The effect of restaurant innovativeness on revisit intention for Mansoura Restaurants Customers

1. Introduction:

Innovativeness is a continuing trend and one of the key drivers of business success (Kim et al., 2021). A company can reach to a high level of innovativeness through its ability to pioneer in the market, to sophisticate original ideas and to produce state-of-the-art technology over time (Quach et al., 2020).

Hospitality industry need to innovatively capitalize on product introduction and technology usage in meeting market demands (Njoroge et al., 2020). As restaurant is an aspect of hospitality industries, restaurants should focus their attention on innovative services or activities to intensify the service value that they present to consumers.

Revisit intention occurs with existing customers, which help businesses to reduce the costs of finding new customers ‏ (Sirimongkol, 2021). The decision of most loyal customers to revisit or repurchase in the future rely on their satisfaction and in which it result to success and business survive in a competitive environment (Sriyalatha & Kumarasinghe, 2021).

Restaurant innovativeness might be positively related to revisit intention. According to Omar et al. (2021), retailer innovativeness can support unique and beneficial experiences, resulting in stronger meaningful relationships with customers. Payini et al. (2020) concluded that domain specific innovativeness appears to have a significant positive impact on food festival visitors' intentions to revisit. Widiandita et al. (2020) founded that perceived innovativeness has a positive but not significant effect on repurchase intention on e-commerce website.

2. Literature and Hypotheses Development

2.1 Restaurant Innovativeness

Restaurant innovativeness, as a phenomenon, has become a hotly debated topic. Kim (2016) defined Innovativeness as, from a customer-centric perspective on firm (restaurant) innovativeness, "a customer’s subjective perception of a firm’s capability to provide novel and creative performance". Innovativeness is significantly essential in the survival of the business as it actually avoids the restaurant's possible reasons for closing (Jantasri & Srivardhana, 2019).

 Kim (2016) identified four dimensions of the innovativeness term: product innovativeness, service innovativeness, experience innovativeness and promotion innovativeness. Product innovativeness is the perceived newness of goods and/ or services (Henard & Szymanski, 2001). The dimension of menu innovativeness can find inclusion as a section of product innovativeness, since food is the main activity of the restaurants. The menu is an important section of the marketing and selling functions in restaurants. According to Ozdemir & Caliskan (2014), the menu serves as a guide for the customers to make food selections. A well-designed menu attracts and satisfies customers while also improving restaurant performance (Jawabreh, 2018). Service innovativeness is defined as “an idea for a performance improvement that customers recognize as offering a new benefit of appropriate appeal that significantly affects their behavior, as well as competitive firms (Berry et al., 2006). The dimension of technology related to service innovativeness shows how a restaurant offers technologically innovative service and creates an advantage for customers through the delivery process (kim,2016). Understanding customer demands and wants in terms of service innovativeness from a central point of view is vital because the use of information technology can be seen as an example of service innovation (Reid & Sandler, 1992). So, service innovativeness in this study depended on technology-based service innovativeness. Experience innovativeness is defined as the innovation of an experience environment that uses the firm’s capability to create personalized and lifestyle-based experiences for individual consumers (Prahalad & Ramaswamy, 2003). According to promotion innovativeness, a company can provide new chances to effectively and efficiently communicate with targeted customers, expect to attract attention, spark interest for a purchase, and add value to the experience (Grewal et al., 2011, Lin, 2015).

2.2 Revisit Intention

Revisit intention is commonly described in literature as an essential behavioral intention (Jani & Han, 2011; Han & Kim, 2009; Han & Ryu, 2006). In the context of restaurants, behavioral intentions can be characterized as the expressed tendency to engage in repeat patronage of the restaurant and to exchange constructive comments with family, friends and others about the restaurant in the future (Ryu et al., 2010). Han (2007) defines revisit intention as "an confirmed probability to revisit the restaurant in the future in both lack and presence of a positive attitude to the restaurant".

The key concern for marketing is possibly to retaining customers or to strengthen repurchase intentions, because  attract a new customer usually highly pass the cost of keeping a current customer (Fornell, 1992; Spreng et al., 1995). A myth is that it is 5 or 6 times more cost effective to attract previous customers than it is to gain new ones (Huang,2007). Repurchase/revisit intention is a key factor influencing customers’ future relationship with a company, its profitability, and thereby its business success (Jones, 1998; Reichheld & Sasser, 1990; Weun, 1997).

2.3. Hypotheses Formulation

The relationship between study variables were clarified as shown in the following fig. (1).

The Relationship between Restaurant Innovativeness and revisit Intention

The current business landscape is becoming increasingly competitive; innovativeness is often highly paid high attention by customers, thereby being a key aspect for success and for customer loyalty (Quash et al., 2020). Presenting innovative products and/or services can enhance the customer’s re-patronage intention (Lafferty et al., 2004; Pine & Gilmore, 1999). According to that review, the researcher concluded that the restaurant innovativeness-revisit intention relationship has been studied in several industries such as online buying, IT innovation, Sports & fitness and food industry.

Regarding to online buying, researchers as Goldsmith (2001, 2002) and Goldsmith and Goldsmith (2002) have identified internet innovativeness has a significant effect on customer usage of the internet for buying.

According to tourism industry, couture et al. (2015) have found that tourism innovativeness has a positive influence for the number of tourism website visits and the number of online purchases in tourism over past year.

Regarding to sports and fitness, Kim et al. (2017) pointed out that sports fans’ DSI influence their behavior intention in using the applications of the sports team. Moreover, Kim & Chiu (2019) mentioned that positive technology readiness (optimism and innovativeness) has a positive influence on the behavior to use wearable sports devices. In addition, Chang et al. (2019) founded that fitness innovativeness positively effected on revisit frequency.

In addition, Hasan (2019) presented a more holistic perception on how customer-perceived brand innovativeness can enable creating of positive feelings at the customers’ end, which lead to positive consumption experiences for both customers (i.e. satisfaction) and companies (repurchase intentions). Moreover, Widiandita et al. (2020) founded that perceived innovativeness has a positive but not significant effect on repurchase intention on e-commerce website.

Regarding to food, especially food festivals, Payini et al. (2020) concluded that DSI seems to exercise significant positive impact on revisit intentions of visitors to food festivals.

According to the perspective of signaling theory, innovativeness considers one of the signals perceived by restaurant customers (Kim et al., 2021). Signaling theory is consists of four primary aspects, namely, the signaler, the signal, the receiver and feedback (Bergh et al., 2014). In restaurant context, the signaler represents the restaurant, which sends a signal to receivers (restaurant customers), who, in turn, provide feedback through their perceptions and resulting behaviors such as revisit intentions.

Although previous studied have verified the positive relationship between innovativeness and repurchase intention, Chiu & cho (2019) indicated perceived innovativeness, a component of perceived brand leadership, has no influence on repurchase intention on e-commerce websites. Therefore, Service providers need to make sure that their unique characteristics remain stable over time to preserve their image of innovation and focus on the development of creative and unconventional ideas (Chang and Ko, 2014; Chang et al., 2016).

The researcher agree with the studies that verified the positive effect of innovativeness on repurchase intention. Therefore, the researcher proposed the following hypothesis:

H1: Restaurant innovativeness has a positive direct effect on revisit intention.

Figure (1): The conceptual framework of the study.

Source: Developed by the researcher based on literature review.

3 . Research Methods

3.1. Samples and Data Collection

This study followed positivism philosophy with a quantitative research method to confirm the proposed framework. The researcher depended on the non-probability sampling using convenience sampling in order to collect the data from respondents. Primary and Secondary data were used during this study. In this study, the primary data were collected from Mansoura's restaurants customers using a questionnaire, when collected secondary data from existed material. Also, Saunders et al. (2009) illustrated that questionnaire is the most appropriate way for explanatory research.

The survey was chosen as the most appropriate methodology for this study, using a quantitative approach, for several reasons.  First, it enables the researcher to collect a large amount of data from a sizeable population using a questionnaire (Saunders et al., 2016). Second, survey data can provide several possible explanations for the relationships between variables and posit models of these relationships (Saunders et al., 2016). As a result, the survey will be beneficial to the study's goal because it was designed to test the relationships between different variables and to propose a model describing the various paths between them.

The questionnaire was self-administered using an Internet based service (Google Forms on Google Drive). The researcher used the online survey that matches the conditions applied to the study. Saunders et al. (2011, p. 364) suggested that it is preferable to publish the questionnaire online from two to six weeks. It should be used if the probability of distorted responses by the investigator is weak, and if the sample size is large and geographically dispersed. Accordingly, the sampling period lasted 5 weeks from 23/06/2021 to 1/08/2021. The number of correct questionnaires is 394.

3.2. Measures

All variables were measured using a five -point Likert Scale ranging from 1= Completely disagree to 5= Completely agree.

The independent variable of study was restaurant innovativeness was analyzed by a construct which includes 17 items proposed by  (Kim, 2016). Five items are used as indicators for menu innovativeness, four items are used as indicators for technology based service innovativeness, four items are used as indicators for experience innovativeness, and four items are used as indicators for promotion innovativeness.

The dependent variable was revisit intention which was analyzed based on the scale of (Maxham & Netemeyer, 2002; Blodgett et al., 1997) that adopt 3 items and only one item added by the researcher in order to measure the this variable.

4. Results

4.1. Descriptive statistics

The total of 394 observations were collected and included in the analysis. The female category has the first level according to the response of the study sample members, with a percentage of (84.5%) while the male category ranked second for the members of the study sample, with a percentage of (15.5%).

Additionally, respondents were also grouped into four categories according to their age. The age group From 20 to < 40 years comprised the highest proportion (89.1%) of the total sample. 9.4 % of the participants were From 40 to < 60 years and 1.3% of the participants < 20 and 0.3% were 60 and older.

In addition, respondents were also grouped into four categories according to their monthly average income. From 3000 to 6000 E comprised the highest proportion (45.8%) of the total sample, less than 3000 E (26.2%),from 6000 to less than 9000 E (14.8%), and over 9000 E (13.2%).

Moreover, the respondents were also grouped into six categories according to their educational level. High qualification comprised the highest proportion 54.5% of the total sample and 41% of respondents are master's degree or higher. However, other categories have small portion, upper intermediate education (2%), intermediate Education (Diploma) (1.3%), high school (0.8%) and without an educational qualification (0.5%).

Finally, the researcher concludes that Bremer restaurant is the most restaurant that customers prefer to visit (30.3%), Secondly, Stereo Restaurant & Café (23.4%), Thirdly KFC (8.4%), Fourthly, Buffalo burger restaurant (7.4%) and finally, Estakoza restaurant (5.1%). Other restaurants have small portion of the sample.

4.2. Measurement assessment model

First, combined loadings and cross loadings were used to assess individual items’ reliability. Individual factor loading for the research variables were 0.724,1.804,0.747,0.773,0.0723 for menu innovativeness; 0.0765,0.822,0.794,0.673 for  technology based service innovativeness, 0.772,0.653,0.849,0.783 for experience innovativeness, 0.874,0.857,0.888, 0.783 for promotion innovativeness and 0.854, 0.894,0.847,0.888 for revisit intention items all with p-values > 0.001.

Second, internal consistency of the study constructs is measured through composite reliability (CR) and Cronbach’s alpha (A) coefficients. Crombach’s alpha values were 0.811, 0.762, 0.763, 0.870, and 0.894 while composite reliability values were 0.869, 0.849, 0.850, 0.912, and0.926 for menu innovativeness, technology based service innovativeness, experience innovativeness, promotion innovativeness, and revisit intention respectively. Nearly, all the values are higher than 0.7 and less than 0.95 which indicates acceptable and satisfactory levels of reliability.

Third, convergent validity was measured through the value of average variance extracted (AVE) whose values were 0.570, 0.586, 0.589, 0.721, and 0.759 for menu innovativeness, technology based service innovativeness, experience innovativeness, promotion innovativeness, and revisit intention respectively.  AVE values for the study constructs indicate that all constructs are convergently valid.

Finally, discriminant validity was measured by the square root of AVE. For a variable to be distinct from other variables, its’ square root value should exceed the value of its’ correlation with the other variables (Hair et al., 2016). This condition had been met for all the study variables.

4.2. Structural Model and Hypotheses Testing

The following step was to test the research hypothesis through path coefficient and significance level to accept or reject the proposed hypotheses. The following table shows path coefficients and levels of significance for the research hypothesis and determined if the hypothesis is accepted or rejected (Huber et al.(2008) stated that P- value It could be significant when P value ≤ 0.05 ).

Path Coefficients

Effect size values (f²) where it can be (less than 0.02, 0.02, 0.15, and 0.35) representing (no effect size, small, medium, large) respectively. The value of effect size (f²) is calculated. Values is 0.037 that means f² is small.

5. Discussion and Conclusion

The findings revealed that there are significant positive effect for restaurant innovativeness on revisit intention. This result is in line with the findings of Payini et al. (2020), which indicates that domain specific innovativeness seems to exercise significant positive impact on revisit intentions of visitors to food festivals. Similarly, Widiandita et al. (2020) indicated that perceived innovativeness has a positive but not significant effect on repurchase intention. This result is also agree with Chang et al.  (2019), which confirmed that Fitness innovativeness positively affects revisit frequency.

This result is also consistent with several studies (Goldsmith 2001, 2002; Goldsmith & Goldsmith 2002), which confirmed that a positive relationship of internet innovativeness on intention to buy online in the future.

This result is also consistent with Couture et al.  (2015), which concluded that a positive relationship of tourism-specific innovativeness on: the number of visit to website and the number of online purchases in tourism over past year.

This result is also agree with Choi and Kim (2016), which concluded that personal innovativeness was a significant antecedent for the perceived ease of use for a smart watch.

This result is also agree with Kim & Chiu (2019), which mentioned that positive effect of positive technology readiness (optimism and innovativeness) on the behavior of using wearable sports devices.

This result is also agree with Hasan (2019),which confirmed that a more holistic perception on how customer-perceived brand innovativeness can enable creating of positive feelings at the customers’ end, which lead to positive consumption experiences for both customers (i.e. satisfaction) and companies (repurchase intentions).

These results were inconsistent with the results by Chiu & cho (2019), which indicated perceived innovativeness, a component of perceived brand leadership, has no influence on repurchase intention on e-commerce websites. This difference may have been caused because a lot of people do not trust of on e-commerce websites and consider perceived innovativeness as a fake. Therefore, Service providers need to make sure that their unique characteristics remain stable over time to preserve their image of innovation and focus on the development of creative and unconventional ideas (Chang and Ko, 2014; Chang et al., 2016).

5.1. Theoretical and practical implications

The current study is the first study that examined the influence of restaurant innovativeness on revisit intention. The study concluded that implementing restaurant innovativeness practices within restaurants affects positively customers’ revisit intention through innovativeness practices that strengthen their beliefs about the restaurant and increase probability to revisit the restaurant.

This study provides unique contributions to practitioners and will help create effective marketing strategies for the restaurant industry, in addition to academic significance. From a practical perspective, development of a scale to capture restaurant innovativeness will help restaurateurs assess marketing innovativeness strategies that can increase probability of revisit intention.

This study provides important insights for  restaurants managers, the chef and service providers to  apply restaurant innovativeness including (1) menu innovativeness (e.g. offering innovate items into their menu continuously, offering innovative presentation of food and offering an innovative customized menu (dieters& diabetics). (2)  Technology based service innovativeness through Introducing techniques and apps using high-end technology (e.g. providing a speaking menu for the blind and visually impaired and allow them order meals with voice note and providing technological chairs for the disabled and the elderly to facilitate their entry to the restaurant and enjoy with the services). (3) Experience innovativeness (e.g. creating one-of-a -kind experiences for customers and trying to make the atmosphere/environment of the restaurant encourage innovation).  (4) Promotion innovativeness (e.g. focusing on sales promotion and establishing a quality delivery system).

This study also provides important insights for restaurants managers and service providers to increase their customers' revisit intention. As the study recommended with: (1) doing the best to understand and responsive customers' desires and needs through behaving gently and friendly with customers to create competitive advantage and keep loyal customer base, pay more attention to each customer when order service and behave with the customer as VIP and solving customers' problems as quick as possible with friendly way. (2) enhancing the managing of restaurants by human staffs supported with the latest administrative and marketing concepts through creating a specialized marketing department to test and train service providers to develop their skills and performance.

 Limitations and Future Research5.2

Although the current study has presented useful theoretical and practical implications, it also has some limitations that should be taken in researchers’ consideration.

First, the current study used a questionnaire for testing the research hypotheses which provides cross-sectional data, which in turn resulted in not giving any indications about the changes in the research variables overtime. Therefore, future studies can benefit from longitudinal study to observe the changes of the influencing of applying restaurant innovativeness practices on restaurant image and revisit intention over time.

Second, the current study used a sample from Mansoura restaurants' customers only, due to the time and cost constraints. Therefore, the study suggested that future research can depend on larger sample size.

Finally, the study uses a sample from restaurants in Egypt (developing country). Therefore, future studies may depend on restaurants in developed countries and compare the results with the current study.

Consequently, valuable practical implications are also provided to restaurants' marketing manager, restaurants' HR manager, restaurants' public relations manager, restaurants' IT manager, IT designers, chef and service providers. . Finally, the research limitations and suggestions for future research are also discussed.