Product Utility

Naomi, Shahla, Christos, & Khaliah

Product Utility

An economic term referring to the total satisfaction received from consuming a good or service. A company that generates, transmits and/or distributes electricity, water and/or gas from facilities that it owns and/or operates. Understanding consumer demand allows you to make better business decisions. For example, determining when to increase production and inventory allows you to meet increased demand during specific times of year. Pinpointing which regions sell the most products or the types of retail outlets, including department stores or discount stores, that sell the majority of your inventory helps when determining how much inventory to send and where to send it. Understanding why consumers value your products helps you create more effective marketing campaigns.

What is meant by Product Utility?

In our own words, we've concluded that product utility means the factors that contribute to the costumers happiness. It means that the place and advertisement are pleasing to the consumer.

What are the types of utilities? What do they have in common?

There are five types of utilities. Form, Information, Place, Time, and Possession utilities. Form means the utility of what the product is intended to do: relation ship between a product or service's form and it's function. Information means utility which provides consumers with instructions, directions, manuals. Place means utility which makes it possible for the consumer to purchase the product. Time means utility which provides a product or service when a consumer wants it twenty four seven. And possession means utility when a good or service is easy to purchase.

Which utility is not classified as a marketing utility? Why not?

Possestion utility is not classified as a marketing utility. Form, informatiopn, place, and time all have to do with marketing or where a product is to be sold, but possestion utility has to do with how easy it is to purchase the product, which hasn't got one bit to do with marketing the product.

Why is product utility an important factor in marketing?

It helps companies get customers by making deals and competing with other companies which is part of the marketing "world."

Which type (or types) of utility is being used when products/services are sold through the internet?

When a product or service is being sold trough the internet the types of utilities being used are information utility, time utility, place utility, and possession utility.

How do the seasons and holidays affect utility?

During the holidays and season changes the need for certain products go up and down, so will the consumer satisfaction will too. During the summer the need for snow jackets will go down, so less people overall will need the product, so therefore the satisfaction will go down. During the winter holiday season, the satisfaction for those snow jackets will go up due to the need for them will rise. Also the satisfaction of any product could go down during this season, because it is a very busy time of year for consumers, so the demand for the product will rise and some costumers might not be able to get what they what because the product has sold out or the prices have risen because of such high demand and such low supply.

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