Discounts Aren't Bringing Customers or Profits

McDonald’s is heating up the coffee wars with an offer of a free mocha coffee on Mondays until August 3. Nor is McDonald’s alone. Many restaurant chains are offering heavily discounted products during tough times to woo customers and possibly gain market share from competitors.

Coffee wars simmer with free mocha coffee offered by McDonald's on Mondays. Source/McCafe site

Professor Kit Yarrow of Golden Gate University says that free still works for bringing in customers. But Yarrow asserts that discount strategies in this economy are not bringing in customer increases or profits. Listen to the interview below.

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