Final Customer Purchasing from the Product Producer

Use Steps: 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.

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.

B. Reduce the customer's spending on people, purchases or capital costs the customer uses with the product itself

Purchase costs used with the product itself
Reduce purchases of items used with the product itself

Add value to product to reduce net purchase cost

No. SIC Year Note
1 3571 2000 The PC market is expected to plateau in sales as more and more consumers turn away from them and towards today's variety of handheld computers. Gateway is addressing the new change by concentrating on "beyond the box" revenues: software, training classes, financing, Internet services, anything that can be packaged with a PC to boost sales.
2 3585 1988 Carnegie-Mellon developing air-conditioner for cars that is more environmentally safe – expected to be more costly and larger than existing auto units, but it's powered by heat given off by a car's engine. Should eat up about 3 miles/gallon less.
3 3669 2003 With such gear as the IP phone, these companies promise, corporate network users can conduct instant desktop video-conferencing sessions, turn their laptops into portable offices, or surf scaled-down Web pages on phones with displays.
4 4512 2005 Major airlines are attempting to target executives, making private jet travel more available to their customers by creating deals with large private jet operators to offer connecting flights, frequent-flier miles and VIP services.
5 4512 2004 In the 1980s new airlines such as People Express Airlines had emerged offering cheap fares. However, American Airlines invented the frequent flier plan to counter the competition. American and United both built centralized reservations systems that favored their own flights over others. By working closely with travel agents the big airlines got the biggest share of the corporate business.
6 5812 2003 Starbucks will be releasing a Visa card that features a reloadable stored value Starbucks cards and works like a debit card. Each time the card is used the customer amasses rebates that can be spent at outlets in North America. Starbucks can thus pick up sales as consumers earn rewards to spend at the stores. 11 million cards have been activated since 2001 and 11% of store transactions are through the card.
7 6141 2005 To take advantage of the news that consumer spending was increasing, American Express sharply ramped up promotions and reward programs for the holders of its cards.
8 6141 2004 A core group of customers kept the card because the card allowed them to exchange Diners Club rewards points for miles with any major U.S. airline, something you cannot do with American Express Co.'s credit card.
9 7011 2004 Many hotel chains are also allowing guests to earn points through spending at certain restaurants and car rental chains and to exchange points for everything from Tumi luggage to gift certificates at Best Buy.
10 7011 2004 There are some important differences between the different hotels' customer loyalty programs. Hilton lets you earn both points in the Hhonors program and frequent-flier miles on an airline of your choice based on the same hotel stay. Other companies, such as Starwood Hotels & Resorts Worldwide have no blackout days, so if a room is available its yours for points.
11 7372 2002 MSN 8 is due out soon, and it offers better and more innovations than AOL for the first time. It has photo editing, the Encarta digital encyclopedia, better parental controls, and junk e-mail filters.

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