VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY

FACULTY OF BUSNIESS ADMINISTRATION

BUSINESS RESEARCH METHODS

INFLUENCE OF FAST-FOOD RESTAURANT SERVICE QUALITY

AND ITS DIMENSIONS ON CUSTOMER PERCEIVED VALUE,
SATISFACTION AND BEHAVIOURAL INTENTIONS

Student name : NGUYỄN QUỐC CƯỜNG – 719G0252

LÊ THÚY HIỀN – 719G0224
BẠCH HOÀNG LONG – 719G0260
Major : HOSPITALITY MANAGEMENT

HO CHI MINH CITY, ARPIL 2O21

TABLE OF CONTEN
 T
LIST OF FIGURES......................................................................................................................2
LIST OF ACRONYMS................................................................................................................3
1. Introduction:.....................................................................................................................5
2. Research question.............................................................................................................6
3. Purpose of research.......................................................................................................... 6
4. Subject and scope of research..........................................................................................6
5. Research significance and limitation...............................................................................6
5.1. Research significance...................................................................................................6
5.2. Research limitation.......................................................................................................7
6. Literature review and the previous studies.....................................................................7
6.1. Literature review........................................................................................................7
6.1.1. Service Quality – SQ.............................................................................................7
6.1.2. Food Quality - FQ.................................................................................................8
6.1.3. Employee Service Quality – ESQ.........................................................................9
6.1.4. Physical Envirnment Quality – PEQ.....................................................................9
6.1.5. Customer Perceived Value - CPV.......................................................................10
6.1.6. Customer Satisfaction – CS.................................................................................10
6.1.7. Behaviroual Intentions - BI.................................................................................10
6.2. The previous studies.................................................................................................11
6.3. The proposed research model and hypothesis........................................................14
6.3.1. Conceptual Model...............................................................................................14
6.3.2. The proposed hypothesis.....................................................................................14
7. Methodology....................................................................................................................15
7.1. Pilot test.....................................................................................................................15
7.2. Qualitative research.................................................................................................15
7.3. Research process.......................................................................................................16
8. The structure of the thesis..............................................................................................17
9. Timeline............................................................................................................................19
REFERENCES........................................................................................................................... 20
 LIST OF FIGURES
Figure 1: SERVQUAL model (A. Parasuraman, V. Zeithaml và L. Berry, 1988)..........8
Figure 2: Study model of Kim and Moon (2009)..........................................................11
Figure 3: Study models of Kafel and Sikora (2013)......................................................12
Figure 4: Conceptual Model..........................................................................................14
Figure 5: Research process............................................................................................17
 LIST OF ACRONYMS
QSR : Quickly service restaurant
CAGR : Compounded Annual Growth Rate
KFC : Kentucky Fried Chicken
SQ : Service Quality
FQ : Food Quality
ESQ : Employee Service Quality
PEQ : Physical Environment Quality
CPV : Customer Perceived Value
CS : Customer Satisfaction
BI : Behavioural Intentions
EFA : EFA
1. Introduction:
The fast food industry is one of the most promising industries in the word, which has
generated more than $570 billion in revenue. To meet the need of convenience and to
save time in today’s hectic lifestyle, a mass of fast-food restaurants (or quickly service
restaurant – QSR) have been established, offering a variety of food that is stored with
frozen, preheated or precooked ingredients and served to the customer in a packaged form
for take-away, such as: fried-chicken, french fries, pizza, hamburger,... This increases the
growth of the global fast-food market. It is predicted that the global fast food market will
reach $931.7 billion by 2027, rising at a CAGR of 4.6% from 2020 to 2027 (Global Fast
Food Market Worth $931 Billion by 2027 - Industry Assessment Featuring Auntie
Anne's, Domino's Pizza, Dunkin' Brands Group, McDonald's, Yum! Brands and More,
2020)
Due to the fast-food restaurants in the developed countries has been at the saturation
point, they have been attracted to and entered to the emerging countries, including Viet
Nam and Ho Chi Minh City has been a potential place. According Department of
Domestic Market (Ministry of Industry and Trade), in the past 8 years, they have licensed
148 foreign brands and trademarks into Vietnam, such as KFC, Loterria, Pizza Hut, The
Pizza Company, Mc Donald’s,.... American chain KFC is the most frequently visited fast
food restaurant chain, with 45 percent of respondents visiting its stores often, followed by
Lotteria, accounted for 17 percent of 600 respondents and Pizza Hut and Mc Donald’s
both at 6 percent (Ho Chi Minh City-based market research firm Q&Me, 2020). The
majority of customers coming to these QSR are the younger and working professionals at
20s – 30s years old, who go for the unique decoration, the Western cuisine and
convenience at the reasonable price. In addition to this, due to the Covid-19 pandemic,
people are unable to go out for meal, so that an increase in the online ordering and
delivery service leads to an increase in fast-food consumption, driving to the competitive
fast-food market in Ho Chi Minh City, Viet Nam. Therefore, to remain and boost sales,
fast-food needs to focus on improving the service quality that influences customer’s
choice of fast-food restaurants in the emerging countries, specifically Ho Chi Minh City,
Vietnam.
For the statements mentioned above, we choose the topic “Influence of fast-food
restaurant service quality and its dimensions on customer perceived value,
satisfaction and behavioural intentions” to identify how service quality affects
customers. The study's findings provide restaurant owners and managers with a broad
understanding of the factors that influence customers' perceived value, satisfaction, and
behavioral intentions, as well as how to bring them together appropriately to improve the
quality of restaurant service.
2. Research question
The research will answer these questions:
- How service quality, include in food quality, physical environment quality and
employee service quality influence customer perceived value.
- Which are significant determinants of customer satisfaction and behavioural
intentions.
3. Purpose of research
This topic aims at the main research objectives of investigating the impact of the
quality of fast-food restaurant service, including: food quality, physical environment
quality and employee service quality influence customer perceived value, satisfaction and
behavioural intentions.
4. Subject and scope of research
The research studies the effect of fast-food restaurant service quality and its three
dimensions, including food, physical environment and employee service quality on
customer perceived value, satisfaction and behavioural intensions.
The research is carried out by a survey of customers who have been experienced the
fast-food restaurant service in Ho Chi Minh City.
5. Research significance and limitation
5.1. Research significance
The research supports the fast-food restaurant owners and managers to identify
how service quality dimensions affect customers, have an overview of the service quality
at their restaurant to customers, analyze the strengths and weaknesses of service quality
and know the different level of each customer’s review of service quality. From there, it is
possible to devise strategies to help develop restaurants, improve service quality and bring
the best experience to customers.
5.2. Research limitation
The data was collected from online survey form (Google form), the participants
might be affected by the objective factors, so that the result may not be completely
accurate. Besides, because the limit of time carrying out survey, the study has not been
analyzed each aspect of topic in depth.
6. Literature review and the previous studies
6.1. Literature review
6.11. Service Quality – SQ
According to ISO 9004, service is the result brought about by interactive
activities between supplier and customer and thanks to the actions of the suppliers to meet
the needs of customers”. In draft DIS 9000: 2000, the definition of quality is given
“Quality is the ability of the set of characteristics of a product, system or process to meet
the requirements of customers and stakeholders”. Therefore, the service quality,
specifically in fast food restaurant, is the appropriate level of dining products to meet the
guest’s needs. Service quality is typically defined from the customers’ viewpoint
(Dumitrela, 2013) which is the difference between their expectations of the service
offered and their perception of the actual service received (Yarimoglu E. , 2014). It is a
critical success factor for service companies (Shin, 2019; Yusoff, 2010) specifically in
restaurants (Gremler, 1996).
Restaurant service quality contains three critical factors, namely food
quality, physical environment quality and employee services quality (Uolevi Lehtinen,
1991). (Chen, 2010) said that restaurant service quality plays a role as a predictor of
customer perceived value and positively influences customer perceived value (Clemes M.
G., 2011; Ha J. ,., 2013) and the three factors (food quality, physical environment quality
and employee service quality) “are considered the attributes that customers use to
evaluate perceived quality” (Ha J. ,., 2013)
The first study to measure the service quality was SERVQUAL by A.
Parasuraman, V. Zeithaml và L. Berry in 1988. The SERVQUAL measures service
quality based on perceptions by the customers using the service and is composed five
dimensions: tangibles, empathy, assurance, reliability, and. In the next 4 years, Cronin
and Taylor (1992) developed SERVPERF, which based on the structure and content of
the SERVQUAL service quality scale. While SERVQUAL is measured by both
expectations and perceptions, SERVPERF is only measured by guest’s perceptions.
Another study is DINESERV. Similarly, DINESERV was developed from the first scale,
SERVQUAL and measures restaurant customers’ expectations and perceptions of service
quality.

Figure 1: SERVQUAL model (A. Parasuraman, V. Zeithaml và L. Berry, 1988)

6.1.2. Food Quality - FQ
Food quality refers to the cleanliness, freshness, and healthiness of the food
as well as the variety of foods available at a fast food restaurant, and it is a major factor in
customers' decision to choose one restaurant over another (Alonso, 2013; Serhan, 2019).
It is because the customers go to a restaurant for dining needs, the quality of food is an
extremely important factor in attracting new customers and maintaining them.
Furthermore, recent studies have identified food quality as the most
important restaurant service quality dimension affecting a customer's selection process
and quality perception (Kukanja, 2017; Shahzadi, 2018) and show that food quality has a
major impact on customer perceived value (Ryu K. a., 2008).
6.1.3. Employee Service Quality – ESQ
An organization’s service offerings include tangible and intangible
components (Parasuraman, Reassessment of expectations as a comparison standard in
measuring service quality: Implications for further research., 1995) which generally refers
to employee service quality, such as their reliability, responsiveness, assurance, and
empathy (Parasuraman, Servqual: A multiple-item scale for measuring consumer perc.,
1988). Service quality delivered by restaurant employees is considered as a significant
component in the restaurant dining experience (Andaleeb, 2006). In the restaurant
industry, “employee service quality” relates to the way of interpersonal service offered
when they communicate with customers (Ha J. a., Effects of service quality and food
quality: the moderating role of atmospherics in an ethnic restaurant segment, 2010) (throu
gh the knowledge and manner of the employees; and by employees’ service of food as
ordered, provision of prompt service and minimization of service failures) leading to
enhancing levels of restaurant employee service quality result (Ryu K. L., 2012),
improving customer expectations of product quality, and increasing customer’s willing to
purchase (Sweeney, 1997)
6.1.4. Physical Environment Quality – PEQ
Temperature, lighting, scent, noise, atmosphere, and music, according to
(Hanaysha, 2016), are both tangible and intangible components within and outside the
restaurant that are included in the definition of physical environment. He also suggested
that a well-maintained physical environment can serve to maintain a restaurant’s existing
customer base, “customers use the physical environment in judging the quality of
products or services” (Ha J. a., The effects of dining atmospherics on behavioural
intentions through quality perception, 2012) as well as attract new customers. Consumer
perceived value and competitive advantage can be created by creating a friendly and
enjoyable dining environment for customers, and this has a positive impact on customer
perceived value (Jalilvand, 2017) (Ryu K. L., 2012)
6.1.5. Customer Perceived Value - CPV
Consumer perceived value is the trade-off made by the customer between all
benefits obtained from the business service and the sacrifices made by the customer to
maximize the benefits (Slack, 2020) (Weinstein, 2020), (Dodds, 1985)‘s research is that
CPV focused on the quality–price relationship that customer derives value from the
difference between commodity utility and the price paid. (Sanchez-Fernandez, 2007).
Nonetheless, researchers argued that perceived value is a more complex construct than
merely the trade-off between utility and price (Monroe, 1990)
In fast food industry, fast-food restaurant service quality dimensions are
strongly positively linked to consumer perceived value (Carranza, 2018) (Clemes M. G.,
2011) (Shahzadi, 2018).
6.1.6. Customer Satisfaction – CS
There are several customer satisfaction definitions; however, it is proposed
that each concept contains three similar constituents: a response (emotional and
cognitive), the response is directed toward a specific product or service, expectation, and
consumption experience. etc., and the response takes place at a certain time (such as after
consumption) (Giese, 2000).Customer satisfaction is described in this study as "the
customer's response to the evaluation of the perceived different between prior
expectations (or any standard of success) and the impact of fast-food restaurant service
quality actual performance of the product as perceived after consumption." (Tse, 1988)
6.1.7. Behaviroual Intentions - BI
Repurchase, recommendation to others, loyalty, complaints, and price
sensitivity are all aspects of behavioral intentions, according to (Zeithaml, 1996). For this
study, the concept “behavioural intentions” is defined that after a restaurant experience,
customers will display optimistic behaviors such as repurchase from the restaurant,
suggest and have positive word-of-mouth about the restaurant and resist price sensitivity
and complaining behaviour (Sulaiman, 2013). In addition, (Kim, 2007) considered that
coming back to the restaurant several times means the customers feel satisfied with the
restaurant’s service.
6.2. The previous studies
For the previous research, the researchers have determined that the choice and
perceived value of the customer comes from a number of factors and those factors are
very important that directly affect the choice. choose and perceive value of customers.
The studies have gathered a lot of different opinions about those factors and their
influence on customers
 Research by Kim and Moon (2009)
Through a survey in the Banff Tourist Information Center in Alberta, Canada,
two internship students majoring in hospitality management and trained and employed as
data collectors showed respondents with a list of theme restaurants and asked them to
choose one that they had enjoyed in the previous six months.. Research received 220
surveys and 208 surveys were used for final analysis.
The study report contains 21 items that measure the five components of
servicescape and ten items that measure the three consequences of servicescape. Baker's
(1986) scale, Wakefield and Blodgett's (1996) scale, and Bitner's (1990) scale are among
the scales used to measure objects. Kim and Moon's study, which was based on Bitner's
system of environmental perception, established a number of variables, including meal
costs, prior consumer experience with comparable restaurants, restaurant credibility,
location, and memorable advertisement, as well as appearance of other customers,
employees and restaurant service.
 Figure 2: Study model of Kim and Moon (2009)
 Research by Kafel and Sikora (2013)
In this research papper, the author used a means-end chain approach to define
fundamental customer principles across three separate restaurant segments and
respondents were asked about restaurant characteristics, consequences, and beliefs in this
study. Customers are often influenced by other factors such as food quality, restaurant
cleanliness, entertainment facilities, and the variety of dishes on the menu, according to
research. In this report, Kafel and Sikora identified four major factors that influence
consumer preference and perceived value which are: food, service, price, and value.
This research article has clearly shown what consumers expect when they eat in a
restaurant. Restaurant owners may create successful marketing campaigns, such as
commercials or promotions, that set them apart from competitors.

Food

Service Customers’ choice of

restaurant and perceived
value
Value

Price
Figure 3: Study models of Kafel and Sikora (2013)
  Research by (Carranza, 2018; Clemes M. G., 2011; Shahzadi, 2018)
The authors discovered similar characteristics of the factors influencing consumer
preference and testify importance from the various elements of the research papers. These
factors include the food's quality, the physical environment's quality, and the staff's
quality. Klein's new research (2020) also shows that these factors are not unchanged, they
will evolve more to meet customer expectations.
 Research by Neale J. Slack (2020)
The author conducted a survey in an island nation of Fiji, an emerging economic
area, of people who visit fast food restaurants in five central cities of Fiji to determine the
impact of fast food restaurant quality on customer choice and behavior.
The research used descriptive and inferential analysis, as well as backward
elimination multiple regressions, to evaluate the study's hypotheses. The author's
questionnaire includes 2 parts of data, firstly, demographics (gender, age, total annual
income, education level, time spent at a fast food restaurant, etc.) and second is the
quality of the fast food restaurant's service and the perceptions of customers after using
the restaurant's service. The questionnaire uses a 5-point scale Likert (1 - very
dissatisfied, 5 - very satisfied) to show the level of customer satisfaction with the
restaurant's services based on the actual values they perceive.
This research aids us in comprehending the combined impact of fast-food
restaurant service quality dimensions, as well as the independent effect of these
dimensions on the development of customer perceived value, satisfaction, and behavioral
intentions.
The unique point of this study could show that customers prioritised fast-food
restaurant food quality over physical environment quality, while employee service quality
wasn’t significant to customers in determination of perceived value of a dining
experience. The limitations of this study include the fact that it only looks at the impact of
fast-food restaurant service quality and its three dimensions, and that consumer behavior
can change in the future as a result of the numerous influencing factors.
 This study just research about Fiji so it need to research more country and
customer culture to get more accurate results about customer behavior. Because
considering linear regressions are limited to evaluating constructs and relationships
between constructs, it is also recommended that structural equation modelling be used for
future studies to enable assessment of the reliability and validity of future model
measures, and assessment of the moderating and mediating effects of variables.
6.3. The proposed research model and hypothesis
6.3.1. Conceptual Model

Food Quality
H2
Physical Customer H5 Customer H6 Behavioural
Environment Quality H3 Perceived Value Satisfaction Intention

H4
Employee Service
Quality

H1
Fast-food Restaurant
Service Quality

Figure 4: Conceptual Model

(Neale J. Slack, Gurmeet Singh, Jazbeen Ali, Reshma Lata, Karishma Mudaliar and
Yogita Swamy, 2020)

6.3.2. The proposed hypothesis

No. Variables Coding Hypothesis
1 Service Quality SQ +
2 Food Quality FD +
3 Physical Environment Quality PEQ +
4 Employee Service Quality ESQ +
5 Customer Perceived Value CPV +
6 Customer Satisfaction CS +
 7 Behavioural Intention BI +

 H1: Each of the three fast-food restaurant service quality dimensions (food quality,
physical environment quality and employee service quality) has a compound effect
and each dimension contributes to a significant positive influence on customer
perceived value.
 H2: Food quality has a significant positive influence on customer perceived value
 H3: Physical environment quality has a significant positive influence on customer
perceived value.
 H4: Employee service quality has a significant positive influence on customer
perceived value.
 H5: Customer perceived value has a significant positive influence on customer
satisfaction.
 H6: Customer satisfaction has a significant positive influence on behavioural
intentions.
7. Methodology
7.1. Pilot test
This research inherits mainly from the research by Neale J. Slack et al. (2020).
After the initial group discussion, we offered a preliminary scale. Initial measurement
items in English, we’ve translated into Vietnamese thanks to supporting tools so that the
survey participants can understand and do survey easily. The author carried out a survey
at people who live in Ho Chi Minh had experienced the service at fast-food restaurant by
sending questionnaires in the form of Google Form via Facebook. If they have
experienced the fast-food restaurant service at least once, they were asked to fill in the
form and submitted to the investigator. The structured questionnaire included 2 sections.
Section 1 contains eight demographics items. Section 2 contains 25 items adapted from
the survey instrument developed by Ryu et al. (2012) The attendees were asked to rate
how they felt when the use fast-food restaurant using a 5-point Likert scale (1 - “strongly
disagree”, 5 - “strongly agree”).
 7.2. Qualitative research
Collected data was codified and SPSS version was used to analyze the data.
Descriptive and inferential statistics were calculated and conclusions drawn from the data
analysis.
- Reliability statistics (Cronbach’s alpha):
A scale with Cronbach's alpha of 0.7 or more is usable. The items having the
Cronbach's alpha less than 0.3 will be disqualified
- Exploratory factor analysis (EFA):
Used to summarize data after evaluating the reliability of the scale with
Cronbach’s alpha coefficient =s and eliminating unreliable variables. When the KMO
(Kaiser – Mever – Olkin) value is about 0.5 – 1, the analysis is considered to be suitable.
- Regression analyses: to prove the match with model.
- Bivariate correlations:
Correlation coefficient Pearson (r) measures the degree of linear correlation
between two variables. Pearson's correlation coefficient will get a value in the range (-1;
1). When r> 0 represents a positive correlation between two variables (if the value of one
variable increases, it increases the value of the other and vice versa),
When r <0 represents a negative correlation between the two variables (If the
value of one variable increases, it will decrease the value of the other variable and vice
versa).
The higher the absolute value of r, the greater the degree of correlation between
the two variables, or the more consistent the data is with the linear relationship between
the two variables. The value "r = +1" or "r = -1", shows that the data is perfectly suited to
the linear model.
- Regression analyses:
SPSS was used to test the six hypotheses of this analysis using backward
elimination multiple regressions.
 7.3. Research process
The topic will take turns performing the steps in the diagram below. First, the
author will be giving the reasons for choosing the topic, the research objective, and the
research question. Then exploit the theoretical basis, proposed research model,
hypotheses from which to build a preliminary scale. Finally, ending with the conclusion
that how fast-food restaurant service quality and its dimensions influence on customer
perceived value, satisfaction and behavioural intentions.

Objaectives of the study

Theoretical basis

Proposed research model

Research design
Qualitative research (making a survey
with students and friends about their
feelings when they are using the service at
a fast food restaurant
Quantitative research (questionnaire
design and data collection)

Cleaning research results

Discuss research results

8. The structure of the thesis
The expected structure of the thesis includes 5 chapters:
1. CHAPTER 1: GENERAL
1.1. Reason to choose the topic
1.2. Research question
1.3. Purpose of research
1.4. Subject and scope of research
1.5. Research method
1.6. Research signification
1.7. The structure of topic
2. CHAPTER 2: LITERATURE VIEW AND RESEARCH MODEL
2.1. Literature view
2.2. The previous studies
2.3. The hypothesis
2.4. The proposed model
2.5. Summary of chapter 2
3. CHAPTER 3: RESEARCH METHOD
3.1 Methodology of research
3.2 The source of data
3.3 Summary chapter 3
4. CHAPTER 4: ANALYSIS OF RESEARCH MODEL
4.1 Sample information
4.2. Variable statistics
 4.3. Model estimator
4.4. Hypothesis test results
4.5 Summary chapter 4
5. CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS
5.1. Summary of research results
5.2. Implications for enterprises
5.3. The following limitations and suggestions

9. Timeline
No. Content Task Time
Overview of theoretical 19/04/2021-
1 Detailed outline
basis and research model 26/04/2021
Chapter 1: Overview
Chapter 2: Literature review Modified from detailed 26/04/2021-
2
and research model outlines. 02/05/2021
Chapter 3: Methodology
Chapter 4: Analysis of Data analysis through SPSS 04/05/2021-
3
research model software 11/05/2021
Provide comments and
Chapter 5: Conclusion and 12/05/2021-
4 recommendations from the
recommendation 15/05/2021
results of the study
5 Submit and defend thesis 17/05/2021
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