Utility and Consumer Satisfaction

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Questions and Answers

What is utility?

A product with utility has the ability to satisfy the needs and wants of customers.

What are six personal lenses through which individual customers can view products?

Age, income, interests, gender, educational level, and preferences.

How is utility measured?

Utility is measured through comparing levels of satisfaction that individuals receive from other products.

How is form utility different from task utility?

Form utility is created when a business changes the shape/form of a product to make it more useful or satisfying for consumers; task utility applies to services. Signup and view all the answers

What is time utility? Give one example.

Time utility is when products are available at the time they are desired; for example, a box of Valentine's Day chocolate in March would not have time utility. Signup and view all the answers

Why is place utility important?

Making changes to a product's location can create place utility for buyers. Signup and view all the answers

What is possession utility, and who determines what products take on possession utility?

Possession utility is created when ownership of a product is transferred from the seller to the buyer; customers determine what products they find useful. Signup and view all the answers

How are the marketing concept and utility related?

Utility focuses on the customer and what they think, allowing marketers to measure customer satisfaction. Signup and view all the answers

How do marketers influence each type of utility (form/task)?

Marketers conduct research and gather feedback to maximize form utility by developing new products or features. Signup and view all the answers

How do marketers influence each type of utility (time)?

Marketers determine when customers need the product, engaging other business areas to meet those needs. Signup and view all the answers

How do marketers influence each type of utility (place)?

Marketers plan and move products to where customers are likely to buy them. Signup and view all the answers

How do marketers influence each type of utility (possession)?

Businesses create possession utility by making it easier for customers to buy their products. Signup and view all the answers

What are two questions businesses can ask when they want to increase form utility?

Should they develop a new product? Should they make changes to an existing product? Signup and view all the answers

What is one action a business can take to create or enhance time utility?

Businesses would order or manufacture products before they're needed to meet customer demand. Signup and view all the answers

Explain how businesses can create or enhance place utility.

Businesses must ensure their products are in the right places where customers want to buy them. Signup and view all the answers

How can businesses create or enhance possession utility?

Businesses seek ways to make it easier for customers to buy their products. Signup and view all the answers

Explain how the Internet affects each type of utility (time).

The Internet increases time utility by allowing fast purchases of goods and services. Signup and view all the answers

Explain how the Internet affects each type of utility (possession).

Businesses use the Internet to provide information about products and assist in the purchase process. Signup and view all the answers

Explain how the Internet affects each type of utility (place).

It's possible to buy just about anything online, greatly enhancing place utility. Signup and view all the answers

Explain how the Internet affects each type of utility (form).

More products are offered via the Internet, while tangible versions are disappearing. Signup and view all the answers

Study Notes

Utility Overview

Utility refers to products that satisfy customer needs and wants.

Personal Perspectives

Six lenses through which customers view products: age, income, interests, gender, educational level, and preferences.

Measuring Utility

Utility is measured by comparing satisfaction levels from different products.

Types of Utility

Form Utility: Created when a product’s shape or form is altered for better usability.
Task Utility: Pertains to services, such as medical care provided to patients.

Time Utility

Time utility arises when products are available exactly when customers want them.
Example: Valentine’s Day chocolates available in February rather than March.

Importance of Place Utility

Place utility is achieved when products are located where customers need or want them, enhancing accessibility.
Examples include relocating products on shelves, extending services to new areas, and offering online shopping.

Possession Utility

Possession utility is created when ownership of a product transfers from seller to buyer.
Consumers define which products carry possession utility based on their purchases.

Marketing and Utility

The marketing concept focuses on customer perception of utility, measuring satisfaction to align with customer needs.
Marketers influence utility types through research, feedback, and product adjustments.

Influencing Form and Task Utility

Marketers maximize form utility by developing or modifying products based on customer insights.

Influencing Time and Place Utility

Marketers ensure products are available at the right time and in the right places through strategic planning and logistics.

Enhancing Possession Utility

Businesses improve possession utility by facilitating easier purchasing options, including credit offerings for immediate needs.

Increasing Form Utility

Businesses can ask if they should create new products or enhance existing items for better form utility.

Enhancing Time Utility

Businesses can ensure product availability by preparing inventory before demand spikes and adjusting quickly to market needs.

Enhancing Place Utility

Strategic product placement in accessible locations for consumers enhances place utility.

Internet Impact: Time Utility

The Internet increases time utility through the quick purchasing process for goods and services.

Internet Impact: Possession Utility

Online resources help inform customers about products, enhancing their confidence in purchases through detailed information and live support.

Internet Impact: Place Utility

Online shopping allows purchasing a wide range of items from various sectors conveniently.

Internet Impact: Form Utility

The rise of online products often leads to fewer tangible options available offline, shifting consumer purchasing patterns.

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Description

This quiz explores the concept of utility as it relates to customer needs and satisfaction. You'll learn about different types of utility, including form, task, time, and place utility, as well as the perspectives customers take when evaluating products. Test your understanding of how utility impacts consumer behavior.