"Possession utility" refers to the advantages gained by customers who own certain products. These benefits come in the form of added value, or advantages not readily apparent at the time of purchase. Many of these advantages are subjective in nature and vary from customer to customer based on individual needs and desires, while some of these benefits remain constant from individual to individual.
Four parts, including possession utility, comprise the concept of economic utility. "Form utility" describes the specific products companies assemble and offer up to customers for purchase. This includes raw materials one company sells to other companies to make related products. Research goes into these offered products, with companies spending time and money researching specific consumer needs to find products that fulfill desires, tap into under-served markets and offer the company maximum profit.
"Time utility" refers to whether or not these products are available to customers when they're ready to purchase them. This influences the time services or products become available to consumers, such as the hours a business operates and various platforms used to offer those products and services to the public.
"Place utility" comprises factors that include distribution, delivery and availability in retail establishments. For consumers to purchase products, they must be available conveniently in a location the consumer can visit or browse. This can include retail establishments, catalogs and online shops. The strongest focus in place utility comes down to catering to consumer convenience.