FACTORS THAT INFLUENCED THE DECISIONS OF CUSTOMERS TO DINE AT SELECTED RESTAURANTS IN BANGKOK, THAILAND by Sarinee Threevitaya A Research Paper Submitted in Partial Fulfillment of the Requirements for the Master of Science Degree in Hospitality and Tourism Approved: 2 Semester Credits __________________________ Research Advisor The Graduate School University of Wisconsin-Stout August, 2003 ii The Graduate School University of Wisconsin Stout Menomonie, WI 54751 ABSTRACT Threevitaya Sarinee Factors that influenced the decisions of customers to dine at selected restaurants in Bangkok, Thailand Hospitality and Tourism Dr. Sharon Giroux August/2003 80 Pages American Psychological Association, 5th edition Although the restaurant industry was one of the biggest businesses in Bangkok-Thailand, there was only a small number of research studies that had been conducted in order to determine customer wants and needs. Therefore, the purpose of this study was to identify the determinant factors that influenced the decisions of customers who dined out at selected family restaurants in Bangkok-Thailand. The sample population of this study included customers of three selected restaurants in Bangkok, Thailand. The total number of the sample was 150 with almost an equal number of male and female respondents. There were 50 people in each restaurant. The data was collected i ii through the use of surveys from December 2002 to January 2003. Permission had been obtained from the three restaurant owners prior to the survey. A questionnaire using a 5-point Likert Scale and some open-ended questions was administered to customers who volunteered to participate in the study. Factors of customer importance when dining out were: (1) Hygiene and cleanliness, (2) Quality of the food, (3) Taste of the food, (4) Freshness of the ingredients, (5) Value for the money, (6) Price, (7) Service, and (8) Atmosphere of the restaurants. The results of this research study generally concurred with the National Restaurant Association’s research about consumer expectations with regard to dining at family restaurant (1983). In conclusion, recommendations included: the restaurant owners should view hygiene and cleanliness as their major concerns. They should keep their dining area, kitchen area, and restroom area clean. The quality of the food, including the taste of the food and freshness of the ingredients, should be maintained at the highest standard. In addition, price of the food should be reasonable and discounts may be used in order to promote the restaurants to a new customer market while also encouraging the loyalty of current customers. Restaurant operators should also train their staff for the most efficient service as well as being friendly and attentive. Furthermore, iv the restaurants should provide a warm, relaxing, and welcoming atmosphere. The restaurant owners should consider consulting with professional interior designers for the right decoration. Moreover, the restaurant operators should also continuously conduct surveys to determine the needs and expectations of their customers. v ACKNOWLEDGEMENTS I would like to express my deepest appreciation to my thesis advisor, Dr. Sharon Giroux for her advice and guidance throughout the development of this thesis. Many thanks go to Miss Puttithorn Udomphong and Miss Nawaporn Inkaew for their concern and assistance. Thank you for all your time and kindness. Special thanks to Lee, who is always beside me, and has faith in me. Thank you for your love and support. You are the best. I am most thankful to my beloved family, especially my mom and dad for their love and encouragement. I am so fortunate to be your daughter. I would like to extend my love to my two sisters, p’Aor and p’Tik. I appreciate your love and caring. I love you all. Sarinee Threevitaya July 2003 vi TABLE OF CONTENTS .......................................................... Page Abstract.................................................... ii List of tables.............................................. ix List of figures.............................................. x CHAPTER ONE: INTRODUCTION Overview of the study........................................ 1 History of food service ..................................... 1 The restaurant business ..................................... 2 Consumer behavior ........................................... 3 Need for the study........................................... 4 Statement of the problem .................................... 5 Research objectives ......................................... 5 Definition of terms and abbreviations ....................... 5 Limitations of the study .................................... 6 CHAPTER TWO: LITERATURE REVIEW Introduction ................................................ 8 Food trends in the United States of America ................. 9 Consumer behavior .......................................... 10 Motivation in consumer behavior ............................ 12 Maslow’s hierachy of needs ............................ 13 Murray’s theory of human personality .................. 14 Family restaurants ......................................... 17 Restaurant marketing ....................................... 17 v ii Bangkok-Thailand ........................................... 23 History of Thai cuisine .................................... 24 Conclusion.................................................. 25 CHAPTER THREE: METHODOLOGY Sample selection ........................................... 27 Survey instrument and pilot test ........................... 27 Data collection ............................................ 29 Data analysis............................................... 30 Limitations ................................................ 30 CHAPTER FOUR: RESULTS Introduction ............................................... 32 Demographic profile......................................... 33 Summary..................................................... 37 The factors that influenced the decisions of patrons to dine at selected restaurant in Bangkok, Thailand ................... 38 Summary .................................................... 41 The three most important factors that customers in Bangkok considered when making their decisions to dine at selected restaurants ................................................ 42 Summary .................................................... 45 Analysis of responses to the six open-ended questions....... 45 Summary .................................................... 49 vi ii CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS Introduction ............................................... 50 Re-statement of research objectives ........................ 50 Conclusions................................................. 50 Recommendations for family restaurant operators ............ 58 Recommendations for further study .......................... 59 REFERENCES ................................................. 60 APPENDIX A.................................................. 65 APPENDIX B ................................................. 66 APPENDIX C.................................................. 67 ix LIST OF TABLES No. Title Page 1. Demographic Profile of Respondents by Gender.............. 34 2. Demographic Profile of Respondents by Age..................34 3. Demographic Profile of Respondents by Level of Education...35 4. Demographic Profile of Respondents by Occupation...........35 5. Demographic Profile of Respondents by Level of Total Annual Household Income...........................................36 6. Number of Respondents by Frequency Visits at Sit-Down Restaurants................................................37 7. Mean Scores of Importance of Restaurant Characteristics from the Respondents’ Perception................................39 8. Mean Scores of Importance of Various Influences on Respondents................................................41 9. Top Three Characteristics when Dining at a Restaurant......43 10.Top Three Influences when Dining at a Restaurant...........45 11.Important Characteristics when Dining at the Restaurants...47 x LIST OF FIGURES No. Title Page 1. Needs Related to Consumer Behavior....................... 13 2. Maslow’s Hierachy of Needs............................... 14 3. Murray’s Theory of Human Personality..................... 15 4. Marketing Management Cycle............................... 19 5. Service Quality Process.................................. 21