Impact of Service and Ambiance on Customer Satisfaction and Loyalty in Restaurant Industry: An Empirical Study of Pakistan

Abstract

This study demonstrates the effects of quality service and ambience on customer satisfaction and loyalty of consumer. It is further elaborated by assessing the relationship between some dependent and independent variables.Service is consumer's overall impression of relative inferiority / superiority of the organization and services or a form of attitude representing a long-run overall evaluation. The trend of Dining out is gaining popularity in Pakistan.A restaurant with ambiance, on the other hand, immerses the diner in an experience. It's not only food tastes or look that matters but the whole atmosphere in a restaurant gives customer satisfaction.Ambiance is determined by numerous factors, but two most critical factors are lighting and sound.

The source of information for this research is primary data gathered from marketing managers of different hotels and restaurants andfrom customers. Theconvenience sampling technique methodis used to analyze the data and to conclude the results. Data wascollected with the help of a questionnaire. Total of two hundreds questionnaires were given to participants and we received one hundred seventy. Ten questionnaires were rejected due to errors in completion.The Data was analyzed by using SPSS and recommendations are given to the businesses interested in the maximization of business return and customer leverage to the restaurants/prospective users who want to convert their walk in customers into loyal customers. Of the 165 respondents 56% were male and 44% female. 50% population agreed that they go out to restaurants weekly and a quite a number said daily. 42% population disagreed that they prefer only taste while visiting a restaurant and 65% said that quality service is one of the most important components of a restaurant experience. Respondents were questioned about the importance of ambience and their influences on decisions while going out. 97% of the people believed that it adds an advantage and their decision somehow isbased on it as well.