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.

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

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 point
With less Function- The lower price point would have:

Less style, speed or power

No. SIC Year Note
1 2084 2001 By producing a sweeter, less harsh wine, the Sutter Home Winery was able to increase its sales and keep its prices low, despite critics who labeled the wine as unsophisticated.
2 3571 2000 The early Palm succeeded with corporate users and technophiles because it was a simple way to keep track of addresses, phone numbers, appointments, and able to send a data back up to a personal computer.
3 3571 2000 AOL and Sears have developed a partnership to work together to develop new home Net appliances. "Rather than give full Internet functionality, the solution is to just give customers the ability to do their most frequently used activities."
4 3571 2002 Thin client devices are cheaper to buy and maintain than PCs. The stripped down systems off load data processing storage and applications to server computers. Thin clients grew 21% last year while PC shipments fell 4%.
5 3571 2002 Thin clients are best for simple chores such as filling out forms and surfing the web.
6 3577 2000 Netpliance has a device called the I-Opener. Its target market are non-technical people who want to have a simple inexpensive device to connect them to the internet without a personal computer.
7 3944 2004 Jakks Pacific is the market leader in a new category it helped create- cheap, all-in-one game machines that you simply plug into a TV to play.
8 4513 2003 Airborne Express and FedEx are both boosting ground services to cut into UPS' near monopoly. This is a great strategy as the economy is so low that many companies are looking for cheaper ways to deliver packages (ground is less than air).

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