The important role of physical environment to customer satisfaction and customer loyalty in Finland’s fine dining restaurants

Abstract

The goal of the thesis is to examine the correlation between the quality of the restaurant's physical environment and customer satisfaction and customer loyalty. These physical environmental components included light, color, aroma, music, spatial layout, and decorations.

The research approach was quantitative. An introduction was provided, followed by a review of the theories of each component that had been validly executed. The theoretical study consisted of the theory of physical environment components, customer satisfaction, and customer loyalty. Based on the theories, four untested hypotheses were developed, which were the basis for the research model. Accordingly, a 22-question survey questionnaire was formed to gather information from people who had previously dined at a fine dining restaurant in Finland. The reliability and validity of the results were assessed by using techniques such as descriptive analysis, exploratory factor analysis, Cronbach's alpha, and multiple regression analysis.

The outcome of the analysis is positive, and all the hypotheses are showed supportive. Customer satisfaction and customer loyalty are significantly influenced by the physical environment component. Following was the discussion and suggestions for the study.