Reduce Price to Improve Revenues and Margins

CHOICE 3: USE COMPONENTS OF PRICE TO FURTHER LIMIT THE SPREAD OF THE LOWER PRICE

D. Change the Optional Components of Price

Provide a free or heavily discounted product from a third party

No. SIC Year Notes
1 2721 1989 Time magazine tempts potential subscribers w/ gadgets: calculators, clocks, telephones at a cost of $125m since 1983. Newsweek gave this up and instead slashed subscription prices.
2 3571 1999 In February, Free PC jolted the computer industry when it said it would give away sub $1000 PC's made by the Compaq Computer Corp. that came with free internet to people who agreed to share personal data and be exposed to targeted advertising.
3 4812 2003 Verizon offers its customers a Worry Free Guarantee. One feature is "New Every Two" which allows the subscriber to get a new phone or a $100 credit towards a new digital phone.
4 5900 2006 While many retailers cut free shipping offers or made them subject to restrictions, Gap Inc offered free shipping vouchers to anyone who registered their email address with the retailer before Thanksgiving. Vermont Teddy Bear offered a similar program.
5 7941 2008 The New Jersey Nets are giving a 10% rebate to new season-ticket buyers—in the form of a gas card.

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