The magic of price‐ending choices in European restaurants: a comparative study

Abstract

PurposeThe aim of this paper is to understand the price‐ending strategies in European restaurants and make practical suggestions to the managers.Design/methodology/approachData were collected from restaurant menus in three European countries. Results were compared with those of USA and Taiwan.FindingsThe price‐ending strategies of European restaurants are distinctly different from those of the USA and, interestingly, have more in common with those of Taiwan.Research limitations/implicationsThe small sample size is a concern. Data were limited to three countries. Inclusion of more European restaurants is highly desired, especially with the Euro as a common currency.Practical implicationsRestaurant companies could have better understanding of the impact of cultural differences, while implementing price‐ending strategies.Originality/valueThis paper presents a case where cultural differences are of significant economic value in setting restaurant menu prices. In Europe, dining out is considered more a cultural activity than a utilitarian participation. The historical roots of the usage of digit zero in a European context are presented here.

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“…Extant studies, especially those in the context of marketing, suggested that lucky numbers are perceived by Chinese customers as a signal of good product quality and a successful brand, thereby facilitating the decision-making process and even promoting product satisfaction (Block and Kramer, 2009; Kramer and Block, 2008). Scholars in tourism and hospitality have also recognised the determinant role of lucky numbers by indicating that the presentation of discounts containing ‘8’ can increase customers’ purchase intentions towards a gift and even the attitudes towards a destination (Hu et al, 2006; Wang et al, 2021). However, little research has been done on how the lucky number 8 in price affects customers’ room booking decisions and future rating behaviour.…”