56 Journal of Hospitality & Tourism Research, Vol. 31, No. 1, February 2007, 56-72 DOI: 10.1177/1096348006295506 © 2007 International Council on Hotel, Restaurant and Institutional Education THE EFFECT OF ENVIRONMENTAL PERCEPTIONS ON BEHAVIORAL INTENTIONS THROUGH EMOTIONS: THE CASE OF UPSCALE RESTAURANTS Kisang Ryu University of New Orleans SooCheong (Shawn) Jang Purdue University This research built a conceptual model to show how customers’ perceptions of dining environments influence behavioral intentions through emotions in the upscale restaurant setting. An environmental psychology model was proposed to explore the linkages between customers’ perceptions and emotions (pleasure and arousal) and between cus- tomers’ emotional states and behavioral intentions. A structural equation modeling analysis revealed that facility aesthetics, ambience, and employees had significant effects on the level of customer pleasure while ambience and employees significantly influenced the level of arousal. In addition, pleasure and arousal had significant impacts on behav- ioral intentions, and pleasure appeared to be the more influential emotion of the two. Implications for restaurateurs and academic researchers are also discussed. KEYWORDS: behavioral intentions; customer perceptions; dining environment; emotions; environmental psychology; upscale restaurant Growing attention has been paid to the effect of physical environment on human psychology and behavior in diverse academic fields, such as architec- ture, environmental psychology, retailing, and marketing (Donovan & Rossiter, 1982; Turley & Milliman, 2000). The literature in those fields suggests that cus- tomer reactions to the physical environment are more related to emotional states than cognitive perception, particularly in the hedonic consumption situation (Donovan & Rossiter, 1982; Turley & Milliman, 2000). Although many types of service (e.g., using a McDonald’s drive-thru) are utilitarian, or function ori- ented, consuming leisure services and dining at an upscale restaurant are usu- ally hedonic, or emotion centered (Lin, 2004; Raajpoot, 2002; Tang, Chan, & Tai, 2001; Wakefield & Blodgett, 1994). Hedonic consumption involves more than just the perceived quality of service (e.g., whether a meal was delivered fast), influencing customer satisfaction with service experience. One of the main