 Utility ◦ Utility defined ◦ Form Utility ◦ Information Utility ◦ Place Utility ◦ Time Utility ◦ Possession Utility

 Utility- refers to what is added to a product to make it valuable on the market.  Utility affects the value equation by providing consumers with something they did not have before. ◦ Ex. Easy to open cans, flavoured water

 Form  Information  Place  Time  Possession

 Form- is the relationship between a product or service’s form and its function. ◦ Form refers to the product’s look or the type of service provided. ◦ Function is what the product or service is intended to do. ◦ Usually form follows function: what the product is meant to do will often dictate what it looks like.

 Information- provides consumers with instructions, directions, and user manuals. ◦ Ex. Service representatives (Bell, Dell, Linxus)  Advertising delivers information utility.  Many consumers read advertisements to determine what products are available, where, and at what price.  Consumers with information receive more value from their purchases.

 Place- when marketers make it possible for the consumer to purchase the product.  The easier the product is to find, the more place utility it has.  Ex. If a product has incredible form utility, advertisements are done and provide information utility, but the product cannot be obtained in Ontario, does it have place utility?

 Time- Businesses add time to a product or service when the product or service is available when the consumer wants it. ◦ Ex. Businesses that are open 24-7, Banks that are open late, convenience stores  These characteristics provide access to consumers to utilize a product or service provided by a company.

 Possession- When goods and services are easy to purchase, they are said to have possession utility.  To add possession utility to a product or service, the business makes it easier for people to buy that product or service. ◦ Ex. Companies provide their own credit cards for consumers to easily possess a product/service (Home Depot)

 Utility is value added qualities and attributes which make products and services more attractive to the end-user.  Making products affordable and accessible while offering substantial product information are qualities which add utility to a product/service.

 Questions/Concerns?