Cardinal and Ordinal Utility, the two sides of the coin.

What is utility?

Before we get to know about the cardinal and ordinal utility, first let us understand what exactly the term "utility" is about. The total satisfaction that an individual gets after using a product or service is termed as utility. In other words, utility is basically the capacity or the quantity of a product that satisfies the human wants. We all use utility while taking any decision in our day to day life without being aware of the same. For example- when we have an option to purchase between Bournvita and Horlicks, then first we compare the utility that we would derive from both the choices and then select the one from which we get the maximum satisfaction. This is what utility is. It is measured by a unit called as "utils." Now let us see the difference between cardinal amd ordinal utility.

CARDINAL UTILITY~ 

Meaning-When the customer gets satisfaction by using a product or service that can be expressed numerically, then it is termed as cardinal utility. For example, a boy named Rohan purchased a new scooty. So he can say that the new scooty gives him 6000 utils of satisfaction than his old scooty which gives him 2000 utils of satisfaction. 

Approach- 

Cardinal utility is quantitative in approach, i.e. it can be measured only in terms of quantities.

Measurement-

Cardinal utility is measured in a unit termed as utils.

ORDINAL UTILITY~

Meaning- 

When a customer gets satisfaction by using a product or service which cannot be expressed numerically, then it is called as ordinal utility.

For example-  A person can tell subjectively that he prefers to eat maggi than noodles.

Approach-

Ordinal utility is qualitative in approach, i.e. it can be measured as per the quality.

Measurement-

Ordinal utility is measured in terms of rankings on the basis of preference of the product when compared to each other.