Utility Buying Motives Utility n Utility the added

Utility & Buying Motives

Utility n Utility – the added value in economic terms created by the functions of marketing ¨ Form ¨ Place ¨ Time ¨ Possession ¨ Information

Form Utility n Involves changing raw materials into usable goods or putting parts together to make them more useful

Place Utility n Involves having a product where customers can buy it

Time Utility n Having a product or service available at a certain time of year or a convenient time of day

Possession Utility Exchange of a product for money n Accepting alternative to cash n ¨ Checks ¨ Debit cards ¨ Layaway ¨ Credit cards

Information Utility n Involves communication with the consumer

Types of Markets n n n Market – all people who share similar needs & wants and who have the ability to purchase a given product Consumer Market – consists of consumers who purchase goods & services for personal use Organizational Market – business-to-business market includes all businesses that buy products for use in their operations

Client versus Customer: a person who purchases goods or services from another n Client: a person or group that uses the professional advice or services of a lawyer, accountant, advertising agency, architect, etc. n

Customer Buying Motives Buying motives: reasons a customer buys a product n Rational Motives: conscious, logical reasons for a purchase n ¨ Product dependability ¨ Time or monetary savings. ¨ Product quality ¨ Good customer service

Customer Buying Motives n Emotional Motives: feelings experienced by a customer through association with a product ¨ Social approval ¨ Fear ¨ Power ¨ Love ¨ Prestige n Patronage Motives: reasons for remaining a loyal customer of a company

Routine Buying Decisions n Used for purchased that are made frequently and do not require much thought ¨ Familiar with products

Limited Buying Decision Take more time than routine buying decisions n Associated with a product that is more expensive or is purchased less frequently n ¨ Buying jeans

Extensive Buying Decisions n Occurs when the consumer methodically goes through all five steps of the decisionmaking process ¨ Purchasing a car ¨ Not made lightly