The role of customer orientation in creating customer value in fast-food restaurants

Abstract

PurposeScholars and professionals are interested in studying customer value in fast-food restaurants. Previous research on the customer value of fast-food restaurants mainly measured the dimensions and relationships of the customer value. However, the research has not examined a method for identifying sources of customer value in fast-food restaurants. Therefore, this study used customer orientation to find customer needs and generate customer value in fast-food restaurants.Design/methodology/approachThis study presents a conceptual framework with six constructs. A questionnaire was used to gather empirical data from fast-food restaurant customers in Greater Cairo, Egypt. The suggested framework was evaluated using confirmatory factor analysis, reliability and validity analysis, standardized path coefficients and regression-based moderation analysis.FindingsThis study found that proactive customer orientation has a substantial direct and positive impact on customer perceived value. Customer perceived value is also positively influenced by responsive and proactive customer orientations, with customer desired value change intensity acting as a moderator. Customer perceived value substantially impacts customer satisfaction, and the latter substantially affects behavioural intention.Practical implicationsThis study offers several suggestions for managers of fast-food restaurants on how to employ customer orientation to find current, latent and future customer desires to provide customer value.Originality/valueThis is the first research in the hospitality industry to demonstrate how responsive and proactive customer orientation may be used to recognize customer needs and provide the desired customer value.

Enhancing Digital Presence for Maximizing Customer Value in Fast-Food Restaurants

“…Customer value refers to a requirement of the customers to assess restaurant attributes, attribute performances, and usage results that help them achieve their goals and objectives in a particular context [20]. Creating customer value boosts profit, efficiency, market share, customer experience, customer satisfaction and loyalty, and minimizes errors [6]. Customer value can be understood in terms of tangible benefits, such as lower cost and higher quality, and intangible benefits, such as convenience and customer service [21].…”

“…To stay relevant in the emerging digital economy, restaurants must develop dynamic capabilities to swiftly invent, deploy, and modify business models [6,36,38]. According to Warner and Wäger [15], the very nature of the dynamic capabilities framework is altered due to three primary external factors (i.e., disruptive digital competitors, changing consumer behaviors, and disruptive digital technologies).…”

“…The list of fast-food outlets in Egypt was first looked through to find respondents. It was discovered that it is not an official list of fast-food establishments in Egypt [6]. Hence, managers of fast-food restaurants were contacted and asked if they would be willing to participate in the study.…”

“…Hence, restaurant managers should use their establishments' capabilities to effectively transform digitally to meet customer expectations and provide new customer value. Customer value is defined as the difference between the benefits a customer receives and the costs of obtaining benefits [6,7]. Previous research in the hospitality industry underlined the need to know what digital transformation entails; hence, research on digital transformation in hospitality has been diverse [8,9].…”

The impact of fast-food restaurant customers’ digital transformation on perceived value and well-being

“…costs or sacrifices to get it ;Zeithaml, 1988). Fast-food customer value research divided customer value into hedonic and utilitarian dimensions (Helal, 2022). Hedonic value is a comprehensive evaluation of the benefits and costs of activities such as leisure and escape.…”