Effect of Physical Environment Quality on the Customer Loyalty through Perceived Value and Customer Satisfaction in De Soematra 1910 Restaurant in Surabaya

This paper main aim is to maintain and improve restaurant performance becomes more competitive and seeks to improve customer loyalty for De Soematra 1910 restaurant in Surabaya and an interesting research model that can be applied to the De Soematra 1910 restaurant as an object in Surabaya which has an exclusive colonial style design (Dutch era) and has a unique vibes. A quantitative with data processing using AMOS. Data collection was carried out by distributing questionnaires to 250 respondents with the characteristics of male and female in the age range 18-60 years, have visited and had done fine dining at least 2 times in the last 6 months and monthly income between IDR 1,000,000,.- IDR 20,000,000,. at the De Soematra 1910 in Surabaya. The results showed that 9 hypotheses were accepted and 10 hypotheses were rejected. The paper also statistically shows significant and insignificant relationships between 7 dimensions of Physical Environment Quality (Aesthetics, Ambience, Lighting, Table Settings, Layout, Staff and Music) that affect Customer Loyalty through the dimensions of Perceived Value (Hedonic and Utilitarian) and Customer Satisfaction. The research findings present incremental implications for De Soematra 1910 restaurant marketing management. Findings recommend that manager, service providers – procedures and Physical Environment Quality elements would make service quality standards becomes high level preferred by the customers toward first class restaurant. This should subsequently helps the restaurant building their strong satisfaction, loyalty and positive image