Effect of Aroma on the Chinese Restaurant Industry Dissertation

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Introduction

Abstract

It is well known that there is a worldwide boom in tourism and this has resulted in an upsurge in the restaurant industry. Today, restaurants have a lot of opportunities but simultaneously, the competition has also become greater and stiffer. In order to grab such opportunities and excel, the restaurants have to be distinctive in the food that they serve. The aim of this dissertation is to ascertain the importance of aroma in food being served in restaurants in China and the impact that it has on the customers. The study will be more specific to Xintiandi Fountain restaurant in Shanghai, China. Due to the intense competition, the management has to formulate its own distinctive aroma that may help the restaurant to retain its customers and simultaneously, attract new ones. Due to numerous options in restaurants available with customers, unless there is something special at any particular restaurant, the manager is ought to face a tough time in retaining the customers. This dissertation includes a major survey done in order to get feedback from the general public regarding the importance of aroma in food and the impact that it has on the customers and the business. The results clearly showed that food aroma is a crucial factor for customers to decide on the restaurant to be visited. Good food aroma is even capable of developing emotional feelings and loyalty within the customers. So it can be said that good food aroma has the capacity to have an encouraging effect on the business profitability of a restaurant. The study and the consolidated data can be of great help to the restaurant industry. The management can take heed and formulate cost effective food aroma to further popularise the restaurant and thus increase the restaurant’s revenue.

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Background

The importance of service-encounter performance as a fundamental component towards the realization and reinforcement of customer loyalty and customer satisfaction paradigms has been proposed in the literature for more than half a century (Adebanjo, 2001). This relationship has elicited great interest in the antecedents of service-encounter performance from both the academic and managerial spheres (Jani & Han, 2011), understandably driven by the impetus for organizations to find ways to not only keep and attract new customers but also to remain competitive and profitable in the increasingly shifting business environment of the 21st century (Walter et al, 2011; Namkung & Jang, 2008). As customers now have more information available, are more elastic in their purchasing and consumption patterns, and have more choices than before, it is becoming increasingly imperative for service organizations to put in place proactive strategies with the aim to win the loyalty and satisfaction of customers, as well as influence their engagement decisions (Walter et al, 2011; Olsen & Aaslyng, 2007).

Extant research demonstrates that restaurants are increasing using strategic designs known as servicescape for purposes of enhancing the ‘customer experience’, encouraging loyalty intentions and repeat customers, as well as stimulating competitiveness and profitability (Rosenbaum & Massiah, 2011). Bitner (1992) cited in Harris & Ezeh (2008) first coined the term ‘servicescape’ to denote “…the design of the physical environment and service staff qualities that characterize the context which houses the service encounter, which elicits internal reactions from customers leading to the display of approach or avoidance behaviours” (p. 392).

The perception that aspects of servicescapes, such as ambience, lighting, music, dining layout, and so on, may have an overbearing influence on service-encounter performance and customers’ loyalty intentions is an established one in a broad scope of contexts. Indeed, the general consensus among academics and practitioners is that service settings arouse emotional responses which not only serve as important benchmarks to service-encounter performance (Jani & Han, 2011), but also lead consumers to either desire to maintain their association with a particular service provider, or to terminate patronage (Harris & Ezeh, 2008). Despite the apparent importance of servicescapes in influencing customer decisions to engage with, or disengage from, a particular service provider, remarkably little has been written on the intangible aspects of servicescapes in influencing customer decisions and, ultimately, customer loyalty and satisfaction (Craven, 2002). Consequently, the present study has the major purpose of increasing the current level of theoretical understanding concerning the influential role played by intangible servicescapes, particularly food aroma, in the determination of major customer decisions such as customer satisfaction, loyalty intentions and retention in the restaurant industry in China.

A strand of existing literature (e.g. Berry et al, 2006; Smith & Colgate, 2007; Topco & Uzundumlu, 2009) reveals that the level to which service providers in the restaurant industry are able to retain their customers while developing mechanisms to attract new ones directly influences the profitability and performance of these ventures. Likewise, there exists compelling evidence that service-encounter performance directly influence customers’ perceptions, emotions and feelings towards a particular service provider and, in turn, their engagement with the establishment (Teng & Barrows, 2009; Craven, 2002). But despite the apparent importance of these variables on customer satisfaction, loyalty and retention, there remains a surprising lack of empirical research addressing how food aroma, as a critical variable in restaurant settings, could be used to trigger positive customer outcomes, particularly in moulding positive perceptions, emotions and behavioural intentions, which may be invariably used by service providers to enhance and reinforce customer satisfaction, loyalty and retention. The present study also aims to address this challenge, with reference to the restaurant industry in China.

The Study Context

Available literature demonstrates that China’s restaurant industry has experienced continuous growth since the early 1980s, driven primarily by a rapid shift in government’s policies towards capitalism (Magnini & Ford, 2004), increase of inbound business travellers and opening up of more attractions for sightseeing (Pine et al, 2000), and a rapid growth of the Chinese economy, which have inarguably led to rapid urbanization and increasing disposable income among the world’s largest population (My Decker Capital, 2010). Indeed, a Euromonitor report cited in My Decker Capital (2010) reveals that “…the Chinese consumer food services market has grown from RMB1, 106.0 billion ($133.6 billion) in 2004 to RMB1, 996.6 ($294.4 billion) in 2009, representing a compound annual growth rate, or CAGR, of 12.5% over the five-year period” (p.3). Despite the unprecedented growth in China’s restaurant industry, Pine et al (2003) reports that intense competition coupled with flexible customer choices continue to complicate matters for the service providers, precipitating a scenario where they are obliged to continually employ new and innovative strategies intended to positively influence customer decisions and reinforce customer satisfaction, loyalty and retention.

The present study utilizes primary data collected from Xintiandi Fountain, a restaurant facility located in Shanghai, China, to understand the prevailing dynamics of food aroma and its influence in customer decisions and positive customer outcomes, particularly in critical areas of customer perceptions, emotions and behavioural intentions. According to ehotelier.com (2007), the Fountain restaurant is purposely designed to be an epicurean restaurant where locals and the corporate world “…drop in from early morning to late supper for comfort foods in comfy surroundings…Fountain adjusts its menu and ambience throughout the day but keeps its focus on serving swift, wholesome and affordable fare that caters to today’s hectic lifestyle” (para. 3). This restaurant forms the context of this study, with particular focus being trained on identifying how food aroma is proactively used to deliver customer-oriented outcomes such as satisfaction, loyalty and retention, as well as organizational-oriented outcomes such as profitability and competitiveness.

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Problem Discussion

Restaurant managers are increasingly finding themselves in an intricate web of challenges, not only in China but also globally, in large part due to shifts in consumer consumption patterns and customer demands, cut-throat competition, globalisation, unfavourable legal restrictions, changing demographics and managerial incompetence, among other factors (Parsa et al, 2005). To effectively circumvent these challenges, the management must develop and implement strategies and policies that centre on the customer as the main consumer of services provided by restaurants. Such an orientation demands that the restaurant management make strategic choices that not only enlighten them about customer choices and decisions, but also generate sustainable competitive advantage and add value to their respective restaurants.

This issue is best exemplified by Walter et al (2010), who suggest that “…the choice of consumers today is not static; rather they test a variety of goods and services in order to achieve different experiences, their choice varies with context and they often use different decision strategies” (p. 237). To maintain profitability and competitiveness, therefore, the management of service organizations not only need to understand the uniqueness of their customers in terms of what variables stimulate positive decisions and choices, but also the factors or variables that contributes to the value.

Consecutive studies have demonstrated that the immediate physical service environment, also known as servicescape or atmospherics (Harris & Ezeh, 2008), influences the level of service quality, which “…has been conceptualized to include the tangible and intangible elements most important to consumers, [and is] linked to customer satisfaction and loyalty as well as business performance and loyalty” (Kincaid et al, 2010 p. 210). As noted by Rosenbaum & Massiah (2011), the stimuli elicited by servicescapes have the capacity “…to enhance or constrain employee and customer approach/avoidance decisions and to facilitate or hinder employee/customer social interaction” (p. 471). However, remarkably little has been written to date on how food-related factors such as aroma and colour could be used to enhance customers’ experience and, consequently, their decision-making faculties in critical variables such as customer satisfaction, loyalty and approach/avoidance behaviours. Indeed, Harris & Ezeh (2008) notes that the bulk of literature in servicescapes concentrates more on ambient conditions, spatial layout and functionality, as well as other variables such as signs, symbols and artefacts, while availing minimal discourses on the influence of food-related factors on customer’s decision-making and customer’s service experience.

The present study therefore aims to remedy the specified dearth in literature by increasing the current level of theoretical understanding concerning the influential role played by food aroma in the determination of major customer decisions, including satisfaction, loyalty intentions, and approach/avoidance behaviours. The study will also attempt to evaluate how restaurants could effectively use food aroma as a crucial servicescape concept to enhance competitiveness and profitability. To date, relatively few studies have been conducted to investigate the impact of servicescapes on organizational profitability and competitiveness (Harris & Ezeh, 2008), with Rosenbaum & Mesiah (2011) noting that some environmental aspects of servicescapes such as food aroma are characteristically ignored in extant conceptualizations aimed at investigating the effects of the physical environment on the organization’s competitiveness and profitability. It is these gaps in knowledge that the present study seeks to fill.

Aim and Objectives of the Study

The general aim of this study is to critically evaluate customer responses to food aroma in the restaurant industry in China. The following forms the specific objectives of the study:

  1. To critically investigate the effects of food aroma on customers’ cognitions, perceptions, emotions, and behavioural intentions;
  2. To critically investigate how food could be used as a form of servicescape intended to enhance profitability and competitiveness in the restaurant industry;
  3. To critically evaluate if food aroma in a restaurant setting could be used as an intangible tool for customer satisfaction, loyalty and retention, and;
  4. To formulate conclusions and recommendations on how the restaurant industry in China could employ food aroma as a form of servicescape to boost favourable customer responses.

Key Research Questions

Based on the stated aim and objectives, the present study aims to address the following research questions:

  1. How is food aroma related to the cognitions, perceptions, emotions and behavioural intentions portrayed by customers in a restaurant setting?
  2. What is the relationship between enhanced service experience resulting from food aroma and the profitability and competitiveness of service businesses in the restaurant industry?
  3. Can food aroma be used in the restaurant industry as an effective tool to elicit positive customer responses, particularly in achieving higher levels of customer satisfaction, loyalty and retention/approach decisions?
  4. What are the alternatives being sought by service businesses in the restaurant sector in China and elsewhere towards elevating the aspect of food aroma as a vital ingredient to the achievement of positive customer responses?

Significance of Study

The value if this study stretches beyond the boundaries of achieving positive organizational outcomes, such as profitability and competitiveness, into the popular discourses of developing ways and means through which customer value could be increased. Consequently, the present study can be perceived as a sharp and focussed reaction to the demands of service organizations operating in the restaurant industry, which are typically faced with the daunting task of developing and implementing strategic choices aimed at solidifying customer satisfaction, loyalty and retention, as well as leveraging competitiveness and profitability. The negative consequences associated with these issues have forced many restaurants to close down, while many others use immeasurable financial and material resources to relocate to areas perceived to be conducive to business (Parsa et al, 2005). The findings of this particular study go a long way to availing to service businesses a new strategic tool that could be used to facilitate positive customer responses, in addition to the maintenance of profitability and competitiveness.

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In summary, this study provides a critical mass of knowledge that could profoundly assist service organizations in the restaurant sector to provide a more fulfilling service experience for their customers through the use of intangible and less costly aspects of servicescape such as food aroma. More importantly, the study casts a wide net towards understanding the influential role played by food aroma in the determination of major customer outcomes, including customer satisfaction, loyalty intentions and retention. This knowledge is critical if organizations are to remain competitive in the ever competitive and increasingly shifting business environment of the 21st century (Swanson & Davies, 2003).

Structure of the Dissertation

The above forms the introduction section of this study, which has laid the groundwork for the subsequent sections. This section has demonstrated the direction that this study takes by discussing the problem, stating the research aim and objectives, and discussing the rationale of the study. The following section will revolve around critically discussing the available literature on customer responses to food aroma, with the view to understand how the intangible aspect influences customer decisions and outcomes. The attribution theory will receive wide coverage in this section with the view to understand how food aroma influences the customers’ causal inferences and behavioural outcomes. The methodology, the third section, focuses on discussing the study design, population and sample, data collection techniques, and how the data for this study has been analyzed. The results are presented in section four, under findings, analysis and discussion. This study concludes by outlining some conclusions, recommendations and future research areas in section five.

Literature Review

Introduction

This section aims to, among other things, critically review extant literature on how tangible and intangible aspects of servicescapes influence customer engagement decisions and organizational outcomes in the restaurant industry. In particular, the review will focus attention to understanding how servicescapes and scents and sensory marketing, in the broader sense of the concepts, influence customer responses, including their cognitions, perceptions, emotions & behavioural intentions. The attribution theory will be evaluated to provide the analysis with a theoretical direction towards understanding the broad concepts of service encounters and customer responses. Additionally, this section will analyze existing literature on how servicescapes influence organizational profitability and competitiveness, as well as customer satisfaction, loyalty and retention. It is important to note that due to the paucity of literature on intangible aspects of servicescapes, such as food aroma (Berry et al, 2006), the review will assume a broader scope to encompass tangible as well as intangible aspects of servicescapes and how they influence customer responses and organizational outcomes.

The Restaurant Industry in China

China, unlike any other nation globally, has witnessed unprecedented growth in the hotel and hospitality industry in recent years, driven primarily by the rising number of tourists and foreign business travellers visiting the country (He et al, 2011). Citing statistics released by the China National Tourism Administration (CNTA), Lee (2002) notes that “…more than 83.4 million tourists visited China in 2000 – a 14.7 percent increase from 1999” (p. 4). Positive interventions from the Chinese government and capital injections from Western investors have seen the number of hotels rapidly increase from a mere 203 facilities in 1978 to 5,201 in 1997, representing an annual increase of 18.61% (Pine et al, 2000).

The consumer food industry in China has not been left behind in leveraging opportunities to take advantage of the unprecedented growth. As noted in My Decker Capital (2010), many restaurants in China are taking advantage of the country’s robust economic growth, rapid urbanization, increasing disposable income among China’s huge population of 1.3 billion people, increasing working population, as well as changing lifestyles and consumption patterns, to leverage competitiveness and profitability.

My Decker Capital (2010) observes that the Chinese restaurant sector “…can be segmented by restaurant formats (full-service restaurants, quick service restaurants, cafes and bars, street stalls and kiosks and others) or by types of cuisine (Asian, Western and others), as well as by operating models (chain and independent)” (p. 5). China’s quick service restaurant sector is growing at a faster rate than full-service restaurants, with statistics released by Euromonitor cited in My Decker Capital (2010) demonstrating that the sector grew from RMB253.8 billion in 2004 to just about RMB470.6 billion ($69.4 billion) in 2009. In spite of this growth, a strand of existing literature (e.g. Tsang & Qu, 2000; Magnini & Ford, 2004) shows that the standard of quality of services provided by most Chinese restaurants are still far below international standards, primarily because of poor language and communication skills, poor sanitation and lack of property maintenance, unqualified employees, and discrepancy in expectation of service quality between foreigners and local service workers. Indeed, Magnini & Ford (2004) are of the opinion that Chinese service workers perceive things in a different way from westerners.

The Concept of Servicescapes

Bitner (1992) cited in Harris & Ezeh (2008) first coined the term servicescape “…in reference to the design of the physical environment and service staff qualities that characterize the context which houses the service encounter, [and] which elicits internal reactions from customers leading to the display of approach or avoidance behaviours” (p. 392). A strand of existing literature (e.g., Walter et al, 2010; Rosenbaum & Massiah, 2011; Harris & Ezeh, 2008) demonstrates that the physical environment is fundamentally important for the formation of customer experiences and the generation of either favourable or unfavourable customer responses since most services occur in an environment, where the customer is in attendance during the entire – or at least parts of – the service co-creation process. Rosenbaum & Massiah (2011) notes that the stimuli elicited by servicescapes “…are characterized as being organizationally controllable and able to enhance or constrain employee and customer approach/avoidance decisions and to facilitate or hinder employee/customer social interaction” (p. 471). One of the basic conceptualizations of servicescapes is the fact that consumers respond to a variety of physical environments in a holistic approach, after evaluating the effects of all the distinct stimuli present. It is also suggested in literature that both tangible and intangible components are indispensable in the creation of servicescapes, with Kotler (1973) cited in Harris & Ezeh (2008) arguing that “…the atmosphere of a particular set of surroundings is describable in sensory terms, which include perceptions that are visual, aural, olfactory and tactile” (p. 392). The present study deals with the element of food aroma, included in the olfactory perception of the physical environment. Bitner (1992) cited in Walter et al (2010) suggests that the servicescape framework, which receives major theoretical support from the literature in environmental psychology, is the man-made physical surrounding that acts to invoke in customers a desire to stay in a particular service environment and in employees a willingness to continue working in this environment.

Traditionally, academics and practitioners suggest that the main fulcrum for the servicescape framework takes into consideration three environmentally-related facets, namely “…ambient conditions (including factors affecting the five senses), space and function (including arrangement of details in the room and their ability to facilitate the customers’ purpose), and signs, symbols and artefacts (explicit or implicit signals about the company that influence the customer” (Walter et al, 2010 p. 240). These dimensions, as noted by Rodgers (2010), cause differential cognitive, affective and physiological impacts on consumers, ultimately triggering approach or avoidance behaviour towards a particular service establishment.

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Scents & Sensory Marketing

Extant literature demonstrate that some aspects of the food, such as taste, aroma and tradition of service, may be used by service establishments to provide an added set of benefits along with the core product and/or service offerings, which acts to surprise the customer, leaving him/her captivated with a favourable and enticing attitude regarding the service establishment (Goswami & Sarma, 2011). These authors further posit that hotels and restaurants are increasingly using scents and food aromas as marketing tools aimed at fulfilling their quest for higher profitability and surviving. The main target of such marketing, according to Lindstrom (2005), is to facilitate the creation of a pleasant atmosphere for customers with the view to encourage them to stay in the restaurants as long as possible, raise their food consumption patterns, and encourage loyalty and/or repeat behaviour. Iop et al (2006) are of the opinion that this form of marketing provides organizations with an enabling environment to maximize product and service profitability. Emsenhuber (n.d.) is of the opinion that advertisers and marketers are increasingly developing new strategies, such as scent marketing, with the intention to persuade consumers of their goods and services. According to this author, some consumption raising instruments such as scents have the capacity to “…manipulate consumer behaviour by unconsciously raising emotions and consequently manipulating purchase decisions” (p. 1). Extant research demonstrates that these instruments have the capacity to stimulate the customers’ olfactory perception, hence permitting a very subliminal communication between them and their immediate environment because of a direct association that exists between the olfactory system and the customers’ emotional centre (Emsenhuber, n.d.). This implies that the perception of scents and food aromas virtually occasions emotional reactions amongst restaurant customers. Emsenhuber’s view is reinforced by Lindstrom (2005), who observe that “…almost our entire understanding of the world is experienced through our senses…Our senses are our link to memory and can tap right into emotion” (p. 85). Depending on the reactions to the scents, customers may either avoid a particular service establishment or reinforce repeat behaviour (Iop et al, 2006).

Recent industry trends, according to Lindstrom (2005), indicate that customers in the hotel and restaurant industry are not only becoming more demanding but are developing more discriminating practices, particularly in relation to the food’s taste preferences and smell requirements. Indeed, there exist compelling evidence to the effect that the smell elicited by the food served in restaurants to a large extent influence customers’ perceptions and choices. A study on the environmental surroundings that stimulated customers’ food choices, cited in McAtamney & Annett (2009), found that the perception of food can be influenced by a multiplicity of stimuli, including temperature, ambience, odour, distractions, level of service, wait time, as well as the colour and taste of the food. Lindstrom (2005) notes that the customer’s level of appetite is geometrically influenced by the smell of food, not mentioning that the odour produced by certain foods may serve to discourage consumption patterns. These particular authors cite scientific studies which suggest that 75% of our emotions are generated by odour, and hence providing the impetus for service organizations in the hotel and hospitality industry to employ natural or artificial smells as critical techniques of olfactory or scent marketing.

To remain competitive and profitable, Rodgers (2008) observes that restaurant employees must develop the capacity to create scents that stimulate consumption based on the fact that the scents and aromas generated by food inarguably influences customers’ mood and their inner comfort level. According to Lindstrom (2005), the art and science of generating exquisite scents seduce customers by using their olfactory senses to influence decisions, emotions and behaviour. Iop et al (2005) opinionated that scents and other physical characteristics of the restaurant, including ambience, layout, music, signs, lighting and displays, to a large extent influence customers’ decision making patterns by creating a fixed schema in their minds. McAtamney & Annett (2009) is of the opinion that although a constellation of influences within the restaurant environment may have an overbearing impact on individual food service experiences, scents and “…odours provide important taste-related cues and contribute to the overall flavour experience of ingested food” (p. 135). What’s more, Ottenbacher & Harrington (2009) reports that the subjective experiences initiated in customers as a direct consequence of sensory marketing strategies have sensorial, emotional, cognitive, behavioural and relational dimensions relating to the customers’ interactions and relationships with a particular service establishment.

Service Encounters and Customer Responses

Available literature demonstrates that service encounters and customer responses are central to the generation and maintenance of customer satisfaction and loyalty (Rodgers, 2008). Repeatedly, according to Jani & Han (2011), it has been noted that service-encounter performance and customers’ responses contribute, either positively or negatively, to customer satisfaction and the overall success of any service business. As noted by these particular authors, service encounters “…refers to the customer’s experience that extends overtime, [and] arises when the customer interacts with the surroundings or the environment, as well as with other customers that are present during that encounter”(p. 1001-1002). Walter et al (2010) define customer responses/experiences as the customer’s direct and indirect response to the service process, the service environment, the service establishment, the facilities, and how the customer relates to the service provider’s representatives and other customers in the service setting.

Bateson (1995) cited in Adembajo (2001) proposed that consumers not only purchase a service but also an experience created and packaged by the service provider with the intention of encouraging repeat behaviours from the customers. In adopting this conceptual framework, organizations endeavour to understand, recreate and improve the service encounters of the customer using a multiplicity of techniques, including customer-employee interactions, physical environment, and responsiveness and processes, with a view to achieve and maintain favourable customer responses (Jani & Han, 2011). Consequently, the present study embraces the view presented by Walter et al (2010), insinuating that diverse service encounters and the coinciding customer responses makes individuals to “…prefer one thing to another, which could be expressed in different ways such as attitude (like/dislike), affect favourable/unfavourable), evaluation (good/bad), and behavioural tendency (approach/avoid)” (p. 240).

Theory of Customer Responses: Attribution Theory

As noted in literature, “…attribution theory is concerned with all aspects of assigning causal inferences (i.e., explanations for the causes and outcomes of various events), and how these interpretations influence behaviour” (Swanson & Davis, 2003 p. 203). These authors posit that although the theory can be credited to Heider’s (1958) seminal work on naïve psychology, Bem’s (1967, 1973) work on self-perception and, more recently, the research studies of Weiner (1980, 1985), it continues to generate increased interest from marketing academics and practitioners interested in understanding consumer contexts and behaviour. The underlying premise of the theory is that human behaviour can best be described in two ways; that is, behaviour attributable either to an individual or a given situation.

There exists a basic understanding in literature that the attribution theory as framed by Heider (1958) divides the behaviour attributes into two constituents – external or internal attribution. In internal attribution, the cause of a particular behaviour exhibited by the customer is derived from within the person, implying that it utilizes such concepts as attitude, values, intelligence, character and personality. In external attribution the major trigger of a particular behaviour exhibited by the customer is derived from the situation in which the behaviour occurred (Oghojafor et al, n.d.). In such a scenario, the causality of the behaviour may be assigned to variables such as the external physical environment, including ambience, music, layout, scents and tastes, among others. Researchers have build on the theory to demonstrate how external attributes influences the internal attributes of customers in a focused attempt to influence their decisions and responses towards a particular product or service (Swanson & Davis, 2003), thus the importance of the theory in the present study. For instance, restaurant owners have been known to use various aspects, such as ambience, music and layout, to influence customers’ attitudes and perceptions, and thus their decision making patterns. Consequently, attribution theory can assist us to “…understand the why about others behaviour” (Oghojafor et al, n.d p. 2).

As observed by Iop et al (2006), positive external attributes leads to acceptance and intention to purchase, while negative external attributes often lead to avoidance behaviour.

Customer Cognitions, Affect, Emotions & Behavioural Intentions

Restaurant professionals are increasingly recognizing the fact that customer’s cognitions, affect and emotions towards a particular service establishment geometrically influence other core variables, including repeat intentions, satisfaction and loyalty (Kincaid et al, 2010). Magnini & Ford note that customers’ emotional responses to particular service offerings are often highly correlated, not only with overall satisfaction judgments of the service encounter but also with informing repeat or avoidant behaviours, as well as with the overall profitability and competitiveness of the service entity. According to Jani & Han (2011), “…the term affect refers to mental processes that include emotions, moods, and attitudes” (p. 1002). A number of researchers (e.g., Swanson & Davis, 2003) argue that it is often difficult to differentiate between ‘affect’ and ‘emotions’ in the service setting, compelling most of them to employ the terms interchangeably.

Conceptually, according to Jani & Han (2011), “…there has been debate as to whether affective responses are the results of cognitive evaluative processes or antecedents to cognition, or even a hybrid concept that is situational specific” (p. 1002). The present study embraces the cognitive-affect directional perspective, not only because it seems to be the most applicable to business exchanges in service settings (Swanson & Davis, 2003), but also to fulfil the need of understanding how cognition serves as a precedence to customer behavioural intentions.

Oliver (1997) cited in Jani & Han (2011) defines “…behavioural intentions as the stated likelihood to engage in a particular behaviour” (p. 1003). As observed by Kyu et al (2011), behavioural intentions are deemed to include revisit/avoidance behaviours and word-of-mouth intentions that are often relied upon to predict the future consumption behaviours of customers in the restaurant setting, along with those of their word-of-mouth recipients. An emerging body of literature (e.g. Jani & Han, 2011; Namkung & Jang, 2008) has included an attitudinal constituent in customer behavioural intentions, which, if it is favourable, can yield customer loyalty in terms of obliging customers to positively confirm their likelihood to revisit the service establishment and then spread favourable reviews to other customers about that particular service establishment. To achieve positive behavioural intentions, therefore, providers must have the capacity to provide consumers with service experiences that not only transcend normal standards of quality services (Goswami & Sarma, 2011), but also reinforce positive cognitions and affects about the service setting (Clark & Wood, 1999).

A strand of existing literature (e.g., Gustafsson et al, 2006; Ottenbacher & Harrington, 2009; Swanson & Davis, 2003) demonstrates that the critical aspects of customer cognitions, affect and emotions influence their behavioural intentions towards a particular service establishment, as well as their overall levels of satisfaction and loyalty to these establishments.

However, as reported by Jani & Han (2011), modern customer-satisfaction researchers have noted customer satisfaction to be not only a function of cognition but also of affect, in large part due to the fact that “…affect, unlike cognition, represents subjective mental feelings that can be experienced through their emotional, mood and attitudinal components” (p. 1001). Consequently, the experiential denominator projected by these variables entails a causative context, such as customer responses to particular service settings that can inarguably include the environment (servicescapes), service providers (employees), food offerings, and other customers in the environment.

It has been noted in literature that research findings on the relationship between customer cognitions and affect on the one hand and satisfaction and loyalty on the other are inconclusive, particularly in light of the fact that some researchers suggest that affect or emotions have a greater impact on customer satisfaction and loyalty (Jani & Han, 2011; Bruggen et al, 2011), while others uphold the supremacy of cognition (Kyu et al, 2011; Kincaid, 2003). Furthermore, the impact of customer satisfaction and loyalty on behavioural intentions has been observed to be non-linear (Swanson & Davis, 2003), with different factors, such as customer characteristics, physical environmental settings (servicescapes), perceived price and food offerings, influencing the relationship (Jani & Han, 2011).

Organizational View: Profitability & Competitiveness

According to Parsa et al (2005), “…the environment in which the restaurant operates helps to determine its success or failure” (p. 306). These authors further observe that some attributes of the competitive environment, such as geographical location, speed of growth and differentiation strategies, intrinsically determines if organizations will either achieve the profitability and competitiveness desired or fade into the backwaters of oblivion. Hoffman et al (2003) note that some aspects of scent marketing, such as the use of unique fragrances and smells to reinforce customer identification with a particular service establishment, assist organizations to differentiate their product and service offerings from those of competitors, thereby enhancing profitability and competitiveness. It is suggested in literature that the use of scent marketing assist restaurant owners to not only implement strategies that enable their businesses to adapt to the ever shifting environment but also to “…find ways to link with, respond to, integrate with, or exploit environmental opportunities” (Parsa et al, 2005 p 307).

Customer View: Satisfaction, Loyalty & Retention

Jani & Han (2011) defines customer satisfaction “…as an evaluation process in which the customer compares his or her prior expectation to the service (or perceived service) experienced” (p. 1003). In recent times, customer satisfaction has been illustrated to depend not only on customers’ cognitive responses towards a particular service establishment but also on their affective and/or emotional responses to service encounters. This new predisposition reflects a paradigm shift, from perceiving customers under the prism of economic-rational decision making to a more integrated point of view that takes into consideration issues of affect and emotions in the achievement of customer satisfaction. Consequently, the evaluation process, which ultimately leads to satisfaction levels, is currently credited to both cognition and affective customer responses to service encounters in the restaurant setting (Jan & Han, 2011).

The important strategic rule governing hotel and restaurant establishments the world over, according to Magnini & Ford (2004), is that it is far less expensive to keep an existing customer than it is to win the heart of a new customer. These authors further posit that service organizations in the restaurant sector “…cannot afford to lose good customers who have the potential to become important marketers for the [restaurant] via positive word-of-mouth referrals to friends and associates while also increasing their spending at [restaurant] properties as they advance in their careers” (p. 280). In their study on the factors that influenced customer satisfaction, Galbreath and Rogers (1999) cited in Adebanjo (2001) “…found that 98 per cent of unsatisfied customers switch to a competitor without complaining, while totally satisfied customers are six times more likely to repurchase a company’s products than merely satisfied customers” (p. 36).

In his study on the factors that influence restaurant selection by customers and, consequently, their loyalty towards a particular service establishment, Lewis (1981) cited in Clark & Wood (1999) found that food quality is the most domineering attribute, followed by other factors such as menu variety, price differentiation, atmospherics and convenience. Overall, restaurants owners develop and implement a multiplicity of strategies aimed at increasing customer satisfaction and reinforcing loyalty and retention, particularly in the light of the realization that: 1) the cost of retaining existing customers is far less that of attracting new customers, 2) the cost of attracting new customers is five times that of retaining existing customers, and 3) the cost of losing customers far exceeds that of correcting errors (Edwards & Meiselman, 2005). In the restaurant industry, research demonstrates that scents and food odours, either natural or artificial, plays a central role in the achievement of the desired customer satisfaction levels (Gustafsson et al, 2006), as well as the resulting loyalty and retention (Swanson & Davis, 2003; Kincaid et al, 2010).

Methodology

Introduction

The present paper focuses on attempting to evaluate how food aroma influence customer decisions in the restaurant industry in China, with specific reference to Xintandi Fountain restaurant, Shanghai. It is against this purpose statement that this section sets to discuss the methodologies employed by the researcher, along with their justifications, in the process of finding viable solutions to the stated research objectives and questions. Consequently, this section discusses the research design for the study, variables description, participants and sampling, data collection techniques, ethical considerations, as well as the data analysis methodologies used.

Research Design

This co-relational study utilizes a quantitative research design to capture the trajectories and details of the issue under investigation, namely how food aroma influence customer decisions in the restaurant industry in China. The justifications for using a quantitative research design in the present study are many and varied. First, available literature demonstrates that a qualitative research design provides a framework for more inclusive analysis in co-relational studies as they are interested in assessing the level of association between the independent variable(s) and the dependent variable(s) (Newman & Benz, 1998). Second, a quantitative research design allows the investigator to not only depend on empirical data as the primary source of information but also to employ post-positivist approaches towards the development of new knowledge by employing the cause and effect paradigms, conducting hypothesis testing, employing measurements and observations, as well as evaluating theories (Bryman & Bell, 2007). Third, a quantitative research design not only provides the investigator with the capacity to segregates variables and casually link them to ascertain the level and frequency of correlations (Sekaran, 2006), but also the prudence or jurisdiction to decide which variables of interest to investigate and which data gathering instruments to use, hence ensuring highly reliable and valid scores (Creswell, 2002).

Extant literature demonstrates that most quantitative research studies are either descriptive or experimental (Sekaran, 2006), but the present study employs a descriptive approach because the participants, consisting of restaurant customers frequenting Xintandi Fountain, are only measured once. It is imperative to note that primary, numeric data has been gathered using an on-line based field survey, which is perceived as effective and efficient in the eventuality that the investigator is primarily concerned with descriptive, explanatory or exploratory evaluation/appraisal of phenomena of interest (Sekaran, 2006). Another reason for choosing a descriptive survey technique in this type of co-relational study is that it allows participants the opportunity to specifically detail their values, perceptions, attitudes, expectations and priorities to the cardinal issues under investigation (Philips & Starwaski, 2008).

Secondary data for the study were gathered by means of conducting an all-inclusive review of literature, particularly on the variables that are thought to have a positive or negative influence on customers in a restaurant setting.

Theoretical Framework & Variables Description

According to Sekaran (2006), a theoretical framework “…is a conceptual model of how one theorizes and makes logical sense of the relationships among several factors that have been identified as important” (p. 107). The fundamental importance of developing a theoretical framework, as suggested by this particular author, is to evaluate the interrelationships or associations that exist between variables earmarked as important in finding tenable solutions to the issues under investigation. As such, it would be plausible to suggest that a valid theoretical framework is developed around the perceived associations between the main independent variable(s) on the one hand and the underlying dependent variable(s) on the other (Balnoves & Caputi, 2001).

The present study is primarily concerned with evaluating the effects of food aroma on customer decisions in the restaurant industry in China. Based on the research objectives and key research questions guiding this study, service encounters (food aroma) became the independent variable, while a multiplicity of other variables, including customer satisfaction, customer loyalty, repeat behaviour, avoidance behaviour, organizational profitability and competitiveness and overall customer cognitions and behavioural intentions, became the dependent variables. Extant literature shows that while the independent variable refers to the factor which is measured, manipulated, or selected by the investigator to ascertain its association with an observed phenomenon of interest (Creswell, 2002), the dependent variable refers to the factor which is observed and measured to determine the strength or consequence of the independent variable (Newman & Benz, 1998). Based on this explanation, the present study is guided by the theoretical plan presented next page.

Target Population & Sample

The target population for the present study consists of customers who visit the Xintandi Fountain restaurant, located in Shanghai, China. The rationale behind selecting this set of population is primarily based on the understanding that it is the customers who know what factors drives them to visit particular establishments and not others, not mentioning that customers are better placed to shed light on food-related factors that inarguably influence their decisions to either visit or stay away from a particular establishment. In sampling, it is important to note that convenience sampling technique was used to select a sample of 100 customers who frequent the Xintandi Fountain restaurant, either for breakfast, lunch or dinner services.

Convenience sampling technique is justifiable in such a study as participants are selected based on their accessibility and proximity to the restaurant under investigation. Additionally, it is easy to use the sampling technique, not mentioning that it bears little relative cost and time requirements (Bryman & Bell, 2007). The sampling criteria used to select participants include: 1) be of either sex, 2) must be above 18 years old, 3) must have known Xintandi Fountain for a period not less than six months, and 4) must be ready and willing to participate in the study. A Chart for the theoretical framework used for the study can be viewed at Appendix 1.

Data Gathering Instrument

Primary data for the present study has been collected by means of undertaking a field survey using a standardized questionnaire schedule. The questionnaire, administered online to customers of Xintandi Fountain restaurant, contained 23 items of diverse layouts, including: multiple choice questions, asking for a single choice or all that apply; dichotomous responses such as “yes” and “no”; self-evaluation items, measured on a 5-point Likert-type scale, and; open-ended questions intended to provide the participants with an opportunity to express their deeper thoughts. It is important to note that investigator relied heavily on the identification of the conceptual domain and the review of review of related literature to develop the questionnaire items (Philips & Starwaski, 2008). Adams & Cox (2008) names several advantages of using a questionnaire schedule over other data collection instruments, such as ease of application and adaptability, cost-effectiveness when administered online, ability to guarantee anonymity of responses and ability to achieve a high response rate, among others.

Reliability and Validity

It is suggested in the literature that investigators should always ensure the reliability of the data collection instrument so as to reduce errors that may otherwise be caused by faulty measurement parameters (Balnoves & Caputi, 2001). Reliability, which essentially denotes the exactness and correctness of a measurement tool (Philips & Starwaski, 2008), demonstrates that the same set of data and/or results would have been gathered and/or achieved each time in repeat evaluations of an identical variable due to consistency of measurement (Creswell, 2002). Consequently, the investigator achieved the reliability of the study findings through: 1) pilot-testing the questionnaire schedule on a sample of 18 participants, 2) ensuring that the measures included in the schedule only captured data perceived to be of interest to the topic of interest, and 3) employing multiple indicators to ensure that data gathered from the field were not abridged (Creswell, 2002).

Validity, according to Creswell (2002) means the suitability, meaningfulness and usefulness of the deductions, propositions and conclusions reached at by the researcher based on the data collected from the field. The researcher ensured internal validity by employing a proper sampling technique and using a validated questionnaire schedule, while external validity was confirmed by enrolling a sufficient sample of participants to ensure that the study’s findings could easily be generalized to other environmental settings (Creswell, 2002).

Ethical Considerations

Ethical issues were addressed as they arose, especially in the data collection phase. First, the investigator sought for necessary approvals to undertake the research from the relevant agencies in the University before presenting the same to the management of Xintandi Fountain for permission to collect data within the restaurant’s premises. Informed consent forms were also prepared and dispatched together with questionnaire schedule to inform the participants about their rights in the study, including right to informed consent and right to withdraw from the study at any time. Lastly, the investigator ensured the privacy and confidentiality of the responses contained in the returned questionnaires by numerically coding each schedule and protecting the responses using computer passwords.

Results and Discussions

The returned questionnaires were first cleaned and responses were then coded for ease of entry into a computer software program known as SPSS for Windows. The software was then used to run means, standard variations, cross-tabulations and frequency distributions, with the view to expose the all the factors that informed the relationship between food aroma and customer decisions within the restaurant industry. The resultant data were further harnessed, analyzed and presented as statistical presentations using the SPSS program as well as MS Excel. Qualitative data resulting from the open-ended items in the questionnaire schedule were categorized, coded, and then entered into the SPSS program for analysis.

Being a prerequisite of this dissertation, a questionnaire was formulated for the survey. A copy of the questionnaire is attached for ready reference. In order to do the survey, emails were sent to people from different walks of life and some of them were met personally as well. In the emails, people were informed about the motive of dissertation behind the survey and they were requested to oblige by taking the survey. The people were also informed that completing the survey would not take more than half an hour of their precious time and that the information that they provide and their contact details would be strictly confidential. There were 23 questions in all and these questions pertained to the food or restaurant industry in general and Xintiandi Fountain restaurant in particular. The results from the survey were meant to establish whether food aroma is of crucial importance in restaurant industry or not and whether the food aroma affects customers’ decision, behaviour and emotions or not. The questions were qualitative and varied in nature; from a person’s visiting frequency to the restaurant to the amount that he/she spent on each visit and from the importance of aroma to one’s self to the impact that aroma can have on a business. The answers to some of the questions were supposed to be descriptive (one or two lines) and the remaining were simple tick marks under the appropriate heading. The age group that was targeted was mainly from 20 to 30 years. The reason for opting for this age group was that nowadays the youth throng restaurants more frequently than people of other age groups. Fifty emails were sent and twenty people were met personally. Out of the 50 people to whom emails were sent, fifteen were kind enough to respond with the answers and out of the 20 people who were met personally, only ten were able to spare some time. In all, 25 people were kind enough to fill in their answers to the questionnaire. Equilibrium was maintained in the number of males and females. A copy of the survey results is attached for ready reference.

Once all the information and raw data was gathered, the important task of analysing the data was taken up. The answers to each question that all the 25 people had given were studied carefully. Once the outcome was clear, the data was entered in MS Excel in order to club the information. The data was then tabulated and tables were made for all the answers. A copy of the tabulated results is attached for ready reference. Further, separate pie charts were made for most of the answers that were not descriptive. All the details are attached for ready reference.

In order to ascertain whether aroma is a key factor in affecting customers’ decision, behaviour and emotions in the restaurant industry in China, this survey was done. Keeping in view the fact that restaurants are frequented more by the youth, the target of our survey was people mainly in the age group of twenty to thirty years. However, a balance was maintained in the sexual ratio. There were 56% females and 44% males. It was observed that twenty five percent of the lot visited the restaurant a few times every week, and twenty one percent of them visited the restaurant a few times every month. Moreover, about four percent of the people visited the restaurant on a daily basis, seventeen percent once a week and eight percent once a month. The remaining twenty five percent visited the restaurant very rarely. It is understood that total seventy five percent of the people visit the restaurant sometime or the other. The Xintiandi Fountain restaurant lays great stress on the services being offered to their customers. Customer satisfaction is their first and foremost objective. The results of the survey are evident enough to prove this. Ninety two percent people were satisfied by the services offered at the restaurant.

Coming to the food aroma and its significance in the food or restaurant industry, the statistics of the survey show that in the food industry as a whole, aroma of the food being offered or served plays a crucial role in getting the patronage of customers. We identified ten different reasons or aspects that customers take into consideration before going to any restaurant. These are ambience or the interior decoration and surroundings in the restaurant, layout or the table arrangement, location of the restaurant, presentation at the reception, wait time, aroma of the food served, quality of the ingredients used to prepare the food, colour of the food served or the appearance of the food, flavour of the food served, and finally price of the food. It was observed that the maximum number of people were very conscious about the ingredients of the food being served at the restaurant. The waiting time was also a major concern for most of the people. It is noticeable that apart from the flavour and price of the food being served, aroma of the food was also said to be considered by 12.5% people before deciding on a restaurant. That means a lot. Let me elaborate a little. We took ten aspects and aroma was one of them. Now 12.5% people voting for aroma means that one person out of every eight people prefers to visit a restaurant where the aroma of the food is good. The aroma of food instigates customers to spend more time in a restaurant and order more food. As is evident from the survey results, about forty two percent people prefer spending more time in a restaurant, provided they like the aroma of the food being served. Also, sixty four percent people feel that if the aroma of the food is good, they tend to eat more. So the better the food smells, the more tempted a customer will be to eat. It means that good aroma arouses appetite. The equation is very simple, if the aroma of the food is good; people will eat more and as a result, spend more thereby, increasing the sales and profits. According to the survey, fifty percent people agreed that they tend to spend more if the aroma of the food is good. The survey results are witness to the fact that good food aroma increase the profitability of a restaurant and the restaurant has an upper hand in the competitive market. In reply to a survey question ‘Does enticing food aroma leads to organizational profitability?’ sixty percent people agreed and only eight percent disagreed. The remaining thirty two percent were neutral. In response to another question pertaining to the effect of food aroma in the organizational competitiveness, almost sixty three percent people were of the opinion that food aroma helps a restaurant in maintaining an upper hand whereas, almost eight percent believed otherwise. Almost twenty nine percent people were neutral. The reasoning for this is that if a customer likes the food aroma of a particular restaurant, he will visit the restaurant more frequently and also bring his/her friends and relatives along with him/her. This will definitely increase the customer traffic and in return, the sales and profits. Peculiar and distinct food aromas of a restaurant can explicitly distinguish it from its competitors.

One of the main factors for the success of any restaurant is the patronization from the customers. The success depends mainly on the percentage of customers who come back to have their meals at the restaurant. This may be due to various reasons, but aroma of the food is the major deciding factor. The statistics of the survey show that sixty eight percent people agreed to return to the same restaurant due to the aroma of its food. Almost seventy one percent people agreed to the fact that the expectation that they had about the food after smelling the food aroma were actually met by the restaurant. It is an established fact that if the food aroma is good, the taste of the food should be good as well. That is the reason they had patronized the restaurant.

The survey results revealed that a whopping eighty percent people believed that food aroma in the restaurant industry was associated with positive customer responses. Twenty percent people were not aware of this fact. There were no takers for the reasoning that the food aroma in the restaurant industry was associated with negative customer responses.

The survey had some questions pertaining to the relation between the customers and the restaurant. In reply to the question ‘Does enticing food aroma leads to greater customer satisfaction?’ seventy six percent people were in favour whereas, only eight percent people did not agree. The remaining sixteen percent people were neutral. Similarly, in reply to the question ‘Does enticing food aroma leads to reinforced customer loyalty?’ sixty four percent people were in favour whereas, only eight percent people did not agree. The remaining twenty eight percent people were neutral. And finally, in reply to the question ‘Does enticing food aroma leads to enhanced customer retention?’ sixty percent people were in favour whereas, only eight percent people did not agree. The remaining thirty two percent people were neutral.

The purpose of mentioning the details of the survey is to establish the fact that food aroma is by far the most crucial factor in helping the people decide on whether to visit a particular restaurant or not. It is a well known fact that any business can survive only if its customers are satisfied, loyal and have patronized the business house. In the aforementioned questions, these three factors have been raised and the people have responded in the positive. It is noticeable that all the three questions pertain to the food aroma. People might forget other aspects but they will definitely remember the food aroma and this only will be the deciding factor in bringing back customers to the restaurant.

The aroma has the quality of attracting even those people who are going past the restaurant. By the aroma itself, people imagine the kind of food that they will be served. Restaurants all around have started developing their peculiar aromas in order to attract customers. They have their own special ingredients to bring out the aroma. It can be said that food aroma is a sort of marketing strategy. If followed properly, it can lead a restaurant to unprecedented success.

Limitations of the survey

The data collected from the survey was Primary data since it was collected personally by way of a survey, customer feedback, and surveillance. This kind of data is trustworthy due to the fact that it is collected personally and one knows what the source is. Primary data involves more cost and time. As such, this kind of data is not usually preferred.

Advantages of primary data: The advantage of using primary data is that the information is hundred percent original and accurate. The information collected is totally un-biased. Since the data is collected from the public, the real feel or comments are obtained. Primary data is trustworthy.

Disadvantages of primary data: The data collected is very large. Moreover, since the data is collected from the public, a large number of people have to be met. There are chances that many of them might not prefer commenting. So there is a lot of harassment as well. This kind of data consumes a lot of time. This kind of data is collected by doing surveys and interviews. All this process involves a lot of cost. Last but not the least, the data collected are raw and have to be compiled or tabulated. This again consumes a lot of time. But at the same time, primary data serve the exact purpose of a research.

Quantitative and qualitative data: The names themselves depict the difference in these two kinds of data. Quantitative data deals with quantity whereas qualitative data deals with quality. Quantitative data can be calculated whereas qualitative data can only be observed. Examples of quantitative data are area, speed, time, rate, weight, numbers, temperature, etc. Examples of qualitative data are smell, taste, humour, colour, etc. Qualitative data is very useful to researchers. It provides in-depth information. But unfortunately, this kind of data cannot be reproduced.

Conclusion and Recommendations

Earlier, the success of a business could be gauged by the need of its products or services by the consumers. But today, the same success is gauged by its popularity among the consumers. Modern technology and the competitive environment have given today’s customer a variety of options to choose from. There are so many options that a customer has to fulfil all his daily requirements. So many brands have come up in the market that the success of a particular brand depends on the preference of the customers. This rule applies to all the businesses, all over the world. The restaurant or food industry is no exception. In fact more options can be found in the three most essential things of life; food, shelter and housing. It is believed that if a business engaged in any three of these sectors has satisfied customers, its success is inevitable.

If we talk about the economic environment, China is a land of great opportunities. There has been unprecedented growth in all the sectors, including the restaurant industry. People’s income has increased and so has their buying and spending power. Owing to the great business opportunities and also due to its historical importance, China has an encouraging number of tourists each year. These tourists are either on a business trip or a holiday trip. Both ways, they indirectly contribute to the business volume of the restaurant industry. The opportunities have increased and so has the competition.

The study has been able to ascertain the importance of food aroma in the restaurant industry of China. From the survey, it can be concluded that people are in favour of frequenting restaurants that have their favourite food aroma. It is also evident that good food aroma patronizes the customers and invites fresh ones, either by way of mouth publicity or invitations from the existing ones.

Talking about the restaurant industry, even though service being provided counts a lot, the quality of food is the main criteria for the success of any restaurant. Restaurants have to strive hard to maintain their customer base and also to attract new ones. Winning a heart is easiest through the stomach. And if a restaurant is able to win the hearts of its customers, there is no way that it won’t succeed.

Xintiandi Fountain is a restaurant facility located in Shanghai, China and as such it has a vast opportunity lying in the future. In order to grab this opportunity, the management of the restaurant should lay stress on the complete satisfaction of its customers. As we have discussed earlier in this paper, food aroma is the main criteria for customers and the success of the business as well. So the management should try and formulate a distinctive aroma that no other restaurant has. Care should be taken that the aroma doesn’t change the taste of the food. The original Chinese food taste should not be compromised. After all, even taste is an important factor in the success of a restaurant.

The management of Xintiandi Fountain can benefit from the flow of tourists who throng China throughout the year. Such tourists would love to ease their appetite with delicious Chinese food laced with a distinctive aroma. At the same time, the management should take care that the price structure is not disturbed. It’s a world of competition and price matters a lot. There may be a few people who would not consider the price as far as their favourite meal and its aroma is concerned, but not all will be so generous. The message is that in their endeavour to formulate new distinctive aroma, the management should select the ingredients keeping in view the effect on the price that they would have. The ratio of ingredients is also an important aspect. Such ratio should be arrived at after proper research and consultation with the regular customers. Approval from the customers is a must prior to launching the new aroma. And last but not the least, ‘Service with a Smile’ should be the motto.

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Appendix 1

Theoretical Framework used for the Study
Figure 1: Theoretical Framework used for the Study
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IvyPanda. 2022. "Effect of Aroma on the Chinese Restaurant Industry." July 26, 2022. https://ivypanda.com/essays/effect-of-aroma-on-the-chinese-restaurant-industry/.

1. IvyPanda. "Effect of Aroma on the Chinese Restaurant Industry." July 26, 2022. https://ivypanda.com/essays/effect-of-aroma-on-the-chinese-restaurant-industry/.


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