International Journal of Hospitality Management 29 (2010) 520–529

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International Journal of Hospitality Management

journal homepage: www.elsevier.com/locate/ijhosman

Effects of service quality and food quality: The moderating role of atmospherics
in an ethnic restaurant segment
Jooyeon Ha, SooCheong (Shawn) Jang *
Department of Hospitality and Tourism Management, Purdue University, 700 W. State Street, West Lafayette, IN 47907-0327, United States

A R T I C L E I N F O A B S T R A C T

Keywords: This study empirically examined not only the relationship between perceived quality and satisfaction/
Atmospherics loyalty, but also the role of customer perceptions of atmospherics in an ethnic restaurant segment.
Service quality Specifically, this study, using hierarchical regression analyses, investigated the direct effects of service
Food quality
quality and food quality on customer satisfaction and loyalty as well as the moderating effect of the
Satisfaction
perception of atmospherics, in Korean restaurants. As expected, this study showed that service and food
Loyalty
Moderating effect quality have positive and significant effects on customer satisfaction and loyalty. This suggested that,
Ethnic restaurant similar to other restaurant segments, employee service and food are of great importance for ethnic
Korean restaurant restaurants as well. Verifying the moderating role of atmospherics, however, this study found that good
employee service can be more effective for increasing the satisfaction and loyalty of customers with a
low perception of the atmospherics compared to those with a higher perception. Further, providing
quality food is particularly critical for creating customer satisfaction in ethnic restaurants where
atmospherics are not satisfactory. More detailed findings and implications are also discussed.
ß 2009 Elsevier Ltd. All rights reserved.

1. Introduction
Previous studies have emphasized the importance of service
quality and food quality in the restaurant industry, suggesting that
customers’ perceptions of quality have a significant impact on
satisfaction and positive post-consumption behaviors, including
loyalty (Baker and Crompton, 2000; Olsen, 2002). High quality
employee service produces higher levels of customer satisfaction,
which in turn leads to higher levels of positive consumption
behaviors, such as revisiting, positive word of mouth, or
recommending the restaurant to others (Chow et al., 2007; Cronin
et al., 2000; Oliver, 1999). Along the same lines as service quality,
food quality has also been considered a fundamental element of
customers’ dining experiences that affects customer satisfaction
and determines future behaviors (Kivela et al., 2000; Namkung and
Jang, 2007; Sulek and Hensley, 2004).
Furthermore, previous studies have identified atmospherics as
another important element of the dining experience and reported
that atmospherics influence customer’s emotions and expectations
regarding service and food quality (Baker et al., 1994; Reimer and
Kuehn, 2005; Wall and Berry, 2007). Usually, a customer first
perceives the atmospherics when he or she enters a restaurant,
* Corresponding author. Tel.: +1 765 496 3610.
E-mail addresses: ha2@purdue.edu (J. Ha), jang12@purdue.edu (S.C.S Jang).
which occurs before any actual services or foods are delivered.
Thus, the emotions created by the perception of the atmospherics
may affect the customer’s reaction to the actual services and foods
in restaurants (Bitner, 1990; Zeithaml et al., 1993). That is, if a
customer has a high perception of the atmospherics, then
customers’ expectations for service and food quality could also
be higher. In this situation, merely providing an appropriate level
of service or food may not meet customers’ heightened expecta-
tions, leading to lower customer satisfaction and lower loyalty
behaviors. However, even if restaurant atmospherics are not
satisfactory, providing excellent service and food could induce
satisfaction and positive behaviors because it may easily exceed
the lowered expectations created by the atmospherics. In other
words, the perceived level of atmospherics could enhance or
reduce the effect of perceived quality on satisfaction and positive
post-consumption behaviors. Based on this rationale, the effects of
perceived quality on customer satisfaction and loyalty could vary
depending on the customer’s perceptions of the dining atmo-
spherics.
Thus far, previous research associated with atmospherics has
focused only on its direct impact on customers’ emotions or
behaviors (Bitner, 1992; Donovan et al., 1994; Eroglu et al., 2005;
Kaltcheva and Weitz, 2006; Mattila and Wirtz, 2001; Wakefield
and Blodgett, 1994). However, as previously mentioned, custo-
mers’ reactions to the actual performances and the impact of
perceived quality on consumer behavior may vary depending on

0278-4319/$ – see front matter ß 2009 Elsevier Ltd. All rights reserved.
doi:10.1016/j.ijhm.2009.12.005
 J. Ha, S.C.S. Jang / International Journal of Hospitality Management 29 (2010) 520–529
the emotions triggered by the perceived atmospherics before
experiencing the actual services. In other words, atmospherics may
have a moderating role in the relationship between quality
perception and consumer behaviors, which differs from what
previous research has suggested (e.g., Eroglu et al., 2005; Kaltcheva
and Weitz, 2006; Mattila and Wirtz, 2001; Wakefield and Blodgett,
1994). To fully understand the various functions of atmospherics in
service settings, it is necessary to explore the moderating role of
atmospherics. Thus, one of the main purposes of this study was to
identify the moderating role of perceived atmospherics in the
relationship between perceived quality and satisfaction/loyalty. To
measure customer perceptions of atmospherics, this study
employed commonly used attributes of restaurant atmospherics:
interior design, music, mood, and layout/facilities aesthetics.
(Please refer to Section 3 for more details.)
Among service settings, the role of atmospherics might be more
pronounced if customers come to the setting for hedonic purposes
(Wakefield and Blodgett, 1994). This study used an ethnic
restaurant segment as the research setting because customers
visiting ethnic restaurants may not only want to eat food. They
may also be hoping to experience new and unique cultures via the
dining environments and/or exotic foods of ethnic restaurants.
These new encounters are part of the hedonic aspects of the
restaurant experience. Sloan (2001) suggested that ethnic foods in
the U.S. develop in four stages: exotic (e.g., Ethiopian), narrow (e.g.,
Korean, Vietnamese, and Mediterranean), expanding (e.g., Thai and
French), and mainstream (e.g., Italian and Mexican). Among ethnic
restaurant segments, this study chose the Korean restaurant
segment because it belongs to the ‘narrow’ stage (Sloan, 2001).
Accordingly, customers still perceive Korean restaurants as exotic
even though they are accessible in many parts of the U.S. This
exotic aura means that customers in the U.S. can have hedonic
experiences in Korean restaurants. Yet, while Korean food remains
unfamiliar to many residents in the U.S., they can more easily
experience Korean foods as compared to less widespread ethnic
restaurant segments. Thus, we were able to collect data about
customer experiences with Korean restaurants more easily
compared with restaurants belonging to the exotic segment.
More specifically, the objectives of this study were: (1) to test
the impact of service quality on customer satisfaction and loyalty;
(2) to examine the impact of food quality on customer satisfaction
and loyalty; (3) to identify the moderating effect of perceived
atmospherics on the relationships between service quality and
satisfaction/loyalty; and (4) to test the moderating role of
perceived atmospherics on the relationships between food quality
and satisfaction/loyalty.
2. The literature review
2.1. Service quality
As one of the most critical factors influencing customer
satisfaction and future behaviors, service quality has been
extensively researched within the service marketing field. Service
quality is often viewed from two perspectives: the customer’s
cognitive evaluation of the service provided (Taylor and Baker,
1994) and a multidimensional construct created by an evaluation
of attribute performance (Parasuraman et al., 1988).
Service quality is usually defined as the customer’s judgment of
the overall excellence or superiority of the service (Zeithaml,
1988). Thus, it is the customer’s subjective evaluation formed by
comparing expectations and perceived performance (Bolton and
Drew, 1991; Parasuraman et al., 1985, 1988). Based on this gap
theory, Parasuraman et al. (1988) developed SERVQUAL as an
instrument to measure service quality. SERVQUAL consists of five
dimensions: reliability, responsiveness, empathy, assurance, and
521
tangibles. Since it was first developed, numerous studies have
applied SERVQUAL to assess service quality in service-related
situations (Caruana et al., 2000; Lee and Lambert, 2000).
Moreover, since perceived levels of service in restaurants are
based on the relationship between customers and service
providers (Nikolich and Sparks, 1995), customer’s perceptions
and evaluation of service quality may be highly dependent upon
the service provider’s performance during service delivery.
Reliable, prompt, and assured service can be considered intangible
cues that influence satisfaction and post-consumption behaviors
(Brady and Robertson, 2001). Thus, in this study service quality
refers to the level of service provided by restaurant employees.
2.2. Food quality
Food quality is one of the most critical components of a dining
experience (Namkung and Jang, 2007; Sulek and Hensley, 2004).
Previous studies have empirically investigated the importance of
food quality in restaurant settings; for example, Clark and Wood
(1999) confirmed that food quality is a primary factor influencing
customer loyalty in restaurant choice; Susskind and Chan (2000)
insisted that from the customer’s perspective, food quality is a key
determinant for visiting a restaurant; Mattila (2001) considered
food quality a key predictor of customer loyalty in casual-dining
restaurants; Sulek and Hensley (2004) found that when compared
with other aspects of the restaurant, such as environmental
components and service quality, food quality is the most important
element of customer satisfaction. Recently, Namkung and Jang
(2007) tested the impact of food quality on customer satisfaction
and behavioral intentions and found a positive linkage between
food quality and satisfaction/behavioral intentions.
Food quality has been measured using a number of various
attributes. Kivela et al. (2000) considered several attributes of food
quality such as tastiness of food, menu variety, and nutrition to
examine the effect of excellent food on customer satisfaction and
return patronage. Raajpoot (2002) used food presentation, serving
size, menu design, and variety of food to measure product quality
(food quality) in the foodservice industry. Furthermore, Sulek and
Hensley (2004) stated that three general food characteristics
determine food quality: safety, appeal, and dietary acceptability.
Among those characteristics, appeal includes several items such as
taste, presentation, texture, color, temperature, and portion size.
More recently, Namkung and Jang (2007) selected presentation,
menu item variety, healthy options, taste, freshness, and temper-
ature to assess food quality.
2.3. Satisfaction
Customer satisfaction is defined as a post purchase evaluative
judgment concerning the purchase decision (Day, 1984). The most
widely accepted theory to explain customer satisfaction is the
Expectancy-Disconfirmation theory proposed by Lewin (1938),
which posits that customers assess their satisfaction levels by
comparing actual experiences or performances with their expecta-
tions. This approach to customer satisfaction is based on the
cognitive process of confirmation of expectations (Oliver, 1980,
1989). The theory suggests three possible situations for customer
evaluations: (1) confirmation occurs when the actual performance
matches expectations; (2) positive disconfirmation occurs when
the actual performance exceeds expectations, which leads to
satisfaction; and (3) negative disconfirmation occurs when the
actual performance is worse than expected, which leads to
dissatisfaction.
However, researchers have recognized that considering only
the cognitive aspects of satisfaction evaluation may prove
inadequate. Using a performance-based approach, many previous
522 J. Ha, S.C.S. Jang / International Journal of Hospitality Management 29 (2010) 520–529
studies have insisted that customer satisfaction incorporates
cognitive judgments and affective reactions (Lin, 2004; Mano
and Oliver, 1993; Westbrook and Oliver, 1991). Westbrook (1987)
argued that satisfaction includes an evaluation of the consumption
emotions elicited by product usage. Yi (1990) suggested that
satisfaction results from processing affective component of
consumption experiences. Oliver (1997) also considered customer
satisfaction as ‘‘the consumer’s fulfillment response, the degree to
which the level of fulfillment is pleasant or unpleasant,’’ suggesting
that satisfaction reflects the impact of the performance of service
providers on a customer’s feeling state. It seems particularly
important to consider customers’ affective responses in restaurant
settings since customers interact with service providers (Nama-
sivayam and Mattila, 2007). Based on these conceptual studies
regarding customer satisfaction, this study viewed customer
satisfaction as cognitive evaluations of service/food quality and
affective aspects engendered by consumption experiences.
2.4. Loyalty
Loyalty is defined as ‘‘a deeply held commitment to repurchase
or re-patronize a preferred product or service consistently in the
future despite situational influences and marketing efforts’’
(Oliver, 1999). According to Jacoby and Chestnut (1978), customer
loyalty can be understood by examining the beliefs, affective
connections, and conative processes that orient a customer
towards a product or service. Furthermore, Oliver (1999) classified
loyalty into four phases: cognitive loyalty, affective loyalty,
conative loyalty, and action loyalty. Cognitive loyalty focuses on
the brand’s performance aspects, while affective loyalty is directed
toward the brand’s likeability. Conative loyalty is experienced
when the customer focuses on wanting to repurchase the brand
and, finally, action loyalty is a commitment to repurchase the
product or service.
Researchers often view loyalty not only in terms of repeat
purchasing (behavior), but also the customer’s attitudinal state of
intention towards repurchasing or re-patronizing (the likelihood of
a behavior) (Evanschitzky et al., 2006). In this respect, loyalty has
two distinct components: behavioral and attitudinal. Behavioral
loyalty is associated with actual customer behaviors in consump-
tion situations, which involves the measurement of past purchases
or the probability of future purchase behavior based on past
purchase behaviors (Ehrenberg, 1988). Attitudinal loyalty reflects
the customer’s psychological disposition toward the same brand or
organization, which is associated with a customer’s favorable
attitude (Dick and Basu, 1994; Fournier, 1998; Jacoby and
Chestnut, 1978). While behavioral loyalty captures cognitive
behavioral patterns based on customers’ past consumption
behaviors, attitudinal loyalty incorporates emotional attachments
and affective commitments generated by previous consumption
experiences. This study considered customer loyalty not just as the
customer’s behavior itself, but also the customer’s psychological
attitude toward the service organization. Accordingly, this study
applied an attitudinal conception of loyalty. Also, in this study,
attitudinal loyalty indicators, such as revisit intention, positive
word of mouth, and willingness to recommend, were adopted from
previous studies to measure customer loyalty (Mattila, 2001;
Evanschitzky et al., 2006).
2.5. Relationships between perceived quality and satisfaction/loyalty
The conceptual relationships among service encounter con-
structs, such as perceived quality, satisfaction, and behavioral
intentions, have been well documented (Cronin et al., 2000;
Taylor and Baker, 1994). Past empirical studies have evidenced a
direct link between perceived quality and satisfaction (e.g.,
Anderson et al., 1994; Cronin et al., 2000; Ueltschy et al., 2009) and
between perceived quality and behavioral intentions (e.g., Bell
et al., 2005; Bolton and Drew, 1991; Fullerton, 2005; Mohr and
Bitner, 1995).
Based on these theoretical foundations and empirical evi-
dences, a limited number of studies have also examined the effects
of service quality in restaurants (i.e. technical and functional
factors) on satisfaction and behavioral intentions. These studies
concluded that various components of restaurant service quality
function differently in terms of improving satisfaction and
behavioral intentions (Namkung and Jang, 2007; Liu and Jang,
2009). Along similar lines, this study attempted to identify which
components of quality significantly influence satisfaction and
loyalty. Thus, this study examined the relationship between
perceived quality and satisfaction and the relationship between
perceived quality and loyalty separately.
2.5.1. The relationship between perceived quality and customer
satisfaction
There has been some confusion in terms of the conceptualiza-
tion of quality and satisfaction. The most widely accepted
frameworks for understanding both constructs were derived
from the same theoretical foundation, the Expectancy-Disconfir-
mation theory. This theory defines quality and satisfaction in
terms of the magnitude of a customer’s disconfirmation (Baker
and Crompton, 2000). Given this definition, the two constructs
appear to be similar. However, several researchers have
attempted to distinguish between quality and satisfaction (e.g.
Dabholkar, 1995; Oliver, 1993). For example, Oliver (1993)
suggested that quality is primarily a cognitive response to the
product or service, but satisfaction involves both cognitive and
affective responses. Also, Johnson et al. (2001) claimed that
quality is a specific belief evaluation and satisfaction is a more
general evaluative construct.
Based on a general agreement in the literature that quality and
satisfaction are distinct, researchers have offered theoretical and
empirical evidence for the relationship between quality and
satisfaction (Cronin and Taylor, 1992; Gotlieb et al., 1994; Kim
et al., 2009), suggesting that quality is an antecedent of
satisfaction. This linkage is based on the appraisal-emotional
response-coping framework suggested by Bagozzi (1992). When
this framework is applied to service marketing contexts, it suggests
that customers’ cognitive quality evaluations lead to more emotive
satisfaction. Therefore, quality can be used as a key determinant to
predict overall customer satisfaction.
In a service context, service quality can be defined as having two
dimensions: functional service quality and technical service
quality (Grönroos, 1984). Functional service quality is associated
with the interactions between the customer and service provider
and between the customer and the processes through which the
service is delivered. Technical service quality refers to the quality
of the service output (Sharma and Patterson, 1999). In restaurant
settings, functional service quality relates to the employee’s
performance, whereas technical service quality is associated with
food quality. Previous studies have identified that these two
dimensions of quality perception (service quality and food quality)
have a positive relationship with customer satisfaction (Caruana
et al., 2000; Cronin et al., 2000; Namkung and Jang, 2007). Based on
these theoretical foundations and empirical studies, this study
proposed the following hypotheses:
Hypothesis 1. Service quality positively influences customer sat-
isfaction.
Hypothesis 2. Food quality positively influences customer satis-
faction.
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2.5.2. The relationship between perceived quality and customer
loyalty
According to Cronin and Taylor (1992) and Zeithaml et al.
(1996), quality is an attitude-like construct that drives behavioral
intentions. This suggests that when a customer’s quality assess-
ment is high, their behavioral intentions are likely to be more
favorable. Based on this rationale, several studies have found
evidence that quality perception is positively associated with
customers’ attitudes toward an organization and their likelihood of
remaining a customer (Bell et al., 2005; Anderson, 1998; Zeithaml
et al., 1996). For example, Parasuraman et al. (1988) reported a
positive and significant relationship between quality and willing-
ness to recommend an organization. Boulding et al. (1993) also
found a positive linkage between perceived quality and loyalty-
related behavioral intentions including repurchase intention,
positive word of mouth, and willingness to recommend. These
studies suggested that quality is the primary driver of customer
loyalty and loyalty-related behaviors.
Similar to the relationship between perceived quality and
satisfaction in restaurant service settings, two dimensions of
quality perception, service quality and food quality, play an
important role in customer loyalty (Bell et al., 2005). Previous
studies have identified a positive relationship between employee
service quality, customer loyalty and loyalty-related behaviors
(Chiou et al., 2002; Fullerton, 2005; Wong and Sohal, 2003;
Gonzalez et al., 2007). This relationship is based on the assumption
that service quality is a cognitively evaluated and attitude-like
construct that induces customer’s behavioral intentions (Cronin
and Taylor, 1992; Zeithaml, 1988). In addition, several studies
concluded that food quality is a critical factor influencing customer
loyalty and loyalty-related behaviors in restaurant settings. Clark
and Wood (1999) confirmed that food quality is the most
influential element of customer loyalty in terms of restaurant
choice. Namkung and Jang (2007) also found that food quality is a
significant component driving loyalty-related behaviors such as
revisit intention, spreading positive word of mouth, and willing-
ness to recommend to others. Thus, this study proposed the
following hypotheses:
Hypothesis 3. Service quality positively influences customer loy-
alty.
Hypothesis 4. Food quality positively influences customer loyalty.
2.6. Atmospherics and its moderating role
Kotler (1973) defined atmospherics as ‘‘the effort to design
buying environments to produce specific emotional effects in the
buyer that enhance his purchase probability.’’ Kotler further
asserted that atmospherics can be a marketing tool to induce
positive behaviors in consumption situations where products or
services are consumed. Mehrabian and Russell (1974) introduced
the atmospherics model (M–R model) into the environmental
psychology literature. The M–R model is based on the Stimulus–
Organism–Response paradigm, which suggests that the effect of
the environment (S) on approach-avoidance behaviors (R) is
mediated by the individual’s emotional response (O) to the
environment. Their conceptual framework posited that the
physical environment creates positive or negative emotions in a
customer that influence their impression formation regarding the
organization.
Researchers have empirically examined the relationship
between psychological responses to atmospherics and consumer
behaviors (Bitner, 1992; Donovan et al., 1994; Mattila and Wirtz,
2001; Wakefield and Blodgett, 1994; Ryu and Jang, 2007, 2008). For
example, Bitner (1992) developed a conceptual framework
523
describing three dimensions of physical environments in service
settings, such as ambient conditions, space/function, and signs/
symbols/artifacts. Donovan and his colleagues (1994) tested the
impact of shopping environments on shopping behaviors and
found that pleasant environments lead to spending extra time and
unplanned shopping. Wakefield and Blodgett (1994) also assessed
the effect of consumers’ perceptions of atmospherics on their
satisfaction and re-patronage intention levels in leisure service
settings. More recently, Ryu and Jang (2008) created a dining-
specific atmospheric scale and labeled it DINESCAPE. Also, using
DINESCAPE, Ryu and Jang (2007) evidenced the impacts of dining
environments on behavioral intentions through emotions. These
empirical studies have suggested that a positive perception of
atmospherics can produce more positive emotions, which leads to
positive beliefs about the organization and its services or products.
Furthermore, several studies identified that the physical
environment of a service setting can be used as a clue as to what
to expect and a basis for judging the quality of a restaurant,
suggesting that the service environment has a major influence on a
customer’s inferences about quality (Rys et al., 1987; Parasuraman
et al., 1988; Baker et al., 1994; Wall and Berry, 2007). Rys et al.
(1987) concluded that environmental components were the most
critical cues when customers judge restaurant quality. Parasura-
man et al. (1988) identified that elements of the physical
environment, such as visually appealing facilities or up-to-date
equipment, were key components of customers’ perceptions of
quality. Baker et al. (1994) also found that environmental factors
provide information that customers use to infer quality and store
image. Wall and Berry (2007) identified the effects of the physical
environment on customer perceptions of restaurant service
quality. These empirical studies suggested that the physical
environment influences customer’s perceptions of quality because
these environmental factors are part of the consumption experi-
ence.
Although atmospherics play an important role during custo-
mers’ dining experiences, environmental elements also have the
ability to influence customers before they even experience the
actual performances of service providers or service outputs, such
as food. Bitner (1990) proposed that environmental factors can
affect customers’ perceptions of the performance of service
providers, as well as customers’ expectations regarding quality.
Zeithaml et al. (1993) indicated that customers often use tangible
elements as cues for the level of quality to expect before actual
consumption behaviors occur. In addition, several studies indicat-
ed that the physical environment plays a role in creating a
customer’s pre-consumption mood before the actual service is
delivered (Mattila and Wirtz, 2001; Namasivayam and Mattila,
2007), suggesting that atmospherics can positively or negatively
influence mood.
A customer’s mood, which is triggered by the atmospherics,
further influences expectations about quality and impression
formation regarding the specific consumption experience. Hence,
the effects of actual service quality or food quality on satisfaction
and loyalty could vary depending on the psychological state
evoked by the physical environment. As explained earlier, if a
customer’s perception of a restaurant environment is high, then
their impression of the restaurant becomes more favorable even
before assessing the quality of foods and services provided by the
restaurant. In this case, providing good service and food may
improve customer satisfaction or loyalty-related behaviors when
compared with a low perception of the atmospherics. However,
due to higher expectations based on the good impression made by
the physical environment, even good service/food quality might
not meet customers’ heightened expectations. Accordingly, this
may ultimately lead to lower satisfaction and behavioral inten-
tions. That is, it could be hypothesized that the pre-consumption
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mood created by the physical environment can either enhance or
attenuate the impact of service and food quality on outcome
variables such as satisfaction or loyalty. ‘Pre-consumption mood’
was defined in this study as the mood created by perceived
atmospherics after entering the restaurant but before experiencing
actual services. In order to clearly understand the role of
atmospherics in the relationship between quality and customer
satisfaction/loyalty, the following hypotheses were proposed:
Hypothesis 5. Atmospherics moderates in the relationship be-
tween service quality and customer satisfaction.
Hypothesis 6. Atmospherics moderates in the relationship be-
tween food quality and customer satisfaction.
Hypothesis 7. Atmospherics moderates in the relationship be-
tween service quality and customer loyalty.
Hypothesis 8. Atmospherics moderates in the relationship be-
tween food quality and customer loyalty.
3. Methodology
To empirically test the proposed hypotheses, this study
collected data through a web-based survey. The survey was
conducted by an online marketing research company in the U.S.
The company distributed the survey questionnaire to their panel
members who had dined at a casual-dining Korean restaurant. The
online survey form was distributed to 3,000 American customers
in the U.S. and 607 usable responses were collected. The response
rate was 20.23%, which is an appropriate level for web-based
surveys (Couper, 1999; Schaefer and Dillman, 1998; Schuldt and
Totten, 1994).
The survey questionnaire consisted of several sections focused
on atmospherics, service quality and food quality, satisfaction,
loyalty, and demographic information. The survey included 17
questions and took approximately three to five minutes for
participants to complete. To measure the affective evaluation of
atmospherics at Korean restaurants, respondents were asked to
rate their perception of the atmospherics. Baker (1986) proposed
three dimensions of atmospherics: ambient factors (e.g., music,
lighting), design factors (e.g., displays, layout), and social factors
(e.g., salespeople). In this study, interior design and layout were
considered design factors, and music and mood were considered
ambient factors. However, social factors were not included as part
This study defined food quality as the quality of features
associated with food that is acceptable to customers. As stated in
the literature review section regarding food quality, previous
studies have included several items for food quality. Hence,
measurement items to assess food quality, which included taste,
food portion, menu variety, and healthy food options, were
borrowed from previous studies (Kivela et al., 2000; Raajpoot,
2002; Namkung and Jang, 2007). The next section of the survey
was designed to examine customer satisfaction regarding dining
experiences at Korean restaurants. The measurement items were
slightly modified from Carpenter’s study (2008). As for customer’s
outcome behaviors, loyalty was measured using revisit intention,
positive word of mouth, and willingness to recommend, which
were taken from Mattila (2001) and Evanschitzky et al. (2006). All
question items used in this study were measured on a 7-point
Likert-type scale (1 = strongly disagree and 7 = strongly agree).
Before the questionnaire was finalized, a professional in the
hospitality industry and two professors who are familiar with the
subject of this study reviewed the questionnaire to assure content
validity. Minor revisions regarding the measurement items were
made based on their suggestions.
For further analysis, respondents were split into two groups
based on their perception of the atmospherics. In order to analyze
the data using constructs that included several items, a factor score
was used for each construct. Descriptive information regarding the
constructs used for all respondents, as well as the high- and low-
perception of atmospherics groups, is reported in Table 1.
In order to test the moderating effect of customers’ perceptions
of atmospherics, as well as the effects of service quality and food
quality on satisfaction and loyalty, hierarchical regression analyses
were performed. Specifically, this study tested the moderating
effects of restaurant atmospherics on the relationships between
service quality and satisfaction/loyalty and on the relationships
between food quality and satisfaction/loyalty. To test the
moderating effects, respondents were split into two groups using
a factor score for perception of atmospherics. Thus, respondents
with a factor score of less than zero were assigned to the group
with a lower perception of the atmospherics and those with a
Table 1
Descriptive information for constructs.
Constructs All respon- High PA Low PA
(Cronbach’s alpha) Items dents group group

of the atmospherics because this study was focused solely on the Mean SD Mean SD Mean SD
physical environment. Thus, atmospherics items included interior Atmospherics (0.87) 4.29 1.24 5.29 0.69 3.37 0.87
design, music, mood, and layout/facilities aesthetics, which were Interior design
borrowed from previous studies (Baker et al., 2002; Sayed et al., Korean music
2003; Ryu and Jang, 2007, 2008; Jang and Namkung, 2009). Mood
Layout/facilities aesthetics
In the next section, respondents evaluated service quality and
food quality at Korean restaurants. The service quality items were Service quality (0.84) 5.1 1.16 5.58 0.95 4.67 1.16
adopted from DINESERV (Stevens et al., 1995), but were slightly Service reliability
Service responsiveness
modified to fit the Korean restaurant situation. Although Service assurance
DINESERV involves five dimensions of service quality, this study
Food quality (0.89) 5.29 1.13 5.73 0.86 4.88 1.19
excluded ‘tangibility’, which is an environmental aspect, in order
Taste
to more effectively differentiate service quality from atmospher- Food portion
ics. Also, ‘empathy’, which is sharing emotions between custo- Menu variety
mers and service providers, was not included because this study Healthy food option
focused on cognitive aspect of services provided by service Satisfaction (0.97) 5.37 1.24 5.89 0.89 4.87 1.32
providers and the restaurant. Thus, service quality items included Happiness
only services provided by employees. Items include, ‘‘The Korean Contentedness
restaurant serves your food exactly as you ordered it’’ (Service Overall satisfaction

reliability), ‘‘The Korean restaurant provides prompt and quick Loyalty (0.94) 5.28 1.38 5.86 0.94 4.74 1.51
service’’ (Service responsiveness), and ‘‘The Korean restaurant has Revisit intention
employees who can thoroughly answer your questions’’ (Service Positive word of mouth
Recommendation
assurance).
 J. Ha, S.C.S. Jang / International Journal of Hospitality Management 29 (2010) 520–529 525

Table 2
The results of a hierarchical regression analysis for Hypotheses 1, 2, 5, and 6.

Independent variable Variable in each step Standardized coefficients R2 R2 change F p-Value

Service quality Step 1 0.630 1030.946 0.000***

SQ 0.794
Step 2 0.642 0.012 541.970 0.000***
SQ 0.784
AT 0.119
Step 3 0.645 0.002 364.621 0.041**
SQ 0.790
AT 0.125
SQ  AT 0.067

Food quality Step 1 0.515 642.747 0.000***

FQ 0.718
Step 2 0.539 0.023 352.443 0.000***
FQ 0.656
AT 0.164
Step 3 0.541 0.003 237.361 0.050*
FQ 0.696
AT 0.174
FQ  AT 0.070

Note: SQ: service quality, FQ: food quality, AT: perception of atmospherics.
*
p < 0.1.
**
p < 0.05.
***
p < 0.01.

factor score of greater than zero were assigned to the group with a
higher perception of the atmospherics. In the hierarchical
regression analyses, an independent variable was entered in the
first step and a moderating variable was entered in the second step.
The interaction term was added to the model as the third step. If
the interaction term was significant, it could be determined that
customers’ perceptions of atmospherics had a moderating effect
(Cohen and Cohen, 1983). The model can be specified as follows:
Y ¼ b0 þ b1 X 1 þ b2 D þ b3 X 1  D þ e;
where Y is customer satisfaction or loyalty, X1 represents service
quality or food quality, D is a dummy variable for perception of
atmospherics (i.e., 1: high perceived atmospherics group and 0:
low perceived atmospherics group), X1  D is the interaction
between service/food quality and perceived atmospherics, bi
represents regression coefficients, and e is an error term.
4. Findings and discussion
4.1. Sample profile
Demographic information about the sample for this study
showed that 44.8 percent were male and 55.2 percent were female.
The mean age was 37.7 years, and the majority of respondents
were between 20 and 49 years old (76.3 percent). Caucasian
Americans accounted for 46.3 percent (n = 281) of the sample,
which was the largest racial category among respondents. The rest
of the respondents were Hispanic/Hispanic American (19.3
percent, n = 117), African American (18.1 percent, n = 110),
Asian/Asian American (14.8 percent, n = 90), and other (1.5
percent, n = 9). Also, 90% of the respondents had visited a Korean
restaurant between one and four times. In this study we defined
‘ethnic food’ as ‘foods from other countries that an individual does
not eat on a regular basis.’ Thus, it was important for the objectives
of the study that respondents were not overly familiar with Korean
restaurants. Accordingly, given the likelihood that Koreans and
Korean Americans may experience Korean foods quite often and
not consider them an ethnic food as it is defined in the study, these
populations were excluded from data collection. More than half
(56.7 percent) of the respondents’ annual household incomes were
between $20,000 and $59,999. Regarding education levels, 65.6
percent of the respondents had at least a Bachelor’s degree.
4.2. Results of hierarchical regression analyses
4.2.1. Quality and customer satisfaction
Table 2 shows the main effects of service quality and food
quality on customer satisfaction and the moderating effect of
atmospherics on the relationships between service quality/food
quality and customer satisfaction. In this procedure, Hypotheses 1,
2, 5, and 6 were tested.
As a result of the first step of hierarchical regression analyses,
service quality and food quality were found to directly influence
customer satisfaction, supporting Hypotheses 1 and 2. These
results indicated that higher quality service and food produces
more satisfied customers in Korean restaurants, which is consis-
tent with previous studies identifying the relationship between
perceived quality and customer satisfaction (Baker and Crompton,
2000; Cronin et al., 2000; Namkung and Jang, 2007; Oliver, 1996;
Olsen, 2002). This finding suggests that the service quality
provided by employees and food quality (e.g., taste, menu variety,
and healthy food options) are fundamental and critical factors for
customer satisfaction in the restaurant business. The second step
of the analyses showed the direct effect of atmospherics on
customer satisfaction. Perceived atmospherics were found to
directly affect customer satisfaction.
Interaction terms between quality (service quality and food
quality) and perceived atmospherics (PA) were estimated in the
third step of the analyses. Both interaction terms were significant,
supporting Hypotheses 5 and 6. The results revealed that the
perceived atmospherics of Korean restaurants play a moderating
role in the relationships between service quality and satisfaction and
between food quality and satisfaction. It is also important to note
that the standardized coefficients of the interaction terms were
negative. To understand the negative sign in the moderating effect of
atmospherics, a more detailed investigation was necessary.
In order to further understand this moderating role, linear
regression lines are graphically plotted in Figs. 1 and 2. The
relationships between service quality and customer satisfaction
are drawn separately for the high and low perceived atmospherics
(PA) groups, respectively. As shown in Fig. 1, for all levels of service
quality, customers in the high PA group had consistently higher
levels of satisfaction than customers in the low PA group. This
suggests that in comparison to low quality atmospherics, high
quality atmospherics in Korean restaurants would be useful in
526 J. Ha, S.C.S. Jang / International Journal of Hospitality Management 29 (2010) 520–529

quality more effectively increases customer satisfaction levels in

customers with low PA than for customers with high PA.
These results do not mean that service quality and food quality
are not critical for increasing customer satisfaction in restaurants
with quality atmospherics, but the results revealed that high
quality service and food can significantly enhance the satisfaction
level of customers who have a higher perception of the
atmospherics. Also, providing better quality service and food
can improve customer satisfaction levels even in unsatisfactory
dining environments. Therefore, providing quality service and food
could be a good business strategy for ethnic restaurants where the
physical environment is not satisfactory. This finding provides a
Fig. 1. Moderating role of atmospherics for service quality and customer meaningful message for ethnic restaurants where additional
satisfaction.
investments to upgrade the dining atmosphere are not possible.

4.2.2. Quality and loyalty

Fig. 2. Moderating role of atmospherics for food quality and customer satisfaction.
increasing customer satisfaction. However, it was also revealed
that when service quality is low, the difference in customer
satisfaction between the high PA group and the low PA group was
prominent. As the level of service quality increased, the difference
in satisfaction between the high and low PA groups dramatically
diminished. In other words, the slope of the low PA line was steeper
than that of the high PA line, indicating that when better quality
service is provided the satisfaction of customers in the low PA
group increased more rapidly than in the high PA group. As shown
in Fig. 2, the exact same pattern was found in the relationship
between food quality and customer satisfaction. Overall, atmo-
spherics are important in enhancing the effect of food quality on
customer satisfaction. However, the slope of the low PA line was
steeper than that of the high PA line in the relationship between
food quality and satisfaction. This finding indicates that food
Table 3 shows the direct effects of service quality and food
quality on customer loyalty and the moderating effect of
atmospherics on the relationships between quality (service/food
quality) and loyalty. In this procedure, Hypotheses 3, 4, 7, and 8
were tested. The main impacts of service quality and food quality
on loyalty were investigated in step 1. The results indicated that
both service quality and food quality significantly and positively
influenced customer loyalty, supporting Hypotheses 3 and 4.
Similar to the impact of quality on customer satisfaction, both
service quality and food quality were important factors of
customer loyalty. The second step of the analyses examined the
direct effect of atmospherics on customer loyalty. This step showed
that customer perceptions of atmospherics directly influenced
loyalty.
Interaction terms between quality (service quality and food
quality) and atmospherics were estimated in the third step of the
analyses. As a result, only the interaction term for service quality
and the perception of atmospherics was significant, supporting
Hypothesis 7. This result showed that the atmospherics of Korean
restaurants had a moderating effect on the relationship between
service quality and customer loyalty. It is also noteworthy that the
standardized coefficient of the interaction term was negative,
suggesting a need to further examine this moderating role.
In order to further understand the moderating effect, this study
also plotted the linear regression lines of the high- and low-
perception of atmospherics groups. As shown in Fig. 3, customers
in the high PA group revealed a higher level of loyalty at any level of
service quality than customers in the low PA group. These results

Table 3
The results of a hierarchical regression analysis for Hypotheses 3, 4, 7, and 8.

Independent variable Variable in each step Standardized coefficients R2 R2 change F p-Value

Service quality Step 1 0.408 417.080 0.000***

SQ 0.639
Step 2 0.436 0.028 233.083 0.000***
SQ 0.569
AT 0.180
Step 3 0.439 0.004 157.453 0.048**
SQ 0.620
AT 0.188
SQ  AT 0.082

Food quality Step 1 0.471 538.754 0.000***

FQ 0.686
Step 2 0.496 0.025 296.675 0.000***
FQ 0.623
AT 0.169
Step 3 0.496 0.001 197.806 0.467
FQ 0.639
AT 0.172
FQ  AT 0.027

Note: SQ: service quality, FQ: food quality, AT: perception of atmospherics.
*p < 0.1, **p < 0.05., ***p < 0.01.
 J. Ha, S.C.S. Jang / International Journal of Hospitality Management 29 (2010) 520–529
Fig. 3. Moderating role of atmospherics for service quality and loyalty.
indicated the importance of atmospherics in ethnic restaurants,
such as Korean restaurants, for creating loyal customers. Echoing
the previously noted findings on satisfaction, when service quality
was low, the difference in the loyalty levels between the high and
low PA groups was large, but as the level of service quality
increased the difference in loyalty between the high and low PA
groups reduced noticeably. In other words, the slope of the low PA
line was steeper than that of the high PA line. This finding indicated
that when better service quality is provided customer loyalty
levels increase more rapidly, even in ethnic restaurants where
atmospherics are not satisfactory. Therefore, providing good
employee service is essential to induce customer loyalty in ethnic
restaurants that do not have enough financial resources for
atmospheric renovations.
On the other hand, the interaction term for food quality and
atmospherics was not significant, which did not support Hypoth-
esis 8. This finding suggested that regardless of the atmospherics
level, food quality consistently improves customer loyalty. This
indicated that the effect of food quality on customer loyalty is not
moderated by a customer’s perception of the atmospherics.
Therefore, providing better quality food is equally important
and effective in improving customer loyalty in both high PA and
low PA situations.
5. Summary and conclusion
This study examined the direct effects of service quality and
food quality on customer satisfaction and loyalty, as well as the
moderating effect of atmospherics, in the Korean restaurant
segment. Overall, this study found that customers’ perceptions of
quality positively influenced customer satisfaction and loyalty in
Korean restaurants, as expected. This study also discovered that
the effect of ethnic restaurants’ service and food quality on
satisfaction and loyalty can differ depending on how the physical
environment of the restaurant is perceived.
This study uniquely contributes to the literature in the sense that
it examined atmospherics as a moderator in the relationship
between perceived quality and customer satisfaction/loyalty. In
previous studies perceived atmospherics and perceived quality have
been considered to have a direct impact on consumer behaviors
based on Mehrabian and Russell’s model (e.g., Baker et al., 1994;
Wakefield and Blodgett, 1994; Wall and Berry, 2007). Recently, Jang
and Namkung (2009) investigated customers’ emotions and
behavioral intentions by extending the Mehrabian–Russell model,
in which perceived product quality and service quality were also
considered as stimuli together with atmospherics. However, this
study provided a different view from previous studies in terms of the
role of atmospherics associated with perceived quality and
satisfaction/behaviors. This study uniquely explains the role of
atmospherics in creating customer’s moods before the actual service
is provided and also identifies how the pre-consumption mood
created by atmospherics ultimately moderates the relationship
527
between perceived quality and its outcome variables, such as
satisfaction and loyalty. The findings of this study suggested that
before a customer actually experiences employee services and food
in restaurants, perceived atmospherics plays a significant moderat-
ing role that can change the degree of impact of quality perception
on consumption behaviors. This finding extends the existing
literature regarding the role of atmospherics in service settings
and provides a new view point for the linkage among atmospherics,
quality perception, and behaviors.
This study has managerial implications as well. One of the most
important findings of this study supported the hypothesized
positive links among quality (service and food quality), satisfac-
tion, and loyalty, confirming previous studies which concluded
that quality is a key determinant of customer satisfaction and
loyalty (e.g., Cronin and Taylor, 1992; Boulding et al., 1993). These
findings suggest that regardless of the physical environment,
providing better quality service and food is critical to induce
customer satisfaction and loyalty. In addition, the moderating role
of a customer’s psychological response to the atmospherics was
identified. Our study suggested that service quality and food
quality can differently influence customer satisfaction and loyalty
based on the customer’s perception of the atmospherics. The
results regarding the moderating role of atmospherics provide a
positive message for ethnic restaurants that cannot renovate their
dining environment due to financial difficulties. Providing better
quality service and food can quickly improve the satisfaction level
of customers with a low perception of the atmospherics.
Practically, owners of small Korean restaurants whose financial
resources are limited should pay more attention to reliable and
prompt service and high quality food, including great tasting food,
a varied menu, and healthy options, instead of relatively higher
investments for better dining environments. The moderating effect
of a customer’s perception of atmospherics also existed in the
relationship between service quality and customer loyalty. These
results suggested that better service quality can be effective for
inducing loyalty-related behaviors in customers with a relatively
low perception of the atmospherics.
However, it is also important to note that absolute levels of
satisfaction and loyalty were higher when customers had a higher
perception of the atmospherics. In other words, customers are
more satisfied and have a greater possibility of becoming loyal
customers in Korean restaurants where the atmospherics are
satisfactory. These findings suggest that atmospherics is a critical
factor for customer satisfaction and loyalty. Thus, if financial
resources are available, it is imperative to create a nice dining
environment at Korean restaurants in order to have a higher
chance of customer satisfaction and, ultimately, loyalty.
In sum, environment is one important factor influencing
customers’ emotions, and customers’ perceptions of the atmo-
spherics affect the relationship between quality perception and
satisfaction and loyalty. When customers evaluate the atmospher-
ics of a restaurant highly, the positive mood created by the
atmospherics can enhance the effect of perceived quality on both
satisfaction and loyalty. Therefore, the physical environment can
play an important role in creating favorable emotions before any
actual service is provided, which in turn enhances the relationship
between quality and satisfaction and/or loyalty. These results
supported the importance of atmospherics as an effective
marketing tool for the Korean restaurant segment.
The results of the current study provide a different perspective
for understanding the effects of quality (including technical,
functional, and environmental factors) on customer satisfaction
and loyalty. Unlike previous studies that considered environmen-
tal factors as a component of service quality (e.g., Berry et al., 2002;
Caruana et al., 2000), this study suggested that different quality
dimensions, such as service quality, food quality, and environ-
528 J. Ha, S.C.S. Jang / International Journal of Hospitality Management 29 (2010) 520–529
mental factors, can complement each other and lead to customer
satisfaction and loyalty-related behaviors. The findings of this
study essentially provide baseline information for effective
restaurant marketing strategies for ethnic restaurants, particularly
Korean restaurants.
Despite the unique contributions this study makes, it is not free
from limitations. For example, even though customers from
different ethnic backgrounds may respond differently to the
changes of the constructs that were tested, this study did not
control for ethnic backgrounds. Consequently, this would be a good
subject for future research. In addition, although most respondents
did not visit Korean restaurants very often, a customer’s familiarity
with a restaurant may slightly influence the perception of
atmospherics. Since atmospherics are tied to the more hedonic
aspects of the dining experience, familiarity with them may change
a customer’s perception. In order to further fine-tune the results,
future studies need to consider the customer’s familiarity level
with the restaurant to further verify the role of the perception of
atmospherics in restaurant settings. Further, participants had to
respond to the survey questions based on their memories. The time
period between visiting the restaurant and taking the survey could
influence the accuracy of their memories regarding the dining
experience, which might cause a memory bias. Further, this study
considered only casual-dining Korean restaurants. Since dining
environments may differ depending on the level of the segment, if
the study is conducted in a different restaurant segment, such as
fine dining or fast food segment, the relationship among the
constructs of this study might be different. Thus, it would be
meaningful to examine the role of atmospherics in other restaurant
segments.
Finally, in order to provide more information about the
role atmospherics play in influencing individual’s attitudes
and/or behavioral changes, future studies may want to utilize
the Elaboration Likelihood Model (ELM) from related environ-
mental psychology research. ELM explains how attitudes or
behaviors are formed and changed through two routes of
persuasion in the choice situation; central route and peripheral
route (Petty and Cacioppo, 1986). When considering how
customers in service contexts use atmospherics as a peripheral
cue to infer quality, ELM could provide more practical
implications about the role of atmospherics in terms of
consumer choice.
Appendix A
Construct Measurement items
Atmospherics Interior design of the Korean restaurant made me feel
Korean culture.
Korean music played in the restaurant entertained me.
Mood of the Korean restaurant was great.
Layout and facilities aesthetics of the Korean restaurant were
fun and unique to me.
Service quality The Korean restaurant serves food exactly as I ordered it.
The Korean restaurant provides prompt and quick service.
The Korean restaurant has employees who can answer my
questions well.
Food quality The food I had was tasty, so I enjoyed it.
Food portion in the Korean restaurant was enough, satisfying
my hunger.
I liked a variety of menu choices in the Korean restaurant.
I liked healthy food options in the Korean restaurant.
Satisfaction I was happy with the dining experience in the Korean
restaurant.
I was contented with the dining experience in the Korean
restaurant.
Overall, I was satisfied with the dining experience in the
Korean restaurant.
Appendix A (Continued )
Construct Measurement items
Loyalty I would like to dine out in this Korean restaurant again.
I would like to spread positive things about this Korean
restaurant to others.
I would like to recommend this Korean restaurant to others.
Note: All items were measured on 7 Likert scale: 1 (strongly disagree) to 7 (strongly
agree).
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