Thursday, March 11, 2010

EOC Week 9-Mcdonalds pricing

" There would probably be little demand for a menu item that was out of the price/value range established by other items in McDonald's product line. For eaxample, a $10 burger would be well out of the price range that McDonald's customers expect for that product class." (MKTG, Lamb Hair McDaniel, pg. 291.)McDonalds claims there is no way that they could offer a $10 burger on their menu and make it profitable. I highly disagree. Although most of McDonald’s items on the menu are less than $5 I think that they would be able to incorporate this $10 burger into their menu somehow. One way I think they would be able to do this if they offered an incentive to buy this highly priced piece of meat on a bun. Maybe allowing a portion of the burger to go to some non-profit organization, would help people to reason the buying of the burger. Another way I think they could do this is use an extremely high caliber meat. If Red Robin can sell burgers for $10, so can McDonalds. The burgers just need to taste worthy of costing so much money.

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