Crisis Management Practices and Strategic Responses Through Customer Loyalty and Price Strategy in Hard Times: Evidence from Fine-dining Restaurants

Abstract

Management practices, strategic responses and strategies is an important part of strategy research. However, little is known about the linkage of those themes in general, restaurant services context and crisis times in particular. Thus, this study examines the relationships among crisis management practices such as income and cost reductions and efficiency and competitivity improvement, strategic responds such as reactive and proactive responses, adding customer value and gaining flexibility and strategies of customer loyalty and price strategy within the context of “branded” restaurants in Turkish hospitality industry. The study employs a questionnaire that evaluates the attitudes of fine dining restaurants in terms of those themes during economic downturn in 2009. Evidence from 45 restaurants reveals that strategic responses, management practices, and customer royalty have significant relationships.