Posted in Marketing and Strategy Terms, Total Reads: 778
Definition: Form Utility
Utility refers to the usefulness or value a consumer expects to derive in exchange for the money he pays for buying the product of the company. There are four kinds of utility relevant in business: form, time, place, possession.
Form utility is the value seen by a consumer in finished products. The company tries to increase form utility by making the product available for consumption in a form, such that it is more useful to the consumer in this form, rather the materials in the raw form used to make it.
For e.g. furniture companies do not sell raw wood, but convert into more appealing and useful forms like chairs, tables, and beds etc. which satisfy customer needs and provide value by saving time of transforming the wood into required forms.