Factors Influencing Customer Satisfaction.

Case MOMO & MORE Oy

Sharma Bhandari Dikshya

2023 Laurea Leppävaara

Laurea University of Applied Sciences
Service Business Management
BBA
Laurea University of Applied Science
Service Business Management
BBA

Factors Influencing Customer Satisfaction. Case MOMO & MORE Oy

Dikshya Sharma Bhandari

Service Business Management.
Thesis
May 2023
Laurea University of Applied Sciences Abstract
Service Business Management
BBA

Dikshya Sharma Bhandari

Factors Influencing Customer Satisfaction. Case MOMO & MORE Oy
Year 2023 Number of pages 47

Abstract:

This thesis investigates the significance of customer satisfaction within the highly competitive
business environment of the case company, Momo & More. Recognizing the limitations of
customer expectations, the study aims to measure the current level of customer satisfaction
and understand customers' needs to enhance customer service specifically for Momo & More.
The research also analyzes the factors that influence customer satisfaction within the context
of the case company.

The theoretical background provides a comprehensive definition of customer satisfaction and

emphasizes its importance. The primary focus of the study is to explore effective methods for
measuring customer satisfaction and improving customer service and quality, with the goal of
maximizing customer satisfaction for Momo & More. The findings of this research hold
valuable insights for Momo & More in their pursuit of elevating customer satisfaction levels
and enhancing overall business performance.

A mixed research methodology, bounding qualitative and quantitative approaches, has been
employed in this study. The research outcomes provide practical and tailored
recommendations specifically for Momo & More, aimed at improving customer service quality
and driving overall customer satisfaction. The business plan of Momo & More revolves around
the objective of augmenting customer satisfaction, and this study serves as a guide to achieve
that objective.

Keywords: Customer Satisfaction, Service quality, Product quality.

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Contents

1 Introduction ............................................................................................ 6
1.1 Scope of Study ................................................................................ 6
1.2 Purpose of the study ......................................................................... 7
1.3 Framework of thesis ......................................................................... 7
2 Theoretical background .............................................................................. 7
2.1 Customer Satisfaction. ........................................................................... 8
2.1.1 Importance of Customer Satisfaction .............................................. 9
2.1.2 Factors influencing customer Satisfaction. ....................................... 9
2.2 Service ....................................................................................... 10
2.2.1 Service Quality ...................................................................... 11
2.2.2 The Challenges of Service. ........................................................ 12
2.2.3 Elements of Good Service ......................................................... 12
2.3 Quality ....................................................................................... 14
2.3.1 Dimensions of the Quality of a Product. ........................................ 15
2.3.2 Quality Influencing Customer Satisfaction. ..................................... 16
2.3.3 Components of good quality. ..................................................... 18
3 Research Approach .................................................................................. 19
3.1 Quantitative Research Method ........................................................... 19
3.2 Qualitative Research Method ............................................................. 20
3.3 Methodology ................................................................................ 21
4 Empirical Study ...................................................................................... 21
4.1 Background of the case company ........................................................ 22
4.1.1 Goal of Momo & More .............................................................. 23
4.2 SWOT Analysis .............................................................................. 24
4.3 General Information about the Respondent. ........................................... 26
5 Conclusion and Recommendations ................................................................ 36
5.1 Conclusion ................................................................................... 37
5.2 Recommendations .......................................................................... 37
6 Discussions ........................................................................................... 38
References ................................................................................................. 40
Figures ..................................................................................................... 43
Appendices ................................................................................................ 44
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1 Introduction

In today's business landscape, customer satisfaction is not only a key goal for customer-
centric companies, but also a powerful marketing tool. With the prevalence of social media
and online review platforms, companies must prioritize their customers' satisfaction levels to
prevent negative word of mouth from spreading quickly and damaging their reputation.
Conversely, positive feedback from satisfied customers can be an asset in attracting new
business and building a loyal customer base. According to Kotler & Keller (2009,158-169), it is
crucial for companies to maintain a high level of customer satisfaction and continuously
improve their customer service and product quality to remain competitive in the market.
Many organizations prioritize customer satisfaction because happy, loyal customers help
businesses to grow. Measuring customer satisfaction can assist a company in determining what
is working well with its products or services as well as what could be improved or changed.
Satisfying customers with their needs is becoming more challenging for any company as the
customers are impacted by globalization, industrialization, education, and being well-
informed. (Kotler & Keller 2009,158-169.)

The only constant in today’s environment is change. As a result, to survive in the long run, a
company must focus on and develop various strategies. With the challenging and competitive
environment, one of the best strategies is to satisfy customers to ensure long/term business
growth. Nowadays, organizations are aware of the benefits of customer retention and strive
to understand the reasons for the impact of the customer’s choice of service or products.
According to Kotler and Keller (2009, 164),

“Satisfaction is a person’s feeling of pleasure or disappointment that result

from comparing a product’s perceived performance to their expectations.”

A satisfied customer is a primary concern for the company as the customers are the essence
of the business, so it is essential to build customers as well as close relationships to improve
customer satisfaction. A customer is an individual or business that purchases another
company's goods or services. Customers are important because they drive revenues; without
them, businesses cannot continue to exist. (Kenton 2021.)

1.1 Scope of Study

The primary goal of this thesis is to investigate the key variables that have a strong influence
on customer satisfaction in Momo & More, a Nepalese Restaurant in Finland. Customer
satisfaction is comprised of numerous factors that must be monitored. Customer satisfaction
is critical as it influences many aspects of the business. The first impact is whether a
customer will return. With the high competition and substitutes, it is difficult to keep track of
customer satisfaction and loyalty to the products. Another factor that is frequently
 7

overlooked is how much money customers may spend on the service or the products in the
future. Understanding the factors that influence customer satisfaction is the first step in
improving it, followed by learning how to act on those factors. To determine the effects on
customer satisfaction, this thesis will focus on two major factors that are service, and
quality. Focusing on these factors will provide positive, consistent experiences and build true
customer satisfaction and loyalty.

1.2 Purpose of the study

The primary objective of this thesis is to evaluate the prevailing degree of customer
satisfaction and gain deep insights into the company's perspective on customer needs, aiming
to enhance the service and quality of Momo & More Oy. For a company to run smoothly and
successfully it requires happy, loyal customers to its business. This is why the focus of
learning about customer satisfaction with the company’s service and products will help to
improve the sales skills and provide stronger products and services to consumers. It will also
investigate the causes and factors that influence customer satisfaction levels and assist in
determining the problems with the Momo & More service, and quality.

Research Questions:

1. What is the level of customer satisfaction in Momo & More Restaurant?

2. How could customer service be improved in Momo & More Restaurant?

1.3 Framework of thesis

The research is structured into six distinct sections, beginning with an introduction that
outlines the scope of study, purpose of the study and framework of the thesis. The second
section, referred to as the theoretical background, presents an explanation of how to satisfy
customers, and how it is important and can affect customer and company relationship, the
two factors that affects it are service and quality. The third sections cover the research
approach which involves quantitative and qualitative research methods. The fourth section is
empirical study which covers the background of the case company, SWOT analysis and general
information of the respondents. The fifth section continues with the conclusion and
recommendation, and the last part concludes with discussions.

2 Theoretical background

The theoretical background for this thesis is divided into three different parts which highly
influence the level of customer satisfaction. The first part of the theory will start with a
 8

chapter that provides a clear definition of customer satisfaction and importance of customer
satisfaction. The second section of the factors influencing customer satisfaction will cover the
general concept of service, its quality, and classifications with the challenges of the service
with the elements for improving customer satisfaction for a successful experience for the
customers. The third section will cover the concept of quality, the dimensions of quality, and
how quality influences customer satisfaction.

2.1 Customer Satisfaction.

Customer satisfaction is defined as the outcomes that occur when the customer’s
expectations for the provided product or service are met or exceeded (Gerson & Machosky,
1993). Customer satisfaction with a company’s products and services is regarded as the most
important factor influencing competitiveness and success (Hennig-Thurau & Klee 1997).

The organization grows its market value and market base by emphasizing customer
satisfaction as a key component of its marketing strategy. Customer satisfaction is a measure
of how well an organization’s products and services meet or exceed customer satisfaction.
When we talk about customer satisfaction, we mean the overall level of happiness with a
company, product, or service. This includes everything from service provided to its
customers, how they are valued as an individual and the quality of products to the speed with
which they are delivered. Customer satisfactions can be achieved if the customer’s journey
through the entire purchasing process is done correctly. When providing service to customers
their expectations for communication and good service are all part of customer satisfaction.
These elements add quality to the customer’s successful customer experience. These two
factors service, and quality, contribute to an increase in customer satisfaction. (Kotler &
Keller 2009.)

According to Kotler & Keller (2009), The most comprehensive definition of satisfaction:

“A person’s feeling of pleasure or disappointment because of comparing a product’s

perceived performance or outcomes to his or her expectations.”

Constant improvement and focusing on the factors will allow the company to understand the
level of service, performance, and quality that need to be addressed or improved to keep
customers happy (Gerson & Machosky 1993). A thorough understanding of customer
satisfaction is a critical step in maintaining customer satisfaction with the company’s
services. This means that the company’s services that are not up to quality should be
improved to leave customers with a positive impression. (Anderson & Srinivasan, 2003.)
 9

2.1.1 Importance of Customer Satisfaction

It is determined to make sure your customers are pleased with the goods and services since
customer satisfaction directly affects customer loyalty. The implementation of the
fundamentals of continuous improvement, according to modern philosophy, justifies the
significance of measuring and analysing customer satisfaction. In short customer satisfaction
is regarded by many businesses as the benchmark for performance excellence. Finding
potential market opportunities is also helpful. Customer satisfaction can anticipate a
customer’s future intentions, including whether they will make another purchase from you.
Customers who are happy with your service are more likely to come back to you or
recommend the service to others. (Evangelos & Yannis 2005, 1-2.)

Zairi (2000) mentioned that the significance of customer satisfaction from a business
standpoint, our customers are at the core of our mission, and their satisfaction is essential to
our success. Rather than viewing customers as a burden, we recognize their significance and
understand that our future and security rely on meeting their needs. It is crucial not to
perceive customers as a problem or wish for their absence, as they are integral to our
business and the key to our continued growth and stability. A company at a certain time,
must keep an eye on its customer satisfaction and the factors which are influencing them.
Customer satisfaction and all business processes must be continuously improved for a
company to keep business running successfully. Customer satisfaction is important for the
company to identify their happy customers and those customers who are dissatisfied and what
factors were they not satisfied. A business needs to understand that customer satisfaction
varies by factors as many customers express themselves easily whereas many customers do
not voice their dissatisfaction This is why identifying the factors influencing customers’
satisfaction is necessary to improve them eventually. Continuous focus and development of
factors and procedures will allow the restaurant to comprehend its level of performance and
reveal areas that need to be improved to keep customers satisfied. (Zairi 2000.)

2.1.2 Factors influencing customer Satisfaction.

Various factors influence customer satisfaction. These factors encompass both product-
related and service-related dimensions. Product-related factors include the quality, features,
performance, and reliability of the offering. Customers are more likely to be satisfied when
they perceive the product as meeting or exceeding their expectations. Service-related factors
encompass aspects such as promptness, friendliness, competence, and responsiveness of the
service providers. Effective communication and problem-solving capabilities also contribute
to customer satisfaction. Additionally, other factors such as price fairness, convenience, and
the overall brand image play a significant role. Understanding and managing these factors is
vital for businesses as customer satisfaction is closely linked to customer loyalty, positive
 10

word-of-mouth, and repeat purchases, all of which are key drivers of long-term business
success. (Kotler & Keller 2009.)

According to Haaften (n.d), these factors affecting customer satisfaction is as follows:

These determinants are shown in the figure 1.

Figure 1 Factors Affecting Customer Satisfaction according to Haaften (n.d).

2.2 Service

Anything a business does to improve and develop the customer experience is considered
customer service. The service provider needs to be familiar with their customers and work
hard to deliver excellent customer support. Every business must use the service approach to
customer relationships. Generally, a firm must adopt a strong and effective service strategy
to use the service approach. Customers now demand a more comprehensive service
experience that includes preservice reliable information sharing, service experience, and
post-service support in addition to the goods and services they expect to receive. If the
service strategy is carried out successfully and the customers are satisfied, a company can
gain a competitive advantage through it, which can either be a central component of the
company’s offerings or a supporting component for the main key product quality. (Kotler &
Keller 2009.) According to Zeithaml, Bitner & Gremler (2013),” A service is an activity which
has some element of intangibility associated with it, which involves some interaction
with the customer or with property in their possession and does not result in a transfer
of ownership.”
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Customer service is a function of the business that offers the service or products, and it
involves assisting the client with requests and inquiries about the sales process or inquiries
about the use of the services. Customer expectations of the service are high which means
service quality to the findings of the customer’s comparison of the service performance
against their expectations and perceptions. Customers who receive excellent service leave a
positive impression that encourages them to return and become a loyal following. One of the
elements that help to guarantee that customers are happy with the company’s facility is
service. Customer service refers to the support offered for a company’s main products.
The need of each generation is different and although each generation has distinct needs
that vary greatly depending on the individual’s lifestyle and preference and there are
always some commonalities that each generation shares that drive demand for novel and
developing services. (Parasuraman, Zeithaml & Berry 1988.)

2.2.1 Service Quality

The output of a service delivery system is typically referred to as service quality, and it
is linked to customer satisfaction, perception, and opinion that are formed based on a
variety of contributing factors and references. Service quality has become one of the
factors that highly influence the market and the interest of individuals. There is more risk
involved in the purchase of services because they typically have a high level of experience
and credibility. There are several effects of these factors. First off, word of mouth is the
primary method of advertising for service consumers. Second, they heavily depend on price,
persona, and physical signs to assess quality. Third, they have a high level of loyalty to
service providers who meet their needs. Fourth, because switching costs are high, it may be
difficult to convince customers to switch from a competitor because of consumer inertia.
While providers work to achieve and define service quality, consumers experience and
perceive it. (Kotler & Keller 2009.)

According to Kotler & Keller (2009, 387-388), there are separate offerings into five
categories. The first category is pure tangible where the main component of the offering is a
material good such as salt or soap. This kind of tangible good comes without any services. The
second is a tangible good with accompanying services-the need for a wide variety of high-
quality supporting services increases with the level of technological experience of the
products such as computers or cell phones. The third offering is the hybrid which splits evenly
between products and services. For example, customers go to the restaurant for both the
food and the service. The fourth consists mainly of major services, and additional services,
and is supported by goods-like airline travel packages with visible tangible goods. And the
fifth offering is a pure service which consists primarily of service. For example,
massage/babysitting is one example of pure service. (Kotler & Keller 2009, 387-388.)
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2.2.2 The Challenges of Service.

According to Zeithaml (1988), “customers often have high expectations when it comes to
service quality and personalized experiences. Meeting and managing these expectations can
be challenging, as customers' perceptions are influenced by their individual needs, prior
experiences, and external factors.”

At service interaction, a company’s service quality is put to the test. When customers are
waiting, if the service staff is uninterested, unable to respond to straightforward inquiries, or
chatting with one another, customers may think twice about doing business with the seller
again. Many factors, including prior interactions, word of mouth, and advertising, influence
how customers perceive the quality of service. As mentioned by Kotler and Keller (2009),
Customers typically contrast the actual service received with the expected service.
Customers are disappointed if the perceived service is below the expected service. Successful
businesses enhance their offerings with features that satisfy customers while also surprising
and delighting them. Exceeding expectations is the key to pleasing customers. Several
challenges associated with service delivery. These challenges are specific to the service
industry and require careful attention to ensure customer satisfaction. One challenge is the
intangibility of services, making it difficult for customers to evaluate and assess the quality
before purchase. Another challenge is the variability or inconsistency in service delivery, as
services often rely on human interactions that can vary from one encounter to another.
According to Kotler and Keller (2009), This variability can impact customer perceptions and
satisfaction. Service perishability is another challenge, referring to the inability to store or
save services for future use. This can result in fluctuating demand and the need for effective
capacity management. The inseparability of production and consumption is yet another
challenge, as services are typically produced and consumed simultaneously, requiring skilled
and responsive service personnel. Lastly, managing customer expectations can be challenging,
as customer perceptions of service quality are influenced by preconceived expectations.
Meeting or exceeding these expectations is crucial for customer satisfaction. Understanding
and addressing these challenges are vital for service providers to deliver consistent and high-
quality experiences, ultimately leading to customer satisfaction and loyalty. (Kotler and
Keller, 2009.)

2.2.3 Elements of Good Service

Kotler and Keller (2009, 399-400) mentioned that many factors, including prior interactions,
word of mouth, and advertising, influence how customers perceive the quality of service.
Customers typically contrast the actual service received with the expected service.
Customers are disappointed if the perceived service is below the expected service. Successful
 13

businesses enhance their offerings with features that satisfy customers while also surprising
and delighting them. Exceeding expectations is the key to pleasing customers.

The key conditions for providing high service quality are highlighted by the service-quality
model. It identifies five gaps that lead to poor service delivery. The primary gaps identified
by Kottler and Keller (2009, 399-400) are listed below.

Figure 2 Gap Model of Service Quality by Kottler and Keller (2009, 400).

1. Gap between consumer expectation and management perception- What customers want is
not always accurately perceived by management. For example, a restaurant’s management
might want some change in the menu, but the customers are already satisfied with the
existing menu. (Kottler & Keller 2009, 400.)

2. Gap between management perception and service quality specification- Although

management may accurately understand what customers want, it may not set performance
standards. For example, a restaurant manager may ask their employee to provide quick
service without considering how fast according to the performance standard. (Kottler & Keller
2009, 400.)

3. Gap between service quality specifications and service delivery- The staff may lack the
necessary skills, be unable to perform the required duties, or be unwilling to do so. They may
 14

also be expected to meet standards that are in conflict, such as giving customers quick
service while also taking the time to listen to them. (Kottler & Keller 2009, 400.)

4. Gap between service delivery and communications- Ads and statements made by company
representatives have an impact on consumer expectations. If a restaurant shows a beautiful
terrace view with a quiet cabinet for family dinner, but when customers visit the restaurant,
they find it uncomfortable or it does not fulfil the recommendation, external communications
have misled the customer. (Kottler & Keller 2009, 400.)

5. Gap between perceived service and expected service- When the customer has a false
perception of the service quality, this gap develops. If a restaurant manager keeps visiting
the table, customers might interpret there is something wrong going on. (Kottler & Keller
2009, 400.)

Researchers Kotler and Keller (2009, 400) identified the following five factors as the top five
service quality determinants based on this service-quality model.

1. Reliability- The capability of providing the promised service in a dependable and precise
manner. (Kottler & Keller 2009, 400.)

2. Responsiveness- A readiness to assist customers and offer prompt service. (Kottler & Keller
2009, 400.)

3. Assurance- The staff members' expertise, politeness, and capacity to inspire confidence.
(Kottler & Keller 2009, 400.)

4. Empathy- Giving each customer caring, personalized attention. (Kottler & Keller 2009,
400.)

5. Tangibles- The way that communication facilities, staff, and physical infrastructure are
presented. (Kottler & Keller 2009, 400.)

2.3 Quality

According to Kotler & Keller (2009, 169-172),” quality is the totality of features and
characteristics that enable the products to satisfy the needs of consumers both stated or not
stated”. This definition emphasizes that quality is not limited to a single aspect of a product
or service, but rather encompasses all the features and characteristics that contribute to its
ability to meet customer needs, whether those needs are explicitly stated or implied. It also
underscores the importance of customer satisfaction as the ultimate measure of quality, as a
product or service must be able to satisfy customer needs to be considered of high quality.
Kotler and Keller's definition of quality emphasizes the customer-centric perspective of
 15

marketing, highlighting the importance of understanding and meeting customer needs as a

key driver of business success. It reflects the evolving nature of quality, which is not just
about manufacturing standards, but also includes factors such as design, reliability,
durability, performance, and customer service, among others. (Kotler & Keller 2009.)
According to Garvin (1984), quality can be viewed from different perspectives, including
transcendent, product-based, user-based, manufacturing-based, and value-based
perspectives.

Consumers think about their purchases before making them. The product has values that
affect and motivate a person to make a purchase. There are two types of product qualities:
intrinsic and extrinsic. The signs of a product, such as colour and texture, are related to
intrinsic quality. In contrast, extrinsic quality, such as brand image, is a sign of quality that is
not inherent in the product. (Zeinthaml 1988.)

“Quality is an important issue in the modern competitive business world” Dahlgaard, et al.
(1998). Quality is a measure of excellence or superiority of a product, service, or process. It
refers to the degree to which a product or service meets or exceeds customer expectations
and requirements. Quality can encompass various aspects, including performance, reliability,
durability, safety, aesthetics, user-friendliness, and other features that contribute to the
overall satisfaction and value of a product or service. Quality is subjective and can vary
depending on the context, industry, and customer preferences. It can be evaluated through
objective measures, such as adherence to specifications, standards, and performance
metrics, as well as subjective measures, such as customer feedback, reviews, and
perceptions. (Dahlgaard, et al. 1998.)

In business, maintaining and improving quality is often a critical factor in achieving customer
satisfaction, building brand reputation, and gaining a competitive advantage. Quality
management practices, such as quality control, quality assurance, and continuous
improvement, are commonly employed to ensure that products and services meet or exceed
established quality standards and customer expectations. Simply, quality refers to the level of
excellence, superiority, and satisfaction provided by a product, service, or process, as
perceived by customers and measured through various objective and subjective criteria.
(Kotler & Keller 2009.)

2.3.1 Dimensions of the Quality of a Product.

The quality of a product is a multi-dimensional concept that can be assessed from various
performances. Garvin (1987) explains that there are eight dimensions of the quality of a
product. These are some of the key dimensions of product quality that can be assessed and
evaluated to determine the overall quality of a product. Businesses and manufacturers often
use these dimensions as benchmarks to ensure that their products meet or exceed customer
 16

expectations and deliver high-quality experiences. (Garvin 1987.) The eight dimensions of the
quality explain by Garvin (1987):

1. Performance: Refers to the primary functioning of the product and how well it meets
customer expectations and requirements. (Garvin 1987.)

2. Features: Encompasses the additional characteristics and attributes of the product that
enhance its functionality and customer value. (Garvin 1987.)

3. Reliability: Reflects the product's ability to consistently perform its intended function over
a specific period without failure or breakdown. (Garvin 1987.)

4. Conformance: Focuses on how well the product adheres to established standards,

specifications, and regulations. (Garvin 1987.)

5. Durability: Describes the product's lifespan and its ability to withstand wear, usage, and
aging without significant deterioration. (Garvin 1987.)

6. Serviceability: Relates to the ease of maintenance, repair, and servicing of the product,
including availability of spare parts and customer support. (Garvin 1987.)

7. Aesthetics: Considers the product's visual appeal, design, and sensory aspects, such as
texture, color, and style, which contribute to customer satisfaction. (Garvin 1987.)

8. Perceived Quality: Represents the overall image, reputation, and perception of the product
by customers, including brand reputation, customer reviews, and word-of-mouth. (Garvin
1987.)

These dimensions collectively contribute to assessing and evaluating the quality of a product
from different perspectives, helping businesses understand and improve customer satisfaction
and overall product performance. (Garvin 1987.)

2.3.2 Quality Influencing Customer Satisfaction.

As Kotler & Keller (2009) stated, quality has a direct and significant influence on customer
satisfaction. When customers perceive a high level of quality in what they receive, it
positively impacts their satisfaction levels. Quality acts as a critical determinant in meeting
or exceeding customer expectations. When customers perceive that the quality of a product
or service meets or exceeds their expectations, it leads to higher levels of satisfaction.
Customers have certain expectations about the quality of a product or service based on their
past experiences, marketing communications, and other factors. When the actual quality of
the product or service meets or exceeds their expectations, it leads to customer satisfaction.
 17

The dimensions of quality, such as reliability, performance, features, and customer service,
contribute to meeting or exceeding customer expectations. (Kotler & Keller 2009.)

Cronin & Taylor (1992) support the relationship between quality and customer satisfaction,
indicating that perceived quality significantly influences customer satisfaction in various
industries.

According to Kotler & Keller (2009, 384-411), quality has a direct impact on customer
satisfaction and how quality influences customer satisfaction through the concept of
"customer-perceived quality. Organizations need to prioritize managing quality as a key
component of their marketing and customer satisfaction strategies. Kotler and Keller (2009,
384-411.) The following are the customer- perceived quality by Kotler and Keller (2009, 384-
411.)

Figure 3 Direct impact of quality on Customer Satisfactions.

1. Customer Expectations: Customers have certain expectations about the quality of a

product or service based on their past experiences, word-of-mouth, marketing
communications, and other factors. These expectations serve as a benchmark against which
they evaluate the actual quality of the product or service. (Kotler & Keller 2009, 384-411.)

2. Customer-Perceived Quality: Customer-perceived quality refers to the customer's

perception of the actual quality of the product or service based on their evaluation. If the
customer perceives that the product or service meets or exceeds their expectations, they are
likely to be satisfied. On the other hand, if the perceived quality falls short of their
expectations, they may be dissatisfied. (Kotler & Keller 2009, 384-411.)
 18

3. Customer Satisfaction: Customer satisfaction is the result of the customer's evaluation of

the perceived quality of the product or service. When customers perceive that the quality of
the product or service meets or exceeds their expectations, they are more likely to be
satisfied. Customer satisfaction leads to positive outcomes, such as increased loyalty, repeat
purchases, positive word-of-mouth, and higher customer lifetime value. (Kotler & Keller 2009,
384-411.)

4. Relationship between Quality and Customer Satisfaction: The relationship between quality
and customer satisfaction is a positive one. Higher quality products or services that meet or
exceed customer expectations are more likely to result in higher customer satisfaction. On
the other hand, poor-quality products or services that fall short of customer expectations are
likely to result in lower customer satisfaction. (Kotler & Keller 2009, 384-411.)

5. Importance of Managing Quality: Managing quality is essential for achieving customer

satisfaction. Organizations need to focus on consistently delivering high-quality products or
services that meet or exceed customer expectations. This requires robust quality control
measures, continuous improvement processes, and a customer-centric approach to
understanding and meeting customer needs and expectations. (Kotler & Keller 2009, 384-
411.)

2.3.3 Components of good quality.

Customer service is a vital component of good quality, especially in service-based industries.

Excellent customer service entails responsiveness, friendliness, and competence in addressing
customer needs and resolving issues promptly and effectively. Positive customer service
experiences significantly contribute to overall perceived quality. (Zeithaml, Bitner & Gremler
2006.)

According to Kotler & Keller (2009), “Quality is a measure of excellence or superiority of a

product, service, or process. It refers to the degree to which a product or service meets or
exceeds customer expectations and requirements”. Quality can encompass various aspects,
including performance, reliability, durability, safety, aesthetics, user-friendliness, and other
features that contribute to the overall satisfaction and value of a product or service. Quality
is subjective and can vary depending on the context, industry, and customer preferences.
Momo & More is a small company owned by a family and the restaurant has its own area of
improvement when it comes to the quality of products and services. All the improvements for
the company are evaluated through objective measures, such as standards, and performance
metrics, such as customer feedback, online reviews, and perceptions. In business, maintaining
and improving quality is often a critical factor in achieving customer satisfaction, building
brand reputation, and gaining a competitive advantage. Quality management practices, such
as quality control, quality assurance, and continuous improvement, are commonly employed
 19

to ensure that products and services meet or exceed established quality standards and
customer expectations. (Zeithaml, Bitner & Gremler 2006.)

3 Research Approach

In this thesis, the author utilized a combination of literature review, and surveys as research
tools to gather information. By employing both qualitative and quantitative research
methods, the author conducted a survey to gauge customer satisfaction and measure it
against their expectations. The survey process was carefully designed to directly obtain
information from the customers, enabling a comprehensive understanding of their level of
satisfaction. To ensure a strong data collection process, the author specifically targeted
customers who visited the restaurant during busy lunch hours. This deliberate approach
allowed for a more comprehensive exploration of the customers' experiences and perceptions,
as they were likely to encounter the restaurant in a state of heightened activity. By focusing
on these customers, the author aimed to gain valuable insights into the factors that
contribute to customer satisfaction and identify areas that may necessitate improvement.

The combination of quantitative and qualitative research questions provided a comprehensive

approach to gathering data for the thesis. The literature review served as a foundation for
understanding existing knowledge and theories related to customer satisfaction for the case
company. And the survey provided a broader perspective by collecting quantitative data from
a larger sample size, enabling statistical analysis and generalizable findings. By utilizing a
combination of qualitative and quantitative methods, and targeting regular clients as the
research base, the author was able to gather valuable insights and contribute to the existing
body of knowledge in the field.

The author significantly examined the theoretical framework of service and quality to gain
insights into the factors that impact customer satisfaction. By investigating the
interconnections among service, quality, and customer satisfaction, the author aimed to
establish a robust basis for analysing and assessing the influence of these factors on overall
levels of customer satisfaction. The selection of service and quality as the theoretical
framework facilitated a comprehensive exploration of how these components significantly
shape customers' perceptions and experiences, ultimately determining their satisfaction with
the company.

3.1 Quantitative Research Method

According to Pritha (2020) quantitative research is a widely utilized approach among

researchers. It involves the use of numerical values and patterns to draw conclusions and
obtain various outcomes. Different strategies, hypotheses, and techniques are employed to
 20

validate these results. Common examples of quantitative research methods include

interviews, observations, surveys, questionnaires, and focus group studies. Surveys are highly
regarded as effective research tools in the fields of business and management. They enable
businesses to enhance their strategies and make informed decisions for their operations.
(Pritha 2020.)

Questionnaires:

Questionnaires are designed to efficiently collect large amounts of data from respondents.
One of the key advantages of questionnaires is their cost-effectiveness, as they can be
created with minimal training and assistance. Additionally, questionnaires offer the
advantage of easy analysis, as the data collected can be readily quantified and analysed.
These qualities make questionnaires a preferred choice over other research methods, as they
enable researchers to gather substantial data quickly and efficiently. (Birmingham 2003.)

Survey:

A questionnaire can be created using either traditional paper-based methods or increasingly

popular online platforms. This method of data collection is both cost-effective and efficient
for conducting research. Nowadays, researchers have access to a wide range of analytical
tools that can be used to analyse the data gathered through questionnaires, making it easier
to extract meaningful insights during the later stages of the research process. With the
internet serving as a primary source for collecting primary data, researchers benefit from its
convenience and extensive availability, making it an essential tool for conducting research.
(Wright, 2016.)

3.2 Qualitative Research Method

According to Pritha (2020), qualitative research is a research method that seeks to explore
and understand social phenomena by collecting and analysing non-numerical data, such as
narratives, interviews, observations, and documents. Qualitative research is used for a variety
of reasons, such as to gain a deeper understanding of complex social phenomena, to explore
the experiences and perspectives of marginalized groups, to generate new theories and
hypotheses, and to provide rich and detailed descriptions of social phenomena. One of the
main advantages of qualitative research is that it allows researchers to capture the
complexity and richness of social phenomena that cannot be captured by quantitative
methods. Qualitative research can also provide insights into the perspectives and experiences
of individuals, which can help inform policies and interventions. Qualitative research is used
to comprehend how individuals perceive their surroundings. Although there are numerous
approaches to qualitative research, most of them are adaptable and put a strong emphasis on
preserving rich meaning when interpreting the data. (Pritha 2020.)
 21

3.3 Methodology

The author conducted primary research in the form of a survey to collect efficient data
specifically for Momo & More Nepalese Restaurant in Lippulaiva. The survey was designed and
administered by the author with the purpose of gathering first-hand information directly from
the target audience or customers of the restaurant. By conducting the survey, themselves,
the author was able to tailor the questions and focus areas to obtain data that is highly
relevant and specific to Restaurant Momo & More. The research method used in the thesis is
quantitative and qualitative research method. An online and a paper survey was conducted to
collect data from potential customers. The survey used in the thesis was created by the
online tool “Microsoft Forms”. The survey was collected in the restaurant during all opening
possible hours, especially during lunch hours. This approach allowed the author to gather
insights and opinions directly from the customers, which can be valuable in assessing
customer satisfaction, and preferences, and identifying areas for improvement within the
restaurant especially focusing on service and quality. The primary research through the
survey ensured that the data collected was fresh, specific to the restaurant, and directly
reflective of the opinions and experiences of customers.

4 Empirical Study

In the empirical part, the background of the case company, Momo & More OY, is presented
along with a SWOT analysis to provide a comprehensive understanding of the company. The
background includes information about the company's history, key operations and the goal.
The SWOT analysis assesses the company's strengths, weaknesses, opportunities, and threats,
providing a clear picture of its internal and external factors that may impact its performance.
Overall, this section aims to provide relevant context and insights into Momo & More for
further analysis and evaluation.

The findings derived from both online and paper surveys conducted as part of this research.
To ensure the accuracy of the results, the data collected through the paper survey was
meticulously transferred to an online format on an individual basis. These results, obtained
from the online survey, serve as a valuable resource for enhancing the service quality of
Momo & More and informing the company's development plans.

The survey spanned a duration of one week, during which a total of 60 responses were
received in total of 82 customers. This considerable response rate enabled the author to
gather comprehensive and reliable data, facilitating the accurate tracking of records. The
insights obtained from these surveys are instrumental in identifying areas for improvement
 22

and formulating strategies to enhance the overall experience and satisfaction of Momo &
More's customers.

By meticulously documenting and analysing the responses obtained, the survey results serve
as a critical foundation for shaping the future growth and success of the company. They
provide valuable insights that inform decision-making processes, ultimately contributing to
the continued enhancement of service and quality. The author utilized Excel as a powerful
tool to analyze the survey data. Excel's versatile analytical features enabled efficient
organization, summarization, and visualization of the collected data. Leveraging these
capabilities, the author processed the survey responses, performed statistical calculations,
and created visual representations like pie chart. By proficiently employing Excel, the author
gained valuable insights from the analysis and adopted a systematic and effective approach to
explore the survey findings.

4.1 Background of the case company

Momo & more, is a family-owned restaurant chain established in 2018 by a Nepalese family.
The first restaurant was opened in Myyrmanni, Vantaa, and quickly gained popularity due to
its commitment to providing high-quality cuisine and exceptional service. Specializing in
authentic Nepalese and Indian dishes, Momo & More offers a hot buffet that has become a hit
among customers. Capitalizing on their initial success, the family expanded their venture by
opening a second restaurant in January 2021, located at Arabia Shopping Mall in Helsinki. The
positive response from customers further gains their growth, leading to the opening of a third
restaurant in Lippulaiva Espoo in March 2022. With each restaurant managed by 3-4
employees, the family ensures that utmost attention is given to the quality of their products
and services.

Momo & More's popularity extends to all three locations, particularly as a preferred lunch
destination. Operating hours from 11 am to 9 pm allow customers to enjoy the buffet
experience throughout the day, while also offering à la carte dining and takeaway options.
The dedication to customer satisfaction and culinary excellence has solidified the company's
reputation in the industry. Momo & More OY stands as a successful family-run restaurant
chain, characterized by its commitment to providing delectable cuisine, excellent service,
and a warm dining experience across multiple locations. This thesis has been focused on the
new branch, Momo & More Nepalese Restaurant- Lippulaiva.
 23

Figure 4 Nepalese Restaurant- Espoonlahdenkatu 8, 02320 Lippulaiva, Espoo

Momo & More has garnered popularity among a diverse range of customers, making it a
preferred choice for various demographic groups. The appeal of the restaurant extends to
kids, adults, men, and women, indicating that the company does not have a specific target
customer segment. The ability to cater to a wide customer base can be attributed to the
restaurant's commitment to providing exceptional service, customer satisfaction, and high-
quality food. In addition to the physical dining experience, Momo & More has capitalized on
the growing popularity of online food delivery systems. The company has partnered with
renowned delivery platforms like Wolt and Foodora. These partnerships have proven
beneficial, as both Wolt and Foodora are highly popular and consistently busy. Customers can
conveniently order food from Momo & More through these platforms, with delivery services
available throughout the restaurants' opening hours and within proximity to their locations.

Given its family-oriented nature, Momo & More places a strong emphasis on values and quality
in both their food offerings and service. This focus ensures that customers receive an
enjoyable dining experience that exceeds their expectations. The restaurants have
successfully established a reputation for delivering top-notch service and satisfying meals.

4.1.1 Goal of Momo & More

The primary objective of Momo & More is to deliver exceptional quality food and service to
their customers, exceeding their expectations and enhancing their overall dining experience.
This goal is achieved by adding value to customer expectations and ensuring that the
restaurant operates successfully while adhering to budgetary constraints for personnel and
supplies. The restaurant acknowledges that the collaboration and support of the entire staff
 24

are crucial in achieving these objectives. A cohesive team is essential for a restaurant to
thrive, with each staff member playing a vital role. This teamwork is reflected in the
customer experience and satisfaction levels.

Momo & More has various teams in place, starting from food preparation and service to
delivery partners responsible for food and product deliveries. The owners and share partners
of the company oversee business proposals and resource management. Other important teams
include billing, accounting, and marketing. A well-functioning team consistently outperforms
individuals. When teams work together to solve problems, they generate more innovative and
adaptable solutions. In a restaurant, excellent quality and service are always the result of
effective teamwork. The aim of this teamwork is to ensure the highest level of customer
satisfaction and add value to the service provided. Customers, being the invaluable assets of
the company, are highly influenced by factors such as quality, and service easily.

4.2 SWOT Analysis

Momo & More is a small company, and it offers limited services to its customers. The company
always tries to extend the service to provide the best quality service and food as they want to
facilitate customers with options. However, they are not offering enough services to their
customers. Overall, the restaurant business has gained popularity and customers expect a lot
of services and value as their expectations are getting higher with the demand of the time.
Customers have a lot of alternatives when it comes to restaurants which makes the restaurant
hard to exist easily. With growing competition and popularity among Nepalese restaurants,
Momo & More must ascertain whether they satisfy the requirements and expectations of their
customers. Focusing on the major factors affecting customer expectation is one of the most
important for problem identification.

According to Oana (2022) “Swot Analysis is a powerful tool to assess internal and external
factors that give a business a clear advantage and help it keep abreast of consumer trends.”
SWOT analysis is important to achieving the goal and avoiding risk. The internal factors are
presented along with the strengths and the weaknesses, and the external factors are
presented along with their opportunities and threats. The goal is to describe the advantages,
expose and disadvantages, investigate potential opportunities, and identify the threat for
Momo and more. Figure 5 SWOT analysis of Momo and more are illustrated by customer
feedback and review based on the year 2022. The below demonstrations show the company’s
internal factors which are strengths and weaknesses. The company has a specially offered
menu and enough employees in the restaurant, which is the strength of the restaurant, but at
the same time, customers are not happy about the constant change in service which results in
lousy service in the company which affects customers’ experience directly or indirectly. The
strength of the company is excellent online delivery, whereas there is a weakness such as a
 25

poor online presence and a lack of enough marketing to reach out to the targeted customers.
Additionally, less marketing and promotion led to a greater loss of customers for Momo and
more. The websites of the restaurants do not provide the customers with accurate
information such as opening hours, menu list, and offers. With such a poor design of the
website, customers are sometimes not satisfied with the service and quality which is affecting
customer satisfaction. Also, many new customers are unaware of the company’s new offers
and pricing, which means customers are unfamiliar with the company. The company has been
able to successfully maintain the authentic taste but there is high competition with the
existing competitors. All the Nepalese restaurants are providing similar food and flavours
which brings high competition among the restaurants. When there comes to alternatives,
customers are easily changing their choices in certain circumstances.

Figure 5 SWOT Analysis of Momo & More Oy, Lippulaiva.

The opportunity in terms of external factors is the Nepalese restaurant is taking a good
marketplace and market value growing more quickly. For Momo and more, it is the
opportunity of being from a Nepalese community to take advantage of the fast-growing
market. Momo and more are selling well but for better opportunities, they can use the
trained employee and increase the online presence for attracting more range of customers
because the more customers the better. Customers are competitive and they have a lot of
alternatives when it comes to choosing a quality and service, having special menu offers and
lots of options can influence the customers easily. When there is an opportunity that is equal
to the threat to the company. As mentioned, Nepalese restaurants are taking a great place in
 26

the market with the same concept and quality of the food which makes the market
competitive. Since COVID-19, digital marketing and online presence have made a great
impact all over the world which has also been a threat to Momo & more as well. Therefore,
having a good company website can significantly impact the ability to attract customers.
Additionally, service change is also one of the threats to Momo and more. Additionally, Momo
and More should offer easy services to customers rather than making the service complicated.
After all, the most important threats affecting the size of a business is the small local
population and more competitors (Choices in the restaurant) available to the customers.
Customers are limited and the service is unlimited which makes the competition high and
tough for the marketer, so for Momo & more, it is very important to maintain the service, and
quality to finance their position in the market which the company needs to be very strategic.

4.3 General Information about the Respondent.

The questionnaire used in the study consisted of three distinct sections. The first part focused
on gathering general information about the customers, while the second part aimed to assess
their satisfaction levels with the service and quality provided by the restaurant. The third
part of the questionnaire comprised open-ended questions, allowing customers to provide
more detailed feedback and insights.

The general information section sought to collect basic demographic data about the
respondents, including their gender, age, and frequency of visits to the restaurant. This
information is crucial for the case company as it helps them understand the profile of their
valued customers. By analysing the data, the company can gain insights into the customer
segments that frequent their establishment most often, which can assist in developing
targeted marketing strategies and tailoring their offerings to better suit the preferences and
needs of their key customer groups.

The second part of the questionnaire focused on measuring customer satisfaction with the
service and quality provided by the restaurant. This section likely included a series of
statements or questions designed to assess various aspects of the dining experience, such as
the friendliness of the staff, the taste and of the food, the cleanliness of the establishment,
and the overall atmosphere. By collecting customer feedback on these aspects, the case
company can identify areas of strength and areas that require improvement. This feedback
can guide decision-making processes to enhance customer satisfaction and optimize the
overall dining experience.

The third part of the questionnaire featured open-ended questions, enabling customers to
provide more detailed feedback and suggestions. This section is particularly valuable as it
allows customers to express their opinions, provide specific examples, and share any
additional insights or concerns they may have. The qualitative data collected from these
 27

open-ended questions can offer a deeper understanding of the customers' experiences,

preferences, and expectations. The case company can then analyse and interpret this
feedback to gain actionable insights for improving their operations, addressing specific
customer needs, and implementing changes that align with customer expectations.

By combining the information gathered from all three parts of the questionnaire, the case
company can gain a comprehensive understanding of their customers, their satisfaction
levels, and areas of improvement. This knowledge can inform strategic decisions, marketing
efforts, and operational adjustments to better meet the needs of their valued customers and
enhance their overall dining experience.

Question 1: Age
This chart illustrates the distribution of participants across different age groups, which were
specifically targeted for our research. Each age group exhibits distinct preferences, tastes,
and expectations regarding their dining experience. The collected data comprises individuals
categorized as "Below 25" (18%), "26-35" (22%), "36-45" (28%), "46-55" (24%), and "Above 55"
(8%) in terms of their age. The survey encompasses all age groups, with a higher
concentration of target customers ranging from below 25 to 55 years of age, while the above
55 age group represents a smaller portion of our customer base.

Figure 6 Age

Question 2: “Gender”

The second survey question focused on the gender distribution among respondents. The
results indicate that males constituted 51% of the population, while females accounted for
49%. The nearly equal representation of both genders suggests a well-balanced and diverse
customer base within the restaurant. This gender balance signifies the restaurant's ability to
 28

appeal to a broad range of individuals and effectively attract both men and women as
patrons.

Figure 7 Gender

Question 3. How often do you visit Momo & More (MM)?

The third survey question focused on the frequency of respondents' visits to Momo & More
Restaurant. The results revealed that approximately 31% of the respondents visit the
restaurant once a week, while 36% visit several times a week, indicating a significant portion
of frequent customers. Moreover, 23% of the respondents reported visiting the restaurant
once a month, reflecting regular but less frequent patronage. Additionally, 10% of the
respondents visit the restaurant less often, suggesting a smaller proportion of occasional
visitors. These findings demonstrate a strong level of customer loyalty, with a considerable
number of respondents visiting the restaurant on a regular basis, which signifies well for
Momo & More's customer retention and satisfaction.

Figure 8 Frequency of Restaurant Visit.

 29

Question 4. The service provided by MM was great.

The fourth survey question represents the service provided by Momo & More (MM) Restaurant.
The results indicate a range of opinions. A notable 26% of the respondents fully agree that the
service was great, highlighting a significant portion of highly satisfied customers. Additionally,
29% of the respondents somewhat agree, expressing a positive sentiment towards the service.
Another 25% neither agree nor disagree, indicating a neutral stance. On the other hand, 11%
of the respondents somewhat disagree, suggesting a minor level of dissatisfaction with the
service provided. Lastly, 9% of the respondents fully disagree, representing a small portion of
customers who were not satisfied with the service. These findings provide valuable insights
into the varying perceptions of the service quality at MM Restaurant and can aid in identifying
areas for improvement and further enhancing the overall customer experience.

Figure 9 Service

Question 5. The service given by MM exceeded my expectations.

The fifth question in the customer satisfaction survey aimed to assess how the service
provided by MM Restaurant compared to customers' expectations. The responses shed light on
the alignment between customer expectations and the actual service experience. Among the
respondents, 24% fully agreed that the service exceeded their expectations, indicating a
significant proportion of customers who were pleasantly surprised by the quality of service
received. Similarly, 26% somewhat agreed, indicating a positive sentiment towards the
service surpassing their initial expectations to some extent. On the other hand, 30% neither
agreed nor disagreed, implying a neutral position where customer expectations may have
been met adequately. However, 10% somewhat disagreed, suggesting a slight mismatch
between expectations and the delivered service. Likewise, 10% fully disagreed, indicating a
notable portion of customers who felt that the service fell short of their expectations. These
findings provide valuable insights into customers' perception of the service exceeding or not
 30

meeting their expectations, enabling MM Restaurant to gauge areas where improvements can
be made to further enhance customer satisfaction.

Figure 10 Service

Question 6. The food was flavourful.

The sixth question in the customer satisfaction survey aimed to evaluate the flavour fullness
of the food served at MM Restaurant. The responses provide insights into customers'
perceptions of the taste and flavours of the dishes. Out of the respondents, 26% fully agreed
that the food was flavourful, indicating a substantial portion of highly satisfied customers who
found the dishes to be rich in taste. Additionally, 25% somewhat agreed, suggesting a positive
sentiment towards the flavours but with a slightly more moderate level of satisfaction.
Furthermore, 30% neither agreed nor disagreed, indicating a neutral position where customers
did not strongly lean towards perceiving the food as flavourful or not. On the other hand, 13%
somewhat disagreed, suggesting a minor level of dissatisfaction with the flavourless of the
food. Likewise, 6% fully disagreed, representing a small but notable percentage of customers
who did not find the food to be flavourful. These insights provide MM Restaurant with
valuable feedback on the taste aspect of their offerings, allowing them to adjust or improve
as necessary to enhance the overall dining experience and meet customer expectations.
 31

Figure 11 Quality of Food.

Question 7. The quality of the food meets the price.

The seventh question in the customer satisfaction survey assessed the perception of
customers regarding the quality of the food in relation to its price at MM Restaurant. The
responses provide valuable insights into whether customers believe the food's quality justifies
its cost. Among the respondents, 18% fully agreed that the quality of the food meets the
price, indicating a significant portion of customers found the food to be worth the value they
paid for it. Additionally, 24% somewhat agreed, suggesting a positive sentiment towards the
alignment between quality and price, albeit with a more moderate level of agreement.
Furthermore, 28% neither agreed nor disagreed, indicating a neutral stance where customers
did not strongly lean towards perceiving the food's quality as worth its cost or not. On the
contrary, 18% somewhat disagreed, implying a slight mismatch between the perceived quality
and the price paid. Similarly, 12% fully disagreed, representing a notable proportion of
customers who did not believe that the food's quality justified its price. These findings offer
valuable feedback for MM Restaurant to consider in terms of ensuring the perceived value and
satisfaction of customers regarding the price-quality relationship of their food offerings.
 32

Figure 12 Quality of Food.

Question 8. The quality of our food meets your expectations.

The eighth question in the customer satisfaction survey aimed to gauge whether the quality
of MM Restaurant's food met the expectations of customers. The responses provide insights
into how well the food aligned with customers' initial expectations. Among the respondents,
29% fully agreed that the quality of the food met their expectations, indicating a significant
proportion of highly satisfied customers. Additionally, 22% somewhat agreed, suggesting a
positive sentiment towards the food meeting their expectations to some extent. Furthermore,
25% neither agreed nor disagreed, indicating a neutral stance where customers did not
strongly lean towards perceiving the food as meeting or not meeting their expectations. On
the other hand, 14% somewhat disagreed, implying a minor level of dissatisfaction with the
quality of the food in relation to expectations. Similarly, 10% fully disagreed, representing a
small but notable percentage of customers who felt that the food did not meet their
expectations. These findings provide valuable insights for MM Restaurant to assess and
improve upon any gaps between customer expectations and the actual food quality, thereby
enhancing overall customer satisfaction.
 33

Figure 13 Quality of Food.

9. The atmosphere of the restaurant was friendly.

The responses collected indicate the customers' opinions regarding the friendliness of the
restaurant's atmosphere. Out of the total respondents, 18% fully agreed that the atmosphere
was friendly, while 20% somewhat agreed with this statement. On the other hand, 26% of the
respondents neither agreed nor disagreed, implying a neutral stance. Conversely, 21% of the
participants somewhat disagreed with the notion that the atmosphere was friendly, and 15%
fully disagreed, indicating a negative perception of the restaurant's atmosphere. It is worth
noting that the survey results reflect the varying perspectives and experiences of the
customers. While a significant portion of respondents expressed positive or neutral views
regarding the friendliness of the restaurant's atmosphere, a notable portion had more
negative perceptions. These findings highlight the importance of further investigation to
identify potential areas for improvement and to address any concerns raised by customers.

Figure 14 Atmosphere

10. The service was quick.

The collected data indicates the customers' perceptions of the speed of service at the
restaurant. Out of the total respondents, 24% fully agreed that the service was quick, while
27% somewhat agreed with this statement. Similarly, 24% of the respondents neither agreed
nor disagreed, indicating a neutral stance toward the speed of service. On the contrary, 13%
of the participants somewhat disagreed, suggesting that they found the service to be
relatively slow. Additionally, 12% fully disagreed, implying a strong belief that the service was
not quick. These survey results provide insights into the customers' experiences and opinions
regarding the speed of service at the restaurant. While a significant portion of respondents
expressed positive or neutral views regarding the quickness of the service, a notable portion
 34

had more negative perceptions. It is important for the restaurant management to take these
findings into account and consider implementing measures to enhance the speed of service
for improved customer satisfaction.

Figure 15 Service

Question11. How likely would you be to recommend our restaurant to your family and
friends?

In the survey conducted, customers were asked about their likelihood of recommending the
restaurant to their family and friends. The collected data provides insights into the customers'
intentions and opinions regarding the restaurant's recommendation. Out of the total
respondents, 29% indicated that they would be very likely to recommend the restaurant,
while 24% stated that they would likely recommend it. On the other hand, 16% expressed that
they were not very likely to recommend the restaurant, and 12% indicated that they were not
likely to recommend it at all. Additionally, 19% of the participants had a neutral stance or no
opinion on the matter.

These findings reveal a diverse range of sentiments among customers regarding their
likelihood of recommending the restaurant. While a significant portion of respondents
expressed positive views and indicated a high likelihood of recommending the establishment
to their family and friends, there is also a notable percentage that expressed some level of
hesitation or reluctance to make such recommendations. The neutral responses further
indicate a lack of strong opinion or uncertainty among a portion of the participants.

To increase the likelihood of positive recommendations, the restaurant should consider

addressing any concerns or areas for improvement identified by customers. This could involve
focusing on enhancing various aspects such as food quality, customer service, ambiance, and
 35

overall dining experience. By addressing these factors and consistently delivering a satisfying
experience, the restaurant can potentially improve customer satisfaction and subsequently
increase the likelihood of positive recommendations.

Figure 16 Recommendation

Open-ended questions

Question 12. How could we serve you better in the future?

The survey question "How could we serve you better in the future?" aimed to gather feedback
from customers regarding potential areas for improvement and for future planning for the
company. The comments were made by few customers and feedbacks of the respondent will
be used for the development plan of the company.

1. Atmosphere: Most of the respondents suggested improving the better atmosphere in the
restaurant. The customer expressed a desire for an even more welcoming and inviting
atmosphere within the restaurant. This feedback suggests that further efforts could be made
to enhance the ambiance and create a warm and comfortable environment for patrons.

2. Trained staff: The customer indicated a need for an increased level of training among the
restaurant staff for better service. This response suggests that there may have been instances
where the customer felt that the staff's knowledge or skills could be further improved to
provide a higher level of service and assistance.

3. More flavourful food: The customer mentioned a desire for the food to be more flavourful.
This feedback suggests that the customer felt the taste for seasoning of the dishes could be
 36

enhanced to further enhance their dining experience by keeping the authenticity of the
Nepalese cuisine.

Question 13. What other feedback would you like to give us?

The open-ended question at the end of the questionnaire allowed customers to provide their
suggestions and comments regarding their experience with the case company, Momo & More.
While it is noted that not all customers filled out this section, some customers did share their
opinions and experiences. Among the feedback received, there were positive sentiments
expressed by customers, including best wishes and satisfaction with the company. These
positive comments serve as a testament to the company's efforts in delivering quality food
and service.

Additionally, a few customers suggested that the company should focus on online services to
leverage the market better. This recommendation aligns with the growing trend of online
ordering and delivery services, which can potentially expand the customer base and increase
convenience for customers. Aalso, customer mentioned the importance of advertising specific
offers and improving overall digital marketing efforts. This feedback highlights the potential
for the company to enhance its promotional strategies, reach a wider audience, and
effectively communicate its unique offerings to attract more customers.

By considering these customer suggestions, the case company can consider implementing
online services, improving digital marketing efforts, and enhancing advertising campaigns to
capitalize on market opportunities and strengthen its brand presence.

5 Conclusion and Recommendations

This section of the thesis presents the conclusion derived from the survey conducted at Momo
& More. The research aimed to evaluate the factors influencing customer satisfaction
regarding the quality and service provided by the restaurant. The main objective was to
identify practical solutions based on customer feedback and enhance overall customer
satisfaction.

Drawing upon the feedback gathered from customers through the survey, several significant
recommendations emerge for enhancing the performance of Momo & More. These
recommendations serve as valuable insights and suggestions to improve various aspects of the
case company's operations and overall customer satisfaction.
 37

5.1 Conclusion

The purpose of this thesis was to conduct customer satisfaction research for Momo & More, a
Nepalese restaurant. The study aimed to measure the current level of customer satisfaction
and gain insights into the company's perspective on customer needs, with the objective of
enhancing the service provided. Additionally, the research analysed the factors that
contribute to potential issues affecting customer satisfaction. Using a combination of
quantitative and qualitative research methods, the study employed questionnaires to collect
data. Throughout the research process, it was observed that Momo & More attracts a diverse
range of customers, with a relatively equal representation of both males and females’
customers. This indicates that the company has successfully appealed to various age groups.
It can be inferred that the company has created a positive impression among customers,
leading to recommendations and positive word-of-mouth, which serve as a competitive
advantage in attracting new customers.

Based on the survey results, it was evident that the current service level of Momo & More is
commendable, as customers expressed overall satisfaction. However, there are areas that
require modification and improvement to maintain high standards. The quality of food
received positive feedback from customers, although there is a need to focus on maintaining
the authenticity and flavour of the cuisine. Providing training and motivation to employees
can greatly contribute to enhancing the service level and prioritizing customer satisfaction.
The open feedback received from respondents emphasized the importance of digital
marketing and creating a welcoming and environmentally friendly atmosphere. Taking these
suggestions into account, Momo & More can further prioritize their digital marketing efforts
and create an inviting ambiance for customers. While most customers are currently satisfied
with the service provided by Momo & More, the company should still acknowledge its
weaknesses and strive for continuous improvement to meet customers' perceived service
level. By addressing these areas of improvement and focusing on enhancing both service
quality and customer experience, Momo & More can further elevate customer satisfaction and
maintain its competitive edge in the market.

5.2 Recommendations

Based on the feedback received from customers through the survey, several key
recommendations can be made to improve the case company, Momo & More. Firstly, there is
a need to focus on creating a better atmosphere within the restaurant to make it more
welcoming and inviting for customers. This can be achieved by enhancing the ambiance and
ensuring a warm and comfortable environment. Secondly, providing increased training to the
staff is crucial to deliver better service. Improving their knowledge and skills will enable them
to offer a higher level of assistance and meet customer expectations. Thirdly, the flavor of
 38

the food can be enhanced by paying attention to seasoning and maintaining the authenticity
of Nepalese cuisine.

Furthermore, the suggestions made by customers also highlight the importance of leveraging
online services and improving digital marketing efforts. This includes focusing on online
ordering and delivery services, which align with the current market trend and can expand the
customer base while providing convenience. Additionally, implementing effective advertising
campaigns and utilizing specific offers can improve the company's overall digital marketing
strategy, reach a wider audience, and attract more customers. By considering these
recommendations, Momo & More can seize market opportunities, strengthen its brand
presence, and ultimately improve the customer satisfactions.

6 Discussions

Customer satisfaction is a crucial aspect that enables a restaurant to understand customer

needs and assess their level of satisfaction with the products and services provided. By
prioritizing customer satisfaction, a company can effectively adapt to customers' evolving
needs and demands. This holds particularly true for smaller restaurants like Momo & More, as
they need to invest significant effort in comprehending and meeting customer expectations,
thereby identifying the key factors that contribute to customer satisfaction. Recognizing the
importance of customer satisfaction is essential for any company, as acquiring new customers
typically involves higher costs compared to retaining existing ones. Each restaurant or
individual company possesses its unique set of factors that influence customer satisfaction. It
is imperative for businesses to comprehend these factors and their impact on customer
satisfaction. By establishing their own quality standards and meeting or surpassing customer
expectations, companies can proactively control these factors and deliver satisfactory service
to their customers.

For Momo & More, the focus on service and quality has emerged as the major drivers of
customer satisfaction. These factors hold significant influence on customer perception and
overall satisfaction levels. By concentrating efforts on enhancing service quality and
delivering superior goods, the restaurant can exceed customers' basic expectations, resulting
in heightened satisfaction. Understanding and prioritizing these factors is crucial for Momo &
More to effectively meet customer demands and ensure a positive dining experience. In the
competitive landscape of the food service industry, maintaining a high standard of quality is
paramount for long-term success. The concept of quality and service encompasses various
elements, ranging from the ingredients used in preparing dishes to the overall ambiance of
the dining room and the level of service provided by the staff. At the core, ensuring quality
 39

and providing exceptional customer service are fundamental for achieving customer
satisfaction.

When dining out, customers have certain expectations for the quality of food and the level of
service they receive. If a restaurant fails to meet these expectations, customers are likely to
seek alternatives. The consequences of delivering insufficient quality can be detrimental, as
negative reviews and word-of-mouth can quickly spread, tarnishing a restaurant's reputation.
On the contrary, consistently delivering high-quality experiences can generate positive
reviews, foster repeat business, and cultivate a loyal customer base. Recognizing the
significance of quality and service, successful restaurants strive to excel in these areas. They
meticulously select premium ingredients, carefully prepare dishes, and prioritize attention to
detail in every aspect of the dining experience. Moreover, they invest in training their staff to
provide attentive and personalized service that exceeds customer expectations. By
consistently delivering exceptional quality and service, restaurants can foster positive
customer experiences and create a positive reputation that attracts new customers while
retaining existing ones.

The food service industry's competitiveness underscores the importance of upholding quality
standards in restaurants. Quality and service play a vital role in customer satisfaction, as
customers anticipate and value exceptional culinary experiences. By consistently meeting or
surpassing customer expectations, restaurants can secure positive reviews, encourage repeat
patronage, and build a loyal customer base, ultimately contributing to their long-term
success.
 40

References

Anderson, R.E. & Srinivasan, S.S. 2003. E-satisfaction and e-loyalty: A contingency
framework. Psychology & Marketing. Accessed 01 April 2023. Available at:
https://doi.org/10.1002/mar.10063

Birmingham, P, & Wilkinson. D 2003. Using Research Instruments: A Guide for Researchers.
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https://ebookcentral.proquest.com/lib/laurea/reader.action?docID=181843

Cronin. Jr, J. & Taylor, Steve. 1992. Measuring Service Quality - A Reexamination and
Extension. The Journal of Marketing. Accessed 20 May 2023.

Dahlgaard, J.J., Kristensen, K., Kanji, G.K., Juhl, H.J. & Sohal, A.S. 1998. Quality
management practices: a comparative study between East and West. International Journal of
Quality & Reliability Management. Accessed 16 May 2023. Available at:
https://doi.org/10.1108/02656719810791675

Evangelos, G & Yannis, S. 2005. Customer Satisfaction Evaluation: Methods for Measuring and
Implementing Service Quality. London: Springer, 1-2.

Garvin, D. A. 1984. What Does "Product Quality" Really Mean? Accessed 14 May 2023. Available
at:
https://sloanreview.mit.edu/article/what-does-product-quality-really-mean/.

Garvin, D.A. 1987. Competing on the eight dimensions of quality.

Accessed 12 May 2023. Available at: https://hbr.org/1987/11/competing-on-the-eight-
dimensions-of-quality.

Gerson, R. F., & Machosky, B. 1993. Measuring Customer Satisfaction: A Guide to Managing
Quality Service. Course Technology Crisp. Accessed 28 April 2023.

Haaften, R. No date. Customer satisfaction. Accessed 01 May 2023. Available at:

https://www.van-haaften.nl/customer-satisfaction/customer-satisfaction-models/84-
customer-satisfaction.
 41

Hennig-Thurau, T., & Klee, A. 1997. The impact of customer satisfaction and relationship
quality on customer retention: A critical reassessment and model development. Psychology &
Marketing. Accessed 26 April 2023. Available at: https://doi.org/10.1002/(SICI)1520-
6793(199712)14:8<737::AID-MAR2>3.0.CO;2-F.

Kenton, W. 2021. Customer: Definition and How to Study Their Behavior for Marketing.
Accessed 30 April 2023. Available at:
https://www.investopedia.com/terms/c/customer.asp

Kotler, P., & Keller, K. L. 2009. Marketing management (13th ed.). Pearson/Prentice Hall,
150-411.

Oana, C. 2022. Why Is a SWOT Analysis Important [+ Examples]. Accessed 25 May 2023.
Available at: https://venngage.com/blog/why-is-a-swot-analysis-important/.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. 1988. SERVQUAL: A multiple-item scale for
measuring consumer perceptions of service quality. Journal of Retailing. Accessed 20 May
2023
Available at: https://doi.org/10.1177/002224298805200203.

Pritha, B. 2020. What is Qualitative Research? | Methods & Examples. Published on 19 June
2020. Accessed 27 April 2022. Available at:
https://www.scribbr.com/methodology/qualitative-research/

Pritha, B. 2020. What Is Quantitative Research? | Definition, Uses & Methods. Published on 12
June 2020. Accessed 27 April 2023. Available at:
https://www.scribbr.com/methodology/quantitative-research/.

Wright, P.M. 2016. Making Great Theories. Journal of Management Studies. Accessed on 24
May 2023. Available at: https://onlinelibrary.wiley.com/doi/full/10.1111/joms.12240.

Zairi, M. 2000. Managing customer dissatisfaction through effective complaints management

systems. The TQM Magazine. Accessed 25 March 2023. Available at:
https://doi.org/10.1108/09544780010341932.

Zeithaml, V. 1988. Consumer Perceptions of Price, Quality and Value: A Means-End Model and
Synthesis of Evidence. Journal of Marketing.
 42

Accessed 05 May 2023. Available at: https://doi.org/10.1177/002224298805200302.

Zeithaml, V. A., Bitner, M. J. & Gremler, D. D. 2013. Services marketing: Integrating

customer focus across the firm. 6th ed. New York: McGraw-Hill/Irwin.
 43

Figures
Figure 1 Factors Affecting Customer Satisfaction according to Haaften (n.d). .................. 10
Figure 2 Gap Model of Service Quality by Kottler and Keller (2009, 400). ....................... 13
Figure 3 Direct impact of quality on Customer Satisfactions. ...................................... 17
Figure 4 Nepalese Restaurant- Espoonlahdenkatu 8, 02320 Lippulaiva, Espoo .................. 23
Figure 5 SWOT Analysis of Momo & More Oy, Lippulaiva. ........................................... 25
Figure 6 Age ............................................................................................... 27
Figure 7 Gender ........................................................................................... 28
Figure 8 Frequency of Restaurant Visit. ............................................................... 28
Figure 9 Service ........................................................................................... 29
Figure 10 Service ......................................................................................... 30
Figure 11 Quality of Food. ............................................................................... 31
Figure 12 Quality of Food. ............................................................................... 32
Figure 13 Quality of Food. ............................................................................... 33
Figure 14 Atmosphere .................................................................................... 33
Figure 15 Service ......................................................................................... 34
Figure 16 Recommendation ............................................................................. 35
 44

Appendices

Appendix 1: Survey question ............................................................................ 45

 45

Appendix 1: Survey question

MOMO & MORE (MM) Nepalese Restaurant!

Restaurant Customer Satisfaction Survey.

Thank you for taking the time to complete this customer satisfaction survey. Your
feedback is important to us as we attempt to improve our services and the quality of the
products to better meet your needs. The survey should only take a few minutes of your
time, and your responses will be a great source for the company. Please answer the
questions as honestly and thoroughly as possible, as your input will help us to provide you
with better customer satisfaction. Thank you again for your participation.

1. What age group do you belong to?

o Below 25
o 26 – 35
o 36 – 45
o 46-55
o Above 55

2. Gender
o Male
o Female
o Other

3. How often do you visit Momo & More?

o once a week
o several times a week
o once a month
o Less often

4. The service provided by MM was great.

o Fully agree,
o Somewhat agree,
o Do not agree nor disagree,
o Somewhat disagree,
o fully disagree.

5. The service given by MM exceeded my expectations.

 46

o Fully agree,
o Somewhat agree,
o Do not agree nor disagree,
o Somewhat disagree,
o fully disagree.

6. The food was flavourful.

o Fully agree,
o Somewhat agree,
o Do not agree nor disagree,
o Somewhat disagree,
o fully disagree.

7. The quality of the food meets the price.

o Fully agree,
o Somewhat agree,
o Do not agree nor disagree,
o Somewhat disagree,
o fully disagree.

8. The quality of our food meets your expectations.

o Fully agree,
o Somewhat agree,
o Do not agree nor disagree,
o Somewhat disagree,
o fully disagree.

9. The atmosphere of the restaurant was friendly.

o Fully agree,
o Somewhat agree,
o Do not agree nor disagree,
o Somewhat disagree,
o fully disagree.

10. The service was quick.

o Fully agree,
o Somewhat agree,
o Do not agree nor disagree,
o Somewhat disagree,
o fully disagree.
 47

11. How likely would you be to recommend our restaurant to your family and friends?

o Very Likely
o Likely
o Not very likely,
o Not Likely at all,
o Neutral, No opinion.

12. How could we serve you better in the future?

12. What other feedback would you like to give us?

We thank you for your time spent taking this survey.