Economics: Product Utility

Anna Z, Hiam B, Josh K

What is meant by product utilities?

Hiam-Product utility is the added value of a product during the function of marketing. Utilities are perks added to a product that fulfill the wants and needs of a customer. There are five types of economic utilities which are form, place, time, possession, and information. Form utility is the way that the products are made and manufactured. Place utility is the location of where a customer buys a the product. Time utility is duration of time and when a product is on sale. Possession utility is the process of exchanging money for a product. Information utility is the communication be

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

Josh-Form Utility, Information Utility, Place Utility, Time Utility, Possession Utility. Each of these Utilities helps a consumer achieve something better then expectations. They all connect to each other as a chain reaction in some way or form.

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

Josh-form utility is not directly classified as a marketing utility however, much of what goes into creating products, such as marketing research and product design, makes it an integral part of the marketing process. When form utility involves changing putting parts together to make them useful, individual parts are not marketed as the final product.

Why is product utility an important factor in marketing?

Anna-Product utility is important in marketing because it adds value to a product. It also adds value to the product depending on the time of year due to season and holidays. The form utility allows products to differ from other products, which attracts customers attention to the product. Also the amount of time that the product is sold for effects marketing. This is a form of time utility. Information utility factors marketing because companies put a lot of time and money into informing customers about the product they are trying to sell.

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

Hiam-Four of the five utilities are used when a product/service are sold through the Internet. The one utility that is not used online if form utility because the product is not created online and incentives are not added to it.  Place utility is used because the product is being sold online. Time utility is being used because there is a time limit on how long the product is available online to be sold for. Also the time of year the product is sold online is a factor to time utility. Possession utility is affected because the customer pays money for the product. Information utility is used because there is information online about the product.

How do the seasons and holidays affect utility?

Anna-The seasons and holidays affect utility be giving them the opportunity to special products that add to the time of year and are desired by consumers. For example, Halloween costumes are more in demand in October so companies tend to have special sales and offers.  This means that time utility is used during the holidays and during specific seasons of the year. Form utility is also a factor during the holidays and the seasons because what the products are made of change during the year.                        

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