Curated News
By: NewsRamp Editorial Staff
December 04, 2024

Study Reveals Consumer Reaction to Restaurant Dynamic Pricing

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Source News Release

TLDR

  • Restaurants adopting dynamic pricing face reduced spending and heightened price scrutiny, posing a risk for profitability.
  • RMS study used eye-tracking technology to analyze consumer behaviors, revealing reduced spending and increased price scrutiny with dynamic pricing.
  • Transparent pricing strategies can build lasting customer relationships and trust, addressing consumer concerns and driving profitability for restaurants.
  • RMS' eye-tracking research reveals that dynamic pricing in restaurants leads to reduced spending and heightened focus on finding good deals.

Impact - Why it Matters

Restaurants need to be mindful of implementing dynamic pricing strategies, as the study shows that consumers perceive it as unfair, leading to reduced spending and heightened price scrutiny. As the industry faces economic pressures and shifting consumer expectations, understanding consumer perception of pricing is crucial for building trust and long-term loyalty.

Summary

A new behavioral study led by Revenue Management Solutions (RMS) revealed that consumers perceive dynamic pricing in restaurants as unfair, leading to reduced spending and increased price scrutiny. RMS researchers used cutting-edge eye-tracking technology to study how 260 U.S. and U.K. participants interacted with online restaurant menus under different conditions. The study found that participants exposed to dynamic pricing ordered smaller portions and spent 3% less than the control group, indicating a negative impact on overall spending. As the industry looks toward 2025, RMS predicts ongoing challenges for fast-food brands and restaurants amid economic pressures and shifting consumer expectations.

Source Statement

This curated news summary relied on this press release disributed by News Direct. Read the source press release here, Study Reveals Consumer Reaction to Restaurant Dynamic Pricing

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