UNIVERSITI TEKNOLOGI MARA THE INFLUENCE OF AIRPORT RESTAURANTS’ ATTRIBUTES ON CUSTOMER SATISFACTION IN LCCT OSNILINA OTHMAN Dissertation submitted in partial fulfillment of the requirements for the degree of Master in Hospitality Faculty of Hotel and Tourism Management January 2012 Candidate’s Declaration I declare that the work in this applied project was carried out in accordance with the regulations of Universiti Teknologi MARA. It is original and is the result of my own work, unless otherwise indicated or acknowledge as referenced work. This topic has not been submitted to any other academic institution or non-academic institution for any other degree or qualification. In the event my applied project be found to violate the conditions mentioned above, I voluntarily waive the right of conferment of my degree and agree be subjected to the disciplinary rules and regulations of Universiti Teknologi MARA. Name of Candidate : Osnilina binti Othman Identity Number : 2009220418 Programme : Master in Hospitality Management (HM770) - Coursework Faculty : Faculty of Hotel and Tourism Management Title of Thesis : The Influence of Airport Restaurants’ Attributes on Customer Satisfaction in Low Cost Carrier Terminal (LCCT), Malaysia Date : January 2nd, 2012 Signature : ………………………………. . ii COPYRIGHT © UiTM ABSTRACT Airport eating outlets’ or restaurant products and services are aligned and tailored to the need of its own unique market segment. In serving for ever growing numbers of travelers in an airport setting, the challenges are more intense and focused. The nature of airport operations and flight traffic requires fast, efficient and reliable dining service forces the eating outlets to offer attractive and convenient menu choices. Owing to the limited number of studies on airport eating outlets’ menu attributes, this study intended to focus on the dining satisfaction of travelers based on menu attributes such as price, offerings, portion size, waiting time and food quality. This study focus on air travelers who choose to dine in the airport terminal and Low Cost Carrier Terminal (LCCT) in Sepang, Malaysia was chosen. Eighteen (18) restaurants and eating outlets in all four (4) different ares in LCCT as the sample of this study and used distribution of questionnaires to gather the information. The main reason in choosing LCCT was due to the fact that this terminal mainly handles domestic and Southeast Asian destinations although they also cater for few other international destinations. The nature of domestic flights and its shorter distance may raise the issue of necessity to dine in LCCT’s eating outlets. Therefore, travelers dining at 18 eating outlets of the airport (LCCT) were asked for input. As the findings of this study, it shown that the quality of food as the most significant attribute towards customers satisfaction to dine at the eating outlets in LCCT and demographic profile of the customers that gave significant impact to the customer satisfaction. This study is hoped to be able to assist the eating outlets operators to understand the needs and reduce difficulties of travelers to dine in an airport eating outlets especially LCCT. iii COPYRIGHT © UiTM ACKNOWLEDGMENTS Alhamdulilah, thanks to Allah the Almighty for the great strength from Him I am able to accomplish this study even though there are a lot of challengers and hassle that I have to encounter. I am heartily thankful to my supervisor, Mr. Mohd Hairi bin Jalis for his encouragement, time, idea, effort, guidance and being supportive from the initial until the final stage of my research and helped me in developing understanding of the subject. It was a great privilege to work under his supervision, professionalism and expertise which led me to be more focused in sharing thoughts and ideas. This thesis also would not be possible without help from those parties within LCCT: 1) Ms Sabrina – Public Concourse Customer Service Staff 2) Mr Padzi – Public Concourse Customer Service Supervisor 3) Ms Wan Hazrina –LCCT Public Relation Manager 4) All person in charge of all 10 eating outlets They are great people in showing warm service and good hospitality for me even though I am not the customer; they understood my needs to obtain information from those 10 eating outlets within LCCT. Beside that, the superior of each eating outlet in LCCT also willing to assist me in accumulating the feedback from respondents when I am not around and gave their full cooperation throughout the process of distributing and approaching their customers. Special thank extended to Associate Professor Dr Mohd Salehuddin Mohd Zahari as the Postgraduate Coordinator, Faculty of Hotel and Tourism Management who was kindness to glance through manuscript of the thesis, giving me insights and comments for this study as well as kindness and encouragement in completing this thesis. iv COPYRIGHT © UiTM I wish to gratefully acknowledge the faculty members of Hotel and Tourism Management (FHTM), UiTM for their words of encouragement and kind assistance rendered throughout my study and assisted me in running the pilot test to reduce the bias and flaw in my set of questionnaire, all the lecturers who have thought me until I am able to complete this study. Not forgetting Mr. Aiemullah for his help in getting the approval for my permission letter and my student, Mohd Aiman Adnan for helped me in distributing the questionnaire with me at the LCCT. Their efforts in giving the best are highly appreciated. My heartfelt thank goes to my husband and two lovely daughters for their unwavering support and encouragement during the many hours I dedicated to achieve this milestone in my life. And of course, my warmest gratitude is dedicated to my lovely parents, Mak and Ayah and dearest siblings. They gave me strength, courage, inspiration, and unconditional love which influenced my greatest success throughout my pursuit of this master’s degree. My endless gratitude and love would never be enough. Thank you all from the bottom of my heart! Finally thanks to Universiti Teknologi Mara (UiTM) who has granted me this chance and without it I might not able to complete this study. OSNILINA OTHMAN v COPYRIGHT © UiTM TABLE OF CONTENTS Pages TITLE PAGE i AUTHOR’S DECLARATION ii ABSTRACT iii ACKNOWLEDGEMENTS iv TABLE OF CONTENTS vi LIST OF FIGURES ix LIST OF TABLES ix LIST OF ABBREVIATIONS x CHAPTER ONE: INTRODUCTION 1.0 Overview 1 1.1 Background of the Study 1 1.2 Problem Statement 3 1.3 Research Objectives 4 1.4 Research Questions 5 1.5 Theoretical Framework 5 1.6 Research Hypotheses 6 1.7 Definitions of Terms 7 CHAPTER TWO: REVIEW OF LITERATURE 2.0 Overview 8 2.1 Restaurant Attributes 8 2.1.1 The Development of Low Cost Carrier terminal 10 2.1.2 Customer Satisfaction 13 2.2 Relationship between Restaurant Attributes and Customer Satisfaction 13 2.2.1 13 Food Quality vi COPYRIGHT © UiTM 2.2.2 Price 14 2.2.3 Waiting Time 15 2.2.4 Menu Offerings 15 2.2.5 Portion Size 16 2.3 Underpinning theory on Customer Satisfaction 16 2.4 Past and relevant Studies 17 CHAPTER THREE: RESEARCH METHODOLOGY 3.0 Overview 19 3.1 Research Design 19 3.2 Unit of Analysis 19 3.3 Population and sample size 20 3.4 Data Collection Method 24 3.5 Instrumentation Design 26 3.5.1 Question used in Section A of the Questionnaire 29 3.5.2 Question used in Section B of the Questionnaire 31 3.5.3 Question used in Section C of the Questionnaire 31 3.5.4 Question used in Section D of the Questionnaire 32 3.6 Pilot test 33 3.7 Assessment of Internal Reliability 33 CHAPTER FOUR: RESULTS AND DISCUSSIONS 4.0 Overview 38 4.1 Introduction 38 4.2 Demographic Profile 39 4.2.1 Gender 40 4.2.2 Age 41 4.2.3 Annual Income 45 4.3 Characteristic of Respondents 46 4.4 Analysis Procedure 49 vii COPYRIGHT © UiTM 4.5 Restaurants attributes and Customer Satisfaction Rating Means and Standard Deviation 50 CHAPTER FIVE: RECAPTULATION, LIMITATIONS AND SUGGESTION FOR FUTURE RESEARCH, AND RECOMMENDATIONS 5.0 Overview 56 5.1 Introduction 56 5.2 Recapitulation of findings 56 5.2.1 Research Question 1 57 5.2.2 Research Question 2 57 5.2.3 Research Question 3 57 5.3 Limitations and Suggestion for Future Research 59 5.4 Implications and recommendations 60 5.5 Conclusions 61 REFERENCES 62 APPENDICES Appendix A – Sample of Questionnaire 68 Appendix B – Permission Letter 73 Appendix C – Slides of MAHB Financial Statistic 74 viii COPYRIGHT © UiTM LISTS OF TABLES Title of Tables Pages Table 1 : The list of food outlets at LCCT, in year 2012 10 Table 2 : Total population for this study based on daily total number of 22 customers dined at eating outlets in LCCT. Table 3 : Suggested Table of Sample Size for a Given Population 23 Table 4 : The number of respondents for each of the selected samples 26 Table 5 : Measures of the Study Variables 29 Table 5.1 : Items used in Section A : Airport restaurant Attributes 30 Table 5.2 : Items used in Section B : Customer Satisfaction 31 Table 5.3 : Items used in Section C : Return Intention 31 Table 5.4 : Items used in Section D : Customers’ Personal Data 32 Table 6 : Alpha Coefficient of internal reliability for each section of the questionnaire 35 Table 7 : The result of Kaiser-Mayer-Olkin of sampling adequacy and Bartlett test of Sphericity shown by sections of the instrument 37 Table 8 : Group Statistics 40 Table 9 : Independent Sample t-test Result 41 Table 10 : Mean rank for all group of ages 42 Table 11 : Test Statistics Output from SPSS 42 Table 12 : Results of Kruskal Wallis Test 44 Profile of Respondents 46 Table 13 ix COPYRIGHT © UiTM Table 14 : Restaurants’ Attributes in LCCT Dimension of Means and Standard Deviation (n = 112) 52 Table 15 : Determinant of Return Intention 54 Table 16 : Tabulate of Return Intention Results 58 LIST OF FIGURES Title of Figures Pages Figure 1 : Theoretical Framework 5 Figure 2 : Distribution of Gender 40 Figure 3 : Distribution of Age 41 Figure 4 : Distribution of Annual Income 45 Figure 5 : Tabulation of Return Intention Results 58 LIST OF ABBREVIATIONS IV : Independent variables DV : Dependant variable MV : Mediating variable LCCT : Low Cost Carrier Terminal PCA : Public Concourse Area DD : Domestic Departure QSR : Quick Service Restaurant MAHB : Malaysia Airport Berhad x COPYRIGHT © UiTM CHAPTER ONE INTRODUCTION 1.0 Overview This chapter consists of seven (7) sections. In the first section, this chapter is discussed about the background of the study. This is followed by the problem statement and objective of the study. Then it touched on research questions and the theoretical framework formulated. The benefits from this study are describe in the significance of study and final section is the list of definitions on all important terms used to get the clear picture of this research. 1.1 Background of the Study The word Airport is commonly correlated with huge building and space to accommodate highly sophisticated giant transport called aero plane where people come for airways transportation services either inbound and outbound or domestic and international. Similar to other places, people or more appropriate term is ‘customer’ by their very nature besides expecting good service worth to whatever they have paid for sure request other amenities and services available within the airport area for their convenience usage. Public toilet, waiting seats, luggage trolley, check-in counter and customer service counter are among popular and high in demand when travelers are around. However, other than the above mentioned amenities and services, presently food and beverage has become one of signature and attraction amongst airport customers. This is true as Manataki and Zografos (2009) have proven in their empirical study on airport attraction and pull factor investigation that food outlets fall as second importance attraction to the customers. 1 COPYRIGHT © UiTM According to Heung, Wong and Qu (2000), customer expectations towards what they perceived are the most important factor in choosing a restaurant in an airport setting. Airport restaurant and eating outlets have to meet the stringent expectations of the travelers that may come from any countries of the world with different tastes, cultures, preferences and eating beliefs. They concluded that most of the diners at airport restaurant are travelers who expected to get prompt and quick service and convenient operating hours. This is owing to the round-the-clock flight arrivals and departures. Service provider must meet the expectations of the customer. An organization building customer retention should enable customer to receive what they want, when they want it, a perfect each and every time with the desired level of service that appeal to the customer (Teas, 1993). To meet the higher expectation and demand of consumers, the producers and traders will need to continuously improve their efficiency and productivity to provide quality goods at competitive prices (Eight Malaysia Plan, 2003). Airport restaurant owners that are able to serve their customers efficiently will be able to build loyalty bond especially for next visit. For example, currently, Thailand, Singapore and of course Malaysia are the only Southeast Asia countries have been nominated and awarded as the best Asia international airport standard for 2 (two) consecutive years in 2009 and 2010. This recognition is given due to full specification and high quality standard of services offer including the other convenience services such as variety choices of food outlets (restaurant). In Malaysia particularly, there are total of fourteen (14) state airports and two (2) international airports namely KLIA and LCCT located in Klang Valley area. KLIA and LCCT are the heart and gateway for international inbound and outbound from all over the world. The development and rapid growth of Kuala Lumpur International Airport (KLIA) since its first opening in 1998 in terms of number of travelers and the introduction of the country’s first low cost airline; Air Asia has initiated the move to build an extension to it especially to cater for domestic market and international market. 2 COPYRIGHT © UiTM Low Cost Carrier Terminal Airport (LCCT) in Sepang, Malaysia is the first in its kind to be build to cater for low cost carrier in the country. The construction was started on June 2005 and fully operated on 23rd March 2006. At the beginning LCCT was build to cater passengers of low cost airline, Air Asia but nowadays they except full service airline such as Malaysia Airline, Singapore Airline, Firefly, Royal Dutch Airline, China Eastern, Qatar Airways, Korean Air, China Southern Airline, Silk Airways, Uzbekistan Airways, Etihad, Royal Brunei, Philipine Airline, Tigerairways.com, American Airline, China Airline, Gulf Air, Cathay Pacific, Egypt Air, Air France, Delta Airlines, Sri Lankan Airways, Jet Airways, Thai Airways, United Airline, Fedex, UPS, All Nippon Airways, Japan Airline, Lufthansa, Austrian, Emirates, Vietnam Airlines and Cebu Pacific . The facilities offered are variety business outlets beside the airline service itself including food and beverage outlets. Currently LCCT has eighteen (18) food and beverages outlets in four (4) different areas; public concourse area, international arrival and departure and domestic departure. LCCT restaurants and eating outlets are differentiated by the types of food served. They are fast food restaurants, bar, cafes, kiosk, casual dining and local food outlets through food court setting. 1.2 Problem Statement In order to succeed in the restaurant business, operators and owners must be aware of their standards of food quality offered to their guest. Products and services offered must be tailored to the need of its market segment. Customers’ satisfactions towards restaurant offerings are the core of the business. Managing loyal and repeat customers must start from the food itself. In serving for ever growing numbers of travelers in an airport setting, the challenges are more intense. The nature of airport operations that requires fast, efficient and reliable services force the restaurant and eating outlets to be more proactive to sustain. Travelers’ satisfaction towards the food and services offered in an airport setting will determine their re-patronizing intentions for the next visit or flight. 3 COPYRIGHT © UiTM Based on customer perception toward low cost carrier terminal airport, they expect of low cost dining expenses, limited choices of food offered by the restaurants and eating outlets and also expected of inadequate facilities in LCCT. LCCT has been chosen because of limited number of research based on airport restaurant attributes that lead to the customers’ satisfaction. For the time being, there is only one research done based on airport restaurant that emphasized only on service quality and the setting was at Hong Kong Airport (Heung, Wong and Qu, 2000). Further empirical investigation helps in identifying the most important factors that leads to airport customers or travelers satisfaction thus helping the restaurants and eating outlets to be more competitive. Researchers need to examine what makes the airport customer satisfied with the restaurant and eating outlets, what attributes are the most important to travelers and other significant findings. Therefore, this research will determine the factors leading to customer satisfaction in eating outlet at Low Cost Carrier Terminal (LCCT) airport in Sepang, Malaysia. 1.3 Research Objectives After considering that the purpose of the study is to examine the influences of airport restaurants’ attributes on customer satisfaction in LCCT, the following objectives were set out: 1. To identify the most significant influence of airport restaurants’ attributes towards customers satisfaction in LCCT; 2. To examine significant differences based on demographic profile of customer in association to their dining satisfaction in LCCTs’ restaurants; and 3. To determine customer satisfactions in LCCT restaurant’s attributes significantly influences the intention to return patronage 4 COPYRIGHT © UiTM 1.4 Research Questions To better support the research objectives, the following questions were formulated: 1. What airport restaurants’ attributes have significant influence among customers satisfaction in LCCT? 2. To what extend do airport restaurants’ attributes scores differ based on diners’ demographic profile and information? 3. Is there any significant influence the customer satisfactions in LCCT restaurant’s attributes and their intention to return patronage? 1.5 Theoretical Framework IV MV DV Customer Satisfaction (Yuksel & Yuksel,2002) Return Intention (Yen Nee Ng,2001) Airport Restaurants’ Attributes 1. 2. 3. 4. 5. Price; Menu offerings; Portion size; Waiting time and Food quality (Kivela, (2000), Steven,Knutson & Patton, (1995), Soriano (2002) and Clark and Wood, (2002) Figure 1: Theoretical Framework of the study Figure 1 is showing the variables used for this study started with the five (5) restaurants attributes as the independent variables which are consists of Price, Menu Offerings, Portion Size, Waiting Time and Food Quality. Return Intention as the 5 COPYRIGHT © UiTM Dependent variable while the Customer Satisfaction as the mediating variable for this study. Further elaborations of each variable are clearly discuss in Chapter Two. 1.6 Research Hypotheses Based on the considerations and the study variables earlier mentioned, the following proposed hypotheses are formulated. The development and formulation of the hypotheses were based on earlier mentioned objectives and study framework above: H1: Airport restaurants’ attributes significantly influence customer satisfactions in LCCT. H1a: The price of food and beverages offered significantly influence customer satisfactions in LCCT. H1b: Menu offerings significantly influence customer satisfactions in LCCT. H1c: Portion size of meal served significantly influence customer satisfactions in LCCT. H1d: Waiting time significantly influence customer satisfactions in LCCT. H1e: Food quality significantly influences customer satisfactions in LCCT. H2: Customer satisfactions in LCCT significantly differ based on their demographic profiles. H3: Customer satisfactions in LCCT restaurant significantly influences the intention to return patronage 6 COPYRIGHT © UiTM 1.7 Definition of Terms Customer Satisfaction: The level of feeling by the customer or user towards service that they felt matches their expectation (Yuksel & Yuksel, 2002). Restaurant: The most convenience place where people having their meal, beverages or just having light refreshment. Airport: A place where aircraft land and take off; which has buildings and facilities for passengers (Collins, 2005). Low Cost Carrier Terminal: The Low Cost Carrier Terminal or LCCT is an airport built and designed for the Low Cost Airlines with limited and moderate services. 7 COPYRIGHT © UiTM CHAPTER TWO REVIEW OF LITERATURE 2.0 Overview This chapter consists of four (4) sections. Restaurant attributes are clearly discussed at the beginning of the chapter. Further it also discusses on two (2) other crucial aspects in this study which are the nature of LCCT and the customer satisfaction perspective. In the second section, it emphasized on the relationship between restaurants’ attributes and customer satisfaction. The underpinning theories and past relevant studies are discussed in the last two (2) sections of this chapter. 2.1 Restaurant Attributes Numerous studies had shown that food quality, atmosphere, service quality and price and value has a favorable effect on dining satisfaction level, as it has been related to increase sale, revenue and customer loyalty (Kivela, Reece and Inbakaran, 1999). However, according to Lee (2004), dining environment, price, nutrition information and employee competency are considered the most influential factors in determining satisfaction level. Yuksel and Yuksel (2001) mentioned that food plays a key part by no means but is the only part that satisfying the customer. Previous studied reported that restaurant services were a blend of tangible and intangible components. The service encounter is and individually experience process where production and consumption take place at the same time. There is concept called “moments of truth” can defined as the “time and place” and “the where and when”. The service provider has the opportunity to show to the customers the quality of its service. Therefore what happens in these interactions will obviously have significant impact on customer satisfaction within service organization. 8 COPYRIGHT © UiTM In addition to assess customer satisfaction in foodservice industry, it is also essential to find out which restaurant or dining attributes are most important to customers. It’s generally accepted that multi-attributes scale is appropriate for use in measuring customer satisfaction in restaurant (Steven, Knutson and Patton, 1995: Kivela, Reece, Inbakaran, 1999; Qu, 1997). A study by Dube, Renaghan and Miller (1994) used attributes importance of various upscale restaurants; attribute to determine repeat purchase intentions. From the perspective of author, they theorized that customer satisfaction in restaurant is a function of multiple elements in dining experience. They found out that all the elements studied such as atmosphere, helpful server, attentive server, menu variety, waiting time, consistent food and tasty food had a significant influence to diners’ intent to return to the restaurant. However the elements had different importance scored that varied based on patrons’ type of dining occasions. Pleasure diners were less sensitive to the dining time but cared about menu variety, while business diners’ were sensitive of menu variety but cared about waiting time like the guest who dines at airport restaurant. However, attentive food, attentive service, atmosphere were ranked with high importance whether the patron were dining for business or leisure occasion. Matilla (2001) study indicated that the top three reasons the respondent gave for patronizing their target restaurant were food quality, service and atmosphere. Furthermore, value for money and convenient location were also important motivation to the respondent. According to a study by Pettijohn, Pettijohn and Luke (1997) as cited by McLlroy (2000), they determined which restaurant attributes were most importance, followed by cleanliness and value. Menu variety and store atmosphere were ranked at least important. These findings were significant because they helped fast food restaurant manager use their resources to make improvements on the store elements considered most influential in determining customer satisfaction. As service quality continues to be major service quality and research its effectiveness. 9 COPYRIGHT © UiTM 2.1.1 Development of Low Cost Carrier Terminal LCCT is the first low cost carrier terminal airport that was built in Sepang, Selangor, Malaysia. It was built in June 2005 and fully operational date was on 23rd March 2006. It managed by Malaysia Airport Holding Berhad, capable to handle 10 million passengers a year and planning to increase the number up to 15 million in the near future. Existed of Air Asia flight with low fare rate success to cater number of passengers who love to fly with low budget and increasing demand on the flight service at LCCT. This RM108 million worth terminal is completed with infrastructure such as parking space, surface access, curbside road, car parks, wash rooms, retail outlets, prayer room, foreign exchange counter, payphones, auto teller machines, car rental service, taxi service and the most crucial part for this study are those eighteen (18) eating outlets located either at the concourse area, departure and arrival area for both domestic and international flights and it was built on 35,290 square feet size of terminal. This terminal is also designed and built to suit the low cost carrier business model that requires only basic terminal amenities. In order to offer lower landing fees, handling fees and airport taxes, it cuts back on amenities such as aerobridges, rail connectivity, elaborate physical structures and decorations in the passenger terminal building. There is no transfer facility to the main terminal. Passengers who need to make transfers need to clear immigration, collect their luggage, clear customs, make their way to the main terminal and re-check in with the respective airline.(Sources: www. Klia.com.my) However, the current Low Cost Carrier Terminal is a temporary solution for the increasing demand of no-frills airline passengers. Therefore, Malaysia Airports Holding Berhad has incorporated the plans to build a new permanent LCC terminal which can accommodate 30 million passengers per year. In the mean time, the airport operator decided to expand the current terminal to keep up with the increasing demand. The new arrival hall was first open on 15 December 2008. This airport was the first airport to have separation between normal carriers and low cost carrier. The 10 COPYRIGHT © UiTM terminal is due to be replaced by the new low cost carriers terminal, KLIA2 when the terminal comes online on April 2013. With an increasing number of passengers using the 'Low Cost Carrier Terminal '(LCCT), MAHB approved an expansion beginning early 2007 to accommodate more passengers as the current LCCT is nearly at full capacity. The expansion of LCCT also shows the support for launch of Malaysia's first long haul low cost carrier, AirAsia X by making the terminal able to accommodate wide-bodied aircraft that are used by AirAsia X. However, the Low Cost Carrier Terminal is a temporary solution for budget travellers, MAHB submitted a proposal to the Transport Ministry to build a new, permanent LCC hub in between the main terminal building and satellite building A to replace the present Low Cost Carrier terminal. The airport operator has announced that the construction works for the extension of LCCT will begin in March 2008 and expected to complete by December 2008. The capacity for the LCCT will increase from 10 million passengers a year to 15 million passengers a year. A proposal for a more permanent building to house a new LCCT has been submitted and expected to have a capacity for 30 million passengers a year. It is also expected that the new LCCT will be completed by April 2012. It is expected that the current LCCT will be converted in to a cargo hub once the new terminal is completed. The RM124 million LCCT expansion project tender was won by Fajarbaru Builder Group Bhd and construction work is expected to begin March 2008. The new international arrival hall was opened on 15 December 2008 with expectation that the rest of the wing will be fully operational by March 2009. The international departure hall was finally open on 18 March 2009 which expanded the handling capacity from 600 passengers at one time to 3200 passengers. In the prior stage to do this study, the researcher found out there are only fourteen (14) restaurants and eating outlets operated in LCCT compound and nowadays the number increased to eighteen (18) restaurants and eating outlets included in all four (4) area: Public Concourse Area, Domestic Departure, International Departure and International Arrival. Tabulation of restaurants and eating outlets in LCCT with the seating capacity shown below: 11 COPYRIGHT © UiTM No. Name of Food Outlet Seating Capacity Type/Category 1. 1) Starbucks Coffee 35 Bistro/ Café 2. 2) Old Town White Coffee 52 Bistro/ Café 3. 3) The Coffee Bean & Tea Leaf 42 Bistro/ Café 4. 4) Theobroma Chocolate Lounge 30 Bistro/ Café 5. 5) Asia Kitchen 48 Casual Dining 6. 6) Mc Donald’s 78 QSR 7. 7) Kentucky Fried Chicken 60 QSR 8. 8) Food Garden at LCCT 124 Food Court 9. 9) Café Espresso 32 Bistro/Café 10. 10) Marrybrown 40 QSR 11. 11) Champion Sports Bar 20 Bistro / Café 12. 12) Buy & Fly Kiosk - Kiosk 13. 13) Dunkin Donuts Kiosk - PCA - Kiosk 14. 14) Lagenda café 45 Coffee House 15. 15) Boost Juice Bar 28 Café 16. 16) Prima Café 56 Coffee House 17. 17) Snack Attack - Kiosk 18. 18) Dunkin Donuts Kiosk - DD - Kiosk Table 1: The list of food outlets at LCCT, in year 2012 As shown in Table 1 the tabulation of the restaurants and eating outlets in LCCT with the seating capacity and the type of restaurants. 12 COPYRIGHT © UiTM 2.1.2 Customer Satisfaction Yuksel and Yuksel (2002) study about tourist satisfaction with restaurant service found that customer satisfaction is the most important topic for both researchers and managers. It is because the high level of customer satisfaction will lead to an increase in repeat customers. Being able to judge customers’ level satisfaction and to apply that knowledge is critical thinking point for ascertaining and maintaining long term customer retention and competitiveness. Morever Yuksel and Yuksel (2002) mentioned that the majority of satisfaction theory state that satisfaction is relative concept, always judged in relation to standard. According to Oh and Jeong (1996), even though the notable progress in customer satisfaction research has been made and there is significant demand for research from the industry, customer satisfaction has remain seriously under research in the hospitality industry. Furthermore studies applying customer satisfaction model are rarely found in the foodservice industry. Thus, in developing the hospitality customer satisfaction research, more tests and applications of the customer satisfaction model seem appropriate. From the slides presented pertaining to the Statistic of financial report presented by Board of MAHB Managers, slides 19 to 21 (Refer Appendix 3) shown that Food and Beverage rental outlets contributed higher in number of revenue to MAHB for third quarter of the year 2011 compared to the previous quarter of the year 2011. 2.2 Relationship between Restaurant Attributes and Customer Satisfaction 2.2.1 Food Quality Some studies have found that customer satisfaction with a restaurant food quality is a powerful predictor of customer intent to return to a given restaurant (Oh & Jeong, 1996; Qu, 1997; Pettijohn Pettijohn and Luke, 1997). Qu, 1997 in his study found out that food quality was the most important dimension in determining satisfaction. This 13 COPYRIGHT © UiTM element is significantly more important than any other dimension such as cleanliness, value, price and convenience, which ranked from second to fifth. Soriano (2002) study mentioned that quality of food and fresh ingredients were the reason why the customers return to the restaurant. Soriano also found that quality of food was the most significance than any other attributes. This result is consistent with the traditional concept that quality of food still the most important reason for the most general population of the restaurant. Clark and Wood (1996) in their study were asked respondent to choose five of the factors that lead to their satisfaction and they chosen food, quality of food, price of food, atmosphere and speed of service. In service setting such as hotel and restaurant, the atmosphere in which the services take places may be crucial in determining customers’ perception and satisfaction with the service encounter (Bitner, 1992). Soriano (2002), mentioned that the important of comfortable atmosphere will continue to increase with time. Therefore, the most important thing is design and concept. Customer satisfaction is often used as indicator of whether customer will return to a restaurant. Numerous factors can be identified as the reason as to why there are satisfied and come back. Among all possible determinants, studies have found that food quality is rated as the most powerful variables which lead to customer satisfaction in restaurant. For that reason, it is not surprise to see most of restaurant performance exceeded the following customer expectation including the feeling of comfort when eating there and cleanliness, freshness of food, temperature of food, taste and appearance of food served are beyond expectation of customers (Kivela et al., 2000). 2.2.2 Price In restaurant setting, service quality has been found to be important in determining customer satisfaction and return intention as well (Steven, Knutson & Patton, 1995). Qu (1997) in his study at Chinese Restaurant found that the service a courtesy dimension was second only to the food environment dimension in determining customer probability of returning to a given restaurant. The majority of customers tend to visit restaurant not only because of the food, quality service and pleasant service environment, but also because they feel the price they are paying represent 14 COPYRIGHT © UiTM