Predictors of Relationship Quality and Loyalty in the Chain Restaurant Industry

Abstract

The focus of this research was the chain restaurant industry, and its purpose was to (1) determine which factors influence relationship quality and customer loyalty formation and (2) examine the connections between relationship quality and loyalty. Based on the literature review, five dimensions influence restaurant patrons’ behavior: food quality, service quality, price, location, and environment. Theoretical relationships between attributes influencing patrons’ behavior, relationship quality, and loyalty were derived from the literature review. Data analysis indicated that these five attributes influence loyalty formation, with impact mediated by relationship quality. They also influence customer satisfaction, with satisfaction influencing loyalty formation directly and indirectly via trust. Furthermore, service quality was the only attribute to directly and indirectly affect trust, and its effect is stronger than that of any other attribute. Managerial implications are discussed.