WAC Final Report - Group 1.doc

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For Office Use:
Grade

Written Analysis and Communication
Group Assignment No. 1
Business Report on
“Customer Satisfaction Study with reference to services
offered by HONEST chain in Ahmedabad”
Submitted by:-

Group No.: 1
1. Harsh Asthana

(131125)

2. Kamesh Joshi

(131128)

3. Priya Tiwari

(131142)

4. Sonal Gilitwala

(131156)

Section: A
MBA –FT (2013-2015)

Institute of Management, Nirma University
Date of Submission: 26th Dec. 2013

ACKNOWLEDGEMENT
This research paper has become possible with the help and support of everyone, including: parents,
teachers, family and friends. Especially, we dedicate our acknowledgment of gratitude toward the
following significant advisors and contributors:
First and foremost, we would like to thank Dr. A.C. Brahmbhat for his encouragement and support.
He kindly helped us with the topic and questionnaire design and offered invaluable detailed advices
on different parameters and criteria for the research.
Second, we would like to thank Dr. Sunita Guru for her help in teaching us the methods of analysis
of the data.
Third, we would like to thank Prof. Reena Shah for providing valuable advises for the title format
and the report format and other professors who have taught us importance of research and in our
masters.
Fourthly, we thank Mr. Ravi Agrawal, the owner of Honest chain in Ahmedabad. He allowed us to
take the survey of the different chains of Honest, which help us to collect the relevant data for the
restaurant.
Finally, we sincerely thank our parents, family, and friends, who provided the advice. This research
paper would not have been possible without them.

ABSTRACT
Purpose: To determine customer satisfaction with respect to services offered by Honest food chain
in Ahmedabad.
Design/Methodology/Approach: The research method used is descriptive/survey research. A
structured questionnaire was employed to gather the data and test the model. Sample involved 50
customers dining in the two outlets of Honest , one in Vastrapur and another in Bodakdev. Chisquare test, Anova, Co-relation and Regression analysis was used to test the model.
Findings: Frequency distribution of age indicated that maximum visitors at Honest outlet comprises
of customers belonging to age group 18-25 yrs. Out of those the maximum ratio was of males who
were belonging to the non-income group. The research also helped in finding that the taste of food,
ambience, order delivery time and price do play important roles for customer satisfaction. It was
also inferred that no relation exist between overall experience and order time.
Research limitations/implications: The survey was done only at two of the outlets of Honest in
Ahmedabad so it cannot be generalized. The sample of 50 respondents is too small to come to any
conclusion for the study in general.
Practical Implications: The findings will help the managers of Honest chain to efficiently utilize
their resources to create a better customer experience. Crucial attributes like taste of food,
ambience, order delivery time and price can be improved upon to get a competitive edge over the
other restaurants in this segment.
Originality: Unlike the previous studies this study links the service quality attributes like taste of
food, ambience, order delivery time and price and links it with demographic attributes like age,
gender and income levels. This study is specific to the Indian context and can be useful in research
for other fast food restaurants in India.
Keywords: restaurants, customer, quality, customer satisfaction, brand knowledge, perceived
quality, value for money, service attributes , service quality model ,taste of food, ambience, order
delivery time and price.
Paper type: Research paper

TABLE OF CONTENTS

S. No.

Particulars

Page No.

1.

INTRODUCTION

1

2.

LITERATURE REVIEW

3

3.

OBJECTIVES AND HYPOTHESIS

8

4.

RESEARCH METHODOLOGY

9

5.

RESULTS

10

6.

DISCUSSION AND CONCLUSIONS

19

7.

REFERENCES

20

8.

BIBLIOGRAPHY

21

9.

APPENDICES

22

LIST OF TABLES
S. No.

Particulars

Page No.

1.

Table: 1(a)

10

2.

Table: 1(b)

10

3.

Table: 1(c)

10

4.

Table: 2

13

5.

Table: 3

14

6.

Table: 4(a)

14

7.

Table: 4(b)

14

8.

Table: 5(a)

15

9.

Table: 5(b)

15

10.

Table: 6(a)

16

11.

Table: 6(c)

16

12.

Table: 6(e)

17

LIST OF FIGURES
S. No.

Particulars

Page No.

1.

Figure: 1(d)

11

2.

Figure: 6(b)

16

3.

Figure: 6(d)

17

4.

Figure: 6(f)

18

LIST OF VARIABLES
Serial No:

Variables name

1.

Name

2.

Age

3.

Gender

4.

Marital_status

5.

Monthly_income

6.

Visit_freq

7.

Purpose

8.

Food_served

9.

Menu_items

10.

Food_quality

11.

Order_service

12.

Restau_Ambience

13.

Food_order

14.

Employees_patient

15.

Avail_sauce_napkins

16.

Menu_board

17.

Employees_speak

18.

Employees_friendly

19.

Value_for_money

20.

Prices_competitive

21.

Food_type

22.

Queue_time

23.

Restaurant_clean

24.

Cutlery_clean

25.

Portion_size

26.

Parking_space

27.

Wait_time

28.

Overall_exprnce

29.

Recommend

30.

Parameter_imp

31.

Switch

INTRODUCTION
BACKGROUND
The research is about customer satisfaction study with respect to the services offered by Honest fast
food chain in Ahmedabad. Honest was started by three brothers as a street food kiosk during the
1970s, Honest has grown to become highly successful chain and it is one among the moderately
priced restaurants in Ahmedabad. It has spread to other cities of Gujarat in the last few years. It has
16 branches in Ahmedabad. The current situation is that Honest is famous for its food services;
hence the customer satisfaction is important for its success. It is known that perceived quality is an
important determinant of customer satisfaction. With the growth and diversification of food items
and services the study aims at identifying whether apart from food services the other variables like
ambience, prices, location, waiting time, quick service and staff management also have an impact
on the satisfaction level.

CONCEPTUAL FRAMEWORK
According to Michael Tsiros,Vikas Mittal and William T.Ross Jr (2004), customer satisfaction is a
person’s feelings of pleasure or disappointments that results from comparing a product’s perceived
performance to expectations. If the performance falls short of expectations, the customer is
dissatisfied. If it matches expectations, the customer is satisfied. If it exceeds expectations, the
customer is highly satisfied.
According to Philip Kotler (2013), Brand knowledge is the thoughts, feelings, images, experiences,
and beliefs associated with the brand. Perceived Quality is the customer’s perception of the overall
quality or superiority of product or services with respect to its intended purpose, relative to
alternatives.
(Retrieved

from

study

marketing

home

page

at

“Brand

Management”

http://www.studymarketing.org/articles/Brand_Management/What_is_Perceived_Quality?html
(accessed on 15 Nov 2013)
According to Philip Kotler (2013), Value for Money is the set of benefits over the price paid for it.
The theory says that the product service quality and customer satisfaction are intimately connected.
Higher level of quality results in higher level of customer satisfaction. Our research study will
include a complete analysis of factors directly or indirectly involved with services delivered and its
relation with customer satisfaction levels.

Page 1of
24

According to Philip Kotler (2013), service attributes include intangibility, inseparability, variability
and perishability.
According to Philip Kotler (2013), service quality Model highlights the main requirements for
delivering high service quality.
RATIONALE
Honest being such a famous food eating joint there is no professional study done specifically on its
customers. The fundamental logic behind the study in this particular area is that the management of
Honest chain may not be aware of certain factors which may affect the customer satisfaction. This
study will figure out these factors so that they may improve upon them. It will also help them to
create a point of difference from its competitors. It is important to have higher level of customer
satisfaction in order to retain customers and attract new prospects. The management will allocate
the required resources with the information obtained from the study. As a result it will help them to
increase the perceived quality and hence customer satisfaction. The service quality model
emphasizes that service outcome and measurement is dependent on type of service setting,
situation, time, need etc factors.

Page 2 of 24

LITERATURE REVIEW
According to Philip Kotler (2013), customer satisfaction is a tricky term as people perceive
different meanings out of it. A highly satisfied customer will be loyal, will spread positive word of
mouth and will indulge in repeated.
For Honest which has become one of the most popular fast food chains in Ahmedabad measuring
customer satisfaction is evident. Apart from food services other services also affect the satisfaction
of customers. The factors like waiting time outside the restaurant, hygiene, food presentation, and
ambience all contribute to the level of customer satisfaction.
Customer satisfaction is important parameter to measure the image of any restaurant. Arora and
Singer (2006) examined the factors that affect the customer intention to visit the restaurants. Their
study has considered different variables like quality of service, quality of food, dining atmosphere,
seating-order fairness, menu, location, prices, waiting time, etc. The sample and data collection was
done by selecting the sample cities and a total of 226 residents from these cities. These samples
were asked the questions regarding the frequency of their visit to the fine dining restaurants. It was
found that almost 50% of respondents said that they visited the restaurants more than once a month.
According to the study the quality of food, dining atmosphere and seating-order fairness are the
significant variables. In order to collect the information the questionnaire was designed to measure
the attitude to towards dinning before and after visiting the restaurant. The respondents were asked
to answer the questions regarding the food-quality, ambience, location and service.
The findings of the study suggest that food-quality and service level are most significant factors in
measuring the satisfaction level. In addition to that it suggests that overall value of the customer can
be increased by improving the performance and reducing the prices of the services provided. The
increase in the price will have negative effect; hence they should be set at competitive level.
Most marketers fail to differentiate between highly satisfied and non-highly satisfied customers.
Young and Jang (2008) examined the quality parameters that significantly distinguish highly
satisfied diners from non-highly satisfied diners. They collected data from the four middle-high
level restaurants of USA. The effects of appealing food presentation, tasty food, spatial seating
arrangement, fascinating interior design, pleasing background music, reliable service, responsive
service, and competent employees were examined. These factors proved to be important attributes
in contributing to the high level of satisfaction among diners. In addition the study defined the food
quality as consisting of presentation, healthy options, taste, freshness, temperature. A significant
difference between groups was found only in age the people in age group above 50 yrs were among
the highly satisfied customers while those who were in the middle aged were among the nonsatisfied customers.
Page 3 of 24

The results also indicated that appealing presentation and great taste were among the critical
qualities in determining the highly satisfied customers.
Thus, according to Young and Jang (2008), the effects of appealing food presentation, tasty food,
spatial seating arrangement, fascinating interior design, pleasing background music, reliable
service, responsive service, and competent employees were important attributes in contributing to
the high levels of the customer satisfaction. However, since the study was confined to USA one
cannot be sure if the implications will be the same in Indian middle-high level restaurants.
The customer satisfaction is important concept when it comes to service industry, for example the
hospitality industry. The research by Abraham and Taylor (1999) tells that customer satisfaction is
the leading criterion for determining the quality that is actually delivered to customers. Satisfaction
reinforces positive attitude towards the brand, leading to the greater likelihood that the same
restaurant will be visited by customer again. The nine theories of customer satisfaction are used to
determine various component of customer satisfaction. The satisfaction with a hospitality
experience is the sum total of satisfaction with individual elements and the service quality and is
measured by subtracting customer’s perception score from customer expectation score. The
parameters like availability of parking, employee appearance are used by them to find various result
related to customer satisfaction. This paper helps to formulate the questionnaires for the research
surveys and recommends various methods to increase the rate of accurate completion of surveys.
Factor analysis was used to measure the customer satisfaction measurement which serves dual role
of providing information and enabling communication with customer.
The similar research for customer satisfaction is done by Andaleeb and Conway (2006) examined
that the customer satisfaction in full service industry and realized that it is most influenced by the
responsiveness of the frontend employer in the restaurant. This is followed by the food quality and
pricing. The customer satisfaction is the heart of marketing because a dissatisfied customer may
resort to negative word of mouth and thus driving away the potential customers from restaurants.
Random sampling was used to generate 600 respondents and data was collected over telephone. The
strong relation between satisfaction and loyalty also highlight the need to satisfy the customer. The
physical design of the restaurant helps to attracts customers. The responsiveness and the quality of
the food in restaurant help them to become a long term customer. The pricing also plays a major
part as customers usually compares price to quality. Customers are likely to expect high quality
with high price. A total of 85 questions were framed in the study and the cumulative variation by
factor analysis was 72.4%. The responsiveness came with the highest Eigen value of 7.29.
Responsiveness include employees are prompt, courteous, knowledgeable, neat in appearance and
understand customer needs.

The findings of this study prompted to experiment the similar
Page 4 of 24

methodology in Ahmedabad. It has given a framework to design the questionnaire for the current
study.
When it comes to investigate the causal relationship between perceived trust, perceived value,
customer satisfaction and corporate reputation to understand how customer perceptions evolve
customer loyalty in the restaurant sector, most managers fail. Chang (2013) tried to establish the
causal relationship between these variables and tried to identify which variables affect the customer
loyalty the most. He collected data from two different chain restaurants by surveying 529
respondents in Taiwan. The responses were then used to create relationships among the various
variables in order to study the customer loyalty. The results reflected that corporate reputation
creates loyalty through perceived trust and perceived value and the perceived trust affects the
customer loyalty more than the perceived value. The study develops S-O-R model (Stimulusorganism-response) in which the stimulus is corporate reputation, organism are perceived trust and
perceived value and response is the loyalty. The sample collected comprised of major portion of the
female respondents. The content validity was ensured by three hospitality experts. The findings
suggest that companies should focus more on delivering superior service at right price and on
treating the customers fairly rather than focusing on the competitor’s price. The limitation of
research is that these findings are based upon only two of the restaurants. Also there are other
factors which determine the relationship between corporate reputation and customer loyalty. This
research also doesn’t differentiate between the types of customers such more frequent customers
and the less frequent customers.
Customer-dining value is one of the selection criteria for the restaurants. The study by Ha and Jang
(2013) is to identify consumer-dining values for each restaurant segment using a mean end
approach and suggests information for restaurants operators to develop different market strategies
for each segment. This helped in distinguishing restaurants from other competitors. The mean-chain
study method is applied across three restaurants for one-on-one interview procedure. A total of 71
responded were interviewed for approximately 20 minutes to come to a conclusion, the sample
included undergraduate students, graduate students, faculty and staff at one mid western university
in US and an implication matrix is formed. The abstractness ratio is found out in implication
matrix. It ranges from 0 to 1 and a lower value reflects more concrete items and higher value
reflects more abstract item. Prompt service is one the important factor came out of implication
matrix as a very important parameter seen by customer in choosing a restaurant. The hierarchal
value map (HVM) was constructed for various segments of restaurants. The most frequently
mentioned value was “convenience” for fast food restaurants. This study is helpful in finding the
consumer dining values and helps to focus more on customer desired goals. The limitation is that
this study was conducted for USA and can be specific to the university.
Page 5 of 24

Providing service to the customers can be tedious job. The study by Ho and Pun (2001) examined
various quality attributes for service operations. They suggested that organization should identify
targeted customers and should develop appropriate skills and commitments in order to meet
customer requirements and expectations. The competitive position of a service restaurant depends
upon the service quality. The hotel and restaurants industry demands high level of continuous
quality improvement. The study is done and results are obtained by studying YMCA at Hong Kong.
The variables are like reliability, recovery and reputation to determine various service attribute in
restaurant. The data collection was done on the basis of personal interviews and customer
satisfaction survey. Likert scale is used in the study. The result helps to find most crucial factors of
quality assurance and provide various fundamentals for smooth operation and healthy environment
of restaurant. It brings together the important process, quality attributes and elements to improve the
organizational-wide performance for sustainable long term profitability.
Service quality depends on various attributes. Kim, Lee and Ryu (2012) examined the impact of
physical environment, food and services on restaurant image, customer perceived value and
behavior intensions. The physical environment and ambience plays an important role in shaping the
restaurant image. The restaurant image is important antecedent of customer perceived value and this
determines customer satisfaction. The physical environment shapes the brand image of a place. At
the very first visit, the physical environment such as décor, ambient condition and seating comfort
leaves an impression on customer. Decor and artifacts were found to be the most influential driver
of customer price perception. A questionnaire was developed to test level of quality in terms of
food, service and physical environment and test was conducted with 300 respondents at authentic
Chinese restaurant which were divided equally in aspect of all ratio. The study also reinforces
positive impact of customer satisfaction on loyalty behavior. We can use this research by comparing
the relative importance of three dimensions of restaurant service quality on image and customer
perceived value.
Time is an important factor for service encounter. People are reluctant to wait unnecessarily. Noon,
Kimes, Mattila and Wirtz (2009) examined the effect of perceived pace on the customer satisfaction
in the restaurants. The restaurants operators process greater number of customers within a period
and focus on increase in the revenue by reducing the service encounter duration when the demand
period is high. The reduction in the encounter time may be appealing from the revenue perspective
but it may negatively affect the customer satisfaction. The study has considered different variables
like service encounter time and satisfaction. The sample and data collection was done by taking the
convenience sample of 580 respondents from diverse source. The recall approach was used to find
relationship between the customer perception and pace. It was suitable because it enabled data
collection based on the experiences and did not limit the subject responses. A self-administered
Page 6 of 24

questionnaire was used to collect the data. Respondents who had not dined in the restaurants during
the last three weeks were excluded in the survey.
The service encounter has been described as consisting of three stages: pre-process, in-process and
post-process. The findings suggest that management should focus their duration reduction on the
post-process stage of the service encounter. The limitations of the study are that, it examined the
pace perceptions, but did not examine why customer experience certain level of pace. The
perceived pace also depends on various other factors like discrete emotions, quality perception and
behavioral response.
Customer satisfaction and service quality have been, by far, very important factors in determining
an organization’s survival and success as well as customer loyalty especially when it comes to food
services. Customer satisfaction appears to be the matter of significant interest by both marketing
practitioners and academics while service quality does play a major role in developing attitude
towards consumer loyalty. Fen and Lian (2007) examined the direct influence of customer
satisfaction and service quality over customer’s repatronage intentions. The survey included 377
respondents. Correlation analysis indicated that service quality and customer satisfaction had a
direct positive effect on customer’s re-patronage intentions. Multiple Linear Regression highlighted
customer satisfaction as a stronger predictor of re-patronage intentions compared to service quality.
Thus, several efforts on improving the patron’s perception were suggested.

Page 7 of 24

OBJECTIVES AND HYPOTHESIS
The research was aimed to address all essential objectives involved in a customer satisfaction study.
It followed a narrow down approach, starting from general perception of customers towards eating
joints in Ahmedabad and narrowing it down to our subject of interest i.e. Honest chain in
Ahmedabad. Another vital part of research was obtaining and studying various parameters and their
relation with each other which directly or indirectly affected the satisfaction levels of customers.
The several research objectives are listed as below:
1. To study the customer preferences regarding the choice of fast food restaurants in
Ahmedabad.
2. To study the customer’s choice of food items on the basis of taste at Honest.
3. To study the ambience and quality of food delivered at Honest.
4. To analyze the value for money for food items at Honest.
Based on the discussion in literature reviews, it is logical to posit the following hypotheses:
Ho 1: The taste of food, ambience, order delivery time and price play no role in recommending
Honest food chain group.
Ho 2: There is no significant difference observed in means of overall experience of customers at
Honest and factors like food quality served, ambience, employee behavior and prices. i.e.

µoverall experience = µfactors.
Ho 3: There is no relation existing between overall experience and among the prominent variables
like, food quality, order service, ambience and value for money.
Ho 4: There is no relation between customer’s switching behavior and their monthly income, age,
and gender.
Ho 5: There is no relation between customer’s recommendation for Honest and waiting time, portion
size, cutlery and restaurant cleanliness and parking space at Honest.

Page 8 of 24

RESEARCH METHODOLOGY
Measures
The research design was descriptive in nature. Based on the previous researches of Ryu, Lee and
Kim (2012), Kimes Sheryl E, Mattila Anna S, Noone Breffni M and Wirtz Jochen (2009) etc. a
questionnaire was developed to assess several dimensions of food service quality (quality of food,
order service, ambience, employee’s response, wait time etc.), restaurant’s image, customer’s
perceived value, customer satisfaction and behavioral intentions. All measurement variables w.r.t
food service quality were assessed using a five-point Likert-type scale, ranging from strongly
disagree (1) to strongly agree (5).Overall experience was measured using five options in a form of
degree scale ranging from excellent to poor. Customer’s satisfaction level and loyalty was measured
on the basis of their recommendation level for Honest and revisiting intention respectively. Four
prominent factors were listed in questionnaire whose relation with customer’s recommendation
level were measured. Finally, socio-demographic variables (e.g. gender, income, age,) were also
assessed.

Sample
A survey was conducted over a period of two weeks in which a questionnaire was provided to a
target population of fifty individuals who visited Honest chain outlet at 7, Ground Floor Kundlini
Complex, Near Hotel Shahi Palace, Opposite Vastrapur Lake, Vastrapur, Ahmedabad and shop #1718-19, Corporate House, Nr.Shrradha Petrol Pump, Bodakdev, Ahmedabad. The questionnaire
included several types of questions like multiple choice, rating based, open ended so as to record all
possible perceptions and expectations of customer. The technique used was mall intercept in order
to generate responses. To ensure the content validity of the measurement scales, this study involved
only those people who were coming out of the Honest outlet after having their meal. During the
data collection process, respondents were selected randomly at different times (peak and non-peak
hours) from two different outlets to ensure an adequate representation of the population. Finally, a
total of 50 samples were collected from 9th December to 21st of December in 2013.

Data Analysis
The testing of the hypotheses in this study adopted several analysis tools like Chi-square test,
Anova, Co-relation and Regression analysis. This study checked the influence of several factors
involved in food service on the overall experience of customers by Chi-square test. It also analyzed
the differences in mean among several factors and overall experience by ANOVA. It also verified
relationship existence between recommendation of customers and factors like overall experience,
food quality, order service, ambience and value for money by correlation and regression.
Page 9 of 24

RESULTS (FINDINGS)

Parameter_imp * Recommend Crosstabulation
Count
Recommend
Definately
Taste of food
Parameter_imp

Probably

Total

Probably Not

Definately Not

15

12

0

0

27

Ambience

3

6

0

0

9

Order delivery time

0

3

3

1

7

Price

3

2

2

0

7

21

23

5

1

50

Total

Table: 1(a)

Chi-Square Tests
Value

df

Asymp. Sig. (2-sided)

Pearson Chi-Square

25.325

9

.003

Likelihood Ratio

25.287

9

.003

8.166

1

.004

Linear-by-Linear Association
N of Valid Cases

50

Table: 1(b)

Symmetric Measures
Value
Nominal by Nominal

Approx. Sig.

Phi

.712

.003

Cramer's V

.411

.003

N of Valid Cases

50

a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null
hypothesis.

Table: 1(c)

Page 10 of 24

Figure: 1(d)
Interpretation:
In above table 1(b), the probability of the chi-square test statistic (chi-square=25.325) was p=0.003,
less than the alpha level of significance of 0.05, hence we reject our hypothesis Ho1. Table 1(a) and
Figure (a) further reinforces our assumption that out of 50 respondents, 44 respondents (21
definitely and 23 probably) i.e. 88% of sample size recommended to visit Honest chain group. Out
of these 44 respondents, 27 recommended for taste of food served at Honest, 9 respondents
recommended for impressive ambience at Honest, 3 respondents recommended for quickness in
order delivery and 5 respondents recommended Honest for reasonable price. Phi and Cramer's V are
both tests of the strength of association. We can see that the strength of association between the
variables is strong (.712) which is very high. Hence, the taste of food, ambience, order delivery
time and price do play important roles in recommending Honest food chain group.

Page 11 of 24

ANOVA
Sum of Squares

Food_served

Menu_items

Food_quality

19.195

3

6.398

Within Groups

19.385

46

.421

Total

38.580

49

Between Groups

13.254

3

4.418

Within Groups

30.746

46

.668

Total

44.000

49

Between Groups

10.118

3

3.373

Within Groups

16.862

46

.367

Total

26.980

49

8.897

3

2.966

Within Groups

56.323

46

1.224

Total

65.220

49

6.542

3

2.181

Within Groups

36.438

46

.792

Total

42.980

49

1.982

3

.661

Within Groups

16.438

46

.357

Total

18.420

49

4.715

3

1.572

Within Groups

23.785

46

.517

Total

28.500

49

4.382

3

1.461

Within Groups

29.638

46

.644

Total

34.020

49

7.389

3

2.463

Within Groups

49.731

46

1.081

Total

57.120

49

7.889

3

2.630

Within Groups

51.331

46

1.116

Total

59.220

49

5.397

3

1.799

Within Groups

23.423

46

.509

Total

28.820

49

Between Groups

18.295

3

6.098

Within Groups

32.285

46

.702

Total

50.580

49

Between Groups

14.043

3

4.681

Within Groups

31.177

46

.678

Total

45.220

49

Between Groups
Ambience

Between Groups
Food_order

Between Groups
Employees_patient

Between Groups
Avail_sauce_napkins

Between Groups
Menu_board

Between Groups
Employees_speak

Between Groups
Employees_friendly

Value_for_money

Prices_competitive

Mean Square

Between Groups

Between Groups
Order_service

df

Table: 2
Page 12 of 24

F

Sig.

15.184

.000

6.610

.001

9.201

.000

2.422

.078

2.753

.053

1.848

.152

3.040

.038

2.267

.093

2.278

.092

2.357

.084

3.533

.022

8.689

.000

6.907

.001

Interpretation:
A one-way ANOVA was conducted to determine if the mean of overall experience was influenced
by several factors like food quality served, ambience, employee behavior and prices. That is, there
is one factor (overall experience) which we are looking at across these 13 factors. From the above
table (3), several factors like order service (p-value = .078), ambience (p-value=0.053), availability
of napkins and sauce (p-value=0.093), completeness of food order (p-value= .152), menu board not
clear (p-value=0.092), employees did not speak clearly (p-value=0.084) with their p values were
found. These p values are greater than level of significance 0.05, so no difference exist between
overall experience and these above factors.
For other factors like employees friendliness (p-value=.022), value for money (p-value= .000),
competitive prices (p-value= .001), employees patient (p-value= .038), food served (p-value= .000),
menu items (p-value= .001), food quality (p-value= .000), highly statistically significant difference
exist. The p value for these factors is less than level of significance 0.05, hence we reject our null
hypothesis i.e. Ho2 and thus, differences exist between overall experience and these factors.

Correlations
Overall_exprnce
Pearson
Overall_exprnce

Correlation

Pearson
Correlation
Sig. (2-tailed)
N
Pearson
Order_service

Correlation
Sig. (2-tailed)
N
Pearson

Ambience

Correlation
Sig. (2-tailed)
N
Pearson
Correlation

Value_for_money

Sig. (2-tailed)
N

Order_service

Ambience

Value_for_money

.602**

-.281*

.382**

.571**

.000

.048

.006

.000

50

50

50

50

50

.602**

1

-.063

.559**

.439**

.662

.000

.001

1

Sig. (2-tailed)
N

Food_quality

Food_quality

.000
50

50

50

50

50

-.281*

-.063

1

-.195

-.344*

.048

.662

.174

.015

50

50

50

50

50

.382**

.559**

-.195

1

.317*

.006

.000

.174

50

50

50

50

50

.571**

.439**

-.344*

.317*

1

.000

.001

.015

.025

50

50

50

50

Page 13 of 24

.025

50

**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

Table: 3

Interpretation:
From the above correlation table (4), the correlation coefficient between overall experience and
value for money is (.571). It can be inferred that a strong relation exist between overall experience
and value for money. The correlation coefficient between overall experience and food quality is
(.602). It can be inferred that a strong relation exist between overall experience and food quality.
The correlation coefficient between overall experience and ambience is (.382). It can be concluded
that a relation exist between overall experience and ambience. The correlation coefficient between
overall experience and order time is (-.281). It can be inferred that no relation exist between overall
experience and order time. Hence, we reject our null hypothesis Ho3.

Model Summary
Model

1

R

.313a

R

Adjusted R

Std. Error of

Square

Square

the Estimate

.098

.039

Change Statistics
R Square

F

Change

Change

.740

.098

df1

df2

Sig. F
Change

1.664

3

46

.188

a. Predictors: (Constant), Monthly_income, Age, Gender

Table: 4(a)
ANOVAa
Model

Sum of Squares
Regression

Table:

1

df

Mean Square

2.733

3

.911

Residual

25.187

46

.548

Total

27.920

49

F
1.664

Sig.
.188b

4(b)

a. Dependent Variable: Switch
b. Predictors: (Constant), Monthly_income, Age, Gender

Interpretation:
From table 4(a), the adjusted R2 value comes out to be 0.039 i.e. 3 independent variables (monthly
income, age, gender) account only 3.9% variance in dependent variable (customer’s switching
Page 14 of 24

behavior).The model selected is not good. Apart from these three variables, there exist other factors
as well which influence customer’s switching behavior. Moreover, p-value (0.188) is greater than
the level of significance 0.05. Hence, we accept our hypothesis Ho 4.

Model Summary
Model

R

R Square

.424a

1

Adjusted R

Std. Error of

Square

the Estimate

.180

.087

Change Statistics
R Square

F

Change

Change

.697

.180

df1

df2

Sig. F
Change

1.929

5

44

.109

a. Predictors: (Constant), Wait_time, Portion_size, Cutlery_clean, Restaurant_clean, Parking_space

Table: 5(a)

ANOVAa
Model

Sum of Squares
Regression

1

Df

Mean Square

4.690

5

.938

Residual

21.390

44

.486

Total

26.080

49

F

Sig.

1.929

.109b

a. Dependent Variable: Recommend
b. Predictors: (Constant), Wait_time, Portio22n_size, Cutlery_clean, Restaurant_clean, Parking_space

Table: 5(b)

Interpretation:
From table 5(a), the adjusted R2 value comes out to be 0.087 i.e. 5 independent variables (wait time,
Portion size, clean cutlery, restaurant clean and parking space) account only 8.7% variance in
dependent variable (customer’s recommendation).The model selected is not good. Apart from these
five variables, there exist other factors as well which influence customer’s recommendation.
Moreover, p-value (0.109) is greater than the level of significance 0.05. Hence, we accept our
hypothesis Ho 5.

Age Distribution
Frequency
Valid

18-25 yrs

30

Percent
60.0

Page 15 of 24

Valid Percent
60.0

Cumulative Percent
60.0

26- 35 yrs

12

24.0

24.0

84.0

36 - 45 yrs

6

12.0

12.0

96.0

46 - 60 yrs

2

4.0

4.0

100.0

50

100.0

100.0

Total

Table: 6(a)

Figure: 6(b)

Gender
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Male

34

68.0

68.0

68.0

Female

16

32.0

32.0

100.0

Total

50

100.0

100.0

Table: 6(c)

Page 16 of 24

Figure: 6(d)

Monthly_income
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Below 20,000

13

26.0

26.0

26.0

20,000-30,000

11

22.0

22.0

48.0

30,000-40,000

7

14.0

14.0

62.0

40,000-50,000

2

4.0

4.0

66.0

50,000 and above

3

6.0

6.0

72.0

Not Applicable

14

28.0

28.0

100.0

Total

50

100.0

100.0

Table: 6(e)

Page 17 of 24

Figure: 6(f)

Interpretation:
In the above table 6(a), frequency distribution of age indicates that maximum visitors at Honest
outlet comprises of customers belonging to age group 18-25 yrs. which account for 60% of sample
size followed by customers belonging to age group 26-35 yrs. (24%) , 36-45 yrs. (12%) and 46-60
yrs. (2%). Figure 6(b) also gives a quick representation of customer distribution age wise. This
helps us to derive a conclusion that maximum visitors at honest comprises of teenagers and youth.
In the above table 6(c), frequency distribution of gender indicates that maximum visitors at Honest
outlet comprises of male customers (68%) as compared to female customers (32%). Figure 6(d)
also gives a quick representation of customer distribution gender wise.
In the above table 6(e), frequency distribution of monthly income indicates that maximum visitors
at Honest outlet comprises of individuals who belong to non-income group (28%) followed by
individuals with income below 20,000 (26%). Figure 6(d) also gives a quick representation of
customer distribution income wise.

Page 18 of 24

DISCUSSION AND CONCLUSIONS
The above mentioned interpretations of the several analysis gives us a fair picture about the
research of customer satisfaction levels with respect to services offered by HONEST chain in
Ahmedabad. The five analysis carried out in reference to the hypothesis generated results as
expected to a certain extent. Some part of the research failed to give a conclusive result.
Possible sources of error can be differences due to random sampling error. The other major source
of survey error, systematic error, results from some imperfect aspect of the research design or from
a mistake in the execution of the research. Respondent’s Error like no response error or response bias are
another main sources of error. A response bias occurs when respondents tend to answer questions with

a certain slant. People may consciously or unconsciously misrepresent the truth. The result of
improper administration or execution of the research task is called an administrative error.
Administrative errors are caused by carelessness, confusion, neglect, omission, or some other
blunder. Four types of administrative error are data-processing error, sample selection error,
interviewer error, and interviewer cheating.
The research results can be made more conclusive and concrete by reducing such types of errors
through a much more structured questionnaire and following a longitudinal approach involving
large sample size to generate responses from the customers.
On the basis of our results, we can conclude that customer satisfaction level depends largely on
several factors of overall services offered by Honest chain group and the research objectives are
entirely fulfilled which ultimately benefits us and the subject of research i.e. Honest group as well.

Page 19 of 24

REFERENCES
Andaleeb Syed Saad and Conway Carolyn (2006) “Customer satisfaction in the restaurant industry:
an examination of the transaction-specific model”, Journal of Services Marketing 20/1 (2006) 3–11
Arora Raj and Singer Joe (2006) “Customer Satisfaction and Value as Drivers of Business Success
for Fine Dining Restaurants” Services Marketing Quarterly, Vol. 28(1) 2006
Chang Kuo-Chien (2013) “How reputation creates loyalty in the restaurant sector”, International
Journal of Contemporary Hospitality Management Vol. 25 No. 4 [2013] 536-557
Ellis Taylor and Pizam Abraham (1999) “Customer satisfaction and its measurement in hospitality
enterprises”, International Journal of Contemporary Hospitality Management 11/7 [1999] 326-339
Fen Yap, Sheau and Lian Kew, Mew (2007), “Service quality and customer satisfaction: antecedents
of customer's re-patronage intentions”, Sunway Academic Journal, 4. pp. 59-73.
Ho Ka-Yan and Pun Kit-Fai (2001) “Identification of service quality attributes for restaurant
operations: a Hong Kong case”, Managing Service Quality Vol. 11 Number 4 [2011] 233-240
Ha Jooyeon and Jang Soocheong (2013)”Attributes, consequences, and consumer values”,
International Journal of Contemporary Hospitality Management Vol. 25 No. 3 [2013] 383-409
Kimes Sheryl E, Mattila Anna S, Noone Breffni M and Wirtz Jochen (2009) “Perceived service
encounter pace and customer satisfaction”, Journal Of Service Management Vol. 20 No. 4 [2009]
380-403
Marketing Management by Philip Kotler, Chapter-10, Page No.264 (14th ed.), Dorling Kindersley,
Pearson Education India.
Marketing Management by Philip Kotler, Chapter-2, Page No.32 (14th ed.), Dorling Kindersley,
Pearson Education India.
Marketing Management by Philip Kotler, Chapter-12, Page No.32 (14th ed.), Dorling Kindersley,
Pearson Education India.
Marketing Management by Philip Kotler, Chapter-12, Page No.338 (14th ed.), Dorling Kindersley,
Pearson Education India.
Marketing Management by Philip Kotler, Chapter – 18, Pg. 489 338 (14th ed.), Dorling Kindersley,
Pearson Education India.

Page 20 of 24

Namkung Young and Jang SooCheong (Shawn) (2008), “Are highly satisfied restaurant customers
really different? - A quality perception perspective “, International Journal of Contemporary
Hospitality Management, Vol. 20 No. 2, 2008, pp. 142-155
Ryu Kisang , Lee Hye-Rin and Kim Woo Gon (2012) , “The influence of the quality of the physical
environment, food, and service on restaurant image, customer perceived value, customer
satisfaction, and behavioral intentions”, International Journal of Contemporary Hospitality
Management, Vol. 24 No. 2, 2012pp. 200-223
Tsiros, Michael, Vikas Mittal, and William T. Ross, Jr., 2004, “The Role of Attributions in
Consumer Satisfaction: A Re-examination,” Journal of Consumer Research, 31(2), 476-483.

Page 21 of 24

BIBLIOGRAPHY
Andaleeb Syed Saad and Conway Carolyn (2006) “Customer satisfaction in the restaurant industry:
an examination of the transaction-specific model”, Journal of Services Marketing 20/1 (2006) 3–11
Arora Raj and Singer Joe (2006) “Customer Satisfaction and Value as Drivers of Business Success
for Fine Dining Restaurants” Services Marketing Quarterly, Vol. 28(1) 2006
Chang Kuo-Chien (2013) “How reputation creates loyalty in the restaurant sector”, International
Journal of Contemporary Hospitality Management Vol. 25 No. 4 [2013] 536-557
Ellis Taylor and Pizam Abraham (1999) “Customer satisfaction and its measurement in hospitality
enterprises”, International Journal of Contemporary Hospitality Management 11/7 [1999] 326-339
Fen Yap, Sheau and Lian Kew, Mew (2007), “Service quality and customer satisfaction: antecedents
of customer's re-patronage intentions”, Sunway Academic Journal, 4. pp. 59-73.
Ho Ka-Yan and Pun Kit-Fai (2001) “Identification of service quality attributes for restaurant
operations: a Hong Kong case”, Managing Service Quality Vol. 11 Number 4 [2011] 233-240
Ha Jooyeon and Jang Soocheong (2013)”Attributes, consequences, and consumer values”,
International Journal of Contemporary Hospitality Management Vol. 25 No. 3 [2013] 383-409
Kimes Sheryl E, Mattila Anna S, Noone Breffni M and Wirtz Jochen (2009) “Perceived service
encounter pace and customer satisfaction”, Journal Of Service Management Vol. 20 No. 4 [2009]
380-403
Marketing Management by Philip Kotler, Chapter-10, Page No.264 (14th ed.), Dorling Kindersley,
Pearson Education India.
Marketing Management by Philip Kotler, Chapter-2, Page No.32 (14th ed.), Dorling Kindersley,
Pearson Education India.
Marketing Management by Philip Kotler, Chapter-12, Page No.32 (14th ed.), Dorling Kindersley,
Pearson Education India.
Marketing Management by Philip Kotler, Chapter-12, Page No.338 (14th ed.), Dorling Kindersley,
Pearson Education India.
Marketing Management by Philip Kotler, Chapter – 18, Pg. 489 338 (14th ed.), Dorling Kindersley,
Pearson Education India.
Page 22 of 24

Namkung Young and Jang SooCheong (Shawn) (2008), “Are highly satisfied restaurant customers
really different? - A quality perception perspective “, International Journal of Contemporary
Hospitality Management, Vol. 20 No. 2, 2008, pp. 142-155
Ryu Kisang, Lee Hye-Rin and Kim Woo Gon (2012), “The influence of the quality of the physical
environment, food, and service on restaurant image, customer perceived value, customer
satisfaction, and behavioral intentions”, International Journal of Contemporary Hospitality
Management, Vol. 24 No. 2, 2012 pp. 200-223
Tsiros, Michael, Vikas Mittal, and William T. Ross, Jr., 2004, “The Role of Attributions in
Consumer Satisfaction: A Re-examination,” Journal of Consumer Research, 31(2), 476-483.
Zhang Ziqiong, Zhang Zili and Law Rob (2013), “Regional effects on customer satisfaction with
restaurants”, International Journal of Contemporary Hospitality Management, Vol. 25 No. 5, 2013
pp. 705-722

Page 23 of 24

APPENDICES (IF ANY

Page 24 of 24

UNDERTAKING

To Whom It May Concern

We, Harsh Asthana, Kamesh Joshi, Priya Tiwari and Sonal Gilitwala, hereby declare that this
assignment is our original work and is not copied from anyone/anywhere. If found similar to
sources, we shall take complete responsibility of action taken thereof by, WAC Team.

Group No.

:1

Batch

: MBA – FT (2013-2015)

Section

: A

Sign:

____________

____________

____________

____________

Name:

Harsh Asthana

Kamesh Joshi

Priya Tiwari

Sonal Gilitwala

131128

131142

Roll No.:

131125

131156

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