Marketing Currents - Business and Marketing Current Events

Why Costco’s hot dog is still $1.50 when everything has gotten so expensive


Inflation has touched nearly everything these last few years — even Trader Joe’s 19-cent bananas. But Costco is holding the line on its hot dog-soda combo price.

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Discussion Questions:

  1. What is price?
  2. What is inflation?
  3. How does inflation impact you as a consumer?
  4. According to information from this story, how much would a Costco hot dog cost today if the company kept pace with inflation rates?
  5. Why do you think they have kept the cost of a hot dog combo at $1.50?
  6. What is a loss leader?
  7. How might Costco’s hot dogs represent an example of a loss leader?
  8. What is brand loyalty?
  9. Why is loyalty important to Costco?
  10. How might keeping hot dog prices at $1.50 help Costco to build and maintain customer loyalty?
  11. Costco has recently started to enforce its policy of requiring customers to show their membership card to enter its food court area. How might that help them to build and maintain customer loyalty?
Chris Lindauer
After working for nearly a decade in professional sports, Chris Lindauer, formed Sports Career Consulting to provide unique sports business education opportunities in and out of the classroom. In the eighteen years (and counting) that followed, Chris has inspired thousands of students to pursue their passions and explore the career of their dreams. He currently lives in Portland, Oregon with his wife, two teenage daughters and their dog.