Utility : types and characteristics

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 Utility:- 

Economics Utility is the level of satisfaction that a consumer derives by consuming a product or service. It measures the total satisfaction of the consumer.


Types of Utility:-

There are four main types of utility-

1- Form 

2- Time 

3- Place 

4- Possession

1- Form :-

Form refers to the use of goods or product according to the situation or the condition of the consumer's want.

E.g. - If consumer want table and company providing him wood then it reduces consumer's satisfaction because he wanted wood in the form of table and company provide him wood.

2- Time:-

Time refers to the availability of goods or product when consumer purchase it.

E.g.- In rainy season, consumer wanted an umbrella and the umbrella is not available in the market at that time then it reduces the consumer's satisfaction. So, time is a important type of utility.

3- Place:-

Place refer to the location of goods or service and if the location of goods and services are convenient for the consumer then utility increases.

E.g.- If a customer want some goods and the goods is at long distance from him and because of this reason he has to thick for consuming that goods and this reason decreases the utility.

4- Possession:-

Possession measures the amount of usefulness from consuming a goods or services.

E.g.- If a customer buy a chair and that can be used as table by folding their legs or may be by any other way then it increases the utility.


Characteristics of Utility:-

1- Utility depends on the intensity of want

2- Utility is a psychological concept

3- Utility is different from satisfaction

4- Utility defers from usefulness

5- Utility is different from pleasure

6- Utility can not be measured objectively


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