1. Introduction
Since the early 2000s, the coffee chain industry has endured fierce competition because of the emergence of global coffee chains such as Starbucks, Costa Coffee, and Coffee Bean. This intense competition has forced coffee chains to establish long-term relationships and build switching barriers to retain existing customers. Long-term relationships between consumers and service providers are essential to surviving in a highly competitive service marketplace [
1,
2]. Consumer retention reduces marketing costs and enhances revenue and profitability by increasing consumption levels [
3,
4]. Thus, service providers are eager to manage consumers’ service experiences. A number of studies on hospitality management have examined the determinants of consumers’ sustainable outcomes, with most focusing on finding the key antecedents of consumers’ repurchase or revisit intention [
5,
6]. Evidence from prior studies shows that loyal consumers not only revisit a target place but also help recruit more consumers through positive word-of-mouth (WOM) referrals [
7,
8]. Moreover, given the proliferation of social networking services such as Facebook, Instagram, and blogs, consumers tend to spread information about products and services and share opinions with friends. In the coffee chain context, understanding the mechanisms shaping consumers’ positive WOM behaviors in addition to their repurchase intentions is thus helpful for coffee chains to establish service operation guidelines and marketing campaigns. Therefore, to further the understanding of consumers’ sustainable outcomes in the coffee chain context, this study investigates the antecedents of two critical sustainable outcomes: repurchase and positive WOM intentions.
A great deal of research has studied the effect of consumer satisfaction on sustainable outcomes in the service industry. According to expectation disconfirmation theory [
9,
10], consumer satisfaction is a function of the disconfirmation arising from the discrepancy of initial expectations and perceived performance. Satisfied consumers form a repurchase intention and share positive WOM, whereas dissatisfied consumers stop subsequent visits and spread negative WOM. Hence, consumer satisfaction is regarded as the key factor to building and maintaining long-term customer relationships. Brand image is also regarded as a key predictor of consumers’ decision-making in the service industry [
11,
12]. In particular, the intangible characteristics of the service industry may enhance the crucial role of brand image in customers’ decision-making processes because they heavily depend on tangible cues such as interior design, atmosphere, and brand name [
13,
14]. In the highly competitive service market, service organizations try to establish a distinctive image that differentiates them from competitors to shape favorable attitudes toward their brands [
15]. Hence, this study posits that consumer satisfaction and brand image are key elements of the dedication-based mechanism. Although brand image plays an important role in determining consumers’ sustainable outcomes, whether brand image significantly influences these two critical sustainable outcomes is unclear. Thus, to bridge these gaps in the literature, this study also explores the relationships among brand image, customer satisfaction, and the two sustainable outcomes in the coffee chain context.
A number of studies on hospitality management have examined the effect of service experiences on consumers’ decision-making. Customers judge service experiences on the basis of functional, mechanic, and humanic cues [
16,
17]. Functional cues are related to the technical quality of the service. In the coffee chain context, customers want to drink a flavorful coffee served at an appropriate temperature; thus, functional cues are essential to generate a positive attitude toward service experiences. Mechanic cues are nonhuman components in the service environment consisting of facility and atmosphere factors. The physical environment can powerfully affect customers’ attitudes, service evaluation, and behaviors. In the coffee chain setting, the atmosphere, such as the café’s interior and layout, provides distinctive stimuli to customers that enable them to establish positive attitudes toward the coffee chain. Humanic cues are related to employees’ service performance, including tone of voice and empathy. Employees’ effort and service performance contribute to forming a positive brand image and thus customer satisfaction. In the coffee chain context, a friendly smile and sincere greeting can play an important role in creating a superior customer experience [
18]. In the coffee chain context, coffee quality, atmosphere, and service quality may enhance consumer satisfaction and establish a positive brand image. However, few studies have investigated these three perspectives of service experiences in relation to consumer satisfaction and brand image in the coffee chain context. From the dedication-based mechanism perspective, this study thus posits that coffee quality, the quality of the physical environment, and service quality are vital components of service experiences in developing consumer satisfaction and brand image.
Some researchers have pointed out that sustainable outcomes can be affected by both dedication- and constraint-based mechanisms, as some consumers may revisit certain restaurants or coffee chains because of constraints rather than dedication [
3,
19]. The constraint-based mechanism makes it costly to transfer to another product or service, thereby “locking in” customers. Several studies have shown that this mechanism is captured by perceived switching costs, which are related to the economic, social, or psychological investment that locks consumers into certain services [
3,
20]. In the coffee chain context, perceived switching costs play an important role in developing sustainable outcomes, because most coffee chains provide reward programs to lock consumers in. Once consumers become familiar with the coffee aroma and facilities of their frequently visited coffee chains, they hesitate to visit an alternative brand. This study investigates the effects of perceived switching costs on consumers’ sustainable outcomes in the coffee chain context. Moreover, it examines the key determinants of perceived switching costs. Loyalty programs are an effective tool to increase consumers’ perceptions of switching costs and build enduring relationships [
21,
22]. Switching to other service providers may involve forgoing cumulative points and expending effort and time collecting and using points [
23]. By contrast, several studies have shown the vital effect of habit on forming perceived switching costs. Kim et al. [
24] revealed that perceived switching costs are significantly affected by learning and habit in the context of mobile messenger applications. Since transferring to other service providers may require additional information processing, habitual consumption leads customers to stay with the current service provider [
25]. In the coffee chain context, habit may play an important role in developing perceived switching costs since visiting certain coffee chains is a daily routine. Thus, this study posits that loyalty programs and habit are the main factors forming perceived switching costs concerning coffee chains.
This study contributes to the hospitality management literature in several ways. First, it clarifies the role of dedication- and constraint-based mechanisms in shaping consumers’ sustainable outcomes. It compares the relative effects of key factors on both repurchase and positive WOM intentions, two critical sustainable outcomes. Second, this study examines the relative importance of three components of service experiences on customer satisfaction and brand image. Finally, it empirically tests the role of loyalty programs and habit on the formation of perceived switching costs. This study uses structural equation modeling (SEM) to analyze data from 238 university students who frequently visit coffee chains. The findings offer service managers and practitioners several insights into customers’ sustainable outcomes. Understanding the antecedents of consumers’ intentions to repurchase and recommend coffee chains can help service managers increase positive WOM and revenue. The findings will help service managers generate distinctive customer experiences by stimulating the key elements of service experiences. Moreover, service managers and practitioners can form and develop consumers’ perceptions of switching costs by stimulating their significant and prominent enablers.
5. Discussion
5.1. Summary of the Results
Drawing upon the dedication/constraint model, this study describes why consumers continue to repurchase from certain coffee chains and resist transferring to a rival. The theoretical framework asserts that consumers’ sustainable outcomes are determined by both dedication-based and constraint-based factors. The analysis results find that dedication-based and constraint-based factors act as independent antecedents of the formation of consumers’ sustainable outcomes. Among the dedication-based factors, brand image has a stronger effect on both consumers’ repurchase and positive WOM intentions than consumer satisfaction. This finding implies that generating and maintaining a differentiated brand image is a powerful way of enhancing consumers’ sustainable outcomes. Perceived switching costs also explain a considerable amount of the variance in consumers’ repurchase and positive WOM intentions in the coffee chain context.
The results also show that coffee quality is positively associated with both customer satisfaction and brand image. This finding implies that coffee quality accelerates the positive attitude toward a target coffee chain and thus serves as a key antecedent to shaping consumer satisfaction and brand image. However, contrary to prior expectations, consumers’ perceptions of the quality of the physical environment and service quality do not significantly affect consumer satisfaction. Although consumers generally evaluate service experiences based on functional, mechanic, and humanic cues, the atmosphere of a coffee chain and employee capability do not significantly influence consumer satisfaction in this context owing to the homogeneous and undifferentiated physical environment and employee service performance across coffee chain brands. The results indicate that both physical environment quality and service quality are positively associated with brand image. Consumers with higher perceptions of the quality of physical environment and service quality have a higher positive feeling about certain coffee chains, leading to greater intentions to repurchase and recommend. Thus, this study contributes to the service management literature by identifying the role of three components of service experience in the coffee chain context.
Finally, this study explored the key enablers of perceived switching costs. It found that loyalty programs had no significant effect on the formation of switching costs concerning certain coffee chains. Liu [
50] showed that loyalty programs do not prompt consumers to change their purchase behaviors. This finding implies that most loyalty programs in coffee chains look alike and have similar reward benefits, thus reducing their effectiveness. However, in line with Kim et al. [
24], habit significantly influenced consumers’ switching costs in the coffee chain context. Ye and Potter [
51] also showed that users’ habits of choosing an incumbent product or service impede their intentions to switch. These results confirm that habit plays a vital role in the formation of the perceived switching costs of coffee chains.
5.2. Theoretical Implications
One major contribution of this study is its confirmation of the effect of dedication- and constraint-based mechanisms on consumers’ sustainable outcomes in the coffee chain context. The presented findings show that consumers’ sustainable outcomes are shaped by two mechanisms: (a) consumer satisfaction and brand image of the coffee chain, as formed by the prospect of a long-term and enduring relationship, and (b) perceived switching costs, which make it hard for the consumer to switch to other coffee chains. Hence, by adapting the dedication-based and constraint-based framework, this study advances the understanding of consumers’ decision-making processes in the coffee chain context. By assessing the chi-square difference test (
22.3,
p < 0.01), this study finds that perceived switching costs offer a considerable amount of explanatory power for consumers’ sustainable outcomes. In addition,
Table 6 shows the difference of
and Cohen’s kappa.
Second, this study examined the role of brand image in consumers’ sustainable outcomes. In the coffee chain context, Tu et al. [
2] showed that brand image significantly affects customer loyalty. This study also reveals that brand image significantly influences consumers’ intentions to repurchase and positive WOM. Moreover, brand image has a greater explanatory power than consumer satisfaction on consumers’ sustainable outcomes, because the impact of brand image strengthens with the direct consumer experience of the coffee chain [
52]. The presented results showed that the relationship between brand image and repurchase intention was stronger (
p < 0.05) than that between customer satisfaction and repurchase intention. Further, brand image was a stronger predictor of positive WOM intention (
p < 0.05) than was customer satisfaction.
Third, the study sheds light on the impacts of the qualities of coffee, physical environment, and service on dedication-based factors. Several studies have identified functional, mechanic, and humanic cues as vital components of service experiences. Jin et al. [
13] examined the effects of the quality of the physical environment and food quality on brand image and customer satisfaction. They found that both the quality of the physical environment and food quality affect brand image. Chen et al. [
53] investigated restaurant-specific stimuli such as food, atmosphere, and service quality in the context of luxury restaurants. They found that such stimuli significantly influence customers’ emotions during service encounters, which, in turn, affect behavioral intentions. However, in contrast to the literature, the presented results revealed different effects of these three quality elements on customer satisfaction and brand image in the coffee chain environment. Customers regard service quality as a key attribute or service experience in evaluating consumer satisfaction, while the excellent quality of coffee, the physical environment, and service leads to a differentiated brand image. This study thus clarified the different roles of these three service dimensions on customer satisfaction and brand image in the coffee chain context.
Lastly, this study offers an in-depth understanding of the enablers of perceived switching costs. This study found that loyalty or reward programs do not generate consumers’ perceptions of switching costs. This finding supports Mattila’s [
54] results that such programs fail to explain customer loyalty. Meyer-Waarden and Benavent [
21] also demonstrated that consumers only slightly change their buying patterns after they join loyalty programs in the grocery retail context. This study thus confirms the salient power of habit in explaining perceived switching costs. Customers tend to stay with frequently visited coffee chains when the attractiveness of alternatives decreases and switching costs increase. Consumers are also likely to repurchase and spread positive WOM about their current coffee chain rather than transfer to an alternative chain based on routine choice.
5.3. Managerial Implications
The results of this study provide coffee chain managers with insight into how to improve consumers’ sustainable outcomes. First, this study suggests that consumers’ sustainable outcomes are shaped by well-managed dedication- and constraint-based mechanisms. Therefore, the optimal strategy for coffee chains is to both offer excellent service to customers and increase switching costs. In particular, the results advise service managers and practitioners to focus on developing a distinctive brand image among dedication-based factors, which has a greater impact on consumers’ repurchase and recommendation intentions than consumer satisfaction. A distinctive brand image is a source of information at the point of visit since it reduces quality risks and simplifies the complexity of customers’ decision-making processes. Once customers perceive positive feelings about a certain brand, they remain loyal to the coffee chain and recommend it to others. Although most coffee chains have similar beverages and ambience, a premium brand image is thus a key driver of the development of long-term relationships with consumers. Thus, coffee chain managers should try to differentiate their chains from competitors by establishing a distinctive and premium brand image.
Another practical implication is that understanding the prominent determinants of dedication-based factors can help coffee chain managers enhance consumer satisfaction and brand image. Excellent services evoke positive feelings toward the chain, which leads to long-term relationships with consumers. Studies of hospitality management have shown that consumers regard products, employee services, and the physical environment as key attributes of service experiences. To strengthen relationships with consumers, coffee chain managers must thus recognize the different role of the three components of service experiences. In this context, coffee quality is essential to enhance consumer service experience. To assure coffee quality, Starbucks and Coffee Bean deliver structured training programs for supervisors to train and develop baristas. These training programs help employees learns coffee-related skills and provide the knowledge required to baristas and managers. Of tangible service perceptions, customers expect comfortable seating, lighting, and a warm atmosphere to strengthen brand identification. Thus, coffee chain managers should try to create a welcoming and familiar environment for customers. Further, because consumers continuously compare the available coffee chains and choose those with better service qualities, coffee chain managers must also allocate resources to enhancing service quality and thus brand image. Moreover, they could develop operation manuals and train employees to prevent service failures and improve service quality.
The last practical implication is that understanding the prominent role of perceived switching costs can help coffee chain managers manipulate their switching barriers. To retain consumers, managers should manage such costs. The higher the perceived switching costs, the more likely customers are to stay with their preferred coffee chain. By developing habitual consumption, coffee chains can discourage customers from switching. Launching mobile applications for orders and payments could also help customers visit certain brands frequently. For example, Starbucks has developed a mobile application for payments and personalized orders. More than eight million customers had downloaded this mobile application by 2014, helping increase revenue by 11%. Thus, coffee chain managers should try to increase switching costs by developing habitual consumption patterns. Mobile applications offer several benefits such as increasing customers’ switching barriers and enhancing consumers’ orders and payments.