Group 31 RP Final Report For Presentattion

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TOPIC: THE INFLUENCES OF SERVICE QUALITY, FOOD QUALITY, PRICE,

AND RESTAURANT ENVIRONMENT ON CUSTOMER LOYALTY IN
RESTAURANTS IN HANOI IN THE CONTEXT OF BUSINESS RECOVERY
POST-COVID – 19
Teachers/Lecturers: Nguyen Vu Hung
Nguyen Thi Tuyet Mai
Research Coach: Nguyen Thi Hong Van
Group: 31
Group member: Nguyễn Thu Ngân – 10200643
Nguyễn Thị Khánh Linh - 10200316
Nguyễn Trần Thanh Thanh - 10200699
Phan Hải Yến - 10200031
Hoàng Thanh Trang - 10200688
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Table of Contents
A. INTRODUCTION.....................................................................................................3
I. Background:..........................................................................................................3
II. Research problem:................................................................................................5
III. Research gap:.....................................................................................................5
IV. Research objective:............................................................................................6
V. Research question:................................................................................................6
VI. Research scope:..................................................................................................6
B. LITERATURE REVIEW & FRAMEWORK............................................................7
I. Customer loyalty:..................................................................................................7
II. Factors that affect customer loyalty:...................................................................8
III. Models Approach:...........................................................................................10
IV. Conceptual framework:..................................................................................14
C. RESEARCH METHODOLOGY.............................................................................14
I. Hypothesis development:........................................................................................14
II. Measurement and Questionnaire Development................................................17
Table 4: Measures of Service quality, Food Quality, Reasonable price, Restaurant

Environment, and Customer Loyalty..............................................................................17
III. Sample and Data Collection:..........................................................................19
D. INDIVIDUAL WORK.............................................................................................20
I. Nguyễn Thu Ngân_10200643..............................................................................20
II. Nguyễn Thị Khánh Linh_10200316...................................................................30
III. Nguyễn Trần Thanh Thanh _10200699.........................................................37
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IV. Hoàng Thanh Trang _ 10200688....................................................................46
V. Phan Hải Yến_10200031.....................................................................................52
E. CONCLUSION........................................................................................................52
F. REFERENCES:......................................................................................................53
G. APPENDIX..............................................................................................................59
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A. INTRODUCTION
I. Background:
The world is developing, life is becoming rushed, so people slowly change entertainment
and eating habits. In addition, the education level and income of the people are
increasingly improved, and the quality of life is getting higher, which leads them to want
to enrich their daily meals. Eating lunch and dinner at an outside restaurant is now a way
of life for modern people (Shamsudin & Selamat, 2005). To meet the increasing needs of
people, more and more restaurants are springing up like mushrooms. It is not only a place
to provide meals, but also a place to meet people's social and business activities (Majid et
al., 2018). As of now, around 35% of the average Vietnamese family's monthly budget
goes toward food and beverages, according to statistics compiled by Vietnam Report. In
Hanoi - the capital of Vietnam, the economic - political - tourist center of the country,
eating out has increased significantly in recent years. This helps to expand the restaurant
business. According to the Market Report of Culinary Business in Vietnam in 2022,
Vietnam has nearly 338,600 restaurants/cafés. Hanoi is the province with the second
largest number of restaurants after Ho Chi Minh City with 39.78%. The F&B business is
expected to earn approximately 610 trillion VND in 2022, with 333.69 trillion VND
coming from the dining-out market despite being severely impacted by the Covid
outbreak (Dương, 2023). In addition, right after the pandemic, the demand for eating at
restaurants has changed. People gradually have the habit of ordering food from
restaurants through apps such as Now Food, Beamin, and Grab Food to eat at home or the
company. However, this study only focuses on the restaurant segment and has not paid
attention to a part of diners who gradually switch to using food delivery services.
The food business is a profitable sector that is growing horizontally and vertically.
Restaurants must constantly boost their competitiveness by obtaining client satisfaction to
have a sustainable presence in the food service business. To compete and create more
significant money, restaurant operators must concentrate on service standards, food
quality, price, and the physical atmosphere. The primary variables defining the consumer
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loyalty scale are service quality, meal quality, the interior atmosphere, and suitable
pricing (Reimer & Kuehn, 2005; Ryu & Jang, 2007). Customers' purchase habits may be
influenced by the restaurant's price and atmosphere (Shoemaker et al., 2005). As a result,
maintaining client happiness is critical. Customer satisfaction will increase customer
loyalty, keep them returning to eat, and generate sales. Ryu et al., 2012; Ma et al., 2014).
According to Shoemaker and Lewis (1999), restaurants should not only concentrate on
marketing methods to acquire new consumers but also on strategies to maintain current
ones.
Most studies on service marketing aim to identify elements that boost customer loyalty
(McDougall & Levesque, 2000). Ryu (2005) and Varki and Colgate (2001) cite research
that shows that factors including service quality, ambiance, and pricing all contribute to
happy customers. Several studies have investigated the function of customer loyalty in
the physical environment, service quality, pricing, and customer happiness in influencing
consumer loyalty in service literature. Most of the previous studies based on service-
related literature have examined service standards, customer satisfaction, and physical
environment in various sectors, including the hotel sector, the healthcare sector, the
automotive sector, the aviation sector, and the public transportation sector. There hasn't
been a ton of research done on how these four characteristics affect customer loyalty in
the restaurant sector. To boost customer happiness and loyalty, these factors must be
objectively examined service quality, food quality, pricing, and the restaurant's
atmosphere. The impact of these four restaurant variables on customer loyalty in the
Hanoi restaurant business has not been the subject of any empirical study. Despite
theoretical and experimental evidence linking meal costs and ambiance to increased
consumer happiness and loyalty.
This research will help better understand the service industry in Hanoi. This research
investigates how service quality, food quality, costs, and restaurant atmosphere might
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impact customer loyalty, and so investigates the link between four criteria and consumer
loyalty in the restaurant business. These variables should be tested experimentally.
II. Research problem:

Restaurants and companies must learn to actively listen to customers' views and opinions
to restore the growth and prosperity of the pre-epidemic era. Managers will thus be able
to completely fulfill client pleasure and provide ideas to enhance restaurant service (Kao
et al., 2016). To increase client faithfulness in a restaurant, all four variables must be
satisfied: food quality, service quality, pricing, and lastly the restaurant atmosphere.
Managers that know how to properly integrate these aspects may boost customer
faithfulness, consequently enhancing the enterprise's business performance. An
improvement plan will result in client retention, good word of mouth, and
recommendations to acquaintances. If the restaurant fails to fulfill the demands of its
consumers, it will change customer patterns, spread unfavorable word of mouth, and get
complaints. This has a long-term negative impact on the brand's image and reputation
Businesses should change and use the aforementioned aspects as an essential part of their
company plan to recover in the best possible manner. Furthermore, managers can easily
handle crises or unforeseen events if they grasp the beneficial benefits of these four
characteristics as well as their link to company recovery.
III. Research gap:

Previous studies have examined the impact of these four factors on customer loyalty at
length. These include a study by Danish, Mohammad & Hazrat ( 2021), research by
Amer & Raja (2020), and research by Yong Ho Shin & Liu Yu (2020). All of their
studies place a strong emphasis on other elements that attract customers, such as high-
quality service, an attractive dining environment, and affordable costs so that customers
can frequent them. However, the subject matter of earlier studies, which often examined
the restaurant industry nationally or globally, is still too wide and vague. Few research
has focused on the setting of the post-Covid-19 economic recovery, even though there
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have been several studies on restaurant loyalty conducted before and in the context of
Covid-19. The influence of the four criteria described above on customer loyalty in
various situations must thus be further investigated to improve the restaurant's business in
a particular location. Compared to other research, ours was done in a more precise
context. This research focuses on the effects of four variables on patron loyalty to
restaurants in the context of post-Covid-19 recovery business: service quality, food
quality, pricing, and restaurant environment in Hanoi
IV. Research objective:

The objective of the research is to determine the effect of parameters such as service
quality, food quality, pricing, and restaurant space on consumer loyalty to restaurants in
Hanoi in the context of business recovery post-Covid 19 pandemic.
V. Research question:
What effect do four major criteria have on customer loyalty in the Hanoi restaurant
industry: meal quality, service quality, pricing, and restaurant space?
VI. Research scope:

Through the aforementioned backdrop and challenges, this research will concentrate on
individuals of all ages who live and work in Hanoi, Viet Nam for the period from April to
June 2023.
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B. LITERATURE REVIEW & FRAMEWORK
I. Customer loyalty:
The word "loyalty" describes a trait, mentality, or people who are completely
committed to anything, such as their country, their home country, their noble goals, their
organization, etc. Everywhere, in every person, in every scenario, loyalty and dedication
can be found. In actuality, loyalty can take many forms, and each person has their
definition of loyalty (Bui, 2022).
A group of people that regularly use a business and have faith in its goods and services
are referred to as "loyal customers" (Nguyen, 2022). Other characteristics of loyal
customers include: they do not actively seek out different suppliers, they are more willing
to recommend the brand to their family and friends, and they are not willing to accept
offers from competing companies (Nguyen, 2023). Consumer loyalty is a measure of how
likely a consumer is to repeatedly use and suggest a company's or brand's preferred
service (Oliver, 1999). Customer happiness, satisfying customer experiences, and the
overall value of the products or services that customers obtain from a firm all contribute
to it. Customer loyalty is very important for businesses because it helps maintain an
existing customer base (Loureiro & Gonzalez, 2008). Customer loyalty is considered the
most important factor for the survival and development of any business in the market.
Taking care of and retaining customers to stay with the brand for a long time is a strategy
to help businesses grow revenue, which is interesting to many managers. According to
Bowen & Chen (2001), Yoo & Bai (2013) have 3 main factors in determining customer
loyalty: behavior, attitude, and composite. Customer satisfaction with a service or product
is a decisive factor in returning customers to help increase the number of existing
customers for the business. Many factors have shown that satisfaction is an important
factor leading to customer loyalty, especially in the service sector; customer loyalty is
demonstrated through customers will return to buy the product again, positive word of
mouth, and recommending the product to relatives and friends (Kandampully &
Suhartanto, 2000). It's critical to cultivate, nurture, and keep clients who will stick with
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your brand or product for a long period if you want to generate high value. Requires
businesses to have a methodical and appropriate strategy.
II. Factors that affect customer loyalty:

1) Service Quality:
In the current business era, service quality has emerged as a crucial determinant of an
enterprise's success or failure. The phrases quality and service are combined to form the
phrase "service quality." Service does not result in ownership of anything and refers to
any action that one party can perform for the other. Berry & Parasuraman (2004) consider
service quality as the most effective competitive tool and it is also considered the
lifeblood of the organization, helping the organization to grow stronger. Besides, quality
is widely recognized as an effective tool for suppliers or enterprises to achieve better
business performance. Service quality is the degree to which a service meets customer
needs and expectations (Wisniewski & Donnelly, 1996). Furthermore, service quality is
important as it can be seen as a useful tool to build customer loyalty and contribute to
organizational success (Zhong & Moon, 2020). Once a business provides good service
quality, it will improve customer satisfaction, thereby attracting more loyal customers,
increasing market share, and achieving better business performance (Zhao & Huddleston,
2011). Many academics have generally noted that service quality is a key component
that firms should work to acquire and maintain to create a flourishing organization.
2) Food quality:
The first and most crucial element in luring and keeping consumers is the quality of the
food. Because they want to experience the meal as they anticipate when they dine at the
restaurant for the first time. Namkung & Jang (2007) acknowledged that the quality of
the cuisine plays a significant role in a restaurant's operation and has a significant impact
on diners' intentions to frequent the establishment again. Today, when consumers are
more and more concerned about food hygiene and safety, food quality has become the
most important criterion when evaluating a restaurant. When consumers decide to go to a
restaurant, they will tend to consider the quality of the food as well as the quality of
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service because it reflects the way the restaurant operates (Sulke & Hensley, 2004). In
addition, Peri (2006) pointed out that food quality is an important factor that should be
provided by restaurants to meet the demand for food safety, thereby building customer
loyalty. Besides, people are more and more interested in healthy foods, rich in nutrients
for the body. As a result, Kivela et al. (2000) stressed the necessity for restaurants to
serve food that is secure, wholesome, of known origin, and rich in nutritive components
that are beneficial to human health. In addition, the quality of the dishes can be
mentioned as taste, color, taste, sauce, and accompanying spices. All of these will directly
affect the perception of diners. If customers are satisfied with the quality of the food, this
will be a huge plus for the restaurant and will attract more loyal customers. It can be said
that the quality of the food is an essential factor determining the success or failure of any
restaurant, thereby orienting customer behavior and building a loyal customer file.
3) Restaurant environment:
In the restaurant industry, the atmosphere is crucial in determining the degree of
consumption and fostering brand loyalty among consumers because it is what they can
see and feel. Besides, the restaurant environment has a huge influence on how customers
interact with the service the restaurant provides and ultimately affects how much they are
willing to spend to use the meal. The restaurant environment determines the size and rank
of the restaurant and, above all, directly affects the customer experience. Decorating the
restaurant in a subtle and eye-catching way will be an important factor to attract the
attention of customers. Hanaysha (2016) suggests that the restaurant environment
includes factors such as decoration, lighting, temperature, scent, noise, and music, which
are important factors affecting customers' feelings when dining. Besides, Ryu et al
(2012), Ali et al (2016) also pointed out that attracting many loyal customers depends on
many other factors such as facilities, equipment, and staff expertise. By providing the
restaurant with cutting-edge, secure, aesthetically pleasing, and hygienic amenities, it
may draw in more customers, increase its competitiveness, and develop its brand. It may
be claimed that the atmosphere of a restaurant has a significant impact on fostering client
loyalty and directly influences the company's revenue.
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4) Fair Price:
Price acts as a means, defined in terms of the value a buyer must pay when purchasing a
product or service. In other words, it is the medium of exchange that both the seller and
the buyer agree to when making a transaction. Zhong & Moon (2020) believes that price
is the amount of money that customers spend to own a product or use a service and that is
also the benefit that customers receive. This is also one of the factors that determine the
purchasing power and behavior of consumers. The financial ability of consumers places
some limitations on their choices, as they cannot always afford a better quality product.
Therefore, prices influence the choice of goods or services. Because price has an
important influence on customers' purchasing and consumption behavior, if customers
feel unsatisfied with the price of a product, it will lead to them changing brands or buying
habits (Campbell, 1999). In addition, if the customer fails to reach an agreement on the
price with the seller, it can lead to frustration, reduced purchases, negative word of
mouth, and complaints (Rothenberger, 2015). Enterprises should apply a product pricing
strategy flexibly, in line with the customer class that the business is targeting to boost
sales, increase market share and attract more loyal customers. Applying product and
service prices that match product quality will be a good way to build customer loyalty to
a product or brand. Konuk (2018) also showed that fair price has a great impact on
customer loyalty.
III. Models Approach:

To improve the quality of the research paper, the group of 31 consulted the models of
previous studies to be able to draw a model suitable for the general research paper. Below
is an analysis of the previous study's patterns and why it's useful for the group's 31
research papers.
First, we refer to the research of Ali, Alam, and Bilal. In the above model, the author has
shown that there are 3 main factors affecting customer loyalty through the mediating
factor of customer satisfaction: service quality, price, and restaurant environment. The
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author emphasizes that directors and managers should focus on improving and
developing the above three factors to be able to improve competitiveness and generate
more significant revenue. This is essential because it protects customer satisfaction and
contributes to attracting loyal customers. Besides, customer loyalty is also built on
customer satisfaction. Research by Ali, Alam, and Bilal has provided us with an
understanding of the relationship and influence of service quality, price, and restaurant
environment on customer loyalty.
Figure 1: Ali, Alam, Bilal's model
We'll then refer to Rajput and Gahfoor's findings. Three aspects—food quality, service
quality, and physical environment—have been linked in this study as having a significant
impact on patron satisfaction and their likelihood of returning to a restaurant. To boost
competition, boost customer happiness, and boost income, managers need expertly blend
these aspects. Customers are more likely to return and spread the good word about a
restaurant if they are happy with the service they receive. The author added that food
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quality is crucial because it directly influences consumers' behavior. Due to the
connection between food safety and health in today's consumers, restaurants that serve
food of a high caliber will be a great bonus and help boost customer satisfaction. The
physical setting is necessary for achieving client pleasure. Customers are readily drawn to
a restaurant with a lovely, airy, and tidy interior. The restaurant environment, food
quality, service quality, and customer happiness have all been positively correlated in
research by Rajput and Gahfoor.
Figure 2: Rajput & Gahfoor's model
Finally, group 31 will refer to Khanh Giao's research on the influence of service quality,
price, and restaurant environment on customer loyalty through the intermediary factor of
customer satisfaction at the restaurant in Vietnam. The author argues that competition in
the culinary industry requires each restaurant to focus on customer satisfaction, thereby
building customer loyalty and increasing revenue. In the field of service, especially in
restaurant service, the service stage is considered very important, the professionalism and
serviceability of the staff should be paid attention to bring customers the best experience.
Besides, cleanliness is always appreciated, it is necessary to ensure that the restaurant
space is always clean and tidy to create comfort for customers when coming to dine
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thereby improving customer satisfaction and building loyalty to the restaurant. Moreover,
price information is of great interest to customers, restaurant managers also exchange
price information regularly with staff, to be able to have a certain comparison of food
quality and prices to give customers the best experience in terms of both price and service
quality. Khanh Giao's research has shown a close relationship between service quality,
price, and restaurant environment to customer loyalty and adds useful information to the
study of group 31.
Figure 3: Khanh Giao's model

After analyzing the above three models, group 31 agreed to expand the general model of
the whole group based on the model in Ali, Alam, and Bilal's study. Because research has
provided detailed and logical analysis and ways to build customer loyalty. In addition, the
careful analysis of the effects of service quality, price, and restaurant environment has
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given the most comprehensive view to improving customer satisfaction, thereby building
customer loyalty for a restaurant or brand.
IV. Conceptual framework:
C. RESEARCH METHODOLOGY
I. Hypothesis development:
1. The relationship between service quality and customer loyalty:
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In the restaurant industry, service quality plays a crucial role in building customer loyalty
(Ha, J & Jang, 2010). Service quality is regarded as an essential restaurant positioning
strategy (Chow et al. 2007). Additionally, Hadi et al. (2019) found that service quality
has a positive and statistically-significant effect on cell phone user loyalty. Bapat (2017)
has shown that there is a strong correlation between service quality and customer loyalty.
When customers perceive that they are receiving high-quality service, they are more
likely to have positive feelings toward the company and its products or services, and they
are more likely to remain loyal to the company over time. Similarly, in another sector of
hospitality, the perceived quality of tourism package tour services influences tourists’
loyalty to service providers (Cetin, 2020). Manhas and Tukamushaba (2015) state that
superior service quality can increase consumer loyalty. Empirical studies in restaurant
contexts demonstrate that enhancing service quality increases customer loyalty
(Dandotiya et al., 2020). It is therefore posited:
H1: Service quality has positive effects on customer loyalty.
2. The relationship between food quality and customer loyalty.

In the context of restaurants in general, Lewis (1981) noted that food quality was the
most significant factor for consumers when choosing restaurants. This is notably true
because food is the primary product of any restaurant (Lewis, 1981). Previous researchers
have concurred that restaurant food quality impact on customer loyalty (Qu, 1998; Ha &
Jang, 2010). When consumers receive fresh, flavorful, and well-presented food of high
quality, they are more likely to be satisfied with their dining experience and return in the
future. Furthermore, they may recommend the restaurant to others, thereby enhancing its
reputation and attracting new consumers (Ha & Jang, 2010). Food quality is a crucial
factor in establishing consumer loyalty, particularly in the restaurant industry (Clark &
Wood, 1999). Similarly, Rai & Anirvinna (2019) agreed that food quality is an important
factor in determining consumer loyalty. It is therefore hypothesized:
H2: Food quality has positive effects on customer loyalty.
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3. The relationship between restaurant environment and customer loyalty.
The environment of the restaurant may have a substantial effect on consumer loyalty.
Customers are more likely to return to a restaurant and recommend it to other people if
they enjoy the overall dining experience, which includes the atmosphere (Jin, et al. 2012).
A restaurant's physical environment, such as decor, lighting, music, and cleanliness, can
all affect a customer's perception of a restaurant and the customer's overall experience
( Sulek & Hansley, 2004). In addition, a well-designed, comfortable, clean, and eye-
catching restaurant can enhance the dining experience and leave a positive impression on
the customers leading to customer loyalty (Han & Ryu, 2009). According to Mattila
(2001), a positive restaurant environment that combines a comfortable physical space
can create a loyal customer base and contribute to a restaurant's long-term success. It is
therefore posited:
H3: The restaurant environment has positive effects on customer loyalty.
4. The relationship between a fair price and customer loyalty:

Fair price appears to be the most important predictor of customer loyalty (Suleket et al.,
2004). Kausar et al. (2014) surveyed restaurant customers dining in Pakistan and found
that affordable prices essentially make consumers loyal to restaurants. Konuk (2019)
demonstrated that fair prices stimulate and positively influence consumer loyalty to
restaurants. Hidayat et al. (2019) examined the impact of pricing on restaurant customer
loyalty in the Indonesian context and established a positive correlation between consumer
loyalty and fair price levels. Opata et al. (2019) studied the F&B industry to better
understand consumer behavior and concluded that the perception of fair prices is an
essential determinant of customer loyalty as it is considered an important purchasing
decision for individuals. Khan (2011) found that fair price is an important determinant of
customers' buying intent to stimulate business intent again. As a result, when prices are
right, customers feel satisfied and become loyal customers. Jang (2007) also agrees that
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fair pricing has a positive relationship with customer loyalty through them returning
repeatedly. It is therefore hypothesized:
H4: Fair price has positive effects on customer loyalty.
II. Measurement and Questionnaire Development

All scale-measuring components utilized in this research were modified versions of self-
reported measures that are reliable in the literature. The questionnaire's four sections—
Service Quality (SQ), Food Quality (FQ), Restaurant Environment (RE), and Reasonable
Price (RP)—inquire into various aspects of the market. This study used a 5-point Likert-
type scale that varied from 1 (strongly disagree) to 5 (strongly agree), which Kasiri et al.
(2017) had previously used to rate service quality. On a 5-point Likert-type scale,
Hanaysha (2016) also assessed the restaurant environment, acceptable price, and meal
quality. The majority of the items were modified from other research, however, due to the
paucity of literature on service quality, three questions from Ryu, K., Lee, H., and Gon
Kim, W. (2012) along with Qin, H., and Prybutok, V.R. (2009) were used to assess this
variable.
Table 4: Measures of Service quality, Food Quality, Reasonable price, Restaurant

Environment, and Customer Loyalty
Đánh giá của bạn về Reference

những nhận định sau
đây từ 1-5
Service Staff members are friendly. Nhân viên thân thiện Qin, H. and
Quality Prybutok,
(SQ) Staff members serve Nhân viên phục vụ chính V.R. (2009)
exactly and quickly. xác và nhanh chóng
19
Staff members are very Nhân viên hỗ trợ nhiều
helpful.
Food Quality The food smells good Mùi đồ ăn hấp dẫn Ryu, K.,
(FQ) Lee, H. and
The food looks attractive Món ăn nhìn hấp dẫn Gon Kim,
W. (2012)
The food is fresh Nguyên liệu tươi sống
The food is delicious Đồ ăn ngon, chất lượng
Restaurant The restaurant environment Môi trường nhà hàng sạch Hanaysha, J.
Environmen is clean sẽ (2006)
t The temperature in the Nhiệt độ trong nhà hàng
(RE) restaurant is comfortable dễ chịu
The design of the Thiết kế của nhà hàng phụ
restaurant is suitable and hợp và hài hòa
harmonize
The lighting and color in Ánh sáng và màu sắc
the restaurant are trong nhà hàng dễ chịu
comfortable
Fair Price The price is reasonable and Giá cả phù hợp và chấp Zhong and
(FP) afforable nhận được với thu nhập Mason
Based on food, the price is Căn cứ vào chất lượng đồ (2020)
fair ăn, giá cả hợp lí
Based on service, the price Căn cứ vào chất lượng
is fair dịch vụ, giá cả hợp lí
Customer I will continue to visit this Tôi sẽ tiếp tục đến ăn nhà Gong, T.;
Loyalty restaurant hàng này Yi, Y.
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(CL) I will recommend this Tôi sẽ giới thiệu nhà hàng (2018)
restaurant to others này cho mọi người
I will say positive things Tôi sẽ nói những điều tích
about this restaurant to cực về nhà hàng này cho
others mọi người
III. Sample and Data Collection:
An assessment of the theories and research models on service quality, product quality,
price, and restaurant environment to patron loyalty to restaurants in Hanoi was the first
step in this study. Based on this, the study model is constructed, which includes the
dependent variable (customer loyalty) and independent variables (service quality, product
quality, pricing, and physical environment), as well as additional scales for each variable.
To create the interview questions, previous scales were used, practice interviews were
held, and the questions were rewritten in plain English while strictly adhering to the
research model and assumptions. After that, questionnaires were used to collect data for a
quantitative study. The obtained data are analyzed by SPSS software to find out the
relationship between the variables in the research model by linear regression method to
check the influence of independent variables (service quality, product quality, price, and
physical environment) on the dependent variable (customer loyalty) and propose
solutions for restaurants in Hanoi.
The handy non-random technique was utilized to pick the research sample, which
consisted of at least 100 diners who had used and experienced the service at restaurants in
Hanoi. The selection of 100 diners as the sample size was made to increase the research
paper's correctness and diversify its information. The remaining response sheets were
used for analysis after the unsatisfactory votes were removed. A structured 5-part
questionnaire with 17 questions that started with a screening question to identify survey
participants who had dining experiences at restaurants was used to gather the data for the
official study. The survey participants will find the questionnaires to be simple and clear
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to read, making it simple for them to grasp and have quick access to questions. Surveyors
will visit eateries with substantial customer databases to speak with any diners. The
survey's participants are anonymous and freely elect to take part without receiving any
rewards. Once the survey respondents have finished answering the questions, the
questionnaires will then be collected. As not enough information was gathered offline,
online questionnaires were also given to many respondents via email and social media
sites. For local diners, the questionnaire was also translated into Vietnamese. The survey
results will be statistically and carefully selected to include in the analysis and then give
the most accurate conclusions for the research paper.
D. INDIVIDUAL WORK
I. Nguyễn Thu Ngân_10200643
Table 1: Demographic profile

Characteristics Frequency % of Total
Male 47 44.8
Gender
Female 58 55.2
Under 20 27 25.7
From 25 to 35 21 20.0
Age
From 36 to 50 28 26.7
Over 50 29 27.6
Income No income 21 20.0
Under 5 million
10 9.5
VND
From 5-10 million
17 16.2
VND
From 11-20 million 30 28.6
VND
22
Over 20 million VND 27 25.7
Frequency of Under 3 times 29 27.6
eating in From 3 to 5 times 29 27.6
restaurants per From 6 to 10 times 21 20.0
month Over 10 times 26 24.8
In the 105 survey samples collected, the proportion of women is higher with 58%
compared to 47% of men. People who performed my survey spread across all 4 age
groups: “Under 20” with 27 people, accounting for 25.7%, “From 25 to 35 years old”
with 21 people, accounting for 20%, “From 36 to 50” with 28 people, accounting for
26 .7% and “Over 50 years old” accounts for 29%. The percentage of people who
perform the sample mainly with an income of 11-20 million VND per month accounted
for 28.6%, while those with income less than 5 million VND per month only accounted
for 9.5%. However, those who have no income have a higher percentage of 10.5% of
those who earn less than 5 million a month. Besides, the majority of participants who did
this survey eating at restaurants "Under 3 times" and "from 3 to 5 times" per month are
the same, accounting for 27.6%. The number of people who go to the restaurant "from 6
to 10 times" is the least with 20%.
Table 1: Descriptive statistics and factor loadings for scale items

(n=107)
Constructs and the scale items Mean Corrected Cronbach’s
Item-Total Alpha if
Correlation Item
Deleted
SQ: Service Quality (Cronbach’s Alpha = 0.790)
SQ1: Staff members are friendly 3.63 0.641 0.704
23
SQ2: Staff members serve exactly and 3.60 0.623 0.723
quickly
SQ3: Staff members are very helpful 3.59 0.629 0.717
FQ: Food Quality (Cronbach’s Alpha = 0.858)
FQ1: The food smells good 3.43 0.669 0.834
FQ2: The food looks attractive 3.51 0.740 0.803
FQ3: The food is fresh 3.55 0.713 0.815
FQ4: The food is delicious 3.54 0.690 0.824
RE: Restaurant Environment (Cronbach’s Alpha = 0.801)
RE1: The Restaurant Environment is clean 3.45 0.615 0.795
RE2: The temperature in the restaurant is 3.52 0.614 0.796
comfortable
RE3: The design of the restaurant is 3.57 0.661 0.774
suitable and harmonize
RE4: The light and color of the restaurant 3.56 0.711 0.751
are comfortable
FP: Fair Price (Cronbach Alpha’s = 0.803)
FP1: The Price is reasonable and affordable 3.60 0.595 0.649
FP2: Based on Food, the Price is fair 3.47 0.590 0.654
FP3: Based on Service, the Price is fair 3.52 0.551 0.698
CL: Customer Loyalty (Cronbach’s Alpha
= 0.680)
CL1: I will continue to visit this restaurant 3.68 0.546 0.659
CL2: I will recommend this restaurant to 3.69 0.525 0.603
others
CL3: I will say positive things about this 3.70 0.557 0.514
restaurant to others
24
Cronbach's alpha is used to assess variable reliability and represents the high degree of
correlation between observed variables in the same component. A good and dependable
scale, according to Hair et al. (2009), should have a Cronbach's Alpha of 0.7 or above.
Furthermore, Corrected Item - Total Correlation is a significant metric. According to
Cristobal et al. (2007), a good scale has a Corrected Item - Total Correlation value of 0.3
or higher for the observed variables. This demonstrates a significant relationship between
each observed variable and the remaining variables on the scale. The index "Cronbach's
Alpha if Item Deleted" reflects the Cronbach's Alpha coefficient if the variable under
examination is the type of variable. These variable coefficients are all lower than the
Cronbach's Alpha value, indicating that they are not deemed to be eliminated from the
scale.
The factor “Service quality (SQ)” includes 3 observed variables from SQ1 to SQ3.
Cronbach's Alpha coefficient of 0.790 is higher than 0.7 and all observed variables have
the Corrected Item - Total Correlation correlation higher than 0.3. Thus, the scale is
reliable, and the observed variables have good explanatory properties for this factor.
The factor “Food Quality (FQ)” includes 4 observed variables from FQ1 to FQ4.
Cronbach's Alpha coefficient of 0.858 is higher than 0.7 and all observed variables have
the Corrected Item - Total Correlation correlation higher than 0.3. As a result, the scale is
reliable, the observed variables give satisfactory explanations for this factor
“Restaurent Environment (RE)” includes 4 observed variables from RE1 to RE4.

Cronbach's Alpha coefficient of 0.813 is higher than 0.801 and all observed variables
have the Corrected Item - Total Correlation correlation higher than 0.3. Therefore, the
scale is reliable, the observed variables all have a suitable explanation.
25
Factor “Fair Price (FP)” includes 3 observed variables from FP1 to FP4. Cronbach's
Alpha coefficient of 0.803 is higher than 0.7 and all observed variables have a Corrected
Item - Total Correlation correlation higher than 0.3. Therefore, the scale is reliable, the
observed variables have good explanatory properties for the factor Fair price .
However, Factor “Customer Loyalty (CL)” includes 3 observed variables from CL1 to
CL3. Cronbach's Alpha coefficient is 0.680, lower than 0.7 and all observed variables
have Corrected Item - Total Correlation correlation higher than 0.3. As a preliminary
exploratory study, the Cronbach's Alpha threshold of 0.6 is acceptable.
Therefore, all the scales in the study have high reliability and the variables have a
reasonable explanation.
Table 3: Validity test results

Construct and the scale items Component
1 2 3 4
SQ1 0.845
SQ2 0.830
SQ3 0.837
FQ1 0.805
FQ2 0.855
FQ3 0.847
FQ4 0.827
RE1 0.793
RE2 0.785
RE3 0.807
RE4 0.845
26
FP1 0.820
FP2 0.823
FP3 0.797
EFA is used to assess the scales utilized in this research. It is a statistical approach for
condensing large amounts of data into a smaller number of summary variables and
determining the structure of the connection between the variable and the responder. EFA
is used to investigate the connection between variables in various factors, determining
whether factors are heavily or weakly loaded. There are four independent factors in this
study: Service Quality (SQ), Food Quality (FQ), Restaurant Environment (RE), and Fair
Price (FP). The rotation matrix findings in Table 3 demonstrate that the 17 observed
variables are divided into four factors, that all observed variables have factor loading
coefficients larger than 0.5, and that there are no poor variables
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling .713
Adequacy.
Bartlett's Test of Approx. Chi-Square 535.191
Sphericity df 91
Sig. .000
The KMO coefficient (Kaiser-Meyer-Olkin) is an indicator used to assess the suitability

of factor analysis. Crane, Busby, and Larson (1991) state that for factor analysis to be
accepted and data analysis to be accurate, the KMO value must be more than 0.5. If
Bartlett's test has statistical significance (sig Bartlett's Test 0.05), it indicates that the
observed variables in the factor are connected with each other.
27
These tests were done in this research for all four independent variables, and the EFA of
all items yielded positive findings. In the first run, the KMO coefficient is 0.713 (> 0.5)
and the Bartlett's sig test is 0.000 (0.05), indicating that the EFA for the four independent
variables is suitable. As a result, the four independent variables' validity is assured.
Service quality, food quality, fair pricing, and restaurant environment are all significant
and of high quality for the research, according to the analysis findings.

Adequacy.
Sphericity df 3
Sig. .000
The KMO coefficient is 0.650 in the second run with the dependent variable (Customer
Loyalty), and the Bartlett test is statistically significant (0.05). Furthermore, the
components only exist in one factor, therefore the scale provides unidirectionality, and
the dependent variable's variables converge rather well.
Component
Matrixa
Componen
t
1
CL1 .741
CL2 .783
CL3 .830
28
Extraction
Method: Principal
Component
Analysis.
a. 1 components
extracted.
It is clear from looking at the "Component Matrix" table that all of the observed variables
belong to only one component. This component has factor loading coefficients that are
more than 0.5, and as a result, it may be interpreted as a directional scale of commitment
level.
Table 4: The pearson correlation matrix
SQ FQ RE FP Statistic
VIF
SQ Pearson 1.000 1.007
Correlation
FQ Pearson 0.032 1.000 1.031
Correlation
RE Pearson 0.031 0.106 1.000 1.012
Correlation
FP Pearson -0,068 0.113 0.009 1.000 1.023
Correlation
According to the findings of the table of Pearson Correlations, the correlation coefficient
between the four independent variables is less than 0.4 at the 5% significance level.
Because of this, the independent variables are considered to have either a very weak
association or no correlation at all. A measure of multicollinearity is referred to as the
Variance Inflation Factor (VIF). According to Hair et al. (2009), a VIF of 10 or more will
have significant multicollinearity, and the optimal value for the VIF coefficient should be
29
less than 2. There is no significant difference between any of the VIF coefficients of the
independent variables and the value 2. As a result, the concept of multicollinearity is not
disproved by the findings of this investigation.
Table 5: Regression model
Independent variable M1 β M2 β (Standardized)
(Standardized)
Gender 0.007
Age 0.053
Income -0.087
Frequency of eating 0.032
Service Quality (SQ) 0.190*
Food Quality (FQ) 0.497***
Restaurant Environment (RE) 0.402***
Fair Price (FP) 0.156**
R2 0.542 0.540
R2 change 0.542 0.540
Adjusted R2 0.504 0.522
F 14.216*** 29.360***
30
Note: p>0.05, *p<0.05, **p<0.01, ***p<0.001
Based on the Beta normalization coefficient, the order of influence from strongest to
weakest of the independent variables on the dependent variable Customer Loyalty (CL) is
Restaurent Environment (RE) (0.402) and Food Quality (FQ) (0.497).
From this, the normalized regression equation can be deduced:
CL = 0.402* RE + 0.497 * FQ
If RE increases by 1 unit without changing FQ, then CL increases 0.402 times.
If FQ increases by 1 unit and RE remains unchanged, then CL increases by 0.497 times.
Because the adjusted R Square index does not always rise when additional independent
variables are added to the regression, it more properly represents the model fit than the R
Square coefficient. The two models' modified R-square values are 0.504 and 0.522,
respectively. All R-square values are larger than 0.5, indicating that both models are
effective in explaining the relationship of customer loyalty on independent factors and
included independent variables. Regression analysis influences the variance of the
dependant variable by 50.4%. The remainder are caused by out-of-model variables and
random error.
According to the findings of two regression models, demographic parameters such as age,
gender, income, and frequency have little effect on customer loyalty. P values for all of
its independent variables are less than 0.05. As a result, all four hypotheses can be
accepted.
II. Nguyễn Thị Khánh Linh_10200316

Characteristics Frequency % of Total
Gender Male 56 54.9
Female 46 45.1
Age Under 20 20 19.6
31
20-35 28 27.5
36-50 25 24.5
Over 50 29 28.4
Income each No income 11 10.8
month Under 5 million 9 8.8
VND
5-10 million VND 24 23.5
11-20 million VND 43 42.2
Over 20 million 15 14.7
VND
How often do you Under 3 times 32 31.4
eat at a restaurant 3-5 times 42 41.2
each month? 6-10 times 19 18.6
Over 10 times 9 8.8
As a result of the 102 survey samples that I gathered, I found that the percentage of men
was higher at 54.9% compared to women who made up 45.1% of the sample. The
majority of people who participated in my survey fell into two age groups. The first
group was composed of individuals between the ages of 20 and 35, which accounted for
27.5% of the total participants with 28 people. The second group was made up of
individuals over the age of 50, which accounted for 28.4% of the total participants. Out of
the sample group, 42.2% of people who participated in the survey had an income range of
11-20 million VND per month. On the other hand, only 8.8% of people who participated
in the survey had an income less than 5 million VND per month. Additionally, 41.2% of
the participants who took the survey reported eating at restaurants 3 to 5 times per month.
32
Item-Total Alpha if
Correlation Item
Delected
quickly
RE1: The Restaurant Environment is 3.42 0.582 0.769
clean
RE2: The temperature in the restaurant 3.48 0.686 0.716
is comfortable
RE4: The light and color of the 3.43 0.571 0.773
restaurant are comfortable
FP: Fair Price (Cronbach’s Alpha = 0.768)
FP1: The Price is reasonable and 3.42 0.609 0.679
affordable
FP3: Based on Service, the Price is fair 3.59 0.607 0.686
CL: Customer Loyalty (Cronbach’s Alpha = 0.632)
33
CL1: I will continue to visit this 3.64 0.409 0.579
restaurant
CL2: I will recommend this restaurant 3.68 0.451 0.519
to others
CL3: I will say positive things about 3.68 0.464 0.502
this restaurant to others
Nunnally (1978) suggests that for a scale to be considered good, it should have a
Cronbach's Alpha reliability score of 0.7 or higher. According to Hair et al (2009), it is
recommended that a scale should have a Cronbach's Alpha threshold of 0.7 or higher to
ensure that it is reliable and measures in a consistent direction. The test results show that
Cronbach's Alpha of the scales including: Service Quality (SQ), Food Quality (FQ),
Restaurant Environment (RE), and Fair Price (FP) are all greater than 0.7, 0.796, 0.823,
respectively. 0.802, and 0.768. However, the Cronbach's Alpha coefficient of Customer
Loyalty (CL) is only 0.632 greater than 0.6. As a preliminary exploratory study, the
Cronbach's Alpha threshold of 0.6 is acceptable.
Another crucial factor to consider is the Corrected Item-Total Correlation. Cristobal et al
(2007) argue that a scale is considered good when the observed variables have a
Corrected Item - Total Correlation value of 0.3 or higher. Based on the data, it appears
that all variables have a "Corrected Item - Total Correlation" coefficient that is above 0.3.
The results indicate that there is a significant relationship between each variable that was
observed and the other variables on the scale.
The "Cronbach's Alpha if Item Deleted" index demonstrates the Cronbach's Alpha
coefficient for the specific variable type being analysed. We can observe that the
coefficients of the variables are all lower than the Cronbach's Alpha value. Therefore, we
cannot exclude them from the scale.
To sum up, the study indicates that all the scales used in the research are highly reliable
and the variables have a reasonable explanation.
34
1 2 3 4
SQ1 0.803
SQ2 0.839
SQ3 0.876
FQ1 0.778
FQ2 0.790
FQ3 0.840
FQ4 0.818
RE1 0.730
RE2 0.841
RE3 0.810
RE4 0.758
FP1 0.803
FP2 0.823
FP3 0.824
EFA, which stands for Exploratory Factor Analysis, is a statistical method that helps to
simplify complex data by identifying patterns and relationships among variables. It is
commonly used to uncover the underlying structure of a phenomenon and to create a
smaller set of summary variables that capture the most important information. This term
is utilized to establish the framework of the connection between the variable and the
respondent. When we perform an EFA, we're trying to understand how different variables
are related to each other across various factors. This helps us identify which factors have
strong or weak connections to the variables. Furthermore, in Exploratory Factor Analysis
(EFA), Factor Loading indicates the correlation between the observed variable and the
35
factor. Hair et al. (2010) suggest that for a variable to be considered appropriate, it should
have a factor loading of at least 0.5, and a minimum of 0.3.

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .719
Approx. Chi-Square 485.854
Bartlett's Test of Sphericity df 91
Sig. .000
The KMO coefficient, also known as Kaiser-Meyer-Olkin, is a measure that is commonly

used to determine whether factor analysis is appropriate or not. For factor analysis to be
appropriate, the KMO value needs to be at least 0.5. This is considered a sufficient
condition. When the statistical significance of Bartlett's test is less than 0.05 (sig Bartlett's
Test < 0.05), it indicates that there is a correlation between the observed variables in the
factor.
For this study, we carried out all three tests on each of the 4 independent variables. The
EFA analysis of all the items yielded positive outcomes. When analysing the four
independent variables of Service Quality, Food Quality, Restaurant Environment, and
Fair Price, we found that the KMO coefficient was 0.719 (> 0.5), which is greater than
the recommended threshold of 0.5. Additionally, the Bartlett sig test resulted in a value of
0.000 (< 0.05), which is less than the significance level of 0.05. These findings indicate
that the four independent variables are appropriate for conducting an exploratory factor
analysis (EFA). Thus, we can ensure the validity of the four independent variables. In the
second run of analysing the dependent variable, which is Customer Loyalty, the KMO
coefficient is 0.646 and the Bartlett test shows statistical significance with a value of less
than 0.05. In addition, it's worth noting that the factors only show up in one factor, which
means that the scale guarantees unidirectionality. Furthermore, the variables of the
dependent variable seem to converge quite effectively.
36
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .646
Bartlett's Test of Sphericity Approx. Chi-Square 36.164
df 3
Sig. .000
SQ FQ RE FP Statistic VIF
SQ Pearson Correlation 1.000 1.003
FQ Pearson Correlation -0.048 1.000 1.020
RE Pearson Correlation -0.009 0.057 1.000 1.052
FP Pearson Correlation 0.020 -0.131 -0.220* 1.000 1.067
*. Correlation is significant at the 0.05 level (2-tailed).
According to the Pearson Correlations results, it appears that the correlation coefficient
between the 4 independent variables is quite low, measuring less than 0.4 at a 5%
significance level. This suggests that the independent variables are either very weakly
correlated or not correlated at all. The Variance Inflation Factor (VIF) is a statistical
measure used to determine the presence and severity of multicollinearity in a dataset.
According to Hair et al. (2009), if the VIF is 10 or higher, it indicates a significant
presence of multicollinearity. Ideally, the VIF coefficient should be less than 2 for the
best results. All the independent variables have VIF coefficients that are less than 2.
Thus, the findings of this study do not contradict the hypothesis or theory of
multicollinearity.
37
Model 1 Model 2
Β (Standardized) Β (Standardized)
Age -0.156
Gender -0.067
Income 0.182
Frequency 0.077
Service Quality (SQ) 0.259** 0.269**
Food Quality (FQ) 0.381*** 0.362***
Restaurant Environment
0.331*** 0.341***
(RE)
Fair Price (FP) 0.428*** 0.421***
R2 0.425 0.402
Adjusted R2 0.375 0.377
F 8.580*** 16.277***
Note: p>0.05, *p<0.05, **p<0.01, ***p<0.001
As shown in the table above, there is evidence that both model 1 and model 2 have a
statistically significant relationship. Model 1 has a F value of 8,580 and Model 2 has a F
value of 16,277, both with a significance index of 0.000. Both M1 and M2 have R square
values of 37.5% and 37.7%, respectively. This indicates how well the model fits the data
and the significance of the factors. When the coefficient is above 25%, it indicates that
the linear regression model will fit the data quite well.
The findings of two regression models indicate that demographic factors such as age,
gender, income, and frequency have no impact on customer loyalty (p=.). All of its
independent variables have a P value that is less than 0.05. Therefore, it is possible to
accept all four hypotheses.
III. Nguyễn Trần Thanh Thanh _10200699
38
Characteristics Quantity % of
total
Gender Male 53 62.4
Female 32 37.6
Age Under 20 26 30.6
From 20 to 35 32 37.6
From 36 to 50 12 17.6
Over 50 15 14.1
Income No income 13 15.3
Under 5 million VND 16 18.8
From 5- 10 million VND 28 32.9
From 11- 20 million VND 17 20
Over 20 million VND 11 12.9
Frequency of restaurant meals Under 3 times 11 12.9
per month From 3 to 5 times 37 43.5
From 6 to 10 times 15 17.6
Over 10 times 11 12.9
Table 1: Demographic data
A total of 85 responses were used for this statistical analysis. All participants were
between the ages of 20 and over and 50 and went to the restaurant for meals every month.
In which, the proportion of men is 62.4% higher than that of women is 37.6%. The
participants answering the question mainly belong to the two age groups "Under 20" and
"Between 20 and 35", accounting for 30.6% and 37.6%, respectively. Those with income
"from 5 to 10 million VND" accounted for a relatively high proportion of 32.9% while
those with no income accounted for only 15.3%. Besides, the time that they dine at a
restaurant in a month "From 3 to 5 times" accounted for a fairly high rate of 43.5%.
39
Item-Total Alpha if
Correlation Item
Delected
quickly
RE1: The Restaurant Environment is 3.69 0.659 0.780
clean
RE2: The temperature in the 3.72 0.612 0.802
restaurant is comfortable
RE4: The light and color of the 3.53 0.712 0.756
restaurant are comfortable
FP1: The Price is reasonable and 3.71 0.508 0.676
affordable
FP3: Based on Service, the Price is 3.55 0.560 0.618
40
fair
CL1: I will recommend this restaurant 3.56 0.442 0.505
to others
CL2: I will say positive things about 3.49 0.468 0.518
this restaurant to others
Table 2: Cronbach's Alpha Reliability Test
Reliability Cronbach Alpha is a scale that helps us determine whether the observed
variables for a factor are suitable or not, in addition, it also indicates which variables
contribute to the measurement of the concept of a factor. which factors and which
variables are not. According to Nunnally (1978), a good scale should have Cronbach's
Alpha reliability of 0.7 or higher. Hair et al (2009) also suggested that a scale that ensures
unidirectionality and reliability should reach Cronbach's Alpha threshold of 0.7 or higher.
In general, the larger Cronbach's Alpha coefficient, the higher the reliability of the scale.
As can be seen, the test results of Cronback's Alpha coefficient of 4 scales including: SQ,
FQ, RE, FP are all greater than 0.7 and have indexes of 0.794, 0.744, 0.827, 0.722,
respectively. However, the Cronback's Alpha coefficient of the CL scale is only at the
threshold of 0.638. With an index less than 0.7 indicating this scale needs to be
reconsidered, however, as a preliminary exploratory study, the threshold of Cronback's
Alpha at 0.6 is acceptable.
Another important coefficient is Corrected Item - Total Correlation, this coefficient
helps the researcher to determine which observed variable has little contribution to the
scale and then consider removing the observed variable to increase the reliability for the
scale. Among these coefficient measurement thresholds, the threshold of 0.3 is most
commonly used and if the Corrected Item - Total Correlation index is less than 0.3, the
observed variable should be removed. According to the analysis results, the Correlation
Item - Total Correlation coefficients of all variables are above the threshold of 0.3. Such
41
a high index has shown a strong correlation between the independent variables and the
characteristics and properties of the dependent variable.
We also need to pay attention to the value of the column Cronbach's Alpha if Item
Deleted, this column represents the coefficient Cronbach's Alpha if the type of variable
under consideration. Although this is not a universal standard to assess the reliability of
the scale, however, if the Cronbach's Alpha if Item Deleted value is greater than the
group's Cronbach Alpha coefficient, we should consider considering the observed
variable. From the results of the table above, it can be seen that, these coefficients of the
variables are all lower than Cronback's Alpha coefficient, so they will not be excluded
from the scale.
In summary, all variables in the scale have high reliability and strong correlation.
Rotated Component Matrixa

Component
1 2 3
SQ1 .733
SQ2 .675
SQ3 .791
FQ1 .836
FQ2 .822
FQ3 .610
FQ4 .790
FP1 .771
FP2 .692
FP3 .763
RE1 .632
RE2 .670
RE3 .529
42
RE4 .632
Extraction Method: Principal
Component Analysis.
Rotation Method: Varimax with
Kaiser Normalization.
a. Rotation converged in 10
iterations.
Table 3: Rotated Component Matrix
EFA is a quantitative analysis method used to reduce a set of many interdependent

measures into a smaller set of variables so that they are more meaningful but still contain
most of the information content of the original set of variables. EFA analysis is based on
the relationship between measurement variables, so we need to consider the relationship
between these measures. Using rotated matrix we can see the degree of relationship
between variables. If the correlation coefficients are less than 0.3, then using EFA is not
appropriate. As can be seen, the results of the rotation matrix show that 14 observed
variables are classified into 3 component, all observed variables have factor loading
coefficients greater than 0.5 and there are no bad variables.

Adequacy.
Sphericity df 91
Sig. .000
Table 4: KMO and Bartlett's Test for independent variables
43
Adequacy.
Sphericity df 3
Sig. .000
Table 5: KMO and Bartlett's Test for dependent variable
KMO coefficient (Kaiser - Meyer - Olkin) is an index used to consider the relevance
of factor analysis. The value of KMO must reach a value of 0.5 ≤ KMO ≤ 1. The larger
this value is, the more suitable the factor analysis is for the research data set. Bartlett's
Test of Sphericity is used to examine the correlation between observed variables in the
factor. For Bartlett's test to be significant, the sig Bartlett's Test must < 0.05, shows that
there is a correlation between the observed variables.
In this study, all three of these tests were performed for all 4 independent variables,
the EFA of all items showed good results. In the first run for 4 independent variables
(Service Quality, Food Quality, Restaurant Environment, and Fair Price), the KMO
coefficient is 0.822 (> 0.5) and Bartlett's sig test is 0.000 (< 0.05), so the EFA gives 4
independent variables are suitable. Therefore, the validity for the four independent
variables is guaranteed. The second run for the dependent variable (Customer Loyalty),
the KMO coefficient is 0.719 and the Bartlett test is statistically significant (< 0.05).
Moreover, the factors only appear in one factor, so the scale ensures unidirectionality, the
variables of the dependent variable converge quite well.
Correlations
SQ_avg FQ_avg FP_avg RE_avg
44
SQ_av Pearson 1 .771** .753** .758**
g Correlation
Sig. (2-tailed) .000 .000 .000
N 85 85 85 85
FQ_av Pearson .771** 1 .872** .852**
g Correlation
Sig. (2-tailed) .000 .000 .000
N 85 85 85 85
FP_avg Pearson .753** .872** 1 .879**
Correlation
Sig. (2-tailed) .000 .000 .000
N 85 85 85 85
RE_av Pearson .758** .852** .879** 1
g Correlation
Sig. (2-tailed) .000 .000 .000
N 85 85 85 85
**. Correlation is significant at the 0.01 level (2-tailed).
Table 6: Correlation results
The above table shows data on the correlation of 4 variables: service quality, fair
price, restaurant environment, food quality. Besides, the Pearson correlation index in
statistics is defined as a measure of the statistical relationship between two variables and
their association with each other. Looking at the table, it can be seen that, the Pearson
correlation coefficient of restaurant environment and reasonable price shows the highest
correlation of about 0.879, which proves one thing, the restaurant has a beautiful,
luxurious space or is located in In prime locations, prices will be higher than other
restaurants. Meanwhile, the Correlation index between reasonable price and service
45
quality has the lowest correlation of about 0.753, showing that price will have little effect
on service quality at the restaurant. Besides, sig = 0.000 < 0.01 shows that all variables
are strongly correlated with each other. Moreover, the ** symbol shows that this pair of
variables has a linear correlation at the 99% confidence level. It can be seen that the pairs
of variables show high reliability and have a strong correlation.
Coefficientsa
Standardiz
ed
Unstandardized Coefficien Collinearity
Coefficients ts Statistics
Model B Std. Error Beta t Sig. Tolerance VIF
1 (Constant) 3.454 .468 7.376 .000
Age .000 .121 .000 -.003 .998 .785 1.274
Income .016 .108 .020 .150 .881 .726 1.378
Gender -.001 .236 -.001 -.005 .996 .973 1.028
Frequency .015 .112 .016 .134 .894 .899 1.113
2 (Constant) .016 .496 .033 .974
Age -.017 .081 -.018 -.208 .836 .769 1.301
Income .027 .073 .033 .373 .710 .703 1.423
Gender -.076 .161 -.036 -.471 .639 .941 1.062
Frequency .043 .079 .045 .546 .587 .810 1.235
SQ_avg -.149 .155 -.128 -.964 .338 .317 3.151
FQ_avg .576 .223 .446 2.584 .012 .188 5.330
FP_avg .108 .223 .090 .486 .629 .162 6.172
46
RE_avg .432 .208 .359 2.079 .041 .188 5.322
a. Dependent Variable: CL_avg
Table 7: Coefficients results
Based on Table 7, the factor of Food Quality has an influence on the dependent
variable of Customer Loyalty because Sig=0.012 < 0.05. Similarly, the relationship
between Restaurant Environment and Customer Loyalty is significant because Sig=0.041
< 0.05. Meanwhile, the two factors of Service Quality and Fair Price are not statistically
significant for the dependent variable of Customer Loyalty due to Sig higher than 0.05 is
0.338 and 0.629 respectively. In addition, based on the Beta normalization coefficient,
the order of influence from the strongest to the weakest of the independent variables on
the dependent variable Customer Loyalty respectively is Food Quality (0.446),
Restaurant Environment,(0.359), Fair Prices (0.090) and finally Service Quality (-0.128).
Customer Loyalty = 0.446* Food Quality + 0.359* Restaurant Environment
From the above equation, we can understand that, if the Food Quality increases by 1
unit while the Restaurant Environment remains constant, Customer Loyalty will increase
by 0.446 times. Besides, if the Restaurant Environment is enhanced by 1 unit while the
Food Quality remains the same, Customer Loyalty will be reduced by 0.359 times.
IV. Hoàng Thanh Trang _ 10200688

Characteristics Quantity % of
total
Gender Male 61 61
Female 39 39
Age Under 20 26 26
From 20 to 35 35 35
From 36 to 50 21 21
Over 50 18 18
47
Income No income 13 13
Under 5 million VND 19 19
Over 20 million VND 11 11
Frequency of restaurant meals per Under 3 times 37 37
month From 3 to 5 times 26 26
From 6 to 10 times 25 25
Over 10 times 12 12
The proportion of men in the 100 survey samples obtained is 61% compared to 39% for
women. Persons who completed my poll were mostly from two age groups: "From 20 to
35 years old," with 35 persons accounting for 35%, and "Under 20 years old," with 26%.
The percentage of sample takers with an income of 5-10 million VND per month was
36%, while those with an income of more than 20 million VND per month were 11%.
Furthermore, approximately 37% of those who completed this study ate at restaurants
less than three times per month.
Item- Total Alpha if Item
Correlation Deleted
quickly
48
RE: Restaurant Environment (Cronbach’s Alpha = 786)
RE1: The restaurant environment is clean 3.66 0.606 0.728
RE2: The temperature in the restaurant is 3.63 0.549 0.756
comfortable
RE3: The design of the restaurant is suitable 3.49 0.607 0.729
and harmonize
RE4: The light and color of the restaurant 3.52 0.616 0.722
are comfortable
FP1: The price is reasonable and affordable 3.67 0.477 0.609
FP2: Based on food, the price is fair 3.52 0.521 0.552
FP3: Based on service, the price is fair 3.38 0.486 0.598
CL1: I will recommend this restaurant to 3.59 0.459 0.502
others
CL2: I will say positive things about this 3.52 0.459 0.519
According to Connelly (2011), an acceptable level of confidence is indicated by a

cronbach alpha coefficient in the range of 0.6-0.7.
Cronbach's Alpha of the scales Service Quality (SQ), Food Quality (FQ), Restaurant
Environment (RE), and Fair Price (FP) are all greater than 0.6, 0.762, and 0.713,
respectively, according to the test findings. 0.786, 0.681 and 0.629.
Curreton (1966) defines a decent scale as having a Corrected Item - Total Correlation
value of 0.3 or above for the observed variables. The "Corrected Item - Total Correlation"
coefficient of all variables is greater than 0.3, according to the data. This demonstrates a
49
strong relationship between each observed variable and the remaining variables on the
scale.
The index "Cronbach's Alpha if Item Deleted" represents the Cronbach's Alpha
coefficient if the variable under examination is the type of variable. These variable
coefficients are all lower than the Cronbach's Alpha value, indicating that they are not
deemed to be eliminated from the scale.
In conclusion, all of the scales in the study are very reliable, and the variables have a
plausible explanation.

1 2 3 4
SQ1 0.695
SQ2 0.490
SQ3 0.330
FQ1 0.803
FQ2 0.830
FQ3 0.601
FQ4 0.748
RE1 0.601
RE2 0.552
RE3 0.379
RE4 0.690
FP1 0.751
FP2 0.554
FP3 0.721
EFA is a statistical approach for condensing data into a smaller set of summary variables
and investigating the underlying theoretical structure of a phenomena. It is used to define
50
the structure of the variable's relationship with the respondent. EFA is used to investigate
the relationship between variables in various factors, determining whether factors are
heavily or weakly loaded. Furthermore, Factor Loading in EFA displays the correlation
link between the observed variable and the factor. A factor loading factor of at least 0.5
indicates a good variable and must be at least 0.3, according to Hair et al. (2010).
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.882
Approx. Chi-Square 797.849
Bartlett's Test of Sphericity df 91
Sig. 0.000
The KMO coefficient (Kaiser-Meyer-Olkin) is an index used to assess the suitability of

factor analysis. The value of KMO must be 0.5 or more, which is a necessary condition
for factor analysis to be suitable. If Bartlett's test has statistical significance (sig Bartlett's
Test 0.05), it indicates that the observed variables in the factor are connected with each
other.
All three of these tests were done in this study for all four independent variables, and the
EFA of all items yielded positive results. The KMO coefficient is 0.882 (> 0.5) and the
Bartlett's sig test is 0.000 (0.05) in the first run for four independent variables (Service
Quality, Food Quality, Restaurant Environment, and Fair Price), indicating that the EFA
gives four independent variables that are appropriate. Therefore, the validity for the four
independent variables is guaranteed.
SQ FQ RE FP Statistic VIF
SQ Pearson Correlation 1.000 1.212
FQ Pearson Correlation -0.044 1.000 1.007
51
RE Pearson Correlation 0.017 0.015 1.000 1.239
FP Pearson Correlation 0.042 -0.004 -0.037 1.000 1.111
*. Correlation is significant at the 0.05 level (2-tailed).

Pearson Correlation data show that the correlation coefficient between the four
independent variables is less than 0.4 at the 5% significance level, indicating that the
independent variables have very weak or no association. The Variance Inflation Factor
(VIF) is a multicollinearity metric. According to Hair et al. (2009), a VIF of 10 or more
will have severe multicollinearity, and the optimal VIF coefficient should be less than 2.
The independent variables' VIF coefficients are all smaller than 2. As a result, the
findings of this study do not contradict the idea of multicollinearity.
M1 Model 2
Β (Standardized) Β (Standardized)
Age 0.112
Gender -0.094
Income -0.046
Frequency -0.036
Service Quality (SQ) 0.167
Food Quality (FQ) 0.104
0.061
(RE)
Fair Price (FP) 0.302
R2 0.013 0.039
Adjusted R2 0.028 0.045
F 0.317 0.464
52
Based on the Beta normalization coefficient, the order of influence from the strongest to
the weakest of the independent variables on the dependent variable CL (Customer
loyalty) is SQ (Service quality) (0.167) and FP (Fair Price) (0.302).
CL = 0.167* SQ + 0.302 * FP
If SQ increases by 1 unit while FP stays the same, CL will increase 0.167 times.
If FP increases by 1 unit while SQ stays the same, CL will increase by 0.302 times.
In addition, the results of the F-test to evaluate the hypothesis fit of the regression model.
The sig value of the F test is 0.000 < 0.05, so the regression model is suitable.
As shown in the table above, there is evidence that both model 1 and model 2 have a
statistically significant relationship. Model 1 has a F value of 0.317 and Model 2 has a F
value of 0.464, both with a significant index of 0.000.
The findings of two regression models indicate that demographic factors such as age,
gender, income, and frequency have no impact on customer loyalty. All of its
independent variables have a B value that is less than 0.05. Therefore, it is impossible to
accept all four hypothesis
The adjusted R Square index does not necessarily increase as more independent variables
are added to the regression, so the adjusted R Square reflects the model fit more
accurately than the R Square coefficient. The above table shows that the Adjusted R
Square value is equal to 0.028 and 0.045, showing that the independent variables
included in the regression analysis affect 2.8% to the variation of the dependent variable,
the rest is due to the variables outside the model and random error.
V. Phan Hải Yến_10200031
Characteristic Frequency Valid percent

(%)
Gender Male 52 43%
53
Female 69 57%
Age Less than 20 years 10 8,3%
From 20 to 35 years 79 65,3%
From 36 to 50 years 27 22,3%
50 years and above 5 4,1%
Income No income 6 5%
Less than 5 million VND 19 15,7%
5-10 million VND 49 40,5%
11-12 million VND 39 32,2%
Above 20 million VND 8 6,6%
Frequency of Less than 3 times 12 9,9%

eating at
3 - 5 times 39 32,2%
restaurants
(Monthly) 6 - 10 times 49 40,5%
More than 10 times 21 17,6%
Table 1: Demographic table
The table above presents the demographic information trends of 121 survey respondents
in Hanoi. It is evident that the number of women participating in the survey (57%) is
greater than that of men (43%). However, this ratio does not differ significantly, resulting
in a relatively balanced gender representation. Furthermore, the majority of survey
participants fall within the age range of 20 to 35, comprising 79 responses. The second-
largest age group consists of respondents between the ages of 36 and 50, with 27
54
responses. Additionally, there were 10 individuals below the age of 20 and 5 individuals
aged 50 and above who participated in the survey. Regarding income, the largest
proportion of participants (40.5%) reported an income between 5 and 10 million VND.
Following that, 32.2% of respondents fell within the income range of 11-12 million
VND. The percentage of individuals with an income exceeding 20 million VND and
those with no income accounted for only 6.6% and 5%, respectively. Participants with an
income below 5 million VND represented 15.7% of the total respondents. The majority
of participants, comprising 40.5%, reported a frequency of dining at restaurants between
6 and 10 times per month. A smaller percentage, 9.9% of survey respondents, indicated
that they ate out less than 3 times within the same timeframe. The frequency of dining out
3 to 5 times per month was reported by 32,2% of participants, while 17,6% stated they
dined out more than 10 times monthly.
The data analysis for this research will be conducted using IBM SPSS 26.0 software. It
will facilitate research and accelerate the analysis of data. Calculate the convergent,
discriminant value between the properties of the scale and its reliability using Cronbach's
Alpha and EFA measurement studies.
Construct and the scale items Code Mean Std. Dev Corrected
Cronbach's
Item – Total
Alpha if Item
Correlation
Deleted
Service Quality (alpha = .836)
Staff members are friendly. SQ1 3.48 .914 .712 .762
Staff members serve exactly SQ2 3.56 .805 .693 .779
55
and quickly.
Staff members are very helpful. SQ3 3.50 .828 .695 .776
Food Quality (alpha = .864)
The food smells good. FQ1 3.63 .709 .843 .771
The food looks attractive. FQ2 3.60 .724 .496 .909
The food is fresh. FQ3 3.60 .713 .727 .820
The food is delicious. FQ4 3.60 .737 .806 .786
Restaurant Environment (alpha = .869)
The restaurant environment is RE1 3.65 .761 .866 .771

clean.
The temperature in the RE2 3.51 .765 .576 .890

restaurant is comfortable.
The design of the restaurant is RE3 3.49 .708 .594 .880

suitable and harmonize.
The light and color of the RE4 3.65 .761 .874 .768
restaurant are comfortable.
Fair Price (alpha = .820)
The price is reasonable and FP1 3.56 .805 .685 .743

affordable.
Based on food, the price is fair. FP2 3.42 .911 .694 .734
56
Based on service, the price is FP3 3.49 .818 .649 .777
fair.
Customer Loyalty (alpha = .772)
I will continue to visit this CL1 3.71 .898 .587 .715

restaurant.
I will recommend this CL2 3.86 .840 .671 .628

restaurant to others.
I will say positive things about CL3 3.53 .923 .569 .738
this restaurant to others.
To be considered credible, the Cronbach Alpha index must be at least 0.6. For each scale,
the Cronbach alpha was determined; it ranged from 0.772 (for customer loyalty) to.869
(for Restaurant environment). These findings showed a reliable degree of dependability,
with coefficient alphas above .60 (Hair et al., 1998). Each of the 17 observed variables
has a Corrected Item - Total Correlation of above 0.5, meaning that nothing will be
removed from consideration.
Component
1 2 3 4
SQ1 .870
SQ2 .869
SQ3 .854
FQ1 .923
57
FQ2 .657
FQ3 .862
FQ4 .923
FP1 .864
FP2 .866
FP3 .839
RE1 .954
RE2 .688
RE3 .748
RE4 .954
KMO index .665
Sig. .000
CL1 .819
CL2 .868
CL3 .804
KMO index .665
Sig. .000
The higher the KMO value in factor analysis, the greater the sample size should be. In
particular, we have a KMO criterion of 0.5 ≤ KMO ≤ 1. Likewise, Bartlett's test is used to
check the null hypothesis of no correlation between the variables in the context of the
entire statistical study (Anastasiadou, 2011). If the test results are statistically significant,
then the population's observable variables are correlated (sig. 0.05). KMO coefficients for
the independent and dependent variables used in this research were 0.665 and 0.683,
58
correspondingly, and Bartlett's tests had a significance level of 0.000. This suggests that
factor analysis is consistent with the results.
Independent variable M1 β (standardized) M2 β (standardized)

Age -.033
Gender -.048
Income .395*** .395***
Frequency .089 .086

Service Quality (SQ) .258*** .249***
Food Quality (FQ)

(RE)
Fair Price (FP) .386 .382
R change .386 .382

2
Adjusted R2 .370 .373

F 24.986*** 41.497***
Note: p>0.05, **p<0.01, ***p<0.001
E. CONCLUSION
After two years of combating the COVID-19 epidemic, the worldwide economy has been
badly impacted, with the catering business - the restaurant industry - bearing the brunt of
the damage. Small and medium-sized restaurants, as well as big ones, must shut in
Vietnam because they cannot cover operating expenses without a source of income. As a
result, after the epidemic is ended, it is critical to resuscitate the economy, reestablish
everyday activities, and persuade inhabitants to return and utilize the restaurant's services.
59
As a result, 100 customers who live and usually have lunch or dinner in restaurants in Hai
Ba Trung district were examined as part of the study "The influences of service quality,
food quality, price, and restaurant environment on customer loyalty in Hanoi restaurants
in context" of business recovery post-Covid -19" to generate key findings about four
important factors affecting customer loyalty in Hanoi. As a result, restaurant operators
must recognize the significance of these characteristics to re-engage current consumers
and attract new ones. In conclusion, the study findings may be utilized to assist and
rebuild restaurants in Hanoi, Vietnam as they recover from the difficult COVID-19 time.
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G. APPENDIX
Hello, we are a group of students from the IBD, National Economics University. We are
currently conducting a survey on (Effect of Service Quality, Reasonable Price, Food
Quality, and Restaurant Environment on Customer Loyalty at Hanoi restaurants during
the recovery period) business after Covid-19).
Everyone's answers will be a great source of information that contributes to the
achievement of the research goal. Information in the survey will be kept confidential,
anonymous, and used for research purposes only. Sincere thanks to the research team!
a. Demographic questions
1/ What is your age?
< 20
20 - 35
36 - 50
> 50
2/ What is your gender?

Female
Male
3/ Which of the following is your monthly income?

Do not have
< 5 million VND
5 - 10 million VND
11 - 20 million VND
66
> 20 million dong
4/ How often do you eat at a restaurant every month?

< 3 times
3 - 5 times
6 - 10 times
> 10 times
b. Questionnaire
Please indicate your level of agreement with the factors mentioned below, in order from 1
to 5 with increasing satisfaction
(1 = Strongly disagree, 2 = Disagree, 3 = Normal, 4 = Agree, 5 = Strongly Agree)
Independent Variables Rating in order from 1 to 5 with

increasing satisfaction
1 2 3 4 5
Service Quality
Staff members are friendly
Staff members serve exactly and
quickly
Staff members are very helpful
Food Quality
The food smells good
The food looks attractive
The food is fresh
The food is delicious
The Restaurant Environment is clean
67
The temperature in the restaurant is
comfortable
The design of the restaurant is suitable
and harmonize
The light and color of the restaurant are
comfortable
Fair Price
The Price is reasonable and affordable
Based on Food, the Price is fair
Based on Service, the Price is fair
Dependent Variable
Customer Loyalty
I will continue to visit this restaurant
I will recommend this restaurant to
others
I will say positive things about this
Thank you for your reading!
68

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Group 31 RP Final Report For Presentattion

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1

TOPIC: THE INFLUENCES OF SERVICE QUALITY, FOOD QUALITY, PRICE,

Teachers/Lecturers: Nguyen Vu Hung

Nguyen Thi Tuyet Mai

Research Coach: Nguyen Thi Hong Van

Group member: Nguyễn Thu Ngân – 10200643

Nguyễn Thị Khánh Linh - 10200316

Nguyễn Trần Thanh Thanh - 10200699

Phan Hải Yến - 10200031

Hoàng Thanh Trang - 10200688

II. Research problem:................................................................................................5

III. Research gap:.....................................................................................................5

IV. Research objective:............................................................................................6

VI. Research scope:..................................................................................................6

B. LITERATURE REVIEW & FRAMEWORK............................................................7

II. Factors that affect customer loyalty:...................................................................8

III. Models Approach:...........................................................................................10

IV. Conceptual framework:..................................................................................14

II. Measurement and Questionnaire Development................................................17

Table 4: Measures of Service quality, Food Quality, Reasonable price, Restaurant

III. Sample and Data Collection:..........................................................................19

I. Nguyễn Thu Ngân_10200643..............................................................................20

II. Nguyễn Thị Khánh Linh_10200316...................................................................30

III. Nguyễn Trần Thanh Thanh _10200699.........................................................37

V. Phan Hải Yến_10200031.....................................................................................52

II. Research problem:

III. Research gap:

IV. Research objective:

VI. Research scope:

II. Factors that affect customer loyalty:

III. Models Approach:

Figure 1: Ali, Alam, Bilal's model

Figure 2: Rajput & Gahfoor's model

Figure 3: Khanh Giao's model

IV. Conceptual framework:

1. The relationship between service quality and customer loyalty:

2. The relationship between food quality and customer loyalty.

4. The relationship between a fair price and customer loyalty:

II. Measurement and Questionnaire Development

Table 4: Measures of Service quality, Food Quality, Reasonable price, Restaurant

Đánh giá của bạn về Reference

The food is delicious Đồ ăn ngon, chất lượng

III. Sample and Data Collection:

Table 1: Demographic profile

Table 1: Descriptive statistics and factor loadings for scale items

“Restaurent Environment (RE)” includes 4 observed variables from RE1 to RE4.

Table 3: Validity test results

The KMO coefficient (Kaiser-Meyer-Olkin) is an indicator used to assess the suitability

KMO and Bartlett's Test

Frequency of eating 0.032

Service Quality (SQ) 0.190*

Food Quality (FQ) 0.497***

Restaurant Environment (RE) 0.402***

Fair Price (FP) 0.156**

R2 change 0.542 0.540

Adjusted R2 0.504 0.522

II. Nguyễn Thị Khánh Linh_10200316

Note: p>0.05, p<0.01, *p<0.001