Service Value and Repurchase Intention in the Egyptian Fast-Food Restaurants: Toward a New Measurement Model

Abstract

Service value is a crucial dominant indicator in customer decision-making. However, there is a lack of hospitality literature that investigates the multi-dimensional service value in emerging markets. Thus, this study aims to create a multi-dimensional scale for service value and to analyze how different service value dimensions affect customers repurchase intentions at fast-food restaurants. We make a conceptual framework with eight constructs, including service value and repurchase intention. A self-administrated questionnaire is used to gather empirical data from fast-food restaurant customers in Egypt. We employ confirmatory factor analysis to extract the model’s reliability and validity. Moreover, we use a structural equation model to extract the model regressions and correlations using AMOS software. We find that each of the eight proposed service value variables impacts fast-food restaurant customers’ repurchase intention. However, the factors that strongly influence customers’ preferences to make more purchases are service equity, confidence benefits, service quality, and service reputation. We contribute to the literature on hospitality customer value and repurchasing intentions by presenting a comprehensive multi-dimensional service value framework that affects customers’ repurchase intentions in fast-food restaurants. Practically, eight service value variables can help managers of fast-food restaurants meet customer needs and gain a competitive advantage. We suggest many crucial recommendations to restaurant managers regarding the priority of the service value constructs. For example, managers should consider service equity, service quality, and service reputations as a priority of the restaurant service value.