When McDonald’s Corp. reduced the price of its Big Mac by 75 percent if customers also purchased french fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel promotion would revive its U. S. sales growth. It didn’t. Within two weeks sales had fallen. Using your knowledge of game theory, what do you think disrupted McDonald’s plans?

Based on the information provided, it is difficult to ascertain the exact reason why McDonald's plans did not succeed. However, we can analyze the situation using game theory principles and consider a few possible factors that could have disrupted their plans:

1. Competitor Response: McDonald's decision to reduce the price of the Big Mac might have prompted their competitors to take countermeasures. If fast-food rivals offered similar promotions or introduced competitive pricing strategies, it could have diluted the impact of McDonald's offer. This competition may have limited the potential increase in sales that McDonald's anticipated.

2. Consumer Behavior: Game theory suggests that the outcome of a situation often depends on the actions and reactions of other participants or players. In this case, consumers may have reacted differently than expected. While the reduced price of the Big Mac would attract customers, some customers who were not initially interested in buying the entire combo might have taken advantage of the deal. As a result, sales of standalone Big Macs, without the addition of fries and a soft drink, may have decreased.

3. Promotion Execution: The success of any marketing promotion relies heavily on its execution. If the promotion was not communicated effectively or if customers found it confusing, it could have limited its impact. Lack of awareness or misunderstanding of the promotion's terms could have resulted in fewer customers taking advantage of the offer.

4. Market Saturation: It's also possible that the market for fast food, specifically for Big Macs, was already saturated. If the demand for Big Macs had reached a plateau, even a novel promotion might not have been sufficient to drive significant sales growth.

By considering these factors in light of game theory principles, we can analyze the situation and speculate on why McDonald's plans did not succeed as anticipated.