Relative Effects of Physical Environment and Employee Performance on Customers’ Emotions, Satisfaction, and Behavioral Intentions in Upscale Restaurants

This study explored the structural relationships among the physical environment, employee performance, and diners’ emotional states, satisfaction, and behavioral intentions, applying the Mehrabian–Russell’s theoretical framework in upscale restaurants. Empirical data were collected from 275 upscale restaurant patrons. The results showed that both intangible (employee service) and tangible (physical environment) factors have significant impacts on diners’ emotional responses (pleasure and arousal), and these emotional responses affect customer satisfaction and behavioral intentions. This study found that the physical environment exerted a greater impact on arousal than employee behavior while employee behavior had a greater impact on pleasure than physical environment. In addition, arousal was found to have a positive influence on pleasure. We discussed managerial and theoretical implications based on these findings