Question 1

Which of the following is an example of possession utility?

Accepted Answer

Possession utility is the value to the consumer of making an item easy to purchase so consumers can use it.The mobile phone company offers six-month financing,same as cash terms to consumers,thus increasing ease of purchase.

Question 2

Dick's Sporting Goods carries baseballs all year around.The same is true for footballs and tennis equipment.With this all-year-around strategy,Dick's Sporting Goods offers __________ utility for these products.

Accepted Answer

Time utility refers to the availability of products when customers need them. By carrying baseballs, footballs, and tennis equipment all year round, Dick's Sporting Goods ensures that these products are available whenever customers want to purchase them, thus providing time utility.

Question 3

The process of turning corn into ethanol shows how BioFuel Energy,a Minnesota ethanol producer,can create __________ utility.

Accepted Answer

The process of turning corn into ethanol changes its form and creates a new utility as fuel.

Question 4

Effective marketing benefits society because it

Accepted Answer

Effective marketing enhances competition, which improves the quality of products and services and lowers their prices. This benefits society by giving consumers more choices and better value for their money. It also incentivizes companies to innovate and improve their products to stay ahead of the competition.

Question 5

The value to consumers that comes from the production or alteration of a product or service constitutes __________ utility.

Accepted Answer

Form utility refers to the value added to a product or service by changing its form or composition to make it more useful or appealing to the consumer. This can include altering its physical shape, features, or design. Examples of form utility include packaging, design, customization, and branding. Other types of utility include time, place, possession, and market utility.

Question 6

What utility does UPS provide when it delivers new DVD releases to Best Buy stores before the Tuesday national release day?

Accepted Answer

UPS provides time utility by delivering new DVD releases to Best Buy stores before the Tuesday national release day. Time utility refers to the value created by having products available at the time customers want them. By delivering the DVDs early, UPS helps Best Buy offer the product to its customers earlier, creating this time utility value.

Question 7

The value to consumers that comes from making an item easy to purchase through the provision of credit cards and financial arrangements constitutes __________ utility.

Accepted Answer

Possession utility refers to the value that consumers derive from being able to own and use a product. In this case, the convenience of being able to purchase the item through credit cards and financial arrangements adds value to the possession of the product.

Question 8

The four utilities marketing creates are

Accepted Answer

The four utilities marketing creates are form (creating products that meet customer needs), place (making products available where and when customers want them), time (providing products at the right time), and possession (creating transactions that make it easy for customers to obtain products). The other options do not accurately reflect the four utilities.

Question 9

FreshCase packaging is the first-ever vacuum package for red meat that maintains the meat's appetizing color,reducing both food and plastic waste.This is an example of creating __________ utility in the case-ready meat category.

Accepted Answer

The creation of vacuum packaging that maintains the appetizing color of red meat is an example of creating form utility, which means changing the raw materials into a form that is more useful and desirable for consumers. In this case, the form utility is created by preserving the color of the meat, which is a crucial indicator of freshness and quality.

Question 10

The benefits or customer value received by users of a product is called __________.

Accepted Answer

The term for the benefits or customer value received by users of a product is utility. Synergy refers to the combined benefits of multiple factors working together. Consumerism is a social and economic ideology that advocates for the protection and rights of consumers. Cost-benefit ratio is a comparison of the costs and benefits of a decision or action. Customer lifetime value is the estimated value a customer will bring to a company over their lifetime as a customer.

Question 11

Which of the following statements is an example of place utility?

Accepted Answer

Place utility is the value to consumers of having a product or service available where needed.Printing the boarding pass at home simplifies a traveler's life by making the pass available where needed.

Question 12

The process of taking wool off sheep and using it to make soft sweaters shows how manufacturing can create __________ utility.

Accepted Answer

Taking the wool off the sheep and turning it into soft sweaters involves a change in form utility, as the wool has been transformed into a new and more valuable product.

Question 13

Which of the following is an example of time utility?

Accepted Answer

Time utility refers to adding value to a product by making it available at the right time. In this case, the Goodwill with a 24-hour drop off box allows people to make their clothing donations at any time that is convenient for them.

Question 14

Which of the following is the best example of an organizational buyer?

Accepted Answer

An organizational buyer is someone who purchases goods or services for a business or organization. In this case, the store owner is buying the hand-painted slate signs to sell in her store, which would qualify as an organizational purchase. The other options are all individual consumers purchasing goods for personal use.

Question 15

The value to consumers that comes from having the offering available when they need it constitutes __________ utility.

Accepted Answer

The value to consumers of having the offering available at the right time is known as time utility. Time utility refers to the idea that products or services have to be available to customers when they need or want them. The other options are incorrect: 
A) place utility refers to the idea that products or services have to be available in a convenient location. 
B) possession utility refers to the value a customer receives from owning a product or service. 
C) market utility is not a term commonly used in marketing. 
E) form utility refers to the value a customer receives from the design or form of a product.

Question 16

Utility refers to

Accepted Answer

Utility refers to the benefits or customer value received by users of the product. While choices A and E touch on aspects of a product's production and versatility, they do not fully capture the concept of utility. Choice B refers to adaptability of a marketing program and is not related to the product or service itself. Choice D refers to fixed costs associated with production, which is also not related to the benefits received by users.

Question 17

The value to consumers that comes from having the offering available where consumers need it constitutes __________ utility.

Accepted Answer

Place utility refers to the value added to a product or service by making it available in a location where the customer can conveniently access it. This can include physical stores, online marketplaces, or even vending machines. By making the offering available in a convenient location, the producer increases the value to the consumer, who is more likely to make a purchase.

Question 18

Redbox places vending machines at local convenience and grocery stores that allow customers to rent and return popular DVDs 24 hours a day.This creates both __________ and __________ utilities.

Accepted Answer

Redbox's vending machines provide both place utility, as they are conveniently located at local convenience and grocery stores, and time utility, as customers can rent and return DVDs at any time, 24 hours a day.

Question 19

Robert was running low on cash and could not buy his Marketing textbook by the first day of class if the bookstore did not accept his credit card.Luckily,the bookstore accepted his VISA card,so the bookstore created __________ utility for Robert.

Accepted Answer

Possession utility refers to the value that is added by transferring ownership or possession of a product to a buyer. In this scenario, the bookstore created possession utility for Robert by allowing him to purchase the textbook using his VISA card and therefore transferring ownership of the textbook to him.

Question 20

Which of the following is an example of form utility?

Accepted Answer

Form utility refers to the value added to a product by changing its physical form or enhancing its design, features or performance. An iPhone with a "multitouch" user interface for easy navigation adds value to the product by enhancing its design and features.

Quiz 1: Creating Customer Relationships and Value Through Marketing