How to increase menu prices without alienating your customers

Abstract

Purpose -This paper analyzes the impact of menu descriptions on the selection of menu items. Furthermore, this paper examines the relationship between menu descriptions and the perceived value of the item. Design/methodology/approach -This study uses the different components of prospect theory (e.g. anchoring effects and framing effects). An experimental research design using mock menus was used to investigate the impact of item presentation, item selections, and menu descriptions on consumer judgments of consumer choice and price value. Findings -The results found that detailed menu descriptions negated the impact of the price increases on the menu items. Practical implications -The implications of this study are valuable to restaurateurs because it shows that menu descriptions have the potential to increase revenue while also increasing the value perception. The study can also be applied to similar competing restaurants. Restaurants can be successful when magnifying the differences with detailed descriptions. Originality/value -The implications of this study can aid restaurateurs that are either developing new menus or increasing their prices. Restaurateurs are encouraged to provide a more detailed menu description in order to increase the perceived value by the guest.

An overview of the South Korean edible insect food industry: challenges and future pricing/promotion strategies

“…A study conducted by Jang and Kim () found that providing both descriptive information and pictures can reduce the risk perception of neophobic consumers. Another study demonstrated that detailed information about the product can positively affect customers' value perception (Shoemaker et al ). Therefore, when displaying information about edible insect‐based food or products, it is critical to include nutritional and product development (cooking) process information, together with a picture of the product.…”

The price facade: Symbolic and behavioral price cues in service environments

“…In restaurants, menus may affect luxury perceptions, service knowledge, and choices (Beardsworth and Keil, 1997;Shoemaker et al, 2005;Yang et al, 2009). The use of extensive, descriptive menu labels is rather common in the hospitality industry (Wansink et al, 2001).…”

Service Value Assessment in Emerging Chain Restaurants in Nairobi Kenya

“…However, while quality may be an important differentiating factor, customers in Nairobi may want to choose a restaurant on the basis of both satisfaction and value. Shoemaker et al (2005) defined value as the price charged, while Zeithmal (1988) [30]defined values as the products quality reflecting the price paid. She further observed that consumers use extrinsic cues, such as price, in forming perceptions of value.…”

“…She further observed that consumers use extrinsic cues, such as price, in forming perceptions of value. Shoemaker et al (2005) [26] adds that, if the price is too high relative to the other cues, then consumers will have poor perceptions of value and will have a decreased probability of purchase. Therefore value is the result of quality and price charged.…”