Textbook Chapter 3-4
Enhancing Economic Utility
Textbook Pages 79-83
LESSON SUMMARY
Economic utility refers to the satisfaction a consumer derives from a product or service. It highlights that due to limited resources and unlimited needs, consumers must choose products that provide the greatest satisfaction for their expenditure. Businesses leverage the concept of economic utility to enhance consumer satisfaction by ensuring that their offerings provide higher utility than competing products. The four primary types of economic utility are form, time, place, and possession, each addressing different aspects of consumer needs and preferences.
Form utility focuses on the tangible characteristics of a product or service, while time utility emphasizes making products available when customers need them. Place utility involves providing products at convenient locations for consumers, and possession utility relates to the affordability of products, often facilitated through credit options or rental services. The document stresses that understanding and improving these utilities can serve as a powerful marketing tool, allowing businesses to tailor their offerings to meet the unique needs of their target markets, ultimately leading to enhanced customer satisfaction and demand for products.
Economic utility refers to the satisfaction a consumer derives from a product or service. It highlights that due to limited resources and unlimited needs, consumers must choose products that provide the greatest satisfaction for their expenditure. Businesses leverage the concept of economic utility to enhance consumer satisfaction by ensuring that their offerings provide higher utility than competing products. The four primary types of economic utility are form, time, place, and possession, each addressing different aspects of consumer needs and preferences.
Form utility focuses on the tangible characteristics of a product or service, while time utility emphasizes making products available when customers need them. Place utility involves providing products at convenient locations for consumers, and possession utility relates to the affordability of products, often facilitated through credit options or rental services. The document stresses that understanding and improving these utilities can serve as a powerful marketing tool, allowing businesses to tailor their offerings to meet the unique needs of their target markets, ultimately leading to enhanced customer satisfaction and demand for products.
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Do Now:
Image Left: The image below on the left is iced tea.....IN A PLASTIC BAG! Are you horrified? Would you drink it?
Image Right: The image on the right is an Arizona Iced Tea. Maybe you have heard of it (just kidding...of course you have heard of it). It is in a can!
Does the can add value to the product?
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Video 1: (Worksheet Question 1) Define The Four Types Of Economic Utility
Directions: Watch the video below. It will give you the answer to worksheet question 1. Please note that there is a quiz at the end of this video.
Questions Answered In Video 1
Please note that there is a quiz on the video above.
Directions (Continued): After you watch the video (above) take the quiz for video 1 on Schoology. You can preview the questions below.
Video 2: (Worksheet Questions 2 and 3) Explain How Marketers Use Utility To Increase Customer Satisfaction
Directions (Continued): Watch the video below. It will give you the answer to worksheet questions 2 and 3. Please note that there is a quiz at the end of this video.
Questions Answered In Video 2
2.) Explain how marketers use utility to increase customer satisfaction.
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3.) (Video 2:24) How did Mr. Kazanjian adjust his marketing mix with his books?
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2.) Explain how marketers use utility to increase customer satisfaction.
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3.) (Video 2:24) How did Mr. Kazanjian adjust his marketing mix with his books?
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Please note that there is a quiz on the video above.
Directions (Continued): After you watch the video (above) take the quiz for video 2 on Schoology. You can preview the questions below.
Now It Is Time For You To Read The Textbook Chapter And Take The Quizzes
Textbook Chapter 3-4
Enhancing Economic Utility
Sections 1&2
Textbook Pages 79-83
Directions: Watch the video below. Your third quiz is on Chapter 3-2 (the entire thing). I usually quiz you on each textbook section, but the second section of the chapter is one paragraph, so you will have one quiz. A link to the quiz for the textbook reading is below.
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Summary Of Textbook Chapter 3-4 : Enhancing Economic Utility
Economic utility refers to the satisfaction a consumer derives from the consumption of a product or service. Due to limited resources, people must make choices about what to purchase based on which options provide the most satisfaction for their money. Businesses use economic utility to encourage consumers to buy their products by ensuring that their offerings provide higher satisfaction compared to alternatives. The four key ways businesses can increase economic utility are through changes in form, time, place, and possession, which directly impact customer satisfaction and purchasing decisions.
Form utility is based on the physical characteristics of a product or the quality of a service. This utility is improved when businesses enhance the tangible aspects of a product, such as making it better constructed or adding features consumers desire. For services, the skill level of the service provider can increase form utility, ensuring that the consumer receives a higher level of satisfaction.
Time utility focuses on ensuring that a product or service is available when customers need it. This is especially relevant for businesses like banks that extend their hours or dental offices that offer weekend appointments. Time utility ensures that consumers can access goods or services at convenient times, which increases the likelihood of making a purchase.
Place utility addresses where products or services are available. Consumers may prefer to purchase or use goods at a particular location, so businesses must ensure their offerings are conveniently accessible. For example, check-cashing outlets or print shops strategically located in areas of high demand provide greater place utility. By meeting customers' needs for convenience, businesses improve customer satisfaction and drive sales.
Finally, possession utility refers to making products more affordable or easier to acquire. While lowering prices is not always feasible, offering credit, leasing, or rental options can enhance possession utility. These methods allow consumers to afford products they otherwise couldn't purchase, such as renting movies or leasing cars. This type of utility is important in making products accessible and increasing sales opportunities.
Economic utility refers to the satisfaction a consumer derives from the consumption of a product or service. Due to limited resources, people must make choices about what to purchase based on which options provide the most satisfaction for their money. Businesses use economic utility to encourage consumers to buy their products by ensuring that their offerings provide higher satisfaction compared to alternatives. The four key ways businesses can increase economic utility are through changes in form, time, place, and possession, which directly impact customer satisfaction and purchasing decisions.
Form utility is based on the physical characteristics of a product or the quality of a service. This utility is improved when businesses enhance the tangible aspects of a product, such as making it better constructed or adding features consumers desire. For services, the skill level of the service provider can increase form utility, ensuring that the consumer receives a higher level of satisfaction.
Time utility focuses on ensuring that a product or service is available when customers need it. This is especially relevant for businesses like banks that extend their hours or dental offices that offer weekend appointments. Time utility ensures that consumers can access goods or services at convenient times, which increases the likelihood of making a purchase.
Place utility addresses where products or services are available. Consumers may prefer to purchase or use goods at a particular location, so businesses must ensure their offerings are conveniently accessible. For example, check-cashing outlets or print shops strategically located in areas of high demand provide greater place utility. By meeting customers' needs for convenience, businesses improve customer satisfaction and drive sales.
Finally, possession utility refers to making products more affordable or easier to acquire. While lowering prices is not always feasible, offering credit, leasing, or rental options can enhance possession utility. These methods allow consumers to afford products they otherwise couldn't purchase, such as renting movies or leasing cars. This type of utility is important in making products accessible and increasing sales opportunities.
Directions (Continued): After read Chapter 3-4, take the quiz on Schoology. You can preview the questions below.
