Modeling Consumer Intention to Revisit the Same Restaurant and a Simple Algorithm of Coupon Discount Rate

Abstract

The theory of consumer choice is applied to model consumer intention to revisit the same restaurant. Findings show that server’s service quality, taste of the food, the restaurant’s environment, consumer satisfaction with the price of the meal, consumer’s total budget, coupon discount rate, sales tax rate, and tipping rate may influence a consumer’s intention to revisit the same restaurant. A simple algorithm for determining a coupon discount rate for restaurant owners/managers also is suggested. This study’s main contribution is in framing an economic theoretical model for consumer intention to revisit the same restaurant, which can be useful in constructing empirical models for further investigations of this issue.