Pizza Pricing Strategies
This week you learned about the three core pricing strategies: penetration, neutral, and skim. Now we’re going to examine those pricing strategies in action. Hope you’re hungry, because you’re going to be looking at a lot of pizza.
In this interactivity, you’re going to briefly recap the three pricing strategies, use them to classify the major pizza chains based on exploring the online ordering process and then answer a few related questions. So let’s dig in!
Guided Response:
Re-familiarize yourself with the three main pricing strategies
Review section 5.2 in the text as needed.
Research actual pizza pricing Visit each site, identify your location and simulate an order. Price out a medium cheese or pepperoni pizza. Proceed to payment stage, observing the selling process. Record your pizza choice and final price (minus tax). Execute your purchase as you see fit. Note: One brand doesn’t offer online ordering. Poke around their website for an online menu or consultfastfoodmenuprices.com. Create a forum post that includes the following: A brief description of the three pricing strategies (from least to most expensive). Your research driven price strategy classifications of the five brands. For any pricing strategy where you have multiple brands, rank them from least to most expensive. Include the kind of pizza you priced out, your recorded prices and any other pertinent notes.
Your classifications may differ from others. That’s okay. Your answers to the following questions: Did your perception of these chains’ pricing strategies change based on this exercise? If so, how? Based on this exercise, identify three factors that complicate price comparisons. For you, which of these chains represents the greatest value and why? Explain how each of the Ps contributes to your answer. Reply to and pitch a peer. Price-value perceptions vary by individual. Find a peer who selected a different chain as offering the best value and try to change their mind. Customize your “pitch” based on what they wrote.
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