The Owners market segment has the largest market value at approximately $1.3 billion assuming Lowes can be regained as a distribution channel [Table 4]. This market segment is the largest, but it is not significantly larger than the Luxury Home Builder segment ass...
... middle of paper ...
...ket or a required attribute as in the luxury home market. The luxury home market may instead derive negative functional and psychological value from the Sonance brand due to the recent trend toward mass merchandising.
Sonance should focus on the Owners market segment. The Owners market segment is the largest segment and the buying decision factors in product quality in addition to price. This will allow Sonance to capitalize on its superior products. Also, the post purchase evaluation in the Owners market segment is based on innovation and quality, not ease of installation and profit margins which are not strengths of Sonance’s product offering. Finally, the consumer derives more value from Sonance’s products in the Owners market segment. These four key elements will allow Sonance to differentiate themselves in the Owners market segment and capture the most value.
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