Sensitivity to the Price of a Component of the Product

A Final customer buying from an intermediary of the product The Final customer is the one who makes the final decision on what product to buy and from which supplier to buy it. Most consumer products, and many industrial products, reach Final customers through Intermediaries.

Use Steps: Use steps include all the Final customer's activities to find the appropriate product category at the Intermediary, to choose among the alternatives to the product and to take delivery of the product.

2. Emotional:

B. Needs to avoid sources of anxiety
3. Economic limitations: Segment customers according to the limitations set by their economic interests and concerns
b. Segment's approaches to limit on spending
2. Segments who might face psychological spending limits
d. Sensitivity to the price of a component of the product




1 6141 2004 The Costco co-branded American Express Platinum Cash Rebate card grants customers a cash-back bonus on purchases made at Costco and elsewhere. And it doubles as a membership card for the warehouse store chain, giving consumers a reason to always keep it handy.
2 5092 2000 has spent $21 million over the past year on advertising and the company has gotten a visibility boost from its alliance with, which owns 30% of the company. However there is one problem, the financial results are dismal. To grab market share the company is offering shipping to the East Coast well below costs. This has helped boost sales to an annual rate of $20 million.
3 5999 2002 Overstock attracts customers with its standard shipping fee of $2.95 on each order. Amazon charges shipping on all orders under $25.
4 6021 1989 Union Planters launched a new account designed for the "thirty-something" crowd with services that include a credit card and line of credit with no annual fees, and a full percentage point off on installment loans.
5 5812 1991 McDonald's lowered prices only on its cheapest menu item while maintaining the regular price of its more expensive items. The new low price of its most basic fare keeps price-sensitive buyers coming in. But most pay more for bigger items.
6 5411 2003 Wegmans new stores are 130,000 square feet. In April 2002, Wegmans switched to "consistent, low prices", from underpricing milk and eggs to attract customers. The strategy initially caused sales to fall by 1.3% in seven months.
7 5411 2002 The National Association of Convenience Stores says that 75% of consumers would switch retailers to save 7 cents a gallon or about a $1.05 on a 15 gallon tank.
8 4800 1987 It costs 22 cents to mail a local letter, but a fax sent from one SF office to another goes for free over local telephone lines. The recipient pays only 5 cents a page for specially coated fax paper.
9 5961 1995 A few mail order catalogs are temporarily eliminating shipping charges to motivate early Christmas shopping. Sara Lee's Coach unit is offering free shipping and handling on holiday orders, waiving the usual $6.50 charge. Brookstone is testing two methods. Some customers get free shipping while others are charged a flat $5 fee, regardless of the size of the order. Lands' End is offering free delivery of additional purchases to shoppers who pay standard shipping to the first address on their gift list. L. L. Bean is offering some customers free shipping on orders placed by Nov. 19.
10 7011 1988 At Alpine Meadows, Badger Pass, and Donner Ski Ranch, skiers over 70 can ski free any time during the season.
11 7011 1988 At Mt. Reba, parents can get free lodging and skiing for children 12 and under when staying midweek in a Bear Valley hotel room, condo or home rental.
12 6021 1985 Although many banks charge $10 for each bounced check, surveys by the Bank Administration Institute indicate that it costs only 34 cents to 50 cents to process one.