How Consumer Behaviour Affects the Restaurant Industry in London - Literature review Example

How Consumer Behaviour Affects the Restaurant Industry in London – Literature Review Methodology Basically, for this literature review, I first devised a search strategy based on my topic which was consumer behaviour in restaurants. Although the topic focuses on an Italian public restaurant in London, it was important that I broadened my search for literature from all over the world as marketing strategies and consumer behaviours have many features which are common and can be applied in my literature review. Additionally, by learning from other environments, it would also help me understand the topic better. I utilized the search engine Google Scholar as I am most familiar with it, it is easy to use and generates a good amount of proper literature. I paid additional attention to obtaining information from books and journals which are related to the field of consumerism, advertising and even psychology as consumer behaviour is rooted in learning modalities. My key words were “consumer behaviour”, “public restaurants”, “consumers’ perspective of restaurants”, “marketing strategies” and “food and beverage industry”. The returned results were then analysed for relevance to the topic and those which were chosen were then divided into different categories which included introduction to consumer behavior, theoretical concepts of consumer behaviour and factors affecting consumer behaviour for the food and beverage industry. The papers chosen were then critically appraised individually to ensure that the information was reliable and could be quoted in my literature review. Next, I reread the papers and noted down information which I would be using in my work. The following step was the write up in which I wrote the literature review and incorporated the reviewed papers, referenced appropriately and proofread. Introduction It is undeniable that consumers are the basis on an economy and this is no different when it comes to a restaurant. Marketing decisions such as the type of service offered and even the menu is usually based on how consumers behave and what they want (Hawkins et al, 2001, p. 8). Thus, the study of understanding these needs which is marketing is rich with information in order to provide not only restaurant owners and operators with information which can be translated into more customers, better service and directly, higher profits but the consumers or the customers also obtain what they need. Models of consumer behaviour To understand how consumer behaviour affects the restaurant industry in London, it is important to first understand the model of consumer behaviour. There are many models which attempt to decipher consumer behaviour and these models use factors such as influence, various stimuli and the decision making process which a consumer goes through. For example, the consumer behaviour model by Kotler (2000, p. 161) explains consumer behaviour via multiple marketing mixes such as the product, place and price, the consumers’ characteristics such as cultural, social and personal differences and the consumer’s decision making process such as the purchase decision and searching for information. For example, if a consumer were to frequent an Italian restaurant, he/she may have had a cultural experience (such as a trip to Italy previously) or social experience (friends/relatives who are Italians/been to Italy) but factors such as the price of the food and the place (distance) would also determine whether or not this consumer would frequent that restaurant. Another theory by Engel et al (1995, p. 154) is based on aspect of how environmental influences and individual differences can affect how a consumer makes a decision and these factors are important when it comes to the decision making process. This process is also influenced by the consumer’s memory recall which is used in performing a transaction, in this context whether or not to go to a restaurant and deciding whether the action taken resulted in a satisfactory outcome or vice versa. Basically, if the Italian restaurant has managed to give the consumer a good impression with good service and food at a reasonable price, there is a higher probability that the consumer would return. Hawkins et al (2001, p. 26) also put forward a theory involving the decision making process where this process is actually activated when a consumer interacts in different kinds of exchange processes which directly give the consumer more experience and then influencing their lifestyle. Additionally, certain influences which arise at that time of making the decision can also change the model at any point as human behaviour is usually governed by emotions. Internal factors affecting consumer behavior Lifestyle When a consumer goes to a public restaurant, their lifestyle also determines their behaviour. Basically, lifestyle can be defined as the person’s pattern of living which is shown in aspects of their life such as personal interests and opinions (Kotler, 2000, p. 168). Lifestyle is influenced by consumers’ past experiences, personal characteristics and as mentioned earlier, changes within the current situation. To relate this to the food and beverage industry, it is important for restaurateurs to know the lifestyle of their target consumers or the general population, in this case, people from London in particular. This can be divided into how, when, what and where the consumer makes a purchase (goes to the restaurant) and with whom, how, when and what is consumed (the type of food/drinks ordered). After a while, this lifestyle which revolves around the restaurant would be ingrained in their memory (Whelan, 2001, p. 20). Consumers are often unaware of the role of lifestyle in their daily behaviour and after a while, a consumer might think that “I have to go to XYZ Italian restaurant (so that I can maintain my lifestyle)”. Perception A consumer’s perception of the restaurant can also affect their behaviour. As noted by Shimp (1997, p. 122), perception is the process where a consumer selects, organizes and then interprets the information in order to create a meaningful picture of the situation. However, it is impossible for a consumer to process all the information which they receive everyday and in this case, advertisements. Thus, consumers have selective attention which allows them to perceive information which they only need or are interested in. This is further influenced by the consumers’ personal needs or the need to fulfill certain preconceptions (Singh et al, 2000, p. 59). Thus, although they may be bombarded by various information constantly, it is the role of the restaurant to send information which conforms to theirs customers’ beliefs and attitudes. It is also important that the consumer is paying attention in order for the information to be processed and then influence future decisions. Advertising information should be put in bold, contrasting colors as well as a recognizable size and format. Thus, not only should the restaurant have factors such as good food, pricing and location but branding is also important so that the consumer would remember the place well for a repeat visit (Burgess, 1998, p. 53). The restaurant too should assign meanings which relate to their products. This is because consumers related a certain pattern to the characteristics of the stimulus (Arens, 1999, p. 132). A name would also give a certain assumption and the restaurant would be expected to fulfill this. For example, an Italian restaurant would probably be frequented more if it is named “Steffano’s” or “Raviolo” (which are easily recognizable Italian names) rather than “John’s” even if “John’s” serves better Italian food. Emotions Consumer behaviour towards a restaurant is also affected by the emotions which it invokes. People in general experience various emotions at different times and these emotions can be triggered by environmental factors (Taylor, 2000, p. 146). Emotions in relation to the restaurant business can make a relatively simple restaurant into a place which is associated with an emotion provoking memory and if it is a happy one, then, consumers would frequent that place. In the context of an Italian restaurant, creating an ambience which is similar to that of traditional Italian restaurants, having home cooked items on the menu and offering a friendly service may help in promoting these emotions which can be translated into more customers. External factors affecting consumer behaviour Restaurateurs should also note that external factors such as the cultural context of the community also play a role in determining consumer behaviour. It has been hypothesized that the influence of culture is so strong that it even determines how aspects such as perception and lifestyle (discussed above). Basically, culture can be defined as a complex mixture of beliefs, knowledge, traditions and morals which are acquired by humans as members of a society (Tian, 2000, p. 273). Thus, understanding of the cultural context too, can be translated into consumer behaviour when it comes to going to a restaurant. Consumers are sometimes unaware that cultural differences affect the way they behave and make decisions. Often, the feeling that something should be done because “it’s the right thing to do” is rooted in culture. Additionally, culture is something which is passed down from one generation to another but it is also adaptive (Smith, 1997, p. 243). As culture is a comprehensive concept, it influences almost everything in a person’s life including his/her thoughts and feelings and certain symbols are a representation of a particular culture. This theoretical knowledge can then be translated into practical approaches within the restaurant. For example, in the context of an Italian restaurant, the target consumers theoretically would be people of Italian descent living in London but with the adaptive mechanism in place, it would be a more practical approach for advertising modalities to target everyone in London itself especially consumers who frequent mid-market level restaurants. It is also important for the menu to have traditional Italian fare such as pastas and pizzas as these foods represent Italy and its culture. It would not be a good business decision to carry many less recognizable items too as consumers have to recognize and remember what they have eaten and experienced. Additionally, the symbolism of pizza/pastas with Italian food is undeniable. Conclusion Thus, we can see in this literature review that there are many factors which affect consumer behaviour towards public restaurants. Understanding the theoretical concepts can help restaurants maximize their resources which can then be translated into higher profits and a better consumer experience. Consumers are susceptible to internal influences such as perception and memory as well as external influences such as culture. However, it is important to note that these factors are flexible and it is up to marketers as well as restaurateurs to adapt to these changes. References: Arens, W.F., 1999, Contemporary Advertising, 7th edition, U.S.A.: McGraw-Hill Burgess, S.M., 1998, The new marketing: Building strong marketing strategies in South Africa today, South Africa: Zebra Press. Engel, J.F., Blackwell, R.D., Miniard, P.W., 1995, Consumer Behavior, 8th edition, U.S.A.: Dryden Press. Hawkins, D.I., Best, R.J., Coney, K.A., 2001, Consumer Behavior: Building Marketing Strategy, 8th edition, New York, U.S.A.: McGraw-Hill. Kotler, P., 2000, Marketing Management, Millennium edition, New Jersey, U.S.A.: Prentice Hall. Shimp, T.A., 1997, Advertising, promotion and supplemental aspects of integrated marketing communications, 4th edition, U.S.A.: Dryden Press Singh, M., Balasubramanian, S.K., Chakraborty, G., 2000, “A comparative analysis of three communication formats: advertising, infomercial and direct experience,” Journal of advertising, Winter 2000, Vol. 29, Issue 4 Smith, T., 1997, “Recognizing difference: The Romani ‘gypsy’ child socialization and education process,” British Journal of Sociology of Education, June 1997, Vol. 18, Issue 2 Taylor, R.K., 2000, “Marketing strategies: Gaining a competitive advantage through the use of emotion,” Competitiveness Review, 2000, Vol. 10, Issue 2. Tian, R.G., 2000, “Understanding consumer behavior: The psycho-anthropological approach,” North American Journal of Psychology, December 2000, Vol. 2 Issue 2. Whelan, D., 2001, “Black boom in the ‘burbs,” American Demographics, July 2001, Vol. 23, Issue 7 Read More

 

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