Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: PERFORMANCE PERCEPTION SEGMENT / A RELATIVELY LITTLE KNOWN BRAND

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

No. SIC Year Notes
1 4841 1997 Cox launched its first residential cable telephony service, called Cox Digital Telephone, in mid-September in Orange County. Pricing for this service is also compelling: the first line is priced at $9.99 versus PacBell's $11.25, a second line is just $4.99 versus PacBell's roughly $11.35, advanced features are 28% lower, and, at least initially, installation is free.

<< Return to Choice 3