CUSTOMER RETENTION TOWARDS FAST FOOD RESTAURANT IN KLANG VALLEY
DOI:
https://doi.org/10.35631/AIJBES.828026Keywords:
Brand Image, Customer Retention, Fast-Food Industry, Price Perception, Service QualityAbstract
This study examines the factors influencing customer retention toward fast-food restaurants in Klang Valley, Malaysia. With the rapid growth of the fast-food industry and increasing competition among local and international brands, retaining customers has become a critical challenge. The research focuses on three independent variables – brand image, service quality, and price perception – and examines their impact on the dependent variable, customer retention. The study is grounded in Customer Perceived Value Theory and Relationship Marketing Theory, which explain how perceived value, trust, and commitment influence long-term loyalty. A quantitative research approach was adopted using a structured questionnaire distributed through Google Forms. A total of 167 valid responses were collected from customers aged 18 years and above who had experience dining at fast-food restaurants in Klang Valley. The data were analysed using descriptive statistics, correlation analysis, and regression analysis. The findings reveal that price perception and service quality have a significant positive effect on customer retention. Price perception was identified as the strongest predictor, indicating that customers are more likely to remain loyal when they perceive prices as fair and reasonable. Service quality also significantly contributes to retention, particularly in terms of staff friendliness and efficiency. However, brand image, although rated positively in the descriptive analysis, was not found to be statistically significant in influencing customer retention. The regression model shows that 72.4% of the variance in customer retention can be explained by the three variables. The study concludes that fast-food operators in Klang Valley should prioritize fair pricing strategies and high service standards rather than relying solely on brand reputation. These findings provide practical insights for marketers and contribute to a better understanding of customer retention in the Malaysian fast-food industry.
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