Socio-demographic factors as predictors of customer loyalty to fast food restaurants in Delta State, Nigeria

Customer loyalty is a competitive tool and a major driver of survival and success in many retail business organizations. Improvement in social and economic development in Delta State, Nigeria the past decade has resulted in rapid expansion in the fast food restaurants (FFRs) industry. However, the emergence of new operators has made competition so intense that operators are seeking measures to expand their market share and retain existing customers. The study examined socio-demographic factors that influence customer loyalty to fast food restaurants (FFRs) in Delta State, Nigeria. Primary data for this study were obtained from a survey of a cross-section of customers of FFRs in five (5) urban centres in with the aid of a structured questionnaire. 200 copies of the questionnaire were administered to customers in 10 FFRs that were randomly drawn from a list of 13 major restaurants operating in the State. The findings showed a mean age of 31 years for customers; 62.3% of them were single; while the average duration of patronage is 17 months. Multiple regression results indicated that monthly income, dining frequency, customer satisfaction, perceived value, service and food quality have positive and statistically significant effects, with food quality as the dominant predictor of customer loyalty; but the influence of educational status was negative. Significant differences existed in customer loyalty among the FFRs. The authors recommend that restaurateurs should improve on the quality of food and services in order to win the loyalty of their customers and remain in business.