The influence of service quality, fair price and restaurant environment on customer loyalty in the restaurant’s industry at Ho Chi Minh City after Covid-19 pandemic

Abstract

The purpose of this research is to examine the influence of Service Quality (SQ), Fair Price (FP) and Restaurant Environment (RE) on Customer Loyalty (LOY), via the mediating role of Customer Satisfaction (SAT) in the context of the restaurant industry at Ho Chi Minh City after Covid-19 pandemic, by interviewing 385 customers at medium size restaurants. Structural Equation Modeling (SEM) was used to test hypothesis relationships. The outcome of this research shows that factors affecting SAT positively, by decreasing the importance: SQ, RE, and FP. In contrast, SAT also leads to LOY. Moreover, SAT significantly mediates the association among SQ, FP, RE, and LOY. The restaurant operators need to consider that good quality of service, fairness in price, pleasant and attractive restaurant the environment can increase customer satisfaction, which often contributes to customer loyalty