Posted in Marketing and Strategy Terms, Total Reads: 723
Definition: Possession Utility
Possession utility is the value customers have while buying a product and they have the choice to use the product for the purpose it was made for or finding a new way to use the product. For example, people use buckets to store water. However, some people can even use it for storing small household items, children toys etc.
Possession utility is a part of the various other utilities. Utility is usefulness of product or service. There are 5 major types of utilities
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 this throat cutting competition one should strategize to make this transfer of possession easy. So possession utility is what lets customer physically asses what they bought. Having multiple options for payment is one way to make possession easy for customers. Other methods can be how product is delivered, how fast it is delivered.
Example- Businesses engaging in selling on credit are actually facilitating customers in possession. Customers can come to them. Even if they do not have enough money they can pick up things they like and walk away with it with a promise to pay later. This facilitates possession and makes it easier for customer and lures them to come back.