Korean Journal of Community Nutrition (대한지역사회영양학회지)

The Korean Society of Community Nutrition (대한지역사회영양학회)
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A Case Study for Pricing Strategy Planning of a Family Restaurant Using Price-Sensitivity Measurement

패밀리 레스토랑의 가격 전략 수립을 위한 가격민감성 분석 사례 연구

  • Choi Mi-Kyung (Research Institute of Food & Nutritional Science, Yonsei University) ;
  • Lee Bong-Shik (Hotel, Restaurant & Institutional Management, The Graduate School of Human Environmental Science, Yonsei University)
  • 최미경 (연세대학교 식품영양과학연구소) ;
  • 이봉식 (연세대학교 생활환경대학원 호텔.외식.급식경영)
  • Published : 2006.04.01
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Abstract

The purpose of this study was to suggest menu pricing strategy based on understanding about customer perceived value of products and services. The technique known as PSM (Price Sensitivity Measurement) was used for analysis of price sensitivity for 3 menu items of a family restaurant in Seoul. A questionnaire was developed through literature review and modified after pilot test. Questionnaires for the main survey were distributed to 250 customers on their visit to the restaurant, and a total of 138 questionnaires were used for analysis (55.2%). The statistical analysis of price sensitivity was conducted using PSM, and descriptive analyses were conducted using SPSS Win (12.0). The main results of this study were as follows: the price sensitivity of beef tenderloin steak was higher than two other menus and the stress range of teriyaki chicken was almost 0, that is, the price sensitivity of teriyaki chicken was very low. Present menu prices of 3 menu items were within the range of acceptable prices, but had some distances from the optimal pricing point. From the result of this study, it was concluded that price adjustment or price promotion strategy would be effective for increase in sales of beef tenderloin steak, and marketing strategies to enhance consumers' perceptions of value should be conducted for all menu items by situations. Overall, PSM technique could be a helpful tool for researchers and managers of foodservice organizations to understand how consumers' perceptions of value are affected by the interaction of price and quality.

Keywords

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