Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / VOLUME DISCOUNT DOLLAR AMOUNT BASED ON REACHING STATED PURCHASE TARGETS

CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY

No.	SIC	Year	Notes
1	4813	1993	Sprint's "Priority" long-distance plan includes free gifts such as coffee pots and sea cruises based on their volume of usage.
2	5961	1995	Eddie Bauer is offering to pay shipping for new customers, on orders of $100 or more, if the orders are placed by Oct. 27.
3	5999	2002	As online retailers are beginning to make a profit, new promotions could send them into a price war. Amazon.com lowered the order limit eligible for free shipping while Buy.com did away with shipping charges for many products. Circuit City and Best Buy also began offering free shipping. These promotions are part of an effort to lure customers who are expected to spend more this year. Amazon's original effort with free shipping on orders over $99 succeeded in boosting sales and the company hopes it can boost profits by encouraging customers to buy more items and wait a few more days for those items. Buy.com's offer and extra discounting could undermine Amazon's efforts but Amazon has larger revenues and can better sustain loses.
4	6211	1999	A small Los Angeles based brokerage, JB Oxford Holdings Inc., began offering free internet access for life to customers who maintain a $2000 cash balance.
5	6211	2006	As consumers returned to the stock market, discount brokerages were there to encourage them, offering airline miles, electronics and cash to clients who made investments. However, these incentives may be subject to restrictions and taxation. TD Ameritrade Holdings began offering Palm Treo Smartphones and 25 free trades to those who opened a new account with at least $25,000.
6	7011	1987	Hyatt offers a discount where a traveler can receive two free personalized baggage tags after 2 stays at its hotels.

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