Customers go through two stages as they make their purchase decisions:

• The rough cut, which eliminates all sensors that will not fit the customer's needs; and
• The fine cut, which carefully weighs the relative merits of the remaining products.

 5.1 The Rough Cut

In the rough cut, each segment sets its own standards for a sensor’s:

• Positioning: The sensors size and performance coordinates must fall within the segment’s circles on the perceptual map;
• 
  Price: The sensor must be priced within the segment range;
• 
  Reliability: The Mean Time Between Failure (MTBF)

 A product’s age does not play a role in the rough cut.

5.1.1 Positioning In The Rough Cut

On the perceptual map, the circles represent the market segments (groups of customers with similar purchasing concerns). Products that plot within 4.0 units from the center of the segment circle are inside of the dashed lines (Figure 5.1). These products survive the positioning rough cut for that segment.

Figure 5.1 Positioning Rough Cut / Fine Cut Circles: The outer rough cut circle has a radius of 4 units. The inner fine cut circle has a radius of 2.5 units.

Products placed more than 4.0 units away from the center of the segment are outside of the dashed lines.

These products fail the segment's rough cut and are not considered for purchase.

Tip: The location of each segment's rough cut circle as of December 31 of the previous year appears on page 11 of the Courie r.

5.1.2 Price in the Rough Cut

Each segment sets price guidelines. For example, Low End customers will not pay High End prices. Segment price expectations correlate loosely with the segment's position on the perceptual map. Segments that demand higher performance levels and smaller sizes are willing to pay higher prices.

Sensors priced $5.00 above or below the segment guidelines will not be considered for purchase.

5.1.3 Reliability in the Rough Cut

Each segment sets guidelines for Mean Time Between Failure (MTBF), the number of hours a sensor is expected to operate before it malfunctions.

Sensors with MTBFs 5,000 hours or more beneath the segment's guidelines will not be considered for purchase.

Tip: The price criteria for the previous year and reliability criteria are listed in the Courier' s segment analyses.