Exploring Customers’ Luxury Consumption in Restaurants: A Combined Method of Topic Modeling and Three-Factor Theory

Abstract

This study explores customers’ perceptions and underlying factors related to luxury consumption in restaurants. Although many studies have explored customers’ consumption of luxury goods, very few of these studies involved luxury hospitality services. Furthermore, hospitality literature has rarely discussed the emerging identification of inconspicuous consumption in luxury. By applying topic modeling to analyze online customer reviews, the current study identifies the essential elements of visiting luxury restaurants. Moreover, it elicits the asymmetric role of the identified factors in accelerating overall customer satisfaction or dissatisfaction through impact-asymmetry analysis, which adopts the three-factor theory. Findings suggest that many inconspicuous factors exist in luxury consumption and that the mechanisms that affect satisfaction differ among a satisfier, a dissatisfier, and a hybrid. The acknowledgment of the asymmetric effects will help practitioners in luxury restaurants enhance their understandings of customer perceptions and efficiently improve service management and marketing.

Keywords

luxury consumption luxury restaurant three-factor theory machine learning topic modeling impact-asymmetry analysis

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