Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: OCCASION SEGMENT
CHOICE 3 COMPONENT: PROVIDE A FREE, OR HEAVILY DISCOUNTED, PRODUCT FROM THE COMPANY, OTHER THAN THE PRODUCT ON SALE
| No. | SIC | Year | Notes |
| 1 | 4512 | 2002 | Travelers accustomed to travel vouchers handed out freely when a flight was canceled or overbooked may face a different picture. United Airlines offers a free domestic coach ticket instead of a dollar-amount voucher. |
| 2 | 6020 | 2001 | Charter One has reduced fees for regular check bouncers in order to retain these customers who may someday be more dependable or affluent. The bank feels that these customers are not deadbeats but young adults learning to manage their money. |
| 3 | 7841 | 2005 | In response to the growing popularity of mail-order movie rental services like Netflix, Blockbuster has introduced a new "no late fees" policy. This move will appease customers who have rejected the stores in favor of online services. Late fees contribute $250 to $300 million to operating income per year. The new approach allows customers a one week grace period to return a movie or game rental, after a week, Blockbuster will charge the account with the movie purchase price. The movie can be returned within a month with a $1.25 restocking fee and the money will be refunded. |
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