Abstract: The relationship among perceived quality, customer satisfaction and customer retention in the hot pot industry, especially in the Haidilao restaurant, is analyzed. Some prevailing research methodologies, such as questionnaire survey, structural equation model (SEM), factor analysis, and multiple regression analysis, are adopted. The main findings are: (1) both perceived service quality and perceived product quality positively influence customer satisfaction significantly; moreover, perceived service quality imposes greater impact on customer satisfaction than perceived product quality in the hot pot industry; (2) customer retention is significantly and directly influenced by perceived service quality and customer satisfaction, but there is no significantly direct effect between perceived product quality and customer retention; and (3) service empathy is the most vital dimension of perceived quality to influence customer satisfaction and customer retention, which is followed by service responsiveness and assurance, special products, service tangibles, and general products. The results can provide valuable reference for the whole catering industry or other service providers to enhance their perceived quality and customer satisfaction.

Key words: perceived quality, customer satisfaction, customer retention, service empathy