After reading Chapter 11 and 12 on pricing I took a trip over to Wal-Mart and on my way i traveled past a McDonalds which was swamped with customers. Almost right next door was a Wendy's, Burger King, and a Pizza Hutt which all had a combined customer load of about 10 people. McDonalds had over 6x the customers of all its competitors combined. customers were waiting in large lines when right next door were more fast food restaurants, i was astonished until i thought deeper into the situation. All of the other chains were slightly pricier than McDonalds which was what caused their vacancy. These customers cared so much about a $1-$2 difference in price that they would wait for almost 15 or 20 minutes.
Can you think of any other industry where this same pricing action occurs?
