Conference Proceeding: A New Service-Quality Model to enhance Customer Retention In the Hong Kong Fast-Food Restaurant Industry

Poster Presentation accepted for the July 2014 conference in Bournemouth, England. Abstract: Current service-quality models in the Hong Kong fast-food restaurant (HK FFR) industry are primarily designed on the basis of fast service and standardised fast-food service process that are expected to enhance customer retention. This study explores the feasibility of a new service-quality (SQ) model that could offer enhanced customer satisfaction and retention in the competitive Hong Kong FFR context. A qualitative, phenomenological-interview approach incorporating the critical incident technique (CIT) was used. A purposeful sample of 30 HK taxi drivers was selected due to their frequency of eating at FFRs. The taxi drivers’ FFR experiences assisted in understanding the phenomenological nature of the HK FFR context. An Employee-Centric SKIP-based (Service, Knowledge, Information, Process) SQ model emerged from the data and is presented, where SKIP SQ drives trust, perceived value and satisfaction, and then retention in turn. In contrast to traditional models that simply focus on fast service and standardised fast-food service process, this study found that current FFR SQ models are ineffective in enhancing HK FFR customers’ repurchase intentions. The findings suggest that a SKIP-based SQ model incorporating a focal point of customisation and innovativeness could improve competitive advantage in the HK FFR context.