Understanding Value – Value and Utility

Value and Utility

Value perceptions by buyers are all about how useful the buyer thinks the product will be to them.  That is, in the terms of economics, what is its utility?

There are four types of utility:

Form Utility-production of the good, driven by the marketing function..

Place Utility-make product available where customers will buy the product.

Time Utility-making the product available when customers wants to buy. (For example a store that is open 24 hours a day, 365 days a year.

Possession Utility -There is no value without possession.  (that is a cake has little value until you buy it – and eat it

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