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Chapter 10 Product, Price, and Place
Place Utility
Place utility means placing products where they are needed and
are useful. For example, if you sell sunscreen lotion, it makes sense to
have it available at the beach where people who need it can buy it.
Time Utility
Time utility is getting a product delivered to the end user when it is
needed. Timing is everything. If the product is late, the business could
lose a customer and goodwill is damaged.
Possession Utility
Possession utility is the satisfaction that a customer receives from
owning a product or receiving a needed service. An example of
possession utility is owning a car you have wanted for a long time.
Form Utility
Form utility increases the desirability of a product by physical ly
changing it. For example, changing a laundry detergent from
powdered to liquid form may mean it works better in some washing
machines.
Checkpoint 10.3
1. What is a supply chain?
2. List three types of intermediaries.
3. What are the two types of distribution channels?
4. List the six main types of transportation.
5. What are the four types of utility?
Build Your Vocabulary
As you progress through this text, develop a personal glossary of
entrepreneurship terms and add it to your portfolio. This will help you build
your vocabulary and prepare you for a career as an entrepreneur. Write
a definition for each of the following terms, and add it to your personal
entrepreneurship glossary.
place
supply chain management
intermediaries
channel of distribution
direct channel
indirect channel
utility