Utility Mr. Thompson
Utility The attributes of goods/services that make them capable of satisfying consumer wants/needs The added value due to marketing activities
Benefits cont’d… • Think about Utility in the context of ADDING VALUE to the product/service in the eyes of the customer • Form Utility: changing raw materials into useable goods – taking parts of lesser value and combining them to make a product of greater value • Place Utility: having a product where customers would prefer to buy it - location
Benefits cont’d… • Time Utility: making a product/service available to the customer at a certain time – e.g. 24 hr stores, extended hours before Christmas, online chat help, etc. • Possession Utility: exchanging a product for money/payment – the more options provided, the greater the utility – e.g. cash, credit, debit, layaway, installment, etc. • Information Utility: providing information about the product/service – e.g. brochures, salespersons, food labels, displays, posters, owner’s manual, websites, etc.
Research a company and evaluate it based on the utility it provides to the customer: Describe how the company uses each type to add value to its products/services – give examples and suggest how that example satisfies the customer in a superior way to another method