When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices,they are using ________.
A) break-even pricing
B) target profit pricing
C) good-value pricing
D) cost-plus pricing
E) bundling

Question

Quizplus · Accepted Answer

Good-value pricing is when companies offer a balance between quality and price, offering customers a reasonable price for a reasonable product. McDonald's "value menu" items provide a good value for customers by offering lower-priced items without sacrificing too much quality or taste. Break-even pricing aims to break even on costs and profits, target profit pricing is when a company sets a specific target profit margin, cost-plus pricing adds a markup to the cost of the product, and bundling offers discounts for purchasing multiple items together. None of these pricing strategies are as closely related to the "value menu" concept as good-value pricing.

When McDonald's and Other Fast Food Restaurants Offer "Value Menu