Reduce Price to Improve Revenues and Margins

CHOICE 1: SELECT THE OBJECTIVE OF THE PRICE REDUCTION

1. Attract Customers

Liquidate inventory

No.	SIC	Year	Notes
1	2671	1992	Sun is trying to manage a transition to a new line of powerful workstation computers. 17-30% discounts on old workstations not boosting sales.
2	3711	2007	As the home mortgage crisis begins to affect interest rates and spending, automakers are looking to clear out 2007 models before the 2008 models arrive. Honda Motor, which normally avoids incentives, is offering below-market financing on its minivans.
3	4481	2000	Most cruise costs are fixed whether a ship's berths are filled or not, so it is better to sell cheap than not at all. Last minute cruise bargains are widely available. Some are finding that it is cheaper to go on a cruise than to stay home.
4	5990	1995	Outlets being squeezed by other retailers, particularly department stores, that have been offering frequent, deep discounts starting at 30% off. Discounts at outlet malls average 25 to 30%.
5	7011	2001	Starwood's W hotels saw occupancy rates in September 2001 plunge 20 to 25 percentage points from its level in the high 80s prior to September 11. About 30 days later, occupancy bounced back, climbing to 3 or 4 percentage points of year-earlier numbers.