Experts are of the opinion that the key to McDonald’s success is its ability to serve products that do not cost much. This low pricing strategy helps McDonald’s to attract a huge number of consumers who want to consume good food and drink at a low price. There are various other organizations that produce the same type of food but at a slightly higher price level. Low pricing gives an immediate benefit to the organization but it may cause a deep and long-term damage. The consumers at the restaurant stated that they are willing to pay a little more money if the organization enhances the quality of the food and service.
Most of the consumers are of the opinion that, if McDonald’s cannot produce surprising menus, it should at least try to enhance the quality of the food and the consumers are willing to pay for the increased price if any. Moreover, it was also observed that an amazingly low price can have a negative impact on the thought process of the consumers. The new consumers think that McDonald’s has a low pricing because it produces the low quality of food. The organization has to fight this assumption fueled by their pricing policy. The company does not increase the price probably because they are afraid of losing the consumer base. But, if the organization assesses the situations properly, they would be able to understand that most of the consumers are not concerned about it.
Innovation, the addition of new ingredients, and improvement of product quality call for an increase in the pricing, but McDonald’s does not respond to that call. As a result, not only the consumers become disappointed but also it damages the economic stability of the organization. The competitors earn huge profits while McDonald’s has to keep itself satisfied with a nominal margin of profit. This discourages the stakeholders to get involved in the organizational structure. This leads to an economic decline and McDonald’s can surely feel the impact.The findings of the research are hugely related to the consumer behavioral approach. An organization should exclusively focus on the consumer satisfaction as a part of the business philosophy. Consumer behavior is a key concept that is highly valued by the experts. An organization should implement innovative and satisfying tactics in accordance with the consumer behavior. Consumer behavioral approach can be traced from the very beginning of an operation and it includes multiple diverse steps that are unique in characteristic and impact (Schiffman, 2010). The consumers at first analyze an organization or product according to its marketing or promotional strategies.