Time utility

There are four kinds of economic utility such as form, place, time, and possession. Time utility can be defined in the following ways:

Definition (1):

It is the availability of a good or service when customers want to purchase it.

Definition (2):

Time utility exists when a company maximizes the availability of a product so that customers can buy it during the times that are the most convenient or desirable for them.”

Definition (3):

It means offering the consumers their desired products at the time they require them. Consumer demand varies based on daily needs, weather conditions, or holiday seasons. This utility ensures that the products are available to the customers at the proper time.

For example, demand for soft-drinks usually rises during the season of summer. So, companies like Pepsi and Coco-cola raise their advertising and production during this time. 

Use of the Term in Sentences:

  • Companies recognize the time utility of a product and raise production accordingly to take advantage of that.
  • The cold-drinks companies are selling their drinks at a lower price because the time utility is very high.
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