Final Customer Buying 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.

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

A. Needs for comfort and status

2. Status in the community

Need for affiliation: Find segments of customers who wish to identify with a particular group in the society. They want to be a part of a group that has:
Distinctive style or appearance: Quality conscious:
About personal transportation

No. SIC Year Note
1 3711 1990 Saab is trying to avoid its image as a luxury car. It doesn't want to compete with luxury cars. The company just hired a new advertising firm to redefine its image. Volvo also eschews the luxury label ("upscale high-quality family car.")
2 3711 1998 "It seems like everyone and his brother has a Jeep. I wanted to break away from the pack.” says one customer of Lexus. Some 65% of RX 300 buyers haven't owned a Lexus before.
3 3711 2002 The newest segment of the luxury automobile market is the lower-end sedan market. Competitors include Cadillac, Infiniti, Audi, Jaguar, and BMW, whose lower priced models are evolving with heated seats, premium stereos, plush leather, fast engines and performance-driving equipment.
4 3990 1990 Cannondale won't move production overseas where labor is cheaper: First, industry people say the Taiwanese plants that make frames for Trek and Specialized haven't matched Cannondale's techniques. Second, foreign customers want bikes "made in U.S."

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