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

Reduce price for a comparable product

Package functions for lower cost per function used

No. Year SIC Note
1 1997 4841 Owing to its dominance in the relatively affluent New York suburbs and its history of revenue-maximizing program packaging, CVC has long generated the highest monthly per subscriber revenues in the cable industry.
2 2000 5045 Delta will subsidize PeoplePC service which normally sells for $25 a month. PeoplePC stands to benefit because it pools its customers into a buying club that can negotiate discounts on Internet goods and services where PeoplePC gets a cut of such transactions.
3 2001 6141 Capital One added superprime customers three years ago, attracting them with frequent-flier miles. The company has found safe bets that spend enough to compensate for the demographic's tendency not to pay late fees.
4 2002 7841 Blockbuster has 8000 stores and is testing an instore version of the Netflix service called Freedom Pass. Freedom Pass would allow customers to have 2 or 3 disks out at a time on a subscription basis and is expected to cost $25 a month. But Freedom Pass does not include delivery or a comparable selection.

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