Korean food is increasingly popular worldwide, which has made many Korean restaurants pop up, including in Yogyakarta. However, with the various challenges, some restaurants are currently not operating. One of the factors that may be the cause is the need for more consumer satisfaction in the competitive Korean food market. This research examines the effect of consumer values (hedonic and utilitarian value) and consumer knowledge on consumer satisfaction and loyalty in Korean restaurants. Partial Least Square was used in this study by taking a sample of 331 respondents using purposive and snowball sampling techniques through online surveys. Validity and reliability tests were also carried out at the beginning of data processing. Descriptive analysis is used to find out socio-demographic information and consumer behaviour. The analysis results show that consumer value and knowledge positively and significantly affect customer satisfaction and loyalty. Utilitarian has a greater influence than hedonic values. Satisfaction can be explained by hedonic and utilitarian value and consumer knowledge by 60.2%, while consumer loyalty can be explained by 61.8%.

A proliferation of Korean restaurants in Yogyakarta can be seen over the past few years, each with its unique concept. However, a survey on Google Star Rating suggests that not all of these restaurants are sustainable. The significant discrepancy between expectations and actual satisfaction of consumers is likely a contributing factor. Moreover, intense competition exists between these restaurants. This study aims to identify which aspects of marketing—such as product, price, place, promotion, people, process, and physical evidence—influence Korean restaurants’ consumer needs. Using the Kano model, consumer satisfaction was analyzed by classifying consumer needs into attractive, must-be, one-dimensional, indifferent, reverse, or questionable categories. Purposive and snowball sampling methods were employed to select 100 respondents to complete a questionnaire. The results unveiled that four of the seven marketing mix attributes needed by Korean restaurants’ consumers fell into the one-dimensional category. The features consisted of physical evidence (clean dining room), people (clean and tidy employee appearance), product (good taste), and process (timely service). Furthermore, the attributes of unique offers (D1); fast service (F2); menu information, ingredients, how to cook it (E3); and affordable food prices (B1) contributed to greater consumer satisfaction. These attributes boosted consumer satisfaction by 80%, 79.8%, 74.5%, and 73.7%, respectively.