the impact of product quality on consumer satisfaction and

12
Scientific Research Journal of Economics and Business Management Abbreviated Key Title: Sci Res Jr Eco Bus Mgn.; ISSN 2788-9491 (Print) ISSN 2788-9505 (Online) Volume-1 | Issue-2 | Aug-Sep-2021 | Quick Response Code Journal homepage: https://isrpgroup.org/srjebm/ Copyright @ 2021 IARCON, All rights reserved. No part of this content may be reproduced or transmitted in any form or by any means as per the standard guidelines of fair use. Creative Commons License Open Access by IARCON is licensed under Creative Commons License a Creative Commons Attribution 4.0 International License. Article History Received: 10.08.2021 Accepted: 20.08.2021 Published: 31.08.2021 28 DOI: 10.47310/srjebm.2021.v01i02.004 Research Article The Impact of Product Quality on Consumer Satisfaction and Repurchase of Pizza in Sultanate of Oman Dr. Renjith Kumar. R 1 and Afrah Al Darrai Rashid Al Darrai 2 1 Lecturer in Marketing, Business Studies Department, University of Technology and Applied Sciences, Nizwa, Sultanate of Oman 2 B. Tech in Marketing, Business Studies Department, University of Technology and Applied Sciences, Nizwa, Sultanate of Oman *Corresponding author: Dr. Renjith Kumar. R Abstract: Omani population is influenced by the western dietary habits and there is increase in opting for pizza from international food chains. The study aims to identify the product quality attributes of pizza and its impact on customer satisfaction and repurchase. The objectives are to study the attributes of product quality that influence the purchase of Pizza and to identify the impact of product quality on consumer satisfaction and to examine the effect of customer satisfaction on repurchase. A sample size of 380 responses is collected from Nizwa. The most consistent variable that influence consumers related to the product quality of pizza is menu varieties and the consistency of pizza quality. Product quality of Pizza contributes 3% to satisfaction of pizza consumption. There is a moderate positive correlation between satisfaction and repurchase. Satisfaction of pizza consumption contributes 28% to repurchase of pizza. Keywords: Pizza, product quality, consumer satisfaction, Repurchase. INTRODUCTION According to a report in Oman Daily (October 22, 2020) Oman market has been experiencing rapid socio- cultural changes since the past few years, mainly due to the accelerating economy, which allowed people from the country to travel to western countries for tourism and education, thus, exposing them to western food and culture. The market study revealed a lot of opportunities for major tourism initiatives. Oman is moving toward becoming a world-class global tourism hub, backed by competitive advantages that attract international travelers looking for new experiences. This creates a huge opportunity for pizza restaurants in the country. As westernization is influencing consumers‟ dietary habits, Oman population is increasingly opting for pizza from international food chains, like Domino‟s and Pizza Hut. As a result, international food chains are continuously expanding their stores in the country to continue dominating the market share. The growth of the online food delivery market is significantly driving the pizza restaurants market growth. This is due to the rising young population, enhanced purchasing power, internet connectivity, and modern and changing lifestyles. Omani pizza restaurants market is competitive and fragmented and comprises regional and international competitors. The United States-based fast- food chains continue to dominate the pizza restaurant sector in this region (Oman Daily, October 22, 2020). Omani restaurants market is anticipated during the forecast period (2021-2026). The increasing demand for home delivery of pizza, aided by the increasing internet connectivity and consumer spending, is projected to extensively drive the market growth. Moreover, the strong influence of western culture, especially in the food sector, further assists the growth of pizza consumption in Oman. However, the rising burger chains and other fast- food chains with more economical and satiating food offerings entice the larger share of consumers. Within the GCC, Oman is likely to witness the highest growth at 4.6% in terms of food consumption which is anticipated to grow from 3.2 million MT in 2018 to 4.0 million MT in 2023. Population and real GDP growth of 3.2% and 2.5%, respectively during the period will be a major factor driving the food

Upload: others

Post on 23-Dec-2021

1 views

Category:

Documents


0 download

TRANSCRIPT

Scientific Research Journal of Economics and Business Management Abbreviated Key Title: Sci Res Jr Eco Bus Mgn.; ISSN 2788-9491 (Print)

ISSN 2788-9505 (Online)

Volume-1 | Issue-2 | Aug-Sep-2021 |

Quick Response Code

Journal homepage:

https://isrpgroup.org/srjebm/ Copyright @ 2021 IARCON, All rights reserved.

No part of this content may be reproduced or

transmitted in any form or by any means as

per the standard guidelines of fair use.

Creative Commons License Open Access by

IARCON is licensed under Creative Commons

License a Creative Commons Attribution 4.0

International License.

Article History Received: 10.08.2021

Accepted: 20.08.2021

Published: 31.08.2021

28

DOI: 10.47310/srjebm.2021.v01i02.004

Research Article

The Impact of Product Quality on Consumer Satisfaction and

Repurchase of Pizza in Sultanate of Oman Dr. Renjith Kumar. R

1 and Afrah Al Darrai Rashid Al Darrai

2

1Lecturer in Marketing, Business Studies Department, University of Technology and Applied Sciences, Nizwa, Sultanate

of Oman 2B. Tech in Marketing, Business Studies Department, University of Technology and Applied Sciences, Nizwa, Sultanate

of Oman

*Corresponding author: Dr. Renjith Kumar. R

Abstract: Omani population is influenced by the western dietary habits and there is increase in opting for pizza from

international food chains. The study aims to identify the product quality attributes of pizza and its impact on customer

satisfaction and repurchase. The objectives are to study the attributes of product quality that influence the purchase of

Pizza and to identify the impact of product quality on consumer satisfaction and to examine the effect of customer

satisfaction on repurchase. A sample size of 380 responses is collected from Nizwa. The most consistent variable that

influence consumers related to the product quality of pizza is menu varieties and the consistency of pizza quality. Product

quality of Pizza contributes 3% to satisfaction of pizza consumption. There is a moderate positive correlation between

satisfaction and repurchase. Satisfaction of pizza consumption contributes 28% to repurchase of pizza.

Keywords: Pizza, product quality, consumer satisfaction, Repurchase.

INTRODUCTION According to a report in Oman Daily (October 22,

2020) Oman market has been experiencing rapid socio-

cultural changes since the past few years, mainly due to

the accelerating economy, which allowed people from

the country to travel to western countries for tourism

and education, thus, exposing them to western food and

culture. The market study revealed a lot of opportunities

for major tourism initiatives. Oman is moving toward

becoming a world-class global tourism hub, backed by

competitive advantages that attract international

travelers looking for new experiences. This creates a

huge opportunity for pizza restaurants in the country.

As westernization is influencing consumers‟ dietary

habits, Oman population is increasingly opting for pizza

from international food chains, like Domino‟s and Pizza

Hut. As a result, international food chains are

continuously expanding their stores in the country to

continue dominating the market share. The growth of

the online food delivery market is significantly driving

the pizza restaurants market growth. This is due to the

rising young population, enhanced purchasing power,

internet connectivity, and modern and changing

lifestyles. Omani pizza restaurants market is

competitive and fragmented and comprises regional and

international competitors. The United States-based fast-

food chains continue to dominate the pizza restaurant

sector in this region (Oman Daily, October 22, 2020).

Omani restaurants market is anticipated during the

forecast period (2021-2026).

The increasing demand for home delivery of pizza,

aided by the increasing internet connectivity and

consumer spending, is projected to extensively

drive the market growth. Moreover, the strong

influence of western culture, especially in the food

sector, further assists the growth of pizza

consumption in Oman.

However, the rising burger chains and other fast-

food chains with more economical and satiating

food offerings entice the larger share of consumers.

Within the GCC, Oman is likely to witness the

highest growth at 4.6% in terms of food consumption

which is anticipated to grow from 3.2 million MT in

2018 to 4.0 million MT in 2023. Population and real

GDP growth of 3.2% and 2.5%, respectively during the

period will be a major factor driving the food

Renjith Kumar. R & Afrah Al Darrai Rashid Al Darrai; Sci Res Jr Eco Bus Mgn.; Vol-1, Iss-2 (Aug-Sep, 2021): 28-38

29

consumption in the country. Tourism will also play a

key role in defining the upcoming food demand. (Alpen

Capital, GCC Food Industry, 2019). The Pizza

businesses are in severe competition in the present

market. Numerous brands are currently operating their

business in Oman such as Pizza Hut, Domino‟s Pizza,

Volare Pizzaria, La Fattoria Della Pizza, Italiano

Pizzeria and Pasta, Pizza Express, Fresco Oman, The

Pizza Company, Pizza Inn, Pizza and Pasta Broccoli,

Yellow Cab Pizza. Shakespeare and Co, Angelo‟s

Pizza. In Nizwa, the two leading Pizza brands that

operate in the market are Pizza Hut and Domino‟s

Pizza. Kandampully and Suhartanto, (2000) revealed

that customer satisfaction and customer loyalty have a

positive relationship. This research aims to examine the

factors such as quality of product, customer satisfaction

and impact on customer loyalty.

Product Quality Food quality is defined as one of the most critical

constituents of a dining performance and productivity,

(Namkung & Jang, 2008; Sulek & Hensley, 2004). Food

quality is main factor affecting on customer loyalty,

expressing customer's perspective; a primary determinant

for appealing customers and retaining them repeatedly, as

well as a core predictor of loyal level from customers,

(Jang & Ha, 2010). When it is compared with other

standards as service quality or environment, food quality

is the most crucial component of customer satisfaction,

(Sulek & Hensley 2004). There is a positive relationship

between food quality and customer satisfaction when

measuring the impact of this key term on satisfaction and

behavioural intention (Namkung & Jang, 2007). Product

quality is stated to comprise three main factors for

evaluation quality as "safety, appeal, and dietary

acceptability", (Sulek & Hensley, 2004) and it is always

the most important part impacting on customer

satisfaction which is equivalent with other factors in

restaurants as physical environment and service quality.

Singh and Sirdeshmukh (2000) found that food quality is

one the most important attributes that leads to customer

satisfaction. Other studies have also focused on food

quality, identifying three key components; taste,

appropriate temperature and presentation of the food

served (Goh et al., 2008; Kivela et al., 1999; Koo et al.,

1999; Namkung and Jang, 2007, 2008). These studies

found that food quality has a high impact on customer

satisfaction and brand loyalty. The relationship between

food quality and customer satisfaction in the fast food

industry is proven to be one key to success (Namin,

2017). Several components of food quality exist,

including, (1) the freshness of the ingredients, (2) taste,

(3) quality consistency, and (4) appearance (Namkumg

and Jang, 2007; Rozekhi et al., 2016).

Customer Satisfaction

Customer satisfaction is a psychological state that

results when the emotion surrounding disconfirmed

expectations is coupled with prior feelings about the

customer experience (Oliver 1999). Oliver (2014) stated

that satisfaction is the consumer's fulfillment response.

Kotler (2000) defines customer satisfaction as a

person‟s feelings of pleasure or disappointment

resulting from comparing a product‟s perceived

performance or outcome in relation to his/her

expectations. Customer satisfaction is a measure of how

an organisation‟s total product performs in relation to a

set of customers‟ requirements (Hill and Alexander,

2006., Shankar et al., 2003).

Customer Loyalty

Attitude and behaviour are two very crucial

dimensions in determining customer loyalty

(Kandampully & Suhartanto, 2000). The behaviour

dimension is the behaviour of customers towards re-

visiting a restaurant over a period of time (Bowen &

Shoemaker, 1998). The dimension of behaviour and

customer loyalty is usually shown through repeated

purchases (Wong & Sohal, 2003). Gremler and

Gwinner (2000) also found a positive relationship

between satisfaction and the intention to be a loyal

customer. According to Griffin (2005) definition of

customer loyalty as a manifestation of the behavior of

the units of decision making purchases continue - going

against the goods or services of a company that is

selected. Vanessa (2007) defines loyalty as a customer

commitment to defend in depth to repurchase of

products or services consistently in the future, although

the influence of the situation and marketing efforts have

potential to cause behavioral changes. The

characteristics of loyal customers by Grifin (2005) refer

to re-purchase on a regular basis, and show resistance to

the pull of competitors. According to Yuen and Chan

(2010) better product quality will maintain high level of

customer satisfaction, which encourages customers to

make future purchases.

Statement of the problem

Like in other Middle East countries, culture in

Oman is not just about shopping but also about going

out to eat (Aaron Allen Associates, 2013). While

majority of the GCC produce less food, Oman food

production has witnessed ample growth during the last

ten years. This rise is driven by high demand, better

efficiency and the need for better nutrition and work

very closely with local food producers to enhance

fortification programs across the food value chain

(Alpen Capital, GCC Food Industry, September 2019).

The food consumption is expected to grow at a rate of

4.6% annually. Oman is likely to witness the highest

growth at 4.6% in terms of food consumption which is

anticipated to grow from 3.2 million MT in 2018 to 4.0

million MT in 2023. Food quality is a major driving

force that motivates consumers towards pizza. Thus this

study attempts to identify the attributes of quality of

pizza and aims to analyse the customer satisfaction and

its effect on repurchase of pizza.

Renjith Kumar. R & Afrah Al Darrai Rashid Al Darrai; Sci Res Jr Eco Bus Mgn.; Vol-1, Iss-2 (Aug-Sep, 2021): 28-38

30

Significance of the study

Omani population is influenced by the western

dietary habits. Oman population is increasingly opting

for pizza from international food chains. The study aims

to identify the product quality attributes of pizza and its

impact on customer satisfaction and repurchase

(loyalty). This study will be very helpful for the Pizza

brand marketers to establish and survive in the existing

markets in Oman. Furthermore, they can expand their

markets and enter into new markets with more profits

from the existing markets. The results of this study

would be helpful for the marketers to satisfy their

customers and to make them loyal.

Objectives of the study

1. To study the attributes of Product Quality that

influence the purchase of Pizza.

2. To identify the impact of product quality on

consumer satisfaction.

3. To examine the effect of customer satisfaction on

repurchase.

LITERATURE REVIEW Shinde et al., (2018) studied the components of

customer satisfaction at Rolls Mania a fast food service

restaurant at Kolhapur City, India among 154

customers. Dining experience; accessibility,

convenience and affordability, and product test are the

important components of customer satisfaction. There is

a significant relationship between customer satisfaction

and customer loyalty. Abdullah, Ahasanul & Ferdous

(2018) conducted a study among 250 customers to

understand the relationships between customer loyalty

and factors of loyalty that contribute to loyalty towards

fast food restaurants in Malaysia such as KFC,

McDonalds and Dominos and Nando‟s chicken in

Kuala Lumpur, Malaysia. Customer loyalty is

associated with the quality of product, restaurants

environment, convenience and price and value towards

fast food businesses. Convenience and quality of food

has the most influence on customer loyalty. Restaurant

environment and price have no impact on customer

loyalty. Manikandan et al., (2015) focused on the

customers of Domino‟s pizza outlets in Chennai. They

studied the customer satisfaction in Domino‟s pizza

outlets, customer perception and customers‟ preference

about Dominos products. Customers' perceived value,

brand trust; customers' satisfaction, repeat purchase

behavior, and commitment are found to be the key

influencing factors of brand loyalty. Bhatnagar (2013)

examined the factors influencing the liking and

satisfaction of customers towards Dominos‟ Pizza in

Gwalior, India and found that all the factors showed

liking and satisfaction level in favour of Domino‟s

Pizza. Ossama and Sonia (2018) examined the

relationship between service design and product design

with customer satisfaction and customer‟s repurchasing

behaviour among 300 consumers in Pakistan. There is a

positive impact of product and process on consumer

repurchase behaviour. Buying behaviour is highly

influenced by product attributes and it positively

influence to shape repurchase behavior of consumers.

Phan and Nguyen, (2016) investigated the customers'

evaluation and perception about determinants

influencing on customer satisfaction at Vietnamese fast-

food restaurants. Respondents are likely satisfied and

interested in the decoration and design style in fast-food

restaurants in Vietnam because it almost generates the

comfortable and good feelings in order to enjoy and eat

their meals. Service quality and food quality, price and

environment elements have impact on customer

satisfaction as well as loyalty in the Vietnam fast-food

restaurant. Usman and Suresh (2016) explored the

factors influencing consumer‟s satisfaction towards

branded fast food outlets in Chennai city in India. The

factors include variety of product, quality of product,

accuracy of service, delivery time, store location, staff

courtesy, ambient conditions and overall satisfaction.

253 consumers were contacted from Chennai city who

are customers of KFC, Dominos, Subway, Pizza Hut

and Mc Donald‟s. Quality of product is more important

and there is an association between branded retail

outlets and overall satisfaction. Aymar and Joseph

(2019) determined the drivers of customer satisfaction

and brand loyalty at McDonald‟s restaurants in

Morocco from 150 participants. Price, food quality,

service quality, and physical environment affects

customer satisfaction and brand loyalty. Price fairness

at McDonald‟s increases both customer satisfaction and

brand loyalty. Food quality, such as taste, appropriate

temperature and food presentation, are significant

attributes leading to enhanced customer satisfaction, as

well as brand loyalty. Another research focused factors

for fast food industry in region of Peshawar, Pakistan

from 150 customers of Four fast food restaurants; KFC,

Chef, Arabian Chick, and Pizza Hut. Service quality

and brand are the key factors for satisfaction in fast

food industry in Peshawar, Pakistan. Brand, Service

quality, physical environment and promotion are the

key determinant of customer satisfaction in the

purchase of fast food industry. There is a significant

positive relationship between the promotion, service

quality, customer expectations, brand, physical

environment, price, and taste of the product to customer

satisfaction (Shahzad, Majid & Fahad, 2016). Nasiru

(2013) focused on identifying the relationship between

customer satisfaction and brand loyalty in the fast food

industry in United Kingdom from 100 customers of five

fast-food restaurants; Pizza Hut, KFC, Mc Donald‟s,

Burger King and Dominos in order to identify the

relationship between customer satisfaction and

customer loyalty. The findings showed that if the

customers are satisfied with the existing brands of fast

food companies then they are very less likely to get

attracted towards the other brands.

Research Gap

The researcher has identified that previous studies

focused only on fast foods exclusively. The satisfaction

Renjith Kumar. R & Afrah Al Darrai Rashid Al Darrai; Sci Res Jr Eco Bus Mgn.; Vol-1, Iss-2 (Aug-Sep, 2021): 28-38

31

of consumers in Pizza is not addressed in previous

studies. Product quality is the most important attribute

that influences consumers (Yuen and Chan 2010,

Namkung & Jang, 2008; and Sulek & Hensley, 2004).

This study focuses on the satisfaction of Omani

consumers and various attributes that influence Pizza

quality are addressed in this study. Moreover, such

studies on product quality, consumer satisfaction and

loyalty has not been conducted previously in Oman.

Thus, this study addresses these issues through this

study. The conceptual frame work is:

RESEARCH METHODOLOGY It is a descriptive study as it covers the attributes of

product quality of pizza, customer satisfaction and

repurchase. The study area selected for this research is

Nizwa. The period of study is from October 2020 to

December 2020. According to the National Center for

Statistics and Information, Statistical Year Book (2019)

the population of Omanis in Nizwa in 2018 is 86,031.

This is taken as the sampling frame. The sample size is

determined as 384 (Krejcie and Morgan,1970)

respondents. The sampling method adopted is simple

random sampling method, where in the customers are

contacted on a random basis. Primary data is collected

with the help of a structured questionnaire. Pilot study

is to be conducted among 15 respondents to identify the

validity of the questions. The data is collected online

using Google form in both English and Arabic.

Coefficient of variation is used to find the most

consistent and reliability of variables. The impact is

measured with the help of regression method.

Hypothesis is tested using ANOVA and correlation

tests.

Analysis and Discussions

The analysis in this section is based on the data

collected from 380 sample responses.

Table no.1 Demographic profile of respondents

Demographic factors Factors Number of

responses

In Percentage

Gender Males 114 30%

Females 266 70%

Total 380 100%

Age group (in years)

Less than 20 54 14%

20-< 30 236 62%

30- <40 67 18%

40-<50 11 3%

>50 12 3%

Size of family members

3-4 66 17%

5-6 77 20%

7-8 93 25%

9-10 78 21%

>10 66 17%

Occupation

Student 137 36%

Government job 64 17%

Private job 68 18%

Own business 45 12%

Others 66 17%

Monthly family Income (in

OMR) (Omani Rial)

Below 300 85 22%

301-500 97 26%

501-700 83 22%

701-900 57 15%

Above 900 58 15%

According to the demographic profile shown in

table no.1, 70% of respondents are females and 30% are

males. The age group revealed that 62%of respondents

are 20 to less than 30 years old and 14% are less than

20 years old. Only 3%of respondents are 40-50 years

old because old people don‟t like to eat fast food.

Among the sample respondents, 25% of respondents

have between 7-8 family members. 21% of respondents

have 9-10 family members. Among the sample, 36% of

respondents are students and 12% of respondents have

their own Business. The income of the respondents

showed that 26% of respondents their monthly family

Customer Satisfaction Repurchase (Customer

Loyalty)

Product Quality

Renjith Kumar. R & Afrah Al Darrai Rashid Al Darrai; Sci Res Jr Eco Bus Mgn.; Vol-1, Iss-2 (Aug-Sep, 2021): 28-38

32

income is from 301-500 OMR and 15% of respondent‟s family income is above 900 OMR.

Table no.2 Favourite Pizza Brand

Brands No of responses In Percentage

Pizza Hut 225 59%

Domino‟s Pizza 96 25%

Others 59 16%

Total 380 100%

The favourite pizza brand is identified through table

no 2. 59% of respondents prefer Pizza Hut brand. Thus

Pizza Hut is the leading brand in this market. 25% of

the market share is captured by Domino‟s Pizza. 16% of

respondents prefer pizza from restaurants, shops and

hypermarkets in Nizwa.

Table no.3 Preference to buy

Preference/Mode of

purchase

No of responses In Percentage

Visit the shop and dine there 87 23%

Buy from shop and take away 220 58%

Buy Online 73 19%

Total 380 100%

It is identified that 58% of respondents prefer to buy

pizza from the shop and take away. This is due to the

present pandemic situation of Corona virus. 23% of the

consumers prefer to dine in the restaurant itself. But

19% of respondents prefer to make order of pizza

online. This is because of the development of online

restaurants ordering Apps such as Talabat, Daleel 1010

and Akeed food delivery.

Table no.4 Rating the quality of Pizza

No Attributes of Pizza quality Mean SD CV= (SD/Mean) x 100

1 Healthy Dish 3.18 1.28 40.25

2 Delicious and tasteful 3.81 1.2 31.49

3 Nutritional value 3.42 1.03 30.11

4 Safe 3.42 1.14 33.33

5 Appealing 3.93 1.14 29

6 Dietary acceptability 3.49 1.10 31.51

7 Aroma (Smell) 3.88 1.15 29.63

8 Size and shape (design) Appearance 3.86 1.13 29.27

9 Freshness of Ingredient quality 3.80 1.10 28.94

10 Dough quality 3.80 1.16 30.52

11 Quality consistency 3.76 1.06 28.19

12 Menu varieties and choices 3.86 1.02 26.42

The product quality attributes of Pizza are analysed

with the help of coefficient of variation. Those variables

with less coefficient of variation are the most reliable

and consistent variable. The most consistent variable

that consumers influence on the product quality of pizza

is on the varieties and choices of Pizza (26.42). The

second most consistent variable is the consistency of

pizza quality (28.19). Consumers also give importance

to the freshness of ingredients (28.94). It is found that

consumers never consider Pizza as a healthy dish

(40.25) and safe (33.33).

Table no. 5 Satisfaction on consumption of Pizza

Level of Satisfaction No of responses In Percentage

Highly Satisfied 134 35%

Satisfied 121 32%

Moderate 99 26%

Dissatisfied 15 4%

Highly dissatisfied 11 3%

Total 380 100%

The satisfaction of pizza consumers is analysed

through table no.5. It is found that 35% of respondents

are highly satisfied by the consumption of pizza. 32%

of Omani consumers are satisfied by pizza

consumption. Only 7% of the consumers are

Renjith Kumar. R & Afrah Al Darrai Rashid Al Darrai; Sci Res Jr Eco Bus Mgn.; Vol-1, Iss-2 (Aug-Sep, 2021): 28-38

33

dissatisfied. Thus 67% of Omani consumers are satisfied by the consumption of pizza.

Table no. 6 Opinion about future purchase of Pizza

Opinion No of responses In Percentage

Yes 294 77%

No 86 23%

Total 380 100%

From table no.6 it is identified that 77% of the

Omani consumers prefer to buy pizza in future. Only

23% opined that they do not consume in future as they

are health conscious. Thus the market for pizza seems

to be promising as there is a great demand from Omani

consumers.

Table no.7 Preference to buy Pizza frequently

Preference to buy

frequently

No of responses In Percentage

Very frequently 141 37%

Frequently 67 18%

Not decided 108 28%

Not frequently 41 11%

Very less frequently 23 6%

Total 380 100%

The frequency of future purchase is analysed

through table no.7. It is observed that 37% of Omani

consumers purchase very frequently in future. 18% of

them will buy frequently. Thus 55% of the consumers

will frequently buy pizza in future. This also shows the

potential demand for pizza consumption. 28% of the

consumers have not decided. They can be encouraged

by the marketers to convert to potential consumers.

Table no.8 Recommend to friends and relatives

Recommend No of responses In Percentage

Strongly recommend 154 41%

Recommend 96 25%

Moderate 91 24%

Will not recommend 25 6%

Definitely will not recommend 14 4%

Total 380 100%

The satisfaction of pizza consumption is also

revealed and supported that 41% of the consumers will

strongly recommend pizza to friends and relatives. 25%

of the respondents stated that they will recommend to

their friends and relatives. This also shows that the

brand marketers of pizza have served to the standards

and expectations of the consumers.

Impact of Product Quality of Pizza on Satisfaction

Table no. 9 Descriptive Statistics

Mean Std. Deviation N

Satisfaction 3.9263 1.01433 380

Quality 3.6873 .76312 380

Table no.9 shows the descriptive analysis of product

quality of pizza (independent variable) and satisfaction

(dependent variable). The mean value of dependent

variable, satisfaction is 3.92 with a standard deviation

of 1.01. The mean value of product quality is 3.68 and a

standard deviation of 0.76. A low standard deviation

indicates that the data points tend to close to the mean.

A high standard deviation indicates that the data points

are spread across a wider range of values. The mean is

high for the dependent factor „satisfaction.

Table no. 10 Correlations

Renjith Kumar. R & Afrah Al Darrai Rashid Al Darrai; Sci Res Jr Eco Bus Mgn.; Vol-1, Iss-2 (Aug-Sep, 2021): 28-38

34

Satisfaction Quality

Pearson Correlation Satisfaction 1.000 .165

Quality .165 1.000

Sig. (1-tailed) Satisfaction . .001

Quality .001 .

N Satisfaction 380 380

Quality 380 380

From table no.10 it is clear that there is positive

correlation between product quality of pizza and

satisfaction. But the relationship is slightly positive

correlation as the value is 0.165. So there is no strong

correlation between quality of pizza and satisfaction.

The significance value is less than 0.5. (p < 0.5). Thus

the null hypothesis is rejected and the alternate

hypothesis is accepted. Therefore, it is concluded that

there is a significant relationship between customer

satisfaction and product quality.

Table no. 11 Model Summary

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate Durbin-Watson

1 .165a .027 .025 1.00179 1.539

a. Predictors: (Constant), Quality

b. Dependent Variable: Satisfaction

The model Summary table no.11 provides the R, R2,

adjusted R2 which can be used to determine how well a

regression model fits the data. The R value represents

correlation coefficient and the value of 0.165 which is

positive. The "R Square" column represents

the R2 value (also called the coefficient of

determination), which is the proportion of variance in

the dependent variable that can be explained by the

independent variable. Thus, product quality contributes

only 3% to satisfaction of pizza consumption.

Remaining 97% contributes to other factors that

influence the satisfaction of pizza. This means that there

are other independent variables that were not put into

consideration in this study. The other factors include

price, promotion, place, physical evidence, people and

process as it a service oriented product. The adjusted

R2 (0.025) gives an idea how well the model generalizes

that the value is close to R2

(0.027). There is a

difference of 0.002.

Table no 12 ANOVAa

Model Sum of Squares Df Mean Square F Sig.

1 Regression 10.582 1 10.582 10.544 .001b

Residual 379.355 378 1.004

Total 389.937 379

a. Dependent Variable: Satisfaction

b. Predictors: (Constant), Quality

The ANOVA test was performed to identify the

statistical significance of the regression model on

whether it is a good descriptor for the relationship

between the independent (product quality) and the

dependent variable (satisfaction). The F-ratio in

the ANOVA table tests whether the overall regression

model is a good fit for the data. The independent

variable significantly predicts the dependent variable, F

(1, 378) = 10.544, p < .05. This means that the

independent variable (product quality) is significant in

explaining the variation in the dependent variable

(satisfaction). The ANOVA table, proves that the

overall correlation 0.165 is significant. Hence the model

is fit.

Table no.13 Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 3.119 .254 12.284 .000

Quality .219 .067 .165 3.247 .001

a. Dependent Variable: Satisfaction

The coefficients in table no.17 helped to find out the

contribution of product quality on satisfaction. To

make the comparison, the Beta standardized

coefficients were used. The results indicate that Product

quality (β = 0.219; p = 0.001) is a significant predictor

of satisfaction.

Therefore, the Regression equation is developed as follows:

Renjith Kumar. R & Afrah Al Darrai Rashid Al Darrai; Sci Res Jr Eco Bus Mgn.; Vol-1, Iss-2 (Aug-Sep, 2021): 28-38

35

Y= a + b X

Where „Y‟ is the dependent variable „Satisfaction‟, a and b are constants.

The model equation based on the analysis is given below:

Y (Satisfaction) = 3.119 + 0.219 product quality (X)

where X is product quality

Satisfaction = 3.119 + 0.219 (Product quality)

This means that for every one unit change in quality of pizza, there is a 0.219 change in the satisfaction.

Impact of Satisfaction of Pizza on Repurchase (Brand loyalty)

Table no. 14 Descriptive Statistics

Mean Std. Deviation N

Repurchase 3.8768 .94936 380

Satisfaction 3.9263 1.01433 380

Table no.14 shows the descriptive analysis of

satisfaction of pizza (independent variable) and repurchase

(dependent variable). The mean value of dependent

variable, repurchase is 3.87 with a standard deviation of

0.94. The mean value of satisfaction is 3.92 and a standard

deviation of 1.01. A low standard deviation indicates that

the data points tend to close to the mean. A high standard

deviation indicates that the data points are spread across a

wider range of values. The mean is high for the

independent factor „satisfaction but the standard deviation

is less for the dependent variable, „repurchase‟.

Table no. 15 Correlations

Repurchase Satisfaction

Pearson Correlation Repurchase 1.000 .530

Satisfaction .530 1.000

Sig. (1-tailed) Repurchase . .000

Satisfaction .000 .

N Repurchase 380 380

Satisfaction 380 380

From table no.15 it is clear that there is positive

correlation between satisfaction and repurchase. There is a

moderate positive correlation between satisfaction and

repurchase (0.530). So there is a strong correlation

between quality of pizza and satisfaction. The significance

value is less than 0.5. (p < 0.5). Thus the null hypothesis is

rejected and the alternate hypothesis is accepted.

Therefore, it is concluded that there is a significant

relationship between customer satisfaction and repurchase.

Table no 16 Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate Durbin-Watson

1 .530a .281 .279 .80620 1.530

a. Predictors: (Constant), Satisfaction

b. Dependent Variable: Repurchase

The model Summary table no.16 provides the R, R

2,

adjusted R2 which can be used to determine how well a

regression model fits the data. The R value represents

correlation coefficient and the value of 0.530 which is

positive. The "R Square" column represents the R2 value

(also called the coefficient of determination), which is the

proportion of variance in the dependent variable that can

be explained by the independent variable. Thus,

satisfaction contributes only 28% to repurchase of pizza.

Remaining 72% contributes to other factors that influence

the repurchase of pizza. This means that there are other

independent variables that were not considered in this

study. The other factors are brand name, offers given,

convenience, delivery services, price and income factors

etc. The adjusted R2 (0.279) gives an idea how well the

model generalizes that the value is close to R2

(0.281).

There is a difference of 0.002.

Table no. 17 ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 95.904 1 95.904 147.555 .000b

Residual 245.684 378 .650

Total 341.588 379

a. Dependent Variable: Repurchase

b. Predictors: (Constant), Satisfaction

Scientific Research Journal of Economics and Business Management Abbreviated Key Title: Sci Res Jr Eco Bus Mgn.; ISSN 2788-9491 (Print)

ISSN 2788-9505 (Online)

Volume-1 | Issue-2 | Aug-Sep-2021 |

Quick Response Code

Journal homepage:

https://isrpgroup.org/srjebm/ Copyright @ 2021 IARCON, All rights reserved.

No part of this content may be reproduced or

transmitted in any form or by any means as

per the standard guidelines of fair use.

Creative Commons License Open Access by

IARCON is licensed under Creative Commons

License a Creative Commons Attribution 4.0

International License.

Article History Received: 10.08.2021

Accepted: 20.08.2021

Published: 31.08.2021

36

DOI: 10.47310/srjebm.2021.v01i02.004

The ANOVA test was performed to identify the

statistical significance of the regression model on

whether it is a good descriptor for the relationship

between the independent (satisfaction) and the

dependent variable (repurchase). The independent

variable significantly predicts the dependent variable, F

(1, 378) = 147.555, p < .05. This means that the

independent variable (satisfaction) is significant in

explaining the variation in the dependent variable

(repurchase). The ANOVA table, proves that the overall

correlation 0.530 is significant. Hence the model is fit.

Table no. 18 Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 1.930 .166 11.656 .000

Satisfaction .496 .041 .530 12.147 .000

a. Dependent Variable: Repurchase

The coefficients in table no.18 helped to find out the

contribution of satisfaction on repurchase. To make the

comparison, the Beta standardized coefficients were

used. The results indicate that Satisfaction (β = 0.496; p

= 0.000) is a significant predictor of repurchase.

Therefore, the Regression equation is developed as follows:

Y= a + b X

Where „Y‟ is the dependent variable repurchase, a and b are constants.

The model equation based on the analysis is given below:

Y (Repurchase) = 1.930 + 0.496 Satisfaction (X), where X is satisfaction

Repurchase = 1.930 + 0.496 (Satisfaction)

This means that for every one unit change in satisfaction, there is a 0.496 change in the brand loyalty.

Findings of the study

The most consistent variable that influence

consumers related to the product quality of pizza is

on the varieties and choices of Pizza (26.42). The

second most consistent variable is the consistency

of pizza quality (28.19). Consumers also give

importance to the freshness of ingredients (28.94).

Consumers never consider Pizza as a healthy dish

(40.25) and safe (33.33).

There is no strong correlation between quality of

pizza and satisfaction (0.165). There is a significant

relationship between customer satisfaction and

product quality. Product quality of Pizza

contributes 3% to satisfaction of pizza

consumption. For every one unit change in quality

of pizza, there is a 0.219 change in the satisfaction.

There is a moderate positive correlation between

satisfaction and repurchase (0.530). It is proved

through hypothesis testing that there is a significant

relationship between customer satisfaction and

repurchase. Satisfaction of pizza consumption

contributes 28% to repurchase of pizza. For every

one unit change in satisfaction, there is a 0.496

change in the brand loyalty.

59% of market share is captured by Pizza Hut

brand and 25% of the market share is captured by

Domino‟s Pizza, which is the follower.

58% of respondents prefer to buy pizza from the

shop and take away. This is due to the present

pandemic situation of Corona virus. 23% of the

consumers prefer to dine in the restaurant itself.

19% of respondents prefer to make order of pizza

Online.

35% of respondents are highly satisfied by the

consumption of pizza. 32% of Omani consumers

are satisfied by pizza consumption. 37% of Omani

consumers purchase very frequently in future. 18%

of them will buy frequently. 41% of the consumers

will strongly recommend and 25% will recommend

pizza to friends and relatives.

Recommendations

Renjith Kumar. R & Afrah Al Darrai Rashid Al Darrai; Sci Res Jr Eco Bus Mgn.; Vol-1, Iss-2 (Aug-Sep, 2021): 28-38

37

1. Since the pizza varieties affects greatly on

consumer satisfaction, it is necessary to introduce

more menu and add new varieties.

2. Pizza brand companies in the Sultanate of Oman,

especially in Nizwa, must change consumers‟

perception that pizza is unhealthy. Awareness and

promotion must be given that it is prepared from

healthy ingredients, fresh vegetables and also using

low-fat cheeses. In the dough it is better to choose

flour that contains bran Healthy wheat, and put the

choice of healthy pizza on the menu so that dieters

can eat it also without gaining weight, and it can be

written how many calories each meal contains.

3. Providing family offers to increase the level of

recommendations of friends and relatives, through

attractive packaging that is easy to carry, and

putting up contests on social media such as

Instagram, Snapchat, Twitter and others, by sharing

a picture of pizza on the buyer's personal account,

put tags of the pizza shop from which he bought it

and the image obtained. For the most real likes and

the largest number of friends, the winner gets a

family offer or with a number of friends.

4. Holding celebrations and competitions in cooking

skills, baking pizza and preparing to attract more

customers and cooking hobby to develop services

and taste for pizza.

5. As consumers prefer chicken pizza, it is necessary

to invent new and delicious types of chicken pizza,

which attracts more buyers. The ingredients should

be added according to the choice of the buyer. Also

customers' suggestions about the new items, notes

and the rate of evaluation can be taken.

6. Make barcode which can sell to customers,

customers can give their friends or family as a gift

which can stick on the cover of gifts box or which

can be scanned by pizza shop website or mobile

Applications to make this process easy. Pizza shop

can cooperate with one of the gift coordinating

shops, the buyer can coordinate with the gift shop

and request the pizza meal barcode with the

appropriate budget, after that the pizza shop can

provide and coordinate it. This increases the

participation of individuals, relatives and friends

and thus increase sales.

CONCLUSION

Through the research in the studied area, most of the

buyers are youth and students, and they are the most

productive community groups. Therefore, pizza must be

presented with healthy and delicious standards and

measures that suit their requirements and gain their

satisfaction to ensure community productivity

effectively, the percentage of buyers choosing other

brands not present in the region The percentage of

online orders and the percentage of satisfaction with the

consumption of pizza tells us that other brands and

pizza manufacturers can invade the market with

reasonable success, as consumers have not shown great

loyalty to the companies that currently exist. By nature,

consumers like constant change, especially in

restaurants and meals, as they are always looking for

the best.

REFERENCES 1. Al Masud, M. A., Haque, A., & Ferdous Azam S.

M. (2018) Factors Influencing Customer Loyalty

towards Fast Food Restaurants: An Empirical

Study in Malaysia, International Tourism and

Hospitality Journal 1(3): pp 1-17.

2. Al-Tit, A. A. (2015). The Effect of Service and

Food Quality On Customer Satisfaction and Hence

Customer Retention. Asian Social Science, 11(23),

129-139.

3. Raduzzi, A., & Massey, J. E. (2019). Customers

satisfaction and brand loyalty at McDonalds

Maroc. African Journal of Marketing

Management, 11(3), 21-34.

4. Bhatnagar, V. K., & Kushwah, D.

(2013). Customer Satisfaction at Domino‟s: An

Empirical Study in Gwalior Region, Transforming

Business Organizations for Longevity: Challenges

and Opportunities, Prestige Institute of

Management, Gwalior, Narosa Publishing House,

New Delhi. 2013, pp.316-322

5. Bowen, J.T. and Shoemaker, S. (1998). “Loyalty: a

strategic commitment”, Cornell and Hotel

Restaurant Administration Quarterly, 39(1), 12-25.

6. Donkoh, S. A., Quainoo, A. K., Cudjoe, E., &

Kaba, N. C. (2012). Customer satisfaction and

perceptions about food services on the University

for Development Studies Campus, Ghana. African

Journal of Food Science, 6(8), 216-223. Oklahoma

State University.

7. Goh, C., Law, R., & Mok, H.M. (2008). Analyzing

and forecasting tourism demand: A rough sets

approach. Journal of Travel Research 46(3), 327-

338.

8. Gremler, D., & Gwiner, K. (2000). Customer-

employee rapport in service relationships. Journal

of Service Research, 3(1), 82-104.

9. Jill, G. (2005). Customer Loyalty: Growing and

Sustaining Customer Loyalty. Jakarta: Erland

10. Haider, M. U., Jan, D. F., Jan, M. F., & Faheem,

M. (2015). Factors Effecting Brand Preferences: A

Comparative Study of McDonald‟s and KFC.

Abasyn Journal of Social Sciences.

11. Hill, N., & Alexander, J. (2006). The Handbook of

Customer Satisfaction and Loyalty Measurement

(3rd ed.). London: Routledge

12. Jang, S., & Ha, J. (2010). Effects of service quality

and food quality: The moderating role of

atmospherics in an ethnic restaurant segment.

[online]. International Journal of Hospitality

Management, 29 (3), 520-529.

13. Kandampuly, J., & Suhartanto, D. (2000).

Customer Loyalty in The Hotel Industry. The Role

of Customer Satisfaction and Image. International

Renjith Kumar. R & Afrah Al Darrai Rashid Al Darrai; Sci Res Jr Eco Bus Mgn.; Vol-1, Iss-2 (Aug-Sep, 2021): 28-38

38

Journal of Contemporary Hospitality Management,

12(6), 346-51.

14. Kivela, J., Reece, J., & Inbakaran, R. (1999).

Consumer research in the restaurant environment.

Part 2: Research design and analytical methods.

International Journal of Contemporary Hospitality

Management 11(6), 269-286.

15. Koo, L.C., Tao, F.K., & Yeung, J.H. (1999).

Preferential segmentation of restaurant attributes

through conjoint analysis. International Journal of

Contemporary Hospitality Management 11(5),242-

253.

16. Kotler, P. (2000). Marketing management: The

millennium edition. Marketing Management

23(6),188-193.

17. Manikandan, A., & Kumaresan, S., & Subramani,

A. K. (2015). Customer Satisfaction Towards

Domino's Pizza In Chennai-An Empirical Study.

18. Marić, A., & Arsovski, S. (2010). The level of

customer satisfaction as one of the goals of the

quality of the organization in the bakery industry.

International Journal for Quality Research, 4(4),

275-281.

19. Marić, A., Arsovski, S., & Mastilović, J. (2009).

Contribution to the improvement of products

quality in baking industry. International Journal

for Quality Research, 3(3), 1-8.

20. Nair, S. (2013). Assessing customer satisfaction

and brand awareness of branded bread. IOSR

Journal of Business and Management, 12(2), 13-

18.

21. Namin, A. (2017). Revisiting customers' perception

of service quality in fast food restaurants. Journal

of Retailing and Consumer Services 34,70-81.

22. Namkung, Y., & Jang, S. (2007). Does Food

Quality Really Matter in Restaurants? Its Impact

On Customer Satisfaction and Behavioral

Intentions. Journal of Hospitality and Tourism

Research 31(3), 387-409.

23. Namkung, Y., Jang, S. (2008). Are highly satisfied

restaurant customers really different? A quality

perception perspective. International Journal of

Contemporary Hospitality Management 20(2),142-

55.

24. Ibrahim, A.N. (2013), The relationship between

customer satisfaction and brand loyalty in the fast

food industry of United Kingdom’’ dissertation

submitted to Royal Docks Business School,

University of East London

25. Ng, Y.N. (2005). A study of customer satisfaction,

return intention, and word-of-mouth

26. Oliver, R.L. (1999). Whence consumer loyalty?

Journal of Marketing 63(4 supp l1):33-44.

27. Oliver, R.L. (2014). Satisfaction: a behavioral

perspective on the consumer. New York:

Routledge.

28. Fazal, O., & Kanwal, S. (2018). An Empirical

Study of Effect of Services and Product Design on

Repurchase Behaviour of Consumers of Fast Food

Restaurants of Pakistan, International Journal of

Scientific and Research Publications, 8 (1),

January 2018, pp 36-49.

29. Rozekhi, N.A., Hussin, S., Siddiqe, A.S., Rashid,

P.D., & Salmi, N.S. (2016). The influence of food

quality on customer satisfaction in fine dining

restaurant: Case in Penang. International Academic

Research Journal of Business and Technology 2(2),

45-50.

30. Shahzad, K., Majid, H. S., & Fahad, Y. (2013).

Determinants of Customer Satisfaction in Fast

Food Industry A Study of Fast Food Restaurants

Peshawar Pakistan. Studia Commercialia

Bratislavensia, 6(21), 56-65.

31. Shankar, V., Smith, A. K., & Rangaswamy, A.

(2003). Customer satisfaction and loyalty in online

and offline environments. International journal of

research in marketing, 20(2), 153-175.

32. Shinde, R., Chavan, P., & Ali, M. M. (2018).

Assessing The Role Of Customer Satisfaction In

Attaining Customer Loyalty: A Study Of Fast Food

Restaurant In Kolhapur City. International Journal

of Multidisciplinary Research. 8. 30-40.

33. Praxedes, S. G. S. F. (2016). Domino‟s Pizza

Portugal- A Case Study on the Price Disclosure

strategy of a Late Entrant, Dissertation submitted to

Catolica- Lisbon School of Business & Economics,

Universidade Catolica Portuguesa.

34. Singh, J., & Sirdeshmukh, D.J. (2000). Agency and

trust mechanisms in consumer satisfaction and

loyalty judgments. Journal of the Academy of

Marketing Science 28(1),150-167.

35. Sulek, J. M., & Hensley, R. L. (2004). The relative

importance of food, atmosphere, and fairness of

wait. Cornell Hotel and Restaurant Administration

Quarterly, 45 (3), 253-247.

36. Phan, T. A., & Nguyen, T. H. T. (2016). An

analysis of factors impact on customer satisfaction

in Vietnam Restaurants: Case of fast food

restaurants. International Journal of Business and

Management Review, 4(6), 1-17.

37. Tzeng, G. H., & Chang, H. F. (2011). Applying

Importance- Performance Analysis as a service

quality measure in food service industry. Journal of

Technology Management & Innovation, 6(3), 106-

115.

38. Mohideen, K. U., & Suresh, R. Comparative Study

on Consumer Satisfaction towards Select Branded

Quick Service Retail Outlets with Special

Reference to Chennai City. International Journal

of Engineering and Management Research, 6(6)

November-December 2016, pp 81-86.

39. Gaffar, V. (2007). Customer Relationship

Management and Marketing and Public Relations.

Bandung: Alfabeta.

40. Vimala. P. (2020). A Comparative Study between

Domino‟s and Pizza Hut, International Journal of

Business Management & Research (IJBMR)

(Vol.10, No. 1), pp 1-8.

41. Winder, R. E., & Judd, D. K. (1996).

Organizational orienteering: Linking Deming,

Renjith Kumar. R & Afrah Al Darrai Rashid Al Darrai; Sci Res Jr Eco Bus Mgn.; Vol-1, Iss-2 (Aug-Sep, 2021): 28-38

39

Covey, and Senge in an Integrated Five Dimension

Quality Model. In: Proc. ASQC Seventh National

Quality Management Conference Transactions.

American Society for Quality, America.

42. Wong, A., & Sohal, A. (2003). Service quality and

customer loyal perspectives on two levels of retail

relationships. Journal of Services Marketing, 17(5),

495-513.

43. Yuen, E. F., & Chan, S. S. (2010). The effect of

retail service quality and product quality on

customer loyalty. Journal of Database Marketing

& Customer Strategy Management, 17(3), 222-240.

44. Oman Daily, October 22,2020

45. Alpen Capital, GCC Food Industry Report, 2019.

46. Aaron Allen Associates, 2013

47. Oman Daily, September 15th

, 2017, Eating out

makes you fat.