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Dec 4, 2023 · Possession utility is the use or perceived value a consumer gets from owning and being able to use a product or service in a timely manner. ... the digital age helps broaden the definition of ...
- J.B. Maverick
- Form. Form utility is created by the design of the product or service itself. The more precisely a good or service is targeted towards customer needs and desires, the higher its perceived added value (i.e., form utility) will be.
- Place. Place utility can be obtained through the process of making a good or service more easily available to potential customers. The easier it is to purchase a product, the more attractive it becomes.
- Time. Time utility is created by providing easy availability of a good or service at the time when customers need or want it. The more easily and quickly a product can be purchased (and used) at that time, the higher its perceived time utility is.
- Possession. Possession utility describes the benefits that can be derived from owning and using a specific product. Generally speaking, the more “useful” a product is to an individual, the higher its possession utility will be.
Possession utility is a part of the various other utilities. Utility is usefulness of product or service. The other major types of utilities Form, Task, Place and Time. Place and possession utilities are similar to each other. Buying and selling of anything involves transfer of ownership from one to another. So to be successful in competition ...
- Utility of Time. This is the “when” component of utility: Is your product available when customers want it? Will it arrive quickly and without complication?
- Utility of Place. Place utility refers to the ability of consumers to get what they want, where they want it. Often applied to brick-and-mortar stores, utility of place is paramount for customers looking for familiar items that are easy to obtain.
- Utility of Possession. Possession utility speaks to the actual act of product possession — such as consumers driving a new car off the lot or having furniture delivered to their home.
- Utility of Form. While some companies offer lower prices by shifting the responsibility of assembly to the consumer (e.g. that new dresser that you bought and had delivered, but still need to assemble on your own time), finished forms are often more valuable to customers.
Jun 24, 2022 · 3. Possession Possession utility refers to the value a customer receives from owning a product. Companies strive to simplify the acquisition process so that customers can more readily own their purchases. Possession utility can also refer to a product having multiple uses, allowing the customer to perceive their product as having more value.
Mar 1, 2021 · Possession Utility Definition. Possession utility means that the product is simply easy to obtain. For example, an expensive piece of furniture may be more easily available through a low-interest financing deal. Or the steps may be simplified by the bank to acquire a loan.
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What is possession utility?
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Aug 9, 2022 · Possession Utility. This utility arises from the ease of possession or from owning a commodity. Thus, it is crucial for businesses to make all efforts to make the acquisition process user-friendly. Possession utility can also arise if a product has more than one use. After-sales services also impact the possession utility.
