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This research aims at to provide the strategies which can be employed by company in order to establish customer satisfaction and customer loyalty by looking at the case of Thai square which is the famous Thai restaurant in London regarding to its reputation. Since customer relationship management is gaining more important to businesses. Many companies try to solve their problem by applying customer relationship management such as the motivation of staff , staff training , method of increasing customer satisfaction, how to gain customer loyalty. These factors can lead to building customer loyalty in the future.

In the part of literature review will emphasize on the basis theories which are relevant to the customer relationship management. This research contains the motivation theory , staff training , customer satisfaction and customer loyalty.

By achieving this research purpose , this research employs secondary and primary data. The primary data was acquired by a questionnaire survey which is the methodology of this research. Regarding to the questionnaire for staffs , there are 20 respondents who participated in this research as well as there are 100 respondents who walk into and eat at Thai square restaurant who responded to the questionnaire for customers. The sample size of this research is Thai square restaurant (Minories).

To conduct this research researcher used both primary and secondary data achieved by self – administered questionnaire. By analysing primary data from the questionnaire , the SPSS and Microsoft Office excel was used to achieve it. The statistical method was applied to analyse the result of this research. The results illustrate what factors could gain customer satisfaction , how successful the staff performance after being trained , how well staff can achieve companies’ objectives.

This research also provides recommendations for company and the further research so that company can improve the customer relationship management as well as can gain more customer loyalty in the future.

Chapter 1


1.1 Overview

Nowadays, the consumer behaviour has been changed from the product centred stage to the customer cantered stage . Moreover, the customer’s behaviour has been changing. Mudie & Pirrie (2006 p.7 ). When they purchase product , they expect not only good product , quality and design but they also expect on service. Therefore, the service has been the significant reason in decision – making process.

Since many business have been trying to improve and develop their strategy in order to meet the customer’s need rather than the products. All organisation’s achievement has to give an important to the customers. Companies need to recognize all details of their customers such as the details about what customer need , who they are , what they buy, when and where they buy , how often and how much they spend. Moreover, companies have to evaluate approximately the customers’ behaviour in order to predict what customers will do in the future. In addition, companies should establish the database of their customer and profile so that they can keep contact and advertise new promotion. These has been the knowledge of company which have been assumed as the asset of company. The managing customer relationships strategies is the essential process.

By emphasizing on customer relationship management , companies may increase their abilities in knowing what customers need. Moreover, customer relationship management can help companies to target potential customers and to cut unnecessary cost and gain higher return on investment.

As the staff motivation and training is a part of the Human Resource Management. There is a connection between customer relationship management and Human Resource Management because customer relationship management relies on staff’s effectiveness and moral. Customer relationship management focuses on customers. To satisfy them , companies need to develop their staff’ effectiveness and moral using motivation and training method. By doing so , companies may gain customer satisfaction and customer loyalty which are companies’ objectives.

Customer relationships management strategy has generally been company’s strategy in managing customer relationship so that companies can retain their customers and increase customers’ satisfaction and loyalty (Blazey 2006 p.136)(Kumar 2006 p. 156-157)

Companies are focusing on customer retention , customer loyalty and customer satisfaction as a key management objectives. The one objective of customer relationship management is the advertising of customer loyalty .(Peppers & Rogers 2004 p.12). The greatest benefit of customer service is customer loyalty (Tschohl & Franzmeier 1996 p.20).Loyal customers are forcing organization changes.(Montano 2005 p.332)and can improve employee morale and productivity because customers respond positively to company. (Tschohl and Franzmeier 1996 p.20).

The motivation for loyal customer based on better products, better service and better market value.(Montano 2005 p.332) . The manager is more likely to achieve improved levels of motivation(Nieto 2006 p.108) Companies have to motivate staff to participate in training process for improving staff performance so that they can achieve customer relationships management strategy. Organization tend to concentrate on performance management and rewards to elicit employee cooperation ,supporting the value management and employee relations in workforce. (Nieto 2006 p.108)

1.2 Aims and Objectives

The objective of this research is to provide the strategies which can be employed by company in order to establish customer satisfaction and customer loyalty and to improve employee’s performance to achieve objective in the future.

The objectives are that :

1. To evaluate the customer satisfaction which may lead to customer loyalty

2. To explain the relationship between motivation of staff and staff training as well as their effectiveness to improve customer service in order to satisfy customer

3. To establish the appropriate strategies for restaurants in terms of customer relationship management.

4. To give an advice for restaurant , staffs on how to improve their potential in providing so as to satisfy customer.

1.3 Organization background

The Thai Square Restaurant Group was founded in 1996 when the first Thai Square opened in The Strand in central London. Thai square restaurant aims to maintain the leader status in the London market and sustainable growth of Thai restaurant market. The currently competition is intensive and the customer’s behaviour have been changing very rapidly. Many competitors can soon gain the competitive advantage and also gain more market share eventually. The company creates challenges with authentic Thai food, fresh ingredients , excellent service as well as restaurant’s design and decoration to be unique and different from the competitors. To address these challenges, the company need to provide a great service in order to gain customer satisfaction and loyalty. Thai square has planned to add value to the customers by capturing customer feedback received by telephone, e-mail, and establishing a knowledge base of problems and solutions. (Interview with restaurant manager of Thai square (Minories)

According to the restaurant review, the customers choose Thai square restaurant because its decoration , quality of food and service however the price of food and drink in Thai square restaurant when compare to the competitors is quite high especially today’s economics is critic and the customers’ behaviour have been changing. They may choose to spent on food and drink which is not too expensive and value for money. Therefore, they will choose somewhere else which is cheaper even if it is not good as Thai square. The increasing competitors and changing consumer behaviour are forcing company to apply the managing customer relationships strategies such as customer loyalty , customer loyalty and customer service so as to meet customers’ need. Thai square uses the concept of managing customer relationships strategies to be the optimal solution for this case. (Interview with manager of Thai square (Minories))

In the case of Thai square restaurant, the company grew at a lower rate than last year (2008). Net profit declined by 23% from last year due to economic crisis. In addition, it is affected from changing consumer behaviour.The company applied the idea of customer relationship strategies to meet the customer satisfaction and consequently increase customer loyalty.

1.4 Research Structure

The structure of research consists of 6 chapters is as follows;

Chapter 1: Introduction

This chapter contains aims and objectives of research , organization background which is a case study of this research as well as the structure of this research.

Chapter 2: Literature review

This chapter focus on all theory and strategies that relate to this research such as motivation theory , staff training , customer service , customer satisfaction and customer loyalty.

Chapter 3: Methodology

This chapter describe what methodology can be employed in research and what methodology which is applied by this research. This chapter also contains the objectives and goal of this research, research design , sampling method , data collection and data analysis technique as well as the validity of this research.

Chapter 4: Data analysis

This stage is using Microsoft office excel (Excel) and SPSS program to analyses questionnaire’s data. As well as this process will be evaluated data into percentage and mean score in order to show result by bar chart and pie chart in next step. Bar chart and pie chart will help to easily understand the research topic in each questionnaire

Chapter 5: Conclusion

This chapter provide the conclusion of the questionnaire result is provided to answer the research aims and objectives.

Chapter 6 : Recommendations

This chapter provide some recommendations for company and its employee as well as further research.

Chapter 2

Literature Review

As a result of competitive business situation , many businesses need to pay attention to the new method in retaining and creating new customers. Customer loyalty lead to profitability. Companies should develop positive relationship with customers by increasing customer satisfaction. Since customer satisfaction has been an important to establish long – term relationships which may result in customer loyalty and long – run businesses. It is widely known that the cost of retaining an existing customer is much cheaper than attaining a new customer.

In addition, increasing a customer loyalty may be achieved by the level of service which is delivered by company. Companies need to develop the quality of service by increasing responsiveness , fulfilling customer’s needs as well as providing consistent service. In many business industries, customer satisfaction has been used as the guiding principle for developing customer relationship management strategies as well as organizing business activities.

2.1 Theories of Motivation

2.1.1 Introduction

The motivation in work is “The processes by which people are enabled to and induced to choose to behave in particular ways (Stevens 2005 p.90). As a result, The motivation could be maintained and improved if it was related with a seek for the methods by the job performance and productivity of members

2.1.2 Need Based Theories

The previous idea of human motivation was based on the concept of self-satisfaction which human tries to meet with the happiness and relieve and tries to avoid sadness and distress. However ,this statement, whilst being apparently rational, cannot clarify many ways of human behavior. For example, why do the volunteer charity workers offer their time and attempt for nothing? Why do amateur athletes exert such high levels of effort, whereas a hedonist would prefer to relax? Researchers started to understand that human has other needs and desires which cannot be given an explanation under such a restricted observation of human behavior as hedonism. Therefore, there is the basic principle of needs theories which human motivation is resulted from the absence of an important needs.(Argenti 2002 p.89)

Figure 2.1: The Motivation Framework

Source: Griffin, R.W. (2003), Fundamentals of Management- Core Concepts and Applications (3rd edn), Houghton Mifflin Company, Boston

2.1.3 Maslow's Hierarchy of Needs

Yeatts and Hyten (1998 p.62) regarded motivation as a continually changing desire to fulfill changing needs. Maslow supposed that human needs arose in a hierarchy of importance, that was called ‘prepotency’. Only the motivators will play a role on the next stage of needs in the hierarchy. Therefore, the act as motivators would be ended when the stage of needs has been fulfilled and the person will pay directly the attention to the next stage of needs in the hierarchy. Maslow’s hierarchy of needs

is shown in Figure

Physiological needs

(Food, water, shelter)

Safety needs

(security, protection)

Social needs

(sense of belonging, Love)

Esteem needs

(status, self-esteem)





Figure 2.2: Maslow’s Hierarchy of Needs

2.1.4 Motivation-Hygiene Theory

The research observed the link between job satisfaction and productivity with 200 engineers and accountants. The research outcome was the motivation - hygiene theory of Herzberg, which proposes that certain factors (intrinsic factors)can result in job satisfaction, while others (hygiene factors) can prevent from dissatisfaction but cannot stimulate satisfaction. Herzberg at el (1959 p.102). Intrinsic factors are factors which are inherent to the job, for instance , the satisfaction of the job itself as well as the recognition and development for success , the availability of chances for the responsibility.

On the other hand , hygiene factors are relevant to the environment in which the job performance is achieved. The hygiene factors consist of working conditions , supervision and interpersonal relations , salary as well as the policy and administration of organization. Besides, the importance prerequisite factor , which is needed to influence human’s motivation, is regarded as the hygiene factors.

The motivation factor would be able to proceed on the staff and establish job satisfaction and productivity if there were ‘good’ hygiene factors which lead the staff to be in a form of ‘no dissatisfaction’. Consequently, to encourage staffs towards higher productivity, “while it is important to ensure that the hygiene factors are correct, the manager must manipulate the motivation by attending to job-content issues (e.g. job-enrichment)? (Carson at el 1997 p.136). Job- enrichment entails redesigning jobs to make them more interesting and challenging by allowing provisions to be made for increased responsibility, creativity and autonomy.

The Herzberg’ research has been criticized because of the research itself and the biased collection of sample (see Holloway 1991). Holloway (1991 p.1) stated that the clerical and production workers ‘did not produce the accounts he was seeking, he didn’t sample them’. Goldthorpe et al (1968 p.11) suggests that other types of employee (such as assembly-line workers) may indeed view work in the way expressed by scientific management and be primarily motivated by financial incentives. A case of workers being primarily motivated by what Herzberg regards as a hygiene factor. The important point to be made from the criticism of Herzberg and from the work of Goldthorpe et al. is that no one theory, be it human relations or scientific management, is likely to apply universally.

Different socio-economic groups appear to attach different meanings or have different orientations towards and work (Parker 1972 p.200). While different group s of people may have different attitudes towards work, they are also likely to react differently towards management policies. A model of worker motivation should therefore be able to differentiate between different types of worker and treat the wants, expectations and attitudes towards work as ‘culturally determined variables, not psychological constants’ (Goldthorpe 1968 p.178).

As a result of the differences of each staff , company should apply a motivation policy so as to encourage an individual behavior and characteristic of its staff. To motivate people with different need and different characteristics is difficult but it would be rewarding and challenging. It can be said that hope is the magic component of motivation.

The motivation factors help staffs to do a better job and to increase productivity(Steinberg 1976 p.123) ( Kamin 2002 p.87). The theorists propose that there are four strongest motivation factors which are the achievement : feeing personnel accomplishment for having done a job well , the recognition : being recognized for doing your job well ; for example , being complimented by your boss and receiving an award , the participation : being involved in your work ; having some responsibility for making decisions and the growth : having the opportunity for challenge in the job, such as the chance to learn skills and knowledge. (Kamin 2002 p.87). Manager not only should translate attitude and knowledge into action but also recognize that people have diverse motivations for asking to join a team (Nieto 2006 p.56).Therefore , manager should to be understand in how theories and models can be translated into useful practices (Currie and Procter 2003 p.14) in next step on training and practical skill

Motivation Factors


The work itself





Satisfaction No Satisfaction

Hygiene Factors


Company policy

Relationship with supervisor

Working conditions


Relationship with peers



Dissatisfaction No dissatisfaction

Figure 2.3: Motivation-Hygiene theory

2.2 Training

2.2.1 Definition of training

Training has been defined as the planned activities on the part of an organization to increase job knowledge ,skills or to modify the attitudes and social behavior of the members in ways consistent with the goals of the organization and the requirements of the job (Robin 2003 p.1219)(Anderson and Neil 2001 p.280)

Development has been defined as any attempt to improve managerial effectiveness through a planned and deliberate learning process .

Methods of training needs / analysis needs. (Wilson 2005 p.149)

Job analysis.

Job description.

Interview with the job holder.

Interview with the manager / supervisor.

Performance objective.

Analysis of competencies.

Reasons for training

Poor performance and /or productivity.

A change in working methods.

Introduction of a new technology or equipment requiring new /different skills.

Changed or new product range ,after sales etc;

Replacement of employees who have been promoted or transferred, and training the employees who are all promoted and replaced.

To improve workplace safety.(Ferris, et al 1995 p.154)

2.2.2 Training Methods Attitude training

An attitude training is an individual’s characteristic way of doing or responding to a object or a situation. It is based on the experience and leads to certain behavior or the expression of certain opinions. Methods of attitude training

On the job experience placing the trainee within a group whose attitudes are thought to be appropriate .This socialization process tends to produce the desired attitude in the trainee.

On the job training :This may involve “Shadowing? or being attached to a senior employee who has the desired attitudes and personal qualities to influence the employee .(Bohlander 2001 p.235)

On the job counseling ‘s senior member of the organization with the desired qualities and attitudes is appointed as the mentor to the employee.

Off the job training :A group of employees engage on case study activity intended to emphasize relevant and desirable attitudes.

Off the job exercises : Role-playing exercises.

2.3 Customer service

The small companies should emphasize on creating positive relationships with their customers. Customers with positive dealings with companies are likely to be loyal. There are three fundamental idea which lead to the focus on delivering an outstanding customer service. Firstly, the high level of customer service increases customer satisfaction. Secondly, customer satisfaction leads to customer loyalty. Thirdly, small companies have a possibility in delivering greater customer service than large companies. From those three fundamental idea , it can be concluded that by not concentrating on customer service may endanger the achievement of customer satisfaction and customer loyalty. (Longenecker 2005 p.289)

In general , good customer service is to meet customers’ expectations by giving the importance and value to them. Their experience in companies’ service will decide that not only they want to continue doing the business with companies but also what will they give a word of mouth about companies’ service. The good customer service is decided by customers who is given the service. As each customer has different needs and expectations. Therefore, companies need to designed service for individual customers.

2.3.1 Why customer service is important

There are a research shows that when employees have a poor view of customer service , this will result in high turnover in companies. Therefore, to increase the quality of service could lead to increase employee retention and customer loyalty.

Some people would like to do good work. They may lack skills and so they appear unmotivated, or they may be job-hopping because they have not found work environment that support their talents. By giving the support and training as well as service environment which focus on customer staffs could have tools they need to give customers what they want and deserve. (Kamin 2006 p.1)

In addition ,training is important part to improve quality. Good staffs understand that training is crucial for being successful on the job and for future career opportunity.

2.3.2. The value of good service

Service is important to customers as well as it is important for business development. The aim of companies by creating more value for customers is to retain customer to their companies. Everyone in companies should help to build value as well as their jobs aim at serving customers. When everyone understand their role in serving customers, there will be the results which are creating goodwill and increasing companies’ reputation , decreasing in the case of poor quality , improving the chances of cross –selling and up – selling , gaining in the number of customer retention , reducing employee turnover , making more profit , establishing the goal and performance measure , having competitive advantages and being differences from competitors.(Zemke and Wood 1999 p.12)

2.3.3 How to provide good customer service

Most customers have common expectations. They need companies to deliver an outstanding service , solve and realize their problems as well as make an apology if anything went wrong. To determine customer satisfaction companies need to meet their customer’s needs. Moreover, there are some methods which could help to build customer satisfaction. Firstly , companies should give the attention to customers all the time. Secondly, companies have to listen to customers in the way of understanding what they really need.( Aguilar and Stokes 1995 p.3-7)

2.4. Customer Loyalty

As the purpose of increasing profit by continually satisfying customer’s need becomes more prevalent, the significance of meeting customers' satisfaction and increasing their loyalty becomes more important in the competitive business (Disney 1999 p.491). As a result, business owner who want to be successful in the long term should encourage customers' visits and make more sales. Good business owner have known and understood this situation well and devoted much of their consideration to ongoing and increasing sales through a variety of marketing activities. Business owner of subtle products should do the same for supporting competitive advantages( Disney 1999 p.491)(Grönroos 1990 p.3).

Moreover , since the need of focusing marketing attempt on maintaining existing customers grow to be the principle of marketers (Grönroos 1990 p.3), the topic of customer loyalty, which aim to increase the regularity of a customer's behavior and the possibility of cross-selling, has been received more consideration recently (Buttle and Burton 2002 p.217; Dick and Basu 1994 p.99). In this part, the customer loyalty, the different types of loyalty, characteristic of service and service loyalty and the benefits which companies may gain by increasing customer loyalty, plus the related factors which may affect customer loyalty, will be discussed.

2.4.1 The Origin and Meaning of Customer Loyalty

The first approach is that loyalty is a surrogate of retention; in other words, a customer who keep on buying one product or service is a loyal customer. However, the second approach regards customer loyalty as a mental conception with an affective or attitudinal component, which could in fact reflect the essence of retention ( Buttle and Burton 2002 p.217;Ennew and Binks 1996 p.219).

Loyalty is unlike repeat buying behavior; loyalty includes an attitudinal component which should firstly come to mind before repurchasing products or services (Buttle and Burton 2002 p.217; Dick and Basu 1994 p.99). Therefore , loyalty is a state of being faithful and honest to a particular product or service, and proving such faithfulness and honesty. On the other hand ,repeating purchase only represents frequent occurrence of the purchasing behavior which persists in a given period of time.

The meaning of loyalty and repurchase have common characteristics because of the frequency of use increasing when there is a high level of loyalty (Liddy 2000 p.351). Consequently, frequent customer should not be regarded as loyal customer because frequent customer possibly purchases product or service from several different companies. Moreover, customers' purchasing behavior could be changed by different situational factors. Buttle and Burton (2002 p.217) stated a characterization of loyalty from a company's head of customer relationship division: "It's about having had experiences of things that you feel are important.

Putting it in personal terms, you build loyalty to your friends through personal experiences you've shared. Customer loyalty really is like friendship (p. 218)". This argument implied that although many customers may carry on to purchase with particular sellers, they could be unfaithful to the product or service sellers. Hence, by explaining the knowledge of customer loyalty, many attempts has been dedicated to classify the different types of customer loyalty.

Moreover, to understand the differences between customer loyalty to goods and services as well as the typologies and the origins of customer loyalty, the benefits that businesses could obtain from increasing customer loyalty have been suggested by many authors. With the knowledge of both the characteristics of service loyalty and the promising benefits received from increasing customer loyalty as well as the importance of retaining existing customers could be obtained.

2.5 Customer Satisfaction

Generally , most customers do not criticize about their dissatisfying experiences of product or service. However , they could change to another sellers ( Boshoff 1999 p.236). If the seller cannot offer what customer want, there are many other different sellers which provide similar products or services in the market. To sum up, sellers who want to attract or retain customers have to meet customers' needs and satisfaction (Oliver 1998 p.14 ).

Customer satisfaction has become increasingly to seller’s attention during the past decades. Nevertheless, customer satisfaction has been one of the most unquestionable theory of the modern management field (Oliver 1996 p.11-12 ). The idea of customers satisfaction have a clear, reasonable concept. Moreover, it is commonly understood that customer satisfaction could lead to customer loyalty as well as result in higher future profit(Oliver 1996 p.11-12). In many business industries, customer satisfaction has been used as the guiding principle for developing CRM strategies as well as organizing business activities.

However, customer satisfaction should not be an objective by itself. Customer satisfaction should be employed as a method for developing the company's performance (Martensen et al. 2000 p.544-53). A number of empirical researches have revealed a relation between customer satisfaction, customer loyalty, and the economic performance of a company while customer satisfaction has been evaluated in different ways, for example, stock market value, added market value and return on investment (Anderson et al. 1994 p.53-66 ; Eklof et al. 1999 p.514-22).

On the other hand, the topic about the background of customer satisfaction, the relationship between customer satisfaction and customer loyalty as well as customers' post-purchase behavior are presently arguable. To understand the idea of satisfaction undoubtedly and realize the benefits of customer satisfaction, relation between customer satisfaction and related matter are the main significance in this study.

2.5.1 Definition of Satisfaction

Customer satisfaction has developed into one of the main purposes for business since the 1990s. Johnson and Fornell (1991 p.267-86) termed satisfaction as a general assessment of customer’s purchasing and consuming experience. In a few years later, Oliver (1996 p.11-12) provided the recognized definition of satisfaction, which he stated to be linkage with the theoretical and empirical evidence to date: "Satisfaction is the consumer's fulfillment response. It is a judgment that a product or service feature, or the product or service itself, provides (or is providing) a pleasurable level of consumption-relate fulfillment, including levels of under or over-fulfillment( p. 13)".

As a result of the importance of satisfaction, many businesses initiate to assign their job to evaluate how satisfied their customers are and to observe how satisfaction ratings affect customer retention and their profit (Bolton 1998 p.45-65).

2.5.2 Importance of Customer Satisfaction

In 1990s, there was a prevalent knowledge that satisfaction ratings has been in fact a process to reach strategic purposes, for example, customer retention which is understood to have an effect on companies' profits directly (Jones and Sasser 1995 p.88-101). To concentrate on increasing satisfaction is necessary since satisfied customers have more potential to come back the same shop or repurchase the same product or service (Reichheld 1996). Furthermore, customer satisfaction is regarded as condition for customer retention and loyalty, and apparently it is important to understand economic target such as market share, return on investment and profitability(Hackl and Westlund 2000 p.820-25).

However, To establish a relationship between satisfaction ratings and repurchase behavior has been intricate in many businesses, as well as an area which needs to be considered more scrupulously. Oliver (1998 p.14) stated that customers with increasingly satisfying experiences are probably to build up to the positive attitudes and the preference of particular product or service businesses. Narayandas (1998 p.1-4) research presented evidence which has shown that those positive attitudes are vastly valuable for most businesses.In addition , research showing national satisfaction index in both Sweden and the US implied that satisfaction has an important positive impact on the market value and the investing returns (Anderson et al. 1994 p.53-66).

As a result, customer satisfaction need to be regarded as a key factor for businesses in developing to increase customer loyalty and better business performance( Gronholdt et al. 2000 p.509-14). In fact, customer satisfaction has been accepted by many researchers as a customers' general attitude towards organizations and these attitude lead to a significant decision of customers' behavior in the future (Narayandas 1998 p.1-4 ). Moreover , Oliver (1996 p.11-12) referred satisfaction as a crucial process in loyalty development. On the other hand, the relation between satisfaction and other processes are not as simple as we think.

Many researches showed the insufficiency of linkage between customer satisfaction and customer loyalty (Romano 1995 p.13-18; Wood 1998 p.62). Romano (1995 p.13-18) research opposed that even if 65 - 70 percent of seller could meet or even exceed customer’s needs , this may lead to the low impact on attracting customer loyalty. Consequently, satisfaction deems to be a crucial predecessor of loyalty , even if it is insufficient by itself.

Furthermore, both Romano (1995 p.13-18) and Wood (1998 p.62) stated that although customers have satisfaction with the present product or service providing , the businesses have to make more effort on the other related matter in order to promote customer loyalty. The conclusions which are implied from those researchers are that high level of customer satisfaction may not lead to customer loyalty and may not be the most important condition in developing customer loyalty.

2.5.3 Problems about Measuring Satisfaction

Many practitioners used to rely on the consequences of customer satisfaction surveys (Dahlsten 2003 p.73-77). Nevertheless, the method which is a measurement of something should not take a preference over what is measured and what is discovered( Dahlsten 2003 p.73-77). The validity of the methods employed for discovering what is important to customers is needed to take into account more than the reliability and efficiency of the method applied in conducting market research.

To go beyond the collective customer satisfaction numbers that has been vastly gathered by most people, the most important issue is to develop a learning relationship between customers and sellers. Although the previous saying that "what gets measured gets done" is not entirely correct, the means of evaluating customer satisfaction will undeniably have an effect on how the customer satisfaction principle is employed by organizations. In fact, businesses need to observe customers’ response to particular products and services. Nevertheless, emphasizing on its solely may fail to address long-term customer expectations.

To sum up, the value of the customer satisfaction knowledge being acquired relies on how it is employed and valued within organization. Two companies in the same business could have an access to the same important information; but these information is employed in different method. This situation would lead to different outcomes - one company achieves the competitive advantage while another does not (Dahlsten 2003 p.73-77).Consequently, the procedure of conducting a customer satisfaction survey should be taken into consideration critically.

Satisfied customers may repurchase and come back repeatedly . On the other hand, it is not sufficient to emphasize only on satisfied customers. Since businesses wishing to be successful in the long term, they are required to satisfy customers at a profit. Many researches stated that satisfaction itself is insufficient to establish loyalty (Fornell 1992 p.6-18; Oliva et al. 1992 p.83-95), even if it has been commonly approved that these two factors are closely connected.

Reichheld (1993 p.64-73) argued that customer satisfaction is not a surrogate for customer loyalty; that is, rising in customer satisfaction figure may not necessarily result in developing customer loyalty to product , service, or business. To obtain further approaching on the relationships between customer satisfaction and relevant factors, this study includes some other factors to illustrate the entire picture of customer satisfaction and reveal its effects on businesses' operational performance.

2.5.4 Advantages of Improving Customer Loyalty

By improving customer loyalty and retaining customer may result in either up-selling or making more profits for businesses (Edvardsson et al. 2000 p.917-27). The advantages of building customer loyalty may result from retaining existing customers and attracting new customers. These advantages lead to increased sales and profitability of businesses. Firstly , loyal customers are likely to rely on the particular products or service providers for a long period of time, and are probably to cross-purchase(Oliver 1996 p.11-12).

Secondly, most researches broadly supports the suggestion that to attract a new customer is much more expensive than retaining an existing one (Blattberg and Deighton1996 p.136-44; Vandermerwe 1996 p.770-82). Moreover, loyal customers express their loyalty by spending money on high-valued brands of products and services providers and by giving positive word-of-mouth (Reichheld 1996). Therefore, the profitability of the businesses may be affected by those behaviors. The principle of organizational climate popularized by Schneider and Bartlett (1968 p.323-33) may also help to understand the importance of employees behaviors on customer loyalty from the internal viewpoint.

2.5.5 Organizational Climate and Its Implications

Organizational climate is defined as an ongoing collective assessment based on the aspects of how present developments affect members in terms of their needs and expectations (Schneider 1985 p.573). Even though an employee's perception and behavior are closely related (Schneider and Bowen 1985 p.573), it needs more effort and time to build a customer loyalty and to make a company’s internal procedures actually approachable to customers’ expectations, market share, opportunities, and profitability.

Consequently, if employees can work within the same company for long periods of time, they will better improve long-term personal relationships with customers. While customers will be more fulfilled as they would obtain better service. Therefore, by developing customer satisfaction may lead to improve employee satisfaction (Ennew and Binks 1996 p.219-30) also stated that internal marketing activities, which could satisfy the internal customers (employees) of a company, are the significant factor in developing this self-reinforcing relationship between employees in the same company.

In fact, an effective internal marketing strategy could help to build and maintain a customer-oriented service climate in the company through attracting employees' perceptions of their roles in building long-term relationships with customers (Bowen and Schneider 1983; Grönroos 1990 p.3-11; Schneider 1985 p.573-611). Nonetheless, service climate data in a particular company can be gathered from the employees in that company; the recent study takes an out-side-in perspective which does not measure the influence of organizational climate.

2.5.6 Factors Affecting Customer Loyalty

To clarify customer loyalty, there are several factors which influence customers' decisions of being loyal to a particular product and service providers. These factors will be specified in this part. Fredericks and Salter (1995p.29-33) explained the topic of customer loyalty and proposed that customer loyalty has been determined by customers' perceptions of value presented by the product and service provider. Their proposition stated that by presenting valuable products and services would establish customer loyalty.

Five major part o f the customer value perceptions which are price, product quality, service quality, innovation and image has been specified in their model structure (Fredericks and Salter 1995 p.29-33). The model showed that the individual customer’s expectations and personality including the nature of business environment have an effect on customers’ value perception. However, Geller (1997 p.58-62) accepted that there are 15 elements which are essential to establish customer loyalty.

The quality and value of the product and service , the impression or image portrayed, the dynamism of the organization, communication and achieving the unexpected for customers have been the most important elements. Kandampully (1998 p.431-43), customers would remain being loyal if the value perception of products and services was comparatively better than that of competitors' presenting.

2.6. Relationship between Customer Satisfaction and Customer Loyalty

Customer satisfaction has been the issue of attention in the past ten years. Nonetheless, the old method in evaluating customer satisfaction have not been sufficient to ascertain the important of satisfaction because of its narrow scope (Oliver 1980 p.209-32). The scale of customer’s opinion was too wide , most measuring implements ,therefore, were not appropriate to be applied in this case.(Abdullah et al. 2000 p.826-29).

Furthermore, by evaluating customer satisfaction the range of perceptions could not be measured by traditional methods because these methods did not provide a broad way to evaluate the perceptions which may have an effect on customer's subsequent behavior(Oliver 1998 p.14). Consequently, the relationship between customer satisfaction and its impact on increasing loyal customer and companies’ operational performance has been acknowledged by business studies (Dick and Basu 1994 p.99-113).

The reviewed literature proposed that customer loyalty is an attitudinal concept reflecting value, trust, and commitment within the company-customer relationship. Satisfaction was thought to be one of the antecedents of customer loyalty (Buttle and Burton 2002 p.217-27). Nonetheless, customers with satisfaction may not necessarily have a loyalty to a particular company (Oliva et al. 1992 p.83-95). Stratigos (1999p.74-76) argued that "loyal customers will go to the mat for their solution of choice (p. 74)?.

This statement implied that the loyal customers could make a positive word of mouth which would refer to their preferred companies. Strategies (1999 p.74-76) also stated that there might be an emotional relationship connected between company and its loyal customers. Following to the individual-level model of customer satisfaction proposed by Oliver (1980 p.209-32), there are many researches have been discussed and observed about a strong relationship between customer satisfaction and customer loyalty (Anderson and Sullivan 1993 p.125-43).

Other researchers concluded that a primary factor leading to determine loyalty was a satisfaction. (Oliver and Linda 1981 p.88-93). These researches aimed to support Reichheld's (1993p.64-73) argument that even though there is a close connection between customer satisfaction and customer loyalty , the customer satisfaction is not a surrogate for customer loyalty. To sum up, the companies need to satisfy their customers beforehand in order to establish customer loyalty to product, service and company.

The satisfaction-profit chain

Figure 3.1 The satisfaction-profit chain

Source:Exigene W.Anderson and Vikas Mittal, “Stengthening the satisfaction-profit chain,? Journal of Service Research 3,no 2 (November 2000):107.

Chapter 3: Methodology

3.1 Introduction

Generally, there is a difficulty in deciding the appropriate approach for principles researches and methods. Sekaran (2003 p. 64) establishes that “A good literature survey provides the foundation for developing a comprehensive theoretical framework from which hypotheses can be developed for testing.? .The literature review is, debatably, the best source for identifying significant variables that are probable to influence all factor in hand. The review of prior literature existing in Chapter 2 provides the main topic of this research, which concentrates largely on the managing customer relationships strategies .

By designing and examining methodology there have been many ways to achieve. However, by achieving the goal , there are many different means not just one to conduct since individual research and its objective is needed the different methods. In addition , determining the most appropriate methodology for research must rely on the accessibility of resources. This research contains research design, data collection method, questionnaire design, and the sample design.

The research purpose aims at obtaining the prediction , explanation and understanding, and control of phenomenon. Bagozzi (1994 p 222). Botha at el (2005 p.313) state that “Research design framework or blue print for conducting a marketing research. It indicates the details of the measurement required in collecting information in order to structure and solve research problems?.

This research focuses on the relationship between customer relationship management and strategies of company which are employed relating to customer satisfaction in the case of Catering UK company in United Kingdom. In this chapter, justification and discussion of the research and its methodology undertaken will be provided.

3.2 Research design

Hussey and Hussey (1997 p.51-58) suggested that to plan the procedure for conducting research the research design is provided so as to obtain appropriate result. Also , the research design can be applied for data collection and analysis planning. Moreover, research design could save researchers from wasting their time on establishing research direction as well as help researchers to accomplish the research purpose directly.

According to the research process, to understand , observe and reach the aims the descriptive structure was applied to the relationship between customer satisfaction and customer loyalty and the factor that is employed to improve the effectiveness by companies because the descriptive structure is functional by explaining the problem from initially broad to narrow down as the research progresses. (Saunders et al., 2003 p.5).

3.3 Data collection

The data and information collected in this research will be divided into two, primary data and secondary data in order to achieve the objectives of this research effectively.

3.3.1 Primary data

Remenyi et al.(2005 p.141-142) stated that the new data could be created by primary data while secondary data is not provided to respond to research questions. To obtain the fact relating to the topic of research it can be found on the primary data. The primary data can be found by many processes ,for example, an interview , survey and observation which is conducted by telephone , post , online questionnaire or distributed questionnaire ( Easterby-Smith et al.,2004 p.130-135) and consist of the material that you have gathered yourself ( Jankowicz 2005 p.59) The data and information collected in this research using primary data methods is a questionnaire which is the means to collect the quantitative data.

By determining to apply a method of questionnaire there are many factors that influence the researcher ; low admin cost , speedy return , simple way in collecting data.

3.3.2 Secondary data

Saunders et al. (2003 p.189), Veal (1997 p.147) stated that secondary data has been regarded as the information that has already been presented and collected for some other objectives. There have been several advantages of secondary data. It is easily accessible, relatively inexpensive and quickly obtained since it has already been existed. In this research, the secondary data was collected from many resources such as the academic textbooks, news, the internet for the latest news about customer service management, the company annual reports, and journals that are related to the research topic ( Jankowicz 2005 p.59).

However, the secondary data in form of document accessibility may be limited with the specific aims of the study (Veal, 2006 p.68). In addition, it cannot provide all the answers and might not be up-to-date the current situation or may lack in accuracy .To overcome these, this research will use both primary and secondary data with the data collection process. However, the disadvantages of secondary data are units of measurement, class definitions and publication currency etc.(Remenyi et al., 2005 p.141-142).

3.4 Questionnaire design

Questionnaire is defined as “a set of questions designed to generate the data necessary to accomplish the objectives of the research project; it is a formalized schedule for collecting information from respondents? (McDaniel and Gates, 2006). As questionnaire plays the important role in the data collection process, it is used to be one of the essential tools for gathering data in this research and then go through the process of finding data.

Since the purpose of this research in examining the strategies which are employed by restaurant to improve the effectiveness of customer relationship management , the questionnaire is applied to this case. The questionnaire is used to obtain data and information of customer satisfaction and related factor. The question also focused on the staff satisfaction of company’s training and policy.

3.4.1 Questionnaire structure

The questionnaire consists of two sections. The first part of six questions included general introductory questions to filter the interviewees by asking general in order to reduce the respondents' uncertainty and increase their confidence. The second part of three questions relates to customer target of restaurant. The second part of four question of first part asks about customer satisfaction regarding to food and service. Questions were also included to allow the respondents to express their likelihood of recommending the restaurant to their friends and relatives. The measurement is implemented using a five point Likert scale with scores of 1 "strong disagree" to 5 "strong agree" for each of the answer related to . this scale along with semantic differential are the most important scaling methods for satisfaction measurement because they are effective in measuring consumer attitudes and are easy to construct and manage) and give the highest reliability (Westbrook and Oliver, 1980 p.94).

The second section was designed to measure directly and subjectively the training and motivation of employees in companies.

In this research, there are 2 versions of questionnaire, which are English and Thai version. As these questionnaires were distributed in UK, Thai version was conducted in order to clearly understand for employees and Thai customer (see Appendix1 -2). Conducting Thai version is restriction of missing communication.

Questionnaire for Catering group’s customers

Part 1

Question 1-5 ask about the demography and personal data, for example, gender, age of the respondent (i.e. customer), marital status , working status ,income per annum and basically information. such as how customer find or know the restaurant.


1. Gender: Male or Female

2. Age.

3. Marital status

4. Working status

The above four questions mentioned on gender, age ,marital and working status .The groups will be kept control. Each age group will also be divided into balance the methodology analysis. The respondent with age group and gender that do not match with the require or has already exceeded the questionnaires will be avoided.

5. Income per annum

This question consider in term of salary of respondent.


- How did you find this restaurant

6. This question consider in term of the way that customer receive restaurant’s data

Part 2

7. asked about


-How long have you been at Thai Square restaurant

8. asked about


-How many times do you eat at Thai Square restaurant per month

9. asked about


-How you rank yourself as a customer of Thai Square restaurant



3.5 The sample design

3.5.1 Define the target population

To identify the aimed group is a significant part of research because the wrong selection of respondents results in an ineffective outcome or misleading at worst (Malhotra and Birks, 2006). In this case, the target population chosen was “Thai square restaurant customer?

This research is about what are the strategies employed by restaurant ,which is thai square restaurant to improve its effectiveness. Therefore , variable customers of restaurant are target group of this research. As the questionnaire was set up , the set of questionnaire was sent out to 100 key customers of restuarant. These set of questionnaire was distributed to particularly target group in order to get the relevant data .

Collis and Hussey (2003p.187) indicated that by conducting research the grouping of people from populations is the sample. For the research questions about motivation of staff in the second part , it was conducted in Thai square restaurant by sending out the question to 20 staffs.

3.5.2 Select a sampling technique

There are two types of sampling technique; probability sampling and non-probability sampling .Zikmund (2000 p. 350) stated that the probability sampling is a technique which samples are selected by chance. It includes simple random sampling, systematic sampling, stratified sampling and cluster sampling. Non-probability sampling relies on the decision of the researcher. As a result ,non-probability sampling was chose as being the most suitable method for this research, again because of time and budget restraints, and rather than allowing generalization to become critical (Sekaran, 2003). Non-probability sampling is compounded by convenience sampling, judgmental sampling and quota sampling (Wrenn at el 2006 p.184) .

Furthermore, this research project express non-probability sampling with convenience sampling technique that select the closest and most convenient peoples to do as respondents. Therefore, it is a cheap and easiest process to put on examples and object to represent the total population by using questionnaire (Saunders et al. 2003 p.327).

Therefore, in this research, researcher has specific chosen the respondents at 100 people both male and female who live in London and over 15 year-old. . The questionnaires will be distributed to customer who walk into the restaurant .It is stated that proper size of research, which use to solve any problems is 100 copies in generally. . It can help the researcher to receive the validity data and reliability data from the right feedback. Moreover, it usually help to answer the questions of what strategies are employed by Thai restaurant in London to manage customer relationships .

3.6 Data analysis

This research contains a quantitative data with statistical analysis. To analyze the questionnaires survey the Microsoft office excel (Excel) will be used in this process. This program can normally be used to code data from the questionnaires. Excel is a numerical data file that contains a worksheet that is set a variables for analyzing the collected data. Excel provides more effectiveness of the data analysis. Moreover, it is a multifunctional device for data analyzing.

Therefore, descriptive statistics is the means of data analyzing which may be indicated as means score , frequencies , percentage. Correlation is calculated to identify relationship between two groups .(Foster 1998 p.24-26) This research also used Statistical Package for Social Science (SPSS) Version 14.0 to analyze data. This program also can analyze the completed questionnaires into the easiest interpretable format. Descriptive statistics consists of the frequency and percentage in order to describe each variable that is associated with respondent data. (Foster 1998 p.24-26)

Many types of pie charts , tables, bar charts contained data is also used in this research. From the collected data and questionnaire analyzing , researcher can make a conclusion in order to respond to the research question as well as reach the research purposes and objectives. The researcher is acknowledged that finding the answers of the research questions while analyzing the data is an important process. To analyze data is the outcome to achieve this research. Moreover, the significant factors are the quality of data and the interpretations.

3.7 Validity and Reliability

Validate the sample

Sample validation focuses on justify the error sampling frame by screening the respondents in the data collection phrase (Malhotra and Birks, 2006). In order to avoid the problem of elemental errors, it is considered prudent to ask the respondents some screening questions before they are invited to participate. The respondents should have at least some basic knowledge or past experience of eating Thai square restaurant in order to make their opinions worthwhile.

3.8 Summary

The purpose of the chapter is to explain the research methodology, to discuss how the study is conducted, the procedures used to gather and organize the data and the methods that are used to analyze these data. Relationships among the proposed indications of research are presented.

The research process entails implementation and examination of the result as well as development of theories. The central research of this study concentrate on the theoretical concept of managing customer relationship strategies and its performance, and improve company service in term of customer satisfaction . In addition, the research is to examine the application of strategies in the company, particularly, Catering company (UK). To sum up, this research emphasizes the current situation of company, strategies implementation, and the life after the implementation.

Chapter 4

Data Analysis

Statement of the design analysis

This research will employ the possession of primary data with the use of a structured questionnaire. Some of the questionnaire survey techniques include personal administration, by mail to respondents(regular customer), or electronic distribution. The sample size of this research will cover ages in four groups which are group of under20 year, 21-30 year, 31-40 year,41-50year,51-60year, and 60 years up. The questionnaire will be printing out at the rate 200 copies.

The results will be analyzed by using Microsoft office excel program (Excel) to achieve the reliability and validity of the results. When the data has all been collected, SPSS is the computer program, which will be used to calculate collected data. The data analysis part can be divided into three sections which are demographic factors, consumer behaviour and Satisfaction with restaurant. Personally administered questionnaires are considered to be the best method for conducting. This research, since it has the advantage of efficiency in that the respondents come to the interviewer rather than the interviewer having to find the respondents.

The survey will take place around restaurant (Thai square) near Aldgate station. The plan is to randomly capture customers outside, around 1 or 2 meters away from the entrance to restaurant, the selection will not restrict in any way customers coming in or out of the restaurant. After asking if they are willing to take part in the survey, the questionnaire will hand to the respondents to complete on their own without any interference from the researcher.

Section 1

Questionnaire Analysis for Employee Responses

The figure below shows the level of overall satisfaction from employee to company.

Customer service department has the high value of mean (see appendix 3), which describe that employees in this restaurant satisfied most with the management system implemented in company. The functions provided in Customer relationship area are relevant to strategic management such as motivate staff ,training staff ,customer service lead to customer satisfaction and customer loyalty. These data collected from questionnaires can use to analyze the relationship between customers and the managing customer relationships strategies in restaurant.








Strongly agree








Strongly disagree



you think the induction training given by restaurant is useful.







You understand your tasks, duties and responsibilities.







you understand the objectives of restaurant and how to achieve these objectives?







you can adapt knowledge and skill obtaining from job training to your performance?






Table 4.1 Percentage of achievement from employee’s response.

Figure 4.1 Report of percentage overall achievement from employee response

Q1.1 : you think the induction training given by restaurant is useful?

According to this question ,the number of staffs who understand induction training that restaurant provides for the new staff the results illustrated that there are 45% of staffs who strongly agree while the number of staffs who agree are 45%. The number of staffs who understand induction training are neutral which are 10%. On the other hand, no result for disagree and strongly disagree. It can be concluded all staff understand the basic beginning process for working.

Q1.2 : you understand your tasks , duties and responsibilities?

According to the chart, there are 8 staffs who strongly agree substituted by 40% and 9 staffs who agree substituted by 45% respectively understand their tasks , duties and responsibilities. While there are 2 staffs who are neutral substituted by 10% and only 1 staff who disagrees.

Therefore ,it is supposed that most staff understand their tasks, duties , responsibilities in order to do their job and increase their performance in satisfying and treating customer at all level.

Q1.3 : you understand objectives of restaurant and how to achieve these objectives?

As the data shown above, there are 6 staffs , who strongly agree , substituted by 30% understand objectives of restaurant and can these objectives and the number of staffs who agree are 4 people substituted by 40% understand objectives of restaurant and know how reach these objectives. Meanwhile , The number of staffs ,who are neutral, are 8 people substituted by 40% and only 2 staffs substituted by 10% disagree.

As a result, it is assumed that most of staff (70%) can achieve company’s aims and objectives. This will lead to good teamwork and success of restaurant.

Q1.4 : you can adapt knowledge and skill obtaining from job training to your performance?

This stage is a practice stage that staff have to include all knowledge in training stage so as to achieve points.

Following to data, there are 5 staffs, who strongly agree, substituted by 25% can adapt knowledge obtaining from training program. The number of 6 staffs, who agree, substituted by 30 can adapt knowledge from training program to their job. There are 7 people, who are neutral , substituted by 35% can adapt knowledge from training to their performance. However, 2 staffs disagree which the number can be substituted by 10% may adapt knowledge to their job.

Thus , it can be concluded that restaurant assures that their staff performance is strongly effective to achieve their job in satisfying customer as a result of the training program given by restaurant

Overall employee response

Figure 4.1 illustrates the level of overall achievement from employee response in restaurant which is twenty employees responses. Most employees understand and recognize objectives and strategies of companies and also know how to achieve those points. Moreover, they can adapt and improve all training program to their performance and job at high level which can be seen from questionnaire result. To sum up, it seems that the employees satisfy with the strategies , objectives and policy in customer relation management program installed by restaurant as well as they can provide good customer service to customer at the present and in the future.

After staff assessment measuring , the next stage is the process of obtaining customer satisfaction with food and service in order to understand that how well the restaurant can satisfy customer and achieve customer loyalty.

Section 2

Part 1

Demographic profile of respondents

Demographics profile construct was developed by applying the suggestion of Martinez and de Chernatony (2004) in that the general person’s information were gender, age , Marital Status, Working Status, month income and how customer know the restaurant .This is a basic factor in part 1 on this research project, 100 questionnaires were distributed to both male and female respondents who walk into restaurant. As the research uses the convenience sampling method to collect data, the demographic characteristics of all respondents are shown as follow:



Number of respondents (Frequency)











Table 4.2: Statistic data of gender

Figure 4.2: Report of gender

According to, the respondents of this research consist of 100 people which 47.50 % are male and 52.50% are female who have been eating at Thai square restaurant. From the percentage implies that there is no stability between male and female customer that as researcher interview.

Figure 4.3 illustrates that the age level of the respondents of this research. The highest percentage of the respondents is 50 people (50%) between 21-30 years old from the total respondents. The second group is age between 31-40 years old that have percentage at 28% , the third group is age between 41-50 year old substituted by 12% , the forth group is age under or lower 20 years old as 5 people substituted by 5% and the fifth group is age between 51-60 years old as 4 people substituted by 4 %. The last group is age more than or over 60 years old just only 1 people substituted by 1% respectively.

Table 4.4: Statistic data of marital status

Figure 4.4: Report of marital status

According to figure 4.4 the pie chart shows that 78 people (78%) of the total respondents are single and the following group is married which are 20 people substituted by 20% whereas there are only 2 people of respondents substituted by 2% got divorced

Nevertheless, this part might not help researcher to achieve project aims. From the questionnaire’s results, it just showed general information of status of respondents which guide line to the process in collecting data and information of customer in order to make it more convenient in considering questionnaire factor in the next part and identify the customer target clearly.

Table 4.5: Statistic data of working status

Figure 4.5: Report of working’s status

Figure 4.5 reports that the majority of total respondents as 60 people substituted by 60 % is full time workers and 18 % of customers are part time workers. Whereas 12 people substituted by 12 % of respondents are not working. However, there are respondents in retired group and excluding group are both at 5 %

Figure 4.6: Report of income (per month)

Figure 4.6 illustrates that the respondents have monthly income under $1,500 substituted by 30 %. The rest have monthly income between$1,500 – $2,000 substituted by 23%, between $2,000-$2,500 substituted by 18%, between $2,501 -$ 3,000 substituted by 9%, more than $5,500 substituted by 6%, between $3,001-$3,500 substituted by 6%, between $3,501-$4,000 substituted by 3%. Both between $4,001-$4,500 and between $4,501-$5,000 is at the same rate which is substituted by 2.50% and the smallest group between $5,001-$5,500 is 1% .

This chart can indicate the financial status of most respondents. It demonstrated the respondents’ capability in consuming and spending. This factor will help company to set promotion related to income , age , status and manage strategies which is suit best for customer to satisfy each group of customer such as set menu promotion for dinner time focus on the group of full time workers at the age around 21-30 and 31- 40 who have monthly income more than 1,500 or credit crunch lunch menu which is express menu for those who have monthly income less than 1500 and for those who are unemployed and student because this set need to be cheaper than normal menu especially for present economic situation.

By doing this , the restaurant needs to acknowledge to their staff for preparing and being ready for its strategies and satisfying customer. For example , restaurant needs to train and increase their staff to work in rush hour(lunch time) in order to increase their performances such as speed and teamwork as well as reduce the unnecessary process that could save time and money.

F) Receive information

Receive information

Number of respondents (Frequency)


Word of mouth



Search engine



Company web-site









Direct mail






Table 4.7: Statistic data of receive information

Figure 4.7: Report of receive information

This is a basic method to receive data base so that know how customer get information from .Moreover, this is process of evaluation that how respondents get information through media in order to relate how restaurant prepare their strategies to gain new customer.

The pie chart above shows the variety sources that customers can find out restaurant information. From the questionnaire survey result, the most percentage of respondent obtains data from search engine as 58% , customers found restaurant via Word of mouth, and company web-site with 26% and 9%. The rest is from advertisement , exhibition and direct mail respectively. Since the company has many branches in UK and promote restaurant in the authentic Thai style through web-site. Customers can easily reach company’s webpage on internet by search engine.

Customers often check the overall restaurant quality of food and service from the reviews that made by the customers who have been to restaurant before making a decision. However, word of mouth is also the important source in receiving restaurant information because when customer is satisfied with our food and service , they is likely to bring their friends , families to restaurant in the future. Therefore, the company should improve this area in order to increase new customer and establish customer loyalty. Moreover ,the company would be better to improve availability of company’s direct mail in order to support further development in the future .

Part 2.

G) How long have you been a customer at Thai Square restaurant ?

How long have you been a customer at Thai Square restaurant?

Number of respondents (Frequency)


Below 6 months



6-12 months



13-24 months



25-36 months



Over 36 months






Table 4.8: Statistic data of how long have you been a customer at Thai Square restaurant

Figure 4.8: Report of how long have you been a customer at Thai Square restaurant?

As figure 4.7 shows the total amount of the respondents who have been a customer at Thai square restaurant, the majority of respondents have been a customer at Thai square restaurant for less than 6 months that is 44 people substituted by 44 %. The second group of 19 people substituted by 19% have been customer at Thai square restaurant between 6-12 months. The rest are customers who have been a customer between 13-24 months substituted by 17% , between 25-36 months substituted by 13% respectively and the lowest in group is 7% which have been a customer at Thai square over 36 month.

According to the questionnaire, it is mentioned that this question is one of the factors which affect to customer satisfaction and customer loyalty leading to the question of how to manage customer relationship. Due to the number of respondents who have been customers less than 6 months , it indicates that Thai square acquired new customer and those respondents are likely to be long-time customers. Meanwhile , the group of respondents who have been customers at Thai square restaurant more than six months indicates that the majority customers of Thai square are long- term customers.

As a result, this question evaluates the relationship between Thai square restaurant and their customers. That is most customers of Thai square have long-term relationship with the company.

H) How many times you eat at Thai Square restaurant ?

How many time you eat at Thai Square restaurant ?

Number of respondents (Frequency)

Table 4.9: statistic data of how many time you eat at Thai Square restaurant

Figure 4.9: Report of how many time you eat at Thai Square restaurant ?

The figure above shows how many time per month that customer come to eat at Thai square restaurant .This figure illustrates that there are 76 % of respondents who eat at restaurant more than 4 times per month. There are 17% of respondents who eat 4 times per month. The number of respondents substituted by 4% eats 3 times a month and there are 2% of respondents who eats 2 times a month. Only 1% of respondents who eats 1 time a month.

Therefore , it is supposed that most respondents are frequent customer and there is possibility that some customers are regular customers who work or live nearby restaurant because of the number of respondents who eats at restaurant more than 4 times a month.

I) How you rank yourself as a customer of Thai Square

How you rank yourself as a customer of Thai Square

Table 4.10: statistic data of how you rank yourself as a customer of Thai Square

Figure 4.10: Report of how you rank yourself as a customer of Thai Square

This figure show that there are 51% of respondents who rank themselves as regular customer. The second group are occasional customers which number are 30% . The third group is convenient customers which number are 16%. The smallest group is loyalty customers which number are only 3%.

This figure shows the degree of loyalty which customers have towards the Thai square. From the data shown above , it can be concluded that most customers of Thai square are regular customer not loyalty customer. While occasional customers are likely to come to Thai square only as on the special occasion.

Mean Score Analysis

Mean score analysis use in order to measure negative and positive opinion of respondent (customer). There are five levels for indicative of the scores in the questionnaire that will be rated as the following

Level 5 means strong agree

Level 4 means agree

Level 3 means neural

Level 2 means disagree

Level 1 means strong disagree

Therefore, the average scores will be showed mean scores by the range below.

Level of Agreement

Level of Mean Score ()

Result Analysis

Strongly Agree

(Very satisfy)

4.21- 5.00



3.41 – 4.20


2.61 – 3.40



1.81 – 2.60

Strongly Disagree

(Very dissatisfy)

1.00 – 1.80

Accept = Mean Score

is higher than >3.00

Reject = Mean Score

is lower than <3.00

Table 4.11: Mean Score Analysis

There are four mains hypotheses that consist of sixteen hypotheses questions inside were generated to ensure that all the research findings were able to complete the objectives of this dissertation. These hypotheses were tested by using the mean score and frequency analysis from Microsoft Excel program with SPSS program (See Appendix 3).

Part 3

Food quality analysis (Questions 1.1 to 1.5)

According to this section, the researcher would like to identify the respondents’ satisfaction regarding to cleanliness, ingredients, health food, decoration and variety of food that will lead to research objective.

* > 3.00 = accept, < 3.00 = reject

Table 4.12: Percentage and mean score level on food quality’s factors

Figure 4.11: Report of respondents’ agreement on food quality

Food quality

Cleanliness (Question 1.1)

According to the questionnaire results , it illustrates that there are 79% of respondents who agree with the cleanliness. There are 17% of respondents who are neutral. Meanwhile , the number of respondents who disagree are 4%. The mean score of this factor is 4.02 that is supposed to be very good level (over 4.00). This implies that standard of food quality in term of cleanliness passes. However, the cleanliness factors may affect customers’ satisfaction which can be shown by the 1/% of respondents who disagree.


According to questionnaire result , it shows that there are 64 % of respondents who agree with the ingredient of food. Meanwhile , 31% of respondents are neutral and 5% of respondents disagree. The mean score level is at 3.82, it is implied that most customers satisfy with the food ingredients.

Healthy food

As the graph shown above , there are 31% of respondents who agree with healthy food. 60% of respondents are neutral. The number of respondents who disagree are 9%.The mean score level are at 3.29 which is implied that most customers like healthy food. This healthy food may fulfill customers’ needs.


The results showed that 64% of respondents agree with decoration of food. There are 33% of respondents who are neutral. Whereas , 4% of respondents disagree. The mean score level are at 3.85 which is concluded that most customers satisfy with food decoration. Therefore ,this is one of the factors which affect customers’ satisfaction.

Variety of food

According to the questionnaire result , there are 24% of respondents who agree. 29% of respondents are neutral. Meanwhile, there are 35% who disagree. The mean score level are at 2.65 which is not so good. This is implied that most customers are not happy with the variety of food. This will lead to customers’ dissatisfaction.

Service quality analysis ( question 2.1 -2.4)

* > 3.00 = accept, < 3.00 = reject

Table 4.13: Percentage and mean score level on service’s factor

Figure 4.12: Report of respondents’ agreement on service

Service Quality

Staff friendliness

According to the questionnaire result , there are 69% of respondents who agree with staff friendliness. 17% of respondents are neutral whereas 3% of respondents disagree. The mean score level is at 4.01 which means most customers satisfy with the friendliness of staff and this is supposed to be an important issue which could affect customers’ satisfaction.

Staff politeness

From the graph shown above , 63% of respondents agree with the politeness of staff as well as there are 33% of respondents who are neutral. 4% of respondents disagree. The mean score level is at 3.75 which indicates that the staff politeness is one of the factors that can lead to customers’ satisfaction. Overall most customers satisfy with politeness of staff.

Service speed

As the graph shown 53% of respondents agree with service speed and 40% of respondents are neutral. Meanwhile , 7% of respondents disagree. The mean score level is at 3.48 which can be implied that most customers satisfy with service speed. Only few customers dissatisfy.


According to the questionnaire result, 31% of respondents agree with staff attentiveness. 60% of respondents are neutral whereas 9% of respondents disagree. The mean score level is at 3.29 which shows the customers’ satisfaction with staff attentiveness.

Figure 4.13: Report of respondents’ agreement on location


Design and decoration

From the questionnaire result , 38% of respondents are agree with design and decoration of restaurant. 52% of respondents are neutral. There are 10% of respondents who disagree. The mean score level is at 3.31. This indicated that some customers satisfy with design and decoration of restaurant. Due to most furniture and painting imported from Thailand the restaurant was decorated as authentic Thai style.


According to the questionnaire result, 39% of respondents agree with the restaurant ambience. 49% of respondents are neutral. However, there are 12% of respondents who disagree. The mean score level is at 3.58 which is assumed that the ambience is one of the factors that may increase customer satisfaction.


As the graph shown above , 25% of respondents agree with the restaurant branches which situated around London , especially Thai square Minories branch. 54% of respondents are neutral. Meanwhile 21% of respondents disagree. The mean score level is at 3.05 which is implied that most branches of restaurant are situated in central London and some people living outside London cannot reach to Thai square as often as people living in the city.


According to the graph shown above , 23% of respondents agree with the parking. 52% of respondents are neutral. Meanwhile , 25% of respondents disagree. The mean score level is at 2.98 which indicate that most customers do not satisfy with parking as there are customers who travel by car and they need parking. The parking is one of the factors which affect customers’ satisfaction.

* > 3.00 = accept, < 3.00 = reject

Table 4.15: Percentage and mean score level on price’s factor

Figure 4.14: Report of respondents’ agreement on price


According to questionnaire result , 54% of respondents agree with Thai square promotion. 41% of respondents are neutral. However, 5% of respondent disagree. The mean score level is at 3.53 which means that Thai square promotion help to increase customers’ satisfaction since Thai square do the promotion in order to meet customers’ need at all level especially the credit crunch situation that many people do not spend money much. Moreover , all the promotion varies in price and customers can choose what they want. Therefore, the promotion can be an important factor that establish customers’ satisfaction.

Value for money

From the graph shown above , 44% of respondents agree with the value for the money and 47% of respondents are neutral. 9% of respondents disagree. The mean score level is 3.39 which is implied that most customers satisfy with the price of food , quality of food along with service. When customers pay the money , they must evaluate what did they pay for and it is worth to pay. If they satisfy with everything , they will pay with the willingness and happiness.

Service charge

Following to the questionnaire result , 35% of respondents agree with service charge and 59% of respondents are neutral. However , there are only 3% of respondents who disagree. The mean score level is at 3.43 which shows that most customers satisfy with service because staffs are trained to respond the customers’ needs and increase customers’ satisfaction. As a result, most customers are willing to pay service charge. However, there are some customers thought that they were forced to pay service charge. It can be concluded that the service charge is one of factors that affects customers’ satisfaction.

Over all

Overall satisfaction with Thai square

The figure below shows the level of overall satisfaction from customer to company. Feed back has the high value of mean score level(see appendix IV), which means that customer in Thai square restaurant satisfied most with the customer relationship system in term of customer service. However, not only customer service but also food quality , location and price factor affect customer satisfaction.

The overall satisfaction indicates that 39% of respondents agree with it and 18% of respondents are neutral. However , 3 % of respondents disagree. It is implied that customers have a good relationship with Thai square regarding to the overall satisfaction which is resulted from the food quality , the service quality , the location as well as price. This customers’ satisfaction can retain existing customers who are loyal customer and for those who are not loyal customers. This satisfaction will lead to customer loyalty in the near future. Since most customers of Thai square being regular customer and having long relationship has good overall satisfaction with companies. This may lead them to be loyal customer.

Chapter 5


5.1 Introduction

In this chapter will point out the objectives and purposes of this research. Each aims of research will be concluded by giving answer. In addition , the literature reviews and related factors which increase the effectiveness of employees will be considered. There will be the like between secondary data and primary data.

The questionnaire was created to achieve the purpose of this research by collecting and analyzing the data which obtained from staff in thai square restaurant and the customers who walk into thai square restaurant so as to determine and improve strategies which have the best effectiveness and appropriation to restaurant.

The research purpose is observing and determining the strategies employed by Thai square restaurant to manage customer relationship : the case study of Thai square restaurant , Catering UK company.

From the research purpose , it can be demonstrated that :

1. To evaluate the customer satisfaction which may lead to customer loyalty

2. To explain the relationship between motivation of staff and staff training as well as the effectiveness to improve customer service in order to satisfy customer

3. To establish the appropriate strategies for restaurants in terms of customer relationship management.

4. To give an advice for restaurant , staffs on how to improve their potential in providing so as to satisfy customer.

5.2. Summary of questionnaire results

5.2.1 Evaluating the customer satisfaction which may lead to customer loyalty

This purpose was achieved by the questions in the section 2 of questionnaire. The important outcome was shown that overall satisfaction of respondents is good related to food and service quality , location and price.

As most customers have been in restaurant for more than 6 months and they usually eat at Thai square restaurant more than 4 times a month. Moreover, most of them are regular customer. It can be concluded that Thai square have established customer satisfaction and most customers satisfy with Thai square according to the mean score of overall satisfaction.

To begin with the food quality , most respondents satisfy with the cleanliness , ingredients , healthy and decoration of food. However , they are unsatisfied with the variety of food. This indicates that the food quality in Thai square is one of the factor that increase customer satisfaction.

According to the service quality , most respondents satisfy with staff friendliness , staff politeness , service speed and attentiveness of staff. As a result, those service quality lead to highly satisfaction.

From the location factor , it can be said that most respondents are satisfied with design and decoration of restaurant which is authentic Thai style and all decoration imported from Thailand. Moreover , there are many branches of Thai square to serve customer at the important landmark around London especially this branch situated in the centre of city which make customer satisfied. The ambience of Thai square is very cosy and comfortable.

For the price factor , respondents are satisfied with Thai square promotion , value for money as well as service charge. As The Thai square promotion is suitable for current economic situation and the price is reasonable. They are willing to pay service charge because of the good service quality according to the answer in section 2 part 3.

To sum up, those 4 factors are key component which increase customer satisfaction in order to gain customer loyalty. As most customers of Thai square are regular customer and they come to restaurant more than 4 times a months. Moreover, most of them have been a customer at Thai square more than 6 months. It is implied that Thai square customers are a long term customer. The questionnaire result shows that there is only a few customers who considers themselves as loyal customer. However, those majority of regular customers is likely to be loyal customer in the future.

Customer loyalty can be established by increasing customer satisfaction. Since customer with satisfaction may bring the new customer to the restaurant as well as can sent an information of the restaurant in word of mouth form. The benefits from loyal customer will help company to increase profits and competitive advantages. To gain loyal customer Thai square have to use staff motivation and customer service including staff training strategies in order to meet customers’ need and increase customer satisfaction. This motivation of staff will be discussed in the following part.

5.2.2 To explain the relationship between motivation of staff and staff training as well as their effectiveness in improving customer service in order to satisfy customer

From the section one, It can be concluded that Thai square provide staff training and induction training to staff in order to increase staff performance and to acknowledge them about restaurant objectives and aims. By doing so, staffs can understand their tasks , duties and responsibilities and have an effectiveness at work. Staffs can adapt the knowledge and skill obtaining from training to achieve restaurant’s purpose and objective which is to increase customer satisfaction resulted in customer loyalty.

According to the result , most staffs satisfy with their job and training given by company and they can achieve the companies’ objectives and aims by delivering good service as shown in the section two which the mean score of food and service quality is very high.

In addition, the staff motivation is one part of the Thai square strategies in encouraging staff to deliver good service to customer as well as the staff training is important in helping staff to achieve the Thai square ‘s objectives. By providing good food quality , good service quality , great location and reasonable price the Thai square can maintain existing customer and gain new customer.

By training staff , the customer service should be focused as a main subject since the customer relationship management in small restaurant relates to customer directly. The small restaurant need to deliver good service to make customer satisfied and come back.

For the staff motivation , Thai square provide the induction training program in order to increase staff skills and acknowledge staff about restaurant’s objectives. By doing so, Thai square need to identify what they need from staff and train how to achieve it. Thai square provide work training during the year and briefing staff before start working everyday so that all staff understands their duties , responsibilities and tasks.

To understand company’s objective staff can do job with confident and can deliver good service and good food to customers. Staffs will deliver great service as long as they satisfy with the internal support services and companies’ policies. It can be said that by motivating staff to understand and satisfy with their job , it will result in customer satisfaction and customer loyalty.

5.2.3 To establish the appropriate strategies for restaurants in terms of customer relationship management

The strategies employed by Thai square are that the motivation of staff which help companies to encourage and support their staffs to achieve company’ s purposes and objectives and the job training programme is one of strategies that relate to customer service because to achieve company’s purposes staffs need to understand and recognize what their duties , tasks and responsibilities are so as to improve their working performance. Knowing the direction could help staff not going to the wrong way. The Thai square applies the customer service strategies by increasing customer satisfaction and establishing customer loyalty. To increase customer satisfaction company need staff to deliver good customer service in term of good food and service quality so that company can maintain existing customer and gain more new customer in the future.

5.2.4 To give an advice for restaurant , staffs on how to improve their potential in providing so as to satisfy customer

When receiving questionnaire result the researcher can identify further needs for Thai square restaurant which will be stated in the next chapter.

Chapter 6


6.1 Introduction

This chapter contain two parts. The first part indicates the recommendations for organization and the second part identify the research limitations of this research. As the researcher has found some of the problems and the resolutions during doing this research.

6.2 Recommendations

This recommendations are given in order to improve the restaurant strategies. In today’s world , the communication technologies are going beyond our knowledge. To gain more relationship with customer there are many methods using electronic tools to communicate with customer. Company should make use of those technologies more often. Because many people communicate through internet and find some information on internet. Company need to develop their website in order to contact with their customer and receive the complains.

Moreover , company should apply the CRM programme such as customer loyalty programme to establish customer loyalty. In addition , to collect the customer information and data the CRM programme is a better way to do it. The company have to consider other available methods to develop customer relationship management. The company need to fulfil the customers’ need using those programme and technology.

The recommendations for staffs are that they need to motivate themselves by being dynamic and trying to learn new things as well as improving their skills. To improve skills , they should attend in every job training that is provided by company. Staffs need to be positive thinking so that they will have an effectiveness at work and help company to deliver good service so as to achieve company’s aims.

The recommendations for future research are that this research can help other researchers to investigate deeply in marketing field or may be a guideline to any person who would like to improve the customer service as well as it could be adapted by large companies to manage customer relationship.

6.3 Research Limitations

There have been limitations in conducting this research. There are three limitations which are access , cost , time. According to the access limitation , there were some problems about acquiring an access to questionnaire respondents because these respondents were not willing to do questionnaire. When researcher asked customers to do questionnaire , most of them denied at first but finally did it.

Some respondents did not finish all the questions. From the cost limitation , as the researcher is student and work as part time job. There might be some additional cost during conducting this research. Regarding to time limitation , the period of time doing this research is so short as well as there was an unexpected circumstance such as the book related to researcher’s topic was not on the shelve and cannot find it from other places. Therefore, researcher needed to wait for book returning.


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