Customer retention vs a one time sale
Companies are always in a bid to grow their market share. To achieve this goal, they resort into some of the following methods. Acquiring their competitors' market share, retaining their existing clients/customers, creating a new target group (expand the market share) which was not served by their product before etc. As a result, extensive research is done into promotion and pricing strategies as a means of meeting the goal. For illustration, I will use the telecommunications industry. You walk into a store to buy a phone - say Samsung A14. The store has both locked and unlocked phones. The store attendant informs you that; Option A: Get the phone at full retail price $219 and pick a service provider of your choice. Let say you get a free simcard from service provider A and their monthly plan fee is $20. Option B: Get the phone for $54 of the total retail price of $219 saving $165 in the process. But this is only if get a locked phone under Service provider B whose monthly p...