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Business&ManagementResearchProject
“Doesbrandingnowhaveasbiganimpactoncustomerloyaltyaspriceandqualitywithin
therestaurantindustry?”
AndrewTolkienStudentNumber:270602
SubmissionDate:27thApril2016WordCount:9847
Identifyingthetruedriversofcustomerloyaltywithintherestaurantindustry
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Abstract Purpose:Thepurposeofthisreportwastoexaminetheimpactthatbrandinghasonloyaltyandcompareittotheimpactofthetraditionalsatisfactionfactorswiththeindustry,priceandfoodquality.Withbrandingbecominganincreasinglypertinenttopicwithinthe21stcenturyduetotheimpactofsocialmediamarketing,itwasvitaltoconsidertheimpactitcanhavewithinthisindustry.Therestaurantindustrywaschosenasthesubjectindustryasitisconsideredoneofthehardestindustriestoachieveloyaltyinduetotheimmensevarietyavailabletocustomers.Methodology:Toanswerthekeyresearchquestion,4researchobjectiveswereformedtomakethesubjectmoremanageable.Afullliteraturereviewwasperformedontheavailableliteraturewithintherelevantfieldsofresearchforthissubject.Followingtheliteraturereview,questionnaireswereansweredbyatotalof78people,andinterviewswereconductedwith10peopleinordertogainanideaaboutcustomers’opinionsonthedriversofcustomerloyalty.ThefindingswereanalysedalongsidetheexistingtheoriespresentedintheliteraturereviewtofindaconclusiontothekeyquestionFindings:Theprojectreachedanunderstandingthatbrandingplaysanequalroleinbuildingcustomerloyaltytopriceandquality.Thiswasduetothefactthatbothsatisfactionfactors,e.g.priceandquality,andstrongbrandingarerequiredforacustomertoreachanoptimumstageofloyaltyandbetotallybrandloyal.
Acknowledgements IwouldliketothankmydissertationtutorNasirSalariforhissupportandguidanceduringtheformationofthisresearchproject,hisknowledgeandinsighthelpedtoimprovethequalityofthisproject.SecondlyIwouldliketothankmyfriendsandfamilyfortheirconstantsupportandguidancethroughoutthisproject.FinallyIwouldliketothankthosewhotookthetimetobequestionnaireandinterviewsubjects,thisprojectwouldhavebeenimpossibletocompletewithoutyourinput.
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Table of Contents
ABSTRACT 2
ACKNOWLEDGEMENTS 2
1 .0 INTRODUCTION 5
2.0 RESEARCH AIMS AND OBJECTIVES 6
3.0 LITERATURE REVIEW 7
3.1 EXPLORING LOYALTY 73.2 DEFINING A BRAND 83.3 BRAND EQUITY 103.4 THE SOCIAL MEDIA EFFECT 123.5 CONCLUSION 13
4.0 METHODOLOGY 13
4.1 RESEARCH COLLECTION METHOD 134.1.1 QUESTIONNAIRE 134.1.2 INTERVIEW 144.1.3 MIXEDMETHODSAPPROACH 144.2 PARTICIPANTS 154.2.1 SAMPLING 154.2.2 ETHICALISSUES 154.3 PROCEDURE 164.3.1 RELIABILITYANDVALIDITY 164.3.2 DATACOLLECTIONDETAILS 164.3.3 DATAANALYSIS 16
5.0 FINDINGS 17
5.1 QUANTITATIVE DATA 175.1.1 LOYALTYBASEDFINDINGS 175.1.2 BRANDINGBASEDFINDINGS 185.1.3 SOCIALMEDIAFINDINGS 215.2 QUALITATIVE DATA 225.3 GAINING QUANTITATIVE DATA FROM QUALITATIVE 27
6.0 DISCUSSION 286.1 IF LOWER PRICES AND HIGHER QUALITY DO INCREASE CUSTOMER LOYALTY, WHY DO CUSTOMERS STILL GO ELSEWHERE? 286.2 DO CUSTOMERS SEE THEMSELVES AS DIRECTLY AFFECTED BY THE BRANDING OF A RESTAURANT? 296.3 ARE CUSTOMERS MORE LIKELY TO REMAIN LOYAL TO A COMPANY BRANDED IN A POSITIVE WAY? 316.4 HAS SOCIAL MEDIA HAD AN IMPACT ON EATING HABITS? 326.5 OTHER FINDINGS OF INTEREST 336.6 “DOES BRANDING NOW HAVE AS BIG AN IMPACT ON CUSTOMER LOYALTY AS PRICE AND QUALITY WITHIN THE RESTAURANT INDUSTRY?” 336.7 FURTHER RESEARCH RECOMMENDATIONS 34
7.0 REFERENCES 35
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1.0 Introduction Thecreationandmaintenanceoflong-termcustomerrelationshipsissomethingthatallrestaurantsstrivetoachieve(Liuetal,2014).Foralong-termrelationshipbetweenaconsumerandarestauranttoexist,theconsumermustfeelsomeformofloyaltytowardstherestaurant.Thiscreationofloyaltywill,inturnleadtorepeatcustomandpositivewordofmouthneededforapotentiallysuccessfulventure(Sun&Lin,2010).Itmakessensetherefore,forrestaurantstodoalltheycantomaximizethelevelsofloyaltytheircustomersfeeltowardsthem.Therestaurantsectorsturnoverincreasedto£21.6bnin2014,anenormousincreaseof39%since2010’sfigureof£15.5bn(Shubber,2015).Thisgrowthinthesectorcanbeattributedtomanythings;changesinlifestylehabits,fastgrowthindisposableincome,aboomin‘fastcasual’restaurants,andafeelgoodfeelingthat’sbeginningtoemanateacrossthecountry(Shubber,2015).Changesinlifestylehabitshaveseenamassive75%offamilieseatoutinrestaurantstogethermorefrequentlythantheydidfiveyearsago(Eversham,2015)Thisreportwillexplorethecommonthemesassociatedwithbuildingcustomerloyaltyandalsolookatnewtrendsinconsumerbehaviorrelatingtoloyalty.Thepurposeofthisresearchistoidentifythetruebasisofcustomerloyaltyinmodernsociety,whetherpriceandqualityareallimportantorwhetherbrandingisadominantforce.Costandqualityhavelongbeenassociatedasthekeydriversincustomerloyaltyintherestaurantindustry,thisisdueto‘thelevelofsatisfaction/dissatisfactionexperienced’acustomerfeelsafterweighingupthe‘perceivedvalue’aftertakingintothe‘quality’and‘price’(Iglesias&Guillen,2004).Thisperceivedvalueandsatisfactionwouldthen,intheory,determinethecustomer’slikelihoodofreturningandbecomingaloyalcustomer.However,itcouldbearguedthatinthemodernworld,brandinghasanequalimpactoncustomerloyalty,anditisthisthatwillbeexploredinthisresearchproject.Toexploretheimpactofbrandingwemustalsoexploretheimpactofsocialmediaonthebrandingandsuccessofrestaurants.Socialmediaisbecominganincreasinglyimportantissueforrestaurantstoconsider,thisisduetoa‘positivecorrelation’‘foundbetweenarestaurant’srevenuesanditssocialmediareviews’(Windels,2012).Thisimpactismeasurable,asanincreaseofratingbyjustonestaronreviewsitessuchasYelphavebeenfoundtoleadtoanincreaseinrevenueof‘between5and9percent’(Weber,2011).Fromthiswecanbegintounderstandthegrowingimportanceofsocialmediafortherestaurantindustryandhowitcanaffectabrand. Thereasonforthisresearchisprimarilyderivedfromthegrowthof‘fastcasual’restaurantsintheUKsuchasNando’s,GourmetBurgerKitchen,andFrankieandBenny’s.Thepremiseoftheserestaurantsistodeliversitdownrestaurantqualitywiththespeedoffastfood(Shubber,2015).Nando’s,inparticularisthemostsuccessfulinthismarket,andhavecreatedanincrediblyloyalcustomer
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basethroughspecificandtargetedsocialmediamarketing.‘Restaurantsinthe'”fastcasualsector”haveanaverage“revisitintent”(definitelyorwillprobablygoagain)of69percent.Nando’shasa'revisitintent’of80percent’(Brown,2013).ThespeedatwhichNando’shavegrownwithinthelast15yearsfromalossmakingtakeawayrestaurant,intoasuccessfulfastcasualrestaurantthatisalmostingrainedinteenagecultureisimpressive.Thekeytotheirsuccesshasn’tjustbeenabouttraditionalrestaurantloyaltyfactorssuchasqualityandprice,butalsoheavilyreliantonanincrediblystrongbrandimage.(Brown,2013).ItisthisimpressivebrandingthathasgainedNando’ssuchaloyalfollowing,anditbegsthequestionastowhetherbrandnowhasasbiganimpactonloyaltyastheproductprovided.Withtherestaurantindustrygrowingatsuchapace,itisimportantthatloyaltyisformedtocapitaliseontheexpandingmarket.Inordertodothis,chainrestaurantsneedtounderstandthekeyfactorsthatcanincreasethelikelihoodofcustomersformingapositivelong-termrelationshipwiththem.Withbrandingpotentiallybeingalargefactorinthisformation,researchneedstobeconductedinordertoestablishthetruecausesofloyaltyamongstcustomers.
2.0 Research Aims and Objectives Basedupontheacademicliteratureavailableandlackofresearchsurroundingthisarea,thefollowingresearchquestionhasbeendevised:“Doesbrandingnowhaveasbiganimpactoncustomerloyaltyaspriceandqualitywithintherestaurantindustry?”Thisquestioncanbebrokendownintoaseriesofsub-questions,whichwillhelptoorganiseandfocustheresearch.Theseareasfollows
• Iflowerpricesandhigherqualitydoincreasecustomerloyalty,whydo
customersstillgoelsewhere?
• Docustomersseethemselvesasdirectlyaffectedbythebrandingofarestaurant?
• Arecustomersmorelikelytoremainloyaltoacompanybrandedina
positiveway?
• Hassocialmediahadanimpactoneatinghabits?Theseresearchobjectiveswillbeachievedthroughareviewofthecurrentavailableliteraturesurroundingthetopicinfocusandthroughthecollectionofprimarydata.Analysisoftheliteratureandtheprimarydatawillbeperformedtoestablishanypatternsandvarianceswithinthedata,andconclusionstotheresearchobjectiveswillthenbeapplied.
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3.0 Literature Review Theavailableacademicresearchhasbeenevaluatedbelowtogainadeeperinsightintothecontrastingtheoriessurroundingthechosenresearchobjectives.Athematicapproachhasbeentakenwithinthisliteraturereviewtoalloweachrelevanttopictobeanalysedclearlyandconcisely,inordertobuildastrongunderstandingof,andestablishlinksbetween,theliterature.Thekeytopicstobeaddressedwithinthereviewhavebeendrawnfromtheresearchobjectivespreviouslystated.
3.1 Exploring Loyalty Customerloyaltyisatopicthatisincrediblyimportanttoanybusinessreliantonrepeatcustom,howevertherearemanytrainsofthoughtonwhatexactlycausescustomerstoshowsuchfaithfulnesstoacompany.Tounderstandwhatcausescustomerloyalty,wemustfirstestablishwhatcustomerloyaltyis.JacobyandChestnutformulatedoneconceptofloyaltyin1978;theybelievedthatloyaltywassimply‘biasedbehaviouralresponseexpressedovertimebysomedecision-makingunitwithrespecttooneormorealternativebrandsoutofasetofsuchbrands’(p.80).NewmanandWerbeltookasimilarstanceonloyaltybydescribing‘loyalcustomersasthosewhoreboughtabrand,consideredonlythatbrand,anddidnobrand-relatedinformationseeking’(1973,p.404-409).However,bothofthesedescriptionsofloyaltyonlytakeintotheaffectsofloyaltyonthecustomer’sbehaviouranddonottakeintoaccountthepsychologicalcausesandeffectsofloyalty.Itcouldalsobeunwisetojudgeloyaltypurelybasedrepetitivepurchasesbecauseof‘happenstancebuyingorapreferenceforconvenienceandthatinconsistentpurchasingcouldmaskloyaltyifconsumersweremultibrandloyal’(Oliver,1999).Oliver’s(1997)frameworkdescribes4separatestagesthatcustomersdisplaywhenbuildingasenseofloyaltytowardaproductorservice.ThefirststageisCognitiveloyalty;thisphaseisbasedpurelyonbrandbeliefandtheknowledgethatusingthatbrandisinsomewaypreferabletousingothers.Itcouldbethisstageofloyaltythatcouldbeallimportantindecidingwhetherbrandingisasimportantasotherkeyloyaltyfactors.AffectiveloyaltyisthesecondphasedescribedbyOliver,itisformedbythesatisfactionofpriorusageoftheserviceorproduct,thisiswherethequalityoftheproductandwhetherthepricepaidrepresentedvalueissoimportant.Oliver’sthirdphaseofloyaltyisconativeloyalty;thisisinfluencedbyrepeatedpositiveexperienceswithaproductorservice.‘Conation,bydefinition,impliesabrand-specificcommitmenttorepurchase’,thisstageiswhereboththedesireandmotivationtorepurchasearepresent.Oliver’sfinalphaseisActionloyalty,thisiswherethemotivationanddesiretorepurchasearestillpresentaswithconativeloyalty,however,theconsumerisnowreadytoovercomeobstaclestoensuretherepurchaseofaproduct(Oliver,1997).Thisframeworkbeginstoexplorethepsychologicalfactorsinvolvedincustomerloyalty,andalsoshowstheimportanceofbrandingintheinitialloyaltystage.However,itdoesnotexplainthedifferentfactorsthat
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makecustomersfeelasthoughtheyhavereceivedapositiveexperiencefromtheuseofaproductorservice.FromOliver’sresearchwecanunderstandthatinitialsatisfactionuponthefirstuseoftheproductisanecessityforanyloyaltytoformbeyonditofferinganexternaladvantagetothecustomer.Oliveralsobelievesthatloyaltyisbornoutofsatisfaction,however,onceloyaltyisformedacustomercannotreturnto‘meresatisfaction’(1999).OtherresearchbacksupOliver’sclaimsbysuggestingthat‘thereisathresholdatwhichloyaltycanreverttodissatisfactioninthefaceofrepeatedlyunsatisfactorypurchaseepisodes’,andtherebeingnowayofloyaltyrevertingtosatisfactionwherethe‘consumerbecomesopentocompetitiveadvances’again(Olivaetal,1992).Fromthispreviousresearchwecanseethatonceloyaltyhasbeengained,itcaneitherbemaintainedthroughfurtherpositiveexperiences,orlostcompletely.Thisisbecauseacustomercannotgobacktothestateofmindinwhichtheybegantheprocess,withnoknowledgeoropinionoftheproductorservice.Thisideaofloyaltymustnowbefocussedinrelationtotherestaurantindustry,asloyaltywithinthisindustrycanbeconsidereddifferentlytomanyothermarkets.Therestaurantindustryisanindustrythatisseenbysomeas‘antitheticaltoloyalty’duetotheenormousamountofvarietyinthestyle,costandqualityoffoodavailable(Oliver,1999).Consumer’stendtonaturallybe‘variety-seeking’asthe‘lureofnewexperiencewillbetootemptingtoignore’(Oliver,1999).Oliverbelievesthatthisproblemwillaffectrestaurantsthroughoutthefirstthreestagesonloyalty,cognitive,affectiveandconative.Therefore,ifcustomer’swillstillswitchbrandsevenwheninaconativeloyaltystageandstillseekvarietywhensatisfiedwithpreviousexperienceswitharestaurant,itisvitallyimportanttokeepbuildingloyaltyuntilemotionalconnectionsaremadewiththebrandtoanactionloyaltylevel.Onlyatthisactionlevelcantrueloyaltybefoundwithintherestaurantindustryasatthislevelcustomer’swill‘overcomeobstacles’suchasotherbrandstore-purchasefromtherestaurant(Oliver,1999).
3.2 Defining a Brand Thereisaplethoraofdetailedresearchintowhatloyaltyisandhowitcomesabout,however,thereisnotanenormousamountofwrittenworkabouttheaffectofbrandingonloyalty.Theworkthatisavailablehowever,doeshighlighttheimportanceofthebrand.GreggCebrzynski(2007)wroteabouttheever-changingdemandsthatcustomershaveforrestaurantsinhis2007article‘StrikeuptheBrand’.Heexplainedthatinthelateninetiescustomersatisfactionandloyaltywasdrivenbyfactorssuchas‘price-value,service,foodqualityandfun’,however,morerecentlycustomersdemanda‘one-of-a-kindguestexperience’,‘menuvariety’,and‘décor’(Cebrzynski,2007).Additionally,asurveyconductedin2007statedthat‘75%ofallrespondentsviewedbrandequityasveryimportant’,withamajorityagreeingthat‘brandequityistheintangibleingredientthatdifferentiates’onecompanyfromanother(ANA,2007).Although
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theseresponseswerenotdirectlyaimedatrestaurantbranding,theyshowtheimportanceofastrongbrandtodifferentiateandbuildloyalty.‘Theneedtounderstandandleverageconsumer-brandbondshasbecomeespeciallycriticalinamarketplacecharacterizedbyincreasingunpredictability,diminishingproductdifferentiation,andheightenedcompetitivepressures’(Shockeretal.,1994).Abrandcanbeconsideredintwodifferentways,eitherasawayofidentifyingwhereaproducthascomefrom,oranemotionalbondandexperienceswithaproduct.Aakerfollowsthefirsttrainofthoughtsayingthatabrandissimplya‘distinguishingnameand/orsymbol’designedto‘identifythegoodsorservicesofeitheroneselleroragroupofsellers,andtodifferentiatethosegoodsorservicesfromthoseofcompetitors’(Aaker,1991:7).Althoughthisdefinitionistrue,itcouldbeseenaslimitedasitfailstotakeintoaccounttheintangiblebondsandexperiencesthatcustomersmayhavewithproductsthatmakeuptheproductsbrandimage.Weilbacherhowever,statesthat‘brandsprovidethebasisuponwhichconsumerscanidentifyandbondwithaproductofservice’(Weilbacher,1995:4).ThisexpandsslightlyonAaker’sideaasWeilbacherstillbelievesthatbrandtobeaphysicalsymbolofaproductorservice,buthebringsinawarenessofthecustomersbondwithaproductorservice.AlthoughWeilbacher’sdefinitioncomesclosertounderstandingtheideaofthebrand,itstillfallsshortofencompassingtheexternalforcesthatcanaffectabrandanditsimage.Kapfererreferstoabrandfromthecustomer’spointofview,heexplainsthat‘abrandcanbedefinedasthetotalaccumulationofallhis/herexperiences,andisbuiltatallpointsofcontactwiththecustomer’(Kapferer,2004).Kelleralsolooksatabrandfromthecustomer’spointofviewstatingthatabrandis‘thepersonalmeaning’attachedtoabrand‘storedintheconsumermemory’(Keller,2003).Kellerexpandsonthisbywritingthat‘differentsourcesandlevelsofknowledgesuchasawareness,attributes,benefits,images,thoughts,feelings,attitudes,andexperiencesgetlinkedtoabrandanditsunderstandingbytheconsumer’(Keller,2003).Thesetwodefinitionsillustratethemoreemotivesidetobrandingthatthecustomermayfeel,andtheyexplaintheexternalforcesthatcanaffectabrandpositivelyornegatively.Tofinalisetheideaofwhatabrandis,itiscleartheboththeexternalandinternalfactorsthataffectwhatabrandismustbeconsidered.Abrandwillbedefinedbyboththeeffortacompanyputsintocultivatingtheawarenessandimageofit,andalsotheexperiencesthatcustomershavewiththebrandandthethoughtsandfeelingtheseevoketowardsthebrand.Thediagrambelow,(figure1),showstherelationshipbetweenthefirm’sinputandthecustomers’perceptionsinasimplifiedmanor.Itshowsthatacompanycanattempttocreateabrandtopresenttocustomers’,however,thisbrandingwillonlybesuccessfulifthecustomers’perceptionsequatetothesameideas.
Figure1.1,Source:(Chernatony&Riley,1998)
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3.3 Brand Equity Brandequitycanbelookedatfromtwodistinctperspectives,afinancialmarketpointofviewwheretheassetvalueofthebrandisappraised,orfromacustomerstandpoint,evaluatingacustomer’sresponsetoabrandname(Fayrene&Lee,2011).Duetotheemphasisontheimpactofloyaltythatthisresearchprojectcontains,itmakessensetoconsiderbrandequityfromthecustomer-basedapproach.Swaitetal.suggestedthatbrandequityis‘theconsumer’simplicitvaluationofthebrand’andthatbrandsactasa‘signalorcueregardingthenatureoftheproduct’(Swaitetal,1993).Kamakura&Russellexpandonthisdefinitionbyproposingthatbrandequity‘occurswhentheconsumerisfamiliarwiththebrandandholdssomefavourable,strong,anduniquebrandassociationsinthememory’(1993).ThisexpansionintotheassociationsthatconsumersmakebetweenthebrandandtheproductlinksintothetheoryproposedbyLassaretal.TheideadevelopedbyLassaretal.wasthatbrandequitywas‘Theconsumers’perceptionoftheoverallsuperiorityofaproductcarryingthatbrandnamewhencomparedtootherbrands’(Lassaretal,1995).Theyalsosuggestedthatbrandequitycouldbeseparatedintofiveperceptualdimensions;‘performance,socialimage,value,trustworthinessandattachment’(Lassaretal,1995).Obviouslythereisavastrangeofopinionsonhowexactlytodefineatopicasintangibleasbrandequity,asshownbyjustthree,asshownabove,ofthemanyavailabledefinitions.However,despitetherangeofopinionsthatareavailableonthesubjectofbrandequity,theydooftencontainonecommondenominator.ThiscommondenominatoristheusageofoneormoredimensionofAaker’sbrandequitymodel.Aakerdevisedoneoftheearliestconceptsforbrandequityin1991.Aakerdefinedbrandequityasasetof‘assetsandliabilitieslinkedtoabrand’that‘addtoorsubtractfromthevalueprovidedbyaproductorservicetoafirmand/orthatfirm’scustomers’(Aaker,1991).Aakermanagedtocombinebothperspectivesofbrandequityintoonedefinition,hethenseparatedthe‘assetsandliabilities’intofivedistinctcategories:
1. BrandLoyalty2. NameAwareness3. PerceivedQuality4. BrandAssociations5. OtherProprietarybrandassets–trademarks,patents,etc.(Aaker,1991)
Aakerbelievesthatthese5dimensionscancreatevalueforthefirmandforthecustomersthattheyserveifmanagedinthecorrectway.Aaker’smodelshownbelowinfigure2depictsthewayinwhichvalueiscreated.
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Aaker’smodeldisplaysthetheorythateachofthe5dimensionsdescribedfeedintothecreationofbrandequity.Thisbrandequitythenprovidesvaluetoboththefirmandthecustomer’softhefirm.Italsoshowstheideathatthecreationofvalueforthecustomercanprovideevenmorevaluetothefirm.Aakersuggeststhatbrandequitycanaidcustomer’sto‘interpret,process,andstorehugequantitiesofinformationaboutproductsandbrands’(Aaker,1991).Aakerbelievesthatstrongbrandequitywillpositively‘affectcustomers’confidenceinthepurchasedecision’andcanenhancethecustomers’satisfactionwiththeuseexperience’(Aaker,1991).Itisthispositiveeffectthatbrandequitycanhaveoncustomers’purchasingconfidenceandsatisfactionthatisofmostinterestforthisresearchproject,asbothofthesefactorscanplayapartinloyaltymodelputforwardbyOliver(1997).Thesefactorsplayapartintheconativeandaffectivestagesofloyaltywheretheinitialimpressionoftheproductisformedandcustomer’scanbetakenfromcompetition.However,thesefactorsalsoplayaroleinthecognitiveandactionloyaltystagesasstrongbrandequitywillallowcustomerstobuildamoreemotionalconnectionwiththebrandthatwillensurethecustomersdonotbuyfromanyrivals.
Figure1.2,Source:(Aaker,1991:7)
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IthasbecomeclearthebrandequitycouldpotentiallyhaveasubstantialimpactontheinitialstagesofloyaltyputforwardbyOliver(1997).However,researchintothismattermustbecompletedandthatissomethingthatthisresearchprojectwillaimtocomplete.
3.4 The Social Media effect Socialmediaisarelativelynewphenomenonthatishavingaprofoundaffectontheworldaroundus.Duetothecontemporarynatureofsocialmediatherearealimitednumberofspecific,empiricalstudiesrelatingtothetopic.However,theinformationthatisavailableisincredibleinterestingandraisesavarietyofquestionsregardingtherolesocialmediacanplay.Socialmediacanbedefinedas‘theonlinetechnologiesandpracticeswhichpeopleusetoshareknowledgeandopinions’(Larocheetal,2012a).Itisthisabilitytoshareknowledgeandopinionswithanyonethathasledtosocialmediabeinganenormousfactorin‘influencingcustomerperceptionsandbehaviour’(Williams&Cothrell,2000).Thisabilityforonlineopinionstoinfluencecustomerbehaviourisbothadangerandahugeopportunityforbusinesses.Thelargestdangerfactorforcompaniesisthrough‘post-purchasebehaviour’onsocialmediasuchas‘dissatisfactionstatementsorbehaviours’(Mangold&Faulds,2009).Thesestatementsandbehavioursonsocialmediacanquicklygarnerlargeamountsofattentionanddamagebrandequity.However,thekeypartthatsocialmediacanplayforcompanieslookingtoincreasecustomerloyaltyisthroughthemediumofalesscontemporaryconcept,brandcommunities.Brandcommunitiesaremadeupof‘like-mindedconsumerswhoidentifywithaparticularbrandandsharesignificanttraits’(Kalman,2009).Itisbelievedthatcustomers’jointhesebrandcommunities‘toidentifythemselveswithbrandssothattheirsocialneedsofbeingidentifiedaspersonswithappropriateself-identityaremet’(Larocheetal,2012a).Customer’swiththislevelofcommitmenttoabrandarealmostcertaintobeentirelyloyaltothatparticularbrand,thereforecompany’swillseebrandcommunitiesasanimmensepowersforgoodinrelationtotheirbrandequity.Researchsuggeststhatpeoplejoinsocialmediaforsimilarreasonsasthosewhojoinbrandcommunities.TheexplanationgivenbyGangadharbhatlaforpeoplejoiningsocialmediaisto‘fulfiltheirneedforbelongingnessandtheirneedforcognitionwiththosewhohavesharednorms,valuesandinterests’(Gangadharbhatla,2008).Itseemsthatitisdowntothisreasoningthat‘socialmediabasedbrandcommunities’arebecomingincreasinglycommon(Larocheetal,2012a).Newlinesofliteraturesuggeststhattheseconsumersarenolonger‘mererecipientsoftheproductsandvaluesofthefirmbutasco-creatorsofvalue,competitivestrategyandthefirm’sinnovationprocesses’(Franke&Piller,2004).Schauetal.wentasfarasidentifying‘fourcategoriesofpracticesthroughwhichcustomersco-createvalueinbrandcommunities:socialnetworking,impressionmanagement,communityengagement,andbranduse’(Schauetal,2009).Thesesocialmediabasedbrandcommunitiestherefore;
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improve‘customers’relationshipswiththebrand,theproduct,thecompanyandothercustomers’(Larocheetal,2012b).These‘enhancedrelationshipsresultinenhancedbrandloyalty’,andthisiswhysocialmediacanplaysuchalargepartinimprovingbrandloyalty.
3.5 Conclusion Theaboveliteraturehashighlightedthedistinctlinksbetweenbrandingandloyalty,theliteraturealsoshedslightontheincreasingimportanceofsocialmediatogaincustomerloyaltyandincreasebrandequity.Theavailableliteratureregardingloyaltyhasmadeitimmenselyclearthattherearelevelsofloyaltythatacustomercanfeeltowardsabrand.Itwouldinitiallyappearthatbrandingwouldonlyhaveanimpactontheearlystagesofloyalty,todrawincustomersandencouragethemtotrythebrand.However,withfurtherreadingintobrandequityandbrandcommunitiesitcanbeunderstoodthatbrandingcouldpotentiallyplayalargeroleineverylevelofloyalty.Strongbrandequityisofenormousvaluetorestaurantsasitencouragesincreasedloyaltyandencouragesmovementssuchasbrandcommunitiestotakeplaceandincreaseloyaltyfurther.Theliteraturealsodemonstratestheimportancethatsocialmediacanhaveonbrandloyaltyfortherestaurantindustry.Finallytheliteraturediscussesthedifficultiesinobtainingabsoluteloyaltywiththerestaurantindustryduetotheenormousvarietyavailabletoconsumersandthedesirethatconsumershaveforthevariety.
4.0 Methodology
4.1 Research Collection method Inordertocollectbothquantitativeandqualitativedatatoanswerthisstudy’sresearchquestionandobjectives,bothaquestionnaireandinterviewswereused.Itisnecessarytohighlightthattherewasnoparticulartargetaudienceforthedatacollectionineitherthequestionnaireorinterviewformat.
4.1.1 Questionnaire SaundersandLewisdefineaquestionnaireas‘ageneraltermthatincludesallmethodsofdatacollectioninwhicheachpersonisaskedtoanswerthesamesetofquestionsinthesameorder.Questionnairescanbedistributedfacetofacebyaninterviewer,bytelephone,byhand,bypostandbytheweb’(Saunders&Lewis,2011:141).ThesurveyitselfwasconstructedusingfreedatacollectionsoftwareSurveyMonkey,thissoftwarewasselectedasitwascosteffective,simpletouseandhadmorethansufficientcapabilitiestoconstructaquestionnairetothestandardrequired.Thisparticularsoftwarealsoallowedforeasydistributionto
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respondentsasithaddirectlinksforsharingtosocialmediasites,emailandtotheSurveyMonkeycommunity.SurveyMonkeyalsoallowsforeasyinterpretationandanalysisofthegathereddataanddisplaystheresultsingraphsandtabletoviewonline.Thequestionnaireconsistedof10statementsgiventorespondents,toeachstatementtheymustrespondfromfiveoptionsrangingfromstronglydisagreetostronglyagree.Thestatementsthemselvesweredevisedusingtheresearchobjectivesandtheexistingliteratureanalysedintheliteraturereviewinordertogainthemostappropriatedataforthisproject.
4.1.2 Interview
Thekeyreasonforusingtheinterviewtechniquetogatherinformationwastogainqualitativedatafromparticipants.Inordertocollectthisdata,semi-structuredinterviewswereheldwith10people.Withinasemi-structureinterview‘theresearcherwillhavealistofthemesandquestionstobecovered,althoughthesemayvaryfrominterviewtointerview’andthat‘theorderofquestionsmayalsobevarieddependingontheflowoftheconversation’(Saundersetal.2009:320).Therefore,theinterviewsconductedforthisresearchfollowedtheflowoftheconversationwiththeparticipantinordertogainthebestandmosthonestqualitativedatapossible.Theinterviewsconsistedoffivemajorquestionsthatwouldbecoveredwithintheconversation,thesequestionwereagaindevisedfromtheresearchobjectivesandliteraturereview,andinparticularfocussedontopicsthatthequestionnairecouldnotcover.
4.1.3 Mixed Methods Approach Theprimarydataforthisresearchprojectwascollectedusingamixoftwomethods;thiswassothatclaritycouldbefoundbycontrastingthequalitativeandquantitativedatagathered(Gephart,2004).A‘mixedmethodsapproachisthegeneraltermforwhenbothquantitativeandqualitativedatacollectiontechniquesandanalysisproceduresareusedinaresearchdesign’(Saundersetal,2009:152).Thisapproachtodatacollectioncanprovidebetteropportunitiesforaresearchertoanswertheirresearchobjectivesandalsodeterminewhethertheresearchfindingscanbetrusted(Tashakkori&Teddlie,2003).Bycollectingquantitativedata,alargeamountofdatacanberecordedandeasilyanalysedtofindtrends,thiscanbedonequicklyandcheaply.Qualitativedatahowever,willoftenbemoretimeconsuming.Ontheotherhand,itallowstheresearchertocollectdescriptiveinformationtogainamuchdeeperunderstandingofparticipant’sopinions.Thecombinationofthesetwomethodsallowsforafullanalysisofthesubjectmattertotakeplaceandgivesthebestopportunityfortheresearchquestiontobeanswered.Leeuwetal.whoarguethataresearcher‘isbetteradvisedtousemorethanonedatacollectionmode’supportthisargumentbystatingthatitisbestto‘conductamulti-modeormixed-mode’(DeLeeuwetal.2008).
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4.2 Participants
4.2.1 Sampling
Thesamplingstyleforthisresearchcannotbedescribedasrandomduetothewaythequestionnairesandinterviewswereconducted.Thequestionnairescanbebestdescribedasusing‘self-selectionsampling’;self-selectionsamplingiswhereyoualloweachparticipant‘toidentifytheirdesiretotakepartintheresearch’(Saundersetal.2009:241).Thiscanbeconductedthroughpublicisinganeedforparticipantsonrelevantmedia,andthencollectedthedatafrompeoplewhorespond(Saundersetal.2009:241).Thequestionnairecreatedforthisresearchprojectwaspostedtoseveralsocialmediasitesandsomerelevantfoodforums,aswellasbeingemailedtofriendsandfamilyforparticipation.However,theinterviewsampleswereconductedbasedonconveniencetotheauthor.Conveniencesamplinginvolvesselectingparticipantswhoare‘easiesttoobtainforyoursample’,suchasfriendsandfamilymembers(Saundersetal.2009:241).Ithasbeensaidthatthissamplingtechniquecanbe‘pronetobiasandinfluencesthatarebeyondyourcontrol’,however,duetothenatureofthisresearchitcanbedeemedsuitable(Saundersetal.2009:241).However,theseinterviewshavenotspecificallytargetedpeopleofanydemographicanddealwithissuesthatalmosteverybodycanrelateto,thereforetheunsuitabilityofthissamplingmethodislessened.
4.2.2 Ethical Issues
Ethicalconsiderationshavetobemadeduringanyresearchproject,assuch;severalstepsweremadetoensurethatthisprojectremainedasethicalaspossible.Initiallytheresearchproposalwassubjecttoanethicalevaluationbyprojecttutorsthroughthesubmissionofanethicsformbeforeanyresearchcouldbegin.Oncetheprojectgainedapproval,thewayinwhichthedatacollectionoccurredhadtobekeptasethicalaspossible.Thefirststeptakenwastomakeallparticipantsawarethattheyweretakingpartinaresearchproject,andthatbyparticipatingtheyweregivingconsentforanswerstobeusedwithintheproject.Thiswasimportanttoallowallparticipantstoknowwhythequestionswerebeingaskedandinwhatcontext.Secondly,allparticipantshavehadtheiranonymitypreservedthroughouttheprocess.Numbershasreplacedthenamesofrespondentsintheinterviews,andthesoftwareusedforthequestionnairerecordsnodataaboutthepersonanswering.Inadditiontothisanybodywantinghisorhercontributionremovedfromtheresearchcoulddosobyemailingme,thiswasmadeclearbeforetheinterviewscommenced.
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4.3 Procedure
4.3.1 Reliability and Validity
Reliabilityisthe‘degreetowhichanassessmenttoolproducesstableandconsistentresults’(Phelan&Wren,2006).Theparticipantsofboththequestionnaireandinterviewshadawiderangeofdemographics.Participantsincludedstudents,youngprofessionals,andmembersofolderagegroups.Forthisreasonitcanbeconcludedthattheparticipantsgavearelativelygoodrepresentationofthegeneralpublic,andtherefore.Forthisreasonitcanbeassumedthattheresearchcontainsarelativelygooddegreeofreliability ‘Validityreferstohowwellatestmeasureswhatitispurportedtomeasure’(Phelan&Wren,2006).Therefore,forthisresearchallofthequestionsaredevisedeitherfromtheresearchobjectivesorthetheoriesdisplayedwithintheliteraturereview.Forexample,severalofthequestionswithinthequestionnairearedevisedfromOliver’stheoryregardingdifferentlevelsofloyaltymentionedwithintheliteraturereview.Throughthismethodtheresearchshouldbeabletoprovidegoodanswerstowhatisbeingmeasuredwithinthisproject.
4.3.2 Data Collection Details Withinthecontextofthequestionnaires,therewasnospecificinstructiongiventotheparticipants,astheprocesswasself-explanatory.Inordertoensurethatthiswasthecase,thequestionnairewasshowntoseveralfriendsbeforethereleasetoconfirmthatitwasfitforpurpose.Thefeedbackreceivedfromfriendshelpedtore-wordoneofthequestionstomakeiteasiertounderstandfromthereader’sperspective.Similarly,littleinstructionwasgiventotheparticipant’softheinterviews,astheytheinterviewswereconductedinarelativelyinformalmannerandaspreviouslymentionedwereonlysemi-structured.Feedbackfromtheparticipant’ssuggestedthatthemorelaidbackapproachtotheinterviewmadethemmorecomfortabletoshareopinionsontheresearchmatter.TheQuestionnairewasliveandgatheringresultsbetween21stMarch2016and22ndApril2016.Inthistimethequestionnairereceived78responses,frompeopleofallwalksoflife.Theinterviewswereconductedbetween5thMarch2016andthe16thMarch2016.Teninterviewswereconductedintotalconsistingof5questionsperinterview
4.3.3 Data Analysis
Withregardtothequantitativedatacollected,thedatawasenteredintoMicrosoftExcelandsortedintocategoriesofinformation.Therawdatawasthen
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representedinavarietyoftablesandgraphsthatwouldbestanalyseandhighlightthekeyfigureswithinthedata.Withregardstothequalitativedata,allofthedatacollectedwastypedupintoMicrosoftWord;seeappendix8.2,andkeyquoteswerepickedoutfordisplayinthefindingssection.Someofthedataforquestion5oftheinterviewhasbeentranslatedintoquantitativedata,asgainingitinaqualitativefashionandthentranslatingitwasthebestwayofgettingtheparticipantshonestfeelings.ThiscanbeseeninFigure3.
5.0 Findings
5.1 Quantitative Data Fromthequantitativedatacollected,thechartscontainingthefindingshavebeenseparatedintothreedistinctsections;loyaltybased,brandingbasedandsocialmediabaseddata.Thechartsdisplayingtheseresultsareshowninthefiguresbelow.
5.1.1 Loyalty Based Findings
Figure2.1isabarchartdepictingthepercentageofparticipantswhostatedthat
theyregularlyeatatthesamerestaurantswhendiningout
15.38%
28.21%
7.69%
38.46%
10.26%
0.00% 5.00% 10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%
StronglyDisagree
Disagree
Neutral
Agree
StronglyAgree
Iregularlyeatatthesamerestaurantswhendiningout
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Figure2.3isabarchartdepictingthepercentageofparticipantswhowouldremainloyaltotheirfavouredrestaurant,despiteanewcheaperoptionof
similarqualityopening.
5.1.2 Branding Based Findings Figure2.3isacolumnchartdisplayingthepercentageofparticipantswhoaremorelikelytotryanewrestaurantiftheyhaveheardofthebrandname.
12.99%
19.48%
12.99%
41.56%
12.99%
0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%
StronglyDisagree
Disagree Neutral Agree StronglyAgree
Iammorelikelytotryanewrestaurantifihaveheardofthebrandname
16.67%
23.08%
15.38%
30.77%
14.10%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%
StronglyDisagree
Disagree
Neutral
Agree
StronglyAgree
Iwouldremainloyaltoafavouredrestaurant,evenifanewcheapercompe:torrestaurantofsimilarqualityopened.
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Figure2.4isacolumnchartshowingthepercentageofparticipantsthatprefertovisitrestaurantsthathaveapositiveimpactinsomeway.
Figure2.5isacolumnchartshowingthepercentageofparticipantsthatseethe
imageandstyleofrestaurantsasimportanttowhethertheywillrevisit.
8.97%
20.51%
10.26%
44.87%
15.38%
0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%
StronglyDisagree
Disagree Neutral Agree StronglyAgree
Iseetheimageandstyleofarestaurantasvitaltowhetheriwillreturntotherestaurant.
1.32%
13.16%18.42%
43.42%
23.68%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
StronglyDisagree
Disagree Neutral Agree StronglyAgree
Iwouldprefertovisitrestaurantsthathaveareputa:onforhavingaposi:veimpactontheenvironment,
community,etc
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Figure2.6isacolumnchartshowingthedegreetowhichparticipantsconsidertheatmosphereandenvironmentatarestaurantasimportanttotheenjoyment
oftheirmeal.Figure2.7isacolumnchartdepictingthepercentageofpeoplewhodescribecheap,goodqualityfoodasthebiggestfactorsforthemtoenjoyarestaurant.
8.97%
25.68%
14.10%
35.90%
15.38%
0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00%
StronglyDisagree
Disagree Neutral Agree StronglyAgree
Theatmosphereandenvironmentprovidedatarestaurantarevitaltomyenjoymentofameal
6.49%
28.57%
10.39%
46.75%
7.79%
0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%
StronglyDisagree
Disagree Neutral Agree StronglyAgree
Cheap,goodqualityfoodarethetwobiggestfactorsinvolvedinmeenjoyingarestaurant
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5.1.3 Social Media Findings
Figure2.8isapiechartshowingthepercentageofparticipantsthatusesocial
mediainrestaurantselection
Figure2.9isapiechartshowingthepercentageofparticipantsthatwouldvisit
arestaurantsolelyfromtherecommendationofsocialmediareviews
6.41%
26.92%
10.26%
41.03%
15.38%
Iusesocialmediapla@orms,suchastripadvisor,tochooserestaurantstovisit
StronglyDisagree
Disagree
Neutral
Agree
StronglyAgree
8.97%
30.77%
11.54%
39.74%
8.97%
Iwouldvisitarestaurantsolelyduetosocialmediareviews
StronglyDisagree
Disagree
Neutral
Agree
StronglyAgree
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Figure2.10displaysapiechartshowingthepercentageofparticipantsthatwill
regularlypostonsocialmediaabouttheirvisitstorestaurants.
5.2 Qualitative Data
Todisplaythequalitativedata,eachquestionwillbepresentedasitwastotheparticipantsandsomeofthemoreinterestingquoteshavebeenpickedout.Afulltranscriptoftheresponsesfromthetenparticipantsisdisplayedinappendix8.2.1. What would make you decide to visit a new restaurant over one you have enjoyed visiting before?
10.39%
31.17%
9.09%
32.47%
16.88%
Iwillregularlypostpicturesand/orinforma:ononsocialmediasiteswhenvisi:ngarestaurant.
StronglyDisagree
Disagree
Neutral
Agree
StronglyAgree
Participant1:PersonallyIgetboredofeatingatthesameplacesallthetime;Iliketotrynewthings.Sometimesyourevertbacktogoingtothesameplacesbutitsnicetomixitupsometimes.
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2. How would you say that social media impacts your choice of restaurant?
Participant3:I’dsaythatwhenpeopleyouknowhavebeen
somewhereandreallyenjoyeditthatwillalwaysmakemewantto
go.
Participant5:TripAdvisor,I’llalwayscheckrestaurantsoutonthereiftheyhavegoodreviews
I’lloftengoandtrythem
Participant1:I’llalwayscheckoutthereviewandinformationontripadvisorbeforegoinganywhere,ifthemajorityofreviewsareaveragetopoorIwillgenerallygosomewhereelse.
Participant8:Itdoesmassively,I’llfindaplacetogoonsocialmedia,arrangewhoI’mgoingwithandwhenonsocialmedia,andI’llputpicturesonmyInstagramofusattherestaurant.
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3. How would you say you are influenced by the way a restaurant ’s brand is presented to local or national media?
Participant9:Idon’tusesocialmediasonotatall.
Participant1:Ithinkit’sdifficultnottobenowadays,youseebrandseverywhere,andchainrestaurantsdominatethemarketandarereallyactiveonsocialmedia.IguessifI’minatownorcityIdon’tknowverywell,IwilltendtoeatatbrandsIknow.
Participant3:Ithinkwhenabrandhasareputationforpoorfoodorpoorservicethatwillalwaysputyouoff.Ithinksometimestherecanbea
stigmaattachedtocertainplaces,likeMacDonald’s,thatwillputyouofftoo.
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4. Are you more comfortable visiting a restaurant with strong branding than a restaurant that you have never heard of? Why?
Participant9:I’mnotreally,ItendtoonlylistentotherecommendationsofmyfriendsandfamilybecausetheyknowwhatIlikeandhavesimilar
standards.
Participant10:YesI’dsayso,arestaurantwithacertainidentityhasgotanappealtoit,anditmakesachangefromtherunofthemillrestaurantsthataresocommon.
Participant6:No,I’lleatanywhere,whetherunknownoramassivechainrestaurant,aslongasittickstheboxesofwhatIwantforagoodmealI’mnotfussedbythebranding.
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5. What do you see as the most important factors that make you want to revisit a restaurant?
Participant3:Thequalityoffoodisbyfarthemostimportantforme,that’swhyyougoouttoeatattheendoftheday,butIthinkthepriceplaysapart,somaybeyoucouldsaythevalue
formoney.Ialsothinkconvenienceisimportant,I’llordermoreregularlythroughrestaurantsthatareondeliveroobecausethey
willbringrestaurantfoodtoyou.
Participant6:Ieatatalotofplacesandsometimesyourealizethefoodisn’tthebeallandendallofanicemeal,aslongasit’satadecentstandarditwillbefine.Therestauranthastobenicelydecorated,haveabuzzingatmosphereandlovelystaff.Ithinkthosearefarmoreimportant.
Participant4:Definitely,itsmucheasierknowingexactlywhatyou’llgetinachainofdecentrestaurantsthanriskingitwithsomewhereyoudon’tknow.
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5.3 Gaining Quantitative data from Qualitative Withinthefifthquestionposedtoparticipants,regardingthemostimportantfactorsforarestauranttoprovide,theintervieweesgavetheirownopiniononwhattheyfeltwasvitalfortheenjoymentoftheirmeal.Thismeantthatseveralparticipantsrepeatedcertaintermsandsomewereuniquetoparticularpeople.Thetablebelow,Figure3,showsthefrequencyinwhichtheparticipantsmentionedeachterm.KeyTerm FrequencyUsedbyParticipantsFoodQuality 6Servicequality 5Atmosphere/Environment 4Cost 4Convenience 2Sustainability 1Figure3displaysthefrequencyinwhicheachparticipantmentionedthesetermswithintheiranswertothequestion;“Whatdoyouseeasthemost
importantfactorsthatmakeyouwanttorevisitarestaurant?”Ofthetermsmentionedbytheparticipants,foodqualitywasthemostfrequent,followedbythestandardofservicebythewaitingstaff,whereasthesustainabilityoftherestaurantwasmentionedtheleastnumberoftimes.
Participant7:Thecostandthefoodforsure,thatwhyyougotoa
restauranttobehonest,ifthefoodisrubbishoritstooexpensivethenI
wouldn’tgoback.
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6.0 Discussion Withinthissectionoftheresearchproject,attemptswillbemadetoanswerthekeyresearchobjectivesusingtheliteratureavailableandthedatathathasbeencollected.Oncetheinitialresearchquestionshavebeenansweredandanyotherfindingshavebeennoted,alloftheavailableresearchwillbeusedtoanswerthekeyquestionforthisproject,whichisasfollows:“Doesbrandingnowhaveasbiganimpactoncustomerloyaltyaspriceand
qualitywithintherestaurantindustry?”
6.1 If lower prices and higher quality do increase customer loyalty, why do customers still go elsewhere?
Toanswerthisquestionwemustfirstlyensurethatlowerpricesandhigherfoodqualitydoincreaseloyaltywithintherestaurantindustry.ItiswidelyknownthatCostandqualityarelargefactorsindeterminingthesatisfactionofacustomer(Cebrzynski,2007).Itisalsobelievedthatloyaltyisbornoutofthesatisfactionacustomerfeelswithaproductorservice,aswithoutsatisfactionnoinitialattachmentwillbemade(Oliver,1999).Sobythislogic,lowerpricesandhigherqualityshouldincreasecustomerloyalty.Thisisreinforcedby54.54%ofpeopleeitheragreeingorstronglyagreeingthatcheap,goodqualityfoodwerethetwobiggestfactorsforthemtoenjoyarestaurant,asseeninFigure2.7.FurtherreinforcementcanbegainedfromFigure3,aswhenparticipantswereasked:“whatdoyouseeasthemostimportantfactorsthatmakeyouwanttorevisitarestaurant?”,6outof10peoplegaveanswersrelatingtofoodqualityand4outof10gaveanswersrelatingtocost.Therefore,costandqualitydohavealargeimpactonloyaltywithintherestaurantindustry,sowhatexactlyismakingcustomerseatelsewhere.AsOliversuggested,therestaurantindustrycanbeseenas‘antitheticaltoloyalty’duetotheenormousamountofvarietyonofferforconsumersatpresent(Oliver,1999).Whenthisfactoriscombinedwiththethoughtthatconsumerstendtobe‘variety-seeking’astheysearchfora‘newexperience’,thisexplainsonereasonforcustomersoptingtochangerestaurants(Oliver,1999).Iftakenasfactthenthiswouldanswerthequestionposedabove,however,therearemanymoremotivationalfactorsbehindwhyconsumersaren’tnecessarilyloyaltocheaprestaurantswithgoodfoodquality.Todisprovetheideathatrestaurantscannotformanentirelyloyalcustomerbase,astatementwasposedtotheparticipantsofthequestionnaire.ThestatementinFigure2.3read:“Iwouldremainloyaltoafavouredrestaurant,evenifanewcheapercompetitorrestaurantofsimilarqualityopened”.Interestingly,44.87%ofpeopleagreedwiththisstatement,whichsuggeststhatcustomerscanstillbeloyaltoarestaurantwhenthefinancialbenefitisremoved.Soifthisstageofloyaltycanbe
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reached,itisvitaltounderstandthefactorsthataffectitandwhethersomecustomersaremorelikelytobeloyalthanothers.Inordertoachievealevelofloyaltyinwhichcustomerswillignoretheadvantagesofeatingelsewhere,Oliver’s4stagesofloyaltymustbeconsidered(Oliver,1999).WithinthefirstthreestagesofOliver’sframework,loyaltycanbepresent,howevercustomersmaystilleatelsewhere.Thesestagesarecognitive,wheretheproduct/serviceisusedduetoadistinctbenefitoverpurchasingotherbrands,affectiveloyalty,basedonthesatisfactionreceivedbyprevioususageofthebrand,andconativeloyalty,basedonrepeatedpositiveexperienceswiththebrand(Oliver,1999).Itisthereforeonlyinthefourthstageofactionloyalty,wherecustomersarewillingto‘overcomeobstacles’suchaspricetorepurchasethatspecificbrand(Oliver,1999).Attheactionloyaltystage,comescompleteloyalty,toanswerthekeyquestionofthissectionwemustfindoutwhatleadstocompleteloyaltyandwhatismissingfromtheotherstagestoallowcustomerstodeviatefromthebrand.Itcanbesuggestedfromwhatwehavediscussedalreadythatloyaltywillbebuiltfromanumberoffactors,startingwithsatisfaction.Figure2.6showsthat51.28%ofparticipantsinthequestionnairebelievetheatmosphereandenvironmenttobeimportantintheirdiningexperience,with15.38%ofthoseparticipantsfeelingstronglyaboutit.Thiscanbedescribedasasatisfactionfactor,similartothepriceandqualityoftherestaurantsfood.Whileitistheorigintoloyalty,meresatisfactiononitsowncanonlydrivecustomersintothethirdstageofloyaltywithinOliver’sframework.Toachievethefourthstageofloyaltysatisfactionisrequiredtobeinconjunctionwithstrongbrandequity.Asdiscussedwithintheliteraturereviewbrandequitycanbedefinedas‘theconsumers’perceptionoftheoverallsuperiorityofaproductcarryingthatbrandnamewhencomparedtootherbrands’(Lassaretal,1995).Sobrandequityistheconsumersperceptionofthebrand,thisperceptioncanbealteredbytheimageputoutbythebranditselfandtherealityofcustomer’sexperienceswiththebrand.Thereasonthatbrandingcanbesovitalindrivingloyaltyisthatitisdictatedbythecustomer’s‘thoughts,feelings,attitudes,andexperiences’(Keller,2003).Thesefactorsallowthecustomertoconnectwiththebrandbeyondapuresatisfactionlevelandwhenevertheythinkofthebranditcanstirsomeformofemotion.Thisemotioncombinedwithrepeatedsatisfactioniswhatdrivescompleteloyalty,andwithoutanyofthesefactorsitcannotbeachieved.Whencompleteloyaltyisnotachievedthatiswhencustomersgoelsewhere,despitelowpricesandgoodquality.
6.2 Do customers see themselves as directly affected by the branding of a restaurant?
Thebrandingofarestauranttoacustomeris‘thetotalaccumulationofallhis/herexperiences,andisbuiltatallpointsofcontactwiththecustomer’(Kapferer,2004).Thisexperiencecouldbeassmallashavingheardofthebrand,oraslargeasbeingaregularcustomer.Therefore,peopleare
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usuallyinsomewayaffectedbythebrandingofrestaurants.Forthisreasonitisinterestingtodiscoverhowcustomersfeeltheyareaffectedbybrandingandwhethertheyfeelitalterstheireatinghabits.Intheorythestrongerthebrandequityoftherestaurant,themorelikelyitwillbeforcertainpeopletovisitthatrestaurant.Thequestionnaireresultsshowthatcustomershaveanawarenessandappreciationfortheaffectsofbranding,astheyseemmorelikelytoeatwithbrandsthattheyknoworrestaurantsthatarebrandedpositively.Figure2.3showsthat54.55%ofparticipantseitheragreeorstronglyagreewiththestatement:“IammorelikelytotryanewrestaurantifIhaveheardofthebrandname”.Thisisimportant,asitnotonlyshowstheaffectthatbrandshave,butitdisplaystheself-awarenessofcustomerstotheimpactsofbranding.Participantsalsoseetheimageandstyleofabrandasimportantwith60.25%ofpeopleagreeingorstronglyagreeingthatitplaysavitalpartintheirenjoymentofarestaurant,asshowninFigure2.5.Theimportancethattheparticipantsplacedonthebrandimageofarestaurantisthoughtprovoking,asitshowshowawaretheyareoftheaffectsthatdifferentbrandimageswillhaveonthem.Theinterviewresponsesfollowasimilarpatterntothequestionnaire.Thekeyquestionfromtheinterviewwas:“Areyoumorecomfortablevisitingarestaurantwithstrongbrandingthanarestaurantthatyouhaveneverheardof?Why?”Participant1statedthatthey‘definitely’feelmorecomfortablevisitingabrandtheyhaveheardof,as‘youknowexactlywhatyouaregoingtoget’.ThisisinterestingasitatoddswithOliver’stheorythatcustomersare‘variety-seeking’,anddisplaysacomfortintheknowledgeoftherestaurantsbrand(Oliver,1999).However,someresponsesdifferedfromthenorm,participant6statedthattheywill‘eatanywhere’that‘tickstheboxes’ofwhattheywant‘foragoodmeal’andthattheyare‘notfussedbythebranding’.Thisresponseisofparticularsignificance,astheyclearlydonotseethemselvesasaffectedbybrandingatall.Ingeneral,theparticipantsseemtobeawareoftheaffectsthatbrandingcanhaveonthem,with7ofthe10participantsstatingopenlythattheyaremorecomfortablevisitingabrandofrestauranttheyhaveheardof.
Itseemsastheinthemostpart,customersareawareofthebrandingaroundthemandknowhowitcaninfluencethem,however,itisfairtosaythatdifferentpeoplemaybeaffectedbybrandingindifferentways.Althoughwecan’tsaythatallcustomersseethemselvesasdirectlyaffectedbybranding,amajorityoftheparticipantsinourresearchseemtobeofthisopinion.Theparticipantsawarenessofhowbrandsoperateandconveythemselvesmaymeanthatbrandshavetofindnewwaystogetthereimageacrosstocustomersinthefuture.
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6.3 Are customers more likely to remain loyal to a company branded in a positive way?
Asmentionedpreviously,brandingwillaffecteverycustomerdifferently,andwhatmightbepositivebrandingforonepersoncouldbenegativetoanother.Positiveandstrongbrandingtowardsatargetcustomerbaseshouldleadtostrongbrandequity,whichinturnshouldleadtoincreasedlevelsofloyaltywithinsaidcustomerbase.Intheorystrongbrandequityleadstothecreationofvalueforboththefirmandthecustomer,asdiscussedearlierintheliteraturereview(Aaker,1991).Whenvalueiscreatedforcustomers,itincreasesthelikelihoodthattheywillbecomeattachedtothebrandinanemotionalway,thiscaninturnleadtothecreationofbrandcommunitiesandimprovedloyalty,whichcreatesvalueforthefirm.
Thetheorysuggeststhatcustomerswillbemoreloyaltoacompanythatisbrandedinapositiveway;thedatacollectedfromtheresearchwillnowbecomparedwiththetheorytocometoaconclusionforthisresearchobjective.Theresultsfromthequestionnaireoverwhelminglysupportthetheoryas67.1%ofpeopleagreeorstronglyagreethattheywouldprefertovisitrestaurantsthathaveapositivereputationwithinthecommunity(Figure2.4).Theinterviewsprovidedasimilaroverviewofthesubjectwhenparticipantswereaskedthequestion:“Howwouldyousayyouareinfluencedbythewayarestaurant’sbrandispresentedtolocalornationalmedia?”Participant2statedthat‘ifyouheargoodthingsaboutarestaurantitwillmakeyouinterestedingoing’andthat‘ifyouhearbadthingsitwilldotheopposite’.Thisbeliefhighlightsthatcustomersarelikelytotakethefirststepintotoloyaltybasedofthebrandingoftherestaurant.However,tomakeaconclusiononthissubjecttherehastobeevidencethatthewayacompanyisbrandedcanhaveaneffectthroughoutallstagesofloyalty.Participant8statedthatthey‘likegoingtocasualplaceswhereyoucanhavealaugh,sosomerestaurantsarebetterthanothers’.Thisparticipantgoesontoexplainhowthey‘love’aparticularchainrestaurant‘becauseeverythingaboutthewaytheycomeacrossisquitechilledandcasual.’Thewayinwhichparticipant8talksdisplaysanemotionalconnectiontothisbrand,whichcandefinitelyincreasetheloyaltytheywillshowtowardsthebrand.Itwouldthereforeseem,afterstudyingtheliteratureandanalysingthecollecteddatathatthereisadistinctlinkbetweenpositivebrandingandcustomerloyaltywithintherestaurantindustry.Theestablishmentofthislinkisvitalasitmeansthatbrandcantailortheirownbrandingtobestsuittheirtargetaudience,thisshouldthen,intheory,increasethelevelsofloyaltytheywillreceivefromcustomers.Thisfactorcombinedwiththepotentialimpactsocialmediamayhaveonrestaurantcustomerscouldbeofparticularusetorestaurants.
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6.4 Has social media had an impact on eating habits?
ThetermsocialmediaincorporatessocialnetworkssuchasFacebookandtwitter,butalsoincludesreviewsitessuchastripadvisor.Socialmediaisdefinedastheonlinetechnologiesandpracticeswhichpeopleusetoshareknowledgeandopinions’(Larocheetal,2012a).Ithastheabilitytoaltercompanyperformance,allowcompaniestocommunicatedirectlytocustomersandallowinstantsharingofopinionsandexperiences.Socialmediasitesliketripadvisorhaveallowedcustomerstofindoutfarmoreinformationaboutarestaurantbeforetheirfirstvisit.Beforesocialmedia,criticreviewsandwordofmouthwerethebestwaysgaininginformationaboutarestaurant;nowmostrestaurantsinthecountryhavehundredsorthousandsofreviewswrittenbyrealcustomers.Wecanestablishthehugeaffecttripadvisorhashadoneatinghabitsbylookingatsomeoftheresultsofthequestionnaire.WithinFigure2.8,56.41%ofparticipantsagreedorstronglyagreedthattheyusesocialmediasites,suchastripadvisortochoosetherestaurantstheyvisit,andtofurtherthisargument48.71%oftheparticipantsagreedorstronglyagreedthattheywouldchoosearestaurantsolelyonsocialmediareviews(Figure2.9).Foraconceptascontemporaryassocialmediathisisastaggeringsetofresults,however,itIshardlysurprisingconsideringtheamountofdatathatitispossibletoshareinstantlyonsocialmediaforanyonetoview.Theinterviewquestionrelatingtosocialmediaalsobroughtupsomeinterestingcomments,thequestionposedtoparticipantswasasfollows:“Howwouldyousaythatsocialmediaimpactsyourchoiceofrestaurant?”Themajorityofthecommentswererelativelyexpected,suchasparticipant1whosaidthattheywill‘alwayscheckoutthereviewandinformationontripadvisorbeforegoinganywhere’.Amajorityoftheparticipantssaidthattheyusesocialmediainsomeregardwhenchoosingarestaurant,andthisappearstohavebecomethenorm.However,participant8’sanswerbroughtaboutintriguebystating‘I’llfindaplacetogoonsocialmedia,arrangewhoI’mgoingwithandwhenonsocialmedia,andI’llputpicturesonmyInstagramofusattherestaurant.’Thisraisedthequestionthatsocialmediaisn’tjustchangingeatinghabitswithinrestaurants;tosomepeopleitisredefiningtherestaurantexperience.Socialmediaplaysapartinalmosteverystepofparticipant8’sdiningexperienceandthisparticipantisnotalone.49.35%ofparticipantstothequestionnairesaythattheyagreeorstronglyagreewiththestatementfeaturedinFigure2.10,whichsaystheywillregularlypostpicturesand/orinformationonsocialmediasiteswhenvisitingarestaurant.Thisfigureisincrediblyhigh,andhasamassiveaffectontheeatinghabitsofnotjusttheposterofthepicture/information,butanyonethatseestheposttoo.Thiscouldhaveanaffectonloyaltyasseveralintervieweesechoedparticipant3’ssentimentthat‘whenpeopleyouknowhavebeensomewhereandreallyenjoyeditthatwillalwaysmakemewanttogo.’Socialmediaisclearlyhavinganenormousimpactontheeatinghabitsofcustomers,itischangingthewaypeopleapproacheveryaspectofarestaurant.
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Whatismoststaggeringistheimpactthatsocialmediahasmadesuchanimpactinsuchashortperiodoftime,andthisimpactseemssettogrowwithmoreandmorepeopleadoptingsocialmediaplatformseveryday.Whatwillbeinterestingishowbrandsapproachsocialmediainthecomingyearsasitcanposeanenormousopportunitytothemtoincreaseloyaltythroughbrandcommunitiesandinteractionwithcustomers.
6.5 Other Findings of Interest Althoughunrelatedtothefourresearchobjectives,severalotherfindingshavebeenuncoveredthatareofinteresttothisstudy.Thesefindingswillgenerallyconsistoffindingsthatwerenotexpectedbeforetheresearchbegan.Themainfindingofinterestcameoncethequalitativedatafromquestion5oftheinterviewhadbeentranslatedtoquantitativedatainFigure3,itshowedthatcustomersvaluecertainfactorsasmoreimportantthanfirstexpected.Figure3showedthatcustomersvaluedbothertheservicequalityandtheatmosphereorenvironmentofarestaurantasmoreimportantthantheprice.Thiswasofparticularinterestaspriceandloyaltyhaveinthepastbeendeemedtobethelargestdriversofloyalty(Cebrzynski,2007),however,fromthisresearch,pricingisn’tseenasoverlyimportantwithjust4outof10participantsconsideringittobeimportant.
6.6 “Does branding now have as big an impact on customer loyalty as price and quality within the restaurant industry?”
Tocometoaconclusiontothekeyquestionofthisresearchprojectwemustlookatallthefactorsinvolved.Wehavefoundanswerstothefourresearchobjectivesthatwerelaidoutatthestartoftheresearchprojectandtheymustbeusedtoconstructananswertothekeyquestion.Fromwhatwehavediscussedwecanconfidentlysaythatpriceandqualitystillhaveanenormousimpactonloyalty,thisisduetotheroletheplayaskeysatisfactionfactorsforcustomersintherestaurantindustry.However,favourablepriceandqualityalone,cannotbuildanyformhigherformofloyaltythantheinitialconativestage.Toprogressbeyondthisstage,allothersatisfactionfactorsmustbemetforeachindividualcustomer,thesemayincludetheservicecustomersreceivefromstaffandtheoverallatmospherecreatedinsidetherestaurant.Itiswithoutdoubtneverthelessthatpriceandqualityaretwoofthelargestsatisfactionfactorsforcustomer,ashighlightedinFigure2.7.Duetothistheywillplayavitalroleinloyaltyformostcustomersas,ineffecttheyrepresentthevalueformoneythatcustomersreceive.However,wehavealsoestablishedthatsatisfactionfactorsalonearenotenoughtobuildloyaltytothedesirableactionstagethathasbeendiscussedthroughoutthisreport.Forthislevelofloyaltybrandingisalsorequired,somethingwhichwehaveestablishedcustomersareaffectedbyandarefullyawareofit.Brandingallowsforpositiveemotionaltiestobemadetoabrandandwhenmixedwith
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repeatedsatisfactionfromtherestaurant,loyaltycanprogressintotheactionstage.Therolesocialmediacanplaywithincustomerloyaltyisprofound.Ithastheabilitytoaccentuatetheeffectofanybrandingeffortsthatcompany’srelease,ifusedinthecorrectway.Thisisduetotheabilityitgivesbrandstocommunicatedirectlytoindividualcustomersquicklyandeasily.Thiswillallowbrandstogetafarbetterideaofexactlywhattheirtargetaudiencerequirestobecomeloyalcustomers.SocialmediacanalsobuildloyaltyineverystageofOliver’sframework(1999),aswhencustomerssharepositivereviewsandimagesoftheirvisitonlinethiswillencourageotherwiseuninterestedpeopletotrythebrand,puttingthemataconativestageofloyalty.Associalmediacontinuestogrowinsizeandimportance,thesefactorswillonlybecomeastrongerforceonthesuccessofrestaurantbrands.ConsideringthesefactorsandOliver’sframeworkforloyalty.Priceandqualityassatisfactionfactorsareasvitalnowastheyeverhavebeen,however,customersaredemandingmoreandmoretobesatisfied.Asitstands,itseemsasthough,brandingplaysaverysimilarsizeroleinbuildingloyaltyastheaforementionedsatisfactionfactorsofpriceandquality.Thereasoningbehindthisisthatbothbrandingandsatisfactionarerequiredtobepresentateverylevelofloyalty,andactionloyaltyinparticularcanonlybereachedwithverystronglevelsofboth.However,goingforward,withtheexpansionofsocialmediaandever-increasingcompetition,itispossiblethatbrandingwillbecomethemostimportantfactorbeforetoolong.
6.7 Further Research Recommendations Whileresearchingthistopic,afewotherareasofresearchthatcouldbeofparticularinteresttotherestaurantindustryhavebeenuncovered.Firstlywouldbeaninvestigatedintothefullimpactofsocialmediagoingforward.Alackofuptodateresearchonsocialmediawasdiscoveredduringthereviewofavailableliteratureandfullstudyintothepotentialitmayholdfortherestaurantindustrywouldbeofparticularinterest.Wehavealsodiscoveredawarenessfromcustomersofbrandingandhowitaffectsthem;thismaybeduetosocialmediabeingsaturatedwithbrandrelatedinformationthattheyseeeveryday.However,itposesaquestionofwhetherthiswillaffecthowcustomersareinfluencedbybrandinggoingforward,andwhethercompany’swillhavetoalterthewaytheypresenttheirbrandsforcustomerstoremainsusceptibletothem.
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7.0 References AssociationofNationalAdvertisers(2007)ANA/GuidelineStudyfindsBrandEquityaTopLineObjectiveforMarketers[Online]Availablefrom:https://www.ana.net/content/show/id/408.[Accessed24April2016].Brown,M(2013)‘Nando’snation:thechickenthatconqueredBritain’.TheTelegraph,[Online]Availablefrom:http://www.telegraph.co.uk/foodanddrink/restaurants/9902231/Nandos-nation-the-chicken-that-conquered-Britain.html.[Accessed24April2016].D.AAaker(1991)ManagingBrandEquity,Thefreepress,NewYorkDeChernatony,L.andRiley,F.D.(1998),Definingabrand:Beyondtheliteraturewiththeexperts’interpretations.JournalofMarketingManagement14:417-443.DeLeeuw,E.D.,Hox,J.J.,andDillman,D.A.(2008)TheEuropeanAssociationofMethodology:Mixed-modeSurveys:WhenandWhy[Online]Availablefrom:http://joophox.net/papers/SurveyHandbookCRC.pdf.[Accessed24April2016).Eversham,E.(2015)‘75%offamilieseatingoutinrestaurantsmoreregularly’.BigHospitality,[Online]Availablefrom:http://www.bighospitality.co.uk/Trends-Reports/75-of-families-eating-out-in-restaurants-more-regularly.[Accessed24April2016].FayreneY.L.,GoiChaiLee.(2011)Customer-Basedbrandequity:ALiteraturereview.JournalofArtsScience&Commerce,2(1).Franke,N.,andPiller,F.(2004)Valuecreationbytoolkitsforuserinnovationanddesign:Thecaseofthewatchmarket.JournalofProductInnovationManagement,21:401–415.Gangadharbhatla,H.(2008).FacebookMe:Collectiveself-esteem,needtobelongandInternetself-efficacyaspredictorsoftheI-generationsattitudestowardsocialnetworkingsites.JournalofInteractiveAdvertising,8(2):5-15.Gephart,R.,(2004)QualitativeResearch,AcademyofManagementJournal,43(4):454-462.Jacoby,J.,Chestnut,R.W.(1978)Brandloyalty:measurementandmanagement.Wiley,Chichester,NewYork.KalmanD.M.(2009)BrandCommunities,MarketingandMedia[Online]Availablefrom:http://www.terrella.com/bcmarketingwp2.pdf[Accessed24April2016].Kamakura,A.W.andRussellG.J.(1993)measuringbrandvaluewithscannerdata.InternationalJournalofResearchinMarketing10(March):9-22.
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Kapferer,J.N.(2004)BrandNEWworld,brandequity,TheEconomicTimes,June30,Mumbai.Keller,K.L.(2003),Brandsynthesis:themultidimensionalityofbrandknowledge”,JournalofConsumerResearch,Vol.29No.4.Laroche,M.,Habibi,M.R.,Richard,M.O.,andSankaranarayanan,R.(2012)Theeffectsofsocialmediabasedbrandcommunitiesonbrandcommunitymarkers,valuecreationpractices,brandtrustandbrandloyalty.ComputersinHumanBehaviour,28(5):1755–1767.Lassar,W.,MittalB.,andSharmaA.(1995)MeasuringCustomer-BasedBrandEquity.JournalofConsumerMarketing12(4):11-19.Liu,C.M.Huang,C.J.Chen,M.L.(2014)RelationalBenefits,CustomerSatisfaction,andCustomerLoyaltyinChainStoreRestaurants[Online]TheInternationalJournalofOrganizationalInnovation.Availablefrom:http://eds.b.ebscohost.com.bathspa.idm.oclc.org/eds/pdfviewer/pdfviewer?sid=12c4e4a8-7ccf-4c1e-b183-caeccc44710a%40sessionmgr112&vid=1&hid=113.[Accessed24April2016].Mangold,W.G.,andFaulds,D.J.(2009)Socialmedia:Thenewhybridelementofthepromotionmix,BusinessHorizons,52:357–365.Newman,JosephW.andRichardA.Werbel(1973),‘MultivariateAnalysisofBrandLoyaltyforMajorHouseholdAppliances.’JournalofMarketingResearch.10(November),404-409.Oliva,TerenceA.,RichardL.Oliver,andIanC.MacMillan(1992)."ACatastropheMixlelforDevelopingServiceSatisfactionStrategies."JournalofMarketing.56(July),83-95.Oliver,R.L.(1997),Satisfaction:ABehavioralPerspectiveontheConsumer.NewYork:irwin/McGraw-Hill.Oliver,R.L.(1999)‘WhenceConsumerLoyalty’.JournalofMarketingVol.63[Online]Availablefrom:http://www.uta.edu/faculty/richarme/MARK%205342/Articles/Oliver%201999.pdf.[Accessed24April2016].Phelan,CandWren,J.(2006)Exploringreliabilityinacademicassessment.[Online]Availablefrom:www.uni.edu/chfasoa/reliabilityandvalidity.htm[Accessed26April2016].Roberts,P.Priest,H.Traynor,M.(2006)ReliabilityandValidityinResearch,NursingStandard.[Online]Availablefrom:http://search.proquest.com/openview/3d4a3288ee02e614e09ec585c63ed52d/1?pq-origsite=gscholar.[Accessed24April2016].
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Saunders,MandLewis,P.(2011)DoingResearchinBusinessandManagement:AnEssentialguidetoplanningyourproject.Essex.PearsonEducationLtd.Saunders,M.Lewis,P.Thornhill,A.(2009)ResearchMethodsforBusinessStudents.FifthEdition.Essex.PearsonEducationLtd.Schau,J.H.,Muniz,M.A.,andArnould,J.E.(2009)Howbrandcommunitypracticescreatevalue.JournalofMarketing,73(5):30–51.Shocker,A.D.,Srivastava,R.K.,Ruekert,R.W.(1994)Challengesandopportunitiesfacingbrandmanagement:anintroductiontothespecialissue.JournalofMarketingResearch31,149-158.Shubber,K.(2015)‘Restaurantsectorturnoverup39%since2010’.FinancialTimes,[Online]Availablefrom:http://www.ft.com/cms/s/0/5524e324-fc7d-11e4-800d-00144feabdc0.html.[Accessed24April2016].Sun,P.&Lin,C.(2010).Buildingcustomertrustandloyalty:anempiricalstudyinaretailingcontext.TheServiceIndustriesJournal,30(9),1439-1455.Swait,J.,ErdemT.,LouviereJ.&DubelaarC.(1993)Theequalizationprice:Ameasureofconsumer-perceivedbrandequity.InternationalJournalofResearchinMarketing,10:23-45.Tashakkori,A.andTeddlie,C.(2003)HandbookofMixedMethodsinSocialandBehaviouralResearch.ThousandOaks,CA:Sage.Weber,A.(2011)QuantifyingYelp’simpactontherestaurantindustry.[Online]Availablefrom:https://www.aabacosmallbusiness.com/advisor/quantifying-yelps-impact-restaurant-industry-140006991.html.[Accessed26April2016].Weilbacher,W.M.(1995),BrandMarketing,NTCBusinessBooks,Chicago,IL.Williams,L.,andCothrell,J.(2000)Foursmartwaystorunonlinecommunities.SloanManagementReview,41:81–91.Windels,J.(2012)HowSocialMediaisRevolutionisingtheRestaurantIndustry[Online]Availablefrom:https://www.brandwatch.com/2012/02/socialmediaintherestaurant-industry/.[Accessed24April2016].
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8.0 Appendices
8.1 Questionnaire Layout 1. I regularly eat at the same restaurants when dining out. StronglyDisagree
Disagree Neutral Agree StronglyAgree.
2. I am more likely to try a new restaurant if i have heard of the brand name StronglyDisagree
Disagree Neutral Agree StronglyAgree.
3. I would remain loyal to a favoured restaurant, even if a new cheaper competitor restaurant of similar quality opened. StronglyDisagree
Disagree Neutral Agree StronglyAgree.
4. I use social media platforms, such as trip advisor, to choose restaurants to visit. StronglyDisagree
Disagree Neutral Agree StronglyAgree.
5. I would visit a restaurant solely due to social media reviews StronglyDisagree
Disagree Neutral Agree StronglyAgree.
6. I will regularly post pictures and/or information on social media sites when visiting a restaurant. StronglyDisagree
Disagree Neutral Agree StronglyAgree.
7. I would prefer to visit restaurants that have a reputation for having a positive impact on the environment, community, etc StronglyDisagree
Disagree Neutral Agree StronglyAgree.
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8. I see the image and style of a restaurant as vital to whether i will return to the restaurant. StronglyDisagree
Disagree Neutral Agree StronglyAgree.
9. The atmosphere and environment provided at a restaurant are vital to my enjoyment of a meal StronglyDisagree
Disagree Neutral Agree StronglyAgree.
10. Cheap, good quality food are the two biggest factors involved in me enjoying a restaurant StronglyDisagree
Disagree Neutral Agree StronglyAgree.
8.2 Interview Questions and responses 1.Whatwouldmakeyoudecidetovisitanewrestaurantoveroneyouhaveenjoyedvisitingbefore?P1.PersonallyIgetboredofeatingatthesameplacesallthetime,Iliketotrynewthings.Sometimesyourevertbacktogoingtothesameplacesbutitsnicetomixitupsometimes.P2.Ithinkwhenfriendsandfamilyhavebeensomewhereandreallyenjoyedit,itmakesmereallywanttogo,IsupposesocialmediacanplayIpartinthattoobecauseyoualwaysseetweetsofplacespeoplehavebeenorpeopletaggingthemselvesinsomewhereonFacebookP3.I’dsaythatwhenpeopleyouknowhavebeensomewhereandreallyenjoyeditthatwillalwaysmakemewanttogo.P4.I’mawayalotonbusinesssoIwillquiteoftenjustfindtheclosestrestaurantIcanfindthatwillservedecentfood,butwhenIcanI’llsticktorestaurantsIknowofandhavetriedbefore.P5.TripAdvisor,I’llalwayscheckrestaurantsoutonthereiftheyhavegoodreviewsI’lloftengoandtrythemP6.Idon’twanttoeatthesamethingeverytimeIgooutforfood.Ilovevarietyinmylifeandthatstartswithfood.
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P7.Ifit’scheapandhealthythenI’lltryitout,it’shardtofindhealthyfoodonabudgetandwhenIseesomewherethatdoesI’lljumponit.P8.Ilikeplacesthatseemfunandsociable,I’mnotafanofstuffyrestaurant’swhereeveryoneisreallyquiet.P9.Itendtosticktothesamerestaurantsingeneralsoanywhereelsehastobeprettyspecial.Isupposeifanumberoffriendshavehadawonderfulmealtherethenthatwouldpersuademe.P10.Weonlyhaveafewnearussototrysomewherenew,faraway,thereviewswouldhavetobeprettyspecial.2.Howwouldyousaythatsocialmediaimpactsyourchoiceofrestaurant?P1.I’llalwayscheckoutthereviewandinformationontripadvisorbeforegoinganywhere,ifthemajorityofreviewsareaveragetopoorIwillgenerallygosomewhereelse.P2.LikeIsaid,ifyouseepeopletalkingaboutsomewhereonsocialmedia,itmakesyouwanttogothere.YouwillalwaysseepeoplegoingtoNando’sandthatbecomeamassivethingonsocialmedia.P3.Idon’treallyuseitatalltochoosearestaurant,that’sjustnotwhatIusesocialmediafor.P4.OccasionallyI’llusetripadvisortocheckarestaurant’sreviewsifI’mgoingsomewhereforaspecialoccasion,butgenerallyitdoesn’timpactmetoomuch.P5.LikeIsaidIusetripadvisoralot,butsometimesI’llgototripadvisorifIseepeopletalkingaboutsomewhereonFacebookortwitter.P6.Itdoesn’timpactmetoomuchbecauseI’mgenerallywillingtotryanywhere,butifIseealotofpeopletalkingaboutsomewhereIhaven’tbeenonsocialmediathenImightbemoreinclinedtotryitIsuppose.P7.I’malwaysonsocialmediaandyouhearpeopletalkingaboutnewplacesandthingslikethat,andthatwillalwaysaffectyou.ButIcan’tsayit’stheonlywayIfindoutaboutnewplaces.P8.Itdoesmassively,I’llfindaplacetogoonsocialmedia,arrangewhoI’mgoingwithandwhenonsocialmedia,andI’llputpicturesonmyInstagramofusattherestaurant.P9.Idon’tusesocialmediasonotatall.P10.Itdoestoanextent,weonlygoofftonewplacesforbirthdaysandanniversaries,butwhenwedoI’lldoabitofresearchintotherestaurant.
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3.Howwouldyousayyouareinfluencedbythewayarestaurant’sbrandispresentedtolocalornationalmedia?P1.Ithinkit’sdifficultnottobenowadays,youseebrandseverywhere,andchainrestaurantsdominatethemarketandarereallyactiveonsocialmedia.IguessifI’minatownorcityIdon’tknowverywell,IwilltendtoeatatbrandsIknow.P2.Isupposeifyouhearpositivethingsaboutsomewhereitwillalwaysmakeyouwanttotryitifyoucan,likewiseifyouhearbadthingsitwilldotheopposite.P3.Ithinkwhenabrandhasareputationforpoorfoodorpoorservicethatwillalwaysputyouoff.Ithinksometimestherecanbeastigmaattachedtocertainplaces,likeMacDonald’s,thatwillputyouofftoo.P4.ItendtosticktobrandsIknowwhenIcan,onaday-to-daybasisanyway.Idon’thavethetimetolookupeveryrestaurantreviewtomakesureit’sdecent.I’llofteneatatplaceslikeNando’sbecauseit’smorecasualandIcansitanddowork.P5.Ilikesmallsustainableplaces;I’mavegansoIhavetoworkquitehardtofindnewplaces.Soifit’sgotareputationforusinglocalproduceandtryingnewthingswithinveganfoodthenIwillbeinterestedstraightaway.P6.Iwouldn’tsaythatIamtoomuch,butIsupposeifyouhearabrandnameenoughyouwilleventuallyenduptryingitwhetheryouknowrealizeitsbecauseofthemediaornot.P7.IfIcangetholdofvouchercodesanddiscountdealsthenthathelps.OtherthanthatIthinkeveryonelikestheideaofgoingtosomewherethatisfashionableandtrendyifyoucanaffordto.P8.Ilikegoingtocasualplaceswhereyoucanhavealaugh,sosomerestaurantsarebetterthanothers.IloveNando’sandTurtleBaybecauseeverythingaboutthewaytheycomeacrossisquitechilledandcasual.P9.I’mnotreally,ItendtoonlylistentotherecommendationsofmyfriendsandfamilybecausetheyknowwhatIlikeandhavesimilarstandards.P10.Ifyouheargoodthingsaboutarestaurantitwillmakeyouinterestedingoing,that’sjustthewayitworksdoesn’tit.Likewiseifyouhearbadstoriesitwillputyouoff.4.Areyoumorecomfortablevisitingarestaurantwithstrongbrandingthanarestaurantthatyouhaveneverheardof?Why?
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P1.Definitely,restaurantswithstrongbrandstendtoprovideafeelingof,‘youknowexactlywhatyou’regoingtoget’.SomepeoplemaynotlikethatbutwhenI’mspendingmoneyIprefertoknowIwilllikewhatI’mspendingiton.P2.Yeah,IguessIwouldbe,Ialwaysthinkifalotofpeopleknowaboutitthentheremustbeareasonwhy,allthosepeoplecan’tbewrong.P3.WhenI’mathomeItendtogotorestaurantsIknowbecauseIknowwhatIwillbegetting,butwhenIvisitnewplacesIliketotrynewthingsandnewrestaurants.P4.Definitely,itsmucheasierknowingexactlywhatyou’llgetinachainofdecentrestaurantsthanriskingitwithsomewhereyoudon’tknow.P5.Yes,aslongasit’stherightkindofbrand,somepeoplemightpreferquickfoodetc.Ialwayslookforsustainablehealthyplaces.P6.No,I’lleatanywhere,whetherunknownoramassivechainrestaurant,aslongasittickstheboxesofwhatIwantforagoodmealI’mnotfussedbythebranding.P7.YeahIguessso,Ialwaysassumethatthereisareasonpeoplehaveheardofsomerestaurantsandnotothers,becausetheyarebetter.P8.YeahIdo,youcandomoreresearchonwhattheplaceislike,withsmallunknownplacesyoucanfindreviewsonthefoodbutnotwhatitslikeasawhole.P9.Nonotreally,likeIsaidIwouldonlychoosesomewherenewifsomeoneIknowwellhasenjoyeditthere.P10.YesI’dsayso,arestaurantwithacertainidentityhasgotanappealtoit,anditmakesachangefromtherunofthemillrestaurantsthataresocommon.5.Whatdoyouseeasthemostimportantfactorsthatmakeyouwanttorevisitarestaurant?P1.Thefoodqualityobviouslyisimportant,butIthinkthattheserviceandenvironmentattherestaurantisjustasimportant,thefoodcanbegreatbutifitsboringandthestaffarerudeitwouldputanyoneoffgoingagain.P2.Theatmosphere,Iwillusuallygooutwithmyfriendsandweliketohavealaughandbequiteloud,soifwegosomewhereveryquietwestickoutlikeasorethumb.Thefoodisimportantbutwheneverwegooutitsmoreasasocialthing.P3Thequalityoffoodisbyfarthemostimportantforme,that’swhyyougoouttoeatattheendoftheday,butIthinkthepriceplaysapart,somaybeyoucould
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saythevalueformoney.Ialsothinkconvenienceisimportant,I’llordermoreregularlythroughrestaurantsthatareondeliveroobecausetheywillbringrestaurantfoodtoyou.P4.Wi-FiConnection*laughter*.Butseriouslythefoodhastobedecent,andIdon’twanttopayanarmandalegbecauseIeatoutmostdays.P5.Thewaytheysourcetheiringredients,ithastobelocal,andIlikehavingstaffthatknowaboutthefoodbecauseItendtoaskquestionsaboutthefood.P6.Ieatatalotofplacesandsometimesyourealizethefoodisn’tthebeallandendallofanicemeal,aslongasit’satadecentstandarditwillbefine.Therestauranthastobenicelydecorated,haveabuzzingatmosphereandlovelystaff.Ithinkthosearefarmoreimportant.P7.Thecostandthefoodforsure,thatwhyyougotoarestauranttobehonest,ifthefoodisrubbishoritstooexpensivethenIwouldn’tgoback.P8.;Ilikesomewherefun,whereyoucanhavealaughwiththewaitersandwaitresses,andnotbeaskedtobequiet.Butcostisquiteimportant;I’mastudentsoIdon’thavemuchmoneyknockingabout.P9.ThestandardoffoodandtheserviceIreceivefromthewaitingstaff.P10.Howcloseitistous,wewon’tdriveanhourtoarestauranteveryweekendnomatterhowgooditis.Otherthanthat,thequalityofthefoodisimportant.