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Expert opinion and cuisine reputation in the market for restaurant meals

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  • James Joseph Fogarty

Abstract

As food is an experience good, the market for restaurant meals is a market where the cost of acquiring information regarding quality is relatively high. In such markets consumers often turn to reputation measures to guide purchase decisions. As Australia does not have a longstanding cuisine style of its own, and given Australia has been open to substantial immigration inflows since federation, it represents an especially appropriate market to study regarding the impact of individual restaurant reputation and collective cuisine reputation on meal prices. The following study uses the hedonic price approach to investigate the implicit price of individual reputation indicators, cuisine type reputation indicators and other objective indicators in the market for restaurant meals. The empirical findings presented suggest that both individual restaurant reputation and cuisine type reputation are important. Other important factors are shown to include the quality of the restaurant wine list, the availability of private dining rooms, and whether or not there is an outdoor dining option.

Suggested Citation

  • James Joseph Fogarty, 2012. "Expert opinion and cuisine reputation in the market for restaurant meals," Applied Economics, Taylor & Francis Journals, vol. 44(31), pages 4115-4123, November.
    • Handle: RePEc:taf:applec:44:y:2012:i:31:p:4115-4123
    DOI: 10.1080/00036846.2011.587780
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    References listed on IDEAS

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    Cited by:

    1. Dakshina De Silva & Caroline Elliott & Robert Simmons, 2013. "Restaurant wars," Working Papers 44312700, Lancaster University Management School, Economics Department.
    2. ChihChien Chen & YangSu Chen, 2017. "The impacts of different types of cuisines and restaurants on gratuities," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(2), pages 154-173, April.
    3. Dieter Pennerstorfer, 2014. "Price and Quality Competition in Spatial Markets. The Case of Camping Sites," WIFO Working Papers 466, WIFO.
    4. Peter-J. Jost & Stefanie Schubert & Miriam Zschoche, 2015. "Incumbent positioning as a determinant of strategic response to entry," Small Business Economics, Springer, vol. 44(3), pages 577-596, March.

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