Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%
Do you think that the “pick your own food choices” compensates for the
2 to $5? Why or why not?
![McDonald's
A good pricing strategy is an important factor in staying competitive in the fast-food industry.
Thus, McDonald's, one of the largest fast-food chains in the world, has always been practicing creative
TEACHING ONLINE LEARNING MODULE: ABN 102: Prindples of Martathg
1ST SEM | Q2 - WEEK 4 |3 of 5
pricing strategies to attract customers. Its campaigns have been successful as they are still one of the
dominant companies in the fast-food industry.
One of these pricing strategies is their "value meals." These are essentially a group of menu
items that are sold together in a bundle but are priced cheaper than when they are bought individually.
As the fast-food industry tends to cater more towards being an economical and "on-the-go" food option,
this pricing scheme aims to widen their customer base by increasing their affordability.
The same pricing scheme is used in the United States as McDonald's faces competition from
Burger King. While Burger King uses the "5 for $4" deal (five-set food items for $4), McDonald's uses
the "McPick 2 for $2" menu (two food items of choice for $2). The products in Burger King are fixed
with a bacon cheeseburger, small fries, a small drink, four-piece nuggets, and a chocolate chip cookie.
On the other hand, McDonald's deal has choices such as McChicken, McDouble, small fries, or
mozzarella sticks. This pricing scheme aims to attract more customers to visitthe store. It was launched
in January 2016 and was patronized by many customers. However, it was only a limited-time offer as
it ended in February 2016, much to the dismay of its patrons. It was permanently replaced by the
"McPick 2 for $5" deal, which is comprised of its previous menu choices and additional options such as
the Big Mac, Quarter Pounder, and Filet-o-Fish.
In recent reports, the McPick 2 deal will continue to be offered worldwide as long as McDonald's
operators in the US stick with the $5 price, despite the negative comments on the price increase.
However, the company is still optimistic about the success of its strategy. While its competitor, Burger
King, provides more but fixed items for a lower price, McDonald's capitalizes on allowing the customers
to pick their preferred food.
Source: Principles of Marketing for Senior High School Book by Cynthia A. Zarate](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa8dc29b9-f797-41b1-9f68-ccf7b6d33856%2Fe640e9dd-de24-43e7-a0fc-0adc4fe544c0%2Fow54b2a_processed.png&w=3840&q=75)
Transcribed Image Text:McDonald's
A good pricing strategy is an important factor in staying competitive in the fast-food industry.
Thus, McDonald's, one of the largest fast-food chains in the world, has always been practicing creative
TEACHING ONLINE LEARNING MODULE: ABN 102: Prindples of Martathg
1ST SEM | Q2 - WEEK 4 |3 of 5
pricing strategies to attract customers. Its campaigns have been successful as they are still one of the
dominant companies in the fast-food industry.
One of these pricing strategies is their "value meals." These are essentially a group of menu
items that are sold together in a bundle but are priced cheaper than when they are bought individually.
As the fast-food industry tends to cater more towards being an economical and "on-the-go" food option,
this pricing scheme aims to widen their customer base by increasing their affordability.
The same pricing scheme is used in the United States as McDonald's faces competition from
Burger King. While Burger King uses the "5 for $4" deal (five-set food items for $4), McDonald's uses
the "McPick 2 for $2" menu (two food items of choice for $2). The products in Burger King are fixed
with a bacon cheeseburger, small fries, a small drink, four-piece nuggets, and a chocolate chip cookie.
On the other hand, McDonald's deal has choices such as McChicken, McDouble, small fries, or
mozzarella sticks. This pricing scheme aims to attract more customers to visitthe store. It was launched
in January 2016 and was patronized by many customers. However, it was only a limited-time offer as
it ended in February 2016, much to the dismay of its patrons. It was permanently replaced by the
"McPick 2 for $5" deal, which is comprised of its previous menu choices and additional options such as
the Big Mac, Quarter Pounder, and Filet-o-Fish.
In recent reports, the McPick 2 deal will continue to be offered worldwide as long as McDonald's
operators in the US stick with the $5 price, despite the negative comments on the price increase.
However, the company is still optimistic about the success of its strategy. While its competitor, Burger
King, provides more but fixed items for a lower price, McDonald's capitalizes on allowing the customers
to pick their preferred food.
Source: Principles of Marketing for Senior High School Book by Cynthia A. Zarate
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