What Drives Customer Satisfaction, Loyalty, and Happiness in Fast-Food Restaurants in China? Perceived Price, Service Quality, Food Quality, Physical Environment Quality, and the Moderating Role of Gender

Abstract

The fast-food service industry has been growing rapidly across China over the last few decades. In accordance with the rising consumption level in the country, Chinese customers care increasingly about their food choices. The purpose of this study is to investigate the factors that can influence customer satisfaction, loyalty, and happiness, with a particular focus on the moderating role of gender. Data were collected through an online survey completed by customers who visited Western fast-food restaurants (KFC, McDonalds, etc.) in China. The structural equation model was applied to test 12 hypotheses. Results showed that perceived price, food, service, and physical environment quality positively affected customer satisfaction. Perceived price can significantly influence customers’ judgement of the quality dimensions of a restaurant. Moreover, customer satisfaction and happiness can lead to a sense of loyalty. Happiness functions as a mediator between satisfaction and loyalty. Nonetheless, our findings indicated that customers’ perceptions of food quality based on price and satisfaction levels based on service quality differ significantly between the genders, which demonstrated that gender moderation exists in food consumption. This study will contribute to a better understanding of managerial and theoretical perspectives, which will be beneficial for subsequent research.