HADM 1360 Lecture Notes - Lecture 8: Peanut Butter, Walkman
16 Aug 2016
School
Department
Course
Professor
HADM 1360
Spring 2015
Ben Lawerance
Cornell University
Note Type: Lecture Note
Lecture Number: Lecture 8 – 9
Why Restaurants Fail
• Financial:
o Revenue Model
o Pricing
o Control
o Capital
• Marketing:
o Slow to Adapt
o Lack of clear concept
• Management:
o Motivation
o Planning
o Operational procedures
To operate restaurant: profit >labor costs
Behavioral pricing
• Perception of Fairness or Psychological utility (The beer example)
• Relative versus Absolute Value of Money (The walkman example)
• Impact of Salient Reference Prices (Sports team example)
• COGS Perception Impact Psychological Utility (Peanut butter example)
• Nature of Product being Sold
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