Place utility is the value that a location or place adds to a product or service. It refers to the convenience and accessibility that a particular location offers to consumers, which can influence their decision to purchase a product or service. Place utility can be created through various means, including physical infrastructure, transportation networks, and the presence of other businesses or amenities.
One way that place utility is created is through the development of physical infrastructure, such as roads, buildings, and other structures. When a location has well-maintained roads and easy access to transportation, it becomes more convenient for consumers to visit and purchase products or services. Similarly, the presence of buildings and other structures can create a sense of order and organization, making it easier for consumers to navigate and find what they are looking for.
Transportation networks also play a significant role in creating place utility. When a location has access to multiple modes of transportation, such as buses, trains, or airports, it becomes more convenient for consumers to visit and do business there. This is especially important for businesses that rely on foot traffic or the movement of goods, as it allows them to reach a larger customer base.
In addition to physical infrastructure and transportation networks, the presence of other businesses or amenities can also create place utility. When a location has a diverse range of businesses and services, it becomes a destination for consumers, as they can meet multiple needs in one place. For example, a shopping mall with a mix of retail stores, restaurants, and entertainment options can be a popular destination for consumers, as they can shop, eat, and be entertained all in one place.
Overall, place utility is an important factor in determining the success of a product or service, as it can influence consumer behavior and drive sales. By investing in physical infrastructure, transportation networks, and the presence of other businesses or amenities, businesses and organizations can create place utility and attract more customers.
Principles of MKTG Ch. 14 Flashcards
In order to produce their products, producers need to use inputs known as factors of production. Definition Cultural, social, and family influences. Thus, in marketing goods from the factory to the market place, place utility is created. Advertising free products at an event Many companies offer free samples to advertise a product and entice potential customers to make a purchase. Term The five objectives of promotional strategy include differentiate product, provide information, stabilize sales, increase sales, accentuate product value. Economic value is added to the goods by having them available in areas where interested customers can find them. A factory producing cellphones might have to be built on a large parcel of land.
Exam #4 Flashcards
Of these, which are major capital items. Making products or services accessible in places where customers can easily access them is referred to as place utility. Examples of place utility Here are a few instances of how companies frequently use place utility to attract customers: Placing products close to the check-out counter To encourage customers to pick up something to add to their purchase, a retailer may place tiny items like gum, mints, lip balms, or small lotions at or near their check-out counter. This value can be measured in terms of time, money, or convenience. Transportation creates place utility.
Place utility is created when consumers are able to obtain the product at the
Traditionally, there have been three major factors of production. This includes, among other things, operations like delivery and logistics as well as storage. This statement reflects the fact that children are exposed to many promotional messages a day but: Definition Are not sophisticated at analyzing them, therefore making them a vulnerable market. Term What does institutional advertising involve? Examples: fax machines, hand tools. For example, suppose a storm knocks out power to the community. For example, if a product is transported from a manufacturing plant to a retail store, the place utility would be the value that is added to the product as a result of this transportation.
Place Utility
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Term Product-related segmentation has three approaches based on benefits sought, usage rates, and brand loyalty levels. Sales volume has dipped, and she suspects sales of her product have reached a saturation level. Place utility can be used to draw customers to a product or service as well because it associates a specific place to the product or service. Term Alternative pricing strategies include skimming, penetration, discount, and competitive pricing. The place utility refers to the utility created for the product by the virtue of its location. If the store offered a deferred payment plan, allowing you to pay off the cost of the laptop over 5 years, then the store has created possession utility, because the store has made it easier for you to own the product.
