Monopolistic competition is the competetive structure followed by Pizza Hut since its competitors Domino's Pizza, Papa John's Pizza etc are large in numbers with similar features. There are very few barriers for new firms to enter and all of these Pizza Hut, Domino's pizza, Papa John's Pizza are selling different varieties of Pizza i.e differentiated products.
Second degree price discrimination is practised by Pizza Hut when they throw in offers like "on a minimum order of 400 flat rupees 101 off" that is giving discounts on bulk orders OR giving 50% off coupon and promo codes ect on high purchase orders.
Law of diminishing marginal utility can be seen used by Pizza Hut by giving offers like "unlimited pizza and garlic bread at rupees 249" This incentive was offered in stores in Hyderabad and was for in-store consumption only. A perfect example of the above concept.
Pizza Hut makes people respond to incentives by giving 50% off on order of a second pizza or 20% off on an order above Rs 399 to increase it's sales and customers.
Pizza Hut produces diversified varieties of pizza in size as well as taste . But it saves cost when it shares its assets like store, kitchen equipment and other raw materials common to all Pizzas prepared in the same outlet. Eventually it leads to a cost saving which markes the use of Economy of scope by Pizza Hut.
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