Does A Decline In Consumer Spending Help Mcdonald

What is the meaning of the coupons for KFC and McDonald's? Why not cut prices directly?

Its basic marketing by printing out coupons you are also advertising and influencing people who normally would otherwise not go. If prices were cut directly only regular customers and customers of opportunity would come. In addition coupons make buyers feel that they have a chance of opportunity, its common sense really.For example, if I tell you that ill sell u a chicken sandwich for 99 cents, then you'll value it at 99 cents but if i tell you that its actually worth $1.99 but ill cut you a sweet deal on only 99 cents since you brought in a coupon you'd feel more inclined and pressured to buy it. For instance when a seller is selling a used car and he drops the price but only for “you”, you feel like you owe the seller at the very least a responce and inclines a heavy pressure on your final purchasing choice. In the same way coupons bring in more customers rather than directly telling at the resturant that your prices are now lower.After working fast food for about 2 years during high school i can confirm that we would get a spike of at least 2x as many customers every 4th thursday because coupons would generally ship out on tuesday. And to further prove this 1 out of every 3 customers would present a coupon on that day. The manager even had to increase load size because of this.In addition coupons aren't always as clear as they seem and adjusting a menu to fit those prices would be tedious at the very least. Ever heard of the offer buy one get one? You cant exactly force a customer to buy 2 items in order to sell them because the price demands it. If you've ever worked customer service you know how irrational customers are. Selling items like this is a sure way to get complains as many customers love to find loopholes around it. And while many would argue that selling things at 50% off would solve this, it would actually introduce a huge loss for the company. These coupons are made with the intention to sell the unpopular choices and coupons sometimes make a resturant take a loss just to bring customer in. Why would you discount something if its selling just fine?Coupons aren't meant to represent an item's value but rather an opportunity to catch a menu item on sale. Since you can't bargain with fast food chains this is the company's way of giving in and lowering prices directly would be illogical for a company to do just because they decided to mail u an offer of 99 cent cheeseburgers for the month of july.

Why do we go to McDonald’s when we know they don't have quality food? Is it just the taste?

We were recently on a road trip and were hell bent on trying the best local food places we visited offered. On the new year's we decided to begin new solar trip eating the greatest gift USofA has given to the world, a well prepared medium rare steak. We chose a high dollar steak restaurant in DC and had an amazing dinner, complete with wine and desserts which almost made us feel sinful for gluttony.But we being grad students, who are not exactly known for their lavish spending habits, some of us felt a tinge of sadness for spending that much on one meal. To counter this feeling we decided to eat only from the McDonald drive through the next day.The ones who were first timers were amazed at the fact that one could have a decent chicken burger for barely a dollar. You can order from a standard menu, get the food and finish it under ten minutes without ever leaving the car. You should really take somebody from outside the US to a drive through just to observe how amazing people find this concept.That day each of us spent less than ten bucks on food and that was enough to lift the spirits. The next day awaited us with more exquisite food locations where we could spend lavishly again, content in the knowledge that there's a McDonald's drive through always nearby to blunt the blow of next card bills.So some of us just really go to McDonald's because it's a cheap, reliable food chain which wouldn't kill us if we ate there infrequently. It prepares us for a visit to the really nice classy place we might encounter the next day.

How can one explain how the rise in income of a consumer affect the demands of a good?

A rise in income will lead to a rise in the demand for normal goods which include luxuries and necessities. Although the demand for luxuries will rise by a larger proportion, the demand for necessities will rise by a smaller proportion. An example of a luxury is private cars and a example of a necessity is food. In contrast, the demand for inferior goods will fall. An example of an inferior good is public transport.Economics Tuition @ Economics CafeEconomics Tutor: Edmund Quekhttps://www.economicscafe.com.sg

What is the importance of understanding consumer differences (e.g., with regard to cultural norms, disposable income, spending habits) when marketing globally?

That's the essence of marketing. If you don't understand the culture that defines each potential market, you're not gonna do very well. If you've noticed, McDonald's adopts a different approach to marketing in each country. In India, we have the McAloo Tikki burger or the Maharaja Mac. McDonald's understands that these things would catch a consumer's eyes here. Domino's does the same thing for that matter. Paneer on pizza anyone? Absolutely blasphemous.