Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ESTABLISHED STANDARD LEADER / AGAINST A TOP TIER STANDARD LEADER
CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE
| No. | SIC | Year | Notes |
| 1 | 3711 | 2007 | Toyota offers options-loaded trucks at a lower price than similar options from competitors. However, it will not offer a much cheaper baseline model to avoid the appearance that it is too eager to attack the big-truck market dominated by Detroit. |
| 2 | 6282 | 1988 | Forcasting reduction in Pension Fund fees. Customers mandating different price structure. To be based on performance of fund (measured w/ ROI) rather than fixed % of account. |
| 3 | 7372 | 2005 | Yahoo's looking to make a lot of noise, with prices that drastically undercut its rivals' as it adds yet another reason to be the main destination for Web surfers. "The company wants to position itself as the dominant distributor of info and entertainment content online." Yahoo bought Music Match, and has begun to offer service for $6.99 a month or $4.99 a month for those who sign up for a year. Real and Napster sell the same services for $14.99 a month. iTunes sells songs for 99 cents a download while Yahoo sells them for 79 cents. |
| 4 | 7375 | 1997 | In early December, AOL began offering customers unlimited use of its service for a flat rate of $19.95 a month. Now cheap flat rates abound. |
<< Return to Choice 3