Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 SEGMENTS: CUSTOMER COST SAVING SEGMENT / CUSTOMERS WHO USE LESS RESOURCES IN THEIR REGULAR PURCHASES
CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE
| No. | SIC | Year | Notes |
| 1 | 3571 | 2004 | Mainframe computers, replaced by the midrange servers of Sun Microsystems and Compaq, are once again gaining popularity after being dismissed as boring and overpriced in the 1990's. IBM set out to address common complaints. Software pricing was revamped to let customers pay according to how much of the system they use |
| 2 | 4111 | 1989 | Federal Express is junking its flat-rate price structure and will now charge for its package-delivery services according to the distance a parcel travels. So rates will go down for short-distance packages and up for long-distance. One year ago, UPS did the same thing. |
| 3 | 4513 | 2000 | Airborne is also changing its pricing strategy. Previously, Airborne used a "one price fits all" strategy which attracted customers tired of the distance-based prices that FedEx and UPS introduced in 1997. Airborne's universal price was inflexible and it lost business on short-haul shipments and money on longer deliveries. The company plans to use zone-based pricing only in the heavily populated East Coast or places with lots of customers. It will not cut rates because it wants to avoid a price war. |
| 4 | 6021 | 1997 | If Citibank customers who are under the $6,000 limit for free checking make only eight transactions a month, they pay only $3 per month. |
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