Management, 471 Todd Hall, Washington State University, Pullman, WA 99164, USA. E-mail:
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H. J. Kim
chain restaurants from other countries, particularly from the United States.
For example, quick-service restaurants like McDonald’s, Wendy’s, and Pizza
Hut appeared in Korea in the mid- and late-1980s while mega casual-dining
chains such as T.G.I. Friday’s, Bennigan’s, Outback Steakhouse, and Chili’s
penetrated the Korean market in the 1990s (Park, 2009). Korean operators
also became sophisticated, developing their own chains or specialty restau-
rants to draw diners away from foreign-brand chain restaurants (Park, 2009).
Taken together, these phenomena have intensified the competition in the
restaurant industry.
As the market became saturated and the global economic recession,
which started in the late 2000s, dragged on, the Korean restaurant indus-
try ceased to enjoy its traditional influx of customers. Within the hospitality
industry, the competition has led many organizations to look for profitable
ways of differentiating themselves. One such strategy is the delivery of high
service quality (Zemke & Algright, 1985; Stevens, Knutson, & Patton, 1995).
High service quality increases customer satisfaction and produces measur-
able long-term benefits in market share and profitability (Anderson, Fornell,
& Lehmann, 1994). From the managerial point of view, the ultimate goal is
to attract and maintain customers. Hospitality operations have learned that
attracting new clients takes four to five times as much money as maintaining
existing ones (Bowen & Basch, 1994); therefore, customer retention is a key
to survival in the hospitality industry.
Numerous studies have indicated that customer satisfaction, service
quality perceptions, and customers’ decision to remain loyal or switch ser-
vice providers are significantly affected by the customer-oriented attitude
or behaviors of contact employees. (Bitner, 1990; Crosby & Stephens, 1987;
Ekiz, 2009; Schneider, Parkington, & Buxton, 1980; Surprenant & Soloman,
1987). However, empirical research to find the relationships among these
constructs is limited. The objective of this study is to develop and validate a
conceptual model that integrates the relationships among service orientation,
service quality, customer satisfaction, and customer loyalty in the context of
casual dining restaurants in Korea.
HYPOTHESES AND RESEARCH MODEL
Service Orientation
Service orientation has been viewed as a blend of certain dimensions of
personality (Cran, 1994; Herley, 1998; Hogan, Hogan, & Busch, 1984).
Hogan et al. (1984) defined service orientation as a “disposition to
be helpful, thoughtful, considerate, and cooperative” (p. 167). Other
researchers have emphasized the impact of situational and environmen-
tal variables on service-oriented behaviors (Soloman, Surprenant, Czepiel,
& Gutman, 1985). Donavan (1999) defined service orientation as an