JAN 2013

A STUDY ON FACTORS THAT INFLUENCING CUSTOMER PERCEIVED VALUE

TOWARDS KFC RESTAURANT

RESEARCH PROPOSAL

SITI NOR JAMALIA BINTI ABD JAMAL

2010747727

Submitted in Partial Fulfillment of the Requirement for the Bachelor of Business

Management (Hons.) Marketing

FACULTY OF BUSINESS MANAGEMENT

UITM PERLIS

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 TABLE OF CONTENTS

TABLE OF CONTENTS ........................................................................................................... 2

CHAPTER 1 .............................................................................................................................. 3
INRODUCTION ........................................................................................................................ 3
1.1 Background of the Company....................................................................................... 3
1.2 Background of the Study ............................................................................................. 5
1.3 Problem Statement ...................................................................................................... 6
1.4 Research Questions ..................................................................................................... 7
1.5 Research Objectives .................................................................................................... 8
1.6 Significance of the Study ............................................................................................ 9
1.7 Scope of the Study..................................................................................................... 10
CHAPTER 2 ............................................................................................................................ 12
LITERATURE REVIEW ........................................................................................................ 13
2.1 Introduction ............................................................................................................... 13
2.2 Customer Perceived Value ........................................................................................ 14
2.3 Food Quality.............................................................................................................. 14
2.4 Price........................................................................................................................... 15
2.5 Restaurant image ....................................................................................................... 15
2.6 Services ..................................................................................................................... 15
2.7 Theoretical Framework ............................................................................................. 16
2.8 Hypothesis Statement ................................................................................................ 17
CHAPTER 3 ............................................................................................................................ 19
METHODOLOGY .................................................................................................................. 19
3.1 Research Design ........................................................................................................ 19
3.2 Measurement of Variables ........................................................................................ 21
3.3 Population and Sample .............................................................................................. 22
3.4 Data Collection .......................................................................................................... 24
3.5 Plan Data Analysis .................................................................................................... 26
BIBLIOGRAPHY .................................................................................................................... 27

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 CHAPTER 1

INRODUCTION

1.1 Background of the Company

KFC Holdings (Malaysia) Berhad, KFCH is part of QSR Brands Bhd (QSR Brands) –

a leading, fully-integrated quick-service restaurant enterprise and the local franchisee

and operator of the KFC and Pizza Hut restaurants. QSR Brands is in turn a subsidiary

of Kulim (Malaysia) Berhad, a conglomerate focusing mainly on palm oil operations,

aleochemicals1, biodiesel production and quick service restaurants.

KFCH operates the KFC chain of restaurants in Malaysia, Singapore, Brunei,

Cambodia and India which over 640 outlets and also the Rasamas chain restaurants in

Malaysia and Brunei which have 27 outlets. The Group also owns 74 Kedai Ayamas,

making KFCH the nation’s first branded chicken-based retail chain. In addition, to

support KFCH core activities, KFCH are extensively involved in poultry production

and processing, as well as a host of ancillary businesses such as vegetable farming,

baking and sauce production.

The vision of KFCH is to be “the leading integrated food services group in the Asia

Pacific region based on consistent quality products and exceptional customer-focused

service”.

1
Oleochemicals are generally chemical product derived from animal or vegetable triglycerides, even if they
contain elements of petrochemical origin

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While the missions are:

 To maximize profitability

 Improve shareholder value

 Deliver sustainable growth year after year

KFC is part of Yum! Brands, Inc., the world’s largest restaurant system with more than

38,000 KFC, Pizza Hut, Taco Bell, Long John Silver, A&W and WingStreet restaurants in

more than 110 countries. KFC Malaysia is the first Western Quick Service Restaurant in the

world to set up restaurants run by hearing and speech impaired staff; and the first to establish

a children’s club (the KFC Chicky Club) with membership topping 170, 000.

The first KFC restaurant was opened in 1973 on Jalan Tunku Abdul Rahman. Today, there

are more than 500 KFC Restaurants nationwide and still counting. Great tasting chicken has

become synonymous with KFC; and has been enjoyed by Malaysians ever since. In fact, KFC

Malaysia has developed a distinctive Malaysian personality of its own.

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1.2 Background of the Study

Customer perceived value is defined as the consumer’s overall assessment of the

utility of a product based on perception of what is received and what is given,

(Sweeney et al, 1999, Ulaga & Chacour, 2000). This is the most common definition

found in service marketing literature. According to Monika J.A. Schroder (2005),

consumer value plays a crucial role at the heart of all marketing activity as it refers to

things of value that have been created for specific market.

Previous studies on customer perceived value is to analyze the dimensionality of the

concept of perceived value in the banking sector. These dimensions are functional

value of the establishment, functional value contact personnel, functional value of

services purchased, functional value price, emotional value and social value (Juan

Carlos Fandos Roig, 2006). The study of customer perceived value is important

because it has close relation to satisfaction of customer and at the same time will

make them loyal to that particular company. For this research, the study will be

focused on fast food restaurant which is KFC restaurant.

Thus, this study will examine the factors that influencing customer perceived value

towards KFC restaurant. The factors are food quality, price, restaurant image and

services.

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1.3 Problem Statement

The purpose of this study is to examine the factors that influencing customer

perceived value towards KFC restaurant.

The study of customer perceived value on fast food restaurant is important in

order to understand consumer behavior. Numerous studies have reported the

significant influence of value on customer satisfaction and behavioral intension in a

wide range of hospitality and service segments (Hyun Jeong Kim, 2011). Previous

research has studied the relationship between customer perceived value and customer

satisfaction.

However, little research has been conducted to investigate the influence of

multiple components of restaurant service quality on outcome variables such as

restaurant image and customer perceived value. The present study attempts to address

several factors that influencing customer perceived value which are food quality,

price, restaurant image and services.

In the previous research “Fast food and ethical consumer value: a focus on

McDonald’s and KFC”, Monika and Morven (2005) present research of how

McDonalds’s and KFC carry out their strategies in an ethical and socially responsible,

way to young consumers in UK. This research concludes that ethical strategies are

very important in fast food industry. Their investigation mainly focused on the ethical

consumer’s values not the several factors that influencing customer perceived value.

Moreover, the study had been done in UK not yet in Malaysia. Thus, by

conducting this research, it will help the management of KFC restaurant to have an

idea towards what are the factors that influencing the customer perceived value.

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1.4 Research Questions

In this study, several research questions have been developed in accordance to the

problem statement. The research questions can be as follows:

I. Whether there is relationship between food quality and customer perceived

value towards KFC restaurant?

II. Whether there is relationship between price and customer perceived value

towards KFC restaurant?

III. Whether there is relationship between restaurant image and customer

perceived value towards KFC restaurant?

IV. Whether there is relationship between service and customer perceived value

towards KFC restaurant?

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1.5 Research Objectives

This study is intended to find the factors that influencing customer perceived value

towards KFC restaurant. The objectives of this study are:

I. To determine the relationship between food quality and customer perceived

value towards KFC restaurant

II. To investigate the relationship between price and customer perceived value

towards KFC restaurant

III. To examine the relationship between restaurant image and customer perceived

value towards KFC restaurant

IV. To identify the relationship between service and customer perceived value

towards KFC restaurant

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1.6 Significance of the Study

1.6.1 Educational

The research about customer perceived value is important for educational

because in order to maintain and make the customer loyal to certain company,

the most important thing is the satisfaction of the customer towards the

company.

1.6.2 Organization

It will be important and beneficial to KFC restaurant because this will give

them an overview in order to understand what the view of their customer.

From this research, it also can help KFC restaurant in reducing its weaknesses

and improve their strengths in order to enhance customer perceived value. In

addition, the finding of this research could help the management of KFC

restaurant to focus how to increase customer perceived value towards the

restaurant. In doing so, it will attract more customer to come to KFC

restaurant.

1.6.3 Researcher

Research study is one of requirements to complete BBA (Hons.) Marketing.

Through this research, researcher obtained a lot of information and knowledge

about the factor/dimensions that influence perceived value from the KFC

restaurant’s customer overview. Researcher is able to apply the knowledge and

skill of research that had been learned before and while doing this research.

Researcher hope from this experience in doing this research, it will improve

the hard skills and soft skills.

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1.7 Scope of the Study

Population is the entire elements that share some common characteristics. The target

populations of this study are the customer of KFC restaurant within Klang Valley area

which comprises Kuala Lumpur, Petaling, Subang, Shah Alam and Klang.

Meanwhile, sample is a subgroup of the population element selected for participation

in a study. In this study, 50 respondents (sample) are selected from the population.

The samples are being selected as the respondent to answer the questionnaire that

being distributed.

In this study, there are four independent variables (food quality, price, restaurant

image and services) which as the factors that influencing the customer perceived

value. On the hand, various dimensions (functional value of establishment, functional

value of personnel, functional value of product, functional value of price, emotional

value and social value) are to measure the dependent variable (customer perceived

value).

The research will be use structured questionnaire to obtain relevant information and

necessary data for the research. The duration of this research will take about five

months started from July to December 2012.

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1.8 Limitations of the Study

1.8.1 Time Constraint

While preparing the proposal, there are problems to find the literature review

as well as other information and at the same time must focused on practical

training. Thus, researcher need to balanced between both research and

practical training at the same time

1.8.2 Availability of Data

The limitation here is to find the accurate data that related to this study and as

many information as researcher can related with KFC restaurant particularly.

1.8.3 Lack of Expertise

In order to produce a good study, the person/researcher must be familiar with

the procedure of running the study. As a student, researcher is still new in

conducting research which may face with mistakes. In other word, advice and

guides from expert researchers are most needed to help researcher in complete

this study.

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1.9 Definitions of Key Terms

1.9.1 Customer Perceived Value

1.9.2 Food Quality

1.9.3 Price

1.9.4 Restaurant Image

1.9.5 Service

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 CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

A literature review is a step-by-step process that involves the identification of

published and unpublished work from secondary data sources on the topic of interest,

the evaluation of this work in relation to the problem, and the documentation of this

work (Uma Sekaran, 2010). Literature can include books, journal articles, internet

(websites and online journal), newspaper, magazines, thesis report and many more.

The purpose of a literature review is for the researcher to take a critical look at the

previous literature that already exists in the particular area that the researcher is

searching. It will help the researcher on the intended topic and hope to explain the

variables very well. The dependent and independent variables were discussed in detail

below with appropriate literature review.

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2.2 Customer Perceived Value

Customer perceived value can be defined as the result of the personal comparison

between perceived overall benefits and the perceived sacrifices or costs paid by the

customer, (Kisang Ryu, 2012). It is related to what the company delivers to it

customer. Customer will patronize the KFC’s when it relative to other competitors’

offers high customer perceived value to meet their needs.

According to Kisang Ryu, (2012) in the restaurant context, the physical environment

such as décor, ambient condition and seating comfort, provides first-visit customers

with cues that deliver the expected services offerings’ nature and customer perceived

value. In previous study, Kisang Ryu, (2012) define value as the customers’ overall

assessment of dining experience based on the perceptions of what is received from the

restaurant and what is given to the restaurant after dining decision.

2.2.1 Dimensions of Customer perceived value

Referring to Juan Carlos Fandos Roig, (2006) there are six dimensions to

measure customer perceived value which are functional value of the

establishment, functional value of personnel, functional value of product,

functional value of price, emotional value and also social value.

2.3 Food Quality

According to Kisang Ryu, (2012) food quality is the single most important element

that effects customer satisfaction and repeat patronage intention in a full-service

restaurant. Presentation, health options, taste, freshness, variety and temperature are

some factors which relatively coincide with food quality, (Saleha Anwar, 2011).

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2.4 Price

Price is one of the important factors that customer might consider when to purchase at

one shop/restaurant. According to Hinterhuber (2008), pricing has ahuge impact on

profitability. Thus, pricing straegis among company vary considerably across

industries, countries and customers.

2.5 Restaurant image

Previous study shows that the brand/store image has significant impact on customer

perceived value, satisfaction and revisit intention, (Kisang Ryu, 2012). Atmospheric

music is one of the factors that will enhance customer purchase intension. Previous

research has shown that atmospheric music can increase sales, increase shopping time

and waiting time and also influence dining speed.

2.6 Services

Services are one of the most important attribute to fast food restaurant customers. In

today’s intensively competitive market, it is generally assumed that the key to gaining

an advantage lies in delivering high quality service that will, in turn, lead to satisfied

customers (Kisang Ryu, 2012).

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2.7 Theoretical Framework

The theoretical framework is developed from the study that has been made. The

framework below consists of two variables which are independent variables and

dependent variable. The independent variables (food quality, price, restaurant image

and services) will influence the dependent variable (customer perceived value). These

independent variables are becomes the factors that influencing the customer perceived

value.

 Food Quality

 Price
Customer Perceived Value
 Restaurant image

 Services

Independent Variables (IV) Dependent Variable (DV)

Diagram 2.4.1: The theoretical framework of the study on the factors that influencing

customer perceived value towards KFC restaurant

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2.8 Hypothesis Statement

Hypothesis is an unproven proposition or supposition that tentatively explains facts or

phenomenon. It is an empirical statement concerned with the relationship among

variables. There are three types of hypotheses as testable statements which are if-then

statement, directional and nondirectional and also null and alternate hypotheses.

In this research, researcher has chosen null and alternate hypotheses. Ha represent

alternate while Ho represents null. This kind of hypothesis format is based on whether

there have significant relationships between independent variables and dependent

variable or vice versa. There are four hypotheses in this study which are food quality,

price, restaurant image and services.

2.8.1 Hypothesis 1

Ha: There is a significant relationship between food quality and customer

perceived value towards KFC restaurant

Ho: there is no significant relationship between food quality and customer

perceived value towards KFC restaurant

2.8.2 Hypothesis 2

Ha: There is a significant relationship between price and customer perceived

value towards KFC restaurant

Ho: There is no significant relationship between price and customer perceived

value towards KFC restaurant

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 2.8.3 Hypothesis 3

Ha: There is a significant relationship between restaurant image and customer

perceived value towards KFC restaurant

Ho: There is no significant relationship between restaurant image and

customer perceived value towards KFC restaurant

2.8.4 Hypothesis 4

Ha: There is significant relationship between services and customer perceived

value towards KFC restaurant

Ho: There is no significant relationship between services and customer

perceived value towards KFC restaurant

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 CHAPTER 3

METHODOLOGY

3.1 Research Design

Research design is a framework or blueprint for conducting the marketing research

project. The research is designed to investigate the relationship between food quality,

price, restaurant image and services (independent variables) and customer perceived

value towards KFC restaurant (dependent variable).

According to Uma Sekaran (2010), the various issues involved in the research design

and discussed in this chapter. The issues relating to decisions regarding the purpose of

the study, the type of investigation, the extent of researcher interference, unit of

analysis and time horizon.

3.1.1 Purpose of the study

In this study, the researcher engages in hypothesis testing. Hypothesis testing

usually explain the nature of certain relationships, or establish the differences

among group, or the independence of two or more factors in a situation (Uma

Sekaran, 2010). The data of this study will be collected by distribution of well

design questionnaire.

3.1.2 The Type of Investigation

This study is more to causal research which the researcher wants to delineate

the cause of one or more problems (Uma Sekaran, 2010). The study involves

the correlation types of investigation to investigate either the variables are

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 correlated, this investigation is to determine the factors (food quality, price,

restaurant image and services) that influencing customer perceived value

towards KFC restaurant and various dimensions to measure customer

perceived value.

3.1.3 The Extent of Researcher Interference

In studies conducted to establish cause and affect relationships, the researcher

tries to manipulate certain variables so as to study the effects of such

manipulation on the dependent variable of interest (Uma Sekaran, 2010).

3.1.4 Unit of Analysis

The unit of analysis refers to the level of aggregation of the data collected

during the subsequent data analysis stage (Uma Sekaran, 2010). For this study,

the unit of analysis is individual which is the customer of KFC restaurant and

its can be anyone with condition that he/she has visited KFC restaurant within

Klang Valley area.

3.1.5 Time Horizon

There are two types of time horizon which are cross-sectional and

longitudinal studies. In this study, researcher chose to use cross-sectional

studies or also known as one-shot. A data is gathered once over a period such

as days or a week in order to answer the research question. The researcher

will be distributing to the respondent (KFC restaurant’s customer) for about

three months.

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 3.2 Measurement of Variables

No. Variables No. of Cronbach Scales Sources

Items Alpha

PART A Demographic

Gender 7 Nominal http://www.surveypie

.com/survey100983
 Male

 Female

PART B Independent variables

Food Quality The food was delicious 14 Interval

Price The service is good for the Interval

expense it cause me

Restaurant It has a cheerful and Interval

Image enhancing atmosphere

Services Employees provided Interval

prompt and quick services

PART C Dependent variables

(Customer Perceived
7
Value)

Functional It seems tidy and well Interval Juan Carlos Fandos

value of organized Roig, J. S. (2006).
establishment Customer perceived
value in banking
services .
International journal
of Bank Marketing .

Functional The personnel know their Interval Juan Carlos Fandos

value contact job well Roig, J. S. (2006).
personnel Customer perceived
value in banking
services .
International journal

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 of Bank Marketing .

3.3 Population and Sample

3.3.1 Population

In this study, the population is the customer of KFC restaurant within the

Klang Valley area. In addition, the population element is an individual

member of a population. So, the population element of this study is the

customer who had experience with KFC restaurant.

3.3.2 Sample size

Sample size refers to the number of elements to be included in the study. In

this study, 100 respondents had been selected as a sample in order to answer

the questionnaire that has been distributed by the researcher. Data will be

collected from KFC restaurant’s customer within Klang Valley area.

3.3.3 Sampling techniques

In this study, researcher used the convenience sampling technique that

attempts to obtain the information/data from the respondents. This sampling

technique is chose by researcher because respondents are selected due to they

happen to be in the right place at the right time.

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 Moreover, this sampling technique is least expensive and least time-

consuming of all sampling techniques. The sampling units are accessible, easy

to measure and cooperative (Maholtra, 2010).

To implement this convenient sampling technique, the researcher will

distributed the questionnaire to the KFC restaurant customer that randomly

selected at KFC restaurant within Klang Valley area which consists of Kuala

Lumpur, Petaling, Subang, Shah Alam and Klang. The questionnaire will be

distributed for 50 respondents whom the researcher see and immediately give

the questionnaire to the respondents. Researcher will be at respondent side if

there is any question to be asked by the respondents.

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3.4 Data Collection

Data collection is a term used to describe a process of preparing and collecting data.

In this research, there are two types of data that being used by researcher which are

primary and secondary data.

3.4.1 Primary Data

Questionnaire is one of the primary sources of data that being used as a

method to collect the information from the respondent. In addition,

questionnaire also is one of the survey instrument, whereby it is a structured

technique for data collection consisting the series of questions that are related

to the topic studied (customer perceived value) to which a respondent replies.

In designing questionnaires, researcher used structured questions to be given to

the respondent. Researcher would distribute the questionnaire that had adapted

from previous research paper. Researcher used the information from previous

research paper and adapts it to this study because the questionnaire is more

suitable to conduct this study.

The questionnaire is divided into three parts which are Part A, Part B and Part

C. Part A consists of demographic questions such as age and gender, Part B

consists of question that related to independent variables such as food quality

and price while Part C consist of question related with dependent variable

(customer perceived value). For Part A, nominal scales are used by the

researcher and 5-point likert scale (interval) for Part B and C.

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 Questionnaire are being chose by the researcher because it have the advantage

of obtaining data more efficiently in terms of researcher time, energy and cost.

Moreover, researcher used personally administered questionnaires. The main

advantage is researcher can collect all the completed responses within a short

period of time. Besides that, if the respondent might have any question, the

researcher can be clarified on the spot.

The questionnaires are distributed to the respondent who is the customer and

visited KFC restaurant within Klang Valley area for about one and half month

starting from 8th October until 30th November 2012.

3.4.2 Secondary Data

Secondary data refer to information gathered by someone other than

researcher conducting the current study (Uma Sekaran, 2010). Secondary data

is usually a historical data in nature which has already assembled and do not

require any access to respondents and subjects. In this research, researcher

used several sources of secondary data such as journal, websites, books and

etc.

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3.5 Plan Data Analysis

In this research, there are several analysis procedures has chosen by the researcher to

evaluate the data. The data for this study were been analyzed using Statistical

Procedure for Social Sciences (SPSS).

In order to get the result of the factors that influencing customer perceived value

towards KFC restaurant, the researcher have to follow some steps. First, all the

distributed questionnaire must be collected from the respondents. Then, the researcher

need to check the completeness of the questionnaires and the last step is to make

coding for each of the questionnaire to be more easily classified and clarified.

3.5.1 Frequency Distribution

The frequency distribution provides statistic and graphical displays that are

useful for describing the types of variables.

3.5.2 Cross Tabulation Analysis

Cross tabulation describes two or more variables. Thus, this type of analysis

can help researcher to analyze the relationship between two variables whether

there have connection between them.

3.5.3 Reliability Analysis

Reliability is an indicator of a measure’s internal consistency (Zikmund,

2010). It is used to test whether each items in independent and dependent

variable are accepted or reliable or not in this study.

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 CHAPTER 4

DATA ANALYSIS AND FINDINGS

4.1 Sample Characteristics

A total of 87 respondents have cooperated by returning the questionnaires resulting in

87% rates of return. Table 4.1.1 summarized the demographic information measured

as nominal scales. The sample was diverse in several aspects. Approximately, 52.9%

(46) of the sample was male and 47.1% (41) was female. There was representation

from several age including 17 to 22 years old (32), 23 to 28 years old (29), 29 to 34

years old (11) and 35 years old and above (15). 55 (63.2%) respondents in this

sample were single while 32 (36.8%) of the respondents were married. Moreover,

there were 44 (50.6%) respondents who were employed, 2 (2.3%) unemployed, 34

(39.1%) were students and 7 (8%) were retired.

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 Table 4.1.1: Frequency Analysis for Demographic Factors

Demographic Factors Categories Frequency Percentage

Age 17-22 years 32 36.8
23-28 years 29 33.3
29-34 years 11 12.6
35 years and above 15 17.2
Total 87 100.0
Gender Male 46 52.9
Female 41 47.1
Total 87 100.0
TMarital Status Single 55 63.2
Married 32 36.8
a Total 87 100.0
Employment Employed 44 50.6
b
Unemployed 2 2.3
l Student 34 39.1
Retired 7 8.0
e Total 87 100.0

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 Table 4.1.2 below highlight the response of respondent towards how often the

customer visit KFC restaurant, for what dish they go there and also the factors that

will bring them to go to KFC restaurant. Its indicate that there were 19 (21.8%)

respondents who went to KFC restaurant at once time as well as for four time on the

average per month. Meanwhile, there was 32 (36.8%) which the highest number of

respondent who went to KFC restaurant for Combo Set, 9 (10.3%) respondents

preferred Ala Carte, 21 (24.1%) was preferred Dinner Plate while 25 (28.7%) were

preferred for other dish. Moreover, 18 (20.7%) respondents went to KFC restaurant

because of the price, 3 (3.4%) kindness of personnel, 7 (8%) atmosphere,

Table 4.1.2: Frequency Analysis for

Categories Frequency Percentage

Often Visit KFC Once 19 21.8
Twice 34 39.1
Three 15 17.2
Four 19 21.8
Total 87 100.0
Dish Preferred Ala Carte 9 10.3
Combo Set 32 36.8
Dinner Plate 21 24.1
Others 25 28.7
Total 87 100.0
Factor Go to KFC Price 18 20.7
Kindness of Personnel 3 3.4
Atmosphere 7 8.0
Waiting Time 38 43.7
Others 11 12.6
Total 87 100.0

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4.2 Cross – Tabulations

Table 4.2 below shows the result of cross tabulation between gender and the factors that

customer go to KFC restaurant. As can be seen, there were

Table 4.2: Cross Tabulation between Gender and Factors Customer Go to KFC
Restaurant

Factors Go to KFC
Gender Kindness of Quality of Waiting Total
Price Atmosphere Others
Personnel Food Time
Male 11 3 2 22 2 6 46
Female 7 0 5 16 8 5 41
Total 18 3 7 38 10 11 87

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 4.3 Minimum, Maximum, Mean and Standard Deviation

Descriptive statistics are shown in Table 4.3 below. The mean on all variables are

observed as somewhat enriched. The maximum of 5.00 indicates that some are high

perceived in terms of food quality, restaurant image, price and as well as services. The

values for minimum that ranged from 1.67 to 3.00 indicate that some were rather low

on the study variables. As indicated by the values of standard deviation for all study

variables, the majority of employees were close to the mean.

Table 4.3: Descriptive Statistic

Variable N Minimum Maximum Mean Std. Deviation

Food Quality 87 3.00 5.00 4.00 .53
Restaurant Image 87 1.67 5.00 3.93 .61
Price 87 3.00 5.00 3.83 .54
Services 87 3.00 5.00 3.91 .53
Customer
87 2.86 5.00 3.84 .47
Perceived Value

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 4.4 Reliability Analysis

Table 4 below shows the Cronbach Alphas. The Cronbach-alpha range from .66 to .81

which suggested the specified indicators are sufficient for use (Nunnally, 1978).

Table 4: Reliability Analysis

Variable Number of items Cronbach Alphas

Food Quality 4 .66
Restaurant Image 2 .80
Price 3 .66
Services 4 .70
Customer Perceived Value 6 .81

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4.5 Correlation Analysis

The intercorrelations among the study variables are shown in Table 4.5. As can be

seen, food quality (r =.28, p<.01), restaurant image (r =.51, p<.01), price (r =.39,

p<.01) and services (r =.28, p<.01) were significantly and positively correlated with

customer perceived value. It shows that the higher the food quality, restaurant image,

price and services the higher the customer perceived value.

Table 4.5: Correlational Analysis

Variable 1 2 3 4 5
1. Food Quality - .51** .40** .28**
2. Restaurant Image .51** - .42** .48**
3. Price .39** .42** - .51**
4. Services .28** .48** .51** -
5. Customer Perceived Value .27* .54** .51** .65** -
*p<.05; **p<.01

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 4.6 Hypotheses Testing

To test the study hypotheses, a multiple regression was run and the result is presented

in Table 6 below. As can be seen, food quality (β = -.07, p<.05), restaurant image (β =

.28, p<.05), price (β = .20, p<.05) and services (β = .44, p<.05) were significant

predictors of customer perceived value. Hence, hypothesis 2, 3 and 4 were supported.

The model explained 53% of the variance in customer perceived value.

Table 6: Multiple Regression Analysis

Variable B Sig.
Food Quality -.07 .40
Restaurant Image .28 .00
Price .20 .03
Services .44 .00
F value 22.69**
Adjusted R Square .53
*p<.05; **p<.01

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4.7 Conclusions

After the analysis of the data has been done, the objectives of this research have safely

been achieved. The data that has been collected and analyzed allows for

recommendations to be made toward the improvement of

After the analysis of the data has been done, the objectives of this research have

safely been achieved. The data that has been collected and analyzed allows for

recommendations to be made toward the improvement of corporate reputation within the

organization that will eventually increase employee loyalty towards to the organization. In

conclusion, all the independent variable influences the dependent variable but only one

independent variable which is the credibility of organizations mostly influences the corporate

reputation of organizations. The remaining independent variables which are the

trustworthiness, reliability, responsibility and green building initiative also influence to the

corporate reputation however this factor not totally influence to the corporate reputation. This

corporate reputation also will effect to the organizational loyalty. This is because a good

corporate reputation will effect to the organizational loyalty. This happen because employee

eventually more loyalty to organization that have good corporate reputation. This show that

corporate reputation will affect to the organizational loyalty.

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 CHAPTER 5

CONCLUSIONS AND RECOMMENDATIONS

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