Analyzing the Impact of Restaurant Advertisement on Consumer Behavior

This argumentative essay delves into the significant influence of restaurant advertisements on consumer behavior, particularly within the dynamic hospitality sector. It examines how globalization and competition necessitate adaptive marketing strategies to align with evolving consumer trends. The essay reviews the core concepts of consumer behavior, emphasizing the impact of factors like personality, demographics, and social influences on purchasing decisions. It highlights the increasing importance of digital marketing, including social media and online ordering platforms, as restaurants strive to meet consumer demands. Through a literature review, the essay analyzes how advertising impacts consumer choices, brand perceptions, and buying behaviors. The essay underscores the need for restaurants to understand and adapt to these trends to maintain competitiveness in the industry, supported by evidence from academic sources. It discusses the shift from traditional to digital advertising methods and their effectiveness in shaping consumer preferences and driving sales within the competitive hospitality sector, using examples from New Zealand, India, and the United States.

Running head: IMPACTS OF RESTAURANT ADVERTISEMENT ON CONSUMER
BEHAVIOR TRENDS
IMPACTS OF RESTAURANT ADVERTISEMENT ON CONSUMER BEHAVIOR
TRENDS
Name of the Student
Name of the University
Author Note

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IMPACTS OF RESTAURANT ADVERTISEMENT ON CONSUMER BEHAVIOR
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Introduction
Kitsios, F., & Grigoroudis, E. (2016). Comparing hospitality innovation strategies: New
service development using multicriteria analysis. In Proceedings of the 5th
International Symposium and 27th National Conference on Operation Research (pp.
127-132).
The business environment across the globe is vastly changing on everyday basis.
Globalization as well as the competition possess direct impact to the business operations in
each and every sector of the business, and hospitality sector is one such business sector which
is changing on daily basis, according to the consumer behaviors apart from these competition
and globalization. This argumentative essay will focus on the evaluation of the different
behavioral trends of the consumers around the world on the marketing strategies followed by
the hotels in current scenario. The impact of those consumer behavioral trends will also be
discussed, or argued with points from both for and against the motion. it can be said without
any arguments that the consumers are the base for any kind of business activities by any
organizations from any type of business sector or industry. People around the world are
travelling from one place to another, either for the business purposes or for personal
purposes. The hospitality industry is one of the fastest growing business sectors in the world
and it is one of those sectors which more or less has requirement by the people globally
irrespective of the rise and fall of the prices of the products, commodities or the
accommodation related facilities or fluctuations in the income of the people. It has been
found in the studies and researches that hotels and restaurants are the two major contributors
in the hospitality sector around the world. It has been researched and found that the sales
have increased in the hospitality industry throughout the region of New Zealand by 3.6% till
March, 2018, which actually exceeded the amount of $11 billion. The takeaway food division

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of the various restaurants and hotels has recorded the highest growth of 5.7%. The number of
businesses in the hospitality sector also increased by 534. A total number of 130,000 are
employed in different posts and departments in the hospitality sector around New Zealand,
thus providing a way to income and run their livelihood. One of the main reasons of the
growth of the hospitality industry is that the people are eating more than the pat era, which
comes to the conclusion that hunger is paving the way to m any hospitality businesses not
only in New Zealand, but also around the world (Stephen, 2016).
Literature Review
Consumer Behavior
The term consumer behavior (Cantallops & Salvi, 2014) can be termed as the study
which involves the groups, companies or just the individuals, about all the activities
connected or associated with the purchase of any items, their usage and removal of the used
goods and services. These includes the emotion, behavioral and mental responses of those
consumers that either lead or follow these activities. From further studies it can be said that
consumer behavior is an inter-disciplinary social science that mixes different elements like
sociology, psychology, anthropology, social anthropology, economics, ethnography and
marketing. It helps to inspect or scrutinize the ways through which the attitudes, emotions
and preferences have an impact on the buying behavior of the consumers around the world.
The characteristics of individual consumers like personality, demographics, lifestyles and
behavioural variables like loyalty, usage rates, brand backing, usage occasion and eagerness
to supply referrals, in order to attempt to understand the wants and consumption of the
consumers (Zeugner-Roth, Žabkar & Diamantopoulos, 2015). The study of consumer
behaviour also examines the influences on the consumer, from various factors like family,
friends, sports, reference groups, and society in general. The study of consumer behaviour

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also involves all the concerns related to purchasing behaviour, from the activities of pre-
purchase to post-purchase, apart from evaluation and disposal activities. It takes all the
persons involved in the activities, whether directly or indirectly. It has been found in the
researches that it is hard to predict the behaviour of the consumers, mainly in the hospitality
sector (Vinerean et al, 2013).
As there persists a lot of competition in the market places of hospitality sector,
consumers, on whom the earning of the revenues depends from the view point of the
restaurant owners, it is very difficult to predict the trends of the behaviours of the consumers.
If the example of New Zealand is taken, it can be seen that majority of the sales from the
hospitality sector came from the restaurants along with the cafes, which amounted to $5,670
million till March 2018. It has also found from the researches and studies that almost 50 % of
the sales of the hospitality sector as well as 50% employment in this sector comes from the
restaurant and cafes. Sales from different restaurants along with the cafes recorded 2.5% of
sales growth in the year 2018and the amount increased by $138 million. All these has
happened as the persons related to these sector was able to judge and evaluate the consumer
behaviour trends correctly. The owners of the restaurants need to follow and read the
changing trends of the consumer behaviours, so that they can strategize their plans
accordingly and decorate the ambience of the restaurants and alter their menus for the
ultimate consumers, on whom the amount of the revenue earning will depend. There are more
than 17,000 hospitality outlets across the country of New Zealand, which offers an
outstanding dining choices available for the consumers. The tastes and preferences of the
people around the world has changed drastically and the restaurant owners has to change the
mode of advertisements according to the behaviours of the consumers, so that sustainability
can be maintained in the highly competitive hospitality sector (Goh, Heng & Lin, 2013).

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Restaurants Advertisements
Restaurants are one of the major part of the hospitality sector around the world. The
ever-evolving of the appetite of the consumers are resulting to make changes or alterations in
the restaurants advertising on the hospitality sector. The owners of the restaurants are
utilising the advantages of advertisements to the fullest, whether it is from the traditional
background or the modern era advertisements procedures. Digitalization along with the vast
usage of social media has helped the restaurant owners a lot to provide advertisements in
their social media accounts or the official pages of the restaurants. The increased competition
in the hospitality industry is constantly changing the landscape as well as the marketing of the
restaurants. As the people are getting more tech-savvy around the world, the restaurant chains
are trying their best to understand the consumer behavioural trends in respect to get an entry
in the e-commerce section. People are buying lots of things from online portals, so it can be
assumed that the same will happen in case of selection of foods to reduce their hunger. And
in the studies, it has been found that the rest6aurant owners are getting tied-up with the online
portals, through where the people can order different kinds of food by sitting in their offices
or in their drawing rooms (Deshwal, 2016). Many companies have launched mobile
applications for this reasons, and are getting tied-up with the restaurant chains so that people
can search the type of food wanted by them through those mobile applications. This will be
actually beneficial for all the three types of people involved – the restaurant owners, the
business entities who have those applications and lastly, the consumers. But, all these did not
happen in a single stance. It took years to structure all these and settle for a final call which
resulted in realization of the present consumer behaviour trends (Chen, Yeh & Huan, 2014).
Digital marketing has emerged as the top in case of advertising of the restaurants,
where it has been found in the researches that the digital marketing will grow at a pace of
11% compound annual growth rate by the end of 2021. There are various and far-reaching

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ways through which the restaurants or the chain of restaurants are utilizing the positive
impacts of digital marketing globally. For example, there is plenty of opportunities of digital
marketing in two of the most populated nations of the world, India and China. The fast-food
industry of India doubled its size between the years 2013 and 2016 (Jang, Chung & Kim,
2015). This became possible as the organizations related with the digital marketing were able
to capture as well as follow the trends in the behaviours of the consumers. As it was stated
earlier that the number of tech-savvy people are increasing day-by-day, so the organizations
are tapping those people, and are utilizing their digital mindedness in ordering of food
through different kinds of mobile application s of various companies, who are tied-up with
the restaurants in and around India. In the United States of America, KFC is also very much
dependable on digital marketing as well, mainly through social media. The online promotions
also help to read the trends in the consumer behaviours and plan accordingly so that new
customer bases can be formed as well as the old customers can be retained (Schivinski &
Dąbrowski, 2013).
Influences of Advertisement
It has been found in the researches that advertising a way or form of communication
which motivates the consumers to make the purchase decisions about a product or the service
available in the restaurants along with transfer the information to other people. It is
considered as one of the most essential as well as vital element for the financial growth of the
organizations involved in the hospitality sector, or precisely, in the restaurants present
through the world. The business entities are constantly adapting themselves to the business
demands in response to the different consumer behaviours in order to create new or fresh
advertisements, through which the people would be attracted to a particular chain of
restaurant. The use of advertisements in the hospitality sector has immensely increased in the
20th century as industrialization and modernization has impacted a lot in the consumer

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behaviour trends on selection of the restaurants and consuming the food prepared by them.
The form of advertisements has changed from television to computers, radio to internet or
newspapers, magazines or billboards to online promotion through the websites of the
restaurants or the official social media pages of the restaurants. Traditional form of
advertisement has transformed into digital advertising, and the reach is more to the
consumers whose behaviours are getting moulded by this form of advertising globally. The
main focus of the advertisements is to impact the buying behaviours of the consumers.
Though, it has been researched and found that this impact about choosing the brand is
strengthened or altered frequently through the memories of the people. Memories related to
those brands of restaurants are composed mainly by the associations that are related to the
brand names of the restaurants. In the minds of the consumers. These brand names influences
consideration, evaluation and finally the purchasing motive into the minds of the consumers
on a constant basis. The researches and studies has revealed that the buying behaviour of the
consumers are always given importance in the literature study of the impact of advertising
and its effectiveness in the hospitality sector. It has been seen in the researches that the
buying behaviour of the consumers mainly depends on the liking or disliking of consumer
towards the form or way of advertisement used by a particular restaurant. While a good form
of advertisement will most likely influence or motivate the consumers to buy the food from a
particular restaurant while a poor quality advertisement would do the opposite. Positive
relationships have been found in the studies involving the effectiveness of advertisement and
the impact of the advertisement in the buying behaviour of the consumers (Duarte Alonso et
al, 2013).
Nowadays, the consumers constantly look for latest experiences while visiting a
restaurant. The image of a restaurant is perceived as functional attributes which are symbolic
for the restaurant. All-important characteristics, observable and tangible from the symbolic

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qualities are created by abstract ideas and intangibles such as the atmosphere, location, types
of customers etc (Ha & Jang, 2013). The dimensions of designs include components that are
exclusively visual like the interior designs, the layout space, furniture, waiting rooms, colours
and used materials. The factors of the restaurant atmosphere or surroundings play a vital role
for this concept. These factors emotionally and cognitively wake up a customer and thereby
help the manager of the restaurant to fulfil their objectives. Ambience factors are equally
important which include the music and so are the social or environmental factors like the
crowd, customers or sales person. Thus we can argue that a restaurant atmosphere has an
impact which varies or depends on the customer behaviour. Researches show that this impact
of the restaurant atmosphere is positive in most of the cases of consumer behaviour. A
customer is highly affected by the restaurant design. Crowd density can create adverse effects
in cases of lack of space in the restaurant, bustle and overcrowding. Social density can also
lead to difficulties such as public contact and other problems. In today’s tech-oriented
generation, customers first check the location and atmosphere of a particular restaurant they
would like to visit. The choices on restaurant atmosphere also depend on the age, food
preference or mood of the customers. Youngsters would prefer cafeterias while aged people
would like cosy dine out places. With the help of online applications, consumers can easily
find out their preferable restaurants, their atmospheres, food quality and others and visit
accordingly (Wright et al, 2016). On the other hand, the emerging fast food restaurant chains
or Quick Service Restaurants or QSRs show that there is a rapid increase in demand for fast
foods. In many countries, the leading fast food franchises have started dominating for
instance, the American brands KFC, McDonald’s, Dominos, Subway and others (Karam &
Saydam, 2015). Fast foods are readily available and can be served to people directly. The
restaurants serving such foods are also very popular among the younger generations. Keeping
in view of the customer behaviour and demands, the fast foods are ideal for busy urban

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people which serve as a quick meal. Subsequently, another effective and essential factor that
impacts consumer behaviour is advertising. Customers must be carefully targeted with an
advertising message to make it more effective. Similar methods of marketing are applied by
competitive brands for reaching the customers. Therefore, unique, unconventional and
creative ideas of advertising must be used to hold a place in the market. Customer choices
vary significantly and rapidly due to their changes in demography, communication and
lifestyle. For dealing with a wide range of consumer demands it is become essential to
interact with the customers both online and offline for the promotion of restaurants, foods,
services, brands etc. Interactivity is therefore an important medium to grow opportunities. It
has the ability to increase the ads and offers of a restaurant as well as affect a person’s sense
of involvement. Marketers must be well aware of the behaviour of the consumers while
advertisement designing as it creates an image of the product in the customers’ minds.
Entertainment is a vital tool to get the attention of the customers. It readily enhances the
effectiveness of advertising. It also brings customer satisfaction. Although humour is used in
ads, it can be risky at times as it may offend customers (Pechmann & Catlin, 2016).
A number of studies has proved the value of digital marketing in the advertisement
used by the restaurants, in order to attract he consumers to come and avail their food. Though
it has been found in the researches that it differs from band to brand. For example, the online
advertising campaign of the “Chocolate Charmer” of Cadbury provided a four times higher
return on investment than that of the advertisement used in the television campaign. The
digital would have actually benefitted the advertisement through television, radio, print and
outdoor advertisement, as well as would have increased the effectiveness of these media
channels. The spending on the restaurant advertising has changed a lot, and it has been found
from the researches that the total spending on the advertisement in between 2005 and 2014
has grown up to 26%, whereas the online advertisement has grown 274%, which is

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remarkable. This has only been possible due to the changes in the consumer behavior
globally, where the number of tech-savvy people has increased. Digital marketing has
emerged as the top in case of advertising of the restaurants due to this factor (Kovács, Carroll
& Lehman, 2013).
Recommendations
Revenue earning can be the major aim of the restaurants, but they need to study and
understand the behaviors of the consumers so that they can plan and work accordingly and in
an effective and efficient way. If the consumers feel satisfied with the products and services
provided to them, it would be easy for that restaurant to maintain a good percent of revenue
earning. But, if the consumer does not feel satisfied, then it would be difficult for that
restaurant to sustain in the market place, as word of mouth publicity plays a major and vital
factor on the restaurant marketing around the world. Tourism industry also plays a vital part
in the hospitality industry, as travelers or tourists need to take food from various restaurants
at the places where they are travelling. The behavior or the buying power of those people
need to be carefully assessed and outcomes need to be shaped properly so that advertisement
can be done in a proper way so that more number of tourists can visit those restaurants and
help to earn profit and sustain in this highly competitive market of hospitality sector (Hanks,
Line & Mattila, 2016).
Conclusion
From the above study of literature review on the impact of restaurant advertisement
on consumer behavior trends, it can be concluded that advertisement plays one of the
essential role in the context of drawing people to a particular chain of restaurant or to a single
restaurant, depending on the behaviors of the people who are visiting there. The owners of
the restaurants need to match the pace of the ever-changing behaviors of the consumers, so

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that they can make the consumers happy by providing them the type of food or drinks needed
by the consumers, and the restaurants can earn profit and sustain in the competitive markets
of hospitality sector.

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