Question

Fish fetching higher price at market than at the production centre is

• A. Form utility
• B. Place utility
• C. Time utility
• D. Pleasure utility

Hint:

Place utility = Transportation.
Form utility = Processing/Value addition.
Time utility = Storage/Preservation.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
In marketing economics, "utility" is the capacity of a good to satisfy human wants.
Marketing activities create utilities by changing the form, place, time, or possession of products.

Step 2: Detailed Explanation:
- Place Utility: Created by transporting goods from places where they have low utility (production centers/landing sites where supply is high and price is low) to places where they have high utility (markets/urban consumer centers where demand is high and price is high).
Therefore, fish fetching a higher price at the market compared to the landing site is a classic example of creating place utility through transportation.
- Form Utility: Created by processing (e.g., turning raw fish into fish fillets).
- Time Utility: Created by storage/freezing (preserving fish during peak seasons to sell during lean seasons).

Step 3: Final Answer:
The increased price at the market represents Place utility, which is option (B).