The Impact of Perceived Physical Environments on Customers' Satisfaction and Return Intentions

Abstract

ABSTRACT The purpose of this research was to investigate the impact of physical environments on customer satisfaction and their subsequent return intentions within a service industry. Drawing from data collected from spectators at three Midwestern Conference ice hockey arenas, the effects of physical environment on customer satisfaction, the effect of customer satisfaction on their return intentions, and the direct relationship between the perceptions of physical environments and customers' return intentions were investigated. Structural equation modeling (e.g., LISREL) was employed to test the causal relationships among the hypothesized relationships. Based on customer surveys, the findings are that physical environments had a significant effect on customer satisfaction, and customer satisfaction, in turn, plays a significant role in determining customer's return intentions. Physical environments, however, did not have a significant effect on customers' return intentions.