Author Question: The length of time for which a cycle menu is written will vary depending on the number of items ... (Read 27 times)

melina_rosy · **on:** Aug 10, 2018

The length of time for which a cycle menu is written will vary depending on the number of items being offered.

Indicate whether the statement is true or false

Question 2

Explain the impact of customer psychology on menu development.

What will be an ideal response?

memslove · **Reply #1 on:** Aug 10, 2018

Answer to Question 1

False

Answer to Question 2

Managers creating menus must consider three external factors:target market, competition, and consumer trends. Managers generallychoose from three different psychological approaches when arriving attheir final menu prices. These are low-end value pricing, midrange valuepricing, and upscale value pricing. In low-end value pricing, menu pricestend to be under 10.00, and the most common ending digit for the priceis 9, as in 2.99 . In midrange pricing, menu item prices tend to end in5 as often as in 9, such as 7.95 instead of 7.99 . Customers typicallyperceive both of these prices as above 7.00 and less than 8.00.. Pricesfor the upscale or fine-dining markets tend to end in 0, as in 17.00 . Many managers leave off the dollar sign, the decimal point, and the zeros,and list the menu price as 17 (for 17 dollars) at the end of the descriptionof the product.