Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: INDIVIDUAL CUSTOMER SEGMENT / A SPECIFIC CUSTOMER SEGMENT
CHOICE 3 COMPONENT: CHANGE THE LIST PRICE
| No. | SIC | Year | Notes |
| 1 | 2834 | 1991 | Most European governments bargain prices down to levels that cover companies' manufacturing and distribution costs, but much less of their research. Americans pay an avg. of 54% more than Europeans for 25 commonly prescribed drugs. |
| 2 | 3571 | 2001 | Dell Computer Corp. offers different prices for the same product based on customer segmentation. In 2001, a Dell Latitude L400 laptop was listed at $2307 on its small business site, $2238 for healthcare companies and $2072 for state and local governments. |
| 3 | 4512 | 1994 | American Airlines uses computers to help set prices, so that it can give a range of prices on each flight and fill its planes. Ex: offers $129.83 tickets for senior citizens and government and military employees. |
| 4 | 4512 | 2002 | Delta Airlines has cut business fares over the last 8 eight weeks by over 20% in more than 400 small markets. This fare cut produced double digit increases in revenues. Other competitors have followed Delta's moves. |
| 5 | 5900 | 2003 | In the world of online goods and services, customers can be divided into segments in accordance with their needs and resources. This offers a unique opportunity for pricing segmentation. One company discovered that a small reduction in the price of high-end merchandise brought in more sales from educational institutions. To retain margins and these customers, the company created a special website with special pricing for educational institutions. |
| 6 | 8221 | 1996 | This year North Carolina Wesleyan cut tuition for incoming students 23%. Also Univ of Rochester, Pine Manor, Waldorf College, Muskingum College. |
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