What is Utility?
Want-satisfying power of a good or service is called utility
There are four basic kinds of utility – form, time, place and ownership utility.
Form utility is created when the firm converts raw materials and component inputs into finished goods and services.
Time and place utility occur when consumers find goods and services available when and where they want to purchase them.
The transfer of title to goods or services at the time of purchase creates ownership utility.
There are four basic kinds of utility – form, time, place and ownership utility.
Form utility is created when the firm converts raw materials and component inputs into finished goods and services.
Time and place utility occur when consumers find goods and services available when and where they want to purchase them.
The transfer of title to goods or services at the time of purchase creates ownership utility.
Examples:
Form Utility : Conversion of raw materials and components into finished goods and services example : Biscuit made of several ingradients.
Time Utility : Availability of goods and services when consumers want them example: dial-a-cab service
Place Utility: Availability of goods and services where consumers want them example: home deliveryPresentation of securities with transfer deeds in fulfillment of a transaction. services of Pizza Hut
Ownership Utility : Ability to transfer title to goods or services from marketer to buyer : sales of a motorcycle.
