ON THE REGRESSION ANALYSIS OF MENU PRICE PRESENTATIONS TOWARD CUSTOMER BUYING DECISION IN RESTAURANT SETTING

• Main Author: Wijaya, Michael
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64495
• Institution: Institut Teknologi Bandung

The restaurant business is growing significantly in Indonesia. The trends of the growing restaurant business also can be found in Bandung, the city which has been famous of culinary tourisms and have a lot of culinary products. Therefore, every restaurant has to have their own competitive advantage in order to win and survive in the market. One of the ways is by developing their restaurant’s menu where the restaurant owners or managers have most control over. Price presentation, one of the components in restaurant’s menu, is believed can influence customer’s willingness to pay mediated by customer’s price perception. The use of 9-price ending will create a valuable perception while the use of 0-price ending will create a high quality and expensive perception in customer’s perspective. The use of numerical salience format and currency signs also may carry semantic salience, a key factor in influencing customer’s price perception. Then, the price perception created by the customer will influence their willingness to pay since the customer has a tendency to use their perceived price rather than actual price in making a purchase decision. As a result, the menu price presentation can be utilized by the restaurants and it is important to understand which price presentations that can to increase their revenue, considering the significant growth of culinary business. This study has a purpose to find out what is the effect of numerical salience format, the inexistence of currency signs and the use of even 0-price ending, in the restaurant menu toward customer’s willingness to pay. This study is conducted in Bandung using quantitative approach and questionnaire to collect the data with the total respondents of 409 who have several characteristics: live in Bandung, have an eating out frequency minimum two times a week and have a status of either high school or college students. The data were analyzed using mediation regression analysis. The result of this study is the menu price presentation is significantly influencing the customer’s willingness to pay fully mediated by the customer’s price perception. Other than that, the customers also more prefer toward the use of numerical salience format, the inexistence of currency signs and the use of even 0-price ending in the restaurant menu. Those price presentations also make the products look cheaper and valuable as well as can increase their willingness to pay to the restaurants.