Enhancing Service Quality to Drive Customer Satisfaction and Loyalty: Evidence from Cambodia’s Fast-Food Industry

Abstract

Research has investigated the effects of better service quality on the satisfaction and loyalty of Cambodian fast food consumers. This study aims to fill the gap in empirical data on the service quality of the Cambodian fast-food industry and to investigate the influence of current and historical service quality standards on customer behavior. This research used sequential explanatory mixed methods. A standardized questionnaire was used to collect quantitative data from 968 fast- food customers in Phnom Penh, Siem Reap, Battambang and Banteay Meanchey. To obtain qualitative data on the quantitative results, twenty customers were selected for semistructured interviews. The data were examined using PLS-SEM and thematic analysis. The results revealed that tangibility, dependability, responsiveness, assurance, empathy, digital service quality, accessibility and affordability were drivers of higher customer satisfaction. The most powerful predictor of customer satisfaction was digital service quality (β = 0.205), followed by accessibility and affordability (β = 0.191) and tangibility (β = 0.182). Customer satisfaction has a strong positive effect on customer loyalty and mediates the link between service quality and customer loyalty. A qualitative study indicated that consumers appreciated staff competence, reliability, speed of service, cleanliness, simple access to digital services and low price in their fast- food experiences. Finally, the research reveals that the fast-food sector in Cambodia should improve service quality and technology-enabled service features to improve customer happiness and loyalty. The results are relevant for fast-food operators, managers and regulators who want to improve service and retain long-term consumers in a competitive industry.