Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ESTABLISHED STANDARD LEADER / AGAINST A TOP TIER STANDARD LEADER

CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE

No. SIC Year Notes
1 4813 1996 AT&T is drafting an aggressive flat-rate offer for all local, long-distance and in-state "toll" calls, regardless of time of day, or weekday or weekend. People close to the company say the rate could be as low as 15 cents a minute.
2 7011 1992 Ski resorts (Northstar; Winter Park Resort; Mount Bachelor) are offering flexible pricing: charging for the number of runs, by the hour, and offering locals discounts to gain and retain customers.
3 7375 1994 AOL leading price cuts–$9.95 for 5 hours and $2.95/hr after, versus Prodigy $14.95 for unlimited use. AOL also matched Prodigy's hourly rate, dropping from $3.50 to $2.95. At this stage AOL was the newer competitor into the market.

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