You don’t have to tip the human waiters anymore, but … Unveiling factors that influence consumers’ willingness to pay a price premium for robotic restaurants

Abstract

Purpose This study aims to simultaneously examine the influence of demographic, psychographic and situational factors on consumers’ willingness to pay a price premium (WTPp) for robotic restaurants and to profile market segments based on consumers’ WTPp levels (positive, neutral and negative). Design/methodology/approach Using an online survey, the data were gathered from a sample of 897 Thai consumers who had dined at a robotic restaurant in the past 12 months. Structural equation modeling, chi-square tests and the one-way analysis of variance were used for data analysis. Findings Demographic (gender, age, income and marital status), psychographic (perceived advantages/disadvantages, personal innovativeness and personality traits) and situational factors (perceived health risk and self-protection behavior) significantly influence consumers’ WTPp for robotic restaurants. The positive price premium group differs significantly from the neutral and negative price premium groups in terms of demographic, psychographic and situational profiles. Practical implications The findings of this study help restaurateurs target the correct customers and set up appropriate price fences to safeguard profits and maximize return on investment. Originality/value This study contributes to the literature on technology-based services and hospitality by heeding the calls made by Ivanov and Webster (2021) and providing much-needed empirical evidence of possible changes in consumers’ WTPp for robot-delivered services in restaurants due to COVID-19.