Utility, exchange value and marketing concept

Utility, exchange value and marketing concept - o E.g a...

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Markets and Consumers Utility, Exchange Value and the Marketing Concept Utility The satisfaction gained from buying, owning and/or consuming goods, services, or ideas. In economic theory, it is assumed that the goal of the consumer is to maximize utility. There are four types of utility o Form utility The pleasure gained from transforming raw materials into consumer goods o Place utility The pleasure gained from making goods available where they are convenient. o Time utility The pleasure gained from making goods available at a time that is convenient. o Possession utility The pleasure gained from owning and utilizing a product. Exchange Value Definition: what consumer is willing to give up in order to own something. Exchange value= used value + signed value Used value- what a product denotes, what a product is
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Unformatted text preview: o E.g. a Mercedes is a car • Signed value- what a product implies, what a product means o E.g. a Mercedes implies wealth The Marketing Concept • Management orientation that focuses on identifying and satisfying consumer needs to ensure organizational long-term profits. o Don’t want to be “near-sighted” pay attention to what consumer wants Example Company: L’eggs • Invented by Robert Elberson • Idea sparked due to ‘Lady Brevoni’, a stocking in the late 60’s and 70’s that wasn’t doing to well in the market • Place utility is enhanced by providing stockings in a supermarket. • They thought that fashion changes would increase demand, and location would increase availability, meaning revenue would rise....
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This note was uploaded on 10/05/2011 for the course WCOB 2033 taught by Professor A during the Spring '07 term at Arkansas.

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