Chapter 10, Problem 10.15VC

Summary Introduction

Case summary:

There appears a battle between the food chain stores like Restaurants W, MC, BK and other competitors are enormously trying to trap their consumers with low price tempting meals. Though this technique is not new it is more popular than ever before. This method helped other restaurants like Restaurant OG.

Characters in the case:

• Restaurant W, MC, BK
• Restaurant OG

Introduction:

The method that is adopted by the firm to fix the selling price is known as pricing. The pricing generally depends on the average cost and the perceived value of the product.

To determine: Whether the discount menu strategies can be classified as “value pricing”.