Final Customer Purchasing from an Intermediary of the Product

Acquire Steps: Acquire steps include all activities the customer completes preceding the purchase of the product. These steps include the customer's efforts needed to identify and evaluate Intermediaries and travel to the Intermediary location.

Resources: Reduce resources required for the use of the product

Money: Reduce the money the customer uses with the product. For more ideas on using pricing, please see the Improve/Pricing section of StrategyStreet.

A. Reduce the level of payment for use of the product.

Substitute lower cost benefits for higher cost benefits

Substitute low cost convenience for high cost convenience

No. Year SIC Note
1 2003 4512 Orbitz's fees for airlines are sharply lower in part because it directly connects to the airline's booking system, cutting out middlemen fees.
2 1998 6021 A niche was made out of cutting costs on a thrift, as a branchless bank was developed (Telebanc). Customers are serviced only through automated teller machines, the Net, the phone, and mail. The company recently merged with Direct Financial Corp.
3 2000 6021 Salem Five customers generally must give up the personal touch doing their business online and foregoing branch visits. In return, they get higher interest rates on checking and other services and better account terms.

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