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Impact of Hotel-restaurant Image and Quality of Physical-environment, Service, and Food on Satisfaction and Intention

   

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International Journal of Hospitality Management 63 (2017) 82–92
Contents lists available at ScienceDirect
International Journal of Hospitality Management
j o u r n a l h o m e p a g e : w w w . e l s e v i e r . c o m / l o c a t e / i j h o s m a n
Impact of hotel-restaurant image and quality of
physical-environment, service, and food on satisfaction and intention
Heesup Han a , Sunghyup Sean Hyun b,
a College of Hospitality and Tourism Management, Sejong University, 98 Gunja-Dong, Gwanjin-Gu, Seoul 143-747, Republic of Korea
b School of Tourism, Hanyang University, 17 Haengdang-dong, Seongdonggu, Seoul 133-791, Republic of Korea
a r t i c l e i n f o
Article history:
Received 5 September 2016
Received in revised form 20 January 2017
Accepted 20 March 2017
Available online 30 March 2017
Keywords:
Luxury hotel restaurant
Physical environment quality
Service quality
Food quality
Customer satisfaction
Intentions
a b s t r a c t
This study developed a theoretical framework in which overall image, image congruence, and quality of
physical environment, service, and food affect guests’ satisfaction and intentions to revisit a luxury hotel
restaurant and visit other restaurants of the same hotel by considering the influence of conspicuousness
as a moderator. The measurement model assessment revealed that all items included an acceptable level
of measurement quality. Results of the structural analysis indicated that the research variables were
in general significantly associated; quality dimensions and satisfaction had a mediating role; and the
impact of satisfaction and overall image on decision formation was greater than that of other variables.
Moreover, the structural invariance model assessment indicated that conspicuousness acted as a signif-
icant moderator. Overall, our proposed theoretical framework was found to include a sufficient power
in predicting patrons’ intentions for luxury hotel restaurant products. Using this quantitative approach,
our research objectives were wholly achieved.
© 2017 Elsevier Ltd. All rights reserved.

1. Introduction

The luxury segment of the restaurant industry has been rapidly
grown over the past two decades (Hwang and Hyun, 2013; Hyun
and Kang, 2014). Consistent with this phenomenon, in many
hotels, luxury restaurants within the property are also becoming
an important source of the hotels’ revenues, particularly in the
cities/destinations where luxury hotels are abundant (Kwon et al.,
2014). Despite its popularity, the competition in the luxury hotel
restaurant segment is getting fiercer than ever due to the enormous
increase of new restaurant openings within hotels (Kwon et al.,
2014) and the fast growth of the general luxury restaurant mar-
ket (Hwang and Hyun, 2013). This hotel restaurant sector is now
gradually reaching the maturity phase of its life cycle. Moreover,
the re-visitation rate of the luxury restaurant sector is generally
lower than other segments of the restaurant industry because of the
high price involved in dining (Hwang and Hyun, 2013). As a result,
retaining customers is one of the key challenges for luxury hotel
restaurant operators. Unearthing those factors that are important
and how such variables contribute to stimulating patrons’ repeat
Corresponding author.
E-mail addresses: heesup.han@gmail.com (H. Han), sshyun@hanyang.ac.kr
(S.S. Hyun).

purchases for hotel restaurant products is becoming more and more
crucial for the survival and success of every hotel restaurant busi-
ness.
Certainly, many researchers have utilized a variety of per-
spectives to understand variables that enhance repeat customer
patronage by minimizing the probability of switching incidents
(e.g., Back and Lee, 2009; Han et al., 2016; Hwang and Hyun, 2014;
Jamal and Goode, 2001; Kang et al., 2015). The general agreement
made by these scholars is that product image, image congruity,
quality, and satisfaction among diverse variables are the major con-
cepts in explicating customer post-purchase decision formation. In
other words, in their studies in various sectors, such constructs
as image, image congruity, quality, and satisfaction are cited as
key variables affirming patrons’ intentions to continue/terminate
the existing relation with a provider. Moreover, previous studies
in the extant consumer behavior and hospitality literature have
indicated that conspicuousness of product/service consumption
plays an essential role in customers’ post-purchase decision forma-
tion, particularly for luxurious products/services (Han et al., 2016;
Truong et al., 2008). Conspicuous consumption is undeniably tied
to luxury products and services (e.g., luxury cruise product, lux-
ury restaurant product, and luxury branded items) as customers’
economic power/achievement can be often shown through their
expenditures on luxurious goods (Han and Hyun, 2013; Mason,

http://dx.doi.org/10.1016/j.ijhm.2017.03.006
0278-4319/© 2017 Elsevier Ltd. All rights reserved.

H. Han, S.S. Hyun / International Journal of Hospitality Management 63 (2017) 82–92 83
1998; Piron, 2000; Truong et al., 2008). How to enhance public
visibility and exhibit wealth publicly related to the consumption
of luxury product/service is a vital issue for practitioners, particu-
larly in the hospitality industry (Han et al., 2016). Given these, it is
indisputable that discovering the associations among the research
variables discussed above and exploring their role are of utmost
importance in order to clearly identify the ways to increase cus-
tomer repeat purchase decisions and behaviors.
In spite of their importance, the complicated interrelations
among the research constructs have not been wholly uncov-
ered and clearly understood. A simultaneous approach examining
the impact of such relationships on behavioral intention is also
rare. In addition, research that examines luxury hotel restaurant
patrons’ decision-making process and post purchase behaviors is
not abundant. Moreover, despite its importance, conspicuousness
consumption of luxury product and its moderating impact on hotel
restaurant customers’ decision-making process for repurchase of
the product and purchase of other products within the same hotel
property has been scarcely examined.
Filling these existing research gaps, the present study attempted
1) to explore how overall image of hotel restaurant, image congru-
ence, quality factors (physical environment, service, and food), and
satisfaction are interrelated and how such relationships influence
intentions to revisit a particular restaurant in a hotel and to visit
other restaurants of the hotel; 2) to identify which factor among the
study variables plays a salient role in determining patrons’ behav-
ioral intentions; 3) to discover how conspicuousness moderates
the magnitude of the relationship strengths among research vari-
ables; and 3) to identify if quality dimensions and satisfaction have
a mediating impact within the proposed theoretical framework. A
thorough review of the literature is presented in the following sec-
tion, then methods and results are presented, and finally discussion
and implications derived from the results of this study are provided.

2. Literature review

2.1. Overall image

An important predictor of behavioral intentions is overall image
(Lee et al., 2010). In particular, a positive influence of overall image
is reported on repeat purchase intention and recommendation
intention (Brunner et al., 2008; Cronin et al., 2000). According to
Brunner et al. (2008), image is the vital variable that plays an
essential role in intention formation along with customer satisfac-
tion, which is often regarded as having the strongest association
with intention. Boosting the level of product/service image that
customers have is likely to result in increased intention to be
loyal (Ostrowski et al., 1993) either in a directly (Andreassen and
Lindestad, 1998) or in an indirectly (Bloemer and Ruyter, 1998).
Thus, it is often suggested that image together with other important
variables need to be incorporated into the theoretical framework
of customer decision-making (e.g., Brunner et al., 2008; Lee et al.,
2010; Selnes, 1993). Keller (1993) defined overall image as one’s
general perception of a company as reflected in the relationships
held in customer memory. Similarly, Assael (1984) described it as
one’s overall perception of a product/firm developed ultimately
based on acquired and processed information. Furthermore, the
clearest definition of overall image is provided by Kotler et al.
(1993), who stated that overall image refers to the global set
of consumers’ beliefs, impressions, and ideas about a company,
brand, product, service, or destination. Consistently, in the present
research, overall restaurant image indicates that the set of beliefs
and impressions that patrons have of a luxury hotel restaurant
product and its attributes.

2.2. Image congruence

Image congruence is a concept related to a match-
ing/comparison between customer self-image and product
image/product-user image (Han and Hyun, 2013; Sirgy, 1985).
Self-image, whose alternative term is self-concept, includes (1)
actual self-image (i.e., how consumers actually see themselves)
and (2) social self image (i.e., how consumers feel others see them-
selves), which are derived from self-consistency motive, as well as
(3) ideal self-image (i.e., how customers would want to see them-
selves) and (4) ideal social self-image (i.e., how consumers would
want others to see themselves) that rely on self-enhancement
motive (Jamal and Goode, 2001; Kressmann et al., 2006; Sirgy
et al., 1997). Image congruence consistently comprises actual self-
image congruence, social self-image congruence, ideal self-image
congruence, and ideal social self-image congruence (Back, 2005;
Sirgy et al., 1997). Among these, social self-image and ideal social
self-image congruities are important particularly for a highly
conspicuous product/service (Back, 2005; Han and Hyun, 2013).
Researchers agree that hospitality and tourism products/services
include high conspicuous characteristics in nature as customers’
consumption experience of these products/services is mostly
shared with others (Back, 2005; Back and Lee, 2009). Conspicuous-
ness of consumption becomes even greater when such hospitality
and tourism products/services are luxurious (Han and Hyun,
2013). For instance, individuals who consider themselves to be
living high status and luxury lifestyles are inclined to select a fine
dining restaurant for certain occasions, especially when they want
to impress others (Kwun and Oh, 2006). Given this, the utilization
of social and ideal social-image congruence comprising social and
ideal social self-images as constituents of image congruence can
be adequate in the present research setting.

2.3. Quality and satisfaction

Quality has been defined in diverse ways. The conceptualization
of quality that has achieved the greatest acceptance is that quality
is customers’ assessment of the excellence of a company’s prod-
uct/service and the performance of its main attributes compared to
competing firms’ product/service and its attributes performances
(Taylor and Baker, 1994). In the same vein, Han and Hyun (2015)
conceptualized quality as tourists’ appraisal of the excellence in
a particular tourism product and its performances against those
offered by rival products. In many theoretical/empirical studies
in hospitality, quality of physical environment, service (or inter-
action), and food (or outcome) are regarded to be the essential
quality constituents (Chua et al., 2015; Mattila, 2001; Ryu and Han,
2010). Particularly, overall quality of a restaurant product encom-
passes tangible (i.e., physical facilities and foods) and intangible
(i.e., employee services) experiences (Mattila, 2001; Ryu and Han,
2010).
Satisfaction has also been conceptualized in many ways. The
conceptualization of customer satisfaction that has obtained the
widest agreement/acceptance is that satisfaction is an evalua-
tion of the affective responses/experiences following a cognitive
expectancy disconfirmation process across prior expectation and
perceived performance of a product/service and its attributes
(Oliver, 1980). Dissatisfaction occurs when customers evaluate that
the performance of the product/service differs from their expecta-
tion (Brunner et al., 2008; Oliver, 1999). Customers’ decisions and
purchasing behaviors rely heavily on the satisfactory evaluation of
their overall affective experiences with a product/service and the
performances of its attributes (Oliver, 1980).

84 H. Han, S.S. Hyun / International Journal of Hospitality Management 63 (2017) 82–92
2.4. Intentions

Behavioral intention, which is a vital aspect of loyalty, refers to
“a stated likelihood to engage in a behavior” (Oliver, 1997, p. 28).
Customers’ intention to repurchase is an essential part of behavioral
intention along with word-of-mouth intention (Oliver, 1997, 1999).
Warshaw and Davis (1985) described such repurchase intention as
the degree to which an individual has formulated conscious plans to
engage or not engage in a particular future action. Although repeat
purchase behavior is derived from a favorable attitude toward a
product/service, individuals also often engage in repurchase behav-
iors without a psychological bond (e.g., no loyalty/commitment)
(Guiltinan, 1989). In this regard, Han et al. (2009) conceptualized
repurchase intention as an affirmed likelihood to repurchase a spe-
cific product/service in both the presence and absence of a favorable
attitude toward the product/service. In the present study, inten-
tion to revisit the restaurant refers to patrons’ stated likelihood to
repurchase the hotel restaurant product regardless of the attitudi-
nal issue. In the same vein, intention to visit other restaurants of
the same hotel indicates their affirmed likelihood to purchase other
restaurant products within the same hotel property.

2.5. Impact of image and image congruence on quality

Both product image and image congruence are regarded as
important aspects of cognition (Han and Hyun, 2013; Lee et al.,
2010). In the hospitality sector, these cognitive factors can be
vital drivers of quality assessment (Back and Lee, 2009). For
instance, Grewal et al. (2000) indicated that cognition positively
affects customers’ evaluations of post-purchase perceptions of
product/service quality. Campo and Yagüe (2008) conducted a
research about traveler loyalty to tour operators. Their finding
indicated that cognition exerts a significant impact on qual-
ity assessment which in turn, influences customer loyalty. Chua
et al. (2016) also identified that customers’ perceived level of
cognition triggers their favorable assessment of the cruise qual-
ity attributes, such as interactional quality with cabin crews
(e.g., employee courteousness/politeness, dependable service, will-
ingness to help, understanding of passenger wants and needs),
quality of atmospherics within the cruise (e.g., size of ship,
layout, interior and exterior décor, lighting, temperature, noise
level), and core/outcome quality (e.g., food and beverage, enter-
tainment, recreation and sports, supplementary facilities). The
concepts of image and image congruence have been linked to the
quality assessment process within a loyalty/intention generation
framework (Back, 2005). Patrons are likely to visit a restau-
rant/coffeehouse/hotel that has a positive overall image (Ryu et al.,
2008) and strongly reflects their self-image (Kang et al., 2015), and
they tend to appraise its performances favorably (Back, 2005). In
hotel restaurant decision-making, it would be true that patrons
who have good image of the hotel restaurant product and have high
image congruence with it are likely to evaluate quality attributes
(food, service, physical environment) positively. Given these, the
following hypotheses were developed:
H1. Overall restaurant image positively influences quality of phys-
ical environment in the luxury hotel restaurant context.
H2. Overall restaurant image positively influences quality of ser-
vice in the luxury hotel restaurant context.
H3. Overall restaurant image positively influences quality of food
in the luxury hotel restaurant context.
H4. Image congruence positively influences quality of physical
environment in the luxury hotel restaurant context.

H5. Image congruence positively influences quality of service in
the luxury hotel restaurant context.
H6. Image congruence positively influences quality of food in the
luxury hotel restaurant context.

2.6. Impact of quality on satisfaction

According to Chua et al. (2015), diverse service quality attributes
(e.g., outcome quality, physical environment quality, and interac-
tional quality) are important drivers of customer satisfaction in
the formation of loyalty. In the hospitality context, Lobo (2008)
also confirmed that quality assessment on various product per-
formances is significantly associated with customer satisfaction.
Moreover, in their investigation of restaurant customers’ inten-
tion formation, Ryu and Han (2010) proposed and verified the
significant association between quality dimensions of quick-casual
restaurant product (quality of food, service, and physical environ-
ment) and customer satisfaction. Their findings also showed that
such a relationship influences customers’ intentions to revisit and
recommend it to others and that satisfaction mediates the impact
of quality factors on intentions. Based on the evidence discussed
above, it can be posited that patrons’ perception of physical envi-
ronment, service, and food quality exerts a significant influence on
their satisfaction with overall experiences in a luxury hotel restau-
rant. Therefore, we proposed the following hypotheses:
H7. Quality of physical environment positively influences satis-
faction in the luxury hotel restaurant context.
H8. Quality of service positively influences satisfaction in the lux-
ury hotel restaurant context.
H9. Quality of food positively influences satisfaction in the luxury
hotel restaurant context.

2.7. Impact of satisfaction on behavioral intentions

Customers often make a decision to purchase/repurchase after
evaluating whether their experiences with a product/service are
satisfactory/pleasurable (Ali et al., 2016; Kim et al., 2013; Jeon and
Hyun, 2013; Prebensen et al., 2014). Assuring customer satisfac-
tion can therefore be viewed as the capability of companies to
meet customers’ expectations, with a high degree of satisfaction
being a source of companies’ competitive advantages (Oliver, 1997,
1999). In their empirical research examining tourists’ behaviors,
Prebensen et al. (2014) clearly showed that travelers’ satisfaction
level plays a significant role in their loyalty formation. Similarly,
Han et al. (2011) empirically demonstrated that customer satisfac-
tion formed based on cognitive process determines commitment,
and directly and indirectly engenders intention to revisit. When
consumers feel satisfied, their favorable intentions for a prod-
uct/service and their desire toward purchasing and experiencing
it generally increase. In contrast, when consumers feel dissatisfied,
their positive behavioral intentions and desire decrease (Han and
Ryu, 2012). Based on this predominant view in the extant hospi-
tality and consumer behavior literature, the following hypotheses
were thus proposed:
H10. Luxury hotel restaurant customers’ satisfaction positively
influences intention to revisit the restaurant.
H11. Luxury hotel restaurant customers’ satisfaction positively
influences intention to visit other restaurants of the same hotel.

2.8. Conspicuousness of product consumption

Veblen (1899) conducted a seminal work in the arena of con-
spicuous consumption. His theory of the leisure class is regarded as

H. Han, S.S. Hyun / International Journal of Hospitality Management 63 (2017) 82–92 85
one of the most enduring frameworks for status-seeking customers’
conspicuous consumption and leisure activities (Hillman, 2010).
Based on Veblen’s (1899) framework, Hillman (2010) successfully
developed an independent theory of backpackers and demon-
strated that Veblen’s (1899) theory still applies today. Potluri et al.
(2014) indicated that conspicuousness of consumption exhibits the
affluent class buyers’ socio-economic status. Conspicuousness con-
sumption of product/service refers to customers’ acts whereby they
can exhibit their financial capability/wealth and display social sta-
tus through spending more time for luxury leisure activities and
more money for consuming a lavish product/service than others
(Trigg, 2001). To conspicuous customers, sociologically, publicly
displayed economic power (their income or accumulated wealth) is
a method of maintaining their social status or attaining it (Han and
Hyun, 2013; Potluri et al., 2014). Conspicuousness consumption
of product is therefore unavoidably related to the consumption of
luxurious or expensive goods/services and often provokes envious
feelings of other people (Trigg, 2001; Truong et al., 2008). Consum-
ing a luxury hotel restaurant product comprises exclusivity since it
generally requires greater money expenditures than dining in other
types of restaurants. These notions are supported by Back (2005),
Hyun and Han (2015), and Sirgy and Su (2000) who asserted the
conspicuous nature of the use of luxury/upscale hospitality prod-
ucts (e.g., hotels, restaurants, cruises, resorts).
In a luxury product consumption situation, it is crucial with
whom an individual uses/consumes the product in that visible
characteristics of other customers significantly influences his/her
assessment of product experiences and decision-making process
(Brocato et al., 2012). Previous research indicated that individ-
uals who have high face-consciousness or pursue conspicuous
consumption perceive greater social approval and feel greater
status-enhancement compared to those who have low conspic-
uousness and are less likely to pursue conspicuous consumption
(Liao and Wang, 2009; Piron, 2000). In a luxury cruise context, Hyun
and Han (2015) identified that the magnitude of the relationship
strength among diverse cognitive perception factors, which cus-
tomers perceive, social values, and affective brand attachment in
the formation of pay intention for price premium is dependent on
the level of conspicuousness consumption. As compared to individ-
uals with low conspicuousness consumption, customers who feel
high conspicuous consumption are more likely to have social value
and make favorable decisions as they tend to feel self-fulfilled and
enhanced social status by showing their identity to others while
consuming a luxury product (Hwang, 1987; Piron, 2000). Accord-
ingly, in the present study, conspicuousness of the luxury hotel
restaurant product consumption is expected to influence the for-
mation of customers’ post-purchase behavioral intention. Based
on the above discussion, the following research hypotheses were
proposed:
H12a. Conspicuousness significantly moderates the relationship
between quality of physical environment and satisfaction (the link
is stronger when patrons feel high conspicuousness) in the luxury
hotel restaurant context.
H12b. Conspicuousness significantly moderates the relationship
between quality of service and satisfaction (the link is stronger
when patrons feel high conspicuousness) in the luxury hotel restau-
rant context.
H12c. Conspicuousness significantly moderates the relationship
between quality of food and satisfaction (the link is stronger when
patrons feel high conspicuousness) in the luxury hotel restaurant
context.
H12d. Conspicuousness significantly moderates the relationship
between luxury hotel restaurant customers’ satisfaction and inten-

tion to revisit the restaurant (the link is stronger when patrons feel
high conspicuousness).
H12e. Conspicuousness significantly moderates the relationship
between luxury hotel restaurant customers’ satisfaction and inten-
tion to visit other restaurants of the same hotel (the link is stronger
when patrons feel high conspicuousness).

2.9. Research model

Given the significance of study variables and the feasible rela-
tionships among them, we proposed the theoretical framework
displayed in Fig. 1. The model that presents the associations among
overall restaurant image, image congruence, physical environment
quality, service quality, food quality, satisfaction, conspicuousness,
and intentions to revisit the hotel restaurant and to visit other
restaurants in the hotel. These associations were formulated based
on an extensive review of the existing literature described earlier. A
total of twelve research hypotheses are also graphically presented
in Fig. 1.

3. Methods

3.1. Measurement tools

The measurement instruments for data collection were adopted
from existing multiple-item scales validated by previous studies
(Back, 2005; Baloglu and McCleary, 1999; Bitner, 1992; Han and
Hyun, 2013; Maxham and Netemeyer, 2002; O’Cass and McEwen,
2004; Oliver, 1980; Oliver and Swan, 1989; Ryu and Han, 2010;
Ryu and Lee, 2017; Ryu et al., 2016; Taylor and Baker, 1994).
The adopted measures were altered to be adequate in the present
research setting. In particular, overall restaurant image was mea-
sured with three items (e.g., “Overall, I have a good image about this
restaurant for dining out”), and image congruence was assessed
with two items (e.g., “The typical passenger at this cruise line had
an image similar to how other people see me”). Quality of physical
environment (e.g., “This restaurant had attractive interior design
and décor”), service (e.g., “I would say that this restaurant provided
superior services”), and food (e.g., “The food was delicious”) were
measured with four items, three items, and three items, respec-
tively. In addition, satisfaction was evaluated with three items (e.g.,
“Overall, I am satisfied with my experience at this restaurant”); and
conspicuousness was assessed with three items (e.g., “Dining at this
restaurant helps reveal my identity to others”).
Moreover, intention to revisit the restaurant was evaluated with
two items (e.g., “I plan to revisit this restaurant to dine in the near
future”), and intention to visit other restaurants of the same hotel
was measured with two items (e.g., “I plan to visit other restaurants
of the same hotel to dine in the near future”). A five-point Likert
type scale, which anchored from strongly disagree (1) to strongly
agree (7), was used for all of the questions. The respondents were
also requested to provide their socio-demographic information.
The survey questionnaire including the measures described above
and demographic questions were pre-tested with eight graduate
students and three faculty members whose frequency of luxury
hotel restaurant visit is relatively high and improved accordingly.
The questionnaire was furthermore reviewed and perfected by
academic experts whose major is hospitality management and
industry experts who are working in a luxury hotel restaurant.

3.2. Data collection and demographic characteristics

In order to collect data, a Web-based survey methodology was
utilized. An Internet invitation was delivered to general Korean lux-
ury hotel restaurant customers who were randomly chosen from a

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