Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ESTABLISHED STANDARD LEADER / AGAINST A TOP TIER STANDARD LEADER

CHOICE 3 COMPONENT: PRODUCT BASED LIST PRICE CHANGE – ANCILLARY PRODUCT

No.	SIC	Year	Notes
1	3571	1995	Sega slashed the price of its Saturn game player by 25%, matching Sony's price.
2	3571	2007	In order to boost sales of the Xbox gaming system, Microsoft cut the price of its popular model by $50 to $349. The prices for the cheaper core package and the more expensive elite system were also trimmed. This move followed a $100 cut by Sony on its PlayStation 3. Both machines have lagged behind Nintendo's Wii console which retails for $250.
3	3572	1987	Digital to cut prices on computer memories by as much as 54%. Analysts say the cuts come in response to EMC and Emulex that have been undercutting Digital in order to sell memory products to customers who buy Digital computers.
4	3944	1996	Sega cut the price of its Saturn machine to $200 after rival Sony cut the price of its PlayStation to $200.
5	4812	1996	Last April, AT&T scrapped "roaming" charges for the Boston-NY-Washington corridor. That prompted Bell Atlantic-Nynex to eliminate its own $3-per-call fee for using the phone outside the home region.
6	5812	2009	Starbucks Corp. said it is ready to fight back against rivals' claims that the company's coffee drinks are expensive and the notion it is losing share to cheaper coffee makers. That comes just as McDonald's Corp. is getting ready to launch its national ad campaign for the mocha lattes and cappuccinos it has been rolling out across the country. McDonald's recently ran a billboard in Seattle with the message "Four bucks is dumb." The burger giant now offers coffee drinks in many markets for less than $3.
7	5945	2003	Wal-Mart and Toys R Us are cutting prices and deploying brigades of Barbie and Elmo dolls as they joust for market share. Wal-Mart took the industry by surprise earlier, when it cut prices on more than a dozen hot toys, in order to attract customers to their store (and other aisles). Toys are Us countered with its coupon book, cutting the price gap, and hoping its wider selection will make its store the destination for holiday buyers.
8	8099	1988	More hospital emergency departments are offering competitive pricing to regain business lost to free-standing clinics. One Iowa emergency dept. cut charges for treating a sore throat to $30 from $67, but its charge for CPR went from $150 to $400.

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