2.2 Buying Criteria by Segment

Buyers in each segment place a different emphasis upon the four buying criteria. For example, Low End customers are most interested in price, while High End customers are most interested in positioning. Positioning and price criteria change each year. Age and MTBF criteria remain the same year after year.

Buying Criteria for the previous year are reported in the Capstone Courier’s Segment Analysis pages. As you take over the company to make decisions for Round 1, your reports reflect customer expectations as of December 31, Round 0 (yesterday). The Industry Conditions Report displays the Round 0 buying criteria for each market segment. Here are two example segments.

Example 1 customers seek proven products at a modest price.

• Age, 2 years– importance: 47%
• Price, $20.00-$30.00– importance: 23%
• Ideal Position, performance 5.0 size 15.0– importance: 21%
• MTBF, 14,000-19,000– importance: 9%

Example 2 customers seek cutting-edge technology in size/performance and new designs.

• Ideal Position, performance 8.9 size 11.1– importance: 43%
• Age, 0 years– importance: 29%
• MTBF, 20,000-25,000– importance: 19%
• Price, $30.00-$40.00– importance: 9%