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
Higher price point

For more function

No.	SIC	Year	Note
1	3571	1985	The boldest risk that a company can take in times of economic downturn is to spend boldly on radical new technologies or manufacturing techniques without a guaranteed market. Compaq Computer did just that in 1985, spending heavily on PCs with the more powerful 386 chip. This bold move ended IBM's domination of the PC market and put Compaq at the head of the pack until the rise of Dell Computer.
2	3571	2001	Compaq's iPaq Pocket PC has become a huge success, stealing market share from rival Palm. One key to this success is the capacity and capability of the iPaq. It can handle more complex corporate applications and has more memory than the Palm, making it a hit in the corporate market.
3	3571	2003	Due to the success of a Falcon Northwest, a small company that carved out a lucrative niche selling super-fast personal computers, Dell announced its own PC for gamers. Gateway did the same last month, and Hewlett-Packard is testing out the waters as it gets ready to start a pilot program this fall. Intel said it will start shipping a microprocessor for gaming PCs in the fourth quarter. Advance Micro Devices is already shipping its own chip for gamers.
4	3571	2004	PalmOne announced a new handheld, the Tungsten T5, which comes with 256 megabytes of flash memory. The T5 will be able to double as a USB flash memory drive, allowing people to carry their work from the office to home and back.
5	3571	2004	Mainframe computers, replaced by the midrange servers of Sun Microsystems and Compaq, are once again gaining popularity after being dismissed as boring and overpriced in the 1990's. IBM set out to address common complaints. The company shifted from supercomputer-like bipolar logic chips to the more common CMOS processor and cut prices.
6	3699	2005	In 2005, Microsoft unveiled the Xbox 360. It will run 10 to 20 times faster than the old Xbox, thanks to a three-core 3.2 gigahertz chip from IBM. Sony leaked news about its PlayStation 3 in response. The system will run on a seven-core 3.2 gigahertz Cell processor from IBM and Toshiba and will sport a floating point performance of 2 teraflops.
7	3711	2005	In response to falling sales and profits, especially in the SUV divisions, Detroit's auto makers are trying very different tactics. Ford hopes to cut its development costs enough to make respectable profits on a new generation of cars and crossovers. General Motors is relying on a rebound in SUV sales for 2006. The company delayed work on a line of rear-wheel drive cars and will relaunch its largest SUVs with better gas mileage and a better ride. The company relies on buyers to be uninhibited by high gas prices.
8	3716	2003	RV makers are remodeling the motor homes with home-theater systems, washers/dryers, high speed Net-access, global satellite mapping and more. Customers pay between $100,000 to $500,000. The RVs have cameras that help watch the road and hard-to-see areas while backing up and electronic sensors that keep tabs on everything from engine temperature to tire pressure. Once the vehicle is parked the walls can be expanded to match the size of a small hotel suite.
9	4011	2002	Union Pacific has started charging its rail freight customer as much as 40% extra, comparable to trucking charges, for faster delivery on shipments from Los Angeles to Atlanta.
10	4813	2004	Verizon and other Bells are investing billions to run fiber-optic lines into homes and offices.

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