Do Store Atmosphere and Perceived Value Matter in Satisfying and Predicting the Millennials’ Behavioral Intention in a Café Setting?

Authors

  • Martinus Fieser Sitinjak Bina Nusantara University
  • Christian Haposan Pangaribuan
  • Nabila Tafriza

DOI:

https://doi.org/10.21512/bbr.v10i1.5345

Keywords:

store atmosphere, perceived value, millennial generation, behavioral intention

Abstract

The purpose of this research was to determine the effects of store atmosphere and perceived value on customer satisfaction and its impact on behavioral intention on the millennial segment. This type of research was a quantitative method using associative research approach and Partial Least Squares Structural Equation Modeling (PLS-SEM) methods measured by Smart-PLS 3.0. The distribution of questionnaires was a non-probability with simple random sampling. The survey was conducted to 200 college students between the ages of 17 and 30 at a café in a shopping mall in Jakarta in 3 months (December 2017 until February 2018). The result shows that the store atmosphere can be used to generate perceived value, customer satisfaction, and behavioral intention. However, store atmosphere is confirmed to be the main behavioral intention predictor directly and indirectly.

Dimensions

Plum Analytics

References

Agriculture and Agri-Food Canada. (2016). Foodservice profile Indonesia. Retrieved from http://www.agr.gc.ca/resources/prod/Internet-Internet/MISBDGSIM/ATS-SEA/PDF/6769-eng.pdf

Akhamiokhor, S., & Adanikin, A. (2017). Entrepreneurial Strategies and Small and Medium Scale Enterprises (SMEs) development in Ogun State, Nigeria. International and Public Affairs Journal, 1(1), 34-38.

Ali, F., & Amin, M. (2014). The influence of physical environment on emotions, customer satisfaction and behavioural intentions in Chinese resort hotel industry. Journal for Global Business Advancement, 7(3), 249-266.

Ali, M. S. I., & Mubarak, K. M. (2016). Exterior atmospherics and there impact on consumer purchasing behavior at self- serving convenience stores. International Journal of Science and Research, 5(11), 263-268.

Ballantine, P. W., Jack, R., & Parsons, A. G. (2010). Atmospheric cues and their effect on the hedonic retail experience. International Journal of Retail & Distribution Management, 38(8), 641-653.

Banerjee, S., & Singhania, S. (2018). Determinants of customer satisfaction, revisit intentions and word of mouth in the restaurant industry – Study conducted in selective outlets of South Kolkata. International Journal of Business and Management Invention (IJBM), 7(6), 63-72.

Basaran, U., & Buyukyilmaz, O. (2015). The effects of utilitarian and hedonic values on young consumers satisfaction and behavioral intentions. Eurasian Journal of Business and Economics, 8(16), 1-18.

Belás, J., & Gabčová, L. (2016). The relationship among customer satisfaction, loyalty and financial performance of commercial banks. E a M: Ekonomie a Management, 19(1), 132-147.

Chen, C. F., & Tsai, D. (2007). How destination image and evaluative factors affect behavioral intentions? Tourism Management, 28(4), 1115-1122.

Chen, M., Zhang, H., Liu, W., & Zhang, W. (2014). The global pattern of urbanization and economic growth: Evidence from the last three decades. PloS One, 9(8), 1-15.

Cho, J. Y., & Lee, E. J. (2017). Impact of interior colors in retail store atmosphere on consumers’ perceived store luxury, emotions, and preference. Clothing and Textiles Research Journal, 35(1), 33-48.

Cibro, Y. E. B., & Hudrasyah, H. (2017). Factors that influence customer’s intentions to revisit café: Case study of Siete Café in Bandung. Journal of Business and Management, 6(2), 284-300.

Cohen, B., & Muñoz, P. (2015). Toward a theory of purposedriven

urban entrepreneurship. Organization & Environment, 28(3), 264-285.

Cottet, P., Plichon, V., & Lichtle, M. C. (2010). The influence of ambient factors in services: The compared effects of perceived colors and store layout. In The 11th International Research Seminar in Service Management.

DeVaney, S. A. (2015). Understanding the millennial generation. Journal of Financial Service Professionals, 69(6), 11-14.

Dibley, A., Clark, M., & Myers, A. (2016). Emerging trends in customer management in a changing world. Journal of Emerging Trends in Marketing Management, 1(2016), 130-140.

Ellen, C., Anantadjaya, S. P., & Saroso, T. (2014). Determinants of entrepreneurial success on Indonesian food service MSMEs. RIBER: Review of Integrative Business & Economics Research, 3(1), 81-98.

El-Sherie, T. A. E. F., & Ghanem, M. S. (2016). Free wi-wi service as a competitive advantage in public cafés. International Journal of Heritage, Tourism, and Hospitality, 8(1), 233-248.

Ertz, M., Karakas, F., & Sarigöllü, E. (2016). Exploring proenvironmental

behaviors of consumers: An analysis of contextual factors, attitude, and behaviors. Journal of Business Research, 69(10), 3971-3980.

Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention, and behavior: An introduction to theory and research. Reading, MA: Addison-Wesley.

Ghozali, I., & Latan, H. (2015). Partial Least Squares, konsep, teknik dan aplikasi menggunakan program Smartpls 3.0 untuk penelitian empiris. Semarang: Badan Penerbit UNDIP.

Githiri, M. N. (2017). Influence of physical environment on customer satisfaction and return intention in Kenyan rated restaurants. Asian Journal of Social Science Studies, 2(1), 11-19.

Gogoi, B. J. (2017). Effect of store design on perceived crowding and impulse buying behavior. International Review of Management and Marketing, 7(2), 180-186.

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Thousand Oaks: Sage.

Heung, V. C., & Gu, T. (2012). Influence of restaurant atmospherics on patron satisfaction and behavioral intentions. International Journal of Hospitality Management, 31(4), 1167-1177.

Hussain, R., & Ali, M. (2015). Effect of store atmosphere on consumer purchase intention. International Journal of Marketing Studies, 7(2), 35-43.

Indonesia Investments. (2016). General economic outline of Indonesia. Retrieved from https://www.indonesiainvestments.

com/culture/economy/generaleconomic-outline/item251?

Ismail, A., Rose, I. R., Tudin, R., & Dawi, N. M. (2017). Relationship between service quality and behavioral intentions: The mediating effect of customer satisfaction. Etikonomi, 16(2), 125-144.

Ivkov, M., Blešić, I., Simat, K., Demirović, D., & Božić, S. (2016). Innovations in the restaurant industry–An exploratory study. Economics of Agriculture, 63(4), 1169-1186.

Jalil, N. A. A., Fikry, A., & Zainuddin, A. (2016a). E-atmospheric effects on youth intention to revisit a cafe. Procedia Economics and Finance, 37, 497-503.

Jalil, N. A. A., Fikry, A., & Zainuddin, A. (2016b). The impact of store atmospherics, perceived value, and customer satisfaction on behavioural intention. Procedia Economics and Finance, 37, 538-544.

Javanmard, H. (2016). Relationship between store image, customer satisfaction, behavioral intention and fast distribution in retails. Journal of Distribution Science, 14(1), 7-15.

Joung, H. W., Choi, E. K., & Wang, E. (2016). Effects of perceived quality and perceived value of campus foodservice on customer satisfaction: Moderating role of gender. Journal of Quality Assurance in Hospitality & Tourism, 17(2), 101-113.

Kim, W., & Han, H. (2008). Determinants of restaurant customers’ loyalty intentions: A mediating effect of relationship quality. Journal of Quality Assurance in Hospitality & Tourism, 9(3), 219-239.

Koshki, N., Esmaeilpour, H., & Ardestani, A. S. (2014). The study on the effects of environmental quality, food and restaurant services on mental image of the restaurant, customer perceived value, customer satisfaction and customer behavioral intentions: Case study of Boroujerd’s Restaurants. Kuwait Chapter of Arabian Journal of Business and Management Review, 33(10), 1-12.

Kotler, P., & Armstrong, G. (2014). Principles of marketing. Upper Saddle River, N.J.: Pearson.

Liu, Y., & Jang, S. S. (2009). The effects of dining atmospherics: An extended Mehrabian–Russell model. International Journal of Hospitality Management, 28(4), 494-503.

Magatef, S. G., & Tomalieh, E. F. (2015). The impact of customer loyalty programs on customer retention. International Journal of Business and Social Science, 6(8), 78-93.

Manan, F. M. (2015). The influence of retail store characteristics on consumer purchase intention (Case study in Multi Mart Mega Mall Manado). Jurnal Berkala Ilmiah Efisiensi, 15(05), 386-396.

Masri, N., Anuar, F. I., & Yulia, A. (2017). Influence of Wi-Fi service quality towards tourists’ satisfaction and dissemination of tourism experience. Journal of Tourism, Hospitality & Culinary Arts, 9(2), 383-398.

McCarthy, P. (2003). Urban slums reports: The case of Jakarta, Indonesia. Retrieved from https://www.ucl.ac.uk/dpu-projects/Global_Report/pdfs/Jakarta.pdf

McGrath, M. C., Aronow, P. M., & Shotwell, V. (2016). Chocolate scents and product sales: A randomized controlled trial in a Canadian bookstore and café. SpringerPlus, 5(1), 1-6.

Moreno, F. M., Lafuente, J. G., Carreon, F. A., & Moreno, S. M. (2017). The characterization of the millennials and their buying behavior. International Journal of Marketing Studies, 9(5), 135-144.

Ong, V. (2018). Indonesia foodservice market plating up fresh potential. Retrieved from https://www.nzte.govt.nz/about/news/blogs/indonesia-fresh-potentialfoodservice

Pei, K. J., & Ayub, A. B. (2015). Measuring customer satisfaction towards cafeteria services in primary health care setting: A cross-section study among patients and health care providers in Bintulu, Sarawak. Open Access Library Journal, 2(04), 1-11.

Petzer, D., & Mackay, N. (2014). Dining atmospherics and food and service quality as predictors of customer satisfaction at sit-down restaurants. African Journal of Hospitality, Tourism and Leisure, 3(2), 1-14.

Puri, G. & Kumar, M. (2015). Importance of service quality in restaurant operations: A review. International Journal of Business and Administration Research Review, 2(11), 313-318.

Raji, M. N. A., & Zainal, A. (2016). The effect of customer perceived value on customer satisfaction: A case study of Malay upscale restaurants. Geografia- Malaysian Journal of Society and Space, 12(3), 58-68.

Rozekhi, N. A., Hussin, S., Siddiqe, A. S. K. A. R., Rashid, P. D. A., & Salmi, N. S. (2016). The influence of food quality on customer satisfaction in fine dining restaurant: Case in Penang. International Academic Research Journal of Business and Technology, 2(2), 45-50.

Ryu, K., & Jang, S. (2008). DINESCAPE: A scale for customers’ perception of dining environments. Journal of Foodservice Business Research, 11(1), 2-22.

Ryu, K., Han, H., & Kim, T. H. (2008). The relationships among overall quick-casual restaurant image, perceived value, customer satisfaction, and behavioral intentions. International Journal of Hospitality Management, 27(3), 459-469.

Sabir, R. I., Irfan, M., Akhtar, N., Pervez, M. A., & Rehman, A. U. (2014). Customer satisfaction in the restaurant industry; Examining the model in local industry perspective. Journal of Asian Business Strategy, 4(1), 18-31.

Saulo, A. A. (2016). Millennials and food. Food Safety and Technology, 63, 1-3.

Shin, C. S., Hwang, G. S., Lee, H. W., & Cho, S. R. (2015). The impact of Korean franchise coffee shop service quality and atmosphere on customer satisfaction and loyalty. The East Asian Journal of Business Management (EAJBM), 5(4), 45-57.

Skandrani, H., Ben Dahmane Mouelhi, N., & Malek, F. (2011). Effect of store atmospherics on employees’ reactions. International Journal of Retail & Distribution Management, 39(1), 51-67.

Solomon, M., Bamossy, G., Askegaard, S., & Hogg, M. (2014). Consumer behaviour: A European perspective. Harlow: Pearson Higher Education.

Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing, 77(2), 203-220.

Triantafillidou, A., & Siomkos, G. (2014). Consumption experience outcomes: Satisfaction, nostalgia intensity, word-of-mouth communication and behavioural intentions. Journal of Consumer Marketing, 31(6/7), 526-540.

Truong, Y., & McColl, R. (2011). Intrinsic motivations, self-esteem, and luxury goods consumption. Journal of Retailing and Consumer Services, 18(6), 555-561.

Tulipa, D., Gunawan, S., & Supit, V. H. (2014). The influence of store atmosphere on emotional responses and re-purchase intentions. Business Management and Strategy, 5(2), 151-164.

Wade, R., Holmes, M. R., & Gibbs, C. (2017). The challenges of full-service restaurant brand internationalization: A United States/Canada perspective. Journal of Foodservice Business Research, 21(2), 139-153.

Wahyuningsih, W. (2011). Customer value, satisfaction and behavioral intentions: The effects of consumer search behavior. ASEAN Marketing Journal, 3(1), 1-20.

Downloads

Published

2019-03-31
Abstract 3911  .
PDF downloaded 2259  .