Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: INTRODUCTORY OFFER SEGMENT
CHOICE 3 COMPONENT: OFFER A CALL
| No. | SIC | Year | Notes |
| 1 | 5712 | 1995 | The new products at Bombay Company will have an initial promotion for 10 days at a 15% discount. |
| 2 | 6141 | 1997 | Revenues are under pressure from increased competition. Issuers have been resorting to massive discounting in net interest margins, primarily through introductory ("teaser") rates that in some cases are now as low as 0 percent. Meanwhile, annual fees have fallen by roughly 60 percent since 1991 to less than $4.30 per account. Issuers have tried to compensate with such hidden charges as higher penalties for late payments and reduced grace periods before which interest starts accruing, these have gone only part of the way. |
| 3 | 7372 | 1993 | Entered the database market by offering $495 Access package for $99 during 3 month promotion — sold 750,000 copies. But even after the promo, only increased the price to $125 |
| 4 | 8221 | 2004 | Colleges with fixed-tuition rates say the programs improve retention rates. Besides providing families with some measure of tuition predictability, the cost guarantee at Western Illinois University is intended to encourage students to graduate within four years. Not only are retention and enrollment rates higher, but the average time that students take to graduate has also fallen. |
<< Return to Choice 3