Consumer patronage and willingness-to-pay at different levels of restaurant attributes: A study from Kenya

Abstract

This study investigates the effect of three key restaurant attributes – food quality, service quality and ambiance – on consumers’ (i) willingness-to-pay (WTP) and (ii) intentions to patronage (ITP) for limited service and upscale restaurants in Kenya. A full-profile 2 (types of restaurants) × 2 (levels of attributes) × 3 (service attributes) factorial design was developed in which type of restaurant (upscale dining and limited service) was varied as a between-subjects factor, and the variations in the attributes and levels a within-subject factor. Findings indicate that food quality is the only attribute to have a positive relationship with both consumer patronage and willingness-to-pay, in high-end as well as limited service restaurants. Service quality and ambiance both have an effect on consumer intentions in upscale dining, but not in a limited service restaurant. Moreover, an interaction effect was found. In high-end restaurants, and not so in limited service restaurants, increase in ambience was found to increase patronage and willingness-to-pay by a significant amount if service quality was also increased. The study extends previous work on the nature of restaurant attributes, as it (1) examines consumer preferences in a developing country, and (2) shows how attributes interact and affect ITP and WTP differently in a limited service and high-end restaurant context.

Keywords: attributes; consumer behavior; willingness to pay; consumer patronage; price