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Factors Influencing Consumer Behavior on Dining-Out

A thesis submitted
By
Muahmmed Ahmed (4157)
Mian Faraz Mahmood (3632)
Muhammed Jahanzaib (4370)
Muhammed Nabeel ( )
Muhammed Maaz Siddique (4137)
To
Department of Business Administration
In partial fulfillment of
The requirement for the
Degree of
BACHELORS OF BUSINESS ADMINISTRATION
In
Marketing
This thesis has been
Accepted by the
FACULTY OF BUSINESS ADMINISTRATION
Mr. Shahnawaz Adil








Factors influencing consumer behavior on dining out 2

Contents
1. Introduction ............................................................................................................................ 4
1.1. Background ..................................................................................................................... 4
1.2. Problem Statement .......................................................................................................... 5
1.3. Research Objective ......................................................................................................... 5
1.4. Research Question .......................................................................................................... 5
1.5. Significance of the Study ................................................................................................ 5
1.6. Limitations and delimitation of the Study ....................................................................... 6
2. Literature review .................................................................................................................... 9
2.1. Theoretical Background .................................................................................................. 9
2.1.1. Conceptual Framework ............................................................................................ 9
2.2. Empirical Study ............................................................................................................ 12
3. Methodology ........................................................................................................................ 20
3.1. Research Approach .......................................................... Error! Bookmark not defined.
3.2. Research Purpose .......................................................................................................... 20
3.3. Research Design............................................................................................................ 20
3.4. Data Source ...................................................................... Error! Bookmark not defined.
3.5. Target Population ............................................................. Error! Bookmark not defined.
3.6. Sample Size ...................................................................... Error! Bookmark not defined.
3.7. Data Collection Instrument ........................................................................................... 21
3.8. Sampling Technique ........................................................ Error! Bookmark not defined.
3.9. Statistical Technique ..................................................................................................... 21
3.10. Model Hypothesis ....................................................................................................... 22
3.11 Research Model ........................................................................................................... 21
3.12.1. Consumer Behavior ................................................ Error! Bookmark not defined.
3.12.2. Location ............................................................................................................... 22
3.12.3. Service.................................................................................................................. 22
3.12.4. Hygiene ................................................................................................................ 22
3.12.5. Price, Taste and Quality ....................................................................................... 22
3.12.6. Environment ......................................................................................................... 22
Bibliography ............................................................................................................................ 35


Factors influencing consumer behavior on dining out 3






Chapter # 1
Introduction


Factors influencing consumer behavior on dining out 4

1. Introduction
1.1. Background
Today restaurant industry is an extremely profitable and growing industry in
Pakistan like any other country in the world. With the effect of economic growth, income
growth and globalization, trend of dinning out increases. By dinning out with family or
with friends, people are satisfying their hunger with enjoyment and social interaction
1
.
Several international fasts food brands are currently operating in all over Pakistan and
there are also many local restaurants serving to the people in different areas of the
country. Local fast food outlets and restaurants are increasing day by day and it shows the
attractiveness and the demand of the market.
The food consumption process has changed with the change of the time. Specially,
fast food has become very popular in the whole country. For youngster, fast food has
become a part of their lives because of its time saving, money saving and taste. Now
people has less lunchintervals so they prefer fast food which can easily be purchased and
eat in that short lunch time, thats why fast food is becoming very popular and is growing
rapidly
2
.
Like any other industry, questions and queries are also generating in this sector
and it is now the time to research and find the answer of those questions. Specially, fast
foods are highly criticized by the doctors and the media because of its procedure which
may include food colors, other dangerous chemicals and hygiene of the restaurants. Not
only fast food outlets, local restaurant are also facing same problems. Concerning the
quality, environment and hygiene factor, the consumers has become conscious about the
restaurants.

1
Park 2004
2
Hanson 2002
Factors influencing consumer behavior on dining out 5

Now it is important to know the attitude of the consumer towards the restaurants.
Regarding any object, place or events, attitude can be positive or negative
3
.
1.2. Problem Statement
Many studies have taken placeto identify the factors which influences consumers
on dining out
4
. The result shows positive impact of consumers on dining out
5
.
Researchers found that location, service, hygiene, environment, brand image, quality,
taste and price play a vital role in persuading consumers towards restaurants
6
. It helps
restaurant operations to be more efficient and serve excellent services. As there is trend of
dinning out increasing but there is lack of researches on this topic in our country. The
current research of ours is going to find out the impact of trend in food industry and also
restaurant services.
1.3. Research Objective
To determine the factors influencing consumers behaviorwhile dining out.
1.4. Research Question
What are the factors influencing customers behavior on dining out?
1.5. Significance of the Study
This study carries significance by a number of means as it will serve as the tool
for the dine-in industry. Many researches are carried out by only confining to fast food
restaurants but this is not the case here as a result it becomes a vast medium of
information to rely on. The research will be useful in understanding the dining out culture
that is spreading rapidly in Pakistan. It will also aid us in understanding what customers
prefer when they dine out and for restaurants in improving the market value of their

3
Alam&Iqbal (2007)
4
Janggaet al., (2012); Islam and Ullah (2010); Soriano (2002)
5
Andaleeb and Conway (2006); Nezakatiet al., (2011)
6
Bourantaet al., (2009); Shaikh and Khan (2011); Aksoydan (2006); Ryuet al., (2012)
Factors influencing consumer behavior on dining out 6

franchises. It will give an insight to the demands of the customers which will help them in
enhancing their standards.
1.6. Limitations and Delimitation of the Study
1. Lack of time and space to conduct an extensive research.
2. Lack of availability of funds to broaden the sample size.
3. Vast geography could not be covered in the short span of time.
The study is delimited to the respondents which are frequently visit restaurants for
dinning out. To make the data collection manageable, the instrument only contains likert
scale responses. Only the items approved by subject area expert were included in the
instrument. Further reliability analysis determined which items utilized in the final
document. The results from the study generalized for the store shoppers and consumers
that buy and use Shan spices.

1.7 Definition of Key Terms
1.7.1. Consumer Behavior
The study of the processes involved when individuals or groups select, purchase,
use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
7
.
1.7.2. Location
Location of a restaurant includes variables like accessibility, population base,
parking, general appearance and visibility
8
.
1.7.3. Service
Service related variable includes knowledge, communication/friendliness staff,
table service, customer value and responses and speed of service
9
.

7
Hoyer and Macinnis (2008)
8
Arduser (2003)
Factors influencing consumer behavior on dining out 7

1.7.4. Hygiene
The term covers personnel, kitchen, service area and equipment conditions, as
well asfood
10
.
1.7.5. Price, Taste and Quality
This variable includes price, taste, quality, presentation and variety of food. All
variables related to food include presentation of food, quality of food, variety of food and
taste of food
11
.
1.7.6. Environment
The term covers ambience, atmosphere, inter dcor and appearances
12
.
1.8. Summary
In this chapter we discuss about background of study that trend of dinning out in Pakistan
is increases and industry is growing rapidly. Like every growing industry problems and
questions arises in this industry as well but there is lack of researches on this topic in
Pakistan. This research will determine those factors which influencing consumer in
dinning and it will help reader to understand those factors which influencing on dinning
out. We have take price, location, hygiene, environment and service as independent
variable and consumer buying behavior as dependent variable.






9
Voon (2011)
10
Aksoydan (2006)
11
Soriano (2002)
12
Aksoydan (2006)
Factors influencing consumer behavior on dining out 8





Chapter # 2
Literature Review


Factors influencing consumer behavior on dining out 9

2. Literature review
2.1. Theoretical Background
To determine the consumer behavior by studying plenty of behavior of consumer
who plays their role as buyer
13
. In practical, it deals with buying and consuming products
and services that satisfy them. Preferences can be defined as decision making process
which is influenced by the set of attitude of an individual
14
. Consumer first choice are not
stable, they changes from time to time. The choices differ among the individuals, which
might be the reason of their different taste and likeness. Preference should also be defined
as individual desire of a person for utilization of service and good.
Variables associated to food include food quality, food taste, food price, food
presentation and diversity of food. Variables that are related to food include food variety,
presentation, quality and taste
15
. The main reason by which customers are attracted
towards restaurant is fresh raw material and great food quality. Variables related to
convenience include seating with comfort, place, facilities of car parking and maximum
opening hours opening
16
.
Variables related to atmosphere include appearance of a staff, hygiene, ambience
and efficient staff. Restaurants can get the competitors edge through ambience
17
. To
attract customers, the restaurant owner must invest money to provide a new experience to
customers through their restaurants atmosphere.
Variables related to service include service speed, service table, reliable service
and efficient and train staff. Many researchers found serious issues of hospitably service
industry. The management of restaurants needs to focus more consideration to the service
serves to their consumers so that they could satisfy maximum customers.

13
Johns and pine (2002)
14
Lichtenstein and Solve (2006)
15
Soriano (2002)
16
Aksoydan (2006)
17
Horeco (2002)
Factors influencing consumer behavior on dining out 10

The behavior of a buyer and their needs those are significant to know the cause of
eating out
18
. According to the association of Philippine restaurant and hotel, Pilipinos
dine outside because of various reasons. Reasons include: pleasure, different events
celebration, requirement of a business, appropriate, food enjoyment of high quality, and
different taste from home made food, treat your guest, for relaxation, and suitable price
and family enjoyment.

18
Liu and Chen (2000)
Factors influencing consumer behavior on dining out 11

2.1.1. Conceptual Framework


- Cleanliness of restaurant
- Cleanliness of tablecloths
and napkins
- Cleanliness of food
- Cleanliness of toilet and
lavatory
- Extra offers
- Menu-item variety
- Speed of service
- Ease of making complaints
to manager
- Good behavior of service
personnel

Service
Location
- Transportation/accessibility
- Location of restaurant

Hygiene
- Price of food
- Portion size
- Tastiness of food
- Local/ethnic foods
- Appearance/presentation of
food
Price, Taste
and Quality
- Calm, quiet atmosphere
- Interior dcor
- Comfortable atmosphere
- General appearance of
restaurant
Environment
(Atmosphere)
Consumer
behavior on
dining out
Factors influencing consumer behavior on dining out 12

2.2. Empirical Study
Ramdeen et al., (2007) relate the COQ cost of quality ideas by using prevention,
appraisal and failure costs (PAF) model in a hotel restaurants atmosphere. They used five
variables in their study that are failure cost (internal), prevention cost, quality cost, hotels,
restaurants and customer satisfaction. The result shows that to get better quality, more
emphasis must be laid on avoidance actions in food and services. They suggest that to get
better quality, more emphasis must be laid on avoidance actions in food and services.
Namkung and Jang (2007) investigate the key points that create differentiate
between highly satisfied customer and unsatisfied customers. They did survey through
questionnaire from four different restaurants according to the social status from 287
respondents. Logistic regression was used to determine the qualities for satisfying the
customers. Different services of restaurants are their independent variable and dependent
variable is customers satisfaction. They found that there is highly big difference among
the perceptions of non-satisfied and satisfied customers. They recommend that this study
will help those managers who think that customers are very sensitive in terms of level of
quantity.
Goyal and Singh (2007) examine the Consumer perception about fast food in
India. Sample size of this research was 200 targeted populations. Variable of this research
was Dimensions of a delivery and service, dimension of product and dimension of
quality. Statistical approaches were used in this research Include analysis of descriptive
statistics, analysis of frequency distribution and analysis of reliability. Result indicates
that mostly Indians who were found off visiting fast food outlets is just for change in taste
and as well as for fun as compared to their home, but home food is their first preference.
Boyce et al., (2008) study the consumer perceptions related to food safety
practice. They took interviews of a nine panelist and mediator to take publics view about
safety and packaging of takeout food. Interview was based on five questions related with
Factors influencing consumer behavior on dining out 13

the frequency of person to takeout foods and they took interview from the people who
belong from different kind of cultures and belong from the different ages. They use a
qualitative methodology. The results shows that people always prefer hot food and the
ability to re heated. The logo printed outside the container is also appealing for consumer.
They find that as if a person takes out food the risk is illness will increase.
Bourants et al., (2009) define the link between internal service quality and
external service quality and they study that there is direct impact on external from internal
service quality. Restaurants were randomly selected for survey and they received 100
usable responds and 201 from patrons. Statistical analysis was carried out with SPSS and
Stat graphics. They found that nine out ten customers are satisfied from the quality of
restaurants and regarding waiters, they found that eight out of ten are satisfied with the
internal service quality. They suggest that internal service quality has direct impact on
external service quality so managers should focus on internal service quality for
improving external service quality.
Ryu et al., (2010) examine the effect of experimental and practical values
alongside with satisfaction of customer and behavioral drive creates an impact on each
other in the fast-casual dinning industry. They have taken four variables: satisfaction of
customer, utilitarian value, hedonic value and intentional behavior. They applied
Structural equation modeling and confirmatory factor analysis on a sample of 395
students. The results show that utilitarian value shows a greater impact positively on
satisfaction of customer as compared to behavioral hedonic values.
Liu and Tsai (2010) focus on foods that are healthy for consumers as a topic of
research within Taiwan through a questionnaire survey from 601 respondents. They used
correlation analysis model technique. In their study, they used standard of living, health
food production, service excellence, and variety of channel categories, health food
industry as variables. They conclude that in variety of channel categories the service
Factors influencing consumer behavior on dining out 14

excellence has positive involvement and there might be a lot of influence consumers
variety of channel categories in some demographic variables.
Islam and Ullah (2010) indicate the features which affect consumers choice on
fast food and changing of food eating habit in Dhaka, Bangladesh. This study has been
carried out by 250 samples. Their three variables were fast food energies the respondents,
fast foods are preferred when people are outside their homes, and fast food is good for
lifestyle. They use mean, standard deviation, regression analysis techniques. Result
indicates that the consumers prefer most the brand image, taste, quality and cost by which
consumers motivate and give preferences to those fast food restaurants having these
qualities. Study suggests that brand reputation image, quality, cost and taste attract more
consumers towards fast food restaurants.
Voon (2011) explores the merits of service environment, food quality and its
pricing from the customers viewpoint. The number of sample used in this research was
409. Variables of this research were gender, age, race and education. The method used in
this research was survey questionnaire, Reliability analysis and multiple regressions. The
result shows the satisfaction of a mostly customers with the restaurants and also in terms
of human service and its pricing strategies. However Satisfaction of customer will not
essentially relate with the physical environment of the outlets of fast food restaurants, if
food quality that is provided there is low.
Tatet al., (2011) categorize customer satisfactions key determinants in fast food
outlets. They took survey of 358 respondents. In their study, they used customer
satisfaction, consistency, tangibility, awareness, awareness, guarantee, and understanding
as their variables to analyze results. Multiple linear regressions were used as a technique.
They resulted that customer purchase intentions positively influence customer satisfaction
in fast food restaurants. They suggested that customer satisfactions dependent on the top
Factors influencing consumer behavior on dining out 15

management of fast food restaurants services that can be managed by planning,
promotion, marketing and operating.
Nezakatiet al., (2011) examines the factors that attract customers towards fast
food restaurants considering factor of customer loyalty through a sample size of 196
respondents. They used nine variables: product (quality and attribute) brand name, quality
of service, store atmosphere, promotion, and price and customer satisfaction. They used
correlation and regression as their technique. They concluded that Malaysian consumers
are loyal to fast food restaurants that exist locally. They suggested that this study will be
beneficial for the local industry to increase customer loyalty and purchase intention in
future.
Kim et al., (2011) examines the well-being perception and dining intrinsic
expressions associated with chain restaurants in South Korea. The researcher used a
sample size of 249 consumers. Variables of this research were income, race, gender and
educational level. The methods used in this research were squared correlation, average
variance and standardized coefficient analysis technique. The result shows that Brand
image plays major role in creating patrons positive behavioral intensions. Findings also
indicate that these days CWB plays a strong psychologically and motivational role for
patrons viewpoint.
Hwang et al., (2011) analyses the effective management of waiting lounge at
restaurant s under busy times. Sample size of their study was 61 students and their
variables were attitude towards service, independent variable is crowding, and dependent
variable is approach avoidance response that is willingness to pay money and willingness
to wait. They use mean, standard deviation, Regression analysis models. It is resulted
that in a restaurant waiting are high crowded condition make people feel avoiding others
and avoiding talking to each other.
Factors influencing consumer behavior on dining out 16

Ali &Rehman (2011) analyses the factors that makes quality of service a
fundamental part of customer satisfaction. They have undertaken responses of 400
customers. They used two variables: tangibles and responsiveness. They used servqual
and dineserv tool as a technique. The results support by recommending high standards of
service in restaurant industry leading to satisfaction. The study also recommends that
feedback through M-Commerce marketing can be an effective tool to testify quality.
Tabassum and Rahman (2012) investigate the thoughts of consumers for different
fast food restaurants in Bangladesh and their difference in attitudes. They took sample
through questionnaire and 100 students of different universities take part in it. They took
Consumers choice of a specific restaurant as dependent variable and factors like quality,
location, price, environment as independent variables. They used and tested multi
attribute model in four most visited fast food restaurants; KFC, Pizza Hut, Western Grill
and Helvetia. They found that people mostly prefer Pizza Hut and Helvetia has least
favorable attitude of consumers because of quality, quick, price, environment and service.
The study recommends that factors like food quality, speed of service, environment and
price of food influence consumer so fast foods resultants should highly focus on them
Sahariet al., (2012) examine the aspects that plays key role in customer
satisfaction for meal dimension in family restaurants in Malaysia through a sample size of
460 customers. They used variables namely: food quality, its pricing, its portioning and
presentation. They used chi-square test as their technique. Their results show that quality
of food, presentation of food, meal portion and food pricing creates a positive impact on
customer satisfaction in the given order. The study provides a guide to restaurant owners
of the factors of food dimension that leads to customer satisfaction and loyalty.
Rahman (2012) explore the aspects of consumer associated with perception and
behavior including demographic characteristics that play a role in restaurant
selection with the sampling frame of 350 respondents. They use exploratory factor
Factors influencing consumer behavior on dining out 17

analysis (EFA) model technique. They use five variables consumers perception,
consumers age, consumers income, consumers gender and consumers behavior. The
result shows that a significant proportion of consumers in Dhaka city of Bangladesh are
very sensitive towards choosing a restaurant services. They suggest that consumers
perception always mediating by consumers age, gender differences and their income.
Moussa et al., (2012) investigates the Fast food attributes in quality and service
delivery in food stuff process. Variable of this research were Food, Quality, Sensory,
Temperature, Pouch. Various methods was used in this research, these include statistical
analysis (percentages, weighted avg. Method, charts), Analysis of correlations, analysis of
independent samples, analysis of pair samples, variance test and ANOVA analysis & for
the laboratory examination taste panels data analysis methods were used. The result
shows that there is a need to redesigning the strategies of serving food. They need to
focus on the delivery time and make the delivery time less than 10 minutes in order to
efficiently grow the restaurant business and delivery vehicle must also have selected in
viewpoint of the fast delivering of food as soon as possible.
Lee et al., (2012) examine how each section of food service which includes
physical existence of things alongside with food and service creates an impact on
customers look at restaurant, the value they feel and at the end being satisfied. They
collected a total of 300 samples for final study. They have taken five variables into
consideration: food service quality, restaurant image, value to customer, satisfaction for
customer and behavioral intention. The technique applied for analysis is namely structural
equation modeling. According to results food service quality plays a role in restaurant
image which itself plays a role in customer perceived value. Behavioral intentions are
affected by customer satisfaction on other hand it is led by customer perceived value is
affected by environment and food.
Factors influencing consumer behavior on dining out 18

Janggaet al., (2012) identify aspects that verify the satisfactions level experienced
by customers while visiting a family chain restaurant through sample size of 40 outlets in
Malaysia. The technique was used reliability and validity analysis test. In their study, they
used Food, Service, customer satisfaction and family chain restaurant as their variables.
They concluded that while visiting to the restaurants, high level satisfaction will outcome
in return. So in general, create a good judgment of trustworthiness for this kind of
restaurant and in particular, creates the restaurants brand name.
Frank (2012) examines the attitudinal and behavioral suboptimal preferences of
foods in kids. In their study, they used, Germany, fast food restaurants, restaurants, fast
food, customer satisfaction, consumer behavior, rumor, social appreciation as their
variables. They used moderated regression analysis model as a technique to analyze
results. They conclude that fast food associated childhood fatness is not due to the lack of
knowledge; it might be caused by not having rationality. They suggest that food quality,
brand likeness, social appreciation, apparent competitive advantage as the key
determinants of customer thoughts and purpose.
Baig and Saeed (2012) examine the market of fast food and attitudes of consumer
in Pakistan by using convenience sample of 100 respondents. In their study, they used
age, gender, education, income, lifestyles, activities and interests as their variables. They
used proportion technique to analyze the results. They concluded that day by day fast
food consumption is increasing and they suggested that investing in food business has
become significant as it is a means of life.



Factors influencing consumer behavior on dining out 19




Chapter # 3
Methodology


Factors influencing consumer behavior on dining out 20

3. Methodology
3.0. Introduction
The research will be useful in understanding the dining out culture that is
spreading rapidly in Pakistan. It will also aid us in understanding what the customers
prefer when they dine out and for restaurants in improving the market value of their
franchises. It will give an insight to the demands of the customers which will help them
enhance their standards.
3.1. Research Approach
Quantitative research approach is preferred for the research title factors
influencing consumers on dining-out. This research was basic and explanatory in nature
so we are using quantitative approach. Quantitative data was collected through structure
questions and measurement must be statistically valid, objective and quantitative.
3.2. Research Design
Structure of any research study is called research design.Research design is a
structure for finding the link between variables. It helps to get direction and systematizes
the research. It gives the research question answers by choosing information and selecting
types. This design helps in constructing every step from the hypothesis to the data
analysis. Research design used in this study is co-relational research design, which is a
process of collecting and analyzing the data which finds out that whether a link exists
among variables and at what level.
3.3 Data and Sampling
Our source of data is primary source, in which we collect our data through
questionnaire from the different consumers of restaurants or having an experience of
dinning out. We target the population by segmenting them into different bases. By
geographically we target different areas like Gulshan - e - Iqbal, North Nazimabad etc.
Factors influencing consumer behavior on dining out 21

Demographically we target mainly on youth, family, job oriented and business oriented
people who ages 15-45. Questionnaire is the research instrument of this research. The
research will be conducted in Karachi, Pakistan. The chosen population will be those who
have experience of eating in restaurant or outside home. The sampling technique use in
this research will be purposive technique and total sampleof 250 respondents.
3.4. Research Instrument
Data collection instrument that we choose is questionnaire form, consist of some
questions followed by several options of response. Options of responses are:
1. SA = Strongly Agree
2. A = Agree
3. N = Neutral
4. D = Disagree
5. SD = Strongly Disagree
3.4.1. Statistical Technique
Techniques for decreasing co relational information to a more minor number of
measurements or variables; starting with a correlation lattice a little number of segments
or variables are concentrated that are viewed as the fundamental variables that explain the
interrelations perceived in the information.
3.5. Research Model
CB = o
o
+

|
1
(LOC) + |
2
(SER) + |
3
(HYG) + |
4
(PRI) + |
5
(ENV) + c
Where CB denotes Consumer Behavior, LOC denotes Location, SER denotes Service,
HYG denotes Hygiene, PRI denotes Price, Quality and Taste and ENV denotes
Environment.
Factors influencing consumer behavior on dining out 22

3.6. Model Hypothesis
Ho
1
: Location has insignificant relation on consumer behavior on dining out.
Ho
2
: Service has insignificant relation on consumer behavior on dining out.
Ho
3
: Hygiene has insignificant relation on consumer behavior on dining out.
Ho
4
: Price, Taste and Quality have insignificant relation on consumer behavior on dining
out.
Ho
5
: Environment has insignificant relation on consumer behavior on dining out.
3.7 Description of Variables
3.7.1 Outcome Variable
1. Consumer behavior
The study of the processes involved when individuals or groups select, purchase,
use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
19
.
3.7.2 Predictors
1. Location
2. Service
3. Hygiene
4. Price, Taste and Quality
5. Environment
3.8 Reliability of the Measuring Scale
We are using Likert scale as our measuring scale. Which is consist of 5 responses
in each question.

19
Hoyer and Macinnis (2008)
Factors influencing consumer behavior on dining out 23

1. SA = Strongly Agree
2. A = Agree
3. N = Neutral
4. D = Disagree
5. SD = Strongly Disagree
This type of scale does not ask yes or no answer. They allow for degrees of
opinion. Thats why quantitative data is usually obtain by it and by this data can be
analyzed easily.

3.9 Validity of the Research Instrument
Our research instrument is questionnaire. By using this instrument we are getting
our data. We have adopted our questionnaire from the Aksoydan (2006) Hygiene factors
influencing customers choice of dining-out units: findings from a study of university
academic staff .
3.10 Ethical consideration
- Safety of the research participant. This is accomplished by carefully considering
the risk/benefit ratio, using all available information to make an appropriate
assessment and continually monitoring the research as it proceeds.
- We obtain informed consent from each research participant.
- We are sensitive to not only how information is protected from unauthorized
observation, but also if and how participants are to be notified of any unforeseen
findings from the research that they may or may not want to know.
- WE consider how adverse events will be handled; who will provide care for a
participant injured in a study and who will pay for that care are important
considerations.
Factors influencing consumer behavior on dining out 24

3.11 Summary
In this chapter we have define that we are using quantitative approach. Our
research design is co relational design and data is consisting on primary source which is
collected through questionnaire which is consisting on likert scale. We have taken data
from 150 respondents. Technique applied in this study is factor analyses, which will be
followed by regression analyses. Regression is a technique is to check the relationship of
the variables being severe or vice versa. We have take price, location, hygiene,
environment and service as independent variable and consumer buying behavior as
dependent variable. We are using likert scale because it is easy to use in quantitative
research and we have adopted our questionnaire from Aksoydan E. (2006) research which
investigate Hygiene factors influencing customers choice of dining-out units: findings
from a study of university academic staff.









Factors influencing consumer behavior on dining out 25





Chapter # 4
Data Analysis, Presentation
of Findings, and Conclusion








Factors influencing consumer behavior on dining out 26

4. Data Analysis, Presentation of Findings, and Conclusion
4.1 Pilot Study
Pilot study was conducted with a sample size of 40 respondents and the reliability
(cronbach alpha value) evaluated to be 0.81. This shows the reliability of the research
instrument.
4.2 Demographics of respondents

Gender Frequency
Male 66
Female 34
Total 100

The following table shows that the gender and their frequencies. The total numbers of
respondent is 179 in which 126 are male and 53 are females.

Age Respondents
Between 20 to 30years 109
Between 30 to 40years 31
Between 40 to 50 years 29
Total 179

The following table shows that total respondents are 179 and the respondents are divided
into 3 scales, between 20 years to 30 years its frequency is 109, between 30 years to 40
years its frequency is 30 and between 40 years to 50 years its frequency is 29.

Factors influencing consumer behavior on dining out 27

4.3 Reliability Statistics
Cronbachs alpha is used to measure the reliability of the data, wheatear the analysis
perform and conclusion of the data are reliable to forecast and understand. In this study
the value of cronbachs alpha r is. 915 and the number of items are 30. The value
associate with alpha is said to be good. This shows the data is 91.5% reliable for the
analysis and conclusion drawn from that data is reliable to forecast and understand.
4.4 Outliers in the data set
Total number of instruments distributed to the targeted population was 190. Among them
179 responses were received and 11 of them were outliers.
4.5 Kaiser-Meyer-Olkin
The value of KMO and Barletts test is 0.878. It should be above .65.This shows that
sample size of this study is sufficient enough to carry out factor analysis. As there were 6
variables in total having 30 items.

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .878
Bartlett's Test of Sphericity Approx. Chi-Square 2003.983
df 435
Sig. .000


4.6 Total variance explained
Total Variance Explained
Component
Initial Eigenvalues
Extraction Sums of Squared
Loadings
Rotation Sums of Squared
Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%

1 7.762 31.047 31.047 7.762 31.047 31.047 3.466 13.864 13.864
2 2.017 8.069 39.116 2.017 8.069 39.116 3.317 13.269 27.134
Factors influencing consumer behavior on dining out 28

3 1.350 5.401 44.516 1.350 5.401 44.516 3.120 12.482 39.616
4 1.216 4.863 49.379 1.216 4.863 49.379 2.250 8.998 48.614
5 1.115 4.462 53.841 1.115 4.462 53.841 1.307 5.227 53.841

This table shows 5 items shows 53.841% variance in whole data and
4.7 Factor Analysis
Factor analysis was used for reducing many items into fewer factors to be used for
regression analysis
4.8 Multiple Regression Analysis (MRA)



The Model Summary table gives the R (.758) and Adjusted R square (.562). , we use
the Adjusted R square to see which model is explaining more of the variance in the
dependent variable Thus, this model is predicting 56.2% of the variance hi math
achievement.


ANOVA
Model Sum of
Squares df
Mean
Square F Sig.
1 Regression 96.304 5 19.261 45.570 .000
Residual 71.431 169 .423

Total 167.734 174


As can be seen from the ANOVA table, the model of factors influencing consumer on
dinning out, F (5, 169) = 45.570, p< .05



Model Summary
Model
R
R
Square
Adjusted
R
Square
Std. Error
of the
Estimate

1 .758 .574 .562 .65012771
Factors influencing consumer behavior on dining out 29


Coefficients
a

Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant) .025 .049

.502 .616
hygiene .330 .049 .337 6.705 .000
atmosphere .376 .049 .384 7.656 .000
service .447 .049 .455 9.070 .000
location .319 .049 .325 6.483 .000
price -.024 .049 -.025 -.495 .621
a. Dependent Variable: conumer behaviour

As shown in the co-efficient table given below, hygiene, atmosphere, service and location
have significant impact (p < 0.05) on consumer behavior. Thus rejecting the first,
second,third and null hypothesis. Whereas, price failed to predict the outcome variable (p
> 0.05), i.e. accepting the null hypothsis
4.9 results
Hypothesis 1 shows a significant relationship between hygiene and consumer behavior.
Therefore Ho

is rejected. The prediction is supported by (.000,t=6.705)
Hypothesis 2 shows significant relationship between atmosphere and consumer behavior.
Therefore Ho

is rejected because sig. vale of this hypothesis is .000 because there is
relationship between atmosphere and consumer behavior. The prediction is supported by
(.000, t=7.656)
Hypothesis 3 shows a significant relationship between service and location. The Ho is
rejected because the relationship shows a positive relationship between the variables.
Prediction is supported by (.000, t=9.070)
Hypothesis 4 shows that there is a significant relationship between location and consumer
behaviour. We reject this Ho because the result suggests that there is an positive
relationship between variables. The prediction is supported by (.000, t=6.483)
Factors influencing consumer behavior on dining out 30

Hypothesis 5 predicts that there is an insignificant relationship between price and
consumer behavior. The result shows a negative relationship between variables, therefore
we accept the Ho. The prediction is supported by (.621, t=-4.95)
4.10 CONCLUSION
According to the results most of the respondents care about hygiene, location, atmosphere
and service of the food while they are give less important to price. Results shows that
people will not see price if they are getting good meal with great atmosphere. Location of
the restaurant is also matter because of the law and order situation
In Hypothesis 1 to 4 researchers check the impact of restaurant attributes: hygiene,
atmosphere, location and service on consumer preferences. When analyzing the restaurant
attributes with consumer preference by linear regression, the result shows that there is a
significant impact of food related attributes, atmosphere related attributes and service
related attributes on consumer preferences. The result also shows that there is an
insignificant impact of price related attributes with consumer preference. So we can
conclude that as per result of the Hypothesis 1, 2, 3 and 4 food related attributes,
atmosphere related attributes and service related attributes significantly influence of
consumer preferences. Hypothesis 1, 2 and 4 is accepted and Hypothesis 3 is rejected.
Restaurant managers can allocate their resources and efforts properly. Based on the
relatively important factors the allocation of resources can be prioritized. For example
result shows that hygiene, atmosphere, location and service related attributes are the most
important choice factors which influence the consumer preference in selecting the fast
food restaurant so the restaurant manager should therefore pay more attention towards
food quality, taste of food, presentation of food, , service standard, speed of service, table
service, trained staff, ambience, cleanliness, neat staff appearance to create delight
dinning services for their potential and existing customers.

Factors influencing consumer behavior on dining out 31

4.11 suggestions
1. Quality of food, hygiene food, presentation of food and variety of food is
important for the customers, although customers are satisfied with the food related
attributes but the fast food owners should try to maintain the quality of food,
should try to provide food at reasonable price, should try to make their food more
tasty and should try to present it in a more innovative manner so that it will give
them competitive advantage over others.
2. Ambience, staff appearance, cleanliness and neat staff are also significant factors
which influence consumer preferences in selecting fast food restaurants. The fast
food restaurant operators should improve the ambience of restaurant and for that
they can hire the services of interior designer.
3. Service speed, service standards, table service and trained staff are also critical for
the customers. To deliver the quality service it is important that the staff should be
trained properly. The restaurant owners should set the service standards and train
their employees according to it.
4. Location is also play important part in selecting restaurant so manager should
focus on the location that people easily come and feel safe in that location.






Factors influencing consumer behavior on dining out 32

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