Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: RELATIONSHIP RENEWAL SEGMENT

CHOICE 3 COMPONENT: CHANGE THE LIST PRICE

No. SIC Year Notes
1 3599 2007 Intuitive Surgical's S-series robotic surgical system has generated enormous profits for the company. Intuitive has raised prices on its newest models and benefits from sales of replacement parts. Operating on a razor blade model, each system has three or four arms, the tools attached to each arm need to be replaced after every 10 procedures and replacements cost $1,500 to $2,000 for existing customers and $2,000 to $2,500 for new customers.
2 4499 2000 Carnival is working to guarantee repeat customers on its six cruise operators – which range from the mass-market Carnival Cruise Lines to the premium Holland America and luxury Cunard Line. To keep customers coming back to the Carnival family, the company recently introduced discounts from 20% to 50% for past customers to travel on its other cruise lines.

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