Perceived Fairness, Emotions, and Intention of Fast Food Chain Restaurants Customers in Indonesia
Perceived Fairness, Emotions, and Intention of Fast Food Chain Restaurants Customers in Indonesia
Perceived Fairness, Emotions, and Intention of Fast Food Chain Restaurants Customers in Indonesia
Gadjah Mada International Journal of Business – May-August, Vol. 20, No. 2, 2018
Abstract: This study aims to investigate interrelationships among perceived service fairness, emotions,
and behavioral intentions in a fast food chain restaurant context. we use terms that are commonly use on
the study of fairness or justice perception. This study uses purposive sampling and the survey method to
generate our sample which consists of 800 respondents from big cities in Indonesia, namely: Jakarta,
Semarang, Surabaya, Medan, and Makassar. The data are analyzed using Structural Equation Modeling
(SEM). The results show different roles for each fairness perception in relation to peoples’ emotions and
behavioral intentions, based on the Mehrabian-Russel model. Three fairness variables (price fairness, out-
come fairness and interactional fairness) have positive and significant effects on customers’ positive emo-
tions, while, procedural fairness does not influence the formation of a positive emotion. Furthermore, a
positive emotion has a positive influence on a customer’s behavioral intention. Data collected in this study
are limited to the context of the restaurant industry, therefore, precaution must be taken when generaliz-
ing these results to other industries. The results of this study can serve as guidelines for managers in the
restaurant industry to develop effective and efficient strategies for ensuring their services’ perceived fair-
ness and its impact on both customers’ retention rates and the companies’ financial gains.
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For example, Cropanzano and Stein those studies tended to be conducted in some
(2009) show that organizational unfairness is type of organizational setting and not in the
capable of influencing the ocurrence of em- area of service hospitality organizations,
ployees’ negative emotions, which can lead such as hotels or restaurants. The fairness
to their unethical behavior as a result of the concept used mostly in those studies is based
unfairness they experienced. Tzafrir and on the concept of the equity theory proposed
Hareli (2009) conducted a study into the in- by Adams (1966); while this study uses the
fluence of organizational justice on the for- fairness concept proposed by Seiders and
mation of employees’ positive and negative Berry (1998). Consumers perceive and assess
emotions when they receive a promotion. fairness or unfairness based on the situation
Their study only focused on two variables of related to the potential of maximizing prof-
organizational fairness, which were proce- its by minimizing personal investment or sac-
dural justice and distributive justice. Reuben rifice (Chou et al. 2009). Therefore, accord-
and van Winden (2010) argue that a per- ing to this study, the benefits received by cus-
ceived unfairness by an individual will form tomers and their sacrifices are related to the
a perceived negative emotion (guilt and hu- actual context of the fairness theory (distribu-
miliation) but has no consequence on the for- tive fairness, procedural fairness, and inter-
mation of certain behavior. Radke et al. actional fairness). Thus, this study hopes to
(2013) studied the irrational behavior carried obtain a better understanding concerning
out by individuals who experience depression service’s fairness that captures all the vari-
as a result of perceived unfairness towards ous service contexts based on consumers’
their negative emotions. They employed a sacrifices and the benefits they receive. Mon-
unidimensional fairness concept in their re- etary and time costs, which are associated
search, aside from the fairness concept, which with the experience of customers’ consump-
comprised of procedural, distributive, and tion, are consider as constructs representing
interactional fairness. A study by Uludag sacrifices made by customers, while products
(2014) on the infuence of fairness toward (services non-interactions) and personnel (the
verbal and physical aggresion does not fully way customers are treated) obtained by cus-
explain the measure of the dimension of fair- tomers while consuming products or services
ness towards aggresion as a form of negative are consider as constructs representing cus-
emotion. Moreover, the study by Silva and tomers’ benefits.
Caetano (2016) into organizational fairness In order to fill this research gap, this
across different cultures shows that differ- study proposes a theoretical model which re-
ences in the perception of an organization’s lates to service fairness, emotion, and behav-
members toward organizational fairness is ioral intentions, and examines this empirically
related to the culture where the organization in the context of the service industry, espe-
belongs. They state that the consequences that cially for restaurants. The definition of ser-
arise from organizational unfairness are posi- vice fairness used in this study is the service
tive and negative emotions which are ex- fairness perception of customers related to
pressed by the employees both verbally and the service behavior of organizations or com-
nonverbally. panies (Namkung and Jang 2010). The back-
According to the previous studies, as ground of this study is the customers of fast-
mentioned above, this study concluded that food chain restaurants in Indonesia. Based on
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Budiyanti and Patiro
the data from Euromonitor International: Fast cific judgements about a particular case with-
Food in Indonesia year 2016, there are 7,236 out referring to one’s own feelings
fast-food chain restaurants throughout Indo- (Goldenberg et al. 2016; Faullant et al. 2017).
nesia, which are mainly located in the big cit- In connection with the marketing of
ies. According to data from AAFC Kanada, services, Bagozzi (1975) introduces the con-
part of the Ministry of Farming and Agri- cept of fairness/equity into the marketing
food, in 2015, the fast-food chain industry in exchange theory. He examines the relation-
Indonesia is predicted to grow at roughly ship of fairness in the context of dyadic reci-
around 9.2 percent between 2015 and 2019. procity and the equality needed to maintain
Therefore, it is appropriate to select fast-food the process of ongoing exchanges between
restaurants for our study’s setting. the customer and the marketer. Aggarwal and
This study was conducted in the big cit- Larrick (2012) and Blader et al. (2013) also
ies in Indonesia, such as Jakarta, Semarang, discuss the consumers’ perceptions of mar-
Surabaya, Medan, and Makassar, where some keting practices which are unfair, and so have
of these fast-food chain restaurants are lo- consequences
cated. The selection of research locations is Seiders and Berry (1998) summarize
based on the areas that have high economic the relevant principles based on three catego-
growth and big populations. These fast-food ries of fairness (procedural, distributive, and
chain restaurants have always emphasized interactional) and show these principles are
they satisfy their customers with the quality appropriate for customers to assess the fair-
of their service.
ness they have experienced. Aggarwal and
Based on the previous discussions, the Larrick (2012) and Lee et al. (2013) also
main objectives of this study are to deter- found that three types of fairness are likely
mine the relationship between service fair- to be relevant for background services, such
ness, emotions, and behavioral intentions, as those found in banks, medical facilities,
and to discern the level of importance of each fast-food restaurants, and luxury restaurants,
dimension of service fairness in the context and hence these may be used as a basis for
of restaurant services, and to provide infor- assessment by consumers.
mation for fast-food chain restaurant entre-
The role of fairness in the context of
preneurs to evaluate their service’s qualities
the recovery of service failures has also been
in terms of their service’s fairness.
the focus of attention in many studies. Ac-
cording to Chou et al. (2009) the role of fair-
Literature Review ness, in the context of the recovery of ser-
vice failures, is particulary significant for
The Effect of Fairness on Service some service industries, such as hairdressers,
restaurants or cafes, supermarkets, and banks.
Marketing
By adding a moderating effect of loyalty, Hur
Fairness is defined as an action which et al. (2014) found that both types of fair-
is deemed appropriate from an individual’s ness (distributive fairness and procedural fair-
perception (Aggarwal and Larrick 2012). The ness), when performing recovery services,
term fairness is often used with regard to the have a significant influence on the reactions
ability to make unbiased, concrete and spe- of loyal customers. Although the principles
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Gadjah Mada International Journal of Business – May-August, Vol. 20, No. 2, 2018
of fairness have provided a better under- cated externally from people and consist of
standing concerning the influence of fairness, various elements of physical atmosphere.
especially in the context of service failures Furthermore, the organism refers to structure
and service recovery, yet other areas of re- and internal processes which consequently
search outside these two contexts are limited will intervene in the relationship between the
and not well developed. external stimuli of people and the attitude
being demonstrated or responded to. This
Mehrabian-Russell Model suggests that the impact of the stimuli on
human behavioral intentions is mediated by
This study is based on a model devel-
emotion.
oped by Mehrabian and Russell (1974) for
environmental psychology. They proposed According to Mehrabian and Russell
that environmental stimuli (S) lead to an (1974), there are three forms of emotion,
emotional reaction (O) which, in turn, drives namely: Pleasure, passion, and power. Fur-
consumers’ behavioral response (R), based on thermore, the response to the environment
the Stimulus–Organism–Response (S–O–R) can be classified as either an approach or
paradigm. They posited that consumers have avoidance. Approach behavior includes such
three emotional states in response to envi- things as: Desire to stay, observe the area
ronmental stimuli: Pleasure, arousal, and around you, explore the environment, and
dominance. According to their study, these communicate with others in the environment.
emotional responses result in two contrast- Avoidance behavior is the opposite of ap-
ing behaviors: Approach or avoidance. Ap- proach behavior. Our study applies the model
proach behavior involves a desire to stay, of Mehrabian and Russell (1974) and modi-
explore, and affiliate with others in the envi- fies it in accordance with the background of
ronment, whereas avoidance behavior in- this research (see Figure 1).
cludes escaping from the environment and In line with Mehrabian and Russell
ignoring any communication attempts from (1974), some justice researchers rely on the
other people (Jang and Namkung 2009; social exchange theory to predict relations be-
Namkung and Jang 2010). Using Mehrabian tween perceived fairness and its outcome
and Russell’s model, many studies have been (Cropanzano et al. 2007; Cropanzano et al.
conducted on the role of environmental 2008; Cropanzano and Stein 2009). The so-
stimuli as a predictor of emotional responses, cial exchange theory views organizations as
such as pleasure or arousal, and as a predic- arenas for long-term, mutual social transac-
tor of consumers’ behavior, such as the ex- tions between employees and their organiza-
tra-time they spend in a store and their ac- tion (Cropanzano et al. 2007; Cropanzano et
tual incremental spending (Jang and Namkung al. 2008; Cropanzano and Stein 2009). Jus-
2009). tice is considered to be an input of the orga-
Based on the Mehrabian-Russell model, nization to the exchange relationship and
environmental stimuli will affect the individu- derives from either (a) the organization or (b)
als’ emotions and as a result will affect their the direct supervisor (Cohen-Charash and
response in the form of approach or avoid- Spector 2001). Futhermore, according to
ance (Namkung and Jang 2010). In their re- Cohen-Charash and Spector (2001), attitudi-
search model, stimuli are the stimuli is lo- nal and affective reactions toward the orga-
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Budiyanti and Patiro
Emotional Behavioral
Response
Response
Stimulus
Positive Behavioral
Fairness
Emotion Intention
nization were predicted by fairness models, to include both external (i.e. reputation) and
where procedural fairness predicted cognitive internal sources of information (i.e. website
reactions toward the organization, distribu- quality) as stimuli which affect consumers’
tive fairness predicted affective and cogni- response systems. Therefore, the purpose of
tive reactions toward the outcomes (Cohen- their paper was to test a more comprehen-
Charash and Spector 2001). sive model consisting of reputation and
There is some research based on the website quality (stimuli), cognition and emo-
Mehrabian-Russell model, namely: Jang and tion (organism) and purchase intention (re-
Namkung (2009), who undertook research to sponse). Further, Chen et al. (2015) exam-
address the lack of a comprehensive evalua- ined diners’ luxury restaurant consumption
tion of restaurants’ quality. Their study ex- behavior by incorporating diner expectations
tends Mehrabian and Russell’s stimulus–or- into a modified Mehrabian–Russell model.
ganism–response framework by incorporat- They argue that consumers dine at luxury res-
ing restaurant-specific stimuli and including taurants for reasons beyond fulfilling their
restaurant-specific measures of emotion. Lee basic needs.
(2010) investigated how technology products’ The results from all this research shows
attributes influence consumer responses. He that the framework, based on the environ-
proposed a research model of consumers’ use mental psychology model of Mehrabian and
of technology products by applying the Russell (1974), could be used to describe the
Stimulus-Organism-Response (S-O-R) frame- sources for the various environments as in-
work (Mehrabian and Russell 1974) to sug- puts/stimuli, and their effects on people’s
gest that technology products’ attributes elicit emotions and behavior. Accordingly, this re-
consumers’ cognitive (attitude) and affective search considers fairness as an input of the
(pleasure and arousal) responses, leading to organization to predict affective and behav-
their approach-avoidance behavior. ior reactions toward outcomes (Cohen-
Charash and Spector 2001).
Ltifi and Gharbi (2012) studied the im-
pact of emotional states and the perceived
risk of remote purchasing on e-satisfaction
Service Fairness
during Internet shopping, as well as the in- For decades, fairness has been viewed
fluence of e-satisfaction on e-loyalty. Kim and as a three-dimensional construct, comprised
Lennon (2013) extended Mehrabian and of distributive fairness, procedural fairness,
Russell’s stimulus-organism-response model and interactional fairness (Seiders and Berry
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Gadjah Mada International Journal of Business – May-August, Vol. 20, No. 2, 2018
1998; Cropanzano et al. 2008; Aggarwal and ticular it is the magnitude of the economic
Larrick 2012; Hur et al. 2014). Although the costs sacrificed in any transactions. Thus,
principles of fairness developed in social psy- price fairness is defined as the customers’
chology may be useful in the contexts for assessment of the difference between what
which they are developed, they may have they expect to receive and what they actually
limitations when applied to specific con- receive (Kahneman et al. 1986). That is, con-
sumption situations. For example, Deutsch sumers generally have internal standards set
(1985) criticizes the measurement capabili- for the actual price, and compliance with
ties of the original theory of fairness, because these standards will be verified when a judg-
it is difficult for consumers to assess the in- ment is made as to whether it is equitable or
put and output values at the same time. Chou not.
et al. (2009) in their study also argued that The perception of fairness is the judg-
when equity is accounted for in the process ment of whether or not customers accept an
of changing inputs into outputs, with a cer- outcome and/or a transaction process as be-
tain outcome for a customer, it will create ing reasonable, acceptable, and just (Heo and
problems with the operationalization of fair- Lee 2011; Su et al. 2015; Su et al. 2016). Since
ness itself. Since there are conflicting views assessments of price fairness are subjective,
about the dimensions of fairness, a consen- some studies have focused on consumers’
sus is growing that the perception of fairness perceptions regarding relative prices (Haws
is a dependent context, which is not only ap- and Bearden 2006; Gielissen et al. 2008; Xia
propriate for the service failure situation, but et al. 2004). A study by Homburg et al. (2014)
it may also be applied in other situations shows that the price stated in the menu may
(Azar and Darvishi 2011; Aggarwal and be assessed differently by a customer, depend-
Larrick 2012; Blader et al. 2013). ing on the stimulus (stimuli) provided by the
According to Seiders and Berry (1998), restaurant. Daskalopoulou (2008) found evi-
restaurant patrons who are dissatisfied with dence that a price’s fairness perception is
the food served to them, due to its poor qual- based on the acceptance level of the indi-
ity, which they believe is not equivalent with vidual and the prevailing social standards. The
the price they are paying, will question the concept of price in this study is different from
distributive fairness of the transaction. If the concept of price from previous studies,
these patrons are kept waiting for a table de- which stated that prices are fixed and abso-
spite having a reservation, and also for food lute (Kukar-Kinney et al. 2007). Thus, to
and beverage service (once seated), they will expand the understanding of consumers’ per-
question the procedural fairness. Moreover, ceptions of prices’ fairness, this study pro-
if they experience insulting treatment or a poses that the definition of price fairness is
disrespectful attitude from the service staff, the assessment of the overall consumers’
they will also question the interactional fair- price based on a comparison between the
ness. From the perspective of the customers’ actual price and the acceptable price, accord-
sacrifice in consuming the product or service, ing to social standards and conformance lev-
the price to be paid (price fairness) and time els (Homburg et al. 2014).
spent (procedural fairness) are substantial As one of the aspects of customers’
factors (Seiders and Berry 1998). In general, sacrifices, time is viewed as a limited resource
price will appear in any situation, and in par- (Croonen 2010; Liang et al. 2017; Chun et
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Budiyanti and Patiro
al. 2018). Customers’ evaluations toward the rectly interact with the service. The service
waiting process are not only altered objec- contact is the critical moment of truth when
tively but also subjectively (Azarand Darvishi customers often attain unforgettable impres-
2011). When there are two customers who sions concerning a business (Lee et al. 2013;
assess time differently, but who are kept wait- Hur et al. 2014). This condition only lasts
ing for the same duration, they will differ in for a few minutes, and may satisfy the cus-
paying for the services they receieved (Blader tomers, or frustrate them (Liang and Zhang
et al. 2013). In restaurants, the waiting time 2011). Therefore, interactional fairness in this
derives from conditions which require extra study refers to the interest and respect shown
time, such as service preparation (i.e. how to by service providers to customers, and as a
serve the food) or a level of demand beyond result, customers will feel that they are
the system’s capacity (i.e. customers arrive treated fairly during the interaction (Aggarwal
when the requirement for service already ex- and Larrick 2012). Thus, in general, our study
ceeds the providers ability to accomodate it). develops a model of fairness services con-
Thus, with regard to this discussion, the con- sisting of four variables of fairness, namely:
cept of procedural fairness can be defined as Price fairness, procedural fairness, outcome
the accuracy of time and the efficiency of fairness, and interactional fairness, all of
the service system as a part of the custom- which will be tested empirically in the con-
ers’ sacrifice, since waiting time and delayed text of restaurant service, specifically fast-
service are categorized as drawbacks. food chain restaurants.
On its relationship with the benefits
perceived by customers, studies into fairness The Effect of Price Fairness on
show that fairness behavior, as demonstrated Positive Emotions
by the service provider, is not only impor- Positive and negative emotions felt dur-
tant for the instrumental aspect, but also im- ing the process of fairness may be character-
portant for the relational aspect ized in various ways; they may stand alone
(Namasivayam 2004; Croonen 2010; (positive or negative) or as a whole (positive
Azarand Darvishi 2011). Thus, service evalu- and negative); or they are experienced or ex-
ations by customers do not only come from pressed (Heo and Lee 2011; Lee et al. 2013).
fairness, regarding the tangible outcome of Some studies of fairness also use the emo-
fairness, but also from the intagible outcome tional approach in isolation, which shows that
of fairness, which is interactional fairness the perception of price unfairness is associ-
(Hur et al. 2014). According to Gronroos ated with feelings of disappointment or an-
(2007) providing exceptional products and ger (Xia et al. 2004; Xiaand Monroe 2010).
service is one of the main interests of the Similarly, in the study of social fairness, the
service business. However, he argues that effect of procedural fairness on separated
fairness regarding the perceived outcome of emotional responses describes emotions of
fairness will affect the emotions of the cus- happiness in the form of happiness, joy, and
tomers, and their behavioral intentions. feelings of pride, along with emotions of sad-
Furthermore, in restaurants there are ness in the form of disappointment, anger,
some human intearctions. Lee et al. (2013) and frustration (Barclay et al. 2005; Blader
and Hur et al. (2014) define a service con- et al. 2013). Based on the descriptions above,
tact as a period of time where customers di- the first hypothesis proposed in this study is:
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Gadjah Mada International Journal of Business – May-August, Vol. 20, No. 2, 2018
H1: Perceived price fairness has a positive effect on negative feeling (Barclay and Skarlicki 2009).
positive emotions Homans (1961) also argues that when the
outcome gained is lower than what was ex-
The Effect of Procedural Fairness pected, it will lead to resentment in the re-
on Positive Emotions cipient (Blader et al. 2013). In relation with
the scheme of positive emotions and nega-
Lind and Tyler (1988) argue that the tive emotions, Lazarus (1991) states that
perceived fairness of outcomes was not only positive emotions, such as pleasure or pride,
considered as a determinant of perceived arise in situations where individuals’ needs
organizational justice, but the perceived fair- are fulfiled. In contrast, negative emotions,
ness of the process in which the outcomes such as shame and anger, arise when the ful-
were achieved was also considered to be im- fillment of an individual’s need is blocked
portant. In some cases, the fairness of the (Cassar and Buttigieg 2015). Therefore, the
process was considered to be the most im- third hypothesis proposed in this study is:
portant determinant of perceived organiza-
tional justice (Blader et al. 2013). H3: Perceived outcome fairness has a positive effect
Futhermore, Hur et al. (2014) show that pro- on positive emotions.
cedural justice, as the fairness of the process
in which outcomes are determined, is con- The Effect of Interactional
sidered to exist when there are procedures Fairness on Positive Emotions
which embody certain types of normatively Liiand Sy (2009) found that failure in
accepted principles. Accordingly, when a pro- the application of interactional fairness stan-
cess leading to a certain outcome is perceived dards in service contacts will result in nega-
to be unfair, a person’s reactions are predicted tive emotional responses (Cassar and
to be directed at the service provider rather Buttigieg 2014). In the study of emotion in
than at the specific outcome in question the customer service area, Dube and Menon,
(Namkung and Jang 2010). Therefore, the as cited in Swartz et al. (1998), illustrate the
second hypothesis proposed in this study is: importance of the role of socialization in the
H2: Perceived procedural fairness has a positive ef- formation of exchange relationships between
fect on positive emotions. customers and service providers (Schlett and
Ziegler 2014). Customers’ satisfaction with
The Effect of Outcome Fairness on service contacts is generally influenced by the
Positive Emotions level of loyalty, and consistency from the ser-
vice provider in service fairness (Skarlicki et
Emotion is an individual’s reaction to
al. 2008). Thus, it should be noticed that
an event or stimulus (Cassar and Buttigieg
emotions may be generated from stimuli that
2015) and it is fundamentally a social phe-
are relevant to the service. Therefore, service
nomenon (Tangney and Fischer 1995). So-
fairness plays a role as a producer of indi-
cial scientists acknowledge that issues of fair-
viduals’ emotions, as presented in this re-
ness can lead to emotional reactions,
search model. Our fourth hypothesis pro-
particulary when unfairness occurs. Adams
posed in this study is:
(1966) stated that when a violation of fair-
ness occurs, it will cause an individual to feel H4: Perceived interactional fairness has a positive
unhappy, and he/she will try to eliminate that effect on positive emotions.
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Budiyanti and Patiro
Price
Fairness
H1
Procedural
Fairness
H2
Behavioral
Positive
H5
Emotion Intention
Outcome H3
Fairness
H4
Interactional
Fairness
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Variable 6 My family said that foods are nice and the place is 0.900
clean
I will always come here for a very long time 0.755
conducting the confirmatory factor analysis. 1. Based on the results of the confirmatory
According to Fishbein and Middlestadt factor analysis (in Table 1), it is clear that the
(1995), those attributes or outcomes that are impressions for each variable written by the
mentioned most frequently by the population customers may be used as the basic indica-
must be considered. tors for each of the variables (factor loading
> 0.7). Therefore, each variable was given a
Results of Phase 1 name as follows: Variable 1 (price fairness),
Variable 2 (outcome fairness), Variable 3 (pro-
After the questionnaire was developed, cedural fairness), Variable 4 (interactional
200 copies of it were left in the fast-food chain fairness), Variable 5 (positive emotion), and
restaurants selected as the sample for our re- Variable 6 (behavioral intention). The result
search. Subsequently the questionnaires were from the factor analysis is the formation of
collected and the results from them processed these 6 constructs which will be tested in
using SPSS software; the results are in Table Phase 2.
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Budiyanti and Patiro
Rp 0 – Rp 1.000.000 0 0
Rp 1.000.001 – Rp 2.500.000 70 8.75
Montly Expenses Rp 2.500.001 – Rp 5.000.000 290 23.75
Rp 5.000.001 – Rp 10.000.000 140 17.50
More than Rp 10.000.000 100 12.50
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Twenty-three point seven five percent of the (2 items), and interactional fairness (4 items).
respondents have monthly expenses which The constructs of positive emotions and each
range between Rp 2,500,001 – Rp 5,000,000. behavioral intention’s construct consist of 3
items. The constructs are measured using a
Research Model Measurement 5-point Likert scale (1 = strongly disagree to
5 = strongly agree).
The construct’s measurement scales for
fairness (equity prices, procedural fairness,
perceived outcome fairness, and interactional
Result Of Phase 2 (The Research
fairness), positive emotions, and intentions Instruments Testing)
to behave refer to Cropanzano et al. (2008), Socially Desirable Response Test
Fishbein and Ajzen (2010), Namkung and
A Socially Desirable Response Test
Jang (2010), Xiaand Monroe (2010), Xia et
(SDR) was conduted on non-paired samples
al. (2010), and Azarand Darvishi (2011). The
for each indicator of the 6 constructs mea-
constructs for fairness comprise of 10 items,
sured. In doing so, this study entrusted 30
namely: Price fairness (2 items), procedural
questionnaire to a restaurant in Jakarta with
fairness (2 items), perceived outcome fairness
direct questions and 30 questionnaire to a
restaurant in Surabaya with indirect ques-
Tabel 3. Socially Desirable Response Re-
tions. The test was performed with non-para-
sult
metric statistics using SPSS 16 (Mann-
Construct Indicators P-value Whitney test). The test results showed the p
value is greater than 0.05 and concluded that
Price Fairness PF 1 0.831
those two samples (non-paired) derived from
PF 2 0.363 the population which has the same average
Procedural Fairness PF 1 0.797 (mean) or expectation. Thus, the average an-
swer of the respondents from these two
PF 2 0.309
samples are similar. See more detailed results
Outcome Fairness OF 1 0.599 in Table 3.
OF 2 0.088 Discriminant Validity Tests and Research
Interactional Fairness IF 1 0.357 Constructs’ Convergence
IF 2 0.850 Discriminant validity and convergence
tests were conducted by distributing 200 cop-
IF 3 0.831
ies of the questionnaires to restaurants lo-
IF 4 0.209 cated in Jakarta, Surabaya, and Semarang. The
Positive Emotion PE 1 0.230 results from these questionnaires were ana-
PE 2 0.400
lyzed using Factor Analysis (FA). The indi-
cator measurements appear to present each
PE 3 0.532
construct (factor loading > 0.6), indicating
Behavioral Intention BI 1 0.611 that the measurements’ constructs have good
BI 2 0.560 discriminant validity. Hair et al. (2010) stated
that for the confirmatory phase of the re-
BI 3 0.788
search into the measurement scale, values for
Sources: Data processed from SPSS software the factor loading of greater than 0.6 are con-
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sidered adequate. More detailed results are reliable. This study used composite reliabil-
provided in Table 4. ity as its reliability test method, which has
Table 4 shows the result of the calcula- advantages in estimating the internal consis-
tion of the convergence validity (Fornell and tency of a construct (Fornell and Larcker
Larcker 1981; Nunnally and Bernstein 1994). 1981; Nunnally and Bernstein 1994).
The convergent validity for each construct is Measurement Model and Structural Model
properly adequate when the AVE (Average Testing
Variance Extracted) values exceed 0.7 (Hair In conducting the test, Structural Equa-
et al. 2010). In line with this result, Table 5 tion Modeling (SEM) was applied to test the
also shows that the value of Cronbach’s al- validity of the proposed research model and
pha and the composite reliability of each con- its hypotheses with the help of software Amos
struct exceeds 0.7. Thus, it can be concluded 21st. The test’s results are provided in Table
that all the measures used in this study are 6. Table 5, shows the correlation between the
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Gadjah Mada International Journal of Business – May-August, Vol. 20, No. 2, 2018
Constructs 1 2 3 4 5 6
constructs tested in this research. The results service fairness (price fairness, outcome fair-
in Table 5 show that the degree of correla- ness, interactional fairness, and procedual
tion between the constructs is adequate, with fairness) of customers of fast-food chain res-
the exception of procedural fairness. taurants in Indonesia. Most of the hypoth-
eses proposed were supported, as illustrated
Result and Discussion in Table 6. Hypothesis 1 (H1) is supported
(coefficient = 0.037; t = 1.901; p < 0.1). This
The current study was undertaken to implies that when the customer of a fast-food
explore the relationship among the perceived chain restaurant assesses if the money they
245
Budiyanti and Patiro
spent on their food and beverages is perti- intangible features of the restaurant, such as
nent (fair) with the flavor (good), they will its products’ attributes, the physical environ-
feel a sense of fairness which will affect the ment, and its service aspects.
formation of positive emotions. This finding Hypothesis 4 (H4) is supported (coeffi-
is generally consistent with Namkung and cient = 0.149; t = 2.333; p < 0.05). This re-
Jang (2010) and Wen and Geng-qing Chi sult implies that the quality of service per-
(2013) who concluded that from a customer ceived by the customers will result in a fair-
sacrifice’s perspective, price fairness was ness perception which will affect the forma-
found to be a significant predictor of posi-
tion of positive emotions. Thus, this finding
tive emotions and ultimately future behav-
verified that customers are often influenced
ioral intentions. Futhermore, since it was the
by the knowledge and skills of the employ-
only dimension of fairness that had a signifi-
ees when forming opinions about the service
cant effect on the dependent constructs, the
offered, and inadequate interactions may di-
significance of price fairness should be rec-
rectly lead to unfavorable behavior (Jang and
ognized.
Namkung 2009; Namkung and Jang 2010).
Hypothesis 2 (H2) is not supported. This Given this result, it might be useful to con-
result indicates that when customers assess vey a perception of fair service that is char-
that the timeliness and efficiency of the ser- acterized by friendly and attentive staff who
vice provided to them are presumed to be in-
exhibit equal service to all the customers,
compatible (unfair), they will perceive an
without any bias.
unfair service which results in the failure to
form any positive emotions. This is in line Hypothesis 5 (H5) is supported (coeffi-
with Aggarwal and Larrick (2012) who ar- cient = 0.497; t = 2.786; p < 0.05). The re-
gued that, as it is another aspect of customer sult indicates that positive emotions are ex-
sacrifice, procedural fairness seems to act as cellent predictors for predicting consumers’
a basic requirement. Furthermore, they stated behavior in the context of the service indus-
that qualified procedural fairness should be a try. This finding supports the view of Jang
basic requirement, in the sense that consum- and Namkung (2009) and Namkung and Jang
ers expect their service’s delivery to be effi- (2010) who argue that the role of positive
cient and quick without any delays or decep- emotions should be obvious given the he-
tion. donic nature of restaurants. Furthermore,
Hypothesis 3 (H3) is supported (coeffi- they stated that restaurant managers could
cient = 0.143; t = 3.329; p < 0.001). The improve the probability of favorable behav-
result indicates that when the customers of ioral intentions by establishing fair and rea-
fast-food chain restaurants assess their visit, sonable prices, consistently good-quality
they are satisfied and content with the out- food, and improving the quality of the inter-
comes they received, which they consider to action between customers and service pro-
be a positive experience, so it will result in viders, which would elicit positive emotions.
the formation of positive emotions. As out- Therefore, the 3 fairness variables (price
lined by Jang and Namkung (2009), in a res- fairness, outcome fairness, and interactional
taurant setting, many stimuli could influence fairness) have positive and significant effects
a customer’s emotional state. They stated that on positive emotions. In terms of the ben-
these stimuli encompass both tangible and efits received by the customer, two variables
246
Gadjah Mada International Journal of Business – May-August, Vol. 20, No. 2, 2018
of fairness have a positive and significant associated with the ser vices offered
effect on their positive emotions. In terms of (Aggarwal and Larrick 2012), hence, any ad-
the sacrifices made by the customer, one fair- verse interaction will raise the likelihood of
ness variable has a positive and significant customers’ negative behavior.
effect on their positive emotions. Meanwhile, Moreover, Kukar-Kinney et al. (2007)
procedural fairness, which belongs to the con- show that excellent interactions between an
text of customers’ sacrifice, does not have a individual customer and the employees will
positive and significant effect on positive affect the assessment of the services pro-
emotions. It should be noted that emphasiz- vided. Therefore, based on these results, it
ing procedural fairness alone would not be could be concluded that the customers’ per-
enough to create customers’ positive emo- ception of the fairness of the service is in-
tions. Our results show that fast-food chain fluenced by factors such as a friendly
restaurants’ customers expect efficiency and athmosphere, full attention being provided by
timeliness in the service provided, without the service employees, and equal service de-
any delays or errors. Thus, when fast-food liveries, without errors, for every customer.
chain restaurants fail to meet these expecta- The role of positive emotions may be
tions, customers will consider this condition generated and highlighted through excellent
to be unacceptable. This result is in line with first impressions of the restaurant, through
Aggarwal and Larrick (2012) and Hur et al. the quality of the service provided during the
(2014) who concluded that when service de- service contact. Thus, restaurant managers
lays occur, customers assess this condition can increase the positive behavioral intention
as a waste of their time and they rate the ser- of their customers through the development
vice negatively. and provision of fair and reasonable prices
From the perspective of the benefit re- for food and beverages, as well as improve-
ceived by customers, the satisfactory result ments in the quality of the interaction be-
(physical) they perceive has a positive and tween the customers and the restaurant’s
significant effect on the customers’ positive employees, which will result in positive emo-
emotions (Dzansi 2016; Wang et al. 2016; Xu tions.
et al. 2016). Furthermore, when this result
(physical) is capable of influencing and in-
creasing the positive emotions, it will, in turn,
Conclusion
impact on future purchase intentions. Thus, The model used in this study consid-
successfully forming core products and a ered two goals and theoretical questions si-
quality service are substantial requirement multaneously. The first question investigated
that must be met in the restaurant business. the impact of perceived fairness on custom-
Similarly with other fairness variables which ers’ perceptions and emotional reactions. The
are also included in the context of the ben- 4 types of customers’ perceived fairness con-
efits received by the customer, interactional sidered are interactional, procedural, out-
fairness has a positive and significant effect come, and price, which are expected to influ-
on the customers’ positive emotions. These ence customers’ positive emotions. The more
results indicate that, in general, the custom- customers perceive fairness from the service
ers’ opinions are influenced by the knowledge they receive, the more positive emotions they
and expertise possessed by the employees will experience toward the service organiza-
247
Budiyanti and Patiro
tion (Huang 2016; Roy et al. 2016; Kimand taurants. Therefore, the possibility to gener-
Park 2017). This result supports those of pre- alize the results of this study into the con-
vious studies such as by Namkung and Jang text of other service industries or other in-
(2010) and Wen and Geng-qing Chi (2013). dustrial fields is very small. Thus, further re-
However, the findings from this study search needs to be conducted into different
show that procedural fairness does not affect contexts, especially in the restaurant indus-
the customers’ emotions, while the effect of try (other than fast-food chain restaurants)
the other types of fairness is not confirmed. and other industrial fields, to reveal their is-
Procedural fairnesses’ dimension on positive sues of service fairness and its related dimen-
consumption’s emotion is, to some extent, sions. From the methodological aspect, fur-
inconsistent. Therefore, the result of this study ther research should conduct a validation test
is in contrast with Namkung and Jang (2010), on fairnesses’ service dimensions along with
who state that only the procedural aspect the indicators used in this study, and exam-
negatively affects negative consumption’s ine their application to assess the quality of
emotions, while other aspects do not have service in the restaurant business.
any effects. However, Wen and Geng-qing Chi Further research is expected to involve
(2013) find evidence that interactional fair- personal and situational characteristics, such
ness is not effective in predicting positive as sensitivity to fairness, loyalty, and various
emotions. Furthermore, a study by Smith and contexts regarding service problems, which
Bolton (2002) claims that all three dimensions may moderate the relationship between these
of perceived fairness have the ability to af- constructs. Aggarwal and Larrick (2012), Hur
fect customers’ negative emotions. et al. (2014), and Chen et al.(2015) state that,
The next theoretical question is the ef- based on the personal sensitivity of fairness,
fect of positive emotional fairness on cus- each individual has a different level of im-
tomers’ intentions. The findings reveal that portance for the perceived fairness of service.
positive consumption emotions have a posi- There are several questions in this regard,
tive effect on customers’ intentions. Thus, the namely: Whether considerations of the fair-
more positive emotions customers experience ness of different services are based on the
from the service, the more likely it is that they level of sensitivity to the fairness or on con-
will repeat their purchases. Hence, they will tact based services? What level of loyalty to
be more enthusiastic in sharing positive com- a particular restaurant affects consumers
ments and recommendations through word- when they evaluate the perceived fairness of
of-mouth advertising. This has already been the service? Is a loyal customer more toler-
observed in other studies (i.e. Lee 2010; Wen ant of unfairness than customers who are not
and Geng-qing Chi 2013; Hur et al. 2014; loyal? Are customers who often come to visit
Chen et al. 2015). a particular restaurant antagonistic when they
feel the unfairness of service? Therefore, fur-
ther research is expected to uncover the mod-
Limitations and Suggestions erating role of loyalty and the frequency of
Regardless of the contribution made visits in the relationship between emotions
and the managerial implications, there are and behavioral intention, in order to gain
some limitations to this study. The first limi- more knowledge regarding customers’ percep-
tation is concerning the data collected in this tions of service fairness that impact their emo-
study, which is only from fast-food chain res- tions and behavioral intentions.
248
Gadjah Mada International Journal of Business – May-August, Vol. 20, No. 2, 2018
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