Final Customer Buying from Intermediary

Most consumer products, and many industrial products, reach Final customers through Intermediaries.

Customer characteristics, and the segments they suggest, flow from the customer's reaction to the costs the customer incurs with the product over the product's life. We organize the innovation examples according to the costs the customer incurs. Final or end user customers incur four cost steps in connection with the product purchased from an Intermediary supplier. You should be able to fit your own particular industry's costs into these four typical costs. The examples illustrate where management teams in many industries have innovated to meet the needs of the specific customer segments.

Using the following thought outlines, we suggest you conduct your innovation for new ideas to segment customers by need.

1. ACQUIRE: Acquire steps include all activities the customer completes preceding the purchase of the product. These steps include the customer's efforts needed to identify and evaluate Intermediaries and travel to the Intermediary location. Examples >>

2. USE: 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. Examples >>

3. MAINTAIN: Maintain steps include all activities required to keep the product in working order. These steps include the costs the customer incurs to diagnose and correct product problems. Examples >>

4. DISPOSE: Dispose steps include all activities required to eliminate the product from the customer's premises. These steps include the costs for removal and final disposition of the product. Examples >>

Basic Strategy Guide Users Go To: Step 12

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