The Impacts of Customer Satisfaction on Business Strategy in Papa Panda in Cardiff - Paper Example

Introduction

The focus of this report is on critical issues, research process, and its findings, the discussion, and conclusions were drawn after successful completion of research on business strategy and the resultant impact of customer satisfaction in Papa Panda in Cardiff.

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Problem Statement

In the UK there is neglect of customer satisfaction among service providers. Consumers of these services have an essential role in determining the success of the business.

Aim and Objectives

The case study carried out on the impact of customer satisfaction on the business strategy of Papa Panda in Cardiff was based on the following research objectives:

The To assess whether Papa Panda increases its customer's satisfaction

To determine the strategy put in place by Papa Panda to satisfy the customers' needs.

To examine the customer opinions regarding Papa Panda services

Rationale

Restaurants are crucial in any society because they meet the community's demands. Justification of this study is based on the importance of restaurants to the people. They are seen as an essential place in the society as people go there to meet their nutritional requirements. People enjoy dining in very accessible areas. Additionally, people like to try out exotic meals. In the UK, Chinese restaurants are a rare resource and are scarce. Papa Panda is a Chinese restaurant which displays Chinese food culture to the UK. Chinese restaurants offer an opportunity for the British population to understand and learn the Chinese food culture. It is only through this restaurants that one can be able to appreciate the culture of Chinese food. The restaurants offer celebrations like the Chinese New Year where they provide different types of food in their culture for their clients (Mintel 2015). Chinese restaurants have enormous market potential in the United Kingdom. The Chinese restaurants in the United Kingdom are seen to have considerable marketability due to the large percentage of the population that attends that is approximately 80% of the British people (Mintel 2015)

UK Chinese Restaurant Business is expected to Grow

According to Mintel (2015), over 80% of the London population has visited a chines restaurant in 2014. Also, in every five British people, at least one of them has attended the Chinese New Year celebrations. The high number of attendance during this celebration is due to the unique menus which are highly appealing to the general population. Furthermore, the satisfaction given to customers promotes presence to these ethnic restaurants.

The Chinese population in the United Kingdom is ever-increasing. Due to a rise in the population of Chinese people in the UK, it is expected that the increasing numbers of this community will drive business and firms that offer Chinese services and goods to be on the rise. Siew-Peng Lee (2015) documented food practices of some old Chinese migrants in Britain. The author argues that through the study if food, it can be pointed out of how dining at Chinese restaurants was comforting and enabled this cohort to adapt to living in a foreign country but with a central memory of indigenous food. The restaurants were essential to these older migrants because it not only provided food, but also it offered them a neutral and haven. Also, through the Chinese restaurants played a significant role in shaping their social status (Siew-peng 2015).

The Chinese Restaurants target a Segment

Chinowsky (2013) points out that segments of the markets in which restaurants operate in are profoundly influenced by the availability of a vast consumer base. Chinese restaurants have targeted regions where a lot of consumers of the services and commodities are available (Chinowsky 2013). Food commodity has a very short lifespan, and for this reason, coupled with the challenge posed of competition, then it is safer to be close to the location of the majority of the consumers (Solomon et al. 2014).

The challenge of restaurants is stiff competition. Mintel (2015) pointed out that there is a growing interest in other food cultures. Malaysian food culture is attracting a vast number of people, and it is highly gaining ground in the foodservice and retail industry.

Neglect of Customer Satisfaction by Businesses

In the UK, the key driver of Chinese restaurants is the customer satisfaction and quality of services and commodities. Evidence of negligence of customer satisfaction in the United Kingdom's restaurants is shown by the ever-increasing popularity of Chinese food.

Customer Satisfaction affects an organization business strategy. Consumers of services of the organization are critical indicators of its success. Organizations that thrive in the market and manage to remain competitive have placed the right strategy that values their customers.

Literature Review

The focus in this section is on organizational strategies that are utilized to create customer satisfaction. Additionally, the various academic theories that highlight customer satisfaction and are relevant to this case study will be reviewed.

Academic Theories

Three theories of customer satisfaction in any organization include customer loyalty, customer satisfaction, and business strategy methods.

Customer Satisfaction Theory- the customers will either be dissatisfied or satisfied depending on whether they receive a bad or good expectation difference regarding the service or right depending on their perception (Chahal & Dutta 2015).

Customer Loyalty Theory-Customers who are loyal can remain loyal to an organization no matter what the situation the business is in, for they will always be willing to purchase the services or products offered to them (Kandampully, et al. 2015)

Business Strategy Theory-This theory directly links customer satisfaction to the more good and services the consumer buys. It is common that the more the customer is satisfied then, the more he/she acquires the good and function of an organization (O'Cass & Ngo 2013).

Review of Past Literature

Customer satisfaction is a theory which entails factors such as interaction, experience, and the environment from which the customers who are the consumers can access their services. Satisfaction from the customers' perspective can be defined as the ability to provide services and goods in a manner that will always meet their needs such that the customers of an organization can adequately remain loyal and can keep being positively attached to the service provider (Lu et al. 2015).

Customer satisfaction strategies target according to University of Minnesota (2015) must establish an almost-perfect expectation in the mind of the consumers. A good customer satisfaction strategy must also ensure maximum delivery of the service in a manner which the consumer cannot forward any complains and is quite addicted to the product or service (Torelli, et al. 2015). Moreover, through the employment of customer-facing personnel, it is expected that the customer satisfaction will increase. Satisfaction of customers will be due to the involvement of the customer-facing staff in positive interactions with the customers. Additionally, they will ensure that customers are sufficiently attended to, and all the needs are met with maximum satisfaction.

Research Methods

The research question for this case study was?

Does Papa Panda increase its customer's satisfaction?

What strategies are put in place by Pap Panda to the needs of its customers?

What are the opinions that customers give regarding Papa Panda services?

The research methods incorporated in these study were both quantitative and qualitative methods in addressing the research questions. Data collection was based on a small sample size of 50 respondents. The targeted population was people who live near the Papa Panda restaurant. The two methods used were interviews and questionnaires conducted in 2018 between March and April. The approach enabled respondents to have ample time to give accurate opinions regarding the customer experience at this restaurant. Additionally, this approach was cost-effective. Both methods had unique uses. Interviewing played a crucial role in the collection of data regarding opinion whereas questionnaires were used in estimating a cost of the goods and services

Questions

1. Are customer satisfaction and loyalty relevant to your business? If so what do you actively do to try enhancing these?

2. In your experience, is there a direct link between customer satisfaction and customer loyalty? If so, how does one link to the other?

3. When you design and implement your business strategy, do you consider the impacts of your plan on customer satisfaction and loyalty? If so, please give us some examples. If not, please explain why?

4. When you notice a dip in customer satisfaction and loyalty, what would your responses be? For example, do you immediately change your strategies such as pricing or food portions, or do you wait out, or engage the customers in finding out the reasons?

5. When you receive customer feedbacks that relate to why they have not been entirely satisfied, what would you do?

6. How would you describe your business model and philosophy? For example regarding the food and the service provided.

7. How and if the changes in overall consumer consumption trends affect your business strategy?

8. What are the current approaches relating to food and service that you use to ensure customer satisfaction and loyalty?

Findings

From the study conducted, response based on whether the food flavor and taste were excellent highlights that only three clients strongly agreed that food and flavor were excellent. It shows that 6% of the sample size agree. About 20% of the interviewees said the food was excellent. About 8% of the respondents disagreed with conviction on the excellence of the flavor and taste of food at this restaurant. A further 38% of the total sample size disagreed with the question. From this question, 20% were unsure as to whether the flavor and taste was quality.

When questioned on the quality of service, 4% of the sample size disagreed strongly that they were served promptly. A further 20% confirmed that the service was poor. About 46% agreed strongly that the service was delivered on a timely-basis and 4% strongly agreed to this question. Approximately 26% (13) of the sample size were uncertain whether they were served promptly or not. In matters pricing, from the results, 13 of the respondents (26%) agreed that the prices were fair, while 4% (2) actively agreed. Ten percent of the respondents strongly disagreed that the pricing at Papa Panda was unfair and 44% opposed moderately about the prices. The number of uncertain responses was 16% (8). We questioned the clients on the addition of more items in the menu, and only two disagreed strongly on this question. Twenty percent of the sample size opposed to the addition of more food to the list. Forty-two clients agreed, and a further 18% strongly supported the inclusion of more items. Eight of the respondents (16%) were uncertain whether the menu should be expanded to include more foods.

Discussions

Based on the findings of this case study, the majority of the clients pointed out that the taste and flavor of the food were not at par with their expectations. A combined total of 46% supported that Papa Panda did not offer the quality of food that they expected. A minority supported the notion that flavor and taste at this restaurant were exceptional. Thus, it can be assumed that the quality of food is lacking or may not be good enough for their immediate market.

The quality of service at this premise is customer-friendly. The evidence in the findings section implies that half of th...