Final Customer Purchasing from an Intermediary of the Product

Use Steps: Use steps include all the Final customer's activities to find the appropriate product category at the Intermediary, to choose among the alternatives to the product and to take delivery of the product.

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

Warnings and advice

No. Year SIC Note
1 2003 0 Customers have moved away from traditional and static channels for several reasons. They are now more likely to research in one location and seek lower prices for the same product in another. First, they have been conditioned to hunt for bargains more aggressively by discounters like Wal-Mart and warehouse clubs. The shopper has become more sophisticated to retail techniques and marketing. Now, holiday shoppers push back their shopping in hopes of last-minute sales. Lastly, with the internet, customers are better equipped with information and technology to make advantageous decisions.
2 1993 5311 Penney's pushed into higher-priced goods and lost out in the recession of 90-91. Since early 80s, Penney is changing to include brighter fashions and brand names.
3 1989 5734 Egghead lost share to Software Spectrum and Corporate Software Inc.(E-head @ 4% growth vs. 30+% for these companies) who both gave big discounts to corporate buyers.
4 2003 5999 According to A.C. Nielsen, unit sales of store-brand goods grew 8.6% during the past two years, Vs 1.5% for national brands. All told, one in five items sold in U.S. stores is now store branded.

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