Article: “Study: “Price Endings Have Psychological Effect on Restaurant Customers” (May 2001)

dollar.jpg

excerpt:
"This isn't a decision-making tool that's based on economics," said Parsa, associate professor of hospitality management in the College of Human Ecology. "It's more psychological. If you are in the high end of the market, you want to maintain the image of quality.

When reviewing the responses, the researchers found that participants tended to choose "0" price endings when choosing for high quality, and tended to avoid "0" endings when choosing for high value.

The research shows a synergy between consumers' expectations when they see the price of an item, and the image that restaurants hope to project, Parsa said."

source: "Study: "Price Endings Have Psychological Effect on Restaurant Customers" by Martha Filipic (Ohio State Univ., May 15,2001)

research paper: "Menu Price Endings That Communicate Value and Quality" by Naipaul, Sandra; Parsa, H. G. (Cornell Hotel & Restaurant Administration Quarterly, Feb. 2001)

This may already be common knowledge among restaurant professionals, however it is always beneficial to know the source, science, and research behind the practice.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: