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The Impact of Service Quality and Perceived Value on Customer Satisfaction: The Mediating Role of Restaurant Image in the Hospitality Industry


Article Information

Title: The Impact of Service Quality and Perceived Value on Customer Satisfaction: The Mediating Role of Restaurant Image in the Hospitality Industry

Authors: Muhammad Talha Khurshid, Dr. Muhammad Umair Nazir, Muhammad Asad Akram Bhatti, Muhammad Bilal Akram Bhatti

Journal: Bulletin of Management Review

HEC Recognition History
Category From To
Y 2024-10-01 2025-12-31

Publisher: Innovative Education Research Institute

Country: Pakistan

Year: 2025

Volume: 2

Issue: 3

Language: en

Keywords: service qualityCustomer satisfactionPerceived ValueHospitality IndustryRestaurant Image

Categories

Abstract

This study explores how service quality and perceived value influence restaurant image and, in turn, affect customer satisfaction in the food, tourism, and hospitality industries. Using a quantitative approach, data were collected through an online survey of 210 respondents. Reliability was confirmed with Cronbach’s Alpha, while discriminant validity was assessed using HTMT and Fornell-Larcker criteria. Results from structural equation modeling showed that service quality and restaurant image significantly impact customer satisfaction, while perceived value indirectly affects satisfaction through restaurant image. However, direct links between service quality and restaurant image, as well as between perceived value and restaurant image, were found to be insignificant. Mediation analysis highlighted that restaurant image mediates the relationship between perceived value and satisfaction but does not mediate between service quality and satisfaction. These findings emphasize that while service quality directly enhances customer happiness, perceived value requires a strong restaurant image to translate into satisfaction. The study provides theoretical and managerial insights, urging restaurant managers to prioritize both service excellence and image-building to foster loyalty and long-term competitiveness.


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