International Business

Topics: Marketing, Restaurant, Customer retention Pages: 3 (683 words) Published: February 24, 2013
The restaurant image is recognized as an essential component of the customer Satisfaction and therefore it is a cornerstone of the success of the fine dining restaurants. There is a strong relationship between the restaurant success and the effectiveness of its image management. A fine dining restaurant, therefore, must Focus on its image using increased upgrades and improvements in décor, ambiance and interior design to attract customers and to differentiate itself from its competitors. Moreover the location and ambiance were similar in importance which suggests that customers are willing to travel extra distances to patronize full-service restaurants if excellent food and service are offered at a reasonable price. Restaurant’s architecture, decor, landscaping and site location can be utilized successfully to attract customers in a saturated market and against intensified competition. Customer loyalty leads to higher customer retention rate and to continuous business success even in situations where failure to satisfy customers would normally cause an early termination of business. Therefore the restaurant operation must focus not only on attracting first-time customers but also on developing long term relationship with customers. Customer loyalty allows increased price premium (competitive advantage) because brand loyal customers perceive some unique service and value in the brand that no other alternative can provide. The image of a restaurant consists of both tangible and intangible attributes. Tangible attributes are physical properties such as restaurant location, restaurant layout, price ranges, attractiveness of décor, and other qualities that the consumer can objectively compare it to competitors. Intangible attributes include such qualities as friendliness of restaurant personnel, and atmosphere.

For the newly opened fine dining restaurant, knowledge of its own image is of Great value. By...
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