The Effect of Service and Food Quality on Customer Satisfaction and Hence Customer Retention

The aim of this study was to investigate the relationships between service quality, food quality, customer satisfaction and customer retention in limited service restaurants in Jordan. A questionnaire-based survey was distributed to 400 students served at 10 limited service restaurants in the neighbourhood of universities in Amman, the capital city of Jordan. Service quality was measured in terms of SERVQUAL attributes. The key dimensions of food quality, customer satisfaction and customer retention were identified through literature. The data collected (283 valid questionnaires) were analysed using SPSS 20.0. The findings showed that service quality and food quality have a positive influence on customer satisfaction. In addition, service quality dimensions besides customer satisfaction have a positive influence on customer retention. Finally, the results confirmed that customer satisfaction mediates the relationship between service quality and customer retention. The small size of the sample is the main limitation of this study. The practical implications of this study are founded on the fact that limited service restaurants in the neighbourhood of universities should realize the critical role of service and food quality in satisfying their customers as an antecedent of their retention. This study is original as it examines the relationships between service and food quality and customer satisfaction and retention in a specific type of restaurants in Jordan.