QUIRINO STATE UNIVERSITY

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COLLEGE OF HOSPITALITY AND TOURISM MANAGEMENT
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ANALYZING THE SUCCESS FACTORS AND CUSTOMER SATISFACTION IN

DAMBAM

A Research

Presented to the

Faculty of the Bachelor of Science Tourism Management

QUIRINO STATE UNIVERSITY

Diffun, Quirino

In Partial Fulfillment

Of the Requirements in the Subject

OPERATIONS MANAGEMENT IN TOURISM AND HOSPITAL INDUSTRY

( BME 1 )

By

JACELY A. SAGAO

ANSELE - ALEX M. DIEGO

KRYSTINE CASSANDRA D. MATUTE

SHYRA LOPEZ

ARCHIELES H. BOLLA

SHANELLE MAE C. SERRANO

JULIE BETH MARCELO

December 2024
APPROVAL SHEET

In partial fulfillment of the requirements in the subject OPERATIONS

MANAGEMENT IN TOURISM AND HOSPITAL INDUSTRY (BME1), this research
 QUIRINO STATE UNIVERSITY
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study titled, ANALYZING THE SUCCESS FACTORS AND CUSTOMER
SATISFACTION IN DAMBAM, has been prepared and submitted by JACELY A.
SAGAO, ANSELE-ALEX M. DIEGO, KRYSTINE CASSANDRA D. MATUTE, SHYRA
LOPEZ, ARCHIELES H. BOLLA, SHANELLE MAE C. SERRANO And JULIE BETH
MARCELO who is hereby recommended for Oral Examination.

KRISTINE BERNADETTE M. APOLONIO, DHM

Subject Instructor

Approved by the Panel for Oral Examination with a grade of __________.

PANEL OF EXAMINERS

MARICEL B. BARROGA, MSHM

Chairman

ANDREI JOSEF C. GUIAMOY,MATM KRISTINE BERNADETTE M. APOLONIO,

DHM.
Member Member

Accepted and approved in partial fulfillment of the requirements in the subject,

OPERATIONS MANAGEMENT IN TOURISM AND HOSPITAL INDUSTRY
(BME1)

MARICEL B. BARROGA, MSHM

Program Chair, BSTM

DEDICATION
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This research is dedicated to our families, whose unwavering support and encouragement
have been essential throughout this journey; to our friends, whose camaraderie and
understanding provided much-needed respite during challenging moments; to our colleagues,
whose insightful discussions and collaborative spirit enriched the research process; and to our
instructor Mrs. Kristine Bernadette Apolonio, Whose guidance, patience, and expertise have
been invaluable in shaping the direction and success of this work. We are deeply grateful to
each of you for your continuous support, and this work is a reflection of your belief in us.

ACKNOWLEDGEMENT

We would like to express our sincere gratitude to all those who contributed to this study on
the success factors and customer satisfaction in Dambam. First and foremost, we extend our
heartfelt thanks to the business owners and staff in Dambam for generously sharing their
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valuable insights. Your willingness to discuss your experiences and challenges has been
instrumental to the success of this research.

We also wish to recognize the support and guidance provided by the research team, as well as
everyone who assisted in the data collection process. This study would not have been
possible without your collective dedication and efforts.

This research is dedicated to the resilient and hardworking business owners of Dambam,
whose dedication and perseverance play a vital role in the economic development of their
community. Their stories, challenges, and successes are at the heart of this study, and it is
their continued growth and achievements that inspire this work.

TABLE OF CONTENTS
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Abstract

This study investigated the factors contributing to business success and customer
satisfaction in Dambam. A qualitative research design was employed, involving interviews
with local business owners and managers. Thematic analysis revealed several key success
factors: strong customer focus, effective marketing and promotion, and innovation. Customer
satisfaction was identified as a critical driver of business success, with strategies such as
building customer loyalty, addressing customer complaints, and maintaining quality
standards being highlighted. Challenges faced by businesses included managing customer
expectations and ensuring timely service. The findings provide valuable insights for local
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businesses to enhance their strategies, improve customer satisfaction, and achieve sustained
growth.

CHAPTER 1.
INTRODUCTION

RATIONALE:

Analyzing success factors and customer satisfaction in Korean restaurants requires

understanding both national and international contexts. Research indicates that the
“sociocultural” factors significantly influence customer satisfaction in ethnic restaurants,
including Korean cuisine. A study found that customers’ preferences for Korean food were
driven by novelty and diversity, which positively impacted their satisfaction and revisit
intentions (Kim et al., 2018)
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Globally, the rise of Korean cuisine is attributed to the “Hallyu” wave, which has
heightened interest in Korean culture and food. This cultural phenomenon has led to
increased demand for Korean restaurants, with success linked to effective marketing
strategies and the adaptation of menu offerings to local tastes (Streit, 2021)[5]. Furthermore,
the quality of food and service remains paramount in determining customer satisfaction
across various markets (Kwon et al., 2015)[6].

In today’s competitive market, understanding what makes businesses successful and

how happy their customers are is more important than ever. In Dambam, where the local
business scene has its own special features, it is essential to find out what drives success and
how it affects customer satisfaction.

The reason we chose Dambam is to explore how they continue to thrive despite
negative feedback and intense competition. Understanding their success can reveal key
factors such as effective management, strong customer relationships, and a commitment to
innovation.

In addition, the name “Dambam” for this business was inspired by the owner’s
passion for watching Korean dramas. The owner came across a scene featuring a restaurant
named “Dambam,” which led to the decision to adopt this name for their own establishment.

In today’s competitive market, understanding what makes businesses successful and

how happy their customers are is more important than ever. In Dambam, where the local
business scene has its own special features, it is essential to find out what drives success and
how it affects customer satisfaction.

This research will look into what factors contribute to business success in Dambam
and how these factors influence how satisfied customers feel. By studying the local business
environment and what customers expect, we hope to provide practical insights for businesses.
These insights can help them improve their strategies, offer better services, and perform
better overall.

Our goal is to offer clear, actionable recommendations based on real data that can
help business owners and managers in Dambam make better decisions. This will not only add
to our understanding but also give practical advice that supports business growth and
customer satisfaction in the municipality.

OBJECTIVES OF THE STUDY:

 To identify the key factors that contribute to the success of businesses in Dambam.

 To understand the importance of relationship between customer satisfaction and the

success of businesses in Dambam.

 To identify and analyze the key strategies and practices that have contributed to the
successful growth of a business.
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 To explore the challenges faced by businesses in maintaining high customer
satisfaction in Dambam.

Definition of Terms

1. Success factors – A success factor is an element, condition or characteristic that

contributes significantly to achieving desired outcomes, goals or objectives. Success
factors can be individual, organizational or project-specific.
2. Challenges – Difficulties, obstacles, or demanding situations requiring effort and
perseverance to overcome.
3. Customer satisfaction – Meeting or exceeding customer expectations, resulting in
satisfaction and loyalty.
4. Customer Loyalty - Repeat business and long-term commitment to a brand, driven by
satisfaction and trust.
5. Strategies – Planned actions to achieve specific goals or objectives.

CHAPTER 2
METHODOLOGY

Research Method

This study used a qualitative research design to analyze the success factors and
customer satisfaction of Dambam. In the context of this study, it aims to describe the current
state of affairs and gather information about the variables of interest.

The target respondents for this study were the staff and manager of Dambam. They
were selected as they have firsthand knowledge and experience with the operations of the
business. Participants were informed about the purpose of the study, the voluntary nature of
their participation, and the confidentiality of their responses.

A questionnaire was utilized as the primary data collection instrument. The

questionnaire was designed to elicit information from the staff and manager of Dambam
regarding their perceptions of the business’s success factors and customer satisfaction. These
will utilize guiding questions that address key success factors, the relationship between
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customer satisfaction and business success, challenges in maintaining high customer
satisfaction, and strategies implemented to enhance it.

Data analysis will involve thematic analysis for the qualitative interview data,
enabling the identification and interpretation of patterns and themes. Through this
comprehensive analysis, the research aims to clarify the relationship between identified
success factors and customer satisfaction in Dambam. The findings will inform actionable
recommendations for local businesses to enhance their strategies, improve customer
satisfaction, and achieve greater success.

CHAPTER 3
RESULTS AND DISCUSSION

Thematic Analysis of Dambam’s Success Factors and Customer Satisfaction

3.1 Core Business Strategies

3.1.1. Innovation and Product Development:

According to Reichardt, 2024, new product launches help businesses stay relevant by
addressing evolving consumer needs and preferences, thereby increasing customer
satisfaction. Fresh offerings can attract new customers and boost sales from existing ones, as
consumers are often drawn to innovative products (QuickReply, 2022). In this study, the
respondents highlighted the importance of introducing new products and services to stay
ahead of the competition.

C1.” Product promotion on facebook and innovation of new product”

C5. “By expanding services of products and building loyalty programs”
Own interpretation support with rrl
Cite
Participant not correspondent
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3.1.2. Strong Customer Focus:

“Effective Methods for Assessing Customer Needs.” Harvard Business School Online
emphasizes that understanding customer needs is crucial for retaining customers and
enhancing satisfaction, which directly impacts business success.(Datar, S. 2021). The
findings identified understanding customer needs and preferences as a crucial factor in
business success.

C3. “Understanding customer needs and preferences”

C4. “Understanding the target market, providing a quality product to serve”

Supported by the statement of Natives, 2024, understanding customer preferences and needs
is crucial for successful product development,” highlighting the importance of aligning
offerings with customer expectations”.

3.1.3. Effective Marketing and Promotion:

Buffer 2023 defines “social media is a powerful digital marketing tool — it allows you to
meet your target customers where they are and build meaningful relationships with them”.In
the context of the findings, leveraging social media and online platforms was mentioned as a
key strategy for reaching target customers.

C1.”Product Promotion on facebook and innovation of new product”

C2. “Promoting product through social media accounts”
C3. “leveraging social media and online platforms”

The correspondents in this study highlighted the importance of social media when it comes to
promotion and marketing. This is in line with Kristen Baker (2024) who stated that
promoting and sharing your products on social media is a simple way to boost conversions,
and increase sales because you’re advertising to people who have opted to engage with you
by following your account.

3.2. Customer Satisfaction as a Key Driver

3.2.1. Building Customer Loyalty

Heryana (2020) stated that the factors that make customers intend to make repeat purchases
are positive reviews and information provided by customers to other people regarding a good
or service. The respondents emphasized the importance of repeat business and positive word-
of-mouth.Through this, it is possible that word of mouth can lead to repeat purchasing
behavior and customer visits (Alhulail et al., 2019)

C1. “Customer satisfaction is very important because they’re the target market and it will
give us a positive feedback and a possibility to tell others”
C3. “It is important because satisfied customers return and recommends your business to
their friends and relatives”
C5. “Satisfied customers leads to repeat business, positive reviews, and referrals”
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3.2.2. Addressing Customer Complaints

Adzhigalieva et al. (2022) found that complaint handling significantly influences customer
satisfaction, loyalty, and retention, establishing a model linking these variables.This is in line
with the findings stated that effective complaint handling was seen as essential for
maintaining customer satisfaction.

C1. “We handle customer complaints or negative feedback by listening to the customer and
apologizing sincerely and we yse the customer complaints as an opportunity to grow and
improve lur business”
C2.”When handling customer complaints, listen to their complaint, have emphaty, apologize
for that experience and take action to solve the problem”
C5. “We take a proactive approach by listening carefully, empathizing with the customer and
resolving issues quickly”

3.2.3. Maintaining Quality Standards:

The quality of service determines whether an organization succeeds or fails. Businesses and
organizations use customer satisfaction measures in almost every field because satisfied
customers are essential for a profitable business operation (Ali et al., 2021). Zarezadeh et al.,
2022 also stated that food quality plays a central role in influencing customers’ likelihood of
returning to a hotel restaurant. Serving fresh, delicious, and well-prepared dishes increases
the likelihood of positive repeat experiences for guests. This study highlighted the
consistency in product and service quality as a critical factor. This is supported by the study
of Ali et al.(2021), that highlights the critical role of staff competence and friendliness in
influencing guest perceptions of service quality and repeat intention.

C3. “maintaining consistency in product or service quality”

C4. “maintaining quality service”

3.3. Challenges and Opportunities

3.3.1. Managing Customer Expectations:

To limit the loss of orders and respond to the expectations of customers, many restaurants and
catering businesses have chosen to renew their offerings by introducing or improving food
ordering delivery services (Khan, 2020), including delivery of food shopping and raw
materials in addition to ready-made foods. The study identified high customer expectations as
a common challenge to them.
C1. “One of the challenges was customer high expectation”
C2.” The common challenges are the customer’s expectation (quality service, time
management)”
C3.” Managing expectation and maintaining quality Service”

3.3.2. Ensuring Timely Service:

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Meeting customer expectations for timely service was also mentioned as a challenge.The key
to negate negative emotion is to set reasonable prices and providing efficient services in a
timely manner. To develop more effective and efficient strategies for ensuring fairness, thus
resulting in higher levels of customer retention and profits. (Namkung, Y. and Jang, S.C.(S).
(2019)

C2. The common challenger are the customer’s expectation (quality service, time
management)
C5. Ensuring that customer service is always responsive and helpful

CHAPTER 4.
CONCLUSIONS AND RECOMMENDATIONS

CONCLUSION

The insights gathered from the five correspondents reveal several key factors
contributing to business success, particularly in the realms of customer satisfaction and
growth strategies. A common theme is the emphasis on hard work, dedication, and patience,
which are foundational for navigating the challenges of running a business. Understanding
the target market and staying updated with industry trends are crucial for innovation and
effective adaptation of offerings. Effective communication and strong teamwork also play
critical roles in achieving business goals. Leveraging social media for product promotion and
brand building emerged as a vital strategy, as it enhances visibility and fosters customer
loyalty. Customer satisfaction is paramount; satisfied customers are more likely to return,
share positive experiences, and provide valuable feedback for improvement. However,
businesses face challenges such as managing high customer expectations and ensuring
consistent service quality. Each correspondent highlighted the importance of listening to
customers, empathizing with their concerns, and responding swiftly to complaints. In
conclusion, a successful business combines hard work with strategic market understanding,
prioritizing customer satisfaction to foster loyalty and achieve sustainable growth in a
competitive landscape.

RECOMMENDATIONS

1. Dambam may conduct regular market research to deepen the understanding of

customer preferences, trends, and expectations, with the support of academic
institutions like universities and research institutions.
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2. Dambam may establish structured feedback channels to actively seek customer

opinions and complaints, with the support of CRM software providers like Salesforce,
HubSpot, or Zoho.

3. Dambam may invest in comprehensive training programs for employees focusing on

customer service excellence and effective complaint resolution, with the support of
training and development consultants.

4. Dambam may utilize social media platforms and digital marketing strategies to
enhance brand visibility and engage with customers, with the support of social media
platforms like Facebook, Instagram, Twitter, and LinkedIn.

5. Dambam may create loyalty programs that reward repeat customers and encourage
satisfied customers to share their experiences through referral initiatives, with the
support of marketing and sales consultants.

REFERENCES:

Bonfati et. Al(February 2023) “ Improving online food ordering and delivery service quality
by managing customer expectations: evidence from Italy” British Food Journal 125(2)
10.1108/BFJ-08-2022-0694

Desman Hidayat, Aryo Bismo, Amelia Ruwaida Basri (2020), “The effect of food quality and
service quality towards customer satisfaction and repurchase intention (case study of hot plate
restaurants)”, Jurnal Manajemen Bisnis 10 (01), 01-09, 2020

G Qin, Victor R Prybutok (2019), “Determinants of customer-perceived service quality in

fast-food restaurants and their relationship to customer satisfaction and behavioral intentions”
Quality Management Journal 15 (2), 35-50, 2019

Junaid Aftab, Huma Sarwar, Q-u-a Sultan, M Qadeer (2020), “Importance of service quality
in customer satisfaction (A study on fast food restaurants)”, Entrepreneurship and Innovation
Management Journal 4 (4), 161-171, 2016

Manal et. Al (September 2024) “From Taste Buds to Loyalty: How Food and Service Quality
Influence Customer Satisfaction and Repeat Intentions in Hotel Restaurants”, Information
Management and Business Review 16(3(I)):397-406, 10.22610/imbr.v16i3(I).3880

M. Jesus Yagüe Guillén, Marta Pedraja Iglesias (2022) “Perceived quality and price: their
impact on the satisfaction of restaurant customers”, International Journal of Contemporary
Hospitality Management Vol. 16 No. 6, pp. 373-379.
https://doi.org/10.1108/09596110410550824
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Namkung and Jang et. Al( 2020),”Does Food Quality Really Matter in Restaurants? Its
Impact On Customer Satisfaction and Behavioral Intentions”,
https://journals.sagepub.com/toc/jhtd/31/3 https://doi.org/10.1177/1096348007299924

Naveed Ur Rehman Khan, Ubedullah Amjad Ali Shaikh (2021), “IMPACT OF SERVICE
QUALITY ON CUSTOMER SATISFACTION: EVIDENCES FROM THE RESTAURANT
INDUSTRY IN PAKISTAN”, Editura Universitaria Craiova,
https://www.ceeol.com/search/article-detail?id=40075

Omidvar, M. and Palazzo, M. (2024), “Investigating the impact of restaurants’ CSR activities
on customer satisfaction: a focus on CSR dimensions”, The TQM Journal, Vol. ahead-of-
print No. ahead-of-print. https://doi.org/10.1108/TQM-01-2024-0028

Shinta et. Al (2024), “The Influence of Crowdedness and Brand Experience to Increase the
Customer Loyalty in a Spicy Noodle Restaurant”, Journal Social Economic of Agriculture
13(1):11, http://dx.doi.org/10.26418/jsea.v13i1.75400

APPENDICES:

Appendix A. Guide Questions:

1. What do you think are the main reasons that makes your business successful?

2. What strategies or practices have helped your business grow?

3. How important do you think customer satisfaction is to your business’s success?

4. What are the common challenges you face in maintaining high customer satisfaction?

5. How do you handle customer complaints or negative feedback?

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Appendix B. Curriculum Vitae