Abstract
The purpose of this study was to understand the interrelationships among customers'perceived values, switching cost, and loyalty to a family restaurant. Based on 328 patrons obtained from empirical research, this study reviewed the reliability and fitness of a research model and verified three hypotheses using the Amos program. The hypothesized relationships were tested in the model simultaneously using a structural equation model (SEM). The proposed model provided an adequate fit to the data, <TEX>$x^2$</TEX>=341.01 (df=154), p<0.001, CMIN/df 2.21, GFI 0.91, NFI 0.94, IFI 0.97, TLI 0.96, CFI 0.97, RMSEA 0.06. The results showed that utilitarian values (<TEX>${\beta}$</TEX>=0.27) as customers' perceived values elements in a family restaurant, had a positive (+) influence upon switching cost. Switching cost had a significant positive (+) effect on the behavioral loyalty (<TEX>${\beta}$</TEX>=0.16) and attitudinal loyalty (<TEX>${\beta}$</TEX>=0.16). Hedonic values (<TEX>${\beta}$</TEX>= 0.41) and utilitarian values (<TEX>${\beta}$</TEX>=0.26) had a positive (+) influence on customer's behavioral loyalty. Additionally, a customers hedonic values (<TEX>${\beta}$</TEX>= 0.30) and utilitarian values (<TEX>${\beta}$</TEX>=0.32) had a significant positive (+) effect on attitudinal loyalty. Limitations and future research directions are also discussed.
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