Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / PACKAGE OF SAME PRODUCT

CHOICE 3 COMPONENT: COMBINATION OF BASES – COMBINE BASES IN ORDER TO USE TWO BASES IN THE VARIABLE CHARGE TO THE BUYER

No.	SIC	Year	Notes
1	4512	2006	In order to generate consistent revenue and foster loyalty, many North American airlines are considering prepaid pass programs. Cathay Pacific Airways offers a 21-day pass that lets you fly between 18 cities in Asia starting at $1299.
2	4522	2006	Leisure and business travelers are turning to private jet programs to serve their needs. Fractional-jet ownership such as Flexjet, Flight Options, Citation-Shares and Netjets provide shares in the network of planes, allowing at least 50 hours of flying time on a plane the customer chooses itself. On Netjets, one sixteenth share of a Hawker 400XP goes for $406,250 and includes 50 hours of annual flying time for the next five years.
3	4812	2005	Cingular Wireless tweaked its popular FamilyTalk plans to gain more users. For $10, a family plan can add an extra line. Two subscribers can share 1,100 minutes for $80 a month; the old plan offered 850 minutes for $70 monthly. Family plans help wireless companies lower customer turnover. Rivals T-Mobile and Verizon Wireless are also lowering fees for extra lines.
4	4813	2004	VOIP is making possible all manner of low or even no cost alternatives to traditional phone service, often with just as good quality. Vonage's rates are low. Its most expensive regular plan is $35 a month, which allows you to make unlimited calls in the U.S.
5	4832	2009	Sirius XM Radio plans to increase prices for subscribers with multiple accounts and begin to charge for its online music feed, moves that may help the pay-radio service meet looming debt payments. Starting March 11, users with more than one account will pay about $9 for additional accounts, up from about $7. Also, subscribers will have to pay about $3 a month for the online version of the service, now free. Users will be able to defer the increases if they sign up for a long-term annual contract extension, or pay up to $500 for a lifetime subscription. They added that there is no plan to change the standard monthly subscription price.
6	4833	1989	NBC changes its affiliate compensation structure to tie 50% of that compensation to the size of the lead-in audience (4 to 8pm non-network programming) the affiliate brings in to the prime time period (8 to 11pm).
7	5900	2006	C&H Clubs began offering a monthly delivery of microbrews to subscribers. Now, customers can switch between product lines, choosing between beer, wine, cigars, flowers and chocolate each month. This business took off and C&H expanded with new division focusing on corporate gift givers.
8	6211	2004	Schwab was already offering the $9.95 rate to active traders using its CT trading platform. Schwab is also cutting the fee for making an automated trade by phone to $29.95 per trade for up to 1,000 shares, plus 3 cents for each additional share. The current commission is 3 cents per share, with an overriding minimum of $49.95
9	7375	2006	Boingo Wireless Internet service offers a variety of usage plans. Boingo Pro costs $24.95 a month for ten Connect Days plus $4.95 for each extra Connect Day. Boingo Unlimited offers unlimited usage for $74.95 a month. Boingo As-You-Go costs $7.95 per Connect Day (24 hours of unlimited use at a time).
10	7375	2008	Some people who sell things on eBay are fed up with the new rules it's been imposing in hopes of making the auction site more attractive to online shoppers. Attempting to cool their tempers, EBay announced Wednesday that US sellers can pay 35 cents to list an unlimited number of identical items at a set price for a month at a time. Previously, fixed-price listing fees could go up to $4 per item and were good for a week. EBay's number of active users is barely rising: in the most recent quarter, the figure rose 1.4% to 84.5 million.
11	7841	2002	Blockbuster has responded to Netflix's successful subscription model by introducting three price points of its own. For $19.99 a month consumers can rent an unlimited number of DVDs but only two at a time, for up to a month. Customers must return DVD's before they can rent more and they must also keep paying the subscription fee in order to avoid late charges. At $24.99 a month, the consumer rents an unlimited number of DVDs and keep three at a time. For $59.99 in annual fee the customer would still pay full price for each DVD rental, but they could keep three DVDs for up to a year with no late charges. In comparison, NetFlix's subscription is $19.95 per month for unlimited rentals with a maximum of three checked out at one time.

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