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Customer Demands for McDonalds

Paper Type: Free Essay Subject: Commerce
Wordcount: 1013 words Published: 23rd Sep 2019

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This is one of the most favorite products that I consume every day. It is very delicious and offers a very comforting taste that makes one yearn for more all the time. There are a number of factors affecting the demand for McDonald’s hamburger. Of importance is the psychological factor. This factor consists of four components; how consumers perceive the product, the attitude they have towards it, motivation as well as beliefs (McDonald’s Corporation, 2016). Customers are aware that McDonald has always strived to provide products that the consumers demand. This entails prioritization on excellent service delivery to the customers. Secondly, the product that the company offers is of high quality making them the best choice for more of the customers. The company is also known in its uniqueness of maintaining hygiene and cleanliness in their premises as well as the products they are releasing to the market. Any changes in the psychological factors affect the equilibrium price of the products. When customers develop a negative view of the product the demand goes down and the equilibrium prices then fall (McDonald’s Corporation, 2016). This applies to the quality of the product; when the quality deteriorates the demand of the product falls thus leading to the fall of the equilibrium price of the product.

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The sales price offered by McDonald’s has always been attractive to the consumers. This has enabled customers to be able to afford their products thus the high purchasing power is maintained for a longer time. Similarly, the company has been able to diversify their products. They have been able to introduce a new chicken legend type of burger, a step that has made them outdo their competitors. Others broad variety of healthy products that have been launched by the company includes vegetarian burgers, organic milk in addition to salads (McDonald’s Corporation, 2016). Their loyal consumers have been provided with a better opportunity to choose the most desired product from the variety. The consumers feel also advantaged by the fact that they can buy a variety of products from their trusted company. Diversification of the products has improved the demand of the hamburgers over time. Changes in the price and diversification of the product lead to a change in the equilibrium price. When the market price fall the demand of the hamburger increases; this causes an increase in the demand of the product with a net increase in the equilibrium price. When the price raises the demand for hamburger falls and the impact is fall in the equilibrium price.

The marketing strategy employed by McDonald’s has enabled it to grow into a strong recognizable brand. Their widespread and huge investment in the advertisement of their products has attracted a commendable market demand. This is supported by the fact that the buying behavior of consumers is depends on the awareness and recognition they have towards the products; this is only attainable from advertisement. McDonald’s is one of the biggest companies with a brand advertiser in different methods of advertisements including the use of television. The promotional activities employed by the company in addition to their exceptional sales techniques have played a very crucial role in ensuring customers return to their premises more often for the quality products. Improvement in the marketing strategies has an impact of increasing the demand of the product. Increase in demand of the product causes a rise in the equilibrium prices and the vice versa happens when there are negative changes in the methods of advertisements of the hamburger.

Sociological factors have contributed to the high demand for hamburgers as well. First, the change in the nature of the workforce with an increase in the numbers of working women has had an impact on the demand for hamburgers. There has been less time allocated in the cooking of food thus the majority of families have resulted in taking fast food. Just like demand, there are factors that affected the supply of McDonald’s humbugger’s (Iacobucci,  2013).The company has been in front line in ensuring they employ new technology in their lie of productions. Technological advancement has enabled them to increase the supply that is needed in the market. The same technology has enabled the company to achieve its objectives in addition to conferring competitive advantage. The firm has been able to optimize its operations in that they are taking the shortest time possible in its production (Iacobucci, 2013). The new technology has been employed in the processing stage, packaging, storage, monitoring of supply chain and in the keeping of accounts. Employment of new technology has an overall effect of increasing supply. An increase in supply leads to a decrease in the equilibrium price in the market.

Globalization of the company has helped in increasing its supply due to the fast-growing populations. McDonalds has been able to assimilate and embrace different cultures across the world thus being able to spread the American food culture all over the world. Globalization, as well as cultural embracement, leads to an increase in supply over time with an eventual outcome of a decrease in equilibrium price (Iacobucci,  2013).There is an anticipation of an increase in demand of the hamburgers in the future. This is due to globalization in presence of a high growing population. Globalization is directly attributed to improvement in methods of communication whereby the world is becoming a global village thus many people will be aware of the hamburgers and the demand for them will rise.


  • McDonald’s Corporation 2016, ‘I’m Lovin It’, Golden Arches Restaurant Sdn Bhd, retrieved 15 January 2019, < http://www.mcdonalds.com.my/company/history>
  • Iacobucci, D 2013, Marketing management student edition, 4th edn, Cengage Learning, South-Western, USA


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