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What is Form Utility? Definition, Meaning and Examples

February 23, 2023 By Hitesh Bhasin Filed Under: Marketing

Table of Contents

  • What is Form Utility?
  • How Form Utility Works?
  • Examples of Form Utility

What is Form Utility?

Form utility is a value that consumers obtain from a service or a product. It is the way in which the product matches the customers needs and the utility that it brings to the customer. Building Form Utility means taking a product and making it ready to meet the needs of the end consumer for consumption. This is because it is more useful to serve the finished product than selling raw materials.

How Form Utility Works?

Form utility is a concept in business circles that puts the onus on the fact that the finished product is more valuable to the consumer hence it should be designed in a way that will be most convenient to them. In essence, it is important for manufacturers to create form utility. When a company presents a product or a service in a certain way that matches the actual need and requirements of an individual, then its value increases automatically.

This is the reason why organizations do not believe in selling the components; instead, they assemble them and create a specific product that will be able to meet a particular need of the consumer. For instance, a raw piece of wood is not as valuable to a customer as a chair in which he needs to sit. In this case, the manufacturer will assemble the piece of wood, the tools, and the various other components required to make the chair and create one that the manufacturer will then sell to the customer as there is a requirement for that product in the market. Thus, a form utility has been built with the raw material.

Form utility is obtained by transforming the needs of a customer into a particular product or service. Organizations have to create specialized teams that collect essential information from the potential and existing customers through surveys. It helps to identify what the customer wants, is the company offering him enough, is any changes required in the current product portfolio, is their room for more, and does the existing portfolio need variations?

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The gathered data and information is used to align the features of the products with the actual needs of the customer. It is form utility that helps to create things from materials, design and other options.

Examples of Form Utility

Examples of form utility

A consumer feels like eating a cake and what will happen if there are only the ingredients for the cake available in the market and not the actual product itself. Do you think that every person who is interested in that product is going to buy the raw materials? The feasible thing would be to bake the product and serve it to the customers. This is form utility as the baker has used all the ingredients to make a finished product to suit customer needs.

Similarly, if you want a vehicle or a laptop or even a mobile device and the companies start selling only the parts that are needed for manufacturing, it will the consumers buy it? It is not realistic to produce the end product by yourself. The consumer will wait for the finished product as it is more convenient for them to make a purchase then think of buying the parts and materials.

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About Hitesh Bhasin

Hi, I am an MBA and the CEO of Marketing91. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. You will generally find me online at the Marketing91 Academy.

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