The Influence of the 7Ps Marketing Mix on Customer Loyalty: The Mediating Role of Perceived Value in Restaurants in The Maldives
Abstract:
The restaurant industry has become increasingly competitive, making it essential for businesses to understand the marketing factors that influence customers’ perceived value and loyalty. This study examined the influence of the proposed 7Ps marketing mix on perceived value and customer loyalty in the Maldivian restaurant industry, with perceived value serving as a mediating variable. A quantitative research design was employed, and data were collected from 404 customers in the Maldives using a structured questionnaire. The data were analysed using descriptive statistics, confirmatory factor analysis (CFA), and structural equation modelling (SEM) with AMOS. The findings revealed that physical evidence and people had significant positive effects on perceived value, whereas product, price, and place did not significantly influence perceived value. Perceived value also had a significant positive effect on customer loyalty. Furthermore, perceived value significantly mediated the relationships between physical evidence and customer loyalty and between people and customer loyalty, whereas no significant mediating effects were found for product, price, or place. During the measurement model assessment, the promotion and process constructs were excluded because they did not meet the required psychometric criteria; therefore, the final model comprised the retained marketing mix dimensions. This study contributes to the service marketing literature by providing empirical evidence from the Maldivian restaurant industry on the relationships among the retained marketing mix dimensions, perceived value, and customer loyalty. The findings also offer practical implications for restaurant managers by highlighting the importance of the physical service environment and employees’ role in service delivery in enhancing customers’ perceived value and strengthening customer loyalty.
KeyWords:
7Ps marketing mix, perceived value, customer loyalty, restaurant industry, structural equation modelling
References:
- Alafeef, M. (2020). The influence of service marketing mix on customer loyalty towards Islamic banks: Evidence from Jordan. International Journal of Academic Research in Accounting, Finance and Management Sciences, 10(3), 239–255. https://doi.org/10.6007/IJARAFMS/v10-i3/7862
- Alwinie, A. A., Nurhayati, P., & Sartono, B. (2024). The role of 7P marketing mix toward consumer satisfaction and loyalty of XYZ Beauty Clinic. Journal of Consumer Sciences, 9(1), 40–62. https://doi.org/10.29244/jcs.9.1.40-62
- Az-zahra, Q., Laekkeng, M., Semmaila, B., & Plyriadi, A. (2024). The influence of marketing mix, perceived brand image and customer value on loyalty through customer satisfaction at Islamic banks in Makassar City. International Journal of Religion, 5(11), 7114–7131. https://doi.org/10.61707/4jxz2v46
- Baig, M. W., Qamar, S., Fatima, T., Khan, A. M., & Ahmed, M. (2020). The impact of marketing mix and customer value on customer loyalty. Munich Personal RePEc Archive. https://mpra.ub.uni-muenchen.de/104683/
- Booms, B. H., & Bitner, M. J. (1981). Marketing strategies and organisational structures for service firms. In J. H. Donnelly & W. R. George (Eds.), Marketing of services (pp. 47–51). American Marketing Association.
- Dick, A. S., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2), 99–113. https://doi.org/10.1177/0092070394222001
- Elgarhy, S. D., & Mohamed, L. M. (2023). The influences of services marketing mix (7Ps) on loyalty, intentions, and profitability in the Egyptian travel agencies: The mediating role of customer satisfaction. Journal of Quality Assurance in Hospitality & Tourism, 24(6), 782–805. https://doi.org/10.1080/1528008X.2022.2080148
- Fajrin, T. R., & Aprianingsih, A. (2024). The influence of marketing mix (7Ps) to customer satisfaction, customer loyalty and customer retention at coffeeshop. Ekombis Review: Jurnal Ilmiah Ekonomi Dan Bisnis, 12(3), 2645–2658. https://doi.org/10.37676/ekombis.v12i3
- Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104
- Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
- Hizrianto, M. R., & Sudarti, K. (2024). Model peningkatan customer loyalty melalui e-service quality, peer recommendations, dan trust online shop fashion. Jurnal Ilmiah Sultan Agung, 3(1), 279–304.
- Kline, R. B. (2023). Principles and practice of structural equation modeling (5th ed.). Guilford Press.
- Kotler, P., & Armstrong, G. (2021). Principles of marketing (18th ed.). Pearson.
- Lee, D. K. (2023). Impacts of a beauty shop's marketing mix (7Ps) on perceived value, reputation, and revisit intention. The Korean Journal of Franchise Management, 14(4), 67–83.
- McCarthy, E. J. (1960). Basic marketing: A managerial approach. Richard D. Irwin.
- Mohamed, A. M. (2024). The influence of the marketing mix on customers' loyalty in the fast food restaurants in Upper Egypt: Customers' satisfaction as a mediator. The International Journal of Tourism and Hospitality Studies, 6(2), 108–133. https://journals.ekb.eg/article_347637_d4547a3b96c6287492bb88ca776964e6.pdf
- Nengsih, S., Bachri, N., Edyansyah, T., & Asbar, Y. (2024). Analysis of the influence of the 7P marketing mix on consumer loyalty shipping services company. Jurnal Ilmiah Manajemen dan Bisnis, 10(1), 138.
- Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63(4_suppl1), 33–44. https://doi.org/10.1177/00222429990634s105
- Ravangard, R., Khodadad, A., & Bastani, P. (2020). How marketing mix (7Ps) affect the patients' selection of a hospital: Experience of a low-income country. Journal of the Egyptian Public Health Association, 95(1), 25. https://doi.org/10.1186/s42506-020-00052-z
- Razzan, H., Fahud, A., Dheena, A., & Shafeeq, A. (2024). A critical examination of the Maldives F&B industry and introduction of a product to the market. ResearchGate. https://doi.org/10.13140/RG.2.2.20916.05760
- Safitri, R. D., Rahayu, R., & Hidayat, M. S. (2023). The influence of marketing mix (7Ps) on purchasing decisions at Estusae Café Trawas-Mojokerto. Student Scientific Creativity Journal, 1(5), 488–508. https://doi.org/10.55606/sscj-amik.v1i5.2141
- Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing, 77(2), 203–220. https://doi.org/10.1016/S0022-4359(01)00041-0
- Tanjung, I. (2021). Analysis of the effect of marketing mix 7P on purchase decisions at Sentra Snack Stores. International Journal of Review Management, Business and Entrepreneurship, 1(2), 125–133. https://doi.org/10.37715/rmbe.v1i2.2421
- Westfall, P. H., & Henning, K. S. S. (2013). Understanding advanced statistical methods. CRC Press.
- Woodruff, R. B. (1997). Customer value: The next source for competitive advantage. Journal of the Academy of Marketing Science, 25(2), 139–153. https://doi.org/10.1177/0092070397252006
- Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2–22. https://doi.org/10.1177/002224298805200302
- Zeithaml, V. A., Verleye, K., Hatak, I., Koller, M., & Zauner, A. (2020). Three decades of customer value research: Paradigmatic roots and future research avenues. Journal of Service Research, 23(4), 409–432. https://doi.org/10.1177/1094670520948134