Posted in Marketing and Strategy Terms, Total Reads: 863
Definition: Time Utility
Many companies educate their business, marketing and advertising professionals about the customer purchase behaviour and needs of the consumers which create a utility function. There are total four types of utilities which are form, possession, place and time.
Understanding the consumer demands is very important while making important business decisions. It will help the company decide when to increase the production of goods and inventory and when to run their important marketing campaigns. That said, company should not only rely on these methods to make the decisions because there are many other reasons which makes the consumer demand.
Time Utility is providing the consumer his desired goods at the time when he requires them. Depending upon the everyday needs, holiday season or weather conditions, consumer demand will vary. Ensuring that the goods are delivered to the consumers at the right time forms the time utility.
Demand for cold-drinks often increase during the summer season and hence companies like Coco-cola and Pepsi increase their production and advertising during this peak period.