Paying More for The Experience: The Role of Servicescape, Hedonic Value, and Well-Being in Coffee Shops

This study was conducted to understand the relationships among physical servicescape, hedonic value, consumer well-being perception and willingness to pay more in the local coffee shops. Structural equation modeling was employed to analyze the research model. Surveys were carried out at local coffee shops where located in the four largest shopping malls in Ankara were visited and 410 volunteer customers provided data for the study. This study's findings suggest that ambient conditions, facility aesthetics, layout and seating comfort are four elements of physical servicescape have significant impact on hedonic value. While consumer well-being is predicted by hedonic value, consumer well-being also significantly predicts willingness to pay more. The most important findings of the present study were full mediation effect of consumer well-being in the relationship between the physical servicescape and pay more. The analysis conducted to determine whether the willingness to pay more differs between first-time and repeat customers revealed that first-time customers are more willing to pay than repeat customers.