Wk 6 EOC: Setting Menu Prices

When selecting a restaurant to dine at has many factors to consider. Such as, what type of food do they offer, what is the price range, how is the ambience, how far is the drive? These are all factors that one considers when trying to figure out where to eat. Needles to say, many of us have asked ourselves these questions, therefore they are quite important. Even having a prior experience will influence our decisions, whether it be good or bad. Often times, many families go out to eat because they don't have time to prepare something themselves, so they go where the prices are fair and where they know their experience will be good. In this case this is a need from the family. "A potential customer with a recognized need or want may seek additional information. The amount of information a potential buyer seeks may vary depending on the situation. A spur of the moment decision to buy a dessert
after a meal may require only a quick look at the menu options. Determining where to celebrate a 25th wedding anniversary, however, may call for a good deal of research into appropriate alternatives" (77).

a. How does price influence your choice of restaurant? 
b. Do you think selling price influences most guests’ decision making in a similar way? Why or why not? 
c. What advantages could managers gain by advertising low selling prices as a way to attract customers?
d. What disadvantages could result when managers advertise low selling prices as a way to attract customers?