The future of dining: How robots shape diners’ price insensitivity, competitive resistance and word-of-mouth behaviors? Role of psychological ownership and alternative attractiveness

Purpose The rapid rise in robotic restaurants in developing economies has prompted an examination of the dining experience, profitability and word-of-mouth (WoM) behaviors from the service quality perspective of robotic restaurant diners. This study aims to empirically examine the impact of robotic service quality (RSQ) on diners' psychological ownership of the restaurant, utilizing the theoretical underpinnings of the stimulus-organism-response (SOR) theory and psychological ownership theory, while considering the mediating impacts of various dimensions of customer experience, including cognitive, affective and relational dimensions. Subsequently, the influence of diners' psychological ownership on their willingness to pay (WTP) a premium was examined, along with competitive resistance and WoM behaviors. In addition, the moderating effect of diners' perceived attractiveness of alternative robotic restaurants was examined on the direct relationship between psychological ownership and favorable post-purchase behavioral responses of robotic restaurant diners. Design/methodology/approach The research was carried out using data collected from 597 robotic restaurant diners, who were selected using the purposive sampling technique. The SmartPLS 4.0 software was used to conduct structural equation modeling as part of the data analysis. Findings The results indicate that different dimensions of robotic restaurant diners’ experiences like cognitive, affective and relational differentially mediate the relationship between RSQ and psychological ownership of the robotic restaurant. The psychological ownership of the restaurant subsequently positively impacts the competitive resistance, WoM behaviors and their WTP more for the robotic services of the restaurant. However, the moderating role of alternative restaurant attractiveness negatively impacts the direct relationship between psychological ownership and positive post-purchase behavioral responses of the diners. Research limitations/implications This study relied upon the Indian population of respondents who are above the age of 18 years. However, the same study can be carried out across different age cohorts in different cultural backgrounds. Originality/value Relying on the psychological ownership theory and SOR framework, this study demonstrates empirically that RSQ will have an impact on psychological ownership that diners develop towards the restaurant and that different dimensions of customer experience (cognitive, affective and relational) mediate the relationship. It also validates the previous research findings that customer experience in the highly technology-mediated servicescapes is not a single global construct and different sub-dimensions are to be explored. This study is also the first to show the diners’ perceived alternative restaurant attractiveness will have a negative moderating impact on the direct relationship between psychological ownership and positive post-purchase behavioral responses of the diners.