Utility

BMI3C

Example

Form and Function

Mug Example– Form?

What does it look like? Looks like a mug, but what defines a mug?

– Function What does it do?

Form and Function

Form follows function… the shape of a product is determined by what its supposed to do

Products are supposed to be useful – “Utilities”

Utilities

What aspects of a product make it worthwhile for me to purchase?

Can take into consideration– how consumers feel about a product– the convenience of purchasing the product– the value of obtaining the product when they want

it

Types of Utility

Form Time Place Possession

Form Utility

The physical characteristics of a product– Ex: detergent (powder vs liquid)

The relationship between a product/service’s form and its function

Form utility can also be affected by innovations in production materials and technologies

Form Utility

Form utility can also add value to a product by making it attractive to look at as well as useful

Style and fashion make form as important as function

Form utility takes into consideration the material used in making a product, and the product’s scent, flavour, colour, design, and packaging

Time Utility

Is it available when the consumer wants it?– Now vs later– Appropriate time of day– Appropriate time of year

Place Utility

Where the product or service is made available

Ex: If it is a retail establishment, it should be easily accessible for customers

Mail order companies make it easy for customers to shop whenever they want and then have their purchases delivered to them

Possession Utility

Value created by allowing easy transfer of a product's ownership

Ex: various time payment, leasing, and credit purchase strategies can be important in making a product more attractive to a consumer

Information Utility

A product has value to a consumer only when the consumer knows that the product exists and what benefits it offers– Thus, advertising provides information utility

May also include accessible resources about product (i.e. website)

Also includes instructions/guide, access to customer support, etc.