Luxury restaurants’ risks when implementing new environmentally friendly programs – evidence from luxury restaurants in Taiwan

Abstract

Purpose Some luxury restaurants might be hesitant to adopt new environmentally friendly initiatives due to worries that consumers might have concerns about how these changes might affect them. The purpose of this study is to investigate consumers’ intentions to dine at luxury restaurants when new environmentally friendly practices are implemented, considering the influence of trust and perceived risks. Design/methodology/approach Building on information integration theory and protection motivation theory, this research proposes its model and hypotheses. To test the proposed hypotheses, 441 participants were recruited through a non-probability purposive sampling method. Findings The results show that perceived risks (i.e. perceived functional risk, perceived financial risk, perceived hedonic risk and perceived self-image risk) significantly affect consumers’ consumption intentions. Furthermore, consumers’ trust in luxury restaurants will partially moderate the effects of perceived risks on consumption intentions. Practical implications This study offers empirical support for the proposition that implementing new environmentally friendly practices can affect consumers’ dining intentions in a negative way. Suggestions on how to mitigate the effect of perceived risks are discussed. Originality/value The results of this research contribute to the hospitality literature in three ways. First, this study is one of the few to report that luxury restaurants should take consumers’ perceptions of risk into account before initiating new environmentally friendly procedures. Second, it confirms that perceived risks will lower consumers’ luxury restaurant consumption intentions. Third, consumers’ trust in luxury restaurants can partially moderate the influences of perceived risks on consumption intentions.