An Analysis of Restaurant Characteristics and Meal Prices in Melbourne, Australia

Abstract

This paper applies the hedonic price function approach to identify and estimate the variations in meal prices according to various characteristics of a sample of restaurants in Melbourne, Australia. The estimated hedonic price functions have important implications for restaurant marketing strategies and provide useful information to customers, and may serve to improve the efficiency in the market for restaurant dining. From the point of view of restaurant operators, the results indicate how short-term and long-term investment decisions may be made to impart particular characteristics. From the perspective of customers, the results provide information on price premia and discounts for restaurant meals according to each of the characteristics, including locations.

The contributions of economics to hospitality literature: A content analysis of hospitality and tourism journals

“…In studies where demand analyses were concerned with the factors influencing demand, the underlying framework was largely based on the consumer demand theory in economics, which economists use to examine how consumers adjust their quantity demand to factors, such as prices, income, preferences, seasons, and events. With regard to the studies on pricing and pricing determinants (e.g., Yim et al, 2014;Thrane, 2007;Monty and Skidmore, 2003;Aguilo et al, 2001;Gunawardana and Havrila, 1996), the conceptual model that was frequently applied was the hedonic pricing model, which treats …”

Worldwide hedonic prices of subjective characteristics of hostels

“…They have also being largely employed to valuate nonmarket assets, especially environmental amenities (Baranzini, , Ramirez, , Schaerer, & Thalmann, 2008a). In the tourism field, hedonic prices have been used to assess the value of characteristics in different markets, including destinations ( (Gunawardana & Havrila, 1996;Yim, lee, & Kim, 2014), national parks (Pearson, Tisdell, & Lisle, 2002), ski lift tickets (Falk, 2008) and scuba diving (Brander, Van Beukering, & Cesar, 2007).…”

Hedonic Price Models and Sun-and-Beach Package Tours: The Norwegian Case

“…The examined dependent variables comprise package tour or inclusive tour prices (Aguilo, Alegre, and Riera 2001;Aguilo, Alegre, and Sard 2003;Clewer, Pack, and Sinclair 1992;Espinet et al 2003;Papatheodorou 2002;Sinclair, Clewer, and Pack 1990;Taylor 1995) and hotel room prices (Coenders, Espinet, and Saez 2003;Israeli 2002;Monty and Skidmore 2003;White and Mulligan 2002). Furthermore, Schwieterman (1995) examined airfare prices and Gunawardana and Havrila (1996) scrutinized restaurant prices within a hedonic framework. The studies regarding package tours/inclusive tours are especially relevant as background for this study, and these are briefly reviewed below.…”