Faculty & Research
Redefining Value: The Hamburger Price War
| View subscription information. |
Vol 38 No 3
By: Christopher C Muller
Executive Summary: The role of price in consumer decision making, pitfalls of discounting and many non-price strategies used by restaurateurs to set themselves off from the competition are discussed. One examples used is McDonald's "Campaign 55," a marketing strategy announced in February 1997 focusing on price and speed of service. The move was meant to recapture market share that was being lost to the company's primary challengers. Another example is Taco Bell, the recognized leader in price-driven marketing since 1990. Taco Bell announced "Project Gold" in July 1997, a move to upgrade menu items, especially meat, cheese and taco shells. The Mexican quick-service giant, which is credited with launching the widely imitated fast-food "value revolution," quietly is setting the stage for a major shift in marketing tactics away from cut-rate tacos toward higher-quality fare with higher price tags. Thus one market leader is stressing price over all other considerations, while another market leader will be emphasizing quality in place of its former value-price promotion.
Your Comments Please
If this Cornell Hotel and Restaurant Administration Quarterly Article made a positive impact on your management approach or business operations, we welcome your commentary. We would like to post your comments on our website. Submit your comments to mlp1@sha.cornell.edu.
To view the whole article, please click on the link below.
- Redefining Value: The Hamburger Price War By: Christopher C Muller
| If you have trouble downloading a report, and are able to install software on your computer, try upgrading to the latest version of Adobe Acrobat Reader to see if that allows you to read it. |