Question

Explain the types of utility.

Answer 1

1. Form utility: If the physical form of a commodity is changed, its utility may increase. Eg. Cotton increases, if it is converted into clothes.
2. Place utility: If a commodity is transported from one place to another, its utility may increase. Eg. If rice is transported from Tamilnadu to Kerala, its utility will be greater.
3. Time utility: If the commodity is stored for future usage, its utility may increase. Eg. Agricultural commodities like Paddy, Wheat, etc., are stored for the regular use of consumers throughout the year.
4. Possession utility: This is the value created when a consumer gains ownership of a product. It's often associated with making it easier for consumers to purchase a product through methods like financing or warranties. Example: Buying a car and using it.
5. Service Utility: This refers to the value added by providing services, such as customer service, repairs, or consultations. For example, a mechanic providing car repair services creates service utility.
6. Information Utility: This is the value created by providing consumers with information about a product or service. A website providing detailed information about a product is an example of information utility.