SSRN Id3787925
SSRN Id3787925
SSRN Id3787925
1. Introduction
Nowadays, consumption is an important factor in our lifestyle, which, in addition to
helping to increase energy to the body, consumption also complements the happiness in
meeting the needs of consumers, which makes most consumers like to eat out more, making
the restaurant industry very important to consumers (Andaleeb & Conway, 2006). Due to the
growing consumer demand, the restaurant industry is growing rapidly. And is a business that
is quite competitive to meet the needs of consumers, entrepreneurs should understand the
factors that make consumers satisfied. (Canny, 2013) To increase the likelihood of future
consumer behavior and increase business income. Due to ever-changing consumer
behavior, these days the restaurant industry is forced to adjust according to consumer
behavior; thus, fast-food restaurants are becoming more popular in the fast-casual restaurant
industry. Fast-casual is a combination of fast food that focuses on fast and casual dining that
focuses on quality (Tillotson, 2003). The restaurant atmosphere and the diverse menu are
unique and likely to become more popular all over the world as fast-casual combines fast
service elements with a casual dining experience at a relatively low price, combining a good
atmosphere good food quality, good taste, and convenient and fast service, including the
ability to pay from the satisfaction of the value that consumers receive (Sloan, 2002).
Therefore, the restaurant business at fast-casual restaurant is currently growing more rapidly
than fast-food restaurants.
Fast-casual format is likely to be more popular in Thailand because of the fast-paced
lifestyle, but at the same time Thai consumers choose and pay more attention to quality and
health consciousness, so Fast Casual is becoming more popular among consumers as well as
the growth rate of restaurants are expanding rapidly and increasing every year. Fast-casual
restaurant is expanding rapidly and increasing every year. Therefore, it is an opportunity for
Fast Casual businesses to respond to both convenience and food quality. Most Fast Casual
businesses provide customers with the option to adjust the ingredients or sizes of food they
want, (Anderson, 2003) in which consumers will pay more if they receive better quality
products and that product can be adjusted including creating an atmosphere in the shop for
customers who use the service to feel comfortable and achieve maximum satisfaction, such
as Pepper lunch, Au Bon Pain, Hachiban Ramen, Yoshiyana and MOS burger etc. For
example, (NATH, 2019) from the statistics of various restaurant businesses in the United
States, it can be seen that Fast Casual has a tendency to grow faster than Fast Food in general.
In 2016, Fast-casual restaurants grew by 8% compared to fast food stores which grew 4%.
Creating consumer satisfaction is a marketing principle, which is the heart of the restaurant
industry. The factors that create satisfaction for most consumers, (Ryu, 2007) focus on food
quality that consumers can recognize excellent, service quality and the quality of the
environment are all important factors for attracting new consumers, and retaining existing
consumers in the long run to encourage repeat consumption. Creating memorable
experiences for consumers is creating service value, so that consumers have a good
experience and satisfaction in that product or service. (Shah et al., 2018) This is a challenge
that service providers or entrepreneurs should understand in order to create an experience that
impresses consumers. Since the consumer demand behavior is caused by the satisfaction that
consumers receive from products or services of the restaurant, the right combination of
aspects that result in customers being aware of the high quality of restaurant services will lead
to achieving customer satisfaction and positive intentions in the food industry.
In addition, creating satisfaction and behavioral intention for consumers is important.
Relationship Quality is consumers choosing products or services based on the assumption
that they will be rewarded with value and satisfaction (Thurau & Klee, 1997). Consumption
is a process that uses products and services and determines the level of value by consumers.
The value level may be positive if the consumer is satisfied or it may be negative if the
consumer does not find any value. The quality of relations is the context between consumers
and entrepreneurs, which is a marketing activity that leads to successful development, which
is the key to create behavioral intention and satisfying consumers. The Objectives of the
Study to analyze and study the relationship between the restaurant quality factors (food,
Service, Physical Environment) and the perceived value, satisfaction, and intentions of the
fast-casual restaurant customer eating behavior. This study is important in both theory and
practice. This study demonstrates the style and development guidelines and describes the
four important factors of the restaurant industry (physical environment, food, service,
perceived value) that affect the creation of behavioral intention and satisfaction for
consumers. The results found in this study helps to expand the understanding of restaurant
operators or managers in the food industry in terms of food and services, the factors that
influence the type, quality, and value of customer satisfaction and behavioral intention. This
will give operators a better understanding of the development and improvement of the quality
of fast-casual restaurants in order to build restaurants' strengths to respond to consumer
satisfaction. In addition, it also helps consumers understand the service principles of
restaurants in the Fast-Casual Restaurant format.
2. Literature Review
satisfaction can create retain the existing consumers and attract new consumers in the future
(Getty & Thompson, 1994). It shows that consumer satisfaction is an important business role,
which is a fundamental factor in managing the business to be efficient in meeting goals.
Therefore, it is an essential key in sustainable growth and obtaining higher revenue (Rust &
Oliver, 1994). Researchers found that consumer satisfaction has a positive influence on the
post-consumer attitude of returning and repeated consumption: thus, (Geyskens &
Steenkamp, 2000) the mood of consumers is affected by their satisfaction level, depending on
the severity and the type of products and consumer’s ability to consume the product or
service (Oliver, 1993). In addition, consumer satisfaction depends on the basis of the
expectation theory of consumers, resulting in consumers being able to assess satisfaction by
comparing with effective expectations. Relative quality is an important process, consisted of
customer trust and satisfaction (Walsh, Henning-Thutau, Sassenberg, & Bornemann, 2010).
It reflects the relationship between consumer satisfaction and a product or service. From the
literature review (Canny, 2013) it was found that the factors affecting the satisfaction of
consumers in the restaurant industry consist of tangible factors, such as food quality, the
physical environment quality, and intangible factors, such as service, and perceived value.
These all affect consumer satisfaction with details as follows.
want, which can be either positive or negative, based on the needs of consumers. If
consumers are satisfied with the fairness of the cost-value ratio, they recognize the proportion
of production factors that they have received from the operator, (Rust & Oliver, 1994) which
leads to increased service value and has big effects on the behavioral intention of consumers
after consumption.
Food Quality
Service Quality
Customer Behavioral
Satisfaction Intention
Physical Environment
Quality
Perceived Value
addition, food services in the restaurant industry must cover the composition of food and
physical facilities. The intangible component is the service between employees and
consumers. (Taylor & Baker, 1994) It shows that the combination of both handles and
intangible results in consumers being aware of the restaurant's service quality leads to the
highest satisfaction and creating good attitudes for restaurants.
2.7.3 Influence of physical environment quality on customer satisfaction
The physical environment in a restaurant or atmosphere is an important element while
customers deciding the restaurant because, in the restaurant industry there is high
competition, forcing the restaurants to create distinctive points by arranging decorations to
make a difference in the business, (Liu & Jang, 2009) by creating a good physical
environment to add value and maintain existing consumers, as well as attracting new
consumers. In addition, many consumers pay more attention to the restaurant's atmosphere
with beautiful decorations, better atmosphere, and food and services, it shows that in addition
to eating, consumers expect memorable dining experiences in order to be satisfied. (Anwar &
Guilzar, 2011) The study found that when consumers are satisfied, they are more likely to pay
higher prices for a better environment and service for satisfaction. The consumer's dining
experience is also responsible for creating a positive behavior for consumers.
2.7.4 Influence of perceived value on customer satisfaction
Awareness of consumer value is one of the basic factors that can influence consumer
satisfaction. Furthermore, consumer satisfaction arises from the recognition of value after
consuming products and services, (Bowen & Shoemaker, 1998) in which consumers can
express opinions or recommend products or services based on their own experience. The
studies have found that the perceived value of consumers correlated with positive behavior
towards the service industry that creates satisfaction for consumers. (Han, Ryu, & Kim,
2007) The recognition of value allows consumers to assess value for money and compare the
value of products or services that satisfy consumers can indicate consumer satisfaction from
consumption behavior.
2.7.5 Influence of customer satisfaction on behavioral intention
Customer satisfaction and behavioral intention is a direct result of a direct
relationship betwixt consumers and restaurants (Harn & Ryu, 2009). Studies have shown that
eating preferences directly affect behavioral intentions after consuming eating significance.
It is important, though behavioral intentions and customer satisfaction are different. But they
are related because the results of satisfaction may strengthen the relationships with customers
in deciding to use products for various occasions. Behavioral intention refers to people's
beliefs about what they intend and will do in certain situations. Indicators of intention means
good post-purchase behavior, including speaking positively or recommending to others
(Namkung & Jang, 2007). It also shows a high level of satisfaction increases consumers'
willingness to return and buy products. (Kim, Kim, & Ng, 2009) Improving consumer
satisfaction levels is important in reviewing the willingness of recommendations for
dissatisfied consumers who tend to change for the better.
3. Research Methodology
The objective of this study is to study 6 influencing factors (Service quality, Food
quality, Physical environment quality, and perceived value) that affect customer satisfaction
and behavior intentions of consumers of fast-casual restaurants. This research is applied in
order to develop and examine factors that influence the intentional behavior and consumer
satisfaction. In conducting this survey, quantitative research is conducted with a focus on
consumers who live in Bangkok, Thailand and dine at the fast-casual restaurants in the
shopping malls in Bangkok. This study will use surveys by conducting online questionnaires.
There are three structure of data analysis of the study including the descriptive method,
Cronbach’s alpha, mean and standard deviations, multiple linear regression analysis, and
simple linear regression. In addition, secondary information is also relevant.
depending on the size of the population in Bangkok, Thailand and the result level of trust is
95%, with the size of the population in Bangkok more than 100,000 people. This study
demonstrates the target population amount 400 peoples and live in Bangkok, Thailand, and
use fast-casual restaurants in the Bangkok shopping malls, Thailand, according to the
formula of TARO YAMANE. According to Yamane's table, finding the number of samples
using Yamane's formula is, if there is a population group of more than 100,000 people, which
is the reason that the population data collection is 400 people: we want to study the behavior
of the consumers who eat in fast-casual restaurant in Bangkok to gather consumer
information in order to make the research results more reliable.
3.2.3 Sampling Procedure
For this study, the random sampling method was used non-probability to collect data
for conducting surveys by using random sampling in order to obtain data that corresponds to
the characteristics of the selected group according to the research objectives. This study will
use data from people who eat foods from fast-casual restaurant in the shopping mall by
conducting online surveys to explore the factors affecting the behavior intention and
satisfaction of consumers in the fast-casual restaurant industry in Bangkok, Thailand.
of most respondents is in the period 21 to 30 years old is 39.8%, 31 to 40 years old as 26%,
41 to 50 years old 21.8%, and more than 50 years old as 9.8%, less than 20 Years old as
2.8%. In terms of education, the majority of them are bachelor degree graduates (72%), and
13.8% are surveyed with a master's degree, 7.8% of respondents hold lower than a
bachelor's degree or high school, for the respondents who graduated with a doctorate degree
1%. For the monthly income of the majority of respondents 42.5% have a monthly income
between 15,001-30,000 baht, and those with incomes below 15,000 baht is 27.5%, and
30,001-45,000 baht is 14.5%, 45,001-60,000 baht is 9.3%, and finally, respondents with
more than 60,000 baht in income is 6.3%.
Table 2 Respondents’ Demographic Information
Demographic Factors (n=400) Frequency Percentage (%)
Gender
Male 169 42.3
Female 231 57.8
PV1 The restaurant offered good value for money. 4.09 0.816
PV2 The restaurant creates a service experience and good 4.05 0.810
atmosphere that makes the consumer feel worth the
money they paid.
PV3 The fast-casual restaurant provides better and more 4.05 0.802
reasonable value compared to other restaurant.
Customer Satisfaction
CS1 I am satisfied with the service of fast-casual restaurant. 4.10 0.797
CS2 The restaurant sets prices that are suitable for the quality 4.09 0.819
of the food and the taste.
CS3 The restaurant always meets the exceed my expectations. 3.99 0.850
CS4 I am satisfied with the good experience I received from 4.08 0.787
fast-casual restaurant.
Behavioral Intention
BI1 I would like to come back to this fast-casual restaurant in 4.09 0.803
the future.
BI2 I would recommend this restaurant to my friends or 4.06 0.808
others.
BI3 I would say positive things about this restaurant to others. 4.13 0.792
Source. Authors
From Table 3 The result of mean and standard deviation for food quality the highest
mean is “The restaurant offers fresh food” (FQ5), which is equal to 4.26 and the lowest mean
“The restaurant has decorated the image of food, such as food quality and garnished, that look
appetizing” (FQ1) is equal to 4.09. The result of highest standard deviation is “The restaurant
has decorated the image of food, such as food quality and garnished, that look appetizing”
(FQ1) which equals 0.902 and the lowest of standard deviation is “The restaurant offers a
variety of menu items” (FQ2), with the standard deviation of 0.778, for service quality, for
the highest mean is “The employees served me food exactly as I ordered it” (SQ1), which is
equal to 4.26 and the lowest mean, “The employee is always determined and eager to serve
me” (SQ4) makes 4.07. For the result of highest standard deviation is “The employee is
attentive, polite and always with service mind” (SQ3), which is 0.902 and the lowest of
standard deviation is “The employees served me food exactly as I ordered it” (SQ1) equals
0.835, for physical environment quality the highest mean is “During emergency decree
(covid19), the restaurant has plan and manage the layout to respond “social distancing”
which make customer feeling safe to use the service inside the restaurant” (PEQ5). It is equal
to 4.18. And the lowest mean, “The restaurant has a wide area that is convenient for
consumers to come in” (PEQ2), has the mean of 4.07. For the result, the highest standard
deviation is “The restaurant has clean and elegant dining equipment” (SQ3), which equals
0.846 and the lowest of standard deviation is “During emergency decree (covid19), the
restaurant has plan and manage the layout to respond “social distancing” which makes
customer feeling safe to use the service inside the restaurant” (PEQ5), equals 0.802, for
perceived value. The highest mean is “The restaurant offered good value for money” (PV1)
equal to 4.09 and the lowest mean, “The fast-casual restaurant provides better and more
reasonable value compared to other restaurant” (PV3), equals to 4.05. For the result of
highest standard deviation is “The restaurant offered good value for money” (PV1) which
equals 0.816 and the lowest of standard deviation is “The fast-casual restaurant provides
better and more reasonable value compared to other restaurant” (PV3), equals 0.802, for
customer satisfaction. The highest mean is “I am satisfied with the service of fast-casual
restaurant” (CS1), which is equal to 4.10 and the lowest mean, “The restaurant always meets
exceed my expectations” (CS3), equals to 3.99. For the result of highest standard deviation is
“The restaurant always meets the exceed my expectations” (CS3), which is 0.850 and the
lowest of standard deviation is “I am satisfied with the good experience I received from
fast-casual restaurant” (CS4), equals to 0.787, and the highest mean for result of the
behavioral intention is “I would say positive things about this restaurant to others” (BI3),
which is equal to 4.13 and the lowest mean “I would recommend this restaurant to my friends
or others” (BI2), which is equal to 4.06. The highest standard deviation of the result is “I
would recommend this restaurant to my friends or others” (BI2), which is 0.808 and the
lowest of standard deviation is “I would say positive things about this restaurant to others”
(BI3), equal to 0.782.
From Table 4, food quality (FQ), service quality (SQ), physical environment quality
(PEQ), perceived value (PV) can be explain the customer satisfaction in fast-casual
restaurant for r square is 75.9% at 95% confidence level (r2 = 0.759). And the result of all
factor VIF is below 5. it means not overlapped. It shows that H1, H2, H3, and H4 were all
Kaewmahaphinyo, T., Nuangjamnong, C. & Dowpiset (2020).
support because the P- value was below 0.05 for every independent variable. Food quality,
service quality, physical environment quality, perceived value have a significant influence on
customer satisfaction of fast-casual restaurant. Perceived value has the most important
among the four variables. Show the standardized coefficient of 0.432 (43.2%). Service
quality and physical environment quality has the standardized coefficient of 0.219 (21.9%)
and 0.209 (20.9%), and the finally, food quality has the standardized coefficient of 0.096 or
9.6%. respective, the indicates that the physical environment quality has superior influence
than service quality over than food quality that impact to customer satisfaction in fast-casual
restaurant.
The Simple Linear Regression (SLR) analysis was conducted to evaluate the
prediction of the relationship between customer satisfaction and behavioral intention. Table 5
shows the result of simple linear regression analysis was conducted evaluate the prediction
the average of behavioral intention (BI) can be explained by customer satisfaction (CS). The
result of the analysis indicated that customer satisfaction has a significant influence on
behavioral intention for fast-casual restaurant. at significant level of 0.000, the P-value of
variable is less than 0.05, r2 was 0.725 it means at 95% confidence level, r-square 72.5%, f
(1,398) = 1050.13, and the result of VIF below 5 it meaning not overlapped. Customer
satisfaction has a significant influence on behavioral intention usability of use with a standard
coefficient of beta at 0.852 (85.2%).
Table 5 the result of Simple Linear Regression (Behavioral Intention is the Dependent)
Hypothesis Variables Beta T-Value Sig VIF Results
(Standard
Coefficient)
H5 CS 0.852 32.406 0.000* 1.000 Supported
R 0.852
R Square (R2) 0.725
Adjusted R 0.724
Square
Remark: Significant at the 0.05 significant level (*p<0.05)
consumer satisfaction (B = 0.852), showing that the model presented in this study can
explain the factors that affect the Satisfying and creating the intended behavior of
customers in the context of the Fast-casual restaurant as well.
Table 6 the result of Hypothesis testing
Hypotheses β Sig Result
H1: Food quality has a significant influence on customer 0.096 0.035 Supported
satisfaction.
H2: Service quality has a significant influence on 0.219 0.000 Supported
customer satisfaction.
H3: Physical environment quality has a significant 0.209 0.000 Supported
influence on customer satisfaction.
H4: Perceived value has a significant influence on 0.432 0.000 Supported
customer satisfaction.
H5: Customer satisfaction has a significant influence on 0.852 0.000 Supported
behavioral intention.
Source. Authors
This study demonstrates the importance of understanding the image of the factors that
affect to customer satisfaction patterns and behavioral intention in the fast-casual restaurant
industry. From the research, it was found that the perceived value of the customers from the
experiences that the customers receive from the restaurants makes the customers feel worth
the price as compared to other restaurants which will result in the customers’ satisfaction. In
addition, the service quality of the employee or staff also helps to increase the level of
satisfaction from the service that is polite, fast, and the attention of the staff to customers
(Clark & Wood, 1998). In addition, most of the customers nowadays focus on the restaurant's
physical environment which can reflect the quality of the restaurant's design, the atmosphere
in the shop as well as the cleanliness of the shop that can attract customers and result can
creating customer satisfaction. As for the food quality, most customers will focus on the
variety of the menus, the freshness, the taste, and the temperature of the food that is suitable
for serving the customers. This is important in making customers feel more satisfied with the
restaurant and also affecting the intended behavior of the future of consumers. This study
provides an understanding of the relationship between quality factors (food quality, service
quality, physical environmental quality, perceived value) and customer satisfaction in the
restaurant industry, which is the key to education to increase knowledge and understanding
of satisfaction and intended behavior of this research framework by the quality of food,
service, and physical environment affecting to the customer satisfaction. This framework will
be useful for conceptual research and empirical research. The most important thing for
consumers to eat in fast-casual restaurants is food quality, then service quality, and
environmental quality. The results of this study correspond to (Mattila A. S., 2001) proponent
of factors supporting fast-casual restaurants, which is a fact that customers are interested in
preparing good-quality food with delicious flavors, including healthy food, indicating that
food quality has greatly influenced consumer satisfaction levels. In addition, restaurants need
to have good service in order to give consumers a good impression of a good environment to
be a part of creating a good experience that makes consumers satisfied. There is an important
part of understanding the sum of all service quality factors such as food quality, service
quality, physical environment quality, and perceived value of customer satisfaction and
behavioral intentional. This research has no limitations as the data is collected using a
random sampling method of fast-casual restaurants. The findings from this study should be
summarized with caution. The data was collected from those who have used fast-casual
restaurant shops in department stores in Bangkok. Therefore, the results from this research
are that most consumers are women aged 21-30 years, have a bachelor's degree, and have an
average salary between 15,001 and 30,000, dine in a lot of fast-casual restaurants. It is found
that women care about food quality, service quality, physical environment quality, perceived
value, and customer satisfaction with restaurants like Fast-casual restaurant more than men
do. In this analysis, using statistical techniques such as multiple linear regression analysis and
simple linear regression analysis to study and assess the relationship between independent
variables and dependent variables, which is a comprehensive technique for studying the role
of each the variable, satisfaction, and behavioral intention of consumers can be more clearly
identified. And for the impact of satisfaction in the impressionistic conceptual framework
that shows the relationship with the variables of the study will be evaluated more accurately.
Although the results of the respondents derived from the survey, this study variable states that
different restaurant brands may not be important factors affecting the study, which may be a
variable. Therefore, for future studies, the role of restaurant branding should be another
factor that can result in the satisfaction of the good relationship of the study.
The results showed that food quality, service quality, physical environment quality.
There is a positive impact on customer satisfaction on fast-casual restaurants. A key element
in creating strengths, differences, and advantages over competitors is to make consumers feel
worth the value. (Longart, 2010) Factors that affect consumer satisfaction with fast-casual
restaurants affect trust and commitment to restaurants. (Walsh, Hennig-Thurau, Sassenberg,
& Bornemann, 2010) Satisfaction has a positive impact on confidence and loyalty, which is
the consumer's evaluation of the restaurant's overall performance. (Mokhtaran, Fakharyan,
Jalilvand, & Mohebi, 2015) In the service industry, customer satisfaction affects restaurant
operations, leading to high levels of confidence for consumers to be satisfied
Authors should discuss the results and how they can be interpreted in perspective of
previous studies and of the working hypotheses. The findings and their implications should
be discussed in the broadest context possible. Future research directions may also be
highlighted.
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