The Impact of Brand Prestige on Trust, Perceived Risk, Satisfaction, and Loyalty in Upscale Restaurants

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The Impact of Brand Prestige on Trust, Perceived Risk, Satisfaction, and
Loyalty in Upscale Restaurants
Article in Journal of Hospitality Marketing & Management · June 2015
DOI: 10.1080/19368623.2015.1063469
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Naehyun Paul Jin
George Mason University
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Nathaniel D. Line
Florida State University
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George Mason University
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Journal of Hospitality Marketing & Management
ISSN: 1936-8623 (Print) 1936-8631 (Online) Journal homepage: http://www.tandfonline.com/loi/whmm20
The Impact of Brand Prestige on Trust, Perceived
Risk, Satisfaction, and Loyalty in Upscale
Restaurants
Naeyhun (Paul) Jin, Nathaniel D. Line & Jerusalem Merkebu
To cite this article: Naeyhun (Paul) Jin, Nathaniel D. Line & Jerusalem Merkebu
(2015): The Impact of Brand Prestige on Trust, Perceived Risk, Satisfaction, and
Loyalty in Upscale Restaurants, Journal of Hospitality Marketing & Management, DOI:
10.1080/19368623.2015.1063469
To link to this article: http://dx.doi.org/10.1080/19368623.2015.1063469
Accepted online: 29 Jun 2015.Published
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Journal of Hospitality Marketing & Management, 00:1–24, 2015
Copyright © Taylor & Francis Group, LLC
ISSN: 1936-8623 print/1936-8631 online
DOI: 10.1080/19368623.2015.1063469
The Impact of Brand Prestige on Trust,
Perceived Risk, Satisfaction, and Loyalty
in Upscale Restaurants
NAEYHUN (PAUL) JIN
School of Recreation, Health and Tourism, College of Education and Human Development,
George Mason University, Manassas, Virginia, USA
NATHANIEL D. LINE
Dedman School of Hospitality, Florida State University, Tallahassee, Florida, USA
JERUSALEM MERKEBU
Division of Educational Psychology, College of Education and Human Development,
George Mason University, Fairfax, Virginia, USA
Brand prestige significantly influences trust, customer satisfaction,
customer loyalty, and perceived risk. Perceived risk has a nega-
tive impact on trust, customer satisfaction, and customer loyalty.
Data analysis also revealed the positive effect of trust on customer
satisfaction and customer loyalty. Theoretical and managerial
implications are provided in the conclusion and discussion.
KEYWORDS brand prestige, perceived risk, trust, customer loy-
alty, luxury restaurants
Luxury is a symbol of prestige characterized by a high price tag and a rel-
atively elevated set of performance expectations (Dubois & Czellar, 2002).
Accordingly, there is a positive subjective evaluation linked to luxury con-
sumption that must be realized objectively through high-quality service.
In the market for luxury dining (also referred to as fine dining), consumers
pay premium prices for personalized service, a wide range of top quality
food and beverages, elegant white table cloths, and luxury finishing designs
Address correspondence to Naeyhun (Paul) Jin, PhD, School of Recreation, Health
and Tourism, College of Education and Human Development, George Mason University,
10900 University Blvd, Manassas, VA 20110, USA. E-mail: [e-mail]
Color versions of one or more of the figures in the article can be found online at www.
tandfonline.com/WHMM.
1Downloaded by [George Mason University] at 12:23 25 September 2015

2 N. (Paul) Jin et al.
that are strategically developed to create an experience unique to the fine
dining restaurant industry (Lin & Mattila, 2010; Nitiwanakul, 2014). Failing to
meet expectations relative to these standards in the luxury restaurant mar-
ket often leads to disqualification and negative evaluation of the restaurant
(Dubois & Czellar, 2002; Jin, Goh, Huffman, & Yuan, 2015).
Luxury brand attributes exert a strong impact on purchasing behavior
because they appeal to the consumer’s desire for uniqueness (Steenkamp,
Batra, & Alden, 2003). Such products or services are also often associated
with a high level of prestige (Baek, Kim, & Yu, 2010; Steenkamp et al., 2003).
In addition to signaling quality, prestige can motivate purchase and mitigate
perceptions of risk (Erdo ̆gmu ̧s & Büdeyri-Turan, 2012). From a strategic per-
spective, brand prestige is among the only nonreplicable assets that a service
firm can leverage indefinitely for the creation of a sustainable competitive
advantage (Sondoh, Omar, Wahid, Ismail, & Harun, 2007).
The importance of prestige has been consistently demonstrated with
respect to its impact on satisfaction (Hwang & Hyun, 2012; Hwang, Ko, &
Megehee, 2014) and loyalty (Brakus, Schmitt, & Zarantonello, 2009; Tynan,
McKechnie, & Chhuon, 2010). However, given the importance of brand pres-
tige in the market for upscale service provision, it is interesting to note that
relatively little is known about the behavioral effects of this construct in the
fine dining marketplace. While there is some evidence that prestige has a sig-
nificant effect on satisfaction/loyalty in this domain, the extent to which such
effects are direct or indirect (or both) is unclear. Based on the extant per-
spectives of the relationship between brand prestige and satisfaction/loyalty,
the purpose of this research is to identify the role of risk and trust within this
nomological framework.
The proposed effects of risk and trust in the prestige–behavior nomol-
ogy are based on existing research that shows a positive effect of prestige
on satisfaction and loyalty (e.g., Baek et al., 2010; Monga & John, 2010).
By integrating the existing perspectives of the downstream effects of brand
prestige, we propose an indirect effect of trust and risk perceptions in the
relationship between prestige and satisfaction/loyalty. That is, we propose
that while brand prestige can directly affect satisfaction and behavior, the
extent to which prestige affects trust in the brand should also affect these
relationships.
Understanding the nomology of the prestige construct is particularly
important in the fine dining industry for at least two reasons. First, fine
dining is by definition a luxury product (Lee & Hwang, 2011). Thus, as
compared to more casual forms of dining, consumer behavior in this seg-
ment is much more likely to be affected by perceptions of prestige (Eliwa,
2006). Second, because of the relatively high price point associated with the
fine dining product (Nitiwanakul, 2014), the consumer risks more with his
or her purchase in this category than would be the case in other restau-
rant categories. As such, there is a potential contribution to be made to theDownloaded by [George Mason University] at 12:23 25 September 2015

The Role of Brand Prestige on Satisfaction in Upscale Restaurants 3
literature by establishing the relationships among prestige, risk, trust, and
satisfaction/loyalty in this domain.
Unfortunately, because the nomological relationships among these con-
cepts are not fully understood, it remains unclear the extent to which the
brand prestige construct contributes to facilitating trust and minimizing risk
in the fine dining industry. In an effort to bridge this gap in the literature, the
objectives of this study were to (a) examine the impact of brand prestige on
satisfaction and loyalty in the luxury restaurant industry; and (b) investigate
the effects of perceived risk and trust in the relationship between brand pres-
tige and customer loyalty. The results from a sample of fine dining patrons
in the Unites States provide support for the proposed relationships among
the constructs under consideration.
LITERATURE REVIEW
Brand Prestige
The brand prestige construct has been the subject of a great deal of research
in the marketing literature and has been consistently identified as a signifi-
cant predictor of consumer behavior (Hwang & Han, 2014; O’Cass & Frost,
2002; Vigneron & Johnson, 2004). While there is no one definition of what
constitutes brand prestige (Sung, Choi, Ahn, & Song, 2015), the general con-
sensus is that prestigious brands are neither recognized for their necessity
nor for their functional utility (Teimourpour & Hanzaee, 2011; Wiedmann,
Hennigs, & Siebels, 2007). Rather, prestigious brands are more likely to be
associated with hedonism, uniqueness, quality, extended-self (e.g., refined
appearance), and conspicuousness (Vigneron & Johnson, 2004).
Conceptually, the term prestigious invokes the dual concepts of social
status and wealth (Dubois & Czellar, 2002; Tsai, 2005). Perceptions of quality
are likewise heavily associated with brand prestige (Lye, Venkateswarlu, &
Barrett, 2001). Additionally, studies have found that consuming prestigious
products allows consumers to distinguish themselves from others, providing
a sense of exclusivity (Mazodier & Merunka, 2014; Tsai, 2005). These intan-
gible attributes allow consumers of prestige goods to express a perceived
sense of superior worth. In turn, this process enhances consumers’ sense
of self and motivates them to make further purchases, especially when the
brand can be publicly displayed or conspicuously consumed (Mazodier &
Merunka, 2014; O’Cass & Frost, 2002; Wong & Zhou, 2006).
Because consumers are attracted to the symbolic construal of luxury
(Alvandi, Fazli, & Najafi, 2013), perceptions of prestige play a major role
in motivating the consumption of luxury goods and services. Consumption
of luxury products/services heightens an individual’s sense of self (i.e.,
self-concept) and serves as an indicator of success (Alvandi et al., 2013).Downloaded by [George Mason University] at 12:23 25 September 2015

4 N. (Paul) Jin et al.
Brand prestige is also a symbolic representation of social class, extrava-
gance, and superior quality (Hwang & Han, 2014). Thus, although brand
prestige is inherently related to credibility and reputation, it is perhaps
best conceptualized as an individual and social self-gratifying symbolic
personality assigned to a brand (Fionda & Moore, 2009; Sung et al., 2015;
Vigneron & Johnson, 2004).
Perceived Risk
Consumers’ perceptions about the risk of potential negative outcomes of con-
sumption have been frequently investigated in the marketing literature (D. J.
Kim, Ferrin, & Rao, 2008). Perceived risk is generally defined as the subjec-
tive appraisal of uncertainty concerning the financial, physical, and social
consequences of a consumption experience (Liebermann & Stashevsky,
2002). Such perceptions generally have substantial behavioral implications
and can significantly affect purchasing decisions (Brooker, 1984; D. J. Kim
et al., 2008).
Perceived risk is a threat to successful marketing because it causes con-
sumers to focus on the potential loss of resources (Salam, Rao, & Pegels,
2003), and perceptions of uncertainty can negatively impact purchasing
behavior. Because inconsistent or discordant information increases uncer-
tainty (Stern, Lamb, & MacLachlan, 1977), perceived risk must be eliminated
(or greatly reduced) to achieve customer loyalty (Derbaix, 1983; Mitchell
& Harris, 2005). In a restaurant context, a reputation for quality significantly
reduces perceived risk, leading to an increased incidence of customer loyalty
(Lacey, Bruwer, & Li, 2009).
Trust
In the relationship marketing literature, trust is defined as the perception that
a service organization has the capabilities to carry out what is promised and is
motivated (at an organizational level) to do so (Castaldo, Premazzi, & Zerbini,
2010; Jin, Line, & Goh, 2013). Thus, to trust a firm is to rely on organization-
level expertise and competence to fulfill a need (Rousseau, Sitkin, Burt,
& Camerer, 1998). A willingness to trust a firm increases consumer confi-
dence in a brand, alleviates anxiety, and may result in a strong emotional
bond with a service provider (McAllister, 1995; Wang, Law, Hung, & Guillet,
2014).
Additionally, trust makes customers comfortable, which in turn,
increases the efficiency and effectiveness of relational exchanges (Hyun,
2010). Such trust often becomes a crucial relational asset for managing and
maintaining successful customer–firm relationships (Singh & Sirdeshmukh,Downloaded by [George Mason University] at 12:23 25 September 2015