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.

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

2.
Time: Reduce the time the customer must spend with the product

A. Reduce steps the customer must use with the product

Bring products closer to the customer
Place current products closer to current customer's location of purchase or use

Offer current products to current customers in non-traditional purchase locations

No. SIC Year Note
1 2721 1989 Donnelley bought Metromail, the world's largest mailing list company. Donnelley also customizes ads for regional demographics (ex. "Farm Journal" has 2500 different versions). They set up in-house printing at client site with proprietary software that lets customers design ads.
2 3571 1987 Compaq took lead over IBM by identifying the cost to some users of leaving their PCs in the office. Sales reps for engineering firms and auditors, for example, are two types of PC users who could provide better service to their clients with portables.

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