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The Influence of The Quality of The Physical Environment, Food, and Service On Restaurant Image, Customer Perceived Value, Customer Satisfaction, and Behavioral Intentions
The Influence of The Quality of The Physical Environment, Food, and Service On Restaurant Image, Customer Perceived Value, Customer Satisfaction, and Behavioral Intentions
www.emeraldinsight.com/0959-6119.htm
IJCHM
24,2 The influence of the quality of the
physical environment, food, and
service on restaurant image,
200
customer perceived value,
Received 9 October 2010
Revised 1 March 2010
customer satisfaction, and
13 May 2011
25 June 2011
Accepted 6 August 2011
behavioral intentions
Kisang Ryu
College of Hospitality and Tourism Management,
Sejong University, Seoul, South Korea
Hye-Rin Lee
School of Hotel and Tourism Management,
The Hong Kong Polytechnic University, Hong Kong, China, and
Woo Gon Kim
Dedman School of Hospitality, Florida State University, Tallahassee,
Florida, USA and Kyung Hee University, Seoul, South Korea
Abstract
Purpose – The purpose of this study is to propose an integrated model that examines the impact of
three elements of foodservice quality dimensions (physical environment, food, and service) on
restaurant image, customer perceived value, customer satisfaction, and behavioral intentions.
Design/methodology/approach – Data were collected from customers at an authentic upscale
Chinese restaurant located in a Southeastern state in the USA via a self-administered questionnaire.
Anderson and Gerbing’s two-step approach was used to assess the measurement and structural models.
Findings – Structural equation modeling shows that the quality of the physical environment, food,
and service were significant determinants of restaurant image. Also, the quality of the physical
environment and food were significant predictors of customer perceived value. The restaurant image
was also found to be a significant antecedent of customer perceived value. In addition, the results
reinforced that customer perceived value is indeed a significant determinant of customer satisfaction,
and customer satisfaction is a significant predictor of behavioral intentions.
Research limitations/implications – The proposed model and study findings will greatly help
researchers and practitioners understand the complex relationships among foodservice quality
(physical environment, food, and service), restaurant image, customer perceived value, customer
satisfaction, and behavioral intentions in the restaurant industry.
Originality/value – This study is the first to develop an integrated model that explicitly accounts for
the influence of three restaurant service quality factors on restaurant image and customer perceived
value. Using structural equation modeling, this study empirically confirms that the model with the
causality from quality, in particular three dimensions of foodservice quality in this study, to restaurant
International Journal of image is superior to the one with causality from image to quality in the context of restaurant.
Contemporary Hospitality
Management Keywords Foodservice quality dimensions (physical environment, food, and service), Restaurant image,
Vol. 24 No. 2, 2012 Customer perceived value, Satisfaction, Behavioral intentions, Customer satisfaction,
pp. 200-223
q Emerald Group Publishing Limited
Customer services quality, Consumer behaviour, United States of America
0959-6119 Paper type Research paper
DOI 10.1108/09596111211206141
Introduction The influence of
The consistent increase in cultural and ethnical diversity in the United States has the physical
resulted in the variety and prosperity of ethnic restaurants in the U.S. foodservice
market (Liu and Jang, 2009a). In particular, because of good taste and great customer environment
perceived value for the price, the popularity of Chinese cuisine has been increasing.
According to Liu and Jang (2009a), there are about 43,139 Chinese restaurants in the
United States, which is larger than the combined number of all McDonald’s, Wendy’s, 201
and Burger King domestic outlets. Chinese restaurants generate over $17.5 billion
annual sales, accounting for about a quarter of the overall annual sales generated by
ethnic restaurants in the US (Liu and Jang, 2009a).
Today, Chinese restaurants are facing increasing competition from the growth of
other Asian restaurants (e.g. Thai, Indian, Vietnam, and Korean restaurants). In
addition, American consumers have become more sophisticated, more familiar with
ethnic cuisine, and increasingly they prefer healthy or spicy food. As a result, Chinese
restaurants can no longer largely rely on good taste or low price alone for their success
(Liu and Jang, 2009a). Today, customers are no longer willing to sacrifice poor service
or dining environment (atmosphere) for good taste when they seek an exotic experience
in ethnic restaurants. An excellent overall dining experience via excellent food in
conjunction with good atmosphere and high-quality service needs to be achieved to
meet their satisfaction. However, it is still not empirically tested if customers in this
segment are primarily driven by food, atmospherics, or employee service.
Service quality and customer satisfaction have become the most core marketing
priorities since they are prerequisites of consumer loyalty, such as repeat sales and
positive word-of-mouth (Han and Ryu, 2009; Liu and Jang, 2009b). In today’s intensely
competitive market, it is generally assumed that the key to gaining an advantage lies in
delivering high-quality service that will, in turn, lead to satisfied customers (Han and
Ryu, 2007). In particular, in the restaurant industry, customers generally use food,
physical environment, and employee services as key components of restaurant
experience in evaluating the restaurant service quality (Chow et al., 2007; Namkung
and Jang, 2008; Ryu and Han, 2010). A proper combination of these vital attributes
should result in customers’ perceptions of high restaurant service quality, which in
turn should enhance customer satisfaction and customer loyalty in the restaurant
industry. However, little research has been conducted to investigate the influence of
multiple components of restaurant service quality on outcome variables such as
restaurant image and customer perceived value.
The literature has discussed the impact of an organization’s image on consumer
behavior, particularly on consumer loyalty in the service sectors (Andreassen and
Lindestad, 1998). Some previous studies have found that the perceived quality of the
physical environment (Baker et al., 1994; Nguyen and Leblanc, 2002) or the service
quality (Lai et al., 2009) can significantly influence store/corporate image. This image
can have a subsequent influence on customer perceived value and satisfaction, which,
in turn, affects their loyalty (Lai et al., 2009; Patterson and Spreng, 1997; Prendergast
and Man, 2002; Ryu et al., 2008). However, few studies have examined to identify the
antecedents and consequences of image, specifically restaurant image in relation to
the restaurant experience.
IJCHM Although the importance of a Chinese restaurant sector has been consistently
24,2 growing, it has not gained much attention in research. Despite the importance of
foodservice quality, academics and managers know relatively little about how the
combined effects of restaurant service quality (physical environment, food, and
service) elicit restaurant image, customer perceived value, and customer satisfaction,
which, in turn, affect consumer behavior. In particular, to the best of our knowledge
202 none of previous studies have examined the linkage between three dimensions of
restaurant service quality and the restaurant image. In addition, the combined effects
of three antecedents on customer perceived value have been rarely examined even
though customer perceived value is a fundamental determinant of customer
satisfaction. Consequently, this study aims to bridge these gaps by developing an
integrated model that explicitly accounts for the effects of three components (physical
environment, food and service) of restaurant service quality on the restaurant image,
customer perceived value, customer satisfaction, and behavioral intentions in a
Chinese restaurant segment.
This study is important both theoretically and practically. This study attempts to
develop a conceptual model that explicitly accounts for the influences of three
restaurant service quality factors (physical environment, food, service) on restaurant
image and customer perceived value. Practically, this study can provide various
insights into the important role of three dimensions of restaurant service quality on
customers’ perceptions towards the restaurant image, customer perceived value,
customer satisfaction and loyalty behaviors to restaurateurs.
Literature review
Restaurant service quality
Recently, few studies indicated that food, physical environment, and employee services
should be functioned as vital components of restaurant experience in forming the
perceptions of the restaurant service quality in the restaurant industry (Chow et al., 2007;
Jang and Namkung, 2009; Namkung and Jang, 2008; Ryu and Han, 2010).
Chow et al. (2007) investigated the relationships between service quality, customer
satisfaction, and frequency of patronage in the context of full-service restaurant. They
captured three dimensions of service quality (i.e. interaction quality, physical quality,
outcome quality). Namkung and Jang (2008) also conducted a study to identify key
quality attributes that significantly distinguish highly satisfied diners from non-highly
satisfied diners using the context of mid-to-upper scale restaurants. They used three
quality factors (food, atmospherics, and service) to measure diners’ perceived quality in
relation to restaurant experience. Moreover, Jang and Namkung (2009) extended
Mehrabian and Rusell’s (1974) model by incorporating restaurant-specific stimuli and
restaurant-specific measure of emotions. In order to address a lack of comprehensive
evaluation of restaurant service quality, this study used three dimensions of restaurant
quality: product, atmospherics, and service. In addition, Ryu and Han’s (2010) study
examined the relationships among three determinants of quality dimensions (food,
service, and physical environment), price, customer satisfaction, and behavioral
intention in quick-casual restaurants. Similarly, this study also attempted to
understand the effects of three dimensions of foodservice quality (food, service,
physical environment) on customer response in the restaurant industry. It is common
that all three studies examined the influence of foodservice quality on customer The influence of
satisfaction and behavioral intentions in the context of restaurant. However, none of the physical
previous studies investigated how multiple components of restaurant service quality
influenced customers’ perceptions of restaurant image and customer perceived value. environment
Methodology
Measures
Based on previous research (Brady and Cronin, 2001; Jang and Namkung, 2009;
Kim and Kim, 2004; Low and Lamb, 2000; Namkung and Jang, 2007; Ryu and
Figure 1.
Relationships between
latent variables in the
proposed model
IJCHM Jang, 2007, 2008; Ryu et al., 2008; Zeithaml et al., 1996), a focus group, and a pilot test, a
24,2 questionnaire was developed to assess three dimensions of foodservice quality (food,
service, and physical environment), restaurant image, customer perceived value,
customer satisfaction, and behavioral intentions. Table I presented all of measurement
variables that were assessed using a seven-point Likert-type scale, ranging from
strongly disagree (1) to strongly agree (7). Food quality (FQ) was measured using six
208
Factors Factor loading t-value
Sample
A focus group interview was conducted by eight graduate students who patronized
authentic Chinese restaurants for the past six months. One of authors functioned as a
moderator. Participants freely discussed their criteria in evaluating the quality of the
physical environment, food quality, service quality, and the restaurant image.
Responses from the focus group helped to construct and refine the questionnaire. To
further ensure the content validity of the measurement scales, this study also
incorporated academic and industry experts’ suggestions (i.e. two professors in two
hospitality programs and a general manager at the authentic restaurant). In addition, a
pilot test was conducted with 30 actual customers at an authentic Chinese restaurant as
a preliminary test of the final version. Based on the results of the content adequacy
assessment, slight modifications of questions were made. All of these multiple steps
helped to ensure that the items selected had acceptable psychometric qualities with
respect to the food, service, physical environment, restaurant image, customer
perceived value, customer satisfaction, and behavioral intentions in the authentic
Chinese restaurant context.
Finally, data were collected from customers at an authentic upscale Chinese
restaurant located in a Southeastern state in the USA. The restaurant delivered the
authentic Chinese food as well as authentic Chinese atmosphere. The menu was
developed in both Chinese and English versions. Most of the interior materials in the
dining area of the restaurant were directly imported from the mainland China. In order
to select the authentic Chinese restaurant, a Chinese restaurant directory was first used
to identify the 42 Chinese restaurants located in a metropolitan city. Then, based on the
criteria of selecting authentic Chinese restaurants (e.g. interior design and decor,
characteristics of chefs, and menu) determined by the consultation with hospitality
professors and restaurant owners, four authentic Chinese restaurants were identified
and remained as the sampling frame. Next, one of the authors contacted each of the
four restaurants to discuss the purpose of the study and to receive the approval for
IJCHM data collection. Only one owner gave permission to collect the data on his restaurant’s
24,2 premises. During the data collection process, respondents were selected at different
times of the day and on different days of the week to ensure an adequate representation
of the population. Restaurant staff distributed questionnaires to randomly selected
customers while they were waiting for the dessert or check after finishing their main
entrée. They explained the purpose of the study and asked if they were willing to
210 participate in the personally administered survey. A total of 310 samples were collected
from October to November in 2008. After deleting ten surveys that contained
incomplete responses, 300 questionnaires were used for the final data analysis.
Data analysis
The testing of the hypotheses in this study adopted a structural equation modeling (SEM)
designed to simultaneously examine the structural relationships among the proposed
constructs. Following Anderson and Gerbing’s (1988) two-step approach, this study
checked the measurement model first and structural model consequently using AMOS
18. Also, the SEM analysis was based on the maximum likelihood method (Byrne, 1998;
Mueller, 1996) as an estimation method for model evaluation and procedures. Olsson et al.
(2000) stated that under the conditions of misspecification, the maximum likelihood
method could represent more realistic indexes of overall fit and less biased parameter
values for paths, as compared to other approaches such as generalized least square. If the
sample size is too big (e.g. 400 to 500), the maximum likelihood method becomes too
sensitive. Consequently, any difference can be easily detected (Hair et al., 1998). However,
300 samples for the final data analysis in this study were suitable for the maximum
likelihood method since it is satisfactory for the minimum sample size of 150.
Results
Sample characteristics
The study’s respondents were approximately equally divided by female (50.3 percent)
and male (49.7 percent). Many of respondents held bachelor’s degrees (43 percent),
followed by some college degrees (28 percent), high school degrees (18 percent), and
graduate degrees (7 percent). The main age category of respondents was 46-55 years of
age (30 percent), followed by over 55 years of age (23 percent), 36-45 years of age
(20 percent), 26-35 years of age (17 percent), and 18-25 years of age (10 percent),
reflecting that more mature customers patronize the restaurant than do younger
customers. Also, participants were mostly Caucasian (58 percent), followed by Asian
(22 percent), Hispanic (12 percent), and African American (8 percent). This study
showed that 50.7 percent of respondents were repeat visitors, while 49.3 percent
of respondents were first-time visitors.
Model comparisons
After confirming the measurement model, the proposed structural model was
compared with an alternative model. In this study, it is hypothesized that three
Gender
Male 149 49.7
Female 151 50.3
Age
# 25 29 9.7
26-35 51 17.0
36-45 61 20.3
46-55 89 29.7
$ 56 70 23.3
Education
Less than high school degree 10 3.3
High school degree 54 18.0
Some college 85 28.3
College graduate 129 43.0
Graduate degree 22 7.3
Ethnic background
African American 24 8.0
Asian 67 22.3
Hispanic 36 12.0
Caucasian/White 173 57.7
Past experience
First time visitors 148 49.3 Table II.
Repeat visitors 152 50.7 Profile of the respondents
IJCHM
QPE FQ SQ Image Value CS BI
24,2
QPE 1.00
FQ 0.25 (0.06) 1.00
SQ 0.14 (0.02) 0.49 (0.24) 1.00
Image 0.18 (0.03) 0.30 (0.09) 0.37 (0.14) 1.00
212 Value 0.16 (0.03) 0.36 (0.13) 0.28 (0.08) 0.42 (0.18) 1.00
CS 0.15 (0.02) 0.33 (0.11) 0.15 (0.02) 0.25 (0.06) 0.47 (0.22) 1.00
BI 0.13 (0.02) 0.20 (0.04) 0.12 (0.01) 0.20 (0.04) 0.46 (0.21) 0.57 (0.32) 1.00
Reliability 0.74 0.78 0.74 0.74 0.72 0.71 0.84
AVE 0.53 0.52 0.54 0.55 0.62 0.63 0.54
Mean 6.38 6.32 6.39 6.40 6.19 6.31 6.28
Std dev. 0.44 0.40 0.43 0.41 0.46 0.43 0.47
Table III. Notes: QPE ¼ Quality of physical environment; FQ ¼ Food quality; SQ ¼ Service quality;
Correlations (squared Image ¼ Restaurant image; CS ¼ Customer satisfaction; BI ¼ Behavioral intentions;
correlations), reliability, AVE ¼ Average variance extracted; mean values are based on seven-point scales; all correlations
AVE, and mean are significant at p , 0.01
Figure 2.
A competing model
emerged (Dx2 ¼ 37:7, Ddf ¼ 3, p , 0.001). It is clear that based on the criterion of The influence of
goodness of fit indices and chi-square difference, the proposed model significantly fits the physical
better than the competing model. Thus, the originally proposed model was used for
further analyses. environment
Figure 3.
Results of the proposed
model
IJCHM customer satisfaction-behavioral intentions path (b43 ¼ 0.68, t ¼ 7.95) showed a
24,2 significantly positive sign, supporting H5 and H6.
As shown in Figure 3, with respect to antecedents of image, food quality
(g21 ¼ 0.43, t ¼ 3.63) served as a stronger predictor of image than the quality of
physical environment (g21 ¼ 0.22, t ¼ 0.02) and service quality (g13 ¼ 0.23, t ¼ 2.83).
Likewise, food quality (g22 ¼ 0.18, t ¼ 2.23) was found to be the only positive
214 antecedent to customer perceived value, whereas the quality of physical environment
(g21 ¼ 0.01, t ¼ 0.02) and service quality (g23 ¼ 2 0.12, t ¼ 2 0.95) were not related to
customer perceived value. These findings imply that food quality is a major antecedent
of enhancing satisfaction and favorable behavioral intentions through image and
customer perceived value.
Mediation test
None of previous studies have examined the relationships between three dimensions of
restaurant service quality, restaurant image, perceive value, and customer satisfaction
within a conceptual model. To more fully understand the relationships between these
variables, particularly the relationships between image-value-satisfaction, this study
tested whether customer perceived value exercises the mediating effect on
image-satisfaction relationship (see Table IV). First, the image-satisfaction
relationship without customer perceived value was tested. The relationship
(b31 ¼ 3.32, t ¼ 4.12) turned significant without the mediator of customer perceived
value. Second, the constrained model that fixed the image-satisfaction relationship to
zero (0) was estimated to obtain chi-square statistics. Chi-square difference between the
constrained model (x2 ¼ 904:5, df ¼ 365) and the original structural model
(x2 ¼ 904:3, df ¼ 364) was calculated. When the p-value for this difference is larger
than 0.05, it implies that the constrained model is not statistically different from the
original model, which is an indicator of a full mediation. As presumed, the p-value for
the chi-square difference (Dx2 ð1Þ ¼ 0:2, p . 0.05) was greater than 0.05, so customer
perceived value was found to serve as a full mediator. In sum, the insignificant direct
relationship between image and customer satisfaction can be attributed to the full
mediating effect of customer perceived value (Holland, 1988; Sobel, 1990).
Discussion
Summary of the study
The purpose of this study was to propose an integrated model that examines the
relationships among three elements of quality dimensions (physical environment, food,
and service), restaurant image, customer perceived value, customer satisfaction, and
Chi-square difference
between constrained
Image ! CS without Original structural and original structural
value Constrained model model models
Table IV. b31 ¼ 3.32, t ¼ 4.12 x2 ¼ 904.5, df ¼ 365 x2 ¼ 904.3, df ¼ 364 Dx2 (1) ¼ 0.2 p . 0.05
The testing of a perfect
mediating effect for value Notes: Image ¼ Chinese restaurant image; CS ¼ Customer satisfaction
behavioral intentions in a Chinese restaurant context. The results show that all three The influence of
elements of restaurant service quality dimensions were significant determinants of the the physical
restaurant image. While the food quality was also found to be a significant predictor of
customer perceived value, the quality of the physical environment and the service was environment
not found to be a significant antecedent of customer perceived value; these findings run
contrary to a majority of previous studies. Moreover, these findings indicate that the
restaurant image is a significant determinant of customer perceived value. While 215
customer perceived value was the significant determinant of customer satisfaction, the
restaurant image was not a significant predictor of customer satisfaction. In addition,
the current study reinforces the positive impact of customer satisfaction on loyalty
behaviors. Customers’ perceptions of the three elements of quality dimensions
explained 54 percent of variance in restaurant image. However, 35 percent of variance
in customer perceived value and 47 percent of variance in customer satisfaction were
explained by independent latent variables. The overall variance explained in
behavioral intentions was 56 percent, indicating the proposed model in this study could
well predict and explain customer behavioral intentions in the Chinese restaurant
context.
Theoretical implications
From a theoretical standpoint, this study makes important contributions to the
hospitality literature beyond previous studies. Although this study has some levels of
similarities with some previous studies (Chow et al., 2007; Ryu and Han, 2010), it is
important to understand how this study is unique from previous studies. For example,
Chow et al. (2007) examined the relationships among three dimensions of service
quality (i.e. interaction quality, physical quality, and outcome quality), customer
satisfaction, and frequency of patronage in the context of full-service restaurant. In
addition, Ryu and Han’s (2010) study investigated the relationships between three
determinants of quality dimensions (food, service, and physical environment), price,
customer satisfaction, and behavioral intention in the context of quick-casual
restaurant. Similar to this study, these two studies captured three dimensions of
foodservice quality (i.e. food, service, and physical environment). They also intended to
examine the influence of three dimensions of foodservice quality (food, service,
physical environment) on customer response such as customer satisfaction and
behavioral intentions in the restaurant industry. However, there are some differences
between the present study and those previous studies. First, not to mention of using
different outcome variables the major focus of the current study is to examine how
customers’ perceived foodservice quality influence their perceived image toward the
restaurant. In contrast, the main objective of Chow et al.’s (2007) study was to measure
service quality of restaurants in the context of China and to examine the relationships
of service quality, customer satisfaction, and frequency of patronage. The primary
focus of Ryu and Han’s (2010) study was to investigate how customers’ perceived
foodservice quality affect their satisfaction level and how perceived price act as a
moderator between foodservice quality and customer satisfaction. Second, it is also
very important to note that very limited amount of research has been undertaken to
examine the antecedents and consequences of restaurant image. To the best of our
knowledge Ryu et al. (2008)’s study is the only study that investigated the relationships
IJCHM between restaurant image and outcome variables, such as customer value, customer
24,2 satisfaction, and behavioral intentions in the restaurant industry. However, this study
did not examine the relationships between (restaurant service) quality and (restaurant)
image. Third, the relative importance of foodservice quality dimensions in conjunction
with other variables (e.g., restaurant image, perceived price, customer perceived value,
customer satisfaction, and behavioral intentions) can vary among different contexts.
216 However, the previous literature did not clearly address if customers were primarily
driven by food, atmosphere, or human service to different restaurant sectors such as
fast-casual restaurants or authentic (Chinese) restaurants. Therefore, we believe the
current study has merits to contribute to the existing literature by differentiating this
study from the previous studies to some extents.
While the importance of brand image, organization image, store image, corporate
image, or destination image has been widely discussed in the marketing literature, little
research has proposed the integrative model that investigates the antecedents and
outcome variables of restaurant image in explaining customers loyalty behavior. This
study proposes a conceptual model that explicitly accounts for the effects of three
major elements of restaurant service quality (physical environment, food, service) on
restaurant image, customer perceived value, customer satisfaction, and behavioral
intentions in order to understand comprehensive evaluation of restaurant experience.
Thus, this study provides a more comprehensive view in understanding the role of
three components of restaurant service quality and restaurant image on consumer
behavior.
One of the interesting theoretical contributions of this study can be found the
causality direction between quality and image. This study hypothesized that three
dimensions of restaurant service quality had positive impacts on the restaurant image
in the proposed model. In contrast, a few previous studies claimed the direct causal
impact from the image to perceived quality (Cretu and Brodie, 2007; Loureiro and
Gonzalez, 2008; Yoo et al., 2000). The empirical findings of this study indicate that the
framework with the causality from quality to image is superior to the one with
causality from image to quality. It is logical that the excellent quality of food and
service will lead to a great restaurant brand image in the context of restaurant
business; however, the opposite link may not work well in the restaurant context. Great
restaurant image does not necessarily guarantee perfect execution of service guarantee
and high food quality. Thus, under the context of the restaurant industry, the causality
direction between quality and image is superior to the opposite direction that was
empirically supported in other industry contexts.
A noticeable finding of current study is that customer perceived value served as a
perfect mediator over an image-satisfaction path. Ryu et al. (2008) first found that the
restaurant image had not only a direct but also an indirect effect on customer perceived
value and customer satisfaction in the context of quick-casual restaurants. However,
the findings of this study indicate that the consumer evaluation process flows from
image to satisfaction via customer perceived value, not directly from image to
satisfaction. This supports the notion that customers highly rely on customer
perceived value to evaluate their satisfaction, while customer perceived value is
significantly influenced by image. In other words, restaurant image, derived from the
restaurant quality, determines customer perceived value that in turn affects
satisfaction. The positive effect of customer perceived value on satisfaction draws on The influence of
the logic that cognition triggers affect (Fishbein and Ajzen, 1975). Customer perceived the physical
value is considered a cognitive construct since it is determined through a cognitive
trade-off between quality and sacrifice. On the other hand, satisfaction is known as an environment
affective construct due to its association with emotion (Oliver, 1997). Therefore,
customer perceived value can influence satisfaction in that the cognitive process
induces affective responses. Due to non-significant image-satisfaction path arising 217
from the perfect mediator, the mediating effect of image was found over quality of
physical environment/food quality/service quality-image-value.
Managerial implications
All three components (i.e. food, physical environment, service) of restaurant service
quality function as significant contributors to restaurant image in the context of
authentic Chinese restaurants. Since all three elements matter to customers’ perceived
image about the Chinese restaurant, the restaurant manager needs to know the relative
importance of each of these elements with regards to the restaurant image to better
understand the distinct role of each individual component. The findings of this study
further reveal that out of all three components, the quality of food served as the
greatest contributor to the restaurant image in authentic Chinese restaurants. Good
food is commonly viewed as an essential component of customer satisfaction and
repeat patronage decisions in the restaurant industry (Namkung and Jang, 2007;
Sulek and Hensley, 2004). The findings of this study reinforce that food quality is
indeed the most important factor affecting the restaurant image, which in turn affects
customer perceived value, customer satisfaction, and behavioral intentions such as
intent to return and spread positive word-of-mouth. The present study suggests that a
priority should be given in maintaining and improving high-quality food rather than
cost savings to establish a favorable image towards the Chinese restaurant that
differentiate it from competitors.
The findings indicate that the restaurant image can be influenced by not only good
food but also by pleasant physical surroundings and good service. Today, an exotic
experience solely depending on food may not be enough to attract and maintain
consumers to a restaurant. At some restaurants, customers may give high marks to
a number of design aspects (e.g. Planet Hollywood restaurants) or service
(e.g. Four Seasons) when they perceive the restaurant image. The findings of this
study reinforced that both pleasing environment and good service positively influence
customers’ perception of the restaurant image. Restaurant managers must utilize the
effects of the dining environment and service to build customers’ favorable image.
Specifically, this study finds that the physical environment is the second most
important contributor to the restaurant image. This finding indicates that atmosphere
is another salient component of a dining experience. Therefore, restaurant managers
should continually plan, build, change, and control the restaurant’s physical
surroundings to establish distinctive image that differentiate it from its competitors.
For instance, a restaurant can utilize various exotic-style decorations (e.g. Chinese
brush drawings) and/or traditional Chinese music to communicate the unique image of
an “authentic Chinese restaurant” to the target markets.
IJCHM Interestingly, this study finds that only good food contributes to customers’
24,2 perception of value with the dining experience in the Chinese restaurant context. This
finding is inconsistent with previous studies (Han and Ryu, 2009; Liu and Jang, 2009b).
Chinese cuisine has been known for its taste and customer perceived value to American
consumers. However, Jang et al. (2009) recently examined American customers’
perception of Asian foods (Chinese, Indian, Japanese, Korean, Thai, and Vietnamese)
218 and found that Chinese food did not have many distinctive strengths on important
attributes (e.g. taste, freshness, and attractiveness), compared to other Asian foods.
The findings of the present study suggest that the managers indeed needs to pay the
most attention to food since it is the most vital component of the restaurant experience
affecting customer perceived value and consequently customer satisfaction. To meet or
exceed the demanding standards of food-savvy clientele, restaurant should provide
customers with the exceptional mixture of good taste, variety of menu, nutritional
value, attractiveness in presentation, freshness, and enticing aroma. However,
surprisingly an aesthetically pleasing atmosphere and good service were not found to
be significant determinants of customer perceived value in the context of a Chinese
restaurant. This indicates that customers in Chinese restaurants do not much perceive
atmosphere and service as significant additional benefits considering the fact that
many customers might be primarily driven to Chinese restaurants by good taste and
low price instead of atmospherics and employee service. In this vein, the findings of
this study suggest useful implications for restaurateurs to accomplish a balance or
focus on three components of restaurant service quality. The results can be also
meaningful in prioritizing limited business resources in enhancing customers’ pleasant
restaurant experience that strengthen customer perceived value, and consequently
customer satisfaction and favorable behavioral intentions.
For restaurateurs, the findings in relation to the mediating role of customer
perceived value suggest that achieving customer satisfaction depends not only on the
restaurant’s ability to provide customer perceived value, but also to establish a
favorable restaurant image. Thus, the relationship between restaurant image,
perceived value, and customer satisfaction is something that restaurateurs are eager to
intensify to increase customer loyalty behavior (i.e. intention to revisit, willingness
to recommend). In particular, restaurateurs should manage and market three
components of restaurant service quality (i.e. food, physical environment, and service)
in order to build favorable image of authentic Chinese restaurants, which in turn
affects customer perceived value.
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Appendix The influence of
the physical
Factors Skewness c.r. Kurtosis c.r. environment
Factor 1: Quality of physical environment (QPE)
QPE 1 The restaurant had attractive interior design and décor 20.25 21.79 20.26 20.93
QPE 2 The background music is pleasing 20.12 20.86 20.07 20.25
QPE 3 The dining areas are thoroughly clean 20.15 21.07 0.36 1.29 223
QPE 4 Employees are neat and well dressed 20.23 21.64 20.41 21.46
Factor 2: Food quality (FQ)
FQ 1 The food was delicious 0.16 1.14 20.46 21.64
FQ 2 The food was nutritious 20.07 20.50 0.26 0.93
FQ 3 The restaurant offered a variety of menu items 20.05 20.36 20.39 21.39
FQ 4 The restaurant offered fresh food 20.09 20.64 20.19 20.68
FQ 5 The smell of the food was enticing 20.27 21.93 20.45 21.61
FQ 6 The food presentation was visually attractive 20.04 20.29 20.39 21.39
Factor 3: Service quality (SQ)
SQ 1 Employees served me food exactly as I ordered it 20.21 21.50 20.29 21.04
SQ 2 Employees provided prompt and quick service 20.03 20.21 20.52 21.86
SQ 3 Employees are always willing to help me 20.13 20.93 20.49 21.75
SQ 4 Employees made me feel comfortable in dealing with them 20.25 21.79 20.51 21.82
Factor 4: Restaurant image (CRI)
Image 1 The restaurant is sophisticated 20.26 21.86 0.03 0.11
Image 2 It has a cheerful and enchanting atmosphere 20.07 20.50 20.36 21.29
Image 3 The restaurant has authentic Chinese cuisine 20.03 20.21 0.42 1.50
Image 4 It tastes good compared with price 20.15 21.07 0.11 0.39
Factor 5: Customer perceived value (VAL)
Value 1 This restaurant offered good value for the price 20.18 21.29 0.54 1.93
Value 2 The restaurant experience was worth the money 20.13 20.93 0.15 0.54
Value 3 This restaurant provides me great value as compared
to others 20.17 21.21 0.23 0.82
Factor 6: Customer satisfaction (CS)
CS 1 I am very satisfied with my overall experience at this
restaurant 20.24 21.71 0.36 1.29
CS 2 Overall, this restaurant puts me in a good mood 20.02 20.14 0.5 1.79
CS 3 I have really enjoyed myself at this restaurant 20.07 20.50 0.16 0.57
Factor 7: Behavioral intentions (BI)
BI 1 I would like to come back to this restaurant in the future 20.16 21.14 20.06 20.21
BI 2 I would consider revisiting this restaurant in the future 20.22 21.57 0.43 1.54
BI 3 I would recommend this restaurant to my friends or others 20.23 21.64 0.26 0.93
BI 4 I would say positive things about this restaurant to others 20.03 20.21 0.49 1.75
BI 5 I would encourage others to visit this restaurant 20.26 21.86 0.18 0.64
Table AI.
Note: c.r. ¼ Critical ratio Assessment of normality
Corresponding author
Kisang Ryu can be contacted at: kisang72@hotmail.com