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A case study related to customers’ evaluations about the effect of price promotion in coffee chain stores
Promotional pricing can be defined as the sales promotion strategy which consists reducing the price of a goods or services in order to attract more customers, retain old customers and maximize the sales volume or revenue in food and beverage industry (mbaskool). (Raghubir and Corfman,1999) mentioned price promotion are mutual strategy and it used to reduce the price for a given quantity or remain the selling price by increasing the quantity available to the customer. http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/3237-promotional-pricing.html The manager of food and beverage department should …show more content…
SERVQUAL model is developed by Parasuraman which is an empirical model used to do comparison between service quality performance with customer service quality need. http://www.mbabrief.com/what_is_servqual_model.asp There are 5 dimension used to measure service quality which are reliability, assurance, tangibles, empathy and responsiveness (RATER). For John and Tyas (1996), they also mentioned that they used this model to evaluate services of a contract catering service and included items that have related to food quality. However, Carmen (1990) said that SERVQUAL dimensions were not completely generic since the SERVQUAL model just focused on customer perceptions of service quality. Service quality can divided into 2 dimension which are technical quality and functional quality which is proposed by Gronroos and Lehtinen (1991) agreed with two-dimensional model of service . Technical quality can be known as what customer get as a outcome of their mutual effect with the service company while functional quality is defined as consumer evaluations on the process of service delivery. Therefore, food service setting should use two-dimensional model of service because this model seems to be more suitable as it focused on process and outcomes. Food service are unique as it combine tangible (food) and intangible …show more content…
There are 3 items used to measure service quality which are services provided by employees are professional, suggestion provided by employees can meet consumers’ specific need and employee courtesy. The taste of food and beverage, quality consistency of food and beverage and the different choices of food and beverage are used to measure quality of food and beverage.
The correlation between service quality and satisfaction and customers’ behavioral intention already been addressed in food and beverage industry. The level satisfaction of the customer toward to the restaurant or food industry is very significant as satisfaction of customer is a medium between service quality and behavioral intention and also can help to empower the loyalty of customer.
There are some negative outcomes of promotional pricing. Raghubir and Corfman (1995) stated that the effect of price promotion on brand evaluation is based on the the frequency of such price promotions. Based on their research, they found that only poorer quality of the brand product will promote more frequently compare to other food industry. As a food manager must understand price promotion is a tool used to attract customers but it also can give negative impact to our food industry such as influence brand evaluations in specific product
A case study related to customers’ evaluations about the effect of price promotion in coffee chain stores
Promotional pricing can be defined as the sales promotion strategy which consists reducing the price of a goods or services in order to attract more customers, retain old customers and maximize the sales volume or revenue in food and beverage industry (mbaskool). (Raghubir and Corfman,1999) mentioned price promotion are mutual strategy and it used to reduce the price for a given quantity or remain the selling price by increasing the quantity available to the customer. http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/3237-promotional-pricing.html The manager of food and beverage department should …show more content…
SERVQUAL model is developed by Parasuraman which is an empirical model used to do comparison between service quality performance with customer service quality need. http://www.mbabrief.com/what_is_servqual_model.asp There are 5 dimension used to measure service quality which are reliability, assurance, tangibles, empathy and responsiveness (RATER). For John and Tyas (1996), they also mentioned that they used this model to evaluate services of a contract catering service and included items that have related to food quality. However, Carmen (1990) said that SERVQUAL dimensions were not completely generic since the SERVQUAL model just focused on customer perceptions of service quality. Service quality can divided into 2 dimension which are technical quality and functional quality which is proposed by Gronroos and Lehtinen (1991) agreed with two-dimensional model of service . Technical quality can be known as what customer get as a outcome of their mutual effect with the service company while functional quality is defined as consumer evaluations on the process of service delivery. Therefore, food service setting should use two-dimensional model of service because this model seems to be more suitable as it focused on process and outcomes. Food service are unique as it combine tangible (food) and intangible …show more content…
There are 3 items used to measure service quality which are services provided by employees are professional, suggestion provided by employees can meet consumers’ specific need and employee courtesy. The taste of food and beverage, quality consistency of food and beverage and the different choices of food and beverage are used to measure quality of food and beverage.
The correlation between service quality and satisfaction and customers’ behavioral intention already been addressed in food and beverage industry. The level satisfaction of the customer toward to the restaurant or food industry is very significant as satisfaction of customer is a medium between service quality and behavioral intention and also can help to empower the loyalty of customer.
There are some negative outcomes of promotional pricing. Raghubir and Corfman (1995) stated that the effect of price promotion on brand evaluation is based on the the frequency of such price promotions. Based on their research, they found that only poorer quality of the brand product will promote more frequently compare to other food industry. As a food manager must understand price promotion is a tool used to attract customers but it also can give negative impact to our food industry such as influence brand evaluations in specific product