I bought fast food for a group of people last night. The menu pricing was significantly higher than ordering through the app, which also allowed me to attach a digital coupon.
The pricing within the app is what I would expect to pay, or what I believe is “fair” or “reasonable” for chicken nuggets, French fries, and cheeseburgers.
On the other hand, I have cut my fast food consumption by at least half over the last few years because the published menu prices have skyrocketed.
What possible benefit would a fast food restaurant derive from publishing high prices to the casual customer and drastically reducing them within the app?
They have to be realizing a net loss of customers with this model, right?
In: Economics
In addition to what others have said, one business strategy that this utilizes is market segmentation. The people who are price conscious are able to get the fairer prices that they desire while enabling Mcdonalds to charge a premium to customers who are more indifferent to pricing. Now Mcdonalds gets to maximize the price and volume that each customer winds up paying
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