The Relative Impact of Service Quality on Service Value, Customer Satisfaction, and Customer Loyalty in Korean Family Restaurant Context

Abstract

This study was designed to examine the relative impact of service quality on service value, customer satisfaction, and customer loyalty, including positive word-of-mouth communication and revisit intentions. For this purpose, the authors developed a structural model which consists of the above variables. Two hundred-eighteen restaurant patrons in Korea responded to questionnaires. The data were analyzed with LISREL 8.5W. The empirical results and implications are as follows. First, the greater the tangibles, assurance, and sensory dimensions of service quality, the greater are the perceived service values by the customers. Second, the greater the empathy dimension of service quality, the greater is the customer satisfaction. Third, the greater the service value, the greater are the customer satisfaction, the positive word-of-mouth communication, and revisit intentions of the customers. Fourth, the greater the customer satisfaction, the greater are the positive word-of-mouth communication and revisit intentions of the customers. These findings have shown that the tangibles, assurance, sensory, and empathy dimensions of service quality contribute to the evaluation of Korean family restaurants. Also, based on these empirical findings, these dimensions can be used as competitive advantages and for the differentiation from competitors.

Key Words:

• Service quality
• service value
• customer satisfaction
• customer loyalty
• word-of-mouth communication
• revisit intentions
• Korean family restaurant