AN EMPIRICAL STUDY ON THE

RELATIONSHIP BETWEEN
PHYSICAL ENVIRONMENT AND
CUSTOMER SATISFACTION IN THE
MALAYSIAN RESTAURANTS
 ‘INTRODUCTION

• Restaurant industry is an
interpersonal market
• Its physical evidence is relatively
important
– Will influence the customer’s experience
throughout the duration of the service
encountered
 ‘INTRODUCTION

“The great need for further research into

the subject of optimal atmosphere
since servicescapes may (in the
future” become the chief form of
competition”

Hoffman et al. (2006)

 ‘INTRODUCTION

• However, the conflicts appear when the

practical in real business would seem
different with the theories and concepts
studied.
• To our knowledge, there are little empirical
studies on this topic, especially in
Malaysia.
 ‘INTRODUCTION

The objectives of this study are:

• To examine the relationship between
physical environment and customer
satisfaction, particularly in the dimensions of
colour, lighting, music, layout, architecture,
temperature and odour; &
• To identify the strongest physical
environment factors affecting customer
satisfaction.
 ‘CONCEPTUAL BACKGROUND

Colour
• The colour of a firm’s physical evidence
often makes the first impression.
• Colour seems to be able to influence
human physiological responses and
moods (Hoyer & Maclnnis (2007).
• H1:Colour of the restaurant affects
customer satisfaction
 ‘CONCEPTUAL BACKGROUND

Lighting
• Lighting can set the mood, tone and pace
of the service encounter.
• H2:Lighting of the restaurant affects
customer satisfaction
 ‘CONCEPTUAL BACKGROUND

Music
• Background music enhances the
consumer’s perception of the store
atmosphere
• It directly influences consumer purchase
behaviour
• H3:Music of the restaurant affects
customer satisfaction
 ‘CONCEPTUAL BACKGROUND

Layout
• Service firms should plan their facility layout
properly by taking the customers’ physical and
psychological needs and expectations into
account.
• Layout and service facilities could encourage
communication and customer participation
(Heide & Grŏnhaug (2006).
• H4:Layout of the restaurant affects customer
satisfaction
 ‘CONCEPTUAL BACKGROUND

Temperature
• Temperature can damage a favourable
atmosphere.
• Warm environmental temperature will
decrease food intake and vice versa
(Stroebele & De Castro, 2004).
• H5:Temperature of the restaurant affects
customer satiisfaction
 ‘CONCEPTUAL BACKGROUND

Architecture
• Firm’s architecture conveys numerous
impressions and transforms information
to its customers (Hoffman & Bateson,
2006)
• H6:Architecture of the restaurant affects
customer satisfaction
 ‘CONCEPTUAL BACKGROUND

Odour
• Odour/scent/smell produces physiological
and emotional outcomes.
• It influences consumer’s behaviours
(Stroebele & De Castro, 2004).
• H7:Odour of the restaurant affects
customer satisfaction
 METHODOLOGY - SAMPLE

• Population: Dining customer of selected

restaurants in Johor Bahru, Malaysia.
• 150 questionnaires were usable for data analysis
• The sample shows that male (56.7%)
respondents were slightly higher than female
(43.3%) respondents
• More than 80 percent of the respondents were
single (82.7%)
• Majority of the respondents were earning below
RM1,500 per month (67.3%)
 METHODOLOGY - MEASUREMENT

• The Cronbach’s alpha for colour,

lighting, music, layout, architecture,
temperature and odour and customer
satisfaction were 0.80, 0.81, 0.88, 0.68,
0.85, 0.79, 0.88 and 0.66 respectively,
which show the variables had
acceptable reliabilities.
 ‘METHODOLOGY – STATISTICAL METHOD

• Pearson correlation analysis was

conducted to indicate the strength and
significance of bivariate relationships.
• Stepwise multiple regression analysis was
performed to test the relationship between
the customer satisfaction and seven
independent variables: colour, lighting, music,
layout, architecture, temperature and odour.
 RESULTS
• Pearson correlation

** Correlation is significant at the 0.01 level (2-tailed).

* Correlation is significant at the 0.05 level (2-tailed).
 RESULTS

• Stepwise multiple regression

Physical Environment Customers’
Dimensions satisfaction
Beta (β)

Colour 0.404**
Architecture 0.293**
Adjusted R2 0.311

**p-value<0.01
 ‘DISCUSSIONS

• Colour has the strongest positive

significance influence corroborates
with Hoyer and Maclnnis’s (2007) notes.
• Practical implication
– It is a paramount importance for the
Malaysian restaurateurs to emphasise on
their architecture which could help to
attract their intended target market.
 ‘DISCUSSIONS

• Architecture has also affected

customer satisfaction positively.
• Practical implication
– It is also vital for the Malaysian
restaurateurs to focus on the space design
of their physical facility to attract their
intended target market as well as to
transform information to their customers.
 ‘CONCLUDING REMARKS

The restaurateurs have to utilise their

physical evidence, specifically in the
areas of colour and architecture to build
service environment that appeal
pleasure, arousal states and providing a
dominance service environment in order
for their customers to feel satisfied on
the services encountered.
 ‘LIMITATIONS & SUGGESTIONS

The design of the questionnaire -

Respondents who do not know English
language were found to have difficulties
in answering the questionnaires
• Should translate the questionnaires into other
languages (e.g., Malay and Chinese languages)
to enable some respondents to answer the
questions more effectively
 ‘LIMITATIONS & SUGGESTIONS

Some important determinants reported in

the literature are not included in this
study.
• Should consider other determinants of
customer satisfaction (e.g., price, promotion,
place, etc) towards service provided in the
future study.
THANK YOU
&
Q&A