Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: TARGETED COMPETITOR 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 3711 1990 Faced with price competition, Chrysler officials announced they would offer as standard equipment on the Cherokee several popular options like air conditioning and power steering, effectively lowering its price.
2 3711 1991 To respond to Ford competition, Chrysler started discounting Jeep for the first time, slashing the Cherokee Limited's price by $1,200 and adding discount packages for selected options.
3 4512 2007 Last month, American fired back at JetBlue Airways in New York and Boston by giving frequent fliers there a free ticket anywhere American flies, in return for buying two round-trips on American on a route to Florida or California where it competes with JetBlue. Offering the bonus of a free ticket to most anywhere in the world makes American's frequent-flier program powerful, and cost-effective.
4 7372 1991 Microsoft won't push Excel sales by discounted pricing. Borland has used a price-cutting strategy to sell to existing Lotus users. Lotus just launched a pre-emptive strike against Microsoft by offering to give any new buyer of 1-2-3-Release 3.1 a free copy of Ami wp.
5 7372 1991 To counter Microsoft's push, Lotus gave away its $495 Ami Pro word processor for Windows w/ each sale of its high-end 1-2-3.
6 7372 1996 Microsoft's new browser is free; Navigator is $30.

<< Return to Choice 3