The Effect of Service Quality and Perceived Value on Customer Satisfaction, Loyalty and Retention in Restaurants of North Cyprus

ABSTRACT: The purpose of the study is to introduce factors which are important in service sectors for managers and those who intend to be successful in customer retention. Upon to these facts we analyze the steps in order to reduce the risks of customer defection, then present the main factors that should be undertaken to increase customer satisfaction, customer loyalty and customer retention. North Cyprus is known as a fast growing country. Professional service restaurants started to grow in the last few years. Many famous national brands have been taken place with special service in this region, but some restaurants failed to create a desirable service. We tried to find the components of these failures and define the salvageable solutions to create new ways and strategies to help the service sectors remain alive in fast growing and competitive environment. According to findings we realized that the value is the main factor which plays key role in satisfaction. Value acts as an intersection of retention module, that will be acquired through plausible service in restaurant and directs the path to satisfaction, loyalty and retention. The findings of this research indicates that lack of value creation in service sector possibly fails the service provider to retain customer. We mean value as an intention of the customer toward the service he/she receives. in this research we mean to mention to aspects of value creation without considering high cost solutions. Because value can be created through a single act of service provider. Value is the none cost interaction between the customer and service provider. Key Words: Competitive environment, value creation, service restaurants. …………………………………………………………………………………………………………………………