Service Quality, Brand Trust, and Customer Retention: The ‎Competitive Dynamics between The Highway Food Chains and ‎Local Dhabas in India

  • Authors

    • Hridayama Dev Varma Faculty of Management Research Scholar of SRM Institute of Science and ‎Technology, Kattankulathur Campus, Chennai 6030203
    • Dr S Senthil Kumar Professor, Faculty of Management Research Scholar of SRM Institute of ‎Science and Technology, Kattankulathur Campus Chennai 6030203
    https://doi.org/10.14419/6ceepy84

    Received date: June 11, 2025

    Accepted date: July 17, 2025

    Published date: September 12, 2025

  • Brand Trust; Customer Retention; Highway Food Chains; Service Quality; SERVQUAL Model.

  • Abstract

    This study investigates the interplay between service quality, brand trust, and customer retention within retail food ‎chains operating along India's national highways, with a particular focus on competition from local vendors ‎‎(dhabas). Drawing on the SERVQUAL model, the research examines six key constructs: service quality (across five ‎dimensions), restaurant atmosphere, customer relationship management (CRM), customer satisfaction, customer ‎loyalty, and brand trust. Data were collected from 409 customers, and 384 samples were used using structured ‎questionnaires at both branded outlets and dhabas, employing purposive sampling, and analyzed using SPSS. The ‎findings reveal that local dhabas, through lower pricing, faster service, and cultural familiarity, significantly erode ‎customer loyalty towards branded chains. Inconsistent experiences at branded outlets-such as poor hygiene, ‎substandard food quality, and unprofessional staff-were found to severely undermine both brand trust and loyalty. ‎Statistical analyses demonstrate that while direct effects of customer experience on loyalty are limited, their indirect ‎effects via customer satisfaction and, most notably, brand trust are substantial. Brand trust emerged as a stronger ‎mediator than customer satisfaction in the relationship between customer experience and loyalty.‎

    The study underscores the critical need for highway food chains to ensure consistency in service delivery and to ‎strategically address the unique value propositions of local competitors. Insights from this research inform ‎actionable strategies for retail food chains aiming to enhance customer retention and competitive positioning in the ‎dynamic highway food service landscape‎.

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  • How to Cite

    Dev Varma, H. ., & Kumar, D. S. S. . (2025). Service Quality, Brand Trust, and Customer Retention: The ‎Competitive Dynamics between The Highway Food Chains and ‎Local Dhabas in India. International Journal of Accounting and Economics Studies, 12(5), 522-532. https://doi.org/10.14419/6ceepy84