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?
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What is time utility? Give one example.
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Why is place utility important?
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What is possession utility, and who determines what products take on possession utility?
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How are the marketing concept and utility related?
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How do marketers influence each type of utility (form/task)?
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How do marketers influence each type of utility (time)?
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How do marketers influence each type of utility (place)?
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How do marketers influence each type of utility (possession)?
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What are two questions businesses can ask when they want to increase form utility?
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What is one action a business can take to create or enhance time utility?
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Explain how businesses can create or enhance place utility.
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How can businesses create or enhance possession utility?
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Explain how the Internet affects each type of utility (time).
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Explain how the Internet affects each type of utility (possession).
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Explain how the Internet affects each type of utility (place).
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Explain how the Internet affects each type of utility (form).
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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.