Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
2007 Annual International CHRIE Conference & Exposition 
344
Even though we were able to conduct a PSM study successfully, there are some limitations that need to be 
noted. Notwithstanding that the PSM model can be applied universally, the study results cannot be generalized for 
the following reasons: first, the study was a Hong Kong-based study, and guests’ perceptions of price and value are 
‘culture-based’; second, the study uses a convenience sample and applied a simple random design.
Finally, the study failed to test price sensitivity levels at different customer loyalty levels. Therefore, the 
following additional research is suggested: first, price sensitivity should be tested at different customer loyalty 
levels, and price sensitivity should be investigated according to demographic variables; second, it would be useful to 
conduct a study for an entire restaurant (all meal periods) and to perform studies in similar restaurants to compare 
price sensitivity levels between similar target markets. In addition, PSM should be applied in other hospitality 
settings, such as spas, hotels, and conventions. Finally, established price ranges and Activity-Based Cost levels for 
individual menu items should be combined in order to establish an optimum price.
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