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 convenience

No.	SIC	Year	Note
1	2752	1989	Merrill has focused on the less time-sensitive business of mutual fund printing and low-end jobs. As a result, the company is able to farm out print jobs to other printers (not time-sensitive work like IPOs and M&A) and keep fixed costs (Lab.&Equip) down.
2	4512	1992	Southwest's FUN FARES provide savings on airfare in exchange for customer's commitment to travel on the specific flights for which reservations were made. Tickets are non-refundable and cannot be upgraded, downgraded, or exchanged for other flights.
3	4512	1992	Braniff airlines charges its passengers $100 or so less than its larger competitors, but has few daily departures with a fleet of only 10 planes.
4	4512	2002	Southwest Airlines uses a highly efficient operating style. Southwest has loads of connecting passengers, but it still brings planes into airports and unloads and loads them within 20 minutes. Passengers may wait two hours for their next flight. But the efficiency helps give Southwest the lowest unit costs in the industry, and the most-efficient labor force and airplane fleet.
5	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).
6	4813	1998	Right now, packet switched voice calls are cumbersome and slow. This does not appeal to business customers and 81% of Telecom's 540 billion world-wide annual revenue comes from simple voice calls.
7	7011	1993	Economic slides in California and Japan (which account for 30% of Hawaii's tourists) have hurt the Hawaiian resort business; time share and golf resorts are growing.

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