Costumer v. Consumer & Utilities Introduction to Business & Marketing

Customer v. Consumer Customer: “someone who buys the product” Consumer: “someone who uses the product”

Utility Utility: “adds value”

Form Utility Form utility: “involves changing raw materials or putting parts together to make them more useful” EXAMPLE: tree – wood – paper OR tree – wood – furniture

Place Utility Place utility: “involves having a product where customers buy it” Location, location, location EXAMPLE: having produces & 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” EXAMPLE: Target is selling Halloween candy in preparation for October 31st

Possession Utility Possession utility: “involves making it easier for a customer to own a product” Offering credit terms, loans, etc EXAMPLE: Carmax extends a 5-year loan to a customer with a $1500 down payment.

Information Utility Information utility: “involves communication with the consumer” Salesperson is used EXAMPLE: The sales associate at Nordstroms educates the customer on the benefits of buying TOMS by using the in- store display.

Vocab. Notebook – cont. VOCAB TERM DEFINITION PHOTO 15. Customer 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