Utility of goods or a service means, the rate at which a consumer is satisfied from the product or service that he/she is getting.
For Exercise - Suppose a person want to buy a product say , Rice, comes home and uses it. Here, the level of satisfaction that he will be getting from it is concept of utility.
There are two types of utility-
Cardinal Utility
Ordinal utility
1) Cardinal Utility-
Cardinal Utility is basically assign number to the utility.
For Example - Bagrry's give 200 units of utility
Kelloges give 300 units of utility
2) Ordinal Utility-
Ordinal Utility is basically assign Rank to the utility.
For Example - Top 10 models of Samsung phone and second best service centre in the town for car.
So, Utility means, a level at which a customer is satisfaction or the rate at which customer is getting profitable or benefit.
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