Intermediary Customer Purchasing from the Product Producer

Intermediary Customers Purchasing from the Producer of the Product. Each of these costs represent steps an intermediary or channel customer must take in connection with the product.

Obtain Steps: The Obtain steps include all activities preceding the selling of the product. These activities include the costs of identifying potential suppliers and stocking the product.

1. Knowledge: Add knowledge

2. Resources: Reduce resources required for use of the product

   1. Money – Reduce the money the customer uses with the product

      1. Reduce the level of payment for use of the product

      2. REDUCE THE CUSTOMER'S SPENDING ON PEOPLE, PURCHASES OR CAPITAL COSTS THE CUSTOMER USES WITH THE PRODUCT ITSELF

         1. Warnings and advice Examples>>

         2. People costs Examples>>

         3. Purchase costs used with the product itself Examples>>

         4. Capital costs Examples>>

         5. Reduce multiple costs Examples>>

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