Utility and Satisfaction

Written By Unknown on Thursday, 20 June 2013 | 14:43

The term utility is, however, distinct from satisfaction. Utility implies potentiality of satisfaction in a commodity. It serves as a basis to induce the consumer to buy the commodity. But, the real satisfaction is the end result of the consumption of a given commodity. 

Though utility and satisfaction are psychological, there is a distinctive gap between the two experiences. Utility is anticipation of satisfaction visualized. Satisfaction is the actual realization. Sometimes, satisfaction derived from the consumption of a commodity may be less or more than what is expected in the visualization of utility. For example when a consumer buys a motor car and if it starts giving him trouble his satisfaction so realized from the use of the motor car will be less than what he had estimated about his utility. 

Nonetheless in economic theory for the sake simplicity and convenience in analysis, economist usually assumes utility and satisfaction as synonymous terms.

Notes provided by Prof. Sujatha Devi B (St. Philomina's College)
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