MARKETING DETERMINANTS OF CUSTOMERS' ATTITUDES TOWARDS SELECTING A RESTAURANT

ABSTRACT This study examines the marketing determinants of customers' attitudes towards selecting a restaurant either for leisure or for business. Various factors such as service, product, location, physical, promotion, price, and image attributes were rated and analyzed on importance. The study utilizes a self-administered questionnaire containing close-ended questions to a random sample of people (usable 556 surveys). The questionnaire consisted of 7-point bi-polar type scales about different attributes. Factor analysis and paired t-tests were performed and means were determined. The findings of this exploratory study supports that customers find food quality, ambience factors, image, and friendly staff important in selecting a fine dining restaurant. The business sector wants availability of rooms for special functions, seminars, and banquets, while the leisure segment wants discounts, buffets, and prices less than $30 a person. INTRODUCTION Restaurants across the globe are estimated to have generated more than US$704 billion in revenues in 1997 and employed more than 48 million people, (Olsen, 1999). According to the National Restaurant Association, almost half of all Americans are cooking fewer meals at home than they were in 1994 (Managing Risk, 1998). Moreover, Americans lives are growing busier making time more valuable. Therefore, people are choosing to spend less time in their kitchens. The number of double-income households is increasing meaning that both spouses are working, which creates less time at home and for meal preparations. In addition, Americans are working beyond forty hours a week. As a result, consumers purchase more prepared or partially prepared foods that require little or no cooking time and dine out for everyday meals more frequently. Restaurants and catering facilities will play a larger part in entertaining family and friends, for business, or special occasions. (Visions of the Future, 2000) As the demand for food away from home increases, there is opportunity for growth in the restaurant industry. According to Setlow (1998), only 29% of Americans enjoy preparing weeknight meals, and less than half like to cook on special occasions and holidays, or when entertaining guests. Therefore, this is where restaurants can offer a hassle-free alternative for individuals and families. A restaurant takes a basic drive-the simplest act of eating-and transforms it into a civilized ritual involving hospitality, imagination, satisfaction, graciousness, and warmth (Gunasekeran, 1992). Physiological and social needs are listed in Maslow's hierarchy of needs. Hunger is a need that produces physiological discomfort, which can be satisfied by eating. Restaurants can satisfy this physiological need and can also satisfy a person's higher level needs. Going to a restaurant is a social experience, an opportunity to meet old friends, amazed by exciting food presentations, and to even be entertained by a small musical ensemble or a chef preparing the meal at the table in front of the customers. Quick meals and convenience, social occasions, business necessity, and celebration are all reasons people dine out (Kivela, 1997). Two markets can be defined by their ability to satisfy a customer's needs; the dining market are those who need to satisfy both their social and ego needs which may be motivated by recognition, prestige, status, or norms; while the eating market is motivated by physiological needs (Gunasekeran, 1992). Management must determine customers' needs and perceived expectations and satisfy them (Spears, 1991) Customers are people with individual needs, yet segmenting them into groups with similar product needs is a necessity in the foodservice industry (Spears, 1991). The dining market can be divided into two market segments, leisure and business, based on their reasons for dining. Professionals who attend restaurants for economic benefits and meeting with clients comprise the business market. …