Creating Value through Authenticity and Social eWOM:

Evidence from Authentic Traditional Yogyakarta Cuisines

Vita Briliana

Trisakti School of Management, Jl. Kyai Tapa No.20 Grogol, West Jakarta, Indonesia

Keywords: Authenticity, Social eWOM, Value, Behavior Intention.

Abstract: This study adapted the Mehrabian-Russell (M-R) model to examine how authenticity and social electronic

word-of-mouth (eWOM) factors influence Indonesian consumer behavioral intention toward authentic

traditional Yogyakarta cuisines. This study used nonprobability sampling with purposive sampling methods

and received 310 respondents. The theoretical model was tested using structural equation modeling with

partial least squares (SEM-PLS). The paper found support for the positive effect of authenticity (i.e. food

and atmosphere), social eWOM, and perceived value. Results indicate that social eWOM was a strong

factor influencing perceived value toward a traditional food hailing from Yogyakarta. Theoretical and

managerial implications are elaborated.

1 INTRODUCTION

Indonesia's friendly climate, myriad islands, and

many unique cultures provide an ethnic and cultural

diversity to traditional habits, foods, clothing, art,

etc. Yogyakarta, a small city in Central Java, still

holds its prominent traditions. An online news report

released by the Jogja Tribunews (2017) revealed that

in 2017, 4.7 million domestic tourists visited

Yogyakarta. As for foreign tourists, the number

reached 397,000 in the same year

(http://jogja.tribunnews.com/2018/02/02/kunjungan-

wisata-diy-tahun-2017, accessed June 25, 2018).

Food is a strong motive for tourism along with

transportation, accommodation, and attractions.

When traveling, visitors engage in some form of

local cuisine enjoyment (Chang et al., 2011),

ranging from eating food which is familiar back

home, to seeking novel and different local dishes

(Cohen and Avieli, 2004). Because eating is an

integral part of traveling, it is common for visitors to

expect pleasurable culinary experiences, even if this

is not the primary purpose of travel (Kivela and

Crotts, 2006). It is important to distinguish between

visitors who consume food as part of a travel

experience and visitors who make destination

choices based on their interest in food as food

tourism. Hence, food tourism means a visitation to

primary and secondary food producers, food

festivals, restaurants, and specific locations for

which food and tasting and/or experiencing the

attributes of a specialist food production region are

the primary motivating factors for travel. Yet not

every vacationer’s trip to a restaurant is connected to

culinary tourism, especially if the food eaten in the

visited restaurant is the same as, or similar to, the

food consumed at home.

Digital communications technology has led to

extensive discussions among consumers through

social media. Consumers are participating in a

variety of activities, from reading content to sharing

knowledge, experiences, opinions, and making

travel decisions. According to the Association of

Internet Service Companies Indonesia (APJII, 2017),

Indonesia has more than 143.25 million internet

users, most of whom (87.13%) have social media

accounts. Of these social media users, 89.3 percent

have Instagram accounts, with Facebook, at 74.8

percent, a close second that is catching up fast. In

addition, Indonesia has the largest Instagram

community in Asia-Pacific (Rachman and Briliana,

2018).

The objective of the present research is to

develop an understanding of the impact of social

electronic word-of-mouth (eWOM) and authenticity

(i.e. food and atmosphere) on perceived value that

results in behavioral intention, and to test such

effects in a new empirical study. This paper adds to

the existing body of research because no studies on

the proposed link between social eWOM and

Briliana, V.

Creating Value through Authenticity and Social eWOM: Evidence from Authentic Traditional Yogyakarta Cuisines.

DOI: 10.5220/0008488500810086

In Proceedings of the 7th International Conference on Entrepreneurship and Business Management (ICEBM Untar 2018), pages 81-86

ISBN: 978-989-758-363-6

authenticity and perceived value exist. While some

researchers have proposed models for the impact of

authenticity and social eWOM, none have yet

considered food as a focal construct.

2 LITERATURE REVIEW

The Mehrabian-Russell (M-R) model is a theoretical

explanation of the effects of atmospherics, or the

design of commercial spaces, on consumer behavior.

This model states that an emotional response arises

because of the relationship between the physical

environmental and human behavior. That is, the

physical environment affects the individual’s

emotional state, which can be described by three

orthogonal dimensions: pleasure, passion, and

dominance. Pleasure is a state of feeling good or

happy. Passion means the extent to which an

individual is stimulated, excited, alert, or active.

Domination refers to the degree to which an

individual feels influential, in control, or important.

The M-R model states that the way the

environment affects human behavior is mediated by

their emotional responses. Several empirical studies

have found that atmospherics can directly influence

consumer behavior intentions. The research of Ryu

and Jang (2008) states that there is an influence of

the restaurant's physical environment on emotions

and behavioral intentions. Within the physical

environment, aesthetic features and employees do

not only influence behavioral intentions through

emotional responses (pleasure and passion), but they

also directly influence behavioral intentions.

2.1 Authenticity

Food is a part of the culture of a country and can

even represent that culture. Indonesia consists of

many diverse cultures and unique populations. This

uniqueness is often referred to as authenticity (Jang

and Park, 2012). It is this genuineness factor that has

a strong impact on attracting customers from other

regions and even from other countries.

Richards (2012) revealed that authenticity is a

quality attributed to a range of foods and cuisines

that are specific to a particular location or place.

More importantly, such products are the result of a

cultural process that belongs to that place.

Furthermore, food represents ethnic, regional, and

national identities. Bessiere (1998) pointed out that

the culinary heritage of a destination embodies the

character and mentality of a society in the types of

food and the way they are eaten. Food, therefore, is

seen as an integral part of identity formation.

Extending this study, authenticity refers to the story

and meaning pertaining to the place and culture of

the food that is embedded as a representation of the

culture (i.e. Yogyakarta).

2.1.1 Food Authenticity

The characteristics of Indonesian cuisine are heavily

influenced by natural and cultural conditions. The

ingredients of Indonesian food include a rich variety

of herbs, seasonings, and spices. A traditional food

hailing from Yogyakarta, gudeg, is a stew made

from young jack fruit (nangka) with palm sugar,

coconut milk, meat, garlic, and lots of spices. It is

one of the most flavorful foods in the world,

blending everything from taste to texture. Verbake

and Lopez (2005) describe ethnic food as food

expressing the characteristics of a particular region

or cultural tradition, when it is prepared by local

citizens following traditions. Previous research

revealed that there is a relationship between food

authenticity and behavioral intentions

(Sukalakamala and Boyce, 2007; Liu and Jang,

2009; Jang and Park, 2012).

H1. Food authenticity influences perceived value.

2.1.2 Atmospherics Authenticity

The authenticity of the experience is enhanced

through the atmosphere which reflects local culture,

such as the décor and background music in

restaurants. Jang and Park, (2012) describe ethnic

atmospherics that reflects the restaurant’s root

culture as unique and distinctively different from

those of non-ethnic restaurants, which could affect

the restaurant’s diners. The perceived atmospheric

authenticity can be defined as the customer’s

evaluation of the authenticity of the restaurant’s

external appearance, interior design, décor, and

music, and which, based on these perceptions,

influence the customer’s behavior intentions (Wood

and Munoz, 2007). Research has shown that

authentic atmospherics significantly influence

behavioral intentions of consumers (Jang and

Namkung, 2011; Jang and Park, 2012).

H2. Atmospheric authenticity influences perceived

value.

2.2 Social e-WOM

Social eWOM, or communication among consumers

through social networking sites, has become one of

the most frequently used electronic word-of-mouth

ICEBM Untar 2018 - International Conference on Entrepreneurship and Business Management (ICEBM) Untar

formats (Chu and Kim, 2011). Social networking

sites act as effective word-of-mouth communication

without geographic or time constraints among

consumers, serving as an important source of

product-related information and opinions. The

extensive use of social media platforms such as

Facebook and Instagram has become a worldwide

phenomenon. The internet has given a virtual space

to consumers, where every user can share their

experiences about products and services (Cheung

and Thadani, 2012). A study by Park et al., (2007)

found that online reviews act as strong informants

and recommenders and significantly influence the

purchase intention and actual purchase. At the same

time, online reviews significantly impact travelers’

destination choices (Jalilvand et al., 2012).

H3. Social eWOM influences perceived value.

H4. Social eWOM influences behavioral intentions.

2.3 Perceived Value

Perceived value is a consumer’s desired end-goal of

their purchasing behaviors and relates to a successful

transaction in a consumption situation (Jang and

Park, 2012). The perceived value of a local

Indonesian dish is that it is authentic, uses fresh

herbs, spices, and other local ingredients, and

otherwise differs from other traditional Indonesian

foods one has eaten. Research has shown that

perceived value has a significant role in influencing

behavioral intentions (Cronin et al., 2000; Ryu et al.,

2008; Liu and Jang, 2009; Jang and Park, 2012).

H5. Perceived value influences behavioral

intentions.

2.4 Behavioral Intentions

Basically, consumers are buying not only products,

but also their meanings, stories, and the experiences

associated with them. All these elements make their

purchases different and unique. As experience

becomes the crucial offering in the marketplace,

companies should personally engage consumers

through staged events, and capture their hearts by

the memorability of the experience (Oh et al., 2007).

Te memorable experience is expected to be shared

with another potential customer and could in turn

influence their own behavioral intention. Knowing

the purchase intention for a product is important

because it gives an idea of customer retention.

Extending this study, behavioral intention refers to a

restaurant customer’s anticipation of repeat

patronage, recommendation, and favorable word-of-

mouth behavior in the future.

3 RESEARCH METHODOLOGY

Partial least squares (PLS) analysis, a form of

structural equation modeling, was applied to

evaluate the measurement model and structural

model. The reason for using PLS is that it can

effectively be used with a relatively small sample

size and allows for potentially abnormally

distributed data (Hair et al., 2017). Furthermore,

PLS analysis was selected because it can assess all

paths simultaneously for model prediction. The

SmartPLS 2.0 software package was used to assess

the model in two stages:

1. Food authenticity (FA) and atmospheric

authenticity (AA) are proposed as antecedents of

perceived value (PV) in the first stage of the

model, covering H1 and H2; and

2. The second stage of the model studied the

influence of Social e-WOM (SW) is proposed to

influence PV and BI, covering H3 and H4. PV

itself is proposed to influence BI, covering H5.

All constructs were deemed highly reliable and

consistent due to their Cronbach alpha and

composite reliability scores, all of which exceeded

0.8 (Malhotra, 2010). Convergent validity was

measured through an assessment of the average

variance extracted (AVE) values for each construct,

with all clearing the prescribed minimum of 0.5

(Hair et al., 2017). This study used a self-

administrated questionnaire with closed-ended

questions. The questionnaire was distributed using

non-probability purposive sampling. The survey was

based on an area sampling technique conducted at

several traditional restaurants (i.e., ones that serve

gudeg) in Yogyakarta. The sample size of the study

was 310. The study was conducted in June 2018.

Respondents for the study qualified according to

pre-set criteria, i.e., they were residents of Indonesia,

had widely traveled overseas and within the country,

routinely used Instagram, and had recently posted a

picture of a local Indonesian authentic food or

authentic restaurant on Instagram.

4 RESULTS AND DISCUSSION

From the respondents’ given profiles, the study

found that the majority (43%) were between 31 and

37 years of age, held bachelor degrees (63%), and

had a monthly income of at least IDR 20,000,001 or

more (51%). Most (66.1%) admitted that they had

been to Yogyakarta for culinary purposes in the last

6 months, while almost as many declared they had

Creating Value through Authenticity and Social eWOM: Evidence from Authentic Traditional Yogyakarta Cuisines

come to Yogyakarta more than 3 times (51%).

In this study, PLS was analyzed and interpreted

sequentially in two stages, namely the assessment of

the reliability and validity of the measurement

model, followed by the assessment of the structural

model. As recommended by Ramayah et al. (2011),

the validity and reliability of the measures were

examined using the PLS approach, particularly when

examining the goodness of measure. SmartPLS 2.0

software provided the results for both. These values

are reflected in Table 1 below.

Tabel 1: Summary result of the measurement model and

convergent validity.

Loading AVE α CR

Foo

FA1 0.90 0.76 0.89 0.93

Authenticity FA2 0.89

FA3 0.86

FA4 0.83

Authenticity AA1

0.86

0.78 0.91 0.94

Atmospherics AA2 0.87

AA3 0.89

AA4

0.91

Social SW1 0.85 0.76 0.89 0.93

eWOM SW2 0.86

SW3 0.87

SW4 0.89

Perceived PV1 0.89 0.81 0.88 0.93

Value PV2 0.92

PV3 0.89

Behavioral BI1 0.81 0.74 0.82 0.89

Intentions BI2 0.91

BI3 0.85

Composite Reliability (CR) = (square of the summation of the

factor loadings)/{square of the summation of the factor loadings}

+ (square of the summation of the error variances)}.

Average Variance Extracted (AVE) = (summation of the square

of the factor loadings)/{(summation of the square of the factor

loadings) + (summation of the error variances)}.

Table 1 depicts the current measurement model.

AVE, composite reliability, and R2 are reported.

AVE values ranged from 0.76 to 0.86, while

composite reliability values ranged from 0.91 to

0.96, fulfilling the criteria suggested by Fornell and

Larcker (1981) and Bagozzi and Yi (1988),

respectively. All constructs have AVEs of more than

0.5, meeting convergent validity (Fornell and

Larcker, 1981). At the same time, all constructs have

composite reliabilities of more than 0.6,

demonstrating that a high internal consistency of the

data exists (Bagozzi and Yi, 1988).

Table 2 represents the correlations between the

constructs along with the AVE on the diagonal.

Using Shiue et al.’s (2010) recommendation, all of

the diagonal values exceed the inter-construct

correlations—thus indicating adequate discriminant

validity. This also explains how the constructs were

retained for further analysis of data.

Table 2: Discriminant Validity.

AA BI FA PV SW

AA 0.88

BI 0.75 0.86

FA 0.79 0.84 0.87

PV 0.83 0.85 0.77 0.81

SW 0.80 0.83 0.86 0.79 0.76

Diagonal entries (in bold) represent the square root of the average

variance extracted (AVE) while the other entries represent the

squared correlations. Note: AA = Authenticity

Atmospherics,

AF=

Authenticity Food, SW= Social eWOM, PV= Perceived

Value, BI= Behavioral Intentions

Using a bootstrapping technique, path loadings

and t-statistics for hypothesized relationships were

calculated. The PLS analysis results are shown in

Table 3. In marketing, researchers usually assume a

significance level of 5%. Hypotheses with a t-value

above 1.96 will be accepted and a hypothesis will be

rejected when its t-value is found to be less than 1.96

for significance level = 5% (Hair et al., 2017).

Table 3: PLS results of path coefﬁcients and hypothesis

testing.

Path Coefficient SE t-value Decision

H1 FA PV 0.11 0.06 1.97 Yes

H2 AA PV 0.52 0.07 7.82 Yes

H3 SW PV 0.28 0.07 4.09 Yes

H4 SW BI 0.42 0.05 8.42 Yes

H5 PV BI 0.51 0.05 10.83 Yes

Figure 1: Structural Model.

The results for phase one indicate that a

significant relationship exists between FA and PV,

with a t-value of 1.97 and a path coefficient of 0.11.

The authentic food experience the customers had

was due to taste, the use authentic herbs, spices,

fresh foods, variety, and presentation in the dishes

they were served. Therefore, H1 is accepted at the

five percent significance level, and it may be

concluded that food authenticity influences

ICEBM Untar 2018 - International Conference on Entrepreneurship and Business Management (ICEBM) Untar

perceived value. (Wood and Munoz, 2007; Jang and

Namkung, 2011; Jang and Park, 2012; Jang and Ha,

2015).

The results for phase one further indicate that a

significant relationship exists between AA and PV,

with a t-value of 7.82 and path coefficient of 0.52.

Therefore, H2 is accepted at the five per cent

significance level, and it may be concluded that AA

positively impacts PV. The authentic atmospheric

experience the respondents had was due to the use of

the restaurant’s external appearance, the atmosphere,

and interior décor, as well as the presence of

traditional music. These results are consistent with

previous studies about the relationship between AA

and PV (Jang and Namkung, 2011; Jang and Park,

2012; Jang and Ha, 2015).

The results for phase two indicate that a

significant relationship exists between SW and PV,

with a t-value of 4.09 and a path coefficient of 0.28.

Therefore, H3 is accepted at the five per cent

significance level, and it may be concluded that SW

has an influence on PV. This finding is similar to the

results of the studies of Jalilvand et al., (2012),

which found that SW had a positive influence on

PV. Social e-WOM was also found to be a predictor

of behavioral intention, with a t-value of 8.42 and a

path coefficient of 0.42. Therefore, H4 is accepted at

the five percent significance level, and it may be

concluded that the SW influences BI. These findings

align with previous studies about the relationship

between SW and BI (Jalilvand et al., 2012).

Furthermore, H5 examines the effects of PV on BI.

PV is significantly related to BI with a t-value of

10.83 and a path coefficient of 0.51. Therefore, H5

is accepted at the five percent significance level, and

it may be concluded that PV influences BI. The

study found both SW and PV to be positively related

to behavioral intentions. These conclusions are in

line with previous studies, such as those by Jang and

Namkung (2011); Jang and Park (2012).

Basically, travelers visiting ethnic restaurants

expect some uniqueness of traditional cuisine, and

perceive the authenticity through ethnic foods.

Authentic cuisine features distinct cooking methods,

using specific ingredients and traditional kitchen

utensils used by each ethnic group when presenting

dishes in their own way. Ethnic restaurants also

create an atmosphere of authenticity by emphasizing

authentic environmental elements, which provide

customers with meaning and entertainment.

Moreover, the concept of authenticity evokes a

range of meanings, which are original, genuine, real,

true, and true to itself (Pratt, 2007).

Digital technology has changed the way travelers

express their memorable experiences, such as by

posting pictures of their authentic food, their

authentic atmosphere, and also their self-expressed

happiness and memorable experiences through

social media (e.g. Instagram). Indonesian customers

usually transmit their memorable experience through

Instagram to share with family, friends, and

followers. They do this with the intent to spread

information and perhaps influence the decisions of

other people who see photos of the posts and come

to enjoy for themselves the uniqueness of the food

and the environment. The friendliness of local

residents can also make the encounter more

enjoyable. The visitors sometimes get information

about variations of popular foods, good locations for

photography, restaurant hours, and transportation.

Sometimes the locals even help to photograph the

visitors. This fun and engaging experience translates

into photos is posted on Instagram, along with a

delighted comment.

5 CONCLUSIONS

The results from Jang and Namkung (2011);

Jalilvand et al., (2012); Jang and Park (2012); Jang

and Ha, (2015) supported our hypotheses. Ethnic

atmospherics that reflect the restaurant’s root culture

are unique and distinct from those of non-ethnic

restaurants, which could affect the restaurant’s

success. Word of mouth on social media platforms

not only acts as an informant giving product details,

but also as recommenders giving reviews from

experienced consumers.

It is worth pointing out that this study has several

limitations. First, the sample was confined to a

specific group of domestic travelers in a location in

Yogyakarta, and they are not representative of all

consumers. It would be necessary for future research

to examine the perceptions of domestic travelers in

other Indonesian regions, in order to improve the

generalizability of the findings. Second, this study

only explored authentic food, authentic atmosphere,

perceived value, and social eWOM as factors

determining the behavioral intention to choose an

authentic traditional Indonesian dining experience.

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Creating Value through Authenticity and Social eWOM: Evidence from Authentic Traditional Yogyakarta Cuisines

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