Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: INTRODUCTORY OFFER SEGMENT / DISCOUNT A NEW PRODUCT TO NEW CUSTOMERS

CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY

No. SIC Year Notes
1 4512 1972 Getting Southwest up and running was just the beginning of another saga: the fare wars with Braniff Airlines. At one point Braniff cut the price of its one-way fare from Houston to Dallas from $26 to $13. Lamar Muse came up with the brilliant way to match them. Southwest offered customers a choice: They could pay $13 or they could pay $26 and we'd throw in a free bottle of whiskey.
2 4812 1996 Carriers in several big markets are cutting cellular-phone prices, and even offering them for free. Bell Atlantic-Nynex further cut the price of a cell-phone, already a steal at $40 in early January, to $5 for new customers who sign up before Jan. 31.
3 4813 1991 Sprint offers free clocks, radios, and tie-ins with Hallmark, American Express, Burger King and environmental groups.
4 4813 1995 In April Sprint is expected to offer several months of free cable programming to new customers. Offers a totally different product for signing up (cable time).

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