Babin 2005
Babin 2005
(1999),"Consumer research in the restaurant environment, Part 1: A conceptual model of dining satisfaction and return
patronage", International Journal of Contemporary Hospitality Management, Vol. 11 Iss 5 pp. 205-222 <a href="https://
doi.org/10.1108/09596119910272739">https://doi.org/10.1108/09596119910272739</a>
(2000),"Customer satisfaction with services: putting perceived value into the equation", Journal of Services Marketing, Vol. 14
Iss 5 pp. 392-410 <a href="https://doi.org/10.1108/08876040010340937">https://doi.org/10.1108/08876040010340937</a>
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Abstract
Purpose – The research seeks to extend the notions of utilitarian and hedonic value to account for outcomes of consumer service encounters.
Design/methodology/approach – The research question is examined using a sample of Korean restaurant consumers who used a structured
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questionnaire to evaluate their dining experience. Structural equations analysis is used to test various research hypotheses and examine the extent to
which consumer service value mediates the effect of the environment on customer satisfaction and future intentions.
Findings – Key findings include the ability of the consumer service value scale to account for utilitarian and hedonic value, the role of functional and
affective service environment components in shaping consumer satisfaction and future patronage intentions and the relative diagnosticity of positive
affect.
Research limitations/implications – There is a need to extend the results to a diverse range of cultures.
Practical implications – Restaurant managers should place increased emphasis on the physical environment as it clearly plays a role in creating
positive consumer outcomes and building strong customer relationships.
Originality/value – The use of the consumer value scale (CSV) – particularly in a novel service context.
Keywords Hotel and catering industry, Customer service management, Customer satisfaction, Service industries, South Korea
Introduction consumer weighs the total costs and benefits to determine the
utilitarian and hedonic value of an experience. Furthermore,
There is little doubt that consumer behavior is shaped in part this value shapes important consumption outcomes that
by an exchange between a customer and the retail ultimately determine marketing success. In the current study,
environment. The research presented here focuses on that we propose and test a model relating service quality and
issue, presenting a model incorporating service quality, service environment affect to “Customer Service Value”
customer affect, and perceived shopping value and relates (CSV) – the utilitarian and hedonic value received from a
these to consumer satisfaction and intention to engage in service experience. Subsequently, these constructs are used to
word-of-mouth activity. The model is then tested with a predict customer satisfaction and a further relational
sample of South Korean consumers based on an actual outcome, consumer intentions to spread positive word-of-
restaurant experience. mouth (WOM).
Previous research in retailing (see Donovan and Rossiter, Retailing research has devoted considerable attention to
1982; Babin and Darden, 1995; Hui et al., 1997), has clearly developing and testing theory explaining how an environment
illustrated that shopping environments can alter consumer
generates affective changes that are further associated with
emotions. These emotions, combined with the acquisition of
systematic variation in key marketing outcomes such as sales,
goods, explain the relative amounts of perceived “personal
value, and satisfaction (Turley and Chebat, 2002). In
shopping value” (PSV) (Babin et al., 1994). In this process, a
comparison, service researchers (outside of the retail area)
have given relatively little attention to experiential aspects
The Emerald Research Register for this journal is available at including the role of emotion (Chebat and Slusarczyk, 2003).
www.emeraldinsight.com/researchregister Thus, one contribution of the current study is the
The current issue and full text archive of this journal is available at examination of the role emotional reactions play in a service
www.emeraldinsight.com/0887-6045.htm context.
Consumer theory on emotions is also limited in that it has
focused largely on Western consumer cultures. The
Journal of Services Marketing development of both theoretical relationships among
19/3 (2005) 133– 139
q Emerald Group Publishing Limited [ISSN 0887-6045]
constructs and the measurement scales used to assess those
[DOI 10.1108/08876040510596803] constructs has largely taken place in North America and
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Modeling consumer satisfaction and word-of-mouth Journal of Services Marketing
Barry J. Babin, Yong-Ki Lee, Eun-Ju Kim and Mitch Griffin Volume 19 · Number 3 · 2005 · 133 –139
Western Europe. As the marketing function has become studied here (full service restaurants) and the communal
progressively more global in orientation, the importance of nature of Korean culture, which places an increased emphasis
testing our measurement and theory regarding key concepts on inter-personal communication.
in other cultures is apparent. Thus, a second contribution of
comes from our test of a model of service environment within Affective and functional quality
a communal consumer culture. Exchange environments are embodied with an “aura” that
Several general consumer trends add additional relevance to affects consumers both functionally and emotionally
this research. These include what some consider the (Martineau, 1958). The functional qualities are those that
“commoditization” of consumer goods and services (Chebat combine to adequately provide the basic service. In contrast,
and Dubé, 2000) and a tendency for consumers to affective qualities embody an emotional change that can make
increasingly “cocoon” inside their homes. Certainly another an experience rewarding in and of itself. Similarly, the
key – and perhaps related – trend is the rapid growth in the Personal Shopping Value (PSV) scale is a two-dimensional
availability of electronic commerce. The internet has truly construct reflecting the overall assessment of how worthwhile
become the “world wide web” and is experiencing a consumer views a particular investment in resources with a
tremendous growth around the globe. In fact, the country retailer (Babin et al., 1994). The two dimensions capture a
with the highest proportion of consumers with household, shopping trip’s utilitarian value and its hedonic value. Our
high-speed internet service in the world is not in North proposed model reflects these two perspectives. The service
America or Europe, but rather South Korea (see Ihlwan, quality ! utilitarian value link, in particular, captures the
2001). To combat the explosion in e-commerce, traditional functional qualities. The affect ! hedonic value links
retailers and service providers may use the physical capture the affective qualities. In testing the proposed model,
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environment to create added customer value and greater not only can we examine support for specific relationships,
motivation to seek out and spend time and money in their but we can also gain some knowledge concerning the relative
stores. strength of each mechanism in this particular context.
In sum, the current research allows us to examine the The PSV scale has been useful in explaining various
applicability of the perceived service value concept to a core consumer behaviors, including planned and unplanned
service context that is arguably more involving than the many purchases, continuance commitment, the contrast between
retail environments and to do so among Korean consumers. on-line and off-line shopping, on-line shopping flow,
The model also allows a comparison of the relative effects of customer reactions to olfactory elements, the benefits of
affective or experiential qualities versus the more functional or sales promotion and general consumer shopping motivations
core service qualities. We begin with a brief overview of the (see Babin and Darden, 1995; Chandon et al., 2000; Babin
key constructs and the consumption context. and Attaway, 2000, Wolfinbarger and Gilly, 2001; Sénécal
et al., 2002; Chebat and Michon, 2003; Arnold and Reynolds,
2003). Of particular relevance to the current study, the PSV
Conceptual overview
scale has been successfully adapted to non-western cultures
Figure 1 displays the hypothesized model explaining Korean (see Griffin et al., 2000). Here, the scale is adapted to the
restaurant consumers’ satisfaction and WOM. The Korean service context and will be applied more generally as
relationships are based predominantly on existing retail and the customer service value (CSV) scale.
service theory. Relationships are included or not included The perceived value of goods and services offered by a
based on the logical association between the two and the body retailer often coincides with retail functional quality (Darden
of previous empirical work. The end result is a model offering and Babin, 1994). Thus, an overall assessment of service
an explanation of Korean service consumers’ WOM. While quality overlaps with the CSV construct, and it should be
WOM is a critically important variable in any context, it is related positively to both hedonic and utilitarian service value,
particularly vital given the personal nature of the service as well as influencing consumer satisfaction. Consumers
134
Modeling consumer satisfaction and word-of-mouth Journal of Services Marketing
Barry J. Babin, Yong-Ki Lee, Eun-Ju Kim and Mitch Griffin Volume 19 · Number 3 · 2005 · 133 –139
believing the basic service provided to be superior are more research dealing with PSV, we propose customer service
likely to both enjoy that experience and complete the task value as mediating the effects of the retail environment on
aspect of a specific service encounter. Furthermore, relational outcomes (Babin and Attaway, 2000; Caruana
consumers often find that environments filled with prestige- et al., 2000).
oriented goods are intrinsically rewarding. Applied to a
restaurant context, we would expect consumers experiencing Research methods
the service associated with a relatively “fine dining”
environment to report enhanced hedonic value. In addition, Data were obtained from consumers at family-style chain
research supports a positive relationship between service dinner houses (e.g. Outback Steakhouse, Tony Roma’s,
quality and consumer satisfaction, as better service equates to Marche) in a large metropolitan area in South Korea. We
better performance, an increased likelihood of fulfilled contacted chief executive officers of the restaurants to
expectations, and correspondingly higher levels of introduce the study and requested permission to collect
satisfaction (Caruana et al., 2000). The quality ! data. A total of nine graduate students from a private
satisfaction link serves to facilitate relationships between university in Seoul were recruited and trained to serve as data
quality and relational outcomes (Shemwell et al., 1998). collectors. Respondents were approached as they finished the
Retail atmosphere is often distinguished in terms of the dining experience but before they left their table. They were
amount and types of affect perceived within an environment informed that this survey was for educational purposes, and
(Turley and Chebat, 2002). In a service context, the that their responses would be completely anonymous. If the
environment is a key intangible that helps distinguish customer agreed to participate, they were provided a survey to
successful from the unsuccessful service firms (Laroche complete, which was collected before they left the restaurant.
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et al., 2001). Positive affect has been found to relate Six hundred diners were contacted and 334 agreed to
positively to both utilitarian and hedonic value (Babin and participate; 276 respondents completed all the necessary
Attaway, 2000). Pleasurable affective states both aid in items to be included in all data analyses reported below (a
consumers’ task facilitation and provide immediate usable response rate of 46 percent). Respondent incentives
gratification. Negative affect, in contrast, is expected to included discount coupons and pens. The diners represented
affect hedonic value predominantly. Even though consumers a wide demographic background across a wide degree of
experiencing negative affect do not find the experience meal-specific situations (lunch/dinner, size of group, occasion,
intrinsically rewarding, it may not prevent them from etc.).
competing the consumption task. For example, Babin and Multiple item measures were used to represent the latent
Darden (1996) found that consumers experiencing relatively constructs comprising the theoretical model depicted in
high negative moods still reported the same spending levels Figure 1. Item measures used in testing the model and the
as those shoppers with substantially lower amounts of correlations among these measures are described in Table I.
negative moods. Three exogenous measures are included. The affect
The importance of consumer WOM for service firms has measures were taken from Mehrabian and Russell’s (1974)
been well established (Mangold and Miller, 1999). In PAD framework. Four items each are used to capture both
addition, the effect of WOM may well be increasing, at least positive affect (excited, energetic, happy, and satisfied) and
partially due to the growth in electronic communication via negative affect (bored, sleepy, annoyed, and angry). Service
the internet (Liu et al., 2000). Furthermore, while WOM is a quality is measured with three 7-point semantic differential
critically important factor in any culture, its importance may scales based upon whether the overall quality of the restaurant
be amplified in cultures with relatively high communal during the visit was poor-excellent, inferior-superior, and
orientations. Since South Korea is considered among the represented low-high standards. The intent is to capture
most collectivist societies (see Hofstede, 1980), we believe beliefs about global service quality rather than specific service
word-of-mouth communication plays a critical role in our dimensions. Coefficient a for each scale is 0.90, 0.89 and
model. In the current study, CSV captures how rewarding a 0.90, respectively.
service experience is judged, and word-of-mouth captures Perceived service value items were adopted from the
one’s intent to engage in persuasive personal communication. perceived shopping value (PSV) scale (Babin et al., 1994).
When a service experience is particularly enjoyable and/or The PSV scale consists of 15 items representing perceived
beneficial, consumers will be motivated to encourage their hedonic and utilitarian value. Items were translated and back-
friends and family to participate in the behavior. Thus, we translated by separate bilingual speakers. Thus, translational
expect both dimensions of CSV to influence WOM intentions equivalence was established and, given that no comparisons
directly and positively. Finally, as theory dictates, satisfaction are drawn between cultures, there was no need to establish
is expected to relate positively to WOM (Mangold and Miller, further equivalency standards (Griffin et al., 2000). In the
1999). development of the CSV scale, some of the original PSV items
To summarize, the proposed model can be thought of as were deemed inappropriate for a restaurant experience (e.g. I
three sets of related constructs. The first group is comprised felt adventure . . .) and several more were dropped during item
of customer reactions to the retail environment and the purification due to high residuals. Following this procedure,
service provided. Those constructs are positive affect, the final CSV scale consists of six items representing
negative affect, and overall service quality. The final set perceived hedonic value of the dining experience and two
includes outcome variables, consisting of consumer items reflecting perceived utilitarian value. Coefficient a is
satisfaction and word-of-mouth (WOM). Between these 0.90 for the hedonic value scale and 0.76 for utilitarian value
constructs are mediators, captured here by CSV, (r ¼ 0.61).
representing the value obtained from a consumer- Satisfaction was measured with four items across multiple
environment interaction. In other words, as in previous scale types (see Babin and Griffin 1998). The items
135
Modeling consumer satisfaction and word-of-mouth Journal of Services Marketing
Barry J. Babin, Yong-Ki Lee, Eun-Ju Kim and Mitch Griffin Volume 19 · Number 3 · 2005 · 133 –139
Construct correlations
WOM SAT UV HV SQ PA NA
WOM 1.00
SAT 0.77 1.00
UV 0.59 0.61 1.00
HV 0.65 0.64 0.71 1.00
SQ 0.68 0.76 0.52 0.57 1.00
PA 0.58 0.62 0.45 0.50 0.49 1.00
NA 20.28 2 0.39 20.10 2 0.17 20.29 2 0.39 1.00
136
Modeling consumer satisfaction and word-of-mouth Journal of Services Marketing
Barry J. Babin, Yong-Ki Lee, Eun-Ju Kim and Mitch Griffin Volume 19 · Number 3 · 2005 · 133 –139
137
Modeling consumer satisfaction and word-of-mouth Journal of Services Marketing
Barry J. Babin, Yong-Ki Lee, Eun-Ju Kim and Mitch Griffin Volume 19 · Number 3 · 2005 · 133 –139
contrast, data presented here involve relatively routine dining actions affect service, which in turn affects profit. Consumer
experiences where, while things definitely sometimes go satisfaction and WOM are important marketing outcomes
wrong, the majority of outcomes are positive. Also, the affecting the profitability of the service enterprise. Our results
potential cultural differences between Korean consumers and suggest that service firms should focus not only on providing
North American consumers may place greater emphasis on functional service quality, but they should also make sure that
positive emotions. the environment provides high levels of positive affect and
hedonic value. Future researchers investigating service
Functional and affective quality outcomes in Korea should consider capturing both hedonic
Theory suggests that retail personalities are comprised of both and utilitarian service value as a parsimonious representation
functional and affective qualities (Darden and Babin, 1994). In of the overall results of the service experience.
a similar vein, services are sometimes distinguished based on In addition, future research should examine factors related
relative amounts of core and relational attributes (Iacobucci and to the limitations of the current study. First, more rigorous
Ostrom, 1993). Core attributes are task-related and are and detailed testing of measurement scales in South Korea
essentially those that provide the functional quality. Relational would further our knowledge of cross-cultural measurement
attributes, which are more communal and emotional in nature, issues. It is possible that some scales developed in Western
would include the retail atmosphere. Service managers are faced culture may not be suitable for the South Korean culture.
with creating an environment that often involves trading off Second, and related, our results do not directly address cross-
these attributes. For example, many Japanese style steakhouses cultural differences between Korean consumers and Western
(like Benihana’s) emphasize the affective qualities through the consumers. Researchers considering potential differences in
entertainment value and personal interactions between the cook core cultural values in greater detail may lead to specific
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and the guests as meals are prepared tableside. Certainly, it is hypotheses testing the moderating effect of culture on the
more difficult to hire an entertaining chef with both an engaging relationships presented here. This research would require
personality and an ability to flip a shrimp tail from his cleaver matching data from multiple cultures as well as a more
into his hat than it is to hire someone to cook in a hidden rigorous examination of the cross-validity of PSV/CSV items
restaurant kitchen. While the current study does not provide between cultures.
this level of specificity regarding particular environmental Third, the role of moderators of the relationships examined
elements, it does reinforce the importance of affective quality in here can benefit from considerably more attention. Here, we
terms of important customer outcomes. If these affective focused on mid-to-upper range restaurant experiences
qualities do not produce greater customer satisfaction, they may (family-style dinner houses). Perhaps the prestige level of
not be so wise to pursue. the service provider would moderate these relationships. That
Thus, our results speak to the relative effectiveness of is, more prestigious and expensive restaurants may exaggerate
affective and functional qualities. Functional qualities, being the role of positive affect and hedonic value. Likewise, more
task-related, are associated with utilitarian service value. functionally oriented service providers, such as buffet-style
Utilitarian value shows direct positive effects on consumer restaurants, may emphasize the role of utilitarian value.
satisfaction and WOM. Any drop in perceived utilitarian value Similarly, numerous other contextual factors (time of day,
will reduce each of these important outcomes. However,
dining partners, etc.) may moderate the relationships
affective qualities, being more emotional and spontaneous, yield
examined. Other potential moderators including service
benefits captured better by hedonic value. Results show
expectations, ambient mood, and a variety of personality
significant positive effects between hedonic value and both
and demographic variables, might also be investigated.
satisfaction and WOM. Post hoc tests suggest that the effects of
Clearly, there is much to be learned about how consumers
hedonic value are just as strong as those of utilitarian value (a
interact with physical service environments around the world.
SEM constraining these paths to be equal produced an
insignificant x2 difference of 0.5 with 2 df). Thus, it appears
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