Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: INTRODUCTORY OFFER SEGMENT / DISCOUNT AN EXISTING PRODUCT TO NEW CUSTOMERS

CHOICE 3 COMPONENT: PROVIDE A REBATE

No. SIC Year Notes
1 4813 1995 Since last year, AT&T has been sending out $25 to $75 checks to encourage people to switch their long-distance carrier.
2 6141 2004 American Express is now taking applications for the newest version of the cash-back card it issues with Costco Wholesale Corp. The new card offers a 3% rebate on all restaurant and takeout purchases; 2% back on spending with travel companies; and 1% on all other purchases. Only Costco members are eligible to apply for the card, which has no annual fee except for the one they must pay to join or maintain membership at the warehouse club. Memberships generally start at $45 a year. The original AmEx-Costco credit card also gives cash back, but the refund for that card is based solely on how much money cardholders spend, not where they spend it.

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