Download Costumer Consumer Utility 2016_17.pptx

Customer vs. Consumer & Utilities
Introduction to Business & Marketing
Customer vs. Consumer
—  Customer: “someone who buys the product”
—  Consumer: “someone who uses the product”
Utility
—  Utility: “adds value”
—  Want a product to be something we can use and get some
usefulness out of
Form Utility
—  Form utility: “involves changing raw materials or putting
parts together to make them more useful”
—  EXAMPLES:
—  tree – wood – paper OR tree – wood – furniture
—  assembling various fabrics together into a garment you can wear
—  versions for different operating systems (Mac, Windows)
Place Utility
—  Place utility: “involves having a product where customers
can easily buy it”
—  Location, location, location!
—  EXAMPLE: having fruits & veggies at the grocery store
Time Utility
—  Time utility: “involves having a product available at a
certain time of year or a convenient time of day”
—  EXAMPLES:
—  Target selling Halloween candy in preparation for October 31st
—  Wait time at fast-food restaurant
Possession Utility
—  Possession utility: “involves making it easier for a
customer to buy/own a product”
—  Having a variety of easy payment methods
—  Cash, debit, credit, loans, PayPal
—  EXAMPLE: Carmax extends a 5-year loan to a customer
with a $1,500 down payment.
Information Utility
—  Information utility: “involves communication with the
consumer”
—  Salesperson is used
—  EXAMPLE: The sales associate at Nordstrom educates the
customer on the benefits of buying TOMS by using the instore display.
Vocab. Notebook – cont.
VOCAB TERM
15. Customer
DEFINITION
PHOTO
someone who buys the product
You will draw a photo of something that
helps you remember this term – keep it
simple!
Vocabulary Terms:
15. Customer
16. Consumer
17. Utility
18. Form utility
19. Place utility
20. Time utility
21. Possession utility
22. Information utility