A study on the moderating role of kitchen holdings' loyalty card in the causal relationship of customer satisfaction and customer loyalty

Date of Publication

2012

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Business Management

Subject Categories

Business Administration, Management, and Operations

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Thesis Adviser

Maria Victoria Tibon

Defense Panel Chair

Harvey Ong

Defense Panel Member

Delfin Mauricio

Abstract/Summary

In an effort to study the impact of loyalty programs on increasing customer loyalty, this study aims to analyze how the Kitchen Holdings’ Loyalty Card moderates the causal relationship of customer satisfaction and customer loyalty. A survey was pretested by computing its Cronbach alpha, and conducted in at least one of the 8 restaurant brands under Kitchen Holdings, which has a total of 38 branches.

Based on the loyalty model of Uchida (2007), as well as the service quality model by Storbacka, Strandvik, and Grönroos (1994), the proponents proposed a similar, simpler loyalty model that comes from a modification of the two. It was first hypothesized that customer satisfaction leads to customer loyalty, and second, that customer loyalty among satisfied customers is greater among those with loyalty cards than those without loyalty cards. Biserial correlation was first applied to determine the nature and strength of the relationship between the constructs of customer satisfaction and customer loyalty, while simple regression was applied to determine the measure of that strength as well as test the first hypothesis. The ttest was applied to test the second hypothesis and determine if there was a difference in the loyalty among satisfied customer group who owned the card, and the satisfied group who do not have the card.

The results accepted the first hypothesis, but rejected the second. Although this confirmed that customer satisfaction leads to customer loyalty, it does so on but a small magnitude, thereby implying other factors that account for customer loyalty, or what makes customers make repeat visits. The second hypothesis was rejected as there was no difference in loyalty among satisfied customers. However, once the t-test was applied to data that included both satisfied and dissatisfied customers, the resulting difference implied that the loyalty program works to convert dissatisfied customers to satisfied ones. It should be noted that the measure used to identify dissatisfied customers indicated that they were not completely dissatisfied, thus giving a better probability towards conversion.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU16706; CDTU016706

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

1 computer disc ; 4 3/4 in.

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