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The purpose of this study is to segment consumers according to their decision-making styles in the context of social commerce. Additionally, the differences among consumer segments in consumer innovativeness, perceived risk, satisfaction and demographic characteristics are evaluated.

A total of 384 respondents who shopped for restaurant deals through social commerce participated in this study through an online survey. Two-step cluster analyses were used to segment social commerce consumers into groups, using their decision-making styles.

The results showed three types of social commerce consumers of restaurant deals: innovative brand-preferring consumers; realistic consumers; and passive consumers. Innovative brand-preferring consumers chose specific brands and showed the most innovativeness, while realistic consumers and passive consumers were price-conscious and far more cautious in purchasing restaurant deals using social commerce. Passive consumers were, in addition, confused by overchoice. All three consumer groups perceived higher risks to privacy in purchases using social commerce. Passive consumers were especially aware of the risk, while the innovative brand-preferring consumers and the realistic consumers were less concerned about risk. Consumers were especially likely to perceive economic risk, performance risk, social risk, psychological risk, privacy risk and time risk. Innovative brand-preferring consumers were more likely to be innovative and showed a higher level of satisfaction, while passive consumers showed the lowest satisfaction and the least innovativeness.

This study provides additional insights on consumer decision-making styles in the context of social commerce in Korea.

Consumer decision-making styles can help restaurant managers to develop deals tailored to specific types of consumers, as well as create customized products and services.

This study is one of the very few attempts to investigate consumer decision-making styles in social commerce for restaurant deals, so it contributes to the literature on social commerce in the hospitality industry. This study shows that consumer decision-making styles are important in understanding the behavior of social commerce consumers.

The purpose of this study is to determine whether the economic environment affects the merger and acquisition (M&A) activities in the restaurant industry.

The M&A transactions in the restaurant industry between 1981 and 2013 (n = 1,415) were examined. Data were collected from the Securities Data Corporation (SDC) database. Using an autoregressive distributed lag approach, this study developed three error correction models to explore the short- and long-term relationships between restaurant M&A activities and four macro-economic factors.

This study found that there was a long-term equilibrium relationship between the M&A activities and the four economic factors and that economic outlook had a significantly positive impact in the long term, while the effect of cost of debt was significantly negative in both the short and long terms. The findings suggest that restaurant firms are more likely to adopt M&A strategy when they are optimistic about the future economy and can take on debt at a low cost.

The findings of this study are expected to help practitioners make informative M&A decisions in the restaurant industry taking into consideration the economic environment. They will also help investors effectively manage their portfolios by predicting and ascertaining the proper time to invest in the restaurant industry based on the changes of economic environment.

No known study has been identified that examined the relationship between macro-economic factors and M&A activities in the restaurant industry. The findings of the study are expected to fill the gap in the literature by demonstrating the economic environment and the M&A activities in the restaurant industry are in a long-term equilibrium achieved by self-correction of their short-term disequilibrium.

The learning outcomes are as follows: to understand the different options available for funding; to illustrate the growth of the food services industry in India; and to understand a business model canvas.

Baromeeter (BOM), was a Delhi-based startup founded in the year 2016 by Rishabh Vyas, a 26-year-old MBA graduate. Currently, BOM has operations in Delhi-NCR with 50,000 monthly website visitors and 200-plus partner restaurants and cafes in Delhi-NCR with brands such as Imperfecto, Junkyard Café, Garam Dharam, Out of the Box, Boombox, Jungle Jamboree and many more. BOM also receives over 1,000 deal bookings and 200 plus party bookings monthly. Going forward, Rishabh has plans to expand to other cities such as Mumbai, Hyderabad, Pune and Bangalore. However, there are certain challenges. So far, the startup has raised funds from friends and families. He was confident that he had a compelling product. However, he knew he had to look for fresh investments to scale up. The existing funds may sustain the operations of the company for another six months. Rishabh was considering a number of options. However, whom to approach? Would banks be interested in lending money? How about participating in angel investor’s meet?

The case is suitable for a course in graduate and an undergraduate course in entrepreneurship. The case can be used to understand the business model canvas and to understand the funding options available for startups.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

The purpose of this paper is to investigate social shopping deals and their impacts on review metrics at an online review site, Yelp and to compare the review metrics of the restaurant businesses and the health and wellness businesses to understand how social shopping deals affects them.

This study adopts a multiple regression model to analyse the effect of seven independent variables on the dependent variable, the growth rate of reviews which is a proxy of sales growth. This sample consisted of the review data of 134 merchants which offered social shopping deals at Groupon in 2011. The online review data of these merchants were collected in 2015 to analyse the relationship between the deals and the grow rate of the reviews.

For the restaurant businesses, there is a positive persuasive effect of Groupon customers’ review score on the growth rate of the reviews and consequently on the sale growth. For the health and wellness businesses, there are a positive persuasive effect of the regular customers’ review score on the growth rate of the reviews and a negative awareness effect of the number of Groupon reviews on the growth rate of the reviews. The review data also show that the Groupon customers of the health and wellness businesses are three times more likely to post their reviews than those of the restaurant businesses.

First, while the author limited the study to the seven independent variables, additional variables may exist. These additional variables may also influence the number of reviews, too. Future research needs to identify such variables to build a comprehensive model. Second, future research needs to address other types of businesses, such as education and entertainment, and compare differences between them. Third, while the study focussed on the review score and the number of reviews, a more in-depth analysis of the comments using sentiment analysis and social network analysis may shed additional insights on their review activities.

Despite the potential significance of customers’ reviews about social shopping deals, the critical mass of empirical studies still lacks in this area. The study contributes to the literature of this field by investigating the effect of social shopping deals on the customers’ online reviews. This study provides practical guidance for the improvement of online reviews about social shopping deals.

I AM HUNGRY (IAH), a free mobile App for the iPhone and Facebook, was introduced in early 2010 by a small Web 2.0 startup business. This location based App provided users with a list of restaurants and food specials within a one-mile radius of their current location. It offered significant benefits to both restaurants and end users, yet IAH struggled to generate a sustained revenue stream. The case is set in late 2010 when co-founders Markarian and Kravets evaluated IAH performance and considered their options. The two segments, Mom and Pop restaurants and college students, presented different challenges. In the restaurant segment, IAH faced a dilemma not uncommon to Web startups. Should they push for growth (number of restaurants) at the expense of revenue (offering the App free) or should they charge for the App at the expense of growth? Focusing on the end user, the case discusses the outcomes of an IAH promotion at Collegefest, a heavily attended back-to-school event. Data from Google Analytics and Facebook Insights revealed that the event was a success in terms of user traffic. But, was that enough? The case asks students to deliberate on the appropriate performance metrics for evaluating next steps.

The case tracks Dineout's evolution into a full-scale tech solution provider for restaurants. In 2020, the COVID-19 pandemic struck the world. Several countries, including India, implemented complete lockdowns to control the spread of the virus. Stringent measures to ensure social distancing, night curfews and restrictions on social gatherings continued, which were a severe blow to the restaurant industry. The restaurants' revenue streams dried up as the diners avoided dining out and preferred food deliveries, which was against Dineout's core business model. The case ends with the questions on how Dineout should wade through the pandemic when its entire business model was being challenged.

This paper aims to investigate consumer responses to brand rumors and corporate rumor response strategies in the restaurant industry.

A scenario-based experimental design was used to examine changes in consumers’ brand evaluation depending on level of brand equity and corporate choice of response strategy.

It was found that the impact of brand rumors on consumer responses is more negative when the restaurant’s brand equity is low compared to when it is high. It was also found that a company's use of active response strategies is more effective in combating brand rumor than a strategy of simple denial.

The findings have significant implications for both academics and practitioners in terms of developing effective response strategies for counteracting brand rumors.

Given the frequency of brand rumors in the restaurant industry and their serious negative impacts, this study extends the existing brand crisis communication literature by demonstrating how consumers respond to a rumor and the effectiveness of different corporate rumor response strategies.

Few studies to date have explored factors contributing to the dining experience from a visitor’s perspective. The purpose of this study is to investigate whether different restaurant attributes are critical in evaluating the restaurant experience in online reviews for visitors (non-local) and local guests.

In all, 100,831 online restaurant reviews retrieved from TripAdvisor are analyzed by using domain-specific aspect-based sentiment detection. The influence of different restaurant features on the overall evaluation of visitors and locals is determined and the most critical factors are identified by the frequency of their online discussion.

There are significant differences between locals and visitors regarding the impact of busyness, payment options, atmosphere and location on the overall star rating. Furthermore, the valence of the factors drinks, facilities, food, busyness and menu found in the reviews also differs significantly between the two types of guests.

The findings of this study help restaurant managers to better understand the different customer needs. Based on the results, they can better decide which restaurant aspects should receive the most attention to ensure that customers are satisfied.

Research on online reviews has largely neglected the role of different visitation motives. This study assumes that the reviews of local and non-local restaurant visitors are based on different factors and separates them to gain a more fine-grained and realistic picture of the relevant factors for each particular group.

Online food delivery (OFD) has witnessed momentous consumer adoption in the past few years, and COVID-19, if anything, is only accelerating its growth. This paper captures numerous intricate issues arising from the complex relationship among the stakeholders because of the enhanced scale of the OFD business. The purpose of this paper is to highlight publication trends in OFD and identify potential future research themes.

The authors conducted a tri-method study – systematic literature review, bibliometric and thematic content analysis – of 43 articles on OFD published in 24 journals from 2015 to 2021 (March). The authors used VOSviewer to perform citation analysis.

Systematic literature review of the existing OFD research resulted in six potential research themes. Further, thematic content analysis synthesized and categorized the literature into four knowledge clusters, namely, (i) digital mediation in OFD, (ii) dynamic OFD operations, (iii) OFD adoption by consumers and (iv) risk and trust issues in OFD. The authors also present the emerging trends in terms of the most influential articles, authors and journals.

This paper captures the different facets of interactions among various OFD stakeholders and highlights the intricate issues and challenges that require immediate attention from researchers and practitioners.

This is one of the few studies to synthesize OFD literature that sheds light on unexplored aspects of complex relationships among OFD stakeholders through four clusters and six research themes through a conceptual framework.

Winning customer loyalty and repeat business and eliminating or reducing their reliance on coupons and other forms of price promotion is the goal of many service businesses today. The effectiveness of using advertising specialties (imprinted items given away for free) and price promotions was directly compared by way of two controlled field experiments involving customers of a Chinese food delivery service and a drycleaner in a major US metropolitan area. The studies used a controlled field experiment with a behavioral measure. The experiments offered support, in the business‐to‐business and consumer settings, that ad specialties can serve as inducements for a larger dollar volume of repeat business than the use of no promotion, and in some cases more than was generated by price promotion. Results suggest that goodwill engendered among customers by the ad. specialty “gifts”, coupled with the repeated brand exposure opportunities afforded by imprinted items, can exert a considerable impact on purchase behavior.