Factor influencing customer loyalty of pizza hut,

Hyderabad

Business Statistics
A project report
Submitted by
Tureshna Kumari
Sadia Keeriyo
Alishba Imtiaz
Maham Virk
Sheeraz Ali
Sagar Kumar

Submitted To

Mr. Zuhaib Khokhar

Date:
December 3.2019

Contents
Abstract…………………………………………………..4
Chapter 01…………………………………………..5
Introduction…………………………………………5
1.1 introduction…………………………………….5
1.1.1 Customer loyalty……………………………5
1.1.2 Customer satisfaction…………………….5
1.1.3 Service quality………………………………..5
1.2 Objective of study………………………….…….5
1.3 Research question……………………………….5
1.4 Hypothesis…………………………………………..6
1.5 Research gap………………………….……………6
1.6 Research significance…………….…………….6
Chapter 2……………………………………………………4
2.1 literature review…………………………………..4
Chapter 3……………………………………………………5
Research methodology………………………………5
3.1 Data…………………………………………………….5
3.2 Questionnaire arrangement ……………….5
3.3 sampling technique…………………………….5
3.4 variables……………………………………………..5
3.4.1 Independent variable………………………5
3.4.2 Dependent variable………………………...5
Conceptual framework
Theoretical framework
Chapter 4…………………………………………………6
Data analysis
4.1 Reliability (Cronbach’s Alpha) Test ……………………9
4.2 Factor loading (Confirmative Factor analysis:CFA)…..9
4.3 Regression ananlysis …………….10
Chapter 05
Conclusion and recommendation
5.1 conclusion
5.2 recommendation
Bibliography
Appendices……………
Appendices A: Survey Questionnaire

List Of Tables
Table 3.1 Conceptual Framework
Table 3.2 Theoretical Framework
Table 4.1 Reliability test of customer satisfaction
Table 4.2 Reliabilty test of customer service quality
Table 4.3 Reliabilty test of customer loyalty
Table 4.4 CFAof customer satisfaction
Table 4.5 CFA of Service quality
Table 4.6 CAF of customer loyalty
Table 4.7 Regression analysis of Customer satification
Table 4.8 Regression analysis of service quality
Table 4.9 Regression analysis of Customer loyalty
Abstract
Customers are the important means of any organization to reach at higher level customer
loyalty plays an important role in the success of the organization there are the many factors
effect the loyalty of the customers in pizza hut a sample of the hundred respondents were
selected there were 70 males and 30 females the data was collected through the IBM spss
software statistics version 25 major five (3) tests were done such as reliability (Cronbach’s
Alpha Factor Loading , (confirmative analysis : CAF) and final linear regression
Analysis there were two variables one in independent variable other is dependent variable the
independent variable includes customer service quality and customer satisfaction the dependent
variable include customer loyalty the data was collected through the questionnaire there were
15 close ended questions the data was analyses was through the spss software the results shows
that there is positive relationship between customer satisfaction and service quality on the
customer loyalty of pizza hut

Keywords
Customer loyalty, customer satisfactions, service quality, pizza hut

INTRODUCTION
In general, we saw on this topic factors affecting customer loyally of pizza hut Hyderabad ,
Pakistan
Customer satisfaction, quality service that effect the customer loyalty towards any brand, these
factors is not related to each other , customer feel satisfied when brand provide the value in
return for which they have paid for purchase ,if the customer buy the product it does not mean
that customer is loyal to towards the brand may be it show that the brand provide the good
quality product and good quality service that shows the customer satisfaction
The customer feel satisfied when the product meet the expectation customer expect the certain
kind of service from the brand . customer expect few things from the brand like quality of
product and quality of service if the brand fulful their expectation then customer show his
satisfaction towards brand .
The customer feel dissatisfied when the product didn’t meet their expectation the brand fails
to fulfill the expectation in term of quality ,in term of service wil lead to customer
dissatisfaction
The term fast food is recognized by Merriam-Webster .

Customer loyalty
Customer loyalty helps to business to improve the brand image. as the brand has already won
trust of loyal customer they are more likely to share positive experience than new customer .
this eventually helps the brand to retain more customer and improve customer and improve
customer loyalty as well as brand image .As the pizza hut have high customer loyalty because
its provide quality services and fulfil the expectation of customer ,so large num of people are
loyal towards pizza hut. customer loyalty is described as the strong intention of customers to
buy the products or services repeatedly from the same company. (Eshghi et al, )

Customer satisfaction and service quality

There are many factors that are part of customer loyalty . In this time its has been very tough
for service industry to achieve higher customer satisfaction . to achieve high customer
satisfaction, companies enhance their service quality .
Service quality is the main factor that helps the organization to sustain in highly competitive
environment , by improve their service quality many firms use this technique to attract and
retain their customer
Advance technology helps companies to upgrade their resulting in greator service quality. the
feeling of pleasure and expectation fulfillment is known as Satisfaction ( Zairi (2000)) .
customer satisfaction is the part of marketing and play important role in the market. In any
organization satisfaction of customer is more important, because if your customer is satisfied
with your services or products, your position will be good in the market. Oliver (1987)

Objectives of the Study

. To identify the factors that can affect customer loyalty in pizza hut
. To identify the factors that affect the customer statisfication

Research question

. What are the factors that affect the customer loyalty of this brand .

1.4. Hypothesis:
H1: Customer satisfaction affects the customer loyalty.
H2: There is a relationship of Service Quality on Customer Loyalty in pizza hut.

Research gap
Many research has already done on the factor affecting customer loyalty on pizza hut , after in
deep research and investigation it was analysed the gap that in Hyderabad , Pakistan no such
study is being entertainment research has been done over all there are no specific area being
touched . going more specific no any research was perform to measure the factors affecting
customer loyalty in pizza hut
Research significance
This research will entail the detailed analysis of the potential of Hyderabad (Pakistan)
marketing in the pizza hut. This piece of study will enlighten with the sense of idea about
people of Hyderabad with regard to what they prefer the most pizza hut .With the help of this
thesis, it could easily be highlighted the lacking in services from the pizza hut , what they can
do to improve the level of services .
 Chapter 02

Literature Review:

Service quality and customer loyalty:

Danish et al.,(2018) Emphasised on determinants of loyalty of a
customer in the fast food industry of Lahore. The objective of this study was to find out the
factors that influence customer loyalty. The study analyse the relationship of service quality
and customer expectations in respect to the customer satisfaction and loyalty. The data was
collected using five point Likert scale questionnaire. Reliability of information was checked
using smart PLS and SPSS. On the basis of these analysis it was concluded that independent
variable such as service quality, customer satisfaction have significant impact on dependent
variable named customer loyalty.
Customer satisfaction and customer loyalty

Shakir et al., (2018) Shed light on the focus of customer satisfaction

and through customer satisfaction and customer loyalty. For this reason sample of 500
respondents was nominated which was based on non-probability sampling, however
structural equation modelling was used to analyse the constructs. The statistical results were
analysed using AMOS and SPSS. This study provides the results that clearly indicate that
customer satisfaction is the key factor in capturing customer loyalty.
Chapter 03

Research methodology:
This research focuses the impact of
Independent variables such as service quality, customer
satisfaction on dependent video build customer loyalty on pizza
hut.
3.1 Data:
Primary data used to conduct the research content all the consumers who are habitual
of pizza hut a questionnaire contain close ended questions are distributes among the 100
responded

3.2 Questionnaire arrangement:

The questionnaire consists of two part; The first part of the questionnaire consist of
Basic questions related to demographics and personal information such as profession and
celery. However the second part of the questionnaire consists of total 15 questions that are
close ended.

3.3 Sampling technique:

Convenience sampling technique was used To distribute the questionnaire and SPSS
version 21 software was used to test the research.

3.4 Variables:

3.4.1 Independent variables:

There are two variables named as independent and dependent variables. Independent
variables are two named as service quality and customer satisfaction.
3.4.2 Dependent variable:
There is only one dependent variable and that is customer
loyalty.
Conceptual framework:

Independent variables Dependent Variable

Service quality Customer loyalty
Customer satisfaction

Independent Variable
 Dependent Variable

Customer Satisfaction

Customer Loyalty

Service Quality

Theoretical framework
o Variable Items Reference
1. Customer loyalty 1. Do you prefer other
pizza restaurants (Eshghi et al, )
over pizza hut?
2. If they higher their
prices would you
still prefer pizza
hut?
3. if they delay in their
delivery service
would you still
prefer pizza hut ?
4. if in any case their
staff member
misbehave with
customer would you
still prefer pizza
hut?
5. will you always
prefer pizza hut?
2. Customer Satisfaction 1. Are you satisfied
with the service of Oliver (1987)
pizza hut ?
2. Is Pizza hut gives
the services that
meet your need and
expectation?
3. Are you satisfied
with the price of
pizza hut ?
4. Are you satisfied
with the ambiance?
of pizza hut
5. Is Pizza hut provide
the quality food?
3. Service Quality 1. Is pizza hut reliable
? Zairi (2000)
2. Overall
performance of the
pizza hut is good ?
3. Are you satisfied
with the home
delivery service of
the pizza hut ?
4. Are they providing
comfortable space
for dining ?
5. Is their staff
members behaviour
is good with
customers?
 Chapter no.4
Data analysis
4.1) Reliability (Cronbach’s Alpha) Test
The Reliability (Cronbach’s Alpha) of Customer Satisfaction for Pizza Hut is 0.755
respectively, which is greater than 0.60 or 0.70, so the construct is reliable.

Reliability Statistics
Cronbach's Alpha Cronbach's Alpha N of Items
Based on
Standardized
Items

.755 .757 5

Table 4.1 reliability test of customer satisfaction

The Reliability (Cronbach’s Alpha) of Service quality for Pizza Hut is 0.773 respectively,
which is greater than 0.60 or 0.70, so the construct is reliable.

Reliability Statistics
Cronbach's Alpha Cronbach's Alpha N of Items
Based on
Standardized
Items

.773 .775 5

Table 4.2 reliability test of service quality

The Reliability (Cronbach’s Alpha) of Service quality for Pizza Hut is 0.837 respectively,
which is greater than 0.60 or 0.70, so the construct is reliable.

Reliability Statistics
Cronbach's Alpha Cronbach's Alpha N of Items
Based on
Standardized
Items

.837 .834 5

Table 4.3 reliability test of Customer loyalty

4.2. Factor Loading (Confirmative Factor Analysis: CFA)

In Pizza Hut, Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy is .685 (68.5%)
and Sig. is .000 of Customer Satisfaction. As KMO Measure of Sampling Adequacy is
greater than 0.60 (60%) and Significance Value is less than 0.05, the construct is significant.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .685
Approx. Chi-Square 133.773

Bartlett's Test of Sphericity Df 10

Sig. .000

Table 4.6 CFA of Customer Satisfaction

In Pizza Hut, Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy is .791

(79.1%) and Sig. is .000 of Service Quality. As KMO Measure of Sampling Adequacy is
greater than 0.60 (60%) and Significance Value is less than 0.05, the construct is significant.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .791
Approx. Chi-Square 120.107

Bartlett's Test of Sphericity Df 10

Sig. .000

Table 4.7 CFA of Service Quality

In Pizza Hut, Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy is .825 (82.5%) and
Sig. is .000 of Customer Loyalty. As KMO Measure of Sampling Adequacy is greater than 0.60
(60%) and Significance Value is less than 0.05, the construct is significant.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .825
Approx. Chi-Square 205.663

Bartlett's Test of Sphericity Df 10

Sig. .000

Table 4.8 CFA of Customer Loyalty

4.3. Regression Analysis

In Regression Analysis of Customer Satisfaction and Customer Loyalty of Nokia states that
correlation between Customer Loyalty and Customer Satisfaction is 38.3% and t value is 12.65 which
is greater than 1.96 and Sig. is .000 which is less than 0.05 so the hypothesis: “customer satisfaction
positively affects the customer loyalty” is accepted

Variables Entered/Removeda
 Model Variables Entered Variables Method
Removed

1 COMP_CSb . Enter

a. Dependent Variable: COMP_CL

b. All requested variables entered.

Model Summary
Model R R Square Adjusted R Std. Error of Change Statistics
Square the Estimate R Square F Change df1 df2 Sig. F Change
Change

1 .383a .147 .138 .927 .147 16.870 1 98 .000

a. Predictors: (Constant), COMP_CS

Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficients

B Std. Error Beta

(Constant) 1.737 .248 7.011 .000

1
COMP_CS .490 .119 .383 4.107 .000

a. Dependent Variable: COMP_CL

Regression
In Regression Analysis of Brand Image and Customer Loyalty of Nokia states that the
correlation between Customer Loyalty and Brand Image is 24.6% and t value is 9.5 which is
greater than 1.96 and Sig. is .000 which is less than 0.05 so the hypothesis: “Service quality
effect the customer loyalty” is accepted
Variables Entered/Removeda
Model Variables Entered Variables Method
Removed

1 COMP_SQb . Enter

a. Dependent Variable: COMP_CL

b. All requested variables entered.

Model Summary
Model R R Square Change Statistics
 Adjusted R Std. Error of R Square F Change df1 df2 Sig. F Change
Square the Estimate Change

1 .246a .060 .051 .973 .060 6.292 1 98 .014

a. Predictors: (Constant), COMP_SQ

Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficients

B Std. Error Beta

(Constant) 2.096 .252 8.311 .000

1
COMP_SQ .350 .139 .246 2.508 .014

a. Dependent Variable: COMP_CL

 Chapter 5

5.1 Conclusion
From the findings, it is found that customer satisfaction and service quality play a very
important role towards the customer loyalty in pizza hut. Hence, all two (2) factors namely
customer satisfaction, and service quality have a significant direct (positive) relationship on
customer loyalty of pizza hut.

5.2 Recommendation
Pizza hut should improve their quality service.

BIBLIOGRAPHY
1. Danish et al.,(2018) factors affecting customer loyalty , American journal of business
management .
2. Shakir et al., (2018) relationship marketing of service .journal of academy of
marketing science 456-600