EFFECTS OF CUSTOMER FEEDBACK ON CUSTOMER RETENTION IN FASTFOOD RESTAURANT AT HANSTON SQUARE, PASIG CITY: BASIS FOR ENHANCING SERVICE QUALITY

Abstract

This study investigates the effects of customer feedback on customer retention at Jollibee Hanston Square, located on San Miguel Avenue, Pasig City. Anchored in Megha’s (2023) Customer Satisfaction Model, the study explores how service quality and customer experience influence loyalty. The research aims to assess feedback trends and determine how they can inform strategies for enhancing service quality to sustain customer retention. The study employs a descriptive quantitative research design. A total of 60 customers were selected using quota sampling. Data were collected through structured surveys, which focused on the frequency of customer feedback, key service quality indicators, and drivers of retention. The researchers used statistical tools such as weighted mean, Kruskal-Wallis test, Mann-Whitney U test, and t-tests to analyze the data and determine relationships between demographic variables, customer perceptions, and retention outcomes. The findings revealed that long wait times (77%) and staff attitude (28%) were the most commonly cited concerns. Respondents reported moderate satisfaction with their customer experience (mean = 3.24) and service quality (mean = 2.85). Statistical analysis showed no significant difference in feedback based on age (H = 1.95, p = 0.5813) or gender (U = 346.5, p = 0.3320). However, visit frequency had a significant effect on perceptions of service quality (H = 11.45, p = 0.0095), with frequent visitors expressing higher expectations, particularly regarding speed of service. A strong correlation between feedback and customer retention was established (z = 13.24, p = 0.00001), suggesting that addressing dissatisfaction can directly influence loyalty. Demographically, most respondents were female (65%) and aged 21–25 (33%), highlighting the importance of diversifying future respondent profiles. Based on the findings, the study proposes a three-part strategy to improve retention: (1) operational efficiency through digital ordering and staff training, (2) personalized service via loyalty rewards and tailored engagement, and (3) proactive feedback management through real-time resolution and monthly audits. The study concludes that aligning service protocols with customer expectations can significantly enhance retention. A hybrid approach that integrates technological solutions with empathetic staff interactions is recommended to address dissatisfaction effectively. These findings present a practical framework for fast-food establishments aiming to balance efficiency and personalization in high-demand urban environments. The study underscores the value of continuous feedback collection and responsive service innovations in retaining customers.