The Influence of the 7Ps Marketing Mix on Customer Loyalty: The Mediating Role of Perceived Value in Restaurants in The Maldives

Abstract: The restaurant industry has become increasingly competitive, making it essential for businesses to understand the marketing factors that influence customers’ perceived value and loyalty. This study examined the influence of the proposed 7Ps marketing mix on perceived value and customer loyalty in the Maldivian restaurant industry, with perceived value serving as a mediating variable. A quantitative research design was employed, and data were collected from 404 customers in the Maldives using a structured questionnaire. The data were analysed using descriptive statistics, confirmatory factor analysis (CFA), and structural equation modelling (SEM) with AMOS. The findings revealed that physical evidence and people had significant positive effects on perceived value, whereas product, price, and place did not significantly influence perceived value. Perceived value also had a significant positive effect on customer loyalty. Furthermore, perceived value significantly mediated the relationships between physical evidence and customer loyalty and between people and customer loyalty, whereas no significant mediating effects were found for product, price, or place. During the measurement model assessment, the promotion and process constructs were excluded because they did not meet the required psychometric criteria; therefore, the final model comprised the retained marketing mix dimensions. This study contributes to the service marketing literature by providing empirical evidence from the Maldivian restaurant industry on the relationships among the retained marketing mix dimensions, perceived value, and customer loyalty. The findings also offer practical implications for restaurant managers by highlighting the importance of the physical service environment and employees’ role in service delivery in enhancing customers’ perceived value and strengthening customer loyalty.