Introduction to Business & Marketing Customer v. Consumer & Utilities

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 31 st

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. Vocabulary Terms: 15. Customer 16. Consumer 17. Utility 18. Form utility 19. Place utility 20. Time utility 21. Possession utility 22. Information utility VOCAB TERMDEFINITIONPHOTO 15. Customer someone who buys the product You will draw a photo of something that helps you remember this term – keep it simple!