Question

The manager of a chain of fast-food restaurants has noticed that the number of breakfast customers has fallen by 50 percent in the last 6 months. The manager believes this precipitous decline may be due to the extensive marketing campaign a competitor is running to promote its "good-to-go" breakfast menu. Which of the following steps would be most likely to regain the lost customers
A) retrain the members of the breakfast crew
B) introduce exotic items on the breakfast menu
C) match the competitors ad campaign but with lower prices
D) survey staff and customers on what changes need to be implemented

Answer 1

Answer:

The correct answer is letter "C": match the competitors ad campaign but with lower prices.

Explanation:

If it is confirmed that the number of breakfast customers of the fast-food chain restaurant has dropped because of its competitor's implementation of a "good-to-go" breakfast menu, the fast-food chain restaurant should strike back with a similar sale strategy for the breakfast menu but reducing the prices without falling into predatory pricing. The restaurant should also find out a way of improving the current service its competitor is providing to engage the consumers.