Raise Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE, REDUCE PERFORMANCE AND ITS COST
CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS PURCHASING DURING A PERIOD OF UNBALANCED SUPPLY AND DEMAND
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 4512 | 1987 | Continental to raise the unrestricted coach fares on most of its flights as much as 12.5%. This partly reflects less competition now that Continental's parent owns two former low-fare carriers, People Express and Frontier Airlines. |
| 2 | 9311 | 2002 | Near Los Angeles, which has the worst traffic in the country, a private company in 1995 constructed toll lanes down the center of the Riverside Freeway. Although residents argue that the arrangement leads authorities to neglect the free road in order to force drivers onto the paid lanes, 40,000 motorists a day pay the tolls. The income group that uses the lanes most frequently makes $40,000 to $60,000 per year, likely because these earners must rush to 9-to-5 jobs. |
<<Return to Choice 3