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 TOP TIER STANDARD LEADER
CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE
No. | SIC | Year | Notes |
1 | 4813 | 1996 | AT&T is drafting an aggressive flat-rate offer for all local, long-distance and in-state "toll" calls, regardless of time of day, or weekday or weekend. People close to the company say the rate could be as low as 15 cents a minute. |
2 | 7011 | 1992 | Ski resorts (Northstar; Winter Park Resort; Mount Bachelor) are offering flexible pricing: charging for the number of runs, by the hour, and offering locals discounts to gain and retain customers. |
3 | 7375 | 1994 | AOL leading price cuts–$9.95 for 5 hours and $2.95/hr after, versus Prodigy $14.95 for unlimited use. AOL also matched Prodigy's hourly rate, dropping from $3.50 to $2.95. At this stage AOL was the newer competitor into the market. |
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