Final Customer Purchasing from the Product Producer

Use Steps: Use steps include all the customer's value added activities or the consumption of the product itself. These steps include all the costs the customer incurs in employing the product in its intended use.

2. Emotional: Segment customers according to the personal emotional needs of the segment.

B. Needs to avoid sources of anxiety

3. Economic limitations: Segment customers according to the limitations set by their economic interests and concerns

Segment's approaches to limit on spending
Segments who might face psychological spending limits

Specific limits on spending

No.	SIC	Year	Note
1	2711	2000	AmericanGreetings.com is the fastest growing and second largest provider of electronic greetings. Through exclusive partnerships with AOL, Lycos, and Yahoo the company reaches 81% of all Web users. The company is the only online greetings site offering interactive games and comics as well as free Web-based software for making customized paper greetings that are printable at home.
2	3571	2000	Competing with Dell Computer's speedier and cheaper direct-sales model, Compaq Computer, Hewlett-Packard and IBM started to cut out the middleman wherever they could. In May 1999 Compaq dropped all but 4 of its 39 distributors at a time when only 20% of sales were direct. Today it's aiming for 60%.
3	3577	1998	No matter how cool the products, tech companies that don't stay on the cutting edge are doomed. For example, Silicon Graphics was hot in 1993 but lost out to cheaper microprocessors and inroads made by Microsoft's Window's NT.
4	3651	1992	Mass merchandisers are increasing electronics sales by selling no-frills electronics gear. Increased sales are attributed to updated styling, including new big-screen sets that sit on pedestals, and easy-to-use programming consoles.
5	3674	2000	The semiconductor manufacturing standard leaders hold on to some of their old chips because there is demand for them in industries using less sophisticated devices. Older chips use less power and are considerably cheaper.
6	3711	2001	The South Koreans are introducing new products to tap new markets. Kia will introduce the Rio station wagon priced at $8900 for working mothers. It is the lowest priced station wagon on the market.
7	4213	2004	Cablevision became one of the first cable companies to offer a VOIP service, which it calls Optimum Voice. For now, the service's prime attraction is price: only $34.95 a month for unlimited calling in the US and Canada. Optimum Voice lacks the reliability and many of the features offered by Verizon. Comcast, the country's largest cable company, isn't planning a broad launch of its VOIP service until 2005. But when it does, it plans to offer features beyond the reach of phone companies.
8	4812	2002	Prepaid phone plans which are popular in Europe but have made little headway in the U.S. are designed to appeal to adolescent subscribers and their parents.
9	4813	1999	Leap's customers travel less than highly paid workers, so long distance wasn't a crucial feature of the service. Leap saved millions by limiting its cell sites to urban areas and avoiding costly roaming agreements with other carriers.
10	7011	1992	Ski resorts (Northstar; Winter Park Resort; Mount Bachelor) are offering flexible pricing: charging for the number of runs, by the hour, and offering locals discounts to gain and retain customers.
11	7372	1998	Borland International Inc. diversified from programming languages and other tools to mainstream personal computer programs such as databases and spreadsheets. In doing so the company collided with Microsoft, which thus responded with drastic price reductions and bundling arrangements. The company sales which peaked at $482.5 million in 1991, fell to $174 million for the most recent 12 months.
12	7372	1998	Over 7 million people have downloaded some type of Linux product. Linux fans like to use the software for smaller jobs in their company, without telling higher-ups.
13	7374	2000	Big companies have budgets to hire IT specialists to run their systems, or to turn over their systems to a consulting operation such as EDS. CenterBeam is one of a handful of "managed service providers" who offer this service to small and medium sized companies.

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