This study investigated the joint effects of component pricing and bundle pricing on consumers' choice processes. Specifically, consumer preferences were examined for various menu options in the context of fixed menu pricing. Findings suggest that consumers attach larger utilities to highly priced appetizers and entrees. Consistent with prior research, this study shows that consumers are more likely to choose a bundle that provides the highest value (i.e., the highest savings between the bundle price and the sum of its individual components). Managerial implications of these findings will be briefly discussed.
All Science Journal Classification (ASJC) codes
- Food Science