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DOI : 10.
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The Impact of Customer Loyalty.
Quality.
Food.
Service, and Price Fairness on Cuisine in Jakarta Nurwulan Kusuma Devi, 2Sri Wahyuningsih, 3Haspul Naser, 4Ratnawita, 5Syukrio Idaman Management and Business.
University of Mitra Bangsa.
Jakarta.
Jl.
Raya Tanjung Barat.
No.
Jakarta Selatan E-mail: 1nurwulankusumadevi026@gmail.
com, 2yuniwahyuningsih33@yahoo.
3haspul1963@gmail.
com, 4witadosen@gmail.
com, 5syukrio.
idaman@gmail.
ABSTACT
DKI Jakarta has the highest concentration in the culinary industry compared with other provinces.
This study examined the effects of price fairness, food quality, service quality, environmental quality, and customer loyalty on street food culinary businesses in Jakarta.
In addition, price fairness can have a positive impact on food quality, customer loyalty, and service quality.
Researchers will examine whether gender factors play a role in assessing food quality in fast food products and significantly influence customer loyalty.
Therefore, genderAos role in moderating food quality influences customer loyalty.
Novelty: Researchers have linked the role of gender in moderating food quality, which influences customer loyalty, which previous researchers have not studied.
Research method: utilizing Smart PLS 4.
0 to analyze data and survey questionnaires using Google Forms with a total of 155 respondents.
The results show that street vendors must prioritize price fairness, food quality, and services to increase consumer loyalty.
Moreover, price fairness has a moderating influence on both physical environmental quality and reasonable prices.
Keywords: Street Food.
Customer Loyalty.
Price Fairness.
Food Quality.
Service Quality.
Environment Introduction Competition in the street culinary realm has increased due to various street culinary Customers choose street food based on its quality, cleanliness, and price.
it is aligned view by (Xia et al.
and Nazari et al.
find that the core problem in pricing is price fairness.
Customers send messages on social media, spread information regarding unfair prices, and engage in other actions that can harm sellers because of their perception of unfair pricing.
Conversely, good food is presented beautifully, freshly, and mouthwateringly, and it is fresh, well-presented, cooked, and available in various forms (Ha & Jang, 2.
(Qin et al.
, 2010.
Customer pleasure and profit are closely related to meal quality and services.
In contrast, better meal quality increases customer satisfaction and loyalty ( Kotler & Armstrong, 2017.
Qazzafi.
Loyal customers are willing to return to eat and tell their colleagues and family about restaurants through social media and other (Hidayat et al.
, 2.
The lower-middle class prefers street food as a gastronomic alternative, where they may satisfy their hunger and receive suitable services in a relaxed atmosphere filled with In addition, cuisine flavor and service quality are essential aspects for customers when selecting a culinary place.
People may visit street food stalls to have fun with close friends, co-workers, or family, unwind from their daily routines, and create memorable street food experiences (Liu& Jang, 2009.
A problem that often arises in culinary street food is the need for price transparency.
They only finished eating before knowing how much they had to pay.
Literature Review Culinary tradition of street meals According to studies conducted by Baldwin, .
, consumers frequently view street food as inexpensive and practical serve the According to Streetfood.
, in developing countries, some types of street food account for 40% of daily food consumption.
Indonesian street food is a fusion of local Indonesian.
Chinese, and European influences.
The culinary tradition of street meals is cheaper, and their taste is rather strong and spicy.
Each country has its own signature of national and regional iconic dishes for local foods sold on the street (Bjyrk & Kauppinen-Ryisynen, 2.
Indonesia, such as Rendang.
Soto Betawi.
Ayam Jurnal Manajemen Vol.
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Geprek.
Sate Padang.
Nasi Uduk khas Betawi, and many others are iconic local dishes.
There are two alternative ways of looking at street food: first, it is only eaten by people experiencing poverty because it is inexpensive.
second, it is the current way of life that distinguishes between time spent working, caring for others, and having fun (Calloni.
Another benefit of culinary practices is that local food at tourist destinations satisfies hunger and deepens one's connection to the destination's culture and heritage, making the experience unforgettable (Bjyrk & KauppinenRyisynen, 2016.
Tsai, 2.
Traditional nourishment is essential in determining tourist offers and attracting the attention of destination management organizations to diversify and improve attractions (Akdag et al.
, 2018.
, which is in line with the findings of Mak et al.
According to the literature on cuisine and tourism, travelers are interested in several meals and drinks, including traditional culinary foods, during festival events.
Currently, international tourism offers a wide variety of delicacies for tourists, particularly young people.
Fast food and traditional street food are also affected by globalization (Sgroi et al.
, 2022.
Nigar & Nazimul Haque, 2.
The FAO has been identifying the primary characteristics of street food in Asia since 1980.
The Regional Workshop,3-7 November 1986 in Yogyakarta.
Indonesia.
Street food is defined as follows.
AuFoods and drinks that are ready to eat and are served in public settings are referred to as street food.
Although they are less expensive and a tasty substitute for home-cooked meals, they vary in variety, environmental practices, and Ay (Winarno FG .
) .
Ay.
Customer Loyalty Maintaining good food quality, creating a pleasant environment, and offering reasonable prices relative to food ordered or served is crucial for customer loyalty.
These three elements significantly influence customer Customers are unlikely to return to this location if these factors are lacking.
Some customers may share their negative experiences with others.
Loyal customers are particularly valuable because they regularly employ wordof-mouth marketing to promote products or services to family, friends, or other prospective Jurnal Manajemen Vol.
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clients (Shoemaker & Lewis1.
According to Ma et al.
, the primary factors influencing consumer satisfaction are service, food quality, price fairness, and environment.
Restaurants and street food establishments can win consumersAo hearts by offering high-quality products and The three main reasons are as follows:
First, devoted customers are less price sensitive.
Second, they return because of their quality, price, and atmosphere.
Third.
Loyal consumers are likely to recommend new customers (Frederick et al.
The above statement indicates a 5% growth in customer loyalty, which leads to a profit boost of 25% to 85%.
(Bowen & Chen, 2.
Thus, customer loyalty is essential to a business's sustainable success (Wall & Berry, 2.
Perceived Service Quality Parasuraman initially introduced the idea of quality service, which was later simplified into the widely recognized SERVQUAL model, comprising five scopes: tangibility, empathy, reliability, responsiveness, and assurance (Zygiaris et al.
, 2.
Previously, the quality of a service was determined by its characteristics.
CustomersAo perceptions of a company's quality are closely linked to its service quality.
If the perceived service meets expectations, it may be received favorably and satisfy the customer.
Therefore, the consistency of service providers in fulfilling customer expectations is crucial in determining service quality (Lu et al.
, 2.
High levels of customer satisfaction primarily depend on a company's ability to provide excellent services and cultivate positive client Quality of service and client satisfaction are essential factors contributing to a company's overall success (Edward & Sahadev, 2011.
Chang et al.
, 2017.
Edward & Sahadev, 2.
A successful culinary business relies heavily on the quality of service in street food cuisine.
This view was similar to that of Carranza et al.
, who reportedClick or tap here to enter text.
that the quality of fast-food services positively affects consumer pleasure.
has been stated that fast-food service quality influences client satisfaction favorably.
business's success or failure is determined by how well it performs compared with its competitors (Berry et al.
, 1988.
Robinson, 1999.
Liu & Jang, 2009.
Price Fairness Street food prices are often an exciting topic for street food connoisseurs.
Sometimes.
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one of the culinary owners arbitrarily gives the same price as food in a restaurant with the same menu, causing consumers to object and quickly share it on social media or replace it with candy.
After the outbreak, the local government mandated that all culinary businesses provide reasonable prices.
The issue of price fairness is a newsworthy concern about hidden costs and the non-transparency of prices.
when buyers think a price is unfair, they may leave the exchange, spread negative word-of-mouth, or take other actions that harm the vendor (Campbell 1999.
Xia et al.
Nazari et al.
The perception arises that they feel that they are mistreated regarding reasonable prices.
Fairness was formerly defined as the judgment of outcomes and processes for achieving a rational, suitable, or fair outcome (Bolton et al.
Baumol et al.
argue that the fairness criterion can be operationalized and applied to specific problems for unclear Trust is the most difficult aspect in building customer intimacy.
Thus, if customers perceive that the price of food offered is reasonable and acceptable, they will make it viral via social media.
Trust is an important factor that influences perceptions of price reasonableness (Xia et al.
This view is in line with Zhong and MoonAos .
finding that a restaurant's success relies on delivering delightful, affordable food that balances taste and price, attracts customers, and fosters customer satisfaction.
It is relevant opinioned by (Grewal et al.
and Xia et al.
, that consumers' pleasure with a transaction depends on their perceptions of the transaction's price fairness, and they will repeat their purchase intent based on these evaluations.
The perception of price fairness strengthens the consumer-vendor connection (Hortamani et al.
Food Quality Food quality is the largest contributor to customer loyalty.
The power of delicious food quality attracts customers to return, creating an unforgettable experience.
This aligns with Savelli et al.
, who believe that meal quality is essential in defining customer purchasing behavior is widely held.
According to Grunert .
and Jennifer et al.
consumersAo perceptions of food quality have shifted with a growing belief that convenient foods must be healthy, fresh, and safe.
However, fresh, well-cooked, and attractively presented food is highly valued by customers (Ha and Jang, 2.
(Qin et al.
, 2010.
In contrast, better food quality increases customer satisfaction and loyalty (Qazzafi, 2.
Customers are willing to return to eat and provide recommendations to their colleagues and families through social media and other activities (Hidayat et al.
, 2.
This shift is evaluated from a medical and nutritional perspective(Deshpande et al.
, 2.
Another perspective is that it represents the current lifestyle, where time is divided between working, caring for others, and fulfilling social obligations (Calloni 2.
One of the advantages of visiting street food destinations is the opportunity to try a variety of local dishes that can satisfy hunger, strengthen cultural connections, and create memorable experiences (Bjyrk and Kauppinen-Ryisynen, 2016.
(Tsai.
The traditional gastronomy of a place makes it an attractive tourist destination (Akdag et al.
Mak.
Lumbers.
Eves, et al.
, 2.
Literature on tourism cuisine shows that tourists are interested in various foods and drinks as culinary tourism destinations at traditional culinary festivals.
Street cuisine provides a diverse range of options for tourists, especially for young people.
Additionally, internationally recognized traditional street food is now impacted by globalization (Sgroi et al.
, 2022.
Nigar & Nazimul Haque, 2.
Physical Environmental Quality The physical environment of a culinary business can positively impact customer retention and determine the sustainability of the business in the long term.
In line with Azim et .
, interior design, decorations, and accessories are used comprehensively to improve the physical environment in the culinary business, primarily to attract customers.
This, in turn, leads to increased customer satisfaction and loyalty, which are essential for the success of a culinary business (Chow et al.
Namkung & Jang, 2008.
Ryu et al.
, 2.
Environmental quality, including cleanliness, comfortable lighting, and temperature, both inside and outside the restaurant, such as cleanliness and the layout of eating utensils on tables that will create a clean and neat impression (Carranza et al.
, 2018b.
Rafdinal & Suhartanto, 2.
Additionally, a location's attractiveness and ambiance significantly impact customer entry and emotions (Jalilvand et al.
According to other studies, environment Jurnal Manajemen Vol.
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has a substantial impact on customer pleasure (Sunaryo et al.
Rajput and Gahfoor 2.
Gender Differences Mattila .
Ryu & Han .
, and Kwun .
found that gender did not significantly influence customers' evaluations of service encounters in hotel and restaurant However.
Female travelers have higher standards and perceptions of hospitality, and satisfied female customers are more likely to visit the restaurant again if they feel satisfied with their experiences.
However, if they feel that they are not liked because of their taste, they will not revisit the same place (Ryu & Han, 2010.
Price determines whether customers are loyal or visit a culinary place only once.
Customers value the benefits of getting a good or service at a fair price.
This is in line with the view of Kotler (Gary Armstrong, 2017.
Rothenberger, 2015.
Campbell, 1999b.
Zhong & Moon, 2020b.
Al-Msallam, 2.
that price compensates for the benefits of a product or service, influences customer satisfaction and altering the perception of a business.
If prices are too high or too low, it can hurt our business.
People will discuss this negatively on social media and other platforms, and customers will go elsewhere.
Although food quality and service are excellent, street food prices are relatively The price resembles that of a This creates a negative image.
they aim to try the food and achieve excellent quality (Zhong & Moon, 2020.
Conversely, services are essential for outperforming competitors (Siregar et al.
In addition, consumer loyalty refers to the continuous and repeated purchases made by customers who have a favorable brand opinion and continue to buy it (Putro et al.
, 2.
This is consistent with prior research indicating that meal quality influences customer satisfaction with fast food (Namkung & Jang.
Ryu & Han, 2010.
Mathe-Soulek et al.
Namin, 2.
, as well as service quality, environment, atmosphere, the timing of providing services to consumers, and location also influences customer satisfaction (Zeithaml & Berry, 1988.
Qin et al.
, 2010b.
Mohammad Haghighi, 2012.
Liu et al.
, 20Ryu & Han, 2010aet al.
, 2017.
Ryu & Han, 2010a.
Sunaryo et al.
, 2.
, physical arrangement and location will have an impact on customer loyalty.
Gender roles are very determined, especially for women.
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regarding the taste of food, aesthetics of the arrangement in table manners, and price offered.
This is in line with Ryu and HanAos .
opinion that female customers are more likely to return to a restaurant than male customers, indicating that a diner's gender might influence their eating experience.
Similarly.
Rocha et al.
found that compared to male consumers, female consumers are more perceptive about physical attributes and product quality.
Research Methodology Questionnaire Each section of the survey explored a different market factor: Price Fairness (PF), food
(FQ),
(SQ),
environmental quality (EQ), and customer loyalty (CL).
The Likert scale ranged from 1 .
trongly disagre.
to 5 .
trongly agre.
Kasiri et al.
, .
used the Likert scale to measure service quality and customer loyalty, and Hanaysha, .
used it to quantity food quality, price fairness, and the quality of the These five criteria were measured using 28 items.
Most of the items were from other studies or made by the researchers Results and Discussion Data Collection The data were gathered from renowned street food establishments popular among younger generations in Jakarta, which were randomly collected.
Based on data collected from food street customers in Jakarta, it reviews the demographic profile of the respondents, 74% men and 52.
26% women.
terms of age, 43.
87% were aged 31Ae45 years.
Most respondents .
52%) chose traditional Most respondents .
58%) have salaries above IDR 7,500,000 per month.
The majority of respondents .
97%) visited at a frequency of 1-2 times a month.
The dominant time of visit was at dinner .
45%).
Model of Measurement This study used the PLS-SEM approach for analysis, which is divided into two phases:
internal and external model analyses (Hair et al.
Sarstedt et al.
, 2.
The validity and reliability of the measurement indicators were evaluated by using an outer model.
The linkages between the model's variables and the structural model were confirmed by the inner model.
analyze the indicators employed in valid and reliable assessments, three criteria must be met:
convergent validity, construct reliability.
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average variance extracted (AVE), and discriminant validity.
Convergence validity was determined from the outer loading of each indicator on the latent variable.
According to Chin et al.
, an indicator has good reliability when its outer loading exceeds 0.
Construct reliability was indicated by each latent variable's Cronbach's alpha value.
latent variable was deemed dependable if Cronbach's alpha was greater than 0.
The Average Variance Extracted (AVE) was then used to assess whether the criteria for discriminant validity were satisfied.
Reliability must be declared with a minimum of 0.
50 or higher (Sarstedt et al.
, 2.
When the HTMT 90, a latent variable passed the test.
The outcomes of measuring convergent validity, construct reliability, composite reliability, and AVE are presented in Figure 1.
Figure 1.
Structural Models each measurement mode of convergent validity, construct reliability, composite reliability, and AVE.
Table 2.
Discriminant Validity - HTMT As shown in Table 2.
, all the HTMT values were <0.
Therefore, it can be stated that all constructs are valid in terms of discriminant Structural Model The structural model was evaluated after analyzing valid and reliable indicators.
The structural model was evaluated in two stages:
hypothesis testing between variables and the fsquare value.
The t-statistic or p-value was used for hypothesis testing.
The test result p-value is less than 0.
05, or the computed t-statistic is more significant than 1.
The test variables showed a noteworthy degree of influence in this The criteria for an f square value of 02 as small, 0.
15 as medium, and 0.
35 as significant indicates that the f square value is a direct variable influencing the structural level.
Values below 0.
02 can be disregarded or considered insignificant (Sarstedt et al.
, 2.
Table 3.
Path Coefficient Analysis Table 1.
Measurement Model Test Result Based on the table above, it is determined that:
Based on Table 1.
, one indicator does not meet the measurement model test criteria, namely FQ1.
therefore, this indicator is deleted with an outer loading of 0.
535 < 0.
It can be seen that each indicator has met the criteria for H1 is accepted: The study found that reasonable prices significantly impact the quality of fast-food dishes, with a path coefficient of 0.
503 and a p-value of 0.
Every adjustment to price equity enhances food On the other hand, price fairness had a moderate impact on improving food quality at the structural level .
-square = 0.
H2 is accepted, the study found that price reasonable significantly influences customers' Jurnal Manajemen Vol.
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loyalty to fast-food items, with a p-value of 000 < 0.
05 and a path coefficient of 0.
Every time price fairness is adjusted, customer loyalty will increase.
Nonetheless, price reasonable had a moderate effect on client loyalty .
square = 0.
H3 is accepted.
the study found that price fairness significantly impacts the service quality of fast-food items, with a p-value of 0.
000 < 0.
and a path coefficient of 0.
The quality of services is improved by adjusting each price Price fairness moderately enhances service quality at the structural level .
square = H4 is accepted, the study found that price fairness significantly impacts the service quality of fast-food items, with a p-value of 0.
000 < 0.
and a path coefficient of 0.
Every improvement in pricing fairness improves the quality of the physical environment.
Conversely, price parity significantly improves the structural quality of the physical environment .
square = H5 is accepted, and the study reveals a significant impact of the environment on the quality of fast-food dish services, as evidenced by a p-value .
000 < 0.
and a path coefficient .
Environmental quality improves in terms of service quality.
However, price fairness significantly improves service quality at the structural level .
-square = 0.
H6 is rejected.
in particular, the research found no significant connection among customer loyalty and food quality in fast food, with a path coefficient of -0.
037 and a p-value 521>0.
-squared = 0.
003 <0.
H7 is accepted, the study indicates a significant correlation between customer loyalty to fast-food meals and service quality, with a path coefficient of 0.
433 and a p-value of 0.
< 0.
Every improvement in service quality results in increased customer loyalty.
However, at the structural level, service quality has a moderately positive effect on customer loyalty .
-square = 0.
H8 is rejected.
in other words, the study found no significant relationship among the quality of the physical environment and customer loyalty to fast-food dishes .
= 0.
> 0.
The structural impact of physical Jurnal Manajemen Vol.
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environment quality on customer loyalty is frequently negligible .
-square = 0.
H9 is accepted, the study found that gender significantly influences food quality and consumer loyalty to fast-food items, with a path coefficient of 0.
208 and a p-value of 0.
Gender inclusion in food quality standards increases customer loyalty.
The structural level of customer loyalty is significantly influenced by the moderating effect of food quality .
quare = 0.
032 > 0.
(Kenney, 2.
Modeil Fit Evaluation Therefore, several measures were developed to ensure that the proposed model is Several criteria for testing an acceptable model are R-squared and SRMR.
According to (W.
Chin et al.
, 2.
, the R Square value criteria are 0.
67, 0.
33, and 0.
19 as strong, moderate, and weak (W.
Chin, 1998 in Ghozali and Latan, 2.
Based on Table 4.
it can be seen that The R-squared value of Customer Loyalty is 0.
738, with strong criteria.
This value means that 73.
8% of the Price Fairness.
Food Quality.
Service Quality.
Physical Environmental Quality, and influence customer loyalty.
The R-squared value of Food Quality was 235 with weak criteria.
This value indicates that 23.
5% of the Price Fairness variable simultaneously influences the Food Quality variable.
The R-squared value of Physical Environmental Quality was 0.
402 with moderate criteria.
This value means that 2% of the Price Fairness variable simultaneously influences the Physical Environmental Quality variable.
The R-squared value of Service Quality is 700, with strong criteria.
This value indicates that 70.
0% of the Price Fairness and Physical Environmental Quality variables simultaneously influence the Service Quality variable.
Model Fit The model's validity was assessed using the root mean square residual (SRMR) and the normed fit index (NFI), with an acceptable fit if SRMR is less than 0.
The SRMR of this model was 0.
052, indicating an excellent model
The NFI number should fall between 0
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however, the closer it is to 1, the greater the fitness (Fornell & Fred, 1982.
Bentler & Bonett, 1.
The model fits the data as it has an SRMR value of 0.
067, which is less than the threshold of 0.
Conclusions and Suggestions All indicators met the validity and reliability criteria for the measurement tools The structural model was calculated, providing insights into the expected latent variable's impact on other variables and assessing model suitability.
The R-squared value represents the relationship between the influence of one latent variable and another.
Price fairness, food quality, service quality, physical environment quality, and gender all significantly impact customer loyalty, with price fairness having a minor concurrent effect on food quality.
Price fairness has a moderating influence on both physical environmental quality and reasonable prices.
In addition, physical environmental quality has a strong concurrent influence on service quality.
Price fairness and service quality have a moderate impact on customer loyalty in terms of their direct effects or influences.
Customer loyalty is unaffected by factors, such as physical environmental quality, gender, and food quality.
In the medium category, there is a direct correlation between price fairness and food Price fairness significantly impacts environmental quality, with the quality of surroundings and cost having a small, yet significant, direct impact on the quality of Meanwhile, there is a sizable gender effect on the moderating effect of food quality on patron loyalty.
The ninth hypothesis revealed that food quality and physical environment did not significantly impact customer loyalty, but gender significantly influenced it.
Limitations and Future Research This study had some limitations.
First, during the sampling phase, multiple culinary tourism destinations in Jakarta and their environs were visited.
Second, this research only focuses on street culinary delights, popular among millennials with various traditional foods, seafood.
Western, and others.
Consequently, the findings of this study differ from those of previous studies.
Third, this study investigated five satisfaction qualifications:
price, food, service, physical environmental quality, and service.
However, other studies may have included additional variables.
Researchers have investigated the moderating and mediating roles of gender, price equity, and food quality.
however, other variables may also play a role.
Researchers propose that Future research should collect larger-scale surveys with more participants of diverse ages and backgrounds, as well as more culinary tourist sites.
Future studies could also be undertaken in the fast-food industry and at a larger restaurant scale.
This study examined only five antecedents, but there may be more factors that influence customer behavior, such as online delivery services.
Additionally, other mediators can be considered in future research by including more variables.
References