|| According to literature review, the evaluation scope of customer satisfaction includes product quality, service quality, and price fairness (Zeithaml et al., 2006). It would increase the customer satisfaction as the real service quality is better than expected by customer (Oliver, 1980). Thus, the service quality had been the important factor to make customers more satisfied (Parasuraman et al., 1988). Moreover, improving customer satisfaction could increase customer loyalty (Fornell, 1992). Therefore, it is a critical issue to enhance customer’s perceived product quality, service quality, and price fairness.
In recent years, the life style of people in Taiwan has been changed due to economic growth and changing population structure. It making people to eat outside instead of eating at home and provides the opportunities for the new restaurants development. Taiwan is famous with its delicious food, so we can see variety of restaurants everywhere. The key point of their success is they always offer excellent quality of products and services. More specifically, they offer the products and services quality in terms of customer oriented. Therefore, this study uses restaurants as research objects.
The purposes of this study are to explore the effects of perceived product quality, service quality, and price fairness on customer satisfaction and loyalty and uses restaurants as example. This study adopted questionnaire to collect data. The empirical data were analyzed by running SPSS software 18.0, and performing structural equation modeling by running AMOS software 18.0 to confirm the proposed hypotheses.
The results of this study shown that all the independent variables, including perceived product quality, service quality, and price fairness, have significant positive influence on customer satisfaction and loyalty. Therefore, maintaining a high quality of products and services, and providing reasonable and fair price to customers have become the focus of the restaurant management.