Abstract
Customer satisfaction is one of the main topics in marketing that received large attentions from several scholars and practitioners. Satisfied customers tend to be the driving force for brand success and building sustainable competitive advantage; therefore, looking at the antecedents of customer satisfaction is deemed to be very important. This article is designed to examine the effects of social media marketing, price promotion, and corporate social responsibility on customer satisfaction in the fast-food industry. The data were collected using a survey instrument from 293 customers of international fast-food restaurants in east coast Malaysia. To analyze the collected data and reach at conclusions, SPSS and structural equation modeling (AMOS) were utilized. The findings revealed that social media marketing and price promotion have significant effects on customer satisfaction. Moreover, the findings revealed that corporate social responsibility has a significant positive impact on customer satisfaction.
Introduction
Customer satisfaction has been accepted as an important marketing factor that influences the success of an organization. The benefits of customer satisfaction are likely to appear in the long term through business sustainability and economic growth. To build greater customer satisfaction, firms should have the knowledge about the level of satisfaction that customers hold toward their products and services and provide them with differential values. Customer satisfaction was viewed in past research (Vavra, 1997) as the foremost important indicator for judging the quality of products/services being provided to consumers through fulfilling their needs and pleasing them. Furthermore, Homburg and Stock (2004) described customer satisfaction as the extent to which the purchased products or services meet or exceed consumers’ expectations. In general, customer satisfaction is one of the most commonly researched concepts in the field of marketing and is associated with two main facets: the assessments of customers toward the product or service quality and their feelings as a result of past experience with the service provider (Dapkevicius & Melnikas, 2009).
The intensely competitive environment existing in various sectors makes it vital to achieve customer satisfaction in order to survive in the long term. Obtaining customer satisfaction is considered nowadays as a key priority for brand success and performance. This is because customer satisfaction is the foundation for building and maintaining loyalty, trust, and long-term relationships with customers. Previous studies reported that customer satisfaction can be built through various marketing factors such as social media marketing and price promotion. However, the applications of social media marketing in business environment remains a salient challenge for several organizations since it is regarded as a new marketing communication strategy with a short history (K. Sano & H. Sano, 2016). Besides, the influence of social media marketing on the satisfaction of customers has not been fully examined in the literature. Similarly, in marketing literature, the causal effect of price promotion on customer satisfaction is also not well understood. Further, Chung, Yu, Choi, and Shin (2015) indicated that customer satisfaction can be built through corporate social responsibility (CSR) activities. The authors added that customer expectations toward CSR events lead to favorable perceptions of brand image.
However, despite the importance of the marketing factors in affecting customer satisfaction, there are few empirical studies that examined the linkages between them in the fast food-industry setting. While some researchers and practitioners have suggested that social media is an important tool in measuring consumer satisfaction, there has been little research on the impact of social media marketing tactics on customer satisfaction (Clark & Melancon, 2013). Furthermore, Jung and Yoon (2012) stated that there is insufficient research which examined the influence of CSR on customer satisfaction, particularly, in the food industry setting. Therefore, this article is designed to fill the existing gaps in the literature with regard to the linkages between social media marketing, price promotion, and CSR with customer satisfaction. To accomplish the objective of this study, the data were collected from various customers of the fast-food restaurants in east coast Malaysia. The next section presents the literature review for this study, and then the methodology and findings are presented. After that the discussion of results and conclusion are underlined in the last section.
Literature Review
Customer Satisfaction
The significance of customer satisfaction both practically and theoretically for continuous survival and growth of companies cannot be over emphasized. Without customer satisfaction, firms tend to face various issues and challenges with regard to maintaining their businesses. Several definitions of customer satisfaction exist in the literature. The most commonly adopted definition refers to the degree by which the products or services of a particular brand meet or exceed customers’ expectations. Another definition was proposed by Kotler (2000) as “a person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.” Similarly, Schiffman (2014) described satisfaction as an individual’s expression of happiness or discomfort based on his/her perceptions of product or service usage in relation to pre-established expectations. According to LaBarbera and Mazursky (1983), organizations can achieve customers’ satisfaction by fulfilling their needs and wants.
Ensuring customer satisfaction is one of the foremost important objectives for any organization in order to ensure its long-term success and survival. A high degree of customer satisfaction is therefore the primary step for enhancing customer loyalty and retention, reinforcing business stability, as well as the growth and development of a company. Additionally, customer satisfaction is the foundation for building trust and long-term relationships with a large number of customers. Nowadays, customer satisfaction has become a very important strategy in contemporary management of several companies, especially those which face new challenges in competitive marketing environment. Dukic and Kijevcanin (2012) confirmed that satisfied customers are likely to buy a company’s products/services more frequently as compared to those who have dissatisfaction based on a previous purchase experience. Therefore, building customer satisfaction should be considered as the main tool for competitiveness and business growth.
Customer’s satisfaction is a key marketing concept which measures the ability of products or services of a brand in meeting or exceeding the expectations of customers. Building customer satisfaction enables organizations to get several advantages such as obtaining better insights about consumer buying behavior (Seiders, Voss, Grewal, & Godfrey, 2005), increasing their sales and profit margins (Gomez, McLaughlin, & Wittink, 2004), and creating higher degrees of customer loyalty and retention in the long term (Bridson, Evans, & Hickman, 2008). Sivadas and Baker-Prewitt (2000) regarded customer’s satisfaction as a key determinant of an organization’s success and it has an influence on consumer behavior, repurchase intention, and word-of-mouth communication. Considering the importance of customer satisfaction in bringing various benefits for organizations as mentioned above, it has become vital to consistently look at the key drivers of this concept with respect to different industry contexts as consumer needs and expectations tend to change from time to time, especially with the rapid increase of technological advancements being incorporated on current products and services offered by various businesses.
Social Media Marketing
The recent development in communication technologies has changed the ways in which consumers interact with each other. This is particularly similar to how consumers collect and interchange necessary information about various products with regard to obtaining and consuming them. The rise of new social media has empowered consumers with several choices through active sharing of information on available products and services. For instance, new social media websites, blogs, and various types of digital communication channels have enabled consumers to actively engage with business stakeholders and large number of customers at any time regardless of their geographical location (Hennig-Thurau et al., 2010). These developments have provided valuable experiences and better lifestyle for customers. Edosomwan, Prakasan, Kouame, Watson, and Seymour (2011) defined social media marketing as a means of online communication through which individuals share and exchange information with each other irrespective of their locations. Social media was described in the literature as a set of channels and mediums of communication that are web based or operated online which were primarily designed for facilitating information exchange among individuals/users in an interactive way (Esu & Anyadighibe, 2014).
Social media channels have appeared as the foremost convenient digital communication mediums through which several consumers can learn, share information, and directly interact with business stakeholders (Chappuis, Gaffey, & Parvizi, 2011; Qualman, 2013). With the existence of social media, business marketers will have the opportunity to interact with their existing as well as potential customers using two-way communications to obtain rich and valuable insights quickly and at lower costs. Marketers have also realized the additional values of social media channels through easier collaborations with brand referrals and quality of information sharing (Hudson, Huang, Roth, & Madden, 2016). In addition to that, social media has enabled consumers to easily share important information about products or services offered by certain brands with their peers (Erdoğmuş & Cicek, 2012; Mangold & Foulds, 2009). Such exchanges have provided companies with several advantages represented by cost effectiveness, increased brand awareness, improved brand recognition, higher customer loyalty, and greater profit margins (Gunelius, 2010).
In general, social media has recently become very attractive for a number of business stakeholders including customers, not only due to its massive power in enhancing communication effectiveness, but also because it can help firms to build and sustain long-lasting relationships with their customers. Through the continuous development and wide-ranging applications of several social media channels, many businesses considered this way of communication as noteworthy prospect. They have also started to look for the best ways to utilize social media for sustaining their businesses, creating healthier relationships with their consumers, marketing their products and services, and developing reputable images for their brands to the public. To stay competitive in today’s challenging business environments, it requires firms to put prime emphasis on social media as a marketing strategy. Global companies employ several experts and consultants in social media to gain better recommendations on the contents and features of their offers before advertising them on social media to capture better brand loyalty and greater attractions from customers (Erdoğmuş & Cicek, 2012). Moreover, customers regard social media communications as a tool for them to engage at any time with various brands.
Effective implementation of marketing programs on social media can enable organizations to create beneficial relationships with their customers by increasing customer satisfaction and commitment as well as generating positive word of mouth. Greater support was reported by Clark and Melancon (2013), who found that marketing through social media has significant effect on customer satisfaction. However, despite the suggestions of some scholars and practitioners about the importance social media marketing strategy in influencing customer satisfaction, there is a little research in the literature which intended to test the causal effect of social media marketing strategy on customer satisfaction. Therefore, this article aims to provide a significant to contribution to the literature with regard to the linkages between social media marketing and customer satisfaction. Consequently, the following hypothesis is presented:
H1: Social media marketing has a significant effect on customer satisfaction.
Price Promotion
Price promotion is an important marketing factor, and it has been widely accepted as the most effective marketing communication tool to attract customers and influence their purchase behavior. Price promotion is widely accepted as a common marketing practice or tool for reaching larger number of customers through maximizing sales offers. The Chartered Institute of Marketing (2004) described promotional mix as group of techniques that a brand uses to inform customers about the benefits of its products or services. Price promotions as illustrated by Mullin and Cummins (2010) can include several forms, such as money-off coupons, buy one then get another one free, and get extra packs. In the beginning of the 1990s, a number of retailers relied on price promotion for influencing consumers who are price sensitive by showing them the reduction of prices on various items. Overall, business practitioners implement the promotion strategy in terms of incentives for attracting larger number of customers and increase their sales volumes (Cui, Yang, & Chou, 2016). Nowadays, customers who seem to be price sensitive are likely to be aware of the promotional offers and actively search for them on frequent basis (Yeshin, 2006).
By looking at past literatures, it shows that price promotion is one of the key strategies that are repeatedly used by several marketing managers to maximize their sales (Zoellner & Schaefers, 2015). Particularly, promotional sales which can be seen through various methods such as: price reductions, customer coupons, and displays are commonly used in different grocery shops around the globe. Considering the importance of price promotions in attracting customers and increasing sales volumes, it can be said that firms should rely on this strategy for better informing of their customers about the new products and services in order to strengthen their competitiveness and sustainability in competitive marketing environment. A number of previous studies examined price promotions and found that it had a positive influence on customer satisfaction (Bawa, Shameem, & Riswan, 2015; Haque, 2014; Marinescu, Mihai, & Toma, 2010). Similarly, Oghojafor, Ladipo, Ighomereho, and Odunewu (2014) reported that price promotion had a significant positive relationship with customer satisfaction. Based on the above discussion, the following hypothesis is proposed:
H2: Price promotion has a significant effect on customer satisfaction.
Corporate Social Responsibility
CSR has largely been emphasized in the business ground recently and is considered as an interesting and useful topic for several academicians and business practitioners. However, despite the importance and increasing number of studies on this concept, there is no general agreement on how it should be conceptualized (Green & Peloza, 2011). Past literature shows that there are several theoretical viewpoints and expressions for explaining the CSR concept (McWilliams, Siegel, & Wright, 2006). Among the prevailing views is the definition which was primarily proposed by Carroll (1991) as a concept that incorporates economic, ethical, discretionary, and legal anticipations of a society toward the company which can be viewed not only through the contributions for the sake of the business, but also for the welfare of the society at large. Similarly, CSR was conceptualized by Wood (1991) as an organization’s conformation to certain principles, policies, and procedures as they describe its responsibility toward the society. Mohr, Webb, and Harris (2001) also viewed CSR as an organization’s commitment to reduce or remove any unsafe practices and increase the beneficial contribution to the society.
CSR exists when an organization takes into consideration the welfares of the society through ethical and supportive business practices which can result in favor of various stakeholders, such as consumers, suppliers, workers, shareholders, and communities as well as the environment. This commitment is perceived to prolong beyond the legal obligation to conform to the legislation and views the organization as taking voluntarily responsibility to enhance the welfare of employees and individuals in the society (Sarbutts, 2003; Sweeney, 2007). In other words, CSR appears through an organization’s commitment to better serve the society or anyone who can be affected by its activities and social implements (Matten & Moon, 2004; Smith, 2003). Being social responsible is very important for giving support to the society rather than just for profit. For instance, protecting the environment and making efforts to solve social problems are key indicators of socially responsible organizations. This can also be expressed through adhering to ethical standards that can be described through dealing with various business stakeholders, such as retailers, consumers, and employees.
Past theoretical and empirical research has shown that a socially responsible organization is likely to be perceived positively by its consumers. This can be noticed either directly or indirectly through the influence on customer behavior which is represented by corporate identification. Certain researchers found that CSR had a significant effect on customer satisfaction (Al Humaidan, 2016; Alafi & Hasoneh, 2012; Shin & Thai, 2015). Moreover, Luo and Bhattacharya (2006) reported that CSR had a direct effect on customer satisfaction. Additionally, the investment in CSR initiative is regarded as the foundation for competitive advantage and as a means to improve financial performance (Porter & Kramer, 2006; Smith, 2003). Other scholars (e.g., Arıkan & Güner, 2013; Luo & Bhattacharya, 2006) declared that customers are likely to get higher satisfaction levels about the products and services of the firms that are socially responsible. He and Li (2011) also found that CSR had a positive impact on customer satisfaction. Based on the above discussion, the following hypothesis is postulated:
H3: Corporate social responsibility has a significant effect on customer satisfaction.
Methodology
This article is mainly aimed to test the effects of social media marketing, price promotion, and CSR on customer satisfaction in the fast-food industry. To achieve this objective, the quantitative methodology is considered the best approach for data collection. Therefore, a survey method was employed for gathering the data from 384 customers of international fast-food restaurants on the east coast of Malaysia. There are many previous researches which have also relied on survey instrument for gathering the data from consumers’ perspectives. Additionally, survey method is the appropriate technique for understanding the causal relationships or effects between variables. According to the recommendations of Sekaran (2003), the sample number chosen to conduct this study according to the population size is appropriate. Throughout data collection, a convenience sampling procedure was followed. The key benefits of convenience sampling appear through reaching the respondents easily at minimal costs and in shorter time as compared to other sampling techniques.
To develop the measurement scales of variables, a number of previous studies were utilized. For instance, customer satisfaction was measured using five items being adapted from the study of Canny (2014). To measure social media marketing, six items were adapted from the previous study of Schivinski and Dabrowski (2014). Furthermore, a five items scale was taken from the study of Villarejo-Ramos and Sánchez-Franco (2005) to measure price promotion. Finally, CSR was measured using a four items scale which was taken from the study of Canon and Wong (2014). On whole, the adapted items were measured on Likert scale which ranged from 1 = strongly disagree to 5 = strongly agree. After collecting the data, they were inserted into SPSS software and then processed for basic analysis and further testing using structural equation modeling (AMOS 18).
Analysis of Results
Out of 384 questionnaires being personally administered to the respondents, only 293 were filled and returned back. From these responses, it was found that almost 66.9 percent of the participants are females, while 33.1 percent of them are males. The descriptive results of respondents also revealed that 19.4 percent came from the age cluster of 16–25 years old, whereas 53.2 percent represented the age strata of 26–35 years. However, those whose ages fall in the age strata of 36–45 years accounted for 20.5 percent of overall participants, whereas, 6.9 percent were classified under the age category of 45 years old or more. With regard to the participants’ monthly income, the descriptive analysis showed that 16.3 percent of them receive less than RM500 per month, while 6.8 percent get RM500 to RM1000. Finally, the analysis showed that those whose monthly income ranged between RM1000 and RM3000 represented almost 21.2 percent of total participants, whereas those whose income is equal to RM3000 or above accounted for 55.7 percent (see Table 1).
Respondents’ Profile
The scales’ reliability was calculated on SPSS using both Cronbach’s alpha and the composite reliability test. Overall, the output showed that all of the scales achieved a Cronbach’s alpha value of more than 0.70. Specifically, the value of Cronbach’s alpha for customer satisfaction is registered at 0.889, whereas the value for social media marketing is equal to 0.897. Similarly, both price promotion (0.743) and CSR (0.794) achieved a reasonable value of Cronbach’s alpha. Likewise, the reliability of the scales was confirmed by calculating the composite reliability according to the generated results from AMOS. As shown in the analysis, all of the variables reported at an acceptable fit value of composite reliability in the range of 0.70 or above. Consequently, these results indicate that the scales used to measure each construct attained tolerable reliability values (Hair, Black, Babin, Anderson, & Tatham, 2010).
After establishing the reliability for the scales, the validity test was then conducted. This process was done by ensuring the existence of construct validity at first through estimating the confirmatory factor analysis. To establish the content validity, a thorough review of the literature was done earlier in order to obtain the scale for each variable, and then the developed questionnaire was shown to few experts from the industry. Additionally, convergent validity was established for all items by relying on their factor loadings. The results showed that the factor loadings for all items exceeded 0.50, and this indicates that the convergent validity for constructs is accomplished (Lin & Ding, 2006). Finally, to confirm the discriminant validity among all constructs, the loadings for residing items as well as their Cronbach’s alpha values were employed to compute the average variance extracted (AVE) which is important for this test. As mentioned by Fornell and Larckers (1981), discriminant validity exists when the values of square root of the AVE for each construct exceeds the correlation value among constructs in the same column and row. On whole, the results showed that the square roots of AVE’s value are higher than the inter construct correlations. Hence, the discriminant validity among constructs is achieved.
Moreover, this study relied on structural equation modeling, specifically on AMOS 18 in order to test the hypotheses pertaining to the effects of social media marketing, price promotion, and CSR on customer satisfaction. As it can be seen in Figure 1, the chi-square achieved a value of 255.254, with a significant probability that is less than 0.05, and this shows that the structural model has an explanatory power. Likewise, the value of goodness-of-fit index is equal to 0.837 which is more than the acceptable range of 0.80. The below figure also showed that the value of root mean square error of approximation is equal to 0.068 which is lower than 0.08. Finally, the values of comparative fit index and Tucker–Lewis index exceeded 0.90, and this means that they fall in the tolerable range. Generally, the above findings reveal that the structural model has achieved a satisfactory fit to the data.

To verify the hypotheses, the outputs of structural model were utilized. The findings presented in Table 2 indicate that social media marketing has a significant effect on customer satisfaction (β = 0.216, t-value = 2.094, p < 0.05); therefore, H1 is supported. The effect of price promotion on customer satisfaction is also positive and significant (β = 0.358, t-value = 3.012, p < 0.05), consequently, H2 is supported. The findings also confirmed that CSR has a significant positive effect on customer satisfaction (β = 0.538, t-value = 4.210, p < 0.05), therefore, H3 is accepted. Overall, social media marketing, price promotion and CSR explain 49 percent of total variance in customer satisfaction.
Results of Hypotheses
Discussion and Conclusion
This article aimed to examine the impact of three marketing factors, namely social media marketing, price promotion, and CSR on customer satisfaction in the fast-food industry. The findings revealed that social media marketing has a significant positive effect on customer satisfaction. Previous studies (Clark & Melancon, 2013; Sano, 2014) also found that social media marketing plays an important role in building customer satisfaction. This means that restaurant managers should utilize social media networks in order to reach their customers and interact with them for the purpose of building higher degree of satisfaction and responding to any useful suggestions that can result in favor of both stakeholders. Normally, a restaurant which has a strong presence on social media as part of its marketing plan is likely to be among the main competitive operators in the food industry. As customers nowadays are frequent users of social media, it can be said that social media marketing represents a strong platform for restaurants to share with their customers about superior discounts, special coupons, images of recent offers, and also keeping in touch with their customers to deliver better value than the competitors.
The outcomes of this study also showed that price promotion has a significant positive effect on customer satisfaction and this is consistent with past researches (Anwar, Hanif, Abbas, & Gill, 2015; Nuseir & Madanat, 2015; Oghojafor et al., 2014). Jensen and Jepsen (2008) also reported that incorporating different promotional techniques represent the key sources of direct and indirect tools of marketing which provide worthy opportunities for various customers to choose their desired products or services easily. According to Nurcahya (2014), price promotion is the furthermost commonly used instrument for attracting customers and increasing sales performance. Similarly, Witell (2011) affirmed that existing customers are likely to feel rewarded and appreciate the value of the offering when they receive price promotions. Considering the benefits of price promotions to customers, it can be said that providing promotional offers to customer is very important and a key successful strategy for maintaining favorable relationships with customers to keep their values in the long term.
The third objective of this study was to examine if CSR has any significant effect on customer satisfaction. The results confirmed that CSR plays a key role in establishing and enhancing customer satisfaction. Greater support was seen in previous studies (Arıkan & Güner, 2013; Chung et al., 2015; Hassan, Nareeman, & Pauline, 2013) which reported that CSR had a positive impact on the satisfaction of customers. These findings indicate that in order to succeed in the current business environment which is seen as competitive and challenging, it is important to put significant emphasis on social responsibility programs that are in favor of the society and customers at large. For instance, participating in community activities and providing food samples may result in positive perceptions of the local community toward the service provider. The result adds to the body of present knowledge in the literature about CSR and customer satisfaction as there are few studies of this nature in the fast-food sector of Malaysia.
Despite the significant contributions presented in this study with regard to examining the causal effects of social media marketing, price promotion, and CSR on customer satisfaction, it should be noted that there are some limitations which could be addressed in future researches. First, only three factors were used in this study to examine their effects on customer satisfaction. Thus, future studies may focus on other important factors in the restaurant industry, such as cultural and social factors. Future research may also address the proper tools that can be applied to improve CSR strategy that is aimed at improving customer satisfaction. Furthermore, the data in this study were collected using cross-sectional survey which was distributed on various customers of fast-food restaurants at east coast Malaysia. Therefore, future studies are recommended to adopt qualitative methodologies and expand the sample to other regions in order to enhance the generalizability of the results and reach at conclusions.
Footnotes
Appendix
Measurement Scales of Constructs
| Code | Construct/Items | Factor Loadings |
|
|
||
| SATISF1 | I am pleased that I have visited this restaurant. | 0.78 |
| SATISF2 | I really enjoyed myself at this restaurant. | 0.83 |
| SATISF3 | Considering all my experiences with this restaurant, my decision to visit it was wise one. | 0.82 |
| SATISF4 | The food quality and services of this restaurant fulfil my expectations. | 0.76 |
| SATISF5 | Overall, I am satisfied about this restaurant | 0.75 |
|
|
||
| SMM1 | The social media advertisements for this restaurant’s brand are frequently seen. | 0.75 |
| SMM2 | The level of the social media advertisements for this restaurant meets my expectations. | 0.73 |
| SMM3 | The social media advertisements for this restaurant are very attractive. | 0.87 |
| SMM4 | The social media advertisements for this restaurant brand perform well in comparison to those of other restaurants. | 0.69 |
| SMM5 | This restaurant’s brand offer extensive advertisement on social media. | 0.84 |
| SMM5 | The social media advertisements for the brand of this restaurant can be easily remembered. | 0.75 |
|
|
||
| PROM1 | I think the price deals offered by this restaurant are satisfying. | 0.65 |
| PROM2 | This restaurant offers price deals quite frequently. | 0.60 |
| PROM3 | Price deals offered by this restaurant help me control my purchase budget. | 0.68 |
| PROM4 | I think price deals for this restaurant are more frequent as compared to those in other restaurants. | 0.54 |
| PROM5 | The price deals are offered on the majority of food items in this restaurant | 0.56 |
|
|
||
| CSR1 | This fast-food restaurant is very concerned with the local community. | 0.69 |
| CSR2 | This fast-food restaurant is very concerned with environmental protection. | 0.62 |
| CSR3 | This fast-food restaurant is very concerned with customers’ benefits. | 0.64 |
| CSR4 | This fast-food restaurant actively participates in social initiatives | 0.87 |
