What is a place utility? place utility Definition.

place utility Definition

What is a place utility?

The utility of the place refers to the utility built for the product by the qualities of its location. The attractiveness of a product can be enhanced by changing its physical position. If we talk in terms of marketing, the product should be found where it is more accessible to the customers.

Since the location or availability of a commodity may often determine whether or not to purchase it, the utility of the location plays an important role. The more easily the product is available to the consumer, the more likely consumers are to buy it. Companies are doing their best to expand their distribution channel and make their product available to customers in all possible retail formats.

Transportation is widely used to move goods from one place to another and adds time and space utility to the product.

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