An evaluation of guests' preferred incentives to shift time-variable demand in restaurant

Cornell Hotel and Restaurant Administration Quarterly

Volumn 45, Issue 1, 2004, Pages 68-84

  Susskind, Alex M ^a   Reynolds, Dennis ^b   Tsuchiya, Eriko ^b  

^a Cornell Univ School of Hotel Admin ^*  (United States)

^b NONE

Author keywords

Pricing strategies; Revenue management

Indexed keywords

EID: 3242795902     PISSN: 00108804     EISSN: None     Source Type: Journal    
DOI: 10.1177/0010880403260108     Document Type: Article

References (66)

1. Barry A. Smith, John. F. Leimkuhler, and Ross M. Dan, "Yield Management at American Airlines," Interfaces, vol. 22, no. 1 (1992 , pp. 8-31.
2. Sheryl E. Kimes, "The Basics of Yield Management," Cornell Hotel and Restaurant Administration Quarterly, vol. 30, no. 4 (November 1989), p. 15.
3. See: Sheryl E. Kimes, Richard B. Chase, Sunmee Choi, Phillip Y. Lee, and Elizabeth N. Ngonzi, "Restaurant Revenue Management: Applying Yield Management to the Restaurant Industry," Cornell Hotel and Restaurant Administration Quarterly, vol. 39, no. 3 (June 1998 , pp. 32-39.
4. Sheryl E. Kimes, Deborah I. Barrash, and John E. Alexander, "Developing a Restaurant Revenue-Management Strategy," Cornell Hotel and Restaurant Administration Quarterly, vol. 40, no. 5 (October 1999), pp. 18-29.
5. I b i d.
6. Bill Quain, "Revenue Enhancement, Part 4," Cornell Hotel and Restaurant Administration Quarterly, vol. 40, no. 3 (June 1999), pp. 38-47.
7. Brian Sill and Robert Decker, "Applying Capacity-Management Science," Cornell Hotel and Restaurant Administration Quarterly, vol. 40, no. 3 (June 1999), pp. 22-30.
8. See: Sheryl E. Kimes and Richard B. Chase, "The Strategic Levers of Yield Management," Journal of Service Research, vol. 1, no. 2 (November 1998), pp. 156-66.
9. Kimes et al., pp. 32-39.
10. Kimes et al., pp. 32-39.
11. I b i d.
12. Kimes and Chase, pp. 156-66.
13. For a discussion of the application of duration-control techniques, see: Sheryl E. Kimes, "Restaurant Revenue Management: Implementation at Chevys Arrowhead," on pages 52-67 of this Cornell Quarterly.
14. Kimes and Chase, pp. 156-66.
15. See: William D. Diamond and Leland Campbell, "The Framing of Sales Promotions: Effects of Reference Price Change," Advances in Consumer Research, vol. 16 (1989), pp. 241-47.
16. Dhruv Grewal and Howard Marmorstein, "Market Price Variation and Consumers' Search Decisions for Durable Goods," Journal of Consumer Research, vol. 21 (December 1994), pp. 452-60.
17. Shih-Fen S. Chen, Kent B. Monroe, and Yung-Chien Lou, "The Effects of Framing Price Promotion Messages on Consumers' Perceptions and Purchase Intentions," Journal of Retailing, vol. 74, no. 3 (1998), pp. 353-72.
18. Kimes and Chase, pp. 156-66.
19. Sheryl E. Kimes and Jochen Wirtz, "Perceived Fairness of Demand-based Pricing for Restaurants," Cornell Hotel and Restaurant Administration Quarterly, vol. 43, no. 1 (February 2002), pp. 31-38.
20. A reference price is defined as the dollar value that consumers assign to product or service. See: Lisa E. Bolton, Luk Warlop, and Joseph W. Alba, "Consumers' Perceptions of Price (Un Fairness," Journal of Consumer Research, vol. 29 (March 2003), pp. 474-91.
21. See: Ibid.
22. Kimes and Wirtz, pp. 31-38.
23. Thomas J. Kelly, Nicholas M. Kiefer, and Kenneth Burdett, "A Demand-Based Approach to Menu Pricing," Cornell Hotel and Restaurant Administration Quarterly, vol. 35, no. 1 (February 1994), pp. 48-52.
24. Kimes and Chase, pp. 156-66.
25. See: R. D. Hanks, R. O. Cross, and R. P. Noland, "Discounting in the Hotel Industry: A New Approach," Cornell Hotel and Restaurant Administration Quarterly, vol. 33, no. 3 (June 1992 , pp. 40-45.
26. Kimes and Chase, pp. 156-66.
27. Kimes and Wirtz, pp. 31-38.
28. Hanks et al., pp. 40-45.
29. I b i d.
30. Kimes and Wirtz, pp. 31-38.
31. Exceptions to this characteristic are prix fixe menus, banquets, and catering where the revenue per guest (or average check) is predetermined by the operator or by contract prior to consumption by the guest.
32. See: Kimes and Wirtz, pp. 31-38.
33. Kimes, on pages 52-67 of this Cornell Quarterly.
34. Sill and Decker, pp. 22-30.
35. For applications see: Ibid.
36. Kimes et al., pp. 18-29.
37. Kimes, on pages 52-67 of this Cornell Quarterly.
38. See: Jacob Hornick, "Subjective versus Objective Time Measurement: A Note on the Perception of Time in Consumer Behavior," Journal of Consumer Behavior, vol. 11, no. 3 (June 1984), pp. 615-18.
39. Susan Powell Mantel and James J. Kellaris, "Cognitive Determinants of Consumers' Time Perceptions: The Impact of Resources Required and Available," Journal of Consumer Research, vol. 29 (March 2003), pp. 531-38.
40. Rongrong Zhou and Dilip Soman, "Looking Back: Exploring the Psychology of Queuing and the Effect of the Number of People Behind," Journal of Consumer Research, vol. 29 (March 2003), pp. 517-30.
41. Amos Tversky and Daniel Kahneman, "Rational Choice and the Framing of Decisions," Journal of Business, vol. 59, no. 4 (1986), pp. S251-78.
42. Grewal and Marmorstein, pp. 452-60.
43. Kimes and Wirtz, pp. 31-38.
44. I b i d.
45. Missing data were treated listwise, on an analysis-by-analysis basis throughout the manuscript. This data treatment resulted in a slightly different n for each grouping of analyses reported. The usable sample size for each set of analyses is reported along with the statistical tests for reference.
46. 2=.08, n=345 for the equation.
47. 2=.04, n=345; p= 0.006 for the dependent and greater than $100,000 income categories using Duncan's multiple range test of difference.
48. To ensure that the missing income data were not systematic, the missing data were treated as a separate (sixth) factor in the one-way ANOVA.
49. 2=.03, n=302 for the equation.
50. 2=.006, n=331.
51. 2=.04, n=347.
52. 2=.02, n= 331.
53. 2=.04, n=339.
54. t(337)=-3.65, p < .001.
55. Kimes and Wirtz, pp. 31-38.
56. See: Tversky and Kahneman, pp. S251-78.
57. Kimes and Wirtz, pp. 31-38.
58. 2=.003, n=358.
59. See: Tversky and Kahneman, pp. S251-78.
60. Kimes and Wirtz, pp. 31-38.
61. This statement is based on the observations of the third author, as a function of her work in the Asian hospitality industry.
62. For examples of operationally focused applications see: Sill and Decker, pp. 22-30.
63. Kimes et al., pp. 18-29.
64. Dennis Reynolds, "Hospitality-productivity Assessment Using Data-envelopment Analysis," Cornell Hotel and Restaurant Administration Quarterly, vol. 44 (April 2003), pp. 130-37.
65. For a detailed discussion of perceived pricing practices in restaurants, see: Kelly, Kiefer, and Burdett, pp. 48-52.
66. Kimes and Wirtz, pp. 31-38.