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1 – 10 of 826The current study investigates odd-even psychological pricing with the aid of a Price endings and Consumer Behavior (PCBM) Model for the hospitality industry. The PCBM proposes…
Abstract
The current study investigates odd-even psychological pricing with the aid of a Price endings and Consumer Behavior (PCBM) Model for the hospitality industry. The PCBM proposes that a reciprocal relationship exists between hospitality marketers and consumers with reference to 00 and 99 price ending practices. Theoretical support for the posited model is provided by signaling theory, a persuasion knowledge model (PKM), and learning by analogy from marketing and psychology literatures. Results indicate that consumers use intuition and knowledge gained from interacting in the retail marketplace to respond to the intentions of hospitality marketers’ odd-even psychological pricing strategy. After repeated exposures to odd-even pricing, consumers learn to accept the 00 and 99 pricing endings as extrinsic cues for quality and value and as pricing norms of the hospitality industry.
Milos Bujisic, Joe Hutchinson and H.G. Parsa
– The purpose of this paper was to investigate the relationships between restaurant quality attributes and customer behavioral intentions.
Abstract
Purpose
The purpose of this paper was to investigate the relationships between restaurant quality attributes and customer behavioral intentions.
Design/methodology/approach
An experimental design was chosen to provide a high level of internal validity. Three separate 3 × 2 factorial design experiments were conducted through 18 separate vignette scenarios for three levels of quality (below average, average and above average) of three common restaurant attributes (food, service and ambience) in two types of restaurants (quick service and upscale).
Findings
The results indicated that the type of restaurant moderated the relationship between restaurant service and ambience quality and customer behavioral intentions.
Practical implications
The results of this study suggest that management of quick-service and upscale restaurants should focus on food quality, but establish different resource allocation priorities with respect to service and ambience quality.
Originality/value
This study examined the linearity of the relationships between three common restaurant attributes (food, service and ambience) for three levels of quality (below average, average and above average) in two types of restaurants (quick service and upscale).
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Hsin‐Hui “Sunny” Hu, H.G. Parsa and Jin Lin Zhao
The aim of this paper is to understand the price‐ending strategies in European restaurants and make practical suggestions to the managers.
Abstract
Purpose
The aim of this paper is to understand the price‐ending strategies in European restaurants and make practical suggestions to the managers.
Design/methodology/approach
Data were collected from restaurant menus in three European countries. Results were compared with those of USA and Taiwan.
Findings
The price‐ending strategies of European restaurants are distinctly different from those of the USA and, interestingly, have more in common with those of Taiwan.
Research limitations/implications
The small sample size is a concern. Data were limited to three countries. Inclusion of more European restaurants is highly desired, especially with the Euro as a common currency.
Practical implications
Restaurant companies could have better understanding of the impact of cultural differences, while implementing price‐ending strategies.
Originality/value
This paper presents a case where cultural differences are of significant economic value in setting restaurant menu prices. In Europe, dining out is considered more a cultural activity than a utilitarian participation. The historical roots of the usage of digit zero in a European context are presented here.
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Yao-Chin Wang and Avraam Papastathopoulos
With the trend of adopting and studying artificial intelligence (AI) service robots at restaurants, the authors’ understanding of how customers perceive robots differently across…
Abstract
Purpose
With the trend of adopting and studying artificial intelligence (AI) service robots at restaurants, the authors’ understanding of how customers perceive robots differently across restaurant segments remains limited. Therefore, building upon expectancy theory, this study aims to propose a trust-based mechanism to explain customers’ support for AI-based service robots.
Design/methodology/approach
For cross-segment validation, data were collected from online survey participants under the scenarios of experiencing AI service robots in luxury (n = 428), fine-dining (n = 420), casual (n = 409) and quick-service (n = 410) restaurant scenarios.
Findings
In all four segments, trust in technology increased willingness to accept AI service robots, which was then positively related to customers’ support for AI-based service robots. Meanwhile, customers’ AI performance expectancy mediated the relationship between trust in technology and willingness to accept AI service robots. On the other hand, at luxury, fine-dining and casual restaurants, males perceived a stronger positive relationship between trust in technology and AI performance expectancy. No generational differences were found in the four restaurant segments between trust in technology and AI performance expectancy.
Originality/value
To the best of the authors’ knowledge, this study is one of the first attempts in hospitality research to examine cross-segment validation of customers’ responses to AI-based service robots in the luxury, fine-dining, casual and quick-service restaurant segments.
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Beatriz Forés, Alba Puig-Denia and José Maria Fernández-Yáñez
This study draws on the natural resource-based view to analyze the effects of technologies, managerial commitment, and firm strategy on sustainability performance, in terms of…
Abstract
This study draws on the natural resource-based view to analyze the effects of technologies, managerial commitment, and firm strategy on sustainability performance, in terms of both environmental and social profits. It also examines how the effect of green technologies on sustainability performance can be triggered by a managerial commitment to sustainability issues, and by the adoption of a prospector strategy. Multiple linear regression was used to test research hypotheses on a sample of 426 Spanish tourism firms. The results provide important insights into the importance of the adoption of explorer strategies fostering the strategic exploitation of green technologies to obtain new efficient processes, organizational procedures, and products. This research also shows the contingent moderating effect that managerial commitment exerts on the strategic implementation of green technologies for sustainability performance.
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Milos Bujisic, Vanja Bujisic, Haragopal Parsa, Anil Bilgihan and Keyin Li
Hospitality firms aim to increase their profits by implementing a variety of marketing activities, including using decoy pricing to provide alternative choices for consumers…
Abstract
Purpose
Hospitality firms aim to increase their profits by implementing a variety of marketing activities, including using decoy pricing to provide alternative choices for consumers. Decoys are relatively higher-priced offerings that signal lower value than the other offerings in the consideration set. The purpose of this research is to investigate the influence of decoy pricing on consumer choices across various contexts in the foodservice and hotel industries.
Design/methodology/approach
Across the pilot and four main studies, the current research employs a sequential exploratory mixed-method design to investigate the influence of decoy pricing in the foodservice and lodging industries. The qualitative part of this research was based on two focus groups, followed by a pilot study and four main study experiments.
Findings
The results show that decoy pricing escalates consumers’ choices of more expensive product bundles in both restaurant and hotel cancellation policy contexts. However, decoy pricing does not increase the selection of more expensive hotel product bundles.
Originality/value
While decoy pricing has been utilized as an effective revenue maximization strategy for product placement in retail stores, less is known about how promotional advertisements with decoy offers influence hotel and restaurant customers to choose more costly options. Specifically, this is the first study that explores whether decoy pricing and product/service bundling can encourage customers to select more expensive offers in hotel and restaurant contexts, considering the types of hospitality bundles that may limit this effect.
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Hsin‐Hui “Sunny” Hu and H.G. Parsa
The purpose of this research is to understand the effects of self‐monitoring, dining companions and industry segments on the usage of alternate currencies while dining out.
Abstract
Purpose
The purpose of this research is to understand the effects of self‐monitoring, dining companions and industry segments on the usage of alternate currencies while dining out.
Design/methodology/approach
An experimental design using frequent consumers of restaurant services is being used with a scenario approach with a sample size of 471.
Findings
Results indicate that self‐monitoring has significant impact on consumers' choice for alternate currencies. In addition, the type of dining companion (boss vs friend vs alone) has significant affect on usage of alternate currencies. Industry segments were not found be a significant factor in making usage of alternate currencies. For high self‐monitoring individuals, the preferences for currency usages are more likely influenced by the image delivered by the currency than for low self‐monitors. Consumers who dine with a friend or alone are more likely to prefer to pay with frequent usage points‐only (as opposed to dollars‐only) than consumers who dine with the boss. This result indicates that the dining companion is an important determinant in preferring the alternative currency, frequent usage points. Since frequent usage points are a signal of price discount, consumers do not want to make an impression of “being cheap” on the higher‐status dining companion (e.g. boss) by using frequent usage points for their dining experiences. On the other hand, if consumers dine with a friend or alone, they are more likely to reap the financial rewards of paying with frequent usage points without regard to the impression it creates.
Research limitations/implications
These findings have significant implications for the restaurants marketers and managers. Implementation of frequent diners program may be affected significantly by self‐monitoring characteristics and nature of dining companions.
Originality/value
This study extends the understanding of individual differences associated with currency preference by examining the effects of self‐monitoring and impression management on consumer preferences for currency usage. Identifying the characteristics of consumers using the different currency options is critical for the foodservice industry.
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The purpose of this study is to examine the effect of internal brand management (IBM) practices on tourism and hospitality employees' ability to demonstrate brand supportive…
Abstract
Purpose
The purpose of this study is to examine the effect of internal brand management (IBM) practices on tourism and hospitality employees' ability to demonstrate brand supportive behaviours. A model, which includes brand knowledge dissemination, role clarity, brand commitment and brand supportive behaviour is proposed. To provide further insight, the study seeks to examine the impact that hierarchical roles have on employees' responses.
Design/methodology/approach
A quantitative research methodology was adopted, resulting in the development of a self‐administered online survey instrument. Using a national database of service employees, respondents were invited to participate in the online survey, resulting in the completion of 137 surveys.
Findings
While all paths were significant in the overall model, differences were found when comparing front line and management models. Overall, brand commitment played a more significant role in the front line model, whereas role clarity was not shown to be significant in the management model with respect to influencing brand supportive behaviour.
Research limitations/implications
The results suggest that the tourism and hospitality employee market is not homogeneous. IBM has a positive effect on all employees but it is what they choose to do with that information that differs. Managers should endeavour to develop brand‐committed front‐line employees, while the management employees should be encouraged to apply their brand knowledge, thereby “leading by example”.
Originality/value
An IBM strategy should be paramount in the tourism and hospitality industry, given the critical role the employee provides to a guest's overall experience and assessment of the brand. The study empirically validates the effects of IBM, identifying differences in responses based on hierarchical position, which has ramifications for practitioners and academics in developing best practice.
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Increased emphasis on offering quality education underscores the need for developing a rigorous process for assessing academic programs in higher education. In this chapter, we…
Abstract
Increased emphasis on offering quality education underscores the need for developing a rigorous process for assessing academic programs in higher education. In this chapter, we develop a practical and rigorous framework for comprehensive assessment of academic programs. This framework generates in-depth communication between the academic departments and the university administration. It provides a useful tool for advancing the university mission, setting priorities, allocating resources, and identifying future areas of potential growth. This data-driven framework covers a wide range of qualitative and quantitative variables. To ensure a smooth and efficient implementation of the assessment process we present the critical stages in the development of a successful program assessment framework − from determining the assessment criteria, establishing the organizational climate, appointing the assessment committee, preparing program self-studies, to collecting and analyzing data. We present real examples from the author’s home institution to illustrate and support the reader’s understanding of the framework.
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Robin B. DiPietro, H.G. Parsa and Amy Gregory
The purpose of this paper is to determine the relationship between QSC (quality, service and cleanliness) inspection scores and financial performance in quick service restaurants.
Abstract
Purpose
The purpose of this paper is to determine the relationship between QSC (quality, service and cleanliness) inspection scores and financial performance in quick service restaurants.
Design/methodology/approach
Restaurant QSC inspection data were collected from 25 quick service restaurants of an international chain over a period of 18 months. Audited financial data were also collected for these participating restaurants. Using SPSS software, the data were analyzed for possible relationships between the restaurant QSC scores and the financial performance measured as total unit sales per week, revenues per available seat per week, and gross operating income for each month. Restaurant unit size is measured by total revenues per month.
Findings
Contrary to the commonly held belief, the relationship between QSC variable and restaurant performance is weak. This study found there was a “V” curve in QSC inspections and financial performance when restaurant size was chosen as the moderating variable.
Research limitations/implications
The specific items measured in the QSC may differ across organizations, although the broad categories remain constant. Certain operational factors such as price changes, special promotions, additional restaurant openings in the specific area, and local economic conditions could have confounded the results.
Practical implications
The knowledge obtained from this study could help restaurant organizations determine the level of weighting given to a specific inspection variable. This study also suggests the use of FQSC inspections instead of traditional QSC to emphasize financial performance (F). This study demonstrates the liability and limitations of tying QSC inspections to merit raises and bonus plans as normally done in restaurants.
Originality/value
This paper is the first empirical study to analyze the QSC inspections of restaurants related to financial performance. In contrast to the past studies with food safety/health inspections, the current study focuses directly on QSC inspections conducted more frequently and in greater detail by the quick service restaurants with emphasis on operational and financial performance.
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