Final Customer Purchasing from the Product Producer

Maintain Steps: 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.

Emotional: Segment customers according to the personal emotional needs of the segment.

B. Needs to avoid sources of anxiety

1. Risks in relationship: The customer segment needs reassurance it can trust

Company capability: Company capability that crosses all products
Reliability Leader: The company can be counted on to lead the industry in major aspects of Reliability – Segment interested in being assured that:

Product will work

No. SIC Year Note
1 3448 1997 End-users of Butler's building systems want better surface appearance, flatness, and coating quality. Most international customers and a growing number of domestic customers are seeking ISO 9000-certified suppliers.
2 3571 1992 New Apples come with service agreement–technicians will be sent to homes to fix machines.
3 3674 1998 There have been significant quality differences between Japanese and U.S. Semiconductor products. Users of U.S. and Japanese devices discovered that Japanese memory products had defect rates that were one-half to one-third those of comparable U.S.
4 3711 2001 Lexus's operating principle is to decrease the margin for error by 50%. Lexus systemized its part assembling by putting together processes for everything and allowing modern technological innovations to carry them out.
5 3711 2003 More automakers are offering long warranties to entice buyers and create a reputation for quality. They are more effective marketing in the long-run than large cash rebates for the brand image. Honda and Toyota are able to sell their products for more than competing vehicles because they have a reputation for long-term dependability. Brands are motivated to offer these incentives by different factors. Luxury brands such as Cadillac and Lexus can afford to offer them as they rate well in dependability tests and further reinforce the idea of quality. Hyundai used the warranties to win over customers reluctant to buy an unknown brand. They also improved quality. The move pushed competitors to do the same.
6 3711 2003 With low prices and long warranties, Korea's Hyundai has won over small-car buyers and is now trying to go up the product scale.
7 3751 1988 Harley made big progress since 1981 in decreasing the number of defects per motorcycle. 99% of motorcycles coming off assembly line were defect free in 1986, compared with about 50% in 1981.
8 3951 1991 Less than 2% of Cross pens and pencils are ever returned for repair.
9 4213 1998 United Parcel Service (UPS) will offer money back guarantees on ground shipments.
10 4512 1993 Southwest stripped many of its amenities for lower fares, but still tops all other major airlines in on-time performance.

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