Chapter 1, Problem 1ALR

Summary Introduction

To discuss: The four types of utility and examples for each utility.

Utility is defined as an economic framework, a model used to support manufacturers and advertisers to structure and distribute their items so that it will probably draw in more customers and there will be an increment in sales and revenues.

Explanation of Solution

The four types of utility with examples are as follows:

• Form utility: It is made when the organization changes over raw materials and the components to finished product or service. Example: A digital camera producer joining raw materials such as glass, plastic, metal, and circuits to make a camera.
• Place utility: This utility refers to the utility made for the item by the temperance of its area. The good looks of an item can be expanded by changing its physical area. Example: Automatic vending machines producing refreshments accessible in office lounges.
• Time utility: Time Utility is giving the customer their preferred merchandise when they require them. Depending on the regular needs, holiday season or climate conditions, the purchaser request will change. Example: The pizza locations including conveyance vehicles on Super Bowl Sunday.
• Ownership utility: It is the value that the customers have while purchasing an item and they have the decision to utilize the item for the reason it was made for or finding another approach to utilize the item. Example:  A fan who is fond of music, purchasing a show ticket on the web or through mobile applications.