Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: PUBLIC RELATIONS SEGMENT
CHOICE 3 COMPONENT: WAIVE, OR MAKE A ONE TIME OR PERIODIC PAYMENT, TO COVER SOME COSTS OF THE CUSTOMER
|Many airlines may give refunds for customers who bought a ticket directly from the airline shortly before the listed price drop. Alaska, JetBlue, Southwest, United and US Airways all offer full price difference. Other airlines deduct change fees. However, passengers seeking a refund have to call while the new price is still in effect.
|Travelers can often find cheaper hotel and airline deals if they wait until later, even up to the last minute. To hedge against future price flops, travelers have a growing number of options from travel websites. Although many domestic airlines charge at least $150 to cancel or change a ticket, Southwest Airlines Co., Alaska Airlines Inc.'s Alaska Airlines and JetBlue, will credit any price drops toward a future ticket.
|Charter One Financial Corp. tested a program that tracks customers who regularly overdraw checking accounts and offers to slash their overdraft penalties by more than half. The aim is to lighten the load of fees and reduce the chance of people losing their banking accounts.
|Bank of America in April introduced fee waivers for customers who have lost their jobs. It will get rid of monthly account maintenance fees for three months and refund or get rid of insufficient funds and overdraft fees on a case-by-case basis. The bank also will soon start a $10 fee for small overdrafts for all customers—a bargain compared with its previous $35 charge.
|Often high fees on money funds reduce their yields to the point that investors in those funds are getting next to nothing on their cash. Often yields are less than 1% due to expenses. In about half of accounts, fees are waived.
|Ticketmaster has started experimenting with the sale of concert tickets without the "convenience" fees that have stoked a consumer backlash. Convenience charges are typically split between Ticketmaster and venue owners, with pieces sometimes going to artists and promoters. The justification is that buying tickets from Ticketmaster is more convenient than a venue box office.
|George Washington University gives more than half its 5500 full-time students discounts in the form of cash grants; just 5 years ago, only one in 7 received grants.
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