UTILITY Mr Thompson Utility The attributes of goodsservices

UTILITY Mr. Thompson

Utility The attributes of goods/services that make them capable of satisfying consumer wants/needs The added value due to marketing activities

Benefits cont’d… Think about Utility in the context of ADDING VALUE to the product/service in the eyes of the customer Form Utility: changing raw materials into useable goods – taking parts of lesser value and combining them to make a product of greater value Place Utility: having a product where customers would prefer to buy it - location

Benefits cont’d… Time Utility: making a product/service available to the customer at a certain time – e. g. 24 hr stores, extended hours before Christmas, online chat help, etc. Possession Utility: exchanging a product for money/payment – the more options provided, the greater the utility – e. g. cash, credit, debit, layaway, installment, etc. Information Utility: providing information about the product/service – e. g. brochures, salespersons, food labels, displays, posters, owner’s manual, websites, etc.

Research a company and evaluate it based on the utility it provides to the customer: Describe how the company uses each type to add value to its products/services – give examples and suggest how that example satisfies the customer in a superior way to another method