Specific Limits on Spending

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
a. Specific limits on spending

NO.	INDUSTRY SIC	YEAR	EXAMPLE
1	5900	2005	Price Chopper delivers value through promotions. It tries to craft promotions with a theme to bring excitement into the stores in addition to low prices such as a 99-cent aisle and a buy-one-get-one free sale.
2	5621	2001	Chico's uses comfortable, colorful, and easy-to-care-for fabrics in their basic and versatile garments, which are moderately priced.
3	0	2003	Customers have moved away from traditional and static channels for several reasons. They are now more likely to research in one location and seek lower prices for the same product in another. First, they have been conditioned to hunt for bargains more aggressively by discounters like Wal-Mart and warehouse clubs. The shopper has become more sophisticated to retail techniques and marketing. Now, holiday shoppers push back their shopping in hopes of last-minute sales. Lastly, with the internet, customers are better equipped with information and technology to make advantageous decisions.
4	5731	2002	Rent-A-Center Inc. offers electronics, appliances, computers, furniture and accessories under rent-to-own agreements. The company owns and runs 2,281 stores in 50 states and franchises 341 more through subsidiary ColorTyme. They have more than $1.8 billion in annual sales.
5	5411	2004	Closer to downtown, HEB's stores face more competition for lower-income customers. There, HEB has found that pricing products by the piece, instead of by the pound, produces better sales from buyers who come in with just $20 in their hands.
6	7822	2004	Netflix is gearing up for the entry of Amazon.com in the already competitive online DVD rental business. Netflix is reducing prices to add subscribers to its 2.2 million total. The service requires customers to pay a monthly subscription fee to create a personal account and request DVDs online. Customers can keep the DVDs as long as they want and return it to receive the next item on the list. Wal-Mart and Blockbuster entered the market in 2002 and Netflix paid little attention. However, the possible entry of internet giant Amazon has convinced the company to lower prices; the company is popular with internet users and will advertise to those customers without having to work to gain new clients. Netflix may weather the storm because of its experience in the distribution and marketing of the service it pioneered.
7	7375	2000	Kmart unveiled its free web service, Bluelight.com, only four months ago and has already signed up 1.3 million users. Everyday it adds another 20,000 more users.
8	5999	1989	Price-matching policies actually give merchants "a way to keep prices a little higher for the loyal customers while giving a lower price" to new customers (comparison shoppers) the store is trying to attract.
9	7832	1992	Mitchell built more dollar houses and now owns 358 screens in multiplexes across the US. He puts the theaters in lower-rent districts and in the less-expensive suburban malls. The cheap tickets attract plenty of customers, many of whom buy high-margin treats at the movies.