Consumer Attitude Toward Adding Quick-Service Foods to In-Flight Meals
This chapter proposes a conceptual model for quantifying the changes in the market shares of all the restaurants in a market, when it is known that a new restaurant will be opening up in the near future. It demonstrates how the model can be used in numerical analyses to evaluate awareness-building strategies in industries such as the restaurant industry. A popular stochastic model known as the Markov Model is used to analyze the dynamics of market share when consumers switch brand. Different stochastic choice models can be used to predict the brand choices of consumers. The methodology suggested could be applied by the preexisting restaurants months before even the new restaurant is built as long as the main characteristics are known, i.e., type of cuisine, target Per Person Average (PPA), and the amenities offered. Brand-switching data provide a particularly compelling and intuitive behavioral measure of competition, as one has a direct measure of movement among the restaurants.