Paper Example on Perceived Value: Crucial for Sustaining Restaurants in Fierce Competition

Paper Type:  Research paper
Pages:  7
Wordcount:  1780 Words
Date:  2022-12-29


In the fierce market competition of restaurants, perceived value is an imperative prerequisite for the sustainability of restaurants and is a key to success for almost all companies. It creates more satisfied customers and has been found to significantly impact the intentional repurchase and loyalty of customers. If the product services offer more benefits, the satisfaction to a customer is likely to be more, hence leading to positive behavior (Aulia, Sukati, and Sulaiman, 2016). However, the product characteristic nature depends on the type of value dimension created on the type of product or services. It is therefore important for restaurants to consider the need for a better perspective of perceived value for better satisfaction of a customer.

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Employee Commitment

The commitment of employees also creates the image of a restaurant. It is significant for managers in a successful restaurant to hire employees who can carry out their work effectively so as to accomplish the goals of that facility (Perryer et al, 2010). If the employees are not effective, it leads to poor customer services which consequently impact on the sales of restaurants. It is the role of restaurants to ensure employees understand that customers are the lifeblood of any company and if they are not satisfied, it leads to the negative turnover of the restaurant business. Employees should, therefore, pay attention to the voice of every customer concern.

Restaurant Image

Quality and type of food impact highly on restaurant image. Ryu, Han, and Kim, (2008) pointed out that even though factors like decor are essential in choosing between restaurants, quality, and type of food is the topmost variable that ranks higher than other factors. The key determinant of restaurant customer loyalty is the quality and type of food being offered. A survey conducted showed that the choice of a restaurant of a tourist is influenced by the wide variety of foods displayed on the menu. This is an indication that even the design of a menu is effective since the menu acts as a selling tool for the restaurant sector. Another factor that contributes highly towards the restaurant image is the price of food. Although the price is a good communicator of quality, prestige or restaurant status to the customer, research has shown that price impact highly on the progress of a restaurant. Every restaurant has different prices on their food, but customers expect high quality if the prices are high. The physical environment of a restaurant is contributed by various attributes such as comfort and layout of a restaurant. The layout of a restaurant should be comfortable to the consumer with its seating arrangements bringing comfort to them. This is important since most people select a restaurant based on its comfort levels.

Review of the Existing Industry Research

2.2.1. Influence of Restaurant Image on Perceived Image and Employee Commitment

There is a central connection between brand image, perceived value, and employee commitment. The restaurant image looks at the physical environment of a restaurant and influences perceived value through the market place of the restaurant (Bungara, 2018). Perceived value brings out the image of a restaurant by comparing the services being offered with their prices. On the other hand, restaurant image is determined by the commitment of the employee. Employees can offer a different type of commitment towards a restaurant including normative, continuance and effective and all this determines the image of a restaurant.

2.2.2. Relationships among Perceived Value and Employee Commitment

The relationship between perceived value and employee commitment is critical as it influences the satisfaction of a customer. This relationship quality ensures repeat purchase from customers and offers many benefits to the restaurant due to the direct impact it has on the restaurant's bottom line profit. The commitment of the employee looks at the skills, characteristics, and attitudes the employee has towards the business (Rusdi et al., 2016). On the other hand, perceived value is determined by product quality, quality of services and other related quality. Employees should ensure that they offer good quality services to the customers and this cannot only occur through satisfying them, but also ensuring retention in case of service failure. A restaurant can only survive if its customers are offered good quality services by its employees. The satisfaction of a customer starts from clear, operational definitions of both employees and the whole restaurant. Today, almost every consumer wants their needs and expectations to be met effectively with a broader range of products through convenient channels. This can only come by if the employees of a restaurant are committed enough to meet the needs of customers. Almost all successful restaurants are meeting their shared target through ensuring effective customer services is delivered by their committed employees. Employees must acquire the aspect of the quality relationship which ensures that customers are able to maintain their relationship with the restaurant. Quality relationship is the overall business success since the aspect focuses on sustaining the needs of a customer. The quality relationship gives employees a commitment to their performance and daily duties. Commitment empowers workers to work in a consistent manner with the interest of the restaurant. Also, it ensures there is an enduring desire for maintaining the relationship between them and the customers. If employees are committed, they are able to deliver high-quality services to not only the restaurant but also to the customers they are serving (Rusdi et al., 2016). Also, employee commitment forms a critical element in which the restaurant manages the relationship between them and their customers. However, employee commitment is influenced by the type of commitment like the affective commitment, continuance and normative commitment. Affective commitment makes an employee to have humanity value like courtesy and moral integration. Continuance commitment makes the employee have values like obedience and formality while normative commitment enables the employees to develop innovative and initiative character. If employees are able to possess such distinct types of commitment, it will not only lead to the growth and success of a restaurant but also customer satisfaction.

Background Information

Klang valley holds one of the leading Michelin star restaurants in the world known as Alinea Restuarant. It was opened on May 4, 2005, and managed and owned by Grant Achatz. The restaurant is the hallmark of fine dining quality and one restaurant that promote the Michelin star status through the quality and consistency of the food they provide (Lane, 2013). It has been tagged and awarded as a three-star restaurant since its services are exceptional. Also, it has a unique journey that indicates exceptional cuisine and extremely superbly dinner to eat. Its dishes are distinct and precisely executed using ingredients that are superlative. Aliena concentration is on quality, technique mastery, personality and food consistency (Johnson et al., 2005). It depends on its full-time staff and anonymous restaurant reviewers who are very passionate about food and have a good eye for detail. Also, they have a good memory of recalling and comparing various types of foods. This makes the restaurant to be distinct from other restaurants like Zagat and Yelp restaurants that use and relies on consumer feedback. The reviewers (inspectors) of the Michelin star restaurant are always anonymous and hardly disclose their line of work to not only journalists but also to their parents (Vasquez and Chik, 2015). The reviewers only write reports with the distilled star of each restaurant. The star awarded should be maintained since the loss of it has a dramatic impact on the success of a restaurant.



Descriptive research design draws a picture of the topic and illustrates features of the phenomenon and majorly it is used when certain research questions or hypothesis are formulated. However, a research design is a frame that conducts a research project and can be described as a work plan (Creswell and Creswell, 2017). Purposely, it ensures that the obtained results answer the initial questions as unambiguously as possible. Research design is categorized into various distinct approaches and our study uses the quantitative approach for the research design.

Validity and Reliability

Validity uses a measuring instrument to measure what is intended to be measured and precisely attains the objective which it was intended. The researcher can use content validity in testing validity of the research instrument that is ascertained through reviews of the experts thus ensuring set questions are helping to gather the intended responses (Belafsky et al., 2008). In this study, the scales that will be used will be adapted from established existing measures that were employed and validated in studies conducted previously. On the other hand, reliability gives the participants the instruments of filling where the results were replicated. According to g to Venkitachalam (2014), reliability is the degree measure where an instrument of research after consistent trials yields consistent results.

Data Analysis

Data was edited and questionnaires were confirmed and checked for completeness and accuracy so as to ensure there were no missing entries that could have affected the results. Quantitative data were summarized through descriptive analysis that employs frequencies, percentages, means and standard deviations which all were presented on a table and a graph. Pearson's Moment Correlation Coefficient (PMCC) was used in the study and it is a useful method that evaluates the relationship between the dependent and independent variables (Hair, 2006). For instance, the relationship between restaurant image and perceived value and employee commitment was analyzed using correlation analysis. Through PMCC one can analyze various variables either singly or in a combination that affect a certain phenomenon being studied. A simple model of linear regression can be used in testing the relationships of the three attributes (restaurant image, perceived value, and employee commitment) while significant regression coefficient can be used in testing demographic effects (gender, age, marital status, and income) of the relationship between the three attributes.


Use of convenience sampling decreases the external validity and thus it is important to develop a systematic design of representing the population in a better way. Using a regression model for analysis is not a significantly superior method of examining the relationships and thus it is important to consider other alternative methods like structural equation modeling. In regard to the restaurant image, it is good to develop a reliable and valid scale of measurement since this is a big issue facing most restaurants.


Separate distinct researches have been conducted on the effect of restaurant image, perceived value and employee commitment on restaurants. While their importance has been discussed widely (Ryu, Lee and Gon Kim, 2012), there has been no discussion on the link between the three factors. Conducting this study has helped to eliminate the gap that exists by looking at the relationship between the three concepts. Overall, the three concepts are a significant predictor of customer satisfaction in a restaurant and from the findings; there are various theoretical and managerial im...

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Paper Example on Perceived Value: Crucial for Sustaining Restaurants in Fierce Competition. (2022, Dec 29). Retrieved from

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