The impact of service quality on customer satisfaction and customer loyalty: An analysis of the KFC fast food chain company in Inner Mongolia in China

Variable	Category	Frequency (F)	Percentage (%)
Gender	Male	177	50.1
Gender	Female	176	49.9
Age	18 – 24	144	40.8
	25 – 34	108	30.6
	35 – 44	52	14.7
	45 – 54	29	8.2
	55 and above	20	5.7
Nationality	Mongolia	260	73.7
	China	69	19.5
	Korea	9	2.5
	Japan	7	2.0
	Others	8	2.3
Education	Below High school	46	13.0
	High school or equivalent	43	12.2
	Vocational degree	44	12.5
	College	89	25.2
	Bachelor’s degree	90	25.5
	Postgraduate	41	11.6
Profession	Employed	149	42.2
	Vocational job	33	9.3
	Unemployed	64	18.1
	Retired	14	4.0
	Student	72	20.4
	Homemaker	21	5.9
Yearly Income	Under RMB 20,000	95	26.9
	RMB 20,001 – RMB 30,000	47	13.3
	RMB 30.001 – RMB 40,000	49	13.9
	RMB 40,001 – RMB 50,000	35	9.9
	RMB 50,000 – RMB 70.000	33	9.3
	RMB 70,000 – RMB 90,000	21	5.9
	RMB 90,000 – RMB 110,000	45	12.7
	RMB 110,000 or above	28	7.9
Frequency of visits	Daily	37	10.5
	Weekly	48	13.6
	Monthly	61	17.3
	Every 3 months	64	18.1
	Every 6 months	60	17.0
	Once a year	49	13.9
	Never	34	9.6

Correlation of the study

Scales	1	2	3
Service quality	1
Customer satisfaction	0.786**	1
Customer loyalty	0.680**	0.753**	1

** Correlation is significant at the 0.01 level (2-tailed).

Regression analysis

Dependent variable: customer loyalty
Independent variables	β	t-value	p-value	Tolerance	VIF	Hypothesis
Service quality	0.993	14.516	0.000	0.452	2.212	H1 – Significant
Customer satisfaction	0.500	7.790	0.000	0.452	2.212	H2 – Significant

[i] Notes: Durbin-Watson =1.415, R2 = 0.482, F = 64.629, p ≤ 0.001

Regression analysis

Dependent variable: customer satisfaction
Independent variable	β	t-value	p-value	Hypothesis
Service Quality	0.8169	23.799	0.000	H3 - Significant

[i] Notes: R2 = 0.6174, F = 566.419, p≤0.001

Regression Analysis

Dependent variable: customer loyalty
Independent variables	β	t-value	p-value
Customer Satisfaction	0.624	10.323	0.000
Service Quality	0.260	4.141	0.000

[i] Notes: R2 = 0.587, F = 249.494, p ≤ 0.001

Regression analysis

Dependent variable: customer loyalty
Independent variable	β	t-value	p-value
Service Quality	0.7700	17.369	0.000

[i] Notes: R2 = 0.4622, F = 301.6823, p ≤ 0.001

Total, direct and indirect effects