Customer v. Consumer & Utilities
Introduction to Business & Marketing
Customer v. Consumer
 Customer: “someone who buys the product”
 Consumer: “someone who uses the product”
Utility
 Utility: “adds value”
Form Utility
 Form utility: “involves changing raw materials or putting
parts together to make them more useful”
 EXAMPLE: tree – wood – paper OR tree – wood –
furniture
Place Utility
 Place utility: “involves having a product where customers buy
it”
 Location, location, location
 EXAMPLE: having produces & veggies at the grocery store
Time Utility
 Time utility: “involves having a product available at a certain
time of year or a convenient time of day”
 EXAMPLE: Target is selling Halloween candy in preparation
for October 31st
Possession Utility
 Possession utility: “involves making it easier for a customer to
own a product”
 Offering credit terms, loans, etc
 EXAMPLE: Carmax extends a 5-year loan to a customer
with a $1500 down payment.
Information Utility
 Information utility: “involves communication with the
consumer”
 Salesperson is used
 EXAMPLE: The sales associate at Nordstroms educates the
customer on the benefits of buying TOMS by using the instore display.
Vocab. Notebook – cont.
VOCAB TERM
15. Customer
DEFINITION
PHOTO
someone who buys the product
You will draw a photo of something that
helps you remember this term – keep it
simple!
Vocabulary Terms:
15. Customer
16. Consumer
17. Utility
18. Form utility
19. Place utility
20. Time utility
21. Possession utility
22. Information utility