Marketing: An Introduction, Thirteenth Edition, By Gary Armstrong and Philip Kotler, Video Case-Fast Fiscount Wars: Fast-food chains are locked in a fierce battle that has them practically giving food away. McDonald's, Wendy's, Burger King, and others are commonly trying to lure customers at the low end of the price spectrum with tempting menu option that can serve as a snack or meal. Although this technique is nothing new, it's more popular today than ever. The tactic has even found its way into ull-service restaurant chains uch as Olive Garden.
But are bargain-basement options a sustainable path for restaurant chains? This video takes a look at the various ways discount menus re executed. It also considers the reasons for using menu tactics as well as the posible negative outcomes.
After Viewing the video featuring restaurant discount menu wars, answer the following: Can discount menu strategies like those featured in the video be classified as "value-pricing" ? Explain. Discuss why a restaurant chain might employ a discount menu as a pricing option? What are the possible negative outcomes of employing a discount menu strategy?