How do restaurant customers make trade-offs among rate fences?

Abstract

This study examines how restaurant customers make trade-offs among several restaurant rate fences using a sample of mainland Chinese travelers to Hong Kong. A total of six restaurant rate fences (i.e., lunch/dinner pricing, weekday/weekend pricing, table location pricing, restricted coupon pricing, meal period, and reservation and seating policy) and menu price were selected, and a conjoint analysis was performed. Findings reveal that price, restricted coupon pricing, and meal period are the most important attributes when restaurant customers select a restaurant. This study is the first attempt to examine the relative importance of different types of restaurant rate fences. The findings will help restaurant operators to better understand the decision-making process of Chinese travelers and design appropriate rate fences accordingly.