Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / VOLUME DISCOUNT OF PERCENTAGE OF VALUE OF PURCHASES OVER TIME

CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE

No. SIC Year Notes
1 4011 1997 Deutsche Bahn (a railroad) introduced BahnCard. It costs $300/year, and earns customers a 50% discount on each trip. (Volume and profits up.)
2 4813 1990 To cut business long-distance bills by up to 20%, Mid-Com & other aggregators combine the phone traffic of many businesses so they appear as a single customer & therefore qualify for maximum discounts AT&T and others give to their biggest customers.

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