Pizza Case Study
Q1. Is the writer of the article correct in believing that quality levels now are generally higher and that quality differences among businesses are minimal?
As a sweeping generalization, this may well be true. In the last two or three decades, attention to quality has increased dramatically, and this has truly yielded significant results. However, the owner needs to realize that there may be vast differences from industry to industry. Also, the quality of pizza available in local markets varies widely as local pizza enthusiasts can testify. Therefore, the writer is probably right, in general, but might be wrong in this situation.
Q2. What are the benefits and drawbacks of placing the firm's primary emphasis on minimizing customer wait time?
Many restaurant operators are investing in technology to better estimate wait times and improve the process of alerting guests when their tables are ready. The hope has been to keep customers from fleeing at the site of long lines. With a constant stream of …show more content…
How would your answers to the previous questions be different if Poole sold a $6 pizza? What if it were a $40 pizza.
There should be some discussion on perceived value that occurs with the differing price levels. Should the $6 pizza have inferior food products to increase profitability? Should the $40 pizza have higher quality products? Should food cost be low and pricing adjusted (perceived value)? Should food costs decrease/increase in a way that is equitable to the revised prices?
The price variance will have a huge impact on quality, a $6 pizza will not be the same quality as $40 pizza would hold. In order for the company to be cost effective they would be able to use high quality products to make a $6 pizza, they wouldn’t be profitable. However, by selling a $40 dollar pizza they would be able to use higher quality ingredients and appearance would be evident. This would nevertheless lower their target customers, as not everyone can afford a $40 dollar
As a sweeping generalization, this may well be true. In the last two or three decades, attention to quality has increased dramatically, and this has truly yielded significant results. However, the owner needs to realize that there may be vast differences from industry to industry. Also, the quality of pizza available in local markets varies widely as local pizza enthusiasts can testify. Therefore, the writer is probably right, in general, but might be wrong in this situation.
Q2. What are the benefits and drawbacks of placing the firm's primary emphasis on minimizing customer wait time?
Many restaurant operators are investing in technology to better estimate wait times and improve the process of alerting guests when their tables are ready. The hope has been to keep customers from fleeing at the site of long lines. With a constant stream of …show more content…
How would your answers to the previous questions be different if Poole sold a $6 pizza? What if it were a $40 pizza.
There should be some discussion on perceived value that occurs with the differing price levels. Should the $6 pizza have inferior food products to increase profitability? Should the $40 pizza have higher quality products? Should food cost be low and pricing adjusted (perceived value)? Should food costs decrease/increase in a way that is equitable to the revised prices?
The price variance will have a huge impact on quality, a $6 pizza will not be the same quality as $40 pizza would hold. In order for the company to be cost effective they would be able to use high quality products to make a $6 pizza, they wouldn’t be profitable. However, by selling a $40 dollar pizza they would be able to use higher quality ingredients and appearance would be evident. This would nevertheless lower their target customers, as not everyone can afford a $40 dollar