Economics: Product Utility

Tyler Murphy, Andrew McCool, Fatima Almulla

What is meant by product utility?

An economic term referring to the total satisfaction received from consuming a good or service. It is made up of five utilities, which are Form Utility, Information Utility, Place Utility,  Time Utility and Possession Utility.   

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

It is made up of five utilities, which are Form Utility, Information Utility, Place Utility, Time Utility and Possession Utility. They all have in common is customer satisfaction and that the product should be delivered to the customer.

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

Form utility is not directly related to marketing. However, much of what goes into creating products, such as marketing research and product design, makes it an integral part of the marketing process.

Why is product utility an important factor in marketing?

You need total satisfaction in any product you sell in marketing product utility. In the product you buy or sell you need Form Utility, Information Utility, Place Utility, Time Utility, and Possession Utility.  

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

Tyler Murphy: Place utility is being used when products/services are sold through the Internet. Place utility is being used when products/services are sold through the Internet because place utility is utility that makes it possible for the consumer to buy the product/service. So when you can buy things on the internet it is very easy because you don't have to leave your house to shop.

How do the seasons and holidays affect utility?

Tyler Murphy: The seasons and holidays affect utility in many ways. The seasons and holidays affect Form Utility, Time Utility, and Possession Utility. They affect Form Utility because form utility means what the product is intended to do, so if it was the winter you would want to buy a jacket, not a swim suit.  They affect Time Utility because time utility is when a consumer may want a product or service anytime so you have to be ready to deliver, but in the winter that may be hard to do if the roads are covered with snow. They affect Possession Utility because that means when a product is easy to purchase, and in the winter it may be hard to buy a really hot or trending toy because every parent wants to get it for their kid so it may be hard to find.

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