Effect of Value Equity on Repurchase Intention – A Study at the Manwah Restaurant Chain
Main Article Content
Abstract
This study was conducted to test the relationship between value equity and repurchase intention of diners at the Manwah restaurant chain. In this study, the authors propose five factors that constitute value equity in the restaurant sector. These are: food quality, service quality, environment, price, and convenience. Data were collected from 400 diners who had used the service at the Manwah restaurant system in Hanoi, and were analyzed by SEM. The results show that value equity positively affects the intention to repurchase. In details, all P-values have values less than 0.05, showing that the factors of food quality, service quality, price, convenience and service environment all have an impact on the value equity factor. Except for the negative price factor’s regression coefficient, all the regression coefficients have positive values, showing that these factors have a positive impact on value equity. The negative regression coefficient of the price factor on value equity shows that the reasonableness of the price (customers rate it as low cost compared to the quality and quantity of what they receive) has a negative effect on value equity.
Keywords:
Value equity, repurchase intention, restaurant, restaurant chain.
References
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[2] Schmittlein, D., “Customers as Strategic Assets,” Financial Times, Mastering Management, 8 (5) (1995), 55-58
[3] Quick, M.J. & Burton S., “An Investigation of the Determinants of Repurchase in a High Involvement Category,” The Australian & New Zealand Marketing Academy Conference, 2000, 1501-1505.
[4] Patterson, P. and Spreng, R., “Modelling the Relationship between Perceived Value, Satisfaction and Repurchase Intentions in a Business‐to‐Business, Services Context: An Empirical Examination,” International Journal of Service Industry Management, 8 (5) (1997) 414-434.
[5] Hanai, T., Oguchi, T., Ando, K., & Yamaguchi, K., “Important Attributes of Lodgings to Gain Repeat Business: A Comparison between Individual Travels and Group Travels,” International Journal of Hospitality Management, 27 (2008) 268-275.
[6] Rust, Roland T., Lemon, Katherine N., & Zeithaml, Valarie A., What Drives Customer Equity: A company’s Current Customers Provide the Most Reliable Source of Future Revenues and Profits, MM Spring, 2001.
[7] Ottenbacher, M. C., & Harrington, R. J., “U.S. and German Culinary Innovation Processes: Differences in Involvement and Other Factors,” Journal of Foodservice Business Research, 11 (4) (2008) 412-438.
[8] Paul, M., Hennig-Thurau, T., Gremler, D. D., Gwinner, K. P. and Wiertz, C., “Toward a Theory of Repurchase Drivers for Consumer Services,” Journal of the Academy of Marketing Science, 37 (2) (2009) 215-237.
[9] Kivela, J., Inbakaran, R. and Reece, J., “Consumer Research in the Restaurant Environment, Part 1: A Conceptual Model of Dining Satisfaction and Return Patronage,” International Journal of Contemporary Hospitality Management, 11 (5) (1999) 205-222.
[10] Kim, W., & Sean Hyun, S., “Dimensions of Brand Equity in the Chain Restaurant Industry,” Cornell Hospitality Quarterly, 52 (4) (2011) 429–437.
[11] Parasuraman, A. L., Zeithaml, V. A., & Berry, L. L., “SERVQUAL: A Multiple Item Scale for Measuring Consumer Perceptions of Service Quality,” Journal of Retailing, 64 (1) (1988) 12-40.
[12] Jack Kivela, J., “Restaurant Marketing: Selection and Segmentation in Hong Kong,” International Journal of Contemporary Hospitality Management, 9 (3) (1997), 116-123.
[13] Mohd R. S., Suhardi W. M., Anita A. H., Maznah W. O. and Etty H. H., “The Relationship between Product Quality and Purchase Intention: The Case of Malaysia’s National Motorcycle/Scooter Manufacturer,” African Journal of Business Management, 5 (20) (2011) 8163-8176.
[14] Heung, V. C. S., Wong, M. Y., & Qu, H., “A Study of Tourists’ Satisfaction and Post-Experience Behavioral Intentions in Relation to Airport Restaurant Services in the Hong Kong SAR,” Journal of Travel & Tourism Marketing, 12 (2-3) (2002) 111-135.
[15] Reinartz, W., Krafft, M., & Hoyer, W. D., “The Customer Relationship Management Process: Its Measurement and Impact on Performance,” Journal of Marketing Research, 41 (3) (2004) 293-305.
[16] Stevens, P., Knutson, B. and Patton, M., “Dineserv: A Tool for Measuring Service Quality in Restaurants. Cornell Hotel and Restaurant Administration Quarterly,” 36 (2) (1995) 56-60.
[17] Cronin, J. J., & Taylor, S. A., “SERVPERF versus SERVQUAL: Reconciling Performance-Based and Perceptions-Minus-Expectations Measurement of Service Quality,” Journal of Marketing, 58 (1) (1994) 125–131.
[18] Namkung, Y. & Jang, S., “Does Food Quality Really Matter in Restaurants? Its Impact on Customer Satisfaction and Behavioral Intentions,” Journal of Hospitality & Tourism Research, 31 (3) (2007) 387-409.
[19] Dick & Basu, “Customer Loyalty: Toward an Integrated Conceptual Framework,” Journal of The Academy of Marketing Science, 22 (2) (1994) 99-113.
[20] Ehrenberg & Goodhardt, “Repeat-Buying of New Brand,” Br J Mark, 5 (2) (1968) 200.
[21] Jacoby & Kyner, “Brand Loyalty vs. Repeat Purchasing Behavior,” Journal of Marketing Research, 10 (1) (1973) 1-9.
[22] Berry, L.L., Seiders, K., Grewal, D., “Understanding Service Convenience,” Journal of Marketing, 66 (3) (2002) 1-17.
[23] Mittal, V., Ross, W. T., & Baldasare, P. M., “The Asymmetric Impact of Negative and Positive Attribute-Level Performance on Overall Satisfaction and Repurchase Intentions,” Journal of Marketing, 62 (1) (1998) 33-47.
[24] Parasuraman, A., Zeithaml, V. A., Berry, L. L., “The Behavioral Consequences of Service Quality,” Journal of Marketing, 60 (2) (1996) 31-46.
[25] Hellier, P., Geursen, G., Carr, R., & Rickard, J., “Customer Repurchase Intention: A General Structural Equation Model,” European Journal of Marketing, 37 (11-12) (2003) 1762-1800.
[26] Philip, K. & Nancy, R. L., “Social Marketing: Influencing Behaviors for Good,” SAGE Publications, 2008.
[27] DeSouza, G., “Designing a Customer Retention Plan,” Journal of Business Strategy, 13 (2) (1992) 24-28.
[28] Fornell, “A National Customer Satisfaction Barometer: The Swedish Experience,” Journal of Marketing, 56 (1) (1992) 6-21.
[29] Bolton, R., Kannan, P. and Bramlett, M., “Implications of Loyalty Program Membership and Service Experiences for Customer Retention and Value,” Journal of, the Academy of Marketing Science, 28 (1) (2000) 95-108.
[30] Woodruff, R. B., & Gardial, S., “Know Your Customer: New Approaches to Customer Value and Satisfaction,” Cambridge, Massachusetts: Blackwell Publishers, Inc., 1996.
[31] Oliver, R. L. and John, E. S., “Consumer Perceptions of Interpersonal Equity and Satisfaction in Transactions: A Field Survey Approach,” Journal of Marketing, 53 (2) (1989a) 21-35.
[32] Hair, J. F., et al., Multivariate Data Analysis, Englewood Cliffs, NJ: Prentice-Hall, 1998.
[33] Hair, J., Black, W., Babin, B., and Anderson, R., Multivariate Data Analysis (7th ed.), Prentice-Hall, Inc. Upper Saddle River, NJ, USA, 2010.