Final Customer Purchasing from Producer of Product

We organize the innovation examples according to the costs the customer incurs. Final or end-user customers incur four cost steps in connection with the product sold by a producer. The examples are innovation ideas drawn from management teams in many industries where the teams sought to reduce these customer costs.

Using the following thought outline, we suggest you conduct your innovation for new ideas to reduce the costs your customers incur with the current product.

  1. ACQUIRE: Acquire steps include all activities the customer completes preceding the use or the consumption of the product. These steps include the customer's efforts needed for evaluation and acquisition of the product. Examples >>

  2. USE: 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. Examples >>

  3. MAINTAIN: Maintain steps include all activities required to keep the product in working order. These steps include the costs the customer incurs to diagnose and correct product problems. Examples >>

  4. DISPOSE: Dispose steps include all activities required to eliminate the product from the customer's premises. These steps include the costs for removal and final disposition of the product. Examples >>

Basic Strategy Guide Users Go To: Step 18

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