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Utility

Product Development. Utility. Utility. “the things added to a product to make it valuable” Utility can be about a: Benefit Difference Information 5 Types Form, Information, Place, Time, Possession. Form Utility.

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Utility

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  1. Product Development Utility

  2. Utility • “the things added to a product to make it valuable” Utility can be about a: • Benefit • Difference • Information • 5 Types • Form, Information, Place, Time, Possession

  3. Form Utility • Form Utility – the relationship between a product or service’s form and function FormFunction “look” “What it does” • Includes: material, scent, flavour, colour, design, packaging • Example: Pringles chips, winter coats, pens, perfume, m&ms,

  4. Form vs Function • For each of the following products, explain how form is dictated by function: • Gatorade • Crest Toothpaste • Cell phone • Pen

  5. Information Utility • Information utility – provides consumers with instructions, directions, help lines, website FAQs and user manuals • People value complete information • Examples: Sympatico 24 helpline, Butterball website (recipes), Consumer Reports

  6. Place Utility • The easier a product is to find, the greater the place utility • The Internet has made offering place utility pretty easy • Examples: Gift cards – there are now racks in grocery stores filled with gift cards from restaurants and retail outlets that have nothing to do with grocery stores

  7. Time Utility • Time Utility – the availability of a product or service WHEN a consumer wants it • The Internet has also made time utility easy to deliver on • Examples: convenience stores where among the first to offer 24-7 hours • Sobey’s has a time utility advantage • Seasonal products (Cream Eggs, pumpkin pie)

  8. Possession Utility • Possession utility – when a good or service is easy to purchase • How can a business give possession utility to it’s products? • Low prices • Credit terms (Leon’s, the Brick) • Discounts, coupons and other sales promotions

  9. You Decide • Examine the following products and services and record (explain) which of the 5 types of Utility they have: • MP3 music file (bought legally) • Digital Camera • Ticketmaster.ca • Little Caesars Medium Hot n Ready • IKEA “Billy” bookcase

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