Service delivery and customer delight: project report restaurant chain

In this project report we will study the effects of service delivery on customer delight, which is hypothesised to be among the predictors of repurchase intention. We will also test the influence of other associated variables like customer satisfaction. In addition, the reason for difference between delighted and non-delighted customers is investigated. To accomplish these goals, a structural model was constructed to test these interdependent relationships using structural equation modelling (SEM). A 24 full factorial experimental design was adopted to produce variants of customer experience in a real restaurant setting. The actual conduct of waiting staff when serving customers was altered and delight successfully induced. To conceptualise service delivery in terms of these elements broadens its theoretical perspective and cuts down on the degree of abstractness formerly linked to the idea. Researchers can now review service delivery better and precisely employing this three-factor model. On top of that, customer delight has been demonstrated to explain extra variance of repurchase intention, thereby empirically solving the contradiction where satisfaction is found but loyalty is weak. Additionally, the research provides a progression from a single-item to a multi-item scale in measuring delight that is a lot more reliable and valid.

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Contents

CHAPTERS ONE INTRODUCTION
1.1 Service Delivery and Customer Delight
1.2 The Significance of Service Delivery and Customer Delight
1.3 Objectives of the Study
1.4 Structure of the Thesis
CHAPTER TWO THE CONCEPTUALISATION OF SERVICE DELIVERY AND CUSTOMER DELIGHT
2.1 Definitions of Service
2.1.1 Characteristics of service
2.1.1.1 Simultaneity
2.1.1.2 Heterogeneity
2.1.1.3 Intangibility
2.1.1.4 Perishability
2.1.2 Section summary
2.2 Service Delivery
2.2.1 A generic term
2.2.2 The sum of the activities in each service episode
2.2.3 Classification of the activities
2.2.4 Section summary
2.3 Customer Delight
2.3.1 The conceptualisation of customer delight
2.3.1.1 Theoretical concepts
2.3.1.1.1 The paradox
2.3.1.1.2 Delighters
2.3.1.2 Psychological concepts
2.3.1.2.1 Disconfirmation theory
2.3.1.2.2 Emotion theor
2.3.2 Measurement of customer delight
2.3.2.1 Dummy variable
2.3.2.2 Item scale
2.3.3 Implications of customer delight
2.3.3.1 Behavioural implication
2.3.3.2 Financial implication
2.3.4 Section summary
2.4 Chapter Conclusion
CHAPTER THREE A MODEL OF CUSTOMER DELIGHT IN SERVICE DELIVERY
3.1 The Proposed Model – An Overview
3.2 A Three-factor Model of Service Delivery
3.2.1 Service behaviour
3.2.1.1 Confounding measures
3.2.1.2 Suboptimal factor structure
3.2.1.3 Related terms and labels
3.2.1.4 Definitions of service behaviour
3.2.1.4.1 Flexibility
3.2.1.4.2 Addition
3.2.1.4.3 Comprehension
3.2.1.4.4 Enthusiasm
3.2.2 Service outcome
3.2.3 Product outcome
3.2.4 Section summary
3.3 Customer Delight
3.4 Cognitive Beliefs
3.4.1 Surprise
3.4.2 Expectancy disconfirmation
3.5 Consumption Emotions
3.5.1 Hedonic emotion
3.5.2 Utilitarian emotion
3.6 Customer Satisfaction
3.7 Repurchase Intention
3.8 Relationships among Components
3.8.1 Service delivery
3.8.1.1 Customer delight
3.8.1.2 Surprise
3.8.1.3 Expectancy disconfirmation
3.8.1.4 Hedonic emotion
3.8.1.5 Utilitarian emotion
3.8.2 Surprise
3.8.2.1 Hedonic emotion
3.8.2.2 Customer delight
3.8.3 Expectancy disconfirmation
3.8.3.1 Customer satisfaction
3.8.4 Hedonic emotion
3.8.4.1 Customer delight
3.8.5 Utilitarian emotion
3.8.5.1 Customer satisfaction
3.8.6 Customer satisfaction
3.8.6.1 Customer delight
3.8.6.2 Repurchase intention
3.8.7 Customer delight
3.8.7.1 Repurchase intention
3.8.7.2 The explained variance on repurchase intention
3.9 Chapter Summary
CHAPTER FOUR RESEARCH DESIGN AND METHODOLOGY
4.1 Research Design and Experimentation
4.1.1 Research design
4.1.1.1 Basic research
4.1.2 Research setting
4.1.2.1 Context
4.1.2.2 Restaurant
4.1.2.3 Store
4.1.3 Exploratory study
4.1.3.1 Focus group
4.1.3.2 Participants
4.1.2.3 Facilitation
4.1.2.4 Discussion insights
4.1.4 Formal study
4.1.4.1 Cross-sectional study
4.1.5 Data collection method
4.1.6 Experimentation
4.1.6.1 Levels of treatment
4.1.6.2 Manipulation check
4.1.6.3 Experimental environment
4.1.6.4 Quasi-experimental design
4.1.7 Validity in experimentation
4.1.7.1 Internal validity
4.1.7.2 External validity
4.1.7.2.1 Background factors
4.1.8 Exit interview
4.1.9 Section summary
4.2 Selection of Measurement Techniques
4.2.1 Questionnaire structure
4.2.1.1 Type of information needed
4.2.1.2 Question content
4.2.1.3 Response format
4.2.1.4 Question phrasing
4.2.1.5 Sequence of questions
4.2.1.6 Method of administration
4.2.1.7 Pretesting the questionnaire
4.2.2 Operationalisation of variables
4.2.2.1 Service behaviour
4.2.2.2 Service outcome
4.2.2.3 Product outcome
4.2.2.4 Customer delight
4.2.2.5 Surprise
4.2.2.6 Expectancy disconfirmation
4.2.2.7 Hedonic emotion
4.2.2.8 Utilitarian emotion
4.2.2.9 Customer satisfaction
4.2.2.10 Repurchase intention
4.2.2.11 Other operationalisations
4.2.3 Section summary
4.3 Selection of Sample
4.3.1 Target respondents
4.3.2 The determination of sample size
4.3.2.1 Qualitative factors
4.3.2.1.1 The number of variables
4.3.2.1.2 Sample size in similar studies
4.3.2.2 Quantitative factors
4.3.3 Section summar
4.4 Data Collection Procedures
4.4.1 Pilot survey
4.4.2 Data collection process
4.4.3 Section summary
4.5 Data Analysis Plan
4.5.1 The overview of the data analysis
4.5.2 Reliability and validity
4.5.3 Structural equation modelling
4.5.4 Section summary
4.6 Chapter Conclusion
CHAPTER FIVE DATA ANALYSIS AND RESULTS
5.1 Survey Responses
5.1.1 Comparing response rate with those of internal sources
5.1.2 Comparing response rate with those of external sources
5.1.3 Profile of respondents
5.1.4 Section summary
5.2 Results of the Experiment
5.2.1 Manipulation check
5.2.2 Section summary
5.3 Reliability and Validity of the Adopted Scales
5.3.1 Scale reliability
5.3.1.1 Surprise
5.3.1.2 Expectancy disconfirmation
5.3.1.3 Hedonic emotion
5.3.1.4 Utilitarian emotion
5.3.1.5 Customer satisfaction
5.3.1.6 Repurchase intention
5.3.2 Scale validity
5.3.2.1 Concurrent validity
5.3.2.2 Predictive validity
5.3.3 Section summary
5.4 Developing Subscales for Service Delivery
5.4.1 Item analysis and selection
5.4.2 Exploratory factor analysis
5.4.2.1 Service behaviour
5.4.2.2 Service outcome
5.4.2.3 Product outcome
5.4.3 First-order confirmatory factor analysi
5.4.4 Reliability and validity
5.4.4.1 Scale reliability
5.4.4.1.1 Service behaviour
5.4.4.1.2 Service outcome
5.4.4.1.3 Product outcome
5.4.4.2 Scale validity
5.4.4.2.1 Content validity
5.4.4.2.2 Concurrent validity
5.4.4.2.3 Predictive validity
5.4.4.2.4 Internal validity
5.4.4.2.5 External validity
5.4.5 Second-order confirmation factor analysis
5.4.6 Section summary
5.5 Construction of a Three-factor Service Delivery Model
5.5.1 The first-order CFA model – Service delivery
5.5.2 Convergent and discriminant validity
5.5.2.1 Convergent validity
5.5.2.2 Discriminant validity
5.5.3 The second-order CFA model – Service delivery
5.5.4 Section summary
5.6 Customer Delight Scal
5.6.1 Exploratory factor analysis
5.6.2 Reliability test
5.6.3 Section summary
5.7 Analysis of the Delighted and Non-delighted Customers
5.7.1 Cluster analysis
5.7.2 Factorial invariance
5.7.3 Compare mean of service delivery
5.7.4 Section summary
5.8 Analysis of the Proposed Model
5.8.1 Overall goodness-of-fit of the proposed model
5.8.2 Component fit of the proposed model
5.8.3 Direct, indirect, and total effects
5.8.4 Section summary
5.9 Chapter Conclusion
CHAPTRR SIX SUMMARY AND CONCLUSIONS
6.1 Objectives of the Study
6.2 Summary and Interpretation of Findings
6.2.1 Reliability and validity of the multi-item scales
6.2.2 A three-factor service delivery model…..

Source: City University of Hong Kong

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