Five Guys uses clever psychological strategies, like upselling through fry portions and naming conventions, to make you feel you’re getting more value while driving higher sales. McDonald's, on the other hand, leverages price discrimination through apps and deals to appeal to both budget-conscious and less-sensitive customers.
🍟 Five Guys fries overflow: They fill the bag with extra fries, tricking you into thinking you got a bonus.
👤 "Little" vs. "Small": Five Guys calls their smallest burger a "little" to avoid embarrassment for customers ordering it.
📱 McDonald’s App Deals: The app encourages frequent visits with daily discounts, gamifying savings.
🏷️ Price Discrimination: McDonald’s charges differently based on customer price sensitivity, offering options for everyone.
Key insights
Five Guys' Manipulative Techniques
Fry Portion Illusion: Customers find themselves with excessive fries due to the practice of overflowing cups into the bag, enhancing perceived value.
Terminology: Using the word "little" instead of "small" for burger sizes plays into masculinity, deterring men from ordering them.
Single vs. Double Confusion: The distinction between a "little" cheeseburger (single) and a cheeseburger (double) can lead customers to order more than they initially wanted.
McDonald's Value Strategies
Competitive Pricing: While McDonald's and Five Guys prices are comparable for similar items, the former offers many promotional deals through its app that create a sense of value.
Frequent Discounts: Users of the app can access significant discounts, like a large fry for just $1, incentivizing more frequent purchases.
Customer Targeting: McDonald's app not only offers deals but also allows for targeted advertising, increasing overall customer engagement.
The Impact of Delivery Services
Delivery Markups: Ordering through services like DoorDash can inflate the cost by 27%, making it crucial for consumers to be aware of these hidden expenses.
The Role of Psychological Pricing
Perception of Value: Techniques like adding extra fries or creating app-exclusive deals tap into consumer psychology, encouraging purchases even at higher prices.
Key quotes
"Five Guys makes your brain think, 'Oh, I got a bunch of free fries.'"
"A little cheeseburger is a single, and a normal is a double, causing confusion."
"McDonald's has daily deals through their app – it’s a deals Bonanza!"
"Price discrimination allows those who are price-sensitive to save, while others freely spend."
"Using the app means better customer targeting and enhances the frequency of visits."
This summary contains AI-generated information and may have important inaccuracies or omissions.