ABSTRACT
The
researcher examines the determinants of customer patronage of fast-food firms
in Umuahia, Abia state, Nigeria. Data were obtained from the use of a
structured questionnaire which was distributed to 382 respondents. Probit
regression model and descriptive statistics were used for data analysis.
However, the outcome of regression analysis in the study showed a positive and
strong relationship between food quality and customer patronage. It was also
concluded that a restaurant image exerts significant effect on customers’
patronage. The researcher recommends that fast-food management should opt for a
trendy and classy image to attract consumers who are concerned about their
personal image when dinning out. The researcher also recommends that management
should seek to determine how to allocate their efforts and resources.
TABLE OF CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
List of tables vi
Table of content vii
Abstract ix
CHAPTER ONE:
INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 3
1.3 Objective of the Study 4
1.4 Research Questions 5
1.5 Hypothesis 5
1.6 Significance of the Study 6
1.7 Scope of the Study 6
1.8 Limitations of the Study 7
CHAPTER TWO: REVIEW OF RELATED
LITERATURE
2.1 Conceptual Framework 8
2.1.1 The Trend in Fast-Food Industry in Nigeria and
International World 8
2.2 Theoretical Framework 10
2.2.1
Theories on Customer Patronage 10
2.3 Empirical Review 12
2.4 Determinants of Customer Patronage 14
2.4.1
The Concept of Food Quality 14
2.4.2 The Concept of Perceived Value 16
2.4.3
The Concept of Service Quality 18
2.4.4 The
Concept of Restaurant Image 19
2.4.5 The
Concept of Environment 20
2.4.6 The
Concept of Price 21
2.4.7 The
Concept of Cleanliness 22
2.4.1 Effect
of Food Quality on Customer Patronage 23
2.4.2 Effect
of Perceived Value on Customer Patronage 24
2.4.3 Effect
of Service Quality on Customer Patronage 26
2.6 Benefits
of Customer Patronage for Fast-Food Firms 27
CHAPTER THREE:
RESEARCH METHODOLOGY
3.1 Research Design 29
3.2 Area of Study 29
3.3 Population of the Study 30
3.4 Sample Size and Sampling
Procedure 30
3.5 Method of Data Collection 31
3.6 Validity of the Instrument 31
3.7 Reliability of the Instrument 32
3.8 Method of Data Analysis 32
3.9 Model Specification 33
3.9.1
Decision Rule 35
CHAPTER FOUR:
PRESENTATION OF DATA AND ANALYSIS 36
CHAPTER FIVE:
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1
Summary of Findings 47
5.2
Conclusion 48
5.3
Recommendation 49
References 51
Appendix
1 54
LIST OF TABLES
Table 4.1
The Socioeconomic Characteristics of Respondents 36
4.1:1 Age of respondents 36
4.1:2 Sex of the
respondents 36
4.1:3 Marital status of
respondents 37
4.1:4 Educational
background of the respondents 37
4.1:5 Occupation of
respondents 37
4.1:6 Average monthly
income of respondents 38
Table 4.2 To
ascertain the effect of food quality on customer patronage
Regression
analysis showing the effect of food quality on customer
patronage 38
4.2:7 Model Summary 39
4.2:8ANOVAb 39
4.2:9Coefficientsa 39
Table 4.3 To
examine the effect of Restaurant image on customer patronage
Regression
analysis showing the effect of restaurant image on customer
Patronage 40
4.3:10Model Summary 40
4.3:11ANOVAb 40
4.3:12Coefficientsa 41
Table 4.4 To
examine the effect of firm environment on customer patronage
Regression
analysis showing the effect of firm environment on customer
Patronage 42
4.4:13Model Summary 42
4.4:14ANOVAb 42
4.4:15Coefficientsa 42
Table 4.5
Key Determinants of Customer Patronage 44
4.5:16 The probit
regression table below shows the key determinant of
Customer patronage 44
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
There is a
perceived increase in the number of fast-food restaurants that spring up in
every city in Nigeria. Thus, suggesting that the sector is gaining acceptance
among consumers. Tabassum and Rahman (2012) argued that the popularity of
fast-food restaurant in every growing city of the world is a product of the
effect of globalization. Thus, every segment of the society now consumes
fast-food. According to Ahmed,et al(2008),
consuming fast-foods has become a recent trend among upper society, teenagers
and youths have also increased and the fast-food has won the palate of those
groups. Park (2004) viewed, eating at fast-food restaurants not only help
consumers to satisfy their hunger, but it also creates need for convenience,
pleasure entertainment, time saving, social interaction and the mood
transformation. Besides, consumers experience excitement, pleasure and a sense
of personal well-being in visiting fast-food restaurantsPark, (2004).
Carew (2010) averred that the hectic lifestyle
of many Nigerians does not allow the luxury of home cooked meals. The reason
being that fast-food is convenient and readily available; it has become the
choice of many young adults and upwardly mobile individuals. In the same vein,
industry players have gone beyond serving quick foods like snacks to venturing
into African delicacies. This strategy of capturing more markets has expanded
the customer base of fast-food firms over the past few years.
Despite the perceived
acceptance of fast-food restaurants in the Nigeria environment, consumers are
now beginning to be choosy in the aesthetics, product and service received from
fast-food restaurants. Amold, et al(1983)
asserted that location, price, assortment, fast checkout, friendly and
courteous service and pleasant shopping environment were critical determinants
of store patronage. Arguably these factors may influence consumers’ decision to
visit a fast-food restaurant. Fast-food restaurants are said to have their own
benefits, which their customers perceive, (Liu and Jang (2008).
These perceived
benefits are the primary reasons why fast-food restaurants are patronized. Liu et al (2000) viewed that, the relative
importance customers attach to individual benefits can differ significantly and
these can be used as effective measurement in segmenting the markets. Markets
consist of various buyers and buyers who differ in one or more aspects. They
may differ in their wants, resources, geographical locations, buying attitudes,
lifestyles, and buying practices. Intuitively, the choice of consumers visiting
a fast-food restaurant hinges on Identifiable factors peculiar to an
environment which need to be ascertained. Most of the research, concerning the
selection of restaurants is based on identification of determinant attributes
Bojanic, (2007).
1.2 Statement of the Problem
This
study was informed by the perceived growing trend of visiting fast-food
restaurants by individuals, households and friends in Nigeria. With increased
competition among fast- food restaurants and the growing health consciousness
of consumers, the consumers are now beginning to be choosy in the aesthetics,
product and service received from fast food restaurants (Tabassum and Rahman.
2012; Nezakatl, Kuan and Asgarl, 2011). A lot of studies have been carried out
on fast food restaurants from different stand point and perspectives (UKessay,
2013; Carew, 2010; Park, 2004; Lowenstein. 1995) and each profiling different
factors influencing customers repurchase intention (Ahmad, Ghazall and Othman.
2013; Akbar and Alaudeen, 2012). Factors ranging from food quality, Service
quality, Environment, Price, Quick service (Akbar and Alaudeen. 2012; Tabassum
and Rahman, 2012; Tat , Sook-Min, AI-Chln, Rasll and Hamid, 2011 ), Restaurant
image (Ling, Mun and Ling, 2011) and fast-food store image factors, consumers'
values of eating-out, consumers' opinions about the globalisation (Ibrahim and
Vignali, 2005) have been considered to influence consumers patronage of fast-food
restaurants in regions with different cultural, environmental and socio
economic backgrounds. Findings from studies show different results among
researchers, thus engendering and informing different growth policy
implications. Supporting this view, Tabassum and Rahman (2012) noted that
pattern of food consumption may vary due to the differences in culture,
climate, socioeconomic status, etc. In fact, the habit of taking food among the
inhabitants of a country may change due to several factors. Therefore in order
to bridge the literature gap, this study investigates the determinants of
customer patronage towards fast-food restaurants in Abia state, Nigeria.
1.3 Objective of the Study
The broad
objective of this study will be to determine the factors that influencecustomers’
patronage of fast-food restaurants in Abia state, Nigeria. The specific
objectives will be to;
i.
identify the socio-economic
characteristics of consumers of fast-food firms.
ii.
examine the effect of food quality on
customer patronage for fast-food firms.
iii.
examine the effect of restaurant image
on customer patronage for fast-food firms.
iv.
ascertain the effect of firm environment
on customer patronage for fast-food firms.
v.
to estimate the determinants of customer
patronage for fast-food firms.
1.4 Research
Questions
i.
What are the socio-economic
characteristics of fast-food consumers in Abia state?
ii.
What effect does food quality have on
customer patronage of fast-food firms?
iii.
What effect does restaurant image have
on customer patronage for fast-food industry?
iv.
What effect does the environment have on
customer patronage for fast-food firms?
v.
What are the determining factors that
predict customer patronage in the context of Nigeria fast-food firms?
1.5 Hypotheses
H01: There is no significant effect of food
quality on customer patronage for fast-food firms.
Ho2:
There is no significant effect of
restaurantimage on customer patronage for fast-food firms.
Ho3: There
is no significant effect of determining factors that predict customer patronage
in fast-food firms.
1.6 Significance
of the Study
This study will
be beneficial to students, academics, policy makers and customers of fast food
restaurants in Abia state. For students, the findings of this study will serve
as a guideline for other scholars who might be interested in carrying out
further research in fast food restaurants in Abia state. It will also help to
fill the gaps in the already existing literature on determinants of customers’
patronage of fast-food restaurants. For academia, it will help stimulate
further research in this area of study because of the effect of globalization
on all aspect of human activity. The study will be helpful to government and
policy makers to formulate policies that will enhance and regulate the
establishment and operating of fast-food restaurants in Nigeria.
1.7 Scope of the Study
The study
focuses on investigating customer patronage for fast-food industry in Nigeria:
Study of selected fast-food firms in Abia state, Nigeria. Specifically, the
study provides empirical evidence on factors that influence the behaviour of
consumers towards patronising the fast-food restaurants in Abia state and also
determine the effect and nature of relationship between these factors and the
behaviour of consumers towards patronising the fast-food restaurants in
Umuahia, Abia state.
1.8 Limitations of the Study
The study is limited in scope because it
did not cover all the fast-food firms in Umuahia, Abia State. Also the
researcher was constrained by time and resources. This is because the study was
not sponsored and that the researcher who was a student was to meet a narrow
deadline for the submission of the study report. Also, the data obtained from
the respondents was in the shape of perpetual measures (Likert Scale).
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