Price, Promotions, and Service Quality Drive Jakarta Diners’ Restaurant Choices, Study Finds


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FORMOSA NEWS - jakarta - A 2026 study by Diah Ernawati of the Faculty of Economics and Business, Perbanas Institute Jakarta shows that price, promotional offers, and service quality strongly shape customer decisions at Tucanos Brazilian Grill in Senayan City Mall, South Jakarta. Published in the Formosa Journal of Sustainable Research, the research explains why visitor numbers dropped and which business strategies matter most for recovery. The findings are important for restaurant operators, mall-based food businesses, and hospitality managers competing in Indonesia’s crowded urban dining market. 

Why This Research Matters

Jakarta’s restaurant industry is expanding rapidly, especially in premium shopping centers where international dining concepts compete for middle- and upper-income consumers. Tucanos Brazilian Grill, known for its all-you-can-eat Brazilian churrasco experience, operates in a highly competitive environment.

Internal restaurant data showed a 25% decline in customer visits in early 2025 compared with the same period in 2024. Monthly visits fell from around 3,000 customers to 2,250. That drop raised concerns about revenue stability and long-term competitiveness. Understanding what influences dining decisions became critical for business strategy. 

How the Study Was Conducted

Diah Ernawati and the research team used a quantitative survey approach. Questionnaires were distributed to 100 customers who had previously dined at Tucanos Brazilian Grill in South Jakarta.

Key features of the research design:

  1. Sampling method: Probability sampling with a simple random technique
  2. Data source: Direct customer surveys
  3. Analysis tool: Multiple linear regression using SPSS
  4. Variables tested:
  • Price perception
  • Promotional activities
  • Service quality
  • Consumer decision to dine

Before analysis, the survey instruments were tested for validity and reliability, ensuring the responses accurately reflected customer perceptions. 

Key Findings

All three factors — price, promotion, and service quality — showed a positive and statistically significant effect on customer decisions.

1. Price Matters More Than Just Cost

Customers weigh whether the dining experience matches the price they pay. Even in premium restaurants, perceived value determines whether guests feel satisfied.

  1. Statistical significance level: 0.013
  2. Customers expect prices to align with food quality, service, and ambiance
  3. High prices can work if value is clearly delivered 

2. Promotions Strongly Influence Visits

Discounts, special packages, bank or e-wallet partnerships, and social media campaigns encourage customers to try or revisit the restaurant.

  • Statistical significance level: 0.008
  • Digital promotions increase brand visibility
  • Loyalty programs help build repeat visits 

3. Service Quality Has the Strongest Impact

Friendly staff, fast service, and professional interaction play the biggest role in shaping dining decisions.

  • Statistical significance level: 0.001
  • Service quality had the largest influence coefficient among the three factors
  • Positive service experiences encourage return visits and word-of-mouth promotion 

How Much Do These Factors Explain?

The combined influence of price, promotion, and service quality explains 62.5% of customer decision behavior in this study. That means more than half of the reason customers choose to dine at Tucanos Brazilian Grill can be linked directly to these three elements. 

Real-World Implications

The findings offer clear direction for restaurant operators in Jakarta and similar urban markets.

For Restaurant Managers

  • Adjust pricing strategies to match perceived value, not just cost
  • Offer bundled meal packages and time-limited promotions
  • Invest in consistent staff training for hospitality and communication

For Marketing Teams

  • Prioritize social media campaigns on Instagram, TikTok, and WhatsApp broadcasts
  • Promote limited-time offers to create urgency
  • Build loyalty programs that reward repeat customers

For Hospitality Businesses

  • Service quality is a long-term investment, not a short-term cost
  • Customer experience can outweigh menu variety in decision-making

For Policymakers and Educators

  • Hospitality education programs should emphasize service excellence and digital marketing skills
  • Urban tourism strategies should support service quality standards in dining destinations

Researcher Insight

Diah Ernawati of Perbanas Institute Jakarta emphasizes that restaurant competitiveness now depends on delivering clear value beyond food quality alone. She notes that pricing strategies, promotional communication, and human interaction at the service level must work together to influence customer choices in premium dining environments. 

About the Researcher

Diah Ernawati, M.M. is a lecturer and researcher at the Faculty of Economics and Business, Perbanas Institute Jakarta. Her expertise focuses on consumer behavior, marketing strategy, and service management, particularly in the hospitality and retail sectors.

Source

“The Role of Price, Promotion, and Service Quality in Improving Consumer Decisions”
Formosa Journal of Sustainable Research, 2026

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