This research was conducted in order to examine the effect of comparative price on consumers’ reactions to service failure in the loyalty program. The current study finds that under condition of lower level of persuasion knowledge, compared to single retail price, comparative price would mitigate consumers’ negative emotion in the context of service failure, which in turn improves customers’ tolerance. The authors test this prediction in two experiments. Experiment 1 aimed to provide an initial exploration of hypothesis by employing a between-subjects design. This experiment recruited undergraduate students at Suzhou University to complete an online survey. After reading the scenario of service failure, participants were asked to answer a series of questions about their intension of spreading negative word of mouth (NWOM). A one-way ANOVA on intention of spreading NWOM suggested that the NWOM activity was significantly lower in the group of comparative prices than in the group of single retail price. In experiment 2, the authors measured angry and intension to complain when participants finished reading the scenario of service failure. Furthermore, one week later the authors measured price tactic persuasion knowledge of participants. The bootstrap method (number of bootstrap samples = 5000, level of confidence = .95) was used. The results showed that customers’ angry level mediated the effect of comparative price on intension of complaint. The authors further conducted a mediated moderation analysis with the participants in the high- and low-persuasive-knowledge conditions. The results indicated the indirect effect of the comparative price on intention to complain was mediated by customers’ angry when they have low persuasive knowledge, whereas the mediation effect of customer’s angry level was no longer significant in the higher persuasive-knowledge condition. To summarize, this research suggested that comparative price would exert a marked impact on the tolerance of members of loyalty program in the context of service failure. The present paper adds to the existing comparative price literatures by confirming its impact on consumers’ judgment in the context of service failure even if they are all members of loyalty program and informed with information of discounted size in advance. Given the special meaning of NWOM and complaint, current paper provides implications for marketing practices.

The purpose of this study was to investigate the effects of perceived price and servicescape on employee service quality, food and beverage quality, and customer value in Daegu Korean restaurants and to suggest methods for them to become the food mecca of Korea and the world. The samples for this study were customers of nine Korean restaurants in Daegu. A total of 368 questionnaires were analyzed with factor analysis, a reliability test, and a covariance structural analysis. The results showed that perceived price was positively related to employee service quality and food and beverage quality and that servicescape was positively related to employee service quality and food and beverage quality. However perceived price, servicescape, employee service quality, and food and beverage quality were not related to customer value. The reasons were that these factors did not influence perceived customer value in Daegu Korean restaurants. The Daegu municipal office should require these restaurants to develop distinguished employee service and food and beverage quality and conduct consistent marketing to Koreans and westerners, so that these restaurants can become the food mecca of Korea and the world.

The objective of this paper is to evaluate the equilibrium price between PSTN and VoIP telephony services in the case of non-linear utility function. Currently there are two types of wired phone services we are known PSTN (Public Switched Telephone Networ

The objective of this paper is to evaluate the equilibrium price between PSTN and VoIP telephony services in the case of non-linear utility function. Currently there are two types of wired phone service we are known that PSTN (Public Switched Telephone Network) and VoIP (Voice over Internet Protocol). The PSTN telephony which provide high quality service and VoIP which provide relatively low quality service forms a vertically differentiated oligopoly. Therefore, the evaluation of the equilibrium price between PSTN and VoIP services is very important to wired phone service providers. The equilibrium price depends on the state of the service cost function has been proved different value. This paper was evaluated each equilibrium price for the state of the linear cost function and non-linear cost function. Subsequently, analyzed the demand of both services and the equilibrium profit which can maximize the profit of both service providers.

The purpose of this study was to investigate how comparative menu price, human service, amenity, and menu quality affected menu value, and how menu value influenced revisit intention. The model was tested in a family restaurant setting using a sample of customers visiting and enjoying menu in Daegu metropolitan city. Empirical results confirmed that not only do human service, amenity and menu quality increase menu value but that comparative menu price reduces menu value. Menu value was also found to be a significant antecedent of revisit intention. The results obtained have major implications for family restaurant marketers as well as for future research. First, family restaurant marketers should pay attention to menu pricing, as menu price decreased menu value. Second, family restaurant marketers should try to increase menu value through training of human service. Third, family restaurant marketers should try to add menu value by way of recruiting high-skilled cook. Fourth, family restaurant marketers should make efforts to attract customers through interior design.