CONCEPT OF UTILITY
example: I am planning to buy an ice cream in a shop there are two flavours of a ice cream(chocolate and butterscotch) as I like chocolate flavour because of that I will buy the flavour ice cream and I will get the maximum satisfaction by the consumption of the product is called the utility
UTILITY
the satisfaction of we will get after consumption of the ice cream or any product is known as utility or utility is a concept how much person gets satisfaction from consumption of goods and services.
there are two types of utility are
cardinal utility and ordinal utility
cardinal utility:
a cardinal utility is used for rating the particular product it can be measured by quantitative terms like rating on the 1-10 satisfaction level of a customer.
example: the more supermarket has asked the customer review on the particular new product of Pepsi brand has rated among 1-10 (1 is dissatisfied and 10 is satisfied)
ordinal utility:
in the ordinal utility of the commodity is measured in the form of less than, greater than, neutral, etc.., it is also can be measured in qualitative methods.
example: the employee ask a feedback on customer satisfaction towards the product of (highly satisfied, satisfied, neutral, dissatisfied and highly dissatisfied)
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