SERVICE QUALITY AND CUSTOMER SATISFACTION ...

SERVICE QUALITY AND CUSTOMER SATISFACTION: 

ANTECEDENTS OF CUSTOMER’S RE-PATRONAGE 

INTENTIONS 

YAP SHEAU FEN a 

KEW MEI LIAN 

KDU College 

ABSTRACT 

This study was designed to examine the relationship between service quality, customer satisfaction and 

customer’s re-patronage intentions in the context of the restaurant industry. The respondents were 377 restaurant 

patrons who completed the self-administered questionnaire. Pearson Correlation analysis indicated that service 

quality and customer satisfaction had a direct positive effect on customer’s re-patronage intentions. Multiple 

Linear Regression highlighted customer satisfaction as a stronger predictor of re-patronage intentions compared 

to service quality. Possible interpretations, limitations, and implications for marketing professionals are 

discussed. 

Key words: Service Quality, Customer Satisfaction, Re-patronage Intentions, Restaurant 

INTRODUCTION 

In today’s fast-paced and increasingly competitive market, the bottom line of a firm’s 

marketing strategies and tactics is to make profits and contribute to the growth of the 

company. Customer satisfaction, quality and retention are global issues that affect all 

organizations, be it large or small, profit or non-profit, global or local. Many companies are 

interested in studying, evaluating and implementing marketing strategies that aim at 

improving customer retention and maximizing share of customers in view of the beneficial 

effects on the financial performance for the firm. There has been a strong advocacy for the 

adoption of customer retention as one of the key performance indicators (e.g. Kaplan and 

Norton, 2001). For instance, a study by Reichheld and Sasser (1990) reported a high 

correlation between customer retention and profitability in a range of industries. However, 

the fragmentation of media choices and the dynamic nature of the market, coupled with an 

increased number of more demanding and affluent consumers, brought greater challenges to 

marketing practitioners in retaining their customers. 

Quality and customer satisfaction have long been recognized as playing a crucial role for 

success and survival in today’s competitive market. Not surprisingly, considerable research 

has been conducted on these two concepts. Notably, the quality and satisfaction concepts 

have been linked to customer behavioural intentions like purchase and loyalty intention, 

Email: a crystalyap@kdu.edu.my

Sunway Academic Journal 4 60 

willingness to spread positive word of mouth, referral, and complaint intention by many 

researchers (Olsen, 2002; Kang, Nobuyuki and Herbert, 2004; Söderlund and Öhman, 2005). 

The most commonly found studies were related to the ‘antecedents, moderating, mediating 

and behavioral consequences’ relationships among these variables – customer satisfaction, 

service quality, perceived value and behavioral intentions. However, there have been mixed 

results produced. 

As many industry sectors mature, competitive advantage through high quality service is an 

increasingly important weapon in business survival. The restaurant industry has certainly 

not been exempted from increased competition or rising consumer expectations of quality. 

In Malaysia, the restaurant industry is undergoing a dramatic transformation and 

experiencing heightened competition. Restaurant is an important but often neglected area of 

study (Kivela, Inbakaran and Reece, 1999a). The fact is that ‘restaurant business’ is 

regarded as a low credence service and the quality of the services are difficult to prove until 

customers patronise the restaurant. Moreover, the quality of the service that customers 

encounter may be different each time they re-visit that particular restaurant, thus influencing 

the level of satisfaction and eventually affecting their re-patronage intentions. Given these 

important issues that need to be addressed, the main purpose of this study was to examine 

the factors that affect customers’ repatronage intentions in the restaurant context. 

Specifically, this paper aims to examine the nature and strength of relationships between 

customer satisfaction, service quality and customer’s repatronage intentions. The predictive 

ability of satisfaction and service quality on repatronage intention will also be analyzed. 

CUSTOMER SATISFACTION AND SERVICE QUALITY 

The interest in studying satisfaction and service quality as the antecedents of customer 

behavioural intentions in this paper has been stimulated, firstly, by the recognition that 

customer satisfaction does not, on its own, produce customer lifetime value (Appiah-Adu, 

1999). Secondly, satisfaction and quality are closely linked to market share and customer 

retention (Fornell, 1992; Rust and Zahorik, 1993; Patterson and Spreng, 1997). There are 

overwhelming arguments that it is more expensive to win new customers than to keep 

existing ones (Ennew and Binks, 1996; Hormozi and Giles, 2004). This is in line with 

Athanassopoulos, Gounaris and Stathakopoulos’s (2001) arguments that customer 

replacement costs, like advertising, promotion and sales expenses, are high and it takes time 

for new customers to become profitable. And lastly, the increase of retention rate implied 

greater positive word of mouth (Appiah-Adu, 1999), decrease price sensitivity and future 

transaction costs (Reichheld and Sasser, 1990) and, finally, leading to better business 

performance (Fornell, 1992; Ennew and Binks, 1996; Bolton, 1998; Ryals, 2003). 

From the literature that has been reviewed so far, customer satisfaction seems to be the 

subject of considerable interest by both marketing practitioners and academics since 1970s 

(Churchill and Surprenant, 1982; Jones and Suh, 2000). Companies and researchers first 

tried to measure customer satisfaction in the early 1970s, on the theory that increasing it 

would help them prosper (Coyles and Gokey, 2002). Throughout the 1980s, researchers 

relied on customer satisfaction and quality ratings obtained from surveys for performance

61 Sunway Academic Journal 4 

monitoring, compensation as well as resource allocation (Bolton, 1998) and began to 

examine further the determinants of customer satisfaction (Swan and Trawick, 1981; 

Churchill and Surprenant, 1982; Bearden and Teel, 1983). In the 1990s, however, 

organizations and researchers have become increasingly concerned about the financial 

implications of their customer satisfaction (Rust and Zahorik, 1993; Bolton, 1998). 

While satisfaction has been examined by many researchers in different industries (Fornell, 

1992; Anderson and Sullivan, 1993; Bolton, 1998; Caruana, 2002; Ranaweera and Prabhu, 

2003), service quality is also likely to influence consumer behavioural intentions (Bitner, 

1990; Cronin and Taylor, 1992, 1994; Choi et al., 2004). Cronin, Brady and Hult (2000) 

stated that examining only one variable at a time may confound the understanding of 

consumer decision-making and this may lead to inappropriate marketing strategies. This 

view is supported by Caruana (2002) and it is crucial to study the effect of other constructs 

such as quality on behavioural intentions in addition to customer satisfaction. Hence, this 

study incorporated service quality into the model in examining customer’s repatronage 

intentions in the restaurant context. 

Definition of Service Quality, Customer Satisfaction and Repatronage Intention 

There are many researchers who have defined service quality in different ways. For instance, 

Bitner, Booms and Mohr (1994, p. 97) define service quality as ‘the consumer’s overall 

impression of the relative inferiority / superiority of the organisation and its services’. While 

other researchers (e.g. Cronin and Taylor, 1994; Taylor and Cronin, 1994) view service 

quality as a form of attitude representing a long-run overall evaluation, Parasuraman, 

Zeithaml and Berry (1985, p. 48) defined service quality as ‘a function of the differences 

between expectation and performance along the quality dimensions’. This has appeared to 

be consistent with Roest and Pieters’ (1997) definition that service quality is a relativistic 

and cognitive discrepancy between experience-based norms and performances concerning 

service benefits. 

Many researchers (Oliver, 1981; Brady and Robertson, 2001; Lovelock, Patterson and 

Walker, 2001) conceptualize customer satisfaction as an individual’s feeling of pleasure or 

disappointment resulting from comparing a product’s perceived performance (or outcome) 

in relation to his or her expectations. Generally, there are two general conceptualisations of 

satisfaction, namely, transaction-specific satisfaction and cumulative satisfaction (Boulding 

et al., 1993; Jones and Suh, 2000; Yi and La, 2004). Transaction-specific satisfaction is a 

customer’s evaluation of his or her experience and reactions to a particular service encounter 

(Cronin and Taylor, 1992; Boshoff and Gray, 2004), and cumulative satisfaction refers to 

the customer’s overall evaluation of the consumption experience to date (Johnson, Anderson 

and Fornell, 1995). 

Intentions are subjective judgements about how a person will behave in the future and 

usually serves as dependent variables in many service research and satisfaction models 

(Boulding et al., 1993; Soderlund and Ohman, 2003). Rust, Zahorik and Keiningham (1995) 

argues that repurchase intentions and actual repurchase patterns are not necessarily the same.


Butcher (2005) agreed that repurchase intention is regarded as a sound service outcome that 

is measurable. While Soderlund and Ohman (2003) consider repurchase intentions as 

intentions-as-expectations, Hellier et al. (2003, p. 1764) defined repurchase intention as ‘the 

individual’s judgement about buying again a designated service from the same company, 

taking into account his or her current situation and likely circumstances’. 

The Distinction between Service Quality and Customer Satisfaction 

A review of the emerging literature suggests that there appears to be relative consensus 

among marketing researchers that service quality and customer satisfaction are separate 

constructs which is unique and share a close relationship (Cronin and Taylor, 1992; Oliver, 

1993). Most researchers in the services field have maintained that these constructs are 

distinct (Bitner, 1990; Carman, 1990; Boulding et al., 1993; Spreng and Mackoy, 1996). 

Table 1 identifies a number of key elements that distinguish customer satisfaction from 

service quality. 

Table 1. The Distinction between Customer Satisfaction and Service Quality 

Customer Satisfaction 

Customer satisfaction can result from any 

dimension, whether or not it is quality 

related. 

Customer satisfaction judgements can be 

formed by a large number of non-quality 

issues, such as needs, equity, perceptions of 

fairness. 

Customer satisfaction is believed to have 

more conceptual antecedents. 

Satisfaction judgements do require 

experience with the service or provider. 

Service Quality 

The dimensions underlying quality 

judgements are rather specific. 

Expectations for quality are based on ideals 

or perceptions of excellence. 

Service quality has less conceptual 

antecedents. 

Quality perceptions do not require 

experience with the service or provider. 

Source: Adapted from various sources (Taylor, 1993; Oliver, 1993; Rust and Oliver, 1994; Spreng and Mackoy, 

1996; Choi et al., 2004; Grace and O’Cass, 2005) 

CONCEPTUAL FRAMEWORK 

The present paper developed a conceptual framework (see Figure 1), which aims to examine 

the predictive ability as well as the nature and strength of relationship between service 

quality, customer satisfaction and re-patronage intentions. All constructs were 

conceptualised to fit better into the current study setting. Based on the original view of 

Parasuraman, Zeithaml and Berry (1985), service quality was conceptualised as a function 

for the differences between expectation and performance along with restaurant attributes 

such as food quality, service transaction, environment, convenience issues, and its overall 

images. Next, customer satisfaction has been conceptualized in this study as the patrons’


cumulative post-purchase affective evaluation based on the most recent services 

consumption experience at the restaurant. Lastly, the repatronage intention construct has 

been conceptualized as a customer’s likelihood of revisiting the restaurant during the 

coming month by adopting the definition of Hellier et al. (2003). 

Service Quality 

Customer 

Satisfaction 

Figure 1. The Conceptual Framework of the Study 

Source: Cronin, J. J., Brady, M. K., and Hult, G. (2000). Assessing the Effects of Quality, Value, and Customer 

Satisfaction on Consumer Behavioral Intentions in Service Environments. Journal of Retailing, 76(2), 193-218. 

The Direct Effect of Service Quality on Repatronage Intentions 

Substantial empirical and theoretical evidence in the literature suggests that there is a direct 

link between service quality and behavioural intentions (Bitner, 1990; Bolton and Drew, 

1991a). Among the various behavioural intentions, considerable emphasis has been placed 

on the impact of service quality in determining repeat purchase and customer loyalty (Jones 

and Farquhar, 2003). As pointed out by Bolton (1998), service quality influences a 

customer’s subsequent behaviour, intentions and preferences. When a customer chooses a 

provider that provides service quality that meets or exceeds his or her expectations, he or 

she is more likely to choose the same provider again. Besides, Cronin and Taylor (1994) 

also found that service quality has a significant effect on repurchase intentions. Other 

studies which support that repurchase intentions are positively influenced by service quality 

include Zeithaml, Berry and Parasuraman (1996), Cronin and Taylor (1992, 1994), Cronin, 

Brady and Hult (2000), and Choi et al. (2004). Hence, it was hypothesized that: 

H1: Service quality is positively related to re-patronage intentions. 

The Direct Effect of Customer Satisfaction on Repatronage Intentions 

Re-patronage 

Intentions 

A wide variety of studies has been done to support the link between customer satisfaction 

and behavioural intentions (Fornell, 1992; Rust and Zahorik, 1993; Taylor and Baker, 1994; 

Patterson and Spreng, 1997). Bearden and Teel (1983, p. 21) argue that ‘customer


satisfaction is important to the marketer because it is generally assumed to be a significant 

determinant of repeat sales, positive word of mouth, and customer loyalty’. Similarly, 

Anderson and Sullivan (1993) have also argued that the more satisfied the customers are, the 

greater is their retention. This view is also supported by Ranaweera and Prabhu (2003) study 

that the effects of customer satisfaction on customer retention are found to be significant and 

positive. Specifically, the levels of customer satisfaction will influence the level of 

repurchase intentions and this is supported by past research in a wide variety of studies 

(Rust and Zahorik, 1993; Taylor and Baker, 1994; Patterson and Spreng, 1997; Bolton, 1998; 

Hellier et al., 2003). On the basis of the above, it was then hypothesized that: 

H2: Customer satisfaction is positively related to re-patronage intentions. 

The Relative Importance of Service Quality and Customer Satisfaction for the Prediction 

of Customer Repatronage Intentions 

Both service quality and customer satisfaction have been widely recognised as antecedents 

of repurchase intentions. However, it is believed that restaurant owners would like to know 

which of these variables exerts the strongest influence on re-patronage intentions. A recent 

study reveals that customer satisfaction is a better predictor of intentions to repurchase than 

service quality (Ravald and Gronroos, 1996). Evidence is provided by Cronin and Taylor 

(1992) who found a much stronger relationship between customer satisfaction and 

repurchase intentions than the relationship between service quality and repurchase intentions. 

Academically, from a practitioner’s point of view, customer satisfaction is deemed to be 

more influential on repurchase intentions (Dabholkar, 1995). Parasuraman, Zeithaml and 

Berry (1994) also revealed in their analyses that customer satisfaction is likely to achieve a 

greater level of statistical significance when both service quality and customer satisfaction 

have a significant effect on repurchase intentions. 

METHOD 

Participants 

H3: Customer satisfaction will be a stronger predictor of customer’s repatronage 

intention than service quality. 

There are three major categories of restaurants in Malaysia (1) family restaurant, (2) fast 

food outlets and (3) fine dining. Malaysia is, perhaps, not particularly known for its fine 

dining scene and research has been conducted on fast food restaurant. Hence, this paper 

focused only on the family restaurant as there is a lack of studies carried out in this context 

in Malaysia. The sampling unit in this study was FUSION, a Chinese cuisine family 

restaurant situated in Klang Valley, Malaysia, which serves HALAL food. A sample size of 

420 was targeted and the subjects are patrons who visited the FUSION restaurant at least


three times in the past 6 months and involve an exchange of money for services rendered. A 

filtering question was used to screen qualified respondents who met the requirement. 

Design and Procedure 

This study design is cross-sectional in nature and was conducted using self-administered 

questionnaires with the consent from the restaurant owner beforehand. Pilot testing was 

conducted using a small convenience sample of 35 respondents, including the restaurant 

owner who checked for any ambiguities and confusion in the first draft of the questionnaires. 

Data was collected from the patrons who visited FUSION restaurant from June 2006 to 

October 2006. The respondents were informed that their participation was on a voluntary 

basis and all information provided would be kept private and confidential. Questionnaires 

were distributed only to those who qualified and agreed to participate in the study. The 

researcher then briefly explained the nature and requirement of the survey before the 

respondent filled up the questionnaire. 

Measures 

The multiple-items used to measure service quality were taken from Parasuraman, Zeithaml 

and Berry (1985) and Kivela, Reece and Inbakaran (1999b). A total of 14 items was used 

and includes the additional item (i.e. operating hours convenience) based on the suggestions 

of restaurant owners during the pilot testing. Single-item approach was used for the 

satisfaction and repatronage intention construct. Typically, assessment of reliability in terms 

of internal consistency cannot be computed for single-item measurement (Soderlund and 

Ohman, 2003). Rossiter (2002) has strongly argued that intentions should not be captured 

with multiple-item scales, as they invite the possibility of a confounded measurement. 

Though Churchill (1979) argued that single items are unreliable, Rossiter (2002) opposed 

this by demonstrating that the main issue is the validity problem rather than reliability 

problem. This is further supported by Westbrook and Oliver (1981) who indicated that 

single item rating scales were common among researchers in testing customer satisfaction. 

All the three main constructs were measured, using a five-point Likert scale. Selected 

demographic data was also collected at the end of the questionnaire. 

RESULTS 

The Statistical Package for the Social Sciences, Windows Version 13.0 (SPSS 13.0) was 

used to analyse the data collected. 

Descriptive Findings 

A total of 420 questionnaires was distributed, of which 377 were returned completed and 

met the screening requirements, representing a net response rate of 89.8% out of which 25


was excluded from further analysis due to missing data. Among the 377 respondents, 60% 

were females and 82.7% were aged between 20 to 49. As expected, a majority of them were 

Chinese customers and about half of the respondents (56%) were middle-income earners 

receiving a monthly income from RM2,000 to RM4,999. 

Customer Expectations. Based on the mean analysis, it was found that the highest 

expectations were related to the convenience and service factors. This may be due to the 

busy lifestyle in urban areas. On the other hand, the restaurant’s image scored the lowest in 

terms of customer expectation. However, this does not suggest that restaurateurs can ignore 

the importance of image but at least fulfil the minimum expectation of customers. 

Perceived Performance. The respondents’ general perception towards the service quality 

offered by the restaurant was between a mean score of 3.24 (Atmosphere factors) and 3.90 

(Convenience factors). Further analysis by comparing the perceived performance and 

expectation level revealed that the perceived performance on all dimensions fell short of 

their expectations, except for the convenience factor. This indicates that the service quality 

offered did not meet their customers’ expectations on most aspects. 

The Direct Effects of Service Quality and Satisfaction on Repatronage Intention 

Table 2 provides a matrix of the correlation coefficient for the main measures. 

Table 2. Intercorrelations between Main Measures 

Repatronage Service Customer 

Variables 

Intention Quality Satisfaction 

Repatronage 

Intention 

Pearson Correlation 

Sig. (2-tailed) 

N 

1 

. 

377 

.537** 

.000 

377 

.822** 

.000 

377 

Service 

Quality 



N 

.537** 

.000 

377 

1 

. 

377 

.486** 

.000 

377 

Customer 

Satisfaction 



N 

.822** 

.000 

377 

.486** 

.000 

377 

1 

. 

377 

Note: ** Correlation is significant at the 0.01 level (2-tailed). 

The results for direct effect of service quality on repatronage intention revealed an r-value of 

0.537 and the correlation is significant at p


was relatively higher (r² = .68). It was also found that service quality is positively correlated 

with satisfaction (r = .486, p

Model R R² 


Table 3. Model Summary of Multiple Regression 

Adjusted 

R² 

Std. 

Error of 

the 

Estimate Change Statistics 

R² F 

Sig. F 

Change Change df1 df2 Change 

1 .539(a) .290 .288 .977 .290 153.402 1 375 .000 

2 .836(b) .700 .698 .636 .409 509.763 1 374 .000 

Durbin- 

Watson 

3 .822(c) .675 .674 .661 -.025 30.831 1 374 .000 1.725 

Notes: 

a Predictors: (Constant), Service Quality 

b Predictors: (Constant), Service Quality, Customer Satisfaction 

c Predictors: (Constant), Customer Satisfaction 

d Dependent Variable: Re-patronage Intentions 

Table 4. Coefficients Analysis 

Unstandardized Standardized 

Model Variable 

Coefficients 

Std. 

Coefficients t Sig. 

B Error Beta 

1 (Constant) 3.282 .051 64.783 .000 

Service Quality .935 .075 .539 12.386 .000 

2 (Constant) -.071 .152 -.468 .640 

Service Quality .313 .056 .180 5.553 .000 

Customer Satisfaction .974 .043 .733 22.578 .000 

3 (Constant) -.493 .137 -3.596 .000 

Customer Satisfaction 1.091 .039 .822 27.902 .000 

Note: Dependent Variable: Re-patronage Intentions 

DISCUSSION AND CONCLUSION 

In summary, all the hypotheses were strongly supported and the proposed framework of the 

present study was able to demonstrate strong explanatory power. Notably, this study 

provides evidence for the direct effect of service quality and satisfaction on repatronage 

intention as suggested by the literature and satisfaction emerged as a stronger predictor of 

repatronage intentions in the restaurant settings. A number of marketing implications can be 

drawn from this study. The descriptive result reveals that patrons’ perception towards 

service quality level provided was consistently lower than their expectation. This implies 

that more effort is needed to improve the service quality level of the restaurant. The 

frontline staff may well be trained to be more responsive and sensitive to customer needs, 

thus providing services that are more efficient and effective. In addition, the restaurant 

atmosphere can also be improved by ensuring cleanliness and favourable ambience with 

appropriate music and lighting. Customer satisfaction is also very crucial for marketing


planning since satisfaction does influence customers’ intention to repatronage the restaurant 

in future. Hence, marketers should look into the factors that would affect customer 

satisfaction level. In addition, as customer expectations are changing over time, practitioners 

are advised to measure their customer expectation and satisfaction regularly and handle 

complaints timely and effectively. 

The present study has a number of limitations. Firstly, the nature of sampling unit under 

study cannot be generalized to a larger population as only one restaurant was examined and 

the use of single-item measurement for satisfaction construct has low reliability (Churchill, 

1979). Secondly, the causal relationship between service quality and satisfaction was not 

addressed in the present study. Thirdly, the use of cross-sectional data in a single industry 

also limits some of the conclusions obtained. 

In view of the limitations, future study should use different sampling units which are more 

generalizable and conduct the study nationwide. The proposed model can also be extended 

to other service industries or other types of restaurants. In terms of measurement issues, 

future research may use multiple items to strengthen the reliability of satisfaction construct. 

Also, the structural relationships among the three constructs should be examined. Additional 

constructs may also be added into this model, based on the literature, and be tested 

empirically. 

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