Economics when applied to real life sounds beautiful. this blog is for those students who are discovering the different facets of economics applications and want to share their discoveries.
Wednesday, August 1, 2018
HOW CARDINAL AND ORDINAL UTILITY OF PRODUCT IS MEASURED?
In today's world we are dependent on many online applications in our mobile itself. Even many people shifted or started their business through online application in order to save their time and do the work more accurately with small as well as big capital investment. For example HOTSTAR, MAKE MY TRIP, GO-IBIBO, MYNTRA, PAYTM etc. Now measuring the utility which means satisfaction from the products or services they deliver is not express in number form,it is very subjective in nature. For measuring the utility of these product and services they request their customer to rate them or to feel a small feedback form after you installed and visited the applications once or twice.These ratings and feedback forms helps to measure their cardinal utility of product and services. After measuring cardinal utility of the product and services they rank and give position to themselves on the basis of the cardinal utility measurement. These ranking and positioning is measured in form of numbers, it is very objective in nature. Hence these ranking and positioning help to measure their ordinal utility of product and services. Ordinal utility may or may not include process of cardinal utility. this process need to be done in order to measure cardinal utility and ordinal utility of product and services they deliver to their respective customers.
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