An important decision faced by marketers as they are formulating their marketing strategy deals with who will have ownership of the product (i.e., holds legal title) once an exchange has taken place. The options available include:
- Buyer Owns Product Outright – The most common ownership option is for the buyer to make payment and then obtain full ownership.
- Buyer Has Right to Use but Does Not Have Ownership – Many products, especially those labeled as services, permit customers to make payment in exchange for the right to use a product but not to own it. This is seen in the form of usage, rental or lease payment for such goods and services as: mobile phone services, manufacturing equipment and Internet access. It should be noted that under some lease or rental plans there may be an option for customers to buy the product outright (e.g., car lease) though this often requires a final payment.