Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RETAIN CUSTOMERS

CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ANOTHER LOW-END COMPETITOR

CHOICE 3 COMPONENT: PROVIDE A FREE, OR HEAVILY DISCOUNTED, PRODUCT FROM THE COMPANY, OTHER THAN THE PRODUCT ON SALE

No. SIC Year Notes
1 4512 2007 Last month, American fired back at JetBlue Airways in New York and Boston by giving frequent fliers there a free ticket anywhere American flies, in return for buying two round-trips on American on a route to Florida or California where it competes with JetBlue. Offering the bonus of a free ticket to most anywhere in the world makes American's frequent-flier program powerful, and cost-effective.
2 7372 1991 To counter Microsoft's push, Lotus gave away its $495 Ami Pro word processor for Windows w/ each sale of its high-end 1-2-3.

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