Evaluating the Impact of Pricing Strategies and Service Quality on Customer Satisfaction and Loyalty in Local Food Eateries

Abstract

This study investigated the effects of pricing policies and service standards on patron loyalty and satisfaction in neighbourhood restaurants. In the highly competitive food service sector, businesses needed to balance quality and pricing to attract and retain customers. The research focused on restaurants near Jhocson Street that primarily served students from National University and NU Nazareth School. Using a descriptive quantitative methodology, the study surveyed 300 students to assess their perceptions of loyalty, satisfaction, pricing, and service quality. Statistical methods such as weighted mean, frequency distribution, ranking, and correlation analysis were employed to analyse the data. The findings revealed that customers valued periodic sales or discounts along with clear and affordable pricing, while service quality significantly influenced satisfaction, particularly in areas like order accuracy, cleanliness, friendliness, and staff professionalism. However, issues such as inconsistent meal preparation and delayed service were identified as areas for improvement. The study demonstrated a strong correlation between customer satisfaction and loyalty, indicating that satisfied customers were more likely to return and recommend the restaurant to others. Based on these insights, the study recommended that local restaurants enhance service efficiency, maintain high food quality, and offer diverse pricing options to cater to a wider customer base. Implementing these strategies could improve customer satisfaction, encourage repeat business, and foster long-term customer relationships. Future research should explore additional factors affecting customer loyalty, such as digital marketing, customer engagement, and brand reputation in the food service industry.

Keywords: Pricing Strategies, Service Quality, Customer Satisfaction, Customer Loyalty

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