Using a Discrete Choice Model to Identify Consumer Meal Preferences Within a Prix Fixe Menu

Abstract

Previous research has shown that consumers form perceptions of value when buying a bundle through the comparison of a bundle price to the sum of associated individual prices. The perceptions of value are then directly related to preference or choice. Using a prix fixe menu as a bundle exemplar, the above notion of value perception was empirically tested by investigating whether consumers were more likely to choose higher priced á la carte items to be included in their bundles when given an opportunity to choose between various prix fixe menus. The study finds that price differences among á la carte items indeed influenced consumers' choice decisions when selecting a prix fixe menu; consumers attached more importance to the higher priced appetizer and entrée items than the lower priced ones.