What is possession utility?

Possession utility refers to the satisfaction or value that a consumer derives from owning a product or service. It is one of the five types of utility in marketing, the others being form utility, time utility, place utility, and information utility.

Possession utility is created when a product or service is transferred from the seller to the buyer. The act of owning or possessing the product fulfills a consumer's desire and provides them with a sense of satisfaction. Possession utility can also encompass the convenience, ease of use, and benefits that come with owning a particular product.

For example, owning a smartphone provides possession utility as it allows the consumer to stay connected, access information, and complete various tasks conveniently. Similarly, owning a car provides possession utility by offering mobility and the ability to travel freely.

Businesses can enhance possession utility by offering warranties, customer support, and after-sales services that make it easier for consumers to own and use their products. By understanding and creating value through possession utility, businesses can better meet the needs and desires of their customers, ultimately leading to increased customer satisfaction and loyalty.