Even though the word “value” is so often colloquially used to indicate monetary value, the value equation extends beyond price. If value were based solely on low prices, top box (very good) consumer ratings for limited-service restaurants (LSRs) would be immensely higher than full-service restaurants (FSRs). For those reasons, Technomic’s Consumer Brand Metrics (CBM) program defines value in four ways:
- Prices relative to other, similar restaurants
- Ability to provide value through high-quality menu items
- Ability to provide value through quick, high-quality service
- Ability to provide value through atmosphere/ambiance
These four attributes help us understand what really makes up value. When combining consumer ratings of these value attributes, we are able to have a holistic view of the value composite score.
A brand’s ability to provide value though menu items, service and atmosphere quantifies consumers’ emotional connection with a brand. The latest Consumer Brand Metrics White Paper, A Race to the Top for Value: Connecting the dots on the ‘emotional connection’, uncovers how these attributes affect the value composite score.
Full-service concepts tend to earn higher ratings than LSRs for Ability to provide value through atmosphere/ambiance, whereas LSRs outpace FSRs for Ability to provide value through quick, high-quality service. Even though the value composite scores for LSRs and FSRs are roughly the same, different attributes are driving these ratings.
Papa Murphy’s earns the top spot among all restaurants for providing very good value (composite score). However, consumers are more emotionally connected to Papa Murphy’s via menu items (60%) and service (61%) than they are through atmosphere (41%). Like Papa Murphy’s, each brand has unique emotional drivers.
Understanding a brand’s ability to provide value in ways other than price will help operators tap into consumers’ emotional connections with said brand.