An Evaluation of Private Club Members' Desires in Price, Food Quality and Level of Service

The impact of price, food quality and level of service on the purchase decisions by private club members was investigated to determine the effect of these factors and the trade-off by members among these variables. A conjoint analysis was used to examine the subjects' utilities for lunch alternatives that differed in the factors. The effect on a subjects' utilities was studied in relation to the importance of the dining situation (i.e., high or low importance depending on the reason for dining at the club). The results indicated that pricing, level of food quality and service are important to private club members and that their importance varies with the purchasing situation. For example, club members are more price sensitive in a less important dining situation, such as a typical lunch with other club members, but are less price conscious and more concerned about the quality of the food and service in more important situations, such as business meetings.