Final Customer Purchasing from an Intermediary of the Product

Acquire Steps: Acquire steps include all activities the customer completes preceding the purchase of the product. These steps include the customer's efforts needed to identify and evaluate Intermediaries and travel to the Intermediary location.

Resources: Reduce resources required for the use of the product

Money: Reduce the money the customer uses with the product. For more ideas on using pricing, please see the Improve/Pricing section of StrategyStreet.

A. Reduce the level of payment for use of the product.

Reduce price for a comparable product

Package functions for lower cost per function used

No. Year SIC Note
1 2002 4800 Microsoft is launching a new advertising campaign to persuade America Online customers to switch to their Internet service, Microsoft Network. MSN will offer $50 rebates and a month's free service with a 12-month contract for those who change from AOL.
2 2004 4899 As voice over internet protocol expands, phone and cable companies are hurrying to develop capacity. Cable operators are at an advantage as they can offer cable TV in addition to VOIP and internet access.
3 2002 5900 Travel agencies are competing with one another for the lowest prices. Sunflower Travel began focusing on packaged tours in the South Pacific. Sunflower established a strong relationship with a wholesaler who works in Australia and New Zealand, and began promoting packaged tours. It made certain that the New Zealand Tourist Office in NY had a link to its site.
4 2000 6211 Merrill Lynch's online Unlimited Advantage program offers investors trading, research and advisors for a flat, asset-based fee. Over a certain volume, it starts to cost less than the old per-transaction commission. It took Merrill Lynch so long to roll out the product partially because it took a long time for them to convince their brokers they were better off cannibalizing themselves than watching the business walk out the door.
5 2000 6211 The National Discount Brokers offers a speedy and streamlined interface for investors. Traders have full access to accounts and order entry on one simple screen. The website offers Trader Advantage, and the customer is charged only a single commission for multiple trades of the same stock on the same side of the market on the same day. This company is known to be very attentive to its customers.
6 2001 7379 Storage Networks provides storage outsourcing by maintaining off site storage "farms" where they lease space to customers.

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