The effect of cues on service quality expectations and service selection in a restaurant setting

Abstract

While considerable research has been conducted on cues used by consumers in product assessment and selection, equivalent research in the area of services is still in its infancy. Marketers of services should understand which cues are most important to customers, assessing both the expected level of service and the choice of a service, and also how these cues are traded off against each other. In particular, it is of interest to determine whether the cues are used differently in the two contexts (expected level of service and choice of a service) and, if so, how. In a pilot study, conjoint analysis was used to examine the trade-off nature of cues in these contexts. The service selected was a restaurant. Results indicate that price plays a minor role in influencing service expectations and selection of a service, but that more personal sources of information-specifically manner of employees and opinion of friends and relatives-have the greatest influence on both expectations and selection. A low price, while contributing positively to service selection (the lower the price, the more likely to use), contributed negatively to service quality expectations (the lower the price, the lower the service quality expectations). This suggests that despite the relatively minor importance of price, marketers should be cautious in their use of pricing, particularly in targeting new users of their product/service, who depend more on extrinsic cues, such as price, than do repeat users. The study used a student sample. Target markets will undoubtedly differ for different types of restaurants (e.g., fast food, family, intimate) in different locations. Nonetheless the study generates some worthwhile findings and issues for consideration in future studies. Practitioners should conduct a study among their own unique market segments to determine how various cues influence selection and perceptions of service quality. Recommendations for developing a list of cues are given along with suggestions for further research. © 1992, MCB UP Limited