Factors affecting customer retention in AJR’s luncheonette

Abstract

This study is conducted to determine the customer’s retention in terms of food quality, price, customer relation, and place. The researchers aimed to determine the significant difference on the level of customer’s retention when analyzed according to monthly income. This study is conducted using the slovin’s formula with the sample size of 50 respondents. The results of the study based on the data and findings determined that the food quality is 4.04 which is described as high. The measure embodied was observed in the majority of the cases. The significant difference on the level of customer retention when analyzed according to monthly income is tested below 3.74 level of significance. The researchers conclude that all factors investigated in the study have received a positive mark by the respondents with overall mean 3.89 which is described as high but it can be noticed that customer relation receives the lowest mean among the four indicators. In business, no matter how good the quality of the product, the place and etc. customer relation is always on the top. The researchers recommend to conduct a survey annually so that they would know their advantages and disadvantages towards the four factors in this research.