Professional Documents
Culture Documents
Jeevan Final
Jeevan Final
KOTESWOR
BY:
Jeevan Bhandari
Exam Roll No: 17022/16
TU Regd. No: 7-2-25-1247-2016
At
Nepal Commerce Campus
Tribhuvan University
Signature:
Jeevan Bhandari
January,2021
i
CERTIFICATE FROM THE SUPERVISOR
This is to certify that the summer project entitled “Determinants of Restaurant Selection in
Koteswor” is an academic work done by “Jeevan Bhandari” submitted in the partial
fulfillment of the requirements for the degree of Bachelor of Business Administration(BBA) at
Faculty of Management, Tribhuwan University under my guidance and supervision. To the best
of my knowledge, the information presented by him/her in the summer project report has not
been submitted earlier.
____________________
Date: January,2021
ii
LETTER OF APPROVAL
The summer project entitled " Determinants of Restaurant Selection in Koteswor " has been
submitted by “Jeevan Bhandari" for the final examination to the faculty management,
Tribhuvan University, in the fulfillment of the requirement for the degree of Bachelors of
Business Administration (BBA). The research committee of this campus has found this project
report satisfactory in scope and quality and has therefore forwarded for examination.
Signature
Chairman
iii
ACKNOWLEDGEMENTS
This study Determinants of Restaurant Selection in Koteswor has been prepared for partial
fulfillment of Bachelor of Business Administration. It is directed towards investigating
Determinants of Restaurant Selection in Koteswor. Individuals and my friends did contribute
immensely towards the success of this report. My limitless thanks go to my supervisor for
painstakingly seeing me through the arduous task of summer project, and also for his unflinching
support and relentless advice to ensure the completion of my studies. Besides, their
understanding, encouraging and personal guidance has provided the good basis for this present
form of project report. Therefore, I would like to convey my special thanks to respected sir for
their valuable inputs. I am also thankful to our college’s Library Staff and Administrative Staff
who directly or indirectly have been helpful in some of the other way. I would like to express my
grateful thanks to the respondents who participated in filling the questionnaires and provided the
valuable information for this study. With the help and support by respondents, we have
successfully completed the part of the questionnaire.
Jeevan Bhandari
January 2021
iv
EXECUTIVE SUMMARY
Consumer attitude refers to the thoughts or beliefs, feelings, and behaviors or intentions towards
a particular thing, usually a good or service. Consumer attitude may be positive or negative, and
it consequently affects their purchasing decision. In the study, three variables are taken as
independent variables: price, brand image and service, whereas, restaurant selection is taken as
the dependent variable. The main purpose of the study is to explore the association between
marital status and reputed restaurants, price sensitivity and influence of outlook of the restaurant
and the impact of independent variables on dependent variable.
v
TABLE OF CONTENTS
Declaration.......................................................................................................................................i
Certificate from the Supervisor.......................................................................................................ii
Letter of Approval..........................................................................................................................iii
Acknowledgements..........................................................................................................................iv
Executive Summary..........................................................................................................................v
Table of Contents............................................................................................................................vi
List of Tables..................................................................................................................................vii
List of Figures...............................................................................................................................viii
Abbreviations...................................................................................................................................x
CHAPTER I Introduction................................................................................................................1
1.1 Background of the study..................................................................................................1
vi
References
Annexure A
vii
LIST OF TABLES
Table 2. 1 Demographic Information of Respondents...................................................................10
Table 2. 2 Perceived opinion on visiting reputed restaurants........................................................12
Table 2. 3 Perceived effect on price..............................................................................................12
viii
Table 2. 4 Opinion in visiting reputed restaurant..........................................................................13
Table 2. 5 Perceived effect of service............................................................................................14
Table 2. 6 Selection of restaurant..................................................................................................15
LIST OF FIGURES
Figure 1. 1 Conceptual framework of the study..............................................................................6
ix
Figure 2. 4 Survey on Perceived Effect on Price...........................................................................13
Figure 2. 5 Survey on opinion in visiting reputed restaurant........................................................14
Figure 2. 6 Survey on perceived effect of service.........................................................................15
Figure 2. 7 Survey on selection of restaurant................................................................................16
x
ABBREVIATIONS
A: Agree
BBA: Bachelors of Business Administration
D: Disagree
N: Neither disagree or agree
n: Number
S.D: Standard Deviation
SA: Strongly Agree
SDA: Strongly Disagree
xi
CHAPTER I
INTRODUCTION
1.6.1. Background of the study
Consumers’ preferences on restaurant food are very strong in this society. This is because of the
continue changes in working and social life and habits of dining out. In social context, gradually
the numbers of working families are increasing worldwide. Consumer Preference is the term in
which consumer like one thing over another. Consumer select an option that has the most likely
among the number of options by consumer have to satisfy his/her need or desire. The result of
their behavior that consumer prefer by showing while purchasing or searching the product. The
study of consumer preferences on fast food items is so much important as it investigates the trend
and pattern of fast food consumption and the importance of various factors affecting the choice
of fast food among the consumers. In today's world, the habit of taking fast food is changing very
fast. People who are living in the city have high tendency to consume fast food compared to the
people living in the rural areas. The reason for the change is the time factor. They do not have
much time to prepare food at their home. As society develops, the economic activities also
expand. Therefore, people become busy and that discourages them to prepare food at their home.
As such, the only alternative is to consume food that is prepared by others and preferably light in
nature. While people select food, a number of factors are considered by them (Islam & Ullah,
2010).
In recent years, the major food consumption trend in urban parts of developing countries is that
more consumers are eating increasingly more meals outside of their homes and most of the
growth in away-from home eating has been in the fast food sector. The interest shown at the
national and internationals levels concerning the fast foods is derived from the scarcity of time in
competitive, dynamic and urban fast life.
Normally, jobholders and students tend to have a busy schedule. Students away from their home
have to cook themselves, which not only affects their studies. They are often conscious about
how to save as much time as possible. In this regard fast food has help them manage their time
and at least provide time for leisure.
1
1.6.2. Statement of problems
There is an increasing trend of customer attraction towards the restaurants and their items. The
food industry is booming and it is very important to find out the reason behind people preferring
to eat and the overall customer satisfaction from having fast food items. There are certain factors
that people look for while eating out at food items, which needed to be highlighted. There are
fast food items in restaurant in Nepal such as, momo, pizza, burger, chowmein, fries, sausage,
roll, sandwich etc., which are gaining a huge popularity in the Nepalese restaurant and food
industry. Therefore, this research will find the answers to these
Questions:
This study aims to explore the factors that influence the factors determining the restaurant
selection. The specific objectives of the study can be listed out as below:
This study examines the factors affecting buying behavior of skin care products among women.
From the last few years, these types of researches were more focused by the researchers.
However, in academic level, there were least researches done. That is why this research provides
critical analysis on the topic so that the findings from the study would be useful as a reference for
similar research in future. This research would be helpful to analyze the various factors affecting
buying decision to discover the key factors that can influence on buying decision. The major
significances of the study are:
i. The study can help to identify which factors affect the buying decision of women
consumers.
2
ii. The study provides a unique opportunity to know about consumer’s needs, demands, and
level of satisfaction.
iii. The findings can be useful for the similar research works in future.
The study is focused to explore the factors determining restaurant selection in Koteshwor,
Kathmandu. Although there has not been much of a research on restaurant done in the context of
Nepal, we can still refer to numerous studies done in various other place settings throughout the
world. Some of the research work that had been conducted to find the determinant of people in
selection of the restaurant are
(Oni, O. A., Matiza, T., 2014) researched on the factors influencing consumer choice of fast food
outlet. The aim of this study was to establish the value and relevance of the salient factors
influencing rural-consumer choice of fast food outlet. A quantitative survey was undertaken,
with data being generated from a convenient sample of 267 respondents. Data in this research
study were analyzed by utilizing the Statistical Package for Social Sciences. The study
established that affordability was the main motivator for rural-based consumers in their selection
of fast food outlet. The study further established that the traditional salient factors of value for
money, convenience and accessibility were significant factor influencing their choice of fast food
outlet. It was also found that factors such as nutritional value and the variety of the menu were
not significant influencers amongst the respondents.
(Azim, A., Shah, N. A., Mehmood, Z., Mehmood, S., Bagram, M. M., 2014) conducted research
in Pakistan on June 2014.This study was based on fourteen variables: cleanliness, privacy, price,
food taste and quality, brand image, menu, etc. All the factors indicated positive results i.e., all
the factors had positive impact on the customers’ selection of the restaurants. But businesses
cannot pay attention to all of them. Therefore, the basic aim of the study is to provide the most
optimal factors that has greater impact on customers’ selection of restaurants. This study
analyzed five most important factors: food quality and taste, cleanliness, physical environment,
staff cooperation and suitable environment for family gathering that highly influence customers
selection of restaurants. It was concluded that among these five optimal factors, food quality and
taste and physical environment need financial expenses to improve.
3
(Mhlanga, O., Tichaawa, T. M., 2016) investigated in Port Elizabeth, South Africa with the main
objective of determining the factors that affect consumer selection criteria in formal full-service
restaurants. The study was based on primary data collected from 10 respondents with the help of
structured questionnaires. The sample for this research were 400 which were included in the
statistical analysis. The variables used in this research are: convenience, to relax, been there
before, celebration, business need, social occasion, quality food, good service, good ambience,
quietness and recommendations on selection of formal full-service restaurants. The result
depicted that the reasons for selecting a particular restaurant differed between restaurants. 24%
respondents selected restaurant A and 29% respondents selected restaurant B because of good
service. Likewise, other factors also differed between restaurants while selecting a particular
restaurant. On the other hand peace and quietness was found to be very important when
customers selected a restaurant.
(Sahni, S., Mohsin, F., 2017) studied the factors influencing the selection of fine dining
restaurant. The research was based on three qualities: food quality, service quality and
atmospherics quality. The study was based on primary data collected through a questionnaire.
Questions related the respondent’s gender, age, marital status, educational qualifications,
designation, experience, purpose of visits, monthly income, and religion they were associated
with. The samples were drawn from the population of 200 respondents, who were either local
residents or tourists at Delhi & NCR region. The study was based on primary data which was
collected through a self-constructed questionnaire. The data in this study was analyzed using chi
square, t-test and ANOVA using SPSS. The purpose of this study was to test the association
between customer’s demographics and the role of customers in selection of restaurants. The
findings from this research indicated that the demographic variables were positively related with
the selection of restaurants. Customers preferred service quality as a major determinant in
selecting restaurant over food and atmospheric quality. The study concluded that these
demographic factors have their influence in selection of restaurants. The result clearly showed
that among all quality factors, customers choice of selecting restaurant is determined by service
quality. This study also revealed that there is a significant relationship between the customer’s
purpose of visiting restaurant and their selection of restaurant.
(Hamidy, H., Claver, J, 2019) investigated customer satisfaction in the restaurant industry in
Kabul, Afghanistan. The main focus of this paper was to study what factors may or may not
4
affect customer satisfaction. The primary objectives of the paper included exploration of
determinants of poor customer satisfaction, reasons why customers dine at restaurants in spite of
knowing that some restaurants do not observe better health standards and study if service quality
factors can impact customer satisfaction. Particularly, the study explored whether (1) restaurant
atmosphere, (2) employee conduct, (3) food quality (4) harassment (5) respect for family privacy
(6) competitions (7) and locations impact the level of satisfaction customers express from the
restaurant industry. Using the linear regression data analysis approach, the paper has unique
findings. The findings indicate that customers currently prioritize cultural issues, such as respect
for family privacy rather than service quality factors, such as food quality, employee behavior,
and restaurant atmosphere. The paper concluded that due to lack of competition, customers these
days value a restaurant, where they feel relaxed with their families and there is a great deal of
respect for females. This paper contributed to a number of ways from the provision of empirical
evidence on customer satisfaction in restaurants in Kabul, to establishments of proofs that can
help in decision making process in the relevant industry, to exploration of contextual evidence
that excels the operation and management, and positively impact the overall growth of
restaurants in Kabul.
(Loudon, D. L., Bitta, A. J., 1993) studied consumer behavior that helped everybody as all are
consumers. It is essential for marketers to understand consumers to survive and succeed in these
competitive marketing environment. The following reasons highlighted the importance of
studying consumer behavior as a discipline. Consumer behavior is said to be an applied
discipline as some decisions are significantly affected by their behavior or expected actions. The
two perspectives that seek application of its knowledge are micro and societal perspectives. The
micro perspectives involved understanding consumer for the purpose of helping a firm or
organization to achieve its objectives. The people involved in this field try to understand
consumers in order to be more effective at their tasks. Whereas, the societal or macro perspective
applied knowledge of consumers to aggregate level faced by mass or society as a whole. The
behavior of consumer has significant influence on the quality and level of the standard of living.
(Akbar, Y. A., Alaudeen, M. S., 2012) noticed that the consumers usually have a wide range of
options to choose from. There are restaurants by the thousands offering a full range of food
varieties and services. To be successful and outstanding, restaurant has to be able to exceed
consumers' expectation by really understanding customers' reasons for selecting a particular type
5
of dining experience. Thus this study will dig the factors that influencing consumer in selecting
normal full-service restaurant in Malaysia. Most previous research was study about premium or
high class full-service restaurant and fast-food restaurant. There were only few researches about
normal full-service restaurant. In fact, there are a lot of numbers of normal full-service restaurant
that operate in Malaysia. Because of that, it is important to do the study about this normal full-
service restaurant that relates with consumer behavior. This research will study 1about what
consumer wants from normal full-service restaurant in Seri Iskandar, Perak and also will help
normal full-service restaurant entrepreneur to improve their service competitiveness. This
research can be beneficial to the full-service restaurant entrepreneur, the academician and
researcher, the consumer, and the policy maker or government (Akbar & Alaudeen, 2012)
Figure 1. 1
Conceptual framework of the study
Independent Dependent
variables variables
Brand image
Price
Location Restaurant
Quality selection
The method will describe actions to be taken to investigate a research problem and the rationale
for the application of specific procedures or techniques used to identify, select, process, and
6
analyze information applied to understanding the problem, thereby, allowing the reader to
critically evaluate a study’s overall validity and reliability.
This variable has a significant impact on consumer buying behavior and because of its
importance we can easily state that price is treated as single and most critical factor which can
cause determinant on consumer decision making and hence can significantly impacts the entire
7
purchase process. Moreover, marketers might vary prices by considering economic situation
prevailing in the location and might also consider perception of the target market, as it might
result in change in the determination of customer perceived value and this change in perception
is always critically important in the consumer’s purchase decision. Similarly, for youth, price
might be treated as the most impactful factor.
Brand image is the impression in the consumers’ mind of a brand's total personality (real and
imaginary qualities and shortcomings). Brand image is developed over time through advertising
campaigns with a consistent theme, and is authenticated through the consumers’ direct
experience. Brand image is the overall impression in consumers’ mind that is formed from all
sources. Consumers develop various associations with the brand. Based on these associations,
they form brand image.
Location refers to the place where the restaurant is situated. In today’s restaurant selection
location is regarded as the major variable or determinant for restaurant selection. Generally,
location show the accessibility of the customers to the restaurant.
Taste is the perception produced or stimulated when a substance in the mouth reacts chemically
with taste receptor cells located on taste buds in the oral cavity, mostly on the tongue.so taste of
the food items given by the restaurant is another important factor in selection of the restaurant.
Restaurant selection in this theory refers to the process of choosing a favorable place to have
food. Selection of restaurant is done on various basis such as varieties of items, price of the
foods, service quality, environment, location, reputation and other so on. People have different
priorities while choosing a restaurant so they select restaurants according to their own
perspective. Since, the number of restaurants has been increased a lot these days, it’s been easy
for people to select as they have got lot of options to select as well as compare.
8
i. The sample size and sampling area of this study is small. Thus, the findings cannot be
generalized to all the consumers in Nepal.
ii. Only three of the major variables i.e. price, brand image, location of the restaurant are
considered in the study.
iii. This study has used non-probability sampling method. Thus, the research findings may
not be generalizable to the whole study population.
iv. The study is primarily based on questionnaire method of data collection. Therefore,
limitations of these methods also remain in the study.
v. The validity of the study depends on the accuracy of the information provided by the
respondents to be covered under the study
9
CHAPTER II
DATA PRESENTATION AND ANALYSIS
Table 2.1 showed the frequency and percentage of the demographic data that includes the
gender, age group and marital status of the respondents.
Figure 2. 1
Gender of Respondents
Male Female
10
Figure 2.1 above showed that 46.7% of the respondents were male whereas 53.3% were female.
Figure 2. 2
Age Group of Respondents
80
70
60
50
40
30
20
10
0
Below 20 20 and Above
Figure 2.2, above showed that 16.7% of the respondents were aged below 20 years and 83.3%
were 20 years and above
Figure 2. 3
Marital Status of Respondents
60
50
40
30
20
10
0
Married Single
Figure 2.3 above showed the marital status of the respondents. 42.2% of the respondents were
married while 57.8% were unmarried.
11
Table 2. 2
Perceived opinion on visiting reputed restaurants
n= 90
Frequency Percent
From table 2.2, showed 20% of the respondents visited only reputed restaurant, 63.3%
respondents didn’t only visit reputed restaurant whereas 16.7% were unfamiliar with the reputed
restaurants.
12
1.6.15. Data Presentation and Analysis
Table 2. 3
Perceived effect on price
n=90
SDA D N A SA Mean S.D
Q1 2 1 4 1 82 4.78 0.77
Q2 8 14 19 32 17 3.40 1.21
Q3 8 24 40 12 6 2.82 1.00
Grand Mean 3.87
Figure 2. 4
Survey on Perceived Effect on Price
90
80
70
60
50
40
30
20
10
0
Q1 Q2 Q3
SDA D N A SA
From figure 2.4, 91.11% of the respondents strongly got influenced by the price of the food
(4.78±0.77). Likewise, 35.56% of the respondent agreed that price doesn’t matter if the food
satisfied the customers (3.40±1.21). 44.44% of the respondents were neutral that increase of
price doesn’t affect decision to visit the restaurant (2.82±1.00).
13
Table 2. 4
Opinion in visiting reputed restaurant
n=90
SDA D N A SA Mean S.D
Q4 8 11 26 34 11 3.32 1.11
Q5 6 24 35 14 11 3.00 1.09
Q6 17 37 24 7 5 2.40 1.05
Grand Mean 2.91
Figure 2. 5
Survey on opinion in visiting reputed restaurant
40
35
30
25
20
15
10
0
Q4 Q5 Q6
SDA D N A SA
From figure 2.5, 47.6% of the respondents agreed that reputed restaurants attracted to visit
(3.32±1.11). Likewise, 38.89% of the respondents were neutral that reputed restaurants always
provided quality service (3.00±1.09). 41.11% of the respondents disagreed that they always
visited hi-fi restaurants only (2.40±1.05).
14
Table 2. 5
Perceived effect of service
n=90
SDA D N A SA Mean S.D
Q7 4 10 16 40 20 3.69 1.07
Q8 8 18 30 22 12 3.13 1.15
Q9 2 6 21 36 25 3.84 0.98
Grand Mean
Figure 2. 6
Survey on perceived effect of service
45
40
35
30
25
20
15
10
0
Q7 Q8 Q9
SDA D N A SA
From figure 2.6, 44.44% of the respondents agreed that varieties of food influenced to visit the
restaurant (3.69±1.07). 33.33% of the respondents were neutral that online service attracted to
buy food from a restaurant (3.13±1.16). 40.00% of the respondents agreed that quick service
affected the preference of the restaurant (3.84±0.98).
15
Table 2. 6
Selection of restaurant
n=90
SDA D N A SA Mean S.D
Figure 2. 7
Survey on selection of restaurant
45
40
35
30
25
20
15
10
0
Q10 Q11 Q12
SDA D N A SA
From figure 2.7, 44.44% of the respondents strongly agreed that the restaurant provides pure
drinking water (4.03±1.13). Likewise, 40.00% of the respondents strongly agreed that hygienic
food is provided in the restaurant (4.07±1.00). 45.56% of the respondents strongly agreed that
restaurants charged fair price (3.93±0.88).
16
CHAPTER III
CONCLUSION AND ACTION IMPLICATIONS
1.6.16. Conclusion
This study has been conducted in order to explore the factors determining selection of restaurant
and to examine the association of marital status with opinion on visiting reputed restaurant, price
sensitivity and outlook of the restaurants. Quantitative, descriptive, relational and exploratory
research designs have been implemented for the purpose of the study. This study is based on the
primary data collected through the means of survey questionnaire. The questionnaire was
administered on altogether 90 customers of restaurants at Koteswor area. Various statistical tools
such as mean and standard deviation have been employed in this study in order to analyze the
data. The analysis of data using these statistics has facilitated the understanding and
interpretation of the situation of variables, perception of respondents on restaurant selection and
association of independent variables with the dependent variables.
Based on the findings attained through analyzing the determinants of restaurant selection, the
perception of respondents on the variables of the study is determine.. As per the result of the
ranking question, food service time is ranked as the most important factor in restaurant selection,
whereas, interior design is ranked as the least important factor. Likewise, music and environment
is ranked two. Analysis of descriptive statistics suggest that outlook of the restaurant is the most
important factor of restaurant selection, pice sensitivity is the second most important factor
influencing restaurant selection. Likewise, opinion on visiting reputed restaurant is found to be
the third most influential factor.
17
come up with various offers of discounts and complementary dishes in order to attract customers.
18
REFERENCES
Akbar, Y. A., Alaudeen, M. S. (2012). Determinants of Factors that Influence Consumers in
Choosing Normalfull-Service Restaurant : Case in Seri Iskandar, Perak. South East Asian
Journal of Contemporary Business, Economics and Law, 1(7), 137-145.
Azim, A., Shah, N. A., Mehmood, Z., Mehmood, S., Bagram, M. M. (2014). Factors Effecting
the Customers Selection of Restaurants in Pakisthan. International Review of
Management and Business Research, 3(2), 1003.1013.
Hamidy, H., Claver, J. (2019). The Determinants of Customer Satisfaction in Kabul:Evidence
from Restaurant Industry. doi:10.13140/RG.2.2.25457.10087
Loudon, D. L., Bitta, A. J. (1993). Consumer Behaviour: Concepts and Applications. New York;
McGraw-Hill.
Mhlanga, O., Tichaawa, T. M. (2016). What are the current factors affecting consumer selection
criteria in fomal full service restaurant in Port Eliabeth, South Africa ? African Journal of
Hospitaluty, Tourism and Leisure, 5(2), 1-11.
Oni, O. A., Matiza, T. (2014). Factor Influencing Consumer Choice of Fast Food Outlet: The
Case of an American. Mediterranean Journal of Social Science, 5(2), 1-11.
Sahni, S., Mohsin, F. (2017). Factors Influencing the Selection of Fine Dining Restaurant in
Delhi and NCR:An Empirical Study. International Journal of Research and Innovation in
Social Science, 16-22.
ANNEXURE A
A Questionnaire on “Determinants of Restaurant Selection in Koteswor "
Dear respondents,
I am Jeevan Bhandari, currently student of Nepal Commerce Campus conducting a research
survey on “Determinants of Restaurant Selection in Koteswor”. I would request you to cooperate
by filling in the questionnaire. Answers from respondent will be used for academic purpose only
and will be treated with much confidentiality. Please take a few minute to answer the following
questions.
Please tick () the most appropriate response
1. Gender
a. Male b. Female
2. Age
3. Marital Status
a. Unmarried b. Married
4. Do you visit only reputed restaurants?
a. Yes
b. No
c. Not Sure
Please tick the appropriate answers for the statements where 1 is strongly disagree, 2 is disagree,
3 is neutral, 4 is agree and 5 is strongly agree.
S.N. STATEMENT 1 2 3 4 5
1. I get influenced by price of the food .