Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: PRODUCT SYSTEM COMPONENT SEGMENT / SERVICE PAYMENTS
CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY
| No. | SIC | Year | Notes |
| 1 | 3711 | 1998 | Daewoo hopes to appeal to college students in several ways. Its prices, on average, are less than those for competitive models from Honda, Toyota, and Nissan. All new Daewoos come with free routine maintenance for three years or 36,000 miles, something not found in any other low-priced car. |
| 2 | 5900 | 2008 | Amazon.com Inc., shaking off concerns that the slumping economy is hurting the Web retailer's business, reported that its second-quarter profit doubled on a 41% revenue increase, and raised its sales forecast for the year. The company's aggressive discounting and free-shipping programs helped lure shoppers who have grown increasingly cautious about their spending. Sales of books, music, and movies grew 31% to $2.41 billion. Its electronics and other general merchandise businesses rose 58% to $1.53 billion. |
| 3 | 5942 | 2002 | Amazon credits free shipping as a key factor in boosting its growth, Third-quarter revenue jumped 33% to $851 million from a year ago. Amazon expects to generate positive free cash flow for the full year. The company achieved this in 1998, with free cash flow of $3 million. |
| 4 | 5961 | 1995 | L. L. Bean is offering some customers free shipping on orders placed by Nov. 19. |
| 5 | 5999 | 2002 | Overstock attracts customers with its standard shipping fee of $2.95 on each order. Amazon charges shipping on all orders under $25. |
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