Types of Utility
Types of Utility :
Following are some of the different types of utility
Form utility : When utility is created due to a change in the shape or structure of an existing material, it is called form utility. For example, toys made of clay, furniture from wood, etc.
Place utility : When utility of a commodity increases due to a change in its place, it is called place For example, woollen clothes have more utility at cold places than at warm places. Transport creates place utility.
Service utility : Service utility arises when personal services are rendered by various professionals. For example, services of doctors, teachers, lawyers etc.
Knowledge utility : When a consumer acquires knowledge about a particular product, it is called knowled uitility. For example, utility of a mobile phone or a computer increases when a person knows about its various functions.
Possession utility : Possession utility arises when the ownership of goods is transferred from one person to another. For example, transfer of goods from the sellers to the buyers.
Time utility : When the utility of a commodity increases with a change in its time of utilization, it is called time utility. For example, a student has more utility for text books during examinations than in the Time utility is also observed when goods are stored and used at the time of scarcity. For example, Blood bank.