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Journal of Consumer Sciences E-ISSN : 2460-8963

2016, Vol. 01, No. 01, 56-69

Predicting Customers’ Intention to Revisit A Vintage-Concept


Restaurant

Usep Suhud* Arifin Wibowo


Faculty of Economics, State University of London School of Public Relations (LSPR),
Jakarta Jakarta

*Corresponding author: [email protected]

Abstract
Restaurants with a vintage concept become an option for urban people who want to enjoy
dining out. To present this vintage atmosphere, restaurant management and owners
decorated their stores with antiques and anything vintage, such as signboards, utensils,
furniture, posters, and even the menu. The objective of this study is to investigate the
impact of perceived value, restaurant atmosphere on satisfaction and revisit intention.
This study attracted 200 respondents visiting a vintage-concept restaurant. The data were
collected in Jakarta and analysed with exploratory and confirmatory factor analyses. As a
result, three hypotheses were accepted and two hypotheses were rejected: customer
satisfaction was influenced by perceived value and restaurant atmosphere and revisit
intention was significantly influenced by customer satisfaction.

Keywords: revisit intention, perceived value, vintage-concept restaurant, atmosphere,


confirmatory factor analyse

Abstrak
Restoran dengan konsep tempo dulu (vintage) banyak ditemukan di kota-kota besar
dengan menghadirkan desain, poster, furniture, alat dapur, pernak-pernik, hingga menu
yang ditawarkan pun menunjang atmospheric yang dimaksud. Penelitian ini bertujuan
untuk menginvestigasi pengaruh persepsi nilai, atmosfer restoran pada kepuasan
konsumen dan implikasinya terhadap intensi untuk mengunjungi ulang. Sejumlah 200
responden – mereka yang berpengalaman mengunjungi restoran berkonsep vintage –
berpartisipasi dalam survey online maupun langsung. Data dianalisis menggunakan
exploratory dan confirmatory factor analysis. Hasilnya menunjukkan bahwa kepuasan
konsumen secara signifikan dipengaruhi oleh persepsi nilai dan atmosfer restoran, dan
kepuasan konsumen secara signifikan mempengaruhi intensi berkunjung kembali.
Sedangkan, persepsi nilai dan atmosfer restoran tidak berpengaruh terhadap intensi
berkunjung kembali.

Kata kunci: intensi berkunjung kembali, persepsi nilai, restoran berkonsep vintage,
atmosfer, confirmatory factor analyse

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Introduction

Food and beverage businesses are growing significantly in Jakarta. This


capital of Indonesia offers a lot of choices when it comes to F&B businesses, from
a small scale hawkers and food trucks to a celebrity chef’s fine dining are
available throughout the entire city. According to the report published by
Euromonitor International (2013), the growth reached 250% in the last five years,
and US$ 1.5 billion was spent annually for dining out.
As in many other countries, growing economy sectors come together with
fiercer competition (Levingston, 2013), which made local players compete not
only with other local players but also with foreigners as well. Therefore, more
creative and seductive strategies are needed by local players in order to be able to
survive the competition.
Products of the restaurants, food and the beverages, are most likely the
main attribute for any restaurants. However, foods and beverages are not the only
important factors but also service provided by restaurant employees may be
another critical component of restaurants’ product (Jang & Namkung, 2009).
Good quality products must then be supported by a great value of price, which
mean the price has to meet the value received by customers. The next attribute is
place, which is totally different from Fast Moving Consumer Goods (FMCG)
products. Places for FMCG products usually have similar meaning with chain of
distributions. However, for restaurants location and atmosphere can be really
meaningful. The last attribute is the promotion given by the restaurants. Not all
restaurants necessarily use promotions to attract customers, for example hawker
stalls and food trucks; however, it is still needed in a tight competition as it is
now.
Marketing practitioners and researchers have shown a growing interest in
the effects of atmospherics on consumer behaviour (Liu & Jang, 2009). All
hospitality service providers strive to ensure that every single detail of the
physical atmosphere contributes to customers’ overall satisfaction (Heung & Gu,
2012). It has long been recognized that consumers respond to more than just the
core product or service being offered when making purchase decisions; they
respond to the total product. One of the most important features of the total
product can be the place where it is bought or consumed (Billings, 1990). Bitner
(1992) noted that physical environment or atmosphere can function as a nonverbal
communication, which can influence an individual’s belief and judgment towards
the products and services within that environment as well.
One of the trends in Jakarta is that most of new restaurants tend to have a
concept atmospheric. This can be seen as restaurants with unique concept, such as
Nanny’s Pavilion, Wilshire, El Greco, The Playground, Pizza e Birra, in which the
interior design, the utensils, the menu and other details refer to one main concept.
Restaurateurs establish a distinctive image that can differentiate their restaurants
from the competitors so that they will be able to communicate the product’s major

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benefits and positioning towards a target market (Ryu, Han, & Kim, 2008).
However, although many creative concept ideas were realised by restaurateurs,
not all of them were successful. One of unique concepts that is spreading all
across Jakarta is oldies or vintage-concept restaurants, which usually offer various
kind of Indonesia’s modernised famous heritage hawker foods like fried rice,
toasts, fried noodle, various soups, and half boiled egg.
The main objectives of this study were to explore determinant factors that
influence revisit intention and to understand which factors from the articles about
restaurants and cafe reviewed by the authors that affect customers revisit
intention. However, this study only employs perceived value, atmosphere, and
customer satisfaction as independent factors since many previous studies have
proved that those factors have significant correlation with customers’ behavioural
intention.
The first one to introduce the concept of Atmospherics was Kotler (1973).
In some instances, the place or to be more specific the atmosphere of the place is
more influential than the product itself in the purchase decision (Kotler, 1973). In
addition, Mehrabian and Russell (1974) have introduced a concept about
environmental psychology that suggests that environmental stimuli (S) will lead to
an emotional reaction (O) which in turn will drive consumers’ behavioural
response (R) based on the stimulus-organism-responses (S-O-R) paradigm.
Despite the great contribution of Mehrabian and Russell (1974)’s model to
the literature, it is undeniable that there are other aspects that affect consumers’
behaviour intention (Jang & Namkung, 2009). For example, within a restaurant
concept, other factors such as food taste, freshness, and presentation also compose
a set of stimuli towards consumer’s behaviour intention (Kivela, Inbakaran, &
Reece, 1999). Perceived value is also important as it assists in creating
competitive advantage. Furthermore, consumers will only purchase products or
services they valued (Doyle, 1998). Another critical component that is important
to affect consumers’ behavioural intention is service quality provided by the
restaurant employees (Jang & Namkung, 2009).

Literature Review

Theoretical Framework and Hypotheses


Perceived Value
Patterson and Spreng (1997, p. 4) described value as a “cognitive-based
construct which captures any benefit-sacrifice discrepancy in much the same way
disconfirmation that does for variations between expectations and perceived
performance”. As a cognitive response, perceived value leads to satisfaction,
which is an effective response (Kim, Kim, & Goh, 2011).
In marketing literatures, value or perceived value has been identified as a
critical construct for developing long-lasting relationships with customers (Liu &

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Jang, 2009). Perceived value has been recognized as one of the most critical
factors and measures for gaining a competitive edge for business success
(Parasuraman, 1997), and it can also be measured to examine customer’s
repurchasing intention as one of the most important indicators, or in this case,
customers’ revisit intention (Parasuraman & Grewal, 2000). Value itself has four
diverse meaning: (a) Value is cheap price, (b) Value is whatever one wants in a
product, (c) Value is the quality that the consumer receives for the price paid, and
(d) Value is what consumer gets for what he/she gives (Zeithaml, 1988). If
customers perceive what they get surpasses and what they have paid, they will
most likely willing to do repurchase (Liu & Jang, 2009). Thus, based on those
previous findings, the following hypotheses were developed:

H1: Perceived value has positive effect and significant on customer satisfaction
H2: Perceived value has positive effect and significant on revisit intention

Restaurant Atmosphere
In marketing literature, atmospherics as the conscious designing of space
is to produce specific emotional effects on buyers that enhance their purchase
probability (Kotler, 1973). Atmospherics itself represent not only tangible but also
intangible environmental features, such as music, lighting and furnishings (Liu &
Jang, 2009), so atmospherics can be apprehended through senses (Heung & Gu,
2012).
There are three atmospherics dimensions that were known as service
space, which includes: (a) ambient conditions, (b) spatial layout and functionality,
and (c) signs, symbols and artefacts (Bitner, 1992). Ambient conditions refer to
the background characteristics of the environment, such as lighting, music and
scent (Heung & Gu, 2012); spatial layout and functionality were needed to convey
a sense of cosiness and intimacy (Ching, 2010). While Signs, symbols and
artefacts can communicate explicit or implicit messages about a place to its users
(Bitner, 1992). This concept has been accepted as an important determinant of
customer psychology and behaviour (Ryu & Jang, 2007). In addition, although
food and services should be at acceptable quality, a pleasing service space may
influence positive emotions and subsequent behaviour (Donovan & Rossiter,
1982).
Some research also suggest that atmospherics has a correlation with
customers satisfaction (Heung & Gu, 2012). Wakefield and Blodgett (1996) found
out that the effects of layout accessibility; facility aesthetics, electronic
equipment, seating comfort and cleanliness significantly affect the customers’
satisfaction in the leisure service setting. Ryu et al. (2008) also noted that
atmospherics or physical environment could be considered the same as the first
component of Mehrabian and Russell (1974)’s model: the environmental stimuli.
Therefore, based on those previous findings, the following hypotheses were
developed:
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H3: Restaurant atmosphere has positive effect and significant on customer’s


satisfaction
H4: Restaurant atmosphere has positive effect and significant on revisit intention

Customer Satisfaction
In the restaurant industry, Cho and Park (2001) defined satisfaction as a
summary of responses with varying intensity, with a time specific point of
determination and limited durations, directed towards focal aspects of product
acquisition and consumption. This concludes that customers’ level of satisfaction
is strongly associated with repeated purchase intentions and return patronage.
Customer satisfaction is usually referred to as a post-consumption
evaluation (Arora & Singer, 2006). The original Mehrabian and Russell (1974)’s
model show that environmental stimuli will affect emotional states of the
consumers. However, several studies showed that perceived value and
atmospheric affected consumers’ satisfaction (Halim & Hamed, 2005; Heung &
Gu, 2012; Kim et al., 2011; Ryu et al., 2008; Tat, Sook-Min, Ai-Chin, Rasli, &
Hamid, 2011; Weiss, Feinstein, & Dalbor, 2005). While some research that did
not use atmospherics applied satisfaction as a predictor of revisit or repurchase
intention. Thus, it is notable that measuring and monitoring consumer satisfaction
is a very important process, because it provides invaluable information (Baker &
Crompton, 2000). Some previous research also noted that consumers’ satisfaction
is an excellent predictor of repurchase intention (Jang & Feng, 2007; Petrick,
Morais, & Norman, 2001)
Considering the results of previous studies, this hypothesis was developed
for this study:

H5: Customer Satisfaction has positive and significant effect on customer’s revisit
intention.

The Proposed Model and Hypotheses


Based on the literature review, the authors list hypotheses as presented
below. In total, there are five hypotheses to be tested. Furthermore, the authors
illustrate the proposed model to be tested based on the table above as seen below.
In addition, here are the hypotheses to be tested.

H1: Perceived value significantly influences satisfaction


H2: Perceived value significantly influences revisit intention
H3: Restaurant atmosphere significantly influences satisfaction
H4: Restaurant atmosphere significantly influences revisit intention
H5: Satisfaction significantly influences revisit intention

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Figure 1 The proposed model to be tested

Methods
Participants
The sample for this study was conducted using a convenience approach to
anyone who had an experience in dining in a vintage-concept restaurant.
Regarding sample size, Hair Jr., Black, Babin, Anderson, and Tatham (2006)
suggested a minimum sample size of 150 for models with seven constructs or less.
However, studies that used maximum likelihood estimation recommended a
sample size of 200. Thus, this study used 200 samples since this number fulfil
those two suggestions. Participation was voluntary.
A total of 200 samples was used for this research. Within these 200
samples, a total of 48.5% was male and 51.5% was female. Looking into their job
status, 79.5% was employee, while only 4.5% was employer. The others, 9.5%,
were students. Looking at the age, the biggest portion was at the age of 20-30
years old (86%), while there was only 7.5% at the age above 40. Looking into
their expenditure for dining out, the biggest chunk spends USD38 – 77 (58%),
followed by USD78 – 385 (31.5%).

Measures
A self-administered questionnaire comprised into two sections. The first
section asked the respondents to indicate their thought and feelings towards some
indicators which represent six variables including perceived value, atmospherics,
satisfaction, and revisit intentions. While the second section asked about the
respondents’ personal information, such as age, gender, highest education, and
expenditure for eating out-of-home. The first sections indicator adapted several
validated indicators taken from studies in the field of hospitality, and then they
were modified in order to fit them into this study. And then they were measured
using a 5-point Likert scale (1= strongly disagree to 5= strongly agree).

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As this study was conducted in Indonesia, the instrument was designed in


Bahasa Indonesia. The indicators for perceived value were adapted from studies
undertaken by Kim et al. (2011) and Ryu et al. (2008). While for atmosphere
variable, the indicators were adapted from studies conducted by Heung and Gu
(2012) and Jang and Namkung (2009). For satisfaction, indicators were adapted
from Kim et al. (2011), Han and Ryu (2009), and Ryu et al. (2008). Furthermore,
indicators for revisit intention were adapted from Jang and Namkung (2009), Ryu
et al. (2008), Han and Ryu (2009), and Ashton, Scott, Solnet, and Breakey (2010).

Analysis
This study used two data analysis methods. The first method was factor
analysis, which was also used as a tool to test the validity of the questionnaire and
the data collected. Factor analysis is primarily used to define the underlying
structure among the variables in the analysis (Hair Jr. et al., 2006). The second
method was conducting structural equation model to test the hypotheses. SEM is
used to seek explanation the relationships among multiple variables (Hair Jr. et al.,
2006; Holmes-Smith, 2010). Furthermore, results of the SEM analysis were
consulted to the rule of thumbs mentioned by Holmes-Smith (2010), including:
a. Chi-Square (p-value) acceptable level should be greater than 0.05;
b. CMIN/DF, acceptable value should be less than 3.00;
c. Comparative Fit Index (CFI), acceptable value should be more than 0.95;
d. Root Mean-Square Error of Approximation (RMSEA), acceptable value
should be less than 0.05.

Result

Exploratory factor analysis


Perceived Value
In total, the authors applied seven indicators to measure perceived value.
Factor analysis retained all indicators, and formed no dimension with factor
loadings ranging from 0.558 to 0.823. This has a Cronbach’s Alpha score of 0.839
which was reliable.
Table 1 Factor analysis result of perceived value
Indicators Loadings
PV_6 The overall value of dining at the restaurant was high. 0.823
PV_2 The restaurant offered good value for the price. 0.805
PV_3 Food was fairly priced. 0.788
PV_7 The quality of the food was outstanding. 0.674
PV_4 Food had a good reputation. 0.673
PV_5 Food was easy to purchase. 0.629
PV_1 This food made me feel good. 0.558
Cronbach's Alpha 0.839

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Restaurant Atmosphere
After the factors were analysed, there were only seven out of ten indicators
retained. The variable consisted of two dimensions: the first dimension consisted
of five indicators, with factor loading ranging from 0.739 to 0.861. Whilst the
Cronbach’s Alpha score of 0.864. Furthermore, the second dimension consisted of
two indicators with no many different factor loadings. The higher scored indicator
was 0.859 and the lower one was 0.838, while the Cronbach’s Alpha score of
0.627. Although the score showed that this dimension was not reliable, the author
insisted to use this dimension for SEM analysis.

Table 2 Factor analysis result of restaurant atmosphere


Indicators Loadings
A_3 Overall interior design is attractive 0.861
A_6 Paintings/pictures are visually appealing 0.861
A_8 Plants/flowers make me feel happy 0.840
A_4 Colours used create a pleasant atmosphere 0.746
A_7 Lighting creates a comfortable atmosphere 0.739
Cronbach's Alpha 0.864
A_1 Seating arrangement gives me enough space 0.859
A_2 Layout creates adequate dining privacy 0.838
Cronbach's Alpha 0.627

Customer Satisfaction
For satisfaction, a total of five indicators were employed as measurements.
Factor analysis result showed that this variable had no dimension, with all
indicators retained and factor loadings ranging from 0.717 to 0.815 with
Cronbach’s Alpha score of 0.828. It shows that this is a reliable variable.

Table 3 Factor analysis result of customer satisfaction


Indicators Loadings
Sat_2 I think I made the correct decision to attend this restaurant 0.851
Sat_1 I was pleased to dine in at this restaurant 0.795
Sat_3 The overall feeling I got from this restaurant was satisfying 0.764
The overall feeling I got from this restaurant put me in a good
Sat_4 0.724
mood
Sat_5 I really enjoyed myself at this restaurant 0.717
Cronbach's Alpha 0.828

Revisit Intention
After factor analysed, the result showed that all indicators were retained.
However, this variable was also found having no dimension with factor loadings

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ranging from 0.720 to 0.835. The Cronbach’s Alpha score of 0.825 explained that
this variable was found to be reliable to be included in SEM.

Table 4 Factor analysis result of revisit intention


Indicators Loadings
BI_2 I would recommend this restaurant to my friends or others 0.835
BI_1 I would like to come back to this restaurant in the future 0.774
BI_5 I would say positive things about this restaurant to others 0.773
BI_3 I would more frequently visit this restaurant 0.742
BI_4 I would consider dining in this restaurant 0.720
Cronbach's Alpha 0.825

Confirmatory Factor Analysis


Using structural equation model, the author tested the proposed model; as
a result, a fitted model was achieved as shown in the figure below. The model had
a Chi-square (p-value or probability) score of 0.128, CMIN/DF of 1.434, CFI of
0.989, and RMSEA of 0.047. Of each variable, only two indicators survived.

Table 5 Result of confirmatory factor analysis

Criteria:
Probability=
0.128
CMIN/DF=
1/434
CFI= 0.989
RMSEA=
0.047

Based on the theoretical framework testing, two hypotheses are rejected


and another three are accepted. On the table below, the authors indicate results of
the hypotheses testing.

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Table 6 Summary of hypotheses testing


Standardised
C.R. Result Interpretation
total effect
Perceived
H1  Satisfaction 2.916 Accepted 0.325 Mild
Value
Perceived Revisit Moderately
H2  1.832 Rejected 0.457
Value Intention strong
H3 Atmosphere  Satisfaction 4.186 Accepted 0.329 Mild
Revisit
H4 Atmosphere  1.148 Rejected 0.370 Mild
Intention
Revisit Extremely
H5 Satisfaction  7.703 Accepted 0.902
Intention strong

Discussion

It can be seen that H1 which predicted that perceived value would have a
significant effect on satisfaction was accepted. The C.R. (t-value) value showed of
2.916, which meant that this path was significant. While the total effect value
showed as 0.308. This finding supports prior studies conducted by Kim et al.
(2011) and Raza, Siddiquei, Awan, and Bukhari (2012).
The second hypothesis predicted an impact of perceived value towards
behavioural intention. The result showed a low C.R. of 1.832, which meant that
this path was insignificant. Therefore, H2 was rejected. This finding contradicts
with prior studies reported by Kim et al. (2011), Raza et al. (2012), Ryu et al.
(2008), and Ashton et al. (2010). On the other hand, this finding supports the
study undertaken by Chang and Backman (2013) that demonstrated that perceived
value insignificantly influence revisit intention.
H3 was to predict the effect of restaurant atmosphere on satisfaction. This
hypothesis was accepted. The C.R. value showed of 4.186, which meant that this
path was significant. This finding supports the prior studies undertaken by Petzer
and Mackay (2014) and Ryu and Han (2010).
The fourth hypothesis, which predicted that atmosphere had a positive
effect on behavioural intention was rejected as the value for C.R., less than 2.00.
This finding was insignificant with the finding from the previous studies
conducted by Heung and Gu (2012), Ryu et al. (2008), and Wakefield and
Blodgett (1996).
The last hypothesis, which predicted that satisfaction would have a
positive effect on behavioural intention was accepted. The result showed that this
was a significant with a C.R. value of 7.703. Moreover, total effect result showed
that there would be very strong effects on behavioural intention when satisfaction
increased. This finding supports the finding from the study carried out by
Herstanti, Suhud, and Wibowo (2014), Ryu and Han (2010), Shariff (2012), Jang
and Namkung (2009), Ha and Jang (2010), and Tat et al. (2011)

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Conclusion and Recommendation

Conclusion
This study demonstrated the significant impact of perceived value and
vintage atmosphere on customer satisfaction, and the significant impact of
customer satisfaction on revisit intention. On the other hand, perceived value and
vintage atmosphere are insignificant to affect revisit intention. The findings
suggest that vintage atmosphere could only influence satisfaction without giving a
guarantee that visitors would have an intention to revisit to the restaurants unless
it was mediated by satisfaction.
There is a paucity of study discussing consumer behaviour relating to a
vintage-concept restaurant. This study fills in this gap. Besides, vintage-concept
restaurants owners and managers could benefit the findings to improve the
atmosphere with a purpose to develop and increase the visitors’ satisfaction.
However, this study has some limitations. Firstly, partcipants were
recruited away from the restaurants they have visited. By this event, there was a
possibility for them to forget the ambient of the restaurants. Secondly, as the
instrument was distributed using emails personally, it caused only those in the
networks of the authors who could be contacted.

Recommendation
Vintage-concept is one of the concepts built by restaurant owners and
management to attract more visitors as well as a store identity. These
atmospherics might influence consumers differently. Future research should
consider gender and cohorts to see the result differences. Besides, recruiting
respondents in site would be more recommended to obtained real participants with
genuine experiences of a vintage-concept restaurant. .

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