Final Customer Buying from the Product Producer
Acquire Steps: 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.
B. Needs to avoid sources of anxiety
3. Economic limitations: Segment customers according to the limitations set by their economic interests and concerns
Segment's approaches to limit on spending
Customer segments with preferences for price point alternatives to the present product
Lower price piont
With less Function – The price point would have:
|North Face outdoor gear manufacturer and retailer increased the lines of its less expensive casual wear in apparel in order to reach a broader target audience, one that includes more women.
|In 1994, Wyse Technology Inc. designed a new computing device that would be part PC, part terminal. The new product would run on a microprocessor but it would lack the pricey disk drive.
|The best screens are made with technology called TFT, and most laptops today have them. The low priced models have a cheaper, less vivid screen technology called dual-scan, or HPA.
|Gateway Inc. holds only 5.6% of the U.S. market. To help the company grow, the CEO is making a case to prospective Apple shoppers by marketing Gateway as the cheaper alternative. Gateway's new product is a flat screened Profile 4 which resembles Apple's iMacs but is $400 cheaper. The new Gateway doesn't have enough features to win over Apple loyalists but it could lure some small niche of PC users contemplating buying a Mac.
|While competitors designed their PCs with special bells and whistles and filled warehouses with them, Dell bought components off the shelf and built the computers to customers' orders, reducing overhead and keeping prices low.
|For years, the server market has been shifting to the "Chicken McNuggets" approach to technology, that all parts are the same. Servers are increasingly seen as commodities, with price being the only selling point.
|Motorola is emphasizing high style in one new product, an ultrathin model called Slvr. It hopes Slvr will replicate the success of its Razr folding phone. The U.S. version of Slvr is for consumers who might spend $150 on a phone rather than the $300 for a Razr.
|Many restaurants have responded to tighter purse strings by offering lower-cost menu items and prix fixed meals to court cost conscious customers.
|Rising customer expectations created a proliferation of new insurance products and more product complexity and cost. As this happened, specialized niche players developed products with lower premiums and faster handling of policies.
|Chubb Group is offering a separate vacation home policy that can lower premium costs. It adjusts for differences in the way people use their first & second houses.
<<Return to Acquire Steps