Raise Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RAISE PRICE, REDUCE PERFORMANCE AND ITS COST

CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS MAKING HIGHER THAN AVERAGE USE OF CAPACITY

CHOICE 3 COMPONENT: SET LIMITS ON THE USAGE OF THE PRODUCT

No. SIC Year Notes
1 4813 2003 Internet service providers are preparing a series of measures to control the amount of bandwidth people can use. Cox is implementing a tiered-pricing system that will charge heavy users of bandwidth. They hope to reconcile bandwidth needs from two types of customers: hardcore users ($79.95 a month) and modest users ($29.95 a month).
2 7375 2001 United Online plans to continue offering 40 hours of free service a month to users. Those who want more service have to pay. Similarly, Bluelight offers its users 12 hours a month of free Net access. After that it charges $9.95 a month.

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