The Physical State of the Individual Customer

Intermediary Customers Purchasing from the Producer of the Product. Each of these costs represent steps an intermediary or channel customer must take in connection with the product:

Obtain Steps: The Obtain steps include all activities preceding the selling of the product. These activities include the costs of identifying potential suppliers and stocking the product.

1. Physical: Segment customers by physical needs. These segmentations identify the physical needs of individual customers and address the physical situation of the location where the product is purchased or used.

A. Physical state of the individual customer: Segmentation by size