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:

Other function

No. SIC Year Note
1 2084 2003 France's Bordeaux and Burgundy regions remain world champions in the high-end segment of wine, where prices start at $12 a bottle. But these account for only about 5% by volume of all wines sold. A group of producers known as the "New World"-Australia, California, Chile, South Africa, Argentina and New Zealand-is eating France's lunch in the much larger low and middle segments, which accounted for around 90% of the $100 billion global wine market. France's share of the global export market fell to 23% last year from 32% a decade ago, while the New World producers' share rose to 20% from 6%.
2 3500 2002 Terex's strategy is based on the idea that customers are more interested in the capability and price of the equipment instead of the innovations. Therefore, Terex produces no-frills machinery and sells it at lower prices than rivals.
3 3571 2000 In 2000, New Internet Computer (NIC) Company introduced its new Internet computer priced at $200 without a monitor. The NIC is an Internet appliance that will browse the Internet and send and receive e-mail.
4 3612 1995 ABB found that naked solutions enabled it to charge less for power equipment & heavy industrial equipment than for the standard package. This helped it gain the business of companies who then often agreed to trade up by buying optional services.
5 3861 2000 Polaroid's instant camera sales doubled last year to 9.7 million from 4.7 million in 1998. The growth is coming from a new line of inexpensive and trendy cameras aimed at the youth market.
6 7372 2000 The software makers do have some significant advantages over ASPs. Large corporations have spent millions customizing the products of the software makers while the ASP wants to sell a One Size Fits All package which scales quickly and easily.

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