RELATIONSHIPS BETWEEN SERVICE PERSONAL VALUES, SERVICE ATTRIBUTES AND CUSTOMER SATISFACTION A STUDY OF RESTAURANT SERVICES IN VIETNAM

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business




Nguyen Thi Tuyet Hong

RELATIONSHIPS BETWEEN SERVICE
PERSONAL VALUES, SERVICE ATTRIBUTES
AND CUSTOMER SATISFACTION: A STUDY OF
RESTAURANT SERVICES IN VIETNAM


MASTER OF BUSINESS (BY HONOUR)







Ho Chi Minh City – Year 2012

RELATIONSHIPS BETWEEN SERVICE PERSONAL VALUES,
SERVICE ATTRIBUTES AND CUSTOMER SATISFACTION: A
STUDY OF RESTAURANT SERVICES IN VIETNAM

BY
NGUYEN THI TUYET HONG

SUPERVISOR
Dr. PHAM NGOC THUY










UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business

Nguyen Thi Tuyet Hong



RELATIONSHIPS BETWEEN SERVICE
PERSONAL VALUES, SERVICE ATTRIBUTES
AND CUSTOMER SATISFACTION: A STUDY
OF RESTAURANT SERVICES IN VIETNAM


ID: 60340102


MASTER OF BUSINESS (by Honour)


SUPERVISOR: DR. PHAM NGOC THUY

Ho Chi Minh City - 2012

ii

ACKNOWLEDGEMENTS

I would like to express my deeply sincere gratitude to my Supervisor, Dr. Pham
Ngoc Thuy, for her valuable guidance and advice on effective method. Her
professional research understanding helps me and my teammates recognize the
research method thoroughly and we had experienced actual process and result
recognition. Furthermore, I would like to express my gratitude to Dr. Pham
Dinh Tho for his devotion and patience in supporting and following our
Mbus2010 class regarding the study on benefits and useful management
implication for our career by understanding and applying the business research
method.
Besides, I would like to thank to my colleagues in Campenon Saigon Builders
who had supported me a lot during my thesis implementation. Another source
of motivation I would like to thank is my classmates ISB Mbus2010 for a
mutual support by sharing knowledge, guidance, spending valuable time and
giving a truly friendship during our thesis implementation.
And an honorable mention goes to my family, my friends and their colleagues
for their understanding and helping me during my data collection as well as my
thesis completion.
Finally, I would like to send my best regards to all of those who kindly
supported me during the data collection phase and the completion of this thesis.

Ho Chi Minh City, Vietnam
January 2
nd

, 2013


Nguyen Thi Tuyet Hong


iii

ABSTRACT

The purpose of this research is to empirically investigate the relationships of
service personal values, service attributes and customer satisfaction in using a
service. The empirical setting is implemented in the buffet restaurant services in
an emerging economy of Vietnam particularly in Ho Chi Minh City, the biggest
and the hub of variety of buffets. The findings of this study reveal that
Vietnamese customers who place the Social Value, the Personal Value, the
Price and Quality of Food are the factors impact on Customer Satisfaction
towards using buffets.
Customers consider Social Value factor affecting their satisfaction towards
using buffets by having a favorable attitude toward the social recognition, the
social status and the more stimulating and adventurous life. Additionally,
customers perceive that buffet make them feel the Social Value, a higher
integration in the group, a better relationship and their friendship relationships
strengthening. This result indicated that customers considered buffet where they
could be more connected, informed and active with the social recognition and
integration. Moreover, the Personal Value factor with positive impact to
customer satisfaction tells that customers feel more tranquility, more family
security, more harmony and stability in life as well as a more pleasurable life
when using buffets. With regards to most of service and goods purchase, the
Price is always an important factor affecting customer satisfaction when they

compare the value of money paid and the value received from that transaction.
A service served well with reasonable price was always attractive to customers.
Out of the factors of service attribute than Price of service, this study also found
that customers chose buffets also concerned about the Quality of food rather
than other service attributes. The significant, direct relationships between the
Quality of Food and Customer Satisfaction reveal that customers in Vietnam
market presently place more concern on the quality of product or service value
iv

they receive. This result also contributes to the literature review of studies in
foodservice that quality of food is always an important factor to improve the
customer satisfaction towards a foodservice.

Key words: service personal values, service attributes, customer satisfaction

v

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION
1
1.1. RESEARCH BACKGROUND 1
1.2. PROBLEM DEFINITION 2
1.3. RESEARCH QUESTIONS AND OBJECTIVES 3
1.4. SIGNIFICANCE OF THE RESEARCH 4
1.5. RESEARCH SCOPE 4
1.6. RESEARCH METHODOLOGY AND RESEARCH DESIGN 4
1.7. LIMITATION 5
1.8. THESIS STRUCTURE 5
CHAPTER 2: LITERATURE REVIEW AND CONCEPTUAL MODEL 6
2.1. DEFINITION RELATED TO RESTAURANT SERVICES 7

2.1.1 Casual dining 7
2.1.2 Fine dining 8
2.1.3 Fast food 8
2.1.4 Buffets 8
2.1.5 The difference between table service and buffet service 9
2.2. SERVICE ATTRIBUTES 9
2.2.1 Price of service 10
2.2.2 Quality/taste of food 11
2.2.3 Variety of food 11
2.2.4 Servicescapes 11
2.3. SERVICE PERSONAL VALUES 13
2.4. CUSTOMER SATISFACTION 14
2.5. CONCEPTUAL MODEL 16
2.6. HYPOTHESES 16
2.6.1 The relationship between service attributes and customer
satisfaction 16
2.6.2 The relationship between service personal values and customer
satisfaction 17

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CHAPTER 3: RESEARCH METHODOLOGY 18
3.1. RESEARCH PROCESS 19
3.2. QUALITATIVE STUDY 21
3.3. QUANTITATIVE STUDY 22
3.3.1 Construction of measurement scales 22
3.3.1.1 Measurement scale of Perceived Price 22
3.3.1.2 Measurement scale of Quality/ Taste of food 23
3.3.1.3 Measurement scale of Variety of food 24
3.3.1.4 Measurement scale of Servicescapes 25

3.3.1.5 Measurement scale of Service Personal Value to Peaceful Life 27
3.3.1.6 Measurement scale of Service Personal Value to Social
Recognition 27
3.3.1.7 Measurement scale of Service Personal Value to Social Integration 28
3.3.1.8 Measurement scale of Customer Satisfaction 28
3.3.2 Questionnaire design 28
3.3.3 Sampling method and sample size 29
3.3.4 Data collection 30
3.3.5 Data analysis method 30
3.3.5.1 Reliability Analysis by Cronbach’s Alpha 30
3.3.5.2 Exploratory Factor Analysis 30
3.3.5.3 Multiple Regression Analysis 31
CHAPTER 4: RESULTS OF DATA ANALYSIS AND DISCUSSION
32
4.1. SAMPLE DESCRIPTION 32
4.1.1 Name of buffet restaurant respondents used to experienced 32
4.1.2 Cost of buffet respondents used to have 33
4.1.3 The accompanied people that respondents used to have buffets with34
4.1.4 The profession, gender and age of respondents 34
4.2. RELIABILITY ANALYSIS OF MEASUREMENT SCALES 35
4.2.1 Reliability analysis result of measurement scale of Perceived Price35
4.2.2 Reliability analysis result of measurement scale of Quality of Food36

vii

4.2.3 Reliability analysis result of measurement scale of Variety of Food37
4.2.4 Reliability analysis result of measurement scale of Servicescape to
Venue Aesthetics 37
4.2.5 Reliability analysis result of measurement scale of Servicescape to
Accessibility 38

4.2.6 Reliability analysis result of measurement scale of Servicescape to
Restaurant Cleanliness 39
4.2.7 Reliability analysis result of measurement scale of Service Personal
Value to Peaceful Life 39
4.2.8 Reliability analysis result of measurement scale of Service Personal
Value to Social Recognition 40
4.2.9 Reliability analysis result of measurement scale of Service Personal
Value to Social Integration 41
4.2.10 Reliability analysis result of measurement scale of Customer
Satisfaction 41
4.3. EXPLORATORY FACTOR ANALYSIS 42
4.3.1 EFA for group of predictors 42
4.3.2 EFA for group of items of Customer Satisfaction measurement
scale 44
4.4. MULTIPLE REGRESSION ANALYSIS 44
4.4.1 Revised Conceptual Model 46
4.4.2 Multiple Regression Testing Assumptions 47
4.4.1.1 Multicollinearity 47
4.4.1.2 Normality and Linearity 48
4.4.3 Multiple Regression Analysis 48
4.4.4 Testing the Hypothesis 1: relationship between the Price and
Customer Satisfaction 50
4.4.5 Testing the Hypothesis 2: relationship between the Quality of Food
and Customer Satisfaction 50
4.4.6 Testing the Hypothesis 3: relationship between the Variety of Food
and Customer Satisfaction 50

viii

4.4.7 Testing the Hypothesis 4: relationship between the Servicescape to

Accessibility and Cleanliness and Customer Satisfaction 51
4.4.8 Testing the Hypothesis 5: relationship between the Servicescape to
Venue Aesthetics and Customer Satisfaction 51
4.4.9 Testing the Hypothesis 6: relationship between the Personal Value
and Customer Satisfaction 52
4.4.10 Testing the Hypothesis 7: relationship between the Social Value
and Customer Satisfaction 52
4.5. DISCUSSION 53
CHAPTER 5: CONCLUSION AND MANAGERIAL IMPLICATION
56
5.1. CONCLUSION 56
5.2. MANAGERIAL IMPLICATION 57
5.3. LIMITATION 59
REFERENCES

60

APPENDICES

APPENDIX 1 – SURVEY FORM

APPENDIX 2 - RESULTS OF CRONBACH’S ANPHA


APPENDIX 3 - RESULTS OF EFA


APPENDIX 4 - RESULTS OF MULTIPLE REGRESSION

ix




LIST OF TABLES

Table 1: Measurement scale of Perceived Price 23
Table 2: Measurement scale of Quality of Food 24
Table 3: Measurement scale of Variety of Food 24
Table 4: Measurement scale of Servicescapes 26
Table 5: Measurement scale of Service Value to Peaceful Life (SVPL) 27
Table 6: Measurement scale of Service Value to Social Recognition (SVSR) 27
Table 7: Measurement scale of Service Value to Social Integration (SVSI) 28
Table 8: Measurement scale of Customer Satisfaction 28
Table 9: Cronbach’s Anpha of scale of Perceived Price 36
Table 10: Cronbach’s Anpha of scale of Quality of Food 37
Table 11: Cronbach’s Anpha of scale of Food Variety 37
Table 12: Cronbach’s Anpha of scale of Servicescape to Venue Aesthetics 38
Table 13: Cronbach’s Anpha of scale of Servicescape to Accessibility 39
Table 14: Cronbach’s Anpha of scale of Servicescape to Cleanliness 39
Table 15: Cronbach’s Anpha of scale of Service Value to Peaceful Life 40
Table 16: Cronbach’s Anpha of scale of Service Value to Social Recognition 41
Table 17: Cronbach’s Anpha of scale of Service Value to Social Integration 41
Table 18: Cronbach’s Anpha of scale of Customer Satisfaction 42
Table 19: EFA result of predictors 43
Table 20: EFA result of Customer Satisfaction 45
Table 21: Pearson Correlation Result 49
Table 22: Results of Multiple Regression Analysis 50

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LIST OF FIGURES
Figure 1: Conceptual Model 16
Figure 2: Research Process 20
Figure 3: Name of restaurants with high use frequency 33
Figure 4: Price range of buffets with high use frequency 33
Figure 5: Percentage of accompanying partners 34
Figure 6: Gender and Age of respondents 35
Figure 7: Profession of respondents 35
Figure 8: Revised conceptual model 48
Figure 9: Regression results for customer satisfaction 54


1

CHAPTER 1: INTRODUCTION

1.1. RESEARCH BACKGROUND
In Vietnam, the service sector accounts for approximately 37.7% GDP in 2011
in which the hotel and restaurant sectors gain approximately 11.4%*. The
growth of service sector recently is proving a fact that the more the economy
developed, the more people enjoy their social lifestyle in the demand from
delicious eating, good-looking apparel to high-class entertainment. Ho Chi
Minh City is one of the most dynamic cities in Asia with variety of services
fulfilling people’s living demand. The increase number of restaurant services
recently is leading the more competitive business environment. The restaurant
services in Ho Chi Minh City recently have been grown up both the quantity of

service offering and the formation of services. The main function of a restaurant
is to provide food and beverages with a high quality of food, professional
services and an attractive space for enjoying their meals. Any restaurant will be
relatively high or low in style and price, familiar or exotic in the cuisine it offers
to different kinds of customers, and so on. Context is as important as the style
and form. The most popular classification is menu styles with a variety of kinds
such as French style, Italian style, Chinese style, Western style, Asian style, etc.
Restaurants can be classified based on type of serve including table service, Ala
carte, fast-food, self service, buffet. They can be recognized by classes ranging
from luxury, superior, standard, to popular. Restaurants and bars are classified
as services directed at people’s bodies with its nature of tangible actions.
One of the fastest growth foodservices is adapting the demand of consumers
nowadays is the buffet restaurant which is developing in quantity and variation
kinds of services in Ho Chi Minh City especially in centre districts. Not only
the classified hotels and restaurants but also the private sector of restaurant
business is offering a variety of buffet services.




*report No. 51/BC-BCT
Chapter 1: Introduction

2


The density of buffet services increases from weekend occasion only to
weekday service in order to satisfy the customers demand.
Due to the development of many kinds of buffet restaurants and the increasing
density of new restaurants, the market of foodservice is in a high competitive

market conditions.
Customers nowadays are concentrating on the quality of life and level of social
classification. These perceived values are also affecting food services. The
customer satisfaction is not only the quality of food they pay for but also the
service attributes that they perceived the benefits. Furthermore, customers also
pay attention on the social image that the services they are using which may
present their social classes and the satisfaction of self-enjoyment. The customer
is demanding higher quality of services and considering many others attributes
before deciding to choose a service or to re-purchase a service. In keeping with
the line of customer demands, the foodservice managers need to that the
foodservice managers needs to understand well customer’s demand in order to
attract customers, retain customers. In a market that most of foodservices are
offering the same services, the managers must pay more attention to what the
updated trends and important factors are affecting the customers in order to
adapt and have strategies to provide the services accordingly to customers’
satisfaction and taking more advantages in comparison with the competitors.

1.2. PROBLEM DEFINITION
Customer is more being offered a variety of choices which trend is leading to a
more competitive market and as Amy et.al. (1999) stated:
In order to achieve competitive advantage and efficiency, businesses have to
seek profitable ways to differentiate themselves.
The only way to survive and maintaining customer revisit is to understand what
customers need and their expectation. Customer satisfaction is considered a
prerequisite for customer retention and loyalty, and obviously helps in realizing
economic goals like profitability (Sureshchandar et al., 2002).
Chapter 1: Introduction

3

The restaurateurs need to understand the relationship between restaurant
performance and the customer’s needs or satisfaction. The restaurant
performance could be interpreted by the service quality delivering to customers.
Service quality includes a wide range of factors and the understanding of key
factors impacting the customer satisfaction is important. This understanding
will enhance the restaurateurs adopting to get advantages in a race. In keeping
updated with customer’s trend in demand, not only the service quality but also
the service attributes and service personal values are considered highly impacts.
In recent empirical findings, the service attributes especially the concept of
“servicescape” is leading to a new definition for business managers to
investigate. Additionally, the definition of service personal values are identified
the impacts on customer satisfaction by many authors in different industries but
it is few in restaurant services.

1.3. RESEARCH QUESTIONS AND OBJECTIVES
The purpose of this research is to empirically investigate the relationships of
service personal values, service attributes and customer satisfaction in using a
service. The empirical setting is implemented in the buffet restaurant services in
an emerging economy of Vietnam particularly in Ho Chi Minh City, the biggest
and the hub of variety of buffet services.
This research is aiming to answer the following questions:
1. What are the determinants of service attributes affecting customer
satisfaction towards the buffet?
2. Do the Service Personal Values affecting customer satisfaction towards
the buffet?
3. In order to retain the customer, what are the determinants the
restaurateurs should pay more attention to improve their business?

Chapter 1: Introduction

4

1.4. SIGNIFICANCE OF THE RESEARCH
It is important for management to understand what service attributes consists of
and its impact on the customer satisfaction towards a restaurant service.
Today’s competitive marketplace, the customers have a plenty of choices
towards a foodservice. Therefore, in order to survive and make profits, the
restaurateurs need to practice a strong customer-driven orientation and satisfy
customer’s needs or satisfaction. Customer satisfaction has been proved that it
determines the longevity and financial success of a restaurant (cited by
Harington et al., 2010; Crotts and Pan, 2007). Knowledge of the importance of
the attributes would enable foodservice managers to manipulate those attributes
to enhance the consumer’s perception of quality and identify the strategies for
continuous improvement. The more restaurateurs understand the customer trend
of demand, the more successful and competitive advantages they gain.

1.5. RESEARCH SCOPE
This research is conducted in Ho Chi Minh City with convenience sampling.
The interviewees are from 18 to 55 years old those have been experienced the
buffets in Ho Chi Minh City.

1.6. RESEARCH METHODOLOGY AND RESEARCH DESIGN
This research is applied the quantitative method which were reviewed the
theoretical background adaptable to the context. The actual market demand to
understand the determinants affecting customer satisfaction are critical. The
conceptual model was constructed in combination of theory and actual
characteristics of customers using buffets in Ho Chi Minh City. The data
collected will be validated by Cronbach Anpha Reliability Analysis and
selected by Exploratory Factor Analysis. Finally, the model will be tested by
using Multiple Regression Analysis by SPSS version 20.0.

Chapter 1: Introduction

5

1.7. DELIMITATION
This research is focusing the survey interviewed respondents who have been
experienced the buffet in Ho Chi Minh City only. Data was collected via a
convenience sample in Ho Chi Minh City during one month. This study was
conducted with the high rate of answers from young, white-collar employees.
Therefore, this sample characteristic may not be the representative of the
opinions displayed by all customers towards the buffets in Vietnam market.
The respondents in this study are likely to use the buffet at range of medium
price. It may lead to a common value perceived by typical groups. The further
investigation should be conducted to evaluate if there is big difference between
opinions of customers using medium priced buffet and high-class buffet. With
customers using high-class buffet, it may be predicted to have a different result
on the evaluation of the Servicescapes factors towards customer satisfaction.

1.8. THESIS STRUCTURE
Chapter 1:
Introduction: This chapter includes a brief overview of the research
background, problems and objectives, methodology as well as the limitation.
Chapter 2:
Literature review and conceptual model: This chapter comprises of
definition related to restaurant services, deep review of previous researches on
the service attributes, servicescapes, service personal values and the basis of
building the conceptual model.
Chapter 3:
Research methodology: This chapter presents the research process,

measurement scale, preliminary assessment of measures and data collection
procedures as well as the data analyses process.
Chapter 4:
Chapter 1: Introduction

6

Data analysis result and Discussion: This chapter consists of the official
assessment of measures, hypotheses testing, data analysis results and
interpretation.
Chapter 5:
Conclusion and Implication: This chapter will conclude the findings and
providing the theoretical and managerial implications and proposing specific
recommendations for buffet restaurant managerial level in Ho Chi Minh City.

7

CHAPTER 2: LITERATURE REVIEW AND
CONCEPTUAL MODEL

2.1. DEFINITION RELATED TO RESTAURANT SERVICES
As defined, the services are processes (economic activities) that provide time,
place, form, problem solving or experiential value to the receiver. Through this
concept, the customers are buying an experience or performance and the
services are all about value creation which comes from a variety of value-
creating elements rather than transfer of ownership (Understanding the nature of
service products and markets, p.6, 7). Restaurant is a kind of consumer services.
Restaurants are classified based on some criteria such as menu style,
preparation methods and pricing.
Auty (1992) identified the choice factors in decision to have meals at restaurant

based on four occasions including a celebration, social occasion, convenience/
quick meal and business meal. Food type, food quality and value for money
were found as the most important choice variables when customers chose a
restaurant.
Additionally, how the food is served to the customer helps to determine the
classification. The main forms of restaurant services including:
2.1.1 Casual dining
A casual dining restaurant is a restaurant that serves moderately-priced food in a
casual atmosphere. Except for buffet-style restaurants, casual dining restaurants
typically provide table service. Casual dining comprises a market segment
between fast food establishments and fine dining restaurants. This is kind of
table service served to the customer's table by waiters and waitresses, also
known as "servers". Table service is the norm in most restaurants, while for
some fast food restaurants counter service is the common form. With table
service, the customer generally pays at the end of meal.
Chapter 2: Literature Review and Conceptual Model

8

2.1.2 Fine dining
Fine dining restaurant is full service restaurants with specific dedicated meal
courses. Décor of such restaurants feature higher-quality materials, with an eye
towards the "atmosphere" desired by the restaurateurs. The wait staff is usually
highly trained and often wears more formal attire. Fine-dining restaurants are
almost always small businesses and are generally either single-location
operations or have just a few locations. Food portions are visually appealing.
Fine dining restaurants have certain rules of dining which visitors are generally
expected to follow often including a dress code.
2.1.3 Fast food
Fast food restaurants emphasize the speed of service and also known as a QSR

or Quick Serve Restaurant.
2.1.4 Buffets
Buffets offer a selection of food at a fixed price. Food is served on trays around
bars, from which customers with plates serve themselves. The selection can be
modest or very extensive, with the more elaborate menus divided into
categories such as salad, soup, appetizers, hot entrées, cold entrées, and dessert
and fruit. The role of the waiter or waitress in this case is relegated to removal
of finished plates, and sometimes the ordering and refill of drinks.
In Vietnam, a buffet is a system of serving meals in which food is placed in a
public area where the diners generally serve themselves. Buffets are offered at
various places including hotels and many social events. One form of buffet is to
have a table filled with plates containing fixed portions of food; customers
select plates containing whichever food items they want as they walk along. As
a compromise between self-service and full table service, a staffed buffet may
be offered: diners bring their own plate along the buffet line and are given a
portion from a server at each station. The buffet services in Ho Chi Minh are
varying from the menu styles to the pricing. The food menu are including the
Western style, Chinese style, Vietnamese style, Italian style, Japanese style,
Chapter 2: Literature Review and Conceptual Model

9

mixed style, seafood specialty, pancakes specialty, etc. The buffet pricing
ranges from economy, middle, luxury.
2.1.5 The difference between table service and buffet service
The buffet service is different from the table service basically by the form of
service and the nature of enjoyment purpose. Customers choose to have buffet
service by considering the cost, the occasion and atmosphere they desire. The
occasion with formal settings is appropriate for meals in which customers are
trying to impress a guest with, this could be chosen a service at table. For large

gatherings such as family, friends, colleagues, a buffet service is a preferred
choice as it is offering a variety of choices and providing a social atmosphere
and free style.
2.2. SERVICE ATTRIBUTES
In the means-end chain approach, there are four levels to access services
(Zeithaml, 1988) including service attributes, service quality, service values and
service personal values. Customers perceive service quality by comparing the
service delivery they receive and their expectation. The service attributes plays
a critical factor contributing to the success of service delivery. Therefore,
whether the service quality is good or not depending on how the service
attributes constructed and delivered. In service delivery, changes can be made
to the service delivery process, the environment in which service delivery takes
place and the interactions between the customer and the provider of the service.
Theoretically, service quality is measured by Servqual scale which was mainly
established and well-known method of measurement model of quality of service
by Parasuraman et al. (1985; 1988). Parasuraman, Zeithaml and Berry (1985)
found consistent dimensions of perceived quality across four consumer
industries. These abstract dimensions included Reliability, Empathy, Assurance,
Responsiveness, and Tangibles. The Reliability is defined as the "ability to
perform the promised service dependably and accurately". The Assurance
means the "knowledge and courtesy of employees and their ability to convey
trust and confidence". The Tangibles contains the "appearance of physical
Chapter 2: Literature Review and Conceptual Model

10

facilities, equipment, personnel and communication materials". The Empathy is
the "provision of caring, individualized attention to customers". And the
Responsiveness expresses the "willingness to help customers and to provide
prompt service" (Buttle, 1996, p.9). Parasuraman, Zeithaml and Berry (1985)

illustrated 22 service quality attributes which Bonner and Nelson (1985) found
higher level abstract dimensions of perceived quality including rich/full flavor,
natural taste, fresh taste, good aroma, and appetizing looks. Then Brucks and
Zeithaml (1987) raised exploratory work of six abstract dimensions including
ease of use, functionality, performance, durability, serviceability and prestige.
Service quality model by Sureshchander et al. (2001) implied the items deal
with human interaction / intervention in the service delivery and tangible facets
of services namely the service conduct, systematization/standardization of
service delivery and social responsibility of the service organization.
Koo et al. (1999) found nine attributes for conjoint analysis in restaurant were
the location, type of food, variety of food, uniqueness, car park, price, quality /
taste of food, decoration and service. Sweeney et al. (1992) selected price of
meal, past experience with similar types of restaurants, reputation of restaurant,
advertisement, appearance of other customers, appearance of employees,
manner of employees and premises as the cues. Seo (2005) proposed the most
important attributes including attentiveness of server, clean appearance, taste /
flavor of food, temperature of food and tenderness of meat.
2.2.1 Price of service
One of service attributes is the price. Price is the amount of money to be
sacrificed in exchange for a certain product or service. The perceived price will
influence perceived quality and customers recognized a service/product value
only when they can earn more benefits than expected with a reasonable price
(Chen, 2011).
In study of Herrmann et al. (2007), price perception is affecting directly on the
customer satisfaction. The quality of food and variety of food had been
Chapter 2: Literature Review and Conceptual Model

11

considered as important factors affecting customer satisfaction in customer’s

perceived value by the comparison what they paid for and what they receive.
2.2.2 Quality/taste of food
Food quality is the quality characteristics of food that is acceptable to
consumers. This includes external factors as appearance (size, shape, colour,
gloss, and consistency), texture, and flavour; factors such as federal grade
standards and internal (chemical, physical, microbial).
Besides ingredient quality, there are also sanitation requirements. It is important
to ensure that the food processing environment is as clean as possible in order to
produce the safest possible food for the consumer. Food taste is regarded as the
most important element of food attributes in several restaurant studies (Josiam
& Monteiro, 2004).
2.2.3 Variety of food
In a buffet service, the variety of food choices offering is one of factor affecting
customer perceived service quality when they compare what they expect when
paying an amount of money for an exchange of what they receive. When
consumers evaluate food quality, they judge a variety of menu as a separate
factor. Restaurateurs frequently develop new menus and offer a selection of
different menu items to attract customers (Namkung & Jang, 2007).
2.2.4 Servicescapes
There are many evidences showed that environmental variables can
substantially influence consumer behavior and emotions in physical
environments (Donovan & Rossiter, 1982; Turley & Milliman, 2000). Kotler
(1974) defined “atmospherics” as the term used for the intentional control and
manipulation of environmental cues in the service environment. Bitner (1992)
developed this point to the term “servicescapes” in reference to the physical
surroundings constructed by retailers to facilitate their service. The service is
constructed by the combination of tangibles and intangibles factors. The
Chapter 2: Literature Review and Conceptual Model

12

tangibles in a restaurant service are the buildings, furnishings, tool, equipments,
appearance of personnel and communication materials as well as the presence
of other customers in the service facility. The intangibles are the temperature,
color, decoration, display attraction, environment space, etc. Bitner (1992)
stated that:
The ability of the physical environment to influence behaviours and to create an
image is particularly apparent for service businesses such as hotels, restaurants,
professional offices, banks, retail stores and hospitals (Baker, 1987; Bitner, 1986;
Booms and Bitner, 1982; Kotler, 1973; Shostack, 1977; Upah and Fulton, 1985;
Zeithaml, Parasuraman, and Berry, 1985). Because the service generally is
produced and consumed simultaneously, the consumer is “in the factory”, often
experiencing the total service within the firm’s physical industry.
The perceived servicescape established by Bitner (1992) including three
dimensions including ambient conditions such as temperature, air quality, noise,
music, odor, etc.; space/function such as layout, equipment, furnishings, etc.;
signs/symbols and artifacts such as signage, personal artifacts, style of décor,
etc.
Lin (2004) indicated the components of servicescape including visual cues
specifically color, lighting, space and function and auditory cues including
music and non-musical sounds; olfactory cues.
The physical environment is normally the very influential factor on the
customer’s satisfaction (Butner, 1990; Harrel, Hutt and Anderson, 1980). Since
then, many studies from various disciplines examined the topic of servicescapes
theoretically and empirically (Fottler et al., 2000; Lin, Leu, Breen, & Lin, 2008;
Newman, 2007). On the consumer side, variables such as pricing, advertising,
added features and special promotions are given much more attention than the
physical setting as ways in which customers can be attracted to and / or satisfied
by a firm’s service (Bitner, 1992).
Chapter 2: Literature Review and Conceptual Model

13

Wakefield and Blodgett (1996) proposed three different leisure service settings,
conceptualized servicescape as multidimensional, comprised of facility
aesthetics, layout accessibility and cleanliness.
2.3. SERVICE PERSONAL VALUES
“Service personal values can be defined as a customer’s overall assessment of
the use of a service based on the perception of what is achieved in terms of his
own personal values” (Lages & Fernandes, 2005). In the hospitality industry the
consumer generally regards the tangible products as being largely
undifferentiated. This led to intangible elements of services quality is the only
way to differentiate the products offering from that of other competitors in the
marketplace (Douglas & Connor, 2003). The highest construct in the means-end
chain approach is the “service personal values” means the “beliefs or
conceptions about end-goals or desirable end-states, classified by Rokeach
(1973) as terminal values” (Lages & Fernandes, 2005).
The impact of personal values on consumer behavior has been deeply explored
(Beatty et.al., 1985). Personal values may offer a deeper understanding of how
customers judge the quality and desirability of a service (Srinivas et al., 2011)
and individuals show their values and lifestyles through the acquisition of
services (Kahle, 1988).
According to Kahle (1983), the List of values (LOV) is composed of nine
values which measure the values that are central to people in living their lives,
particularly the values of life’s major roles. The LOV is most closely tied to
social adaptation theory (Kahle, Beatty, and Homer, 1985). In the Rokeach
value survey (RVS) (Rokeach, 1968, 1973), the values are set into “terminal
values” and “instrumental values”.
The SERPVAL scale researched by Lages & Fernades (2005) had three
constructs including Service Personal Value to Peaceful life (SVPL), Service

Personal Value to Social Recognition (SVSR) and Service Personal Value to
Social Integration (SVSI). There were two outcomes of their model in the
mobile services: two of SERPVAL dimensions (SVPL and SVSI) were
Chapter 2: Literature Review and Conceptual Model

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significantly correlated to loyalty to service provider and the factor SVSR was
non-significant correlated to loyalty to service provider. If a service promotes
the pleasurable life, improves tranquility and safety and/or harmony, it is
perceived valued to peaceful life by customers. If an individual perceived
gaining respect from others, social recognition and status by using a service, it
is valued to social recognition. And if customer perceived a service bringing
them possibility of becoming more integrated in the group or promoting better
relationships at the social, professional or family levels, it is valued to social
integration (Lages & Fernandes, 2005). The conceptualization by Lages and
Fernandes (2005) identified personal values regarding services into three broad
groups of individual dimensions including the service value to peaceful life
(SVPL) which operates at the self-oriented level; the service value related to
social recognition (SVSR) and the service value related to social integration
(SVSI) which operates at the social-oriented level.

2.4. CUSTOMER SATISFACTION
Satisfaction is the customer’s value fulfillment response (Bloemer & Dekker,
2005). The relationship between service satisfaction and loyalty is non-linear,
meaning that in case satisfaction increases above a certain level, customer
loyalty will increase rapidly (Oliva et al., 1992 cited by Ruyter & Bloemer,
1999). Oliver (1997) assumed customer satisfaction is a judgment that a product
or service feature, or the product or service itself, provided (or is providing) a
pleasurable level of consumption-related fulfillment, including levels of under-

or over fulfillment (p.13) (cited by Giese & Cote, 2000). Tse and Wilton (1988)
mentioned customer satisfaction is the customer’s response to the evaluation of
the perceived discrepancy between prior expectations (or some norm of
performance) and the actual performance of the product as perceived after its
consumption (p.204) (cited by Giese & Cote, 2000). As concluded by Giese &
Cote (2000), the customer satisfaction is “A summary affective response of
varying intensity with a time-specific point of determination and limited