Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: PERFORMANCE PERCEPTION SEGMENT

CHOICE 3 COMPONENT: EXTEND A PAYMENT TERM

No. SIC Year Notes
1 3571 1998 Gateway's new program, Your Ware, offers PCs for monthly fees of as little as $50.
2 3711 1988 In March, Yugo raised the price of its car 3.6% or $150. In April, the company began offering a $500 rebate, and in August the company offered to finance buyers who put as little as 5% down.
3 3711 2005 In response to declining sales, the Big 3 American automakers have all increased their incentives. In July of 2005, the average discount per unit reached $4,011 for General Motors, Ford and Chrysler. These incentives include cash back deals, artificially low financing rates, leasing incentives and other enticements.

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