Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: LOW DEMAND PERIOD SEGMENT
CHOICE 3 COMPONENT: ALLOW THE CUSTOMER TO SET THE PRICE
| No. | SIC | Year | Notes |
| 1 | 5812 | 2009 | An Indian restaurant in Germany offered a lunch buffet for 7.99 Euros. To combat slowing sales, the owner experimented with a two week "pay what you want" promotion. Volume went up 60% and the average customer paid between 5 and 7 euros. The same technique failed at a German movie theater, perhaps because customers have more personal contact at a restaurant. |
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