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: OFFER A TRADE-IN ALLOWANCE

No. SIC Year Notes
1 3571 1994 Cabletron offers discounts of up to 30% to SynOptics customers, provided they turn in their SynOptics equipment.
2 3571 1995 To lure customers of 3Com and Chipcom, Cabletron is planning to announce today a trade-up program, offering to apply a discount of as much as 40% of the price of 3Com or Chipcom equipment toward the purchase of a Cabletron replacement.
3 5122 2001 Pricing is a big issue when it comes to the pharmacy benefit management (PBM) industry. Caremark RX recently lost one of its mail-order prescription drug clients (Oxford Health Plans) as it canceled its contract. Caremark's rival, Merck, offered $87 million for Oxford to switch.
4 7375 2002 Microsoft is launching a new advertising campaign to persuade America Online customers to switch to their Internet service, Microsoft Network. MSN will offer $50 rebates and a month's free service with a 12-month contract for those who change from AOL.
5 7375 2005 SBC Communications, which kicked off a boom in discounting among its competitors, upped the ante by offering free Internet for three months to cable broadband subscribers who switched from competitors.
6 7841 2005 Blockbuster has struck against Netflix by announcing that it will give members of its competitor's service two free months of movies and free DVD if they switch over.

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