Saturday, September 1, 2018

Cardinal and Ordinal utility at a glance

In today's world mobile market is in boom. We have a entire huge collection of brands to choose. So if some one wants to buy a new phone today he/she will definitely research a bit before buying it,then the person will go through the ratings of the phone as well as ranking of mobile brands, Here we are talking about Cardinal utility and Ordinal Utility. 
If we say BRAND A gives 8000 units of utility then BRAND B  would give 16000 unit of utility. We are talking about cardinal utility. It is basically when a consumer talks about rating.
On the other hand ordinal utility is about customer preferences . Suppose BRAND A has more customer liking  then BRAND B then here we are talking about ranking .
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