The impact of perceived price justice and satisfaction on customer loyalty towards restaurant industry
DOI:
https://doi.org/10.61841/141gnk77Keywords:
Loyalty, Customer satisfaction, Revisit intention, , Restaurant management, Perceived price justiceAbstract
This study is about the perceived price justice towards customer loyalty with the customer satisfaction as the mediator. The role of pricing is crucial in today business especially when there are too many competitors in the industry. Restaurant is a kind of business that have a huge threat in rivalry among industry members. Restaurant also facing a well-informed customer where they have more knowledge and access to information. Data were collected from a selected prominent restaurant located in major cities in Indonesia. 200 respondents participated in the survey that have been done over 7 days during peak and off-peak hours. The survey was assisted by 5 research assistant that will approach customer at the restaurant compounds after they has finished their meals. The findings revealed that both that both perceived price justice and customer satisfaction have a positive relationship towards customer loyalty. Customer satisfaction at the same time become the predictors and control variable that hold a positive relationship for both parts. This study is important as it was done during the right time where the competition is stiff and customer are more knowledgeable. The fast development of technology has led to a more access to information online. Customer know exactly where there can have good meals and able to compare or read the review before making decision.
Downloads
References
[1] Ahn, J., & Thomas, T. K. (2020). The role of customers’ perceived values of integrated resort brands in destination.
Journal of Destination Marketing and Management, 15(December 2019), 100403. https://doi.org/10.1016/j.jdmm.2019.100403
[2] Balabanis, G., Reynolds, N., & Simintiras, A. (2006). Bases of e-store loyalty: Perceived switching barriers and satisfaction. Journal of Business Research, 59(2), 214–224. https://doi.org/10.1016/j.jbusres.2005.06.001
[3] Basha, M. B., Mason, C., Shamsudin, M. F., Hussain, H. I., & Salem, M. A. (2015). Consumers Attitude Towards Organic Food. Procedia Economics and Finance, 31(15), 444–452. https://doi.org/10.1016/s2212-5671(15)01219-8
[4] Bujisic, M., Hutchinson, J., & Parsa, H. G. (2014). The effects of restaurant quality attributes on customer behavioral intentions. International Journal of Contemporary Hospitality Management, 26(8), 1270–1291. https://doi.org/10.1108/IJCHM-04-2013-0162
[5] Cakici, A. C., Akgunduz, Y., & Yildirim, O. (2019). The impact of perceived price justice and satisfaction on loyalty:
the mediating effect of revisit intention. Tourism Review, 74(3), 443–462. https://doi.org/10.1108/TR-02-2018-0025
[6] Cheng, C. C., Chang, Y. Y., Tsai, M. C., Chen, C. T., & Tseng, Y. C. (2019). An evaluation instrument and strategy implications of service attributes in LOHAS restaurants. International Journal of Contemporary Hospitality Management, 31(1), 194–216. https://doi.org/10.1108/IJCHM-06-2017-0361
[7] Davras, Ö., & Caber, M. (2019). Analysis of hotel services by their symmetric and asymmetric effects on overall customer satisfaction: A comparison of market segments. International Journal of Hospitality Management, 81(May 2018), 83–93. https://doi.org/10.1016/j.ijhm.2019.03.003
[8] Hamari, J., Hanner, N., & Koivisto, J. (2020). “Why pay premium in freemium services?” A study on perceived value, continued use and purchase intentions in free-to-play games. International Journal of Information Management, 51(November 2018), 102040. https://doi.org/10.1016/j.ijinfomgt.2019.102040
[9] Hapsari, R., Clemes, M. D., & Dean, D. (2017). The impact of service quality, customer engagement and selected marketing constructs on airline passenger loyalty. International Journal of Quality and Service Sciences, 9(1), 21–40. https://doi.org/10.1108/IJQSS-07-2016-0048
[10] Hasim, M. A., Shamsudin, M. F., Ali, A. M., & Shabi, S. (2018). The relationship between sales promotions and online impulse buying in Malaysia | La relación entre las promociones de ventas y la compra por impulso en línea en Malasia. Opcion, 34(Special Is), 295–308.
[11] Hassan, S., Shamsudin, M. F., & Mustapha, I. (2019). The effect of service quality and corporate image on student satisfaction and loyalty in TVET higher learning institutes (HLIs). Journal of Technical Education and Training, 11(4), 77–
85. https://doi.org/10.30880/jtet.2019.11.04.009
[12] Hassan, Sallaudin, & Shamsudin, M. F. M. F. (2019). Measuring the effect of service quality and corporate image on student satisfaction and loyalty in higher learning institutes of technical and vocational education and training. International Journal of Engineering and Advanced Technology, 8(5), 533–538. https://doi.org/10.35940/ijeat.E1077.0585C19
[13] Hussain, S., Guangju, W., Jafar, R. M. S., Ilyas, Z., Mustafa, G., & Jianzhou, Y. (2018). Consumers’ online information adoption behavior: Motives and antecedents of electronic word of mouth communications. Computers in Human Behavior, 80, 22–32. https://doi.org/10.1016/j.chb.2017.09.019
[14] Joe, S., & Choi, C. (2019). The effect of fellow customer on complaining behaviors: the moderating role of gender. International Journal of Contemporary Hospitality Management, 31(8), 3116–3133. https://doi.org/10.1108/IJCHM-09- 2018-0717
[15] Jusoh, A., Zakuan, N., Bahari, A. Z., Ariff, M. S. M., & Hayat, M. (2012). Determining the Effects of Mobile Broadband Counter Service as Moderator Variable to the Relationship between Service Quality and Customer Satisfaction.
Procedia - Social and Behavioral Sciences, 40, 264–268. https://doi.org/10.1016/j.sbspro.2012.03.189
[16] Kadir, B., Shamsudin, M. F., Nurul, I., & Mohd, H. (2020). Relevance of Blank ’ s Customer Development Model in Selected Cases of Market-Oriented R & D Commercialization in Malaysia. Test Engineering & Management, (4256), 4256– 4259.
[17] Kasmo, A. B. ., Abdul, N., & Ismail, I. (2016). Restaurant choice behavior for Indonesian Gen Y , Gen X and Baby Boomers. 2nd International Conference on Advanced Research in Business and Social Sciences 2016(ICARBSS 2016).
[18] Konuk, F. A. (2018). The role of store image, perceived quality, trust and perceived value in predicting consumers’ purchase intentions towards organic private label food. Journal of Retailing and Consumer Services, 43(April), 304–310. https://doi.org/10.1016/j.jretconser.2018.04.011
[19] Kotler, P. (2017). Philip Kotler: some of my adventures in marketing. Journal of Historical Research in Marketing, 9(2), 203–208. https://doi.org/10.1108/JHRM-11-2016-0027
[20] Lien, C. H., Cao, Y., & Zhou, X. (2017). Service quality, satisfaction, stickiness, and usage intentions: An exploratory evaluation in the context of WeChat services. Computers in Human Behavior, 68, 403–410. https://doi.org/10.1016/j.chb.2016.11.061
[21] Lindberg-Repo, K., & Grönroos, C. (1999). Word-of-Mouth Referrals in the Domain of Relationship Marketing.
Australasian Marketing Journal (AMJ), 7(1), 109–117. https://doi.org/10.1016/s1441-3582(99)70208-9
[22] Moghavvemi, S., Lee, S. T. S. P., & Lee, S. T. S. P. (2018). Perceived overall service quality and customer satisfaction: A comparative analysis between local and foreign banks in Malaysia. International Journal of Bank Marketing, 36(5), 908– 930. https://doi.org/10.1108/IJBM-06-2017-0114
[23] Mustak, M. (2019). Customer participation in knowledge intensive business services: Perceived value outcomes from a dyadic perspective. Industrial Marketing Management, 78(November 2017), 76–87. https://doi.org/10.1016/j.indmarman.2017.09.017
[24] Nurlaila, F. (2019). Aplikasi Pemesanan Makanan pada Restoran 1953 Indonesia Berbasis Web. Jurnal Informatika Universitas Pamulang. https://doi.org/10.32493/informatika.v4i1.2585
[25] Peng, N., & Chen, A. H. (2015). Diners’ loyalty toward luxury restaurants: The moderating role of product knowledge.
Marketing Intelligence and Planning, 33(2), 179–196. https://doi.org/10.1108/MIP-03-2014-0049
[26] Raza, S. A., Jawaid, S. T., & Hassan, A. (2015). Internet banking and customer satisfaction in Pakistan. Qualitative Research in Financial Markets, 7(1), 24–36. https://doi.org/10.1108/QRFM-09-2013-0027
[27] Razak, A. A. A. A., & Shamsudin, M. F. M. F. (2019). The influence of atmospheric experience on Theme Park Tourist’s satisfaction and loyalty in Malaysia. International Journal of Innovation, Creativity and Change, 6(9), 10–20.
[28] Salem, M. A., Shawtari, F. A., Shamsudin, M. F., & Hussain, H. I. (2016). The relation between stakeholders’ integration and environmental competitiveness. Social Responsibility Journal, 12(4), 755–769. https://doi.org/10.1108/SRJ- 12-2015-0189
[29] Shahzadi, M., Malik, S. A., Ahmad, M., & Shabbir, A. (2018). Perceptions of fine dining restaurants in Pakistan: What influences customer satisfaction and behavioral intentions? International Journal of Quality and Reliability Management, 35(3), 635–655. https://doi.org/10.1108/IJQRM-07-2016-0113
[30] Shamsudin, M. F. M. F., Ali, A. M. A. M., Nadzri, F. H. F. H., & Wahid, R. A. R. A. (2019). Influence of academic program, tuition fees and location on students’ decisions to enroll at universiti: A study of kuala lumpur business school campus. Humanities and Social Sciences Reviews, 7(1), 108–112. https://doi.org/10.18510/hssr.2019.7113
[31] Shamsudin, M. F. M. F., Esa, S. A. S. A., & Ali, A. M. A. M. (2019). Determinants of customer loyalty towards the hotel industry in Malaysia. International Journal of Innovation, Creativity and Change, 6(9), 21–29.
[32] Shamsudin, M. F., Nurana, N., Aesya, A., & Nabi, M. A. (2018). Role of university reputation towards student choice to private universities. Opcion, 34(Special Issue 16), 285–294.
[33] Shamsudin, M. F., Razak, A. A., & Salem, M. A. (2018a). The role of customer interactions towards customer satisfaction in theme parks experience. Opcion, 34(Special Issue 16), 546–558.
[34] Shamsudin, M. F., Shabi, K. S., & Salem, M. A. (2018). Role of perceived credibility towards intention to use of m- commerce. Opcion, 34(Special Issue 16), 276–284.
[35] (October). https://doi.org/10.18535/ijsshi/v2i10.03
[36] Sharma, S. K., & Sharma, M. (2019). Examining the role of trust and quality dimensions in the actual usage of mobile banking services: An empirical investigation. International Journal of Information Management, 44(September 2018), 65–
75. https://doi.org/10.1016/j.ijinfomgt.2018.09.013
[37] Zailani, S., Ali, S. M., Iranmanesh, M., Moghavvemi, S., & Musa, G. (2016). Predicting Muslim medical tourists’ satisfaction with Malaysian Islamic friendly hospitals. Tourism Management, 57, 159–167. https://doi.org/10.1016/j.tourman.2016.05.009
[38] Zhang, J., Zhang, J., & Zhang, M. (2019). From free to paid: Customer expertise and customer satisfaction on knowledge payment platforms. Decision Support Systems, 127(March), 113140. https://doi.org/10.1016/j.dss.2019.113140
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
