Utility, exchange value and marketing concept

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

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern