9
Robert Lauterborn suggests that the seller’s four Ps correspond to the customer’s four Cs
(Kotler, 1991).
Four Ps
Four Cs
Product
Customer Solution
Price
Customer Cost
Place
Convenience
Promotion
Communication
In
the
Marketing
mix,
the
product
decision
involves is the physical product; food and
beverages or service offered to the customer. It includes aspects such as function,
appearance, packaging, service,
warranty,
etc.
(quickmba.com).
In
making
a
Product
decision for restaurant, the type of marketing
mix
undertaken
and
the
amount
invested
will be different in each stage of the product
life cycle. For instance before the
launching, a
restaurant
undergoes a process of market research and development,
while
during the maturity stage, innovation and promotion is most needed to rejuvenate
interest
and
desire
of
the
restaurant
from prospecting
customers.
When
crafting
the
pricing strategy, profit margins and the probable pricing response of competitors become
the focus point. It includes the price list, promotions, etc. Setting the right price is also a
difficult
task;
customers
draw
their
own
mental
picture
of
what a product is worth and
reflects on its quality, brand and integrity (cited). One of the disadvantages of reducing
price is that competitors are able to match prices
resulting
in
no extra demand,
meaning
profit margin is reduced without increasing sales (cited).The image of the restaurant may
be perceived
to
have a
lower value product quality. In the restaurant business, pricing
is
very
subjective
according
to
customers’
expectation
of
the
product,
especially
with
 |