Effect of Service Quality on Customer Loyalty in the Fast-Food Industry: A Perspective from University Students in Hangzhou City, Zhejiang Province, China

Abstract

This research “Effect of service quality on customer loyalty in the fast-food Industry: A perspective from university students in Hangzhou City, Zhejiang Province, China” aimed to achieve 2 main objectives: 1) to examine the level of service quality and customer loyalty in the fast-food industry from the viewpoint of university students in Hangzhou City, Zhejiang Province, China; and 2) to analyze the impact of service quality on customer loyalty in the fast-food industry from the perspective of university students in the same area. Quantitative research methods were employed, involving the collection of data from 400 customers of both Western and local fast food, primarily university students who patronized such establishments in Hangzhou. Data analysis encompassed descriptive statistical techniques such as frequency, percentages, mean, and standard deviation, as well as inferential statistics including correlation and linear regression analysis. The research findings unveiled several key insights: Firstly, among the dimensions of service quality, “opening hours convenience” emerged as the highest-rated, indicating significant satisfaction among customers. Additionally, dimensions such as tangibles, reliability, and assurance consistently received high scores, whereas responsiveness and empathy exhibited some variability. Regarding customer loyalty, the dimension of “preference over promotions” garnered the highest rating, suggesting a strong inclination towards particular brands. However, dimensions like “actively recommending” and “ongoing interest” scored lower, indicating areas for potential enhancement, particularly in terms of word-of-mouth marketing and sustained customer engagement. Secondly, the study identified that in both Western and local fast food sectors in Hangzhou City, Zhejiang Province, China, dimensions such as tangibles, assurance, and empathy exerted a positive influence on customer loyalty. However, the dimensions of reliability and responsiveness did not demonstrate significant effects. While students displayed trust in the quality of fast food offerings, opportunities for enhancing word-of-mouth promotion were identified to further bolster loyalty. Despite the availability of promotional offers, students tended to exhibit loyalty to their preferred fast food brands over time, indicative of a high level of stability and continuity within the university student market. However, it is worth noting that external factors such as shifts in students’ life stages and adjustments in their dietary habits may have influenced their attention and support towards fast food establishments.