Distinguish between Knowledge Utility and Possession Utility.

1.	Distinguish between Knowledge Utility and Possession Utility.
Answer» Knowledge Utility: 1. Knowledge utility arises when a person acquires knowledge regarding a product. 2. Use of mobile, computer, etc. creates knowledge utility. 3. In this case, a consumer is interested to know various functions of product. 4. Knowledge utility increases due to utilisation. Possession Utility: 1. Possession utility arises when the ownership of a product is transferred from one person to another. 2. Sale and purchase of goods creates possession utility. 3. In this case, a consumer is interested to satisfy his wants. 4. Possession utility increases due to demand.

Answer»

Knowledge Utility:

1. Knowledge utility arises when a person acquires knowledge regarding a product.

2. Use of mobile, computer, etc. creates knowledge utility.

3. In this case, a consumer is interested to know various functions of product.

4. Knowledge utility increases due to utilisation.

Possession Utility:

1. Possession utility arises when the ownership of a product is transferred from one person to another.

2. Sale and purchase of goods creates possession utility.

3. In this case, a consumer is interested to satisfy his wants.

4. Possession utility increases due to demand.

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