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Friday, 29 September 2017

Various Forms of Utility

Various types or forms of utility - There are basically six different types or forms of Utility

Form utility - Form Utility is a utility created by changing the form of a particular substance or commodity. The Utility created by changing shape, size or color of a particular product is called as a form utility. For example, making furniture out of wood. Making furniture out of wood increases the utility of the wood. So utility created by converting wood into furniture is Form utility

Place utility. - Place utility is a utility created by changing the place of a particular commodity. For example, bringing crops from farms to market or to the place for consumption is an example of creation of the place utility

Time utility - Utility created by the change in time is called as time utility. For example, demand for woolen clothes is more during winter as compared to demand in summer. So the utility of the woolen clothes is more during winter than in any other season. Thus utility created due to change in time is called time utility

Service Utility - Service utility is the utility created by providing service to someone. Such services are generally provided by professionals in the society to other people in the society. For example, the knowledge given by teacher to his/her student or treatment given by a doctor to his or her patient

Knowledge Utility - Knowledge utility is a utility created due to increase in knowledge of the consumers. For example, the utility of mobile phone increases when a person understands what all functions it can perform. Thus, this is an example of knowledge utility.

Possession Utility - Possession utility is the utility created due to change in possession of a particular commodity or substance. For example, the utility created by purchasing a car from someone is an example of possession utility. Utility created by having possession of the car from the seller is possession utility