Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: LOSS LEADER SEGMENT / A LOW PRICED PRODUCT TO CREATE MARKET AWARENESS

CHOICE 3 COMPONENT: PROVIDE A REBATE

No. SIC Year Notes
1 7375 2006 Microsoft Corp. announced a plan to pay consumers who buy items they find through the software company, the latest in a series of moves to gain ground on Google Inc. in the lucrative business of Internet search. While similar policies have been fairly unsuccessful for other companies, Microsoft believes it can improve upon the concept by implementing it on a broader scale and by coupling it with new options for advertisers. The program includes products from 700 merchants; consumers who buy items from them after searching for them and clicking on an ad can get a cash rebate via an online Microsoft account they create.
2 7375 2008 Microsoft Corp. announced a plan to pay consumers who buy items they find through the software company, the latest in a series of moves to gain ground on Google Inc. in the lucrative business of Internet search. The Live Search rebates are set as a percentage of the purchase price of an item and vary among merchants. Users can find a 5% rebate on a $60 coffee maker or 2% on a digital camera.

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