Reduce Price to Improve Revenues and Margins

CHOICE 1: SELECT THE OBJECTIVE OF THE PRICE REDUCTION

1. Attract Customers

Encourage purchase of services or other products separate from discounted product

No.	SIC	Year	Notes
1	3571	2003	Sun has suffered as users give up old-line servers in favor of cheaper models powered by x86 chips. Sun began fighting back this month with a line of blades that use those chips. Unlike its rivals, Sun is throwing in the software for free.
2	5331	2006	Wal-Mart began its 2006 holiday discounting in October by cutting prices on toys. Discounts on electronics and small appliances followed in November and the retail giant promised further discounts on basic apparel.
3	5731	2002	Best Buy, a consumer electronics retailer, relies on warranty as "they subsidize unattractive product sales with low margins." It is the largest consumer electronics store in the U.S., posting $764 million in warranty sales in 2002.
4	7011	1992	Ski resorts (Northstar; Winter Park Resort; Mount Bachelor) are offering flexible pricing: charging for the number of runs, by the hour, and offering locals discounts to gain and retain customers.
5	9311	2005	The free software offered to tax payers is limited to people who meet certain income, age or other restrictions. The service has expanded amid growing industry competition to attract more users for both federal and state softwares.