The purpose of this paper is to examine a specialty food loyalty model which includes perceived quality, satisfaction, and motivation, and to assess the model’s applicability in two distinct groups of customers: tourists and residents.
Data were collected from 455 specialty food customers in Bandung, Indonesia. Variance-based structural equation modeling (partial least squares (PLS)) was used to examine the relationship between the drivers (perceived quality, satisfaction and motivation) and loyalty according to the data presented by tourists and residents.
This study indicates that the perception of quality is an important factor affecting tourists’ and residents’ satisfaction with, and loyalty to, a product. Furthermore, this study suggests that motivation factors are important for tourists and residents in regard to developing loyalty to specialty foods.
This study provides a venue for retail managers and producers to improve their business performance by developing specialty foods of high quality. To improve their quality, this research suggests that managers and retailers focus on innovation based on exotic and unique traditional food reflecting the richness of local culture. To ensure their loyalty, customers of specialty foods need to be motivated by internal and external factors.
This study is one of the first to examine the formation of specialty food loyalty in two distinct groups of customers: tourists and residents.
