Price definitely influences the restaurant. It all comes down to what you want to experience or if you are there to eat or simply dine. Customers would pay a lot of money just to experience the nice view or setting of a restaurant and get great service. But other customers would rather go to cheaper places since all they are looking for is to eat. "the purchase decision may not be based solely on the buyer’s individual preferences."
Selling prices influences most guests in decision making because instead of purchasing a $12 soup in a casual restaurant, they could purchase a $7 burger, fries and drink meal at a fast food place. The money that guests are willing to spend and the prices they are selling food for is a strong aspect because if customers are there just to eat, they wouldn't bother spending more money on less food, just because the view is better.
By advertising low prices, it attracts customers from all ranges. "Advertising is one important way managers communicate marketing messages to target audiences. " From lower classes up to higher classes. It promotes specials and cheap meals for families to enjoy. Advertising low prices in a restaurant creates a wider range of potential customers as well as profit. A disadvantage could occur as well when advertising low prices to customers. It could bring their image down since a company that serves middle class food has driven down to advertise cheaper meals. Their image could change to a more cheaper place for customers to go. Also, the more they advertise cheaper meals the more customers would just want to go for the cheap meals. They would not bother spending more than what they can during those promotions. "Like advertising, promotions are designed to increase customer awareness or sales; however, sales promotions usually provide customers with a more urgent incentive to purchase a certain item. "
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