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Moderating Role of Dining Motivation Article 2022

   

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Impact of Restaurant Experience on Brand Image and Customer Loyalty:
Moderating Role of Dining Motivation
Article in Journal of Travel & Tourism Marketing · August 2012
DOI: 10.1080/10548408.2012.701552
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Impact of Restaurant Experience on Brand Image and
Customer Loyalty: Moderating Role of Dining Motivation
Naehyun (Paul) Jin a , Sangmook Lee a & Lynn Huffman b
a Department of Nutrition Hospitality, and Retailing, Texas Tech University, College of Human
Sciences, Lubbock, TX, 79409, USA
b Department of Nutrition Hospitality, and Retailing, Texas Tech University, College of
Human Sciences, Lubbock, TX, USA
Version of record first published: 08 Aug 2012
To cite this article: Naehyun (Paul) Jin, Sangmook Lee & Lynn Huffman (2012): Impact of Restaurant Experience on Brand
Image and Customer Loyalty: Moderating Role of Dining Motivation, Journal of Travel & Tourism Marketing, 29:6, 532-551
To link to this article: http://dx.doi.org/10.1080/10548408.2012.701552
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Journal of Travel & Tourism Marketing, 29:532–551, 2012
Copyright © Taylor & Francis Group, LLC
ISSN: 1054-8408 print / 1540-7306 online
DOI: 10.1080/10548408.2012.701552
IMPACT OF RESTAURANT EXPERIENCE ON
BRAND IMAGE AND CUSTOMER LOYALTY:
MODERATING ROLE OF DINING MOTIVATION
Naehyun (Paul) Jin
Sangmook Lee
Lynn Huffman
ABSTRACT. This study seeks to determine which restaurant experiences influence the image of a
restaurant’s brand and formation of customers’ loyalty. The research examines the connections among
restaurant experiences, brand image, satisfaction, and loyalty in the context of full-service restaurants.
This study also investigates the moderating effect of customers’ dining motivations on the formation of
brand image. The results of this study suggest that: (a) A restaurant’s environment and food quality pos-
itively influences brand image and customers’ satisfaction, (b) customers’ perceptions of price fairness
do not influence brand image but does affect customers’ satisfaction, (c) development of customers’
positive brand image does not drive satisfaction but does influence loyalty in full-service restaurants,
and (d) customers’ dining motivations moderate the relationship between restaurant experiences and
perceptions of brand image. These results provide a basis for investigating which restaurant experiences
are critical in eliciting development of a positive brand image and which have behavioral consequences.
This study also offers mangers a perspective for developing marketing strategies to strengthen brand
image in full-service restaurants.
KEYWORDS. Restaurant experiences, brand image, customer loyalty, dining motivation
INTRODUCTION
A well-respected brand—a message to the
customer of a certain level of product/service
quality—is, arguably, one of the most important
sources of information at the point of purchase
because brand image reduces the complexity
of purchasing products/services with confi-
dence (Muller, 1998). Once customers associate
positive experiences with a brand, they are often
Naehyun (Paul) Jin (E-mail: naehyun.jin@ttu.edu) and Sangmook Lee (E-mail: sm.lee@ttu.edu) are doc-
toral students in the Department of Nutrition, Hospitality, and Retailing at Texas Tech University, College of
Human Sciences, P.O. Box 41240, Lubbock, TX 79409, USA.
Lynn Huffman, PhD, is Professor in the Department of Nutrition, Hospitality, and Retailing at Texas Tech
University, College of Human Sciences, Lubbock, TX, USA (E-mail: lynn.huffman@ttu.edu).
Address correspondence to: Naehyun (Paul) Jin at the above address.
loyal to that brand and recommend it to oth-
ers (Tepeci, 1999). Consequently, building a
favorable brand image is an important market-
ing strategy in order for companies to sustain
an increased revenue stream in today’s market-
place.
Effective management of positive brand
image is also imperative in the restaurant indus-
try to differentiate one restaurant from its com-
petitors and to elicit customers’ satisfaction
532Downloaded by [Texas Technology University], [Naehyun (Paul) Jin] at 08:29 08 August 2012
Moderating Role of Dining Motivation Article 2022_3

Jin, Lee, and Huffman 533
and loyalty in the midst of rapid increases in
the number of restaurants and fierce competi-
tion among them (Ryu, Han, & Kim, 2008).
Since customers’ positive brand images lead
to continuing purchases of the same brand
from among the various alternatives, under-
standing the mechanism for developing a dis-
tinctive brand image in the restaurant industry is
important.
A meaningful examination involves the rela-
tionship between customer experience in restau-
rants and brand image. Customers’ perceptions
of brand image and their post-consumption
responses may differ based on their experiences
in a restaurant. Generating high-quality cus-
tomer experience is one of the central concepts
to creating a loyal customer base and a sustain-
able competitive advantage (Berry, Carbone, &
Haeckel, 2002; Berry, Wall, & Carbone, 2006;
Pine & Gilmore, 1998; Verhoef et al., 2009).
In line with this view, Pine and Gilmore (1998)
stressed that creating a distinctive customer
experience can bring enormous economic value
to firms. Encouraging these experiences has
become the core focus of the hospitality sector
because many products in the hospitality indus-
try are experiential and can be categorized as a
“total experiences” (Williams, 2006). Moreover,
the relationship between customer experience
and brand image inextricably links to business
success in the restaurant industry (Kim & Kim,
2004).
Despite the increasing importance of brand
image in the hospitality industry, particularly
in the restaurant industry, the subject has not
enjoyed scrutiny in depth. Although research
has considered restaurant experiences and brand
image separately in a number of studies, simul-
taneous examination of the two in the restau-
rant context has not occurred. In other words,
investigators have not considered the mecha-
nism for the effect of customers’ experiences
with restaurant service on formation of brand
image. In addition, little research has explained
the relationships among restaurant experiences,
brand image, customers’ satisfaction, and cus-
tomers’ loyalty. For example, one question that
remains unanswered concerns whether or not
brand image predicts both customer satisfaction
and customer loyalty in the restaurant industry.
Furthermore, this study examines the mod-
erating effect of dining motivation in order to
deepen the holistic framework for formation
of consumer brand image. Research has shown
that dining motives vary according to restau-
rant types (Kim, Raab, & Bergman, 2010). For
example, a customer’s motivation at a quick
service restaurant is different from that at a full-
service restaurant. Understanding of customer
dining motivations and their impacts on dining
experiences is a critical issue to restaurateurs
who must develop effective marketing strate-
gies to satisfy customers and encourage them
to patronize the restaurant. Identifying the influ-
ence of dining motivation on consumer behav-
ior allows marketers to better tailor services
for specific market segments. To the best of
current knowledge, no prior research has stud-
ied the moderating role of dining motivation
on the relationship among restaurant experi-
ences, brand image, and consumers’ postdin-
ing behavior. Dining motivation may affect this
relationship because it determines consumers’
evaluative judgments during their dining expe-
riences (Park, 2004). This study proposes that
quick service/convenience dining consumers
will be more positively affected by functional
aspects (food quality) in evaluating brand image
than people who value hedonic aspects (envi-
ronment) of social occasions in dining experi-
ences. Thus, the study attempts to incorporate
the moderator “dining motivation” to evaluate
how customers’ main reasons for dining out
(quick service/convenience versus social occa-
sion) strengthen or lessen the effect of their per-
ceived restaurant experiences on brand image
and satisfaction.
The primary objectives of this study, there-
fore, are to: (a) propose a theoretical model that
focuses on the relationships among restaurant
experience, brand image, and customer loyalty;
(b) empirically examine which restaurant expe-
riences elicit positive brand images; (c) investi-
gate the relationship among brand image, cus-
tomer satisfaction, and loyalty in the restaurant
industry, and (d) explore the moderating effect
of dining motivations (differentiating customers
for quick service/convenience and customers
for social occasion) on restaurant experiences,
brand image, satisfaction, and loyalty.Downloaded by [Texas Technology University], [Naehyun (Paul) Jin] at 08:29 08 August 2012
Moderating Role of Dining Motivation Article 2022_4

534 JOURNAL OF TRAVEL & TOURISM MARKETING
LITERATURE REVIEW AND
HYPOTHESES
Brand Image
Brand image has been a vital concept in con-
sumer behavior research because it affects indi-
viduals’ subjective perceptions and consumers’
senses of value, satisfaction, and consequent
behavior (Cretu & Brodie, 2007; Dobni &
Zinkhan, 1990; Pavesic, 1989; Verhoef et al.,
2009). Due to the complex nature of brand
image, little consensus exists for a definition.
For instance, Dobni and Zinkhan (1990) defined
it as “a subjective and perceptual phenomenon
that is formed through consumer interpreta-
tion, whether reasoned or emotional” (p. 118).
Further, Keller (1993) described brand image
as a set of perceptions that the consumers
form as reflected by brand associations. Despite
conceptual deviations, clearly marketing activi-
ties, contextual variables, and each customer’s
characteristics affect and form brand image
(Dobni & Zinkhan, 1990). Hence, brand image
plays an important role, especially in situations
that make differentiation of products or ser-
vices based on tangible quality features difficult
(Mudambi, Doyle, & Wong, 1997). Moreover,
since brand image for a restaurant is often
beyond visible or tangible factors, crucial to the
success of food-service firms is strong brand
image, which aids customers’ visualizing and
therefore developing positive attitudes toward
services prior to purchasing (Pavesic, 1989).
Based on these ideas and theories, this study
views brand image as made up of emotions,
ideas, or attitudes that customers associate with
full-service dining restaurants.
Restaurant Experiences
Environment
Kotler (1973) defined atmospherics as the
conscious designing of space to elicit specific
emotional effects in consumers and increase
their purchasing probability. Investigating the
influence of physical surroundings on customers
and employees, Bitner (1992) introduced the
term servicescape to explain “the built envi-
ronment” or, more specifically, “the man-made,
physical surroundings as opposed to the natu-
ral or social environment” (p. 58), and identi-
fied three dimensions of atmospherics: “ambient
conditions”; “spatial layout and functionality”;
and “signs, symbols, and artifacts.”
Additionally, Wakefield and Blodgett (1999)
proposed that the tangible physical environment
functions as a pivotal factor in strengthening
excitement in leisure settings, which, in turn,
results in determining customers’ intentions to
re-patronize and willingness to recommend.
A potentially important role of atmospherics is
to generate a positive first impression that will
enhance customers’ service experiences (Berry
et al., 2006). For example, creative use of phys-
ical design in a restaurant’s service leads to
specific marketing achievements such as pos-
itive customer perception of quality, positive
evaluation of experience, and positive attitude
(Han & Ryu, 2009).Thus, in this study, envi-
ronment refers to the man-made physical condi-
tions in restaurants, organized by the restaurant
operators, as opposed to a naturally occurring
environment.
Food Quality
In a restaurant setting, food quality is the
most essential factor influencing customers’
decisions to patronize a restaurant, and it is an
influential element for customer loyalty (Ha &
Jang, 2010b; Namkung & Jang, 2007; Sulek &
Hensley, 2004). Emphasizing the importance of
food quality in the dining experience, previous
studies evaluated food quality according to vari-
ous characteristics (Josiam & Monteiro, 2004;
Kivela, Inbakaran, & Reece, 2000; Raajpoot,
2002). For example, Kivela et al. (2000) iden-
tified the tastiness of food, menu variety, and
nutrition as major attributes of food quality and
investigated the impact of excellence of food on
customer satisfaction and revisiting patronage.
Focusing on the food service industry,
Raajppot (2002) included food presentation,
serving size, menu design, and variety of food
to assess food quality. In another study, Josiam
and Monteiro (2004) stated that seven general
food attributes determine quality: taste, presen-
tation, menu variety, healthful options, fresh-
ness, appropriate temperature, and food safety.Downloaded by [Texas Technology University], [Naehyun (Paul) Jin] at 08:29 08 August 2012
Moderating Role of Dining Motivation Article 2022_5

Jin, Lee, and Huffman 535
More recently, Ha and Jang (2010b) chose taste,
portion, menu variety, and healthful options to
measure food quality.
Price Fairness
Zeithaml (1988) conceptualized price as
“what is given up or sacrificed to obtain a prod-
uct” (p. 10). Further, price can represent both
objective price and perceived price (Jacoby &
Olson, 1977). Objective price is the actual price
of serving the product; whereas, perceived price
refers to the price as understood by the customer
(Jacoby & Olson, 1977). A further suggestion
is that the objective price of a product/service
becomes meaningful to the customer when
interpreting the price subjectively (Oh, 2000).
In line with this view, price fairness can
become “a consumer’s assessment and asso-
ciated emotions of whether the difference (or
lack of difference) between a seller’s price and
the price offered by a comparable other party
is reasonable, acceptable, or justifiable” (Xia,
Monroe, & Cox, 2004, p. 3). This shows that
the basis for a price evaluation is the comparison
between actual price and reference price, com-
petitors’ prices, costs, and/or other consumers’
costs (Kahneman, Knetsch, & Thaler, 1986).
Thus, a widely accepted notion is that price
fairness or unfairness derives from comparing
one’s reference price and the actual price paid
(Petrick, 2005). The impact of this price percep-
tion on consumers’ behavior is likely prominent
in the restaurant industry because customers’
experiences will not be identical, despite pro-
viding similar services from the same service
providers (Han & Ryu, 2009). This suggests
that the prices offered at a restaurant should
reflect what the market expects to pay in order to
reduce consumers’ perceptions of unfair prices.
Thus, price fairness, in this study, is consumers’
subjective perceptions of sellers’ prices.
Customer Satisfaction
As one of the most critical factors influenc-
ing customers’ future behavior, satisfaction has
undergone extensive research as an organiza-
tional goal, especially in the highly competitive
hospitality and tourism industry. Westbrook and
Oliver (1991) defined satisfaction as “a com-
parison of the level of product or service per-
formance, quality, or other outcomes perceived
by the consumer with an evaluative standard”
(p. 85). The key foundational concept of satis-
faction is the expectancy-disconfirmation model
(Lewin, 1938), which posits that perceived per-
formance exceeding consumers’ expectations
elicits customers’ satisfaction. In contrast, if
perceived performance fails to meet consumers’
expectations, a negative disconfirmation leads to
consumers’ dissatisfaction (Oliver, 1980).
However, another suggestion is that eval-
uation of satisfaction includes affective and
cognitive variables since emotion is an impor-
tant source of human motivation and relates
to judgments of satisfaction (Westbrook, 1987;
Westbrook & Oliver, 1991). As an example,
Westbrook (1987) argued that incorporation of
emotional aspects contributes to evaluations of
satisfaction beyond expectancy-disconfirmation
beliefs. Hence, understanding both the cogni-
tive and affective aspects of satisfaction can aid
restaurateurs’ designing and delivering appro-
priate services that cater to customers’ demands
(Ha & Jang, 2010a; Namkung & Jang, 2008).
Accordingly, in this study, customer satisfaction
refers to cognitive evaluation of service quality
and affective aspects generated by experiences
during consumption.
Customer Loyalty
Customer loyalty is an important goal for
marketing in service marketing industries as it is
a pivotal component for a company’s long-term
competitive edge. Oliver (2010) defined loyalty
as “a deeply held commitment to re-buy or repa-
tronize a preferred product or service consis-
tently in the future, despite situational influences
and marketing efforts having the potential to
cause switching behavior” (p. 432). According
to Oliver (1999, 2010), four sequential stages
constitute achievement of customers’ loyalty
(cognition-affective-conative-action): (a) Brand
attribute aspects are the bases for cognition loy-
alty, (b) affective loyalty focuses on a positive
attitude toward a brand, (c) conative loyalty
refers to strong intentions for future exchange,
and (d) action loyalty is a commitment to aDownloaded by [Texas Technology University], [Naehyun (Paul) Jin] at 08:29 08 August 2012
Moderating Role of Dining Motivation Article 2022_6

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