Assessing the Impact of Customer Experience and Service Quality onProfitability of Fast-Food Outlets in Kabarnet Town
Keywords:
Customer experience, service quality, profitability, customer loyalty, fast-food outlets, Kabarnet TownAbstract
The study aimed to assess how customer experience and service quality affect the financial performance of fast-food restaurants in Kabarnet Town, which serves as a developing area within Baringo County of Kenya. The study established four primary goals through which it sought to achieve its objectives. The first goal of the study was to analyze customer experience through service speed and food quality and cleanliness and ambiance and overall satisfaction and their impact on profitability. The second goal of the study was to identify the service quality level that establishes customer loyalty. The third goal of the study was to determine the essential link between customer loyalty and profitability. The fourth goal of the study was to investigate the pricing methods which fast-food restaurants use to determine their product costs. A cross-sectional survey design was used to study 200 employees who formed the target group for the research. A sample of 40 respondents (20% of the population) was selected using simple random sampling. A structured questionnaire was used for data collection. The researchers used descriptive statistics to analyze quantitative data which they presented in tables. Key findings revealed that the workforce is male-dominated (60%) and highly educated (80% with college or university education). Customer experience was rated as having a significant impact on profitability by 80% of respondents. Service quality was rated as very influential on customer loyalty by 60% of respondents. The study found that 60 percent of respondents agreed that customer loyalty creates a direct connection to business profitability. The respondents showed that 80 percent considered pricing strategies to have between moderate and slight impact on their businesses. The study found that both customer experience and service quality determine financial results and customer retention rates. The recommendations for the study establish connections between all study objectives and customer experience improvement and service quality enhancement and customer loyalty management and pricing strategy implementation.
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