Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ANOTHER LOW-END COMPETITOR

CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE

No. SIC Year Notes
1 3577 2007 Hewlett-Packard, Canon and Eastman Kodak have introduced cheaper printer-ink cartridges to compete with the growing market of refurbished and refilled cartridges which sell for 50% less than the name brand replacements. However, some cartridges hold less ink, resulting in a higher per page cost. Some printers which are compatible with the cartridges are more expensive.
2 4813 1996 AT&T is drafting an aggressive flat-rate offer for all local, long-distance and in-state "toll" calls, regardless of time of day, or weekday or weekend. People close to the company say the rate could be as low as 15 cents a minute. Changes the unit priced.
3 7841 2003 Blockbuster now runs a pilot program called Freedom Pass, in about 500 stores, that permits subscribers, who pay $19.99 to $29.99 monthly, to rent two or three movies at a time, on DVD or VHS tape. As with Netflix, they can rent as many as they like to watch each month and keep them as long as they like without late fees.

<< Return to Choice 3