Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: REWARD CUSTOMERS
CHOICE 2 SEGMENTS: LOW DEMAND PERIOD SEGMENT / SEASONAL SLOW TIMES FOR THE COMPANY
CHOICE 3 COMPONENT: WAIVE FEES OR MAKE A ONE TIME OR PERIODIC PAYMENT
| No. | SIC | Year | Notes |
| 1 | 4724 | 2008 | Orbitz Worldwide Inc. has launched a policy, called Price Assurance, to reimburse some customers who buy airline tickets and then see the price of those seats fall. The company plans to refund customers the difference in fare, if the difference is between $5 and $250. The new program is part of Orbitz's push to gain U.S. market share against other online travel agents, such as Expedia Inc. and Priceline.com. |
| 2 | 5941 | 2001 | Zane's Cycles in Branford, Connecticut, is a successful independent bicycle retailer in the United States. Customers at Zane's who purchase a bicycle at Zane's within 90 days before the once-a-year sale are encouraged to return during the event for a refund based on the discounted price of their bike. The company refunded about $3,000 during the 2000 sale, but most of that money remained in the store because customers bought more gear. Zane's sold 560 bicycles during the 2000 sale—that's more than the typical one store U.S. bicycle retailer sells in an entire year. The limited duration of the sale means that Zane's sells about 85 percent of its bicycles at the regular price. |
<< Return to Choice 3