Question

1. How do you measure the satisfaction you receive from goods and services?

Answer 1

Ans:

The satisfaction that a consumer receives from consuming the goods and services is expressed as utility. The total utility is the satisfaction or happiness received from the consumption of a good , service or both.

Utility has an important role in decision making and it varies from consumer to consumer and is influenced by many factors.The two ways used in quantifing utility are cardinal utility and ordinal utility. In cardinal utility approach numerical values are assigned to utility and in ordinal utility approach ranking is used instead of values.