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

Lead prices down

No. Year SIC Note
1 2003 4899 The Bells are stepping up their fight against rival cable broadband operators, lowering their monthly Digital Subscriber Line broadband-subscriptions rates and gearing up to offer a host of niche features such as downloadable movies and games.
2 2003 5300 Wal-Mart Stores Inc. will launch an online music store as soon as next week, with prices that are expected to be lower than competitors'., the retailer's Internet unit, based in Brisbane, Calif., is teaming with Geneva Media, which in January purchased Liquid Audio's digital-music fulfillment business.'s music store will have about 200,000 song titles available for downloading, and they are expected to cost less than the customary 99 cents a song charged by competitors such as Apple Computer Inc.'s iTunes Music Store.
3 2002 5411 FreshDirect launched a new kind of high-quality food preparation and delivery service. They sell meat, fish, cheese, fresh baked breads, produce and other foods at prices 25% below what most New York grocers charge.
4 1986 7000 Northwestern Business Travel offering cost-plus arrangements to corporate clients. Offers to rebate commissions, instead billing for actual expenses, plus a markup of between 15% and 20%.
5 2004 7841 In February, movie-rental company Blockbuster Inc. said it would launch a competing service to Netflix Inc. that lets customers order DVDs on the Web for delivery by mail. Wal-Mart Stores Inc., which has offered online DVD rentals since June 2003, lowered its price in early November for its competing service to $17.36 from $18.76 for three DVDs rented at a time. Then Inc. earlier this month introduced a rival online DVD rental service for United Kingdom movie fans. Just days after Amazon's announcement, Blockbuster said Jan. 1 it would eliminate late fees for videos rented in its stores, which was one of the primary incentives for consumers to join Netflix. Netflix customers can order DVD movies for rent on the company's Web site and those movies will be delivered to their house by mail. To rent three movies at a time, customers pay $17.99 monthly. They can keep the movies for as long as they like without the risk of late-fee charges.

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