Strategic Service Quality on Sales Performance of Multinational Fast-Food Firms in Nairobi County Kenya

Abstract

On a local and global perspective, the performance of multinational fast-food firms encountered difficulties in the past in improving sales revenue, this occurred due to poor service quality (KNBS report 2023). Therefore, the purpose of the study was the analysis of strategic service quality on sales performance of multinational fast-food firms in Nairobi County, Kenya. The independent variable service quality was measured by customer service, delivery on time and customer feedback. Dependent variable involved sales performance indicators such as market share, sales and profits, mediating variables were measured by restaurant ambience this included décor, interior design and spatial layout, moderating variables included organisational competence measured by management, transactional and operational competence. Competitive advantage, SERVQUAL model, expectation-disconfirmation and value-percept theory. The research design utilised was explanatory research design, target population was 23 managers and 19930 customers. 22 managers and 376 customers were sampled, a census was used. Content and construct validity was used to test validity, reliability was tested, with the Cronbach Alpha 0.75 was obtained, semi-structured questionnaires were distributed. Statistical Package for Social Science was used, inferential and descriptive statistics was utilised. Descriptive statistics included mean and standard deviation. Inferential statistics used was correlation and regression analysis. Service quality had a major effect (ꞵ = 0.108, P = 0.002 ), restaurant ambience had a statistically significant mediating positive effect on sales performance (ꞵ = 0.083, P = 0.012) and organisational competence had a statistically significant moderating positive relationship between service quality and sales performance in Nairobi, County Kenya (P=0.023).