ANTECEDENT AND CONSEQUENCES OF CUSTOMERELIGHT: A STUDY AT FINE DINING RESTAURANT IN INDONESIA

Budi Aryani1, Farida Djasfar2, Lucy Warsinda3, Robert Kristaung4

Faculty of Economics and Business, Trisakti University, Indonesia 1,2,3,4
[email protected]
1, [email protected]2, [email protected]3, [email protected]4,

 

KEYWORDS

Customer Delight, Experiential Value, Fine Dining, Word of Mouth

 

ARTICLE INFO

Accepted: January, 26th 2022

Revised: February 13th 2022

Approved: February, 14th 2022

ABSTRACT

This study is to analyze the role of customer delight in mediating the effect of experiential value on Word of Mouth (WOM) on customers of fine dining restaurants in Indonesia. Questionnaires were distributed using purposive sampling technique in order to obtain a sample of 250 respondents. The research data were analyzed statistically descriptive using the Partial Least Square (PLS) method. The results of the study found that experiential value variables supported by the dimensions of customer escapism, food and beverage excellence and customer efficiency showed a positive influence on customer delight and on WOM. The experiential value variable which is supported by the dimensions of food and beverage excellence has an effect on WOM if mediated by customer delight variable , experiential value variable which is supported by customer escapism dimension also affects WOM when mediated by customer delight variable. The originality of this research lies in the experiential value variable with dimensions of aesthetic experience, and service excellence turns out to have an effect on customer delight or on WOM, customer delight as a mediating variable has no effect on the dimensions of aesthetic experience, service excellence and customer efficiency on WOM. This research is limited only to fine dining restaurants. The managerial implication of this research is that experiential value can be increased through the beautiful appearance of food and beverage excellence accompanied by the appropriate temperature, the customer escapism strategy can be an attractive service alternative if it is equipped with a delightful touch.

INTRODUCTION

Restaurant is a culinary-based business that is an attraction for business people in Indonesia today. In the third quarter of 2019, the restaurant sector contributed 45% to Indonesia's Gross Domestic Product (GDP), followed by the manufacturing and agricultural industrial sectors. The Indonesian restaurant market is an attraction for domestic and foreign food ingredient producers, coupled with the emergence of a middle class population in the Indonesian consumption market, driving demand for food and beverages using new raw materials, as well as the desire to get a variety of different flavors.

The biggest advantage of the restaurant market comes from buying visits made by the community (Hsu et al., 2018). The reduced number of public visits is a problem faced by the restaurant market in the midst of environmental uncertainty, requiring restaurants to always adapt globally, be more flexible and aggressive in order to be able to compete in innovation so that they can get out of various worrying problems, especially concerns about the erosion of profits (Wheelen & Hunger, 2018). External problems faced by restaurants, one of which is the Large-Scale Social Restriction Policy set by the government, has worsened the condition of the restaurant sector in Indonesia.

During January-April 2020 there have been closures of 8,000 restaurants from around 14,000 restaurants throughout Indonesia, with a total loss of income estimated at 40 trillion rupiah (UNWTO April, 2020). In order to survive in the market, restaurants are required to be service providers to innovate that adapt to culinary trends, through cultural exchanges, meet people's interest in tasting food outside, restaurants are now also expected to be in the location of choice, become a location for social interaction and communication (Hsu et al., 2018).

Restaurant manufacturers will find success when they encourage voluntary action customers to disseminate WOM both traditionally and electronically, resulting in the speed of delivering information to other consumers about a product or service, information through browsing on the internet can reduce risk and further increase trust (Huete-Alcocer, 2017). WOM is currently spreading faster because of the ease of internet facilities used by more than four billion people in the world and 42% of the world's population, using electronic social media available on mobile phones and computers (Grafstr�m et al., 2018). Previous research found that experience in the sphere of quality relationships is influenced by five supporting dimensions used for experiential value variables, namely the dimensions of aesthetics, escapism, service excellence, food beverage excellence and customer return of investment (efficiency) which have cognitive value and contribute affectively to relationship quality. restaurant providers with customers, so it is recommended to be able to strengthen the intention to spread WOM (Mema et al., 2018).

Restaurants in addition to having a role in providing a variety of food and beverage and service excellence by their employees, need a role to provide positive expectations and provide valuable experiences, treatment for customer delight caused by experiential value experienced by customers can lead to an impetus for positive behavior, prioritizing customer experience and striving for customer delight is believed to be able to provide benefits to the company, (Roberts-Lombard & Petzer, 2018)

Experiential Value and WOM

Experience is considered a primary factor and is taken into account by customers when choosing a restaurant, so understanding the needs of consumers in luxury restaurants can help provide information on market position and steps for restaurant policy (Hsu et al., 2018). The atmosphere of the restaurant, which is equipped with a garden and the freshness of natural green plants, can evoke an aesthetic experience and can lead to a customer's desire to spread WOM due to the atmosphere that surrounds the restaurant, thus creating harmony (Apaolaza et al., 2020). Customer escapism is believed to be an extension of getting joy, in uniting all activities and a situation when customers are immersed in restaurant activities that generate active participation so that it affects the spread of WOM (Sharma & Rather, 2015).

Extraordinary experiences are one way that is proven to be able to contribute to the delivery of service excellence, in addition as a group experience and can benefit from the emergence of WOM (Collier et al., 2018). Food and beverage excellence service complete with the beauty of the restaurant atmosphere will be significantly felt by customers and can generate intentions to motivate the spread of WOM (Richardson, et al., 2019). When prioritizing a customer-oriented approach, efficiency is understood through the perspective that customers want to do and customers can facilitate so that WOM is achieved (Sapounakis, 2011). The suitability of the visual appearance in the restaurant environment can be used as an aesthetic experience that creates infinite pleasure in the form of customer delight for customers (Mema et al., 2018)

H1. There is a positive effect of Aesthetic experience on WOM.

H2. There is a positive influence of customer escapism on WOM.

H3. There is a positive effect of Service Excellence on WOM.

H4. There is a positive influence Food and beverage excellence on WOM.

H5. There is a positive influence of Customer Efficiency on WOM.

Experiential Value and Customer Delight

The harmony of the appearance in a unified environment is used as an aesthetic experience in creating infinite pleasure in the form of customer delight for customers (Mema et al., 2018). Allowing customers to escape for a moment from the routine of life that feels boring, then get an opportunity that encourages enjoyment as an intrinsic delight on the customer's side (Apaolaza et al., 2020)

According to Roberts-Lombard & Petzer (2018) the interest in service providers that can be accepted by customers is formed from extraordinary experiences, which support cultural treatment when service excellence occurs. Food and beverage excellence is a complement that customers always want to get restaurant luxury that is formed from service surprises so that customer delight arises amazingly (Hosany & Witham, 2010).

Expectations to get customer efficiency are greatly increased, customers often want to be known when interacting with employees so that when they are in a restaurant customers can play an active role in the process of getting customer delight which is easily measurable (Sapounakis, 2011).

H6. There is a positive effect of Aesthetic experience on Customer delight.

H7. There is a positive influence of customer escapism on customer delight.

H8. There is a positive effect of Service excellence on Customer delight.

H9. There is a positive influence of Food & beverage excellence on Customer delight.

H10. There is a positive influence of Customer efficiency on Customer delight

Customer Delight and WOM

A good relationship with customers will create increased customer delight, giving rise to positive trust which has an impact on the emergence of WOM (Zhang et al., 2014).

�H11. There is a positive effect of Customer delight on WOM.

Customer Delight as a mediating variable

Culture in modern society, requires the body to use sensory in order to feel the pleasure of taste, smell and sight artistically and visually to the aesthetic experience of the positive environment that is presented, forming special memories in the form of delight which naturally spreads as a story to other people to be present to feel the experience that is the same (Korsmeyer, 2015).

H12. There is a positive effect of Aesthetic experience on WOM mediated by Customer delight

Mema et al., (2018) stated that by combining the experience needed by customers, namely escapism as one of them with quality relationships that provide memories such as customer delight , it can maintain customer engagement significantly which can result in WOM.

H13. There is a positive influence of customer escapism on mediated WOM customer delight

The effect of service quality on individuals who have a number of groups Limited people tend not to want to spread WOM, but can be overcome by giving pleasant surprises by offering discounts to visitors, providing new benefits for individuals who bring additional guests or presenting interesting events so that they can spread stories (WOM) to other communities (Mema et al., 2018).

H14. There is a positive influence of Service excellence on WOM mediated by Customer delight

Richardson et al., (2019) stated that food and beverage excellence is a strong factor driving the pleasure obtained by customers, the next impact is causing a conversation that can become a recommendation for the restaurant as an interesting topic so as to spread WOM among customers.

H15. There is a positive influence of Food and Beverage excellence on WOM mediated by Customer delight

Restaurant employees play a role in providing solutions to efficiency problems By involving customers, a positive relationship occurs due to the influence of customer efficiency on customer delight which can help to measure the level of emotion, so WOM is used as a control for customer intentions (Bakti et al., 2020)

H16. There is a positive influence of customer efficiency on mediated WOM customer delight

The concept of customer delight is considered "beyond of satisfaction" according to suggestions from previous research, it is hoped that customer delight will be reviewed empirically so that it becomes a theory that contributes to the service sector, because it has great benefits for the company. Intention theory, which encourages the emergence of marketing contexts in the restaurant sector, recognizes that the literature on customer delight that has an impact on customer experience is still rare (Roberts-Lombard & Petzer, 2018).

�The puorose of this research is to discover whether aesthetics experience, customer escapism, service excellence, food and beverage excellence affect WOM or not.

METHOD� RESEARCH

Fine-dining restaurants in three cities in Indonesia, namely Jakarta, Bandung, Surabaya, were chosen as the object of this research, in order to answer the questions summarized as hypotheses in this study. The selection of the object of research is based on the statement of Pizam (2012) which reveals that fine dining restaurants are a range of upscale restaurants which has a complete service, complete with the concept of exclusive food and beverage offerings by aligning customer tastes and prioritizing a combination of high service standards, so that it is believed that fine dining restaurants can be the key to the success of the restaurant business.

The interval scale is used to help respondents to answer research questions, in the questionnaire there is a question section to represent individuals according to certain categories. In addition, the question is aimed at separating the answers in order by group, making a large measure of the differences obtained from individual preferences (Sekaran & Bougie, 2017). The Likert attitude measure scale for this study will certainly use a five-point scale, chosen to make it easier for respondents to answer statement items with positive answer choices, namely as follows; 5 = Strongly Agree (SS), 4 = Agree (S), 3 = Moderately Agree (CS), 2 = Agree (S), 1 = Strongly Disagree (STS). The questions on the questionnaire were adopted from previous research, and the population determination stage was carried out with clear targets according to the research design. The method of data collection was done by purposive sampling, which was based on certain considerations in accordance with the nature of the research that did not require generalization.

The period of data collection in this study was carried out by cross section directly obtained from the respondents, namely the customers of fine dining restaurants as the unit of research analysis. The research sample was designed using non-probability sampling and purposive sampling methods. Certain considerations were determined according to the nature of the research that did not require generalizations, besides that each element in the population of this study had the same opportunity to be selected as the sample studied among a large number of populations and not know exactly how many. The benchmark used to determine the sample refers to the statement by Hair Jr, et al, (2014). It is the number of research samples needed must be adjusted to the number of question/statement indicators used in the questionnaire, assuming nx 5 observed variables/indicators up to nx 10 observed variables/indicators, it means that the number of samples used is calculated using the formula 5 to 10 times the number of indicators. Has the number of statement items that are used as indicators (observed variables) as many as 25 items, it is necessary to have a sample of 25 x 10 = 250 respondents. Based on these benchmarks, 250 samples were distributed to respondents through online questionnaires. The questionnaire that was collected was only 205 eligible samples to be processed and it was ensured that these samples had met the requirements for use and had met the criteria suggested by Hair Jr, et al, (2014)

This quantitative study was analyzed statistically descriptively and the research model was measured using SmartPLS, which has analysis facilities for direct and indirect effects, Partial Least Square (PLS) method. The results of the detailed research instrument testing are shown in the table below:

Table 1. Average Variance Extracted

����������� �������������� �Source: Results of data processing with PLS

 

 

 

 

 

 

 

 

 

 

 

 

Table 2a. Cross Loading - Discriminant Validity

Table 2b. Cross Loading - Discriminant Validity

Source: Results of data processing with PLS

 

 

 

 

Table 3. Composite Reliability Results

Source: Results of data processing with PLS

The test on this research model with composite reliability, all meet the reliability among all latent variables based on the CR value, it can be said that this test meets the reliability requirements and has consistency because CR > 0.7.

Table 4 Reliability Test Results with Cronbach Alpha

Source: Results of data processing with PLS

The value of the reliability test results with Cronbach Alpha in the table above, it was found that all the answers to the indicators that support the construct indicate consistency, because all variables and dimensions show Cronbach Alpha values above 0.7. The reliability value on the test of all indicators of this study shows that the relationship of all indicators to the construct has a high level of reliability.

The indicators of latent variables that make up the construct of this research are all consistent and can be accounted for in meeting reliability. The path diagram for the output of the outer model looks like this:

Figure 1. Path Diagram Outer Model

Table 5. Coefficient of determination

The two variables, the values generated on the latent variables of this study have a high average value above 70%, so that this research model has high predictive accuracy and the results of the structural model test can be said that this research model is good and meets the requirements to be used for research.

RESULT AND DISCUSSION

In the hypothesis test the direct influence gives a decision on the results obtained, the decision is based on observing the values between constructs obtained from the bootstrapping process. The results of the path diagram of the inner model can be seen in the image below

 

Figure 2. Path Diagram Inner Model

Source: Results of data processing with PLS

Value for each direct effect resulting from the bootstrapping process have varying values, the decision of the hypothesis of this study depends on the magnitude of the coefficient value, the value of t-statistics and the result summarized in the table below.

Table 6. Direct effect hypothesis test results

Source: Results of data processing with PLS

Based on the conclusions in table 6 above, the first hypothesis with a negative path coefficient value was decided not to support. Likewise, hypothesis 3, hypothesis 6 and hypothesis 8 have a P- value greater than 0.05, so it is decided not to support it. Hypothesis 2, hypothesis 4, hypothesis 5, hypothesis 7, hypothesis 9, hypothesis 10 and hypothesis 11 resulting in a P-value smaller than and equal to 0.05 so it can be accepted. The elaboration of the values of the indirect effect test is summarized and arranged in a table. Thus, it can describe the influence between constructs and the significance that occurs between variables through the indirect effect test, described in table 7 below this.

Table7. Specific Indirect Effect

In Table 7 the analysis of the indirect effect, hypothesis 12 and hypothesis 14 and Hypothesis 16, the P-value results show a value above 0.05 so it cannot be declared insignificant and cannot be accepted. Hypothesis 13 and hypothesis showed significant and acceptable results. It was found that the direction of the strong positive indirect influence was the food and beverage excellence route � customer delight � WOM with a P-value of 0.001 and a coefficient of 0.167.

CONCLUSION

The results of the indirect effect analysis were found; first, the dimensions of food and beverage excellence on WOM mediated by the customer delight variable and the dimension of customer escapism on WOM through the variable customer delight show a positive and significant effect. Second, the dimensions of aesthetic experience on WOM, dimensions of service excellence on WOM and dimensions of customer efficiency on WOM mediated by customer delight, show that there is no influence. An insignificant effect was found on the service excellence dimension on the WOM variable when mediated by the customer delight variable. An interesting finding was found, namely the results on the customer escapism dimension path to WOM mediated by the customer delight variable shows a positive and significant relationship.

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Copyright holder:

Budi Aryani, Farida Djasfar, Robert Kristaung, Lucy Warsinda (2022)

First publication right:

Devotion - Journal of Community Service

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