I’ve read the blog post of Vanessa Chung’s posted on Nov 10, named “Wait- the relative cost and product quality of McDonald’s Big Mac is not the same worldwide?”
I was really interested in this post of her and have inspired me. I would like to share a bit about what I think of this topic.
First of all, I think not only does the Big Mac in McDonald’s has different prices and sizes around the world, also the prices and sizes of other products in their restaurant. For example, a whole value meal’s price and size also differ among different countries. I believe this must have something to do with the macro influences such as price of delivery, amount of competitors and living standard in certain country.
This brings me to think of some other worldwide corporations’ product prices and I am quite certain that not only does McDonalds have such a feature, other worldwide corporations also do have this same feature. In my opinion, this has a big relationship with how the people living in certain country or city see your products or more specific–your brand.
For example, back in USA, Abercrombie & Fitch is a very popular brand and actually doesnt cost much for each of their hoodies. However, when they started their business in Hong Kong, they can raise their price to more than 1.5times comparing to those in USA but still have many customers. This is because people living in Hong Kong see this US brand as a luxury brand in their city and that if they can have one piece of fashion from this brand, it means that they have a higher life standard and a higher social status in their own city. Therefore, they will strive hard to get themselves at least one product from A&F. According to this psychological requirement, A&F can charge higher price in Hong Kong than in USA.
This is indeed one of the pricing stategy which we have learnt in class in the last few lessons. And I think the blogpost from Vanessa was one of the examples. Now I can think of many of the real life examples after reading the post. Maybe I should say thank you to Vanessa! =] I understand more of what I learnt in class!