Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: PERFORMANCE PERCEPTION SEGMENT / A BRAND WITH PERFORMANCE (I.E., FUNCTION, RELIABILITY AND CONVENIENCE) AT THE LOWER END OF THE BRAND CATEGORY
CHOICE 3 COMPONENT: MAKE MORE THAN ONE CHANGE IN FUNCTION, RELIABILITY AND CONVENIENCE BENEFITS, ALONG WITH THE PRICE CHANGE
| No. | SIC | Year | Notes |
| 1 | 4512 | 1992 | Braniff airlines charges its passengers $100 or so less than its larger competitors, but has few daily departures with a fleet of only 10 planes. |
| 2 | 7372 | 2002 | The Internet landscape is changing as more and more people are changing to broadband. Broadband users are expected to triple to 32 million between 2002 and 2005. AOL must convince its users to stay with it if they choose to switch. Unfortunately, AOL has done little to sign up customers for broadband access. Microsoft, however, began offering MSN nationwide via broadband in June. Its price is $39.95 a month compared to AOL's $44.95. MSN will also start to be packaged with broadband offerings from Verizon and Qwest. |
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