A Cognitive Analysis of Customer Preferences Regarding TheMed Restaurants in Taiwan
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A Cognitive Analysis of Customer Preferences Regarding TheMed
Restaurants in Taiwan
Hwang-Lin Hsu, Instructor, Chienkuo Technology University, and doctoral student of the Graduate Institute of
Civil and Hydraulic Engineering, Feng-Chia University, Taiwan
Dr. Su-Hsin Lee, Professor, National Taiwan Normal University, Taiwan
Dr. Ying-Hung Li, Associate Professor, Feng-Chia University, Taiwan
ABSTRACT
Diners’ preferences regarding themed restaurants contain physical and psychological elements. Twenty two of
them were selected, with the help of a five-member expert panel, as representative constructs and classified into five
central factors – “Thematic Fantasy,” “Environmental Perception,” “Quality of Service,” “Accessibility,” and
“Satisfaction with Meals” – by using principal component analysis (PCA). A total of 417 respondents who had been to
themed restaurants at least once in the previous year were interviewed through a convenient sampling approach. The
contingent valuation method and multiple regression analysis were used to survey the effects of the principle factors and
to obtain a reliable model of consumers’ preferences. The average price consumers were willing to pay was US$14.51
per meal. “Price of Meal,” “Tableware Design,” “Convenience of Location,” “Background Music,” “Speed of
Service,” “Quality of Meal,” “Availability of Parking,” “Building Form,” “Souvenirs,” and “Cleanliness of
Establishment” showed significant influence on customers. The data collected was used to build a model for managers
to frame their pricing strategy.
Keywords: Preferences, Themed Restaurants, Contingent Valuation Method, Pricing Strategy
INTRODUCTION
The main purpose of this research was to construct a preference model to find out the most important factors that
influence consumers’ preferences related to Taiwanese themed restaurants. This information can be used to aid the
managers and designers of themed restaurants. In recent years, the global practice of “eating out” has been referred to as
the “democratization of luxury” (Mennell, 1985; Laermans, 1993). Diners in Taiwan have kept in step with this trend.
People like to go out for socializing, people-watching, and eating. To help satisfy diners’ desires, there has been in
increase in the number of establishments which offer dining entertainment. The desire for fellowship and entertainment
induce people to eat out and enjoy themselves regularly (Pegler, 1999; Yee, 2004; Zerbst & Dorrel, 2000). With this
trend, we can see a fundamental change in the motivation for eating out. Rather than being seen as a life necessity,
dining out is increasingly seen as a leisure activity, with restaurants taking on a variety of forms and offering multiple
market niches.
A themed restaurant has become a symbol of entertainment, style and fashion, and a stage for people to present
themselves (Beardsworth & Bryman, 1999). Consequently, it acts as a symbolic space, implying a fascinating image of
“theater for eating” and a synthesized product of industrialization and modernization (Shelton, 1990). In Beardsworth
and Keil’s (1997) description, the existence of themed restaurants reveals the transformation of leisure into a massive
industry, and the creation of a food system emphasizing dining out as a recreational activity. The themed-restaurant
industry consists of a multitude of objects and experiences. To understand them logically, we need to “categorize and
model the way the mind works” (Westen, 1996, p.17). Before creating a themed restaurant, business owners must take
the important step of knowing the appropriate pricing for their product. They need information upon which to make
their decision. This study not only surveyed the factors related to guests’ preferences, but also examined how to
determine appropriate pricing.LITERATURE REVIEW
Main Features and Classifications of Themed Restaurants
Generally speaking, a themed restaurant’s main features (see Beardsworth & Bryman, 1999; Gray & Liguori,
1990; Pegler, 1997, 1999; Walker & Lundberg, 2005; Yee, 2004) may be described as follows:
1. Cultural resources include art, movies, sports, cartoons, pop music, old acquaintances, fashion, the natural
environments, locality, nationality and ethnicity.
2. Visible, tangible and acoustical devices include toys, artifacts, decor, logos, musical instruments, and souvenirs.
3. Menu and tableware correspondent with the theme.
4. Variations in programs and exhibitions.
5. Geographical and cultural accessibility.
6. No emphasis on culinary content.
Beardsworth and Bryman (1999) also categorized four types of restaurant theming:
1. Reliquary theming, such as is done in the Hard Rock Café and Planet Hollywood, displays “sacred relics” and
generates “a sense of pilgrimage to the experience” (p.240).
2. Parodic theming, such as the kind found in Rainforest Cafés, creates “a sense of involvement in the fantastic”
(p.241).
3. Ethnic theming produces “a distinctive setting which lays claim to being a reflection of some exotic, but recognizable,
culture” (p.242).
4. Reflexive theming, such as is done by McDonald’s, “becomes a theme that entails a transition from a brand in itself
to a brand for itself” (p.243).
In Taiwan, many themed restaurants conform to the above four categories. For example, there is a Hard Rock
Café in Taipei City and there are other chains, such as T.G.I. Fridays, with reliquary theming. McDonald’s, KFC, and
Burger King, with reflexive theming, have spread all over the island.
Contingent Valuation Method
The comprehensive perception of themed restaurants is abstractive and not means for transaction. For the
valuation of those kinds of none-market resources, Ciriacy-Wantrup (1947) first proposed the Contingent Valuation
Method (CVM) as a survey-based economic technique. This method offers an imaginative pricing system to trace the
demand curve for a public good unavailable from market data (Hanemann, 1994). This system referred to as a
preference model helps us recognize what are worth to people (Schelling, 1968). Portney (1994) argued that the
approach of CVM must first “contain a scenario or description of the (hypothetical or real) policy or program for the
respondents to value or vote upon.” Second, “the survey must contain a mechanism for eliciting value or a choice from
the respondents” (pp. 5-6), typically with open-ended questions such as how much money people would be willing to
pay for ...? Two guidelines for the application of CVM are that personal interviews, rather than telephone interviews,
should be conducted to improve face validity, and follow-up questions should be asked to ensure that respondents
understand the choices they are being asked to make and to discover the reasons for their answers. These two guidelines
were followed in this study. CVM is now used in research throughout the world in a variety of fields, including
transportation, sanitation, health, the arts, education and environmental studies (Carson, Martin & Wright, 1994). For
general respondents, CVM offers a simple way for them to express their degrees of preference.
RESEARCH METHODS
Instrument
The questionnaire used in this study measured a 22-item group for “Evaluation of Themed Restaurants,” three
one-item groups (“Main Information Source,” “Favorite Category,” and “Visiting Frequency”), one four-item-group for
“Willingness to Pay and Follow-up Questions,” and a seven-item group for “Demographic Attributes.” The items
“Willingness to Pay,” “Age” and “Annual Income” were set to be open-ended as interval measures (See Table 1). Forcontent validity, an expert panel participated in this research as a focus group. The group consisted of a themed
restaurant manager, a traditional restaurateur, a scholar proficient in consumer psychology, a professional architect, and
an interior designer. They were interviewed through the qualitative process and acted as the “subject matter expert
rater” to check every item of the questionnaire in a yes-or-no referendum format. Each qualified item was approved by
more than half of the panelists. To make sure the survey was clear and understandable, it was given as a pilot study to
50 diners who had visited at least one themed restaurant. The reliability and internal consistency of the survey were
assessed by using Cronbach’s coefficient alpha.
Table 1: Questionnaire of Preferences Related to Themed Restaurants
Group N0. of Item and Main Content Measure
1. Themed Title 2. Programs and Exhibitions 3. Hours of Operation 4.
Spaciousness of Establishment 5. Availability of parking 6. Convenience of
Evaluation of Themed Location 7. Helpful Attitude of Employees 8. Cleanliness of Establishment Interval
Restaurant 9. Layout of Food 10. Variety of Decorations 11. Air Conditioning 12. (5-point
Background Music 13. Noise Level 14. Lighting Design 15. Building Form Likert-type)
16. Tableware Design 17. Menu Design 18. Souvenirs 19. Quality of Meals
20. Price of Meals 21. Speed of Service 22. Content of Advertisements
Main Information
23. The main information source for selection of themed restaurant Nominal
Source
Favorite Category 24. Favorite category of themimg Nominal
Visiting Frequency 25. Frequency of visiting themed restaurants per year Interval
Interval
26. Willingness to Pay (in NT$) when visiting themed restaurant
(open ended)
Willing to Pay and
27. Sense of pleasure when visiting themed restaurants Interval
Follow-up Questions
28. Priorities when dining out (5-point
29. Sense of value of the experience of themed restaurants Likert-type)
30. Gender 31. Residential Area 32. Marital Status 33. Educational Level
Nominal
34. Occupation
Demographic Attributes
35. Age Interval
36. Annual Income (open ended)
Source: Beardsworth & Bryman, 1999; Cadotte & Turgeon, 1988; Dittmer, 2002; Gray & Liguori, 1990; Walker & Lundberg, 2005; Weiss, Feinstein
& Dalbor, 2004; Williams, 2002
Sampling
The survey was conducted in August, 2008, through 500 questionnaires using five-point Likert-type scale
designed to identify respondents’ preferences regarding themed restaurants in Taiwan. Interviewers had been trained
previously and were ready to administer the surveys. Survey participants were interviewed through a convenient
sampling approach in urban areas of Taiwan’s four main regions – northern, central, southern, and eastern – with
sample sizes conforming to the population ratio of each region. Respondents were asked to complete every item in the
questionnaire. A total of 47 respondents stated that they didn’t have time to finish the survey or refused to complete it,
and 36 stated that they had never been to themed restaurants, leaving a qualified sample size of 417, or a response rate
of 83.4%. T-test and ANOVA tests were used to identify the differentiation of different groups. Principle component
analysis, the contingent valuation method, and general linear regression analysis with the stepwise method were used to
analyze the effects of the principle factors and reveal a consumer preference model.
RESULTS
Characteristics of Respondents
The socio-demographic attributes are shown in Table 2. It was noteworthy that 66.43% (38.85%+27.58%) of the
respondents were within the age range of 15-to-30, a latent customer source. Most of them were unmarried, educated at
the college or junior-college level, students, or service-industry employees, and had an income level from none to
US$10,908 per year. T-testing on gender and marital status showed no significant difference in WTP. ANOVA on“Main Information Source,” “Favorite Category,” “Visiting Frequency,” “Residential Area,” “Educational level,” and
“Occupation” showed no significant difference in WTP. “Age” and “Annual Income” showed no significant correlation
between WTP and themselves.
The respondents’ consuming customs are shown in Table 3. A total of 10.79% of the respondents listed their main
information source as friends or relatives, 19.42% as fliers or brochures, 26.62% as newspapers or magazines, 13.67%
as the TV, and 29.50% as the internet. In the “Favorite Category,” 23.50% chose “Reliquary Theming,” 29.50% chose
“Parodic Theming,” 16.79% chose “Ethnic Theming,” and 30.22% chose “Reflexive Theming.” In the “Attending
Frequency,” 38.85% said they visited themed restaurants one time per year, 23.26% visited two times, 18.71% visited
three times, 11.03% visited four times, and 8.15% visited five or more times.
Table 2: Socio-Demographics
Table 3: Consuming CustomsThe Dimensions of Preferences for Themed Restaurants
According to Westen (1996), customers in themed restaurants engage in cognitive “information processing.” A
themed restaurant environment provides customers with stimuli “inputs, which are transformed, stored, and retrieved
using various mental programs, leading to specific response output” (p.17). For simplified analysis, the 22 initial
variables within “Evaluation of Themed Restaurant” need to be simplified, sorted and interpreted. In this research, the
factor analysis technique helped to reduce data and produce new factors that relate to preferences. The result of
reliability analysis shows the overall Cronbach’s α was high at 0.80. The KMO measure of sampling adequacy showed
a value of 0.79, and 2912.38 (x2) of the Bartlett test of sphericity, indicating the appropriateness of factor analysis. First
Factor Analysis (PCA with Varimax rotation) obtained five principal factors for which the eigenvalue was greater than 1
and ignored the variables for which factor loading were lower than 0.5 on each of the factors. Hence, “Hours of
Operation,” “Noise Level,” and “Menu Design” were eliminated, and the remaining 19 variables were used to conduct
Second Factor Analysis. Thereafter, five new factors were extracted and denominated: “Thematic Fantasy,”
“Environmental Perception,” “Quality of Service,” “Accessibility,” and “Satisfaction with Meals.” The solution
accounted for 62.26% of the total variance. It represents a preference model which plays a role of interpreting the
overall perception of themed restaurants. The factor analysis is exploratory and the results are listed in Table 4.
Table 4: Results of Factor Analysis
Factor 1. Thematic Fantasy
This factor includes “Tableware Design,” “Souvenirs,” “Themed Title,” “Content of Advertisements,” and
“Programs and Exhibitions.” It shows the most importance and accounts for 18.05% of the variance. Cronbach’s α is
high at 0.88. “Thematic Fantasy” refers to an imaginative scenario created for the customers. “Themed Title” refers to
how people’s eyes are directed to the restaurant. “Programs and Exhibitions” refers to thematic performances.
“Tableware Design” and “Souvenirs” refer to items which enhance the thematic fantasy experience. “Content of
Advertisements” refers to how the establishment’s advertisements deliver the desired thematic messages and appeal to
consumers’ imaginations. These categories are designed to appeal to customers’ dreams, and they are the perceptions
that provide experiences (Pegler, 1997).
Factor 2. Environmental Perception
This factor shows a relatively high importance and accounts for 16.74% of the variance. Cronbach’s α is moderate
at 0.79. Environmental Perception encompasses the attributes listed below.
1. “Lighting Design,” “Variety of Decoration,” “Spaciousness of Establishment,” and “Building Form” are visual
attributes. They produce a functional and aesthetic sense of space.2. “Background Music” is an auditory attribute and helps establish the interior atmosphere.
3. “Air Conditioning” is a tactile attribute. Air conditioning modulates interior temperature, humidity, and air flow.
4. “Layouts of Food” are visual attributes. The arrangement of the food’s form, color, and texture stimulate the
anticipation of its taste.
In sensory experience, customers perceive and respond to these physical attributes, so the meanings are brought
forth instinctively (Gibson, 1979).
Factor 3. Quality of Service
This factor includes “Helpful Attitude of Employees,” “Speed of Service,” and “Cleanliness of Establishment.” It
shows a moderate importance and accounts for 11.28% of the variance. Cronbach’s α is moderate at 0.74.
Factor 4. Accessibility
This factor includes “Availability of Parking” and “Convenience of Location.” It shows a relatively low
importance and accounts for 8.49% of the variance. Cronbach’s α is moderate at 0.73.
Factor 5. Satisfaction of Meals:
This factor includes “Quality of Meals” and “Price of Meals.” It shows a relatively low importance and accounts
for 7.71% of the variance. Cronbach’s α is moderate at 0.60.
Next, General Linear Regression with stepwise method was conducted. “Price Willing to Pay” was set to be the
dependent variable and the other 19 items were the independent variables. The result showed 10 items remained to build
the confirmatory preference model, with an adjusted R2 at 0.601 (see Table 5).
Table 5: Coefficients of General Linear Regression with Stepwise Method
Based on the WTP approach, the model of consumers’ preferences regarding themed restaurants is shown as
below (with unstandardized coeficients):
WTP = 21.03 + 16.84 * (Tableware Design) + 10.72 * (Souvenirs) + 8.81 * (Building Form) + 10.12 * (Background
Music) + 10.24 * (Speed of Service) + 9.22 * (Cleanliness of Establishment) + 10.60 * (Availability of Parking)
+ 15.26 * (Convenience of Location) + 9.94 * (Quality of Meals) + 17.24 * (Price of Meals)
The mean of the price that consumers are willing to pay (WTP) is US$14.51 per meal. We can identify this
equation by substituting every variable with its mean. According to the Directorate-General of Budget, Accounting and
Statistics (DGBAS, 2008, p.153), the average annual income in Taiwan in 2007 was US$16,792. Thus, most people in
Taiwan would consider US$14.51 to be a relatively high cost for a restaurant meal. Based on follow-up questions,
“Sense of Pleasure When Visiting Themed Restaurants” shows a mean of 4.03, and 0.70 correlated to WTP. “Priorities
When Dining Out” has a mean of 3.97, and 0.68 correlated to WTP. “Sense of Value of the Experience of ThemedRestaurants” has a mean of 3.99, and 0.75 correlated to WTP. Overall, Cronbach’s α is 0.88 and indicates high
reliability. The correlation matrix and subsidiary items are shown in Table 6 below.
Table 6: Correlation Matrix of WTP and Subsidiary Items
DISCUSSION AND CONCLUSIONS
Within the factor of “Thematic Fantasy,” the categories of “Tableware Design” and “Souvenirs” strongly
influenced the price charged at themed restaurants. We may infer that these two categories are important to the physical
perceptions of Taiwanese customers. The categories of “Themed Title,” “Content of Advertisements,” and “Programs
and Exhibitions” had minimal influence on Taiwanese customers. Within the factor of “Environmental Perception,” the
categories of “Building Form” and “Background Music” were influential to the price of themed restaurants. The
categories of “Lighting Design,” “Variety of Decoration,” “Spaciousness of Establishment,” “Air Conditioning,” and
“Layouts of Food” were of less significance. This indicates that in themed restaurants such as McDonald’s and
Kentucky Fried Chicken, building form and background music are important to Taiwanese people.
Within the factor of “Quality of Service,” the categories of “Speed of Service,” and “Cleanliness of
Establishment” were influential to price of themed restaurants. The fact that the mean of “Helpful Attitude of
Employees” is 4.32 shows that customers pay much attention to this facet. However, it was deleted in regression,
possibly because the customers thought the price they had paid did not conform to that value. Within the factor of
“Accessibility,” the categories of “Availability of Parking” and “Convenience of Location” were influential to the cost
of themed restaurants. It is logical to infer that these two geographic variables influence the customers’ costs of parking
and transportation and influence the rent and pricing strategy of themed restaurants. Within the factor of “Satisfaction
with Meals,” the categories of “Quality of Meals” and “Price of Meals.” were moderately influential.
Based upon the data collected, a consumers’ preference model of themed restaurants was constructed. Ten
measurable variables – “Tableware Design,” “Souvenirs,” “Building Form,” “Background Music,” “Speed of Service,”
“Cleanliness of Establishment,” “Availability of Parking,” “Convenience of Location,” “Quality of Meal,” and “Price of
Meal” were useful to calculate WTP. The model created can serve as a reliable instrument for pricing strategy. A themed
restaurant representing contemporary commercial culture and thematic impressions attempts to enhance the dining
experience of their customers with detailed presentation and diverse marketing techniques. As the owners conduct the
restaurant concept to a more refined level – staging an experience that sells (Pine & Gilmore, 1998) and making a
valuable contribution to the social environment, the finding of this research serves as an aid in the management and
marketing strategies of themed restaurants in Taiwan.
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