Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ANOTHER LOW-END COMPETITOR
CHOICE 3 COMPONENT: SET A PRICE CAP
| No. | SIC | Year | Notes |
| 1 | 2834 | 2009 | Even as U.S. lawmakers seek new ways to rein in health-care spending, drug companies are quietly getting around these actions using a device for controlling prescription-drug costs: insurance co-payments. Drug makers are increasingly subsidizing these "co-pays" — the share of prescription costs that insured patients must pay out of their own pocket. Insurers require co-pays to give patients an incentive to be price-sensitive and pick generic drugs over pricier name brands. British drug maker AstraZeneca PLC's program for Nexium will pay a patient's out-of-pocket costs for the heartburn drug beyond $25 and up to $75 a month. To get the discount, patients simply hand to their pharmacist a rebate card, which they can obtain through their doctor, or by calling the company or just by printing one from the drug's Web site. |
| 2 | 4724 | 2002 | The top online sites are: Expedia.com, Orbitz.com, and hotels.com. These are all growing very quickly. In response Six Continents, a hotel company launched a program under which it guaranteed to beat any price a customer found on other web sites if the guest booked the room with the hotel's online service. Star Wood and Sheraton also set that condition but there is little evidence that these programs have helped draw business. |
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