Chapter 1

INTRODUCTION

Rationale of the Study

When an organization or a company wants to establish a stronger foothold in the market,

an assessment of customer satisfaction is an important thing to focus. Customer satisfaction is a

big help in order to test whether the company meet or surpass a customer’s expectations.

Knowing the level of customer satisfaction in every firm is a must. In this way, the company will

know which areas to improve, change and maintain. Having a good customer satisfaction is the

main reason why a company still exist in a long period of time. Mainly, customer satisfaction is a

way which can lead to drastic boost in sales and dominance in a targeted market. It is most

effective when you exceed your customer’s expectations.

According to Bateson and Hoffman, Customer satisfaction is the result of the correlation

between a customer’s assumption and a customer’s feelings. By way of explanation, customer

satisfaction is identified as the distinction between assumed quality of service and the customer’s

involvement or feelings after having perceived the service. Customer satisfaction depends on

such dimensions as assurance, responsiveness, reliability, empathy and tangibles, and further

components such as personal, price and situational factors that may arise as the service quality.

In the global context, customer satisfaction was declared as a business age. Nowadays,

everybody sees business is going fast. Customers are the pillars of the business. Without

customers, a business is not able to run successfully. So, this topic shows the relation between

the business company and the customers. Service receivers can be restaurant managers,

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customers, or shopkeepers and so on. But to make the customers satisfied is the main goal of the

company. In short, a relation can be defined as it is an ongoing conversation with a customer in

which the customer evaluates the products offered by the company. The manager as well as the

staff of the restaurant should know the view of the customers whether the customers are satisfied

with the product or not. If not, then the manager needs to have a conversation with the customers

and listen to the existing questions and concerns and should make the improvements as soon as

possible. (Ramachandran, 2006.)

Arano’s Restaurant strive to give the customers the best quality of food and service to

assure that the restaurant is able to meet the customer’s expectations. Since Arano’s is a Spanish

restaurant located in Cebu City, the restaurant made sure that the foods being served can cater

the Filipino taste. The Arano’s restaurant did adjust the savors of the food perfect for the taste of

the Filipinos. Moreover, the restaurant gives the customer’s a priceless experience by dining in a

beautiful garden restaurant.

In order to know whether Arano’s Restaurant is doing good with the food and services,

the researchers will conduct a survey to comprehend the level of satisfaction of the customers.

With this, it would be a great help for Arano’s to be aware on which areas should the restaurant

improve, change and maintain. To further investigate the challenges of the restaurant, the

researchers opt to use the following frameworks: RATER Model & 7P’s.

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 THE PROBLEM

Statement of the Problem

This study aims to determine the level of effectiveness of the customer satisfaction in

Arano’s Restaurant in Cebu City. The research aims to study the specific objectives:

1. Describe the customer profile, in terms of:

1.1 Demographic:

1.1.1 Age

1.1.2 Gender

1.1.3 Nationality

1.1.4 Occupation

1.1.5 Civil Status

1.1.6 Location

2. Identify the products and services offered by Arano’s Restaurant.

3. Determine the level of customer satisfaction of Arano’s Restaurant, in terms of:

3.1 5 Dimensions of Service Quality

3.1.1 Reliability

3.1.2 Assurance

3.1.3 Tangibility

3.1.4 Empathy

3.1.5 Responsiveness

3.2 Marketing Mix (7P’s)

3.2.1 Product

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 3.2.2 Price

3.2.3 Place

3.2.4 Promotion

3.2.5 Physical Evidence

3.2.6 People

3.2.7 Process

3.3 SWOT

3.4 Gap Analysis

4. Describe the opportunities and challenges faced by Arano’s Restaurant.

5. To proposed recommendations to improve the level of effectiveness of customer

satisfaction in Arano’s Restaurant in Cebu City based on the findings of the study.

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Significance of the Study

The study focuses on the customer satisfaction of Arano’s restaurant. The purpose for the

study to know the feedbacks of the customers that are being serve. It also helps the company to

know what they will improve. It will help the researchers to solve their negative side.

The Company

The study is going to be a room for improvements where the company will know which

areas to improve, change and maintain. This study will guide the restaurant on how to gain

customer loyalty.

The Researchers

The researchers will acquire more knowledge about customer satisfaction. The study is

going to be a great help for the researchers if one will venture into a restaurant business.

The Future Researchers

The study will serve as a basis for references of the future researchers.

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 DEFINITION OF TERMS

Arano’s Restaurant: An authentic Spanish restaurant located in Cebu City catering the Filipino

taste.

Assessment: An evaluation of how satisfy the customers are.

Assurance: The knowledge and courtesy of employees and the ability to convey trust and

confidence towards the business and customers.

Customer Satisfaction: A term that describes the feeling of fulfillment of the customers in

Arano’s Restaurant.

Effectiveness: The degree to which level of success in satisfying the customers.

Empathy: The procurement of caring, individualized attention to customers.

Marketing Mix: A marketing tool that businesses use for the purpose of generating effective

decision making in order to position the services given in the right way.

Reliability: The ability of the restaurant to perform the promised service with loyalty and

accuracy.

Responsiveness: The willingness of the employees and restaurant management to help

customers and to provide prompt service.

Satisfaction: Refers to the reaching of expectations or needs of a customer.

Tangibles: The appearance of physical facilities, equipment, and personnel in the restaurant.

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 Chapter 2

THEORETICAL BACKGROUND

Review of Related Literature

The question is not how satisfied the customers are, but how emotionally attached the

customers are to the brand. Notable researchers such as Daniel Kahneman, Richard Thaler,

Robert Shiller, Angus Deaton, George Loewenstein, and many others have long argued that only

30% of human decisions and behaviors are actually driven by rational considerations which

means that more than two-thirds of consumer loyalty and spending decisions are based on

emotional factors. If that is the case, measuring customer satisfaction as a metric for determining

customer loyalty only goes part of the way of getting to the truth.

Over the decades into adulthood and old age, society and culture shape and molds a

person’s behavior. Society influence perception, learning, motivation, attitude, personality, and

the human mind. There have also been consistent references on the part that social influences

play in comparison with genetic, inherited characteristics. There is no hesitation that how and

where an individual is born and raised, into which family, which social class will make a great

difference to an individual’s style of living and practice.

Almost entirely in any service, establishing a customer relationship is one approach for

exceeding service expectations. The United States Automobile Association (USAA), a provider

of insurance to military personnel and the military personnel’s dependents, exhibits how a huge

company that seldom has face-to-face interactions with its customers can awe and glee them with

its personalization of service and knowledge of the customer. Using a state-of-the-art imaging

system, all USAA employees can access any customer’s entire information file in seconds,

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giving them full knowledge of the customer’s history and requirement and the current status of

the customer’s recent interactions with the company.

Another way to outstrip expectations is to knowingly underpromise the service to

increase the likelihood of exceeding customer expectations. The strategy is to underpromise and

overdeliver. A final way to exceed assumptions without raising them in the future is to position

unusual service rare rather than the usual. (Zeithaml, V., Bitner, M., Gremler, D., 2009)

Customers Satisfaction

Customer satisfaction is the result of the correlation between a customer’s assumption

and a customer’s feelings. By way of explanation, customer satisfaction is identified as the

distinction between assumed quality of service and the customer’s involvement or feelings after

having perceived the service. Customer satisfaction depends on such dimensions as assurance,

responsiveness, reliability, empathy and tangibles, and further components such as personal,

price and situational factors that may arise as the service quality. (Bateson & Hoffman, 2000.)

Fulfilling the clients involves a most vital position in business management. Customer

Satisfaction plays a vital and basic part as it manages clients by addressing their needs and needs.

The pith of association is the client not the item should be the heart of the whole business

framework. It accentuates on client arranged organizations. Fulfillment of a client is basic to the

point that it can't be considered as a separate capacity. It is the way entire business seen from the

perspective of it's last results. (Projects Kart,2010)

Businesses monitor customer satisfaction in order to determine how to increase the

customer base, customer loyalty, revenue, profits, market share and survival. Although greater

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profit is the primary driver, exemplary businesses focus on the customer and the experience with

the organization. The company work to make the customers happy and see customer satisfaction

as the key to survival and profit. Customer satisfaction in turn hinges on the quality and effects

of the customer’s experiences and the goods or services the customer receives.

No business venture can exist without its clients. It is a typical adage that "it requires five

times more exertion and expense to increase one new client as it takes to keep up one current

client". It is consequently basic that a ceaseless examination of an organization's nature of

administration be a piece of its framework to guarantee that it keeps up a decent number of

faithful clients and in this manner maintain its business sector position. (Victoria and Paragua,

2010)

Usefulness of Customers Satisfaction

Customer satisfaction helps customers to communicate the needs straight to the sellers.

Customer satisfaction helps the company learn about the business’s strengths and weaknesses.

Through it, business holders can make the progression. Customer satisfaction also helps set

appropriate resources for eventual strike or satisfaction. Furthermore, it supports to show

calmness about making better quality of products and services to both employees and customers.

Similarly, customer satisfaction gives more vision into the sources of frustration and areas

desiring progression. Lastly, customer satisfaction helps to accommodate a system for informing

management of problems or situations requiring actual promotion. (ICR, 2011.)

Customer satisfaction is one of the basic opportunities which help to run, to improve

business and profit of the company, and especially save the loyalty of its customers. Good

service is a result of organized corporate culture, which can be considered as a kind of social

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culture in general. Setting the values of a generalized trend of activity, rules, regulations and

standards concretize this direction. In theory parts are described five determinants of good

service quality and customer perception of service measuring. The intension of the research

study was to find out what customers think about company’s service quality and if customer

satisfaction level is good enough to attract more consumers and save those who have been loyal

to the company for years. (Karatepe M., 2013)

Influence of Customers Satisfaction

Customer satisfaction differs depending on the situation and the product or service. A

customer maybe satisfied with a product or service, an experience, a purchase decision, a

salesperson, store, service provider, or an attribute or any of these. Some researchers totally

avoid “satisfaction” as a measurement objective because it is “too fuzzy an idea to serve as a

meaningful benchmark.” Instead, the researchers focus on the customer’s entire experience with

an organization or service contact and the detailed assessment of that experience.

Customer satisfaction is a highly personal assessment that is substantially influenced by

individual expectations. Some meanings are based on the observation that customer satisfaction

or dissatisfaction results from either the confirmation or disconfirmation of individual

expectations regarding the product or service. To avoid difficulties stemming from kaleidoscope

customer expectations and differences, some experts urge business firms to “focus on a goal

that’s more closely linked to customer equity.” Instead of asking whether customers are satisfied,

they encourage companies to determine how customers hold them accountable. (Center for the

study of social policy, 2007)

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Customer Loyalty

In this essay, the researchers aim to debunk the long-held belief that customer satisfaction

research is the one and only measure to determine customer loyalty. In fact, a customer

satisfaction score is nothing more than a snapshot of how customers feel about the products and

services at a given point in time. Tomorrow is another day and there is a big possibility that the

minds of the customers may change if one of the business’ competitor offers a better deal. If the

bribe or incentive is big enough, even satisfied customers will abandon the brand in droves. The

reason for this is that merely being satisfied, or even very satisfied, is a rational state of mind –

there is little or no emotion attached to that mindset. So any customer loyalty assumed from their

level of satisfaction alone would be misplaced.

One of the most ideal approaches to listen to the immensely imperative voice of the client

is by actualizing consumer loyalty reviews. Doing as such can give the criticism about the

association's client benefit that the company generally may miss. Consumer loyalty overviews

permit organizations to see the unfiltered impressions, whether positive or not really positive,

about the administration the client encounters. Such top to bottom information gives the critical

data that is fundamental to enhancing items and administrations. Study comes about likewise

give organizations the chance to pick up a superior comprehension of the clients themselves and

the client’s changing needs and observations. (ICMI EDITORS, 2011)

Consumer loyalty is characterized as a client's general assessment of the execution of an

offering date. This general fulfillment has a solid beneficial outcome on client dependability

aims over an extensive variety of item and administration classes. (Gustafsson,2005)

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 Therefore, consumer loyalty, along these lines, ought not to be mistaken for client

dedication. Clients are faithful since these clients are candidly connected to the business’ image;

a pay off by a rival as a superior offer or a solitary bombshell in the administration conveyance

may well be the reason for a generally fulfilled client to forsake the company’s image, while a

dedicated client is rock strong and has the passionate ability to see past the surprise and proceed

with steady backing for the company’s image. (Theo Muller, 2010)

Accomplishing an abnormal state of consumer loyalty is an objective shared by every

single little business. Fulfilled clients regularly get to be faithful, rehash clients, which are

amazingly profitable resources for a business. It costs a great deal less to serve a present client

than to draw in another one through showcasing strategies, for example, regular postal mail or

publicizing. The procedure of consumer loyalty starts certainly before a buy is made at the

underlying contact with the client. Sales representatives ought to be prepared to listen mindfully

to clients and discover what the requirements are. At the point when a businessperson completely

comprehends a client's needs, the business person is in a position to prescribe the item or

administration that best addresses these issues. Fulfilled clients are the individuals who

subsequent to making the buy, are persuaded that the client picked that specific item or

administration, not that a businessperson constrained it on the clients. (Hill, 2016)

Consumer loyalty or disappointment has turned into an imperative issue for marketing

practitioners. Specifically, experts and academicians had noticed that essentially putting

resources into more prominent administration conveyance may not give back the expense of the

extra venture. Part of the issue was that clients' reaction to administration augmentations can be

nonlinear, and fulfillment and disappointment edges may not happen at the same point. The

creators proposed a strategy for breaking down the complex behavior in a way that lead to the

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advancement of more exact administration systems through a comprehension of the connections

among client exchange costs, satisfaction, and purchase loyalty. The company utilized a

catastrophe model to portray an administration dependability client reaction surface. (Oliva,

Oliver and MacMillan, 1992)

Customer satisfaction, therefore, should not be confused with customer loyalty.

Customers are loyal because they are emotionally attached to the brand; a bribe by a competitor

in the form of a better offer or a single upset in the service delivery may well be the cause for an

otherwise satisfied customer to abandon the brand, whereas a loyal customer is rock solid and

has the emotional capacity to see beyond the upset and continue his unwavering support for the

brand. (Muller, 2010)

The current financial conditions make consumer loyalty considerably more vital. In any

case, don't commit the error of imagining that exploration can just let the business know what

happened previously. Without a doubt, the report-card perspective has some worth, yet the

genuine force originates from bits of knowledge that give direction to what's to come.

Examination can able the business know which clients are truly fulfilled, and why. Keep in mind,

the vast majority of clients are quiet. The candid client is by and large not run of the mill, and

fulfilling the squeaky wheel may not be useful generally speaking, truth be told, it might be

counterproductive. Imagine a scenario in which the business improves the offerings to bolster a

client whose hot catches aren't like the business’ present great clients. What happens if cutbacks

constrain the business to focus on less clients? Realizing what the business ought to improve

bolster great clients is for the most part the best approach. (5 Circles Research, 2010)

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 Measuring consumer loyalty is a generally new idea to numerous organizations that have

been engaged solely on pay explanations and accounting reports. Organizations now perceive

that the new worldwide economy has changed things until the end of time. Expanded rivalry,

swarmed markets with little item separation and years of consistent deals development took after

by too many years of smoothed deals bends have demonstrated to today's sharp rivals that the

center must change. Contenders that are flourishing in the new worldwide economy perceive that

measuring consumer loyalty is critical. Just by doing as such would they be able to clutch the

clients have and see how to better draw in new clients. The contenders who will be fruitful

perceive that consumer loyalty is a basic key weapon that can bring expanded piece of the pie

and expanded benefits. The issue organizations face, be that as it may, is precisely how to do

every one of this and do it well. The business has to see how to evaluate, measure and track

consumer loyalty. Without an unmistakable and exact feeling of what should be measured and

how to gather, examine and utilize the information as a vital weapon to drive the business, no

firm can be powerful in this new business atmosphere. Plans built utilizing consumer loyalty

research results can be intended to target clients and procedures that are most ready to expand

benefits. (Cacciopo,2000)

Employee’s hospitality

Saying “thank you” and giving the reasons, listening carefully, apologizing, and showing

empathy is not enough to manage the complaints to improve customer satisfaction. Offering

something is also needed for managing complaints. It means that its better for the business

organizations if the business always try to offer something to an unsatisfied customer. Such as:

refunds, a discount on different items, or replacing it and so on. (Business Blogs Hubs 2012.)

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 Similarly, to apologize is also another point for managing customer complaints to

improve customer satisfaction. It is necessary to convey the manager’s apology to the customers

in a good way. When the customers are complaining to the organization, then it is not time for

giving reasons, justification or excuses; the manager must apologize. (Stepcase Limited, 2005.)

The hospitality industry as a whole, service quality leads to customer satisfaction which

has stood an importance throughout the market. It has been identified as one of the most

effective means of building a competitive position and improving organizational performance.

Service quality is a focused evaluation that reflects the customer’s perception of specific

dimensions of service, reliability, responsiveness, assurance, empathy, tangibles, satisfaction on

other hand, is more inclusive: it is influenced by perceptions of service quality, product quality,

and price as well as situational factors and personal factors. Service quality affects customer

satisfaction by providing high quality performance. Customers today apprehend a very high

general level of service in hospitality, tourism, and leisure. The accomplishment of competitors

in these fields will thus be actuated by strategies concentrating on quality of services to add

value, as argued to product or price differentiation. Service Quality Management in Hospitality,

Tourism and Leisure focuses approaches and strategies that will augment the distribution of

services, and supplies fair and understandable annotation of theoretical ideas and their practical

operations. (Kandampully, Mok, & Sparks, 2001.)

Perceptions and Customer behaviors

Perceptions of the measurements of service quality are seen to be an element of a client's

earlier desires of what will and what ought to come to pass amid an administration experience,

and additionally the client's latest contact with the administration conveyance framework. These

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perceptions of value measurements frame the premise for an individual's general quality

observation, which thus predicts the individual's expected behaviors. (Boulding,1993),

Based on that knowledge, firms must raise the desires of customers to expand support

which effectively must meet these desires. Gone into the precursors to customer desires of low

margin, high-volume service firms, and gave administrative implications, depicting how to deal

with an administration firm, effectively working on low edges effectively. (Clow and Biesel,

1995)

Coping up with customer’s complaints

There are a few cases in which some companies think that customer complaints are not

such a big matter that it affects the company. Instead of that, the company should make use of

thecomplaints as an opportunity to improve the customer services or what the company does and

how the company should do it. If complaints are viewed as friends, complaints will be welcomed

with open arms. It also helps to take into consideration for future improvements. Complaints play

a vital role to get the success in the business. Organizations can get stuck without business goals.

So, the complaints help identify the problems and what should be taken into the consideration in

order to get success into the next level. In reality, complaints check for organization and help the

organization identify ways to grow, develop and improve. A successful organization has well-

structured management processes. To run the organization smoothly and effectively, all the

problems should be solved that arise in the organization. Complaints help to test the internal

system in the organization. Similarly, it helps to test the customer service skills of trained

employees and it helps to identify the weak areas for future training. (Thriving Small Business,

2011.)

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 Preventing future mistakes is a very important point in every organization. The business

organization should make it clear that the complaints are not happening due to the failure of the

employees, instead of that it is occurring due to the organization’s strategies. Do not blame the

employees. In case employees are blamed, the employees will not be motivated to work for the

organization. (Barlow & Moller, 2008.)

Maintaining satisfied Customers

First tip on the list is “Always Focus On the Second Sale”. The main deal with any client

is dependably the hardest and generally costly. In any case, the second is the most vital in which

second deal is evidence that the business had conveyed on the guarantees made amid the primary

deal. In all actuality, go out every day and offer guarantees to individuals in return for the cash.

The business guarantee that the item or administration will give the clients certain advantages

that are not presently appreciating. When clients return and purchase once more, these clients are

putting a blessing on the business’ offerings and affirming that the business delivered on

guarantees.

Second, Customer service must be consistent on all levels in our highly busy modern

lives, seldom do clients depend entirely on an organization's call focus to determine an issue.

Rather, clients are prone to go to the business’ site, visit online networking pages, or utilize

advanced gadgets to look for guidance on the most proficient method to take care of the issue.

Client’s administration approach, along these lines, should be reliable over the greater

part of the client’s touch points. Site design, FAQ area, online specialists, and social networking

pages ought to be set up to react to client issues. The trap is to make each touch point a

consistent ordeal for the clients, so whether a client go to the site, get the telephone, or send

17
organization a tweet, issues are tended to with the same approach–clients shouldn't feel like

cooperating with an alternate organization over the different touch points.

Since satisfied customers are essential to the long term achievement of practically every

business. These customers are vital not just in light of the fact that a customer tend to make

progressively (and bigger) buys, but also on the grounds that a customer can get to be envoys for

the organization, sharing positive encounters through online audits and in discussions with

companions, family and partners. The more satisfied customers a firm have, the more probable it

is that the business leads and prospects are listening to great things about the business. Building a

high state of consumer loyalty requires responsibilities in a few areas, including item and

administration quality, representative preparing and client support framework, just to give some

examples. Organizations can enhance outcomes in these ranges, and eventually enhance general

consumer loyalty, by encouraging coordinated effort all through the association. (Howard,2016)

Satisfied clients are the individuals who don't have exceptional negative issues

concerning the business at the forefront of the client’s thoughts. This doesn't mean the world has

dependably been great. Here and there things might not have gone good. In every single such

circumstance the company should allow the clients to converse with the business. Thoughtful

listening to clients is key. Online studies give a way where clients get an opportunity to get the

client’s side of the story without being interfered. A second key is finish. Appropriate

apparatuses of examination will help the business section the clients into various classifications

in light of what the business have to do consequently. Past comprehension the drivers behind

faithfulness and satisfaction of the clients, can get profit by the insight of the masses by

approaching the customers for their thoughts and spotting designs in their input. Spotting such

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patterns in front of rivalry could offer the business a huge favorable position. (ZarcaInterActive,

2016)

Without reviewing the clients consistently and assortment of ways is basic part

maintaining a fruitful business, paying little respect to your industry, item or administration.

Reviews measures fulfillment or disappointment with the company’s offerings, determine basic

needs and offer a chance to adequately convey and fabricate really individual associations with

the customers. When it is appreciated, both recognition and feedback keeping in mind the end

goal to satisfy the genuine needs of these clients, assemble important steadfastness that can make

buzz around the business brings energetic, exceedingly qualified referrals. (Rogers, 2012)

Nobody would question the significance of keeping clients satisfied. In a little

organization it is exceptionally apparent if clients are disappointed. Individuals gripe specifically

to the proprietor. The circumstance is altogether different in a vast organization. Clients are

managed by a wide range of individuals. There are various touch focuses for any single client

which could bring about disappointment – the business representation, the client administration

group, the conveyance individuals and the fund division. The directors of the organization

without a doubt have several clients, conceivably scattered far and wide, and the main way the

directors can know for beyond any doubt how satisfied the customers are, is via completing a

review. This carries with it various potential issues and the review itself is the minimum of these.

Measuring consumer loyalty is simple contrasted with the assignment of executing changes. An

excessive number of consumer loyalty ponders gather dust in light of the fact that there is no

instrument for transforming the statistical surveying discoveries into unmistakable changes.

(Hague, P., 1992)

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Customers Satisfaction Classification

The customer satisfaction classification has the fundamental position in promoting

hypothesis and premise on reason that the benefit is made through procedure of fulfillment of

shoppers requests i.e. accomplishment of their fulfillment. Looks into constantly affirm a critical

relationship amongst fulfillment and rehashed purchasing, more noteworthy brand reliability and

spreading a positive assessment of the item. The model of shopper's purchasing choice portrayed

in this paper comprises of five back to back periods of customer's conduct through the

purchasing procedure: item seeing stage (offered item with every one of maker's elements of

aggressiveness from the purchaser's perspective), esteem estimation stage (weighting advantages

and gives up), looking at the estimations of various items and basic leadership stage (contrasting

option choices), activity stage (acknowledgment of the choice) and buyer's perspective in the

wake of purchasing activity stage (fulfillment with the item). There are a few viewpoints, which

ought to be mulled over from the seller's perspective keeping in mind the end goal to execute

effectively the idea of consumer loyalty. (Dubrovski,2007)

Organizations have since quite a while ago accentuated touch points the numerous basic

minutes when clients interface with the association and its offerings on their approach to buy

many. In any case, the restricted spotlight on augmenting fulfillment at those minutes can make a

contorted picture, recommending that clients are more satisfied with the organization than the

clients really are. It additionally redirects consideration from the greater and more essential

picture: the client's end-to-end venture. (Duncan and Jones, 2013)

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Strong and faithful Client base

With one of the key variables of turning into a fruitful business and to secure an

organization's life span is to make a strong and faithful client base. A strong client base is the

business’ springboard for encouraging new clients. Present clients are basically the "voice" of the

items or administrations. Whether administrations are putting forth an item audit, finishing a

consumer loyalty study, or giving informal criticism to potential clients, the clients are advancing

the organization's items and administrations. Since the voice of clients is so imperative to the

organization's prosperity, it is essential to keep the clients fulfilled. How would the organization

keep the clients fulfilled? Let's be honest. Inside each of the objective markets there are

numerous contending organizations simply like moving in the direction of the same objective.

On the off chance that the business needs the clients to keep on buying the items or

administrations as opposed to changing to the opposition, the business should utilize propelled

instruments gave by an online review programming supplier that will permit the business to

make successful consumer loyalty overviews to gather client input. Input can be utilized to better

shape the business’ key and advertising arranges. (Wyse,2012)

5 Dimensions of Service Quality and other tools

The article describes a study conducted to explore differences in rater severity and

consistency among inexperienced and experienced raters both before and after rater training.

Sixteen raters (eight experienced and eight inexperienced) rated overlapping subsets of essays

from a total sample of 60 essays before and after rater training in the context of an operational

administration of UCLA’s English as a Second Language Placement Examination (ESLPE). A

three-part scale was used, comprising content, rhetorical control, and language. Ratings were

analyzed using FACETS, a multi-faceted Rasch analysis program that provides estimates of rater

21
severity on a linear scale as well as fit statistics, which are indicators of rater consistency. The

analysis showed that the inexperienced raters tended to be both more severe and less consistent

in their ratings than the experienced raters before training. After training, the differences between

the two groups of raters were less pronounced; however, significant differences in severity were

still found among raters, although consistency had improved for most raters. These results

provide support for the notion that rater training is more successful in helping raters give more

predictable scores (i.e., intra-rater reliability) than in getting them to give identical scores (i.e.,

inter-rater reliability). (Berry, L., Parasuraman, A., 1990)

Another positive thing to have according to Taylor, is for better understanding of how

purchasers' quality discernments and satisfaction judgments added to extreme buy goals kept on

speaking to one of the key difficulties confronting service advertisers. Using the regression

model, the conventional approach was to utilize direct measures of these developments to

recognize the added substance commitments of value recognitions and satisfaction judgments as

free variables to buyers' expressed future buy goals as a reliant variable. A structure was

proposed and experimentally accepted in a multi-industry study, to help service advertisers in

distinguishing potential higher-request elements and their collaborations in their own particular

models of buyer basic leadership in administration settings, outlined consumer loyalty and

administration quality as prescient markers of customer loyalty. (Taylor, 1997)

The book about “Linking Customer Satisfaction to Services Operations and Outcomes"

by Bolton and Drew 1994 shows that built up structures are depicted as hypothetical connections

among administration operations, client evaluations and market results. Associations have

traditionally overseen administrations by controlling, designing and operational properties and

watching market results.In the past years, consumer loyalty appraisals have turned into a vital

22
part in this process. Thus, supervisors are distinctly keen on the impact of administration changes

on consumer loyalty, client conduct and incomes. In the past years, consumer loyalty appraisals

have turned into a vital part in this process. Thus, supervisors are distinctly keen on the impact of

administration changes on consumer loyalty, client conduct and incomes. In a dynamic system,

consumer loyalty with satisfaction with particular service experience relies on upon previous or

contemporaneous mentalities about service quality and client post-utilization dispositions depend

on satisfaction. (Bolton and Drew,1994).

SWOT

Business in the Modern Age

During the modern age everybody has seen that business is rapidly growing day by day

and concerning with business there are always two parties called buyers and sellers, and buyers

are concerned with quality, and sellers are always concerned with money. Today's world is

dependent on business end engagements in at least three major activities. On this regards, many

scholars have argued over this matter and said that the first activity is production, which involves

making a product or providing a service. The second is manufacturing, where firms create

products finally, customers purchase to satisfy needs, whereas service firms use the skills of

employees to offer activities and assistance to satisfy customer needs. (Burrow & Everard,

2004.)

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 In the global context it was declared as a business age. Nowadays, everybody sees

business is going fast. Customers are the pillars of the business. Without customers, a business is

not able to run successfully. So, this topic shows the relation between the business company and

the customers. Service receivers can be restaurant managers, customers, or shopkeepers and so

on. But to make the customers satisfied is the main goal of the company like the restaurant. In

short, a relation can be defined as it is an ongoing conversation with a customer in which the

customer evaluates the products offered by the company such as the Nepali restaurant in Helsinki

while talking about the restaurant, then manager as well as the staff of the restaurant should

know the view of the customers whether the customers are satisfied with the product or not. If

not, then the manager needs to have a conversation with the customers and listen to the existing

questions and concerns and should make the improvements as soon as possible. (Ramachandran,

2006.)

Customers knowledge

Customers nowadays are highly educated than in the past few years. Since the people are

well educated today, value of products, the pricing strategy and product quality and with

knowledge of what should the customers received for the money. Customers make it more

extremely difficult for less than a reputable business to survive in today's market. The

customer's satisfaction about service quality needs to abreast on current procedures on what the

company competitor's can offer. The pricing strategy also varies on what the customers can

benefit. In product quality, customer's satisfaction depends on what the customer received, if it's

beneficial or worth lasting. Serving the customers that can surely satisfy them can bring more

profit or income for the company. Good service quality means good prospects for the company

in upcoming years. Building a good reputation on having a highly recommended service is a

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good stand for the company in a highly competitive market nowadays. The need of a good

service quality is not only for the benefit of the customer but at the same time creates a better-

trained and better-educated customer service experts that can give the company a good stand in

today’s competitive market.

With the help of customer service and satisfaction impacts numerous parts of the

business. The general business sector opportunity, piece of the overall industry, income and

deals, costs, and to wrap things up to the primary concern benefit. In the accompanying pages,

the management can perceive how each of these are affected and why it is basic as an

entrepreneur to guarantee that Customer Service and Satisfaction is a key element of the business

operations generally as are publicizing, advertising, deals, and creation. Satisfied clients can

draw closer accurately, be a nonstop stream of new clients and referrals. This has a tendency to

be the most reduced cost development technique connected by numerous fruitful organizations.

Whereas disappointed clients can extremely undermine showcasing programs through informing

potential clients regarding the negative encounters with the business. Satisfied clients can be a

key in helping the business reveal new income and benefit open doors for the business by

prescribing items, administrations, components, and improvements that can put the business

essentially in front of the opposition. Satisfied clients will assume the best about the business

when something goes off-base. This gives another opportunity, which would not do in the event

that the clients were hardly fulfilled from the clients before purchasing encounters with the

organization. Satisfied clients will let the management know what the business is doing

incorrectly, cover the rivals are doing well or wrong, tell the most noteworthy and best use for

the items and administrations and help position and market them all the more adequately.

(Marketing at Work,2007)

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Role of Promotions

If an organization routinely publicize in magazines, daily papers, TV and on the radio to

interface with people in general. While commercials surely, verbal exchange is likewise a

significant device. In the event that a client is fulfilled by the organization, this client will

probably prescribe the organization to a companion. In any case, on the off chance that the client

is not, the client will talk adversely and could conceivably hurt the business. The client may not

generally be correct, but rather the client needs to be content. return clients regularly returned in

light of the fact that the clients appreciated working with the organization or were fulfilled by the

administration the clients got the first run through. It is uncommon for a client to pay for an

administration when the client was disappointed the first run through, unless the area is small to

the point that this organization is the one and only a client can work with. And still, after all that,

the business needs the clients to be fulfilled so these clients won't get the message out to outside

areas in the event that the organization includes new branch areas. (Vaughn,2007)

Marketing Mix (7p’s)

“Sustaining an audience is hard.” Bruce Springsteen once said. “It demands a consistency

of thought, of purpose, and of action over a long period of time.” Springsteen was talking about

the route to music stardom, yet Springsteen’s words are just as applicable to the world of

customer experience. Consistency may be one of the least inspirational topics for most managers.

But it’s exceptionally powerful, especially at a time when retail channels are proliferating and

consumer choice and empowerment are increasing.

With the help of the 7p’s for better customer satisfaction in the restaurant is mentoring

the staffs to search for customer opportunities not as a matter of course connected with the

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customer’s eating background.These opportunities almost always lead to a bigger tip and a repeat

customer who will request that server’s station.Help the staffs comprehend that customers who

encounter better customer service comeback, tell companions and post it online networking

stages that will create more referrals and be one of the business’ loyal customers. By also

recognizing that each of the workers has a potential quality which the business can move better

customer service. (Homsey, 2013)

Types of Consistencies

To supplement these facts there are three types of consistencies: First is the Customer-

journey consistency which is well understood that companies must continually work to provide

customers with superior service. The fact is that consistency is the most important predictor of

overall customer experience and loyalty. Second, Emotional consistency is found to be the

biggest drivers of satisfaction and loyalty in a majority of industries surveyed. Consistency is

particularly important to forge a relationship of trust with customers. Lastly is the

Communication consistency, it is very important to keep the business’ promises made and kept.

What’s also critical is ensuring that customers recognize the delivery of those messages, which

requires proactively shaping communications and key messages that consistently highlight

delivery as well as themes. The company should somehow be responsive in the rapid change of

technology and make use of all the means of communication in order to reach the market.

(Pulido, Stone, and Strevel, 2014)

Results of high Customers Satisfaction

Furthermore, to prove this fact as discuss in the article of Tapiol which entitles

“Customer satisfaction with returns makes good business” stated that finding a way to improve a

customer's general experience, make them feel great and further separate client’s experience

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from different brands. Easily overlooked details can have a major effect. A friendly welcome

after entering a store can make an awesome early introduction to customers doing combating the

way through deals swarms; restaurant crews can guide customers to what the customer is

searching for. And also customer conclusions of the image are framed after some time over these

channels – the business may consider to be partitioned, however clients view them as one brand

experience. It is critical for brands to convey a reliable ordeal, conveying the same brand

guarantee at every purpose of the clients. In the event that a restaurant's arrival procedure

functions admirably, first time guests will consider of returning. (Tapiol,2014)

There's no more awful approach to bring about disarray with a customer than to not have

the same desires or discernments about the administration or item the business is giving. Once in

a while, regardless of how hard the business attempt, the business and the customer will most

likely be unable to get in agreement. Clearing up customer miscommunication is vital to holding

and fulfilling a client, and in addition building up an unwavering customer base by letting them

know what to expect in the product or service offered by the company, by providing the

customers an option to make decisions, and by speaking a language that the customers can

understand. In this tips the business can have a clearer connection to the customers in dealing

and determining the customer’s perspectives in the product or service. (Catavero, 2014)

Strangely enough, eateries or college feasting offices are for the most part thought to be

in the matter of just offering sustenance. Past studies reported that eatery administration was a

mix of substantial and elusive parts. The administration experience is an independently

experienced procedure where generation and utilization exercises occur in the meantime. There

is an idea called "snapshots of truth" that happens amongst clients and the administration

suppliers. A "snapshot of truth" can be characterized as the "time and put" and the "when and

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where" the administration supplier has the chance to demonstrate the client the nature of its

administration. In this manner, what happens in these collaborations will clearly significantly

affect customer fulfillment inside administration associations. (Yuksel, 2002)

Values and ways in achieving high Customers Satisfaction

“Persistence and a little bit of referrals for the company is key in making a healthy

customer loyalty base” said Brian Tracy in Tracy’s blog about customer satisfaction. An

immediate deal to a client today can cost as much as up to a thousand dollar far as time, travel,

publicizing, lead era, and different costs is concerned. Securing a client at this expense can make

an organization bankrupt unless that client purchases over and over. The best business people

and the best organizations execute systems to obtain clients and to keep them forever. For every

company its objective must be to grow long haul client connections and afterward clutch them

despite perpetually forceful rivalry. When the company introduces a client securing and

maintenance procedure, one should accomplish more to fabricate and keep up long haul client

connections than any time in recent memory. By ceaselessly thinking as far as "clients forever,"

the accomplishment in deals will be guaranteed. Here we learn some good tips on how we build

consumer loyalty and keep clients forever.

Essentially when the company have made the client satisfied, it builds up a "brilliant

chain of referrals" for the company’s advantage. In turn this leads to the one of the most effective

technique to create referrals in today's aggressive commercial center which is “Word of mouth

advertising”. With this, it empowers or embeds clients some portion of the business power by

getting them to shed some positive feedback for the company.

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 The most imperative component of remarkable client administration is constant haste.

Fast reaction to inquiries, concerns, and request is a key measure of what number of referrals

liable to get. Also quick, nonstop client consideration are vital devices for getting referrals.

Lastly improving ones Customer Service Strategy bybuilding up a client deals and

administration procedure that empowers to get and keep clients forever. This client

administration approach does not happen unintentionally. It requires watchful arranging,

discourse, and preparing of everybody who manages your clients.

All organizations are known for how well the staffs treat their clients. All fruitful sales

representatives and organizations are known for how well clientsare treated. This must be

objective dependably. All of these tips will need sufficient action to make this plans come to

fruition for no matter how good the plan is without action it will never succeed. (Tracy, B., 2016)

Importance of Customer Experience

According to Jerry Gregoire, CIO of DELL Computers, “The customer experience is the

next competitive battleground.” In accordance to this, all business firms should focus on building

a customer experience to increase customer satisfaction in a business world where customer

acquisition costs are sky-rocketing. There are nine-game changing ideas that would help in order

to increase customer satisfaction. First, treat customers like the company’sboss. Customers are

always the first priority because the customers are the main reason why businesses exist. Second,

Focus on measuring customer satisfaction. Every now and then, the company should have a

survey or an evaluation to keep in track about the consistency of the business. Whether or not the

company are meeting and exceeding the customer’s expectations. Third, Build Customer Loyalty

to increase customer satisfaction. In this case, the business has to gain loyal customers. More

loyal customers simply mean that people are satisfied with what the business is giving. Forth,

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avoid making these customer retention mistakes. Which means that the company have to take an

immediate action when feedbacks are given. Businesses should not let customers leave the place

unsatisfied. Fifth, Set customer expectations early. In this matter, business firms should not

expect too much because there’s no better feeling than as a customer to have the expectations

exceeded. Sixth, learn how to survey the customers the right way. A customer feedback survey is

the best way to find out how satisfied the customers are, find ways to improve the product or

service, and identify customer advocates who really love the product. Seventh, Email is the best

channel to increase customer satisfaction. Now even if the customers are not with the company

personally, the firm should keep in touch with the customers always. Through emails the firm are

able to remind the customers about what are the current happenings like on-going sale. Eighth,

tap into social media to track and monitor customer satisfaction so the business can keep the

customers happy. Through social media, the management could also keep in track the feedbacks

from the customers and by there the management would be able to evaluate on which part the

business still needs to change and improve and maintain. Lastly, stats don’t lie, understand the

importance of customer satisfaction. According to Bain and Co., a 5% increase in customer

retention can increase a company’s profitability by 75%. Gartner Group statistics tell us that 80%

of the company’s future revenue will come from just 20% of the existing customers. Lee

Resource Inc. found that attracting new customers will cost the company five times more than

keeping an existing customer. These studies simply show how important customer satisfaction is

in order to keep the business still efficient in the long run. (Beard R., 2013)

Through 1992 up to the late 2000’s, Chilsholm ran online review organizations Decisive

Technology and CustomerSat. From there Chilsholm managed to gain ten consumer loyalty

lessons in 17year occupation. First, Chilsholm learned that “Opportuneness is basic to each

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client”. Regardless of the business or touchpoint, convenience of reaction is turning out to be

always imperative as a driver of general fulfillment. The reasons in which business is moving

ever speedier; holding up is disappointing; capacities to focus are declining; and quick reactions

wipe out vulnerability. Second, focus builds “fulfillment or satisfaction” in regards to that

building a single type of service but with the added benefit of quality leads to higher consumer

satisfaction.Serving one arrangement of clients well is sufficiently hard; serving a wide range of

client sets is much harder. Executives at those organizations can't be as acquainted with the

necessities of every client set;misestimate or misjudge prerequisites; and utilize valuable assets

and time exchanging off one set for another. Third, satisfaction scores change broadly among

different attributes. A 7.5 on a 10-point scale can be high for one quality yet low for another.

"Professionalism and courtesy" might be a full point higher than "how well an agent knows my

organization." Human-based aspects like these have a tendency to get higher scores than

spiritless ones, for example, documentation. Individuals are more ready to scrutinize procedures

and innovation than people. Fourth, “Benchmarks make measurements important and

noteworthy”. Independent from anyone else, a score of 7.5 passes on minimal, regardless of the

possibility realized that standard deviation is, 6. In any case, including that the significant

benchmark score is 8.1 uncovers that execution is one full standard deviation underneath

benchmark. That let us know an extraordinary arrangement.

Setting Benchmarks

Benchmarks let us all the more adequately organize ranges of change. The fifth is that

every corporate unit benefits. With today's input frameworks, groups, divisions and specialty

units would all be able to be considered responsible for the fulfillment execution and can make

prompt and focused on move when issues emerge. These undertaking wide advantages are lifting

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Customer Advocacy and its significance in associations, now and again to the workplace of the

COO. Sixth, Behavioral information is besting study information. Practices incorporate how and

when clients make buys; calls to specialized bolster; participation at instructional classes and

online courses; "Preferences" of Facebook pages; Tweets and re-Tweets; ways strolled in retail

location passageways; and non-verbal communication and outward appearances. The quantity of

ways can track these practices – including GPS, cams, movement finders, RFID labels, and a

developing assortment of small scale sensors – is soaring. Gathering practices commonly

requires no respondent participation. Since study reaction rates are falling in the meantime, hope

to see studies progressively getting to be devices to accept and translate behavioral information

instead of closures. Seventh, is to track the Market share. Centralized servers, fax machines, and

travel organizations all delighted in high consumer loyalty appraisals as the company lost market

share in the course of the most recent three decades. The last holdouts of an item or

administration are regularly the most steadfast and fulfilled.

The eight insights us to “Use various metrics”. Second to the last is Client advocacy on

prevailing fashions. These including administration quality, desires, unwaveringness, client

esteem examination, six sigma, NPS, and client engagement in the course of the most recent two

decades. Some of these have little legitimacy however make due by dint of advertising and

straightforwardness; others are thorough yet have generally couple of clients because of

multifaceted nature. The client metric that has best withstood the trial of time is- fulfillment.

Lastly Criticism can make a difference. Client criticism can enhance many choices expansive

and little: item components and situating, administration quality, staffing, association, request

administration, even mergers and acquisitions. The confirmation from numerous sources is

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overpowering: organizations that reliably measure and follow up on client criticism truly

improve. (Chisholm J., 2013)

Client Appraisals

Client administration appraisals are frequently the benchmark that organizations use to

gage how well the staffs is prepared, how upbeat and faithful clients are, and how well the staff

is addressing the requirements of clients. Whether organization depends on a client

administration study, or an estimation instrument. Taking benchmark estimations and monitoring

consumer loyalty scores is a solid approach to assess and enhance client’s administration abilities

through these 3 useful tips. “Focus on the clients, not simply issues”. Often especially when

organizations are truly busy–the client is lost and is supplanted by the issue. The client, as such,

gets to be mysterious, and client administration reps concentrate on the issue. Sadly, when this

happens, clients are not given the merit; rather, clients are rearranged through the line, with the

issue verified as "determined" or "development." To move a client administration comes nearer

from being an issue-focused way to deal with a human-focused methodology, prepare the group

to consider every client exclusively. Here is a speedy agenda to have a staff gone through: In the

event that the company have staff who is prepared to react to messages, answer to issues through

online networking, or react to discussion questions, guarantee that the customers get the same

astounding client administration preparing that in-store/in-individual reps and telephone staff

gets. Despite how clients get in touch with the business, the groups ought to build up the

aptitudes to ensure leave away with the same, positive experience.

Disappointed clients are pretty much as critical as fulfilled clients. Disappointed clients

can and will teach the firm same amount of about a client administration as the fulfilled clients.

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Ensure to listen to the displeased customers–and give a route to the clients to effectively contact

on the off chance that a customer have objections. Regardless of how great a client

administration abilities, the business can't have any kind of effect unless clients can discover the

business. Have an available spot on site for clients to get in touch with the company with issues,

and utilize consumer loyalty and follow-up studies regularly. In the event that despondent clients

have an approach to get in touch with the firm and get issue explained rapidly, odds are,

customers won't be as disappointed. (Survey Monkey)

Reaching out to the customers

According to Ritter, the sad reality about customer service is that anybody can't please

everyone. The familiar saying about the client continually being correct isn't totally exact, and

when managing a considerable measure of clients, it can once in a while be hard to give the

clients the experience that the clients are anticipating. This specific issue is particularly

hazardous if the organization has a variety of branches cooperating, as it can be hard to guarantee

that every branch is sending the same message. This ought to be the objective of every enormous

business. The genuine inquiry is the thing that message ought to be, invitingness or effectiveness,

which improves?

Stay faithful to the obligations as a matter of first importance, it's totally essential to keep

the guarantees that the business has made. In the event that the organization doesn't stay

consistent with its statement, clients will as a rule let the management think about it bigly. It's

vital to be as gracious as could reasonably be expected, but on the other hand it's critical to

ensure that the firm send the same message and convey the same level of administration no

35
matter how the business look at it. Some portion of proficient client administration is being as

predictable as could be expected under the circumstances, since individuals ache for consistency.

Be Socially Available in the present day online networking scene, clients need to have

the client’s benefit met by means of long range interpersonal communication, and should done it

rapidly. An expected 42% of customers anticipate that a reaction will request on online

networking inside 60 minutes. To give a thought of how every now and again this happens, most

organizations on Twitter just send one answer to such a request for every day, and that simply

isn't going to do the trap. On the off chance that the firm needs to keep consumer loyalty high,

should have the capacity to react to purchaser feedback rapidly and effectively. As decent as it is

to welcome clients with a grin, in the computerized age it is more essential to give them solid,

productive administration. Whether this implies augmenting online networking nearness, paying

special mind to negative client affect or enhancing general client administration experience,

unmistakably circumstances are different and business hones need to change. On the off chance

that the necessities of the shopper develop, then the prerequisites of organizations must advance

also. It could be as basic as employing a couple of specialists to watch the net for any notice of

the business or as confused as making a totally new office. Regardless of which bearing the firm

takes, it's a great opportunity to make sense of where the clients benefit needs work and begin to

deal with it. (Ritter, M., 2015)

SWOT

The discoveries both for and against SWOT investigation ought to prompt to an adjusted

perspective of the system and also yield thoughts for required hypothesis building.

Plan/strategy/approach – Utilizing the ABInform Global® database, scholastic associate checked

36
on articles were arranged showing SWOT as one of the article's key list and pursuit words.

Discoveries – The utilization of SWOT examination keeps on penetrating the scholarly

companion audited writing. Inquire about backings SWOT examination as a device for arranging

purposes. Over the previous decade, SWOT examine has concentrated on breaking down

associations for suggested vital activities. As a technique for key situating, SWOT examination

has been reached out past organizations to nations and ventures and is utilized as a part of for all

intents and purposes each distributed business case situated for business understudy

investigation. Extra utilization of SWOT is as showing apparatuses by specialists, mentors and

instructors. This paper gives a synopsis of the examination thinks about and recommends ways

for future research. Inquire about restrictions/suggestions – This paper is constrained to

dissecting reports found in a determination of scholastic associate investigated business diaries.

In any case, investigate suggestions for applying SWOT examination gives a wide range of

industry investigation in North America, Europe, and Asia. Extra confinements are the need to

connection SWOT examination to other key devices and systems for further hypothesis working,

since past research keeps on lacking quantifiable discoveries on the achievement of the SWOT

investigation. Reasonable ramifications – A crisp perspective of new bearings and usage for

SWOT investigation, and additionally other vital arranging apparatuses that can be joined with

SWOT, gives direction to specialists and arrangement producers alike. Inventiveness/esteem –

The article increases the value of the current writing as the principal synopsis of SWOT research

demonstrating its uses and restrictions. Support of its use and place in the key writing is

approved. The SWOT approach is unavoidable, in vast part, because of its effortlessness. What's

more, the utilization of SWOT as a demonstrated formative, comes about situated vital arranging

37
apparatus is additionally developed, albeit additionally examine prompting to hypothesis

building is justified and prescribed. (Helms, M., 2010)

A SWOT investigation can be completed for an item, place, industry or individual. It

includes indicating the goal of the business wander or extend and distinguishing the inner and

outer variables that are ideal and troublesome to accomplish that objective. Identification of

SWOTs is imperative since they can educate later strides in wanting to accomplish the goal. In

the first place, the leaders ought to consider whether the goal is feasible, given the SWOTs. On

the off chance that the goal is not feasible an alternate target must be chosen and the procedure

rehashed. Clients of SWOT investigation need to ask and answer addresses that create significant

data for every classification (qualities, shortcomings, openings, and dangers) to make the

examination valuable and locate their focused advantage. One method for using SWOT is

coordinating and changing over. Coordinating is utilized to discover upper hand by coordinating

the qualities to circumstances. Changing over is to apply transformation systems to change over

shortcomings or dangers into qualities or openings. A case of change technique is to discover

new markets. In the event that the dangers or shortcomings can't be changed over, an

organization ought to attempt to limit or maintain a strategic distance from them.The handiness

of SWOT examination is not constrained to benefit looking for associations. SWOT

investigation might be utilized as a part of any basic leadership circumstance when a craved end-

state (target) is characterized. Illustrations include: non-benefit associations, administrative units,

and people. SWOT examination may likewise be utilized as a part of pre-emergency arranging

and preventive emergency administration. SWOT examination may likewise be utilized as a part

of making a proposal amid a practicality ponder/study.

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Procedure building

SWOT examination can be utilized viably to manufacture association or individual system. Steps

important to execute methodology situated investigation include: recognizable proof of interior

and outer variables (utilizing famous 2x2 framework), choice and assessment of the most critical

elements and ID of relations existing amongst inner and outside features. For example: solid

relations amongst qualities and openings can recommend great state of the organization and

permit utilizing forceful technique. Then again solid association amongst shortcomings and

dangers could be investigated as potential cautioning and exhort for utilizing guarded system.

(Nixon, J., 2008)

Gap Analysis

Crevice investigation includes inside and outside examination. Remotely, the firm should

speak with clients. Inside, it must decide benefit conveyance and administration outline.

Proceeding with the administration quality illustration, the means required in the execution of

hole investigation are: (1) Distinguishing proof of client desires (2)Distinguishing proof of client

encounters (3)Distinguishing proof of administration recognitions (4) Assessment of

administration guidelines (5) Assessment of client correspondences. The ID of client desires and

encounters may start with center gathering interviews. Gatherings of clients, commonly

numbering seven to twelve for each gathering, are welcome to examine their fulfillment with

administrations or items. Amid this procedure, desires and encounters are recorded. This

procedure is generally fruitful in distinguishing those administration and item characteristics that

are most imperative to consumer loyalty.

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After concentration amass meetings are finished, desires and encounters are measured with more

formal, quantitative techniques. Desires could be measured with a one-to-ten scale where one

speaks to "Not under any condition Imperative" and ten speaks to "Critical." Experience or

recognitions about each of these qualities would be measured in a comparable way. Crevices can

be essentially computed as the number-crunching distinction between the two estimations for

each of the traits. Administration discernments are measured much in a similar way. Gatherings

of chiefs are solicited to examine their recognitions from client desires and encounters. A group

can then be relegated the obligation of assessing supervisor discernments, benefit measures, and

interchanges to pinpoint disparities. After crevices are recognized, administration must find a

way to fill or limited the holes. (Bettencourt, L., and Ulwick, A., 2008)

Hole investigation is a Six Sigma quality control apparatus that contrasts genuine

execution and the potential execution of a business. Hole investigation identifies the level of

underperformance in a business because of poor use of assets and helps promoting administrators

settle on the advertising technique that yields the best outcomes. Centered associations ought to

have a sorted out method for information gathering and examination. Information all alone is not

worth much, as the examination of information is the most vital piece of value control and the

whole Six Sigma Prepare. Gathering and ordering information for hole is accomplished for

different reasons as sketched out in this article. Benchmarking: Benchmarking is a Hole

investigation device used to better comprehend current execution in a business. A Benchmark

point is built up (regularly the process duration of a procedure) so that an item or administration

can be set up against associations with a comparable procedure. Benchmarking decides the

impact Six Sigma has on a business and the variety between the "where we are and the where we

should be" scale. In benchmarking there are cycles, occasional elements, and other inside and

40
outside elements that ought to be mulled over. It is ideal if midpoints of information are thought

about over a timeframe, lessening mistake because of outside and interior components. One

noteworthy blemish of Benchmarking is concentrating on a solitary execution metric. At the

point when an organization concentrates on one part of the business alternate arms miss the mark

prompting to no net change or change in execution. When benchmarking is accomplished for a

Six Sigma extend, an authentic variety is finished (information gathered from different hole

examination over various timeframes) before hole investigation is completed. Information

Examination: Information investigation draws out the maximum capacity in an organization by

redesigning the way work is done in an association. The point of information examination is to

build yield while saving money on cost by contrasting past information gathered throughout the

years with current information. Six Sigma ventures make significant enhancements in

administration and staff effectiveness by utilizing factual information to decrease deserts in a

procedure and measures what is really going on. Sound information gathering is a standout

amongst the most imperative parts of the Six Sigma Handle. Forecast: Information can be

utilized to make expectation for a business utilizing relapse investigation. Hole examination can

estimate yield in view of present and past information gathered and the information made toward

a venture. Observing: In light of economic situations, numerous parts of a business can be

checked and vital changes made through this procedure. Hole examination guarantees that

insignificant fluctuation is recorded in current contribution to the normal yield. Any business

procedure in factual control will have a typical cause difference and substitute arrangements are

expected to enhance the framework. A crevice investigation additionally characterizes change

and the bearing the change ought to head. Observing guarantees that all procedures are on target

41
and measures execution difference. Vital arranging is accomplished in Six Sigma extends

through satisfactory observing and detailing. (Six Sigma, Aveta Business Institute)

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Theoretical Framework

Figure 1. 5 Dimensions of Service Quality

The five dimensions of service quality are the five key elements of customer service

which are Reliability, Assurance, Tangibles, Empathy, and Responsiveness. The five dimensions

have been shown time and again to represent the primary aspects of service that the customers

recognize, appreciate and begins to give us a language for describing customer service. Lastly,

can be used equally to review business and customers. (Zeithaml, V., 1990)

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Reliability

At the point when the company guarantees something to the clients, the company ought

to do it accurately and on time.

Assurance

The company tends to give the learning, aptitudes and validity of the employees to rouse

trust and certainty towards the customers.

Tangibles

The interest of the physical appearance of the company, its workplaces, staff and

materials should exceed customer’s expectations.

Empathy

The company should tailor the services to the individual customer’s needs.

Responsiveness

The company must respond immediately and effectively to changing customer needs.

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The Marketing Mix (7 Ps)

Figure 2- Marketing Mix (7 Ps)

Figure 2. 7P’s Marketing Mix

Marketing Mix is simply defined as the right combination of factors that company

controls in order for consumers to purchase its products/services. The marketing mix is a great

tool to capture the right consumers in the right place, at the right price, at the right time with the

right channels. However, marketing is a constantly changing discipline and companies will be

left behind in the competition if the company don’t adapt to the dynamic environment of the

industry. The basic marketing mix has been changed from 4 P’s to 7 P’s to add a much needed

layer of coverage to the Marketing Mix. (Fisk, R., Brown, S. W., Bitner, M. J., 1993)

45
Product

The product may be tangible or intangible (service) which satisfies the customer’s

specific need or want. The product offered should fit what the customer demands and should get

what the customers expected. The company must develop the right kind of product with the right

kind of quality to meet the suitable market’s demands.

Place (Distributional Channel)

The product should be strategically located from where the target customer’s easiest

place to shop. It is critical to choose where the ideal location is so that it converts potential

customers into actual customers. A place chosen by the company should have a high traffic

meaning many people will pass by and will see your store.

Price

The product offered by the company should be in ideal price which the customers are

willing to avail. The product should have a good value for money. The pricing strategy is not

necessarily the cheapest one available but it should be that the customers are happy to pay even

more for something that suits them well.

Promotion

The key tools of communication for a company are Advertising, PR, Personal Selling and

in the recently, Social Media. These are the tools used by marketers to reach out the target

audience of the company and send out a message in a way that customers would like to hear. The

message should be appealing to the customers and hopefully a message that encourages

customers to buy the product.

46
People

All companies depend on the people who run the front lines of the company. These

people range from the Sales staff to the Managing Director. The right people in the company is

essential because it is a part of the business offering as the product/service. The people who run

the company also have a positive or negative impact on the company which is the customer

satisfaction. The reputation of the company lies on how the staff treats its customers.

Process

A customer doesn’t usually avail a product or service from your company rather they

spend time in an experience that starts when the customers first knew the company and lasts

through when and purchase and so on. The process on how the staff delivered the product and

the behavior on who delivered is an essential impact on the company’s customer satisfaction.

These factors are part of what the customers are paying for.

Physical Environment

Most services include some tangible elements even if most of what the customer is

paying for is intangible. For example, an insurance company would give out documents to their

customer that serves as the physical evidence that the customer has purchased a product. The

physical evidence that the customers get reduces the uncertainty by helping customers ‘see’ what

the customers are paying for.

47
SWOT

STRENGTHS WEAKNESSES
Internal  Prices are cheaper compared to  Uncertain brand
other authentic Spanish positioning.
Restaurants.  The location is not
External
 Well-trained cooks and staffs. accessible.
 Offers a very relaxing ambiance  Lacks promotions
through its garden-like venue.
OPPORTUNITIES S.O W.O
 Newly opened  Many would like to have a deal  If Arano’s restaurant
malls proposed to with Arano’s for the reason that would grab the
have the restaurant the restaurant offers the best opportunity of
open in the price when it comes to authentic opening in a mall, it
respective malls. Spanish Cuisine. would be a great help
 Many would like to  The garden-like venue captures for them to be more
use the facilities everyone who is dining and known in the food
during birthdays would love to spend their industry.
and wedding birthday parties and/or wedding  Arano’s would catch
receptions. receptions if the management more customers since
 A number of will allow. malls are more
people would like accessible than their
to franchise the current location.
restaurant.
THREATS S.T W.T
 A number of  Though a number of Spanish  Arano’s restaurant
Spanish restaurants restaurants are located in an should somehow
are located in an accessible area and offer more adjust on either having
accessible area. available operating hours, still a more operating hours
 Many Spanish lot of customers would love to or open in a more
restaurants offer visit Arano’s because of the accessible area in
more available affordable prices and great order to gain more
operating hours. product and services being customers.
 More people offered.
nowadays are into
modern restaurants.

Figure 3. SWOT Analysis

48
Gap Analysis

Figure 4. Gap Analysis

A strategy that organizations use to figure out what steps should be taken to move from
its present state to its sought, future state. Likewise called require hole examination, needs
investigation, and necessities appraisal.

Crevice examination comprises of (1) posting of trademark variables (for example,

properties, capabilities, execution levels) of the current circumstance. (2) posting components
expected to accomplish future destinations, and after that (3) highlighting the holes that exist and
should be filled. Hole investigation compels an organization to think about its identity and
request that who the organization needs to be later on.

49
 Conceptual Framework

The figure manifests and delineates the marketing strategies that the researchers can
administer in order to boost up the number of satisfied customers in Arano’s Restaurant.

5 Dimensions of Service
Quality
 Reliability
 Assurance
 Tangible
Customer Profile  Empathy
 Responsiveness

Proposed
improvement for the
services.
7P’s Marketing Mix
Products & Services
offered
Price
Place
Promotion
Product
People
Process
Physical Evidence

Figure 5.The conceptual framework.

The figure exhibits on how the researchers will conduct the study in order to accomplish

the final objective of knowing the level of effectiveness of customer satisfaction in Arano’s

Restaurant in Cebu City. Second, is to propose recommendations to improve the level of

effectiveness of customer satisfaction in the restaurant. The researchers’ first objective is to

describe the customer profile of the target market to have a better understanding of the

50
customer’s personal outline. The second objective is to identify the product and services offered

by Arano’s Restaurant. Third is to describe the challenges and problems faced by Arano’s

Restaurant. After knowing the details, the researchers will now analyze using the 5 dimensions

of service quality and evaluate how well the restaurant applied the 7P’s in Marketing.

After all the brainstorming and deliberation, the researchers will propose

recommendations based on the study to improve the level of effectiveness of customer

satisfaction in the restaurant.

51
 Chapter 3

RESEARCH METHODOLOGY

The chapter consists of measurements in research processes. The chapter will enable the

researchers to have gathered information from the respondents and will help the researchers have

a clear understanding of the current level of satisfaction the customers are receiving from the

Arano’s Restaurant. In line with the research, the location will be first discussed. Followed by

the respondents, specifically the prospects aligned with the study, followed by the instruments

used to gather the data and lastly, a profound research procedure for gathering the data and the

tools used for the treatment of the statistics.

Research Environment

The basis of the study was conducted in one area only located in Fairlaine Village in

Guadalupe, Cebu City. The location of the research will be the place where data will be gathered

and analyzed for the study.

Figure 6.The area of the study. Fairlane Village Rd, Guadalupe Cebu City and it takes about 30

minutes to get Arano’s from the University of San Carlos it’s about (3.9km)

52
Research Respondents

The prospects for this research will be the customers who are dining in Arano’s

Restaurant. In addition, a meeting with the Owner of the restaurant will take place, this will

further help the researchers have a brief information whether most customers are coming back to

taste other foods served by the restaurant.

The researchers will use a qualitative technique in doing the study. This will guide the

researchers to collect evidences, produce findings that were determined and to prove answers.

This will involve the customers in the area of study and from this the researchers can conclude

drawbacks from the basis of the study. In terms of getting the sample size for the population, the

Slovin’s Formula will be used to get accurate percentage of the respondents.

Given: N= 55 (average customers per night)

e= 0.05 (for 95% confidence level)

Slovin’s Formula: 𝑵
𝒏=
𝟏 + (𝟏 − 𝑵𝒆𝟐 )
Solution:
𝟓𝟓
𝒏=
𝟏 + (𝟏 − (𝟓𝟓 ∗ 𝟎. 𝟎𝟓𝟐 ))

Answer: 29.5= 30

Therefore, the researchers will have to gather answers from 30 respondents per night for 5 days.

53
Research Instruments

To further have information from the study, a survey questionnaire will be provided for

the respondents to fill. From the survey supported, data will be gathered and analyzed

accordingly. This will assess the summarization of the problems and the level of customer

satisfaction in Arano’s Restaurant. The objectives of the study will then be achieved from the

responses of the participants.

Research Procedures

Gathering of Data

From the area of the study, the primary and secondary sources will involve the customers

in the place and additional information from the owner as well will help in gathering data and

analysis will then be made. Such data will be gathered through the survey questionnaire

distributed. The customer’s response will be the basis of the formulated problem of the study in

lieu with the strategies used by the company and its effectiveness in the industry.

Treatment of Data

All the data that were gathered throughout the research were thoroughly examined and

tabulated through tables and figures. All data that were gathered were treated confidentially and

were used only during the duration of the study. The researchers used variables, frequency and

percentage. Ratings given by the respondents on the level of customer satisfaction in Arano’s

Restaurant were tallied.

Researchers computed the gathered data by standard deviation and analysis on means.

The level of satisfaction of the customers will be determined on the basis shown in Table 1.

54
Table 1. Rating Scale
______________________________________________________________________________
Range Interpretation
1.0-1.4 Very Dissatisfied

1.5-2.4 Dissatisfied

2.5-3.4 Average

3.5-4.4 Satisfied

4.5-5.0 Very Satisfied

______________________________________________________________________________

The result of the survey will be tabulated and interpreted using the rating scale. As shown

in Table 1, between the range of 1.0-1.4 represents that the services and products provided by

Arano’s Restaurant were rated least and very unsatisfactory measure which means that most of

the strategies of the restaurant needs to be change. Between the range of 1.5-2.4 represents that

the products and services of the restaurant are poor and needs improvement because customers

were not satisfied. In the range of 2.5-3.4 represents the uncertainty of the customers on whether

the customers are satisfied or not with the products and services the restaurant provides. The

range 3.5-4.4 represents that the products and services provided meet the expectations of the

customers and customers were satisfied. Lastly, the range between 4.5-5.0 represents that the

products and services offered by Arano’s restaurant were excellent and exceeds the expectations

of the customers, which means customers were highly satisfied.

55
 Chapter 4

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

Demographic Profile of Customers

Chapter 4 consists of the presentation, analysis and interpretation of data gathered

through the customer satisfaction based questionnaires for the customers of Arano’s restaurant.

The following shows the majority of the demographic aspects of the customers of Arano’s

restaurant in terms of Age, Gender, Occupation, Marital Status, and Location

Table 2

Summary Table of Demographics

Demographics Frequency Percentage%

Age
18 – 22 7 14
23 – 27 8 16
28 – 32 7 14
33 – 37 4 8
38 and above 24 48
Gender
Female 26 52
Male 24 48
Location
Banawa 14 28
Guadalupe 24 48
Lahug 4 8
Mandaue 8 16
Occupation
Student 13 26
Employee 18 36
Self Employed 19 38
Others 0 0

Marital Status
Single 20 40
Married 29 58
Widowed 1 2

56
 As shown in Table 3, the highest concentration of demographic of people in terms of age

who go to Arano’s restaurant are from the ages 38 and above which account 48 percent of the

total respondents while the ages from 18-22 form the lowest groups at 14 percent indicating that

the older generation has more knowledge of this place than the current millennial. In terms of

gender, majority of the 50 respondents are female with a totaling of 52% as opposed to male

numbering only at 48%. Location wise the highest frequency of visitors who visit Arano’s are

the people from Guadalupe which amount to 48 percent of the total respondents and likewise the

lowest are the Lahug region which only amounts to 8 percent of the total respondents.

These results also show the respondents in terms of one’s occupational roles, whereby

self-employed customers account the highest with 38 percent while students account the least at

26 percent. In terms of Marital Status most respondents are married having a high concentration

of 58 percent followed by single individuals amounting to 48 percent while the rest are widowed

with a mere 2 percent.

57
5 Dimensions of Service Quality

Table 3
Reliability Dimension

Expectations
Attribute Mean Qualitative Description

1.The restaurant provides the

products at the promised time 3.9 Satisfied
2. Customers can always visit the
restaurant anytime 3.32 Average
3. When customers have
problems with the products and
services, the restaurant shows 3.84 Satisfied
interest in solving

4. The Prices are worth per 3.62 Satisfied

serving

Average Mean 3.67 Satisfied

This table shows the overall expectation concerning the how reliable the restaurant is

when it comes to this dimension which is satisfactory with a mean score of 3.67, with the

question number 3 gradually receiving the highest score at 3.84.

The result indicates that Arano’s restaurant has a high satisfactory regard from its

customers in terms of the reliability of its services and functions and its price per serving.

58
Table 4
Assurance Dimension

Expectations
Attribute Mean Qualitative Description

5. Employees are knowledgeable 4.16 Satisfied

about the products

6. Employees are able to solve the 3.84 Satisfied

problems with satisfactory

7. Employees are very responsive 3.98 Satisfied

8. Employees greet the customers 4.14 Satisfied

warmly with a genuine smile

9. Employees are consistently 3.98 Satisfied

courteous

Average Mean 4.02 Satisfied

This dimension shows that the overall expectations towards Arano’s restaurant is at a

high level with a mean of 4.02 indicating a satisfactory performance on how Arano’s can

generally make the customer feel welcomed with the customers come to dine the restaurant. The

employees in Arano’s show a high level of courteousness towards the clients and are willing to

help with any problems the client may have incurred.

59
Table 5
Tangible Dimension
______________________________________________________________________________
Expectations
Attribute Mean Qualitative Description

10. Service area is clean 4.12 Satisfied

11. The restaurant has modern
looking equipment 3.5 Satisfied
12. Restaurant atmosphere and
décor appearance are appealing 3.72 Satisfied

13. Employees are neat in 4.1 Satisfied

appearance

14. The restaurant provides detail 3.96 Satisfied

information about the products

Average Mean 3.86 Satisfied

This results show the tangibility aspects of customer satisfaction in which has held a high

mean score of 3.86 resulting in a satisfied customer base. The restaurant provides a barely

satisfying amount of ambience in that customer will feel relaxed and enjoy the rest of the night.

60
Table 6
Empathy Dimension

Expectations
Attribute Mean Qualitative Description
15. Employees are listening
carefully to the needs of the 4.04 Satisfied
customers
16. The restaurant has operating
hours convenient to all the 3.58 Satisfied
customers.
17. Employees understand the
specific needs of the customers 4.04 Satisfied
very well
18. The level of cost of service is
consistent with what the clients 4.12 Satisfied
can afford
19. Prices per order are affordable 3.96 Satisfied

Average Mean 3.94 Satisfied

This table show the dimension of empathy which refers to the ability to provide a caring

and give the utmost attention to the needs of the customers in which the restaurant gained high

marks with the total mean score of 3.94 further implying that Aranos is capable to provide or

assistance the customer in their needs.

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Table 7
Responsiveness Dimension

Expectations
Attribute Mean Qualitative Description

20. Employees take actions

immediately after a complain 4 Satisfied
21. Employees tell the exact
details of the products 3.96 Satisfied
22. Employees give prompt
service 4.14 Satisfied
23. Employees are always willing
to assist the customers 4.14 Satisfied
24. Employees are never busy to
respond a customer’s request 4.14 Satisfied

Average Mean 4.07 Satisfied

The last dimension responsiveness has a high mark of overall customer satisfaction in the

overall mean score of 4.07 suggesting a proactive workforce in that employees in Arano’s

restaurant knows how to deliver prompt services and adequate training to heed to the needs and

complaints of the customers.

Table 8

Average Mean

Expectations
Attribute Mean Qualitative Description

Reliability 3.67 Satisfied

Assurance 4.02 Satisfied

Tangibles 3.86 Satisfied

Empathy 3.94 Satisfied

Responsiveness 4.07 Satisfied

Overall Mean Score 3.96 Satisfied

62
 This table explains the overall mean score regarding the five dimensions namely

reliability assurance, tangibility, empathy and responsiveness overall expectations of the 5 are

generally regarded as high with lowest rating being 3.67 belonging to the reliability part of the

restaurant giving a clear indication that the employees and general services of Arano’s restaurant

is adequate enough for customers.

Proposal

Based on the findings, the researchers have uncovered that in terms of the 5 dimensions

regarding the customer satisfaction of Arano’s restaurant, all respondents have said that Arano’s

restaurant delivers satisfying results in all of the dimension with just a few complaints on its

operating hours which only operate at night and some ambience elements that will make the

customer tired yet still the restaurant and its employees offer a substantial amount of customer

assistance and willing to listen to needs of the customers. Therefore, the researchers have

proposed to the owner of the restaurant to continue its practices in terms of employee

management while simply extending the operating hours to conform to the growing needs of the

customer whereby which the restaurant may gain potential and future customers.

63
Table 9

Total Average Mean & Gap analysis

Expectation Perception
Attribute Mean Mean Gap
Product 5 4.24 -0.76
Price 4.2 4.04 -0.16
Place 5 3.8 -1.2
Promotion 4 4.7 0.7
Physical Evidence 5 4.3 -0.7
People 4 4.4 0.4
Process 4 4.4 0.4
Overall mean score 4.4 4.26 -0.6

This table shows the correlation between the different aspects of attributes with their

average mean score and their perspective gaps. Among the attributes or basically the 7ps of

marketing, the attribute product that has a gap score of -0.76, which indicates that Arano’s

restaurant while delivering excellent food choices people are not as satisfied or not on par with

the product as the owner has initially expected due to high confidence on the company’s part.

In the pricing department, a score of -0.16 has emerged in the gap, resulting in the fact

that people’s perception on the pricing of the products and services are nearly in line with what

the company had originally thought what their prices would be fair and relatively good.

Essentially the highest negative gap score of -1.2 created was the place or area of the

restaurant which shows customer dissatisfaction on the areas accessibility and its parking space

meaning that the owners of the restaurant has shown poor performance on how to alleviate this

matter due to it being in a high densely populated are like Guadalupe.

As for promotion goes the restaurant has received a high mark of 0.7 in the gap score

which is positive for the company or restaurant which is an essential part in creating a new

customer base. Physical evidence is essentially the customers experience on the restaurants

64
ambience and its amenities with a score of -0.7 Arano’s has failed to uphold a visually appealing

ambience in its restaurant resulting in a slight dissatisfaction of the customers experience during

their stay.

People, which accounts the restaurants staff employees has had a positive score of 0.4

which means Arano’s restaurant has a hard working staff willing to help the customers at all

times.

Process on the other hand is the ability of the restaurant accessibility and its structural

management rules in which Arano’s has score yet another positive score of 0.4 which indicates

the ability to adapt to various needs of the customer.

Overall Gap Analysis

Arano’s restaurant has achieved a mixed score of both positive where promotion, people

and process are situated resulting in more than satisfied customers and negative gap scores,

which were from product, price, place and physical evidence where Arano’s restaurants

expectations has been too high and that the customers are slightly dissatisfied with the products

taste in the food, its location in where Arano’s is situated in and the ambience in which people

complain of the lack of good amenities and to minor extent the foods pricing.

65
 CHAPTER 5

SUMMARY, FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

SUMMARY

The company that the researchers chose to study is the Arano’s Restaurant which is

known to have affordable Spanish cuisine. The company has a pilot outlet that has been

operating for a long time and is located at Fairlane village Guadalupe, Cebu City. The study

seeks to create improvements of the Customer Satisfaction of Arano’s Restaurant. The

researchers also aim to remedy the challenges faced by the company.

The researchers hypothesized that Arano’s Restaurant will be able to attract more

customers and enhance the company’s image in terms of marketing mix to be able to increase its

sales.

Customer satisfaction is the result of the correlation between a customer’s assumption

and a customer’s feelings. By way of explanation, customer satisfaction is identified as the

distinction between assumed quality of service and the customer’s involvement or feelings after

having perceived the service. Customer satisfaction depends on such dimensions as assurance,

responsiveness, reliability, empathy and tangibles, and further components such as personal,

price and situational factors that may arise as the service quality. (Bateson & Hoffman, 2000.)

The researchers used the 7Ps in marketing mix to identify their target market. The

researchers also made use of SWOT analysis to identify the internal and external factors of the

company. Lastly, the 5 Dimensions of Service Quality is a tool used to represent the primary

aspects of service that the customers recognize, appreciate and begins to give us a language for

describing customer service.

66
 The study was conducted at Fairlane village, which is at Guadalupe using a survey for the

respondents. There are total of 50 respondents, which were computed using the Slovin’s formula.

An interview with the owner of Arano’s Restaurant was conducted by the researchers to gain

utmost information about the company and its strategies.

67
FINDINGS

The demographic data that was gathered by the researchers showed that ages 38 and

above contains the most number of respondents who frequently purchases products at Arano’s.

Majority of the respondents were Female with a percentage of 52% and self employed

individuals has the highest percentage of 38%. The employees checked by the respondents were

mostly working at a middle class type of jobs.

The researchers then gathered data of the current assessment of the restaurant. For

product, the respondents said that were satisfied with the foods some of the respondents

complained about the operating hours of the restaurant since the restaurant only operates in the

afternoon, which was also witnessed by the researchers. For price, the respondents mostly agreed

that the amount given is okay based on the survey. As for promotion, there are no such

promotions shown by the restaurant. The respondents only hear of Arano’s Restaurant through

word of mouth. Based on the interview, the owner also said that he is still working on

promotions for the Restaurant get exposed not just by the area where the restaurant is. In terms of

location it is situated in Guadalupe giving an advantage for people in that region easy access via

jeepney and also other motorized vehicles, the problem is that is a bit hidden since it is situated

in the village where one might get lost going there Since the researcher’s respondents are only by

the area, most of the respondents said that it is convenient only for them.

The strength of the restaurant is that they have a variety of affordable Spanish food that is

being sold to consumers. The weakness of the restaurant is that the owner currently doesn’t plan

to expand nor try to use social media or any form of advertising to further make Arano’s known

to other potential customers. The company also has a problem in terms of their operating hour

where the restaurant only opens in the evening losing valuable or potentially new customers.

68
Arano’s can give opportunities to further expand its customer base by appealing to the millennial

especially ranging from 18 to 22 for it accounts for the least visits in the restaurant which in turn

generate more profit in the company.

69
CONCLUSIONS

Based on the data gathered, the researchers found out that customers of Arano’s

Restaurant are from the age group of 38 and above and 52% of the total respondents are females

in which women like to go the restaurant. The researchers also found out that customers usually

buy Paella since it is the best selling product in Arano’s.

For the strength, Arano’s must foresee if it wants to keep operating in the near future

since having a evening only schedule can hinder growth of the restaurant and might lead to

closure. Also Arano’s must factor in the possibility of expansion to further increase its visual and

customer base. Also the affordability of the food must remain because there is a rising

competition from other Spanish based food restaurant that innovate faster than Arano’s. For the

weakness, Arano’s must find a way an accessible place where the people can easily see the

restaurant so that customers who like Spanish foods would not be complaining about the location

and its convenience. The restaurant also should keep up the discipline of their employees well in

order to serve better for the customers. For the opportunities, having an additional branch can

help other people be employed and also can help the business grow, Arano’s should expand its

business to different places of the Cebu in order for them to be recognized like their competitors.

For the threat, Arano’s has a lot of competitors that give creative meals that further hinder

Arano’s from being a first choice for newcomers; must first control its quality of the products in

order to overcome competitors. The restaurant must maintain the consistency of the food in

terms of quality since most of the respondents said that they would prefer the quality of food

rather than the price. And lastly, the restaurant should add more variety in its menu to have a

competitive advantage to the competitors.

70
RECOMMENDATIONS

Based on the findings and conclusions of this study, these recommendations are addressed to: (1)

Reliability, (2) Assurance, (3) Tangibility, (4) Empathy and (5) Responsiveness

The Customer of Arano’s Restaurant has the highest number of late adult ranging from

38 and above while the millennial range as the lowest visitor in the restaurant but shows potential

for growth in that area. But in terms of gender, the females show a slight majority of numbers

compared to the male market.

The researchers highly recommend to increase the number of operating hours of Arano’s

restaurant for it able to attract more customers. Some of the customers were discourage due to

the fact that it only opens in the evenings. Also upon further research and further investigation

shows that most respondents only knew about the restaurant through their friends and family.

Maintaining the consistency of their products in terms of quality is also recommended

since most customers would prefer quality over price. Arano’s restaurant in a good note should

also maintain the treatment of their employees since studies show that their employees are

satisfied on the workplace and good treatment of employees would mean better labor force.

For the future researchers, considering the customer profile of their respondents is

recommended in order to have an effective survey. The future researchers should also add more

respondents and more consistent interviews with more time to be able to get more accurate

results.

71
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 APPENDIX A

ACCEPTANCE LETTER

August 23, 2016

Iñaki Ramon Ibarlucea

Business Owner

Arano’s Restaurant

29-31 Fairlaine Village Rd, Guadalupe Cebu City

Dear Mr. Ibarlucea:

We, the 4th year BSBA Marketing students from the University of San Carlos, are conducting a

research study on “An assessment of customer’s satisfaction in Arano’s Restaurant”.

In lieu with this, we would like to ask for your permission to conduct an interview with the

management representative and to conduct a survey to your customers. Rest assured that all data

gathered will be treated with utmost confidentiality and for academic purpose only.

Should you have any inquiries regarding our study you may contact us at any time through this

number: 0922-688-1188.

We are hoping for your positive response.

Respectfully yours,

James U. Lumapas

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 APPENDIX B

RESEARCH INSTRUMENT

Dear sir / Ma’am, Good day!

We, students from the University of San Carlos under the Business Administration

Department, are conducting a research study entitled “An Assessment of Customer’s Satisfaction

in Arano’s Restaurant in Cebu City.” We would like to ask for your time to provide us with your

evaluation on your experience in dining here in Arano’s Restaurant. Rest assured your answers

will be kept in private.

Name (Optional):

Age:

Gender:

Nationality:

Occupation:

Civil Status:

Location:

Income:

Instructions: For this section, please rate how strongly you agree or disagree with each of the

following statements by circling the appropriate numbers.

SD-Strongly Disagree

D-Disagree

M-Moderate

A-Agree

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SA- Strongly Agree

RELIABILITY

DIMENSION SD D M A SA

1. The restaurant provides 1 2 3 4 5

the products at the

promised time

2. Customers can always 1 2 3 4 5

visit the restaurant

anytime

3. When customers have 1 2 3 4 5

problems with the

products and services, the

restaurant shows interest

in solving

ASSURANCE

DIMENSION SD D M A SA

1. Employees are 1 2 3 4 5

knowledgeable about the

products

2. Employees are able to 1 2 3 4 5

solve the problems with

satisfactory

78
3. Employees are very 1 2 3 4 5

responsive

4. Employees greet the 1 2 3 4 5

customers warmly with a

genuine smile

5. Employees are 1 2 3 4 5

consistently courteous

TANGIBLE

DIMENSION SD D M A SA

1. Service area is clean 1 2 3 4 5

2. The restaurant has modern 1 2 3 4 5

looking equipment

3. Restaurant atmosphere 1 2 3 4 5

and décor appearance are

appealing

4. Employees are neat in 1 2 3 4 5

appearance

5. The restaurant provides 1 2 3 4 5

detail information about

the products

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 EMPATHY

DIMENSION SD D M A SA

1. Employees are listening 1 2 3 4 5

carefully to the needs of

the customers

2. The restaurant has 1 2 3 4 5

operating hours

convenient to all the

customers.

3. Employees understand the 1 2 3 4 5

specific needs of the

customers very well

RESPONSIVENESS

DIMENSION SD D M A SA

1. Employees take actions 1 2 3 4 5

immediately after a

complain

2. Employees tell the exact 1 2 3 4 5

details of the products

3. Employees give prompt 1 2 3 4 5

service

4. Employees are always 1 2 3 4 5

80
 willing to assist the

customers

5. Employees are never busy 1 2 3 4 5

to respond a customer’s

request

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 APPENDIX C

TIMETABLE OF ACTIVITIES

DATE ACTIVITIES

August 13, 2016 The researchers’ group was formed.

August 14-19 The researchers were deliberating which company to study.

August 22 The researchers finalized the topic with Ms. Angelita Valles.

August 23 First meeting with Mr. Iñaki Ramon Ibarlucea, the owner of

Arano’s Restaurant, the chosen company to be studied.

August 24-25 Brainstorming about the topic.

August 26 The making of the paper.

September 15 First submission of the thesis paper.

Revisions were given by thesis adviser.

September 16- 21 The researchers revised the paper.

September 22 Submission of the revised thesis paper.

Further revisions were also given by the adviser.

September 23-25 The researchers made the revisions.

September 26 Final submission of the thesis paper.

October 6 Thesis proposal defense.

October 7-14 Revising the approved thesis proposal.

October 15 Submission of the Final approved thesis proposal.

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 APPENDIX D

PROGRAM BUDGET

Travel expenses:

- Gas Php 800

- Jeep rides 200

Misc fees. (Food and water) 600

Printing of papers 350

Ring Bound 300

Total Php 2, 250

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 APPENDIX E

ARANO’S RESTAURANT MENU

APERITIVO(APPETIZER)
SPANISH FOOD Chicken ………80
SPECIALITIES Lollipop
Lengua ………140
Peanuts ……….........35 Buffalo Wings ..75
Callos ………..140
French Fries ….........30 Chicken Burrito .80
Croqueta de …..80
Mashed Potato .........30 Carne PAELLA
(good for…)
Spanish Sardines ….220 Spicy …………130 2 ……….200
Caldereta 5 ……….400
Spanish Chorizo .….80 8 ……….500
Fideua ………..130 10 ……...600
Tortilla de Patata …135 (paella w/pasta) 12 ……...700
18 ……...850
Con Chorizo …..215 Chili Con ……..80 24 ……...1,200
Carne Burrito
Tortilla de Patata …70 PAELLA NEGRA
(1/2) TACO (good for…)
5 ………..500
ENSALADA Taco de ………100 8 ………..600
Chorizo ..BY ORDER..
Lettuce Salad ……..45
Taco de ………100 RICE
Lettuce Salad ……..50 Carne
w/Asp Plain Rice ….15
Taco de ………100 Garlic Rice …20
Basque Salad ……...75 Pescao
Sopa (Soup)
COSIDOS
CHICKEN Chicken …….35
Aluvias w/Spanish ...80 SPECIALITIES Asparagus
Chorizo

Chicken Steak .140

Chili Con Carne …...80
Chicken BBQ .140
Pochero de Garbanzos..700 Steak
(by order- minimum of 4 orders)
Chicken ………80
Lollipop

Buffalo Wings ..75

Chicken Burrito .80 84

 APPENDIX F

CURRICULUM VITAE

James Martin U. Lumapas

November 21, 1994

BakilidMandaue City, Cebu

Contact no.: 09226881188

Educational background:

Primary: Royal Oaks International School

Mandaue City, Cebu

March 2008

Secondary: Marie Ernestine Science Highschool

Budla-an, Talamban, Cebu City

March 2012

Tertiary: University of San Carlos – Downtown Campus

85
Personal Information

Name: Jaya S. Lozano

Date of Birth: July 9, 1996

Address: 70-E Tabada St. Mambaling, Cebu City

Contact no.: 09223722485

Educational Background

Tertiary: University of San Carlos-Downtown Campus

Address: P. Del Rosario St. Cebu City

Secondary: University of San Carlos- South Campus

Address: J. Alcantara St. Cebu City

Year Graduated: March 2013

Primary: Cebu Normal University

Address: Osmena Blvd. Cebu City

Year Graduated: March 2009

86
Personal Information

Name: RjeenheilMahinay

Date of Birth: February 29, 1996

Address: Mahayahay Dos,CatarmanLilo-an Cebu

Contact no.: 09432518312

_______________________________________________________________________

Educational Background

Tertiary: University of San Carlos-Downtown Campus

Address: P. Del Rosario St. Cebu City

Secondary: La- Consolacion College

Address: PoblacionLilo-an Academia

delChristifidelisKawayananTayudLilo-an Cebu

Year Graduated: March 2013

Primary: Wunderkind School

Address: CapazTayudLilo-an Cebu

Year Graduated: March 200

87
Personal Information

Name: Kevin John A. Aliviado

Date of Birth: November 6, 1992

Address: Azienda Genova Lawaan, Talisay City

Contact no.: 09238932667

__________________________________________________________________

Educational Background

Tertiary: University of San Carlos-Downtown Campus

Address: P. Del Rosario St. Cebu City

Secondary: Sacred Heart School Jesuit

Address: Canduman Talamban, Cebu City

Year Graduated: March 2009

Primary: Sacred Heart School Jesuit

Address: General Maxilom Ave. Cebu City

Year Graduated: March 2005

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