What makes a restaurant luxurious? The promise of superior quality food, services and ambience. Due to strong competition and the high cost of consuming high-quality offerings, studies show that the revisitation rate in the sector is relatively low. One of the key strategies for customer retention used by up-scale restaurants is to consistently provide innovation. Luxury restaurants rely on differentiation by innovation and it is essential that businesses in this industry understand how customers react to the innovative restaurant image; especially since businesses in this sector compete based on the ability to innovate effectively.
In order to achieve success in innovation, a business needs to understand the construct of consumer innovation. Consumer innovation is defined as the propensity of individuals to embrace novel or unique ideas, products or services. It is well known that the majority of consumers tend to resist adoption of new products, which makes engaging innovative individuals vital to the success of novel products and services. So what drives consumer innovation?
Its primary driver is the excitement or arousal associated with trying a new product – the desire for this type of stimulation is what leads to an increased natural tendency to consume such products or services. Therefore, innovative consumers enjoy creative exploration, have a penchant for risk and are intrinsically curious. In the upscale dining industry an image of innovation can be a strong source of competitive advantage.
Maintaining an innovative restaurant image has a significant impact on consumer perceptions, which in turn can directly influence future behavioural intentions. In other words, providing a novel dining experience can help restaurants attract and retain consumers. An innovative image can also generate positive emotions and appraisals and has been linked to consumer satisfaction and loyalty. Thus positive behavioural intentions can lead to willingness to pay premium prices. Studies have shown that an innovative restaurant image has a positive impact on behavioural intention.
What luxury restaurants have to keep in mind is that innovative consumers have higher expectations and their perceptions differ from their less innovative counterparts. Managers in this sector may profit from investing in the promotions of an innovative or creative image. Once an upscale restaurant is perceived as innovative it will attract customers that value novelty. Consequently, the novelty value of the service provided will lead to optimal enjoyment and gratitude. When a restaurant is successful in creating novel and memorable experiences, the resulting positive emotions may help justify higher prices and create positive post purchase behaviour.
Whether you’re in the mood for innovative or traditional cuisine, we will make sure that every experience is personally suited to your taste.