Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / VOLUME DISCOUNT DOLLAR AMOUNT BASED ON REACHING STATED PURCHASE TARGETS

CHOICE 3 COMPONENT: EXTEND A DISCOUNT IN KIND

No. SIC Year Notes
1 7832 1997 A movie theater chain issues a card valid for one month. The customer pays most for the first visit during the month … less for the second … still less for the third. Chain's profits up 40%.
2 7841 1998 Warner is shipping 20% more copies free to video retailers who order hefty minimum quantities.

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