SEM Chapter 3 Review

Form utility results from changes in the tangible parts of a product or service. 

• True
• False

A business that schedules its hours to better meet consumer needs provides place utility. 

• True
• False

Offering auto leases rather than requiring customers to pay the full purchase price provides possession utility. 

• True
• False

Convenience stores open 24 hours a day usually provide both time and place utility. 

• True
• False

Improving products through analyzing economic utility supports the marketing concept. 

• True
• False

The amount of satisfaction a consumer receives from the consumption of a particular product or service is

• form utility
• possession utility
• time utility
• economic utility

Packaging milk into smaller containers to meet the demand of people who live alone is an example of

• form utility
• possession utility
• time utility
• place utility

When economic utility is improved

• prices charged by businesses will increase
• consumers will have fewer choices
• customers satisfaction improves as well
• competition will be greater

An economic impact is the effect produced by decisions made by consumers and businesses.

• True

• False

When a business does not make enough revenue to cover expenses, it operates at a profit.

• True

• False