From connoisseur luxury to mass luxury: Value co-creation and co-destruction in the online environment

This exploratory study examines the processes of value co-creation and co-destruction between luxury brands and consumers from the consumer perspective using the social resource theory. The study adopted a qualitative, inductive approach using a sample of 24 in-depth interviews with luxury customers, both local residents and tourists, in Thailand. Love, status, information, and services are the four main types of resources involved in online interactions between luxury brands and customers. It is acknowledged that customers have different expectations, determining the way which they use their resources in interaction with the brand. In addition, the co-creation and co-destruction of the luxury brand experience include conversations and sophisticated interactions between many parties, such as the brand itself, staff, customers, and other related groups, for example, consumption communities and social network users.     

Analyzing user sentiment in social media: Implications for online marketing strategy

This article examines restaurant customers’ online activity following visits to restaurants. Differences in customers’ opinions based on gender and location are discussed. Sentiment analysis was used to analyze customers’ social media behavior in terms of liking, rating, and reviewing restaurants. User‐generated reviews and comments about experiences influence potential customers’ decisions. The results of this study show that gender and location of customers influence restaurant ratings. This article shows that sentiment analysis (using Natural Language Toolkit and TextBlob) can help marketers by providing a useful tool for big data analysis. Sentiment analysis can be used to interpret customer behavior and highlight how presales, sales, and after‐sales strategies can be improved.     

Marketing luxury services beyond affluence in the new normal: Insights from fine dining during the coronavirus pandemic

The market for luxury is no longer exclusive to the affluent society and the prevalence of conspicuous consumption among the mass society is a testament to the rise of mass prestige (masstige). Of particular interest in this study is fine dining, a luxury service that consumers pursue and enjoy in the hospitality industry. Though many studies on luxury goods avail, few studies have investigated luxury services such as fine dining, with little insights on the impact of the coronavirus pandemic on its consumption. We argue that research in this direction is important given the unprecedented impact that the pandemic has had on humanity and the need to respond to potential changes in customer expectations for luxury services such as fine dining in a post-pandemic era. Hence, in this study, we investigate the antecedents and consequences of customer satisfaction with fine dining using a Delphi study to acquire and examine field data from customers who continue to dine in fine-dining restaurants during the pandemic. Our findings suggest that fine diners place an emphasis on food quality (sensory experience, satiety value, menu selection), hygiene, and price when evaluating their satisfaction of the fine-dining experience during the pandemic, which significantly influences their future recommendation of the fine-dining restaurant to others. No significant differences in customer behavior based on income were observed, thereby lending credence and support to the idea of masstige marketing.     

Emotional prototypes,emotional memory usages,and customer satisfaction

In this study, we investigated the positive and negative emotion concepts in the prototype perspective and then tested them on customer satisfaction. By studying 612 customers in luxury restaurants, we found that two levels of customer emotions (i.e. positive and negative emotions) as a super-ordinate level, 4 positive emotions (i.e. contentment, happiness, love, and pride) and 5 negative emotions (i.e. anger, fear, sadness, shame, and disgust) as a basic level, and 49 specific emotions as a subordinate level are significantly related to customer satisfaction. We also examined the moderating role of emotional memory (EM) usage in the relationship between consumers’ emotions and their satisfaction. We found that product (food and beverage)-related EM strengthens and service-related EM usage weakens the relationship between customers’ negative emotions and their satisfaction. Interestingly, we found that positive and negative emotions are significantly related to customer satisfaction regardless of experience and store-related EM usage.     

Big social data and customer decision making in vegetarian restaurants: A combined machine learning method

Customers increasingly use various social media to share their opinion about restaurants service quality. Big data collected from social media provides a data platform to improve the service quality of restaurants through customers' online reviews, where online reviews are a trustworthy and reliable source that helps consumers to evaluate food quality. Developing methods for effective evaluation of customer-generated reviews of restaurant services is important. This study develops a new method through effective learning techniques for customer segmentation and their preferences prediction in vegetarian friendly restaurants. The method is developed through text mining (Latent Dirichlet Allocation), cluster analysis (Self Organizing Map) and predictive learning technique (Classification and Regression Trees) to reveal the customer’ satisfaction levels from the service quality in vegetarian friendly restaurants. Based on the obtained results of our experiments on the data vegetarian friendly restaurants in Bangkok, the models constructed by Classification and Regression Trees were able to give an accurate prediction of customers' preferences on the basis of restaurants' quality factors. The results showed that customers’ online reviews analysis can be an effective way for customers segmentation to predict their preferences and help the restaurant managers to set priority instructions for service quality improvements.     

The antecedent role of customer-to-employee relationships in the development of customer-to-firm relationships

In this study, a customer-to-employee (C–E) relationship construct is employed to test the antecedent role of C–E relationships in the development of customer-to-firm relationships. The authors propose a conceptual model of the relationships that are hypothesized to exist among the constructs of ‘rapport’, ‘relational benefits’, ‘affective commitment’, and ‘dedicational behaviours’ of customers with respect to full-service restaurants. This study demonstrates that rapport has a positive influence on customers' perceptions of relational benefits and that rapport and enhanced perceptions of relational benefits induce customers to develop affective commitment and form intentions to engage in dedicational behaviours towards restaurants.     

Understanding How the Web Works!

ABSTRACT

Creating dining environments that make customers feel comfortable is a key goal of restaurant designers and operators. By applying basic precepts of environmental psychology to restaurant seating configurations, foodservice managers may be able to enhance the guest experience without sacrificing operational efficiency. This paper reviews the environmental psychology literature related to seating behavior, and analyzes the designs of ten representative chain restaurants to determine if these psychological principles appear to be supported in a successful foodservice operation. It also examines the seating behavior of different cultures, and suggests approaches to foodservice design that may appeal to an international market. While environmental psychology literature rarely addresses foodservice environments directly, many of its findings can be applied to restaurant settings. An analysis of the floor plans of five quick service restaurants and five table service restaurants outlines how some operations have provided seating configurations that assist customers in defending personal territory. Research that examines seating behavior in a wide range of foodservice settings and across cultural groups would be a valuable addition to the literature while providing foodservice managers and designers with excellent data for making seating layout decisions.     

The Effects of Coupon Promotion on Repeat Visits in Restaurants

Abstract

Will customers' intention to return to a restaurant increase with coupon promotion? To answer this question, this study examines the hypothetical effects of coupon promotion on return visits to restaurants. Based on a literature review, three hypotheses were developed to test the effect of a coupon, its face value, and a patron's prior dining experience on return intention. The authors found that neither coupon use nor coupon face value contributed to explaining respondents' return intentions. However, repeat customers have a greater likelihood of returning to the restaurant than new customers. The study also showed that the quality of food and service were key indicators of return intention.     

Comparison of localized and foreign restaurant brands for consumer behavior prediction

This study used two comparison studies to examine the potential brand perception of localized and foreign restaurants to predict consumer behavior. A total of 680 participants (e.g., 318 foreign restaurant customers and 362 localized restaurant customers) were included to discover and confirm the causal relationships among the quality of food and meals, environmental evaluation, willingness to pay more, and recommendations. Our study of foreign restaurant brands (Study 1) found that food and meals may indirectly affect the willingness to pay more and recommendations through providing a friendly environment. The destination's moderating role is also confirmed. Additionally, our study of localized restaurant customers (Study 2) identified the mediating roles of risk evaluation and willingness to pay more, which link the relationship between food and meals and recommendation behavior. Furthermore, destination trust was found to strengthen the relationship between risk evaluation and willingness to pay more.     

Employee training and service quality in the hospitality industry

ABSTRACT

This study examines the relationship between employee training and service quality in the hospitality industry. The study tested the impacts of perceived access to training, perceived benefits of training and perceived support for training on service quality in the hospitality sector. Survey technique was used for the data collection. The research participants were frontline employees and their customers. The frontline employees responded to the training dimensions, while the customers’ completed the questions on service quality. One hundred and twenty useable surveys were included in this study. This study reveals a significant relationship between the employees’ perception of the benefits of training, support for training and service quality. This study offers some important management and theoretical implications.     

Co-creating value for luxury brands

The global market for luxury brands has witnessed dramatic growth over the last two decades but the current challenging economic environment contributes to the difficulty brand owners experience in ensuring that customers perceive sufficient value in their luxury brands to compensate for the high prices. According to recent service-oriented research, customers and suppliers co-create value as a result of a shift from a firm- and product-centric view of value creation to one that focuses on personalized brand experiences. In this paper, the authors develop a theoretical framework of types of value for luxury brands, and use case study research to identify processes of value creation in this particular setting. The findings highlight the variety of interactions taking place between luxury brand owners, their customers and members of their respective networks, which help to differentiate luxury brands and co-create a superior value proposition.     

Does the length of a customer–provider relationship really matter?

This study examines both a moderator and a mediator of perceived service quality and payment equity as they relate to customer loyalty in the banking industry. Through the moderating factor, the length of the customer–bank relationship, this study builds a conceptual framework for distinguishing between transactional- and relationship-oriented customers and provides an empirical analysis by using structural equation modelling. The empirical findings of this study, the result of the examination of 610 banking customers, showed that different lengths of the customer–bank relationship form loyalty from different variables and from a different path. For transactional-oriented customers, loyalty was built through the achievement of overall customer satisfaction; whereas for relationship-oriented customers, loyalty was built through the establishment of trust. Suggestions and limitations based on the finding are also discussed.     

Employees' overestimation of functional and relational service quality: A gap analysis

This study extends previous research on gap analysis of service quality by including not only functional service quality but also relational benefits. To this end, a field study was carried out in 36 hotels and 35 restaurants. The samples consisted of 213 employees and 657 customers. A questionnaire format was used to measure both functional and relational service quality, as well as customers' loyalty. When comparing employee and customer perceptions, gaps potentially range from ‘overestimation’ (employees' perceptions are greater than customers' perceptions) to ‘underestimation’ (customers' perceptions are greater than employees' perceptions). In general, the results indicated that the employees surveyed overestimated the service quality they offer to customers, although gaps were greater for certain service attributes than for others. In addition, some gaps were more related to customer loyalty than others. The findings also showed that employees' overestimation of relational benefits plays a moderating role, increasing the negative relationship between employees' overestimation of functional service quality and customers' loyalty. The theoretical and managerial implications of the results are discussed further in this paper.     

The Moderating Role of Confidence in Expectations and the Asymmetric Influence of Disconfirmation on Customer Satisfaction

This article examines the way in which confidence in expectations moderates the process of customer satisfaction formation, and whether positive disconfirmation and negative disconfirmation have asymmetric influences on satisfaction. Using structural equation analysis, the proposed model was tested with 256 Korean customers of family restaurants. The results indicate that confidence in expectations plays a significant role in the customer satisfaction formation process. The indirect effects of expectations via performance on customer satisfaction are stronger for customers with high confidence in expectations. The results also indicate that the influence of disconfirmation on customer satisfaction can be asymmetric. The asymmetric influence occurs especially when customers have high confidence in expectations.     

Chinese Luxury Consumers: Motivation,Attitude and Behavior

This study examines Chinese consumers’ motives, attitudes toward luxury brands (ATLB), and the impact of ATLB on consumer behavior. Specifically, Chinese luxury consumers were segmented into three groups: the elitist, the distant, and the democratic. Compared to the democratic group, the more one believes luxury is of good quality, the less likely one will belong to the distant group; the more likely one buys luxury for others, the more likely one belongs to the distant group. The more one buys luxury for self-actualization, the more likely one belongs to the elitist group. The more one consumes luxury for social comparison reasons, the more likely one belongs to the elitist. The more often one buys luxury for special times, the more likely one belongs to the elitist. Results show that the elitist on average bought more pieces of luxury products than the distant and the democratic.     

Language divergence in service encounters: Revisiting its influence on word-of-mouth

Research on language accommodation highlights the significance of accommodating customers' language requirements during service encounters. This replication study reinvestigates whether language divergence influences word-of-mouth intentions in a continuously-provided service of retail banking. Specifically, this study examines the relationships among language divergence, interaction quality, relationship quality, and positive word-of-mouth intentions. Consistent with previous research, study findings show that customers served in their second language perceive interactions with a service provider to be less responsive, adversely affecting positive word-of-mouth intentions. Additionally, language divergence has a negative influence on customer perception of information quality and empathy with a service provider, which affects the quality of the relationship customers have with the service provider. These results extend the understanding of the process by which language divergence affects positive word-of-mouth intentions.     

Effects of ethical sales behaviour,expertise, corporate reputation,and performance on relationship quality and loyalty

This analysis examines the influence of ethical sales behaviour, salesperson expertise, service performance, corporate reputation, and corporate performance on relationship quality and its consequences from multi-level perspectives in order to identify the nature of mix relationships at different levels. A survey with 505 qualified observations from financial institutions' customers in Taiwan was conducted. A structural equation modelling approach was used. Ethical sales behaviour, salesperson expertise, service performance, corporate reputation, and corporate performance, that is, the antecedents of relationship quality, have significant effects on relationship quality. Relationships exist between salespeople and customers, but customers also establish relationship with the retailers themselves. Satisfactory relationship quality has positive effects on commitment and loyalty. Implications for research and practice are discussed.     

Restaurants’ outdoor signs say more than you think: An enquiry from a linguistic landscape perspective

Building on the linguistic landscape theory and literature on customers' experience with restaurants' authenticity and status, this study investigates whether restaurants' outdoor signs influence customers' perceptions and behavioral intentions. Using an experimental design comprising two studies, supported by data collected from Chinese consumers, we test how display characters and text flow may jointly impact on customers' perceptions of the status and authenticity of ethnic (Japanese and Taiwanese) restaurants, thus influencing their visiting intentions and willingness to pay. We find that display characters influence Chinese customers' perceptions of authenticity and status in both Japanese and Taiwanese restaurants in Mainland China. There is an interaction effect between display characters and text flow on customers' perception of authenticity and status in Japanese restaurants in Mainland China. This study applies the linguistic landscape theory to a restaurant context and examines how such features may influence customers’ perceptions and decisions. The findings have important practical implications on managing customer experiences and perceptions via effective restaurant sign designs.     

Mechanism of retail therapy during stressful life events: The psychological compensation of revenge consumption toward luxury brands

During times of stress and challenging life events, individuals often seek coping mechanisms to build resilience and manage emotional distress. Recently, Korean consumers have exhibited a rise in revenge consumption of luxury products as a response to the uncontrollable COVID-19, deemed one of their most stressful life events. Consequently, this study explores the precursors of revenge consumption and investigates whether indulging in luxury goods can improve consumers' psychological well-being within the context of retail therapy. Drawing on Compensatory Control Theory (CCT), our proposed model empirically tests the relationship between negative emotions, shopping motivations, revenge consumption behaviors, self-esteem, and subjective well-being. Data were gathered from 324 South Korean participants via an online survey, all of whom had purchased luxury products during the pandemic. The results of the Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis reveal the process of psychological compensation through luxury consumption, which had a therapeutic effect on self-esteem and subjective well-being. Additionally, Multi-Group Analysis (MGA) depicts income-based differences in the revenge consumption mechanism. These findings highlight that when individuals experience a lack of control, anxiety, or fear, they seek measures to recover their psychological state through luxury purchases. This study also offers valuable insights for luxury brands considering strategies to support customers’ well-being during stressful life events.