Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: VOLUME PURCHASED SEGMENT
CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY
| No. | SIC | Year | Notes |
| 1 | 4512 | 1986 | Midway Airlines will give passengers who make 60 round trips anywhere $2,500 in credit in a Citicorp Diner's Club account or $2,000 in Citicorp travelers checks. |
| 2 | 4512 | 1987 | Pan Am will offer a free round-trip ticket for one of its Pan Am Shuttle flights to passengers who buy a full-fare round-trip shuttle ticket and a Polaroid Corp. Spectra system camera. They'll also receive Polaroid gift certificates. |
| 3 | 4813 | 1993 | Sprint's "Priority" long-distance plan includes free gifts such as coffee pots and sea cruises based on their volume of usage. |
| 4 | 4813 | 2004 | EarthLink Inc. is planning to offer its 1.2 million high-speed customers free computer-to-computer Internet phone calling. Cable companies such as Charter Communications Inc. and Cablevision Systems Corp., and phone companies including AT&T Corp., Verizon Communications Inc., and Qwest Communications International Inc. are all offering Internet phone calling, generally at rates below standard phone service. |
| 5 | 4899 | 2000 | The Bells and cable-TV companies are fighting to sign-up Internet customers. Many have cut prices and waived installation fees. Most companies, like SBC, charge $40 a month for a fast DSL connection. Verizon recently lowered its price from $50 to $40. A number of companies offer almost free PCs in exchange for a sign-up. Customers who sign up for a new SBC deal will receive a new Compaq Presario PC, worth $1,000. |
| 6 | 5961 | 1995 | Eddie Bauer is offering to pay shipping on purchases of $100 or more. |
| 7 | 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. |
| 8 | 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. |
| 9 | 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. |
| 10 | 7011 | 1987 | Hyatt offers a discount where a traveler can receive two free personalized baggage tags after 2 stays at its hotels. |
| 11 | 7999 | 2008 | As the recession begins taking a toll on the ski industry, resort operators are offering a flurry of discounts they hope will draw more visitors. Another resort has a "friends and family fly free" package that includes a free airline ticket with every two purchased. |
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