Menu Design Menu Pricing Psychology

Question 1

What is 'charm pricing' in menu design?

Accepted Answer

Ending prices in .95 or .99 to make them feel lower than a round number

Answer

Using decorative typefaces for price displays

Answer

Highlighting prices with gold ink

Answer

Placing prices only on the back page

Question 2

What menu engineering term describes a menu item that is highly popular but has a low profit margin?

Accepted Answer

Plow horse

Answer

Star

Answer

Puzzle

Answer

Dog

Question 3

The 'decoy effect' in menu pricing works by:

Accepted Answer

Placing an overpriced item next to the target item to make it appear as a bargain

Answer

Hiding the most expensive item in a footnote

Answer

Using identical prices across an entire section

Answer

Removing currency symbols to reduce price awareness

Question 4

Research from Cornell's Center for Hospitality Research found that removing dollar signs ($) from menu prices:

Accepted Answer

Led diners to spend more money

Answer

Confused diners and reduced orders

Answer

Had no measurable effect on spending

Answer

Increased complaints about value

Question 5

What is 'menu engineering' as defined by Kasavana and Smith (1982)?

Accepted Answer

A method of analyzing menu items by popularity and profitability to optimize placement and design

Answer

The technical process of printing and binding menus

Answer

The CAD system for laying out menu pages

Answer

Engineering restaurant equipment to match the menu format

Question 6

Why do upscale restaurants often present prices without cents (e.g., '$32' rather than '$31.99')?

Accepted Answer

Round numbers signal confidence and premium positioning, avoiding the 'discount store' feel of .99 pricing

Answer

Rounding is required by fine dining regulatory standards

Answer

Cents are too small to read on menu paper stock

Answer

Round prices are easier to calculate for split checks