Impact of Online Service Failure on Offline Customer Loyalty in the Restaurant Landscape of Pakistan

Abstract

The research paper is to identify the outcome that an online service failure has on offline customer loyalty in the restaurant landscape of Pakistan. The focus of the study will be on online customer failure but research on brick and click service mode will help in recognizes the effective aspects from offline stores to online ones. The study will also determine the negative aspect of online stores to offline ones. The research includes two independent variables and one dependent variable. Online service failure and online customer satisfaction are the independent variables and offline customer loyalty as the dependent variable. Background: This is one of few studies to explore the risk of brick and click service mode, and provide a clear understanding of the likely occurrence of online service failure and its impact on online customer satisfaction and offline customer loyalty. It extends prior research by exploring non-existence of negative perceptual effect from online service failure to offline customer loyalty in the short run, which contributes to cross-channel spillover effect in the integrated multi-channel context and brand building in the internet era. Methodology: The data is collected through an online platform known as Google forms with a questionnaire made on it. The total number of respondents was 300. The data collected was analyzed through software known as SPSS, and multiple statistical tools were applied such as Cronbach Alpha, correlation, Reliability, Hayes process and regression. Results: Analyzing the results of the data gathered through the regression, correlation, Hayes Process, and reliability statistics tests, it is identified that the online service failure does have effect on online customer satisfaction as well as the dependent variable which is offline customer loyalty?