Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: VOLUME PURCHASED SEGMENT

CHOICE 3 COMPONENT: EXTEND A DISCOUNT IN KIND

No. SIC Year Notes
1 2000 1990 Campbell is considering offering five-for-$2 package deals on its soups. Add price point with packaging.
2 3571 1989 To volume purchasers, Apple will give away one computer for free w/ orders of multiple systems ranging from 4 to 11 computers. Only good for certain computers.
3 4489 2003 At the beginning of the war in Iraq, cruise lines were anxious to keep their boats filled to capacity. In order to lure anxious travelers, lines such as Princess and Royal Caribbean offered 2-for-1 and free travel insurance.
4 5600 2008 Retailer Abercrombie & Fitch suffered in November sales, possibly due to their bold tactic to refuse discounting in hopes to protect margins and chic reputation. American Eagle had a buy-one-get-one-half-off sale.
5 5995 1989 A $7MM eyewear chain in SoCal is offering 2nd pair of glasses for $1 to compete with the big chains in the $11B eyewear market, where markups on frames/lenses can exceed 250%.
6 7261 1986 Cemeteries trying unconventional methods to attract business: Cedar Park has Easter-egg hunts, free burials for victims of drunken drivers, pumpkin-decorating contests, and an October special – buy one plot, get one for a penny.
7 7841 1997 Slower business led to decreases in prices, like two rentals for the price of one.
8 7841 1998 Warner is shipping 20% more copies free to video retailers who order hefty minimum quantities.
9 7841 1999 Blockbuster's $9.95 Rewards card offers 12 free rentals (one per month), one free each month when five are rented, and a free Favorites rental with every paid rental Monday through Wednesday.
10 7996 1998 Both Sea World and Universal have "second-day-free" offers.
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. One resort in Wyoming is extending its early-season promotion — a fourth night free — through the end of April.

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