Service Quality and Customer Satisfaction: Empirical Evidence and Application of Strategic Tools

The purpose of this study is to ascertain the influence of service quality delivered on the customer satisfaction of Y Restaurant in Shah Alam. Utilizing the survey approach, this study consisted of 162 respondents. This study has conducted correlation and multiple regression analysis to ascertain the determinants of service quality that impact customer satisfaction at the restaurant. The strategic tool of Competitive Profile Matrix (CPM) has been used in determining the competitive position of the restaurant relative to key competitive restaurants in Shah Alam. Besides, SWOT analysis also has been used as the basis to formulate strategies to improve the service quality and customer satisfaction. From the findings, it has been found that the dimension of ‘empathy’ emerged as the most critical indicator of SERVQUAL followed by ‘assurance’, ‘tangibility’ and ‘responsiveness’. Therefore, recommended strategies include the improvement of empathy dimension at Y Restaurant Shah Alam through training and development efforts. As one of the famous brands in Malaysia, it is vital that service quality at Y Restaurant is upheld in order to ensure profitability and long-term business wealth.