DOI QR코드

DOI QR Code

Analysis of Foreign Customers' Price Sensitivity on Korean Traditional Restaurants Using Price Sensitivity Measurement

외국인의 한식당에 대한 가격민감성 분석

  • Lee, Min-A (Foodservice & School Meal Research Team, Food Industry Promotion Division, Korea Food Research Institute)
  • 이민아 (한국식품연구원 식품산업진흥본부 외식.학교급식팀)
  • Published : 2007.01.31

Abstract

The purposes of this study were (1) to analyze price sensitivity, (2) to define the range of acceptable prices for each foreign segment, and (3) to provide a price model for Korean traditional restaurants. From October to November, 2006, a total of 781 foreigners responded to individual surveys. Statistical analyses on the survey data were performed using descriptive statistics and Price Sensitivity Measurement (PSM). Major findings from the study are as follows: First, the ranges of the acceptable prices were $98$\sim$$130 for fine dining/gourmet restaurants, $70$\sim$$90 for theme/ambience restaurants, $40$\sim$$60 for popular/family restaurants, and $18$\sim$$30 for convenience/fast food restaurants. Second, the convenience/fast food restaurants showed the highest price sensitivity. Third, a low stress level and wide range of the acceptable price were observed for the fine dining/gourmet restaurants, suggesting that the price sensitivity of the fine dining/gourmet restaurants was quite low. Finally, the price sensitivity indicated by the Japanese was higher than by the other groups. In consequence, the research findings suggest that the managers of the Korean traditional restaurants should strategically plan prices by understanding different customers' price sensitivity within and between customer segments. Through additional research, marketers can compare perceptions of specific brands, the competition, and variations within a product line.

References

  1. Naipaul S, Parsa HG. 2001. Menu price endings that communicate value and quality. Cornell Hotel and Restaurant Administration Quarterly Feb: 26-37 https://doi.org/10.1016/S0010-8804(01)90008-4
  2. Castleberry SB, Resurrection AVA. 1989. Communicating quality to consumers. Journal of Consumer Marketing 6(3): 21-28 https://doi.org/10.1108/EUM0000000002551
  3. Lichtenstein DR, Ridgway NM, Netemeyer RG. 1993. Price perceptions and consumer shopping behavior: a field study. Journal of Marketing Research 30: 234-245 https://doi.org/10.2307/3172830
  4. Cahill DJ. 1995. Editorial. Journal of Product & Brand Management 4: 4-6
  5. Lewis RC, Shoemaker S. 1997. Price-sensitivity measurement. Cornell Hotel and Restaurant Administration Quarterly April: 44-54
  6. Goldsmith RE, Newell SJ. 1997. Innovativeness and price sensitivity: managerial, theoretical and methodological issues. Journal of Product & Brand Management 6: 163-174 https://doi.org/10.1108/10610429710175682
  7. Wakefield KL, Inman JJ. 2003. Situational price sensitivity: the role of consumption occasion, social context and income. Journal of Retailing 79: 199-212 https://doi.org/10.1016/j.jretai.2003.09.004
  8. Zeithaml VA, Bitner MJ. 1996. Services Marketing. McGraw Hill, New York. p 484
  9. Jung JW, Park HJ. 2005. The effect of sales strategy and sales promotion of western restaurants on customer satisfaction: The mediating role of menu and price level. Foodservice Management Research 8(2): 7-24
  10. Jung KH. 2005. The relationship of restaurant attributes evaluation, perceived price, value, satisfaction, and the intention of reusing. Foodservice Management Research 8(1): 27-48
  11. Kim SS, Kim YW, Chun HJ, Oh SI. 2005. Factors influencing customers' perceptions of price in a deluxe hotel buffet restaurant. Tourism and Leisure Research 17: 203-220
  12. Kim HJ. 2003. Effect relationship of service quality and payment price of eating out enterprise. Foodservice Management Research 6(3): 59-74
  13. Kim HS, Ryoo KM. 2003. A study on relationship among restaurant brand image, service quality, price acceptability, and revisit intention. Korean J Culinary Research 9: 163- 178
  14. Travers K. 1983. PSM: a new technique for determining consumer sensitivity to pricing. Plog Research, LA
  15. Moore M, Kennedy KM, Fairhurst A. 2003. Cross-cultural equivalence of price perceptions between US and Polish consumers. International Journal of Retail & Distribution Management 31: 268-279 https://doi.org/10.1108/09590550310472433
  16. Monroe KB. 1973. Buyers' subjective perceptions of price. Journal of Marketing Research 10: 70-80 https://doi.org/10.2307/3149411
  17. Gardner D. 1971. Is there a generalized price-quality relationship. Journal of Marketing Research 8: 241-243 https://doi.org/10.2307/3149770
  18. Bucklin RE, Gupta S, Han S. 1995. A brand's eye view of response segmentation in consumer brand choice behavior. Journal of Marketing Research 32: 66-74 https://doi.org/10.2307/3152111
  19. Dhar SK, Hoch SJ. 1996. Price discrimination using in-store merchandising. Journal of Marketing 60(1): 17-30 https://doi.org/10.2307/1251885
  20. Lichtenstein DR, Bearden W. 1989. Contextual influence on perceptions of merchant-supplied reference prices. Journal of Consumer Research 16: 55-66 https://doi.org/10.1086/209193
  21. Kaul A, Wittink DR. 1995. Empirical generalizations about the impact of advertising on price sensitivity and price. Marketing Sciences 14: 151-160 https://doi.org/10.1287/mksc.14.3.G151
  22. Hoch SJ, Kim BD, Montgomery AL, Rossi PE. 1995. Determinants of store-level price elasticity. Journal of Marketing Research 32: 17-29 https://doi.org/10.2307/3152107
  23. Chae IS, Lee MA, Shin SY, Yang IS. 2002. The analysis of brand perception and price sensitivity in pizza restaurant: customer & operator's viewpoint Korean J Foodservice Management 5(1): 161-176
  24. Choi MK, Lee BS. 2006. A case study for pricing strategy planning of a family restaurant using price-sensitivity measurement. Korean J Community Nutrition 11: 253-260
  25. Jang SJ. 2006. Policy for foodservice industry of Korean traditional foods. Key notes presented at 43rd Conference of Korean Dietary Culture, Seoul, Korea
  26. Ger G, Belk RW. 1996. Cross-cultural differences in materialism. Journal of Economic Psychology 17: 55-77 https://doi.org/10.1016/0167-4870(95)00035-6
  27. Griffin M, Babin BJ, Modianos D. 2000. Shopping values of Russian consumers: the impact of habituation in a developing economy. Journal of Retailing 76: 33-52 https://doi.org/10.1016/S0022-4359(99)00025-1
  28. McGowan KM, Sternquist BJ. 1998. Dimensions of price as a marketing universal: a comparison of Japanese and US consumers. Journal of International Marketing 6(4): 49-65
  29. Mooij M, Hofstede G. 2002. Convergence and divergence in consumer behavior: implications for international retailing. Journal of Retailing 78: 61-69 https://doi.org/10.1016/S0022-4359(01)00067-7
  30. Rosa-Diaz IM. 2004. Price knowledge: effects of consumers' attitudes towards prices, demographics, and socio-cultural characteristics. Journal of Product & Brand Management 13: 406-428 https://doi.org/10.1108/10610420410560307
  31. Kim EM, Kim S, Lee MA, Lee SJ, Park WS, Jeong MK. 2004. Study on improvement of traditional food service industry by foreigners' preference of traditional Korea foods. Report of Korea Food Research Institute. p 68-76
  32. 법무부. 출입국 통계자료. Available from: http://www.moj.go.kr. Accessed January 15, 2005
  33. Park KY. 2005. The study on the establishment of a category for foodservice industry. The Conference of the Foodservice Management Society of Korea. p 33-40
  34. Cho MS. 1995. Analysis of customers' behavior of choosing the menu and menu plan for hotels. PhD Dissertation. Hanyang University

Cited by

  1. Analysis of Consumer Consumption Status and Demand of Rice-wine vol.42, pp.3, 2013, https://doi.org/10.3746/jkfn.2013.42.3.478
  2. Comparative Analysis of Price Sensitivity for Using Environmental-Friendly Agricultural Products in University Foodservices Between Jeonnam and Gyeongnam Areas in Korea vol.39, pp.8, 2010, https://doi.org/10.3746/jkfn.2010.39.8.1220
  3. Survey of Preferences and Choice in Korean Cuisine of Foreigners who are Vegetarian vol.30, pp.5, 2014, https://doi.org/10.9724/kfcs.2014.30.5.579
  4. Analysis of University Student' Perception of Coffee Shop Prices through Price Sensitivity Measurements vol.41, pp.8, 2012, https://doi.org/10.3746/jkfn.2012.41.8.1182