Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: INTRODUCTORY OFFER SEGMENT / DISCOUNT A NEW PRODUCT TO NEW CUSTOMERS

CHOICE 3 COMPONENT: EXTEND A DISCOUNT IN KIND

No. SIC Year Notes
1 4813 2004 Vonage announced a deal to sell its voice-over- Internet protocol kits at Circuit City Stores. The deal will offer two months of free service and free activation and the kit will cost $99. Vonage works with high-speed or broadband access. The company has signed up 115,000 customers, many early-adopters, and is looking to move into the mass market. The service is driving down the price of phone calls, selling unlimited local and long-distance calls in the U.S. and Canada for $35 monthly, $15 less than AT&T.

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