What are the Primary Drivers of Marketing Success?: Evidence From Brand-Level Data on Restaurants

Abstract

A multivariate analysis of brand level data from the restaurant industry found that penetration increased with number of units for limited and full service restaurants (LSRs and FSRs) and with customer service experience ratings for FSRs. For both types of restaurants, average purchase frequency increased reliably with the number of units and with perceived value, but not with broader customer experience ratings or the existence of a reward program. Finally, average check size increased with service experience but only for FSRs. Given that brands differ much more in penetration than in average purchase frequency or average check size, these findings suggest that marketing success comes primarily from increased physical and mental availability, with brand differentiation, but not reward programs, also contributing to that success.