Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
Key Words: 
overall service quality, customer satisfaction, behavioral intentions, personal characteristics. 
INTRODUCTION 
Over the past years, researchers and practitioners have become increasingly concerned about customer 
retention and switching. It has been demonstrated that the total cost of bringing a new customer to a level of 
profitability comparable to that for a lost customer is approximately sixteen times greater (Lindgreen 
et al
., 2000), 
and customer switching has deleterious effects on firms’ market share, profitability, viability, and future revenue 
stream in today’s competitive marketplace (Ganesh 
et al
., 2000; Keaveney, 1995; Rust 
et al
., 1995). Given this 
evidence and the situational facts in today’s competitive restaurant industry (e.g., competition is severe; 
product/service differentiation is low; and customers are sophisticated and demanding) (Jang and Mattila, 2005), it is 
no surprise that a fundamental aim of restaurant firms is to retain customers by implementing customer retention 
programs (e.g., monetary/non-monetary loyalty reward program). Increasing customer retention by investigating 
and managing its major determinants can contribute to long-term success for restaurant firms. 
 
It is widely understood that in the existing literature on the marketing of services, a major determinant of 
long-term customer behavior is service quality and customer satisfaction (CS) (Cronin and Taylor, 1992; Taylor and 
Baker, 1994). Customer retention (Anderson & Sullivan, 1993), positive word-of-mouth (WOM) (Schneider and 
Bowen, 1999), and financial benefits to firms (Bowen and Chen, 2001) can be all regarded as outcomes of service 
quality and CS. Thus, it is no wonder that every restaurant firm is highly concerned with managing and increasing 
overall service quality (OSQ) and CS, which have critical roles in the formation of behavioral intentions (BI), such 
as repeat visit intention (RVI) and word-of-mouth intention (WOMI). 
Recently, however, many researchers have agreed that the links between customers’ BI and its antecedent 
variables (e.g., CS) are not as straightforward as they may seem (Evanschitzky and Wunderlich, 2006; Henning-
Thurau and Klee, 1997; Homburg and Giering, 2001). Even many satisfied customers occasionally switch to a new 
service provider (Kahn, 1995). One of the primary reasons would be that personal characteristics (i.e., gender and 
age) influence the strength of the relationship between retention and its antecedent variables (Evanschitzky and 
Wunderlich, 2006; Homburg and Giering, 2001). Younger customers and male customers dynamically seek new 
information or alternatives even when they are satisfied with the current provider (Homburg and Giering, 2001).
Additionally, in the relationship between OSQ and CS, it may be true that higher perceived service quality does not 
necessarily result in higher levels of satisfaction because customers’ satisfaction ratings should vary according to 
differences in customer characteristics (Mittal and Kamakura, 2001). 
Despite the focus of prior research on consumer behavior on the relationships among service quality, CS, 
and BI, the specific nature of the relationship between service quality and CS and their influence on customer RVI 
and WOMI have remained unclear (Lee 
et al
., 2000; Oliver, 1997; Ting, 2004), particularly in the restaurant 
industry. In addition, the specific role of personal characteristics in understanding customer post-purchase behaviors 
has rarely been examined. Thus, investigating the relationships among OSQ, CS, and personal characteristics in the 
formation of BI is strongly needed to gain a better understanding of customer behavior in the restaurant industry. 
The objectives of this study were to develop a model of BI (i.e., RVI and WOMI) involving OSQ, CS, and personal 

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