Dimensions of Customer Perceived Value in Restaurants: An Exploratory Study

Eating habits of Indians residing in both metros and non-metro cities have undergone a radical change as they no longer wait for a special occasion to eat out. They eat out simply because they wish to experiment, spend free time or just for the love of food. Besides being a place for eating, a restaurant is also a place where people go to socialize and unwind. Customers have increasingly become more sensitive to product and service quality. According to India Food Service Report published in 2016, the food market in 2016 was at 3,09,110 cr and the projection for 2021 is 4,98,138 cr (NRAI, 2016). It has been observed that despite experimenting with different cuisines and restaurants, there are a select few which are repeatedly patronized by the customers. The reason could be the value perceived in terms of food quality, service, ambience or value for money. This paper attempts to study and categorize the factors which positively affect customers’ perceived value for the restaurants visited most frequently by them.