Thesis Proposal

The influence of service and product quality

towards customer satisfaction : A case study at

Kentucky Fried Chicken Manado

By

Visio P. M. Pilat

080613171

THESIS

Sam Ratulangi University, Faculty of Ecomomics

International Business Administration

2011

CHAPTER 1

INTRODUCTION

1.1 Research Background

Many researcher and academician has been known the importance

of customers in business. According to Zairi (2000), “Customers are the

purpose of what we do and rather than them depending on us, we very much

depend on them. The customer is not the source of a problem, we shouldn’t

perhaps make a wish that customers ‘should go away’ because our future and

our security will be put in jeopardy”. Because of that statement, that is the

reason why organization and company today are focusing on customer

satisfaction.

Customer satisfaction is the aim of a company to survive. Company

should keep and maintain their customer satisfaction in order to keep them buy

the company’s product. Keeping previous customers in general, is more

profitable than changed new customer because the cost to get the new one can

be 5 times more than the cost of keeping the previous ones (Kotler et al, 2000).

That statement means that keeping the loyal customer is like keeping the

existence of the company. To get the customer satisfaction, marketer should

apply their marketing strategies.

There are so many fast food restaurant that we can find in Indonesia.

The more player in one scope of business, the more the competition between

the companies. Because of that, the company should make an effort to keep

and improve their customer’s satisfaction in order to survive in that business.

Kotler (2000) defined satisfaction as: “a person’s feeling of pleasure

or disappointment resulting from comparing a product’s perceived performance

(or outcome) in relation to his or her expectation”. That’s the task of company to

make their customer satisfy with their product.

Friendly employees, courteous employees, knowledgeable

employees, helpful employees, product quality, billing timeliness, competitive

pricing, service quality, good’s value, billing clarity, and quick service are the

factors that affect customer satisfaction according to Hokanson (1995). This is

shown on Figure 1 below.

‘

Figure 1

Factors that Affect Customer Satisfaction

Quick service Courteous employees

Knowledgeable employee

Product Quality

Billing timelines

Friendly Employees

Billing clarity

Good value

Service quality

Overall customer

Satisfaction

Competitive pricing

Kotler (2004) said that the customer satisfaction is the level of

someone feeling to the services satisfaction after comparing the yield (output)

and the expectation. The level of satisfaction is a function of differences

between services quality feel and the expectation. If the services quality is

under expectation, the customer will be disappointed. If it matched with the

expectation, customer will be satisfied. Meanwhile, if it over the expectation, the

customer will be very satisfied.

In restaurant business, many kinds of menu offered with many kinds

of design interior. Besides the menu and the place, the quality of human

resources is a term of service and in processing is an important aspect. Most of

restaurant owner are not focus on the importance of quality of foods and the

service. But in some go public franchise restaurants, such as Kentucky Fried

Chicken (KFC), Mc Donald and many others, the quality of food is standardized

and always controlled, so the product has good quality. In that case, the service

has an important role in selling the product.

In Indonesia, there are many fast food restaurants that have many

customers. One of the biggest fast food restaurants in Manado is KFC at Mega

Mall. The main product of KFC is fried chicken. This restaurant is located at the

centre of Manado city and integrated with Mega Mall shopping centre. KFC as a

franchise has done many promotions trough television to keep their customer

loyalty and their existence in the global competition. Services are done trough

tangibility, reliability, responsiveness, assurance and empathy. Therefore, the

researcher wants to know the effect of marketing mix (Product, Price, Place and

promotion or 4P) and services of Kentucky Fried Chicken Restaurant to the

customer satisfaction.

Nowadays, the change of customer’s lifestyle makes consumer of

food to think critically. They want the good and perfect services. It because the

value added of service in restaurant can increase the revenue (Sukarto, 2011).

Walker and Lunberg (2005), said that the food quality is important for the

customers especially when they choose a restaurant. The customer’s reason to

go to the restaurant is hungry. But nowadays, customer also needs

entertainment and looking for the restaurant that gives pleasure environment.

Many food service providers have a perception that people only go to

eating outlets for the food. There is an assumption that the primary reason

people go to restaurants is for the meal. Therefore, as long as customers get

the food they want, they are satisfied. However, this view may not hold true for

those full service restaurant visitors whose main purpose is to transact

business or to enjoy the company of cherished others (friends, family, spouse,

etc.)

Service quality determines a customer’s satisfaction. However, the

determinants of service quality are complicated with the dynamic business

environment, Pun, K.F., and Ho, K.Y. ( 2001). Service quality is influence by

expectation, process quality and output quality; in other words the standards of

service is defined by customers who have experienced that service and used

their experience and feelings to form a judgment. Chen, F.P., Chen, C.K.N.,

and Chen, K.S. (2001).

According to Nicholls, J.A.F., Gilbert, G.R., and Roslow, S. (1998),

Service satisfaction is a function of consumers’ experience and reaction to a

provider’s behavior during the service encounter; it is a function of the service

setting.

1.2 Research Problem

Based on the research background tha explained before on point 1.1,

there are two problem that need to be researched, they are :

1. Does Service quality of KFC influence the customer satisfaction?

2. Does Product quality of KFC influene the customer satisfaction?

1.3 Research Limitation

As shown on Figure 1 above, there are many factors that affect the

customer satisfaction of a product. Friendly employees, courteous employees,

knowledgeable employees, helpful employees, product quality, billing

timeliness, competitive pricing, service quality, good’s value, billing clarity, and

quick service are the factors that affect customer satisfaction according to

Hokanson (1995).

In this case, researcher only use two factors that affect to customer

satisfaction to be examined, there are product quality and service quality.

Researcher is limiting the variables to examine into these two factors.

1.4 Research Objective

The objective of this research is to examine the influence of service and

product quality toward customer satisfaction; a study case at Kentucky Fried

Chicken Manado.

1.5 Research Usefullness

The usefullness of this research are this research could be used on

science development in order to develop the study about marketing, as the

reference to KFC if they want to increase their customer satisfaction by

improving service and product quality, as the reference to researcher if

someday researcher want to run a business.

CHAPTER II

LITERATURE REVIEW

2.1 Theoritical Background

2.1.1 Marketing Management

“Marketing management as the art and science of choosing target

markets and getting, keeping and growing customers through creating,

delivering and communicating superior customer value”. Kotler and Keller

(2006). Marketing management not only talk about science, but also talk about

the art of how a marketers will persuade the prospects to buy their product by

using marketing strategy, such as improving the 4p’s factors of marketing mix.

2.1.2 Marketing Strategy

“Marketing strategy is a set of objectives, policies, and rules that guides

overtime the firm’s marketing effort-its level, mix, and allocation- partly

independently and partly in response to changing environmental and

competitive condition” (Kotler, 1980). By using the marketing strategy,

marketers could set the plan to attract prospect in order to influence them to

buy the company products. One of the common strategy that used by

marketers is the marketing mix.

2.1.3 Marketing Mix

“Marketing mix is one of the key concepts in modern marketing theory.

Marketing mix is the set of controllable variables and their level that the firm

uses to influence the target market. McCarthy popularized a four-factor

classification called the four Ps: product, place, promotion and price. Frey

proposed that all marketing-decision variables could be divided into two

factors: (1) the offering (product, packaging, brand, price, and service), and (2)

methods and tools (distribution, channels, personal selling, advertising, sales

promotion, and publicity)” Kotler (1980).

On marketing mix, there are product, place, promotion, and price that

include on the 4p’s tools that could be used by marketers. These tools are used

to improve the customer satisfaction in order to survive on the business field.

“Customer satisfaction is the level of someone feeling to the services

satisfaction after comparing the yield (output) and the expectation. The level of

satisfaction is a function of differences between services quality feel and the

expectation. If the services quality is under expectation, the customer will be

disappointed. If it matched with the expectation, customer will be satisfied.

Meanwhile, if it over the expectation, the customer will be very satisfied.” Kotler

(2004).

2.1.4 Customer Satisfaction

The level of customer satisfaction may be influenced by various

attributes from internal and external factors. Customer satisfaction may be

identified as internal and external customer satisfaction of an organization.

From the literature review, researchers on external customer satisfaction have

been identified. However, there seems to also be dissatisfaction of internal

customer satisfaction from organization’s point of view.

To improve the customer satisfaction, marketers should know the

factors that influence the customer satisfaction. Two of the factors are service

and product quality. “Quality is the totality of features and characteristics of a

product or service that bear on its ability to satisfy stated or implied needs.”

Kotler (2000).

2.1.5 Service Quality

Service quality according to Zeithaml and Bitner in Tjiptono (1996), is

“divided into five dimensions, there are: (1) Tangible, there are physically

facilities, employee equipment, and communication facilities. (2) Reliability,

there are the ability to give the services promised immediately, accurately and

satisfactorily. (3) Responsiveness, there are the wants of staff to help the

customer and give the services. (4) Assurance, there are information, ability,

polite, and the employee belong the trustees, safely form the danger, risk or the

doubts. (5) Empathy, there are the easiness in doing relations, good

communications, personal attention, and understanding the customer needs.”

A related theory to customer satisfaction that has been adapted by

Bartlett and Han (2007) in customer satisfaction is the service quality model by

Parasuraman, Ziethaml & Berry (1991). This model indicates that there are five

dimensions included in this model are tangible, reliability, responsiveness,

empathy and assurance. The tangible include the physical appearance of the

facilities, equipment, personnel and materials used to communicate with

customers.

Figure 2

Transaction-Specific Model

Service quality is influenced by expectation, process quality and output

quality; in other words the standards of service is defined by customers who

have experienced that service and used their experience and feelings to form a

judgment.

A related theory to customer satisfaction that has been adapted by

Bartlett and Han (2007) in customer satisfaction is the SERVQUAL model by

Parasuraman, Zeithaml & Berry (1991). This model indicates that there are five

dimensions used in measuring customer service quality. The dimensions

included in this model are tangibles, reliability, responsiveness, empathy and

assurance. The tangibles include the physical appearance of the facilities,

equipment, personnel and materials used to communicate with customers [14].

Elements within the tangibles dimension are cleanliness, space, atmosphere,

appearance of server and location. Measuring element of responsibility and

reliability are speed, willingness to respond, accuracy and dependability. The

Evaluation of Service Quality (SQ)

Price

Evaluation of Product Quality (PQ)

Transaction Satisfaction

(TSAT)

dimension of assurance and empathy may be measured using elements of

knowledge, trained professional, communications and caring.

In order to achieve a quality service organization, commitment from

employees and support from all levels of management is necessary. Therefore,

it is important for managers who provide goods or services constantly to keep

track of information about the company’s well being as far as meeting its

customers’ needs are concerned. Service companies are trying to find ways to

improve and provide Superior quality service to satisfy their customers. He also

mentioned that satisfying customers is an ultimate goal for every company, as

customers are the greatest resources, both short-term and long term survival of

the company.

2.2 Research Review

Before researcher made this research, another researcher already did a

similar research that entitled as “Influence of Service and Product Quality

towards Customer Satisfaction: A Case Study at the Staff Cafeteria in the Hotel

Industry”. The main objectives of this study were to identify attributes that

influence customer satisfaction and determine their relationships with customer

satisfaction. The variables included in this research are place/ambience, food

quality and service quality as independent variables and customer satisfaction

as the dependent variable.

From the findings, there were positive significant relationship between

place/ambience (r=0.563**, p=0.000) and service quality (r=0.544**, p=0.000)

with customer satisfaction. However, although relationship between food quality

and customer satisfaction was significant, it was in the negative direction (r=-

0.268**, p=0.001). New findings were discovered after conducting this research

and previous research findings were strengthened by the results of this

research. Future researchers could concentrate on determining attributes that

influence customer satisfaction when cost/price is not a factor and reasons for

place/ambience is currently becoming the leading factor in determining

customer satisfaction.

New findings were discovered after conducting this research and

previous research findings were strengthened by the results of this research.

Future researchers could concentrate on determining attributes that influence

customer satisfaction when cost/price is not a factor and reasons for

place/ambience is currently becoming the leading factor in determining

customer satisfaction.

2.3 Relationship Between Variables

The level of customer satisfaction influenced by various attributes from

internal and external factors. Customer satisfaction may be identified as internal

and external customer satisfaction of an organization. From the literature

review, researchers on external customer satisfaction have been identified.

However, there seems to also be dissatisfaction of internal customer

satisfaction from organization’s point of view.

Service quality determines a customer’s satisfaction. However, the

determinants of service quality are complicated with the dynamic business

environment.

Product quality is one of the factors that influence people to buy a

product. People usually tend to satisfy with a product with a good quality rather

than a product with low quality.

2.4 Hypothesis

Service quality influence significantly toward customer satisfaction of

KFC Manado

Product quality influence significantly toward customer satisfaction of

KFC Manado

CHAPTER III

RESEARCH METHOD

3.1 Data and Source of Data

This research using two kind of data, which are primary data and

secondary data.

3.1.1 Primary Data

Researcher got the primary data by using questionnaire. The result form

questionnaire is the primary data that used to calculate with the analysis.

Questionnaires are distributed to respondents so they can respond

directly on the questionnaire. There were two sections in the questioner

in the questioner that should be filled in by the respondents. The first

section asked about respondent’s identities and the second section

asked about things that related with the variables.

3.1.2 Secondary Data

Secondary data is another data that needed in order to finish the

research besides the primary data. Secondary data could be the

company profile, organizational structure, and financial statement of the

research object.

KFC Company Profile

PT. Fastfood Indonesia, Tbk. Founded by Gelael Business Group

in 1978, and registered as a public company since 1994. The Company

started with the opening of business warabala first KFC restaurant in

October 1979 on the Road Melawai, Jakarta.The success of the

restaurant QSR (Quick Service Restaurant) The first is then followed by

the opening of KFC restaurants in other major cities in Indonesia. As the

sole franchise holder of KFC until today, the Company is constantly

building the KFC brand, and armed with the success of the Company for

26 years, KFC has been a fast-food brand of the most dominant, and is

widely known as fast-food restaurant chain in the country. At this time

the Company has 237 restaurants, including a catering unit mobi, in

more than 50 major cities in Indonesia, employing approximately 9280

employees with total sales of more than Rp1, 028 trillion at the end of

2005. 

    The Company is a public company listed on the Jakarta Stock

Exchange listed companies with a majority shareholding of 79.2% by

PT. Gelael Primary (43.6%) and PT. Megah Eraraharja (35.6%), and the

remaining shares amounting to 20.8% by the Public (20%), and

cooperatives (0.8%). PT. Gelael Primary is Business Group Gelael as

the founder of KFC in Indonesia, while the PT. Majestic Eraraharja is a

subsidiary of the Salim Group joined the Company as a majority

shareholder in 1990. 

    The Company obtained a franchise from KFC Yum! Brands Inc..,

Restaurant companies that have systems of the world's largest

units. Yum! Brands Inc.. (Formerly known as Tricon Global Restaurants)

is the franchisor's trademark KFC, Pizza Hut, Taco Bell, A & W and Long

John Silvers. Name of Yum! chosen because it symbolizes the company

hopes to deliver satisfaction 'Yum!' in the face of its customers

worldwide.With five trademarks that operates under the auspices of the

same company, Yum!would be the best in providing a variety of choices

to consumers, and it certainly will take the lead in multi-branding

effort. KFC, as global leader in the category of fast food restaurants

serving chicken products and other products associated with chicken

meat, in particular, is owned by Kentucky Fried Chicken International

Holdings, Inc.., In Louisville, Kentucky (one of the trademarks Yum!

Brands Inc. .). 

    The Company's flagship product, Colonel's Original Recipe and Hot &

Crispy Chicken, remains the most delicious fried chicken according to

various surveys of consumers in Indonesia. It is understandable if high-

quality KFC's flagship product is acceptable both in Indonesia, a country

with the consumption of chicken meat is much higher than other types of

meat. In addition to presenting their products, KFC also meet the tastes

of local consumers by offering a menu of options such as cakes, Rice,

and Sweet Corn Salad, as well as other products like Crispy Strips,

Twister, and Spaghetti, which was very well received by our markets. To

give added value to consumers, the combination of efficient and high

quality menu as KFC Attack and Super Heat always offered. Brand

development through the introduction of new products, advanced

products, and promotional packages, cheap (in permanent or time

limited) contributed greatly to the growth of KFC KFC brand and increase

competitive differentiation. 

    To monitor the Company's market position and performance as a

whole, a survey called the Brand Image Tracking Study (BITS) regularly

held since 1998. The survey is conducted each quarter and is managed

by a company survey to determine consumer perceptions and brand

image of its peers in the fast food industry. This study revealed that KFC

was consistently at the highest and most prominent position in the minds

of consumers to 'Top of Mind Awareness' compared with other major

brands. In addition, the Company also conducted a study Customer

Experience Monitoring (CEM) to find out how the consumer experience

of services and facilities KFC, and CHAMPSCHECK studies to assess

the quality of services and facilities available at KFC. Company Award

2005 Chamber of Commerce awarded in the field of Tourism for the

restaurant category. Letter of Appreciation was awarded by the Chamber

of Commerce & Industry of the Jakarta administration for companies in

the category of hotel, restaurant & entertainment that contributes

significantly to the local government revenue, and also of great concern

in preserving and protecting the environment. 

    The Company wholeheartedly with the commitment to maintain the

vision of leadership in the fast-food restaurant business, by continuing to

give satisfaction "Yum!" To consumers. Support of our shareholders,

management expertise, loyalty and dedication of employees, as well as

the continuity of consumer visits, can help achieve this vision. The

Company believes that by creating and building a strong culture where

everyone in the Company makes a difference, shaping consumer

opinion & sales mania, giving the brand a competitive differentiation,

establishing the continuity of relations with the community, as well as

maintaining the consistency of success that has been achieved, it will

eventually make KFC a brand's most popular all over Indonesia, and a

good company and solid.

3.2 Population and Sampling Method

3.2.1 Population

Population refers to the entire group of people, events, or things of

interest that the researcher wishes to investigate. The population of this

research is Manado citizens as the customer of Kentucky Fried Chicken

as much 30 respondents.

3.2.2 Sample

Because the population is less than 100 respondent, researcher

no need to use sample.

3.3 Data Collecting Method

Data that used in this research are collected by using

questionnaire that spread to the respondents, in this case the customers

of Kentucky Fried Chicken in Manado as much 30 respondents.

3.4 Analyze

This research used Multiple Regression Analysis as the Analyzing

Method. Multiple regression is a statistical technique that allows us to

predict someone’s score on one variable on the basis of their scores on

several other variables. An example might help. Suppose we were

interested in predicting how much an individual enjoys their job.

Variables such as salary, extent of academicqualifications, age, sex,

number of years in full-time employment and socioeconomic status might

all contribute towards job satisfaction. If we collected data on all of these

variables, perhaps by surveying a few hundred members of the public,

we would be able to see how many and which of these variables gave

rise to the most accurate prediction of job satisfaction. We might find that

job satisfaction is most accurately predicted by type of occupation, salary

and years in full-time employment, with the other variables not helping us

to predict job satisfaction.

When using multiple regression in psychology, many researchers

use the term “independent variables” to identify those variables that they

think will influence some other “dependent variable”. We prefer to use

the term “predictor variables” for those variables that may be useful in

predicting the scores on another variable that we call the “criterion

variable”. Thus, in our example above, type of occupation, salary and

years in full-time employment would emerge as significant predictor

variables, which allow us to estimate the criterion variable – how satisfied

someone is likely to be with their job. As we have pointed out before,

human behaviour is inherently noisy and therefore it is not possible to

produce totally accurate predictions, but multiple regression allows us to

identify a set of predictor variables which together provide a useful

estimate of a participant’s likely score on a criterion variable.

3.5 Operational Definition and Variable Measurement

To measure the data that would be researched, researcher using

marketing mix as the indicator.

Indicator

1. Product

Product in general is Good, idea, method, information, object,

service, etc., that is the end result of a process and serves as a need

or want satisfier. It is usually a bundle of tangible and intangible

attributes (benefits, features, functions, uses) that a seller offers to a

buyer for purchase. Sub indicator that used in this research, are:

- Product quality: The ability of a product to perform its function,

it includes the product’s overall durability, reliability, precision,

ease of operation and repair, and other valued attributes. For

Fast food business, product quality can be measure from the

ingredients that used, the taste of the food, the

- Services: Any activity or benefit that one party can offer to

another that is essentially intangible and does not result in the

ownership of anything. In this criteria involve the measurement

of services given by the fast food business to assist customer

ease and convenience.

2. Price

Market value, or agreed exchange value, that will purchase a

definite quantity, weight, or other measure of a good or service. As

the consideration given in exchange for transfer of ownership, price

forms the essential basis of commercial transactions. It may be fixed

by a contract (such as sale of goods contract), left to be determined

by an agreed upon formula at a future date, or discovered or

negotiated during the course of dealings between the parties

involved.

CHAPTER IV

RESULTS AND DISCUSSIONS

4.1 Result and Discussion

4.1.1 Output Variable Entered/Removed and Model Summary

Regression

Variables Entered/Removedb

Model

Variables

Entered

Variables

Removed Method

1 Service Quality,

Product Quality

. Enter

a. All requested variables entered.

b. Dependent Variable: Customer Satisfaction

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 ,534a ,285 ,255 ,506

a. Predictors: (Constant), Service Quality, Product Quality

INTERPRETATION:

At Variable Entered/Removed showed that none of the variables that

be taken out from the equation.

Model Summary, R= 0,534 and R x R = R Square = 0,285, showed that

0,285 or 28,5 percent of Customer Satisfaction affected by Service

Quality and Product Quality, and the rest affected by other factors.

4.1.2 Output ANOVA and coefficients

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 4,795 2 2,397 9,370 ,000a

Residual 12,025 47 ,256

Total 16,820 49

a. Predictors: (Constant), Service Quality, Product Quality

b. Dependent Variable: Customer Satisfaction

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) -1,938 1,277 -1,518 ,136

Product Quality ,632 ,283 ,285 2,232 ,030

Service Quality ,864 ,289 ,383 2,993 ,004

a. Dependent Variable: Customer Satisfaction

INTERPRETATION:

At ANOVA, value of F = 9,370 with p = 0,000. Because p < 0,05; so

the regression can be used to predict the Customer Satisfaction, or

as together Independent variable; Service Quality and Product

Quality affect the Customer Satisfaction at the level of 95% of

believe.

At Coefficients:

o Value of B Constant = -1,938 tells that if the Service Quality

and Product Quality are ignored, the Customer Satisfaction will

be -1,938

o Value of B Product Quality = 0,632 tells that every increasing

in product quality will increase the Customer Satisfaction as

much as 0,632

o Value of B Service Quality = 0,864 tells that every increasing

in service quality will increase the Customer Satisfaction as

much as 0,864.

o From the value of B constant , B Product Quality, and B

Service Quality, can make an regression equation:

Y= a + b1X1+b2X2 = -1,938 + 0,632 X1 + 0,864 X2

Explanation :

Y= Customer Satisfaction a= Constant

X1= Product Quality X2= Service Quality

o Based of the decision making to know the coefficient affected

of each variable:

BASED ON VALUE OF t hitung

If t hitung < t tabel ( + and –ignored), so Ho accepted,

or there is no signicicant influence from a independent

variable to dependent variable

In other hand, If t hitung > t tabel, so Ho rejected, or

there is significant influence from a independent

variable to dependent variable

Table viewed with db( derajat bebas) = N – k, N =

number of sample (N=50) and K = number of variable

(K=3), so db = 50 – 3 = 47

t tabel (db=47 level of confidence 95% (α/2 = 0,05/2 =

0,025)) = 2,143

t hitung X1 = 2,232. Because t hitung > t tabel, so Ho

rejected or Product Quality influence significantly to

Customer Satisfaction

t hitung X2 = 2,993. Because t hitung > t tabel, so Ho

rejected or Service Quality influece significantly to

Customer Satisfaction

BASED ON VALUE OF PROBABILITY

X1: p = 0,030. Because p<0,05; so Ho rejected or

Product Quality is influence significantly to Customer

Satisfaction of KFC

X2: p = 0,004. Because p<0,05; so Ho rejected or

Service Quality is influence significantly to Customer

Satisfaction of KFC.

4.1.3 Output Correlation

Correlations

Product Quality Service Quality

Product Quality Pearson Correlation 1 ,263

Sig. (2-tailed) ,065

N 50 50

Service Quality Pearson Correlation ,263 1

Sig. (2-tailed) ,065

N 50 50

INTERPRETATION:

At pearson correlation there are number 0,263 that showing the correlation

have value of r = 0,263. Because the correlation between Product Quality and

Service Quality have value of r < 0,6; so that correlation can be concluded as

not-strong correlation.

CHAPTER V

Conclusion and Recommendation

5.1 Conclusion

Based on the result of Multiple Regression analysis that analyze about

“The influence of service and product quality towards customer satisfaction: A

case study at Kentucky Fried Chicken Manado” writer find that Product Quality

and Service Quality are influence significantly to Customer Satisfaction of KFC.

So, If KFC wants to increase their Customers Satisfaction they should increase

the Product and Service quality first. Because every change in Service or

Product Quality of KFC, will significantly influence their Customer Satisfaction.

5.2 Recommendation

In order to Increase the Customer Satisfaction, writer recommend to

KFC management to find a way to increase Product and Service Quality first.

For example: Adding new menu or give some innovation to the menu of KFC,

Give more training to the employees to increase their service ability so that they

can serve the customers better.