Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST A NEW ENTRY
CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE
| No. | SIC | Year | Notes |
| 1 | 7372 | 2008 | Microsoft Corp. will begin selling its Office programs to consumers on a subscription basis starting in mid-July, in a bid to reach thrifty PC buyers who would otherwise pass on productivity software. The software bundle, which includes Microsoft's live OneCare computer security software, will be sold at nearly 700 Circuit City stores for $70 a year. Subscription pricing has become commonplace in business, but is relatively new for consumers. Buying programs the traditional way would cost $200. Under the subscription plan, upgrading is included in the annual cost. The new plan is aimed at those who wouldn't ordinarily buy Office at the same time they purchase a new computer; but they are willing to spend extra on security software, which is why the price falls between the high and low ends of popular security programs from vendors such as McAfee Inc. and Symantec Corp. |
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