Utility And Its Types

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.