A&W's pricing strategy & why it works
A & W's Pricing Strategy & why it works Introduction Fast-food joints make their money by offering quick, cheap eats and marketing them towards a large segment of the market. Often times, the quality is low - but financial goals are met with tactful pricing strategies, promotional strategies and impulse-driven branding. However, recent years have shown society moving towards healthier lifestyles and more health-conscious choices when it comes to their food. At first, giants like A&W and their competitors dismissed the new health wave as a fad - but soon noticed a steady decline in their sales - which triggered a movement to re-brand to appeal to the new-found values of a large segment of consumers. Odd-even pricing defined One of the main strategies used by fast-food joints is odd-even pricing. It has been suggested that pricing items just under a whole number, such as at $3.99 instead of $4.00, makes the price seem like a bargain – that customers ...