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Utility can be defined as the level of satisfaction derived from consumption of a product or a service. As far as a company is concerned, utility as the ability of a product or a service to satisfy human wants. There are four main types of utility namely; time, place, ownership and form utility. (Wisner, 2009) In this case, we are going to explore time utility and place utility.

Time utility is the level of satisfaction derived from goods and services by availing them at a given time. This utility arises by timing and making a product available. For example, in many sports activities, say football, where there is a tournament, and on a sunny afternoon, there are those people who supply water and other drinks to both the supporters and the players. (Wisner, 209) This shows the timing that is necessary in order to satisfy their needs.

Place utility on the other hand, is the level of satisfaction derived from a product by consumers because of changing the location of that product. Place utility therefore involves activities such as shipping of finished goods to a completely new location in order to ensure accessibility of the product by the consumers. An example is where, we have many countries across the world with no source of oil but they enjoy the access of oil. (Wisner, 2009)  This is made possible by place utility that involves changing the location of a product in order to satisfy human wants.

Customer driven production can be defined as a strategy adopted in the production exercise which takes intoo consideration the expectations and demand of consumers. (Wortmann, 2012) This is a very significance aspect of a production company since it ensures that the customers’ needs, expectations and satisfaction level are satisfied.

Adopting this approach means there is quality improvement of a product and that consumers remain royal to the producing company. This guarantees the future of the company due to acceptance by consumers. (Wortmann, 2012) An example of customer driven production is evident in the technology world where producers of products such as mobile phones do so putting into consideration the demand and requirements of customers. This is evident in the continuous improvement of available products as seen in sum sung phones where they improve phones time after time.



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