Factors Affecting Hedonic Brand Loyalty on the Fine Dining Indonesian Food Restaurant in Jakarta


Hamdy Hady*

Citation: Factors Affecting Hedonic Brand Loyalty on the Fine Dining Indonesian Food Restaurant in Jakarta American Research Journal of Business and Management. 2018; 4(1): 1-23.

Copyright This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


Abstract:

This study examined the influence of the Factors Affecting Hedonic Brand Loyalty in Restaurant Fine Dining Indonesian Food in Jakarta. Respondents from this study were luxury consumers of Indonesian-style food restaurants that already come twice or more at the restaurant. There were 340 samples used in this study. The samplingtechniquethat used in this study used Purposive Sampling which was distributed to 10 predetermined luxury restaurants. Tests for validity and reliability were conducted to test the questionnaire instruments used. There were eleven hypotheses tested in this study. The analysis technique that used in testing the hypothesis is the (Structural Equation Model-SEM) and the LISREL 8.80 for Goodness of Fit Test.

Some research results show that Food Quality has a negative and significant effect on Emotion, for service quality result has a positive and significant effect on emotion, Food Quality, Service Quality, Atmospherics and Product Knowledge contribute simultaneously positively and significantly to emotions and food quality, service quality, atmospherics, product knowledge and emotions contribute simultaneously to have a positive and significant effect on Brand Loyalty.

The theoretical implications of this study reveal additional empirical findings, including Food Quality, Service Quality, Atmospherics and Product Knowledge contributing simultaneously a positive and significant effect on Emotions and Food Quality, Service Quality, Atmospherics, Product Knowledge and Emotions contributing simultaneously positive and significant effects on Brand Loyalty. The managerial implications of this study in the context of luxury restaurants service quality are the dominant variable that influences consumer emotions and Brand Loyalty, so that the employees must be improved and considered by creating reliable employees who provide overall service quality. To be able to build emotions as well as loyalty to the restaurant.

Keywords: Atmospherics, Brand Loyalty, Emotions, fine dining restaurant Food Quality, Product Knowledge and Service Quality


Description:

INTRODUCTION

Consumers experience of various emotions, simultaneously or successively when interacting with the service providers (Maguire & Geiger, 2015). Recently the findings of Bilgihan et al. (2016) consider the key of the emotional role in services and emphasizes that in the context of service companies have to pay more attentions to the consumer’s emotions to increase the loyalty df customers. The role and effects of emotions attract more attention from the marketing intellectuals in Indonesia in their search for a better understanding of consumers and the consumption experience (Mattila and Enz, 2002; Ladhari, 2007).

Special attentions have also been given to the concept of brand loyalty (Bowen & Mc,Cain, 2015) because it can trigger profits for a company (Kandampully et al., 2015). Although several studies have been conducted to examine the relationship of loyalty and service quality only a little attention has been given to the role of emotions in this relationship (Han & Jeong, 2013). Brunner Sperdinet al., 2012; Su et al., 2015 and Tsai, 2014 noted the emotional role of consumers during the service experience received little attention despite its undoubtedly important role. To overcome this gap several efforts have been made recently to combine emotional elements in the relationship of loyalty, service quality and emotion to be able to deepen understanding of concepts (Jani& Han, 2015; Han &Jeong, 2013; Lin & Liang, 2011; Namkung & Jang, 2010). A person can have positive hedonic emotions such as pleasure, joy and excitement as well as negative hedonic emotions such as frustration, sadness and disappointment.

According to Annie et al (2014) the operation of luxury restaurant, luxury restaurants in the following criteria: (1) A full-service restaurant that serves a main food menu with an average price above US $ 30; (2) the average total consumer expenditure set is above US $ 67 (excluding service and tips); (3) Restaurants are located in a five-star international hotel chain (e.g. Hilton and Hyatt Regency). Nevertheless, the notion of luxury restaurants can be continued in three ways, namely (1) Some researchers have highlighted the importance of consumer behavior in examining the emotional antecedents of diners (Han et al., 2009; Jang and Namkung, 2009; King and Meiselman, 2010) because the impact of stimuli on visitors is often intense and direct. In addition, visitor’s emotions often determine their future behavioral intentions to revisit restaurants again (Jang and Namkung, 2009); (2) Research of Ryu et al. (2012) not considering the influence of other visitors as shown by Wu and Liang (2009) that other visitors’ experiences can influence other consumers to eat fancy restaurants. (3) Some variables can moderate customer decision-making processes, such as expectations (Devlin et al., 2002; Wong and Dioko, 2013); however, the framework of Ryu et al. (2012) does not consider the potential moderating effects of the consumption behavior variables of restaurant visitors.

Research conducted by Norman and Annie (2015) concluded that food quality, service quality and atmosphere affect the emotion of consumers which can further influence brand loyalty in a luxury restaurant, in addition, product knowledge is a moderate variable that influences emotions (emotion) and brand loyalty (research loyalty) and this research is a follow-up study conducted by Norman and Annie (2015) who examine food quality (food quality ), service quality and atmosphere affect the emotion of consumers which can then influence brand loyalty in a fancy restaurant and product knowledge is changed as independent variables rather than moderate variables such as Previous research and research will be carried out partial and simultaneous spirits between independent variables on the dependent variables.

LITERATURE REVIEW

Food Quality

Food quality is understood as a multidimensional concept, but there is no agreement on the dimensions of the individuals who shape it. Grunert et al. (1996) argue that food is classified as quality into four dimensions: hedonic (i.e. taste &smell), health (i.e. nutritional value) comfort (i.e. time & effort), and process (eg production process); Namkung and Jang (2008) suggest five dimensions: presentation, variation, healthy choices, taste, freshness, and temperature. Many studies have revealed food quality as a restaurant’s core competency (i.e.Ha and Jang, 2010; Namkung and Jang, 2008). Grunert (2005) food quality model states that consumers evaluate food quality not only based on actual food consumption, but also on expectations food produced with information collected before consumption.

Service Quality

Service quality and customer satisfaction is the most priority marketing because they are a prerequisite for consumer loyalty such as repeat sales and positive marketing of positive word of mouth (Liu and Jang, 2009b &Han and Ryu, 2009). In today’s competitive market it is generally assumed that the key to gaining profit lies in providing high quality services which in turn will bring satisfied consumers (Han and Ryu, 2007). In particular, in the restaurant industry, consumers generally use food, the physical environment, and employee services as key restaurant experience components in evaluating the quality of restaurant services (Chow et al., 2007; Namkung and Jang, 2008; Ryu and Han, 2010).

Some studies show that food, physical environment, and employee services must function as a vital component of restaurant experience in forming perceptionsabout service quality in the restaurant industry (Ryu and Han, 2010;Jang and Namkung, 2009; Namkung and Jang, 2008;). Chow et al. (2007) examined the relationship between service quality, consumer satisfaction, and the frequency of consumers in the context of a full service restaurant. They capture three dimensions of service quality (i.e. Quality of interaction, physical quality, quality of results). Namkung and Jang (2008) also conducted a study to identify the key attributes of quality that significantly differentiate highly satisfied consumers from those with high personalities. Consumers who are satisfied using the context of middle to upper scale restaurants. They use three quality factors (food, atmosphere, and service) to measure the quality of consumer perceptions related to restaurant experience.

Atmospherics (Physical Environment)

Some previous studies found that the perceived quality of the physical environment (Baker et al., 1994; Nguyen and Leblanc, 2002) or the quality of services (Lai et al., 2009) can have a significant influence on the image of shops, restaurants or companies. This description can have further influence on the perceived value and satisfaction of consumers,which in turn affects their loyalty (Lai et al., 2009; Patterson and Spreng, 1997; Prendergast and Man, 2002; Ryu et al., 2008).

According to Berman & Evans (2010: 508-509) atmospherics is a physical characteristic that is very important in creating a comfortable atmosphere for consumers who are in the store and can indirectly affect the consumer’s image and buying behavior and the elements consist of (1) Exterior Has a strong influence on the image of the store, so it must be planned as well as possible. This exterior combination can make the outside of the store look unique, attractive, prominent and invite people to enter the store. Exterior consists of: Storefront, Marquee, Entrance, Dispay Windows, Exterior of thr Building Height, Sorroundingthe Stores and the Area, Parking Facilities, (2) General Interior Is planning, arranging and designing interior spaces in buildings. General interior consists of: Flooring, Color and Lighting, Scent and sound, Store Fixtures, Wall Textures, Temperature, Aisle Space, Dressing Facilities, Vertical Transportation, Store Personnel, Technology, Cleanliness, (3) Store Layout A plan to determine a specific location and arrangements for equipment, merchandise, shop aisles and shop facilities. In designing store layouts, it is necessary to note the following: Allocation of the Floor Space, Selling Space, Merchandise Space, Personnel Space, Customer Space, Classification of Store Offerings, Determination of A Traffic-Flow Pattern, Determination of Space Needs, Mapping Out in Store Locations, Arrangement of Individual Products and (4) Interior Displays It is every provision of information to consumers to influence the atmosphere of the store environment. Interior displays include: Assortment displays, Theme-setting displays, Ensemble displays, Rack displays, Cut cases.

Product Knowledge

Wang (2001) summarizes more much of the literature and reports that indices used to measure product knowledge by scientists include: (1) Consumer perceptions of how much he knows (Park and Lessig, 1981). (2) The number, type and organization of what consumers have stored in their memories (Johnson and Russo, 1984). (3)the amount of purchasing and usage experience (Marksdan Olson, 1981). Rudell (1979) uses scoresexamination to measure objective knowledge and apply self-evaluation inventory to be measured subjective knowledge. Lin and Zhen (2005) adopted the product’s definition of knowledge proposed by Brucks (1984) to measure product knowledge which states that the knowledge of the product depends on consumer awareness about the product, consumer trust in it. Based on the definition of Brucks (1984) about product knowledge is divided into three(3) major categories, namely: (1) Knowledge of the subject or perceived knowledge; (2) Objective knowledge; and (3) knowledge-based experience.Zhu (2004) states that in a study when consumers choose products they usually rely on their product knowledge to evaluate and product knowledge will also affect procedures, attitudes, quantity of information search for them, then the level of product knowledge will determine the consumer purchasing decisions and indirectly affect the intention of shopping .

Hedonic Emotions

Consumers seek various values in restaurants such as social interaction, pleasure, taste, efficiency and economic reasonsPark (2004). In general, existing research shows that consumption of fast service is utilitarian while for dining in restaurant, luxury restaurants are emotionally hedonic (Ha and Jang, 2010, 2013; Ryu and Han, 2011; Ryu and Jang, 2007; Ryu et al., 2010). Chaudhuri and Holbrook (2001, p. 82) define that brand influence positive emotional responses to consumers as a result of their use. Consumer satisfaction and the purchase intention are directly influenced by the positive influences (Oliver, 1997). Emotional response stimulated by the physical environment or employee behavior influences various consumer outcomes, including the willingness of buyers to shop and spend their time (Nisco and Warnaby, 2014). (Jani and Han, 2015) review the intention to buy more so that it will increase in the future, recommend restaurants to others (Jang and Namkung, 2009), unplanned expenses (Nisco and Warnaby, 2014) and loyalty (Jani and Han, 2015).

Brand Loyalty (Brand Loyalty)

Consumer loyalty is a dynamic concept that is developed by strengthening commitment and trusting with partners. Such a relational loyalty approach consists of predicting future consumer behavior (Fallahi and Nameghi, 2013). Loyalty is an important aspect,especially when incidences occur which can cause divisions in relations between the two parties (Guillard and Roux, 2014; Kwang-Ho andKim, 2011). When this happens,we are able to determine the strength of the relationship that exists between consumers and brands (Ben Khelil and Bouslama, 2013). Some researchers have studied the nature and loyalty of behaviors that often also have a positive effect on the purchase of a brand (i.e. the intention to continue the relationship, help market and monitor prices) Cristau, 2003; Gurviez, 1999; Maxham and Netemeyer, 2002). Two approaches to building brand loyalty include behavioral approaches and attitude approaches. The behavioral approach refers to repeated purchases of special brands, while the attitude, approach refers to a positive attitude towards brands (Quester and Lim, 2003).

Consumers prefer brand restaurants that provide positive emotional states through symbolic elements such as conformity, brand identification or brand influence. Positive service experiences such as restaurants lead to the intention to return consumers (Lee and Cunningham, 2001; Harris and Ezeh, 2008) and willingness to recommend brands (Paswan et al., 2007). As a restaurant industry has the characteristics of intangible variables, namely emotional and psychological processes to shape brand loyalty. Attitude loyalty is a symbolic consequence of consumption in restaurants. Brand loyalty is widely recognized in the literature of the concept in brand loyalty are two dimensional construction that contains aspects of attitude and behavior (Hwang and Kandampully, 2012).

RESEARCH HYPOTHESIS

Effect of Food Quality on Emotions

Food quality, for example the quality of food and beverages can affect consumer emotions (Norman & Annie, 2015). Kwun and Oh (2006) define food and beverages as the core of restaurant products. Freshness and taste of food can significantly impact consumer emotions. In addition, Wu and Liang (2009) note that serving food and drinks is an important part of the quality and quality of a luxury restaurant . Affect consumer emotions. Based on previous literature findings (i.e.Kwun and Oh, 2006; Wu and Liang, 2009), this study hypothesizes the following:

H1: There is an influence between Food Quality and Emotion

Influence between Service Quality on Emotions

In the context of serving food to consumers, restaurant employees interact directly with consumers during their visits (Jang and Namkung, 2009; Kwun and Oh, 2006; Wu and Liang, 2009. In a restaurant, employee knowledge of restaurants and menus, their level of help and are they reliable or not,often considered from previous literature has confirmed that staff service quality influences consumer emotions (i.eJangdanNamkung, 2009; Kwun and Oh, 2006) therefore:

H2: There is an influence between Service Quality on Emotions

Effects of Atmospherics on Emotions

During the provision of services and services, environmental stimuli affect consumer emotions which in turn affect their behavioral intentionsKoo and Ju (2010) . Based on studies of retail stores, convention centers and restaurants and shopping centers, Breiter and Milman (2006), Kaltcheva and Weitz (2006), Koo and Ju (2010), Ong et al. (2012), and Tai and Fung (1997 ) confirm that the atmosphere has an impact on consumer experience and subsequent behavior. Kotler (1973) defines the atmosphere as a conscious space design to create certain buyer effects. The main objective is to increase the probability of purchasing. Key techniques include the application of colors, lighting, music, and decorations that are appropriate to the service environment (Koo and Ju, 2010; Ong et al., 2012; Tai and Fung, 1997). In the context of restaurants, Liu and Jang (2009) found that the atmosphere can influence consumer emotions;

H3: There is an influence between Atmospherics and Emotions

Effect of Product Knowledge on Emotions

Product knowledge in consumers includes general of the knowledge of facts, concepts and relationships relating to product services concerned Fryxell and Lo (2003). Statements such as: “When I compared my selfto my superiors and friends about this productI know morebetterthan them” is often used to assess consumer knowledge of a particular product. In the context of this study there is an influence on strengthening service quality, food quality, and restaurant atmosphere to emotions and consumer loyalty (Jang &Namkung, 2009). Based on the level of the product knowledge the consumers will be build loyalty to a restaurant if they have hada positive emotional experiences during their visit (Norman & Annie, 2015). Based on the literature then:

H4: There is an influence between Product Knowledge and Emotions

Simultaneous influence between Food Quality, Service Quality, Atmospherics and Product Knowledge on Emotions

Kwun and Oh (2006) ,Jang and Namkung (2009) and Wu and Liang (2009) found that the restaurant environment includes service quality, food quality, and atmosphere that can influence consumer emotions. In the context of research on luxury restaurants, service quality, food quality , and atmospherics can have an influence on consumer emotions which in the next stage can have an influence on brand loyalty (Norman and Annie, 2015).

H5: There is a simultaneous influence between Food Quality, Service Quality, Atmospherics andProduct Knowledge of Emotions

Effect of Food Quality on Brand Loyalty

To meet the basic needs and the main products of restaurants food has the ability; Therefore, regardless of whether the restaurant is a diner or fancy consumers will return and will be loyal if the food is of very good quality (Norman & Annie, 2015)

H6: There is an influence between Food Quality on Brand Loyalty

Influence between Service Quality on Brand Loyalty

Findings from other studies that appeal to various research paradigms also provides support for the proposed relationship between employee behavior and emotional loyalty to a product or service which is a key factor influencing the relationship of consumer loyalty with brands (Erkmen and Hancer, 2015). In addition, employees who are friendly, polite and helpful are the main predictors of providing guests with a restaurant (Dortyol et al., 2014). Likewise communicative services, which refer to politeness, politeness, friendliness, attention, passion and employee attractiveness are closely related to the overall business partners (Durna et al., 2015). Following the logic of the argument above, the following hypothesis is made:

H7: There is an influence between Service Quality on Brand Loyalty

Effect of Atmospheric on Brand Loyalty

In the atmospheric marketing literature, it is defined as the design of space design to produce certain emotional effects on buyers that increase the probability of purchasing (Kotler, 1973). In restaurant studies atmospheric quality is understood as one crucial thing that builds on explaining service quality, which leads to positive influences and satisfaction of the intention to come back and be loyal to a product (Kincaid et al., 2010; Hoare and Butcher, 2008; and NamkungJang, 2008). Decoration is the most important thing related to authenticity in Chinese restaurants (George, 2001). The furniture is one of the most important design components that can influence consumer perceptions and evaluations. Music also represents a particular culture (George, 2001) and has a positive impact on service ( Hui et al., 1997).

H8: There is an influence between Atmospherics on Brand Loyalty

Effect of Product Knowledge on Brand Loyalty

Statements such as: “When 1 compared to mysuperiors& friends, I so much know better about this product” is often used to assess consumer knowledge of a particular product. In the context of this study there is an influence on strengthening service quality, food quality, and restaurant atmosphere to emotions and consumer loyalty (Jang and Namkung, 2009).

H9: There is an influence between Product Knowledge on Brand Loyalty

Effects of Emotions on Brand Loyalty

Previous research on consumer behavior shows that positive emotions in consumers will make them loyal for example to revisit in the future (Flavian et al., 2001; Jeon and Hyun, 2012; Yoon and Uysal, 2005. Oliver (1999) suggested that Brand Loyalty is identified as a deep commitment or repeated purchases frequently on a product or service in the future. Brand loyalty shows the intensity of consumers to repeatedly visit the same restaurant. Research on consumers in a restaurant Jang &Namkung (2009) and Jeon& Hyun (2012) shows that there is a positive emotions or a self satisfaction with service products that can significantly influence brand loyalty, based on the literature, this study formulates the following hypotheses:

H10: There is an influence of Emotions on Brand Loyalty

Simultaneous effects between Food Quality, Service Quality, Atmospherics, Product Knowledge and Emotions on Brand Loyalty

Statements such as: “When compared to my friends and superiors, I know so much morebetter about this product” is often used to assess consumer knowledge of a particular product. In the context of this study there is an influence on strengthening service quality, food quality, and restaurant atmosphere to emotions and consumer loyalty (Jang &Namkung, 2009). Based on the level of product knowledge consumers will build loyalty to a restaurant if they have had positive emotional experiences during their visit (Norman & Annie, 2015). Based on the literature then:

H11: There are simultaneous effects between Food Quality, Service Quality, Atmospherics, Product Knowledge and Emotions of Brand Loyalty Research Design

This study refers to the limitations of previous studies mainly conducted by Norman & Annie (2015). Participants will be asked to fill 34 questions (questionnaires) and this study adopts the existing validity scale to assess the performance of Norman & Annie (2015), Ruzica Brečić, Željka Mesic, Marija Cerjak, (2017), Reza Dabestani, ArashShahin, Mohammad Saljoughian, (2017), Michael R. Mullen ,Daire Hooper & Joseph Coughlan (2013).

Populations of this study were all consumers who had come to the restaurant specified in the questionnaire more than one time.The sampling technique used in this study is to use Purposive Sampling. Purposive Sampling contains special people who can provide the desired information either,maybe that person is the only one who has information or that person meets the criteria determined by the researcher and is divided into two forms namely Judgment sampling and Quota sampling. In this study using the form of judgment sampling,which involves the selection of subjects placed in the most favorable place or in the best position to provide the information needed (Sekaran& Bougie, 2009).

In determining sample size in a study it was stated that sample sizes that were too small or too large were not recommended, the number of respondents recommended in the sample range between 100-200 or 5 (five) to 10 (ten) samples for each parameter (indicator) in observation (Hair, Black & Babin, 2013). In this study there were 34 indicators observed, so:n = Number of parameters x 10; 34 x 10= 340 respondents .With consideration of all the theoretical descriptions above, the number of samples used in this study amounted to 340 samples or respondents. Hypothesis testing is done by using multivariate analysis of structural equation models (Structural Equation Modeling or SEM and before questionnaires are distributed to all respondents to be tested, a preliminary study is conducted first by distributing questionnaires to 30 respondents. Data obtained from 30 respondents tested Validity and Reliability using SPSS 25 (Statistical Package for the Social Sciences).

DEVELOPMENT OF RESEARCH INSTRUMENTS

The research instrument used in this study is a questionnaire which will be divided into 3 (three) groups, namely: questionnaire part A introduction which contains the introduction and benefits of filling out the questionnaire, questionnaire part B contains questions about the respondents’ profile data consisting of six questions and at part C questionnaire which contains 34 statements relating to the variables to be studied. In part B of the questionnaire respondents were asked to choose according to their profile. In section C questionnaire the existing statement is answered with a perception statement on the question with the Likert Scale answer with five scale points used when designing items with answer choices ranging from: SA (Strongly Agree), S (Agree), N (Neutral), NA (Not Agree) and SD (Strongly Disagree). In this study continued the limitations of the study by examining all the relationship variables to be studied in the ten luxury restaurants mentioned above where 34 questionnaires were distributed in each restaurant.

Based on Profile 1 on the number of Visits and the largest and largest percentage in the period of ± 6 months who visited Lara Djongrang restaurant 202 people (15.06%) respondents from a total of 340 respondents and total visits 1341 (100%).

Profile 2 based on how many times they visited in a period of ± 6 months can be described that of the total respondents 340 people (100%) the largest frequency was 151 people (44.4%) respondents who visited the restaurant 4 times.Based on Profile 3, the highest average expenditure for each visit was 163 people (47.9%) who spent an average of> Rp. 1,000,000 - Rp. 1,500,000. Profile 4 based on gender can be described that of the total respondents 340 people (100%); there were 199 people (58.5%) respondents were men. Profile 5 based on age can be described that of the total respondents 340 people (100%), there are 14 people (4.1%) respondents who are <21 years old; there are 69 people (20.3%) respondents aged 21-30 years; there are 146 people (42.9%) of respondents aged 31-40 years, there were 84 people (24.7%) respondents aged 41-50 years, there were 27 people (7.9%) respondents aged> 50 years .Profile 6 based on work can be described that the total respondents were 340 people (100%), there were 11 people (3.2%) respondents who worked as government employees; 116 people (34.1%) respondents who work as employees of a private company; 195 people (57.4%) respondents who became entrepreneurs and 18 people (5.3%) respondents who had other jobs.

VALIDITY AND RELIABILITY TESTING

Test of Validity

Test 6 Variables measured by 34 indicators of test results show that the loading value is greater than 0.30 (Hair, n = 340) so it can be concluded that the 34 indicators are able to form variables Food Quality, Service Quality, Atmospheric, Product Knowledge, Emotion and Brand Loyalty or valid.

Reliability

Reliability test uses cronbach’s alpha analysis tool, where each observed variable is declared reliable (consistent) if it has an alpha cronbach’s value> 0.6 (Uma Sekaran, 2000). There are also results from reliability testing for each variable in this study that can be reliably seen in the following table: 


According to Hair et al (2013) the formed model can be accepted at the level of fit and marginal if there are one or two criteria for the Goodness of Fit Index that have been met. Test results show that the criteria used to measure model suitability are absolute fit measures, incremental fit measures, and parsimonius fit measures. The structural model proposed in this study passed on two criteria, namely the criteria for incremental fit measures (CFI) and parsimonious fit measures (PNFI). Thus, overall, the proposed structural model has good ability in terms of matching data (good fit) so that the analysis can be continued in the subsequent analysis.