Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVES: ATTRACT CUSTOMERS
CHOICE 2 ISOLATE SEGMENTS: PERFORMANCE PERCEPTION SEGMENT
CHOICE 3 COMPONENT: PROVIDE A REBATE
| No. | SIC | Year | Notes |
| 1 | 3577 | 2002 | Distributors and manufacturers are offering discounts and special promotions to move cell phone and handheld computer combos off of the shelves and into briefcases. Samsung also offers rebates of $50 to $100 on its SPH-1300 model that is sold through Sprint PCS. Earlier sales of similar devices were disappointing as customers rejected clunky design and high prices and service fees. |
| 2 | 3711 | 1988 | Hyundai is offering $500 rebates on its four-and five-door models, after slow sales. Sales are still slow though. |
| 3 | 3711 | 1989 | Hyundai announced rebates of up to $1000 as sales are running 35% below a year ago. |
| 4 | 3711 | 1990 | GM doubled the cash rebate on its 1990 Oldsmobile Cutlass Supreme to $2000 from $1000. |
| 5 | 3711 | 1990 | GM announced yesterday its first-ever rebate, $1000 in cash, on its Chevrolet Lumina, Pontiac Trans Sport, and Oldsmobile Silhouette minivans. |
| 6 | 3711 | 1990 | Ford yesterday announced rebates on nearly all of its 1991 models. |
| 7 | 3711 | 1990 | GM recently slapped rebates–first $750 and now $1000–on its less-popular Blazer and Jimmy models. |
| 8 | 3711 | 1997 | Nissan sales improved in January after Nissan started pushing big incentives to counter archrivals Toyota and Honda, which had introduced new models. |
| 9 | 3711 | 1998 | At General Motors, incentive costs rose to an average of $1,305 per car in first quarter, up 52% from a year earlier. |
| 10 | 3711 | 2002 | The Big Three can't even pay people to buy their cars. The combined market share of GM, Ford, and Chrysler fell to 60.7% (an all time low), while incentives rose 26% year-over-year, to more than $2,000 per car. Chrysler even had to give $1,000 rebates on its once-popular PT Cruiser last month. This contrasts with European carmakers, who spent $1,200 per car, and Asians, who spent just $850. It seems that even cash can't beat the attraction of foreign vehicles. |
| 11 | 3711 | 2003 | U.S. automakers are already at a disadvantage in appealing to consumers, having been forced to increase their incentives to 15 percent of sales prices in 2002, twice as high as those offered by foreign competitors. The U.S. market share of the Big Three has slipped over this period as well, by a combined 1.5 percent a year. The need to offer increasingly large incentives to offset the lower resale value of U.S. cars reflects perceived problems with their long-term quality and durability. |
| 12 | 3711 | 2005 | American automakers spend significantly more on incentives than their foreign rivals. In July of 2005 European automakers' incentives for the US market hit $2,562 while Japanese marks reached $1,025 and Korean brands decreased slightly to $1,833. GM led the pack with an average incentive of $4,467 per vehicle. |
| 13 | 3711 | 2005 | Even as they add capacity in big pickups and sport-utility vehicles, the Japanese are piling on hefty discounts in those segments. High gas prices and the popularity of car-based SUVs are turning buyers away from big SUVs. Toyota has slapped an average $3,387 incentive on its Tundra truck. |
| 14 | 7372 | 1986 | Lotus in August cut the list price of its slow-selling Jazz program to $395 from $595, and the company recently began offering a $100 rebate. |
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