A price structure that features individual menu items, specifically pizzas, offered at a very low cost (often priced in cents) is a strategic approach used primarily in the food service industry. This pricing strategy, while seemingly counterintuitive, aims to attract a broad customer base, particularly price-sensitive consumers. An example might be offering a plain cheese slice for 99 cents.
This model offers several potential benefits, including increased customer traffic and heightened brand awareness. The perception of exceptional value can drive impulse purchases and encourage customers to explore other, higher-margin items on the menu. Historically, such tactics have been employed as loss leaders, designed to generate initial interest and foster long-term customer loyalty, thereby offsetting the lower profit margins on the featured item.
