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i don't think the people at McDonalds actually went through all these theories to come up with the pricing for nuggets My guess is, the folks at McDonalds cont
by confiscate 11y ago
i don't think the people at McDonalds actually went through all these theories to come up with the pricing for nuggets
My guess is, the folks at McDonalds contracted out this problem to some firm, and that firm used A/B testing to gradually refine the pricing until it got to some optimal state, which just so happens to have 10 nuggets being the same price as 20
- grecy 11y agoI can assure you the world's largest fast food chain, in existence since 1940 that has annual revenues of $27.5 billion has spent a massive amount of time and money analyzing and refining the prices for every product. I can't back it up, but I'd wager they've spent many tens of millions doing exactly that. (I worked at a telco that was spending an ungodly percentage of revenue doing just that)
- confiscate 11y agoyes i don't deny that they probably spent a lot of time and money on this, as you said what i'm saying is, they probably still ended up using A/B testing to experiment and verify the truth, and used that to make the decision sure, they could have had analysts that wrote reports on every "could be" scenario (of which 10-is-same-price-as-20 is one). But i'd say those analysis or theories had very little or even nothing to do with why ncnuggets are priced this way.
- pervycreeper 11y agoThe point is, maybe this was optimized empirically, and the explanation is unknown or very complex.