Reduce Price to Improve Revenues and Margins

CHOICE 2: ISOLATE SEGMENTS RECEIVING THE LOW PRICE

A. Product Purchased Segments

Product Cost Savings Segment

No.	SIC	Year	Notes
1	2731	2006	Electronic textbooks may present an option for students struggling with rising textbook costs. Typically password protected online access costs about half of the price of a traditional book.
2	3571	1992	IBM completely revamped its PC offerings, creating four distinct lines aimed at corporations, small businesses, laptop users, and bargain hunters–now covering all price points for all customers.
3	4724	2006	Opaque systems, such as those operated by Priceline and Hotwire, benefit the suppliers by reaching out to the most price-conscious travelers without making bargains available to the general public.
4	5735	2007	Many movie studios are reluctant to put their films up for rent or sale on Apple's iTunes service because of Apple's pricing. Apple generally charges $14.99 for new titles compared with $18 for a new DVD, undercutting income for the studios.
5	7375	2004	Microsoft also offers a stripped- down service called MSN Plus for $5.95 a month but it lacks most of the compelling features of Premium except for the larger e-mail attachments.