Question: Pricing: Understanding & Capturing Customer Value (6min 47secs) https://youtu.be/VooHiweb1sw Fast food chains are locked in a fierce battle that has them practically giving food away.

Pricing: Understanding & Capturing Customer Value (6min 47secs)

https://youtu.be/VooHiweb1sw

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 constantly trying to lure customers at the low end of the price spectrum with tempting menu options that can serve as a snack or a meal.Although this technique is nothing new, it's more popular today than ever.The tactic has even found its way into full-service restaurant chains such as Olive Garden.But are bargain-basement options a sustainable path for restaurant chains?

After viewing the Fast Food Discount Wars video provide a short answer response to the following two questions:

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?

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