Short answer
Prioritize investments in service quality and brand building over price reductions to foster customer loyalty and drive repeat business.
- Field
- Innovation & Markets
- Source
- Journal of Economics and Management Research (2022)
- Method
- Survey Research Design
- Sample
- 188 usable questionnaires from an initial sample of 200 customers.
- Evidence
- Strong effect
Customer loyalty in the fast food sector is significantly influenced by the perceived quality of service and the strength of the brand image, rather than just the price point. This innovation & markets research insight is drawn from a 2022 study published in Journal of Economics and Management Research. Using Survey research design with 188 usable questionnaires from an initial sample of 200 customers., researchers explored how this design variable affects real-world outcomes. The key design takeaway: Prioritize investments in service quality and brand building over price reductions to foster customer loyalty and drive repeat business.
Service Quality and Brand Image Drive Fast Food Patronage, Not Price
Customer loyalty in the fast food sector is significantly influenced by the perceived quality of service and the strength of the brand image, rather than just the price point.
Journal of Economics and Management Research · 2022
Key Findings
- 01There is a positive and significant relationship between service quality and customer patronage.
- 02There is a positive and significant relationship between brand image and customer patronage.
- 03Price has a negative and non-significant relationship with customer patronage.
Application
Design takeaway
Prioritize investments in service quality and brand building over price reductions to foster customer loyalty and drive repeat business.
How to apply
Conduct customer surveys to assess current perceptions of service quality and brand image. Use these insights to inform operational improvements and marketing strategies.
Project actions
- 01Clearly define what 'service quality' and 'brand image' mean in the context of your design project.
- 02Consider how you will measure customer perception of these factors.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Utilized a survey research design to gather direct customer feedback.
- +Employed statistical analysis to determine the significance of relationships between variables.
Limitations
The findings might be specific to the cultural context of Benin City and may not apply universally. The study did not control for individual customer preferences or dietary needs.
Reliability & validity
The use of a standardized questionnaire and statistical analysis contributes to reliability. Validity is supported by the direct measurement of customer perceptions and patronage.
Think critically
How might the relative importance of price versus service quality and brand image differ across various market segments or product categories?
Design Principles
"Customer patronage is a function of perceived value, where service and brand equity often outweigh cost considerations in service-based industries."
Understanding these drivers allows businesses to strategically allocate resources. Focusing on enhancing service delivery and cultivating a strong brand can lead to more sustainable customer relationships and market share than solely competing on price.
What This Means for Your Design
For fast food places, making customers happy with good service and a cool brand name brings them back more than just having cheap prices.
How to use in your project
- 1.Use this research to justify focusing on user experience and brand identity in your design process, rather than solely on cost-effectiveness.
Add to My Project
Quick Cite
Paragraph starter
Research indicates that customer patronage in the fast food sector is significantly driven by service quality and brand image, with price playing a less influential role. This suggests that design projects aiming to increase customer engagement should prioritize enhancing the user experience and developing a strong brand identity.
Source
Journal of Economics and Management Research
Determinants of Customer Patronage of Fast Food Outlets in Benin City
journal · 2022
View sourceQuestions About This Research
- What does the research say about service quality and brand image drive fast food patronage, not price?
- Prioritize investments in service quality and brand building over price reductions to foster customer loyalty and drive repeat business. Evidence: Journal of Economics and Management Research (2022).
- Why does "Service Quality and Brand Image Drive Fast Food Patronage, Not Price" matter for design?
- Understanding these drivers allows businesses to strategically allocate resources. Focusing on enhancing service delivery and cultivating a strong brand can lead to more sustainable customer relationships and market share than solely competing on price.
- How can designers apply this research?
- Prioritize investments in service quality and brand building over price reductions to foster customer loyalty and drive repeat business.
- What were the main findings?
- There is a positive and significant relationship between service quality and customer patronage.. There is a positive and significant relationship between brand image and customer patronage.. Price has a negative and non-significant relationship with customer patronage.
- What research method was used?
- Survey Research Design with 188 usable questionnaires from an initial sample of 200 customers..
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2022 journal from Journal of Economics and Management Research.
- What should I do differently in my next project?
- Conduct customer surveys to assess current perceptions of service quality and brand image. Use these insights to inform operational improvements and marketing strategies.
- What are the limitations?
- The study focused on a specific geographic location and may not be generalizable to all fast food markets. The influence of other factors like food quality, ambiance, and convenience was not explicitly measured.