The Effect of Mobility on Cross-brand Consumption in the Dining Industry

Service sector, namely restaurant industry is one of the most popular and fast-growing fields. There is a huge variety of restaurant brands on the market and therefore consumers have the opportunity to choose which brand to consume depending on their needs and preferences. When consumer change tastes and interests, both within the market as a whole and within one company, the phenomenon of cross-brand consumption arises. Therefore, companies need a thorough analysis of customer behavior and their specific characteristics in order to maintain customer loyalty. In this paper, the attempt was made to simulate the probability of customers switching behavior, expansion its consumer tastes depending on the client’s personal characteristics, his average check and mobility in space. The study based on data about the experiment provided by Rosinter Restaurants Holding for the period from 01/01/2015 to 31/12/2017. Binary choice models were used with the inclusion of available customer features. Customer mobility indicators were calculated based on the locations of the restaurants they visited.