INFLUENCE OF SERVICE EXPERIENCES

TOWARDS THEMED RESTAURANTS

Undergraduate Thesis Presented to The Faculty of The

College of Business Administration Education
University of Mindanao
Davao City

In Partial Fulfilment for the Degree of Bachelor of

Science in Business Administration Major in
Marketing Management
Code:

Reylei T. Rodriguez
Jan Alfred N. Sy
Paulo S. Lumpayao

March 2019
 CHAPTER 1

INTRODUCTION

INFLUENCE OF SERVICE EXPERIENCES TOWARDS THEMED RESTAURANTS

The purpose of this research is to investigate important customer satisfaction

attributes that affect return intent to theme restaurants. These termine which areas of

an operation may be in significant need of improvement. The customer satisfaction

scores, coupled with attribute importance rankings and customer return intentions.

Will help theme restaurant managers from improvement strategies that are focused

on the characteristics most important to customers. However, sometimes these

restaurants fail to provide a novel, entertaining dining experience to customer (Begli,

1998). The decline of the theme restaurants industry, which has occurred primarily in

non-tourist locations, has been characterized.

Themed restaurants were designed to provide customers with not only a

meal, but also an entertaining experience. After a rapid rise in popularity in the early

to mid-1990’s, theme restaurants began to experience a decline in market share. As

this segment of the restaurant industry experiences the downsizing of many once

popular brands, it is imperative that investigations are undertaken to determine the

cause of this decline. Although considerable research has been conducted on these

indicators in the service industry, none has focused on theme restaurants in

particular. According to (Rachel Weiss, Andrew Hale Feinstein & Michael

Dalbor,2008). Many research have attributed customer satisfaction and subsequent

return intent as key indicators regarding the success of a restaurant. The exiting

body of customer satisfaction literature by examining four theme restaurant attributes

(food quality, service quality, atmosphere, and novelty) and their influence on return
intent. Interestingly, customers were least satisfied with novelty. Further, customer

satisfaction with theme restaurant food quality and atmosphere were the only

significant attributes influencing return intent.

According to the study conducted by Fantozzi (2018) in USA, restaurants

filled with pop-cultured memorabilia, kitschy menus, gift shops were a driving force of

dining trends in the 1980’s and early 1990’s. She as well stated that as consumer

tastes change and people began valuing food over tableside entertainment, themed

restaurants started ceasing their operations, even the popular chains like rainforest

café and planet Hollywood struggled to stay in course. In a study of competition in

the restaurants industry, restaurateurs were found to compete primarily on style, a

capacious term encompassing elements of service, décor, price and the atmosphere

created by the combination of these elements these elements and the dress and

behavior of their clientele.

A themed restaurant is a type of restaurant that uses theming to attract diners

by creating a memorable experience. Theme restaurants have a unifying or

dominant subject or concept, and utilize architecture, décor, special effects, and

other techniques, often to create exotic environments that are not normally

associated with dining because they are inaccessible, no longer exist, are fictional or

supernatural, or taboo. The theme may be further extended through food is usually

secondary to entertaining guests. (Wood, Natalie T. and Caroline Munoz, 2007).

Most restaurants have an inherent theme based on the origin or type of

cuisine served. Many restaurants have a distinct style of décor, and create a specific

ambiance for the comfort of their clientele. Diners choose restaurants first and
 foremost based on type of food. Theme restaurants attract customers primarily by

promising unique experiences.

STATEMENT OF THE PROBLEM

The purpose of this study is to determine the influence of service experiences of the

customers towards the themed restaurants in Davao City when grouped according

to their profile such as Age, Sex, and Educational Attainment.

1. What is the level of influence of services experience of the customers towards

themed restaurants in terms of the following;

1.1 ​Servicescape

1.2 ​Contact Personnel/Service Providers

1.3 ​Invisible Organization and System

1.4 ​Others Customer

2. Is there a significant difference in the influence of service experiences of the

respondents when grouped according to their profile, such Age, Sex, and

Educational Attainment?

Hypothesis

The null hypothesis which shall be evaluated is the level of significant and

there is no significant difference between the Influence of Services Experience of

customer towards Themed Restaurants when grouped according to respondent’s

profiles.
Review Related Literature

This section contains literature and studies conducted internationally and

locally pertinent to the study. The components are the discussion about the influence

of service experiences of customers towards themed restaurants in relation to the

study.

Servicescape and Service Quality

The term servicescape refers to the use of physical evidence to design

service environment. Due to the intangibility of services, customer often have trouble

evaluating the quality of service objectively. As a result, consumer rely on the

physical evidence that surrounds the service to help them form their evaluation.

Hence, the servicescape consists of ambient conditions such as room temperature

and music, inanimate objects that assist the firm in completing its tasks, such as

furnishings and business. Servicescape elements need to be managing specially by

service establishment. Servicescape may influence service quality both directly and

indirectly by influencing the perception of intangible service quality dimensions

(Reimer and Kuehn 2005). Servicescape also called as service setting and it is

defined as physical environment in which as service (Keillor et al., 2004). Though

the physical environment divide into the natural environmental and artificial

environment, according to Bitner (1992), servicescape, may have a substantial effect

on customer’s satisfaction with the services experience. He further define,

“servicescape as all the objective physical factors that can be controlled by the firm

to enhance employee and customer actions, and service quality play a vital role in

the restaurant industry. Service quality affects customer satisfaction by providing

performance and it has been identified as one of the most effective means of

building a competitive position and improving organizational performance. (Ghimire,

2012) service quality is a focused evaluation that reflects the customer’s perception

of specific dimension of service, reliability, responsiveness, assurance, empathy,

tangibles, satisfaction, and on the other hand, is more inclusive. (Ghimire, 2012)

customers today apprehend a very high general level of service in hospitality,

tourism, and price as well as situational factors and personal factors. (Ghimire,

2012) the accomplishment of competitors in these fields will thus be actuated by

strategies concentrating on quality of services to add value, as argued to product or

price differentiation. Service quality management in hospitality, tourism and leisure

focuses approaches and strategies that will augment the distribution of services and

supplies fair and understandable annotation of theoretical ideas and practical

operations. (Kandampully, Mok and Sparks 2001)

According to Ali and Karepe et.al (2016) as cited by Ismail and Yunan (2016)

in their study, in a quality management literature, service experience is often seen as

a multi-dimensional construct and it has widely been discussed since the 20th

century and its idea is still relevant to help today organization in creating

differentiation and gaining competitive advantage in an era of borderless world and

globalization. Service quality is an important outcome of comparison between

customer expectations before and after their experience of the service because if

customers view that their expectations for service performance conform to their

perceptions of the service, this situation may lead to induce the notion of service

quality (Gronaroos, 2007)

 Parasuraman et. al (1988) as cited Yunan (2016) in their study, develop a gap

analysis model named “servfaction”, which means to measure the influence of

service quality based on the integrated view of consumer-company relationship

which provides five generic dimensions of service quality namely tangible, reliability,

responsiveness, assurance and empathy.

In recent years, a number of a number of American theme restaurants have

established in Hong Kong. Keen competition exists for this type of restaurants.

Customers who visit these types of restaurants seem not only to enjoy their food but

also to enjoy their food but also to enjoy their environment. According to Vincent

C.S. Heung (2007), in order to have an understanding of customers’ behavior in

relation to the customers’ perceptions of important restaurant attributes. Customers

for this type of restaurant are likely to be professionals, highly educated and belong

to the middle-income group in the society, customers usually go to the American

theme restaurants for meetings, fun and enjoyment, marketing implications and

directions for future studies are discussed. (Heung, 2007)

Contact Personnel and Service Providers

​The experience involves: the contact personnel and the service providers

that directly interact with customers. Technically speaking, contact personal are

employees other than the primary service provider who briefly interact with the

customer. Services providers are the primary providers of the core services. Such as

a waiter or waitress, dentist, physician, or college instructor. The consumption of

services often takes places where the service is produced or provided at the

customer’s residence or workplace.

 There are actually two areas that can affect the service experience bundle up

into one category, these are the Contact Personnel and Service Providers.

(Hoffman, 2011) Contact Personnel are the employees other than the primary

service provider who briefly interact with the customers while Service Providers are

the primary providers of a core service. (Hoffman, 2011)

According to Peterson (2015)new stores and hire new employees, so they

must be trained to do their job right, usually they start off by job shadowing because

it gives the new employee a sense of feel in their position and they learn how to do

everything in the process and it all becomes a routine. Peterson (2015) further

stated that service providers make sure to have the right materials and supplies for

theme restaurants since it is necessary, this is because if they do not have the right

materials and supplies to produce and sell food then the business will not succeed

since paper or boxes are needed to wrap the burgers, cups for soda and hot

beverages, fry boxes, cutlery, straws, napkins and bags to carry take out in.

Moreover, Peterson (2015) said that l​abour is essential to success in fast food

restaurants because even though the role of the manager is very important, without

the employees there would be no production of making the food and preparing the

meals.

Invisible Organizations and Systems

The invisible factors considered in a Servuction Model include the things that

happen within the organization that the consumer does not necessarily see but

affects their experience. (Mileva, 2016) According to Hoffman (2011) organizations

and systems are the invisible part of the Servuction model that reflects the rules​,

regulations and processes upon which the organization is based.

Peterson (2015) stated that theme restaurant wisely choose a space that will

occupy the building of the restaurant just to make sure that the building will meet the

standards in building the kitchen, counter, bathrooms and eating or dining area.

Furthermore, theme restaurants choose only the convenient machineries and

equipment that would correspond to the needs of the production crew in making the

products, specifically these​. (Peterson, 2015) Lastly only choose the best quality of

their ingredients since it is basically the essential part of the production in order to

produce products that will make customers satisfy and repeat business with them.

(Peterson, 2015)

The services customer is influenced by the interaction with the servicescape;

contact personnel; and/ or service providers; and other customers. The benefits

service consumer receive are therefore derived from an interactive process that

takes place throughout the service experience. Of course, the visible component that

components that tie together the organization and its system. Invisible organization

and systems reflect the rules, regulations, and processes upon which the

organization is based. As a result, although rules, regulations, and processes are

invisible to the customer, they have a very profound effect on the consumer’s

experience.

Other Customers

Other Customers are basically those that received the service alongside

yourself perhaps through a bundle of benefits created through service experience.

(Hoffman, 2011) The likelihood of other customers being present has been

recognized as a key component of the services encountered, however, the empirical

examination of the effect of the others on customers’ satisfaction or dissatisfaction

has been limited and the potential influence of customer-to-customer interaction on

service quality has largely been ignored in the instruments that measure ​the

construct. (Grove and Fisk, 1997) Other customers refers to those people who also

receive service alongside particular customers and these people impact profoundly

on the individual’s service experience by either enhancing or detracting the

individual service experience. (Chowdhury, 2016)

Other customers are customers who are in the service facility simultaneously

with – and who are unacquainted with – a focal customer. (Argo, Dahl, and

Manchanda 2005; McGrath and Otnes 1995) The focal customer and other

customers do not need to interact and this definition is consistent with prior research

that shows people can be present together in a commercial facility, but not engage

or involve with each other. (Argo, Dahl, and Manchanda 2005; McGrath and Otnes

1995) Other customer perceptions are the building blocks upon which managers can

encourage customer-to-customer interactions. An individual would be more likely to

interact with other customers if their perceptions of these customers are positive.

(Broncato, Voorheese and Baker, 2012)

Service Experiences

Customer service experience has undergone huge changes as buying and

selling have evolved. (Lee, 2017) The rapid growth of commerce — particularly

e-commerce —has boosted competition in the markets and today, brands need to
stand out from the crowd, and customer service is one way to do this. (Lee, 2017)

Social sharing through Facebook and Twitter means we now share our experiences

online. In real time, of course, and what we share has the ability to go viral. Good

customer experiences are more important than ever, but some are still struggling

and that’s because there’s no ‘right’ and ‘wrong’; it’s not an exact science, and that’s

frustrating. There are actually many different ways to provide good customer service.

(Lee, 2017)

According to Lester (2016), ​friends telling friends about their personal

customer service experiences is not the only way word gets around anymore.

Thanks to the internet and social media, word of mouth has changed dramatically

and we routinely see small town stories becoming national headlines overnight.

There have been many shared events and even staged marketing campaigns

displaying customer service excellence, and responses have amazing for the

companies involved. (Lester, 2016) Whether they are marketing campaigns or

individual examples of great customer service, it seems clear that people love being

witness to a good customer experience story and people share these moments,

generating excellent publicity for the companies, which benefits them both in

reputation and in customer loyalty. (Lester, 2016) Every customer interaction can be

turned into a win, even the negative ones and adding ease to the customer

experience, whether online or offline makes happy customers and is good for

business. (Lester, 2016) Kind gestures show customers that your business has a

human side and it’s a great way also to build trust in your brand if you have a strong

marketing team behind it, it will surely develop brand awareness amongst the

customer because of their service experience in your company. (Lester, 2016)

Creating an experience your customer wants to share far and wide means showing

them the human side of your company, and thinking outside the box, therefore,

social media should be a telephone, not a megaphone because it’s not just there to

get your message out, make sure to listen to what your customers are saying as well

because diligent customer service coverage on social media is not only mandatory

these days, but can also present unique opportunities to stand out from the crowd.

(Lester, 2016)

THEORETICAL FRAMEWORK

This research used the Servuction Model of Hoffman and Bateson (2002).

The Servuction model includes the Servicescape, Contact Personnel or Service

Providers, Organization and Systems, and Other Customers.

Figure 1 shows the conceptual paradigm of the study consisted of

independent variable which refers to the Influence of Service Experiences including

the Age, Gender and Educational Attainment of the respondents while the

dependent variable refers to the Service Experience Satisfaction including

Servicescape, Contact Personnel or Service Providers, Invisible Organization and

System, and Other Customers.

 CONCEPTUAL FRAMEWORK

Figure 1

Customer Profit
1.1 Age
1.2 Sex
1.3 Educational Attainment

Services Experiences
● Servicescape
● Contact Personnel or
Service Providers
● Invisible Organization
System
● Other Customer
 Influence of Service Experiences towards Themed Restaurants

Name (Optional): _________________________________________________

Age: ​18-20 23-30 31-40 31-40 41-50 51-60 60 below

Educational Attainment​: ​High School College

Answer the Questions on a scale of 5 to 1

Strongly Agree-5 Agree- 4 Neutral -3 Disagree- 2 Strongly Disagree -1

CUSTOMER SERVICE
Servicescape 5 4 3 2 1
1. The establishment provides cool and cozy ambiance.
2. The establishment puts some decorations to attract customers.
3. The establishment entertains the customers by playing pop music.
4. The establishment has beautiful and colorful backgrounds and
paintings for customers to take pictures with.
5. The establishment provides free WIFI to the customers.
Contact Personnel/Service Providers 5 4 3 2 1
1. The employees are patient when taking your order
2. The food was served promptly
3. The employees speak clearly when you take an order
4. The employees in the restaurant are friendly and courteous
5. The employees provides good and excellent service
Invisible Organization and System 5 4 3 2 1
1. The restaurant’s crews have attended trainings on how to handle
customer complaints.
2. The restaurant’s avoids customer complaints as much as possible.
3. The restaurant’s crews always listen to the sentiments of the
customer about their complaints.
4. The restaurant’s crews acknowledge the customer complaints.
5. The restaurant’s crews offer immediate solution of the customer’s
complaints.
Other Customer
1. The services persuade other customers to have repeat business
2. The taste of the food has good feedback from other customers
3. The products were recommended by other customer to their family
4. The service makes others customer happy and satisfied
5. The location is accessible and visible for other customer
Significance of the Study

The researchers would like to come up with relevant data on the importance

of the influence of service experiences towards themed restaurants. The

questionnaire was adapted from two studies. The study conducted by Ghimire

(2012) entitled “Service Quality and Customer Satisfaction in the Restaurant

Business” was used, as well as the study conducted by Karki and Panthi (2018)

entitled “How Food Quality, Price, Ambiance and Service Quality Effects Customer

Satisfaction: A study on Nepalese Restaurants in Finland”.

The questionnaire from the study of Ghimire (2012) entitled “Service Quality

and Customer Satisfaction in the Restaurant Business” was adapted because it

aimed to determine the relationship of service quality and customer satisfaction in

ethnic restaurants located in Helsinki.

The study found that service quality and customer satisfaction are in a mutual

relationship and in this modern age, customers have different desires and needs this

is why offering quality services and making customers satisfied are the main

responsibilities of a particular ethnic restaurant. Moreover, the study analyzed that

Service Quality and Customer satisfaction can be seen as main themes in some

ethnic restaurants mainly because customers select to visit these restaurants

depending on the taste and service they give.

The study of Ghimire (2012) are similar to the present study since both

studies aimed to identify the relationship between customer satisfaction and service

quality. Moreover, both studies are concerned with how service quality and other

factors largely affect the satisfaction of customers in themed and ethnic restaurants.
Therefore, the questionnaire of Ghimire (2012) was adapted because it is similar to

the objective of the present study in making the questionnaire.

Another questionnaire from the study of Karki and Panthi (2018) entitled “How

Food Quality, Price, Ambiance and Service Quality Affects Customer Satisfaction: A

study on Nepalese Restaurants in Finland” was adapted because it aimed to identify

the effect of food quality, price, ambiance and service quality on customer in the

Neplaese restaurants of Finland.

The study found out that all the projected variables had positive association

with customer satisfaction and with the presence of these factors, customer

satisfaction will increase. The study of Karki and Panthi (2018) helps in

understanding that in what ways food quality, ambiance, price and service quality

are responsible for customer satisfaction and what customers are thinking about the

chosen restaurants and to what extent they are satisfied with these restaurants.

The study of Karki and Panthi (2018) are similar to the present study since

both studies talk about Service Quality and Customer Satisfaction which are

concerned with the effect of service quality and other factors on the satisfaction of

customers in a particular restaurant. Therefore, the questionnaire of Karki and

Panthi (2018) was adapted because it is similar to the objective of the present study

in making the questionnaire.

The results of this study could provide information, ideas and give input on

how to improve the quality services provided by the fast food restaurant and to give

better service quality for future transaction.

 The results of the study could be beneficial to the following:

Customers. The results of this study will let the customers know how their

satisfaction are measured and valued, and that the importance of their satisfaction

will largely affect the service that restaurants provide to them.

Service Providers.​ The results of this study may help the service crews,

managers and administration of the company to further develop their business

strategy on how to manage and provide high-quality service to the customers.

Definition of Terms

The following terms are defined to establish a common frame reference. They

are defined operationally in relation to the study.

Influence: ​refers to the action how a service can affect people’s decisions

and choices in food preferences

Service Experiences: refers to the experience in which the customers

received from the restaurant

Customers: refers to the people who are consumers of products of the

themed restaurants in Davao City

Themed Restaurants: refers to the research locations of the study where the

surveys were conducted

 CHAPTER 2
METHODS

Presented in this chapter are the discussions of the research about the

Influence of Service Experiences towards Themed Restaurants, the instrument used

and the statistical tools employed. The study has 100% retrieval rate and was

conducted on January 30, 2019.

Research Design
Descriptive research method will be used future tense this study. According to

Stangor (2011) descriptive correlational design creates a snapshot of the current

state of affairs and assesses the relationships between and among two or more

variables. This research design can easily ascertain the level of influence of services

experience of the customers towards themed restaurants in terms of: Servicescape,

Contact Personnel/Service Providers, Invisible Organization and System, and ​Others

Customers as well as the significant difference in the service experiences of

respondents when grouped according to their profiles.

Research Respondents

The respondents of this study are the customers who buys and eats in the

themed restaurants located in Davao City on March 4, 2019. The study used the

purposive sampling. The sample was divided into meaningful segment of population

who used to determine the sample size of 30 respondents for a total population of

100%. The researchers themselves administered 30 questionnaires and there were

30 questionnaires retrieved. This was a 100% retrieval rate. The sampling method

was used because it was the most efficient among the probability designs.
Furthermore, this sampling method, although not as rigorous as some, sampling

method was necessary because of its practicality. In addition, care was used to

ensure that the researchers who administered the instrument did not influence the

answer of the respondents. The researchers wanted to identify the level of influence

of the customers towards themed restaurants and the service experiences of the

customers when grouped according to their profiles. Thus, the administration of the

instrument will start last March 4, 2019 and the expected date of the retrieval of the

instrument will be on the same date.

Research Instrument

The questionnaire was adapted from two studies. The study conducted by

Ghimire (2012) entitled “Service Quality and Customer Satisfaction in the Restaurant

Business” was used, as well as the study conducted by Karki and Panthi (2018)

entitled “How Food Quality, Price, Ambiance and Service Quality Effects Customer

Satisfaction: A study on Nepalese Restaurants in Finland”.

There are four parts in the questionnaire and it has 20 items overall. The first

part of the questionnaire is about the Servicescape. The first part has five items. The

second part of the questionnaire is about the Contact Personnel or Service

Providers. The second part has five items also. The third part of the questionnaire is

about the Invisible Organization and System. The third part has five items too. The

last part of the questionnaire is about Other Customers. The last part has five items

as well. The statements were measured in a five Likert scale. The Likert scale

measures the level of influence of service experiences of customers towards themed

restaurants and the significant difference in the service experiences of respondents

when grouped according to their profiles.

Specific process will undertake in making the questionnaire by reading

literature to create a pool of items for inclusion in the instrument. This survey tool

was validated by group of experts to assure that the items in the questionnaire were

appropriate and correct. The comments, suggestions and recommendations of the

experts were properly taken and reflected by the apprentices. The level of influence

of service experiences is based on the average weighted mean. These scores were

categorized and scaled using the exact limits with descriptive equivalent.

Exact limits Description Interpretation

4.21-5.00 Strong Agree/Always This means that the self-concept /

competency skill is manifested all the
times.
4.21-5.00 Agree/Often This means that the self-concept /
competency skill is manifested often
times.
2.61-3.20 Neutral/Sometimes This means that the self-concept /
competency skill is manifested
sometimes.
1.81-2.60 Disagree/Seldom This means that the self-concept/
competency skill is manifested rarely.
1.00-1.08 Strongly This means that the self-concept/
Disagree/Never competency skill is never manifested

Data Gathering

These are the following procedures that will conducted in gathering the

research data;

1. Through the purposive sampling, the researchers sought the permission of the

Managers of the Themed Restaurants who were concerned in this study.

2. After the grant of permission, the questionnaires were explained and

administered.

3. After the questionnaires were retrieved. It was matched and tabulated in a

spreadsheet program and a statistical method was used to answer the research

problem.

Statistical Treatment of Data

The statistical tools employed in treating the problem were the following:

Mean. This will be used to determine the level of service experiences of customers

in McDonald’s Bajada, Davao City.

Analysis of Variance (ANOVA) and T-Test. ​These will be used to determine if

there was a significant relationship between the level of service experiences in

McDonald’s Bajada, Davao City and the significant difference in the service

experiences of respondent when grouped according to the respondent’s profile.

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