Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ESTABLISHED STANDARD LEADER / AGAINST A SMALLER STANDARD LEADER

CHOICE 3 COMPONENT: OFFER A TRADE-IN ALLOWANCE

No. SIC Year Notes
1 3571 1989 IBM began offering tens of thousands of dollars to Wang customers and other minicomputer owners who promise to switch to IBM AS/400 minis.
2 4813 1992 AT&T mails out a $20 check to potential customers. If they endorse the check and cash it, they switch to AT&T automatically.
3 7372 2005 SAP began tempting PeopleSoft customers last year with a 75% discount for switching over.

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