Influence of Physical Environment on Disconfirmation, Customer Satisfaction, and Customer Loyalty for First-time and Repeat Customers in Upscale Restaurants

This study proposed a conceptual model to examine how customers’ perceptions of physical environment influence disconfirmation, customer satisfaction, and customer loyalty for first-time and repeat customers in upscale restaurants. Using a structural equation modeling analysis, this study showed that facility aesthetics, lighting, layout, and social factors had significant effects on disconfirmation. Moreover, disconfirmation had direct influences on customer satisfaction and customer loyalty. Customer satisfaction also positively influenced customer loyalty. Finally, the impacts of facility aesthetics, lighting, service product, and social factors on disconfirmation significantly differed between first-timers and repeaters. The implications for academic researchers and marketing practitioners were discussed.