Presented by

Javeria Maalik (094)

Fatima Naeem (013)

Fazain Raza (145)

Relationship between satisfaction with service

and word of mouth

Introduction

Variables

Satisfaction with service

Word of mouth

Loyalty

Sector

Restaurants

Purpose

Find out the relationship between these variables.

Literature reviewAuthor Year of

publication

Findings

Oliver 1997 Defines satisfaction as a positive post-

consumption evaluation, where by the

consumer perceives a pleasurable level of

consumption-related fulfillment.

Anderson 1998 Definition of word of mouth is the illegal

communication between two or more

consumers.

Sirdeshmukh 2002 Loyalty is the intention to achieve a divers

set of behaviors that indication a motivation

to sustain a relationship with the central

firm.

Continue…

Author Year of

publication

Findings

Sundaram 1998 Stronger connection between customer

and service encounter in terms of data

sharing creates greater satisfaction and

positive word of mouth.

Mittal and

Kamakura

2001 Customer satisfaction is the key feature

in creation of customer’s desire of re-

purchase.

Choi 2014 Customers whose loyalty strengthen by

successful service recovery will lead to

positive word of mouth .

Proposed Model

Hypothesis

H1: Satisfaction with service has significantly impacts on word of mouth.

H2: Satisfaction with service has significantly impacts on customer loyalty.

H3: Customer loyalty has significantly impacts on word of mouth.

H4: Customer loyalty partially mediates the relationship between

satisfaction with service and word of mouth.

MethodologyPopulation Restaurant Users ,Lahore (Pakistan)

Sample Restaurant Users Chosen To Fill

Questionnaires

Sampling Technique Convenience Sampling

Research design Explanatory, Quantitative Data ,

Questionnaire Consist Of 23 Questions

Instrument Used Questionnaire (likert & itemize)

Statistical Procedure Used Transferred To SPSS

Time Horizon Cross sectional

Study Setting Non-Contrive

Unit of analysis Individual (customer)

Author names Variable names

Hui, Michael K. , Xiande Zhao, Xiucheng

Fan, and Kevin Au, BradySatisfaction with Service

Quadri-Felitti & Fiore Loyalty

Brown, Tom J., Thomas E. Barry, Peter

A. Dacin, and Richard F. GunstWord-of-Mouth

Data Collection

Data analysis

KMO Test

Reliability Test

Cronbach’s Alpha

Satisfaction with

Service

.875

Word of mouth .885

Customer Loyalty .775

Satisfaction with

Service

.865

Word of mouth .866

Customer Loyalty .823

Frequency analysis for Demographic variables

Female 89

Male 81

Under 20 104

21-30 59

31 & above 9

5000-10000 84

11000-30000 32

31000 & above 54

Standard DeviationVariables Mean St. deviation

Satisfaction with service 3.48 .68299

Word of mouth 3.43 .78153

Customer loyalty 3.58 .92644

Regression

Normality

Auto correlation, Multi colinearity & Correlation

SWS WOM CL

Mean3.4853 3.4366 3.5882

Median3.6000 3.5556 3.7500

Mode3.70 3.78 4.00

Durbin

Watson

Adjusted R

squre

F value VIF

SWS-WOM 1.744 .481 .000 1.000

SWS-CL 2.012 .428 .000 1.000

CL-WOM 1.904 .529 .000 1.000

Mediation testModel Summaryc

Model

R R Square Adjusted R SquareStd. Error of the

Estimate Durbin-Watson1 .729a .531 .529 .53657

2 .784b .614 .610 .48820 1.758

Coefficientsa

Model Unstandardized Coefficients

Standardized Coefficients

t Sig.Collinearity Statistics

B Std. Error Beta Tolerance VIF1 (Constant) 1.230 .165 7.451 .000

Loyalty .615 .045 .729 13.803 .000 1.000 1.0002 (Constant) .466 .197 2.365 .019

Loyalty .403 .054 .478 7.500 .000 .568 1.759SWS .437 .073 .382 5.995 .000 .568 1.759

Conclusion By the tests, which were done on SPSS, it is said that our proposed

model is pass.

Our data is almost normal and the cure is normal. There is very less standard deviation which shows the deviation of data from mean is very less.

The regression test also passed. In this test Durbin Watson value is 1.74 which is more than the required value (1.5-2.5).

The co-linearity test is also passed VIF value is 1 which is less than 10. F value (0.000) is also significant.

Our model shows partial mediation because there is still direct relationship between satisfaction with service and word of mouth even after the involvement of loyalty mediator.

LIMITATION & RECOMMENDATION

Limitation Recommendation

For the purpose of research study

restaurants were choose as sector.

(customer = unit).

Limitation of the study was

restaurants of city Lahore.

our suggestion for future researcher to explore this study in different cities of Pakistan.

By changing unit of analysis & sector future researchers can explore this study in a new way.

future researchers explore this study by changing moderator as there are many other moderator rather than loyalty

Thank You