Thesis submitted for the degree of Master by Research in Management Universiti Teknologi Brunei Abstract In the face of rising inflation and intensifying market competition, Micro, Small, and Medium Enterprises (MSMEs) in Brunei Darussalam's catering sector are under increasing pressure to adopt effective customer retention strategies. Social media marketing offers a cost-efficient and accessible tool for building customer relationships, promoting pricing transparency, and showcasing service quality. However, limited empirical research has examined how these digitally mediated service attributes influence customer behaviour in this context. This study aims to investigate the key drivers of customer retention in Brunei's catering sector, focusing on the influence of e-service quality and customer price perception, and examining the mediating role of customer satisfaction. The research draws on an integrated theoretical framework—combining the Technology Acceptance Model (TAM), Adaptation Level Theory, Range Theory, and Expectation Confirmation Theory—while operationalizing e-service quality and price perception based on the models developed by Yum et al. and Zielke, respectively. Constructs such as reliability, responsiveness, perceived usefulness, and price-quality ratio are examined to assess how they interact to shape customer experiences and retention outcomes in digitally mediated service environments. Using a quantitative approach, data were collected from 203 valid respondents through online questionnaires distributed via social media. Descriptive statistics and Exploratory Factor Analysis were used to validate the measurement model, while Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to test the hypotheses. The findings reveal that while e-service quality and price perception do not have a significant direct effect on customer retention, both constructs significantly influence retention through the mediating effect of customer satisfaction. Notably, social media content usefulness, pricing accessibility, and responsive communication emerged as key drivers of satisfaction. This research offers theoretical and practical contributions by extending the application of digital marketing and consumer behaviour theories to MSMEs in the catering e-commerce space. It provides actionable insights for business owners seeking to enhance service value, pricing clarity, and customer engagement on social media. While the study focuses on Brunei's catering industry, the findings offer transferable insights for similar service-based MSMEs in Southeast Asia and other emerging digital markets, enhancing the external validity of the results. The study underscores that digital transformation for catering MSMEs must go beyond online presence and toward a more strategic integration of technology, customer satisfaction, and relationship-building to sustain long-term customer loyalty and business resilience.
Thesis (Degree) - Universiti Teknologi Brunei, 2023
Includes bibliographical references from page 141-152
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