang, 2013). Moreover, perceived
value is classified into quality and price (Dodds and Monroe, 1985). In addition, Zeithaml et al.
(1998) indicate perceived value plays an important role in consumers purchase decision
making, suggesting that behavioral intentions are consequences of perceived value. From the
various dimension of value, the most frequently apply in recent marketing literature are hedonic
and utilitarian values (Babin et al., 1994; Jones et al., 2006; Park, 2004; Voss et al., 2003).
According to Donovan and Rossiter (1982), hedonic value is related with the revisit intention
among customers through emotions and affective experience. Thus, utilitarian value means
revisit intention but through high valuable experiences in terms of efficient and economical
aspects (Swinyard, 1993).
Methodology
Before data collection took place, an interview session with operation manager was held in order
to have some customers demographic information. This session was very important for
researchers to have right respondents. The data collection is 373 respondents were selected and
only 364 questionnaires can be analyzed due some trimming process for null value obtained from
the survey process.
The questionnaires consist of six sections, which are demographic information, food quality,
service quality, atmospheric quality, perceived value, and total customers experience. In section
1, the respondents were asked about demographic information and this section was measured
using nominal scale. Section 2 (food quality) comprise of 3 dimensions; Halal, taste of food and
healthy menu. Section 3 (service quality) consists of 2 dimensions; response time and courtesy.
Section 4 (atmospheric quality) comprises of 2 dimensions; ambience and design dimension.
Section 5 (perceived value) consist of 2 dimensions; hedonic and utilitarian value.
For data collection, two restaurants outlets were selected located in the area of Sungai Petani,
Kedah. One outlet surrounded by shop lots and nearby TESCO Hypermarket, which have close
competitor, KFC. The second outlet surrounded by residential area and has no close competitors.
All data were collected from customers who dine-in at the restaurants. Several approaches were
taken in order to reach the customers such as direct contact with customer and offer them to
answer the survey. The data collection method was most like restaurant interception method that
require researcher to approach the respondents directly. Other approach also involved such as
key personnel (cashier) to distribute the questionnaires. Respondents filled out the questionnaires
given on-site and returned upon completion.
Theoretical Framework
To investigate customers experience with four independent variables, this paper has followed
previous study for each independent variable. For food quality, comprise of 3 dimensions; Halal
which adapted from previous research by Syed and Nazura (2011), taste of food and healthy
menu by Stevens et al. (1995). Service quality consist of 2 dimensions; response time and
courtesy which using the same measurement from Stevens et al., (1995). Atmospheric quality
includes 2 dimensions; ambience and design dimension were adapted from conceptual design of
Bitner 1992. Perceived value consist of 2 dimensions; hedonic and utilitarian value were adapted
from Babin et al. (1994). The propose theoretical framework as below:

2nd World Conference on Islamic Thought and Civilization

18 - 19th August 2014, Casuarina@Meru, Ipoh, Perak, Malaysia
Printed ISBN: 879-967-5480-10-2
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Total Restaurant
Quality
Food Quality

Service Quality
Customers Experience
Atmospheric Quality
Perceived Value

Figure 1: Theoretical Framework (Source: Syed and Nazura, 2011; Stevens et al., 1995; Bitner, 1992; Babin et al., 1994 )

Results and Discussion

Data were collected with respect to five demographics of the customers, i.e. gender, age (<20,
21-30, 31-40, 41-50, 51-60, >60), monthly income (< RM2000, RM2001-RM4000, RM4001RM6000, RM6001-RM8000, >RM8000), educational level (PMR/SPM, Certificate/Diploma,
Bachelor Degree, Master Degree, Others) and race (Malay, Chinese, Indian, Others). Based on
the analysis of data, it was found that 51.9 percent (n = 189) respondents were female and 48.1
percent were male (n = 175). A total of 37.6 percent (n = 137) respondents were in 21-30 years
age category which the major category of age group. In terms of monthly income, most of
respondents which is 61.5 percent (n = 224) were in < RM 2000 income category. Then, 33
percent (n = 120) were in PMR/SPM educational level category and for the race category, most
of respondents; 94 percent (n = 342) were Malay. The results for demographic factors are shown
in the table below:
Table 1: Respondents Profile
Demographic Profile
Frequencies
Gender
1. Male
175
2. Female
189

Percentage (%)
48.1
51.9

Age
1. < 20 years
2. 21 30 years
3. 31 40 years
4. 41 50 years
5. 51 60 years
6. > 60 years
Monthly Income
1. < RM2000
2. RM2001 RM4000
3. RM4001 RM6000
4. RM6001 RM8000
5. > RM8000
Education Level
1. PMR / SPM
2. Certificate / Diploma
3. Bachelor Degree
4. Master Degree
5. Others
Race
1. Malay

73
137
92
43
16
3

20.1
37.3
25.3
11.8
4.4
0.8

224
90
20
17
13

61.5
24.7
5.5
4.7
3.6

120
104
114
19
7

33
28.6
31.3
5.2
1.9

342

94

2nd World Conference on Islamic Thought and Civilization

18 - 19th August 2014, Casuarina@Meru, Ipoh, Perak, Malaysia
Printed ISBN: 879-967-5480-10-2
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2.
3.
4.

Chinese
Indian
Others

15
6
1

4.1
1.6
0.3

Pearson correlation was undertaken to examine the correlation in the research hypothesis. The
result of analysis is presented in Table 2. The hypothesis states that food quality, service quality,
atmospheric quality and perceived value are correlated with total customers experience. The
result of these analyses indicates that perceived value was very strongly positively (r = .777) and
highly significant (p = .001 level) correlation to customers total experience. Another three
factors which are food quality (r = .692), service quality (r =.619) and atmospheric quality (r =
.649) were strongly positively and highly significant (p= .001 level) correlation to customers
total experience.
Table 2: Correlations matrix of fast food restaurant
Food Quality
Food Quality

Service Quality

Atmospheric
Quality

Perceived Value

Customers
Experience

Service Quality

.678(**)

Atmospheric Quality

.762(**)

.683(**)

Perceived Value

.762(**)

.660(**)

.764(**)

Customers Experience

.692(**)

.619(**)

.649(**)

.777(**)

** Correlation is significant at the 0.01 level (2-tailed).

The result of analysis is then tested using multiple regressions analysis in Table 3 to measure the
relationship between all four independent variables (food quality, service quality, atmospheric
quality and perceived value) towards customers experience. The results show that three factors
(food quality, service quality and perceived value) have positively related towards total
customers experience and perceived value was resulted in highly significant at p < .05.
Table 3: Analysis of factors affecting customers experience in restaurant based on PASW version 18
Dependent variable: Customers Experience
Independent Variables
Coefficient
t-value
Significant
Food Quality
0.186
3.320
(.001)**
Service Quality
0.131
2.792
(.015)
Atmospheric Quality
0.004
0.078
(.865)
Perceived Value
0.552
9.948
(.000)**
Constant
0.450
R2
0.636
F
.000
** Significant p <0.05

Conclusion and Discussion

This paper examined four factors regarding total experience quality in one of local fast food
restaurants and their impacts on customers experience. Overall of this paper showed that three
factors (food quality, service quality and perceived value) have stronger impact on customers
experience. This result indicates that the concept of restaurant is acceptable by the customers.
However, perceive value is the key driver that influences positive customers experience towards
the restaurant. Furthermore, the perceived value offered by the restaurant in terms of hedonic and
utilitarian value verify that customers will revisit the restaurants due to positive mood display in

2nd World Conference on Islamic Thought and Civilization

18 - 19th August 2014, Casuarina@Meru, Ipoh, Perak, Malaysia
Printed ISBN: 879-967-5480-10-2
th

this restaurant that create positive experience of customers. This is proven by Zeithaml et al.
(1998) indicates that perceived value plays an important role in consumers purchase decision
making, suggesting that behavioral intentions are results of perceived value.
Nevertheless, this paper has some limitations where results of this paper only gathered from two
local restaurant outlets at similar demographic background of customers since it was collected at
north region, Sungai Petani, Kedah. Thus, the impacts of customers may differ at another
branches located at different region and the quality offered also different in other places. Based
on the limitation, therefore future research is suggested to explore the homegrown restaurant
from different perspectives at different locations to ensure the restaurant can capture limitations
at every outlet.
Recommendations
This paper proposes some recommendations to the restaurant such as the availability of the
products and the time consuming to get the meals. Most of customers are complaining about the
unavailability of certain meals and also longer period taken when getting the foods. Here, the
management of the restaurant must alert with those weaknesses. Regularly inventory checking
and training of the staff should be done wisely to avoid those matters. The response time should
be fast where the meal must be prepared in large volume before it served to the customers.
Furthermore, the management of the restaurant should train their front employees in term of soft
skill when communicating with the customers. Besides, the restaurant should increase some
amenities like prayer room for Muslim customers. This is very important for the customers to
revisit the restaurant at any time.
Acknowledgement
Thousands appreciation to restaurant management for given opportunities to conduct this study
at their restaurant outlets. We pray for your success in fast food industry and we hope the
restaurant have great opportunities to expand their business nationwide and worldwide.
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2nd World Conference on Islamic Thought and Civilization

18 - 19th August 2014, Casuarina@Meru, Ipoh, Perak, Malaysia
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