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Dietary Decoys

Imagine two restaurants, one of which sold only french fries as a side dish and another that sold both french fries and salads. Which would sell more fries? While logic might suggest that the salad would poach some of the side dish business, new research shows that adding a salad to the menu INCREASES sales of the less healthy fries!

Neuromarketing readers are used to human behavior being hard to predict and sometimes seemingly inexplicable. In Decoy Marketing, we showed how adding a less-capable product to one’s mix could boost sales of a better product priced the same or a bit more. And Compromise Marketing demonstrated how adding a new, more costly product to the lineup could increase sales of the previous top of the line model. But one has to admit that adding a salad to boost sales of french fries seems counterintuitive. Here’s what the researchers found: […]

By |April 27th, 2009|

Starbucks vs. McDonald’s: Coffee War Heating Up

Burger giant McDonald’s has the lucrative upscale coffee market dominated by Starbucks clearly in its sights. According to an AP report, McDonald’s Eyes Ballooning Coffee Market,

After the success of its upgraded drip coffee – which even managed to snag a thumbs-up from testers at Consumer Reports earlier this year – the fast food chain known for super-size meals is gearing up for a massive expansion into the world of lattes.

“We want to move from beverages as an accompaniment to being a beverage destination,” Don Thompson, president of McDonald’s USA, said in a meeting with analysts Tuesday. “Our speed, our convenience, the value that we can afford to customers without quality comprise [sic] will make us a formidable player.”

Restaurants will offer lattes, mochas, cappuccinos and espressos with a choice of different flavorings and milk. Industry watchers say the drinks cost about 50 cents less than at Starbucks.

Starbucks, meanwhile, is already feeling a bit woozy after its stock hit a 52 week low, as detailed by Chicago Tribune writer Mike Hughlett in New pressures grind at Starbucks). The picture isn’t entirely hopeless for Starbucks, though – neuromarketing research may hold the key to staving off the McDonald’s challenge. […]

By |November 19th, 2007|