Influence of Service Quality on Perceived Value, Satisfaction and Customer Loyalty of Kathi Krua Thai Restaurant

Abstract

The objectives of this research were to develop and validate a causal relationship model of the influence of the service quality on perceived value, customer satisfaction and customer loyalty of Kathi Krua Thai restaurant. The model involved eight latent variables: service quality in the dimension of tangible, service quality in the dimension of reliability, service quality in the dimension of responsiveness, service quality in the dimension of assurance, service quality in the dimension of empathy, perceived value, customer satisfaction and customer loyalty. The researchers used quantitative methods which involved empirical research. The research tool was a questionnaire to collect data from 320 customers who got services from Kathi Krua Thai restaurant. The statistics used in data analysis were frequency, mean, standard deviation, and structural equation model analysis. It was found that the model was consistent with the empirical data. Goodness of fit measures were found to be: Chi-square 237.225 (df=259, p-value=0.830); Relative Chi-square (x²/df) 0.916; Goodness of Fit Index (GFI) 0.956; Adjusted Goodness of Fit Index (AGFI) 0.909; and Root Mean Square Error of Approximation (RMSEA) 0.000. It was also found that (1) Service quality in the dimension of assurance had a positive and direct influence on perceived values; (2) Service quality in the dimension of assurance had a positive and direct influence on customer loyalty; (3) Service quality in the dimension of empathy had a positive and direct influence on customer satisfaction; (4) Perceived values had a positive and direct influence on customer loyalty and (5) Customer satisfaction had a positive and direct influence on customer loyalty.