Proceedings of the National Conference on

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2. 1Faculty of Languages and Management. International Islamic university Malaysia .... Preference of Restaurant Local Restaurant. Fast Food Restaurant. 110.
Proceedings of the Tourism and Hospitality International Conference (THIC 2014)

TOURIST’S PREFERENCE IN SELECTION OF A RESTAURANT: TESTING MEDIATING ROLE OF SERVICE QUALITY M. S. Rahman1 and F. A. M. Abdel Fattah2 1 Faculty of Languages and Management International Islamic university Malaysia Email: [email protected]; [email protected] 2 Graduate Research student Graduate School of Management (GSM) Multimedia University Email: [email protected]

ABSTRACT The aim of this research is to examine in what extent tourists’ preferences, and their satisfaction relates to their purchase intention from a restaurant. The study also considers the mediating role of service quality among the relationships. In order to test the hypothesized model, this study used a sample of 180 tourists’ who were visited in Malaysia. The instruments were developed through the measures adapted from previous scholarly works. In addition, structural equation modeling was applied to test the proposed model. The results show that the relationships among the variables are all significant except one. Moreover, the mediating effect of service quality in between tourists’ preference and purchase intention is partial. On the other hand, the role of service quality as mediator in between the relationship between tourists’ satisfaction and their purchase intention from a restaurant was full rather partial. This study offers valuable insights for restaurant managers to aware of and to deliver consistent and attractive services to their customers by considering their preference and satisfaction through appropriate service quality components. This research contributes to the literature on tourism marketing by examining their preferences and satisfaction in choosing a restaurant. Above all, this research also used service quality as a mediating variable in between the relationship among tourist’s preferences, satisfaction towards their intention to purchase from a restaurant which is scared in the tourism marketing literature under the Malaysian tourism industry context. Keywords: Tourists’ Preference, Satisfaction, Service Quality, Restaurant

1. Introduction The information extracted from Malaysian Tourism industry show a nonstop increasing in the numbers of foreign tourists’ arrival in the state since 2004 (Kosnan et. al,2012). Additional growth is predictable to 29.7 million tourist arrivals by the year 2015 (Malaysia International Trade and Industry Report, 2009). In this regards, Jang and Namkung (2009) assured that the infrastructure of related industry in tourism specially restaurant services are essential in the emancipation of the hospitality industry and outside eating has highly promoted by local and international travellers. In this respect, the Malaysian government has already declared to allocate an approximate sum of RM 2 billion for hospitality and tourism expansion. From this spot, restaurants are considered as competent to improve the tourism industry and also implant a state of commitment along with visitors, which in turn encouraging them to visit the nation once more. Various fields are discussed about the restaurants' service quality as one of the main aspect for tourists in gaining magnificent experiences for acquiring country custom which were in its turn becoming an indispensable phase of economic development (Trichopoulou, Soukara & Vasilopoulou, 2007; Okumus et al., 2007). In fact, restaurant business in Malaysia is facing numerous challenges of making quality food and drinks for their clients with respect to the competition in this industry (Mark et. al 2012; Jang & Namkung, 2009; Jalis et.al., 2009; Cusak, 2000). Quality of services is served to the guests by the eating houses located in Malaysia played a significant contribution in ensuring the restitution of the tourist to the country again (Raajpoot, 2002; Liu & Jang, 2009; Ryu & Lee, 2012; Haghighi, 2012, Peoria, 2006). According to Ljubojevis (2004) customer expectations are reliant on the quality of the restaurant’s food offered to their target customers. Research on tourist’s attitude on food and beverage in Malaysia is still scarce and additional investigation requires that providing helpful insight to devise better strategies in the coming future. Hence, the purpose of this inquiry is to explore the tourist preference and their satisfaction while they consider service quality in between the tourists’ preference, tourist’s satisfaction towards their intention to select a restaurant for the expenditure of their food items. Thus, this paper is also aimed to explore the mediating role of service quality in between tourists’ preference, tourist’s satisfaction towards their intention to select a restaurant for the consumption of their items. Nevertheless, this inquiry will suffice the following research questions: In what extent the relationships exist between the tourist preferences and tourist’s satisfaction towards their intention to select a restaurant? How does the service quality play as a mediating role in between tourist preference and their aim to select a restaurant?

2. Constructs Development Quality can be known as the measurements and indication of durability, usable nature of products and services that are meeting the needs given the time and place after the exchange processes (Injac, 1998). However, the overall diversity of food and beverage serve in the restaurant and experience of services in the restaurant is obviously a contributing factor towards intentention to visit (Joanne, 2004; Quan and Wang; 20014). Hashimoto and Telfer (2003) shown that restaurant services are the efficacious tool in promising, fabulous memories for tourists in promoting the tourism sector. In this regards the concept of consumer’s preferences can be identified as a judgment that is evaluated, in a way, of liking or disliking an object (Coppin, 2010; Lichtenstein, 2006). So tourist’s preference depends on the options of meals that are offered by the restaurants, in a way, that increased their motivation to choose that particular restaurant in the destination where they actually visit (Park, 2004). Previous research also confirms that consumers’ are likely to visit a restaurant where the nutrient quality and services offered are excellent (Liu, 2000; Das et. al., 2007). Thus the purpose of choosing a restaurant is a stability of liking and disliking of the foods and beverages from an eating place which is grounded on the behaviour as well (Oliver, 1997; Verbeke, 2005; Menrad and Sparke, 2006). However, Reynolds & Arnold (2000) define purchase intentions are the customer’s emotional reaction to buy an item from a firm to assess his or her experience. Previous research also shows that the relationship between satisfaction and the intention to purchase under the scope of restaurants and hotels (Sook Min 2011). Above all, research supports that purchase intention come out also by service quality of the product and the services offer to the customers as well (Colgate and Lang, 2001). Aside from that, the degree of density of the food and drinks, restaurant environment, the conduct of the person who serve the food, price of the food are the major concern for the customers in the restaurants (Raajpoot, 2002; Knasko, 1991; Hunter, 1995; Delwiche, 2004; Raajpoot, 2000). Several studies agree that the overall satisfaction of a restaurant and service quality they experience from the restaurant, do have a strong relationship (Baker and Crompton, 2000; Domingo Ribeiro, 2002; Jang & Namkung, 2009; Babajide, 2011, Ruetzler, 2008). Zaire, (2000) also explain that customer satisfaction as the sense of pleasurable experiences being fulfilled by a product or service offered by a service provider in a particular industry. Based on the above discussion the following conceptual framework is developed:

H1 Tourists’ preferences

H3 Food service Quality

Tourists’ satisfaction

H5

Purchase Intention from a Restaurant

H4 H2

Figure 1: The Conceptual Framework for Tourist’s Preferences and their Satisfaction on purchase intention from a restaurant By referring to the discussions made by the scholars, following hypotheses for this research are developed: Direct hypothesis: H1: There is a positive relationship between tourist preference and tourist intention to choose a restaurant. H2: There is a positive relationship between satisfaction and tourist intention to choose a restaurant. H5: There is a positive relationship between service quality and tourist intention to choose a restaurant. Indirect hypothesis: H3: There is a positive relationship between tourist preference and their purchase intention to choose a restaurant item when the service quality playing as a mediating role among the observed relationship. H4: There is a positive relationship between tourist satisfaction and their purchase intention to pick out a restaurant for the consumption of items when the service quality of playing as a mediating role among the observed relationship. 3. Methodology: 3.1 Sample and Data Collection:

Researchers in the research selected Kuala Lumpur city for the data collection from the respondents by using the convenience sampling procedure. As Kuala Lumpur is a multi-cultural city inhabited by Malay, Chinese, Indian and other ethnic roots. This ethnic and cultural masterpiece makes this city a unique character by itself. On the other hand the mega structure of twin tower and the overall facilities actually make this city as vibrant and offer the stimulation to the holidaymakers from both sides (local and international) to visit (Ujang and Muslim, 2014). In addition, according to the Kuala Lumpur Structure Plan 2020, the government of Malaysia has already used up a considerable amount of planning for the tourism development in the city with good facilities, high tech infrastructure services, launching various international tourism programs and actions. As result Kuala Lumpur is now a friendly destination for all types, tourists (Ujang and Muslim, 2014). This research used survey questionnaire as a tool for collection of data from the tourists who were visited Kuala Lumpur in Malaysia. After adjustment of the instruments from the expertise suggestions 200 questionnaires were distributed in various destination sites in Kuala Lumpur. The study questionnaire was taken between the 1st of March 2014 to 30th June2014. Both local visitors in Kuala Lumpur and foreign tourists participated in the inquiry. Of the 200 distributed instruments this research only used 180 respondent's responses. Of the 180 respondents 80 were from local visitors and remaining 100 respondents were visitors from various countries. In fact majority of the foreign tourists were from the Asian region (90%). The overall demographic characteristics of the respondents are shown in Table 1. Table 1: Profile of the respondents Measure Gender Age

Preference of Restaurant Marital Status

Items Male Female 15-20years 20-40 years 40 years above Local Restaurant Fast Food Restaurant Single Married

Frequency 110 70 70 80 30 110 70 70 110

Percentage 62% 38% 39% 44% 17% 61% 39% 39% 61%

3.2 Measurement Development The questionnaire was prepared based on thorough adapting instruments from various researchers' work. This research used twenty two items to explore the Tourist’s Preferences and their Satisfaction on purchase intention from a restaurant (See appendix 1). The questionnaire included tourist preference, service quality, tourist satisfaction and the tourist intention to choose a restaurant. The tourist preference was assessed through a half dozen items were adapted from Shu-yuan (2007). In addition, service quality variable measured by six items also were adapted from Johns & Tyas (1996); Kivela et al., (1999); Raajpoot (2002) Stevens et al., (1995) research. Satisfaction was measured by five items adapted from Oliver (1997); Ryua, Hanb, Kimc (2008) studies. Lastly, tourist intentions were operationalized with responses to the five items adapted from Zeithaml et al. (1996); Namkung, Jang, (2007). All the measurement items for the constructs of the current survey were tested through 7-point scale (1 = extremely disagree and 7 = extremely agree) 3.3 Statistical Analysis: This research used frequency analysis through SPSS 18.0 statistical package for demographic explanation. The conceptual framework of this research was examined by using structural equation modelling (SEM) through AMOS 20.0. As it is already established that SEM approach has several benefits over multiple regression analysis (Bagozzi and Yi, 1989). Data were analysed by two step approach suggested by (Anderson and Gerbing, 1998; Hair et.al 2010; Chang, 1998). In the first step, a confirmatory factor analysis was performed to measure the adequacy of the measurement model (Chang, 1998). In the second tone of the data analysis, this research tested full structural model using SEM to detect the causal relationship among the variables. This research applied method of maximum likelihood estimation (MLE) as it is a popular statistical technique used by numerous researchers to estimate the parameters in the model (Chang Li, 2013). To test the overall model fit this research applied six criteria to establish the model fit. These are chi-square test statistics; goodness-of-fit index (GFI); adjusted goodness of fit index (AGFI); root mean square residual (RMR); root mean square error of approximation (RMSEA) and X2/DF (Carmines and McIver 1981; Steiger, 1990; Browne and Cudeck, 1993; Bollen, 1989; Joreskog and Sorbom, 1979). Above all to test the mediation effect this research applied the bootstrapping technique as it allows the researchers to assess the stability of the parameter estimates in the model. 4. Data Analysis: 4.1Measurement Model

To ascertain the content validity this research has already acquired the instrument grounded by its content of the measurement scale (Straub, 1989). As a content validity can be defined how the researchers make a scale through proper representation and inclusive way (Bock and Kim, 2002). For this research, content validity was determined through the pre-testing of the instruments with the academic expertise, definition of the individual constructs and from past researchers scale. To operationalise the measurement items through a true construct this research established construct validity of trying out the model by using confirmatory factor analysis (CFA) (Strub, 1989; Bock and Kim, 2002; Ryu et al., 2003). This research assured convergent validity by investigating the factor loading of individual items of the construct. As Composite reliability assists the researchers to count at the inner consistency of the measurement model. The result shows that the value of composite reliability and variance extracted is in the acceptable range (See table 2) (Bagozzi and Yi, 1988; Fornel and Larcker, 1981). This research also tested each construct’s composite reliability and variance extracted (see table 2) by using CFA. From the table it reflected that all the loadings are above 0.70. In addition, this research also assessed the overall model fit by using six common fit measures. In fact, the overall fit of the model can be measured by two aspects. These are absolute and comparative fit (Ryu et. al.2003). The absolute fit measures through X2/df, root mean square error of approximation, goodness of fit index, adjusted goodness of fit index. This research used the comparative fit index result to check the comparative fit of the model. The result from table 3 reflects that the data were well suited in the measurement model in a satisfactory stage. Table 2: Measurement Model Latent Construct

Items

Loadings

Tourists’ Preference (TP)

TP1 TP2 TP3 TP4 TP5 TP6 TS1 TS2 TS3 TS4 TS5 RSQ1 RSQ2 RSQ3 RSQ4 RSQ5 RSQ6 TI1 TI2 TI3 TI4 TI5

0.78 0.73 0.79 0.78 0.85 0.76 0.73 0.89 0.87 0.81 0.78 0.78 0.74 0.75 0.79 0.78 0.81 0.75 0.80 0.81 0.82 0.76

Tourists’ Satisfaction(S)

Restaurant Service Quality (RSQ)

Tourists’ Intention (TI)

Composite reliability 0.904

Variance Extracted 0.61

0.909

0.67

0.90

0.60

0.891

0.62

Note: Factor loadings are from CFA Table 3: Overall Fit of the CFA Model The model fits Index items X2/df

Scores 382.756/203=1.88

Goodness-of-fit index (GFI) Adjusted goodness of fit index (AGFI); Root mean square residual (RMR)

.837 .797 0.019

Root mean square error of approximation (RMSEA)

0.057

Comparative Fit Index (CFI)

0.773

Recommendation Acceptable for model fit (1< X2/df