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Periscope.(Statistical Data Included)

Newsweek International

| August 12, 2002 | Wehrfritz, George; Itoi, Kay; Beith, Malcolm; Kovach, Gretel C.; Conant, Eve; Hosenball, Mark; Radcliffe, Liat; Hawkins, Asher | COPYRIGHT 2002 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Japan

Not-So-Happy Meals

Even for McDonald's, the war against falling prices in Japan is a losing battle. Back in early 2000, the fast-food giant cut the weekday price of its hamburger from 130 to 65 yen (about $1.09 to 54 cents), and sales shot up fivefold. By early this year, with Japan's falling yen raising hopes of an export-led recovery, McDonald's hiked the price of burgers to 80 yen apiece (67 cents); the company hoped the increase "might stop deflation in the whole country," according to McDonald's top boss in Japan, Den Fujita.

That didn't happen. Consumers shunned the more expensive burger. Sales tumbled more than 10 percent a month ...

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Source: HighBeam Research, Periscope.(Statistical Data Included)

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