Abstract

The purpose of this study was to measure the effects that service quality, perceived value and satisfaction have on loyalty in Namhaean area restaurants. A total of 273 questionnaires were completed. The structural equation model was used as an analysis method to measure the causal effects of service quality, perceived value, satisfaction and loyalty. The results demonstrated that the structural analysis result for the data was an excellent model fit. The effect of service quality on value, the effect of perceived sacrifice on value, the effect of service quality on satisfaction, the effect of value on satisfaction, and the effect of satisfaction on loyalty were statistically significant. Moreover service quality had an indirect effect on satisfaction through perceived value, and service quality also had an indirect effect on loyalty through perceived value and satisfaction. Perceived value had an indirect effect on loyalty, and an effect through satisfaction. Perceived sacrifice had an indirect effect on satisfaction through perceived value, and it also had an indirect effect on loyalty, and an effect through satisfaction. Further study is still required, and should be aimed at identifying the causal mechanisms of constructs, such that restaurant managers might be better prepared to offer value and satisfaction to their customers.

Keywords

• Service quality;
• perceived value;
• satisfaction;
• structural equation model;
• causal effect