Thesis Nova Evans Ace.docx

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Customers Satisfaction of the Restaurants in Tuguegarao City ___________ A Research Proposal Submitted to the Faculty of the School of Business, Accountancy and Hospitality Management __________________

In Partial fulfillment of the Requirements for the Degree Bachelor of Science in Hotel and Restaurant Management Bachelor of Science in Tourism Management ________________ by NOVALIX LEI T. TABALDO LE VONE HAIRISH F. PELAGIO JEOLVINE ACE T. CERDENOLA JOHN EVANS B. CUTARAN

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Chapter 1 THE INTRODUCTION AND REVIEW OF RELATED LITERATURE Introduction: Restaurant Industry is one of the fastest growing business in the hospitality industries.

A restaurant

prepares and serves food and beverage to their customers. They

generally

order

or

serve

food

and

For

them

to

meal.

also

offers

receive

or

a gain

take-out lot

of

customers, they must not just serve a tasty dish but also give their customers a high quality services. They need to sustain the satisfaction of their customers to make their business grow. Sustainability is the ability to be maintained at a certain rate or level. In business, it is often defined as managing the triple bottom line – a process by which companies manage their financial, social and

environmental

risk,

obligations

and

opportunities,

these three impacts are sometimes referred to as profits, people and planet. Business sustainability requires firms to adhere to the principles of sustainable development. According to

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

the

World

Council

for

Economic

Development(WCED),

sustainable development is development that “meets the needs”. So, for industrial development to be sustainable, it must address important issues at the macro level such as

economic

efficiency

(innovation,

prosperity,

productivity) and environmental accountability (climate change, land use, biodiversity). Customer satisfaction Experts have defined customer satisfaction customer’s

in

services

expectations

performance

as are

the

extent

met

through

services

2010,

330-340).

(Santouridis&Trivellas,

to

which

Satisfaction, according to Hui and Zheng (2010, 306), is what the perceived quality results in the form of an evaluative judgment of a transaction. Sellers directly come

to

know

the

customers’

needs

through

customer

satisfaction which is very significant because business strengths

and

weaknesses

can

be

evaluated

through

it.

Moreover, it helps in improving the performance of goods and services to both customers and employees. It not only gives knowledge on business strengths and weaknesses but also

attempts

to

urge

competition

School of Business, Accountancy and Hospitality Management

based

on

those

St. Paul University Philippines Tuguegarao City, Cagayan 3500

strengths

and

weaknesses.

Likewise,

it

causes

to

translate more vision into frustrating sources and areas where

progress

management

of

is

needed.

situations

or

Finally, issues

in

for need

informing of

actual

promotion, customer satisfaction assists in accommodating a relevant system (ICR 2011). The primary goal of this study is to assess the impact of factors Affecting Sustainability of Customers Satisfaction of the Restaurants’ Services in Tuguegarao City

in

terms

of

food

quality,

atmosphere and price.

School of Business, Accountancy and Hospitality Management

service

quality,

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Review of Related Literature The following studies and literature were searched and read by the researchers to provide a better understanding to the study that will be conducted. Foreign Literature According

to

Hui

and

Zheng

(2010,

306),

Satisfaction is what the perceived quality results in the form of an evaluative judgment of a transaction. Sellers directly

come

to

know

the

customers’

needs

through

customer satisfaction which is very significant because business through

strengths it.

and

Moreover,

weaknesses it

helps

can in

be

evaluated

improving

the

performance of goods and services to both customers and employees. strengths competition Likewise,

It and

not

weaknesses

based it

only

on

causes

gives but

those to

knowledge also

attempts

strengths

translate

on

and

more

business to

urge

weaknesses. vision

into

frustrating sources and areas where progress is needed. Finally, for informing management of situations or issues

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

in

need

of

actual

promotion,

customer

satisfaction

assists in accommodating a relevant system (ICR 2011). Customer

satisfaction,

according

to

Deng

et.

al

(2009, 289), is very important part of the business setup because business generates much revenue from the industry when the customer is satisfied

by the services being

provided. Customer satisfaction refers to the customer buying behaviour and the utility he obtained using the product. manner

Customer

whereby

a

satisfaction customer

functions

compares

your

in

a

single

product

with

those of 16 competitors to reach a decision. Therefore, customer’s evaluation of products and services is what customer

satisfaction

defines

in

services

are

consumer

needs

customer assessed

meeting

satisfaction, in

unsatisfied Customers,

that with

they the

sometimes,

that

customer’s are

being

quality are

more

of

or

whether not.

their Through

expectations satisfied

goods

satisfied

and in

or

are

remain

services. case

the

product performance goes beyond their expectation (Kotler 2012).

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

According

to

Zairi

(2000)

the

feeling

of

accomplishment of inner desires is called satisfaction. Customer

satisfaction

has

direct

effect

on

customer

loyalty (Mittal & Lassar, 1998). If product or service fulfils the needs and demand of

customers

he

will

become

satisfied

and

will

be

converted to loyal customer and thus will add in customer equity

of

company.

Company

profitability

is

not

only

depicted in its balance sheet but it is also measured on basis of its sound customer base and life time value that customers deliver to company. According to Lim in the year 2010: Customers final pleasure

may

atmosphere.

have

significant

affect

Bodily

environment

is

connected

useful

to

with

produce

graphic within the mind connected with customer in order to affect their own behavior. Bodily atmosphere with the dining places have the significant has an effect on for the client’s pleasure. Super, providing, routed, tunes and

different

various

other

atmospheric

components

included in this effect in customer satisfaction.

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

In

the

research

of

Ahmad

Al-Tit,

8.53

Qassim

University, entitled, “The Effect of Service and Food Quality

on

Customers

Satisfaction

and

Hence

Customer

Retention”, the findings showed that service quality and food

quality

satisfaction.

have In

a

positive

addition,

influence

service

on

quality

customer dimensions

besides customer satisfaction have a positive influence on customers’ retention. Finally, the results confirmed that customer mediates the relationship between service quality and customer retention. The small size of the sample

is

the

main

limitation

of

this

study.

The

practical implications of this study are founded on the fact that limited service restaurants in the neighborhood of

universities

should

realize

the

critical

role

of

service and food quality in satisfying their customers as an antecedent of their retention. The restaurants, as studied by Harrington et al. (2011, 437), are in need to get more understanding of customer satisfaction as to their restaurant quality they experience

to

make

sure

the

consumer

satisfaction

is

achievable or can be maximized in the long term Perceived

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

restaurant quality is always inter-related to customer satisfaction. When dining in the fast-food restaurant, consumers

expect

to

get

better-perceived

restaurant

quality. If consumers achieve good experience, they are inclined

to

get

highly

satisfied

with

perceived

restaurant quality as well as the restaurant management that exceeds or

meets their want (Harrington

et al.,

2011, 433). Regarding quality, an organization presents more features from their core brand to make a decision of post-purchase purchase.

including

Consumer

the

satisfaction

judgment is

a

for

relative

current concept

rather than an absolute one (MacDougall, Brierley, and Hill; 2003), that is, whenever a consumer need is met, or the feeling of pleasure is obtained by support from the organizations,

they

will

show

brand

attachment

and

satisfaction if the quality of services is adequately sufficient (Hussain 2013, 57). To retain good and longrun

customer

relations,

the

conception

of

customer

satisfaction comes to help businesses because customers are likely to switch to other brands in the same market when

they

are

unsatisfied

(Hussain,

School of Business, Accountancy and Hospitality Management

2013,

58).

Many

St. Paul University Philippines Tuguegarao City, Cagayan 3500

customer’s

demographics

and

attributed

have

casted

an

impact on customer satisfaction. In the study of 1Ilgaz Feray TÜVER, entitled:IN A “GREEN” Restaurants, what makes the Customers Satisfied? The Restaurant Attributes of Trip Advisor Reviewers, the main

attributes

that

created

satisfaction

in

a

green

restaurant are the food, atmosphere and the location, while food, price and the staff are the dissatisfaction creating

attributes.

However,

none

of

the

themes

are

related to sustainability. Thus, although sustainability is

important

in

today’s

business,

customers

are

not

seeking it as a restaurant attribute. Key words: Green restaurant, sustainability, restaurant attributes. Satisfaction and dissatisfaction themes that raised in this study are similar to each other. However only service quality is the theme for satisfaction, but not for dissatisfaction. This is an interesting result yet it is

an

important

attribute

which

creates

satisfaction

(Peturkova and Parsa, 2010; Koo et al, 1999; Gregory and Kim, 2004; Gupta et al., 2007; Jeong and Jang, 2011;

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Alonso et al., 2013; Kivela, 1997). Similar to that, the same result is observed in this study. However, unlike satisfaction, it is not a dissatisfaction attribute. This may be interpreted as an attribute not so necessary. Food is

another

important

factor

in

customer

satisfaction.

This result is also supported by other studies (Kivela, 1997; Heung, 2002; Weiss et al., 2004; Gregory and Kim, 2004; Perutkova, 2010; Jeung and Jang, 2011; Harrington et al, 2011; Harrington et al, 2013). In this theme, the taste of the food is the most important attribute which is also considered as important in other studies (Bhuian, 2000;

Koo

et

al,

1999;

Liu

atmosphere

is

the

second

and

most

Jang,

2009).

important

factor

The in

restaurant attributes. The ambiance, decoration, music and other attributes are grouped under this theme. The factor is also an important criterion for customers in studies

of

Heung

(2002),

Weiss

et

al.

(2004)

and,

Harrington et al. (2011). So, the study is supported by other studies as well. The place of the restaurant is another location

factor of

that

the

is

observed

restaurant

is

in the

School of Business, Accountancy and Hospitality Management

this most

study.

The

important

St. Paul University Philippines Tuguegarao City, Cagayan 3500

attribute and the scenery it has is the second and last attribute.

These

attributes

are

also

considered

as

important in Bhuian (2000), Koo et al. (1999), Gregory and Kim (2004) and, Kivela (1997). Staff, which is an important

factor

in

tourism

establishments

are

also

important in this study as well. The staff is considered as the agent of the restaurant so, the attitude of the staff towards customers is very significant. Kastamonu University Journal of faculty of Economics and Administrative Sciences- Volume 18, Issue 1, ICEBSS 2017 Special Issue 186 the customers are very important. The theme is also important for Alonso et al. (2013), Heung (2002) and, Weiss et al (2004). Price is the last but

not

least

important

factor

for

customers.

The

appropriateness of the price is the only attribute for customers. Although Liu and Jang (2009) considered it as the accurateness of the check, the price itself is an important

attribute

and

this

result

is

supported

by

Bhuian (2000), Koo et al. (1999), Jeung and Jang (2011), Harrington et al. (2011). The study is mainly based on the

attributes

which

create

School of Business, Accountancy and Hospitality Management

satisfaction

and

St. Paul University Philippines Tuguegarao City, Cagayan 3500

dissatisfaction

for

customers

in

a

green

restaurant.

However, there was no information found on being green among

any

thought

customer

that

the

comments.

green

For

this

restaurants

reason,

are

not

it

is

promoting

themselves on this subject. Yet, the restaurants are not sharing any information about their green applications on their web sites. Within the scope of green movement, it is

recommended

that

the

restaurants

should

have

differentiating strategies by creating green awareness. As an example, it would not be enough if the restaurants publish

their

green

applications

on

internet

as

the

customers use forums or travelling networks more than restaurants web pages while travelling. In this sense web sites like Trip

Advisor would

have special icons for

green certificates as they have for quality certificates. As Alpert (1971) have stated, the list of attributes is not

so

determining

as

several.

In

this

study

the

attributes that are important for customers are not the environmental sustainability principles or being green. The attributes are the food, atmosphere, place, staff, service quality and price. None of the customer comments

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

are on green applications. So, it can be said that, the green restaurants are not informing their customers about the green applications or, these applications are not important for the customers. For further studies, the attitudes

of

the

customers

on

green

applications

and

their choice to dine in a green restaurant should be investigated. employees’ green

Besides,

green

operations

not

attitudes in

a

only would

restaurant

customers’ be

but

important

are

handled

also

as

the

by

the

employees. In the study of Kye & Timothy JeonglyeolLeeentitled, Customer

Satisfaction

Australia

and

their

with

Role

as

Korean

Restaurants

Ambassadors

for

in

Tourism

marketing, the study found a positive correlation between satisfaction with local Korean food and the propensity of diners to think about visiting Korea. The results of this study can be used to enhance competitiveness and tourist marketing for Korea. The results reported here may have a broader application to provide effective managerial and marketing information to many other ethnic restaurants in Australia and beyond.

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

According to Sohyun Bae, Lisa Slevitch and Stacy Tomas

in

their

attributes

on

study,

“The

effects

satisfaction

and

of

restaurant

return

patronage

intentions: Evidence from solo diners’ experiences in the United

States”,

the

findings

showed

that

perceived

quality of food, service, and physical environment were positively

related

Satisfaction service

to

mediated

quality

solo

the

diners’

satisfaction.

relationships

components

and

between

return

three

patronage

intentions. Additionally, perceived food quality had a direct positive effect on return patronage intentions of solo

diners.

Findings

of

this

study

can

also

offer

insights into managerial decisions regarding food quality improvement, employee training, and optimal deployment of physical environment attributes. In the Article in Journal of Service Marketing “The Customer

satisfaction

in

the

restaurant

industry:

An

examination of the transaction-specific model”, Findings –

The

regression

model

suggested

that

customer

satisfaction was influenced most by responsiveness of the frontline employees, followed by price and food quality

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

(in that order). Physical design and appearance of the restaurant did not have a significant effect. Research limitations/implications satisfaction additional

better, factors

–

it or

To

may

be

seek

explain important

better

customer to

measures

look

at

of

the

constructs. For example, the measures of food quality may not have captured the complexity and variety

of this

construct. It may also be important to address the issue of why customers visit restaurants. Instead of the meal, business transactions or enjoying the cherished company of others may be more important. Under the circumstances, customer

satisfaction

factors

may

be

different.

The

results are also not generalizable as the sampled area may

have

different

requirements

from

restaurants.

Practical implications – Full service restaurants should focus

on

three

elements

–

service

quality

(responsiveness), price, and food quality (reliability) – if customer satisfaction is to be treated as a strategic variable.

Originality/value

–

The

study

tests

the

transaction-specific model and enhances the literature on restaurant service management.

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

How Quality

Food

Quality,

Effects

Price,

Customer

Ambiance

Satisfaction:

and A

Service

study

on

Nepalese Restaurants in Finland, it was analyzed that most of the respondents were happy with the services which were provided by the Nepalese restaurants to them. It

shows

that

ambiance, customer

the

service

four

main

quality

satisfaction.

All

factors,

and

food

our

four

i.e.,

quality

price, impacts

hypotheses

which

stated that 1. There is a positive impact of Food quality on

customer

satisfaction

2.

There

is

a

positive

relationship between price and customer satisfaction 3. There

is

a

positive

effect

of

ambiance

on

customer

satisfaction 4. There is a positive impact of service quality

on

hypotheses analysis, given

customer were

accepted

customers

variables,

satisfaction

who

were

All

because

were

according

satisfied

ultimately

overall experience of dining in

the

these

satisfied

proposed to from with

the he the

of the restaurant. A

restaurant is not just composed of the food or menu it is offering, it is a combination of many factors which in turns paves a way for satisfaction of the customers who

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

visit these restaurants. If even of the factor is not adequately

met,

or

poorly

implemented,

the

customers

would visit once, but will not refer it to others and themselves will not visit again. Price, food quality, service factor affects

quality

and

ambiance

which

some

restaurants

the

overall

customer

are

the

offers

most and

satisfaction

important ultimately and

dining

experience. The chosen restaurants for this research are already

established

and

renowned,

they

have

their

stability in the market and are top ranked. Though being stable, they still have to maintain their position and retain their customers and gain loyalty by making them as satisfied as possible. If customers are satisfied with the restaurant, they will be loyal to it and would come again and with positive word of mouth, refer to other people as well. According to Hence, ParasuramanZeithaml and Berry The attainment of quality in products and services had become a pivotal concern of the 1980s. While quality in tangible

goods

has

been

described

and

measured

by

marketers, quality in services was largely undefined and

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

un-researched. Hence, Parasuraman, Zeithaml, and Berry1 (1985) attempted to rectify the situation by reporting the

insights

obtained

in

an

extensive

exploratory

investigation of quality in four service businesses and by developing a model of service quality, that sought to improve the previously developed methods by developing a set of firm characteristics that could be measured by providing the first complete set of ten service quality determinants: communication,

tangibles,

reliability,

credibility,

responsiveness,

security,

competence,

courtesy, understanding/knowing the customer, and access, and thereby introduced the value of gap measurement in customer

satisfaction

and

named

that

new

measurement

device as SERVQUAL. These investigators were the first to utilize gap measurement to determine the importance of service.

An

Assessment

of

The

SERVQUAL

Dimensions,

replication and testing of the SERVQUAL battery, which measures the perceived quality of a service situation. For consumers, evaluation of a service firm often depends on evaluation of the "service encounter" or the period of time when the customer interacts directly with the firm.

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Knowledge

of

the

factors

that

influence

customer

evaluations in service encounters is therefore critical, particularly

at

a

time

when

general

perceptions

of

service quality are declining. Thereby, Bitner1 (1990) presented

a

evaluation

model that

for

understanding

synthesized

service

consumer

encounter

satisfaction,

services marketing, and attribution theories by took a comparative

approach

to

studying

service

quality

satisfaction in a Journal of Marketing, 54 (April 1990). According to Cronin Taylor (1992) investigated the conceptualization and measurement of service quality and the

relationships

satisfaction,

and

between purchase

service

quality,

intentions.

A

consumer literature

review suggested that the current operationalization of service

quality

confounds

satisfaction

and

attitude.

Hence, the authors tested (1) an alternative method of operationalizing perceived service quality and (2) the significance

of

the

relationships

between

service

quality, consumer satisfaction, and purchase intentions. The research yielded a new measurement device known as SERVPERF.

Their

empirical

study

utilized

School of Business, Accountancy and Hospitality Management

structural

St. Paul University Philippines Tuguegarao City, Cagayan 3500

equation modeling, which yielded a finding that service quality should be viewed as a determinant of customer satisfaction.

The

results

suggested

that

(1)

a

performance-based measure of service quality may be an improved

means

construct,

(2)

of

measuring

service

the

quality

is

service an

quality

antecedent

of

consumer satisfaction, (3) consumer satisfaction has a significant service

effect

quality

on

has

purchase

lesseffect

intentions, on

purchase

and

(4)

intentions

than does consumer satisfaction. According to Anderson, Fornell and Lehmann1 (1994) investigated the nature and strength of the link between customer

satisfaction

and

economic

returns,

in

the

Customer Satisfaction, Market Share, and Profitability: Findings. They discussed how expectations, quality, and price

should

customer

affect

customer

satisfaction,

in

satisfaction turn,

should

and

why

affect

profitability; these results in a set of hypotheses that are tested using a national customer satisfaction index and traditional accounting measures of economic returns, such as return on investment. The findings supported a

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

positive impact of quality on customer satisfaction, and, in

turn,

economic

profitability. benefits

of

The

authors

increasing

demonstrated

customer

the

satisfaction

using both an empirical forecast and a new analytical model. In addition, they discussed why increasing market share actually might lead to lower customer satisfaction and

provided

hypothesis.

preliminary

Finally,

they

empirical emerged

support with

two

for

this

findings:

First, the market's expectations of the quality overall satisfaction

with

the

firm;

and

second,

these

expectations are largely rational, albeit with a small adaptive

component.

Furthermore,

these

investigators

revealed that customer satisfaction is considered to be based upon value; there-fore it is closely related to price, unlike service quality

that is not related to

price. 1 Anderson, Eugene W., ClaesFornell, and Donald R. Lehmann,

"Customer

Profitability:

Satisfaction,

Findings

from

Market

Sweden,"

Share

and

Journal

of

Marketing, 58 (July 1994), 53-66. According article

to

exemplified

Ennew the

and then

Binks1 recent

School of Business, Accountancy and Hospitality Management

(1996)

in

their

developments

in

St. Paul University Philippines Tuguegarao City, Cagayan 3500

relationship marketing that had focused attention on the beneficial effects of customer retention, by exploring the

relationship

between

service

quality

customer

relationships and customer loyalty and retention using evidence

from

the

UK

banking

sector

and

its

small

business customers. The notion of building relationships and

delivering

loyalty

was

quality

perhaps

service

of

in

order

particular

to

encourage

importance

in

the

service sector where it was often argued that customer attraction costs are significantly higher than retention costs.

Central

to

the

idea

of

investment

in

the

development of service quality and customer relationships was

the

belief

that

such

investments

had

enhanced

loyalty, retention and profitability. Empirical evidence on

the

extent

to

which

such

links

existed

was

still

partial According

to

Fontana

argued

that

financial

institutions are not responding to what he felt as a looming sea change in consumer behavior. The investigator quoted that "we're living in a society where people have everything,

and

"multi-optional"

society

School of Business, Accountancy and Hospitality Management

that

Fontana

St. Paul University Philippines Tuguegarao City, Cagayan 3500

talked about was the product of waning quality of life. He

believed

British

that

Journal

younger

of

consumers-children

Management,

7.3

of

(1996).

2

Baby Mario

Fontana, Consumer Behavior Points to a Multi-Optional. Society´ Future Banker, 2/2, Boomers, specifically-will abandon

what

he

termed

the

superficial

aspects

of

society, returning to a much richer quality of life. These new motivations will have a significant impact on how a person manages his or her financial affairs. It is these consumers that he contends are looking for a multioptional financial world, one where customers are not serviced based on their assets, but on their individual preferences and behavior patterns. According to Fontana, the

implications

suggested greatly customer

that by

of

such

change

financial

offering

service:

three highly

in

consumer

institutions

could

behavior profit

interconnected

layers

of

personalized,

one-to-one

relationship service; performance-oriented service; and self-service, meant for "deal hounds". To be successful, financial institutions must adopt a business model that allows customers to participate in the layer that best

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

suits

their

lifestyle.

Pricing

is

critical;

differentiation will come from services, and the focus should

be

incentives

on

deepening

and

loyalty

the

relationship

programs.

Oppewal

through

and

Vriens1

(2000) sought to bridge the lack of empirical data by establishing service quality and customer satisfaction relationships utilizing. According investigated

to

whether

disconfirmation satisfaction effect

of

expectation

Churchill

as

as

was

it

an

was

commonly

perceived

Suprenant1

necessary

intervening

disconfirmation and

and

variable

argued,

was

to

or

adequately

performance.

(1982) include

affecting

whether

the

captured

Further,

by

they

modeled the process for two types of products, a durable and a nondurable good, using experimental procedures in which three levels of expectations and three levels of performance

are

manipulated

for

each

product

in

a

factorial design. Each subject's perceived expectations, performance

evaluations,

disconfirmation,

and

satisfaction are subsequently measured by using multiple measures for each construct. The results suggested the

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

effects

are

nondurable

different good,

for

the

The

different

important

disconfirmation expectations

two

products.

relationships

hypothesized. in

the

results

the

respects.

experience

affected

for

are

the

typically

durable First,

nor

subjects'

as

For

good

are

neither

the

subjects'

initial

satisfaction

with

it.

Rather, their satisfaction was determined solely by the performance of the durable good. Expectations did combine with performance to affect disconfirmation, though the magnitude

of

the

disconfirmation

experience

did

not

translate into an impact on satisfaction. Finally, the direct performance-satisfaction link accounts for most of the variation in satisfaction. It is worthwhile to denote that

the

critics

acknowledge

its

of

these

usefulness

investigators in

providing

on a

SERVQUAL

reasonably

reliable device for customer satisfaction measurements. According to Cronin, Brady and Hult1 (2000) aimed at both

synthesizing

conceptualize

the

and

building

effects

of

on

the

quality,

efforts

to

satisfaction,

empirical assessment of a model of service encounters that

simultaneously

considered

the

School of Business, Accountancy and Hospitality Management

direct

effects

of

St. Paul University Philippines Tuguegarao City, Cagayan 3500

these

variables

constructed theory

at

on

on

behavioral

recent

their

time

intentions.

advances and

in

The

services

assessed

the

study

marketing

relationships

between the identified constructs across multiple service industries.

Several

competing

theories

are

also

considered and compared to the research model. A number of notable findings are reported including the empirical verification

that

service

quality,

service

value,

and

satisfaction may all be directly related to behavioral intentions when all of these variables are considered collectively. indirect

The

effects

constructs

results

further

suggested

of

service

quality

enhanced

the

their

impact

on

that and

the

value

behavioral

intentions. The service management literature argues that customer

satisfaction

International

Journal

is of

the

Service

result Industry

of

a

The

Management,

(1996). Customer loyalty is a biased behavioural response, expressed over time, by some decision making unit with respect to one store out of a set of discount retail stores, which is a function of psychological decision-

School of Business, Accountancy and Hospitality Management

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making

and

commitment

evaluative (Jacoby

Walker, 2001).

processes

and

Chestnut,

Peppers, (2009),

company wanting to increase focus

on

whatever

resulting

tactics

1978;

in

store

Knox

and

reveals that when any

customer loyalty, will

in

fact

need to

increase

the

amount of repurchase behaviour without being limited to, improving brand preference, product quality, or customer satisfaction. When performance of any organization meets or exceeds the expectation, customers will be satisfied and they are likely to do repurchase and recommend the product

to

others.

Accordingly,

Engel

et

al.,

(1990)

satisfaction is defined as the outcome of the subjective evaluation that the chosen alternative meets or exceeds expectations. satisfaction

Kotler et al., (2013), defined customer as

a

person’s

disappointment expectation. products (1998)

cited

by

Esmaeili,

are

the customers compatible

of

pressure

or

That result from comparing a

perceived performance

argues that customer where

feeling

or outcome to

Manesh

&

satisfaction as think

with their

that the

Golshan, a state

of

(2013) mind

product features

personal

School of Business, Accountancy and Hospitality Management

the Juran

expectations.

St. Paul University Philippines Tuguegarao City, Cagayan 3500

According to them if expectation, matches

the

the performance falls

customer

the expectation,

dissatisfied the customer

short of

and is

if

it

satisfied.

If it exceeds the expectation, the customer is delighted. Gronholdtetal, (2000), defined customer satisfaction as “perception services”.

of

customers‟

Customer

towards

satisfaction

is

products measured

as

or "the

number of customers, or percentage of total customers, which reported an experience with a firm, its products, or its services exceed specified satisfaction goals."

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Conceptual Framework of the Study This chapter is divided into 3 concepts:

customer’s

satisfaction and customer loyalty. Thus, the relationship of customers’ satisfaction product, price and service has been explored in this chapter. 1.1

Customers satisfaction Customers

business.

satisfaction

There

are

at

became

important

in

least

two

different

(2)

every

conceptualizations of customer, first is the transactionthis provides the service counter where the server and the customer transact. Second is the cumulative- this is the

over-all

customer

satisfaction

through-out

the

service of a business. This motivates the business to maintain awareness

high of

level the

of

standards

customer’s

in

expectation

their

service,

and

improving

their product. However, the satisfaction of customer is recognized after the service or product are being use or eaten. The high rate of customer’s satisfaction is a good sign that a business is in a good condition, it gives

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many

benefits

to

the

organization.

It

increased

the

loyalty of the customer, higher rate of sale, lower the rate of competitors. 1.2

Customers loyalty

This is one of the most important in a business. Loyalty will increase when the customers are satisfied with the service and the product. The loyalty is the hardest to gain. It takes a lot of time and effort to gain the loyalty of the customers. But then the high rate of

customer’s

loyalty

gives

a

good

effect

in

the

business. It lowers the transaction cost, charge higher price, higher demand and lastly higher sales.

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Research Framework This part is about the research paradigm. A proposed study

with

three

components:

the

input,

process

and

output. INPUT

PROCESS

OUTPUT

Profile of the participants 1. Age 2. Sex 3. Civil Status Level of satisfaction on services of restaurants in Tuguegarao City in terms of: 

Food Quality



Service Quality



Place and Ambiance



Price

Assessment on Customers Satisfaction of the Restaurants Services in Tuguegarao City

FEEDBACK School of Business, Accountancy and Hospitality Management

Customers Satisfaction on the Services of the Restaurants in the Tuguegarao City.

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Figure 1. Research Paradigm As appears in the Framework, this study used the profile

of

the

participants

and

services

of

the

Restaurant’s in Tuguegarao City to Start-up the study. Customer Satisfaction is a key element which shows the status

of

Business

improvement

of

different

organizations. Through this, researchers will be able to know

about

the

strength,

weakness,

threats

and

opportunities of the restaurant’s in the Tuguegaroa City STATEMENT OF THE PROBLEM This

study

sustainability

attempts of

to

customers’

assess

the

satisfaction

affecting of

the

restaurants’ services in Tuguegarao City. Specifically, it seeks to answer the following problems: 1. What is the profile of the participants in terms of: 1.1 Age 1.2 Sex 1.3 Civil Status

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2. What is the assessment of the participants on the services of restaurant’s in Tuguegarao City in terms of: 2.1 food quality 2.2 service quality 2.3 ambiance 2.4 price 3. Is there a significant difference between on level of ‘Customers

Satisfaction

Tuguegarao

City’

when

on

Restaurant

grouped

Services

according

to

in

profile

variables? 4. What are the problems encountered in the services of the restaurants in Tuguegarao City? 5. What are the suggestions and recommendation of the participants

in

the

services

of

the

restaurants

in

Tuguegarao City? Hypothesis The hypothesis of the study is developed, there is significant

positive

relationship

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between

customer

St. Paul University Philippines Tuguegarao City, Cagayan 3500

loyalty

and

customer

satisfaction.

People

their

unfortunate experiences with particular organizations. Significant of the Study The result of this study will benefit the following group sector and individuals. Customers. knowledgeable

on

The

study

the

helps

services

of

the

customers

the

to

be

Restaurants

in

Tuguegarao City. Business Owners. The study will help the business owners to be knowledgeable on what they are lacking and what customers wants in their Service. Researchers. The conduct of the study and its result will be beneficial to the researchers in realizing and expanding their awareness on the services of restaurants in Tuguegarao City.

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Scope and Limitation The study was conducted from February-March 2019 to 100

random

people

from

Tuguegarao

City

who

had

experienced Restaurant services in Tuguegarao City. Who will benefit the study? The customer and other companies around the city. Definition of Terms To provide a better understanding of the problem, the following were defined within the

context

of the

study. Ambiance. The character and atmosphere of a place. Customer. A person or organization that buys goods or services from a store or business. Customer Service. It is the provision of service to customers before, during and after a purchase. Food Quality. Is characteristics of food that is acceptable to consumers. This includes external factors as appearance.

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Place. a building or locality used for a special purpose Price. The amount of money expected, required, or given in payment for something. Restaurant. Business establishment where meals or refreshments may be purchased Quality.

The

standard

of

something

as

measured

against other things of a similar kind, The degree of excellence of something. Satisfaction. It is the fulfillment of one’s wishes, expectations or needs or the pleasure that derived from this.

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Chapter II METHODS AND PROCEDURE The chapter presents the Methods and Procedure that will be used in conducting the study. Research Design The descriptive correlational method design will be used to assess the factors affecting sustainability of customers’ satisfaction of the restaurants’ services in Tuguegarao City. A survey questionnaire also be employed to gather data to determine the extent of the factors. Research Participants The participants to this study are 100 random people who experienced restaurant services in Tuguegarao City. Table 1 Frequency

and

Percentage

distribution

Research Participants

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of

the

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Age Valid

sex

status

100

100

100

0

0

0

N Missing

Sample and Sampling Techniques The participants of this study will be identified using random sampling. Research Instruments The instruments which are used in gathering data is questionnaire. The questionnaire will consist of: Part I. Profile

of

the

Participants;

Part

II.

Participant’s

Satisfaction on the services in restaurants in Tuguegarao City in terms of Food quality, Service Quality, Ambiance and place and Price; Part III. Problems encountered by the participants and Suggestions and recommendation to the services.

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Data Analysis The data will be encoded and organized using the MS Excel and it will be analyzed using SPSS. Though, the following methods will be used to calculate the data: 1. Percentage and Frequency counts will be utilized to present the profile of the participants 2. Weighted

mean

will

be

used

to

present

the

evaluation of the participants regarding the Food quality, Service quality, place and price. The data needed

for this study

will be gathered

using a survey questionnaire. The 4- point Likert survey questionnaire will be composed of the following scale: Numerical Value

Descriptive Scale

4

Very much satisfied

3

Very satisfied

2

Satisfied

1

Not satisfied

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St. Paul University Philippines Tuguegarao City, Cagayan 3500

CHAPTER 3 RESULT AND DISCUSSION The chapter presents the analysis and interpretation of data gathered through questionnaires. Data that gathered were organized through tables and treated

with

the

corresponding

statistical

tools

necessary The

following

table

below

presents

the

frequency

counts and percentage distribution of the respondent’s profile and views on the different aspects of the study. Table one (1) frequency and percentage distribution of respondents when group according to age. Age

Frequency

Valid

Valid

Cumulative

percent

percent

Percent

1.00

43

43.0

43.0

43.0

2.00

19

19.0

19.0

62.0

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St. Paul University Philippines Tuguegarao City, Cagayan 3500

The

3.00

17

17.0

17.0

79.0

4.00

14

14.0

14.0

93.0

5.00

7

7.0

7.0

100.0

Total

100

100.0

100.0

tables

present

the

frequency

count

and

percentage distribution of the participants when group according to age. It shows that 43% are age 18-22, 19% are age 22-28, 17% are age 28-32, 14% are age 32-40 and 7% are age 40 and above. Data implies that majority of the respondents are age 18-22. Table two (2) frequency and percentage distribution of respondents when group according to gender. SEX Frequency

Valid

1.00

43

Percent

43.0

Valid

Cumulative

percent

percent

43.0

43.0

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

2.00

57

57.0

57.0

Total

100

100.0

100.0

The

tables

present

the

100.0

frequency

count

and

percentage distribution of the participants when group according

to

sex.

It

is

shows

that

43%

of

the

participants are female and 57% of the participants are male. The data implies that majority of the respondents are male. Table

three

(3)

frequency

and

percentage

distribution of respondents when group according to civil status. Civil status

Frequency

Valid

Valid

Cumulative

percent

percent

Percent

1.00

66

66.0

66.0

66.0

2.00

33

33.0

33.0

33.0

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St. Paul University Philippines Tuguegarao City, Cagayan 3500

3.

1

1.0

1.0

Total

100

100.0

100.0

The

tables

present

the

100.0

frequency

count

and

percentage distribution of the participants when group according

to

civil

status.

It

shows

that

66%

of

the

participants are single and 33% of the participants are married and 1% of the participants is not identified. The data show that majority of the participants are single. 2.1 Table

four

(4)

Weighted

Mean

and

Qualitative

Description of the participants ‘Customers Satisfaction of the Restaurants in Tuguegarao City’ in terms of Food Quality.

ITEM How

do

you

WEIGHTED MEAN rate

the suitability of

2.87

the food provided?

School of Business, Accountancy and Hospitality Management

QUALITATIVE DESCRIPTION

Satisfied

St. Paul University Philippines Tuguegarao City, Cagayan 3500

The

food

served

was

hot

2.85

and

Satisfied

fresh The

quality

2.84

of

Satisfied

food was excellent The food was very tasty

2.85

and

Satisfied

flavorful. 2.8525

Total

The table shown above shows that the participants were satisfied on the food quality with overall mean of 2.85 2.2 Table

five

(5)

Weighted

Mean

and

Qualitative

Description of the participants ‘Customers Satisfaction of

the

Restaurants

in

Tuguegarao

City’

in

terms

service quality. ITEM

WEIGHTED MEAN

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QUALITATIVE

of

St. Paul University Philippines Tuguegarao City, Cagayan 3500

DESCRIPTION The server was 2.636364 able to answer

Satisfied

all the questions The server was friendly and

2.81 Satisfied

patient when taking our order The server coordinated the

3.01 Very Satisfied

timing of the courses perfectly Total

2.821667

SATISFIED

The table shown above shows that the participants are satisfied on the service quality with overall mean of 2.82.

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St. Paul University Philippines Tuguegarao City, Cagayan 3500

2.3 Table

six

(6)

Weighted

Mean

and

Qualitative

Description of the participants ‘Customers Satisfaction of

the

Restaurants

in

Tuguegarao

City’

in

terms

Ambiance and Place. QUALITATIVE ITEM

WEIGHTED MEAN DESCRIPTION

The ambiance was good

The ambiance is

2.81 Satisfied

2.7 Satisfied

relaxing The place was

2.82 Satisfied

clean and neat The place is well

2.8 Satisfied

organized

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of

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Comfort room is Satisfied

2.55

clean

2.736

The

table

above

shows

that

SATISFIED

the

participants

are

satisfied on the ambiance and place with overall mean of 2.73. 2.4 Table

seven

(7)

Weighted

Mean

and

Qualitative

Description of the participants ‘Customers Satisfaction of the Restaurants in Tuguegarao City’ in terms of price. QUALITATIVE ITEM

WEIGHTED MEAN DESCRIPTION

The price is

2.75 Satisfied

affordable The price is value 2.77 for price paid is

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Satisfied

St. Paul University Philippines Tuguegarao City, Cagayan 3500

excellent 2.76

The

table

above

shows

that

SATISFIED

the

participants

are

satisfied on the pricing with overall mean of 2.76. 3. 3.1 Table eight (8) Weighted Mean on the the Significant difference of the participants ‘Customers Satisfaction of the

Restaurants

in

Tuguegarao

City’

when

grouped

according to Sex. Variable

Gender

Mean

Qualitative Description

Food Quality

Service

Male

2.87

Satisfied

Female

2.82

Satisfied

Male

2.75

Satisfied

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Quality Ambiance Place

Price

Female

2.91

Satisfied

2.74

Satisfied

Feamle

2.73

Satisfied

Male

2.75

Satisfied

Female

2.76

Satisfied

and Male

Table 8 shows that there Is no significant difference on the participants ‘Customers Satisfaction of the Restaurants in Tuguegarao City’ when group according to Sex. 3.2 Table nine (9) Weighted Mean on the the Significant difference of the participants ‘Customers Satisfaction of the

Restaurants

in

Tuguegarao

City’

when

grouped

according to Civil Status. Variable

Gender

Mean

Qualitative Description

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Food Quality

Service Quality

Ambiance Place

Price

Male

2.62

Satisfied

Female

2.96

Satisfied

Male

2.52

Satisfied

Female

2.97

Satisfied

2.62

Satisfied

Female

2.79

Satisfied

Male

2.64

Satisfied

Female

2.86

Satisfied

and Male

Table 9 shows that there Is no significant difference on the participants ‘Customers Satisfaction of the Restaurants in Tuguegarao City’ when group according to Civil status. 3.3 Table ten (10) Weighted Mean on the the Significant difference of the participants ‘Customers Satisfaction of

School of Business, Accountancy and Hospitality Management

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the Restaurants in Tuguegarao City’ when grouped according to Age. Variable

Age

Mean

Qualitative Description

Food Quality

Service Quality

Ambiance and Place

1

3.08

Very Satisfied

2

2.67

Satisfied

3

2.63

Satisfied

4

3.80

Very Satisfied

5

2.57

Satisfied

1

2.99

Satisfied

2

2.49

Satisfied

3

2.98

Satisfied

4

2.66

Satisfied

5

2.57

Satisfied

1

2.88

Satisfied

2

2.58

Satisfied

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

price

3

2.52

Satisfied

4

2.72

Satisfied

5

2.77

Satisfied

1

2.95

Satisfied

2

2.55

Satisfied

3

2.50

Satisfied

4

2.82

Satisfied

5

2.64

Satisfied

Table 10 shows that there Is no significant difference on the participants ‘Customers Satisfaction of the Restaurants in Tuguegarao City’ when group according to Age.

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

CHAPTER 4 SUMMARY, CONCLUSION AND RECOMMENDATION This

chapter

represents

the

summary

of

findings,

conclusion and recommendation that are drawn from the results of the data gathered from the participants. Summary findings Based

on

the

results

of

the

data

gathered,

the

following findings were delivered: 1. What is the profile of the respondents in terms of: 1.1

sex Majority of the participants are male.

1.2

Age Majority

of

the

participants

are

age

years old. 1.3

Civil Status Majority of the participants are single.

School of Business, Accountancy and Hospitality Management

18-22

St. Paul University Philippines Tuguegarao City, Cagayan 3500

2. What is the assessment of the participants on the restaurants. 2.1

Food Quality

The participants are moderately satisfied with the food quality of the restaurants in the Tuguegarao City with overall mean of 2.85

2.2

Service Quality

The participants are moderately satisfied with the service quality of the restaurants in the Tuguegarao city with overall mean of 2.82

2.3

Place and ambiance

The Participants are moderately satisfied with the Place and ambiance of the restaurants in the Tuguegarao City with overall mean of 2.73

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

2.4 The

Price

participants

are

moderately

price of the restaurants in the

satisfied

with

the

Tuguegarao City with

overall mean off 2.76 3. Significant

difference

in

the

assessment

of

the

participants on the services of the restaurants in the Tuguegarao city. 3.1 There

Sex is

no

significant

difference

on

the

participants ‘Customers Satisfaction of the Restaurants in Tuguegarao City’ when grouped according to sex. 3.2 There

Age is

no

significant

difference

on

the

participant assessment on ‘Customers Satisfaction of the Restaurants in Tuguegarao City’, however it is shown that Age 18-21 are more satisfied with the services of the restaurants in Tuguegarao City.

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St. Paul University Philippines Tuguegarao City, Cagayan 3500

3.3

Civil Status

There is no significant difference on the participant assessment on ‘Customers Satisfaction in the Restaurant in

Tuguegarao

City’

when

grouped

according

to

civil

status. 4. What

are

the

problems

that

the

participants

encountered with the service of the restuarants in the Tuguegarao City. Data showed that participants are Moderately satisfied with the services in terms of food quality, ambiance and place, service quality and price. However, participants had

encountered

problems

during

their

restaurants such as: 

Place is slightly dirty



Comfort room are dirty



Poor sanitation



Service is slow



The food was served late

School of Business, Accountancy and Hospitality Management

stay

in

the

St. Paul University Philippines Tuguegarao City, Cagayan 3500



Server is not attentive



Food was served cold



The price is expensive



The server is not approachable



Noisy place

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St. Paul University Philippines Tuguegarao City, Cagayan 3500

Conclusion Bases on the findings of the study, the following conclusion were derived: Participants are represented by male, most of them are single

and

age

18-21

yrs

old.

Majority

participants revealed that; 1. Food Quality 

The food was served on hot



The quality of food was good



The taste of food was great



The presentation of food was good

2. Service Quality 

The server was approachable



The service smooth



The server is hospitable

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of

the

St. Paul University Philippines Tuguegarao City, Cagayan 3500

3. Ambiance and Place 

The place was clean



The place is well organized

4. Price 

The price is affordable

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Recommendations With the findings and conclusions drawn, the following recommendations and suggestions are necessary: 

The management should check the cleanliness of the area/ place



The server must be attentive



Owner must train their servers



Establishments should maintain the quality of the food and service



Server must be neat and presentable



Cooked must need to checked the food before serving



The management must do a survey every month

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

References: A. INTERNET Ahmad Al-Tit, 8.53 Qassim University, “The Effect of Service and Food Quality on Customers Satisfaction and Hence

Customer

Retention”(Downloaded:

google.com.ph/search?q=sample+on+sustainability+of+custom ers+satisfaction+of+the+restaurants+services&rls=t(CHBD_e nPH744PH744…), Asian Social Science; vol. 11, No. 23, 2015,

ISSN

1911-2017,

ISSN

1911-2025,

published

by

Canadian Center of Science and Education Syed

Andaleeb,

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School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

https://www.theseus.fi/bitstream/handle/10024/142491/Cust omer%20Satisfaction%20in%20Restaurant%20Service.pdf?seque nce=1 Kotler, Management.

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St. Paul University Philippines Tuguegarao City, Cagayan 3500

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School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

Appendix A QUESTIONNAIRE I.

Profile of the respondents

Age Sex Civil Status ____ 18-22

____Female

____Single ____22-28

_____Male

_____Married

____28-32 _____32-40 _____ others

II.

Rate your satisfaction base from your dining experience. 4 will be the highest and 1 is the lowest.

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

FOOD QUALITY

4

3

2

1

4

3

2

1

How do you rate the suitability of the food provided? The food was serve hot and fresh The quality of food was excellent

The food was very tasty and flavourful

SERVICE QUALITY The server was able to answer all the questions The server was friendly and patient when taking our order The server coordinated the timing of the coursesperfectly

School of Business, Accountancy and Hospitality Management

St. Paul University Philippines Tuguegarao City, Cagayan 3500

AMBIANCE AND PLACE

4

3

2

1

The ambiance was good

The ambiance is relaxing The place was clean and neat The place is well organized Comfort room is clean

PRICE The price is affordable The price is value for price paid is excellent

School of Business, Accountancy and Hospitality Management

4

3

2

1

St. Paul University Philippines Tuguegarao City, Cagayan 3500

III. What are the problems you have encountered with the services? _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ __________________

What are the recommendations and suggestions you would like to give? _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ __________________

School of Business, Accountancy and Hospitality Management