Assignment 1 Pricing Strategy Essay

1757 Words Feb 14th, 2015 8 Pages
Strategic Market Pricing and Smalls’ Premium Steakhouse
By: Andrew Smalls
Professor: Irene Zoppi
MKT 402, Pricing Strategies
February 1, 2015

Strategic Market Pricing and Smalls’ Premium Steakhouse
A Premium Dining Experience
If given the opportunity to open a restaurant, it would be an upscale restaurant catering people who the desire to have excellent food and a premium dining experience. I would name this establishment Smalls’ Premium Steakhouse. My name inspires the name of the restaurant and, of course; we would specialize in all sorts of steak from filet mignon to steak burgers. My focus would be on serving premium foods at premium prices. Our differentiation factor would be the quality of our unique service. We would
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With this information at their fingertips, the servers can also offer rewards based on these visits and up-sale items at the table. For instance, Some guest may purchase a snack after or wine after their meal. If the server has this information, he or she could offer it to them if they have not already asked for it. It would increase the value of the server and add incremental revenue for the restaurant.
Value Communication Customers usually do not know what value they are receiving from a product or service. When they lack experience in a service or product, then it is more likely that the value of the differentiation will be unrecognized. Thus, my value communication strategy has to inform them of the value they will receive. For this reason, it is imperative that we show the value received to the customer. If the guests do not see our value offering, they may perceive our price as unfair, which lead to less revenue. Our objective in value communication is to raise their awareness of the value received and their willingness to pay it (Smith, Hogan, & Nagle, n.d.).
Building the brand of the restaurant is going to be our first step in communicating this value. We want the premium nametag attached to our name labeled as a superb value. To do this we will have to maintain consistent and above average customer service, that differentiates us from others. Secondly, the rewards programs we will offer at the table will

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