PROCEEDINGS OF THE INTERNATIONAL CONFERENCE ON

NATURAL RESOURCES, TOURISM AND SERVICES

MANAGEMENT 2015

EDITORS:

MAZLINA MAHDZAR, SIOW MAY LING,

MADHAVAN BALAN NAIR & AHMAD SHUIB

Universiti Putra Malaysia

Serdang 2015

 Universiti Putra Malaysia 2015

First Print 2015

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Proceedings of The International Conference on Natural Resources, Tourism And Services

Management 2015/
editors Mazlina Mahdzar, Siow May Ling, Madhavan Balan Nair & Ahmad Shuib

Published in Malaysia by
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PREFACE
This joint international conference focuses on a wide range of social science and natural resource
disciplines, expressing divergent views, searching for common ground, and creating the
synergies that can inspire multi-disciplinary collaborations. It seeks to debate and consolidate
ideas on issues pertaining to initiatives for establishing hand in hand progress of natural resource
conservation, sustainable tourism and development of society.

We would like to thank the authors for their articles, and our team in Universiti Sains Malaysia,
Universiti Malaysia Sabah and Universiti Putra Malaysia for taking time out from their busy
schedule. Your contribution to this conference is acknowledged with much gratitude.

Mazlina Mahdzar
Siow May Ling
Madhavan Balan Nair
Ahmad Shuib
Serdang 2015

TOURISTS INTENTION IN SELECTION OF A RESTAURANT:

TESTING A MEDIATING INFLUENCE OF PERCEPTION.
Muhammad Sabbir Rahman1, Muhammad Madi Bin Abdullah, Fadi Abdel Muniem Abdel
Fattah3, Hasan Moudud4
1

Kulliyyah of Languages and Management, International Islamic University Malaysia

(IIUM)
(sabbiriiu@gmail.com; muhammadsabbir@iium.edu.my)
Faculty of Business, Economics and Accounting, Universiti Malaysia Sabah (UMS)
3
Graduate School of Management, Multimedia University Malaysia (MMU)
4
Kulliyyah of Languages and Management, International Islamic University Malaysia
(IIUM)

Abstract
The purpose of this research is to inspect in what extent service quality and satisfaction
influence the purchase intention from a restaurant when perception employed as a mediating
function. In order to test the proposed conceptual framework, this research used a sample of
200 tourists who visited Kuala Lumpur, Malaysia. This research included both domestic
and international tourists. Apart from confirmatory factor analysis, this research applied
structural equation modeling to test the hypothesis. The results show that the relationships
among the variables are all significant. Moreover, the mediating effect of perception in
between service quality and purchase intention is partial. On the other hand, the role of
perception as a mediation in between the relationship of tourists satisfaction and their
purchase intention from a restaurant was significant. This research offers substantial data
for the restaurant managers to be aware about which criteria meet the expectation of the
tourists in order to attract their restaurant services in a consistent and attractive manner.
This research also contributes to the existing knowledge of tourism study by focusing on the
restaurant sectors of Malaysia.
Keywords: Tourists Purchase Intention, Service Quality, Perception, Satisfaction
INTRODUCTION
The increasing number of foreign and local tourists arrival at the different tourists
destination places in Malaysia has been significantly increasing since 2004 with a
predictable number of 29.7 million tourist by the year 2015 (Kosnan et. al,2012; Malaysia
International Trade and Industry Report, 2009). According to Jang and Namkung (2009) the
related industry in regards to tourism and hospitality requires world class infrastructure. As
a result restaurant service needs substantial amount of customers centric rather business
centric, which require promoting their services towards the customer by understanding their
perception as well. However, the industry has already faced frequent challenges in meeting
the international standard of food and drinks for their target clients (Mak et. al 2012; Jang
& Namkung, 2009; Jalis et.al., 2009). Research on service quality and customer satisfaction
on tourists purchase intention from a particular restaurant is still scarce and additional
investigation requires where perception will take as a mediating role in order to explain and
understand the insight of the tourists for developing a better marketing strategy by the
restaurant owners in the coming future. Hence, the purpose of this research is to empirically
test the tourists purchase intention from a restaurant by considering service quality,
customer satisfaction and perception variables. However, this research will answer the

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following research questions: In what extent does the relationships exist between service
quality and purchase intention to select a restaurant when perception play as a mediating
role? In what extent does the relationships exist between touriststs satisfaction and
purchase intention to select a restaurant when perception play as a mediating role?
Constructs Development
Service quality and client satisfaction are the two spirits of modern marketing premise and
its practices (Spreng & Mackoy, 1996). The key sustainable strategy by the firm
(restaurants) is to deliver high quality services as well as customer satisfaction by
considering their perception in order to aim them to call their places (Samuel et al., 1998).
Nevertheless, customer satisfaction has now become one of the most vital priorities of the
managers in order to gain repeat purchase, confident and positive word-of-mouth, customer
loyalty towards their restaurants. Gronroos (1984) define service quality by constructing
two components, technical qualities and operational quality. The first one explains about
the result of service delivery to the customers by the company, whereas the second one
refers the way the service need to perform. In addition, numerous authors also discovered
that there is a substantial relationship exists between the service quality and consumers
perception (Cronin & Taylor 1994; Zeithaml et. al., 1996). For example, customers may
justify the nature of a restaurants service based on their perceptual experience on the
technical process by which the services are delivered on the other hand the surrounding
environment where the services have provided to them. To assess service quality
Parasuraman et al. (1988) also developed SERVQUAL which consists of five
dimensions that are reliability, responsiveness, empathy, assurance, and tangibles. In
addition, satisfaction among customers always influence their perception as well as their
aim to visit the restaurants (Qin & Prybutok, 2008; Gilbert et.al, 2004; Kara, et. al, 1995).
According to Leon & Leslie (2006) the level of satisfaction is provided by the a firm can be
quantified by the number of repeat purchase or their intention to travel to the shop again. In
further, Micuda and Dinculescu (2010) observed that the perception of the customers
towards a firm influenced by various intrinsic and extrinsic cues. Zeithaml (1996)
defines service quality is the consumer's judgment and decision in regards to buying a
merchandise or service. In latter part Stevens et al (1995) explained that perceived service
quality is a part of the interface among three variables for instance: normative expectations,
predictive expectations, and actual service quality. To find out the reasons that clarify the
customer satisfied in the restaurant Andaleeb and Conway (2006) used mixed methods in
order to build a customer satisfaction model. The results of their research revealed that
customer satisfaction is influenced by the responsiveness of the employees, followed by
price and good quality. Tam (2004) explores the associations among customer satisfaction,
servicequalityand perceived value. The outcome of this research revealed that client
satisfaction and perceived value significantly influence customers post-purchasebehavior.
However, Markovic et al. (2010) indicated that assessment of service quality in the
restaurant industry is rather complicated because of its service process and delivery.
Satisfaction is the consequence of a customers perception of the value they receive from
the sacrifice transaction (Levesque And McDougall, 1996; Reichheld and Sasser, 1990;
Reichheld, 1996; Hallowell, 1996). Ghosh (1990) explores that measuring consumers'
purchase intention is an effective tool to predict their purchasing process. In this regards
numerous research also explain that consumers purchase intention influence by the cost,
service, quality perception and value perception by the consumers (Zeithaml, 1996 and
Grewal et al 1998). Above all the overall behaviour of a consumer is largely influenced by
his/ her perception about the object. Consumers perception can build up through how
successfully a product or services has been marketed towards the customers (Dickenson,

388

1994). Product or service perception also called product/ service understanding by the
consumers by considering the value (price, product quality, and variety) (Dillon and
Reif, 2004). Perception can be defined as how a human recognize and interpret the
stimuli (Parasuraman et. al, 1988). In other words perception is the first intuition that an
individual can draw and interpret the information in a meaningful picture (Munnukka,
2008). Thats why researchers believed that consumer perception influence the
consumer's buying intention as well. Based on the above discussion the following
conceptual framework is developed:
Figure 1: The Conceptual Framework for Tourists Intentions To Purchase From A
Restaurant
H1
Service Quality

H3
Perception

Tourists
satisfaction

H5

Purchase Intention
from a Restaurant

H4
H2

By referring to the discussions made by the scholars, following hypotheses for this research
are developed:
Direct hypothesis: H1: There is a positive relationship between service quality and tourists
purchase intention from a restaurant. H2: There is a positive relationship between tourists'
satisfaction and their intention to select a restaurant. H5: There is a positive relationship
between perception and tourists intention to choose a restaurant.
Indirect hypothesis: H3: There is a significant relationship between service quality and
tourists purchase intention to choose a restaurant when perception plays as a mediating
role. H4: There is a significant relationship between tourist satisfaction and their purchase
intention to pick out a restaurant when the perception play as a mediating role.
RESEARCH METHODOLOGY
Data were collected from selected places from the Kuala Lumpur area where a significant
number of tourists are frequently visited. This research applied convenience sampling
procedure through shopping mall intercept technique in collection of information. The
researchers picked the Kuala Lumpur city as its nature and characteristics of a multi-cultural
city inhabited by three races (Malay, Chinese, Indian and other cultural origins). This
cultural diversity makes this city a unique character by itself. Ujang and Muslim (2014)
argued that the mega structure of the twin tower and the overall facilities significantly
influence the holidaymakers (local and international) to visit Kuala Lumpur as a destination.
This research applied survey methods as a tool for collection of data from the tourists who
were visited Kuala Lumpur in Malaysia. This research used 200 respondent's responses for
further data analysis. The study was conducted from 1st of March 2014 to 30th June2014.
This research included both local and international visitors. The following table explains the
distribution of the respondents in terms of gender, age, nationality; preferences of
restaurants and marital status. The entire details of the instruments were adapted from
various scholars' research work. The variable service quality was measured by six items
adapted from Johns & Tyas (1996); Kivela et al., (1999); Raajpoot (2002) Stevens et al.,

389

(1995) research. The tourists perception was assessed through six items adapted from
Dillon, and Reif (2004) research. In addition, satisfaction variable was measured by five
items adapted from Oliver (1997); Oladepo & Abimbola (2014) studies. Lastly, tourist
purchase intentions were assessed by five items adapted from Zeithaml et al. (1996);
Namkung, Jang, (2007) research. All the details for the constructs were tested through 7point scale (1 = extremely disagree and 7 = extremely agree). Data were analysed by two
stages. In the beginning phase, the researchers performed a confirmatory factor analysis to
assess the adequacy of the measurement model for further empirical testing. In the second
phase of this research, we applied structural equation modeling (SEM) to discover the
causal relationship (direct and indirect) among the variables. This research used chi-square
test statistics; goodness-of-fit index (GFI); adjusted goodness of fit index (AGFI); root mean
square residual (RMR); root mean square error of approximation (RMSEA) and X2/DF to
test the overall model fit this research (Bollen, 1989).
DATA ANALYSIS
This research fulfilled the content validity by defining the appropriate scale through depth
literature review (Bock and Kim, 2002). In addition, in order to establish the content validity
this research also pre-tested the instruments through the academic expertise, explaining
definition of the constructs and from past researchers scale. Aside from that this research
applied confirmatory factor analysis (CFA) of the individual constructs to make the
construct validity of this study (Strub, 1989; Bock and Kim, 2002; Ryu et al., 2003).
Congruent validity was achieved through the substantial loading (greater than 060) of
individual items under each construct (See table 2). The outcome from the inner consistency
of the loadings under each construct also explain the composite reliability and variance
extracted (See table 2) (Bagozzi and Yi, 1988; Fornel and Larcker, 1981). Nevertheless, all
the fit index is acceptable in range in order to proof the overall model fit criteria (See Table
3).
In the second stage of the statistical analysis, this research applied structural equation
modeling (SEM) to inspect the proposed relationships on the conceptual framework (see
figure 1). The answer from the SEM analysis (See Table 4) summarizes the result of the
structural equation model test. This research assumed a confident relationship between
service quality and tourist purchase intention to pick out a restaurant (H1), and between
satisfaction and tourist intention to pick out a restaurant (H2). This result from the statistical
test revealed that there is a significant positive relationship exists between the service
quality and tourist intention to choose a restaurant (=0. 49, CR =6. 038, p=0. 004). As a
result this research support H1. In addition, the result also revealed that tourists' satisfaction
positively related to tourist intention to pick out a restaurant (=0. 412; CR= 4. 708, p=0.
035). So this result also confirms hypothesis two. Meanwhile, the relationship between
perception and intention to choose a restaurant also proved significant and positive. So as a
result this research accepted hypothesis five (=0. 392; CR= 5. 708, p=0. 025).

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Table 2: Measurement Model

Latent Construct
Items
Loadings
Composite
reliability
Tourists
TP1
0.73
0.90
Perception (TP)
TP2
0.78
TP3
0.85
TP4
0.78
TP5
0.79
TP6
0.76
Tourists
TS1
0.89
0.90
Satisfaction(TS)
TS2
0.73
TS3
0.81
TS4
0.87
TS5
0.78
Restaurant
RSQ1
0.74
0.90
Service
Quality RSQ2
0.78
(RSQ)
RSQ3
0.79
RSQ4
0.75
RSQ5
0.81
RSQ6
0.78
Tourists Purchase TI1
0.80
0.89
Intention (TI)
TI2
0.75
TI3
0.82
TI4
0.81
TI5
0.76

Variance
Extracted
0.62

0.66

0.61

0.61

Note: Factor loadings are from CFA

Table 3: Overall Fit of the CFA Model
The model fits Index items
Scores
Recommendation
X2/df
372.656/202=1.84 Acceptable for
model fit (1<
X2/df<2)
Goodness-of-fit index (GFI)
.827
Close
to
1
(Accepted)
Adjusted goodness of fit index (AGFI); .798
Close
to
1
(Accepted)
Root mean square residual (RMR)
0.017
Less than 0.025
(Accepted)
Root
mean
square
error
of 0.056
The value must
approximation (RMSEA)
be 0.05 or less
(Accepted)
Comparative Fit Index (CFI)
0.783
Close to 1
(Accepted)
Above all, the outcomes of the present findings also confirmed by the previous research by
the scholars (Spreng & Mackoy, 1996; Gronroos, 1984; Cronin & Taylor 1994; Zeithaml
et. al., 1996; Micuda and Dinculescu , 2010; Andaleeb and Conway, 2006; Reichheld and
Sasser, 1990; Reichheld, 1996; Hallowell, 1996; Munnukka, 2008). To test the
mediation effect of customers perception this researchers calculated indirect, direct and
total effect among the constructs. The researchers looked at the nature of indirect effect
391

with a comparison to the direct effect. This research also compared the chi square values
before and after the mediation test (Bagoozzi and Yi, 1988). In fact, the Chi-square
difference results also reflected that the accession of the customer's perception significantly
improves the model fit (Default Model: Chi-square = 275.482; levels of freedom = 107vs.
Revised model Chi-square = 385.746; degrees of freedom = 207). The full effect of
Tourists satisfaction (TS) with their aim to visit a restaurant (TI) is 0.536, where indirect
effect is 0.456. Therefore, this research revealed that the indirect effect among the
relationship is stronger than direct effects. Thus, this research confirmed that there is a
substantial relationship between satisfaction and tourists intention to choose a restaurant
when perception variable play a substantial part. As a result this research accepted
Hypothesis 4. On the other hand, the overall effect of service quality (SQ) to tourists
intention to visit a restaurant (TI) is .40, with an indirect effect of 0.090 and a direct of
0.310. Therefore, based along the statistical findings this research also proposed that direct
effect is more substantial than the indirect effect in this relationship. As a result this
research confirmed that the role of perception in between the service quality and intention
to visit a restaurant is partial rather full. As a result this research rejected hypothesis 3.
From the statistical result, the researchers agreed that restaurants managers not only focus
on the service quality alone rather also look on the satisfaction of the customers as well to
push their perception positively to visit their restaurant. Nevertheless, it is imperative to
continuous improvement their service, according to the preferences by the visitors in the
restaurants to influence their purchase intentions. .
CONCLUSION AND IMPLICATION
The restaurant industry players in Malaysia need to transform them into consumer centric
rather product centric in order to survive in the intense competition and high quality
expectation from customers. The research from previous studies also confirmed that the
restaurant industry require to look on the perception of their customers to design a quality
customer service to achieve their targeted goal. In fact, quality assurance is not only the
sole determinant of the purchase intention rather the players need to look on the customers
satisfaction as well in their every step of operation (Bandin, 1997; Terry and Vincent,
1998). In fact the significant change of consumer perception in terms of quality services
from the tourism related industry have also impacted on the growth of the hospitality
industry in Malaysia. As result thoughtful understanding of the tourists unique preference
and the satisfaction criteria are very important to gain a competitive advantage in the
industry. The Managers in the hospitality industry should also develop closer relationships
with their frequent customers through interactive behaviour. Above all, the research also
believes that simply focusing on the traditional food, by the restaurant managers is not
enough for the job of survival rather they need to concentrate on fast food items to satisfy
the young tourists needs.
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