INTERNATIONAL JOURNAL OF MODERN MANAGEMENT RESEARCH REVIEW (IJMMRR)

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1 249 INTERNATIONAL JOURNAL OF MODERN MANAGEMENT RESEARCH REVIEW (IJMMRR) CUSTOMER SATISFACTION ON SERVICE QUALITY OF THE HISTORIC CAMALIG RESTAURANT Ira Jean P. Barrios, April Maine Barbara C. Mejia Sunshine M. Miranda, Kathleen G. Punsalan Jernalyn B. Talavera Research Scholars, College of Business, Systems Plus College Foundation Angeles City, Philippines KEY WORDS A B S T R A C T Service quality, reliability, responsiveness, assurance, empathy, and tangibility. INTRODUCTION The research aims to know the level of customer satisfaction using the service quality dimensions of the Historic Camalig Restaurant. The study made use of Descriptive method of research. The study had 105 respondents who were chosen through systematic random selection. The survey on Service Quality dimensions was the main tool in the data gathering and the statistical methods used in interpreting the data were frequency percentage distribution and mean rating. All factors were rated agree by the respondents. Researchers used the five dimensions of quality namely: Reliability, Responsiveness, Assurance, Empathy, and Tangibility. The result of the study revealed that the quality of service of the Historic Camalig Restaurant is satisfactory. Nowadays, the service quality in the market is challenging. It plays a critical role in satisfying, building and maintaining long term customer relationships which in turn helps in capturing customer satisfaction. Hence, businesses need to satisfy and assure their customers by giving them service quality. Service quality can be defined as a customer s perceptions of how well a service meets and exceeds their expectations. In most cases, service quality is judged by customer and not by organization. This distinction is critical because it forces service marketers to examine the quality of their products and services from customers viewpoint. The delivery of service quality is the most important and difficult factor that any service-oriented business faces. In every detail, businesses must be consistent in the quality of service to satisfy and exceed customer expectation as said by Linda (2015). In the study of Fisk et al., (2013) service quality means the degree to which the service s features conform to the organization s specification and requirements; from the customer s perception of how well a service meets or exceeds their expectation.

2 250 Based on the Executive Vice President of the National Restaurant Association, Bill Fisher said, service means: (Mill 2002) ; (1) Spirit of the employees who perform it ; (2)Empathy in placing oneself in the shoes of the customer (3) Responsiveness in taking timely and appropriate action to meet the needs of the customer; (4) Visibility to let customers know they are being served; (5) Inventiveness to do a little extra; (6) Competency on the part of service performers; (7) Enthusiasm to maximize the exchange value with the customer. According to Duaqui et al., (2010) one reason why it is necessary for a business proprietor to provide quality service in the restaurant is that there is a need to achieve top rank. There is a good possibility that if excellent service is rendered in addition to providing excellent food, the restaurant could become a five-star establishment. According to the research of Zeithaml et al., (2006) the dimensions of service quality have been identified into five specific dimensions: (1) Reliability: ability to perform the promises, consistency and dependability in performing the service; (2) Responsiveness: willingness of employees to help customers and provide quick service delivery; (3) Assurance: employee s knowledge, courtesy and their ability to convey trust and confidence; (4) Empathy: caring and individual attention given to customers; (5) Tangibles: physical evidence of the service such as facilities, equipment, personnel, and written materials. Zeithaml, et al., (2006) mentioned, that specific product or service features, perception of product and service, quality and price are influenced by customer satisfaction. Quality however, Evans and Lindsay (2012) said, should not be focused individually on the goods or services that an organization produces or provides. It should be found in the management practices of the organization; in other words quality should be a fundamental value in how an organization is managed. Like other countries, the food industry has flourished very well in the Philippines. Filipinos love to eat and that s the reason why there are lots of restaurants and fast food restaurants all over the cities. The continuing establishments of shopping centers in the Philippines are opening up more opportunities for the operators of full-service restaurants to expand their existing brands and

3 251 introduce new ones. Creating one s own brand, however, is becoming a less popular option as franchising, licensing and entering into joint ventures with international brands in the country is more commonly undertaken by entrepreneurs in full-service restaurants. Customers play a vital role in any organization. It is very important to meet customer s satisfaction to stay ahead of the competition. Each business unit has to run its business with the aim of achieving more customer satisfaction than its competitors at all times as the competitors would also try to do the same. Customer satisfaction is an integral requirement for being in business. Therefore, every organization should plan the right strategies for dealing with customers, communicating with them, providing satisfying services, maintaining customer contact employees, and all focus to their customer satisfaction as stated by Subburaj Ramasamy, (2010). According to Kotler and Keller (2009) Satisfaction is when a consumer's expectation of the product is met. Consumers have the tendency to compare different products especially when someone is unhappy or dissatisfied with the perceived performance or outcome of the service. Customer satisfaction is at the core of human experience, which reflects the like or dislike of a company s business activities. According to Kotler (2003), you can see service quality with each service encounter if the employees are not able to answer simple question, or the customer might have second thoughts about doing business with the seller again. High levels of customer satisfaction (with pleasurable experiences) are strong predictors of customer retention, customer loyalty, and product repurchase. Effective businesses focus on creating and reinforcing pleasurable experiences so that they might retain existing customers and add new ones. Properly constructed customer satisfaction surveys provide the insights that are the foundation to creating and reinforcing pleasurable customer experiences. According to Naik et al., (2010) Service Quality has two components which are the customer expectations and customer perception. Customer expectations are those that the customer expects as should be and can be type of services and Madanoglu, M (2004) therefore, it is important for businesses to provide quality goods and services to meet customers needs; satisfying customers is an ultimate goal, as customers are the greatest resources for its survival.

4 252 Customer satisfaction is very important to retain customers in all businesses. To achieve long term financial success of every business, they must know the needs of their customers. The quality of products and services that every business offers is significant to create a customers satisfaction. The satisfaction of the customers is one of the main aims in the restaurant business. This indicates that service quality is the key to the success of organizations. The business industry engage customer satisfaction to measure the satisfaction of customers which is essential to the success of the business as said by Gupta et al.,(2005) Linda (2015) explained that the organization will be struggling if they cannot at least meet its customers expectations. And most of the customers become satisfied when a supplier underpromises but over delivers rather than over-promises but under-delivers. According to Levy (2009), it is hard to measure customer satisfaction because it strives to measure human feelings. Research indicates that quality is essential to customer satisfaction this means, superior quality leads to higher satisfaction and higher satisfaction in turn leads to customer loyalty according to Haksever et al., (2000). According to Kotler and Keller (2006), satisfaction is one way of telling if the customer is disappointed or not. The more the customers purchase the product or services, the more they recommend these to their peers, relatives and others as studied by Lam et al., (2004). Simply put, satisfaction is a sense of contentment that arises from an actual experience in relation to an expected experience. Hernon & Whitman, (2001) In addition, organization should fully understand, first of all the product and services attributes to meet or exceed customer expectation that contribute to customer value and lead to their satisfaction according to Ramasamy (2010). Thus, the service quality and customer satisfaction are considered the most significant in helping and improving the overall performance of business Valter Silva (2014). Many researchers are conveying studies about their customers and mainly about satisfaction because customer satisfaction is the main concern of business sectors today Agbor (2011). Service quality is a proven determinant in service sectors in terms of customer satisfaction Wilson et al. (2008). It is a competitive weapon, not just a business service Rosen et al, (2003). In fact "A satisfied customer is the best business strategy of all." (LeBoeuf).

5 253 That s why the most essential aspect for any organization has always been its clients happiness Agbor (2011). Having new customers is great, but it won t keep business profitable in the long term if those customers didn t come back and only the satisfied customers might get to stay. The Historic Camalig Restaurant is a 100-year-old former ancestral grain depot. It was restored in 1980 and turned into a restaurant. Camalig is a Kapampangan word for shed. Camalig is famous for its pizza called Armando s Pizza, also known as Ang Pambansang Pizza by Armando L. Nepomuceno which are patiently prepared and baked using the original recipe. It has also a landscaped patio for al fresco dining. It has air conditioned rooms for a more pleasant dining experience. Some local bands play during weekends for entertainment. The Historic Camalig Restaurant is now an attraction to both locals and foreigners wanting to have a glimpse of the past and to taste its famous Armando s pizza. STATEMENT OF THE PROBLEM/RESEARCH OBJECTIVES This study aims to determine the customer satisfaction on service quality. This study would answer the following questions. 1. How may the respondents of the study be described in terms of: a) Gender b) Age c) Marital Status d) Allotted Budget e) Who the respondents normally dine with? 2. How may the respondents measure the service quality dimensions of the Historic Camalig Restaurant in terms of: 2.1 Reliability, 2.2 Responsiveness, 2.3 Assurance, 2.4 Empathy, and 2.5 Tangibility 3. What is the level of customer satisfaction of the Historic Camalig Restaurant? 4. How to improve the service quality of Historic Camalig Restaurant to increase customer satisfaction?

6 254 INPUT PROCESS OUTPUT Demographic Profile Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibility Interview Survey Mean Rating Customer Satisfaction Recommendation for improvement of responsiveness Figure 1. Paradigm of the study The study investigated how service quality affects customer satisfaction through the use of the following methods, which are the interview, survey, mean rating and frequency. To measure service performance and customer expectations of service, dimensions of service quality model was used. The theory of service quality has been identified as: reliability, responsiveness, assurance, empathy, and tangibility. To improve the Historic Camalig Restaurant s customer service, it must provide recommendation for improvement of responsiveness to gain the customer s satisfaction. SIGNIFICANCE OF THE STUDY This study discussed the service quality to evaluate customer satisfaction. The result of the study may be useful for the company, customers, managers and employees, for the improvement and reduction of problems they have encountered. To the Company The company Historic Camalig Restaurant benefits in the research because they will know what they need to improve to get the customer satisfied of their services. It helps in assessing customers need and market place to determine which services the company need to develop and improve. It will provide relevant information and give knowledge or idea on how to enhance their performance in providing quality service to their customers.

7 255 To the Managers It will serve as the manager s guide to improve his/her business and find solution to problems that will help meet customers satisfaction. Managers should pay attention to the quality of service that evoke customer satisfaction and enhance return visits to the company. To the Employees The employees will acquire the right information if they are planning to build their own restaurant. And also give them advice on what they need to improve on and what to do so that they can satisfy their customers in the future. To the future Entrepreneurs The study will help them a lot in studying the possible consequences and factors in putting up a restaurant business. They can assess freely and when they decide to put up a business like a restaurant, they will have an idea on what they need to do. To the Customers This study will help the customers by giving them the insights on what quality service should be and getting the value for their money. The benefits to customers are that they can attain better service and thus become more loyal to the company. To the Future Researcher This study will give them additional information to their study and they can use it as a reference in conducting new researches or in testing the validity of other related findings. This research may be one of the basis for the creation of a new theory. SCOPE AND LIMITATIONS This research study measures service quality leading to customer satisfaction of the Historic Camalig Restaurant at 292 Santo Rosario Street, Angeles City. This descriptive research will be conducted within the second semester of this school year We focused on the limited aspects of literature that we gathered. The service quality model is the service quality dimension. Despite the fact that this topic concerns both the employees and customers, we focused on the customers because we were interested in viewing this subject from the customer s perspective and

8 256 customers who consume services. In addition the topic can be viewed from a manufacturing and/or services sector; but it was limited to the study of the service sectors since the service quality is best evaluated from the service sectors. METHOD The purpose of this research is to assess the Customer Satisfaction on the Service Quality. This study would include the feedback of the manager and also the result from the surveys by the respondent at the Historic Camalig Restaurant, located at 292 Santo Rosario Street, Angeles City. Research Design In conducting this study, the descriptive design was used. The focus was on describing the dimensions of service quality which are tangibility, reliability, responsiveness, assurance and empathy. Further, it was designed to describe the customers perception on the service quality of the Historic Camalig Restaurant as well as to describe the customer satisfaction. Participants of the Study Researchers decided to use 105 respondents. The respondents of the study were the customers of the Historic Camalig Restaurant. Statistical Tools p = f n x 100 Where: p = percentage f = frequency Frequency Distribution: n = total number of respondents/sample size Research Instrument MV MR = n Where: MR = mean rating = sum of Mean Rating: M = response count of answer choice V = weight of answer choice n = sample size (number of data points) The research instrument that was used in this study was the survey questionnaire. The Likert Scale was used for Customer Satisfaction Measurement in the questionnaire. Survey questionnaire was

9 257 used to get the feedback from customer Customer Satisfaction on the Service Quality. The scores in each item ranged from 1 for strongly disagree, 2 for disagree, 3 for agree and 4 for strongly agree. The first part of the questionnaire was the background information of the respondents; it included the names (optional), gender, age, marital status, allotted budget and who the respondents normally dined with. The second part were the questionnaires regarding the dimensions of service quality to evaluate customer satisfaction which was answerable by the Likert Scale because their answers were scaled from 1 to 4 rating. This would determine customer satisfaction for service quality. RESULTS Data Processing and Analysis Table 1. Mean value and Descriptive ratings of service quality dimensions. POINT RATING DESCRIPTION Strongly Disagree Disagree Agree Strongly Agree Table 1 shows the mean rating used to determine the level of customer satisfaction. Table 2. Gender of the respondents. GENDER FREQUENCY PERCENTAGE Male % Female % Total % As indicated in Table 2, from 105 total respondents, there were 55.24% male respondents and 44.76% female respondents. Table 3. Age distribution AGE FREQUENCY PERCENTAGE % % % % 38 above % Total % Table 3 shows that most of the customers of the Historic Camalig restaurant were ages with an equivalent of 65.71%, ages with 18.10%, ages with 7.62%, ages with 6.67% and ages from 38-above with 1.90% of the respondents.

10 258 Table 4. Marital status of respondents STATUS FREQUENCY PERCENTAGE Single % Married % Widowed 0 0% Total % As seen on Table 4, among 105 total respondents, 85.71% were single, 14.29% were married and then 0% were widowed. Table 5. Allotted budget of respondents BUDGET FREQUENCY PERCENTAGE Below Php.1, % Php.1,001-3, % Php.3,001- Above % Total % Looking at Table 5, shows that 57.14% of the respondents had below Php.1,000, 25.71% had Php.1,001- Php.3,000 and 17.14% had Php.3,001 and above as their allotted budget when dining at the Historic Camalig restaurant. Table 6. Who the respondents normally dine with? FREQUENCY PERCENTAGE I go alone % With my partner % With customers or business partners % With my child/children % With other member of my family % With friends % With colleagues % Others 0 0% Total % Based on Table 6, most of the respondents dined with friends at 45.71%, colleagues 20.95%, with other members of family 17.14, and with partner 10.48%, I go alone with 1.91%, with customers or business partners 1.91%, and with child/children 1.91%. Table 7. Mean rating for the service quality dimension: Reliability Statement Mean Rating Descriptive Rating The restaurant provided their services at the 3.18 Agree time they promised to do so. When a customer had a problem, the 3.27 Agree restaurant showed sincere interest in solving it. The employees served food exactly as 3.18 Agree ordered. Overall Rating 3.21 Agree

11 259 Table 7. This shows the mean rating of service quality dimension: reliability is Which is equivalent to the descriptive rating "agree" Historic Camalig restaurant. Table 8. Mean Rating for the service quality dimension: Responsiveness Statement Mean Rating Descriptive Rating Employees gave quick service to 2.94 Agree customers. Employees showed willingness to help 2.94 Agree customers. Employees are never too busy to respond to 3.09 Agree customer requests. Overall Rating 2.99 Agree Table 8. This shows the mean rating of service quality dimension: responsiveness is Which is equivalent to the descriptive rating "agree" Historic Camalig restaurant. Table 9. Mean Rating for the service quality dimension: Assurance Statement Mean Rating Descriptive Rating The behavior of employees instill 3.18 Agree confidence in customers Customers feel safe in their transactions 3.27 Agree Employees have the knowledge to answer 3.18 Agree customer s questions Overall Rating 3.21 Agree Table 9. This shows the mean rating of service quality dimension: assurance is Which is equivalent to the descriptive rating "agree" Historic Camalig restaurant. Table 10. Mean Rating for the service quality dimension: Empathy Statement Mean Rating Descriptive Rating Employees give personal attention to 3.01 Agree customers. Restaurant understands specifics need of its 3.08 Agree customers Operating hours are convenient to all 3.06 Agree customers Overall Rating 3.05 Agree Table 10. This shows the mean rating of service quality dimension: empathy is Which is equivalent to the descriptive rating "agree" Historic Camalig restaurant. Table 11. Mean Rating for the service quality dimension: Tangibility Statement Mean Rating Descriptive Rating The physical facilities are visually 3.22 Agree appealing. Employees looked clean and pleasant Agree Restaurant has enough parking space Agree Overall Rating 3.07 Agree

12 260 Table 11. This shows the mean rating of service quality dimension: tangibility is Which is equivalent to the descriptive rating "agree" Historic Camalig restaurant. Table 12. Over-all Customer Satisfaction Statement Mean Rating Descriptive Rating Over-all Satisfaction 3.18 Agree Table 12.Indeed, the Mean Rating for the over-all Customer Satisfaction was 3.18 which was equivalent to "agree". This means that customers were generally satisfied with the service level of the Historic Camalig Restaurant. DISCUSSION This part of the research showed the level of customer satisfaction by using service quality dimensions namely: Reliability, Responsiveness, Assurance, Empathy, and Tangibility. The data from survey questionnaires answered by customers were gathered and analyzed by using mean rating. Results indicated that customers were generally satisfied with the service quality dimensions, Reliability, Responsiveness, Assurance, Empathy, and Tangibility of the Historic Camalig restaurant. The survey results showed that customers were generally satisfied with the service quality offered by the Historic Camalig restaurant. CONCLUSION Based on the results of the study, reliability and assurance obtained the highest mean rating of 3.21% measuring, the respondents were satisfied when they were provided with services promised at a certain time and also the employees ability to answer customer s questions. Even though the result showed that responsiveness was equivalent to agree this means that the customers were satisfied. However, it still has got the lowest mean rating of 2.99% because some of the respondents were not satisfied with the employees lack of willingness to help the customers and failure to give quick service. RECOMMENDATIONS Based from the study, the Historic Camalig restaurant needs to improve their responsiveness by giving quick service, management also should monitor the time frame of serving their customers by setting up a standard time of serving. As indicated by Carmen (2000), the handling of complaint and customer retention is by quick response. If you receive the complaint or query you continue to own it, until it is resolved, even

13 261 if you escalate it or delegate it. This means that you must always follow-up and check on the progress until its final resolution and satisfaction. When service provider is responsive to customer, the customer s needs and wants will be fulfilled and satisfied. Hence, this will lead to positive customer s satisfaction on the quality of service that they receive. The aspect of empathy is providing personalized care and concerns which could bring higher levels of customer satisfaction, the capability to anticipate customer s need and give them special treatment. To provide good service, they need to offer individualize attention to a customer by knowing the customer s name, preference, and their needs as studied by Zeithaml et al.,(2006). During the interviews, several problems were mentioned. Slow service emerged as one of the greatest concern both for the customer and service provider. According to Camalig personnel, this is basically due to the performance of the kitchen crew. Four kitchen crew share the cooking responsibilities of the store with maximum customers during peak hours. This in turn translates to slow service for the whole store. Add the de-motivating factors like low salary (Php. 6,000 monthly) with no free food, this creates a non-responsive attitude in the service provider. Given this scenario, we recommend the following: a. Shifting schedule for the kitchen crew with 2 designated personnel during morning, nonpeak hours and completing 4 personnel from lunch time to evening. The 2 morning crew can also rotate daily exchanging duty alternately with the other 2 crews. b. Centralize the collected tip and distribute it equally to the employees of the Historic Camalig restaurant so as to motivate the employee to do teamwork and avoid the competition among them. REFERENCES 1. Agbor (2011). URL portal.org/smash/get/diva2:448657/fulltext02.pdf 2. Carmen, J.M. (2000), Patient Perceptions of Service Quality: Combining the Dimensions, Journal of Service Marketing, Vol.14, No.4, pp

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15 Naik, K., Gantasala, S.B., Prabhakar, G.V., 2010, Service Quality (SERVQUAL) and in Effect on Customer Satisfaction in Retailing. European Journal of Sciences Volume 16, Number Ramasamy, S. (2010) Total Quality Management Page 5.4, 5.16 & Rosen et al (2003). URL: Rust, Z. V., & Lemon, K. (2000). Driving Customer Equity. Boston: Free Press. 23. Silva, V. (2014) The Impact of Service Quality on Customer Satisfaction in a Dublin Hostel - Case Study trap.ncirl.ie/1902/1/valtadasilva.pdf 24. Wilson A., Zeithaml V.A., Bitner M.J., Gremler D.D. (2008) Services Marketing, McGraw-Hill Education, Page 78 URL Zeithaml, V., Bitner. MJ., & Gremler, D., (2006) Service Marketing (Integrating Customer Focus Across the Firm) Page Zeithaml, V., Bitner. MJ., & Gremler, D., (2006) Service Marketing (Integrating Customer Focus Across the Firm) Page URL: textbook/services-marketing-6/service-quality-51/delivering-excellent-service-quality /