IMPACT OF CUSTOMER SATISFACTION ON CUSTOMER LOYALTY IN A RESTAURANT

Abstract

This paper examines the impact of customer satisfaction on their loyalty. Furthermore, the purpose of this paper is to define the appropriate attributes that define customer satisfaction and loyalty and determine the impact of satisfaction on customer loyalty of restaurant services. The application of structural equation modelling confirmed a statistically significant relationship and a direct impact of satisfaction on the loyalty of service users. To do so, 163 completed questionnaires were statistically processed. Satisfaction was measured by three attributes, and loyalty by two attributes. The validity of the questionnaire was confirmed with a value of Cronbach alfa coefficient of 0.89. Composite confidence (CR) is greater than 0.6 and average variability (AVE) is greater than 0.6 for all latent variables (constructors) ("satisfaction" and
"loyalty"). Also, the suitability of the structural equation model was confirmed by Fit Statistic Results: Goodness-of-fit Index (GFI), Adjusted Goodness-of-fit Index (AGFI), Standardized Root Mean Square Residual (SRMR), Root Mean Square Error of Approximation (RMSEA), Comparative Fit Index (CFI) and Normed Fit Index (NFI), Tucker-Lewis Index (TLI). This model can measure, monitor, and improve customer satisfaction from restaurant service, as well as their loyalty.