Heesup Han

This research aims to examine the relationships among three components of the physical environment (i.e., décor and artifacts, spatial layout, and ambient conditions), price perception, customer satisfaction, and customer loyalty in the restaurant industry. A total of 279 cases from a survey were used to assess overall fit of the proposed model and test hypotheses using structural equation modeling. The three factors of the physical environment strongly influenced how customers perceived price, and this price perception, in turn, enhanced customer satisfaction level and directly/indirectly influenced customer loyalty. Décor and artifacts were the most significant predictors of price perception among the three components of the physical environment. Furthermore, both price perception and customer satisfaction played significant partial/complete mediating roles in the proposed model. The paper provides potential ways for restaurateurs to increase customer loyalty by improving their understanding of the roles of physical environment, price perception, and customer satisfaction.

As the public is increasingly concerned about environmental issues, green management is rapidly becoming a strategic tool that can enhance a hotel's competitive advantage. This study explores how to develop the image and branding of a green hotel using the concepts of cognitive, affective and overall images. The study, based on a survey of 416 hotel users, also investigates how a green hotel image can affect behavioural intentions (i.e. intention to revisit, intention to offer positive recommendations to others and willingness to pay a premium). The findings confirm that cognitive image components (namely value and quality attributes) can exert a positive influence on a green hotel's affective and overall images. The affective image is also found to positively affect a green hotel's overall image. A green hotel's overall image, in turn, can contribute to more favourable behavioural intentions. Quality attributes were found to be more powerful than value attributes. The importance of the concept of selfish altruism and obtaining a feeling of wellbeing from a purchase were shown to be very strong. A range of theoretical and practical implications are discussed.