International Journal of Engineering and Applied Sciences (IJEAS) ISSN: 2394-3661, Volume-4, Issue-12, December 2017 58 www.ijeas.org Abstract— This research has proposed a conceptual framework to investigate the effects of customer expectation, perceived quality, and customer satisfaction on customer loyalty. This study has been conducted on 210 customers, with a structured questionnaire, who have received those services from a different restaurant in Dhaka city of Bangladesh. For collecting data, convenient sampling technique has been used. For analyzing data multivariate analysis techniques like factor analysis and Structural Equation Modeling (SEM) has been used. Descriptive statistics have been used for explaining the demographic characteristics of the customers. This study reveals that customer expectation is a significantly negative relationship with customer loyalty in a direct way but, this factor (customer expectation) is a significantly positive relationship with customer loyalty via customer satisfaction. This study also reveals that perceived quality is not a significant relationship with customer satisfaction but, this factors (Perceived Quality) is a significantly positive relationship with customer loyalty in a direct way. A clear understanding of the actual relationships among the studied factors might encourage the KFC restaurant to figure out an appropriate course of action to win customers expectation by providing better services in order to create a loyal customer base. Index Terms— Customer Expectation, Perceived Quality, Customer Satisfaction, Customer Loyalty, KFC restaurant, Bangladesh. I. INTRODUCTION A successful business organization must acquire new customers and get existing customers to continue consuming the products and services provided rather than turning to competitors. Service quality is regarded a critical success factor for organizations to differentiate from competitors. Many studies have been conducted to determine the factors of service quality. According to Zeithaman & Bitner (2003), service quality is a measure of how well a delivered service matches the customers‘ expectations. Customer satisfaction is very important in today‘s business world as the ability of a Marzan Rahman, Lecturer, Department of Business Administration, Hamdard University Bangladesh, Munshiganj, Bangladesh, Mobile No. +8801779481482 Imran Hossain, Lecturer, Department of Marketing, Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Gopalganj-8100, Bangladesh. Mobile No.: +8801550156366 Farhana Mitu, Senior Lecturer, School of Business, Uttara University, Dhaka, Bangladesh, Mobile No.: +8801912073718. Mohitul Ameen Ahmed Mustafi, Assistant Professor, School of Business, Uttara University, Uttara, Dhaka-1230, Bangladesh, Mobile No.: +8801670334733 Mamun Miah, Uttara University, Uttara, Dhaka-1230, Bangladesh, Mobile No.: +8801731558305 service provider to create a high degree of satisfaction is crucial for product differentiation and developing a strong relationship with customers (Deng et al., 2009). For example, researchers have found that customer satisfaction can lead to customer loyalty (Caruana, 2002; Caruana et al., 2000). According to Ryan et al., 1999 said that loyal customers will tend to repurchase from the same service provider. Every people know KFC is the world‘s most popular chicken restaurant chain which has been established by Colonel Harland Sanders in 1939. This is most famous creation Original Recipe Kentucky Fried Chicken, featuring that secret blend of 11 herbs and spices. Since that time, millions of people over the world have come to love his one of a kind chicken. KFC serves nearly 12 million customers across the globe daily in more than 19,400 restaurants. But, KFC started its journey in Bangladesh on the 6th of September, 2006. Transcom Foods Limited, as the sole franchisee of KFC, opened the doors of the first KFC restaurant in Gulshan 1. Today, KFC has grown as a brand, winning people‘s hearts and has opened 19 restaurants in 3 cities across Bangladesh. The biggest laurel for KFC Bangladesh is maintaining highest standards of food safety and hygiene regime by following stringent local and international audits. Employing more than 600 people, KFC Bangladesh committed to secure the best quality fried chicken with the best of services. So, we want to study why have people feel loyal to KFC restaurant is best first food restaurant in Bangladesh as well as the world. II. OBJECTIVE OF THE STUDY The objectives of this study are to predict the significant relationships among factors like perceived quality, customer expectation, customer satisfaction and customer loyalty of KFC restaurant customers in Bangladesh. to give some suggestions for the improvement of the satisfaction level for the customers of KFC restaurant in Bangladesh. III. LITERATURE REVIEW Perceived Quality According to Zeithaman & Bitner (2003), service quality is a measure of how well a delivered service matches the customers‘ expectations. Quality can be defined as satisfying or exceeding customer requirements and expectations, and consequently, to some extent, it is the customer who eventually judges the quality of a product (Shen et al., 2000). Banks have realized the significance of concentrating on An Examination of the Effects of Customer Expectation, Perceived Quality, and Customer Satisfaction on Customer Loyalty: A Case Study on KFC Restaurant Marzan Rahman, Imran Hossain, Farhana Mitu, Mohitul Ameen Ahmed Mustafi, Mamun Miah