ABSTRACTS
The aim of this study
is to examine the factors influencing customers’
patronage in restaurants and the objectives of the study was to identify
factors influencing customers’ patronage in restaurants, to determine how the
factors influence customers’ patronage in restaurants, and to recommend some
likely solutions for the improvement of customers’ patronage in restaurants. A moderate sample size of 187 respondents was conveniently selected out
randomly from the entire population of residents in Lagos State and a
well-structured questionnaire which was converted to Google form in order to get
across to respondents due to COVID-19 pandemic, was used to collect
data from the respondents;
also the collected data were presented by the use of
frequency tables and percentages, grand mean and charts, while Chi-square test
was used to analyze stated hypotheses at 0.5 probability level of significant. The findings of this
study revealed that factors such as quality of food, quality of service,
physical environment, satisfaction rate of customers, and cleanliness of the restaurants
are influencing customers’ patronage in restaurants. The study therefore
concluded that solutions such as sanitization of the surrounding environment of
restaurants, encouragement of promos, discount packages as added value to
customers, proper sitting arrangement and good service quality will help
improve customers’ patronage in restaurants. The study therefore recommended
that restaurants should pay attention to their physical environment, proper
layout and seating arrangement as this will have an impact on customers’
patronage.
TABLE OF CONTENTS
Title i
Acknowledgements ii
Certification iii
Dedication iv
Tables of Contents v
List of Tables vii
List of Figures viii
Abstract ix
CHAPTER ONE: INTRODUCTION
1.1 Background
of the study 1
1.2 Statement
of the problem 4
1.3 Objectives
of the study 4
1.4 Research
Questions 5
1.5 Research
Hypotheses 5
1.6 Scope
of the Study 5
1.7 Significance
of the study 6
1.8 Definition
of Terms 6
CHAPTER TWO:
LITERATURE REVIEW
2.1 Conceptual
framework 7
2.2 Empirical
framework 21
CHAPTER THERE:
RESEARCH METHODOLOGY
3.1 Introduction 25
3.2 Research
design 25
3.3 Area
of study 25
3.4 Population
of the study 26
3.5 Sample
Technique 26
3.6 Sample
Size 26
3.7 Research
Instrument 26
3.8 Validation
of Instrument 27
3.9 Method
of Data Collection 27
3.10 Method
of Data Analysis 27
CHAPTER FOUR:
DATA ANALYSIS AND INTERPRETATION
4.0 Introduction 30
4.1 Analysis
of Questionnaires 30
4.2 Presentation
of Findings 33
4.3 Test
of Hypotheses 39
4.4 Discussion
of Findings 40
CHAPTER FIVE:
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction 42
5.2 Summary
of findings 42
5.3 Conclusion 42
5.4 Recommendations 43
5.4 Suggestions
for Further Research 43
REFERENCES
APPENDIX I
Section A
Section B
LIST OF TABLES
Table 1: Presentation of Demographic data
Table 2: Respondents
patronage response of restaurants in their area
Table 3: Response
on duration of patronage
Table 4:
Response on how appetizing
and delicious restaurants food is
Table 5: Response on respondents recommendation opinion to friends
and relatives
Table 6:
Distribution Of Responses
On Factors Influencing Customers’ Patronage
Table 7:
Distribution Of Responses
On How The Factors Influences Customers’ Patronage
Table 8:
Distribution Of Responses
On The Likely Solutions For Improvement Of Customers’ Patronage
LIST OF FIGURES
Fig. 1: Chart showing the responses base on factors
influencing customers’ patronage
Fig. 2: Chart showing the responses respondents on
how the listed factors influences customers’
patronage
Fig.
3: Chart showing the responses of
respondents on the likely solutions for improvement of customers’ patronage
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Globally, there is a growing demand for food away
from home as a result of higher incomes, changes in consumption patterns,
changes in household composition, and the time pressures created by dual
working families. The food service industry has become highly competitive as
the number of food service outlets has increased to meet the demand. In order
to succeed in such a competitive industry, restaurant operators need to
understand the factors and their relative importance that influence restaurant
patrons’ decision. The restaurant industry is significant and growing aspect of
the overall restaurant industry. In order to maintain long-term success, quick
service restaurants must be perceived as offering sufficient value for
customers.
In order to achieve this, restaurant management must
first determine what consumers’ value in a quick service restaurant experience.
As the number of restaurants increase, people have many options for choosing a
restaurant. A food restaurant is characterized as quick services of franchise
restaurant chain, which supplied the food quickly after ordering the minimal
service offering for dinning activities.
However, no matter how quickly a food service is
delivered, if the food quality is not good enough, it will not attract the
required patronage from the customers. Hence, the importance of good food
quality in influencing restaurant guest patronage cannot be over emphasized.
Food quality is one of the most important determinants of customer satisfaction
and patronage in the restaurant industry (Ahmed, 2015). Studies have identified
food quality, service quality and ambience as major factors that determine
restaurant service quality (Dutta et al, 2013; Perutkova & Paras, 2010; Ryu
& Han, 2010; Ryu & Jang, 2007). Furthermore, food quality was found to
significantly affect customer satisfaction and behavioural intentions and was
rated as the most important attribute influencing restaurant decisions in many
studies on consumer’s restaurant selection behavior (Namkung & Jang, 2007;
Soriano, 2002; Sulek & Hensley, 2004).
Also, if guests are satisfied with food and service
quality they receive in a restaurant, they will likely communicate positively
about the restaurants, revisit the restaurant and subsequently contribute to
the profitability of the restaurant. Quality food can in brief be described as
food that is well presented, fresh and tasty. In research carried out by
Namkung and Jang (2008), they identified food presentation and taste as the
most influential food quality factors, whereas Ha and Jang (2012) identified
food variety as the most important contributor. They further opined that those
customers who perceived the quality of food they received in a restaurant as
good were more inclined on spreading positive word-of-mouth and patronizing the
restaurant.
Onu (2005) “describes a consumer as a particular
individual who makes a conscious decision to purchase goods or services from
and patronize a particular firm or shop”. The attributes of a consumer include;
freedom of choice in the purchase decision, conscious exercise of that choice
which results in the selection of certain goods and services and the rejection
of others, involvement at the point of service delivery, and continuous
patronage of a particular shop or outlet.
Choice of preference for opportunity cost of
products by individuals and groups enlarges so much in time and occasionally
individual interests clash. The wasted time in decision making by individuals
and groups and their willingness to part with their money is a big setback on
sales and performance. The major decision a buyer makes in a group and how his
choice influences others is a problem in consumer behaviour. Consumer choice is
the totality of consumers’ decisions with respect to the acquisition,
consumption, and disposal of goods and services.
According to Macinnis and Hoyer (2008), it involves
more than just the way that a person buys tangible products. It also includes
consumers’ use of services, activities, experiences and ideas. The challenge of
getting the attention of and remaining in the mind of the consumers have
steadily increased, requiring organizations to create nicely planned and
comprehensive marketing communication programmes in order to achieve
organisational objectives. All marketing efforts should be, consumer focused,
consumer centric, consumer oriented, and consumer obsessed, backed by
integrated marketing communications aimed at generating consumer satisfaction
as the key to satisfying organizational goals.
For a restaurant business to succeed in a
competitive market where different brands compete for patronage and guests have
freedom of choice, coupled with high running costs, there is need for proper
understanding of what the consumers need, want, and what they feel about the
company’s products and services. Organizations are required to be
consumer-oriented and quality focused on utility creation to satisfy consumer’s
needs (Eze, Nnabuko and Beredugo, 2014).
Accordingly, Arnold, Tae, and Douglas (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 customers’ decision
to visit a restaurant. Restaurants are said to have their benefits, which their
customers perceive. According to Liu and Jang (2008), these perceived benefits
are the primary reasons why fast-food restaurants are patronized.
1.2
STATEMENT OF THE PROBLEM
The hospitality industry is known to be a very
important sector of any community, and with an increase in the number of
restaurants in different community, competition has seen to grow between them.
Over the years there has been an increase in food restaurants and this has
grown a health conscious concern for customers, who are now selective of the
product and service they received from restaurants. Authors such as UKessay (2013),
Carew (2010) and Park (2004) have carried out researches on restaurants from
different point of view with each of them pointing to different factors
influencing customers’ patronage in restaurants. Different opinions have been
made by researchers globally on the patronage of customers in food restaurants
in different regions, but little researches has been carried in Nigeria; and
this therefore inspired this study to investigate the various factors
influencing customers' patronage of restaurants in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The aim of this
study is to examine the factors influencing customers’ patronage in restaurants.
The objectives
of the study are:
1.4 RESEARCH
QUESTIONS
The following research questions are to be answered
in this study:
iii.
What are the
likely solutions for the improvement of customers’ patronage in selected
restaurants?
1.5 RESEARCH
HYPOTHESES
Hypothesis one:
Ho:
There are no factors influencing customers’ patronage in restaurants
H1:
There are factors influencing customers’ patronage in restaurants
Hypothesis two:
Ho:
Food quality, restaurant image, service
quality, atmospheric quality, quick service, and environment has no
significant influence on customers’ patronage.
H1:
Food quality, restaurant image, service
quality, atmospheric quality, quick service, and environment has
significant influence on customers’ patronage
1.6
SCOPE OF THE STUDY
The
scope of study is limited to the factors
influencing customer’s patronage by focusing on customers of different
restaurants in Lagos State within a cross-sectional period of 6-8months.
1.7 SIGNIFICANCE OF THE STUDY
The reason for
this study is mainly to understand the underlying factors that influence customer’s patronage. The
study will review these factors from the perspective of the customers.
Information
obtained from this study will help hospitality industries to address the
fundamental elements that act as barriers to customers’ patronage. It will also
help the service providers at the facility level to develop strategies and
action plans that will encourage improved customers’ patronage in the
establishment.
Also,
it will help researchers with more information on the factors influencing
customers’ patronage in organizations. This research will also serve as a
resource base to other scholars, governments and investors.
1.8 DEFINITION
OF TERMS
Factor: This is a
circumstance, fact, or influence that contributes to a result.
Influence:
This is the capacity to have an effect on the character, development, or
behaviour of someone or something, or the effect itself.
Customers:
This is a person who buys goods or services from a shop or business.
Patronage:
This is the regular custom attracted by a shop, restaurant, etc.
Restaurants:
This is a place where people pay to sit and eat meals that are cooked and
served on the premises.
Guest: This is a
person who is invited to visit someone's home or attend a particular social
occasion.
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