Abstract

ABSTRACT The customer engagement value plays a vital role in the service industry. This study aims to explain how the customer engagement value occurs through restaurants using the stimulus-organism-response approach (S-O-R), based on environment-related dimensions (i.e. physical environment), brand-related feelings (i.e. love), and customer experience. 685 respondents were surveyed online, and data were analysed through structural equation modeling. The research findings show that physical environment positively affects brand love, brand love positively affects customer engagement value dimensions and also mediates the relationships between physical environment and customer engagement value, and customer experience moderates the relationship between physical environment and brand love. Restaurants can utilize our results to gain customer engagement value by creating love toward their brands through the physical environment; moreover, future research can further develop the customer engagement value theory and approach in light of our results.

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