The Impact of Restaurant Innovativeness on Consumer Loyalty: The Mediating Role of Perceived Quality

Abstract

Although hospitality industry has consistently invested resources in innovation, the path by which a brand’s innovativeness influences consumers’ loyalty remains unclear. The purpose of this study is to establish a research model that represents the relationships of customers’ perceived restaurant’s innovativeness at brand level, perceived quality, and levels of loyalty. Specifically, five subdimensions (differentiation, dynamic brand, innovativeness brand, new leader, and idea generator) measure restaurant’s innovativeness at brand level. Perceived quality consists of the food and service aspects. The result shows that among brand innovativeness, differentiation predicts better loyalty whereas dynamic brand, innovativeness brand, new leader, and idea generator are less effective, with mediating effects of food quality and service quality. This outcome potentially expands the theoretical foundation of brand innovativeness in the hospitality discipline, while providing a promising marketing approach that empowers patrons with brand innovativeness through differentiation.