Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ESTABLISHED STANDARD LEADER / AGAINST A SMALLER STANDARD LEADER
CHOICE 3 COMPONENT: OFFER A TRADE-IN ALLOWANCE
No. | SIC | Year | Notes |
1 | 3571 | 1989 | IBM began offering tens of thousands of dollars to Wang customers and other minicomputer owners who promise to switch to IBM AS/400 minis. |
2 | 4813 | 1992 | AT&T mails out a $20 check to potential customers. If they endorse the check and cash it, they switch to AT&T automatically. |
3 | 7372 | 2005 | SAP began tempting PeopleSoft customers last year with a 75% discount for switching over. |
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