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Literature Review.

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LITERATURE REVIEW ON SOCIAL UTILITY OF BRANDS

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LITERATURE REVIEW ON SOCIAL UTILITY OF BRANDS

Utility

The term utility is often common in business and marketing. Thus, it is common to hear

the term utility in a market structure with the excess competition. Brands are fond of talking

about the utility of their products. Knowledgeable customers, too, are fond of talking about the

utility they get from the products they purchase from a market. Utility hence refers to the

usefulness and enjoyment that customers or clients get from a particular good or service that they

are buying (Haslett, 1990). This is extremely important since it would be awkward to spend your

finances on one specific product when it doesn't help you in the long run. Therefore, in a

situation where customers have access to a variety of products, one of the factors they would

consider before they settle on purchasing any combination is the utility that they would find from

the product.

Economists hence divide the concept of utility into two major broad categories. These are

the total utility and the marginal utility (Akkaya, 2021). Total utility is the amount of utility or

satisfaction that consumers get from consuming a particular quantity of service or good at a

specific time (Kaplan, 2018). When customers get more excellent total utility from a product,

they become more satisfied with the product than when they get a lower total utility from

consuming a given unit of the same product. On the contrary, economists explain marginal utility

as how incremental utility increases after finishing additional units of a particular good, service,

or activity (Kaplan, 2018). Hence, suppose we could quantify utility and say that we get a total

utility of five after consuming one bottle of wine. The total utility increases to eight if we add

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one more bottle of wine, then the marginal utility of consuming an additional unit of wine is

three.

Other authors also categorize utility into seven significant types. These include the form

utility, place utility, time utility, service utility, possession utility, knowledge utility, and natural

utility (Haslett, 1990). Form utility is the value assigned to a product simply because of the

materials that make it (Akkaya, 2021). For example, a chair may be more valuable to customers

than a piece of wood. However, they are made of the same product. Hence people value the chair

more than the wood because of its form. The same authors argue that place utility refers to

making goods or services available to customers where they need them most (Haslett, 1990). For

example, a good might be produced in the United States of America but transported for use in

Europe. That creates the place utility of the good. On the other hand, the time utility of a good or

service is created, manufacturers and producers provide a good or service to customers when

they need them most. For example, during a sunny season, the clothing industry will always

provide light clothes that can help customers persevere the hot sun and give a lot of heavy

clothes during the rainy season. That is creating the time utility of clothes.

Service utility is also the value created when a particular service is provided by a

professional in that sector (Haslett, 1990). For example, when patients are treated by a doctor or

a teacher renders knowledge to students in a classroom. This creates the service utility.

Possession utility is also the value generated in a product simply because the customer or the

purchaser has legal rights to own and use the product freely (Akkaya, 2021). For example, when

a person purchases a new car from the yard or purchases a new set of furniture, they create

possession utility for the product. On the other hand, knowledge utility refers to the value that

customers or people get from gaining knowledge about a particular product, good, or service

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1 LITERATURE REVIEW ON SOCIAL UTILITY OF BRANDS Student name Registration number Unit name Instructor Date 2 LITERATURE REVIEW ON SOCIAL UTILITY OF BRANDS Utility The term utility is often common in business and marketing. Thus, it is common to hear the term utility in a market structure with the excess competition. Brands are fond of talking about the utility of their products. Knowledgeable customers, too, are fond of talking about the utility they get from the products they purchase from a market. Utility hence refers to the usefulness and enjoyment that customers or clients get from a particular good or service that they are buying (Haslett, 1990). This is extremely important since it would be awkward to spend your finances on one specific product when it doesn't help you in the long run. Therefore, in a situation where customers have access to a variety of products, one of the factors they would consider before they settle on purchasing any combination is the utility that they would find from the product. Economists hence divide the concept of utility into two major broad categories. These are the total utility and the marginal utility (Akkaya, 2021). Total utility is the amount of utility or satisfaction that consumers get from consuming a particular quantity of service or good at a specific time (Kaplan, 2018). When customers get more excellent total utility from a product, they become more satisfied with the product than when they get a lower total utility from co ...
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