As Restaurant Chains That Specialize in Mexican Cuisine, Fernando's and Carmelita's

question 109

Multiple Choice

As restaurant chains that specialize in Mexican cuisine, Fernando's and Carmelita's offer similar items on their menus. However, Fernando's restaurants are positioned in the market as elegant establishments with high prices. Carmelita's restaurants, on the other hand, are located in middle-class neighborhoods, with a casual atmosphere that welcomes families with young children. The prices at Carmelita's are in the moderate range. When evaluating the marketing strategies used by these restaurants, we can conclude that:

• A) both practice product mix effectiveness.
• B) they utilize product differentiation.
• C) Fernando's has chosen a shopping good strategy.
• D) their target markets differ, with one intended to appeal to the industrial market, and the other designed to attract the consumer market.

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Definitions:

Price Discrimination

The selling of a product to different buyers at different prices when the price differences are not justified by differences in cost.

Tying Contracts

Agreements where the seller of a product or service requires the buyer to also purchase a secondary product or service.

Sherman Act

A landmark federal statute in the field of U.S. antitrust law passed in 1890 to protect competition and prohibit monopolistic practices.

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at promoting competition and preventing unfair business practices.