Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: PRODUCT SYSTEM COMPONENT SEGMENT / SERVICE PAYMENTS

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

No.	SIC	Year	Notes
1	3577	1988	Kodak offers a 9 month free service contract.
2	4812	1998	Omnipoint Corp. recently launched a "no monthly fee" prepaid cellular phone service.
3	5942	2002	Early this year, Amazon waived delivery charges on orders $99 and above. Later, the company dropped the minimum order size to $49, then to $25–about the price of two hardback books or CDs.
4	6021	1997	Commerce Bancshares Inc. offers free checking to try to lure customers from NationsBank, a fee-assessor that moved into the area.
5	7372	2005	Microsoft Corp. said it will begin offering free software for combating "spyware" and viruses, responding to concerns about security flaws in its products but sending jitters through other makers of antivirus software. Last year, Microsoft acquired Giant Company Software Inc., a small NY maker of the antispyware product. These moves rattle traditional sellers of security software, like Symantec and McAfee.
6	7991	2009	Health clubs are another area where people have added services. On average, membership costs have fallen- to about $402 a year in 2007 from $422 in 2003. But overall health-club revenue was up, largely because members were buying more services, including personal training, massages and nutrition counseling.

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