Scenario Extra Value Meal Bundle Pricing atMcDonalds McDonalds Extra Value Meal bundle pricing strategy hasbeen one of the most successful pricing strategies everdevised The prices McDonalds charges vary by type of sandwich Popular sandwiches, or ones with more costly ingredients, maybe priced higher For example Big Mac EVM $5 99 Quarter Pounder w Cheese EVM $5 99 Egg McMuffin EVM $3 99 Prices may also be higher at a McDonalds restaurant located inairports, highway rest stops, or prime downtown locations in majorcities Furthermore, prices may vary according to whether therestaurant is owned by McDonalds or a franchise or has competitiveor promotional considerations Extra Value Meals Bundle Pricing The Big Mac Extra Value Meal Item Unbundled Price Bundled Price Big Mac $3 92 N A Medium Fries $1 79 Medium Soft Drink $1 00 Total $6 71 $5 99 Bundle price saves $0 72 The Quarter Pounder W Cheese Extra ValueMeal Item Unbundled Price Bundled Price Quarter Pounder w Cheese $3 45 N A Medium Fries $1 79 Medium Soft Drink $1 00 Total $6 24 $5 99 Bundle price saves $0 25 The Egg Mcmuffin Extra Value Meal Item Unbundled Price Bundled Price Egg McMuffin $2 69 N A Hash Browns $1 00 Medium Soft Drink $1 00 Total $4 69 $3 99 Bundle price saves $0 70 Analysis Fill in Why Mcdonalds Uses Bundle Pricing Suggest the benefits of bundle pricing to customersand the company as well as the effects on other fast foodrestaurant competitors Why Mcdonalds Uses Bundle Pricing Factor Reasons for using bundle pricing Customer Company Competition Reflection Questions Why do you think McDonalds would use a bundle pricing strategy based on the three factors outlined in the handout In your own words, why do you think McDonald's does not just sell the items separately and charge the higher prices Thinking about fast food competition, which do you think costs more to make a taco or a burger Submission Upload a document with your completed table of WhyMcdonalds Uses Bundle Pricing and the answers to the 3 ReflectionQuestions

Question: Scenario: Extra Value Meal Bundle Pricing atMcDonalds McDonalds Extra Value Meal bundle pricing strategy hasbeen one of the most successful pricing strategies everdevised. The prices

Scenario: Extra Value Meal Bundle Pricing atMcDonald’s

McDonald’s Extra Value Meal bundle pricing strategy hasbeen one of the most successful pricing strategies everdevised.

The prices McDonald’s charges vary by type of sandwich. Popular sandwiches, or ones with more costly ingredients, maybe priced higher.

For example

Big Mac EVM: $5.99

Quarter Pounder w/ Cheese EVM: $5.99

Egg McMuffin EVM: $3.99.

Prices may also be higher at a McDonald’s restaurant located inairports, highway rest stops, or prime downtown locations in majorcities. Furthermore, prices may vary according to whether therestaurant is owned by McDonald’s or a franchise or has competitiveor promotional considerations.

“Extra Value Meals” Bundle Pricing

The Big Mac Extra Value Meal

Item	Unbundled Price	Bundled Price
Big Mac	$3.92	N/A
Medium Fries	$1.79
Medium Soft Drink	$1.00
Total	$6.71	$5.99
Bundle price saves	$0.72

The Quarter Pounder W/ Cheese Extra ValueMeal

Item	Unbundled Price	Bundled Price
Quarter Pounder w/ Cheese	$3.45	N/A
Medium Fries	$1.79
Medium Soft Drink	$1.00
Total	$6.24	$5.99
Bundle price saves	$0.25

The Egg Mcmuffin Extra Value Meal

Item	Unbundled Price	Bundled Price
Egg McMuffin	$2.69	N/A
Hash Browns	$1.00
Medium Soft Drink	$1.00
Total	$4.69	$3.99
Bundle price saves	$0.70

Analysis

Fill in Why Mcdonald’s Uses Bundle Pricing.

Suggest the benefits of bundle pricing to customersand the company as well as the effects on other fast-foodrestaurant competitors

Why Mcdonald’s Uses Bundle Pricing

Factor	Reasons for using bundle pricing
Customer
Company
Competition

Reflection Questions

Why do you think McDonald’s would use a bundle pricing strategy based on the three factors outlined in the handout?

In your own words, why do you think McDonald's does not just sell the items separately and charge the higher prices?

Thinking about fast food competition, which do you think costs more to make: a taco or a burger?

Submission

Upload a document with your completed table of WhyMcdonald’s Uses Bundle Pricing and the answers to the 3 ReflectionQuestions

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