Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: INTRODUCTORY OFFER SEGMENT / DISCOUNT A NEW PRODUCT TO NEW CUSTOMERS
CHOICE 3 COMPONENT: PRODUCT BASED LIST PRICE CHANGE
| No. | SIC | Year | Notes |
| 1 | 3354 | 1993 | Reynolds (new entrant) sold at prices that matched steel can makers'prices (Leaders), but were below its own costs. Reynolds was discounting by offering a superior product at the same price as the steel beverage cans. Reynolds gained share. |
| 2 | 3711 | 1990 | Hyundai had greatly underpriced its Excel to shoot itself into the US market. So it had very small profit margins. |
| 3 | 4813 | 1997 | Pac Bell's new PCS phone has been so popular in the Bay Area that there are waits to buy and connect their phones. Pac Bell's PCS rates start at 20% to 30% below the offerings of the two major cellular carriers in the Bay Area, Cellular One and GTE. It also has resistance to cloning and clearer voice quality. |
| 4 | 7372 | 1991 | When Electronic Arts introduced its first program for Nintendo, there was a software glut. CEO immediately cut prices from $50 to $35 and broke even when competitors took a bath. |
| 5 | 8221 | 1996 | Many state schools are also cutting prices. Massachussets lowered tuition by 5% this year for its 24 schools; Virginia froze tuition at 39 schools through 1998; all 23 CA schools are holding payments at 94-95 levels. Others have limited increases to close to the rate of inflation. |
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