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Antecedents and Consequences of Customer Experience in Beverage Establishments
Title
Antecedents and Consequences of Customer Experience in Beverage Establishments.
Creator
Bujisic, Milos, Nusair, Khaldoon, Sivo, Stephen, Hutchinson, Joe, Chen, Po-Ju, Mattila, Anna, University of Central Florida
Abstract / Description
It is estimated that there are approximately 42,000 beverage establishments in the U.S. whose annual revenue surpasses $20 billion (First Research, 2014). To facilitate discussion of beverage establishments, it is essential to recognize beverage establishments as businesses whose majority of sales come from alcoholic drinks (Moss, 2010a). In this research, beverage establishments are divided into beverage-only bars, bar/entertainment combinations, and food and beverage combinations. Even...
Show moreIt is estimated that there are approximately 42,000 beverage establishments in the U.S. whose annual revenue surpasses $20 billion (First Research, 2014). To facilitate discussion of beverage establishments, it is essential to recognize beverage establishments as businesses whose majority of sales come from alcoholic drinks (Moss, 2010a). In this research, beverage establishments are divided into beverage-only bars, bar/entertainment combinations, and food and beverage combinations. Even though they are a well-established industry, beverage establishments have received little academic attention (Moss, 2010b). For example, previous studies have given little attention to the development of the model that examines the relationships between quality attributes, convenience, perceived price fairness, customer experience, and customer loyalty in beverage establishments. However, current research in other service sectors has showed that quality, pricing and convenience have a strong effect on customer experience and behavioral intentions (Baker (&) Crompton, 2000; Cronin et al., 2000; Taylor (&) Baker, 1994; Tian-Cole, Crompton, (&) Willson, 2002; Woodside et al., 1989). Quality is tightly related to customer experience since it positively affects customer satisfaction and therefore company's profitability (Hallowell, 1996).This study has the following objectives: (1) to develop an instrument to measure the antecedents of customer experience in beverage establishments; (2) to examine the relative importance of different antecedents of customer experience in different types of beverage establishments; and (3) to build a model of various antecedents of customer experience in beverage establishments.This study was conducted in six phases. The first phase was the analysis of previous literature regarding quality attributes, convenience, perceived price fairness, customer experience, customer loyalty, and beverage establishments. The second phase was a development of mixed methodology research design. The third phase was the data collection based on interviews with management of beverage establishments, customer focus groups, and a survey of customers of beverage establishments. The fourth phase was a pilot study that involved a refinement of the study instrument. The fifth phase was a main quantitative study based on the survey design. The results from each qualitative and quantitative phase of the study were integrated and analyzed.The results from the instrument development part of the study identified the following eleven antecedents of customer experience in beverage establishments: (1) service quality, (2) product quality, (3) physical environment design, (4) physical environment layout, (5) music quality, (6) social environment, (7) information convenience, (8) location convenience, (9) parking convenience, (10) entrance fee fairness, and (11) perceived price fairness. Additionally, the second instrument development study was used to recognize different customer experiential state dimensions. The factor structure included two customer experiential states: (1) the affective experiential state and (2) the cognitive experiential state.A comprehensive theoretical model that integrates different dimensions of antecedents of customer experience, customer experiential states, customer loyalty and the moderating affect of the type of the beverage establishment was developed. One of the most important findings of the study is the relationship between the social environment and the affective experiential state. The results of the study indicate that the majority of other antecedents of customer experience did not have a significant effect on two experiential states or that effect was relatively weak. However, social environment was the strongest predictor of customers' positive emotions and therefore customer loyalty and behavioral intentions. Finally, the study results confirmed Oliver's (1997) theory of customer loyalty by providing support for the sequential relationship between cognitive, affective, and conative loyalty. This study has several important theoretical contributions. Different antecedents of customer experience in beverage establishments were recognized and an instrument that measures these dimensions was developed. To the best of our knowledge, this is the first scale specifically developed to measure experience in beverage establishments. Additionally, the importance of each of the antecedent of customer experience was examined in regards to their effect on customer experience. Additionally, an instrument that measures cognitive and affective experiential states was developed and was a foundation for the study model. Finally, this study integrates different customer experience and customer loyalty dimensions into a comprehensive theoretical model that could be applied and retested in other service settings.
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Date Issued
2014
Identifier
CFE0005309, ucf:50532
Format
Document (PDF)
PURL
http://purl.flvc.org/ucf/fd/CFE0005309