DIGITAL LOYALTY, CUSTOMER RETENTION AND CUSTOMER LOYALTY IN CHENNAI’S INDIAN SPECIALITY RESTAURANTS

Abstract

The rapid digital transformation of the hospitality industry has significantly reshaped customer engagement and relationship management practices in restaurant services. Indian speciality restaurants in metropolitan cities such as Chennai increasingly adopt digital technologies to enhance customer satisfaction, strengthen retention, and build sustainable customer loyalty. This study examines the influence of digital loyalty mechanisms on customer retention and customer loyalty in Chennai’s Indian speciality restaurants. Customer satisfaction is examined as a mediating variable between digital loyalty and loyalty outcomes. A quantitative research design was adopted, and primary data were collected from 150 customers using structured questionnaires. Structural Equation Modeling (SEM) using Partial Least Squares (PLS) was employed to analyze the data. The findings reveal that digital loyalty mechanisms significantly influence customer satisfaction, which subsequently enhances retention and customer loyalty. Customer retention further strengthens customer loyalty. The study contributes empirical evidence to hospitality literature and provides managerial insights for restaurant operators seeking competitive advantage through digital strategies.