Possession Utility

Published by MBA Skool Team, Last Updated: December 10, 2015

What is 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

1. Form

2. Task

3. Place

4. Possession

5. 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 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.


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.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

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