Consumers' choice factors of an upscale ethnic restaurant

Abstract

Globally, there is a growing demand for food away from home as a result of higher incomes, changes in consumption patterns, changes in household composition, and the time pressures created by dual-working families. The foodservice industry has become highly competitive as the number of foodservice outlets has increased to meet the demand. In order to succeed in such a competitive industry, restaurant operators need to understand the factors (and their relative importance) that influence restaurant patrons’ decision when selecting a restaurant. The demand for ethnic foods has also increased, in New Zealand and worldwide, due to the influences of ethnic diversity, overseas food and cultural experiences, and media exposure. Despite the importance of restaurant choice criteria and a growth in popularity of ethnic foods, published research on consumers’ restaurant selection behaviour that focuses on the ethnic segment is relatively limited. Furthermore, there are no published empirical studies on ethnic restaurant choice behaviour in New Zealand. This research aims to fill these gaps in the literature by empirically identifying the factors that influence a decision to dine at an upscale ethnic restaurant, their relative importance, as well as their relationships with dining occasion and consumer characteristics. Focus group discussions and the literature review helped identify a set of restaurant choice factors. A mail survey was used to collect the data. Factor analysis was used to refine the restaurant choice factors, and logistic regression analysis identified the five significant factors that influence consumers’ decision. These are: Dining Experience, Social Status, Service Quality, Food Quality, and Value for Money, listed in order of their importance. The results of t-tests and ANOVA suggested that consumers perceived the restaurant choice factors differently based on their demographic characteristics. The results of this study contribute to the marketing theory by providing an empirical framework of consumer selection behaviour in New Zealand upscale ethnic dining establishments. The study will also assist marketing practitioners and operators of ethnic restaurants to develop their strategies and offer the attributes that attract and retain customers.