Exam 1 (ch 1, 2,3, 7) 26 of 50 (23 comple uestion: 4 pts many years, McDonald\'s

Question

Exam 1 (ch 1, 2,3, 7) 26 of 50 (23 comple uestion: 4 pts many years, McDonald's used frozen beef in its hamburgers. It recently began market testing how consumers in the United States would t from only 55 restaurants to over 300. The switch to fresh, never-frozen beef patties would be a huge undertaking involving "how lthe bee rgers ource: Samantha Bomkamp. "McDonald's Expands Fresh Beef Test Again," chicago.tribune.com, March 17, 2017 If you were a manager at McDonald's, how wouid you go about analyzing whether to switch to fresh, never-frozen beef patties? In your answe hamburgers, and whether you would have to switch in all McDonald's locations around the world (they are in 119 countries), or just in certain c O A. You would want to comparethe marginal benefts and marginal costs of serving hamburgers made with fresh beef. 0 B. You should use the results of the consumer market testing to determine whether to serve fresh beef patties. O c. You would want to compare the total benefits and total costs of serving hamburgers made with fresh beef ? D. This is an all or nothing decision You would base your decision on consumer tastes at each McDonald's location.

Explanation / Answer

Correct Answer:

B

It is the research conducted of consumer market testing and its results, that will show the preference of the consumers to go with fresh or frozen bee-f. Further, the consumer market and its cultural preferences and its associated taste keep changing from one country to another country. So, it will be good to conduct this research in each major geographical segment and apply the findings. So, it does not have one fit for all strategy.

Here, marginal benefit / cost and total benefit/cost, will not play a major role, because it is associated with the pricing decisions and it is applied on the basis of products on offer to cater the consumers' demand as well as demand elasticity.

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