McDonald's restaurants have experienced declining sales recently due to consumers' increased interest in healthy eating and their preference for fast-casual restaurants such as Chipotle and Noodles. In order to attract more customers to McDonald's, the chain expanded the number of items they are offering on the $1 menu, and many of these items are priced below cost. McDonald's is most likely utilizing a _____ pricing objective.

Question

Quizplus · Accepted Answer

McDonald's is pricing items below cost in order to attract more customers and increase sales. This is a temporary measure to address declining sales and stay competitive in the market, indicating that their pricing objective is focused on survival rather than profit, market share or return on investment.

McDonald's Restaurants Have Experienced Declining Sales Recently Due to Consumers