The Role of Consumers’ Perceived Risk and Sales Promotion Towards Consumers’ Intention to Visit in the Fast-Food Restaurant Sector During the Current COVID-19 Pandemic

Abstract

This study was conducted in order to determine whether there's a significant effect of both perceived risk and sales promotion toward consumers' intention to visit in the fast-food sector during the ongoing COVID-19 Pandemic. This study utilized survey method, whereas a 5-points likert questionnaires were used in order to collect all the data. All of the questionnaires were distributed to the respondents living in Jakarta who had visited Japanese fast-food chain restaurant at least twice from March till July 2020. The sample size of this study were 200 respondents, in which 173 usable data were further analysed using Partial Least Squares-Structural Equation Modelling (PLS-SEM) method using SmartPLS 3.2.8 software. Based on the results of data analysis, it can be concluded that consumers' perceived risk had a significant effect toward consumers' intention to visit fast-food restaurant, in which consumers had a tendency to not visit a restaurant if there's a great and significant risk associated with the visit. Similarly, the result generated in this study also showed that sales promotion significantly affected consumers' intention to visit a fast-food restaurant. This result suggests or imply that despite the government's advice that people should limit their intention to go outside of their respective home, consumers still perceive that the risks associated with the current COVID-19 pandemic are still low, while many consumers are still visiting fast-food restaurants in order to enjoy the promotional offers provided in the middle of pandemic.

Customers' Intention to Visit Fast Food Restaurants in Malaysia: A Lesson Learned from Covid-19 Pandemic

“…Furthermore, previous studies in the banking industry in Brazil found a negative and significant correlation between consumers' perceived risk and their intention to buy, indicating that as the likelihood of specific risks associated with consumers' actions toward a company increases, consumers' intention to use the company's goods and services declines (Marafon et al, 2018). In the foodservice industry, a study in Indonesia found that consumers' perceptions of risk significantly impacted their intention to visit a fast-food restaurant during the COVID-19 pandemic (Keni & Wilson, 2021). According to Keni and Wilson (2021), cqqonsumers believe that as long as they follow the safety standards, the risks associated with this pandemic are minimal, which increases their intention to visit their fast-food restaurants in the midst of the current scenario.…”

“…In the foodservice industry, a study in Indonesia found that consumers' perceptions of risk significantly impacted their intention to visit a fast-food restaurant during the COVID-19 pandemic (Keni & Wilson, 2021). According to Keni and Wilson (2021), cqqonsumers believe that as long as they follow the safety standards, the risks associated with this pandemic are minimal, which increases their intention to visit their fast-food restaurants in the midst of the current scenario. Another study, on the other hand, discovered that the higher the amount of risk perceived by customers, the more significant the impact of the perceived importance of preventive measures on restaurant trust (Wei et al, 2021).…”

“…They have avoided eating out on several occasions because they are anxious about going out in public. According to recent studies, several favorable features of perceived risk and sales promotion significantly influenced consumers' intentions to eat at a fast-food restaurant during the COVID-19 pandemic (Keni & Wilson, 2021). However, the study was conducted in Jakarta.…”

What Drives People Visit Restaurants During COVID-19 Pandemic Findings in Indonesia

“…The current and ongoing COVID-19 pandemic has had a wide impact on global economic sectors, where almost every business sector worldwide has been negatively affected (Keni & Wilson, 2021). The restaurant industry is one of the most affected businesses during the COVID-19 outbreak.…”

“…Keeping a distance is one of the requirements of the community when in public places. When people think that going outside to public places (such as restaurants) will increase the risk of being infected with the virus, it is less likely that people or consumers will immediately visit the restaurant no matter how strong their desire to visit the restaurant is (Keni & Wilson, 2021).…”