Four Utilities

In the context of business relationships, the term “Four Utilities” refers to the four elements needed in order for a purchase or exchange of value to take place between a business and their customers- and when all are used successfully create customer satisfaction.

Form – this is the product or service that has been created or acquired to meet the needs of the intended business market.

Place – is the location(s) determined to be most convenient for customers to purchase and it can also refer to distribution point(s) that facilitates product flow into the marketplace. In more modern times this can also refer to an e-commerce website, where customers can easily browse, purchase, and obtain more information in a timely and accurate manner- again facilitating customer satisfaction.

Time – this element refers to logistics and when organized for the easiest flow from manufacture to delivery to retail locations or directly to consumers the end results are happy customers.

Possession – this is the final utility. Customer ownership provides benefits and therefore the goals of a business should be getting their product in the hands of the people who want and need that product as efficiently as possible. In some cases this element could include offering financing options in order for customers to get the item faster. In all cases, the first three utilities are in preparation for the last element of possession.