Measuring the satisfaction in terms of "UTILITY"

Utility: 

The term utility means the satisfaction derived from the consumption activities which can be an activity,any other activities and any hobbies.

The concept of utility is subjective in nature as it deals with the demand aspect and hence there are certain constraints attached.

Assumption:

• Here the people are considered with the rational behaviour.
• Tastes and preferences are taken fixed.
• It is assumed that people allocate their income in order to maximize the satisfaction.

Types of utilities:

Caridinal utility:

It means the utility measured in terms of giving number which can be quantified. As it is subjective in nature there are boundaries.

Assigning some numbers and those attributes are to be rated according to the boundaries given.

 Ex: ola drivers are given rating in order to know the level of satisfaction derived by the customer.

Ordinal utility:

This will be measured by assigning the ranks either ascending or descending. It is generally a comparative one which the conclusion will be given on taking certian group and identifying the level of utility derived. 

It can be done independently or the data can be taken from the cardinal measures.

Ex: Ranking the restuarants etc.,

Both has its own way if measuring but when compared ordinal utility tend to be used frequently.