This study examines the impact of physical environmental factors on customer retention in fast-food restaurants/cafeterias. Furthermore, this study examines the mediating effect of customers’ positive emotions on this relationship.
In this study, the stimulus-organism-response model developed by Mehrabian and Russell (1974) is applied within the context of the fast-food restaurant/cafeteria industry. Data were collected from a sample of 250 consumers who have patronized establishments within this industry. The assessment model entailed employing the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach, which involved a two-stage procedure: measurement model and structural model evaluation.
The study’s results underscore the key role of customer positive emotions in influencing customer retention. Notably, physical environmental factors, encompassing elements like table setting, layout, and service staff, emerge as significant determinants in shaping these positive emotions. Furthermore, the findings indicate that these physical environmental factors exert a direct influence on customer retention, with customer positive emotions acting as mediator role in the relationship between these factors and retention.
This study is the first to use physical environment, customer emotions and customer retention variables together in the fast food restaurant/cafeteria industry.
