Place Utility

Published by MBA Skool Team, Last Updated: January 22, 2018

What is Place Utility?

The place utility refers to the utility created for the product by the virtue of its location. The attractiveness of a product can be increased by changing its physical location. If we talk in marketing terms the product should be available at the place where it more accessible to the consumers.

The place utility plays an important role because sometimes the decision whether to buy a product or not is decided by the location or availability of the product. The easily the product is available to the consumer, higher are the chances that consumer will buy it. The companies are trying their best to spread their distribution channel & making their product available to the consumer in all possible retail formats.

Transportation is widely used to move a product from one place to another and adds time & place utility to the product.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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