Thesis Nova Evans Ace

St.
Paul University Philippines

Tuguegarao City, Cagayan 3500
Customers Satisfaction of the Restaurants in Tuguegarao
City
___________
A Research Proposal
Submitted to the Faculty of the
School of Business, Accountancy and Hospitality
Management
__________________
In Partial fulfillment of the Requirements for the Degree
Bachelor of Science in Hotel and Restaurant Management
Bachelor of Science in Tourism Management
________________
by
NOVALIX LEI T. TABALDO
LE VONE HAIRISH F. PELAGIO
JEOLVINE ACE T. CERDENOLA
JOHN EVANS B. CUTARAN
School of Business, Accountancy and Hospitality Management

St. Paul University Philippines
Chapter 1
THE INTRODUCTION AND REVIEW OF RELATED LITERATURE
Introduction:
Restaurant Industry is one of the fastest growing
business in the hospitality industries. A restaurant
prepares and serves food and beverage to their customers.
They generally serve food and also offers a take-out
order or meal. For them to receive or gain lot of
customers, they must not just serve a tasty dish but also
give their customers a high quality services. They need
to sustain the satisfaction of their customers to make
their business grow. Sustainability is the ability to be
maintained at a certain rate or level. In business, it is
often defined as managing the triple bottom line – a
process by which companies manage their financial, social
and environmental risk, obligations and opportunities,
these three impacts are sometimes referred to as profits,
people and planet.
Business sustainability requires firms to adhere to
the principles of sustainable development. According to

the World Council for Economic Development(WCED),
sustainable development is development that “meets the
needs”. So, for industrial development to be sustainable,
it must address important issues at the macro level such
as economic efficiency (innovation, prosperity,
productivity) and environmental accountability (climate
change, land use, biodiversity).
Customer satisfaction Experts have defined customer
satisfaction in services as the extent to which
customer’s expectations are met through services
performance (Santouridis&Trivellas, 2010, 330-340).
Satisfaction, according to Hui and Zheng (2010, 306), is
what the perceived quality results in the form of an
evaluative judgment of a transaction. Sellers directly
come to know the customers’ needs through customer
satisfaction which is very significant because business
strengths and weaknesses can be evaluated through it.
Moreover, it helps in improving the performance of goods
and services to both customers and employees. It not only
gives knowledge on business strengths and weaknesses but
also attempts to urge competition based on those

strengths and weaknesses. Likewise, it causes to
translate more vision into frustrating sources and areas
where progress is needed. Finally, for informing
management of situations or issues in need of actual
promotion, customer satisfaction assists in accommodating
a relevant system (ICR 2011).
The primary goal of this study is to assess the
impact of factors Affecting Sustainability of Customers
Satisfaction of the Restaurants’ Services in Tuguegarao
City in terms of food quality, service quality,
atmosphere and price.

Review of Related Literature
The following studies and literature were searched
and read by the researchers to provide a better
understanding to the study that will be conducted.
Foreign Literature
According to Hui and Zheng (2010, 306),
Satisfaction is what the perceived quality results in the
form of an evaluative judgment of a transaction. Sellers
directly come to know the customers’ needs through
customer satisfaction which is very significant because
business strengths and weaknesses can be evaluated
through it. Moreover, it helps in improving the
performance of goods and services to both customers and
employees. It not only gives knowledge on business
strengths and weaknesses but also attempts to urge
competition based on those strengths and weaknesses.
Likewise, it causes to translate more vision into
frustrating sources and areas where progress is needed.
Finally, for informing management of situations or issues

in need of actual promotion, customer satisfaction
assists in accommodating a relevant system (ICR 2011).
Customer satisfaction, according to Deng et. al
(2009, 289), is very important part of the business setup
because business generates much revenue from the industry
when the customer is satisfied by the services being
provided. Customer satisfaction refers to the customer
buying behaviour and the utility he obtained using the
product. Customer satisfaction functions in a single
manner whereby a customer compares your product with
those of 16 competitors to reach a decision. Therefore,
customer’s evaluation of products and services is what
customer satisfaction defines in that whether their
services are meeting consumer needs or not. Through
customer satisfaction, customer’s expectations are
assessed in that they are being satisfied or remain
unsatisfied with the quality of goods and services.
Customers, sometimes, are more satisfied in case the
product performance goes beyond their expectation (Kotler
2012).

According to Zairi (2000) the feeling of
accomplishment of inner desires is called satisfaction.
Customer satisfaction has direct effect on customer
loyalty (Mittal & Lassar, 1998).
If product or service fulfils the needs and demand
of customers he will become satisfied and will be
converted to loyal customer and thus will add in customer
equity of company. Company profitability is not only
depicted in its balance sheet but it is also measured on
basis of its sound customer base and life time value that
customers deliver to company.
According to Lim in the year 2010: Customers final
pleasure may have significant affect connected with
atmosphere. Bodily environment is useful to produce
graphic within the mind connected with customer in order
to affect their own behavior. Bodily atmosphere with the
dining places have the significant has an effect on for
the client’s pleasure. Super, providing, routed, tunes
and different various other atmospheric components
included in this effect in customer satisfaction.

In the research of Ahmad Al-Tit, 8.53 Qassim
University, entitled, “The Effect of Service and Food
Quality on Customers Satisfaction and Hence Customer
Retention”, the findings showed that service quality and
food quality have a positive influence on customer
satisfaction. In addition, service quality dimensions
besides customer satisfaction have a positive influence
on customers’ retention. Finally, the results confirmed
that customer mediates the relationship between service
quality and customer retention. The small size of the
sample is the main limitation of this study. The
practical implications of this study are founded on the
fact that limited service restaurants in the neighborhood
of universities should realize the critical role of
service and food quality in satisfying their customers as
an antecedent of their retention.
The restaurants, as studied by Harrington et al.
(2011, 437), are in need to get more understanding of
customer satisfaction as to their restaurant quality they
experience to make sure the consumer satisfaction is
achievable or can be maximized in the long term Perceived

restaurant quality is always inter-related to customer
satisfaction. When dining in the fast-food restaurant,
consumers expect to get better-perceived restaurant
quality. If consumers achieve good experience, they are
inclined to get highly satisfied with perceived
restaurant quality as well as the restaurant management
that exceeds or meets their want (Harrington et al.,
2011, 433). Regarding quality, an organization presents
more features from their core brand to make a decision of
post-purchase including the judgment for current
purchase. Consumer satisfaction is a relative concept
rather than an absolute one (MacDougall, Brierley, and
Hill; 2003), that is, whenever a consumer need is met, or
the feeling of pleasure is obtained by support from the
organizations, they will show brand attachment and
satisfaction if the quality of services is adequately
sufficient (Hussain 2013, 57). To retain good and long-
run customer relations, the conception of customer
satisfaction comes to help businesses because customers
are likely to switch to other brands in the same market
when they are unsatisfied (Hussain, 2013, 58). Many

customer’s demographics and attributed have casted an
impact on customer satisfaction.
In the study of 1Ilgaz Feray TÜVER, entitled:IN A
“GREEN” Restaurants, what makes the Customers Satisfied?
The Restaurant Attributes of Trip Advisor Reviewers, the
main attributes that created satisfaction in a green
restaurant are the food, atmosphere and the location,
while food, price and the staff are the dissatisfaction
creating attributes. However, none of the themes are
related to sustainability. Thus, although sustainability
is important in today’s business, customers are not
seeking it as a restaurant attribute. Key words: Green
restaurant, sustainability, restaurant attributes.
Satisfaction and dissatisfaction themes that raised
in this study are similar to each other. However only
service quality is the theme for satisfaction, but not
for dissatisfaction. This is an interesting result yet it
is an important attribute which creates satisfaction
(Peturkova and Parsa, 2010; Koo et al, 1999; Gregory and
Kim, 2004; Gupta et al., 2007; Jeong and Jang, 2011;

Alonso et al., 2013; Kivela, 1997). Similar to that, the
same result is observed in this study. However, unlike
satisfaction, it is not a dissatisfaction attribute. This
may be interpreted as an attribute not so necessary. Food
is another important factor in customer satisfaction.
This result is also supported by other studies (Kivela,
1997; Heung, 2002; Weiss et al., 2004; Gregory and Kim,
2004; Perutkova, 2010; Jeung and Jang, 2011; Harrington
et al, 2011; Harrington et al, 2013). In this theme, the
taste of the food is the most important attribute which
is also considered as important in other studies (Bhuian,
2000; Koo et al, 1999; Liu and Jang, 2009). The
atmosphere is the second most important factor in
restaurant attributes. The ambiance, decoration, music
and other attributes are grouped under this theme. The
factor is also an important criterion for customers in
studies of Heung (2002), Weiss et al. (2004) and,
Harrington et al. (2011). So, the study is supported by
other studies as well. The place of the restaurant is
another factor that is observed in this study. The
location of the restaurant is the most important

attribute and the scenery it has is the second and last
attribute. These attributes are also considered as
important in Bhuian (2000), Koo et al. (1999), Gregory
and Kim (2004) and, Kivela (1997). Staff, which is an
important factor in tourism establishments are also
important in this study as well. The staff is considered
as the agent of the restaurant so, the attitude of the
staff towards customers is very significant.
Kastamonu University Journal of faculty of Economics
and Administrative Sciences- Volume 18, Issue 1, ICEBSS
2017 Special Issue 186 the customers are very important.
The theme is also important for Alonso et al. (2013),
Heung (2002) and, Weiss et al (2004). Price is the last
but not least important factor for customers. The
appropriateness of the price is the only attribute for
customers. Although Liu and Jang (2009) considered it as
the accurateness of the check, the price itself is an
important attribute and this result is supported by
Bhuian (2000), Koo et al. (1999), Jeung and Jang (2011),
Harrington et al. (2011). The study is mainly based on
the attributes which create satisfaction and

dissatisfaction for customers in a green restaurant.
However, there was no information found on being green
among any customer comments. For this reason, it is
thought that the green restaurants are not promoting
themselves on this subject. Yet, the restaurants are not
sharing any information about their green applications on
their web sites. Within the scope of green movement, it
is recommended that the restaurants should have
differentiating strategies by creating green awareness.
As an example, it would not be enough if the restaurants
publish their green applications on internet as the
customers use forums or travelling networks more than
restaurants web pages while travelling. In this sense web
sites like Trip Advisor would have special icons for
green certificates as they have for quality certificates.
As Alpert (1971) have stated, the list of attributes is
not so determining as several. In this study the
attributes that are important for customers are not the
environmental sustainability principles or being green.
The attributes are the food, atmosphere, place, staff,
service quality and price. None of the customer comments

are on green applications. So, it can be said that, the
green restaurants are not informing their customers about
the green applications or, these applications are not
important for the customers. For further studies, the
attitudes of the customers on green applications and
their choice to dine in a green restaurant should be
investigated. Besides, not only customers’ but also
employees’ green attitudes would be important as the
green operations in a restaurant are handled by the
employees.
In the study of Kye & Timothy JeonglyeolLeeentitled,
Customer Satisfaction with Korean Restaurants in
Australia and their Role as Ambassadors for Tourism
marketing, the study found a positive correlation between
satisfaction with local Korean food and the propensity of
diners to think about visiting Korea. The results of this
study can be used to enhance competitiveness and tourist
marketing for Korea. The results reported here may have a
broader application to provide effective managerial and
marketing information to many other ethnic restaurants in
Australia and beyond.

According to Sohyun Bae, Lisa Slevitch and Stacy
Tomas in their study, “The effects of restaurant
attributes on satisfaction and return patronage
intentions: Evidence from solo diners’ experiences in the
United States”, the findings showed that perceived
quality of food, service, and physical environment were
positively related to solo diners’ satisfaction.
Satisfaction mediated the relationships between three
service quality components and return patronage
intentions. Additionally, perceived food quality had a
direct positive effect on return patronage intentions of
solo diners. Findings of this study can also offer
insights into managerial decisions regarding food quality
improvement, employee training, and optimal deployment of
physical environment attributes.
In the Article in Journal of Service Marketing “The
Customer satisfaction in the restaurant industry: An
examination of the transaction-specific model”, Findings
– The regression model suggested that customer
satisfaction was influenced most by responsiveness of the
frontline employees, followed by price and food quality

(in that order). Physical design and appearance of the
restaurant did not have a significant effect. Research
limitations/implications – To explain customer
satisfaction better, it may be important to look at
additional factors or seek better measures of the
constructs. For example, the measures of food quality may
not have captured the complexity and variety of this
construct. It may also be important to address the issue
of why customers visit restaurants. Instead of the meal,
business transactions or enjoying the cherished company
of others may be more important. Under the circumstances,
customer satisfaction factors may be different. The
results are also not generalizable as the sampled area
may have different requirements from restaurants.
Practical implications – Full service restaurants should
focus on three elements – service quality
(responsiveness), price, and food quality (reliability) –
if customer satisfaction is to be treated as a strategic
variable. Originality/value – The study tests the
transaction-specific model and enhances the literature on
restaurant service management.

How Food Quality, Price, Ambiance and Service
Quality Effects Customer Satisfaction: A study on
Nepalese Restaurants in Finland, it was analyzed that
most of the respondents were happy with the services
which were provided by the Nepalese restaurants to them.
It shows that the four main factors, i.e., price,
ambiance, service quality and food quality impacts
customer satisfaction. All our four hypotheses which
stated that 1. There is a positive impact of Food quality
on customer satisfaction 2. There is a positive
relationship between price and customer satisfaction 3.
There is a positive effect of ambiance on customer
satisfaction 4. There is a positive impact of service
quality on customer satisfaction All the proposed
hypotheses were accepted because according to the
analysis, customers who were satisfied these from he
given variables, were ultimately satisfied with the
overall experience of dining in of the restaurant. A
restaurant is not just composed of the food or menu it is
offering, it is a combination of many factors which in
turns paves a way for satisfaction of the customers who

visit these restaurants. If even of the factor is not
adequately met, or poorly implemented, the customers
would visit once, but will not refer it to others and
themselves will not visit again. Price, food quality,
service quality and ambiance are the most important
factor which some restaurants offers and ultimately
affects the overall customer satisfaction and dining
experience. The chosen restaurants for this research are
already established and renowned, they have their
stability in the market and are top ranked. Though being
stable, they still have to maintain their position and
retain their customers and gain loyalty by making them as
satisfied as possible. If customers are satisfied with
the restaurant, they will be loyal to it and would come
again and with positive word of mouth, refer to other
people as well.
According to Hence, ParasuramanZeithaml and Berry
The attainment of quality in products and services had
become a pivotal concern of the 1980s. While quality in
tangible goods has been described and measured by
marketers, quality in services was largely undefined and

un-researched. Hence, Parasuraman, Zeithaml, and Berry1
(1985) attempted to rectify the situation by reporting
the insights obtained in an extensive exploratory
investigation of quality in four service businesses and
by developing a model of service quality, that sought to
improve the previously developed methods by developing a
set of firm characteristics that could be measured by
providing the first complete set of ten service quality
determinants: tangibles, reliability, responsiveness,
communication, credibility, security, competence,
courtesy, understanding/knowing the customer, and access,
and thereby introduced the value of gap measurement in
customer satisfaction and named that new measurement
device as SERVQUAL. These investigators were the first to
utilize gap measurement to determine the importance of
service. An Assessment of The SERVQUAL Dimensions,
replication and testing of the SERVQUAL battery, which
measures the perceived quality of a service situation.
For consumers, evaluation of a service firm often depends
on evaluation of the "service encounter" or the period of
time when the customer interacts directly with the firm.

Knowledge of the factors that influence customer
evaluations in service encounters is therefore critical,
particularly at a time when general perceptions of
service quality are declining. Thereby, Bitner1 (1990)
presented a model for understanding service encounter
evaluation that synthesized consumer satisfaction,
services marketing, and attribution theories by took a
comparative approach to studying service quality
satisfaction in a Journal of Marketing, 54 (April 1990).
According to Cronin Taylor (1992) investigated the
conceptualization and measurement of service quality and
the relationships between service quality, consumer
satisfaction, and purchase intentions. A literature
review suggested that the current operationalization of
service quality confounds satisfaction and attitude.
Hence, the authors tested (1) an alternative method of
operationalizing perceived service quality and (2) the
significance of the relationships between service
quality, consumer satisfaction, and purchase intentions.
The research yielded a new measurement device known as
SERVPERF. Their empirical study utilized structural

equation modeling, which yielded a finding that service
quality should be viewed as a determinant of customer
satisfaction. The results suggested that (1) a
performance-based measure of service quality may be an
improved means of measuring the service quality
construct, (2) service quality is an antecedent of
consumer satisfaction, (3) consumer satisfaction has a
significant effect on purchase intentions, and (4)
service quality has lesseffect on purchase intentions
than does consumer satisfaction.
According to Anderson, Fornell and Lehmann1 (1994)
investigated the nature and strength of the link between
customer satisfaction and economic returns, in the
Customer Satisfaction, Market Share, and Profitability:
Findings. They discussed how expectations, quality, and
price should affect customer satisfaction and why
customer satisfaction, in turn, should affect
profitability; these results in a set of hypotheses that
are tested using a national customer satisfaction index
and traditional accounting measures of economic returns,
such as return on investment. The findings supported a

positive impact of quality on customer satisfaction, and,
in turn, profitability. The authors demonstrated the
economic benefits of increasing customer satisfaction
using both an empirical forecast and a new analytical
model. In addition, they discussed why increasing market
share actually might lead to lower customer satisfaction
and provided preliminary empirical support for this
hypothesis. Finally, they emerged with two findings:
First, the market's expectations of the quality overall
satisfaction with the firm; and second, these
expectations are largely rational, albeit with a small
adaptive component. Furthermore, these investigators
revealed that customer satisfaction is considered to be
based upon value; there-fore it is closely related to
price, unlike service quality that is not related to
price. 1 Anderson, Eugene W., ClaesFornell, and Donald R.
Lehmann, "Customer Satisfaction, Market Share and
Profitability: Findings from Sweden," Journal of
Marketing, 58 (July 1994), 53-66.
According to Ennew and Binks1 (1996) in their
article exemplified the then recent developments in

relationship marketing that had focused attention on the
beneficial effects of customer retention, by exploring
the relationship between service quality customer
relationships and customer loyalty and retention using
evidence from the UK banking sector and its small
business customers. The notion of building relationships
and delivering quality service in order to encourage
loyalty was perhaps of particular importance in the
service sector where it was often argued that customer
attraction costs are significantly higher than retention
costs. Central to the idea of investment in the
development of service quality and customer relationships
was the belief that such investments had enhanced
loyalty, retention and profitability. Empirical evidence
on the extent to which such links existed was still
partial
According to Fontana argued that financial
institutions are not responding to what he felt as a
looming sea change in consumer behavior. The investigator
quoted that "we're living in a society where people have
everything, and "multi-optional" society that Fontana

talked about was the product of waning quality of life.
He believed that younger consumers-children of Baby
British Journal of Management, 7.3 (1996). 2 Mario
Fontana, Consumer Behavior Points to a Multi-Optional.
Society´ Future Banker, 2/2, Boomers, specifically-will
abandon what he termed the superficial aspects of
society, returning to a much richer quality of life.
These new motivations will have a significant impact on
how a person manages his or her financial affairs. It is
these consumers that he contends are looking for a multi-
optional financial world, one where customers are not
serviced based on their assets, but on their individual
preferences and behavior patterns. According to Fontana,
the implications of such change in consumer behavior
suggested that financial institutions could profit
greatly by offering three interconnected layers of
customer service: highly personalized, one-to-one
relationship service; performance-oriented service; and
self-service, meant for "deal hounds". To be successful,
financial institutions must adopt a business model that
allows customers to participate in the layer that best

suits their lifestyle. Pricing is critical;
differentiation will come from services, and the focus
should be on deepening the relationship through
incentives and loyalty programs. Oppewal and Vriens1
(2000) sought to bridge the lack of empirical data by
establishing service quality and customer satisfaction
relationships utilizing.
According to Churchill and Suprenant1 (1982)
investigated whether it was necessary to include
disconfirmation as an intervening variable affecting
satisfaction as was commonly argued, or whether the
effect of disconfirmation was adequately captured by
expectation and perceived performance. Further, they
modeled the process for two types of products, a durable
and a nondurable good, using experimental procedures in
which three levels of expectations and three levels of
performance are manipulated for each product in a
factorial design. Each subject's perceived expectations,
performance evaluations, disconfirmation, and
satisfaction are subsequently measured by using multiple
measures for each construct. The results suggested the

effects are different for the two products. For the
nondurable good, the relationships are as typically
hypothesized. The results for the durable good are
different in important respects. First, neither the
disconfirmation experience nor subjects' initial
expectations affected subjects' satisfaction with it.
Rather, their satisfaction was determined solely by the
performance of the durable good. Expectations did combine
with performance to affect disconfirmation, though the
magnitude of the disconfirmation experience did not
translate into an impact on satisfaction. Finally, the
direct performance-satisfaction link accounts for most of
the variation in satisfaction. It is worthwhile to denote
that the critics of these investigators on SERVQUAL
acknowledge its usefulness in providing a reasonably
reliable device for customer satisfaction measurements.
According to Cronin, Brady and Hult1 (2000) aimed at
both synthesizing and building on the efforts to
conceptualize the effects of quality, satisfaction,
empirical assessment of a model of service encounters
that simultaneously considered the direct effects of

these variables on behavioral intentions. The study
constructed on recent advances in services marketing
theory at their time and assessed the relationships
between the identified constructs across multiple service
industries. Several competing theories are also
considered and compared to the research model. A number
of notable findings are reported including the empirical
verification that service quality, service value, and
satisfaction may all be directly related to behavioral
intentions when all of these variables are considered
collectively. The results further suggested that the
indirect effects of the service quality and value
constructs enhanced their impact on behavioral
intentions. The service management literature argues that
customer satisfaction is the result of a The
International Journal of Service Industry Management,
(1996).
Customer loyalty is a biased behavioural response,
expressed over time, by some decision making unit with
respect to one store out of a set of discount retail
stores, which is a function of psychological decision-

making and evaluative processes resulting in store
commitment (Jacoby and Chestnut, 1978; Knox and
Walker, 2001). Peppers, (2009), reveals that when any
company wanting to increase customer loyalty, need to
focus on whatever tactics will in fact increase the
amount of repurchase behaviour without being limited to,
improving brand preference, product quality, or customer
satisfaction. When performance of any organization meets
or exceeds the expectation, customers will be satisfied
and they are likely to do repurchase and recommend the
product to others. Accordingly, Engel et al., (1990)
satisfaction is defined as the outcome of the subjective
evaluation that the chosen alternative meets or exceeds
expectations. Kotler et al., (2013), defined customer
satisfaction as a person’s feeling of pressure or
disappointment expectation. That result from comparing a
products perceived performance or outcome to the Juran
(1998) cited by Esmaeili, Manesh & Golshan, (2013)
argues that customer satisfaction as a state of mind
where the customers think that the product features
are compatible with their personal expectations.

According to them if the performance falls short of
expectation, the customer dissatisfied and if it
matches the expectation, the customer is satisfied.
If it exceeds the expectation, the customer is delighted.
Gronholdtetal, (2000), defined customer satisfaction as
“perception of customers‟ towards products or
services”. Customer satisfaction is measured as "the
number of customers, or percentage of total customers,
which reported an experience with a firm, its products,
or its services exceed specified satisfaction goals."

Conceptual Framework of the Study
This chapter is divided into 3 concepts: customer’s
satisfaction and customer loyalty. Thus, the relationship
of customers’ satisfaction product, price and service has
been explored in this chapter.
1.1 Customers satisfaction
Customers satisfaction became important in every
business. There are at least two (2) different
conceptualizations of customer, first is the transaction-
this provides the service counter where the server and
the customer transact. Second is the cumulative- this is
the over-all customer satisfaction through-out the
service of a business. This motivates the business to
maintain high level of standards in their service,
awareness of the customer’s expectation and improving
their product. However, the satisfaction of customer is
recognized after the service or product are being use or
eaten.
The high rate of customer’s satisfaction is a good
sign that a business is in a good condition, it gives

many benefits to the organization. It increased the
loyalty of the customer, higher rate of sale, lower the
rate of competitors.
1.2 Customers loyalty
This is one of the most important in a business.
Loyalty will increase when the customers are satisfied
with the service and the product. The loyalty is the
hardest to gain. It takes a lot of time and effort to
gain the loyalty of the customers. But then the high rate
of customer’s loyalty gives a good effect in the
business. It lowers the transaction cost, charge higher
price, higher demand and lastly higher sales.

Research Framework
This part is about the research paradigm. A proposed
study with three components: the input, process and
output.
INPUT PROCESS OUTPUT
Profile of the
participants
1. Age
2. Sex
3. Civil
Status
Level of Assessment on Customers

satisfaction on Customers Satisfaction
services of
Satisfaction on the
restaurants in
of the Services of
Tuguegarao City
in terms of:
Restaurants the
Services in Restaurants in
 Food Tuguegarao the Tuguegarao
Quality City City.
 Service
Quality
 Place and
Ambiance
 Price
FEEDBACK
Figure 1. Research Paradigm
As appears in the Framework, this study used the
profile of the participants and services of the
Restaurant’s in Tuguegarao City to Start-up the study.
Customer Satisfaction is a key element which shows the
status of Business improvement of different
organizations. Through this, researchers will be able to
know about the strength, weakness, threats and
opportunities of the restaurant’s in the Tuguegaroa City
STATEMENT OF THE PROBLEM
This study attempts to assess the affecting
sustainability of customers’ satisfaction of the
restaurants’ services in Tuguegarao City.
Specifically, it seeks to answer the following problems:
1. What is the profile of the participants in terms of:
1.1 Age
1.2 Sex
1.3 Civil Status

2. What is the assessment of the participants on the
services of restaurant’s in Tuguegarao City in terms of:
2.1 food quality
2.2 service quality
2.3 ambiance
2.4 price
3. Is there a significant difference between on level of
‘Customers Satisfaction on Restaurant Services in
Tuguegarao City’ when grouped according to profile
variables?
4. What are the problems encountered in the services of
the restaurants in Tuguegarao City?
5. What are the suggestions and recommendation of the
participants in the services of the restaurants in
Tuguegarao City?
Hypothesis
The hypothesis of the study is developed, there is
significant positive relationship between customer

loyalty and customer satisfaction. People their
unfortunate experiences with particular organizations.
Significant of the Study
The result of this study will benefit the following
group sector and individuals.
Customers. The study helps the customers to be
knowledgeable on the services of the Restaurants in
Tuguegarao City.
Business Owners. The study will help the business
owners to be knowledgeable on what they are lacking and
what customers wants in their Service.
Researchers. The conduct of the study and its result
will be beneficial to the researchers in realizing and
expanding their awareness on the services of restaurants
in Tuguegarao City.

Scope and Limitation
The study was conducted from February-March 2019 to
100 random people from Tuguegarao City who had
experienced Restaurant services in Tuguegarao City.
Who will benefit the study?
The customer and other companies around the city.
Definition of Terms
To provide a better understanding of the problem,
the following were defined within the context of the
study.
Ambiance. The character and atmosphere of a place.
Customer. A person or organization that buys goods
or services from a store or business.
Customer Service. It is the provision of service to
customers before, during and after a purchase.
Food Quality. Is characteristics of food that is
acceptable to consumers. This includes external factors
as appearance.

Place. a building or locality used for a special
purpose
Price. The amount of money expected, required, or
given in payment for something.
Restaurant. Business establishment where meals or
refreshments may be purchased
Quality. The standard of something as measured
against other things of a similar kind, The degree of
excellence of something.
Satisfaction. It is the fulfillment of one’s wishes,
expectations or needs or the pleasure that derived from
this.

Chapter II
METHODS AND PROCEDURE
The chapter presents the Methods and Procedure that
will be used in conducting the study.
Research Design
The descriptive correlational method design will be
used to assess the factors affecting sustainability of
customers’ satisfaction of the restaurants’ services in
Tuguegarao City.
A survey questionnaire also be employed to gather
data to determine the extent of the factors.
Research Participants
The participants to this study are 100 random people
who experienced restaurant services in Tuguegarao City.
Table 1
Frequency and Percentage distribution of the
Research Participants

Age sex status
Valid 100 100 100

N
Missing 0 0 0
Sample and Sampling Techniques
The participants of this study will be identified
using random sampling.
Research Instruments
The instruments which are used in gathering data is
questionnaire. The questionnaire will consist of: Part I.
Profile of the Participants; Part II. Participant’s
Satisfaction on the services in restaurants in Tuguegarao
City in terms of Food quality, Service Quality, Ambiance
and place and Price; Part III. Problems encountered by
the participants and Suggestions and recommendation to
the services.

Data Analysis
The data will be encoded and organized using the MS
Excel and it will be analyzed using SPSS. Though, the
following methods will be used to calculate the data:
1. Percentage and Frequency counts will be utilized
to present the profile of the participants
2. Weighted mean will be used to present the
evaluation of the participants regarding the Food
quality, Service quality, place and price.
The data needed for this study will be gathered
using a survey questionnaire. The 4- point Likert survey
questionnaire will be composed of the following scale:
Numerical Value Descriptive Scale
4 Very much satisfied
3 Very satisfied
2 Satisfied
1 Not satisfied

CHAPTER 3
RESULT AND DISCUSSION
The chapter presents the analysis and interpretation
of data gathered through questionnaires.
Data that gathered were organized through tables and
treated with the corresponding statistical tools
necessary
The following table below presents the frequency
counts and percentage distribution of the respondent’s
profile and views on the different aspects of the study.
Table one (1) frequency and percentage distribution
of respondents when group according to age.
Age
Valid Cumulative
Frequency Percent
percent percent
Valid 1.00 43 43.0 43.0 43.0
2.00 19 19.0 19.0 62.0

3.00 17 17.0 17.0 79.0
4.00 14 14.0 14.0 93.0
5.00 7 7.0 7.0 100.0
Total 100 100.0 100.0
The tables present the frequency count and
percentage distribution of the participants when group
according to age. It shows that 43% are age 18-22, 19%
are age 22-28, 17% are age 28-32, 14% are age 32-40 and
7% are age 40 and above. Data implies that majority of
the respondents are age 18-22.
Table two (2) frequency and percentage distribution
of respondents when group according to gender.
SEX
Frequency Percent Valid Cumulative
percent percent
Valid 1.00 43 43.0 43.0 43.0

2.00 57 57.0 57.0 100.0
Total 100 100.0 100.0
according to sex. It is shows that 43% of the
participants are female and 57% of the participants are
male. The data implies that majority of the respondents
are male.
Table three (3) frequency and percentage
distribution of respondents when group according to civil
status.
Civil status
Valid Cumulative
Frequency Percent
percent percent
Valid 1.00 66 66.0 66.0 66.0
2.00 33 33.0 33.0 33.0

3. 1 1.0 1.0 100.0
Total 100 100.0 100.0
according to civil status. It shows that 66% of the
participants are single and 33% of the participants are
married and 1% of the participants is not identified. The
data show that majority of the participants are single.
2.1
Table four (4) Weighted Mean and Qualitative
Description of the participants ‘Customers Satisfaction
of the Restaurants in Tuguegarao City’ in terms of Food
Quality.
QUALITATIVE
ITEM WEIGHTED MEAN
DESCRIPTION
How do you rate

2.87
the suitability of Satisfied
the food provided?

The food was

2.85
served hot and Satisfied
fresh
The quality of 2.84

Satisfied
food was excellent
The food was very

2.85
tasty and Satisfied
flavorful.
Total 2.8525
The table shown above shows that the participants
were satisfied on the food quality with overall mean of
2.85
2.2
Table five (5) Weighted Mean and Qualitative
of the Restaurants in Tuguegarao City’ in terms of
service quality.
ITEM WEIGHTED MEAN QUALITATIVE

DESCRIPTION
The server was

2.636364
able to answer Satisfied
all the questions
The server was
friendly and 2.81

Satisfied
patient when
taking our order
The server
coordinated the 3.01

Very Satisfied
timing of the
courses perfectly
Total 2.821667
SATISFIED
The table shown above shows that the participants
are satisfied on the service quality with overall mean of
2.82.

2.3
Table six (6) Weighted Mean and Qualitative
of the Restaurants in Tuguegarao City’ in terms of
Ambiance and Place.
QUALITATIVE
ITEM WEIGHTED MEAN
DESCRIPTION
The ambiance was

2.81
good Satisfied
The ambiance is 2.7

Satisfied
relaxing
The place was 2.82

Satisfied
clean and neat
The place is well 2.8

Satisfied
organized

Comfort room is
2.55 Satisfied
clean
2.736
SATISFIED
The table above shows that the participants are
satisfied on the ambiance and place with overall mean of
2.73.
2.4
Table seven (7) Weighted Mean and Qualitative
of the Restaurants in Tuguegarao City’ in terms of price.
QUALITATIVE
ITEM WEIGHTED MEAN
DESCRIPTION
The price is 2.75

Satisfied
affordable
The price is value

2.77 Satisfied
for price paid is

excellent
2.76
SATISFIED
The table above shows that the participants are
satisfied on the pricing with overall mean of 2.76.
3.
3.1
Table eight (8) Weighted Mean on the the Significant
difference of the participants ‘Customers Satisfaction of
the Restaurants in Tuguegarao City’ when grouped
according to Sex.
Variable Gender Mean Qualitative
Description
Food Quality Male 2.87 Satisfied
Female 2.82 Satisfied
Service Male 2.75 Satisfied

Quality Female 2.91 Satisfied
Ambiance and Male 2.74 Satisfied
Place
Feamle 2.73 Satisfied
Price Male 2.75 Satisfied
Table 8 shows that there Is no significant
difference on the participants ‘Customers Satisfaction of
the Restaurants in Tuguegarao City’ when group according
to Sex.
3.2
Table nine (9) Weighted Mean on the the Significant
according to Civil Status.
Variable Gender Mean Qualitative
Description

Food Quality Male 2.62 Satisfied
Service Male 2.52 Satisfied
Quality
Ambiance and Male 2.62 Satisfied
Place
Price Male 2.64 Satisfied
to Civil status.
3.3
Table ten (10) Weighted Mean on the the Significant

according to Age.
Variable Age Mean Qualitative
Description
Food Quality 1 3.08 Very Satisfied
2 2.67 Satisfied
3 2.63 Satisfied
4 3.80 Very Satisfied
5 2.57 Satisfied
Service 1 2.99 Satisfied
Quality
2 2.49 Satisfied
3 2.98 Satisfied
4 2.66 Satisfied
5 2.57 Satisfied
Ambiance and 1 2.88 Satisfied
Place
2 2.58 Satisfied

3 2.52 Satisfied
4 2.72 Satisfied
5 2.77 Satisfied
price 1 2.95 Satisfied
2 2.55 Satisfied
3 2.50 Satisfied
4 2.82 Satisfied
5 2.64 Satisfied
to Age.

CHAPTER 4
SUMMARY, CONCLUSION AND RECOMMENDATION
This chapter represents the summary of findings,
conclusion and recommendation that are drawn from the
results of the data gathered from the participants.
Summary findings
Based on the results of the data gathered, the
following findings were delivered:
1. What is the profile of the respondents in terms of:
1.1 sex
Majority of the participants are male.
1.2 Age
Majority of the participants are age 18-22
years old.
1.3 Civil Status
Majority of the participants are single.

2. What is the assessment of the participants on the
restaurants.
2.1 Food Quality
The participants are moderately satisfied with the
food quality of the restaurants in the Tuguegarao City
with overall mean of 2.85
2.2 Service Quality
service quality of the restaurants in the Tuguegarao city
with overall mean of 2.82
2.3 Place and ambiance
The Participants are moderately satisfied with the
Place and ambiance of the restaurants in the Tuguegarao
City with overall mean of 2.73

2.4 Price
price of the restaurants in the Tuguegarao City with
overall mean off 2.76
3. Significant difference in the assessment of the
participants on the services of the restaurants in
the Tuguegarao city.
3.1 Sex
There is no significant difference on the
participants ‘Customers Satisfaction of the Restaurants
in Tuguegarao City’ when grouped according to sex.
3.2 Age
There is no significant difference on the
participant assessment on ‘Customers Satisfaction of the
Restaurants in Tuguegarao City’, however it is shown that
Age 18-21 are more satisfied with the services of the
restaurants in Tuguegarao City.

3.3 Civil Status
There is no significant difference on the participant
assessment on ‘Customers Satisfaction in the Restaurant
in Tuguegarao City’ when grouped according to civil
status.
4. What are the problems that the participants
encountered with the service of the restuarants in
the Tuguegarao City.
Data showed that participants are Moderately satisfied
with the services in terms of food quality, ambiance and
place, service quality and price. However, participants
had encountered problems during their stay in the
restaurants such as:
 Place is slightly dirty
 Comfort room are dirty
 Poor sanitation
 Service is slow
 The food was served late

 Server is not attentive
 Food was served cold
 The price is expensive
 The server is not approachable
 Noisy place

Conclusion
Bases on the findings of the study, the following
conclusion were derived:
Participants are represented by male, most of them are
single and age 18-21 yrs old. Majority of the
participants revealed that;
1. Food Quality
 The food was served on hot
 The quality of food was good
 The taste of food was great
 The presentation of food was good
2. Service Quality
 The server was approachable
 The service smooth
 The server is hospitable

3. Ambiance and Place
 The place was clean
 The place is well organized
4. Price
 The price is affordable

Recommendations
With the findings and conclusions drawn, the
following recommendations and suggestions are necessary:
 The management should check the cleanliness of
the area/ place
 The server must be attentive
 Owner must train their servers
 Establishments should maintain the quality of the
food and service
 Server must be neat and presentable
 Cooked must need to checked the food before
serving
 The management must do a survey every month

References:
A. INTERNET
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2015, ISSN 1911-2017, ISSN 1911-2025, published by
Canadian Center of Science and Education
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Appendix A
QUESTIONNAIRE
I. Profile of the respondents
Age
Sex
Civil Status
____ 18-22 ____Female
____Single
____22-28 _____Male _____Married
____28-32
_____32-40
_____ others
II. Rate your satisfaction base from your dining
experience. 4 will be the highest and 1 is the
lowest.

FOOD QUALITY 4 3 2 1
How do you rate the suitability of
the food provided?
The food was serve hot and fresh
The quality of food was excellent
The food was very tasty and
flavourful
SERVICE QUALITY 4 3 2 1
The server was able to answer all the
questions
The server was friendly and patient
when taking our order
The server coordinated the timing of
the coursesperfectly

AMBIANCE AND PLACE 4 3 2 1
The ambiance was good
The ambiance is relaxing
The place was clean and neat
The place is well organized
Comfort room is clean
PRICE 4 3 2 1
The price is affordable
The price is value for price paid is
excellent

III.
What are the problems you have encountered with the
services?
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
__________________
What are the recommendations and suggestions you would
like to give?
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
__________________

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Paul University Philippines

Customers Satisfaction of the Restaurants in Tuguegarao

Submitted to the Faculty of the

School of Business, Accountancy and Hospitality

In Partial fulfillment of the Requirements for the Degree

Bachelor of Science in Hotel and Restaurant Management

Bachelor of Science in Tourism Management

NOVALIX LEI T. TABALDO

LE VONE HAIRISH F. PELAGIO

JEOLVINE ACE T. CERDENOLA

JOHN EVANS B. CUTARAN

School of Business, Accountancy and Hospitality Management

THE INTRODUCTION AND REVIEW OF RELATED LITERATURE

Restaurant Industry is one of the fastest growing

business in the hospitality industries. A restaurant

prepares and serves food and beverage to their customers.

They generally serve food and also offers a take-out

order or meal. For them to receive or gain lot of

give their customers a high quality services. They need

to sustain the satisfaction of their customers to make

their business grow. Sustainability is the ability to be

maintained at a certain rate or level. In business, it is

often defined as managing the triple bottom line – a

process by which companies manage their financial, social

and environmental risk, obligations and opportunities,

these three impacts are sometimes referred to as profits,

people and planet.

Business sustainability requires firms to adhere to

the principles of sustainable development. According to

School of Business, Accountancy and Hospitality Management

the World Council for Economic Development(WCED),

sustainable development is development that “meets the

needs”. So, for industrial development to be sustainable,

it must address important issues at the macro level such

as economic efficiency (innovation, prosperity,

productivity) and environmental accountability (climate

change, land use, biodiversity).

Customer satisfaction Experts have defined customer

satisfaction in services as the extent to which

customer’s expectations are met through services

performance (Santouridis&Trivellas, 2010, 330-340).

Satisfaction, according to Hui and Zheng (2010, 306), is

what the perceived quality results in the form of an

evaluative judgment of a transaction. Sellers directly

come to know the customers’ needs through customer

satisfaction which is very significant because business

strengths and weaknesses can be evaluated through it.

Moreover, it helps in improving the performance of goods

and services to both customers and employees. It not only

gives knowledge on business strengths and weaknesses but

also attempts to urge competition based on those

School of Business, Accountancy and Hospitality Management

strengths and weaknesses. Likewise, it causes to

translate more vision into frustrating sources and areas

where progress is needed. Finally, for informing

management of situations or issues in need of actual