Economic Utility

The economic utility is an economic term often associated with a customer’s satisfaction open consuming a good or availing a service. Based on modern economic theory. There are four types of utility namely form, place, possession, and time.

Each utility caters to its own purpose over the customer’s satisfaction. Form utility is often associated with the construction of the service or good, while possession utility takes about the perceived value from owning a product or service by the customer.

Similarly, place utility defines the physical availability for potential customers, while time utility refers to the availability of the product/service. The economic utility derives from the relationship between a customer’s need and the overall functionality of the service or good.