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

Reduce price of component

No. Year SIC Note
1 1991 5411 Safeway has a deal where if you bring in your manufacturers' coupons they will double your savings instantly. So if you have a $1 off coupon, you get $2 off. There are some restrictions to products covered; there's a maximum one dollar additional savings, and there are no cash refunds.
2 2001 5621 Chico's has created good customer relations with their Passport Club which offers a permanent 5% discount for $500 spent, which has encouraged their Club members, about half of their total sales, without affecting margins.
3 1995 5961 A few mail order catalogs are temporarily eliminating shipping charges to motivate early Christmas shopping. Sara Lee's Coach unit is offering free shipping and handling on holiday orders, waiving the usual $6.50 charge. Brookstone is testing two methods. Some customers get free shipping while others are charged a flat $5 fee, regardless of the size of the order. Lands' End is offering free delivery of additional purchases to shoppers who pay standard shipping to the first address on their gift list. L. L. Bean is offering some customers free shipping on orders placed by Nov. 19.
4 2002 5999 Overstock attracts customers with its standard shipping fee of $2.95 on each order. Amazon charges shipping on all orders under $25.
5 2004 6141 The Costco co-branded American Express Platinum Cash Rebate card grants customers a cash-back bonus on purchases made at Costco and elsewhere. And it doubles as a membership card for the warehouse store chain, giving consumers a reason to always keep it handy.

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