Wendy's restaurants have experienced declining sales recently due to consumers' increased interest in healthier eating and their preference for fast-casual restaurants such as Chipotle and Modern Market. In order to attract more customers to Wendy's, the chain expanded the number of items they are offering on the $1 menu, and many of these items are priced below cost. Wendy's is most likely utilizing a _____ pricing objective.
A)survival
B)profit
C)market share
D)return on investment

Question

Quizplus · Accepted Answer

Wendy's is most likely using a survival pricing objective in this scenario. By offering items on the $1 menu priced below cost, they are likely trying to increase sales volume and attract price-sensitive consumers in order to improve their overall financial performance and potentially avoid bankruptcy or closure.

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