The fast food restraurants (FFRs) in Mongolia is facing increasingly competitive challenges as with other industries around the world. Due to the low income level Mongolian customers tend to be price sensitive. Price sensitivity is the awareness of the consumers to what they perceive about the cost within which they will buy a particular service or product. To know about customers’ price sensitivity is really a crucial part for a company because price affects company’s profitability. Price sensitivity is one of factors that affects much on customers purchase intention. If the firms want to have loyal customers, they need to make customers satisfied and provide a better service. Usually satisfied customers have positive intention to purchase the product again. So customer satisfaction is another key factor that leads to positive intention to purchase. Also there aren’t any related researches about fast food restaurants and their customers.
The main purpose of this research paper is to determine Mongolian customers’ price sensitivity and service quality satisfaction and their relationship to purchase intention. Moreover, this study is aimed at identifying the key determinants of customer satisfaction in fast food outlets and the current perceived service quality level in Mongolia. A questionnaire is implemented on 2001 Mongolian fast food restaurants’ customers. The data is analyzed by correlation and regression method. The findings of this research, specifically, contribute to Mongolian fast food industry literature.
