Satellite Radio is at a point where you need to make several decisions before selling your digital satellite radio. Some important considerations that XM needs to decide on are: What type of segment should XM market to? What will the retail price of the product be and will XM require a monthly subscription fee? If so, how much should it be? Should XM allow advertising on its programming? Is penetration pricing the best strategy? The early launch of SIRIUSSIRIUS would target rural America as its primary market due to the lack of FM radio stations. XM does not want to compete in the rural American market because better consumer segments are available. Research predicts Tech-Seekers and Tech-Friendly to have the highest growth among other segments. Offering a suggested retail price of $100 for an XM car or home stereo will increase purchase intentions for the Tech-Seekers and Tech-Friendly segments. Their purchase intentions steadily increase when the price of the radio decreases. Tech-Seekers and Tech-Friendly both seek out high-tech products. XM should offer different packages to these segments. An example would be to offer a lifetime subscription for the price of 5 years, assuming a monthly subscription fee of $12. The radio transmitting device will be included in the price. The average customer lifetime value is 5 years, so an offer like this will guarantee revenue for a customer for five years regardless of whether or not they continue to use the service.