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Utility
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Utility defined
Form Utility
Information Utility
Place Utility
Time Utility
Possession Utility
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Utility- refers to what is added to a product
to make it valuable on the market.
Utility affects the value equation by providing
consumers with something they did not have
before.
◦ Ex. Easy to open cans, flavoured water
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Form
Information
Place
Time
Possession
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Form- is the relationship between a product
or service’s form and its function.
◦ Form refers to the product’s look or the type of
service provided.
◦ Function is what the product or service is intended
to do.
◦ Usually form follows function: what the product is
meant to do will often dictate what it looks like.
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Information- provides consumers with
instructions, directions, and user manuals.
◦ Ex. Service representatives (Bell, Dell, Linxus)
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Advertising delivers information utility.
Many consumers read advertisements to
determine what products are available, where,
and at what price.
Consumers with information receive more
value from their purchases.
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Place- when marketers make it possible for
the consumer to purchase the product.
The easier the product is to find, the more
place utility it has.
Ex. If a product has incredible form utility,
advertisements are done and provide
information utility, but the product cannot be
obtained in Ontario, does it have place utility?
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Time- Businesses add time to a product or
service when the product or service is
available when the consumer wants it.
◦ Ex. Businesses that are open 24-7, Banks that are
open late, convenience stores
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These characteristics provide access to
consumers to utilize a product or service
provided by a company.
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Possession- When goods and services are
easy to purchase, they are said to have
possession utility.
To add possession utility to a product or
service, the business makes it easier for
people to buy that product or service.
◦ Ex. Companies provide their own credit cards for
consumers to easily possess a product/service
(Home Depot)
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Utility is value added qualities and attributes
which make products and services more
attractive to the end-user.
Making products affordable and accessible
while offering substantial product
information are qualities which add utility to
a product/service.
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Questions/Concerns?