If you are selling a service or a product - Economic utility - is an important concept you should understand.
It is the usefulness that consumers derive from your good or service.
There are four main types of economic utility: form, time, place, and possession.
1.Form utility
The usefulness that comes from the physical form of the good or service.
@allbirds shoes is an example of form utility. They created a new “form” for their shoes that is more comfortable than others. As a result, they can charge a premium from their customers.
2. Time utility
The satisfaction that comes from the timing of the good or service. For example, firecrackers that are available for purchase a week before Diwali are more useful than the firecrackers that are available a week after Diwali.
3. Place utility
The satisfaction that comes from the convenient location of the good or service. For example, a grocery store that is located near a your home is more useful than one located far away.
Delivery Services - UberEats, AmazonPrime are examples of Place utility
Possession utility
The satisfaction that comes from owning the good or service. For example, a car that is owned by the consumer is more useful than a car that is rented by the consumer. NFTs can be a good example of possession utility as well.
To increase the chances of success of your product or service, try to include more than one (ideally all) type of Economic Utility.
