A cross-cultural analysis of perceived value and customer loyalty in restaurants

Abstract

This paper explores the relationships between the social, emotional, functional, epistemic and conditional value perceived by customers and the key customer outcomes of satisfaction, retention and loyalty in the restaurant industry. Partial least squares structural equation modelling (PLS-SEM) is applied to a cross-sectional sample of 365 restaurant clients from Romania, Italy and Croatia. The analysis reveals significant cross-cultural variations in how these five kinds of value affect customer satisfaction. The findings reveal that emotional value is the most significant determinant of customer satisfaction in all three cultural contexts. This finding underscores its universal importance in improving customer experiences. In contrast, functional value and conditional value have context-dependent effects, with greater relevance in certain countries. In particular, social value negatively influences satisfaction in Italy, suggesting that social aspects may not be aligned with consumer expectations across cultures. These findings provide actionable insights for restaurant managers. They highlight the importance of boosting emotional engagement and tailoring service strategies to culturally specific customer preferences. Doing so can ultimately lead to greater customer satisfaction, retention and loyalty.