Types of utilities created by production

Types of utilities created by production

• Form utility – This is changing the form of a commodity by converting raw materials to finished goods. It is done through processing/manufacturing.
• Time utility – This is created when a good is stored until when it is needed..done through storage or warehousing
• Place utility – This is movement of goods and services from one place to another. Done through transportation
• Possessive utility – Refers to transfer of ownership of goods and services from one person to another. Done through trade, gifts